Dividend Policy

Dividend Policy According to the Articles of Incorporation：

If the Company records a profit in a year, the Company shall set aside no less than 1% of the profit for employee's remuneration, which shall be distributed in shares or cash by resolutions of the Board of Directors and shall be distributed to employees of the parent or subsidiaries of the Company who meet certain criteria. The Company may, by resolutions of the board meeting, set aside no more than 3% of the said profit for directors’ remuneration. Employee remuneration and the directors' remuneration distribution proposals shall be reported to the shareholders' meeting. However, when the Company still has a cumulative deficit, it shall reserve an amount to compensate the deficit in advance and then allocate the employee remuneration and the directors' remuneration at the percentage specified in the preceding paragraph.

If the Company made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit (however, provided the legal reserve has reached the amount of the Company's paid-in capital, this may not apply), setting aside or reversing a special reserve in accordance with the laws and regulations; in case of any remaining balance, along with the accumulated undistributed earnings, may be proposed for earnings distribution by the Board of Directors to the shareholders’ meetings to distribute the shareholders’ bonuses. The Company's dividend policy is based on its current and future development plans, the consideration of the investment environment, capital requirements, domestic and international competition, and shareholders' interests. Each year, no less than 5% of the distributable earnings may be contributed for distributing shareholders’ bonuses; provided, when the distributable earnings are less than the paid-in capital, the distribution may be exempted. Dividends may be distributed to shareholders in cash or in shares, with cash dividends being no less than 10% of the total dividends.