Sinofibers Technology faces lawsuit over corporate governance

Sinofibers Technology announced it is facing a lawsuit filed by shareholder Wen Yuefang concerning a dispute over company resolutions. The lawsuit, filed with the Changzhou Xinbei District People's Court, challenges the validity of the company's Third Board of Directors Eighteenth Meeting and the 2024 Fourth Extraordinary General Meeting. Wen Yuefang alleges violations of the "Company Law" and the company's articles of association, citing irregularities in director nominations, meeting procedures, and incomplete disclosure of dissenting opinions. Sinofibers Technology maintains that the meetings and resolutions were compliant with regulations and its articles of association. The company states that its operations remain normal and the lawsuit is not expected to have a material impact on current or future profits. The court has accepted the case, but a hearing has not yet been scheduled. The company said it will actively respond to the lawsuit and protect its rights and interests.