Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited approved and implemented the “Rules of Procedures for the Audit Committee of the Board of Directors” at its 30th meeting of the 9th session of the board of directors on 28 October 2025. The document outlines the committee’s authority to independently review financial reporting procedures, risk management, and the internal control system, aiming to strengthen corporate governance and ensure stable, healthy development.

The announcement specifies that the Audit Committee shall comprise at least three non-executive directors, over half of whom must be independent. One independent director with accounting expertise will serve as the Committee’s chairman. The term of office for each member is three years. Key responsibilities include recommending appointment or dismissal of external auditors, reviewing financial statements, supervising internal and external audits, and overseeing significant transactions. The Committee has the authority to engage external professionals for investigations and may request relevant departments to submit financial records in a timely manner.

The document further clarifies meeting protocols, requiring at least one regular meeting each quarter. Resolutions must be approved by more than half of the committee members. Meeting records shall be retained for a minimum of 10 years. Where a conflict of interest arises, the relevant member must abstain from voting. These newly approved procedures took effect upon approval by the Board and will be adjusted if new laws, regulations, or listing rules require amendments.