Shanghai Huafeng Spandex Co., Ltd.
2025 Annual Board of Directors Report
In 2025, Shanghai Huafeng Spandex Co., Ltd. (hereinafter referred to as the "Company") Board of Directors strictly followed the "Company Law," "Securities Law," "Shenzhen Stock Exchange GEM Stock Listing Rules," "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guide No. 2 - GEM Listed Company Standardized Operation Guide," and the Company's "Articles of Association" and the Company's "Board of Directors Meeting Rules" and other laws, regulations, normative documents, and regulatory requirements. The company continuously improved its corporate governance structure, established and improved its internal management and control systems, standardized its operations, and enhanced its corporate governance level to promote the company's sustained, healthy, and stable development. The 2025 Board of Directors Work Report is hereby submitted as follows:
I. Overview of the Company's Overall Operations During the Reporting Period
In 2025, the Company actively implemented the strategic deployment of the Board of Directors and steadily advanced various tasks, closely following the annual operating plan. During the reporting period, operating revenue reached RMB 399,841.12 million, a year-on-year decrease of 12.73%. Net profit attributable to the parent company was RMB 6,676.66 million, a year-on-year decrease of 5.98%. Net cash flow from operating activities was RMB 64,403.48 million, a year-on-year decrease of 28.67%. This was mainly due to the impact of the macroeconomic environment, a slowdown in downstream customer demand, changes in the order structure, and the Company's proactive adjustment of its sales strategy, which led to a decrease in main business revenue for the period.
II. Board of Directors' Daily Work During the Reporting Period
(I) Board of Directors Meetings Held
In 2025, the Company's Board of Directors, in accordance with the responsibilities granted by the "Company Law" and the "Articles of Association," legally convened and held Board of Directors meetings to review and make decisions on various major matters of the Company. During the reporting period, the Company convened a total of 6 Board of Directors meetings. All directors personally attended all meetings, and no director missed two consecutive meetings without personal attendance. The directors conscientiously performed their duties, diligently worked, continuously paid attention to the Company's operational management, financial status, and the progress of major matters, and resolutely supervised and promoted the implementation of the Board of Directors' resolutions to ensure that decisions were scientific, timely, and efficient, thereby safeguarding the legitimate rights and interests of the Company and all shareholders. The specific details and resolution content of each meeting have been announced on the designated information disclosure website of the GEM in accordance with laws and regulations. The main situation is as follows: