Dividend Policy

The Company’s dividend policy considers the Company’s future capital requirements and long-term financial planning and meets the shareholders’ demands for cash inflows. For any surplus in the Company’s annual accounts, the Company will first make up for past losses and pay taxes, then keeps 10% of the remaining balance as the statutory surplus reserve unless it has reached the Company’s total capitalization. In addition, the Company will retain special reserves according to its business needs and provisions of laws. For any more unappropriated earnings, the Board of Directors shall formulate and submit a surplus appropriation plan to the shareholders’ meeting for resolution.

The appropriation of the surplus mentioned above may be retained in whole or in part as undistributed earnings by resolution of the shareholders’ meeting and distributed together in subsequent years. The dividends mentioned above can be paid to shareholders in cash or stock dividends, with the distribution rate of cash dividends being no less than 20%. Nonetheless, the distribution rate of cash or stock dividends is subject to adjustment by the resolution of the shareholders’ meeting, depending on the actual profits and capital status of the year.