Shenzhen Hipine Precision Technology Co., Ltd. (HIPINE) released its revised Articles of Association, effective 11 May 2026. Key governance and financial provisions are summarised below.
Capital & Share Structure • Registered capital is confirmed at RMB 58.83 million, entirely composed of H-shares. • Shares have a par value of RMB 1 each; all classes carry equal rights in profit distribution. • Any future share issues require at least two-thirds board approval; cumulative issuance authorisation is capped at 50 % of existing shares within three years.
Profit Distribution Framework • Annual cash dividends must be no less than 20 % of current-year distributable profit. • Across any consecutive three-year period, cumulative cash dividends cannot be below 30 % of average annual distributable profit. • Dividend implementation must be completed within two months after shareholder approval.
Board Composition & Committees • The board will comprise 7–9 directors, including a minimum of three independent directors and at least one with accounting expertise. Independent directors must represent at least one-third of the board. • Four standing committees are mandated: Strategy, Audit, Nomination, and Compensation & Performance Evaluation. The Audit Committee consists solely of non-executive directors and must include at least one accounting professional.
Shareholder Rights & Meetings • Annual shareholder meetings must occur within six months of fiscal year-end; extraordinary meetings are required within two months under specified triggers (e.g., losses ≥ one-third of share capital or board size falling below legal minimum). • Shareholders individually or jointly holding at least 3 % of shares for 180 consecutive days may inspect accounting records and initiate derivative litigation.
Share Repurchase & Financial Assistance • Self-share acquisition is permissible for seven enumerated purposes, including employee incentive schemes and bond conversion, with a 10 % cap on outstanding shares for certain uses. • Aggregate financial assistance to third parties for share acquisition is limited to 10 % of issued capital and requires two-thirds board approval.
Dividend-Related Deadlines • Once a dividend, stock split, or capital reserve conversion is approved, execution must occur within two months unless regulatory timing dictates otherwise.
Audit & Disclosure • An external accounting firm must be appointed annually; appointment and dismissal rest with the shareholder meeting. • Directors collectively bear primary responsibility for information disclosure; the board secretary handles day-to-day investor relations and reporting duties.
Liquidation Procedures • A liquidation committee must be formed within 15 days upon dissolution triggers, with clear guidelines for creditor notification and asset distribution.
These provisions replace all prior versions of HIPINE’s Articles of Association and aim to enhance transparency, shareholder protection, and operational efficiency.
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