Western Metal Materials revamps governance, scraps supervisory board

Western Metal Materials Company Limited announced on September 11, 2025, that its board of directors approved the cancellation of the supervisory board, with its functions transferred to the board's audit committee. This decision, along with revisions to the company's business scope and articles of association, awaits shareholder approval on September 29.

In conjunction with these changes, Western Metal Materials is extensively updating nine internal governance documents, including the "External Guarantee Management System" and "Connected Transaction Decision-Making System." The revised External Guarantee Management System introduces multi-level approval for guarantees, strict financial thresholds for board and shareholder review, and mandates anti-guarantee measures for related party transactions. Similarly, the updated Connected Transaction Decision-Making System emphasizes fairness, transparency, and a stringent approval process, particularly for transactions exceeding 300,000 yuan for natural persons or 3 million yuan (or 0.5% of net assets) for legal entities.

The company also formulated two new governance policies: "Management System for the Departure of Directors and Senior Management Personnel" and "Management System for Delayed and Exempted Information Disclosure," further enhancing its regulatory compliance and operational efficiency. These reforms aim to improve the company's governance and ensure alignment with current legal and regulatory requirements.