Sinochem International proposes governance changes, reappoints auditor

Sinochem International Corporation has called an extraordinary general meeting for 2025 to approve several key proposals, most notably the elimination of its supervisory board. This move aims to streamline corporate governance, with the board's audit and risk committee set to assume the responsibilities previously held by the supervisory board. Corresponding amendments to the company's articles of association and shareholder meeting rules are also on the agenda.

In addition, shareholders will vote on a proposal to provide a counter-guarantee for a $200m financing sought by its associate, Halcyon Agri Corporation Limited. Sinochem International, holding a 29.2% stake in Halcyon Agri, would counter-guarantee $58.4m plus associated interest, penalties, and default charges. As of the announcement date, the company's cumulative external guarantees amount to RMB 2.908bn, which is 23.11% of its latest audited net assets attributable to the parent company.

Lastly, the company proposes to re-engage KPMG Huazhen LLP (Special General Partnership) as its financial and internal control auditor for the 2025 fiscal year. The estimated audit fee for financial reports and internal controls is RMB 6.88m. Including overseas subsidiary audits, the total estimated audit cost is RMB 8.79m.