Huabao Flavors & Fragrances Co., Ltd. 2025 Annual Independent Director Performance Report (Quan Ze)
As an independent director of Huabao Flavors & Fragrances Co., Ltd. (hereinafter referred to as the "Company"), in 2025, I strictly followed the requirements of laws, regulations, and normative documents such as the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China" (hereinafter referred to as the "Securities Law"), the "Regulatory Guidelines for Listed Companies No. 2 - Normative Operation of GEM Listed Companies" issued by the Shenzhen Stock Exchange, and the "Administrative Measures for Independent Directors of Listed Companies," as well as the Company's internal "Articles of Association" and "Work System for Independent Directors." I upheld an objective, independent, and fair stance, actively attended relevant meetings, made independent decisions, fully leveraged the role of independent directors and various special committees, and protected the legitimate rights and interests of all shareholders, especially small and medium shareholders. The report on my performance in 2025 is as follows:
I. Basic Information I, Quan Ze, born in 1971, am a Chinese national with permanent residency in Canada. I hold a Ph.D. in Accounting and am a Certified Public Accountant. I previously served as Senior Manager in the Investment Banking Department of Shenyin Wanguo Securities Co., Ltd., Vice President of Hualong Securities Co., Ltd., General Manager of Shanghai Difeng Investment Co., Ltd., Deputy Director of the Enterprise Committee of the Shanghai Municipal Committee of the China Democratic League, and Member of the CPPCC Shanghai Xuhui District Committee. I am currently an independent director of the Company and concurrently serve as a director of Zhejiang Jinhua New Material Co., Ltd., a director of Jiangsu Pulley Environmental Protection Materials Technology Co., Ltd., a director of Zhejiang Yangbaili Biotechnology Co., Ltd., and a supervisor of Shanghai Rongxiu Enterprise Management Consulting Co., Ltd.
During the reporting period, my position met the independence requirements stipulated in Article 6 of the "Administrative Measures for Independent Directors of Listed Companies," and there were no circumstances that affected my independence.
II. Performance in 2025
(I) Attendance at Board Meetings In 2025, the Company held 9 board meetings. I strictly adhered to the requirements of the "Rules of Procedure for Board Meetings" and attended all 9 board meetings in person and on time, without any absences or proxy attendance. When reviewing matters submitted to the board, especially significant matters, I maintained close communication with the Company and relevant parties and meticulously reviewed relevant materials. During the meetings, I listened attentively and reviewed each proposal, fully utilizing my professional knowledge and combining it with the Company's operational realities to exercise independent director powers objectively, independently, and prudently, thereby ensuring the scientific decision-making of the Company's board. In 2025, I carefully considered all proposals and cast affirmative votes (except for proposals where I abstained from voting), without casting any dissenting or abstention votes.
(II) Attendance at Shareholder Meetings In 2025, the Company held 2 shareholder meetings, and I attended both.
(III) Participation in Board Special Committees In 2025, I served as the Chairman of the Audit Committee and a member of the Remuneration and Appraisal Committee. My work is detailed as follows:
- Audit Committee Work In 2025, I organized and presided over 5 Audit Committee meetings. We reviewed the Company's annual report, internal control evaluation report, special report on the fundraising and use of raised funds, and the appointment of the financial controller, among other matters. We gained a detailed understanding of the Company's financial status and operating conditions, strictly reviewed the construction and implementation of the Company's internal control system, and provided effective guidance and supervision. I communicated with the accountants regarding the annual report audit plan and audit progress, and proposed recommendations for key areas requiring attention during the audit. Additionally, the Audit Committee regularly understood and supervised the daily work of the Company's audit department and provided guidance.