Kanghong pharmaceutical revises articles, overhauls governance

Chengdu Kanghong Pharmaceutical Group's board of directors approved revisions to its Articles of Association, primarily due to changes in registered capital following the 2021 stock option incentive plan's exercise. The company's registered capital increased by CNY 1,451,950, reaching CNY 921,320,954. These amendments also involve the removal of supervisory board functions, which will now be exercised by the board's audit committee, and the abolishment of the "Rules of Procedure for the Supervisory Board."

Further changes include updates to shareholder rights, an expansion of the board of directors to include a labor representative, and a new structure for specialized committees. The board also approved new internal policies on related party transactions, external investments, and internal audit management. These governance updates reflect a move towards streamlining oversight and enhancing operational efficiency.

The proposed revisions to the Articles of Association and several internal policies are subject to shareholder approval at an extraordinary general meeting scheduled for December 19, 2025. This meeting will address the registered capital change, the new governance framework, and other key policy adjustments, aiming to align the company with current regulatory requirements.