Legal analysis: According to the relevant regulations, the dividend distribution of private equity funds should meet the following conditions: (1) After the private equity funds sell profitable stocks, they will get profits; (2) The current year's income of the Fund can only be distributed after making up the losses of previous years; (3) After the distribution of fund income, the net value of each fund share cannot be lower than the face value.

Legal basis: People's Republic of China (PRC) Securities Investment Fund Law.

Article 3 For a fund established by non-public offering, its income distribution and risk bearing shall be stipulated in the fund contract;

Article 93 A fund contract shall be concluded for a non-public offering of funds. The fund contract shall include the principles and implementation methods of fund income distribution;

Interim Measures for the Supervision and Administration of Private Equity Funds in People's Republic of China (PRC) Article 24 Private equity fund managers and private equity fund custodians shall truthfully disclose the fund investment, assets and liabilities, investment income distribution and other information to investors in accordance with the contract.