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Is it necessary to withdraw the statutory surplus reserve before distributing profits to shareholders?
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1. Calculate the distributable profit, and combine the net profit (or loss) of this year with the undistributed profit (or loss) at the beginning of the year to calculate the distributable profit. If the profit available for distribution is negative (that is, loss), subsequent distribution cannot be made; If the profit available for distribution is positive (that is, the accumulated profit of this year), subsequent distribution will be made.

2. Withdraw the statutory surplus reserve fund, and withdraw it according to 10% of the after-tax net profit on the premise that there is no accumulated loss at the beginning of the year. When the statutory surplus reserve fund reaches 50% of the registered capital, it can no longer be withdrawn. The extracted statutory surplus reserve fund is used to make up the losses of previous years or to increase capital. However, the statutory surplus reserve fund retained after capital increase shall not be less than 25% of the registered capital.

3. Withdraw any surplus reserve fund. The extraction standard of surplus reserve fund shall be decided by the shareholders' meeting. When necessary, it can also be used for distribution with the consent of the shareholders' meeting.

4. Pay dividends (distribute profits) to shareholders (investors). The undistributed profits of an enterprise in the previous year can be incorporated into the current year's distribution.