Zhejiang Shibao enhances audit committee governance with updated terms

Zhejiang Shibao Company Limited's board of directors has formalized the updated terms of reference for its audit committee, effective November 7, 2025. The committee will consist of at least three directors, with a majority being independent non-executive directors (INEDs). At least one INED must possess appropriate professional qualifications or expertise in accounting or financial management, aligning with Hong Kong Stock Exchange listing rules. The chairman of the committee will be an INED appointed by the board.

The committee's authority includes reviewing all company accounts, books, and records, with the right to request necessary information from management and consult external professional opinions at the company's expense. The updated terms also prohibit former partners of the company's existing auditing firm from serving on the committee for two years following their departure or cessation of financial interest in the firm. The company secretary will serve as the committee's secretary.

Meeting frequency is set at a minimum of twice annually, with a seven-day notice period for meetings, though this can be waived. A quorum of two members, including at least one INED, is required for resolutions, which can be passed by majority vote or written resolution. The terms of reference will be publicly available on the company's and Hong Kong Stock Exchange websites.