Xianju Pharmaceutical: Announcement on Re-appointment of Audit Agency for 2026
Securities code: 002332 Securities abbreviation: Xianju Pharmaceutical Announcement number: 2026-010
Zhejiang Xianju Pharmaceutical Co., Ltd.
Announcement on the Re-appointment of the Audit Institution for 2026
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete, and that there are no false records, misleading statements or major omissions.
Zhejiang Xianju Pharmaceutical Co., Ltd. (hereinafter referred to as the "Company") held the second meeting of the ninth session of the Board of Directors on April 21, 2026, and reviewed and approved the "Proposal on Re-appointment of the Audit Agency for 2026", and agreed to renew the appointment of Shu Lun Pan Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Flixin") as the company's audit agency for 2026, and submitted it to the company's 2025 annual shareholders' meeting for review. Relevant matters are now announced as follows:
1. Description of matters concerning the proposed appointment of an accounting firm
Lixin has the qualifications for auditing securities and futures-related businesses, and has rich experience and professionalism in auditing listed companies. It can better meet the company's requirements for establishing and improving internal control and financial audit work. During its tenure as the company's auditor, Lixin was diligent and conscientious, able to abide by the "Independent Auditing Standards for Chinese Certified Public Accountants" and other relevant regulations, adhere to independent, objective and impartial auditing standards, issue audit opinions fairly and reasonably, effectively perform the duties of the audit agency, and safeguard the legitimate rights and interests of the company and shareholders from a professional perspective. Based on Lixin's rich audit experience and professionalism, which can provide the company with high-quality audit services while maintaining the continuity of audit work, the company's board of directors plans to re-appoint Lixin as the company's auditor for 2026 for a period of one year.
2. Basic information about the accounting firm to be re-appointed
(1) Institutional information
- Basic information
Lixin was founded in Shanghai in 1927 by Dr. Pan Xulun, my country's accounting guru. It was reestablished in 1986 and became the first special general partnership accounting firm in the country to complete restructuring in 2010. Its registered address is Shanghai and its chief partner is Mr. Zhu Jiandi. Lixin is a member firm of the international accounting network BDO and has been engaged in the securities services business for a long time. Before the implementation of the new securities law, it had securities and futures business licenses, had H-share audit qualifications, and has registered with the U.S. Public Company Accounting Oversight Board (PCAOB).
Firm name: Lixin Certified Public Accountants LLP (Special General Partnership)
Date of establishment January 24, 2011 Organizational form Special general partnership
Registered address: 4th Floor, No. 61, Nanjing East Road, Huangpu District, Shanghai
Executive partners Zhu Jiandi Yang Zhiguo Number of partners at the end of the previous year: 300 Number of practicing personnel at the end of the previous year: 2,523 certified public accountants; 802 certified public accountants who have signed audit reports on securities services business
Total business income 5 billion yuan
Business revenue in 2025
Audit business income 3.672 billion yuan
(unaudited)
Securities business income 1.505 billion yuan
Number of customers: 770
Total audit fees 916 million yuan
Manufacturing, information transmission, software and information technology services, wholesale and
Retail industry, electricity, heat, gas and water production and supply industry, water conservancy, listed companies in 2025
Environmental and public facilities management industry, leasing and business service industry, scientific research (including A and B shares) auditing
Involving major industries: research and technical services, finance, real estate, transportation, and warehouse conditions
Storage and postal industry, mining industry, culture, sports and entertainment industry, construction industry, agriculture, forestry, animal husbandry, fishery, accommodation and catering industry, health and social work, comprehensive, etc.
The number of audit clients of listed companies in the same industry of our company is 51
- Investor protection capabilities
As of the end of 2025, Lixin Firm has withdrawn 171 million yuan from the occupational risk fund and purchased occupational insurance with a cumulative compensation limit of 1.050 billion yuan. The accrual of the occupational risk fund and the purchase of occupational insurance are in compliance with the relevant regulations of the Ministry of Finance on the "Management Measures for the Occupational Risk Fund of Accounting Firms" and other documents. The relevant occupational insurance can cover civil liability for compensation due to audit failures.
Civil liability in civil litigation related to professional conduct in the past three years:
Sue Sued Litigation (Arbitration Litigation (Arbitration) Result
(Arbitration (Arbitrated) Event Arbitration) Amount
people) layoffs)
Investor Jinya Technology, 2014 Annual Report Remaining 5 million yuan Some investors filed civil lawsuits against Jinya Zhou Xuhui, Technology, and Lixin Law Firm on the grounds of liability disputes for securities misrepresentation. According to the effective judgment issued by the relevant People's Court Lixin, Jinya Technology shall bear compensation liability for 12.29% of investors' losses, and Lixin shall bear joint and several liability. The occupational insurance insured by Lixin is sufficient to cover the compensation amount.
All valid judgments have been fulfilled.
Investor Bao Qianli, 2015 reorganization, 10.96 million yuan. Some investors filed a civil lawsuit against Bao Qianli, Lixin, Lixin and other Yinxin Appraisals and Northeast Securities on the grounds that Baoqianli's 2015 annual report, 2016 Northeast Securities, 2015 annual report, semi-annual report, annual report, 2017 semi-annual report and Yinxin Appraisal, 2016 annual report temporary announcements contained securities misrepresentations. Lixin has not received
Administrative penalties were imposed, but the relevant people's court ordered Lixin to bear supplementary compensation liability for 15% of Bao Qianli's debt due to false statements between December 30, 2016 and December 29, 2017. Currently, the winning investor applies for execution against Filixin, and after the court accepts the application, the execution funds will be deducted from the firm's account. The funds in Lixin's account are sufficient to pay investors' execution fees, and Lixin has purchased sufficient professional liability insurance from accounting firms, which is enough to effectively resolve the risks of litigation and ensure that all effective legal documents can be effectively executed.
- Integrity record
In the past three years, Lixin has received no criminal penalties, 7 administrative penalties, 42 supervisory and management measures, 6 self-regulatory supervisory measures and 3 disciplinary sanctions due to its professional conduct, involving 151 employees.
(2) Project information
1.Basic information
Project components Name When it became When it started When it started When it started Signing or reviewing the listing documents in the past three years
Certified public accountant, engaged in listing since the beginning, for the company's audit report
Certified Public Audit Firm provides audits
service
Project partner Deng Hongyu 2009 2009 2009 2025 Deye Shares, Betta Pharmaceuticals, Weiming Environmental Protection, and signature registration Dadi Ocean, Maxinlin, Wanan Technology, accountants Minova, Changhua Group, Zhejiang Xinneng Signature Registration Meeting Liu Yaqin 2011 2011 2011 2025 Beida Pharmaceutical, Weiming Environmental Protection, Xinlei Co., Ltd., designer Xingxin New Materials, Ningbo color masterbatch project quality control Wei Qin 2005 2007 2005 2025 Zhongli Co., Ltd., Zhongxin Fluorine Materials, Red Dragonfly, production reviewer Tongli Technology, Dean Diagnostics, Xinling Electric, Dahua Co., Ltd., Aistar, Beida Pharmaceutical, Yitian Intelligent
- Integrity record
The project partners, signing certified public accountants, and project quality control reviewers have not been subject to criminal penalties for professional conduct, administrative penalties, supervisory and management measures from the China Securities Regulatory Commission and its dispatched agencies, industry authorities, etc., or self-regulatory measures and disciplinary sanctions from self-regulatory organizations such as stock exchanges and industry associations in the past three years.
- Independence
There are no circumstances that may affect the independence of Shu Lun Pan Certified Public Accountants (Special General Partnership) and its project partners, signing certified public accountants, and project quality control reviewers.
- Audit charges
Audit fee pricing principle: The final audit fee is determined based on various factors such as the company's business scale, industry, accounting processing complexity, etc., combined with the number of auditors and workload required for the audit of the company's annual report, and the firm's charging standards to determine the final audit fee.
Lixin provided the company with a total audit fee of 1.55 million yuan for the 2025 financial statements (including annual report audit fees of 1.3 million yuan and internal control audit fees of 250,000 yuan). The company's board of directors requested the shareholders' meeting to authorize the company's management to negotiate with Lixin Accounting Firm (Special General Partnership) to determine the relevant audit fees based on the company's specific audit requirements and audit scope for 2026.
3. Procedures to be followed by the accounting firm to be re-appointed
1． Deliberations of the Audit Committee of the Company’s Board of Directors
The audit committee of the company's board of directors believes that: Lixin can complete the audit work in accordance with the 2025 financial report audit plan and issue the audit opinions on the company's 2025 financial report as scheduled; in performing the company's various audit work in 2025, it can abide by professional ethics and perform audit work in accordance with the Chinese Certified Public Accountants Auditing Standards. The relevant audit opinions are objective and fair, and it has completed various tasks entrusted by the company.
The Audit Committee reviewed the relevant qualification certificates, relevant information and integrity records of Lixin, recognized the independence, professional competence and investor protection capabilities of Lixin, and agreed to the proposal to re-appoint Lixin as the company’s auditor for 2026, and submitted it to the company’s board of directors for review in advance.
- The second meeting of the company's ninth board of directors reviewed and approved the "Proposal on Renewing the Audit Institution for 2026", which still needs to be submitted to the company's 2025 shareholders' meeting for review and approval.
4. Documents for reference
1． Resolution of the second meeting of the ninth board of directors;
- Minutes of meetings of the Audit Committee of the Board of Directors;
3． The business practice certificate of the accounting firm to be hired, the information and contact information of the main person in charge and the supervisory contact person, the identity document, practice certificate and contact information of the signed certified public accountant who is to be responsible for the specific audit business.
Announcement is hereby made.
Zhejiang Xianju Pharmaceutical Co., Ltd.
board of directors
April 23, 2026