The Company’s dividends distribution policy aims at properly using capital to strike a balance between consolidating the foundation for business development and sharing profits with shareholders.
Whether the Company will announce dividend distribution or distribute dividends in the future and the amount of dividends to be distributed depend on a variety of factors, including its business performance, cash flow, financial standing, capital adequacy ratios, cash dividends paid to the Company by its affiliated companies, business prospects, statutory, regulatory and contractual provisions on dividend payment as well as other factors deemed important by the Board of Shareholders. The Company plans to distribute an amount that is not less than 30% of annual distributable profit of each year for the year as of December 31, 2016 and the financial years after up till now. However, the Company cannot guarantee its shareholders that it will distribute or pay the amount aforementioned or any amount for every year or for any year.
Pursuant to applicable Chinese laws and the Articles of Association, the Company will only use the after-tax profit after the following deductions to distribute dividends:
The Company is only allowed to distribute dividends from distributable profit determined according to China’s Generally Accepted Accounting Principles or the International Financial Reporting Standards, whichever is lower. The part of distributable profit that is not paid out as dividends for any specific year will be retained for dividend distribution in the future.
