King Long Motor to revamp governance, increase related party transactions

Xiamen King Long Motor Group's board of directors and independent directors have approved several key changes. The company will abolish its supervisory board, transferring its responsibilities to the board's audit committee. This requires revisions to the company's articles of association and various governance policies, including the shareholder meeting rules, board of directors meeting rules, and related party transaction management system. These changes, set to take effect from December 12, 2025, aim to align with updated legal and regulatory requirements and enhance governance efficiency.

Additionally, the company has approved a supplementary forecast for its 2025 daily related party transactions, increasing the expected amount by 20 million yuan. This adjustment, driven by operational needs, will bring the total forecast for services provided by Fujian Blue Ocean Logistics Co., Ltd. to 350 million yuan for the year. Independent directors confirmed that these transactions are fair, reasonable, and do not compromise the company's independence.

Furthermore, the board also resolved to reappoint Rongcheng Certified Public Accountants (Special General Partnership) as the auditor for the company's 2025 financial statements and internal controls. All proposed changes are subject to shareholder approval at an extraordinary general meeting scheduled for December 30, 2025.