For any earnings in the annual account, the Company shall extract and pay taxes and cover the accumulative deficit for the previous year first as per laws; next, extract the 10% statutory surplus reserve and calculate the accumulative undistributed earnings after adding the undistributed earnings at the beginning of period; then, extract or reserve special surplus reserve as per laws, which shall serve as the distributable earnings of current year. Board of directors shall prepare the earning distribution scheme and submit it to board of shareholders for resolution.

Since the Company’s enterprise lifecycle is at the nature stage, but the industrial environment may vary with other external factors; the Company will still expand domestic and foreign markets actively for further growth, the Company, while distributing earnings, shall discuss our future capital demand, tax system and influence on shareholders, besides considering the actual earnings first; with the goal of keeping dividends steady, decide the dividend distribution. The dividends may be distributed either in cash or by stocks, but the distribution ratio shall not be higher than 50% of the total divided amount. Board of directors shall prepare the distribution scheme and make resolution according to Company Act.

The Company shall distribute earnings or offset deficit after the end of a half of each accounting year. The proposal of the first half of the fiscal year's earnings distribution or deficit offset shall be submitted along with the business report and financial statements to the Audit Committee for review and then approved by the Board of Directors.

The Company, while distributing dividends as per the preceding provision, shall estimate and retain payable taxes and cover deficit and extract surplus reserve as per laws; extract or reserve special surplus reserve as per laws. For any earnings, the balance and accumulative undistributed earnings at the beginning of period shall be the distributable earnings. However, if such legal reserve amounts total to the total authorized capital, this provision shall not apply.

The Company distributing surplus earning in preceding paragraph in the form of new shares to be issued by the Company shall follow the Company Act; if such surplus earning is distributed in the form of cash, it shall be approved by a meeting of the Board of Directors.