Shenzhen Aoshide Co., Ltd.
Three-Year (2026-2028) Shareholder Return Plan
To improve and perfect Shenzhen Aoshide Co., Ltd.'s (hereinafter referred to as the "Company") profit distribution decision-making procedures and supervision mechanisms, maintain the continuity and stability of the profit distribution policy, strengthen the rationality, stability, and transparency of the cash dividend policy, and further protect and guarantee shareholders' rights to asset income in accordance with law, in accordance with the China Securities Regulatory Commission's "Supervision Guidelines for Listed Companies No. 3—Listed Company Cash Dividends (2025 Revision)" (CSRC Announcement [2025] No. 5) and the "Articles of Association of Shenzhen Aoshide Co., Ltd.", and taking into comprehensive consideration factors such as the company's profitability, development plans, shareholder returns, social capital costs, and external financing environment, the Company has formulated the Three-Year (2026-2028) Shareholder Return Plan (hereinafter referred to as "this Plan") for shareholder returns, the specific content of which is as follows:
I. Factors Considered in Formulating This Plan
The Company focuses on long-term, sustainable development. Based on a comprehensive analysis of the Company's profitability, development plans, shareholder returns, social capital costs, and external financing environment, it fully considers the Company's current and future profit scale, cash flow status, development stage, business model, profit level, and whether there are major capital expenditure arrangements. It establishes a sustainable, stable, and scientific return plan and mechanism by balancing shareholders' short-term and long-term interests.
II. Principles for Formulating This Plan
The formulation of this Plan shall comply with relevant laws and regulations and the profit distribution clauses in the "Company Articles of Association". It shall fully consider and solicit the opinions and wishes of independent directors, the audit committee, and shareholders, especially small and medium shareholders. The Company actively implements a continuous and stable profit distribution policy. The Company's profit distribution policy emphasizes reasonable returns to investors while also considering the Company's sustainable development. Each year, the specific distribution ratio will be determined based on the lower of the distributable profits in the consolidated statements and the parent company statements, and the lower of the capital reserve that can be used for capital increase. The Company will preferentially adopt cash dividends for profit distribution.
III. Specific Shareholder Return Plan for the Company's Next Three Years (2026-2028)
(I) Profit Distribution Methods
In accordance with the "Company Articles of Association", after making up for losses and setting aside common reserves, if the distributable profit for the year is positive and the cumulative distributable profit is positive, the Company may distribute profits through cash, shares, or a combination of cash and shares. When the Company is profitable and does not affect the cash flow required for normal production and operation, the Company will prioritize cash distribution. Under the circumstances stipulated in the "Company Articles of Association", the Company will adopt proactive profit distribution methods, emphasizing shareholder investment returns.
(II) Timing of Profit Distribution
In principle, the Company will distribute profits annually and may also conduct interim and special profit distributions.
(III) Order of Profit Distribution