Henan Kedi Dairy Co.Ltd(002770)
Special note on no profit distribution in 2021
Henan Kedi Dairy Co.Ltd(002770) (hereinafter referred to as "the company") deliberated and adopted the profit distribution plan for 2021 at the 17th meeting of the 4th board of directors and the 9th meeting of the 4th board of supervisors respectively. The proposal needs to be submitted to the 2021 general meeting of shareholders of the company for deliberation and approval. The details are as follows:
The audit of Zhejiang Tianping Certified Public Accountants (special general partnership) confirmed that the net profit attributable to the shareholders of the parent company in 2021 was 6904799773 yuan, and the net profit realized by the parent company was -26292266189 yuan; As of December 31, 2021, the accumulated undistributed profit in the consolidated statements of the company is -97833978364 yuan, and the accumulated undistributed profit in the statements of the parent company is -107810497573 yuan.
1、 2021 profit distribution plan of the company
The board of directors drew up the profit distribution plan for 2021 as follows: no cash dividends and no bonus shares; No capital reserve will be converted into share capital.
2、 Reasons for not putting forward cash profit distribution plan in this year
According to the relevant provisions on profit distribution in the articles of association, the principle of profit distribution is to maintain the continuity and stability of the company's profit distribution policy, while taking into account the sustainable development of the company and the overall interests of all shareholders. At the same time, the condition of cash dividend is that the distributable profit realized in the year is positive and the cash flow is abundant. The implementation of cash dividend by the company will not affect the subsequent sustainable operation of the company. In view of the negative value of the distributable profit realized by the company in 2021 and the negative value of the undistributed profit balance of the parent company in 2021, according to the relevant provisions of the articles of association, the company does not have the basic conditions for cash dividend in 2021.
After the above profit distribution plan is deliberated and approved by the board of directors and the board of supervisors respectively, it needs to be deliberated by the 2021 annual general meeting of shareholders of the company. The plan complies with the provisions of the articles of association, the relevant decision-making procedures are perfect, the independent directors perform their duties and express their independent opinions on the proposal.
It is hereby explained.
Henan Kedi Dairy Co.Ltd(002770) board of directors April 30, 2022
