ADAMALtd.
RulesofProcedureforShareholders’Meeting
October2025
(Revision)
TableofContents
ChapterIGeneralProvisions ...... 3
ChapterIIGeneralProvisionsofShareholders’Meeting ...... 3
ChapterIIIFunctionsandPowersofShareholders’Meeting ...... 4
ChapterIVAuthorizationGrantedbyShareholders’MeetingtoBoardofDirectors ...... 6
ChapterVConveningShareholders’Meeting ...... 10
ChapterVIProposalandNoticeofShareholders’Meeting ...... 11
ChapterVIIRegistrationofShareholders’Meeting ...... 14
ChapterVIIIMeetingDiscipline ...... 16
ChapterIXHoldingShareholders’Meeting ...... 16
SectionIGeneralProvisions ...... 16
SectionIIHost ...... 17
SectionIIIConsiderationofProposals ...... 17
SectionIVVoting ...... 18
SectionVResolutions ...... 22
SectionVISpeechesofShareholders ...... 24
SectionVIIAdjournment ...... 25
SectionVIIIMinutesofShareholders’MeetingandExecution ...... 25
ChapterXImplementationofResolutionsandInformationDisclosure ...... 26
ChapterXISupplementalRules ...... 26
ChapterIGeneralProvisions
Article1TheseRulesareformulatedinaccordancewithCompanyLawofthePRC(hereinafter“CompanyLaw”),SecuritiesLawofthePRC(hereinafter“SecuritiesLaw”),RulesforListingofStocksinShenzhenStockExchange(the“ListingRules”),CodeofCorporateGovernanceforListedCompanies,RulesofShareholders’MeetingsforListedCompanies,theGuidelinesofShenzhenStockExchangeonSelf-disciplineSupervisionofListedCompaniesNo.1:StandardizedOperationofMainBoardListedCompanies,otherlaws,administrativeregulations,regulationsofministriesandcommissionsandArticlesofAssociationofADAMALtd.(hereinafter“ArticlesofAssociation”),withaviewtoregulatingtheactionsofADAMALtd.(hereinafter“Company”)andsafeguardingtheexerciseofpowersbyCompany’sShareholders’Meeting(hereinafter“Shareholders’Meeting”or“Meeting”).Article2TheBoardofdirectorsandotherconvenersshallholdShareholders’Meetinginaccordancewithrelevantprovisionsoflaws,administrativeregulations,theseRulesandArticlesofAssociation,ensurethattheShareholders’Meetingcanbeheldnormallyandlegallyexercisepowers,andguaranteetheexerciseofrightsbyshareholdersinaccordancewithlaws.TheBoardofdirectorsofCompanyshallperformtheirdutiesandtimelyorganizeShareholders’Meeting.AlldirectorsofCompanyshallfulfilltheirresponsibilitiesdiligentlytoensurethattheShareholders’Meetingcanbeheldnormallyandlegallyexercisepowers.
ChapterIIGeneralProvisionsofShareholders’Meeting
Article3Shareholders’MeetingcanbedividedintoAnnualShareholders’MeetingandInterimShareholders’Meeting.TheAnnualShareholders’Meetingwillbeheldonceeveryyear,andshouldbeheldwithin6monthsafterendofpreviousfiscalyear.TheInterimShareholders’Meetingwillbeheldirregularly;ifanycircumstancestipulatedbyArticle9oftheRulesoccurs,makingitnecessarytoholdanInterimShareholders’Meeting,suchInterimShareholders’Meetingshouldbeheldwithin2months.Article4WhereCompanycannotholdShareholders’Meetingwithintheaforesaidtimelimit,itshallreporttoCSRCHubeiSupervisionBureauandShenZhenStockExchange(SZSE),specifyingthereasons,andmakeanannouncement.Article5Thelocationoftheshareholders’meetingshallbethedomicileoftheCompanyorotherplaceassetforthinthenoticeoftheshareholders’meeting.Theshareholders'meetingwillbeon-sitemeeting.TheCompanywillalsoprovideonlinevotingtofacilitatetheshareholdersinattendingthemeeting.Ifshareholdersattendtheshareholders'meetingbytheaforesaidmeans,theyshallbedeemedtohavebeenpresent.WhereCompanyoffersonlinevotingplatformtoshareholders,theidentitiesofshareholdersshallbeconfirmedaccordingtotheregulationsofSZSEonidentitycertificationforinvestorsusingInternetservices.ShareholderscanattendtheShareholders’MeetingandexercisevotingrightsbythemselvesorbyproxybyallowingsomeoneelsetoattendtheMeetingandcastvotesontheirbehalf.
Article6WhenconveningShareholders’Meeting,Companyshallengagelawyerstoissuelegalopinionsandmakeannouncementwithrespecttofollowingissues:
1)Whethertheprocedureofconveningandholdingthemeetingcomplieswiththeprovisionsof
laws,administrativeregulations,theseRulesandArticlesofAssociation;
2)Whetherthequalificationsoftheattendeesandtheconvenerarelegalandvalid;
3)Whethertheprocedureandresultofvotinginthemeetingarelegalandvalid;
4)OtherissuesaspertherequirementsfromCompany.Article7CompanymayengagenotariestonotarizeissuessuchasthenumberofattendeesintheShareholders’Meeting,thenumberofsharesheldbyparticipatingshareholders,thepowerofattorney,thevotingresultsforeachissuevoted,theminutesandthelegalityofmeetingprocedure.Article8CompanymayirregularlyholdInterimShareholders’Meetingbasedonactualneeds.Article9CompanyshouldholdanInterimShareholders’Meetingwithintwomonthsaftertheoccurrenceofanyofthefollowingcircumstances:
1)ThenumberofdirectorsislessthanthenumberstipulatedundertheCompanyLawor2/3of
thenumberofdirectorsinArticle110oftheAOA;
2)Thenumberofindependentdirectorsislessthan1/3ofalldirectors;
3)ThelossesnotcoveredbyCompanyreach1/3oftotalamountofcapitals
4)Attherequestofshareholdersholdingmorethan10%ofsharesofCompanyindividuallyor
inaggregate;
5)WhenevertheBoardofdirectorsbelievesnecessary;
6)Whentheauditcommitteeproposestoholdsuchameeting;
7)Othercircumstancesstipulatedbylaws,administrativeregulations,regulationsofministries
andcommissionsandArticlesofAssociation.Thenumberofsharesheld,asmentionedinItem(4)inprecedingsection,shallbecalculatedasatthedaywhenshareholdersraisethewrittenrequests.
ChapterIIIFunctionsandPowersofShareholders’MeetingArticle10Shareholders’MeetingistheorganofpowerofCompanyandlegallyexercisesfollowingpowersandfunctions:
1)electingandremovingdirectors,anddeterminingtheirremunerations;
2)examining,determiningandapprovingtheBoardofdirectorsreports;
3)examining,determiningandapprovingtheprofitdistributionschemeandlossrecoveryschemeofCompany;
4)makingresolutionsonincreaseordecreaseintheCompany’sregisteredcapital;
5)makingresolutionsontheissuanceofcorporatebonds;
6)makingresolutionsonthemerger/consolidation,split,dissolution,liquidationorchangeof
Companyform;
7)amendingtheseArticlesofAssociation;
8)makingresolutionsontheengagementordismissalbytheCompanyofanaccountingfirm
thatundertakestheauditingoftheCompany;
9)examining,deliberatingandapprovingtheguaranteeparticularsprescribedinArticle11;10)examining,deliberatingmattersregardingtheCompany’spurchaseorsaleofmajorassets
(exceeding30%ofthemostrecentlyauditedtotalassetsofCompany)withinoneyear;
11)examining,deliberatingandapprovingthechangeofpurposeofraisedcapital;
12)examininganddeliberatingtheequityincentiveplanandemployeestockownershipplan;
13)examininganddeliberatingothermatterswhichshallbedeterminedbyShareholders’Meetingsaccordingtothelaws,administrativestatutes,regulationsofministriesandcommissionsandArticlesofAssociation.Theshareholders'meetingmayauthorizetheboardofdirectorstodecideontheissuanceofcompanybonds.Thestatutorypowersandfunctionsoftheshareholders'meetingstipulatedintheCompanyLawcannotbeexercisedbytheBoardofdirectorsorotherorgansorindividualsbywayofauthorization.Article11ThefollowingexternalguaranteesundertakenbyCompanyshallbeapprovedbyShareholders’Meetingafterexaminationanddeliberation:
1)AnyguaranteeofferedafterthetotalamountofexternalguaranteesundertakenbyCompany
anditscontrolledsubsidiariesexceeds50%ofthemostrecentlyauditednetassets;
2)AnyguaranteemadebytheCompanyafterthetotalamountofexternalguaranteesofferedby
theCompanyandanyoftheCompany'scontrolledsubsidiariesexceeds30%ofthelatestauditedtotalassets;
3)TheamountofexternalguaranteesprovidedbytheCompanytootherswithinoneyear
exceeds30%oftheCompany'slatestauditedtotalassets;
4)Anyguaranteeofferedtoanentitywithasset-liabilityratioexceeding70%;
5)Anysingleguaranteewithamountexceeding10%ofthemostrecentlyauditednetassets;
6)Anyguaranteeofferedtoshareholders,actualcontrollersandtheiraffiliates.IftheCompany'sexternalguaranteeviolatestheapprovalauthorityanddeliberationprocedure,causinglossestotheCompany,therelevantresponsiblepersonshallbeartheresponsibilityofcompensation,andtheCompanywillgivetherelevantresponsiblepersoncorrespondingpunishmentaccordingtotheeconomiclosssufferedbytheCompanyandtheseverityofthesituation.ChapterIVAuthorizationGrantedbyShareholders’MeetingtoBoardof
Directors
Article12Exceptasotherwiseprovidedbylaws,administrativeregulations,provisionsofCSRC,rulesofSZSE,theAoAandtheseRules,Shareholders’MeetingshallnotauthorizetheBoardofdirectorstoexercisethepowersofShareholders’MeetingstipulatedbyArticle10andArticle11hereof,providedthattheBoardofdirectorscanbeauthorizedtodealwithorimplementtheissuesunderanyresolutionswhichhavebeenapprovedbytheShareholders’Meeting.Whennecessary,Shareholders’MeetingmayauthorizetheBoardofdirectorstodeterminespecificissuesrelevanttoresolvedissuesforwhichitisunableorunnecessarytodetermineintheShareholders’Meeting.Article13IfShareholders’MeetingauthorizestheBoardofdirectorsinaccordancewiththeprovisionshereof,itshallcomplywithfollowingprinciples:
1)Principleofpublicity.AnyauthorizationgrantedbyShareholders’MeetingtoBoardofdirectorsshallbemadeintheformofresolutionbytheShareholders’Meeting.
2)Principleofappropriateness.TheauthorizationscopeshallfullycontemplateandreflecttheactualcircumstanceofthemanagementandoperationofCompany;whereasitshallavoidtheBoardofdirectorssubstitutingfortheShareholders’Meeting,andtheboard’spowertomakedecisionsonmanagementandbusinessoperationintheusualcourseofbusinessshallbeguaranteed.
3)Principleofspecificity.Theauthorizationcontentsshouldbespecific,avoidingunclear
powerstobeencounteredbytheBoardofdirectorsduringactualoperation.
4)Principleofdueprocess.ExceptasotherwisestipulatedbyArticlesofAssociation,withrespecttotheissuestobeapprovedbyShareholders’Meetingintheformofordinaryresolutionorspecialresolutioninaccordancewiththeprovisionsoflaws,administrativeregulation,theseRulesorArticlesofAssociation,thecorrespondingauthorizationstotheBoardofdirectorsshallbeapprovedbyShareholders’Meetingintheformofordinaryresolutionorspecialresolutionrespectively.
5)Principleofindependence.OnceShareholders’MeetingapprovestheproposalofauthorizingtheBoardofdirectorsintheformofresolution,theBoardofdirectorscanindependentlyexercisetheirrelevantlegitimatepowerswithinthescopeoftheauthorization,andshallnotbeillegallyintervenedbyanyotherinstitutionsorindividuals.Article14Theboardofdirectorsshallhavepowersregardingthetransactions,whichmeetoneofthefollowingcriteria:
(1)Thetotalamountofassetsinvolvedinthetransactionexceeds20%ofthelatestauditedtotalassetsofthecompany.Iftheassetsinvolvedinthetransactionhavebookvalueandappraisalvalueconcurrently,thehighervalueshallbeusedforcalculation;
(2)Thenetassetsinvolvedinthetargetofthetransaction(i.e.equitytransaction)exceed20%ofthelatestauditednetassetsoftheCompanyandtheabsoluteamountismorethanRMB20million.Iftheassetsinvolvedinthetransactionhavebookvalueandappraisalvalueconcurrently,thehighervalueshallbeusedforcalculation;
(3)Therevenueofthetargetofthetransaction(i.e.equityinterests)inthelatestyearexceeds20%ofthelatestauditedrevenueofthecompany,andtheabsoluteamountismorethanRMB20million;
(4)Thenetprofitofthetargetofthetransaction(i.e.equityinterests)inthelatestyearexceeds
20%ofthelatestauditednetprofitofthecompany,andtheabsoluteamountismorethanRMB2million;
(5)Theamountofthetransaction(includingindebtednessandexpenses)exceeds20%ofthelatestauditednetassetsofthecompany,andtheabsoluteamountismorethanRMB20million;
(6)Theprofitofthetransactionexceeds20%ofthelatestauditednetprofitofthecompany,and
theabsoluteamountismorethanRMB2million;
(7)Externalguarantee:anyguaranteeotherthantheguaranteestipulatedinArticle11;
(8)Affiliatedtransaction:theaffiliatedtransactionbetweenthecompanyandaffiliatednaturalpersonexceedsRMB300,000;theaffiliatedtransactionbetweenthecompanyandaffiliatedlegalperson(orotherorganizations)exceedsRMB3millionandexceeds0.5%ofthelatestauditednetassetsofthecompany;
(9)Securitiesinvestment:thetotalamountexceeds10%ofthelatestauditednetassetsofthecompany,andtheabsoluteamountbeingmorethanRMB10million.Securitiesinvestmentforesaidincludesplacementorsubscriptionofnewshares,securitiesrepurchase,stockinvestment,bondinvestment,entrustedfinancialmanagement(includingbankfinancialproducts,trustproducts)andotherinvestmentbehavioridentifiedbytheShenzhenStockExchange.Ifanyamountaboveisnegativeamount,theabsoluteamountshallbeusedforcalculationpurpose.Withrespecttotheexerciseofaforesaidpowers,theBoardofdirectorsshallperformthedutytodiscloseinformationinaccordancewithListingRulesforStocksTradedonShenzhenStockExchange.TheBoardofdirectorsshallestablishstrictreviewinganddecision-makingprocedure;formajorinvestmentprojects,thefunctionaldepartmentorbranchmanagerofCompanyshallconductfeasibilityanalysisanddemonstration,andCompanyshallorganizeexpertsandprofessionalsincludinglawyersandaccountantstoreviewandissueopinionsfromthefinancialandlegalperspectives;afterbeingreviewedandapprovedbytheBoardofdirectors,theopinionswillbesubmittedtoShareholders’MeetingfordiscussionandwillbeimplementedafterbeingapprovedbytheShareholders’Meeting.Theshareholdersmeetingshallhavepowersregardingtransactionswhichmeetoneofthefollowingcriteria:
(1)Thetotalamountofassetsinvolvedinthetransactionexceeds50%ofthelatestaudited
totalassetsofthecompany.Iftheassetsinvolvedinthetransactionhavebookvalueandappraisalvalueconcurrently,thehighervalueshallbeusedforcalculation;
(2)Thenetassetsinvolvedinthetargetofthetransaction(i.e.equitytransaction)exceed
50%ofthelatestauditednetassetsoftheCompanyandtheabsoluteamountismorethanRMB50million.Iftheassetsinvolvedinthetransactionhavebookvalueandappraisalvalueconcurrently,thehighervalueshallbeusedforcalculation;
(3)Therevenueofthetargetofthetransaction(i.e.equityinterests)inthelatestyearexceeds
50%ofthelatestauditedrevenueofthecompany,andtheabsoluteamountismorethanRMB50million;
(4)Thenetprofitofthetargetofthetransaction(i.e.equityinterests)inthelatestyear
exceeds50%ofthelatestauditednetprofitofthecompany,andtheabsoluteamountismorethanRMB5million;
(5)Theamountofthetransaction(includingindebtednessandexpenses)exceeds50%ofthe
latestauditednetassetsofthecompany,andtheabsoluteamountismorethanRMB50million;
(6)Theprofitofthetransactionexceeds50%ofthelatestauditednetprofitofthecompany,andtheabsoluteamountismorethanRMB5million;
(7)Affiliatedtransaction:theaffiliatedtransaction(exceptforthetransactionsthatthecompanyreceivescashasgiftandthecompanyprovidesguarantee)betweenthecompanyandaffiliatedpersonexceedsRMB30millionandexceeds5%ofthelatestauditednetassetsofthecompany;
(8)Securitiesinvestment:thetotalamountexceeds50%ofthelatestauditednetassetsofthe
company,andtheabsoluteamountbeingmorethanRMB50million.Regardingtothepurchaseorsaleofassetstransaction,thecompanyshallusethetotalamountoftheassetsortheamountofthetransaction,whicheverishigher,asthecalculationcriteriaandtheamountshallbecumulativeinthetwelveconsecutivemonthsaccordingtothetypeofthetransaction.Iftheamountreaches30%ofthelatestauditedtotalassets,thetransactionshallbesubmittedtotheshareholders’meetingforconsiderationandshallbeadoptedbymorethantwothirdsofthevotingrightsheldbytheshareholderspresentatthemeeting.Ifanyamountaboveisnegativeamount,theabsoluteamountshallbeusedforcalculationpurpose.Theterm"transaction"asmentionedinthisArticleincludesthefollowing:(1)thepurchaseofassets；(2)thesaleofassets；(3)externalinvestment(includingentrustedfinancialmanagement,investmentinsubsidiaries,etc.);(4)providingfinancialsupport(includingentrustedloans,etc.);
(5)providingguarantee(includingguaranteeforcontrolledsubsidiaries,etc.);(6)rentingorleasingassets;(7)entrustingothersorbeingentrustedformanagementofassetsorbusiness;(8)giftingassetsorbeinggifted;(9)claimsordebtrestructuring;(10)transferringoracquiringbytransferresearchanddevelopmentprojects;(11)signingalicenseagreement;(12)waiverofrights(includingwithoutlimitationwaiverofpreemptiverightsortheprivilegetosubscribeforcapitalcontributions);(13)othertransactionsidentifiedbytheShenzhenStockExchange.Theabovementionedpurchaseorsaleofassetsexcludethepurchaseofrawmaterials,fuelandpower,andthesaleofproducts,commoditiesandotherassetsrelatedtodailyoperations,butthepurchaseandsaleofsuchassetsinvolvedintheassetsswapisstillincluded.TheexternaldonationshallcomplywiththeExternalDonationManagementMeasuresofADAMALtd.WhentheCompanypurchasesorsellsequityinterests,itshallapplytheprovisionsofthisArticletotherelevantfinancialindicators,calculatedbasedontheproportionofchangesintheequityinterestsheldbytheCompany.IfthetransactionresultsinachangeinthescopeoftheCompany'sconsolidatedfinancialstatements,theprovisionsofthisArticleshallapplytotherelevantfinancialindicatorsofthetargetcompanycorrespondingtosuchequityinterests.
ChapterVConveningShareholders’Meeting
Article15TheBoardofdirectorsshallconveneShareholders’MeetingwithinthetimelimitstipulatedbyArticle3hereof;wheretheboardofdirectorsfailstoconveneShareholders’MeetingwithinthetimelimitormakeanannouncementaccordingtotheseRules,thepersonsdirectlyinchargeofthisshallbearlegalresponsibilities,andothermembersoftheboardofdirectorsshallbearjointandseveralliabilities.Article16Uponconsentbymorethanhalfofalltheindependentdirectors,independentdirectorsshallhavetherighttoproposeinwritingtotheboardforconveningInterimShareholders’Meeting;withrespecttosuchproposal,theboardofdirectorsshallprovideawrittenreplyonwhetherornotholdingsuchInterimShareholders’Meetingwithin10daysafterreceivingsuchproposal,inaccordancewithprovisionsoflaws,administrativeregulationsandArticlesofAssociation.WheretheboardagreestoholdtheInterimShareholders’Meeting,itshallgivenoticeofholdingShareholders’Meetingwithin5daysaftermakingtheboardresolution;wheretheboarddoesnotagreetoholdtheInterimShareholders’Meeting,itshallgivereasonsandmakeanannouncement.Article17TheauditcommitteeisentitledtomakeaproposalinwritingtotheboardofdirectorsforconveningInterimShareholders’Meeting;theboardofdirectorsshallprovideawrittenreplyonwhetherornottoholdsuchInterimShareholders’Meetingwithin10daysafterreceivingsuchproposal,inaccordancewithprovisionsoflaws,administrativeregulationsandArticlesofAssociation.WheretheboardofdirectorsagreestotheconveningoftheInterimShareholders’Meeting,itshallgivenoticeofholdingShareholders’Meetingwithin5daysaftermakingboardresolution,andanychangetotheoriginalproposalinthenoticeshouldobtainconsentfromtheauditcommittee.WheretheboardofdirectorsdisagreestotheconveningoftheInterimShareholders’Meetingorfailstoprovideareplywithin10daysfromthedateofthereceiptofthesaidproposal,itshallbedeemedincapableorfailuretofulfillitsobligationofconveningtheShareholders’Meeting;theauditcommitteemaytherebyconvenetheShareholders’Meetingandpresideoverthemeetingonitsown.Article18Theshareholdersindividuallyorjointlyholdingmorethan10%ofthesharesofthecompanyshallhavetherighttoproposeinwritingtotheboardofdirectorstheconveningoftheinterimshareholders’meeting.Theboardofdirectorsshall,inaccordancewiththeprovisionsinlaws,administrativeregulationsandtheseArticlesofAssociation,provideareplyinwritingonwhetherornottoconvenesuchInterimShareholders’Meetingwithin10daysfromthedateofthereceiptofsuchproposal.WheretheboardofdirectorsagreestoconvenetheInterimShareholders’Meeting,itshallgivenoticeofconveningShareholders’Meetingwithin5daysaftermakingtheboardresolution,andanychangetotheoriginalproposalinthenoticeshallhavetheconsentoftherelevantshareholders.
WheretheboardofdirectorsdisagreestheconveningoftheInterimShareholders’Meetingorfailstoprovideareplywithin10daysfromthedateofthereceiptofthesaidproposal,theshareholderswhichindividuallyorjointlyholdmorethan10%ofthesharesofthecompanyshallhavetherighttoproposeinwritingtheconveningoftheInterimShareholders’Meetingtotheauditcommitteeandshallraisetheirrequestinwritingtotheauditcommittee.WheretheauditcommitteeagreestoconvenetheInterimShareholders’Meeting,itshallgivethenoticeofholdingShareholders’Meetingwithin5daysafterreceivingsuchrequest,andanychangetooriginalproposalinthenoticeshallhavetheconsentoftherelevantshareholders.WheretheauditcommitteefailstogivethesaidnoticeonShareholders’Meetingwithintheprescribedtimelimit,itshallbedeemedthattheyfailedtoconveneandpresideovertheShareholders’Meetingandshareholderswhichindividuallyorjointlyholdmorethan10%ofthecompany'ssharesformorethan90consecutivedaysmayconvenetheShareholders’Meetingandpresideoverthemeetingindependently.Article19WheretheauditcommitteeorshareholdersdecidetoconveneaShareholders’Meetingindependentlybythemselves,theyshallnotifytheBoardofdirectorsinwritingtosucheffectandfilewithShenZhenStockExchange.ImmediatelypriortotheannouncementoftheresolutiononShareholders’Meeting,theshareholdingproportionofconveningshareholdersshallnotbelessthan10%.Theauditcommitteeortheconveningshareholdersshall,uponissuingthenoticeonShareholders’MeetingandannouncingtheresolutionsofShareholders’Meeting,submitrelevantcertificatestoShenZhenStockExchange.Article20TheBoardofdirectorsandtheSecretarytotheBoardofDirectorsshallsupporttheShareholders’Meetingindependentlyconvenedbytheauditcommitteeorshareholders.TheBoardofdirectorsshalloffertheregisterofmembersasattheequityregistrationday.Wheretheboardfailstooffertheregisterofmembers,theconvenercanrequestthesecuritiesregistry&settlementagencytooffertheregisterbyproducinganannouncementregardingthenoticeofShareholders’Meeting.TheregisterofmembersacquiredbytheconvenershallnotbeusedforpurposesotherthanholdingShareholders’Meeting.Article21WheretheShareholders’Meetingisheldindependentlybytheauditcommitteeorshareholders,allnecessarycostsandexpensesrelatedtothemeetingshallbebornebythecompany.
ChapterVIProposalandNoticeofShareholders’MeetingArticle22ThecontentsofproposalsshallbewithinthescopeofthefunctionsandpowersofShareholders’Meeting,withspecifictopicanddetailedmattersformakingresolution,andshallcomplywithrelevantprovisionsoflaws,administrativeregulationsandArticlesofAssociation.
Article23WherethecompanyholdstheShareholders’Meeting,theboardofdirectors,theauditcommitteeandtheshareholdersthatindividuallyorjointlyholdmorethan1%ofthecompany'ssharesshallhavetherighttoputforwardproposalstothecompany.Shareholdersthatindividuallyorjointlyholdmorethan1%ofthecompany'ssharesmay,10dayspriortotheconventionoftheShareholders’Meeting,putforwardtheinterimproposalsandsubmittheminwritingtotheconvener.TheconvenershallissueasupplementarynoticeoftheShareholders’Meetingwithin2daysafterreceiptofsuchproposals,announcingthecontentsoftheInterimproposalsandsubmittheinterimproposaltotheshareholders'meetingfordeliberation,exceptwhereinterimproposalscontravenetheprovisionsoflaws,administrativeregulations,ortheArticlesofAssociationordonotfallwithinthescopeofdutiesandpowersoftheshareholders'meeting.Exceptforthecircumstancesprescribedintheprecedingparagraph,theconvener,afterhavingissuedthenoticeoftheShareholders’Meeting,shallnotamendproposalswhichhavebeenexpresslysetoutoraddnewproposaltothesaidnotice.ProposalswhicharenotlistedinthesaidnoticeorareinconsistentwithArticle22oftheseArticlesofAssociationshallnotbevotedonorresolvedontheShareholders’Meeting.ThenoticeorsupplementalnoticeonShareholders’Meetingshallfullyandcompletelydisclosethecontentsofallproposals,aswellasallinformationorexplanationrequiredforshareholderstomakereasonablejudgmentonthematterstobediscussed.Article24Listofcandidatesfornon-staffrepresentativedirectorsaresubmittedtoShareholders’Meetinginformofproposalforvoting:
1.TheBoardofDirectorsoftheCompanyortheshareholderssinglyorjointlyholdingmorethan1%ofthesharesoftheCompanymaynominatenon-independentdirectorswhoarenotemployeerepresentatives.
2.TheBoardofDirectorsoftheCompanyortheshareholderssinglyorjointlyholdingmorethan1%ofthesharesoftheCompanymaynominateindependentdirectors.Thenominatorofanindependentdirectorshallnominatethenomineewithsuchnominee’spriorconsent.Thenominatorshalladequatelyunderstandtheprofession,academicqualifications,professionaltitles,detailedworkexperienceandallpart-timejobsofthenominee,andexpresshisopiniononthequalificationsandindependenceofthenominee’sservingasanindependentdirector,andthenomineeshallmakeapublicstatementthatthereexistsnorelationshipbetweenhimselfandtheCompanywhichmayinfluencehisindependentandobjectivejudgmentinanyway.Beforetheconveningoftheshareholders’meetingrelatingtotheelectionoftheindependentdirector,theboardofdirectorsshallannouncesaidcontentaccordingtorelevantregulations.Inadditiontootheritemsprovidedinthisarticle,theboardofdirectorsshallannouncetheresumeandbasicinformationofeachcandidatedirectortotheshareholders.
Article25WheretheShareholders’Meetingintendstodiscussmattersrelatedtotheelectionofdirectors,thenoticeonShareholders’Meetingshallfullydiscloseinformationofthecandidatesfordirectors,includingbutnotlimitedtothefollowing:
1)personalinformationsuchaseducationbackground,workexperience,part-timejobandsoon;
2)whetherornotthecandidatesareaffiliatedwithCompanyoritscontrollingshareholderandtheactualcontroller;
3)numberofCompanysharesheldbythecandidates;
4)whetherornotthecandidateshavereceivedpunishmentsfromtheCSRCorothercompetent
authoritiesorwarningsfromthestockexchange.Exceptfortheelectionofdirectorsthroughacumulativevotingsystem,theproposalforeachdirectorcandidateshouldbeputforwardseparately.Article26Convenershallnotifyeachshareholderbyannouncement20days(or15days,incaseofInterimShareholders’Meeting;inbothcases,excludingthedaywhenthemeetingisheld)beforeAnnualShareholders’Meetingisheld.Article27IfaShareholders’Meetingistobeconvened,CompanyshallpublishannouncementsondesignatednewspaperandthewebsitedesignatedbySZSE,i.e.,www.cninfo.com.cn.Oncetheannouncementsaremade,itshallbedeemedthatallshareholdershavereceivedthenoticeconcerningtheShareholders’Meeting.Article28ThenoticeconcerningtheShareholders’Meetingshallincludethefollowingcontents:
1)thetime,placeandperiodoftheGeneralMeeting;
2)ThemattersandproposalstobeexaminedanddeliberatedintheGeneralMeeting;
3)explanationwithclearwordingtothesameeffect:allshareholdersshallhavetherightto
attendtheShareholders’Meetingorentrustaproxy(whomaynotbeashareholderof
Company)toattendthemeetingandvote;
4)equityregistrationdatesoftheshareholderswhoareentitledtoattendtheShareholders’
Meeting;
5)thenameandtelephonenumberofthecontactpersonfortheGeneralMeeting;
6)thetimeandprocedureofvotingonlineorbyanyothermeans.ThecommencementtimeofvotingthroughInternetorothermeansshallnotbeearlierthan03:00p.m.onedaybeforetheShareholders’Meetingisheldatthevenue,norbelaterthan09:30a.m.on
thedaywhentheShareholders’Meetingisheldatthevenue,andtheendtimeshallnotbeearlierthan03:00p.m.onthedaywhentheShareholders’Meetingheldatthevenueends.Article29AftergivingnoticeconcerningtheShareholders’Meeting,theShareholders’Meetingshallnotbepostponedorcancelledwithoutjustifiablereason,norshallproposallistedinthenoticebecancelled.Incaseofanydelayorcancellation,theconvenershallmakeanannouncementandspecifythereasonsatleast2workingdaysbeforetheoriginallyplannedday.
ChapterVIIRegistrationofShareholders’MeetingArticle30IftheCompanyholdsaShareholders’Meeting,theBoardofdirectorsortheconvenerofShareholders’Meetingshallconfirmtheequityregistrationdate;aftertheclosingofequityregistrationdate,theregisteredshareholdersarethosewhohaverelevantequities.Theintervalbetweentheequityregistrationdateandthedateofmeetingshouldnotbemorethan7workingdays.Onceconfirmed,theequityregistrationdateshallnotbechanged.Article31AllregisteredshareholdersasattheequityregistrationdateareentitledtoattendtheShareholders’Meeting,andhavevariousrightsgrantedbylaws,administrativeregulationsandArticlesofAssociation,suchasrighttolearnthetruth,rightofspeech,righttoaddressquestionsandvotingright.ShareholderscanbepresentattheShareholders’Meetingorentrustaproxy(whomaynotbeashareholder)toattendthemeetingandvote.Article32WheretheindividualshareholderspersonallyattendtheShareholders’Meeting,theyshallpresenttheiridentificationcardsorothervalidcertificateswhichverifytheiridentities;wheretheindividualshareholdersentrusttheirproxiestoattendthemeetingontheirbehalf,saidproxiesshallpresenttheirvalididentitycertificatesandthepowerofattorneyfromtheshareholder.Inthecaseofcorporateshareholders,theirlegalrepresentativesorproxiesentrustedbysuchlegalrepresentativesshallattendthemeeting.Thelegalrepresentatives,ifattendingthemeeting,shallpresenttheiridentificationcardsandvalidcertificateswhichverifytheirqualificationsaslegalrepresentative;whereproxiesareentrustedbysuchlegalrepresentativestoattendthemeeting,suchproxiesshallpresenttheiridentificationcardsandthewrittenpowerofattorneyasissuedlegallybythelegalrepresentativesofthelegalpersonshareholders.Article33ThepowerofattorneyentrustingotherstoattendtheShareholders’Meetingshallspecifyfollowingcontents:
1)thenameortitleoftheprincipal,andthetypeandnumberofsharesheld;
2)thenameortitleofproxy;
3)specificinstructionsgivenbytheshareholder,includinginstructionsforvotingoneachmatter
tobeexaminedanddeliberatedattheShareholders’Meeting,whetherinfavoroforagainst,orabstainingfromthevote;
4)thedateofissuanceandthetermofvalidityofthepowerofattorney;
5)thesignature(orseal)oftheprincipal.Wheretheprincipalisacorporateshareholder,the
corporatesealshallbeaffixed.Article34Wherethepowerofattorneygrantedforvotingbyproxyissignedbyapersonentrustedbytheprincipal,theauthorizationlettersignedbyauthorizationorotherauthorizationdocumentsshallbenotarized.Thenotarizedauthorizationletterorotherauthorizationdocuments,aswellasthepowerofattorneygrantedforvotingbyproxyshallbekeptatthedomicileofthecompanyoratanyotherplaceprescribedintheNoticeforconveningtheshareholders’meeting.Article35TheregisterofattendeesshallbepreparedbyCompany,andshallexpresslyrecordsuchmattersasnamesoftheattendees(oroftheunitthereof),identitycardnumbersoftheattendees,thenumberofvotingsharesheldorrepresentedbytheattendeeandthenamesoftheprincipal(oroftheunitthereof).Article36ConvenerandlawyersengagedbyCompanywilljointlyvalidatethelegitimacyofthequalificationsofeachshareholderaccordingtotheregisterofmembersprovidedbysecuritiesregistration&settlementagency,andregisterthefullnameofeachshareholderandnumberofvotingsharesheldbythem.Priortotheannouncementbythehostofthetotalnumberofthevotingsharesheldbytheattendingshareholdersandproxies,theregistrationshallbeceased.Article37TheattendingqualificationoftheattendeeofShareholders’Meetingshallbedeemedinvalidunderanyoffollowingcircumstances:
1)theidentitycardofprincipalorattendeehasnotcompliedwiththeidentitycardmanagement
regulations,suchascounterfeit,expiryoralterationofidentitycard,orincorrectidentitycard
number;
2)theidentitycardsubmittedbytheprincipalorattendeeisillegible;
3)thesignaturesonthepowersofattorneyareobviouslydifferentwheremorethanoneperson
havebeenauthorizedbythesameshareholdertoattendthemeeting;
4)thepowerofattorneyhasnotbeennotsignedorsealedbytheprincipal;
5)thecertificatessubmittedbytheprincipalorpersonsattendingmeetingonhis/herbehalfhave
notcompliedwiththelaws,administrativeregulations,othernormativedocumentsand
ArticlesofAssociation.Article38Wheretheproxy’squalificationofattendingmeetinghasbeenconfirmedtobeinvalidduetounclearauthorizationfromtheprincipaloronthebasisthattheproofssubmittedbyitsproxycertifyingthelegalidentityandauthorizationhavenotcompliedwiththelaws,
administrativeregulations,othernormativedocumentsandArticlesofAssociation,theprincipaloritsproxyshallbearcorrespondingresponsibilitiesandconsequences.
ChapterVIIIMeetingDisciplineArticle39TheBoardofdirectorsandotherconvenersaswellastheBoardsecretaryshalladoptnecessarymeasurestoguaranteethenormalorderofShareholders’MeetingandtimelyadoptmeasurestostopanybehaviorsofinterveningtheShareholders’Meeting,includingthosepickingquarrelsandstirringuptrouble,orthoseinfringinguponthelegalbenefitsoftheshareholders,andshallreporttothecompetentauthoritiesforinvestigation.Article40Exceptforthedirectors,Seniormanagers,andtheshareholdersortheirproxies,engagedlawyers,notariesorpersonsinvitedbyconvenerwhohavecompletedtheregistrationformalitiesforattendingthemeeting,Companyshallhavetherighttorefuseanyotherpersonstoenterthevenueofthemeeting.Theaforesaidpersonsshallenterthevenuebeforecommencementofthemeeting,andmaynotleavewithouttheconsentofthehost.Article41Thehostofthemeetingmayrequirethefollowingpersonstoleave:
1)personswhoareunqualifiedtoattendthemeeting;
2)personswhodisturbtheorderofvenue;
3)personswhocarrydangerousarticles;
4)otherswhoshouldleave.Ifanyoftheaforesaidpersonsdonotcomplywiththeorderofleaving,thehostmaydispatchrelevantpersonneltohavethemleavethemeetingwithforce.
ChapterIXHoldingShareholders’Meeting
SectionIGeneralProvisionsArticle42WhenholdingShareholders’Meeting,Companyshalladheretotheprincipleofsimplicity,withoutgivinganyextraeconomicbenefitstotheshareholdersortheirproxieswhoattendthemeeting.Article43Iftheshareholders'meetingrequiresthedirectorsandseniorexecutivestoattendthemeetingwithoutvotingrights,thedirectorsandseniorexecutivesshallattendthemeetingwithoutvotingrightsandanswertheshareholders'inquiries.Article44Hostshalldeclarethecommencementofmeetingaccordingtoscheduledtime,butthe
commencementofthemeetingcanbedeclaredafterthescheduledtimeunderanyoffollowingcircumstances:
1)thefacilitiesinthevenueareincomplete;
2)thedirectors,Seniormanagers,witnessinglawyersarenotpresent,affectingthenormalor
legitimatecommencementofthemeeting;
3)Otherimportantreasonswhichaffectthenormalcommencementofthemeeting.
SectionIIHostArticle45TheBoardChairmanshallpresideovertheShareholders’Meeting.WhentheBoardChairmanisunableorfailstoperformhisorherduties,adirectorelectedjointlybymorethanhalfofalldirectorsshallpresideoverthemeeting.WheretheShareholders’Meetingisindependentlyconvenedbytheauditcommittee,theconveneroftheauditcommitteeshallpresideoverthemeeting.Wheretheconveneroftheauditcommitteeisunableorfailstoperformhisorherduties,amemberoftheauditcommitteeelectedjointlybymorethanhalfofthemembersoftheauditcommitteeshallpresideoverthemeeting.Shareholders’meetingsindependentlyconvenedbytheshareholdersshallbepresidedoverbytheconvenerortherepresentativeappointedthereby.IfanyongoingShareholders’Meetingcannotcontinueduetothehost’sbreachofrulesofprocedure,theShareholders’Meetingcanelectonepersontoactasthehosttoresumethemeeting,subjecttotheconsentoftheshareholderswhoarepresentandwhorepresentmorethanhalfofvotingrights.
SectionIIIConsiderationofProposalsArticle46Thehostwillpresideovertheconsiderationofproposalsandtopicsinaccordancewiththeorderintheagenda.Withrespecttothecontentslistedintheagenda,thehostmay,dependingontheactualcircumstances,adoptthemethodofreportingfirst,collectiveconsiderationandcollectivevoting,oradoptthemethodofconsiderationandvotingitembyitemforcomplicatedtopics.TheShareholders’Meetingshallallowreasonablediscussiontimeforeachtopic.Thehostshallorallyaskifallshareholdershavefinishedtheirconsideration;ifnoshareholderraisesanyobjection,theexaminationanddeliberationprocessshallbedeemedtobecompleted.Article47Whenexamininganddeliberatingontheproposals,theshareholdersorproxiesshallpreciselyindicatetheiropinions,andmayaskthespeakerstofurtherclarifyontheissueswhichwouldaffecttheirjudgmentandvoting.Shareholdersmayraisequestionsandsuggestionsonthecontentsoftheproposals,andthehostshallarrangedirectorsandSeniormanagerstoexplainthequestionsfromtheshareholders.However,thehostcanrefusethequestionsfromtheshareholdersunderanyofthefollowingcircumstances,butreasonsshouldbegiven:
1)thequestionsareirrelevanttotheproposal;
2)theissuesinquestionaretobeinvestigated;
3)involvingbusinesssecretsofCompanyandshouldnotbepublicizedattheShareholders’
Meeting;
4)otherreasonsdeemedtobeimportant.
SectionIVVotingArticle48Beforevoting,thehostshalldeclarethenumberofshareholdersandproxiesattendingthemeetingatthevenueandthetotalnumberofvotingsharesheldbythem;thenumberofshareholdersandproxiesandthetotalnumberofvotingsharesaresubjecttotheregistrationofthemeeting.Article49TheShareholders’MeetingshallnotvoteandadoptresolutionfortheproposalswhicharenotlistedinthenoticeorsupplementalnoticeofShareholders’MeetingorwhichdonotcomplywithArticle22hereof.Article50VotingattheShareholders’Meetingshallbebymeansofanopenballot.Article51Thesamevotingrightcanonlyoptforonekindofvotingmethod,namely,tovoteon-site,ontheInternetorotherwise.Ifrepeatedvotingareexercisedinrelationtothesamevotingright,onlythefirstvotingresultwouldberecognized.Article52Ashareholder(includinghis/herproxy)exerciseshisorhervotingrightwiththenumberofvotingsharesrepresentedbyhim/her,andeachsharehasonevotingright.ThesharesheldbyCompanyhavenovotingrightsandwillnotbeaccountedforinthetotalnumberofvotingsharesrepresentedbytheattendeesofShareholders’Meeting.Article53WhenShareholders’Meetingisvotingontheproposalregardingshareallotment,theinitiatingshareholdersofCompanyandthedirectorsandSeniormanagersentitledtotheallotmentrightshallindicatetheirintentionsofsubscription.Article54Whenexercisingvotingrights,thecontrollingshareholdersofCompanyshallnotmakeanydecisionswhichmaydamagelegitimateinterestsofCompanyandothershareholders.Article55WhentheShareholders’Meetingisexamininganddeliberatingonmattersrelatedtoconnectedtransactions,theconnectedshareholdersmayexplaintotheShareholders’Meetingaboutthefairness,legalityandreasonsfortheconnectedtransactions,butshallabstainfromvotingfortheconnectedtransactions,andthenumberofvotingsharesrepresentedbythemwillnotbeaccountedforinthetotalnumberofeffectivevotes.TheannouncementofresolutionsofShareholders’Meetingshallfullydisclosethevotesresultsofunconnectedshareholders.When
examininganddeliberatingonthemajorissuesaffectingtheinterestsofsmallandmedium-sizedinvestors,theShareholders’Meetingshallseparatelyaccountforthevotesofsmallandmedium-sizedinvestors,andtimelydisclosetheresultswhichareseparatelyaccountedfor.Theconnectedshareholdersshallapplyforavoidance,andothershareholdersmayalsoapplyforavoidance.TheBoardofdirectorsshallmakejudgmentonwhethertheissuestobesubmittedtoShareholders’Meetingforconsiderationconstituteconnectedtransactionornot,inaccordancewiththeprovisionsofthelaws,administrativeregulationsandlistingrulesofSZSE;ifanyissueconstitutesconnectedtransaction,theBoardofdirectorsshallnotifyconnectedshareholdersinwriting.TheBoardofdirectorsshalldiscloseinthenoticeofShareholders’Meetingtheconnectedpartiesoftheproposalstobeexaminedanddetermined.Theconnectedshareholderswhoshouldavoid,asstipulatedbythisprovision,include:
1)thetransactioncounterpart;
2)thosepersonswhodirectlyorindirectlycontrollingthecounterpart;
3)thosepersonswhodirectlyorindirectlycontrolledbythecounterpartdirectlyorindirectly;
4)thosepersonswhodirectlyorindirectlyundercommoncontrolofthesamelegalperson(or
otherorganizations)ornaturalpersonwiththecounterpart;
5)thosepersonswhoareemployedbythecounterpart,thelegalentity(orotherorganizations)
directlyorindirectlycontrollingsuchcounterpartorthelegalentity(orotherorganizations)directlyorindirectlycontrolledbysuchcounterpart;
6)closefamilymembersofthecounterpartyanditsdirectandindirectcontrollers;
7)thosewhosevotingrightareaffectedorlimitedduetoanyoutstandingequitytransferagreementorotheragreementwiththecounterpartoritsaffiliate;
8)thoseshareholderswhomaybebiasedduetotheirowninterests,asdeemedbyCSRCand
SZSE.Article56Theboardofdirectors,independentdirectors,shareholdersholdingmorethan1%ofthevotingsharesortheinvestorprotectioninstitutionsstatutorilysetupmaypubliclycollectthevotingrightsofshareholders.Whensolicitingshareholders'votingrights,thespecificvotingintentandotherinformationshallbefullydisclosedtothesolicitedparty.Itisprohibitedtosolicitshareholders'votingrightsinapaidordisguisedpaidmanner.Exceptforthestatutorycriteria,thecompanyshallnotsetminimumshareholdingpercentagerestrictionsforsolicitationofvotingrights.Thesolicitorsspecifiedintheprecedingparagraphwhosolicitvotingrightsfromshareholders
shallcomplywiththeprovisionsofrelevantregulatoryrules,disclosethesolicitationannouncement,relevantsolicitationdocuments,aswellastheprogressandresultsofthesolicitationinaccordancewiththelaw.Article57Thecompanyshall,onthepremiseofensuringthelegitimacyandvalidityoftheShareholders’Meeting,provideonlinevoting,soastofacilitateshareholdersattendingtheShareholders’Meeting.Article58Exceptunderspecialcircumstances,forexample,whereCompanyisincrisis,withoutapprovalfromShareholders’Meetinginformofspecialresolution,CompanywillnotconcludecontractswithanypersonotherthandirectorsandSeniormanagers,stipulatingthatallorimportantbusinessofCompanywillbemanagedbyanysuchpersons.Article59Whenvotingfortheelectionofdirectors,theShareholders’Meetingshallvoteforeachcandidateofdirectorsonebyone.CumulativevotingsystemcanbeimplementedaccordingtoArticlesofAssociationorresolutionsofShareholders’Meeting.ThecumulativevotingsystemmentionedinprecedingparagraphreferstothevotingsystemthatwhenShareholders’Meetingiselectingdirectors(includingindependentdirectors),eachshareheldbyshareholdershasthesamevotingrightwiththenumberofdirectorstobeelected;thevotingrightsownedbyashareholdercanbeusedcollectivelyorbefreelyallocatedtoallorpartialcandidatesofdirectorswhomsuchshareholdercanelect,andcandidateswithhighernumberofvotesobtainedwillbeelected.I)Company’svotingmethodapplicabletocumulativevotingsystemwithrespecttoelectionofdirectorisasfollows:
1.Theelectionofindependentdirectorsandcommondirectorsshallbeseparatedasfollows:
Whenelectingindependentdirectors,thenumberofvotingrighttowhicheachshareholderisentitledequalstonumberofsharesheldbysuchshareholdermultipliedbythenumberofindependentdirectorswhocanbeelectedbysuchshareholder,andthosevotescanonlybecastedtowardcandidatesofindependentdirectors;Whenelectingcommondirectors,thenumberofvotingrighttowhicheachshareholderisentitledequalstonumberofsharesheldbysuchshareholdermultipliedbythenumberofcommondirectorswhocanbeelectedbysuchshareholder,andthosevotescanonlybecastedtowardcandidatesofcommondirectors.
2.Whenfillingouttheballot,ashareholdercancastallhis/hervotingrightstoonecandidateofdirectorortomorethanonecandidate,andmarkthenumberofvotingrightsusednexttoeachdirectorelectedbysuchshareholder.Ifashareholderspecificallydisapprovesanyoneormorecandidatesandelectstovoteforothers,theshareholdershallfilloutthenameoftheelectedpersonandmarkthenumberofvotingrightsusednexttothename.
3.Ifthetotalnumberofvotingrightsusedbyashareholderexceedsthenumberofvotingrights
legitimatelyownedbyhim/her,theballotsheldbysuchshareholdershallbeinvalid.
4.Ifthetotalnumberofvotingrightsusedbyashareholderintheballotdoesnotexceedthenumberofvotingrightslegitimatelyownedbyhim/her,theballotshallbevalid.
5.Afterthevoting,theballotsshallbecountedandthevotesobtainedbyeachcandidateshallbeannounced.Thedirectorselectedshallbedeterminedbaseduponthenumberofvotesobtainedbythecandidates.
6.Theprincipleofelectionofdirectors:thefinaldirectorselectedshallbedeterminedbaseduponthenumberofvotesobtainedbythecandidate,buttheminimumnumberofvotesobtainedbyeachdirectorelectedshallbemorethanhalfofthevotingpoweroftheshareholders(includingproxiesthereof)attendingtheShareholders’Meeting.
7.Ifthenumberofdirectorcandidatesishigherthanthenumberofdirectorscandidatestobeelected,thedirectorselectedshallbedeterminedaccordingtothenumberofvotesobtainedbyeachcandidate(rankingfromhightolow),buttheminimumvotesobtainedbyeachelecteddirectorsmustcomplywiththerequirementsoffsetforthinItem6above.
8.Ifthenumberofdirectorcandidatesobtainingthesamevotesatonetimeexceedsthenumberofdirectorsofthekindthatistobeelected,anothervotingshallbeconductedfortheaforesaidcandidatesaccordingtotheproceduresetforthinthisArticle,untilthedirectorordiectorstobeelectedcanbedetermined.
9.IfonecumulativevotingfailstoelecttherequisitenumberofaparticulartypeofdirectorsstipulatedbyArticlesofAssociation,anothervotingshallbeconductedforcandidateswhofailtoobtainmorethanhalfofthevotingsharesheldbyshareholders(includingtheirproxies)attendingtheShareholders’MeetingaccordingtotheprocedurestipulatedbythisArticle;ifthenumberofthedirectorselectedstillfailstomeettherequirements,afurthervotingwillbeconductedonthenextShareholders’MeetingofCompany.
10.Beforetheshareholdersvotedupontheelectionofdirectors,theboardofdirectorsshallberesponsibleinconstruingthespecificmethodofcumulativevotesetforthinArticlesofAssociationsoastoensurethattheshareholdersexercisetheirvotingrightscorrectly.Article60Inadditiontocumulativevotingsystem,Shareholders’Meetingwillvoteonalloftheproposalsonebyone;ifdifferentproposalsareraisedforthesameissue,thevotingwillbeconductedaccordingtotheorderthateachoftheproposalwassubmitted.UnlesstheShareholders’Meetingissuspendedorisunabletomakearesolutionduetospecialreasonssuchasforcemajeure,theShareholders’Meetingshallnotsetasidetheproposalorrefusevoting.Article61Whenexamininganddeterminingtheproposals,theShareholders’Meetingshallnotamendtheproposal;wherethereisanyamendment,therelevantamendmentshallbedeemedasanewproposalwhichcannotbevotedatsuchmeeting.Article62ShareholdersattendingtheShareholders’Meetingshallexpressoneoffollowing
opinionsfortheproposalssubmittedforvoting:consent,oppositionorabstention.Illegibleballotsorballotsnotfilledorwronglyfilledornotcastedwillbedeemedthatvoterhaswaivedhis/hervotingrights,andthevotingresultofthesharesheldbyhe/sheshallbecountedas“abstention”.Article63Beforevotingtheproposal,theShareholders’Meetingshallelecttworepresentativesshareholderstoparticipateincountingandsupervisingthevotes.Ifanyshareholderhasanyrelationwithanymatterstobeexaminedanddeliberatedupon,suchshareholderandhis/herproxyshallnotparticipateincountingandsupervisingthevotes.WhentheShareholders’Meetingvotesontheproposals,thelawyersandrepresentativesofshareholderswilljointlyberesponsibleforcountingandsupervisingthevotes,andforannouncingthevotingresultsatthemeeting;thevotingresultwillberecordedinminutes.Article64Thehostshallannouncethevotesandvotingresultofeachproposal,andannouncewhetherornottheproposalhasbeenpassedbasedonvotingresult.Wherethehosthasanydoubtonthevotingresults,hemayorganizetohavethenumberofvotescounted;wherethehostdoesnotdosoandtheattendingshareholdersortheirproxiesthereofchallengethevotingresultsannouncedbythehost,theyareentitledtorequirethecountingofvotesimmediatelyupontheannouncementofthevotingresultsandthehostshallorganizethevotecalculationwithoutdelay.Article65WheretheShareholders’Meetinghasalsoallowedforonlinevotingorothervotingmethod,theendtimeoftheShareholders’Meetingheldon-siteshallnotbeearlierthantheendtimeofonlinevotingorothervotingmethod.Theshareholderorhis/herproxyofCompanyvotingthroughonlinevotingorothervotingmethodisentitledtoviewhis/hervotingresultthroughcorrespondingvotingsystem.Afteronlinevotingiscompleted,CompanycanapplytoChinaSecuritiesDepositoryandClearingCorporationLimitedShenzhenBranchforvotingresultinwriting.Priortotheannouncementofvotingresults,Company,personsinchargeofcountingandsupervisingballots,shareholders,InternetserviceproviderandallpartiesinvolvedinShareholders’Meetingheldon-site,onlinevotingandothervotingmethodsshallbearaconfidentialityobligationregardingthevotingresults.
SectionVResolutionsArticle66AfterproposalsarevotedatShareholders’Meeting,resolutionsshallbeformedbasedonvotingresult.Article67ThereshallbetwotypesofresolutionsoftheShareholders’Meeting:ordinaryresolutionandspecialresolution.
Ordinaryresolutionsshallbemadebymorethan1/2ofvotingrightsofshareholders(includingtheirproxies)attendingtheShareholders’Meeting.Specialresolutionsshallbeadoptedbyatleast2/3ofvotingrightsofshareholders(includingtheirproxies)attendingtheShareholders’Meeting.Article68ThefollowingmattersshallrequiretheapprovaloftheShareholders’Meetingbyordinaryresolution:
1)theworkreportsoftheBoardofdirectors;
2)ProfitdistributionschemeandlossrecoveryschemepreparedbytheBoardofdirectors;
3)theappointmentanddismissalofmembersofBoardofdirectors,andtheirremunerations;
4)mattersotherthanthosewhichshallbepassedbyspecialresolutioninaccordancewiththeprovisionsofthelaws,administrativeregulationsortheArticlesofAssociation;Article69ThefollowingmattersshallbepassedattheShareholders’Meetingbyspecialresolution:
1)increaseordecreaseintheregisteredcapitalofCompany;
2)spin-off,split,merger/consolidation,dissolutionandliquidationofCompany;
3)amendmentstotheArticlesofAssociation;
4)Company’spurchaseorsaleofconsiderableassetswithinoneyear,ortheguaranteeamount
exceeds30%ofthemostrecentlyauditedtotalassetsofCompany;
5)equityincentiveplan;
6)othermatterswhichareprescribedintheprovisionsofthelaws,administrativeregulationsorArticlesofAssociation,aswellasthematterswhicharedeemed,ifpassedbymeansofordinaryresolutionbytheShareholders’Meeting,tohavepotentialmaterialinfluenceonthecompanyandshallbepassedbyspecialresolution.Article70ThecontentsofresolutionsofShareholders’Meetingshallcomplywiththeprovisionsoflaws,administrativeregulationsorArticlesofAssociation,andthedirectorsattendingthemeetingshallguaranteetheauthenticity,accuracyandcompletenessofthecontentsofresolutions,withoutanyambiguouswording.Article71Whereanyresolutionoftheshareholders'meetingviolatesanyofthelawsoradministrativeregulations,itshallbeinvalidated.
WheretheconveningprocedureorvotingmethodofShareholders’Meetingviolatesanylaws,administrativeregulationsorArticlesofAssociation,orthecontentofanyresolutionbreachesArticlesofAssociation,theshareholdersmayapplytothecourtforrevokingtheresolutionwithin60daysaftertheresolutionismade,exceptwheretheconveningproceduresorvotingmethodofashareholders'meetinghasonlyminordefectwhichdoesnothaveasubstantialimpactontheresolution.Wheretherelevantpartiessuchastheboardofdirectors,theshareholdersetc.disputeoverthevalidityofresolutionpassedbytheshareholders'meeting,theyshallpromptlyfilealawsuitwithapeople'scourt.Beforethepeople'scourtmakesajudgmentorrulingonrevocationoftheresolution,therelevantpartiesshallimplementtheresolutionpassedbytheshareholders'meeting.Thecompany,itsdirectorsandseniorexecutivesshallperformtheirdutiespragmaticallyandensurenormaloperationsofthecompany.Wherethepeople'scourthasmadeajudgmentorrulingontherelevantmatter,thecompanyshallperforminformationdisclosureobligationpursuanttotheprovisionsoflaws,administrativeregulations,theCSRCandtheStockExchanges,provideadequateexplanationontheimpactandactivelycooperateinenforcementofthejudgmentorrulinguponitsvalidity.Whereacorrectionofpreliminarymatterisinvolved,thecorrectionshallbepromptlymade,andthecorrespondinginformationdisclosureobligationshallbeperformed.
SectionVISpeechesofShareholdersArticle72ShareholdersortheirproxiesattendingtheShareholders’Meetingareentitledtogivespeechesatthemeeting.Article73ShareholderscangiveoralorwrittenspeecheswhentheShareholders’Meetingcommencesitsprocedureofshareholderspeech.Article74ShareholderswhorequesttogivespeechesatShareholders’Meetingshallberegisteredbeforesigninginatthevenueofmeeting,andatleastfollowingitemsshouldberegistered:
1)thenameoftheshareholdergivingspeech;
2)thenameofthespeaker;
3)thenumberofsharesheld;
4)themaincontentsortopicofthespeech;
5)theestimateddurationofthespeech.Article75ThehostshallconfirmtheorderofspeechesaccordingtothemeetingdurationlistedinthenoticeofShareholders’Meeting,thenumberofspeakersregistered,thecontentandtimeofthespeech,sothatshareholderswouldbeallowedforreasonabletimeofexpression.
Article76WhentheShareholders’Meetingisbeingheld,shareholderswhorequesttogiveatemporaryspeechortoaddressinquiriestorelevantissuesshouldobtainconsentfromthehost.Afterbeingapprovedbythehost,theshareholdershallreporthis/hernameandthenumberofsharesheldbyhim/her.
SectionVIIAdjournmentArticle77ConvenershallensurethattheShareholders’Meetingisheldcontinuouslywithinreasonableworkinghours,untilallproposalslistedintheagendaformfinalresolutionsafterexamination,deliberationandvoting.IftheShareholders’Meetingissuspendedorisunabletomakearesolutionduetospecialreasonssuchasforcemajeure,theconvenershalladoptnecessarymeasurestoresumeorterminatetheShareholders’Meeting,makeannouncementintime,andreportittoCSRCHubeiSupervisionBureauandShenZhenStockExchange.Article78Atthemeeting,ifshareholders’doubtsonidentitiesorcountingresultcannotbesolved,affectingtheorderofmeetingandmakingitimpossibletocontinuethemeeting,thehostshalldeclareatemporaryadjournment.Uponresolvingtheaboveissues,thehostshallnotifyshareholderstoresumethemeetingassoonaspracticable.Article79AttheShareholders’Meeting,thehostmaydeclareatemporaryadjournmentaccordingtotheprogressofthemeeting,scheduleandothercircumstances.
SectionVIIIMinutesofShareholders’MeetingandExecutionArticle80TheShareholders’Meetingshallhaveminutes,whichispreparedbytheSecretarytotheBoardofDirectorsandshallrecordthefollowingcontents:
1)thetime,placeandagendaofmeeting,andthenameofconvener;
2)thenamesofthehost,directors,andSeniormanagerswhoattendthemeetingasanon-voting
delegate;
3)thenumberofshareholdersandproxiesattendingthemeeting,totalnumberofvotingshares
heldbythemanditsproportiontototalnumberofsharesofCompany;
4)theconsiderationprocedure,mainpointofspeechandvotingresultofeachproposal;
5)theinquiryopinionsorsuggestionsofshareholdersandcorrespondingreplyorexplanation;
6)thenamesoflawyersandpersonsinchargeofcountingandsupervisingballots;
7)othercontentstobeincludedintheminutesaccordingtoArticlesofAssociation.Article81Theconvenershallensurethecontentsofminutesaretrue,accurateandcomplete.Thedirectors,secretary,convenerorhis/herrepresentativeandthehostpresentatthemeetingwithor
withoutvotingrightsshallsignontheminutes.Theminutesshallbekepttogetherwithsignaturebookofpresentshareholdersandpowerofattorneyissuedtoproxies,andeffectivedocumentsrelatedtoonlinevotingandothervotingmethods,foratermofnolessthan10years.
ChapterXImplementationofResolutionsandInformationDisclosure
Article82WheretheShareholders’Meetingadoptstheresolutionsconcerningtheelectionofdirectors,thenewlyelecteddirectorsshouldtakeofficeatthedaywhentherelevantresolutionsareadoptedatthemeeting.Article83WheretheShareholders’Meetingadoptstheproposalsconcerningcashdividend,bonusissueorcapitalreserveconvertedintosharecapital,thelistedcompanyshallimplementtheschemewithin2monthsaftertheendofShareholders’Meeting.Article84TheBoardofdirectorsshalltimelypublishtheresolutionsofShareholders’Meetingatdesignatednewspaperandwebsiteatthetimestipulatedbylaws,administrativeregulations,otherregulationsandtheprovisionsofListingRulesforStocksTradedonSZSE.Article85Thepublicationshallspecifythenumberofshareholdersandproxiesattendingthemeeting,totalnumberofvotingsharesheldbythemanditsproportiontototalnumberofsharesofCompany,votingmethod,votingresultofeachproposalandsoon.Article86Whereanyproposalisnotadopted,ortheShareholders’Meetingmodifiestheresolutionoflastmeeting,itshouldbementionedintheannouncementofresolutionofShareholders’Meeting.Article87TheBoardofdirectorsshallpublishtheLegalOpinionsissuedbylawyersattendingtheShareholders’Meeting,togetherwiththeresolutionoftheShareholders’Meeting.
ChapterXISupplementalRulesArticle88WheretheseRulesconflictwithCompanyLaw,SecuritiesLawandArticlesofAssociation,theaforesaidlaws,administrativeregulations,regulationsandArticlesofAssociationshallprevail.Article89TheCompanymayamendtheseRulesunderanyofthefollowingcircumstances:
1)theprovisionshereofconflictwithrevisedlawsoradministrativeregulations,suchasCompanyLaw;
2)theShareholders’MeetingdeterminesamendmenttotheseRules.Article90TheamendmentstotheseRuleswillbecomeeffectiveafterbeingapprovedbyShareholders’Meeting.
Article91“Above”and“within”referredtointheseRulesincludesuchnumber;“beyond”,“lessthan”,“morethan”and“exceeding”excludethenumber.Article92TheBoardofdirectorsisresponsiblefortheinterpretationoftheseRules.Article93TheseRulesbecomeeffectiveafterbeingapprovedbytheShareholders’Meeting.
ADAMALtd.