Securities code: China United Network Communications Limited(600050) securities abbreviation: China United Network Communications Limited(600050) Announcement No.: 2022015 China United Network Communications Limited(600050)
Announcement on profit distribution plan at the end of 2021
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important content tips:
● cash dividend of RMB 0.0391 per share (tax included)
● the profit distribution is based on the total share capital registered on the equity distribution registration date after deducting China United Network Communications Limited(600050) (hereinafter referred to as “the company” or “the company”) from the special account for repurchase, and the specific date will be specified in the equity distribution implementation announcement.
Before the equity registration date of equity distribution, if the total share capital of the company that can participate in profit distribution changes, it is proposed to maintain the total distribution unchanged and adjust the dividend proportion per share accordingly.
● the profit distribution plan can only be implemented after being deliberated and approved by the general meeting of shareholders of the company.
1、 Contents of profit distribution plan
As of December 31, 2021, the company’s profit available for distribution at the end of the period was RMB 60 million. According to the resolution of the board of directors, at the end of 2021, the company plans to distribute profits based on the total share capital registered on the equity distribution registration date after deducting the special account for repurchase of the company. The profit distribution plan is as follows:
The company holds the equity of China United Network Communications (Hong Kong) Co., Ltd. (hereinafter referred to as “Unicom red chip company”) through China United Network Communications Limited(600050) (BVI) Co., Ltd. according to the articles of association, the cash from dividends of Unicom red chip company shall be deducted from the company’s daily cash expenses, taxes and various accumulation funds that should be withdrawn according to laws and regulations, Fully distributed to shareholders in cash.
On March 11, 2022, the board of directors of China Unicom red chip company proposed to pay the final dividend of 2021, with a dividend of 0.096 yuan per share. If approved by the annual general meeting of shareholders of China Unicom red chip company, the company is expected to receive a dividend of about RMB 1.291 billion calculated according to the shareholding ratio. According to the articles of association, after receiving such dividends, after deducting the company’s daily expenses and taxes of about 25 million yuan, deducting the statutory reserve of about 127 million yuan in 2022, and adding the company’s profit available for distribution to shareholders of 60 million yuan at the end of 2021, the profit available for distribution to shareholders is about 1.199 billion yuan.
According to the detailed rules for the implementation of share repurchase by listed companies of Shanghai Stock Exchange and other relevant provisions, the company’s shares in the company’s special securities account for repurchase will not participate in this dividend distribution.
Accordingly, the board of directors suggests that the company plans to pay a cash dividend of RMB 0.391 (including tax) for every 10 shares after the closing of the equity registration date determined in the announcement on the implementation of equity distribution, and plans to pay a total dividend of about RMB 1.192 billion (including tax) to the shareholders of the company, The remaining profits available for distribution to shareholders will be used for profit distribution in subsequent years.
Before the equity registration date of equity distribution, if the total share capital of the company that can participate in profit distribution changes, it is proposed to maintain the total distribution unchanged and adjust the dividend proportion per share accordingly.
The profit distribution plan needs to be submitted to the general meeting of shareholders of the company for deliberation.
2、 Decision making procedures performed by the company
(I) deliberation and voting of the board of directors
At the 11th meeting of the 7th board of directors and the 5th meeting of the 7th board of supervisors held on March 11, 2022, the company deliberated and adopted the proposal on profit distribution in 2021 and agreed to submit the proposal to the general meeting of shareholders for deliberation.
(II) opinions of independent directors
The independent directors believe that the company’s profit distribution plan at the end of 2021 comprehensively considers the profit status, debt and cash flow level and the capital demand for future development, which is in line with the dividend provisions of the articles of association. Relevant deliberation and voting procedures comply with relevant national laws, regulations and policies and the requirements of the articles of association. The independent directors agree to the company’s profit distribution plan at the end of 2021 and agree to submit the above proposal to the general meeting of shareholders for deliberation after being approved by the board of directors.
3、 Relevant risk tips
This profit distribution plan combines the company’s development stage, future capital demand and other factors, and will not have a significant impact on the company’s operating cash flow, nor will it affect the company’s normal operation and long-term development.
It is hereby announced.
China United Network Communications Limited(600050) March 11, 2002
