C&S Paper boosts governance, shareholder returns with dividend, board changes

C&S Paper has approved a new dividend management system for 2026-2028, prioritizing cash dividends. The policy stipulates minimum cash payouts ranging from 20% to 80% of distributed profits, based on the company's development stage and capital expenditure needs. This initiative aims to provide stable shareholder returns and aligns with regulatory requirements.

In a move to streamline governance, C&S Paper is eliminating its supervisory board, transferring its responsibilities to the board's audit committee. This change, effective after shareholder approval, necessitates revisions to the company's articles of association and various internal governance rules. The company will also seek approval for a RMB 5.8 bn bank credit facility and RMB 9.44 bn in guarantees for subsidiaries in 2026.

Other approvals include a RMB 900 m investment limit for low-risk wealth management products and a RMB 150 m limit for treasury bond repurchases in 2026. Additionally, the company plans to engage in foreign exchange derivative hedging with a maximum contract value of $30 m to mitigate currency risks, and has re-appointed Rongcheng Certified Public Accountants as its auditor for 2025. Two new non-independent directors, Mr. Gao Bo and Mr. Liang Ge Yu, are slated for election.