Shanghai Petrochemical plans capital reduction, board changes, new transactions

Sinopec Shanghai Petrochemical Company Limited will hold its second extraordinary general meeting of 2025 on December 11, 2025, in Shanghai to consider several key resolutions. These include a proposal to reduce the company's registered capital, abolish the supervisory board, adjust the business scope, and revise its Articles of Association. The capital reduction is prompted by the cancellation of 256,668,000 H-shares repurchased by the company, bringing total issued shares from 10,799,285,500 to 10,542,617,500.

Additionally, the meeting will seek approval for new continuing connected transactions with Sinopec Group and Sinopec Corp for 2026-2028, covering product supply, sales, and comprehensive services. Proposed annual caps for raw material procurement are RMB 86,894m, RMB 90,830m, and RMB 98,319m for 2026, 2027, and 2028, respectively. Sales of petroleum and petrochemical products are projected at RMB 74,046m, RMB 81,103m, and RMB 83,571m for the same periods.

The agenda also includes the election of Lu Zhiyong as a non-independent director to the eleventh session of the board of directors. These changes aim to align the company's governance with the amended Company Law (2023 Revision) and optimize its operational framework.