In accordance with the Company Act and our Articles of Incorporation, if there is a net profit in the annual financial statements, the earnings shall first be used to pay taxes and offset any prior years’ losses. Thereafter, 10% of the remaining profit shall be allocated to the legal reserve, unless it has already reached the Company’s paid-in capital. Additional special reserves shall be appropriated or reversed in line with relevant regulations.

Any remaining earnings, combined with undistributed profits from previous years, will be reviewed by the Board of Directors. After considering future business plans and capital requirements, the Board will propose a distribution plan for approval at the shareholders’ meeting.

Following the public listing of the Company, if dividends (including earnings, legal reserves, or capital reserves distributable under the law) are to be paid in cash, such distributions may be approved by a resolution passed by at least two-thirds of the directors present at a meeting attended by a majority of directors, and will be reported at the shareholders’ meeting.

The Company’s dividend policy is designed to balance shareholder returns with long-term development goals. Taking into account capital structure and financial planning needs, at least 20% of distributable earnings shall be allocated as dividends to shareholders each year.

Given that the Company operates in a capital- and technology-intensive industry and is currently in a phase of stable growth, dividends may be distributed in the form of cash or stock. The cash portion shall account for no less than 20% of the total dividends distributed for the year.