- Time of issue:2020-11-12 14:54:08
Profit distribution policy
Article 1 Profit distribution policy of the company should follow the following principles
(I)The company should take into account sustainable development and the interests of all shareholders and establish a mechanism with sustainable, stable and scientific rewards for investors on the basis of considering the company's profit scale, business development plans, shareholders' will, social capital costs, external financing environment, etc to guarantee the continuity and stability of profit distribution policy.
(II) The company should determine the ratio of cash or stock dividends distributed to shareholders based on the profits available for distribution of the parent company of the year.
(III) If there is illegal occupation of funds of the company by a shareholder, the company should deduct the cash dividends distributed to the shareholder to repay the occupied funds.
Article 2 The company may distribute stock dividends in the form of cash, stocks or cash and stock combination. Where cash dividends are available, the company should give priority to profit distribution through cash dividends.
The company can also repay investors in the form of stock repurchase with cash. The cash paid by the company to repurchase stocks is deemed as cash dividends of the year, which should be combined with the cash dividends under profit distribution when calculating the ratios stated in Item 1, Article 157 of the Articles of Association.
Article 3 Profit distribution conditions and requirements
(I) Conditions for cash dividends: except for special circumstances, where the company makes profits in the current year and the amount of accumulated undistributed profits is positive, the company should distribute dividends in the form of cash dividends. The total profits distributed in the form of cash in the last three years should not be lower than 30% of the average annual distributable profits of the last three years and annual profits distributed in the form of cash should not be lower than 10% of the profits available for distribution of the current year.
Special circumstances refer to:
1. Earnings per share of the year are lower than 0.05 yuan.
2. The company has major investment plans, major cash disbursement plans or other matters (except for fund-raising projects); major investment plans or major cash disbursement refer to that the estimated total expenditure of the company within the next twelve months for major investments, assets acquisition or equipment purchase reaches or exceeds 100 million yuan.
3. The auditing body has not issued a standard audit report with unqualified opinions for the company's annual financial statements.
(II) Intervals of cash dividends: where the conditions of cash dividends are met, in principle, the company should distribute cash dividends once after the annual shareholders' meeting and interim distribution of cash dividends can be conducted if conditions allow.
(III) Stock dividend distribution conditions: If the company distributes profits in the form of stock dividends, it should give shareholders reasonable returns on cash dividends, maintain appropriate stock size and take into account the company's strategy, growth, dilution of net assets per share and other factors.
(IV) Differentiated cash dividends policy: By considering the industrial characteristics, development stage, its own business model, profitability, whether there are major capital disbursement plans and other factors, the board of directors of the company should propose differentiated cash dividends policy according to the procedures prescribed in the Articles of Association and the proportion of cash dividends to the distributed profits in the differentiated cash dividends policy should meet the requirements of the securities regulatory authorities.