The Company’s dividend policy is determined on the basis of the Company Act and its
Articles of Incorporation so as to ensure that the Company operates as usual and to safeguard
investors’ rights and interests.
Please refer to Article 29~31 of the Articles of Incorporation for our dividend policy below.
If there is any profit in a fiscal year, the Company’s
pre-tax profits in such fiscal year, prior to deduction of compensations to employees and
directors, shall be distributed to employees as compensation in an amount of 2%~8% of
thereof and to directors as compensation in an amount of not more than 2% of such profits.
The Company may distribute in the ways of shares or cash to employees, employees of
subsidiaries of the Company, which depends on certain specific requirements determined by
the Board of Directors. The aforementioned compensations to directors can only be
distributed by cash. The distribution of employees’ and directors’ compensation
shall be reported to the Annual General Meeting. In the event that the Company has
accumulated losses, the Company shall reserve an amount to offset accumulated losses.
When allocating the net profit for each fiscal year, the Company
shall first offset its losses in previous years and then set aside the legal reserve at 10%
of net profit until the accumulated legal reserve equals the Company’s capital; and
also set aside special reserve in accordance with relevant regulations or as requested by
the authorities. Any balance left over and the beginning balance of retained earnings shall
be distributed. The earnings appropriations proposal shall be proposed by the Board of
Directors and approved by the Annual General Meeting.
The Board of Directors shall prepare the proposal for distribution
and submit it to the Annual General Meeting for approval after taking into account company
profits, capital and financial structure, future business demands, retained earnings, legal
reserve, and market competition conditions at the end of every fiscal year.
Considering the financial, business and operational factors of the
Company, the Company may allocate not less than 50% of distributable earnings for the year
for distribution. In order to ensure sound financial structure and safeguard
investors’ rights and interests, the Company adopts a dividend equalization policy.
More than 50% of distributable earnings for the year shall be distributed as cash dividends.