Dajin Heavy Industry (DHI) Releases Amended Articles: Clarifies Share Capital, Governance Structure and Progressive Dividend Policy

Bulletin Express09-15 23:03

Dajin Heavy Industry Co., Ltd. (abbrev. “Dajin Heavy Industry” or “DHI”) has published its revised Articles of Association (September 2026), detailing the company’s capital structure, governance framework and shareholder-return policy following its dual-listing earlier this year.

Key corporate profile • Origin & listings: Formerly Liaoning Dajin Steel Structure Engineering (Group), DHI converted to a joint-stock company in 2009, listed 30.00 million A-shares on the Shenzhen Stock Exchange in October 2010, and floated 102.34 million H-shares on the Hong Kong Stock Exchange in June–July 2026. • Registered capital: RMB 740.09 million, comprising 637.75 million A-shares and 102.34 million H-shares, all ordinary shares. • Business scope: Design, manufacturing and sales of wind-turbine systems, offshore wind equipment, metal structures and marine engineering products, plus related technical services and investments.

Shareholder framework • Liability is limited to subscribed capital; the company is liable for debts with all assets. • Directors, senior managers and shareholders holding >5% must observe six-month “short-swing” profit restrictions; any gains from opposite-way trading inside six months accrue to the company. • Transfer limits: insiders’ share sales capped at 25 % of holdings per year; no transfers allowed within the first year of listing or within six months after departure from office.

Capital management tools • Share issuance avenues include public or non-public offerings, bonus issues and capitalisation of reserves. • Share buy-backs permitted for capital reduction, ESOPs, bond conversions, or to stabilise share price, with treasury shares capped at 10 % of issued capital and cancellation/transfer deadlines ranging from 10 days to three years. • External guarantees require board approval; seven categories—such as single guarantees above 10 % of net assets or guarantees to related parties—must also pass the shareholders’ meeting with enhanced voting thresholds.

Board composition and committees • Nine directors, including four independent directors; at least one employee-elected director. • Independent directors must constitute a majority of the audit committee and at least half of the nomination and remuneration committees. • An audit committee (three non-executive/independent directors) replaces the statutory board of supervisors, overseeing financial reporting, internal control and auditor appointments.

Dividend and reserve policy • Annual cash dividends prioritised over scrip; interim distributions permitted. • Over any three-year span, cumulative cash dividends must equal or exceed 30 % of the average annual distributable profits. • Payout ratios are tiered: – Mature stage, no major capex: ≥80 % of profits. – Mature stage, major capex: ≥40 %. – Growth stage with capex: ≥20 %. • Shareholders must not receive distributions when the company has outstanding loss offsets or insufficient reserves.

Internal controls and audit • A dedicated internal audit department reports to the board and its audit committee, which must meet at least quarterly. • External auditors are engaged annually and may attend shareholders’ meetings; dismissal requires prior notice and the firm’s right of representation.

Dissolution and liquidation triggers • Events include term expiration, shareholder resolution, merger/division, licence revocation, or court-ordered dissolution. • Upon dissolution, directors form a liquidation group within 15 days; creditors receive notice within 10 days, and announcements follow within 30 days.

These revised Articles formalise DHI’s post-listing governance, capital and dividend frameworks, aligning the company with PRC Company Law, CSRC regulations and Hong Kong Listing Rules.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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