Baotou Dongbao Biotechnology Co., Ltd.
Three-Year (2026-2028) Shareholder Dividend Return Plan
To improve Baotou Dongbao Biotechnology Co., Ltd.'s (hereinafter referred to as the "Company") profit distribution policy, establish a sound, sustainable, and transparent dividend decision-making and supervision mechanism, enhance dividend decision-making transparency and operability, and actively reward shareholders and fully protect their legitimate rights and interests, the Company's Board of Directors, in accordance with the "Company Law of the People's Republic of China," "Supervision Guidelines for Listed Companies No. 3 - Listed Company Cash Dividends," and the "Articles of Association," and in combination with the Company's actual situation, has formulated the Company's Three-Year (2026-2028) Shareholder Dividend Return Plan (hereinafter referred to as the "Shareholder Dividend Return Plan" or "This Plan"), as follows:
I. Principles for Formulating This Plan
The Company's Three-Year Shareholder Dividend Return Plan emphasizes reasonable investment returns for shareholders, while balancing the Company's operating capital needs. During the planning period, the Company will adhere to the principle of cash dividends as the primary form of distribution, provided that operating funds are sufficient. A scientific, sustainable, and stable profit distribution policy will be implemented, with the proportion of annual cash dividends to distributable profits maintained at a reasonable and stable level.
II. Considerations for Formulating This Plan
The primary considerations for the Company in formulating this plan are the reasonable investment returns for investors, especially small and medium investors, and the Company's long-term sustainable development. Based on the Company's development strategy during the planning period, the Company will comprehensively analyze industry characteristics, social capital costs, the external financing environment, and other factors. It will fully consider the Company's actual operating conditions, capital needs, profitability, trends in net cash flow from operating activities, and shareholder investment return requirements to make institutional arrangements for profit distribution, ensuring the reasonableness, continuity, and stability of the profit distribution policy. During the planning period, when formulating specific cash dividend plans, the Board of Directors will carefully research and deliberate on the timing, conditions, minimum proportion, adjustment conditions, and decision-making procedures for cash dividends, and will fully solicit opinions from independent directors and shareholders, especially small and medium shareholders.
III. Three-Year (2026-2028) Shareholder Dividend Return Plan
(I) Profit Distribution Methods
The Company's profit distribution may take the form of cash, stock, a combination of cash and stock, or other methods permitted by laws and regulations. The Company prioritizes cash dividends for profit distribution. When conditions for cash dividends are met, the Company shall use cash dividends for profit distribution. If stock dividends are used for profit distribution, there should be genuine and reasonable factors such as the Company's growth, and the dilution of earnings per share due to the increase in share capital.
(II) Conditions for Cash Dividends
The Company intends to implement cash dividends when the following conditions are met simultaneously:
- The Company's net profit in the most recent accounting year is positive.
- The undistributed profits at the end of the reporting period for both consolidated and parent company statements are positive.
- The Company's normal production and operation capital needs are met, and the Company has no major investment plans or major cash expenditure plans (excluding capital expenditure for fundraising projects).