1. At the end of the year, it depends on the company's profitability. After deducting the income tax and the deducted provident fund, the remaining undistributed profits will be decided by the shareholders' meeting. Dividend proportion shall be distributed according to the proportion stipulated in the contract, otherwise, it shall be distributed equally. According to the size of the company, if the company has common shares and preferred shares, it will distribute preferred shares first, and then common shares;

2. Legal basis: Article 166 of the Company Law When distributing the after-tax profits of the current year, the company shall withdraw 10% of the profits and include them in the company's statutory reserve fund. If the accumulated amount of the statutory common reserve fund of the company is more than 50% of the registered capital of the company, it may not be withdrawn. If the statutory reserve fund of the company is insufficient to make up for the losses of the previous year, the profits of the current year shall be used to make up for the losses before the statutory reserve fund is withdrawn in accordance with the provisions of the preceding paragraph.

Second, the limited liability company's profit distribution order

After the company withdraws the statutory reserve fund from the after-tax profits, it may also withdraw the reserve fund from the after-tax profits upon the resolution of the shareholders' meeting or general meeting. After-tax profits of the company after making up losses and drawing provident fund shall be distributed by the limited liability company in accordance with the provisions of Article 35 of this Law; A joint stock limited company shall distribute shares according to the proportion of shares held by shareholders, except that the articles of association of a joint stock limited company stipulate that shares shall not be distributed according to the proportion of shares held. If the shareholders' meeting, shareholders' general meeting or the board of directors violates the provisions of the preceding paragraph and distributes profits to shareholders before the company makes up losses and withdraws the statutory reserve fund, the shareholders must return the profits distributed in violation of the provisions to the company. The company's shares held by the company shall not be distributed. According to the above requirements, the net profit realized by Company A in that year should be drawn from the statutory common reserve at the ratio of 10%, and the balance after distribution can be distributed. The state does not allow direct distribution of profits without appropriation. In addition to funding, there is another problem. Although the company made a profit that year, it lost money the year before. Do you want to make up for these losses, and how? According to the above-mentioned "if the statutory reserve fund of the company is insufficient to make up for the losses in previous years, the profits of the current year should be used to make up for the losses before the statutory reserve fund is withdrawn in accordance with the provisions of the preceding paragraph", it is understood from the above that the net profit of the company in the current year should first make up for the losses in previous years, and this loss refers to the accumulated losses in previous years. From the past, that is, in accounting, the current losses can be made up by past profits, or they can be made up in the future. There are some subtle differences between this loss recovery order and the provisions of the tax law. Article 18 of the Enterprise Income Tax Law stipulates that "the losses incurred by an enterprise in the tax year may be carried forward to the following year to make up for them with the income of the following year, but the maximum carrying-forward period shall not exceed five years". Literally speaking, in tax law, the company's net profit of the year should first make up for the losses of the previous year. But this loss is calculated separately year by year, not cumulatively. This is because the tax profits or losses are paid off once a year, and the past accounts are clear. Therefore, in the tax law, the losses incurred must be made up by future profits, and the current profits do not have to make up for future losses. This is not much different from the loss in accounting, and it is not necessary to make up for it with past profits.

In China, the profit distribution of a limited liability company depends on the company's profitability. After deducting income tax and the deducted provident fund, the remaining undistributed profits shall be decided by the shareholders' meeting. The profit distribution of a limited liability company must abide by the Company Law and the Enterprise Income Tax Law.