Pagoda GP Updates Articles of Association, Clarifies Capital Structure and Corporate Governance Framework

Bulletin Express
Jun 05

Shenzhen Pagoda Industrial (Group) Corporation Limited (Pagoda GP, 02411) released an amended Articles of Association (effective June 2026) that consolidates its share structure, governance model, and operating rules.

Share Capital • Registered capital is set at RMB 2.00 billion, equal to 2,000.72 million ordinary H-shares with a par value of RMB 1. • All shares are listed in Hong Kong. The company issued 78.95 million H-shares in January 2023 and 9.60 million H-shares through an over-allotment option in February 2023. • Promoters initially subscribed for 21.90 million shares at incorporation in April 2020.

Shareholder Rights and Meetings • One share carries one vote; H-share holders may litigate in mainland or Hong Kong courts. • Annual general meetings must be held within six months after each fiscal year; extraordinary meetings must be convened within two months when triggers—such as losses equaling one-third of share capital—arise. • Shareholders individually or jointly holding at least 10 % of voting shares can request an extraordinary meeting; those with 1 % may submit resolutions.

Board Composition and Committees • The board comprises at least three directors elected for three-year terms; cumulative voting applies. • Independent non-executive directors must account for no less than one-third of the board and are limited to nine consecutive years. • Five special committees—Strategy, Audit, Nomination, Remuneration, and ESG—support the board. The Audit Committee must be fully non-executive, with a majority of INEDs and at least one accounting professional.

Senior Management • The general manager leads daily operations and nominates vice general managers; the board appoints or removes all senior executives, including the CFO and board secretary. • The board secretary is elevated to senior-management rank and is barred from concurrently serving as an external auditor or controlling-shareholder employee.

Profit Distribution and Reserves • At least 10 % of annual after-tax profit must be allocated to the statutory common reserve until it reaches 50 % of registered capital. • Dividends may be paid in cash, shares, or a combination, and are declared in RMB but paid to H-share holders in Hong Kong dollars.

Capital Management • Share buy-backs are permitted for capital reduction, mergers, employee incentive plans, bond conversion, or safeguarding shareholder value; purchases for incentives, conversions, or stability are capped at 10 % of issued capital and must be disposed of or cancelled within three years. • External guarantees exceeding defined thresholds—including any guarantee to a party with a debt-to-asset ratio above 70 %—require shareholder approval.

Dissolution Triggers • Dissolution may occur upon term expiry, shareholder resolution, merger, bankruptcy, licence revocation, or shareholder petition when operations cause “substantial loss.” • Liquidation committees must be formed within 15 days of dissolution triggers; directors serve as default liquidators.

Audit and Disclosure • An independent PRC-qualified accounting firm is appointed annually by shareholders; removal before term expiry requires an ordinary resolution. • Financial statements are prepared under PRC and international (or Hong Kong) standards, with the lower profit figure governing dividend calculations. Interim results must be published within three months and full-year results within four.

The revised charter codifies Pagoda GP’s corporate governance practices post-listing, providing detailed procedures for shareholder engagement, board oversight, and capital actions.

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