Any earnings concluded in a financial year shall first make up for loss of previous years, right after statutory taxation and accounting adjustments. Any surplus is subject to provision of a 10% legal reserve and special reserve according to law. The remaining balance, if any, will be combined with reversal of special reserves and initial cumulative undistributed earnings available for dividend distribution into the amount available for distribution on ordinary shares and every Class preferred shares. Cash dividends shall be no less than 10% of the total amount of dividend distribution in the same year. Earnings distribution proposals will be devised by the board of directors and submitted to the annual general meeting of shareholders for acknowledgment.
The rights and obligations and the priority, amount and method of distribution associated with every Class preferred shares shall be governed in accordance with the Articles of Incorporation.
The purpose of this policy is to ensure continuous business development and profit growth, while taking into account working capital management and capital adequacy level required by the competent authority and the international standards.
With regard to dividend distribution, the Company shall, in principle, distribute a stock dividend while considering business needs, capital plans, fund for reinvestment or acquisitions, and major regulatory changes, etc. The remainder shall be distributed as cash dividend.