Hualu Hengsheng revises governance, abolishes supervisory board

Shandong Hualu Hengsheng Chemical, effective September 4, 2025, has approved a revised "Annual Report Disclosure Major Error Accountability System" to enhance governance and transparency. Concurrently, the company announced the elimination of its supervisory board, with its functions to be absorbed by the board of directors' audit committee. This move aligns with the new "Company Law" and updated "Listing Rules," impacting several internal policies.

The corporate governance overhaul necessitates extensive revisions to the "Articles of Association," including changes to shareholder meeting procedures and the removal of all references to the supervisory board. Additionally, 10 other internal management policies, such as the "Independent Director System," "Fundraising Management Measures," and "Related Party Transaction Management Measures," will undergo revisions, while some will be newly formulated or abolished to reflect the updated governance structure. These changes, particularly the elimination of the supervisory board, are subject to approval at the upcoming extraordinary general meeting.