(1) Principles of profit distribution
The company implements a continuous and stable profit distribution policy. Profit distribution should pay attention to reasonable investment returns to investors, maintain the continuity and stability of profit distribution, and comply with relevant laws and regulations; the company's profit distribution should also take into account the company's reasonable funds. The principle of demand shall not exceed the range of accumulated distributable profits, and shall not impair the company's ability to continue operating.

(2) Form of profit distribution
Companies can distribute profits in cash, stock, or a combination of cash and stock. When the company distributes dividends, priority shall be given to cash dividends. If a company is eligible for cash dividends, it shall use cash dividends for profit distribution.

(3) The company generally distributes profits according to the fiscal year.
If the conditions for cash dividends are met, the company will distribute cash dividends once a year in principle, and may also distribute interim profits (cash) according to the company's capital needs.

(4) The specific conditions, interval and minimum ratio of cash dividends
● The company shall implement cash dividends when the following specific conditions are met at the same time:
1. The company's distributable profit for the year (that is, the company's after-tax profit after making up for losses and withdrawing the provident fund) is positive;
2. The audit institution issues a standard unqualified audit report on the company's annual financial report;
3. The company has no major capital expenditures in the next 12 months. Major capital expenditures refer to: the company's planned external investment, acquisition of assets or other fixed assets in the next 12 months The cumulative expenditure reaches or exceeds the company's latest audited 30% of net worth.

● Minimum percentage of cash dividends
In the case of meeting the above cash dividend conditions, the board of directors of the company shall comprehensively consider factors such as the characteristics of the industry, development stage, its own business model, profitability, and whether there are major capital expenditure arrangements, and the implementation of cash dividends shall comply with the following provisions:

1. Recognition of the company's development stage and the proportion of cash dividends: If the company's development stage is in a mature stage and there is no major capital expenditure arrangement, when making profit distribution, the proportion of cash dividends in this profit distribution should be at least 80%. ; If the company's development stage is in the mature stage and there are major capital expenditure arrangements, when making profit distribution, the minimum proportion of cash dividends in this profit distribution should reach 40%; the company's development stage is in the growth stage and has major capital expenditure arrangements. , When making profit distribution, the minimum proportion of cash dividends in this profit distribution should reach 20%. If the development stage of the company is not easy to distinguish but there are major capital expenditure arrangements, it may be handled in accordance with the provisions of the preceding paragraph.

2. Since the current development stage of the company is still in the growth stage, and it is expected to have significant capital expenditure arrangements, when the company distributes profits, the minimum proportion of cash dividends in profit distribution should reach 20%. The board of directors of the company shall, in accordance with the company's business development and in accordance with the provisions of the preceding paragraph, amend the provisions of this article on the company's development stage in a timely manner.

3. In principle, the company shall distribute cash dividends once a year, and the board of directors of the company may also propose interim cash dividends based on the company's profitability.

(5) Profit distribution by other means
When the company is operating in good condition, the board of directors believes that the company's stock price does not match the company's share capital scale, and there are real and reasonable factors such as the company's growth and the dilution of net assets per share, and the issuance of stock dividends is beneficial to the overall interests of all shareholders of the company. Under the premise of complying with the above provisions on cash dividends, a stock dividend distribution or a profit distribution plan in the form of a combination of cash and stock dividends may be proposed.