Meihua adjusts capital, governance; launches employee stock plan

Meihua Holdings Group has announced a reduction in its registered capital from yuan 2,852,788,750 to yuan 2,804,241,650, following the cancellation of 48,547,100 repurchased shares. Concurrently, the company will abolish its supervisory board, transferring its functions to the board's audit committee, and increase the number of board members from five to seven, including one new independent director and one employee representative. These changes necessitate revisions to the company's articles of association and other internal policies.

The company also approved a 2026 employee stock ownership plan, aiming to enhance long-term incentives and improve corporate governance. The plan will acquire shares from the secondary market, with a maximum allocation of 150 million units at yuan 1.00 per unit, totaling yuan 150 million. The plan has a 60-month duration, with shares unlocking in two 50% tranches after 12 and 24 months from the final share transfer date.

Several internal policies related to shareholder meetings, board operations, and information disclosure will be revised or formulated to align with the new corporate structure and regulatory requirements. Key policies requiring shareholder approval include those governing shareholder meetings, board meetings, independent directors' duties, external guarantees, and related-party transactions. These proposals will be submitted for approval at the second extraordinary general meeting in 2025.