Circuit Fabology Microelectronics Equipment Co., Ltd. (CFMEE, 09630) has released its updated Articles of Association, effective upon the listing of its H shares on the Hong Kong Stock Exchange. The document codifies the company’s post-listing governance framework, capital structure and shareholder-related policies. Key takeaways are as follows:

1. Corporate Profile and Capital Structure • Legal form: Joint-stock company with perpetual existence, headquartered in Hefei, Anhui. • Share denomination: RMB1.00 per share; A shares trade in Shanghai, H shares on HKEX. • Initial capital: 78.34 million shares at incorporation. • STAR Market IPO (Apr-2021): 30.20 million A shares issued. • Post H-share IPO: Share capital re-stated to include existing 131.74 million A shares plus newly issued H shares (final H-share count to be confirmed upon full allotment).

2. Shareholder Rights and Restrictions • One share, one vote; cumulative voting applies to Board elections. • Pre-IPO shares are locked for one year from initial listing; directors/senior managers may dispose of no more than 25% of their annual holdings and face a six-month post-departure lock-up. • Company and subsidiaries are barred from providing financial assistance for third-party purchases of CFMEE shares, except under an approved employee stock-ownership scheme. • The company may repurchase up to 10% of total shares for purposes including employee incentives or convertible bond redemptions, subject to Board or general meeting approval and completion deadlines.

3. Governance Framework • Board composition: Nine directors, including at least three independent directors and one employee representative; term of office is three years with re-election permitted. • Key committees: Audit (fulfilling statutory supervisory functions), Nomination, Remuneration & Appraisal, and Strategy & Development. The Audit Committee has three members (two independent) and must approve key matters such as financial disclosures and auditor appointments. • Senior management: Comprises the general manager, deputy general managers, CFO, board secretary and other designated executives. • The chairman is the legal representative; the Audit Committee replaces a traditional board of supervisors.

4. Financial Reporting and Audit • Annual reports must be disclosed within four months after each fiscal year-end; interim reports within two months after half-year end. • An external accounting firm, appointed annually by shareholders, will audit financial statements. • An internal audit department, overseen by the Audit Committee, is mandated to monitor risk management, internal controls and financial integrity.

5. Profit Distribution Policy • The company targets a “sustainable and stable” dividend approach with cash dividends as the primary form. • If statutory conditions are met, at least 30 % of average distributable profits over the past three years will be paid out in cash; higher payout thresholds (20 %/40 %/80 %) are set depending on development stage and capital expenditure plans. • Dividends must be executed within two months of shareholder approval. • Stock dividends may be considered when revenue and profit grow rapidly and market capitalisation is deemed misaligned with share capital.

6. Capital Actions • Mergers, divisions, major asset transactions exceeding 30 % of total assets, bond issues and amendments to the Articles all require shareholder approval by special resolution (two-thirds majority). • Guarantees exceeding 10 % of net assets, or those in favour of highly leveraged counterparties or related parties, must also be cleared by shareholders.

7. Transparency and Minority Protection • Independent directors can call Board or shareholder meetings, engage external advisors and publicly solicit proxy votes to safeguard minority interests. • CFMEE pledges comprehensive, timely disclosures on both the Shanghai Stock Exchange and HKEX platforms, with Chinese text prevailing in case of discrepancies.

The new Articles position CFMEE for dual-listing compliance, codify shareholder protections and establish clear mechanisms for profit allocation and corporate governance.