Approved by the Shenzhen Stock Exchange “Notice on the Listing of RMB Common Stock Shares of Guangdong Hongchuan Smart Logistics Co., Ltd.” (Shenzhen Shang [2018] No. 135), the company’s initial public offering of RMB ordinary shares on March 28, 2018. 6,08 million shares, the total share capital after the issue was 243,329,200 shares.

The company's profit distribution policy is:

1. Principle of dividend distribution: The company implements a proactive profit distribution policy, attaches importance to the reasonable return on investment of investors and takes into account the sustainable development of the company, and combines the company's profitability with the actual needs of the business's future development strategy to establish a continuous investor A stable return mechanism. Maintain consistency, rationality and stability of the profit distribution policy. The board of directors, the board of supervisors and the general meeting of shareholders shall fully consider the opinions of independent directors, external supervisors and public investors in the decision-making and argumentation process of the profit distribution policy.

2. Profit distribution form: The company distributes profits by means of cash, stock dividends or a combination of the two, and gives priority to cash distribution. The profit distribution shall not exceed the scope of accumulated distributable profits and shall not impair the company's ability to continue to operate. The company's board of directors can propose a medium-term cash dividend based on the company's profit and capital needs.

3. The specific proportion of profit distribution: If there is no major investment plan or major capital expenditure, the company should distribute dividends in cash. The accumulated profit distributed in cash in the last three years is not less than 30 in the last three years. %. The company may distribute bonus shares while implementing the above cash distribution dividends. The company's provident fund is used to make up for the company's losses, expand the scale of production and operation, or increase the company's capital. When the statutory reserve fund is converted into capital, the retained reserve fund will be no less than 25% of the company's registered capital before the transfer.

When the board of directors formulates the profit distribution plan, it comprehensively considers the industry characteristics of the company, the ranking of the industry, competitiveness, profit rate and other factors to demonstrate the development stage of the company, and whether there are major capital expenditure arrangements and other factors to formulate the company's profit distribution. policy. The profit distribution plan follows the following principles:

1) When the company's development stage is mature and there is no major capital expenditure arrangement, the proportion of cash dividends in the profit distribution plan should reach 80%;

2) When the company's development stage is mature and there are major capital expenditure arrangements, the proportion of cash dividends in the profit distribution plan should reach 40%;

3) In the development stage of the company, which has a growth period and has major capital expenditure arrangements, the proportion of cash dividends in the profit distribution plan should reach 20%;

     If the company's development stage is difficult to distinguish but there are major capital expenditure arrangements, it shall be handled in accordance with the provisions of the preceding paragraph.

A major investment plan or significant capital expenditure refers to one of the following situations:

1) The company's estimated expenditure on foreign investment, acquisition of assets or purchase of equipment in the next 12 months will exceed or exceed 50% of the company's latest audited net assets, and exceeds 50 million yuan;

2) The company's estimated expenditure on foreign investment, acquisition of assets or purchase of equipment in the next 12 months will exceed or exceed 30% of the company's latest audited total assets.

     The company shall promptly exercise the shareholders' rights to the wholly-owned subsidiaries, and in accordance with the provisions of the articles of association of the wholly-owned subsidiaries, promote the wholly-owned subsidiaries to make cash dividends to the company, and ensure that the dividends are paid to the company before the company distributes dividends to the shareholders. .

4. Procedures for profit distribution: The company's specific profit distribution plan shall be proposed by the company's board of directors to the company's general meeting of shareholders. Should the independent directors carefully study and demonstrate the timing, conditions and minimum proportion of the company's profit distribution plan for the profit distribution plan formulated by the board of directors, Clear opinions on the conditions of adjustment and decision-making procedures. The profit distribution plan formulated by the board of directors shall be approved by more than half of the board of directors (including more than two-thirds of the independent directors), and more than half of the supervisors of the board of supervisors shall vote. The board of directors shall explain the use plan of retained undistributed profits in the profit distribution plan. Independent directors shall express independent opinions on the rationality of the profit distribution plan before the board of directors considers the profit distribution plan for the current year. After the company's profit distribution plan is reviewed and approved by the board of directors and the board of supervisors, the board of directors shall submit it to the company's shareholders meeting for consideration.

In relation to the proposal on profit distribution, the independent directors of the company may collect the voting rights from the shareholders of the company's public shareholders before the general meeting of shareholders. The independent directors shall obtain more than one-half of the consent of all independent directors in exercising the above-mentioned functions.

Before the shareholders' meeting of the company is reviewed, the Shenzhen Stock Exchange's investor exchange platform, company website, telephone, fax, e-mail and other channels should be used to communicate and communicate with public investors, especially small and medium investors. Listening to the opinions and appeals of public investors, the company's board secretary or securities affairs representative will summarize the relevant opinions in a timely manner and explain them on the board of directors considering the profit distribution plan.

The profit distribution plan shall be passed by more than half of the shareholders (including proxies) attending the general meeting. After the company's general meeting of shareholders makes a resolution on the profit distribution plan, the company's board of directors must complete the dividend distribution within 2 months after the general meeting of shareholders.

5. Adjustment of profit distribution policy: Due to the adverse impact of external business environment or its own operation, the company's operating profit has declined for two consecutive years and the cumulative decline has reached more than 40%, or the net cash flow from operating activities has been negative for two consecutive years. At the time, the company may adjust the profit distribution policy according to needs. The adjusted profit distribution policy shall not damage the shareholders' rights and shall not violate the relevant provisions of the China Securities Regulatory Commission and the stock exchange. The proposal to adjust the profit distribution policy shall be submitted to the company's shareholders after review by the company's board of directors. Approved by the conference.

If it is necessary to adjust the profit distribution policy, the board of directors of the company shall propose a profit distribution policy adjustment proposal according to the actual situation. The proposal for adjusting the profit distribution policy requires the opinions of independent directors and the board of supervisors to be consulted in advance, and the profit distribution policy adjustment proposal must be approved by all members of the board of directors. Half (including more than two-thirds of the independent directors) voted and passed by more than half of the supervisors. The profit distribution policy adjustment plan reviewed and approved by the board of directors and the board of supervisors shall be submitted to the company's shareholders meeting for consideration by the board of directors.

The board of directors shall explain and explain the reasons in detail in the proposal of the general meeting of shareholders. The general meeting of shareholders shall review the proposal for the adjustment of the company's profit distribution policy, which shall be considered and approved by more than 2/3 of the voting rights held by the shareholders attending the general meeting. In order to fully listen to the opinions of small and medium shareholders, the company should facilitate the participation of public shareholders in the general meeting of shareholders by providing online voting. If necessary, independent directors can publicly collect the voting rights of minority shareholders.

The company guarantees that the adjusted profit distribution policy shall not violate the relevant provisions of the China Securities Regulatory Commission and the stock exchange.

6. Others: If the company's shareholders and their related parties have illegally occupied the company's funds, the company shall deduct the cash dividends distributed by the shareholders to repay the funds they occupy.