Harbin Sanlian: 2025 Board of Directors Work Report
Harbin Sanlian Pharmaceutical Co., Ltd.
2025 Annual Board of Directors Work Report
In 2025, the board of directors of Harbin Sanlian Pharmaceutical Co., Ltd. (hereinafter referred to as the "Company") strictly complied with the Company Law, Securities Law and other laws and regulations as well as the relevant provisions of the Articles of Association and the Rules of Procedure of the Board of Directors, effectively performed the board of directors' responsibilities assigned by the shareholders' meeting, strictly implemented various resolutions of the shareholders' meeting, and carried out various tasks diligently and diligently, laying a good foundation for the company's sustainable and healthy development. The work of the company’s board of directors in 2025 is now reported as follows:
1. The company’s production and operations in 2025
In 2025, under the macro background of continued in-depth adjustments in the domestic pharmaceutical manufacturing industry, the company's pharmaceutical sector will face the pressure of in-depth adjustments brought about by the normalization of centralized procurement, and its performance will be under obvious pressure in stages. At the same time, the animal health and general health sectors are in a critical period of channel optimization, and they continue to increase strategic investment in brand building, market expansion and talent echelon, which will further intensify the overall performance pressure in the short term. During the reporting period, the company achieved operating income of 789.422 million yuan, a decrease of 30.29% compared with the same period; the net profit attributable to shareholders of the listed company was -339.6255 million yuan, a decrease of 678.82% compared with the same period.
In the face of severe challenges, the company proactively adapts to changes in policies and environment. Under the leadership of the board of directors, focusing on the core requirements of "fine management, improving quality and efficiency, controlling expenses and reducing costs, and clarifying rewards and punishments", the company firmly implements "cost reduction as the starting point, efficiency improvement as the goal, and improvement With the business strategy of "focusing on quality", we rationally formulate business plans, strengthen the continuous deepening and expansion of the market, and continuously enhance the overall risk resistance of the industry chain. At the same time, we use lean management to deeply tap internal potential, take advantage of the situation, reduce expenses, and strive to improve the quality of operations.
In terms of market expansion, the pharmaceutical sector actively responds to centralized purchasing policies and optimizes product mix. The 11th batch of national centralized purchasing and 1-8 Good results have been achieved in batches of centralized procurement and continuation work; the animal health sector focuses on core product pipelines, and by strengthening terminal services and refined channel operations, the market demand for some key products has effectively recovered; the general health sector relies on the company's technical advantages in pharmaceutical research and development and production to steadily promote the market promotion of new categories such as cosmetics, medical dressings, and drinking water, laying the foundation for the company to cultivate new profit growth points.
2. Main work of the Board of Directors in 2025
In 2025, the board of directors is committed to continuously improving the quality and efficiency of operations and improving the level of corporate governance. All directors perform their duties diligently and diligently, pay attention to the company's operating and management information, financial status, major events, etc., conduct in-depth discussions on various proposals submitted to the board of directors for review, provide suggestions for the company's business development, effectively enhance the scientific nature of the board of directors' decision-making, and promote the sustainable, stable and healthy development of the company's production and operation.
During the reporting period, the important work of the company’s board of directors is as follows:
(1) Convening of board of directors meetings
In 2025, the company's board of directors prepared, convened and held board meetings in strict accordance with relevant regulations such as the Company Law, Articles of Association and Rules of Procedure of the Board of Directors. During the reporting period, the company held a total of 9 board meetings to review and approve important matters including regular reports, revision of governance systems, lifting of restricted stocks, and appointment of accounting firms. All directors attended all required meetings in person, carefully studied, fully discussed and voted prudently on various proposals to ensure scientific decision-making and standardized operations of the board of directors.
(2) The board of directors’ implementation of shareholders’ meeting resolutions
In 2025, the company organized a total of 3 shareholders' meetings, all of which were convened by the board of directors and held on-site combined with online voting. All proposals were counted separately based on the votes of small and medium shareholders. In accordance with the resolutions of the shareholders' meeting and the powers conferred by the Articles of Association, and in the spirit of being responsible to all shareholders of the company, the company's board of directors has performed its duties, constantly improved the corporate governance structure, standardized the company's behavior, conscientiously implemented various resolutions passed by the company's shareholders' meeting, and completed relevant work actively and efficiently.
(3) Performance of duties by independent directors and special committees
The company's board of directors has four special committees: audit, nomination, strategy, remuneration and assessment committee. Each committee operates in accordance with the terms of reference stipulated in the "Code of Corporate Governance for Listed Companies", the "Articles of Association" and the Implementation Rules of the Special Committees of the Board of Directors, effectively performs its duties, and carries out fruitful work. During the reporting period, the Audit Committee held a total of 5 meetings. The committee strictly followed the basic norms of corporate internal control and the standardized operation requirements of listed companies, and reviewed the company's financial reporting, internal control, use of raised funds, and the company's internal audit work and other related proposals. During the reporting period, there was no objection from the members of the Audit Committee to the proposals reviewed. At the same time, the Audit Committee strictly followed the "Articles of Association," "Audit Committee Implementation Rules" and other relevant regulations, actively carried out work and conscientiously performed its duties. During the preparation of the company's 2024 annual report and the audit of financial statements, it will earnestly perform the duties of the audit committee, communicate with the company's external audit agency before, during and after the audit progress, and urge the accounting firm to complete the audit work in a timely manner with careful auditing; understand the current year's operating conditions from the company's management, continue to pay attention to the soundness and effectiveness of the company's internal control system, and actively promote the improvement and implementation of the company's internal control system. The Remuneration and Appraisal Committee of the Board of Directors held two meetings to review and issue unanimous review opinions on the remuneration of directors and senior executives and the lifting of restricted stocks. The Nomination Committee of the Board of Directors held two meetings to effectively verify the qualifications of candidates for the new term of directors and senior executives. The relevant meetings were held in accordance with relevant procedures.
In accordance with the requirements of the Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 - Standardized Operation of Main Board Listed Companies, the Articles of Association, the Rules of Procedure for the Board of Directors and the Working System for Independent Directors and other relevant laws and regulations, independent directors perform their obligations, exercise their rights, actively attend relevant meetings, carefully review various proposals of the board of directors, and express relevant opinions on matters that need to be studied and discussed in advance at special meetings of independent directors, which provides an effective guarantee for the scientific decision-making of the board of directors. In 2025, a total of 2 special meetings of independent directors were held to review related transactions and restricted stock lifting matters, and issued approval opinions.
(4) Standardized construction work of the board of directors
In 2025, the company successfully completed the re-election of the board of directors in strict accordance with legal procedures in accordance with the Company Law, Articles of Association and other relevant regulations. The members of the fifth board of directors were reviewed and approved by the company's shareholders' meeting. Their composition has both professional capabilities and industry experience, and is in line with the company's strategic development needs. The smooth change of the board of directors ensures the stability and continuity of the company's governance structure and helps to continuously improve the company's standardized operation level and long-term competitiveness. At the same time, the reform of the board of supervisors was implemented, and the audit committee of the board of directors exercised the powers of the board of supervisors stipulated in the "Company Law" and added an employee representative director seat, laying the foundation for further standardized operations.
(5) Information disclosure and investor relations work
The company regards information disclosure and investor relations management as the core link to build trust with the capital market and deliver value, and is committed to building a rigorous, efficient and transparent information disclosure system to ensure that all market participants can obtain decision-making information fairly and timely. First, complete the disclosure of regular reports on time, issue temporary announcements on various major events in a true, accurate, complete and timely manner based on the actual situation of the company, faithfully perform information disclosure obligations, ensure that investors understand the company's major events in a timely manner, and protect the interests of investors to the greatest extent. The second is to continue to improve the investor communication mechanism, and actively maintain interactive communication with investors through shareholders' meetings, online performance briefings, investor hotlines, investor emails and other channels, deepen investors' understanding and recognition of the company, and maintain a long-term, stable and good interactive relationship between the company and investors.
3. Priorities of the Board of Directors in 2026
2026 In 2019, the company's board of directors will strictly comply with the Company Law, Securities Law and other laws, regulations and regulatory requirements, closely focus on industry development trends, industrial policy guidance and the company's medium and long-term strategic planning, faithfully, diligently and prudently perform the decision-making, supervision and management responsibilities assigned by the shareholders' meeting, make overall coordination and effectively We will advance the implementation of various major business and management matters in an orderly manner, continue to improve the standardization level of corporate governance and core competitiveness, give full play to the core leadership and strategic decision-making role of the Board of Directors in the company's business development, concentrate our efforts, work hard, and strive to promote the company to achieve high-quality and sustainable development.
Board of Directors of Harbin Sanlian Pharmaceutical Co., Ltd.
April 27, 2026