If the statutory reserve fund of the company is insufficient to make up for the losses of the previous year, the profits of the current year shall be used to make up for the losses before the statutory reserve fund is withdrawn in accordance with the provisions of the preceding paragraph.
Next, it will be the company's situation to decide whether to divide or how to divide, usually depending on the development stage or whether there is a major capital expenditure plan, so if it is not allocated, it will generally be used to develop the company's business or meet other capital needs.