Jiangsu Nhwa Pharmaceutical revamps governance, expands board, appoints new director

Jiangsu Nhwa Pharmaceutical, at its Seventh Board of Directors Fifth Meeting on December 3, 2025, approved several key changes to its articles of association. These include abolishing the supervisory board, changing business scope, and increasing the number of board directors. The board will expand from eight to ten directors, adding one new independent director and one employee representative director. Mr. Kong Xusheng has been nominated as the new independent director, with qualifications approved by the Nomination Committee and pending SZSE approval and a shareholder vote.

These revisions also necessitate changes to the company’s external guarantee management and foreign investment policies. The updated external guarantee management requires board approval for guarantees exceeding 50% of net assets or 30% of total assets, and mandates reverse guarantees from the guaranteed party. The revised foreign investment management policy clarifies approval thresholds, with the board of directors having authority over investments up to 20% of net assets, while larger investments require shareholder approval. These changes aim to enhance corporate governance and risk control.