If there are earnings at the end of each fiscal year, it shall estimate and reserve the taxes and dues to be paid, the losses to be covered, and then set aside 10% as the legal reserve, but where such legal reserve amounts to the total paid-in capital, this provision shall not apply. In addition, after setting aside or reversing the special reserves in accordance with relevant laws and regulations, the remaining part and the unappropriated retained earnings from previous years shall be the accumulated retained earnings available for distribution, and the board of directors shall formulate a earnings distribution proposal and submit it to the shareholders’ meeting for resolution on distribution or retention.
Dividends, bonuses, legal reserves and capital surplus distributed in cash shall be authorized by the board of directors with the attendance of more than two-thirds of the directors and the resolution of more than half of the directors present, and reported to the shareholders’ meeting.
The company shall distribute dividends in accordance with the current and future development plans, and take into account the company’s capital needs, investment environment, domestic and foreign competition conditions and shareholder interests. The dividends shall not be less than 10% of the distributable surplus of the current year. However, if the distributable surplus of the current year is less than 3% of the paid-in capital, it may be resolved to transfer all of it to retained earnings and not distribute it. The profit distribution may be made in the form of cash or stock, and the cash dividend distribution ratio shall not be less than 20%.