GCI stock code:002544
Communication Network Construction Informationized Intelligent Private Network communication equipment Cloud Computing & Big Data Electronic Circuit Design & Manufacturing Other Businesses
Shareholder Returns
 
Shareholder ReturnsDividends Provisions in the Charter of Shareholder Returns (Excerpt)
   Article 156   After a resolution on profit distribution plan is passed on the General Meeting of Shareholders of the Company, the Company’s Board of Directors is required to complete the distribution of dividends (or shares) within two months after the General Meeting of Shareholders.
    Article 157    The Company shall implement the sustainable, stable and positive profit distribution policy, and pay attention to reasonable returns to investors while taking into account the Company's sustainable development.The Company shall develop the profit distribution policy on the basis of comprehensive analysis of the profitability, business development planning, shareholder returns, social cost of capital, external financing environment and other factors.
    The Company's profit distribution policy shall be passed by the General Meeting of Shareholders, the Board of Directors, the Board of Supervisors as well as the shareholders with separate or consolidated holding of more than 3% of the shares of the Company shall have the right to put forward proposals relating to the profit distribution policy.
    The Company's management and Board of Directors shall put forward reasonable proposals and plans for dividends, which shall be submitted to the General Meeting of Shareholders for consideration after being passed by a majority of all directors, and shall be passed by more than half of the voting rights held by the shareholders attending the General Meeting of Shareholders (including shareholder's attorneies).The Board of Directors, independent directors, and the shareholders meeting certain conditions may solicit voting rights from the Company’s shareholders at the General Meeting of Shareholders.。
    When deliberating the specific cash dividend programs, the Board of Directors shall carefully study and demonstrate the Company's cash dividend of timing, conditions, the requirements of minimum proportion and its decision-making procedures and other matters, the independent directors shall independently issue opinions on the cash dividend preplan; and the Board of Supervisors shall supervise the implementation of the Company’s dividend policy as well as the situations and decision-making procedures of the shareholder return plan by the Board of Directors and the management.
    When deliberating the profit distribution policies and programs, the General Meeting of Shareholders shall initiatively communicate and exchange with shareholders, especially minority shareholders through a variety of channels, shall fully listen to the views and aspirations of the minority shareholders by providing an online voting platform to shareholders in addition to on-site meeting at the Company's shareholder meeting, and shall timely response to questions of concern of the minority shareholders.
    The Company shall strictly disclose the circumstances in implementation of the profit distribution preplan and the cash dividend policy in the annual reports and semi-annual reports in accordance with the relevant provisions.If no cash dividend plan on earnings of the annual reporting period is raised, the Company’s Board of Directors shall specify the reasons for failure in dividend distribution in the current annual report, and the purpose and usage plan of the funds not used for dividend distribution retained by the Company, and the independent directors shall independently issue opinions and make public disclosure.
    After the dividend policy is determined, it must not be adjusted freely, resulting in reduction of the level of return to shareholders, if there is a need to adjust the dividend policy and the shareholder return plan as a result of the external business environment or significant changes in its operating conditions, the Company should demonstrate and explain the reasons in detail, a motion shall be submitted to the General Meeting of Shareholders by the Board of Directors for voting, and shall be passed by more than two-thirds of the voting rights of the shareholders attending the General Meeting of Shareholders (including shareholder's attorneies).
    The Company can use cash, stock, combination of cash and stock or other methods permitted by laws and regulations to make distribution of profits.
    The Company shall, in accordance with the principle of same shares with the same benefit, make dividend distribution according to the number of shares held by each shareholder.
    When the Company implement cash dividend, the following conditions must be met simultanously: 1. The Company’s distributable profits of that year is positive; 2. a standard unqualified audit report report in specifc to the Company’s annual financial report of that year is issued by the audit institution; 3. the Company had no major investment plan or significant cash expenditures and other events occurred (excluding the fund-raising project).The major investment plan or significant cash outlay means: the accumulated expenditures on foreign investment, acquisition of assets, purchase of equipment or other capital construction and other cash needs intended to be made by the Company within the next twelve months are expected to reach or exceed a total of 50% of the Company's latest audited net assets or 30% of the total assets.
Subject to the conditions of the cash dividend, the company once a year in principle cash dividend, the Board of Directors may propose an interim cash distribution companies according to the company's earnings and capital demand conditions.
    The Company shall maintain the continuity and stability of the profit distribution policy, in principle, the profits distribution in cash annually should not be less than 10% of the distributable profits in the current year, and the cumulative distribution of cash profits in last three years should not be less than 30% of the average annual distributable profits achieved in the recent three years.Under the premise of ensuring full cash dividend distribution, the stock dividend approach can be adopted for distribution of profits.
    The Company’s distribution of profits shall not exceed the range of cumulative distributable profits, and shall not damage the Company's continued viability
In case of existence of illegal occupation of the Company’ funds by any shareholder, the Company shall deduct cash dividend allocated to such shareholder, to repay its occupied funds.
 
Shareholder Return Plan (Excerpt)
    Article III Specific Shareholder Return Plan in the Next Three Years (2012-2014):
   (I) The Company can use cash, stock, combination of cash and stock or other methods permitted by laws and regulations to make distribution of profits.In principle, the Company shall make cash dividend distribution at a time annually, the Board of Directors may propose the Company to make an interim cash distribution according to the Company's earnings and capital demand conditions.
    (II) Under the provisions of the ‘Company Law’ and other relevant laws and regulations as well as the ‘Articles of Association’, the Company shall, after fullly extacting the legal public reserve funds and any public reserve funds, in principle, make annual cash distribution of profits not less than 10% of the distributable profits in the current year and the cumulative distribution of cash profits in future three years not less than 30% of the average annual distributable profits to be achieved in the future three years under the premise that the Company's earnings and cash can meet the Company's continuing operations and long-term development.
    (III) Under the premise of ensuring full cash dividend distribution, the Company can adopt the methods of further increasing of the stock dividend distribution, transfer of public reserve funds, etc., so as to make profit distribution.
   (IV) At the end of each fiscal year of the Company, the management and Board of Directors of the Company shall put forward reasonable proposals and plans for dividends in combination with the Company’s earnings, capital requirements and shareholder return plan, and submit to the General Meeting of Shareholders for voting, the independent directors shall independently issue opinions on the dividend preplan, and the Board of Supervisors shall supervise the implementation of the Company’s dividend policy as well as the situations and decision-making procedures of the shareholder return plan by the Board of Directors and the management.
    Article IV The development cycle and the related decision-making mechanisms for the shareholder return plan:
    (I) The Company shall make summarization every three years, and review the Shareholder Return Plan in the Next Three Years at least once every three years, and make appropriate amendments on the dividend distribution policy being implemented by the Company according to the views of the shareholders (in particular, the public shareholders), independent directors and supervisors, so as to determine the shareholder return plan for the period.
    (II) The Company’s Board of Directors shall give full consideration to the size of the Company's earnings and cash flow situations, stage of development and current capital requirements in combination with specific business data, and develop the shareholder return plan in the next three years based on protection of the shareholders' equity as a starting point and in combination with views of the shareholders (in particular, public investors), independent directors and supervisors, the Board of Directors shall submit a motion to the General Meeting of Shareholders for voting, at the same time, the Company should also provide a network voting approach to facilitate minority shareholders to attend the General Meeting of Shareholders, and the motion shall be implemented after being decided by vote on the Company's General Meeting of Shareholders.
 
The Company’s Dividend Distribution in Recent Years
Year of Dividend Distribution Dividend Distribution Plan Date of Stock Rights Registration Ex-right Date Listed Date of Bonus Share
In 2011 Cash dividends of 1.25 yuan for every 10 shares (including tax) 20120711 20120712  
In 2010 10 bonus shares and 2.5 yuan cash dividends for every 10 shares (including tax) 20110609 20110610 20110610