Hualing Xingma revamps governance, boosts capital, adjusts transactions

Hualing Xingma Automobile Group has announced the cancellation of its board of supervisors, with responsibilities transferred to the board's audit committee. This change necessitates revisions to the company's Articles of Association and other governance documents, including Shareholders' Meeting Rules, Board of Directors' Meeting Rules, and Audit Committee Work Procedures. Concurrently, the company's registered capital will increase from CNY 654,314,844 to CNY 1,603,071,367, reflecting a post-judicial restructuring capital increase.

The company has also adjusted its forecast for daily related-party transactions for 2025 and 2026. For 2025, the total related-party transaction amount is adjusted to CNY 905,697.00, involving increases in raw material procurement and labor services, and a decrease in product sales. For 2026, total related-party transactions are projected not to exceed CNY 1,289,935.00, including significant amounts for raw material procurement, labor services, and product sales. These transactions are deemed normal commercial activities, priced at fair market value, and compliant with relevant regulations.

These changes were approved at the company's ninth board of directors' seventeenth meeting and ninth board of supervisors' sixteenth meeting on October 28, 2025. The revised Articles of Association and related governance systems, along with the adjusted related-party transaction forecasts, will be submitted for approval at the extraordinary general meeting on November 19, 2025.