Chapter 1 General Provisions
Article 1 To further improve the corporate governance structure of Shandong Hongqiao Aluminum Industry Holding Co Ltd (hereinafter referred to as the "Company"), standardize the election of directors, and ensure that shareholders fully exercise their rights, these Implementation Rules are formulated in accordance with the "Guidance on the Articles of Association of Listed Companies," the "Guidelines on Corporate Governance of Listed Companies," and the Articles of Association of Shandong Hongqiao Aluminum Industry Holding Co Ltd (hereinafter referred to as the "Articles of Association").
Article 2 The cumulative voting system referred to in these Implementation Rules means that when the Company's shareholders' meeting elects two or more directors, each common share (including preferred shares with voting rights restored) shall have a number of voting rights equal to the number of directors to be elected. Shareholders may use their voting rights in a concentrated manner, with shareholders attending the meeting casting all their voting rights for a single director candidate, or distributing their voting rights among multiple director candidates, with candidates being determined by the number of votes received in descending order.
Chapter 2 Cumulative Voting
Article 3 The shareholders' meeting shall actively promote the cumulative voting system in the election of directors. When a single shareholder or its concerted parties hold 30% or more of the equity, or when the shareholders' meeting elects two or more independent directors, the cumulative voting system shall be adopted.