Share Dividend Policy and the Articles of Incorporation

Share Dividend Policy and the Articles of Incorporation

 【Share Dividend Policy】

 If the company has a surplus in its annual final accounts, it shall first pay income tax and make up for accumulated losses, then set aside 10% of the balance as statutory surplus reserve, and after setting aside or reversing special surplus reserve in accordance with laws and regulations, together with the accumulated undistributed surplus of the previous year, as the distributable surplus for the current year, the board of directors shall draft a profit distribution proposal.

 The Company’s dividends will take into account the characteristics of changes in the business environment, the Board of Directors will assess the capital needs for future years, and comprehensively consider factors such as profitability, financial structure and the degree of dilution of earnings per share, and propose an appropriate ratio of cash and stock dividends.

 Shareholder dividends are primarily paid in cash. However, if the company has significant investment plans or needs to improve its financial structure, a portion of the dividends may be paid in stock dividends, which may range from 0% to 60% of the total dividends for the year.

Dividend Distribution

 【Article 26-1 of the Articles of Incorporation】

 If the company's surplus distribution is distributed in cash, according to paragraph 5 of Article 240 of the Company Act, the board of directors is authorized the distributable dividends after a resolution has been adopted by a majority vote at a meeting of the board of directors attended by two-thirds of the total number of directors, and report to the shareholders’ meeting; when it is to be distributed in the form of new shares, it shall be submitted to the shareholders’ meeting for resolution before the distribution.

 According to the provision of paragraph 1 of Article 241 of the Company Act, the legal reserve and the capital reserve, in whole or in part are distributed in cash; according to the Company Act, the distribution shall be made based on the resolution of a board of directors’ meeting attended by more than two-thirds of directors with a majority of voting rights of the attending directors, which shall also be reported to the shareholders ’ meeting; when the distribution is made by issuing new shares, it shall be submitted to the shareholders’ meeting for resolution before distribution.

Allotment and Dividend Distribution Over the Last Five Years

Issue
Year
Dividend
Year
Dividend Allotment
(NTD/Per Share)
Cash (NTD/Per Share) Stock (NTD/Per Share)
Ex-dividend date Surplus Reserve Total Ex-rights date Surplus Reserve Total
202320220.12023/07/06-0.10.1---0
202220210.82022/08/090.8-0.8---0
202120200.32021/08/110.10.20.3---0

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