Baiyunshan Pharmaceutical Group Strengthens Transaction and Related-Party Transaction Management; New Rules Enhance Governance Transparency

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Data from China Inspection Network: Guangzhou Baiyunshan Pharmaceutical Group Co., Ltd. held its 33rd meeting of the 9th Board of Directors on March 20, 2026, during which it approved the “Regulations on Strengthening the Management of Disclosed Transactions and Related Party Transactions.” The new regulations aim to standardize the company’s and its subsidiaries’ transaction behaviors, ensure compliance with regulatory requirements in the listing jurisdiction, and protect the interests of the company and all shareholders.

In terms of core decision-making, the regulations clarify the approval processes and disclosure standards for required disclosed transactions (including asset purchases and sales, external investments, guarantees, etc.) and related party transactions. For major transactions, the company has established strict internal review and information disclosure procedures, with some transactions requiring approval from the Board of Directors or even the Shareholders’ Meeting. Related party transactions emphasize fair pricing and procedural compliance, requiring written agreements and detailed definitions of related natural persons and legal entities.

Regarding key data, the regulations are based on the rules of the Shanghai Stock Exchange and the Hong Kong Stock Exchange, setting specific quantitative review thresholds. For example, according to SSE rules, transactions involving total assets exceeding 10% of the company’s latest audited total assets must be disclosed promptly; if exceeding 50%, an audit evaluation and shareholder approval are required. For related party transactions, a transaction amount of 300,000 RMB or more with related natural persons must undergo Board review.

The regulations take effect after approval by the Board of Directors. The company requires all subsidiaries to report relevant transactions before signing documents, with designated functional departments conducting review. For routine related party transactions, the Finance Department and the Board Secretary Office will conduct at least quarterly dynamic monitoring.

The scope covers Guangzhou Baiyunshan Pharmaceutical Group and all subsidiaries included in its consolidated financial statements. The implementation of these regulations will further improve corporate governance standards and transparency, strengthen risk management of major and related party transactions, and help safeguard the legal rights of listed companies and minority shareholders, promoting long-term stable development.

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