Dividend Policy
1. The article 25-1 of Hengs’ memorandum and articles of association stipulates:
Our dividend distribution policy is contingent upon a comprehensive assessment of various factors, including the current and future investment environment, capital requirements, domestic and international competition, and capital budgeting. This policy aims to strike a balance between shareholder interests, dividend distribution, and the company's long-term planning. Each year, in accordance with legal requirements, a dividend distribution proposal is formulated by the Board of Directors and presented for approval at the shareholders' meeting. As our company is currently in a growth phase, aiming to ensure a sound capital structure and maintain a healthy capital adequacy ratio, we adopt a balanced dividend policy. In addition to complying with the aforementioned provisions, the distribution of dividend shares for the current year may be conducted through cash or stock dividends. When there are earnings for the fiscal year, the dividend distribution to shareholders ranges from 10% to 90% of distributable earnings for the current year, with the cash dividend ratio not falling below 10%.
The Board of Directors is authorized, with the attendance of more than two-thirds of its members and approval from a majority of the attending directors, to distribute dividends, capital surplus, or statutory earnings surplus, in full or in part, in the form of cash. This decision shall be reported to the shareholders' meeting.
