Dividend policy

In the event of an annual surplus after tax, the company is obligated to first offset any accumulated losses. Pursuant to legal requirements, ten percent (10%) of the profit shall be set aside as statutory surplus reserves. However, if the statutory surplus reserves reach the paid-in capital amount, further allocation is not mandatory. The allocation or reversal of special surplus reserves may be considered based on statutory regulations or business needs. In the presence of any remaining balance, the Board of Directors shall propose the distribution of dividends to shareholders at the Annual General Meeting, subject to their resolution.
When distributing dividends from retained earnings, capital surplus, or statutory surplus reserves, whether in full or in part, in cash, the authority to do so shall require the presence of two-thirds (2/3) or more of the directors and a resolution passed by a majority of the attending directors. A report shall be made to the shareholders' meeting.
The dividend distribution policy of the company must take into account factors such as the current and future investment environment, funding requirements, domestic and international competitive conditions, and capital budgeting. The total amount of dividends distributed to shareholders shall not be less than ten percent (10%) of the profit after tax for the fiscal year, minus the surplus reserves legally set aside. However, if the profit after tax for the fiscal year, minus the surplus reserves legally set aside, results in a per-share dividend amount less than NT$0.1, dividends may be omitted. Shareholders' dividends may be distributed in the form of cash or stocks, with the condition that cash dividends shall not be less than ten percent (10%) of the total dividend amount.

Allocation of dividends