Securities Code: 002396 Securities Abbreviation: Star-Net Communication Announcement No.: Lin 2026-06 Fujian Star-Net Communication Co., Ltd. Announcement on the 2025 Profit Distribution and Capital Reserve Transfer to Share Capital Plan The Company and all members of the Board of Directors guarantee the content of this announcement is true, accurate, and complete, and that there are no false records, misleading statements, or material omissions.
I. Deliberation Procedures (1) On March 26, 2026, Fujian Star-Net Communication Co., Ltd. (hereinafter referred to as the "Company") held the 19th meeting of the 7th Board of Directors, which deliberated and approved the "Proposal on the 2025 Profit Distribution and Capital Reserve Transfer to Share Capital Plan." (2) This profit distribution plan needs to be submitted to the Company's 2025 Annual General Meeting of Shareholders for deliberation and approval. It can only be implemented after approval by the shareholders' meeting.
II. Basic Information of the 2025 Profit Distribution and Capital Reserve Transfer to Share Capital Plan (1) Audited by Sigma Certified Public Accountants (Special General Partnership), the Company's consolidated net profit attributable to shareholders of the listed company in 2025 was RMB 408,861,465.49. The parent company's net profit for the year was RMB 206,973,052.24. In accordance with the "Company Law" and the "Articles of Association," etc., the Company will not withdraw statutory surplus reserves in 2025. Adding the undistributed profit at the beginning of the year of RMB 3,112,021,561.87, and deducting the cash dividends paid in 2024 of RMB 144,230,766.75 (original cash dividend distribution of RMB 146,444,642.25, with RMB 2,213,875.50 deducted due to the repurchase and cancellation of restricted shares that did not meet the exercise conditions), the distributable profit at the end of 2025 was RMB 3,174,763,847.36. The Company's proposed 2025 profit distribution plan is as follows: Based on the total share capital entitled to profit distribution on the equity registration date when the distribution plan is implemented, the Company will distribute a cash dividend of RMB 2.50 (tax inclusive) per 10 shares from undistributed profits. No bonus shares will be issued this year, and the remaining undistributed profits will be carried forward to the next year. Based on the total share capital of 585,695,098 shares as of December 31, 2025, minus the 2,830,849 shares held by the Company in the repurchase account, totaling 582,864,249 shares, the estimated cash dividend amount is RMB 145,716,062.25 (tax inclusive). If this plan is approved by the shareholders' meeting, the total cash dividend in 2025 will account for 35.64% of the net profit attributable to the parent company's shareholders for the year. The Company's proposed 2025 capital reserve transfer to share capital plan is as follows: Based on the total share capital of 585,695,098 shares as of December 31, 2025, minus the 2,830,849 shares held by the Company in the repurchase account, totaling 582,864,249 shares, the Company will transfer 3 shares for every 10 shares from capital reserves to share capital, totaling 174,859,274 shares. The amount of share capital transferred does not exceed the balance of "Capital Reserve - Share Capital Premium" at the end of the reporting period. After the share capital transfer, the Company's total share capital will increase to 760,554,372 shares (subject to the final registration by China Securities Depository and Clearing Corporation Limited Shenzhen Branch). (2) During the period from the disclosure of this profit distribution plan to its implementation, if the Company's share capital changes due to convertible bond conversion, share repurchase, exercise of equity incentives, or listing of newly issued shares from refinancing, the implementation will be based on the adjusted share capital, and the principle of maintaining the same distribution ratio will be followed. The dividend amount will be adjusted accordingly. (Note: The Company's shares held in the repurchase account are not entitled to participate in profit distribution and capital reserve transfer to share capital.)