CMST Development restructures subsidiary, revises governance

CMST Development will transfer 65% of its debt in China Logistics Hengke IoT Systems Co., Ltd. (China Logistics Hengke), amounting to 156,584,193.66 yuan, to China Packaging Co., Ltd. Concurrently, CMST Development will convert its remaining 35% debt, 84,314,565.82 yuan, into equity in China Logistics Hengke. This debt-to-equity swap will increase China Logistics Hengke's registered capital by 240,898,759.48 yuan, resulting in China Packaging holding 65% and CMST Development 35% equity. China Logistics Hengke will no longer be consolidated into CMST Development's financial statements.

In a separate move, CMST Development’s board approved the cancellation of the Supervisory Board and amendments to the Articles of Association and related governance rules. This adjustment will transfer the Supervisory Board's powers to the Board's Audit and Risk Management Committee. The new Articles of Association will reflect these changes, including updated provisions for director responsibilities and shareholder rights. Both proposals will be submitted for approval at a general meeting of shareholders.