The Board determines the dividend distribution policy of the company for each year on the basis of its business operation, cash flow, financial condition and prospects, and the policy shall be submitted to annual general meeting for approval and implementation. In accordance with Sinopec Corp.'s Articles of Association, the company's profit available for distribution comprises the net profit available for allocation and the unallocated profit brought forward from the previous year, the dividend distribution will not exceed 40% of the profit available for distribution. The profit available for allocation for the year will be the net profit as determined in accordance with the PRC Accounting Standards for Business Enterprises and International Accounting Standards, whichever is the lesser, after deducting 10% to be transferred to the statutory surplus reserve.