Dongshan Precision revises governance, abolishes supervisory board

Suzhou Dongshan Precision Manufacturing announced revisions to its Measures for the Management of Raised Funds, Articles of Association, and other internal governance documents, effective October 2025. Key changes include the abolition of the supervisory board, with its functions transferred to the audit committee under the board of directors. The board of directors will now comprise eleven members, including one employee representative and four independent directors, one of whom must be an accounting professional.

The company also updated its stock repurchase policy, allowing buybacks for various reasons, including capital reduction, employee stock ownership plans, and maintaining company value. Such buybacks can be executed via centralized trading. Rules for related-party transactions, external guarantees, and cash management of idle raised funds have also been refined. The company will hold its third extraordinary general meeting of 2025 on November 3 to approve these changes.

In a related development, controlling shareholder Yuan Yongfeng reduced his pledged shares by 17.6 million, while Yuan Yonggang reduced his pledged shares by 16.12 million. As of the disclosure date, Yuan Yongfeng’s pledge ratio is 25.40%, and Yuan Yonggang’s is 37.27%. The company emphasized no new financing arrangements were involved, and no immediate liquidation risk exists. Concurrently, the company proposes to appoint Xu Weidong as an independent director and has engaged Tianjian International Certified Public Accountants as its audit institution for H-share issuance and listing.