1·When a company distributes the annual after-tax profits , it shall allocate ten percent of its profits to its statutory common reserve fund.
公司分配当年税后利润时，应当提取利润的百分之十列入公司法定公积金。
2·The common reserve fund of a company is used to make up its losses, expand its production and operations or for conversion into additional capital of the company.
法定公积金转为资本时，所留存的该项公积金不得少于转增前公司注册资本的百分之二十五。