Core Viewpoint - Guangdong Zhongnan Steel Co., Ltd. has revised its Articles of Association, impacting its organizational structure, operational management, and shareholder rights, aiming to enhance governance and adapt to market changes [1]. Group 1: Organizational Structure and Personnel Related Revisions - The revision clarifies that the General Manager (President) is the legal representative of the company, and upon resignation, a new legal representative must be appointed within thirty days [2]. - New provisions regarding the powers and responsibilities of the legal representative have been added, stating that the company bears the legal consequences of civil activities conducted in its name, with the right to seek compensation from the representative if at fault [2]. - The definition of senior management has been adjusted, and new clauses regarding the establishment of party organizations and activities have been included [2]. Group 2: Changes in Business Scope and Purpose - The company's business scope has been significantly expanded, now including production of construction steel products and hazardous chemicals, alongside traditional steel metallurgy [3]. - The business purpose has shifted from becoming a large steel enterprise with international reputation to being the most competitive supplier of steel products and services in South China [3]. Group 3: Shareholder Rights and Corporate Governance Revisions - The revised Articles grant shareholders more rights, such as access to company documents and accounting records, while imposing stricter regulations on controlling shareholders to prevent abuse of power [4]. - Amendments have been made to the powers and procedures of the shareholders' meeting and board of directors, including the addition of reviewing equity incentive plans and adjustments to decision-making authority on investments and asset transactions [4]. Group 4: Other Important Revisions - Profit distribution policies now prioritize cash dividends in profitable years with positive retained earnings, and adjustments have been made to the order of using reserve funds to cover losses [5]. - The internal audit system has been improved, detailing leadership structures and responsibilities, and requiring external disclosures [5]. - New provisions regarding resolutions for company mergers with payments not exceeding 10% of net assets have also been introduced [5].