Hexing Electrical streamlines governance, boosts related-party transaction estimates

Hangzhou Hexing Electrical Technology Co., Ltd. announced on October 27, 2025, that its board of directors and board of supervisors approved the abolition of the board of supervisors. Its functions will now be handled by the board of directors' audit committee. This change necessitates extensive revisions to the company's articles of association and the formulation or revision of 25 corporate governance policies.

The company also reported a decision to increase its estimated daily related-party transactions for 2025. An additional CNY 13,000,000 will be added to its existing CNY 70,747,000, raising the total projected amount to CNY 83,747,000 for transactions with Ningbo Zelian Technology Co., Ltd. This adjustment, approved by the board and independent directors, reflects increased business volume in smart water metering products and system solutions for overseas markets.

Hexing Electrical emphasizes these moves are aimed at enhancing its governance structure, promoting compliant operations, and supporting business growth through market-based pricing for related-party transactions. These changes and adjustments were reviewed and approved by the respective boards, with some requiring further shareholder approval.