Core Viewpoint - The supervisory board of Shandong Linuo Pharmaceutical Packaging Co., Ltd. has confirmed the legality and accuracy of the company's 2025 semi-annual report and related financial documents, ensuring compliance with relevant regulations and reflecting the company's actual situation [1][2][3]. Meeting Details - The 11th meeting of the 4th supervisory board was held on August 8, 2025, with all three supervisors present, either in person or via telecommunication, confirming the meeting's legality and effectiveness [1]. Financial Report Review - The supervisory board reviewed the 2025 semi-annual report and found that the procedures for its preparation and review complied with legal and regulatory requirements, with no false records or significant omissions [1][2]. Fund Usage Compliance - The board confirmed that the use of raised funds during the first half of 2025 adhered to the relevant regulations set by the China Securities Regulatory Commission and the Shenzhen Stock Exchange, with no violations noted [2][3]. Change in Fund Usage - The supervisory board approved a change in the use of part of the raised funds, stating that the decision aligns with the company's current needs and will enhance the efficiency of fund utilization, benefiting the company and its shareholders [3][4]. Acquisition and Investment - The board agreed on a transaction based on the company's business development needs, which aims to integrate resources with Suzhou Chuangyang New Materials Technology Co., Ltd., ensuring reasonable pricing and no significant impact on daily operations [3][4]. Risk Management Enhancement - The board supported the purchase of directors and officers liability insurance, which is expected to optimize the company's risk management system and promote responsible conduct among senior management [4][5].

Financial Performance - The company's revenue for the first quarter of 2025 decreased due to a strategic and operational model transformation, with a total of 47 stores modified, leading to a decline in overall revenue as 273 stores were closed compared to the same period last year [1][2] - The net profit attributable to shareholders decreased primarily due to a 1.35 percentage point drop in gross margin, influenced by the optimization of product structure and procurement during the store modifications [1][2] - The fair value change loss of Advantage Solutions stock amounted to -172 million yuan, resulting in a profit decrease of 249 million yuan compared to the same period last year [1] Operational Highlights - As of March 31, 2025, online business revenue reached 3.15 billion yuan, accounting for 18.02% of total revenue [5] - The "Yonghui Life" app covered 670 stores, generating sales of 1.75 billion yuan, with an average daily order volume of 231,000 and a monthly repurchase rate of 47.6% [6] - The company accelerated store modifications, focusing on quality retail, with a total of 61 modified stores by the report date [7] Shareholder Information - The company proposed not to distribute cash dividends or implement other forms of distribution for the 2024 fiscal year, as the net profit attributable to shareholders was negative for four consecutive years [9][14] - The profit distribution plan has been approved by the board and will be submitted for shareholder meeting approval [10][12] Governance and Risk Management - The company plans to purchase liability insurance for directors, supervisors, and senior management to enhance risk management and protect the interests of the company and investors [18] - The board of directors has proposed to appoint Wang Shoucheng as a non-independent director, pending approval at the upcoming shareholder meeting [20] Audit and Compliance - The company intends to renew its contract with Ernst & Young Huaming for the 2025 financial audit, with the proposal having been approved by the board and requiring shareholder meeting approval [49][57]