Evaluation report of Shandong Buchang Pharmaceutical Co., Ltd. on the accounting firm’s performance of duties
Shandong Buchang Pharmaceutical Co., Ltd. (hereinafter referred to as the "Company") hired ShineWing Certified Public Accountants LLP (Special General Partnership) (hereinafter referred to as "ShineWing") as the auditor of the company's 2025 annual report. According to the "Administrative Measures for the Selection of Accounting Firms by State-owned Enterprises and Listed Companies" promulgated by the Ministry of Finance, the State-owned Assets Supervision and Administration Commission and the China Securities Regulatory Commission, the company will evaluate ShineWing's performance of its duties during the 2025 audit process. After evaluation, the company believes that ShineWing's qualifications and other aspects are compliant and effective, that it maintains independence in performing its duties, is diligent and conscientious, and expresses its opinions fairly. The specific situation is as follows:
ShineWing was formerly known as CITIC Certified Public Accountants, which was founded in 1987. In 2012, it was transformed into a special general partnership accounting firm. ShineWing obtained the accounting firm practice certificate issued by the Ministry of Finance and the China Securities Regulatory Commission on November 30, 2002. It has been engaged in the securities service business for a long time. It is one of the first accounting firms in China to obtain securities and futures-related business qualifications and the first accounting firms to obtain the audit qualification of financial enterprises.
As of the end of 2025, ShineWing has 257 partners, 1,799 certified public accountants, more than 12,000 domestic and foreign employees (including more than 10,000 domestic and more than 2,000 overseas), and more than 700 certified public accountants who have signed securities service business audit reports. It has the service ability to carry out business for multiple large state-owned enterprises and enterprise groups at the same time. The advantage of scale ensures that ShineWing can provide professional services in accordance with customers' time and quality requirements.
(1) Basic information
Signing Certified Public Accountant (Project Partner): Mr. Cui Teng, obtained the Chinese Certified Public Accountant qualification in 1998. He began to audit listed companies in 1999. He began practicing at ShineWing in 2019 and began to provide audit services for the company in 2021. He has signed and reviewed more than 5 listed companies in the past three years.
Signing Certified Public Accountant: Mr. Xu Niangui, obtained the Chinese Certified Public Accountant qualification in 2018. He began to audit listed companies in 2014 and started practicing at ShineWing Zhonghe in 2014. He will provide audit services to the company as a signing Certified Public Accountant in 2022. He has signed the certificate for 3 listed companies in the past three years.
Quality control reviewer: Mr. He Jun, who obtained the Chinese Certified Public Accountant qualification in 1994. He began to audit listed companies in 1994. He began practicing at ShineWing in 2009. He began to provide audit services to the company in 2024. In the past three years, he has signed and reviewed more than 10 listed companies.
(2) Integrity record
Project partner Cui Teng has been subject to administrative supervision and supervision measures once in the past three years, and Xu Niangui, the signed certified public accountant, has been subject to administrative supervision and supervision measures once and supervision measures once in the past three years, and has not been subject to criminal penalties, administrative penalties or self-disciplinary sanctions. Project quality control reviewer He Jun has not been subject to criminal penalties for his professional conduct in the past three years. He has not been subject to administrative penalties or supervisory management measures by the China Securities Regulatory Commission and its dispatched agencies or industry authorities. He has not been subject to self-regulatory measures or disciplinary sanctions by self-regulatory organizations such as securities exchanges and industry associations.
(3) Independence
ShineWing and its project partners, signing certified public accountants, project quality control reviewers and other employees did not violate the independence requirements of the Chinese Code of Professional Ethics for Certified Public Accountants.
(1) Quality control system
ShineWing has established a relatively complete business quality (risk) control system and technical support system, which provides a reliable foundation for ensuring the quality of business projects. During the 2025 annual audit process, the audit work was performed in strict compliance with relevant national laws and regulations and the Chinese Certified Public Accountants Auditing Standards, and professional ethics were observed. Independent audit opinions were fairly and reasonably issued on the company's financial status, and professional reports were issued objectively and impartially.
(2) Project quality review
During the audit process, ShineWing implemented a complete project quality review process, which mainly included internal review of the audit project team, project quality control review and issuance report review. Internal review of the audit project team: The on-site project manager can authorize high-level employees of the project team to review the manuscripts of lower-level employees, and the on-site project manager himself should review important audit work papers page by page. Project quality control review: Project quality control reviewers should independently review the independence of the project team and the identification of audit risks and the appropriateness of response measures. Review of issuance report: The report issuer should conduct a key review of the audit working papers and approve the issuance of the audit report.
(3) Project consultation and resolution of differences of opinion
ShineWing has established a clear mechanism for resolving professional disagreements. According to the relevant provisions on consultation and disagreements in the "Business Quality Management System", project consultations should be recognized by the consultees. Financial statement audit reports cannot be issued until disagreements are finally resolved. During the 2025 annual audit process, ShineWing reached consensus on all major accounting audit matters of the company, and there were no differences of opinion that could not be resolved.
(4) Quality management defect identification and rectification
ShineWing has formulated the "Business Quality Management