Is it illegal for the company not to pay dividends for three years?

Not illegal. According to the Company Law of People's Republic of China (PRC), a company shall distribute its profits or retain its surplus according to its operating conditions, profit distribution policies and other factors. Whether or not to pay dividends and the amount of dividends shall be decided by the shareholders' meeting or the board of directors, and shall be implemented in accordance with the articles of association. Whether to pay dividends still needs to be decided according to the company's operating conditions and strategic planning. Therefore, it is not illegal for the company not to pay dividends for three years.