Company’s Dividend Payment Policy
The Company has a policy to pay dividends to its shareholders at the rate of no less than 40.00 percent of the net profit from separate statements after deduction of corporate income tax and all types of reserves as specified in law and the Company’s Articles of Association. However, there must be no accumulated loss in the shareholders’ equity. However, the dividend payment may be subject to change as necessary and suitable as the Company’s Board of Directors deems appropriate taking into account factors mainly for the Shareholders’ interest, e.g. economic conditions and the Company’s performance results, financial position, financial liquidity, cash flow, reserves for business management, business expansion, investment in the future, as well as reserves to pay off loans or as working capital within the Company. Conditions and limitations specified in loan agreements and dividend payment do not have a material impact on the Company’s and subsidiaries’ business as usual. Annual dividend payment must be approved by the Shareholders’ Meeting, except for interim dividend payment when the Company’s Articles of Association allow it. The Board of Directors may approve interim dividend payment from time to time when it considers that the Company makes enough profit to do so and the interim dividend payment must be reported to the next Shareholder’s Meeting.
Subsidiaries’ Dividend Payment Policy
Dividend payment of the subsidiaries is subject to the approval authority of the Board of Directors and the Shareholder’s Meeting of individual subsidiaries. The subsidiaries have the policy to pay dividends to its shareholders at the rate of no less than 40.00 percent of the net profit from separate statements after deduction of corporate income tax and all types of reserves specified in law and the Articles of Association of individual subsidiaries. However, there must be no accumulated loss in the shareholders’ equity. However, the dividend payment may be subject to change as necessary and suitable as the subsidiaries’ Board of Directors deems appropriate taking into account factors mainly for the Shareholders’ interest, e.g. economic conditions and the Company’s performance results, financial position, financial liquidity, cash flow, reserves for business management, business expansion, investment in the future, as well as reserves to pay off loans or as working capital within the Company. Conditions and limitations specified in loan agreements and dividend payment do not have a material impact on the Company’s and subsidiaries’ business as usual.
This is to ensure that the dividend payment of the subsidiaries is in line with the corporate governance code, transparent and auditable. When the subsidiaries pay dividends, the Board of Directors of each subsidiary will report to the next Board of Directors’ Meeting.