Biem.L.Fdlkk strengthens governance against fund misuse, investment risks

Biem.L.Fdlkk Garment Co., Ltd. has updated its management systems to prevent controlling shareholders and related parties from misusing company funds, effective September 29, 2025. The revised framework prohibits direct or indirect fund provision for expenses, loans, investments, or debt repayments to related parties, ensuring timely settlement of existing related transactions to avoid fund occupation. The company's board must ensure strict compliance with internal policies and report any infringements.

New related transaction rules, also effective September 29, 2025, specify approval thresholds: transactions with natural persons exceeding yuan 300,000, or with legal entities exceeding yuan 3,000,000 and 0.5% of net assets, require board approval. Transactions over yuan 30,000,000 and 5% of net assets need shareholder approval. Updated external investment policies, effective the same date, detail approval processes for investments, with shareholder approval required for transactions over 50% of total assets or yuan 50,000,000 and 50% of net assets.

Simultaneously, the company implemented a robust management system for raised funds, effective September 29, 2025, to enhance oversight and ensure their proper utilization. A new executive compensation framework, also effective on the same date, ties remuneration to performance and company scale, ensuring fair and competitive compensation for directors and senior management.