When allocating the net profits from the fiscal year, the Company shall first offset its losses occurred from previous years if any and secondly appropriate the legal capital reserve at 10% of remaining profits, unless the accumulated legal capital reserve has reached to the total paid-in capital of the Company.
Then set aside special capital reserve in accordance with relevant laws or regulations or as requested by the authorities in charge, together with the adjusted beginning earnings available for distribution, adoption of the proposal for distribution profits to authorize Board of Directors, submit the proposal to the regular Shareholders’ meeting; and then set aside not more than 3% of the balance as the remunerations to directors and supervisors and not less than 1% as the employee profit sharing of the company. The company may issue stock bonuses to employees of an affiliated company who meet the conditions set by the Board of Directors or, by the person duly authorized by the Board of Directors.
The Company will consider the prevailing investment environment, the industrial growth and the long term financial planning and search for the sustainable business operation and stability of the business development. The Company is adopting the residual dividend policy as the dividend distribution policy. The company will calculate the working capital funding according to the future capital budgeting and allocate the funding from the retained earning first. The rest of un-appropriated earning will be distributed through cash dividend. The steps of earning appropriation are as the following:
(1) Determine the optimization of the capital budgeting.
(2) Calculate the working capital fund in accordance to the above mentioned capital budgeting.
(3) Allocate the fund from Retained earning first.
(4) After reserve the necessary amount from the un-appropriated earning, the Company will distribute the remained earning by dividend and the cash dividend shall not be less than 50% of the total appropriated earning.
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