COPYRIGHT© Jilin Zixin Pharmaceutical Industrial Co.,Ltd.

COPYRIGHT© 2018  吉林紫鑫药业股份有限公司

Announcement on Resolutions of the 6th Meeting of the 5th Board of Supervisors of Jilin Zixin Pharmaceutical Co., Ltd.

Page view

Stock code: 002118 Securities abbreviation: Zixin Pharmaceutical Announcement No.: 2014-010

Jilin Zixin Pharmaceutical Co., Ltd.

Announcement on Resolutions of the 6th Meeting of the 5th Board of Supervisors

The company and all members of the board of directors guarantee that the content of the information disclosure is true, accurate and complete, and there are no false records, misleading statements or major omissions.

The sixth meeting of the 5th Board of Supervisors of Jilin Zixin Pharmaceutical Co., Ltd. (hereinafter referred to as the “Company”) was held in the company meeting room on the afternoon of February 24, 2014. The meeting was notified on February 14, 2014 in writing and electronically. It is issued by mail, telephone, etc., in compliance with the provisions of the Company Law and the Articles of Association. The meeting should attend 3 supervisors and 3 actual supervisors. Hosted by Supervisor Tian Feng.

After careful consideration by the supervisors attending the meeting, the following proposals were passed:

1. The meeting voted and approved the "2013 Annual Report of the Company" and its summary with the result of 3 votes, 0 votes against, and 0 abstentions.

The Board of Supervisors submitted a written review opinion on the 2013 annual report: After careful review, the Board of Supervisors believed that the 2013 Annual Report of Jilin Zixin Pharmaceutical Co., Ltd. prepared by the Board of Directors was true, accurate and complete, and there were no false records, misleading statements or major omissions. .

This proposal still needs to be submitted to the company's 2013 annual general meeting for consideration.

2. The meeting voted and approved the “Work Report of the 2013 Supervisory Committee of the Company” with 3 votes in favor, 0 votes against, and 0 abstentions, and agreed to submit the proposal to the 2013 Annual General Meeting for consideration.

The full text of the 2013 Work Report of the Supervisory Committee was published on the company's designated information disclosure website www.cninfo.com.cn.

3. The meeting voted and approved the 2013 Financial Statements by 3 votes, 0 votes against, and 0 abstentions.

Comments of the Board of Supervisors: The 2013 annual financial report prepared by the Board of Directors has been prepared in accordance with the “Accounting Standards for Business Enterprises”. It reflects the financial status of the company on December 31, 2013 and the operating results and cash flows of the company in 2013 in all material aspects.

This proposal still needs to be submitted to the company's 2013 annual general meeting for consideration.

4. The meeting voted and approved the 2013 Profit Distribution Plan with 3 votes in favor, 0 votes against, and 0 abstentions.

According to the audit report issued by Zhongzhun Certified Public Accountants Co., Ltd. (Special General Partnership) [2014] No. 1087, the net profit attributable to shareholders of the listed company in 2013 is 50,480,288.62 yuan, and the parent company realizes after-tax profit of 133,005,834.46 yuan. After extracting 10% of the statutory surplus reserve of 13,300,583.45 yuan, the profit available to shareholders for the year was RMB 119,705,251.01. As of December 31, 2013, the accumulated profit available to the shareholders of the parent company was RMB 406,950,766.25.

As the company's ginseng industry is currently in the investment period, raw material prices are rising, the company is actively preparing raw materials for ginseng products, and the factories and equipment related to ginseng products have been completed, and the funds required for business investment are large. To ensure the sustainable development of the company and reduce the company's financing costs, the company intends not to distribute profits in 2013, nor to convert capital reserve into share capital.

The Board of Supervisors considered that the company's 2013 annual profit distribution did not make a cash dividend decision, in line with the requirements of the relevant regulations. At the same time, due to the development of ginseng industry, the company does face a certain degree of capital demand pressure in 2014. Failure to carry out cash dividends is conducive to ensuring the smooth implementation of the company's projects under construction, and is also conducive to safeguarding the long-term interests of shareholders.

This proposal still needs to be submitted to the company's 2013 annual general meeting for consideration.

V. The meeting voted with 3 votes, 0 votes against, and 0 abstentions, and passed the “Proposal of the Board of Directors <Special Explanation on Issuing the Audit Report on the Accounting Firms' Retention Opinions>”

The Board of Supervisors' opinion on the “Special Explanation on the Audit Report on the Issuance of Retention Opinions to Accounting Firms” prepared by the Board of Directors is as follows: The Board of Supervisors believes that the special explanation of the Board of Directors objectively and truly reflects the actual situation of the company.

6. The meeting voted and approved the "Special Report on the Deposit and Use of Raised Funds in 2013" with the result of 3 votes, 0 votes against, and 0 abstentions.

Upon review, the Board of Supervisors agreed to the “Special Report on the Deposit and Use of Raised Funds in 2013” ​​prepared by the Board of Directors.

VII. The meeting voted and approved the “Proposal of the Board of Directors on the Self-evaluation Report on Internal Control of 2013” ​​with the result of 3 votes, 0 votes against, and 0 abstentions.

The opinion of the Board of Supervisors: The self-evaluation of the internal control of the company is in line with the requirements of the “Guidelines for the Standardized Operation of the Listed Companies of the SME Board of Shenzhen Stock Exchange” and other relevant documents; the self-evaluation truly and completely reflects the status quo of the establishment, improvement and implementation of the internal control system of the company; The overall evaluation of internal control is objective and accurate.

 

Special announcement

Jilin Zixin Pharmaceutical Co., Ltd. Supervisory Committee

February 25, 2014