Three-Year (2026-2028) Shareholder Return Plan
To further improve the decision-making process and mechanisms for the Board of Directors and shareholders regarding profit distribution, increase the transparency and operability of profit distribution decisions, facilitate shareholder supervision of the company's operations and distribution, actively reward investors, guide investors to establish long-term and rational investment concepts, and provide shareholders with continuous, stable, and reasonable investment returns, Chongyi Zhangyuan Tungsten Industry Co., Ltd. (hereinafter referred to as the "Company") has formulated the Three-Year (2026-2028) Shareholder Return Plan (hereinafter referred to as the "Plan") in accordance with the "Guiding Opinions No. 3 on Cash Dividends for Listed Companies," the "Shenzhen Stock Exchange Stock Listing Rules," the "Shenzhen Stock Exchange Main Board Listed Company Self-Regulatory Management Guide No. 1 – Norms for Operation of Main Board Listed Companies," and the Company's "Articles of Association," and other relevant regulations, taking into full consideration the Company's actual operating conditions and future development needs. The specific content is as follows:
I. Factors Considered in Formulating This Plan
The Company focuses on future sustainable development, fully values reasonable returns for investors, and comprehensively considers factors such as industry characteristics, development stage, business model, profitability, debt repayment ability, significant capital expenditure arrangements, and investor returns to establish a systematic arrangement for profit distribution, creating a continuous, stable, and scientific return plan and mechanism.
II. Principles for Formulating This Plan
The formulation of this Plan should comply with relevant laws, regulations, normative documents, and the provisions of the Company's "Articles of Association" regarding profit distribution. It should emphasize reasonable investor returns while considering the Company's sustainable development, and firmly establish the awareness of rewarding shareholders. The profit distribution policy should maintain continuity and stability.
III. Company's Three-Year (2026-2028) Shareholder Return Plan
(1) Company's Profit Distribution Policy for the Next Three Years
1. Profit Distribution Methods
The Company adopts cash, stock, or a combination of cash and stock for dividend distribution. When the Company's profits are sufficient and its cash flow can meet normal operating and long-term development needs, it will prioritize the implementation of a cash dividend distribution policy.
In addition to cash dividends, when the Company's profits grow rapidly and its cash flow is abundant, it should focus on synchronizing capital expansion with performance growth and may consider additional stock dividends.
The Company's cash dividend policy aims for stable proportional dividends. If the Company's most recent audited report contains a non-standard unqualified opinion or an unqualified opinion with a paragraph indicating significant uncertainties related to going concern, or if its asset-liability ratio exceeds 70%, it may not distribute profits.