Baotou Huazi industry expands business, updates governance in 2025

Baotou Huazi Industry Co. announced updates to its articles of association, business scope, and corporate governance in October 2025. The company will expand its business scope to include biotechnology research and development, natural science research and experimental development, research and development of bio-based materials, and manufacturing of bio-based materials. This strategic move aims to leverage its "Technology Demonstration Base" and "Co-creation Base" in collaboration with the Chinese Academy of Sciences' Institute of Environmental Biotechnology.

In response to recent amendments to the Company Law and relevant regulations, Baotou Huazi Industry is dissolving its supervisory board, with its functions to be taken over by the board of directors' audit committee. This will necessitate revisions to the articles of association and meeting rules. The company also announced the appointment of Zhonghui Certified Public Accountants (Special General Partnership) as its audit institution for 2025, with an audit fee of 800,000 yuan, covering both financial and internal control audits.

The company will hold its third extraordinary general meeting on November 6, 2025, to seek shareholder approval for these proposed changes. The board of directors has requested authorization for the management to handle all related registration and filing matters. The new governance framework, including updated internal control policies for investments, related-party transactions, and external guarantees, is designed to strengthen regulatory compliance and protect investor interests.