Holly Futures proposes governance overhaul, supervisory committee dissolution

Holly Futures' board approved proposed changes on September 29, 2025, in response to the Company Law promulgated on December 29, 2023, and the CSRC's Guidelines on the Articles of Association effective March 28, 2025. Key amendments include renaming "shareholders’ general meeting" to "shareholders’ meeting," changing the Audit Committee's Chinese name, and increasing the board from seven to eight members with the addition of an employees' director.

Crucially, the company intends to dissolve its supervisory committee, with its functions and powers transferred to the audit committee. This will result in the termination of supervisors' positions and the repeal of the Rules of Procedures of the Board of Supervisors. Shareholders will vote on these changes, with Articles Amendments and the supervisory committee dissolution requiring a special resolution, while other governance policy amendments need an ordinary resolution.

The company also outlined specific requirements for external guarantees, now subject to shareholders’ general meeting approval under certain thresholds, including any guarantee to persons or entities with a gearing ratio exceeding 70% or where the amount exceeds 10% of the latest audited net assets.