Eastroc Beverage sets 2026-2028 dividend blueprint; commits to minimum 80% annual cash payout

Eastroc Beverage (Group) Co., Ltd. released a three-year profit-distribution roadmap (2026-2028) that formalises a high cash-dividend commitment and reinforces governance over payout decisions.

Key elements

1. Dividend hierarchy • Primary emphasis on cash dividends, with scope for share dividends, mixed payouts, or other legally permissible forms. • Profit sharing to be conducted mainly on an annual basis; interim distributions remain optional.

2. Cash-dividend prerequisites • A standard and unqualified audit opinion on annual accounts. • Positive distributable profit at the parent-company level after loss coverage and statutory reserves. • Sufficient cash to support ongoing operations and long-term growth. • Flexibility to withhold or reduce cash payouts if the company records a loss, ends the year with negative distributable profit or cash balance, posts negative operating cash flow, or faces material cash expenditures (≥20% of latest audited net assets and >RMB300 million, or ≥10% of latest audited total assets) within 12 months.

3. Payout ratios • In ordinary circumstances, not less than 80% of annual net profit attributable to shareholders must be distributed in cash. • Cash used for on-market share repurchases will be treated as part of the cash dividend total. • When cash and share dividends are combined, differentiated ratios apply: – Mature stage, no major capex: ≥80% cash. – Mature stage, with major capex: ≥40% cash. – Growth stage, with major capex: ≥20% cash.

4. Share bonus issuance Distribution of bonus shares may be proposed if operations are strong and the board deems the share price misaligned with capital size, subject to meeting cash-dividend conditions and shareholder approval.

5. Policy adjustment safeguards Any revision to the distribution policy requires board endorsement and at least a two-thirds majority at a shareholder meeting, with mechanisms to collect minority-shareholder and independent-director feedback.

6. Implementation timeline Once an annual dividend plan is approved by shareholders, payment or share issuance must be completed within two months.

The Profit Distribution and Return Plan will take effect upon shareholder approval at the forthcoming general meeting.