Dividend distribution usually refers to the part of profits that the company distributes directly to shareholders according to the decision of the board of directors when distributing company profits to shareholders. These profits may be in the form of cash, stocks or a combination of the two. The amount and method of dividend distribution are usually proposed by the company's board of directors and submitted to shareholders for voting.
Residual distribution refers to the part of the profit that is not distributed to shareholders after the company makes a profit. These profits are usually used to reinvest in the company to expand the business scale, upgrade the company's facilities, or repay debts. The distribution of residual profits is usually decided by the company management according to the company's financial needs and long-term development goals.
Generally speaking, dividend distribution is a way to return profits directly to shareholders, while residual distribution is to use profits for the further development and operation of the company. These two methods are both important parts of the company's financial strategy, which helps to ensure the healthy and stable development of the company.