Dividend Policy and Payment

Dividend Policy

The Company has a dividend payment policy at the rate of not less than 40% of the net profit after deducted by the corporate income tax and legal reserves of each of such year. Such dividend payment rate may be changed from the determined rate depending on the operational results, financial position, cash flow, necessity for investment, working capital, additional investment, business expansion, conditions and limitations as stipulated in the loan agreements as well as other appropriateness in relation to management of the Company as the Board of Directors and/or the shareholders deemed appropriate. The dividend paid shall not exceed the retained earnings as appearing on the Company’s financial statements and shall be paid in accordance with relevant law. After the Board of Directors resolve to approve the annual dividend payment, the Board of Directors shall propose to the shareholders’ meeting for approval, except for the interim dividend payment which the Board of Directors are authorized to approve and report to the shareholders on the next shareholders’ meeting.