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oToBrite Dividend Policy

If the company has a profit in the year, it should allocate no less than 1% as employee compensation, and the recipients of the payment can include employees of controlled or subordinate companies that meet certain conditions; The company can allocate no more than 3% of the above-mentioned profit as the director’s remuneration, but when the company still has accumulated losses, it should first set aside the amount to cover the losses.

If there is a surplus in the annual final accounts of the company, the tax should be paid first to make up for the accumulated losses, and the second withdrawal of 10% is the statutory surplus reserve, but when the statutory surplus reserve has reached the company’s paid-in capital, this limit is not applicable; The special surplus reserve shall be set aside or reversed according to the laws or regulations of the competent authority; if there is still surplus and the surplus has not been distributed at the beginning of the same period, the board of directors shall formulate a distribution proposal, and then the shareholders’ meeting shall decide to distribute dividends or bonuses to shareholders. Any surplus from profit concluded at the end of year by the Company shall first make up for previous losses and pay taxes, followed by 10% provision for legal reserve. However, when the statutory surplus reserve has reached the company’s paid-in capital, this limitation is not applicable. The second is to set aside or reverse the special surplus reserve according to the decree or the regulations of the competent authority. If there is still surplus, this surplus can be combined with the undistributed surplus at the beginning of the period, and the board of directors shall formulate a distribution proposal, and then the shareholders’ meeting shall decide to distribute dividends or bonuses to shareholders.

The company’s dividend policy must be based on the company’s current and future development plans, the investment environment, capital needs and domestic and foreign competition conditions, and other factors, taking into account the interests of shareholders, balancing dividends and the company’s long-term financial planning. Every year, the board of directors formulates a distribution proposal and submits it to the shareholders’ meeting for resolution. Shareholders’ dividends may be distributed in cash or shares, of which cash dividends shall not be less than 10% of the total dividends.

The company is in accordance with the provisions of Article 240 of the Company Law, authorizing the distributable dividends and bonuses in whole or in part may be paid in cash after a resolution has been adopted by a majority vote at a meeting of the board of directors attended by two-thirds of the total number of directors; and in addition thereto a report of such distribution shall be submitted to the shareholders’ meeting.

In addition, according to Article 241 of the Company Law, authorizing distribute its legal reserve and the capital reserve, in whole or in part by cash after a resolution has been adopted by a majority vote at a meeting of the board of directors attended by two-thirds of the total number of directors; and in addition thereto a report of such distribution shall be submitted to the shareholders’ meeting.