Xinhua Jin (600735):2018 Annual Interest Distribution Announcement

Shandong Xinhua brocade international Limited by Share Ltd 2018 annual rights allocation announcement

Important note:

Share distribution ratio?

A shares cash dividend 0.061 yuan per share? Relevant date

The board of directors and all directors of the company guarantee that there is no false record, misleading statement or major omission in the contents of this announcement, and shall bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.

Stock class

Differentiation bonus: whether or not?

(1) the date and date of the general meeting of shareholders through the allocation of plans.

The profit distribution plan was considered and approved by the company's annual general meeting of shareholders in 2018 April 29, 2019.

Two. Allocation plan

1. annual distribution: 2. allocation in 2018:

After the closing of the Shanghai stock exchange in the afternoon of the day of stock registration, all shareholders of the company are registered in the Shanghai branch of China Securities Depository and Clearing Co., Ltd. (hereinafter referred to as "China settlement Shanghai branch").

3. allocation scheme:

The profit distribution is based on the total share capital of 375992296 shares before the implementation of the scheme, and the cash dividend is 0.061 yuan (including tax) per share. The total cash dividend is 22935530.06 yuan.

Three. Related dates

Four, the allocation of implementation measures

1. implementation measures

(1) the dividends of the tradable shares under the unlimited sale conditions are entrusted to the Shanghai branch of the China Clearing Company, and the shareholders of the Shanghai stock exchange have been registered on the stock registration day after the closing of the Shanghai stock exchange through their capital clearing system.

The investor who has made the designated paction may receive the cash bonus at the designated securities business department on the day of bonus payment, and the dividends of the shareholders who have not made the designated paction are temporarily held by the Shanghai branch of the China Clearing Company.

(2) the distribution of bonus shares or the pfer of additional capital stock by the Shanghai branch of the China Clearing Company shall be directly counted into the shareholders' accounts in proportion to the number of shareholders registered on the stock exchange day after the closing date of the stock registration date of the Shanghai stock exchange.

2. self issued object

The company's shareholders Shandong Lu Jin import and Export Group Co. Ltd. and Zhang Jianhua's cash dividends from the company's shares are distributed by the company itself.

3. tax deduction

（1）对于自然人股东与证券投资基金股东，根据《关于实施上市公司股息红利差别化个人所得税政策有关问题的通知》（财税[2012]85号）和《关于上市公司股息红利差别化个人所得税政策有关问题的通知》（财税[2015]101号）的有关规定，个人从公开发行和转让市场取得的公司股票，持股期限超过1年的，股息红利所得暂免征收个人所得税，每股实际派发现金红利人民币0.061元；对个人持股1年以内（含1年）的，公司暂不扣缴个人所得税，每股实际派发现金红利人民币0.061元，待个人转让股票时，中国结算上海分公司根据其持股期限计算应纳税额，由证券公司等股份托管机构从个人资金账户中扣收并划付中国结算上海分公司，中国结算上海分公司于次月5个工作日内划付公司，公司在收到税款当月的法定申报期内向主管税务机关申报缴纳。

The specific actual tax burden is: the shareholders' holding period is less than 1 months (including 1 months), the dividend income is fully included in the taxable income amount, the actual tax burden is 20%, and the holding period is from 1 months to 1 years (including 1 years), the tax rate is reduced by 50%, and the real tax burden is 10%.

(2) for qualified foreign institutional investors (QFII), according to the provisions of the circular issued by the State Administration of Taxation on the issues concerning the payment of dividends, dividends and interest withheld by enterprises of Chinese residents to the QFII (the tax Letter No. [2009]47), the enterprise income tax is withheld on the basis of the tax rate of 10%, and the cash dividend is actually issued at 0.0549 yuan per share. If the dividend income that it considers is necessary to enjoy any tax agreement (arrangement), it may apply to the competent tax authorities in accordance with the regulations after obtaining dividends.

(3) for Hongkong market investors (including enterprises and individuals) to invest in the company's shares through Shanghai and Hong Kong, the dividends will be distributed in Renminbi by the Shanghai branch of the China Clearing Company in accordance with the nominal holders' accounts of the shares. The tax shall be deducted according to the Circular of the Ministry of finance, the State Administration of Taxation and the securities and Futures Commission on the taxation policy for the pilot interconnection of the Shanghai and Hong Kong stock markets (fiscal and tax [2014]81). The company withdraws the income tax at 10% of the tax rate, and the actual dividend payment is 0.0549 yuan per share after tax.

(4) for other legal person shareholders (including institutional investors), the company will not withhold and pay corporate income tax, and taxpayers shall decide whether they should pay the enterprise income tax locally according to the tax law. The actual cash dividend is 0.061 yuan per share.

Five. Related consultation methods

If there is any doubt about the rights and interests allocation, please contact the following contact.

Contact Department: securities department telephone number: 0532-85967330

Notice hereby.

Shandong Xinhua brocade international Limited by Share Ltd board

May 22, 2019