Zhongtong Finance APP news, Huafon Microfibre (300180.SZ) released an announcement, in accordance with its "Articles of Association" and by the decision of shareholders, the company's wholly-owned subsidiaries Jiangsu Huafon Microfibre Material Co., Ltd. (hereinafter referred to as "Jiangsu Microfibre") and Weifutong Technology Co., Ltd. (hereinafter referred to as "Weifutong"), will distribute RMB 400 million and RMB 120 million in profit to shareholders in cash with the undistributed profits audited by 2023, respectively. Recently, the company has received RMB 100 million and RMB 20 million in cash dividends from Jiangsu Microfibre and Weifutong, respectively, totaling RMB 120 million. Jiangsu Microfibre and Weifutong will make a capital plan in combination with their business operations to remit the remaining cash dividends. They promise to transfer the cash dividends to Shanghai Microfibre in full before September 30, 2024, at the latest.

Jiangsu Microfibre and Weifutong are wholly-owned subsidiaries of the company included in the consolidated financial statements, and the company owns 100% equity of them. The above profit distribution will have no impact on the company's financial statements for 2023 but will increase the net income for the parent company's financial statements for 2024. However, it will not increase the profit of the consolidated financial statements for 2024, and therefore will not affect the overall business performance of the company for 2024.