Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 4

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 3
Chunk 4
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 Hong Kong company may only make a distribution
out of profits available for distribution. Other than the above, we did not adopt or maintain any cash management policies and
procedures as of the date of this annual report.

The following describes
the dividends and distributions made by our subsidiaries. TFGL has not made any dividends or distributions to U. S. investors as of the
date of this annual report.

On March 24, 2020, ZYSL
and ZYCL declared interim cash dividends of HK$3.9 million (approximately US$0.5 million) and HK$1.5 million (approximately US$0.2 million),
respectively, to the then sole shareholder, i. e. the Predecessor Parent Company, Zhong Yang Holdings Limited. As of March 31, 2020, the
dividend declared by ZYCL has been fully settled by directly deducting the dividend amount from the amount due from Zhong Yang Holdings
Limited, and the dividend declared by ZYSL was recorded as dividend payable. On June 19, 2020, ZYSL settled such dividend payable in cash.

On November 25, 2020,
ZYSL declared an interim cash dividend of HK$24.8 million (equivalent to $3.2 million) to its sole shareholder ZYSL (BVI), following which
event ZYSL (BVI) declared an interim cash dividend to its sole shareholder, TFGL, and TFGL declared an interim cash dividend to its shareholders
for the same amount on the same day. None of the shareholders of TFGL at the time was a U. S. person. Without any withholding tax levied
on dividends in Hong Kong, British Virgin Islands, and Cayman Islands, the interim cash dividends were settled with the shareholders in
cash on November 25, 2020.

On January 19, 2021,
ZYSL declared an interim cash dividend of HK11.6 million (equivalent to US$1.5 million) to the then sole shareholder, the Predecessor
Parent Company. The dividend was settled with the Predecessor Parent Company in cash in three installments of US$0.5 million each on January
19, 2021, January 20, 2021 and March 3, 2021.

Under the current practice of the Inland Revenue
Department of Hong Kong, no tax is payable in Hong Kong in respect of dividends paid by us