Dividend Distribution Policy and the Implementation thereof
In accordance with Article 188 and Article 197 of the Articles of Association of the Company:
(1)The Company can distribute dividends in the following manners: 1. cash; 2. stock.
(2) The Company's profit distribution policy is as follows: 1. For profit distribution, the Company should pay attention to reasonable return on investment for investors; and the profit distribution policy should maintain continuity and stability; 2. The Company can distribute interim cash dividend.
(3) In distributing the after-tax profits of relevant fiscal year, the profit available for distribution in the financial statements prepared in accordance with the Accounting Standards for Business Enterprises and the International Financial Reporting Standards, whichever is less shall prevail.
(4) The general meeting of shareholders shall authorize the Board of Directors by ordinary resolution to implement the distribution of dividends, according to the principle of equal share for equal dividend and the shares held by shareholders. The shares held by the Company shall not participate in the distribution of profits.
Profit Distribution since 2005 Listing
The year for dividend distributing |
Time for Distribution |
The amount of dividends per share
(tax included) |
The amount of dividends
(tax included) |
RMB |
|
RMB/Share |
Million yuan |
Final dividend for 2005 (from June 15, 2005 to December 31, 2005) |
May 2006 |
0.125 |
2,261 |
Final dividend for 2006 |
June 2007 |
0.34 |
6,150 |
Special dividend for 2007 |
November 2007 and June 2008 |
1.13 |
22,544 |
Final dividend for 2007 (from July 1, 2007 to December 31, 2007) |
June 2008 |
0.18 |
3,580 |
Final dividend for 2008 |
June 2009 |
0.46 |
9,149 |
Total |
— |
— |
43,684 |
In accordance with the Corporate Income Tax Law of the People’s Republic of China and its implementation regulations implemented from January 1, 2008, the Company, when allocating final dividends to non-resident enterprise shareholders on the shareholder’s list of H shares, is under obligation to withhold corporate income tax, according to the tax rate of 10%. Any H shares registered in name of non-individual shareholders, including HKSCC Nominees Limited, other agent or trustee, or in name of other organizations and groups shall all be regarded as shares held by non-resident enterprise shareholders, therefore, the corporate income tax will be deducted. Please carefully read the abovementioned contents. If any investor needs to be listed on the shareholder’s list of H shares, please inquire about relevant procedures from the agent or trust institution. The Company has no obligation to determine the identification of shareholder and will not undertake the responsibility of determining the identification shareholder. And the Company will withhold the corporate income tax in strict accordance with laws and the shareholder’s list of H shares on the date of record. Any request proposed due to failure to determine the identification of shareholder in a timely manner or mistake in determining the identification of shareholder will not be accepted.
In accordance with provisions of relevant tax laws of the state, for the cash dividend of A share natural person shareholder, the Company will withhold individual income tax according to the tax rate of 10%. For the cash dividend of the Qualified Foreign Institutional Investor (hereinafter referred to as “QFII’) holding A shares unconditional in sales of the Company, the Company will withhold corporate income tax at the rate of 10%, in accordance with the provisions of Notice on Issues Concerning the Withholding of Enterprise Income Tax on Dividends, Bonuses and Interests Paid to QFII by Chinese Resident Enterprises (State Tax Letter [2009] No. 47) (hereinafter referred to as the Notice) promulgated by the State Administration of Taxation on January 23, 2009. Where any shareholder believes that the dividend income thereof needs to enjoy the treatment of any tax treaty (arrangement), the shareholder shall, in accordance with the provisions of the Notice, submit an application to competent tax authority by himself or herself after obtaining dividend. The income tax for the cash dividends of A share corporate shareholders and institutional investors other than the aforesaid QFII shall be paid by themselves.
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