Stock Codes: 600801, 900933    Stock Abbreviations: Huaxin Cement, Huaxin B Share     Ref: Lin 2012-017

 

 

To the best of our knowledge, the Board of Directors of the Company and its members confirm that there is no material false or misleading statement or material omission in this announcement and shall be severally and jointly liable for the truthfulness, accuracy and completeness of its content.

 

 

● Cash dividend per share before and after tax

Unit: Yuan

 

●     Date of share registration

 

● Ex-dividend date: May 25, 2012

 

● Date of cash dividends distribution

 

I. Shareholders’ General Meeting that adopting the Profit Distribution Plan

 

On April 20, 2012, the Annual Shareholders’ General Meeting 2011 of the Company reviewed and adopted the Annual Profit Distribution Plan 2011 of the Company.

 

II. Profit Distribution Plan

 

1. Distribution year: 2011

 

2. Distribution scope: All shareholders of the Company

 

3. On the basis of the total 935,299,928 shares, a cash dividend of 1.5 Yuan per 10 shares (incl. tax) shall be distributed to all shareholders, after tax, every 10 shares will be distributed cash dividend of 1.35 Yuan, hence 140,294,989 Yuan shall be distributed. 

 

III. Implementation date

 

1. Date of share registration

 

2. Ex-dividend date: May 25, 2012

 

3. Date of cash dividends distribution

 

IV. Distribution objects

 

All shareholders in the registration of China Securities Depository and Clearing Corporation Limited (CSDCC) Shanghai Branch after 3.00 pm on May 24, 2012 (A share registration date) and on May 30, 2012 (B share registration date).

 

V. Dividends distribution implementation

 

1. Cash dividends for the following A shareholders shall be distributed by the Company: Holchin B.V., state-owned shares (held by Huaxin Group Co., Ltd.) and Huaxin Group Co., Ltd..

 

2. CSDCC Shanghai Branch shall be entrusted to distribute cash dividends through its capital clearing system for other shareholders who have registration record on the registration date.  Cash dividends for A share holders who have already transacted the appointed trades shall be directly transferred to their accounts by their mandatory securities agencies; cash dividends of listed share holders who haven’t transacted the appointed trades shall be temporarily kept by CSDCC Shanghai Branch, they can draw their cash dividends on the second trading day after they transact the appointed trades.  

 

3. Cash dividends for A share individual investors shall be distributed after tax, the individual income tax shall be withheld and paid by the Company at the tax rate of 10%.  Hence the actual distribution amount shall be 0.135 Yuan/share.

 

4. For Qualified Foreign Institutional Investor (QFII) and RQFII who hold A shares of the Company, the Company shall withhold and pay the income tax for them at the tax rate of 10% according to the "State Administration of Taxation – Notification on Relevant Issues Regarding China Resident Enterprises Distributing Dividends or Interests to QFII and Withholding and Paying Income Tax for Them"(Guo Shui Han 2009 No. 47).  Hence the actual distribution amount after tax shall be 0.135 Yuan/share.  

 

5. For A share institutional investors who are recognized as “resident enterprises” defined in “Enterprise Income Tax Law', the Company shall not withhold and pay the income tax for them. Their cash dividends shall be distributed before tax and the actual distribution amount shall be 0.15 Yuan/share.

 

6. For B shareholders, cash dividends shall be calculated in accordance with the provisions of the Articles of Association - the middle rate of USD/Yuan (1:6.2970) announced by People's Bank of China on April 23 2012 (the first working day after the resolution date of the 2011 Annual Shareholders' General Meeting).  Cash dividend shall be 0.023821 USD/share (tax included). According to the relevant provisions of “Official Reply on Collecting Enterprise Income Tax from Non-resident Enterprises Who Obtain Dividends of B-share Stocks" (Guo Shui Han [2009] No. 394) issued by the State Administration of Taxation (SAT), the business income tax shall be withheld and paid by the Company at the tax rate of 10% when the Company distributes its 2011 annual cash dividends to the non-resident enterprise B shareholders.  The actual distribution amount of cash dividend shall be 0.021439 USD/share (after tax).  For other individual shareholders, according to the provisions of “Notice on Individual Income Tax Policy for Obtaining Dividends” released by the Ministry of Finance and SAT on June 13, 2005, the individual taxable income shall be calculated according to 50% of the distributed dividends.  The individual income tax shall be withheld and paid at the tax rate of 20% in accordance with the current tax law.  The actual distribution amount of cash dividend shall be 0.021439 USD/share (after tax).  For non-resident individual B shareholders (with their account number between C900000000-C909999999), cash dividends shall be distributed before tax.  The distribution amount of cash dividend shall be 0.023821 USD/share.

 

VI. Consultation Information

 

Telephone: (027) 87773898

Fax: (027) 87773962

Persons to contact: Ms. Wang Lu / Mr. Peng Puxin

Contact address: Securities Office of the Company

 

V. Document for Inspection:

 

Resolutions of the Annual Shareholders’ General Meeting 2011 and the Announcement

 

Huaxin Cement Co., Ltd.

May 21, 2012