Huafu Color Spinning Announces Shareholder Return Plan For 2012-2014 Years

Color spinning: 2012-2014 year shareholder return plan

Announcement date 2012-07-30

Stock Code: 002042 securities short: Hua Fu color spinning Announcement No.: 2012-025

Huafu color spinning stock Limited by Share Ltd

2012-2014 year shareholder return plan

In order to improve and perfect the scientific, continuous, stable and pparent dividend decision and supervision mechanism of Huafu color spinning Limited by Share Ltd (hereinafter referred to as "the company"), we should actively repay the investors, earnestly protect the legitimate rights and interests of small and medium-sized shareholders, and develop the strategy of the comprehensive corporate development, profitability, shareholder returns, external financing environment and financing costs, and so on. We will formulate the 2012-2014 year shareholder return plan of Huafu color spinning Limited by Share Ltd (hereinafter referred to as the "plan"). The details are as follows:

1. Formulating the principles of this plan.

The formulation of this plan should be in accordance with the relevant provisions relating to the distribution of profits in the articles of association of the company. We should pay attention to the reasonable return on the investment of the shareholders, take into account the actual operating conditions and sustainable development of the company, deal with the short-term interests of the company and the relationship of long-term development on the basis of the interests of the shareholders fully, determine the reasonable profit distribution scheme, and formulate the plan of the profit distribution policy in order to keep the continuity and stability of the profit distribution policy of the company.

Two, the factors that should be considered in formulating the plan

1, a comprehensive analysis of the company's industry characteristics, development strategy and business plan, profitability, shareholder returns, external financing environment and financing costs and other factors.

2, give full consideration to the company's current and future earnings scale, cash flow status, development stage, project investment funds demand, bank credit and financing environment and so on.

3, balance shareholders' reasonable return on investment and long-term development of the company.

Three, the company in the next three years (2012-2014 years) specific

Plan

1, the way of distribution: a company can distribute profits in the form of cash, stock or cash combined with stock, and can make cash dividends in the medium term.

2, the minimum profit sharing ratio of the company's profit distribution: according to the provisions of the articles of association, when the net profit realized in the year is positive and the total undistributed profit is positive at the end of the year, the company shall make cash dividends. The profit allocated in cash shall be less than 10% of the profit allocated in the current year, and the profit accumulated in cash in the past three years shall not be less than 30% of the annual average distributable profit realized in the three years.

The proportion of cash dividends in each year shall be worked out by the board of directors according to the company's profit level and business development plan, and shall be submitted to the shareholders' general meeting for examination and approval.

3, in the next three years (2012-2014), the company can, on the premise of ensuring the minimum cash dividends ratio and the size of the company's capital stock, in accordance with the cumulative distribution of profits, provident fund and cash flow conditions, and in order to maintain the expansion of capital stock and the growth of performance, the company can use the share dividend method to distribute profits.

Four. Formulation and implementation of profit distribution plan:

1, the company should make reasonable dividend proposals and plans according to the company's profitability, capital requirements and shareholder return plans, and draw up a profit distribution plan by the board of directors.

The independent directors of the company should express their independent opinions.

The board of supervisors shall deliberate on the profit distribution plan.

2, the shareholders' meeting shall vote on the profit distribution plan put forward by the board of directors according to the regulations.

When the annual report period is profitable and the cash dividends are not eligible for cash dividends, the independent directors shall submit their opinions to the shareholders' meeting after giving their views, and the company shall provide the shareholders with a network voting mode when holding the shareholders' meeting.

3, after the company's shareholders' meeting has made a decision on the profit distribution plan, the board of directors of the company shall complete the distribution of dividends (or shares) within 2 months after the shareholders' meeting.

Five, the formulation cycle and related decision-making mechanism of shareholder return planning.

The company's board of directors determines the profit distribution policy formulation plan according to the articles of association.

If the company needs to adjust the profit distribution policy according to the production and operation, investment planning, long-term development needs, or because of the great changes in the external business environment and its own business situation, the board of directors of the company needs to adjust the plan according to the actual situation of the company, which can be implemented after deliberation and approval by the board of directors and submitted to the shareholders' general meeting for deliberation and approval.

The board of directors must ensure that every three years will review the plan once again to ensure that the proposed change does not violate the profit distribution policy defined in the articles of association.

Six. The unfinished matters in this plan shall be carried out in accordance with relevant laws and regulations, normative documents and the articles of association.

The plan shall be interpreted by the board of directors of the company and shall take effect from the date of deliberation and approval by the shareholders' meeting of the company.

Hua Fu

Limited company

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