Dividend Policy and Payment

Dividend Policy

The Company's policy is to pay the shareholders their dividends twice a year at a rate of no less than 40% of net profit, based on the separate financial statements after deducting corporate income tax and any legal reserve required under applicable law or the Company. The Board of Directors will consider distribution of dividend by taking into consideration various factors for the benefits of the enterprise and/or the shareholders, such as economic conditions, operating results and financial position of the Company, cash flow, future investments, repayment of loans or working capital, conditions or restrictions imposed by financing agreements, and that the distribution of dividend does not materially affect the normal operation of the Company as the Board of Directors deems suitable and appropriate.

In the case where the Company deems it appropriate to distribute dividend, the Company shall proceed in accordance with relevant laws, regulations, criteria, or notifications. In this regard, the distribution of annual dividend must be approved by the shareholders’ meeting, except in the case of interim dividend, whereby the Board of Directors may approve distribution of interim dividend from time to time when they view that the Company has sufficient profit to do so and shall report such distribution of interim dividend to the following meeting of shareholders