Dividend Policy and Payment

The Company has the policy to pay dividend each year at the rate of not less than 40% of the net profit deduction of all types of reserved fund as required in the Company’s Articles of Association and as required by law. If unnecessary, the payment of such dividend shall not significantly affect the Company’s normal business operation.

Nevertheless, the dividend payment policy may be changed, depending on investment plan, necessity, and other suitable factors in the future based on a condition that the operation must yield highest benefit to shareholders, such as use the money as investment fund to expand Company’s business, as a reserve for loan repayment or there may be change of market condition which may adversely affect the Company’s future cash flow. The Company’s Board of Directors shall be empowered to consider the option. Moreover, the Board of Directors’ resolution approving dividend payment shall be proposed for final approval with shareholders’ meeting. The exemption is on interim dividend payment which the Company’s Board of Directors shall be authorized to make decision and report the decision at the next shareholders’ meeting.

The dividend payment regarding the operation in 2016, the 2017 AGM had a resolve for no dividend payment due to the 2015 Separated Financial Statement reported deficit.

The dividend payment regarding the operation in 2017, the 2018 AGM had a resolve for no dividend payment due to the 2017 Separated Financial Statement reported deficit.

The dividend payment regarding the operation in 2018, the 2019 AGM had a resolve for no dividend payment due to the 2018 Separate Financial Statement reported accumulate deficit.

The dividend payment regarding the operation in 2019, the Board of Directors had a resolve for the dividend payment by cash for the operation in 2019, the 2020 AGM held on October 21, 2020 approved for no dividend payment for the year 2019 because of the company has to maintain cash flow to cope with all kinds of situations that may arise from the COVID-19 pandemic. From the company’s current business situation, the purchasing power of customers has declined. There is a delay in the investment of various entrepreneurs involved directly or indirectly with the company group’s products and services. The company is therefore required to maintain sufficient financial liquidity, and suitable for sustainable business operation.

The dividend payment regarding the operation in 2020, the Board of Directors resolved for no dividend payment due to the operating result for the year 2020 according to the separate financial statement reported loss. As of December 31, 2020 the company reported accumulated losses, so dividend cannot be paid. This agenda will be effective when the 2021 AGM approves on April 21, 2021.