002394SZSE

Three-Year (2026-2028) Shareholder Return Plan

Lianfa Co., Ltd.·

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Jiangsu Lianfa Textile Co., Ltd. outlines its three-year shareholder return plan (2026-2028) to improve its profit distribution policy, enhance transparency, and reward shareholders. The plan prioritizes cash dividends, considering the company's long-term development, profitability, and cash flow. It establishes principles for dividend distribution, including a minimum 20% payout of distributable profits for cash dividends, and outlines the decision-making mechanism for the plan.

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Jiangsu Lianfa Textile Co., Ltd.

Three-Year (2026-2028) Shareholder Return Plan

To further improve Jiangsu Lianfa Textile Co., Ltd.'s (hereinafter referred to as the "Company") profit distribution policy, enhance the transparency of profit distribution, actively reward shareholders, and guide investors in establishing long-term and rational investment concepts, in accordance with the requirements of the China Securities Regulatory Commission's "Supervision Guidelines for Listed Companies No. 3 - Listed Company Cash Dividends" and the "Articles of Association of Jiangsu Lianfa Textile Co., Ltd." (hereinafter referred to as the "Articles of Association") and other relevant regulations, and in conjunction with the Company's actual situation, the Board of Directors has formulated the Company's Three-Year (2026-2028) Shareholder Dividend Return Plan (hereinafter referred to as the "Plan"). The specific content is as follows:

Article 1 Considerations for the Company's Formulation of the Shareholder Return Plan

The Company formulates this Plan with a view to the Company's long-term and sustainable development. Based on a comprehensive analysis of the Company's actual operating and development situation, shareholder requirements and intentions, social capital costs, and the external financing environment, it fully considers the Company's strategic development plan and its current stage of development, its current and future profitability and scale, cash flow status, operating capital needs, and the bank credit and financing environment. This establishes a mechanism for sustained, stable, and scientific returns to investors, ensuring the continuity and stability of the profit distribution policy, and effectively balancing reasonable investment returns for investors with the Company's sustainable development.

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