West Point Pharmaceutical: 2025 Independent Director Work Report (Lu Xiangjun)
Jilin Xidian Pharmaceutical Technology Development Co., Ltd. 2025 Independent Director Work Report
Jilin Xidian Pharmaceutical Technology Development Co., Ltd.
2025 Independent Directors’ Work Report
I, Lu Xiangjun, as an independent director of the eighth board of directors of Jilin Xidian Pharmaceutical Technology Development Co., Ltd. (hereinafter referred to as the "Company"), strictly comply with the Company Law of the People's Republic of China (hereinafter referred to as the "Company Law"), the Securities Law of the People's Republic of China (hereinafter referred to as the "Securities Law") and the Regulations on the Management of Independent Directors of Municipal Companies, "Shenzhen Stock Exchange GEM Stock Listing Rules", "Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 2 - Standardized Operations of GEM Listed Companies" and other relevant laws and regulations, as well as the "Articles of Association", "Independent Director Work System" and other systems, in During the work in 2025, in line with the attitude of being responsible to all shareholders, we faithfully and diligently performed the duties and obligations of independent directors, attended special committees and the board of directors on time, focused on major matters of the company, and effectively safeguarded the legitimate rights and interests of the company and all shareholders, especially small and medium-sized shareholders. I hereby report on my performance of my duties as an independent director during my term of office in 2025 as follows:
1. Basic information of independent directors
I am Lu Xiangjun, born in November 1968, PhD, professor, CPA, ACCA. He has successively served as accountant of Jilin Provincial Highway Engineering Bureau, teacher and deputy director of the Accounting Department of Changchun Taxation University, deputy director of the Academic Affairs Office of Changchun Taxation University, dean of the Accounting School of Jilin University of Finance and Economics, director of the Academic Affairs Office of Jilin University of Finance and Economics, and dean of the Graduate School of Jilin University of Finance and Economics. He is currently a professor at Jilin University of Finance and Economics and an independent director of Northeast Securities Co., Ltd.
In 2025, I did not hold any position in the company other than as an independent director. I have no direct or indirect relationship with the company's major shareholders and actual controllers. There is no relationship that hinders my independent and objective judgment. There is no situation that affects the independence of independent directors. My position is in compliance with the "Administrative Measures for Independent Directors of Listed Companies"
The independence requirements stipulated in Article 6 have been submitted to the company, and the 2025 independence self-examination report has been submitted to the company to confirm that it meets the independence requirements for office.
2. Overview of duty performance in 2025
I actively participated in all board of directors, special committees, and shareholders meetings held by the company in 2025. In a diligent and responsible manner, I carefully reviewed the meeting proposals and related materials, actively participated in the discussion of various proposals and put forward reasonable suggestions, and played an active role in the correct and scientific decision-making of the board of directors; I will continue to pay attention to the implementation of the proposals after the meeting. In 2025, the company's board of directors and shareholders' meetings were convened in compliance with legal procedures, and relevant approval procedures were completed for major business decision-making matters and other major matters. My attendance at the meeting is as follows:
(1) Attendance at shareholders’ meetings
Jilin Xidian Pharmaceutical Technology Development Co., Ltd. 2025 Independent Director Work Report In 2025, the company held a total of 2 shareholders' meetings, and I attended both meetings.
(2) Attendance at the board of directors
In 2025, the company held a total of 4 board meetings. My attendance at the meetings is as follows:
Directors who should attend this year Attend in person Attend by proxy Absent
Name of independent director Number of remark meetings (times) (times) (times)
Lu Xiangjun 4 4 0 0 -
I attended in person and voted in favor of all resolutions reviewed at the board meetings attended.
No other independent directors are authorized to attend meetings during the 2025 term.
During my term of office in 2025, I did not raise any objection to any matter of the company.
(3) Attendance at special committees of the board of directors
The company's eighth board of directors has established four special committees: Audit Committee, Remuneration and Assessment Committee, Nomination Committee and Strategy Committee. During my term of office in 2025, as the chairman of the audit committee of the eighth session of the board of directors and a member of the nomination committee of the board of directors, I participated in the work of the special committees of the company's board of directors in accordance with the provisions of the "Working System for Independent Directors", "Implementation Rules of the Audit Committee of the Board of Directors", "Implementation Rules of the Nomination Committee of the Board of Directors" and other relevant systems. In 2025, the company held a total of 4 audit committee meetings during my tenure. My attendance at the meetings is as follows:
Audit Committee Meeting Nomination Committee Meeting
The number of times that should be attended. The number of actual attendance. The number of times that should be attended. The number of actual attendance4 4 0 0
As the chairman of the Audit Committee of the Board of Directors, I presided over the daily meetings of the committee, performed my duties conscientiously, and supervised and inspected the company's audit work based on the actual situation of the company; was responsible for the communication between the company's internal and external audits; reviewed the company's financial information and its disclosure; supervised the improvement and implementation of the internal control system; carefully reviewed the regular reports issued by the company, and gave full play to the professional functions and supervisory role of the audit committee.
(4) Attendance at special meetings of independent directors
During the reporting period, the company did not hold any special meeting of independent directors.
(5) Communication with internal audit institutions and accounting firms
In 2025, I will actively communicate with the company's internal audit institution and accounting firm to give full play to the role of an independent director with accounting expertise. Before the audit agency entered the scene, I took the initiative to communicate with the audit project team on the audit plan, annual audit key areas, risk prevention and control points and other matters, and clarified the core direction of the audit work. During the audit implementation process, I continued to pay attention to the audit progress, conducted in-depth discussions with the auditors on key issues such as periodic report preparation, financial accounting, etc., promptly supervised the audit progress, and ensured the timeliness, accuracy, objectivity and fairness of the audit work throughout the process.
(6) On-site work of independent directors
In 2025, I strictly followed the performance requirements of independent directors and carried out various tasks in a solid manner. I worked on-site for a total of 15 working days. By participating in the company's shareholders' meeting, board of directors, special committees of the board of directors, audit communication meetings, performance briefings, etc., I also paid close attention to the situation of the pharmaceutical industry and relevant announcements disclosed by the company. I communicated with the company's senior managers, financial director and board secretary from time to time to understand the company's operating status, management and internal control system operation, and conducted in-depth communication and discussion on the company's operation management and internal control operation. Use your professional abilities in finance to actively contribute ideas to the company's operations and management. The independence and professionalism of independent directors have been given full play to effectively protect the interests of the company and all shareholders, especially small and medium-sized shareholders. During the reporting period, the company went to the company's branch in Jilin City to conduct on-site research and on-site inspections, focusing on understanding the branch's production and operation status and the progress of investment project construction. Through on-site communication with relevant persons in charge, the company further understood the company's actual operating conditions and ensured the independent, objective and prudent exercise of voting rights and supervision rights.
The company provides necessary working conditions and personnel support for independent directors to perform their duties, and designates specialized departments and personnel such as the company's securities department and board secretary to assist us in performing our duties. At the same time, directors, senior managers and other relevant personnel actively communicate with us, inform us of the company's operations, provide documents and information, etc., carefully study the questions, requirements and opinions raised by independent directors, and provide us with timely feedback on the resolution and implementation of the problems.
(7) Other work done in communicating with small and medium-sized investors and protecting investors’ rights and interests
I participated in the 2025 online collective reception day event for investors of listed companies in Jilin jurisdiction and the 2024 annual performance briefing, learned about investor demands, and actively responded to investor concerns.
In 2025, as an independent director with an accounting major, I used my professional knowledge and skills to focus on the company’s financial status and gave full play to my professional functions and supervisory role as a member of the Audit Committee. It also continues to pay attention to the company's information disclosure work, and urges the company to strictly comply with the "Shenzhen Stock Exchange Stock Listing Rules", "Self-regulatory Guidelines for Listed Companies No. 2 - Standardized Operations of GEM Listed Companies" and other laws and regulations, as well as the company's "Information Disclosure Management System" and relevant provisions of the company's "Information Disclosure Management System" to complete the information disclosure work in a true, timely and complete manner, safeguarding the legitimate rights and interests of the majority of investors.
I actively study relevant laws, regulations and rules, and learn the latest norms and requirements for independent directors Jilin Xidian Pharmaceutical Technology Development Co., Ltd. The 2025 independent directors’ work report is required, and actively participate in various trainings organized by the exchange, the jurisdiction and the listed company association, constantly improve their professional level and professional competence, restrain themselves with higher requirements in maintaining their independence, be more cautious and objective in the process of daily participation in the company’s decision-making and voting, strengthen communication with other directors and management, provide opinions and suggestions for the company’s scientific decision-making and risk prevention, promote the company’s further standardized operations, and actively protect the legitimate rights and interests of investors, especially small and medium-sized shareholders.
3. Matters of focus in annual performance of duties
I strictly abide by the provisions of the Company Law, the Code of Governance of Listed Companies, the Measures for the Management of Independent Directors of Listed Companies, and other laws and regulations, as well as the Articles of Association, and perform my obligations of loyalty and diligence. I review various company proposals based on the principles of openness and transparency, actively participate in company decision-making, fully communicate on relevant issues, and promote the healthy development and standardized operation of the company. On this basis, we rely on our own professional knowledge to exercise our voting rights independently, objectively and prudently, and effectively safeguard the legitimate rights and interests of the company and investors. During the term of office in 2025, the key issues to focus on are as follows:
(1) Establishment of the system
The company on April 22, 2025 The 11th meeting of the eighth session of the Board of Directors was held on the same day, and the "Proposal on Amending and Establishing Part of the Company's Systems" was reviewed and approved, and relevant contents of the company's "Implementation Rules of the Audit Committee of the Board of Directors", "Implementation Rules of the Nomination Committee of the Board of Directors", "Implementation Rules of the Remuneration and Appraisal Committee of the Board of Directors", "Implementation Rules of the Board of Directors Strategy Committee", "Rules of Procedure of the Shareholders' Meeting", "Rules of Procedure of the Board of Directors", "Remuneration Management System for Directors and Senior Management Personnel", "Management System for Changes in Shareholdings of Directors and Senior Management Personnel" and "Working System of the Board Secretary" were revised.
On August 14, 2025, the company The twelfth meeting of the eighth session of the Board of Directors was held on the 12th, and the "Proposal on Amending and Establishing Part of the Company's Systems" was reviewed and approved, and the company's "Independent Director Working System", "Independent Director Special Meeting Rules", "External Guarantee Management System", "External Investment Management System", "Related Transaction Management System", "Repurchase Share Management System", "Cumulative Voting System Implementation Rules", and "Capital Raising Implementation Rules" We revised the relevant contents of the Financial Management System, Internal Audit System, Insider Registration Management System, Investor Relations Management System, Entrusted Financial Management System, Information Disclosure Management System, Seal Management System, Major Operation and Investment Decision Management System, and Major Information Internal Reporting System, and formulated a Director Resignation Management System.
(2) Delay of some investment projects
The company held the 10th meeting of the 8th board of directors on January 20, 2025, and reviewed and approved the "Proposal on the Extension of Some Fund-raising Projects". Based on the principle of prudence and combined with the actual development of the current fundraising projects, the company has extended the completion time of the "Modern Traditional Chinese Medicine Extraction Workshop Construction Project" to May 23, 2025, and the "Escitalopram Oxalate API Production Project" to 2026, provided that the implementation body, construction content, use of raised funds and investment project scale do not change. February 23rd. After deliberation, the board of directors agreed to the postponement of part of the company's fundraising projects.
The company held the 13th meeting of the 8th board of directors on October 28, 2025, and reviewed and approved the "Proposal on Adjusting the Internal Investment Structure of Partially Raised Fund Investment Projects". Based on the principle of prudence, combined with the use of raised funds and future plans, in order to improve the efficiency of the use of funds, the company will adjust the internal investment structure of the raised investment project "Escitalopram Oxalate API Production Project" without changing the investment content, investment purpose, amount of raised funds, and implementation location. After deliberation, the board of directors agreed to adjust the internal investment structure of the company's investment projects with part of the raised funds.
(3) Use of part of idle raised funds and self-owned funds for cash management and entrusted financial management
The company held the 10th meeting of the eighth board of directors on January 20, 2025, and reviewed and approved the "Proposal on Using Part of Idle Raised Funds for Cash Management and Part of Idle Own Funds for Cash Management and Entrusted Financial Management". In order to maximize the company's capital efficiency, the company uses part of the idle raised funds (including super-raised funds) with an amount of no more than RMB 100 million for cash management on the premise of ensuring the normal progress of the construction of investment projects with raised funds and the safety of funds. The company and its wholly-owned subsidiaries use part of the idle self-owned funds with an amount of no more than RMB 150 million for cash management and entrusted financial management on the premise of ensuring that it does not affect the company's daily operations. They are used to purchase short-term investment products with high safety, good liquidity and a term of no more than 12 months. The term of use shall be valid for 12 months from the date of approval by the board of directors. Within the above quota and period, the funds can be used on a rolling basis.
(4) Regular reporting of relevant matters
During the term of office in 2025, the company strictly complied with the requirements of the Company Law, Securities Law, Management Measures for Information Disclosure of Listed Companies, Shenzhen Stock Exchange GEM Stock Listing Rules and other relevant laws, regulations and normative documents, and prepared and disclosed the "2024 Annual Report", "2025 First Quarter Report", "2025 Semi-Annual Report" and "2025 Third Quarter" on time. Report", "The Company's 2024 Profit Distribution Plan", "2024 Internal Control Self-Evaluation Report", "Special Report on the Storage and Use of Raised Funds in 2024", "Special Report on the Storage and Use of Raised Funds in the Half-Year 2025", accurately disclosed the financial data and important matters during the corresponding reporting period, and fully disclosed the company's operating conditions to investors. The above-mentioned reports have been reviewed and approved by the company's board of directors and audit committee, and the company's directors and senior managers have signed written confirmation opinions on the company's regular reports.
Jilin Xidian Pharmaceutical Technology Development Co., Ltd. 2025 Independent Director Work Report
The company's review and disclosure procedures for periodic reports are legal and compliant, and the financial data are accurate and detailed, truly reflecting the company's actual situation.
(5) Employment of accounting firms
The company held the 11th meeting of the eighth board of directors on April 22, 2025, and held the 2024 annual shareholders' meeting on May 15, 2025. The "Proposal on the Appointment of an Accounting Firm for 2025" was reviewed and approved. The company agreed to appoint Rongcheng Accounting Firm (Special General Partnership) (hereinafter referred to as "Rongcheng Firm") as the company's audit agency for 2025. Rongcheng has many years of experience and ability in providing audit services for listed companies, which can meet the company's financial audit work requirements, which is conducive to ensuring and improving the quality of the company's audit work, and is conducive to protecting the interests of listed companies and other shareholders, especially the interests of small and medium-sized shareholders. Rong Cheng possesses sufficient independence, professional competence and investor protection capabilities. The company's review and disclosure procedures comply with relevant laws and regulations.
(6) Remuneration of directors and senior management personnel
The company held the 11th meeting of the eighth board of directors on April 22, 2025, and the 2024 annual shareholders' meeting on May 15, 2025, to review and adopt the "Proposal on the Company's 2025 Directors' Remuneration Plan", "The Proposal on the Company's 2025 Senior Management Remuneration Plan" and "Directors and Senior Management Remuneration Management System". The salary formulation of the company's directors and senior managers fully combines the development level of the company's industry, the salary standards of companies in the same industry and the company's actual operating conditions, taking into account incentives and rationality. It can effectively mobilize the enthusiasm and initiative of directors and senior managers, help the company's sustainable and healthy development, and does not harm the interests of the company and all shareholders.
Except for the above-mentioned matters, the company has not incurred other matters that require major attention during its term of office in 2025.
4. Overall evaluation and suggestions
In 2025, I will strictly abide by relevant laws, regulations and regulatory requirements, adhere to the principles of independence, objectivity and prudence, and faithfully and diligently perform the duties of an independent director. Through in-depth understanding of the company's operations, using professional knowledge to prudently express opinions and suggestions, and actively safeguarding the legitimate rights and interests of the company and shareholders, especially small and medium-sized shareholders.
In 2026, I will continue to perform my duties diligently and in accordance with the requirements of relevant national laws and regulations, the "Articles of Association" and the "Working System for Independent Directors", pay close attention to the impact of external environment and market changes on the company, further strengthen communication with other directors and managers of the company, use my professional knowledge to provide suggestions for the company's sustainable and healthy development, give full play to the role of independent directors, and effectively safeguard the legitimate rights and interests of the company's shareholders, especially small and medium-sized shareholders.
This is reported.
Jilin Xidian Pharmaceutical Technology Development Co., Ltd. 2025 Independent Director Work Report
Independent Director of Jilin Xidian Pharmaceutical Technology Development Co., Ltd.: Lu Xiangjun
April 27, 2026