Longshen Rongfa: 2025 Independent Director Work Report (Fang Wenbin)
Gansu Longshen Rongfa Pharmaceutical Co., Ltd.
2025 Independent Directors’ Work Report
(Fang Wenbin)
I am on November 2025 On September 4, he was elected as an independent director of the fifth board of directors of Gansu Longshen Rongfa Pharmaceutical Co., Ltd. (hereinafter referred to as the "Company"). After taking office, he strictly followed the "Company Law", "Administrative Measures for Independent Directors of Listed Companies", "Shenzhen Stock Exchange GEM Stock Listing Rules" and "Shenzhen Stock Exchange Listed Companies Self-Regulatory Guidelines No. 2 - GEM "Standardized Operation of Municipal Companies" and other laws, regulations and normative documents as well as the relevant provisions of the "Articles of Association" and "Independent Director System", adhere to the principles of diligence, loyalty and independence to perform the duties of independent directors, actively attend relevant meetings, express independent opinions independently, objectively and impartially, and effectively safeguard the legitimate rights and interests of the company and all shareholders, especially small and medium-sized shareholders. I would like to report my performance of duties in 2025 as follows:
1. Basic information of independent directors
(1) Personal resume
I am Fang Wenbin, male, Chinese nationality, without permanent residence abroad. Master degree, member of the Communist Party of China, professor and master tutor of Lanzhou University of Finance and Economics, member of the Academic Committee of Lanzhou University of Finance and Economics, director of the Lanzhou University of Finance and Economics Education Development Foundation, and director of the Gansu Provincial Auditing Society. He once served as independent director of Gansu Engineering Consulting Group Co., Ltd., Qinghai Huzhu Tianyoude Highland Barley Wine Co., Ltd., Haimo Technology (Group) Co., Ltd., Lanzhou Bank Co., Ltd., Gansu Electric Investment Energy Development Co., Ltd., Gansu Renrenfeng Pharmaceutical Co., Ltd., Lanzhou Lanshi Heavy Equipment Co., Ltd., and supervisor of Qinghai Huzhu Tianyoude Highland Barley Wine Co., Ltd. He currently serves as an independent director of Qinghai Huzhu Tianyoude Highland Barley Wine Co., Ltd., an independent director of Everbright Xinglong Trust Co., Ltd., and an external director of Lanzhou Financial Holdings Co., Ltd. From November 2025 to present, he serves as an independent director of the company.
(2) Description of independence
During my tenure as an independent director of the company, I did not hold any position in the company other than as an independent director, nor did I hold any position with the company's major shareholders. I did not have any interests with the company, major shareholders, directors and senior managers of the company that might hinder my independent and objective judgment, and there were no circumstances that affected the independence of independent directors. I complied with the various requirements for the independence of independent directors in laws, regulations and normative documents such as the "Measures for the Management of Independent Directors of Listed Companies", "Shenzhen Stock Exchange Self-Discipline Supervision Guidelines for Listed Companies No. 2 - Standardized Operation of GEM Listed Companies" and other laws, regulations and normative documents.
2. Duty performance in 2025
(1) Attendance at board of directors and shareholders’ meetings
In 2025, during my tenure, the company held 1 board meeting and 1 shareholders meeting, and I attended both meetings in person on time. During the meeting, I carefully read all the materials of the meeting, fully inquired the relevant persons in charge of the company on the matters under consideration, fully understood the background of the matters, expressed professional opinions based on independent judgment, voted in agreement with each proposal under consideration, and raised no objections.
(2) Performance of duties at special meetings of the board of directors
In 2025, during my tenure, the company did not convene a special meeting of independent directors, and there was no explanation of relevant matters for this duty performance. I will continue to pay attention to relevant matters that need to be reviewed by independent directors in special meetings during the company's operation and development. In strict accordance with relevant laws, regulations and company system requirements, I will carefully review meeting materials, prudently verify and review matters, fully express independent professional opinions, and effectively perform the duties of independent directors.
(3) Participation in the work of special committees of the board of directors
As the chairman of the Audit Committee and a member of the Remuneration and Appraisal Committee of the company's Board of Directors, I strictly follow the working rules of each special committee and earnestly perform relevant duties. The details are as follows:
In 2025, during my tenure, the company held one Audit Committee meeting, and I attended the meeting in person. At the meeting, the company's report on its operating status in 2025 was heard, and the audit plan and related work arrangements for the 2025 annual report were communicated with the accounting firm. I did not raise any objections.
In 2025, during my tenure, the company held one meeting of the Remuneration and Assessment Committee, and I attended the meeting in person. At the meeting, the 2024 salary payment matters for the company’s senior managers were reviewed, and I have no objections.
(4) Circumstances in which special powers are exercised
In 2025, I did not exercise the following special powers as an independent director: independently hire intermediaries to audit, consult or verify specific matters of the company; propose to the board of directors to convene an extraordinary shareholders' meeting; propose to convene a board of directors; publicly solicit shareholders' rights from shareholders in accordance with the law; express independent opinions on matters that may damage the rights and interests of listed companies or small and medium-sized shareholders, etc.
(5) Communication with internal audit institutions and accounting firms
After I took office as the company's independent director, I established communication with the company's internal audit department as soon as possible to understand the basic situation of the company's internal audit system construction, daily audit work and internal control system operation. In addition, communicate with the company's re-appointed accounting firm to understand the company's annual audit work implementation plan, progress, key areas of audit focus and other relevant information, urge the audit agency to carry out work in accordance with laws, regulations and auditing standards, ensure the objectivity and fairness of the audit work, effectively perform the supervision responsibilities of the company's financial audit and internal control, and safeguard the legitimate rights and interests of the company and shareholders.
(6) Communication with small and medium-sized shareholders and safeguarding the legitimate rights and interests of investors
Since taking office, I have always regarded safeguarding the legitimate rights and interests of small and medium-sized shareholders as the focus of my duties. By attending shareholders' meetings and communicating with the company's securities department, I have learned about the progress of the company's investor relations management and paid attention to the company's business development, information disclosure and other related issues that are of concern to small and medium-sized shareholders. At the same time, the company is urged to strictly comply with the requirements of the Securities Law, the Measures for the Administration of Information Disclosure of Listed Companies and other laws and regulations, as well as the requirements of the Articles of Association, to standardize information disclosure, ensure that information disclosure is true, accurate, complete, timely and fair, and effectively protect the legitimate rights and interests of small and medium-sized shareholders such as their right to know and their right to participate. For matters reviewed by the board of directors, I carefully review and fully demonstrate, exercise my voting rights independently, and monitor the company's decisions from a professional perspective to avoid situations that damage the interests of the company and small and medium-sized shareholders.
(7) On-site work conditions and listed companies’ cooperation with independent directors
After taking office as the company's independent director, I carried out my duties by attending meetings and conducting on-site surveys. In 2025, I will work on-site for a total of 3 days. During the on-site performance of my duties, I had an in-depth understanding of the actual situation of the company's production operations, internal management, etc., focusing on matters such as the company's business risk prevention and control, implementation of board resolutions, and information disclosure compliance.
During the period of performance of duties, the company's management attaches great importance to and fully supports the work of the independent director. It designates a special department to be responsible for daily contact with me, promptly responds to my inquiries about duty performance, comprehensively and accurately provides all kinds of materials and information required for the performance of my duties, and actively cooperates with me to carry out on-site surveys, matter verification and other work. This provides good guarantee conditions for me to perform my duties as an independent director independently, objectively and fairly, and there is no situation that hinders my normal performance of my duties as an independent director.
3. Key matters to pay attention to during the annual performance of duties
In 2025, I will strictly comply with laws and regulations such as the Company Law, the Code of Governance for Listed Companies, the Measures for the Management of Independent Directors of Listed Companies, and the Articles of Association, faithfully and diligently perform my duties, give full play to the role of an independent director, and safeguard the legitimate rights and interests of the company and all shareholders, especially small and medium shareholders. In 2025, I will focus on the following matters:
(1) Re-appointment of the audit agency for 2025
The company held the 25th meeting of the fifth board of directors and the sixth extraordinary shareholders meeting in 2025 on December 3 and December 19, 2025, respectively, and completed the decision-making process for the renewal of the audit agency for 2025. During this period, I verified the professional qualifications, professional competence and independence of Sigma Accounting Firm (Special General Partnership), and believed that it has rich professional experience and professional service capabilities, and can provide the company with annual financial audit and internal control audit services independently, objectively and fairly, and agreed to re-appoint it as the company's 2025 audit agency. The review and decision-making procedures for the renewal of the audit agency are legal and compliant, and there is no harm to the legitimate rights and interests of the company and all shareholders, especially small and medium-sized shareholders.
(2) Remuneration matters of directors and senior managers
During my tenure in 2025, I paid attention to the work related to the salary management of the company's directors and senior managers. After review, the company's directors and senior managers' salaries were strictly implemented in accordance with the company's "Directors' Remuneration Management System", "Senior Managers' Salary Management and Performance Appraisal Measures" and other internal systems. The decision-making procedures for salary verification and payment were in compliance, and the salary level matched the company's business development and performance appraisal. There was no harm to the legitimate rights and interests of the company and all shareholders.
4. Overall evaluation and suggestions
After taking office as the company's independent director in November 2025, I have always performed various duties in a diligent, responsible, independent and objective manner, actively participated in the company's relevant decision-making, strengthened communication with the company's relevant departments and intermediaries, checked the company's decisions from a professional perspective, and effectively safeguarded the legitimate rights and interests of the company and all shareholders, especially small and medium-sized shareholders.
In 2026, I will continue to strictly comply with the provisions of laws, regulations and the Articles of Association, and faithfully, diligently and prudently perform my duties as an independent director. Actively attend the company's board of directors, shareholders' meetings and meetings of various special committees, conduct in-depth on-site investigations, comprehensively and timely grasp the company's business development, express professional opinions independently and objectively, give full play to the duties of independent directors, provide advice and suggestions for the company's sustainable, stable and high-quality development, and help the company achieve its long-term development goals. At the same time, we will continue to strengthen the study of relevant laws and regulations, regulatory policies and company business knowledge in the capital market, and continuously improve our ability to perform duties and professional judgment.
This is reported.
Independent Director: Fang Wenbin
April 1, 2026