HX Coldchain Releases Updated Articles of Association: Clarifies Share Structure, Governance Framework and Dividend Policy

Bulletin Express
Jul 27

HX Coldchain (Hongxing Coldchain (Hunan) Co., Ltd.), listed on the Hong Kong Stock Exchange (HKEX) since 13 January 2026, has published a comprehensive revision of its Articles of Association dated June 2026. The document consolidates corporate governance requirements under PRC company law, the CSRC’s overseas-listing rules and HKEX Listing Rules.

Key Highlights

1. Share Capital & Listing Status • Registered capital: RMB 98.26 million, divided into 98.26 million ordinary shares (par value RMB 1.00 each). • Share classes: 73.70 million domestic unlisted shares and 24.57 million H shares. • Public float: 23.26 million H shares were issued at IPO on 13 January 2026. • Future issuances, repurchases or capital alterations require separate shareholder resolutions and must comply with PRC law and HKEX rules.

2. Dividend & Profit Distribution Policy • Mandatory appropriation: ≥10 % of annual after-tax profit to statutory reserves until they reach 50 % of registered capital. • Minimum distribution frequency: at least once per year; cash dividends take priority when conditions allow. • Shareholders must approve any profit distribution plan. Remaining profits, after reserves and loss coverage, are distributed strictly in proportion to shareholding.

3. Board Composition & Committees • Board size: 9–11 members; ≥ one-third must be independent non-executive directors (INEDs). • Expertise: At least one INED must possess accounting or financial management qualifications; at least one INED must ordinarily reside in Hong Kong. • Key committees:   – Audit Committee: three members (two INEDs), oversees financial reporting, external audit engagement and internal audit.   – Nomination Committee: leads board and senior management appointments.   – Remuneration & Appraisal Committee: formulates compensation policy and oversees incentive plans.

4. Shareholder Protections & Meeting Rules • Shareholders holding ≥3 % for 180 consecutive days may inspect accounting records; those holding ≥1 % may submit agenda proposals. • Certain major guarantees and asset disposals (threshold: 30 % of latest audited total assets) require shareholder approval. • Cumulative voting applies to director elections; related parties must abstain from voting on connected transactions.

5. Capital Management & Corporate Actions • Share buy-backs allowed for specific purposes (e.g., employee incentives, bond conversion) with limits: treasury shares capped at 10 % of issued capital and must be transferred or cancelled within three years. • Mergers, divisions or registered-capital reductions follow statutory creditor-notification procedures; dissolution triggers mandatory liquidation.

6. ESG & Party Leadership • The Company will establish a Communist Party of China (CPC) organisation within the corporate governance framework and provide resources for CPC activities, aligning with state-owned enterprise governance guidelines.

Effective Date The revised Articles become operative upon HKEX filing, replacing all previous versions.

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