Luxi chemical streamlines governance, updates investment rules

Luxi Chemical Group has approved an overhaul of its corporate governance framework, including a new management system for outbound investments. This system, effective September 2025, defines investment types—equity, project, and entrusted financial management—and establishes clear approval thresholds. Investments exceeding certain percentages of audited assets or net profits, or with absolute values over 10 million yuan, require board approval, with higher thresholds mandating shareholder approval.

Key revisions also include new or updated policies for financial assistance, subsidiary management, securities investment, related-party transactions, internal information reporting, annual report disclosure, deferred/exempt disclosure, compensation for directors and senior management, and shareholding changes. These updates aim to standardize processes, mitigate risks, and align with regulatory requirements, ensuring robust internal controls.

Additionally, the company will absorb its wholly-owned subsidiary, Shandong Liaocheng Luxi Chemical Second Fertilizer Co. Ltd., effective September 2025. This will streamline its corporate structure by integrating all assets, claims, and debts. These collective measures reinforce Luxi Chemical's commitment to improved corporate governance and transparent operations.