Musi Health Sleep Co., Ltd. Three-Year (2026-2028) Shareholder Dividend Return Plan
To further improve and refine Musi Health Sleep Co., Ltd.'s (hereinafter referred to as the "Company") profit distribution policy, establish a scientific, continuous, and stable dividend decision-making and supervision mechanism, actively reward shareholders, guide investors to establish a philosophy of long-term and rational investment, and in accordance with relevant laws and regulations such as the "Guiding Opinions on the Supervision of Listed Companies No. 3 - Cash Dividends for Listed Companies" and the "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guide No. 1 - Normative Operation of Main Board Listed Companies," as well as the "Articles of Association," the Company has specially formulated the "Three-Year (2026-2028) Shareholder Dividend Return Plan" (hereinafter referred to as the "Plan"), the specific content of which is as follows:
I. Considerations for the Formulation of this Plan
The Company will focus on long-term and sustainable development. Based on a comprehensive consideration of the Company's actual operating conditions, development goals, shareholder requirements and wishes, especially the reasonable return needs of small and medium shareholders, the Company's external financing environment, and the cost of social capital, a continuous, stable, and scientific return plan and mechanism for investors will be established, thereby making institutional arrangements for profit distribution to maintain the continuity and stability of the Company's future profit distribution policy.
II. Principles for the Formulation of this Plan
The Company formulates or adjusts the shareholder dividend return plan in accordance with the relevant provisions of the profit distribution policy in the "Articles of Association." The Company will implement a continuous and stable profit distribution policy, attach importance to reasonable investment returns for shareholders, and take into account the Company's actual operating conditions and sustainable development for the year. The Company's shareholder dividend return plan will fully consider the opinions of shareholders (especially small and medium shareholders) and independent directors.
III. Mechanism for the Formulation and Amendment of this Plan
The Company's Board of Directors shall review the shareholder return plan at least once every three years. If adjustments to the dividend policy and shareholder return plan are required due to significant changes in the Company's external operating environment or its own operating conditions, the adjustment shall be based on the protection of shareholder interests, with detailed argumentation and explanation of the reasons. The Board of Directors shall formulate a profit distribution policy adjustment plan, which shall be submitted to the shareholders' meeting for deliberation and approval.
IV. Shareholder Dividend Return Plan for the Next Three Years (2026-2028)
(I) Principles of Profit Distribution
The Company will implement a continuous and stable profit distribution policy. The specific profit distribution methods will be determined based on the Company's profit realization status, cash flow status, and share capital size. The Company's Board of Directors and Shareholders' Meeting shall fully consider the opinions of independent directors and public investors in the decision-making and argumentation process of the profit distribution policy. The Company's cash dividend policy aims for stable growth in dividends. If the Company's audit report for the most recent year is not a standard unqualified opinion or contains a paragraph related to going concern uncertainty, or if the asset-liability ratio is higher than 70%, or if operating cash flow is negative, no profit distribution may be made.
(II) Forms of Profit Distribution
The Company will distribute dividends in the form of cash, stock, or a combination of cash and stock. Where conditions for cash dividends are met, the Company will prioritize cash dividends. When the Company has major investment plans or significant cash expenditures, or other situations requiring funds for the Company's normal production and operation, the Company may distribute dividends in the form of stock.