Shareholder Dividend Return Plan for the Next Three Years (2026-2028)
Zhejiang Sanhua Intelligent Control Co., Ltd. (hereinafter referred to as "the Company") is committed to sustainable development while placing a high priority on reasonable investment returns for shareholders, focusing on the stability and continuity of investment returns. To further standardize the Company's dividend behavior, ensure reasonable investment returns for shareholders, and increase the transparency and operability of dividend distribution decisions, the Company has formulated a shareholder dividend return plan for the next three years (2026-2028) (hereinafter referred to as "the Shareholder Return Plan" or "this Plan"), as detailed below:
Article 1 Considerations for Formulating This Plan
The Company comprehensively considers its actual situation, development strategy, corporate vision, profitability, shareholder returns, capital costs, external financing environment, and cash flow status to establish a sustainable, stable, and scientific return plan and mechanism for investors, thereby making institutional arrangements for profit distribution to ensure the continuity and stability of the profit distribution policy.
Article 2 Principles for Formulating This Plan
The formulation of this Plan complies with relevant laws, regulations, normative documents, and the provisions of the Company's Articles of Association regarding profit distribution policies. It fully considers and listens to the opinions of minority shareholders, values reasonable investment returns for investors, and balances the Company's sustainable development, ensuring the continuity and stability of the profit distribution policy.
Article 3 Specific Shareholder Return Plan for the Next Three Years (2026-2028)
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Distribution Methods: The Company may distribute dividends in cash, stock, or a combination of cash and stock, or other methods permitted by laws and regulations. If cash distribution conditions are met, the Company will prioritize cash dividends for profit distribution and may conduct mid-term distributions.
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Minimum Cash Dividend Ratio: Under the premise that the Company's cash flow meets normal operations and long-term development, the Company will, in principle, conduct cash dividends once a year. In any three consecutive years, the cumulative cash distribution shall not be less than 30% of the average distributable profit achieved in the last three years. The specific dividend ratio will be proposed by the Company's board of directors based on relevant regulations and the Company's operational situation and submitted for approval by the shareholders' meeting.