Excerpts from Articles of Incorporation – about dividend
In years with earnings, the Company shall set aside not less than 5% as profit sharing bonuses to its employees and 2% of its annual profits as compensation to its directors and supervisors; provided, however, that the Company shall have reserved a sufficient amount to offset its accumulated losses. The aforesaid employee compensation can be paid in company shares or in cash. Employees of the Company's subsidiary companies are entitled to the distribution of the aforesaid shares, and the conditions and methods are to be set by the Board of Directors.
In years with earnings, before allocating such earnings, the Company shall first pay taxes, make up for accumulated losses, and then set aside a legal capital reserve at 10% of the earnings left over, and appropriate a sum for special surplus reserve or special revolving surplus reserve as prescribed by other laws. The remaining earnings will be allocated according to earning allocation plan formulated by the Board of Directors and approved shareholders' meeting in accordance with the dividend policy in Article 26-2.
The Company is currently in a changing and highly competitive environment. Since the company is during the stage of its growth, dividend will be distributed in the form of stock dividends tied in with cash dividends, based on future capital needs, financial structure, and shareholders' equity, among which cash dividends will not exceed 50% of the total number of dividends.