Fangda Carbon cuts guarantee to Fangda Special Steel, revamps governance

Fangda Carbon New Material Co., Ltd. announced on November 29, 2025, an adjustment to its mutual guarantee limit with Fangda Special Steel Technology Co., Ltd., reducing it from not exceeding RMB 1 bn to not exceeding RMB 500 m. This decision, approved by its board, is subject to shareholder approval at the upcoming 2025 second interim shareholders' meeting on December 15, 2025, and aims to meet business operational needs. Fangda Carbon’s total external guarantee balance is RMB 1.6 bn, representing 9.89% of its net assets.

The company also plans to abolish its supervisory board, with its functions to be absorbed by the board of directors' audit committee, effective upon shareholder approval. This change necessitates revisions to the articles of association and 26 other governance documents, including the "Shareholders' Meeting Rules" and "External Guarantee Management System." Additionally, new internal audit and executive departure management systems will be established, reflecting a comprehensive update to the company's governance structure.

The board of directors has called for the 2025 second interim shareholders' meeting on December 15, 2025, to deliberate on these critical adjustments and revisions. Shareholders may participate via on-site attendance or online voting through the Shanghai Stock Exchange system.