Securities code: Jihua Group Corporation Limited(601718) securities abbreviation: Jihua Group Corporation Limited(601718) Announcement No.: pro 2022005 Jihua Group Corporation Limited(601718)
Announcement on 2021 profit distribution plan
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:
● in 2021, the net profit attributable to the parent company in the consolidated statement is negative, and the distributable profit of the parent company in the statement year is negative. Considering the company's actual operation and future long-term development needs, in order to ensure the long-term and healthy development of the company and safeguard the interests of all shareholders, the company plans not to distribute profits in 2021.
1、 Contents of profit distribution plan
According to the audit of Dahua certified public accountants, the net profit of the company (parent company) in 2021 was -56165383271 yuan, plus the undistributed profit at the beginning of the year of 56728579825 yuan, and the profit available for distribution to shareholders at the end of 2021 was 563196554 yuan.
In 2021, the net profit attributable to the parent company in the consolidated statement of the company was negative, and the distributable profit realized in the statement of the parent company was negative. In accordance with the notice on further implementing matters related to cash dividends of listed companies, the guidelines for the supervision of listed companies No. 3 - cash dividends of listed companies and other relevant laws and regulations as well as the provisions of the articles of association of the China Securities Regulatory Commission, the company plans not to distribute profits in 2021 in order to ensure the long-term and healthy development of the company and safeguard the interests of all shareholders.
This plan needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation.
2、 Decision making procedures performed by the company
(I) convening, deliberation and voting of the board meeting
On April 25, 2022, the company held the 11th meeting of the 5th board of directors, deliberated and passed the proposal on the profit distribution plan for 2021. All directors of the company unanimously agreed to the above proposal. The number of directors participating in the voting was in line with the legal proportion, and the voting at the meeting was legal and effective.
This profit distribution plan needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation.
(II) opinions of independent directors
The independent directors believe that the profit distribution plan for 2021 proposed by the company is in line with the provisions of China Securities Regulatory Commission and Shanghai Stock Exchange on cash dividends and the articles of association. It is made on the basis of comprehensive consideration of the actual operation and future long-term development needs of the company, and in line with the long-term interests of all shareholders, including minority shareholders, There is no intentional damage to the interests of shareholders. We agree to the profit distribution plan and agree to submit it to the general meeting of shareholders of the company for deliberation.
(III) opinions of the board of supervisors
On April 25, 2022, the company held the fifth meeting of the Fifth Board of supervisors, deliberated and adopted the proposal on the profit distribution plan for 2021. The board of supervisors believes that the company's profit distribution plan for 2021 complies with the relevant provisions of the company law and the articles of association, comprehensively considers the actual operation and future long-term development needs of the company, is conducive to the long-term healthy development of the company and conforms to the interests of all shareholders.
This profit distribution plan needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation.
It is hereby announced.
Jihua Group Corporation Limited(601718) board of directors
April 27, 2002
