When a company distributes the annual after-tax profits , it shall allocate ten percent of its profits to its statutory commonreservefund.
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 commonreservefund of a company is used to make up its losses, expand its production and operations or for conversion into additional capital of the company.