I. Review Procedure
Shenzhen Walden Materials Co., Ltd. (hereinafter referred to as "the Company") held the sixth meeting of the eighth board of directors on March 31, 2026. The meeting approved the proposal on the profit distribution plan for 2025 with 9 votes in favor, 0 votes against, and 0 abstentions. This proposal has been reviewed and unanimously approved by the independent directors and will be submitted to the shareholders' meeting for consideration.
II. Profit Distribution Plan for 2025
- Distribution Benchmark Year: 2025
- According to the audit report issued by Zhengdan Zhiyuan (Shenzhen) CPA Firm (Special General Partnership), the Company achieved a net profit attributable to shareholders of the listed company of RMB 1,143,868,383.15 for the year 2025, with the parent company achieving a net profit of RMB 547,162,872.07. In accordance with the Company Law and the Articles of Association, the Company will allocate a statutory surplus reserve of RMB 54,716,287.21 from the parent company's net profit. As of December 31, 2025, the cumulative distributable profit of the parent company is RMB 1,935,560,296.79.
- The profit distribution plan for 2025 is as follows: Based on the current operating and financial conditions of the Company and in line with its strategic development plan, the Company proposes to distribute a cash dividend of RMB 1.65 (including tax) for every 10 shares, totaling RMB 229,284,620.73 to both new and existing shareholders, based on a total share capital of 1,399,887,362 shares, excluding 10,283,600 shares repurchased for the special securities account, resulting in a base of 1,389,603,762 shares. No bonus shares will be issued, and no capital reserve will be converted into share capital; the remaining undistributed profits will be carried forward to future years. The cash dividend for 2025 accounts for 20.04% of the net profit attributable to shareholders of the listed company in the consolidated financial statements for 2025.
- This cash dividend is denominated in RMB, with A-share dividends paid in RMB and H-share dividends paid in HKD, using the average exchange rate published by the People's Bank of China five working days prior to the shareholders' meeting resolution on the profit distribution plan.
- If there are changes in the number of shares to be distributed (total share capital minus the balance of shares in the repurchased special securities account) from the date of this announcement until the equity registration date for the distribution, the total distribution amount will be adjusted while maintaining the per-share distribution amount.
III. Specifics of the Profit Distribution Plan for This Year
- The total cash dividend for this year does not involve any other risk warning situations.