Lepu Medical: Independent Directors’ 2025 Work Report (Quxin)
Lepu (Beijing) Medical Equipment Co., Ltd.
Independent director’s work report
Lepu (Beijing) Medical Equipment Co., Ltd.
Independent Director Annual Work Report
2025
(Quxin)
As an independent director of Lepu (Beijing) Medical Devices Co., Ltd. (hereinafter referred to as the "Company"), we strictly abide by the "Company Law of the People's Republic of China", "Securities Law of the People's Republic of China", "Administrative Measures for Independent Directors of Listed Companies" and "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, as well as the company's internal system requirements such as the "Company Articles" and "Independent Directors' Working Rules", uphold an independent, objective and impartial stance, diligently perform the duties of independent directors, actively participate in the company's decision-making on major matters, carefully review various proposals, give full play to the professional supervision and decision-making support role of independent directors, and effectively safeguard the legitimate rights and interests of the company and all shareholders, especially small and medium-sized shareholders. The performance of duties during the year is now reported to all shareholders as follows:
1. Basic information of independent directors
Born in 1963, Chinese nationality, no permanent residence abroad, financial management researcher, senior accountant, certified public accountant. He once served as deputy director of the General Department of the Finance Department of China New Building Materials Corporation, deputy manager of the Planning and Finance Department of China New Building Materials (Group) Company, and general manager of the Finance Department of China National Building Materials Group Co., Ltd. He is currently a senior expert of the China Enterprise Reform and Development Research Association, an independent director of Hua Pengfei Co., Ltd., an independent director of Beijing Hanyi Innovation Technology Co., Ltd., and an independent director of Smart Interconnect Technology Co., Ltd. (a non-listed company).
I have not held any position in the company other than as an independent director, nor have I held any position in the company's major shareholder company. I have no interest relationship with the company or major shareholders or other relationships that may hinder independent and objective judgment. I comply with the relevant requirements for the independence of independent directors in laws, regulations, rules and normative documents such as the "Administrative Measures for Independent Directors of Listed Companies", "Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 2 - Standardized Operation of GEM Listed Companies" and other laws, regulations, rules and normative documents. He has no interest in the company, the company’s controlling shareholders, actual controllers, shareholders holding more than 5% of the shares, and other directors, supervisors, and senior managers of the company, and is able to independently perform duties and ensure the objectivity and fairness of performance of duties.
2. Overall performance of duties in 2025
During the reporting period, I always adhered to the principle of loyalty and diligence, actively participated in corporate governance-related work, and recognized Lepu (Beijing) Medical Devices Co., Ltd.
Independent director’s work report
Really attend all kinds of meetings, carefully review meeting materials, take the initiative to understand the actual situation of the company's production and operations, maintain regular communication with the company's management, internal audit institutions, and accounting firms, exercise voting rights in accordance with the law, and have not raised objections to various resolutions of the board of directors, have no objections, or abstained from voting, and have not exercised special powers stipulated in the "Administrative Measures for Independent Directors of Listed Companies".
(1) Meeting attendance
In 2025, the company held a total of 7 board meetings and attended all meetings (by communication/on-site); it held 3 general meetings of shareholders and attended 1 meeting. There was no proxy attendance, and there was no failure to attend the Board of Directors meetings in person for two consecutive times.
I serve as the chairman of the Audit Committee, a member of the Remuneration and Appraisal Committee, and a member of the Nomination Committee of the company's Board of Directors. During the reporting period, the Audit Committee held a total of 5 meetings and the Remuneration and Appraisal Committee held a total of 2 meetings. I attended all meetings in person and took the lead in reviewing core proposals related to auditing and remuneration to ensure the efficiency and effectiveness of the special committees in performing their duties.
During the reporting period, the company reviewed proposals such as "Estimation of Daily Related Transactions in 2025", "About Changing the Use of Partially Raised Funds for Raised Investment Projects and Related Matters", "About Using Part of Idle Raised Funds to Temporarily Replenish Liquidity" and "About Using Raised Funds to Replace Self-raised Funds Pre-invested in Raised Investment Projects", and convened 2 special meetings of independent directors. I attended in person, and jointly conducted special reviews of relevant matters with other independent directors, and issued independent opinions to ensure that decision-making on matters is in line with the interests of small and medium-sized shareholders.
(2) On-site performance of duties and understanding of company operations
During the reporting period, I made full use of the opportunity to attend meetings of the board of directors, shareholders' meetings, and special committees, and went deep into the company's core links such as the front line of production and operation and the financial department to gain an on-the-spot understanding of the company's operating status, financial revenues and expenditures, use of raised funds, and implementation of internal controls. At the same time, we maintain close communication with other directors, supervisors, and senior managers of the company through telephone calls, interviews, communications, etc., keep abreast of the progress of major company matters, pay attention to the impact of external market environment and industry policy changes on the company, as well as relevant media and Internet reports on the company, and provide professional opinions and suggestions on issues in the company's operation and management.
(3) Communication with audit-related institutions
As the chairman of the audit committee, I took the lead in conducting multiple rounds of in-depth communication with the company’s internal audit institution and the accounting firm for the 2025 annual audit. Regarding the company's regular report audit, internal control audit and other work, fully discuss with the accounting firm on audit plans, audit focus, financial data verification, internal control defect rectification and other issues, and urge the internal audit agency to improve the audit process, strengthen audit supervision, ensure that the audit results are objective and fair, and ensure the authenticity, accuracy and completeness of the company's financial information.
Lepu (Beijing) Medical Equipment Co., Ltd.
Independent director’s work report
(4) Protection and communication of investors’ rights and interests
I attach great importance to the protection of the rights and interests of small and medium-sized shareholders, actively participate in the company's performance briefings, patiently answer questions of concern to small and medium-sized shareholders such as the company's operating results, financial indicators, development strategies, dividend policies, etc., and establish an effective communication bridge between the company and investors. At the same time, we continue to supervise the company's information disclosure work to ensure that the company's information disclosure complies with laws, regulations and exchange regulations, ensure that the announcement content is true, accurate, complete, timely and fair, prevent the leakage of inside information, and effectively safeguard investors' right to know.
(5) The company’s cooperation in performance of duties
During the reporting period, the company's management and relevant departments attached great importance to the performance of independent directors' duties. Before various meetings, they provided meeting materials and relevant background information in a timely and complete manner, actively cooperated with my inquiries and research needs, and effectively protected the independent directors' rights to know, supervise and make decisions. The company's board of directors fully solicits the opinions of independent directors before making major decisions, providing good guarantee conditions for independent and effective performance of duties.
3. Matters of focus in annual performance of duties
During the reporting period, I focused on the core aspects of the company's standardized operations, focused on and carefully reviewed the following major matters, and expressed clear consent. The decision-making procedures for relevant matters were legal and compliant, and did not harm the interests of the company and shareholders.
(1) Review of financial accounting reports and periodic reports
I carefully reviewed the full text and summary of the company's "2024 Annual Report", "2024 Annual Audit Report", "2025 Semi-Annual Report", "2024 Annual Financial Final Report", "2025 First and Third Quarter Reports", "2024 Internal Control Evaluation Report" and other proposals, and conducted detailed verification of the financial data, operating results, internal control construction and other contents in the report. After verification, the company's periodic reports are prepared in compliance with accounting standards and relevant regulations, the financial information truly reflects the company's actual operating conditions, the internal control system is sound and effectively implemented, and the internal control evaluation report objectively discloses the company's internal control construction and operation, and there are no false records, misleading statements or major omissions.
(2) Audit agency renewal matters
As the chairman of the Audit Committee, I took the lead in reviewing the "Proposal on Re-appointment of the Company's Audit Institution for 2025" and conducted a comprehensive review of the professional qualifications, professional capabilities, performance records, and independence of the accounting firm to be re-appointed. After verification, the accounting firm has the qualifications for auditing services for listed companies, has an outstanding professional team, has been diligent and conscientious in past audit work, and can issue audit reports objectively and fairly. The decision-making process for renewal matters is legal and compliant, and meets the company's audit work needs.
Lepu (Beijing) Medical Equipment Co., Ltd.
Independent director’s work report
(3) Remuneration and incentive matters for directors and senior managers
As a member of the Remuneration and Appraisal Committee, I reviewed the proposals on the "Company Directors' Allowance for 2025" and "Opinions on the Company's Performance Appraisal of Senior Management in 2024 and the Base Salary Plan for Senior Management in 2025", and carefully reviewed the rationality of the remuneration plan. After verification, the company's remuneration plan was formulated based on industry standards and the company's actual operations, and the assessment standards were clear.
(4) Use and management of raised funds
I continue to pay attention to the storage and use of the company's raised funds, and check whether the use of raised funds complies with the requirements of the "Supervisory Rules for Raised Funds of Listed Companies" and the company's "Raised Funds Management System" by checking the bank statements of the special account for raised funds, regular verification reports, etc. After verification, the company's raised funds are deposited in special accounts and earmarked for special purposes. There has been no illegal misappropriation or disguised change in the investment direction of raised funds. The necessary review procedures have been completed for cash management of some idle raised funds, which has effectively improved the efficiency of the use of raised funds and does not affect the normal implementation of investment projects with raised funds.
(5) Related transactions
During the reporting period, the company's daily related transactions were based on normal production and operation needs. The transaction prices followed fair and equitable market principles. The review procedures were legal and compliant. There were no non-operating related transactions or related transactions that harmed the interests of the company.
4. Other performance of duties
During the reporting period, I did not propose to convene a board of directors, propose to dismiss the accounting firm, or independently hire an external audit agency or consulting agency; I did not raise objections to any proposals reviewed by the board of directors, and voted in favor of all matters reviewed as required; I strictly abided by the company's "Insider Information Insider Registration and Management System", did not use inside information to buy or sell the company's stocks, and did not commit any violation of the discipline of independent directors in performing their duties.
5. Follow-up performance plan
As an independent director of the company, I will continue to uphold the principles of independence, objectivity, impartiality and diligence during my subsequent term of office, continue to strengthen my study of relevant laws, regulations and regulatory policies on the capital market, and improve my professional ability to perform my duties; I will further increase on-site research to gain an in-depth understanding of new situations and new issues in the company's business development, and provide guidance for the company's development strategy, operation management, and Propose more targeted professional suggestions for risk prevention and control; continue to strengthen the supervision of the company's major matters, financial information, information disclosure, investor protection, etc., effectively fulfill the loyal and diligent obligations of independent directors, promote the company to improve its governance structure, improve the level of standardized operations, promote the company's sustainable, stable and healthy development, and create greater value for all shareholders.
Lepu (Beijing) Medical Equipment Co., Ltd.
Independent director’s work report
Independent Director:
Quxin April 23, 2026