SK(SH:688155) Zheng Quan Zhi Xing·2025-07-11 10:12Core Viewpoint - The profit distribution management system of Shanghai Xianhui Automation Technology Co., Ltd. aims to establish a scientific, sustainable, and stable distribution mechanism to enhance transparency and protect the legitimate rights and interests of minority investors [2]. Profit Distribution Policy - The company will allocate its after-tax profits in the following order: 10% will be allocated to the statutory reserve fund, and if the statutory reserve fund exceeds 50% of the registered capital, no further allocation is required [2][3]. - If the statutory reserve fund is insufficient to cover previous losses, the current year's profits must first cover those losses before any allocation to the statutory reserve fund [2]. - After covering losses and allocating to the statutory reserve fund, the remaining after-tax profits will be distributed according to the shareholding ratio, unless otherwise specified in the company’s articles of association [2][3]. Basic Principles of Profit Distribution - The basic principles of profit distribution include ensuring a reasonable proportion of distributable profits is allocated to shareholders each year, while also considering the long-term interests of the company and all shareholders [3][4]. - The company may refrain from profit distribution if the asset-liability ratio exceeds 70% or if the operating cash flow is negative at the end of the most recent accounting year [4]. Specific Distribution Policies - The company prioritizes cash dividends when conditions allow, with a minimum of 10% of the current year's distributable profits to be distributed in cash [4][5]. - Over the last three years, the cumulative cash dividends should not be less than 30% of the average annual distributable profits [4][5]. - The board of directors will consider various factors, including industry characteristics and financial health, to propose differentiated cash dividend plans based on the company's development stage and capital expenditure needs [5][6]. Decision-Making and Disclosure - The profit distribution plan must be proposed by the board and approved by the shareholders' meeting, with independent opinions from independent directors disclosed if not fully adopted [7][8]. - The company is required to disclose the cash dividend policy and its execution in the annual report, ensuring transparency and accountability [12][13]. Adjustments to Distribution Policy - The profit distribution policy may be adjusted in response to significant changes in the external operating environment or the company's own operations, with a focus on protecting shareholder interests [11][12]. - Any changes to the profit distribution policy must be approved by a special resolution at the shareholders' meeting [11].