Feilo Acoustics to revise charter, shift focus to automotive parts, IT services

Shanghai Feilo Acoustics has announced a comprehensive revision of its articles of association for 2025, reflecting a strategic pivot in its business scope and governance. The company's new business focus will primarily encompass the manufacturing and retail of automotive parts, electronic components, and instruments, alongside IT services and investment activities. This marks a shift from its previous focus on computer network technology, smart cards, and multimedia communication.

Key changes include the removal of the board of supervisors, with its responsibilities now transferring to the board of directors' audit committee. This restructuring aims to streamline corporate governance, enhance operational efficiency, and better align with the company's revised strategic direction. The company also implemented adjustments to its internal control systems, including policies for capital raising, related-party transactions, and external guarantees.

Additionally, the company is to record a net reversal of asset impairment provisions of RMB 14.02 in the first half of 2025, which will increase the total profit for the period by RMB 14.02. This stems from a new accounting estimate that revalues various asset categories, including bad debt provisions and inventory write-downs.