Xu Huibo

About Xu Huibo

• Chairman of the Board at Longduoduo Company Limited; the Board separates CEO and Chair roles, with Zhou Hongxiao as CEO and Xu as Chair, to balance strategy development and oversight . Age 42 (2025 proxy) with a Bachelor’s Degree in Finance from Shandong University (2006) .
• Background: decade-long focus on strategy and implementation; prior chair roles in consulting and asset management. Current external role: Chairman and President of Jinrong Holdings (Hainan) Group Co., Ltd. since 2022 (cardiovascular-focused hospital operator) .
• Company performance context during Xu’s current board service: FY 2024 revenues $327,599 and net income $1,255,448; FY 2025 revenues $120,866 and net income $460,435, indicating a YoY revenue decline and lower net income through FY 2025 .

Past Roles

External Roles

Fixed Compensation

• Executive-specific disclosure for Xu Huibo is not provided in the proxies; the Summary Compensation Table only discloses CEO pay and states no executive officer exceeded $100,000 in FY 2024 and FY 2023 .
• No equity compensation plans authorized by the Company; no stock options or other equity incentive awards have been made to any executive officer or director since inception .

Performance Compensation

• The Compensation Committee oversees incentive and equity plans, but Company disclosures state there are no securities authorized under any equity compensation plan and no individual equity awards have been granted since inception, implying no RSUs/PSUs/options for Xu . | Metric | Weighting | Target | Actual | Payout | Vesting | |---|---|---|---|---|---| | None disclosed | — | — | — | — | — |

Equity Ownership & Alignment

• Beneficial ownership for Xu Huibo: 106,000 shares (0.35%) as of both Jan 4, 2024 and Jan 9, 2025; total shares outstanding were 30,005,008 (2024 record date) and 30,005,016 (2025 record date) .
• No disclosure of hedging/pledging activity; no stock ownership guidelines disclosed .

Employment Terms

• Employment contracts for executive officers provide payment of disclosed salaries and may be terminated by either party upon thirty days’ prior written notice .
• No severance arrangements; no change-in-control compensation plans; no defined benefit or deferred compensation plans; no equity compensation authorized .

Board Governance

• Board service: Xu Huibo is a director and an officer; he serves as Chairman of the Board .
• Independence: Board determined Xu is not “independent” per Nasdaq rules; he serves on the Compensation Committee but not on the Audit or Nominating & Corporate Governance Committees .
• Committees (2025 proxy): Compensation Committee—members: Wu Binbin (Chair), Xu Huibo, Ma Jiayang ; Nominating & Corporate Governance Committee—members: Ma Jiayang (Chair), Wu Binbin, Shan Bo ; Audit Committee—Chair: Shan Bo (financial expert) .
• Governance structure: CEO (Zhou) and Chair (Xu) roles are separated to balance strategy and oversight; independent directors chair key committees. Board risk oversight conducted via regular senior management reporting to the full Board/committees .
• Historical note: No formal Board meetings were held in FY 2023; actions by written unanimous consent occurred twice; charters for Audit, Compensation, and Nominating & Corporate Governance were adopted on Nov 30, 2023 .

Director Compensation

• Independent director agreements: Wu Binbin and Ma Jiayang serve without cash compensation; Shan Bo receives $3,427 (RMB 25,000) per quarter . Earlier proxy: Wu Binbin and Li Zhijie served without cash; Shan Bo received $3,427 per quarter .
• No equity grants to directors since inception .

Company Performance (Context for Pay-for-Performance)

*Values retrieved from S&P Global.

Compensation Committee Analysis

• Composition: Wu Binbin (Chair, independent), Xu Huibo (non-independent), Ma Jiayang (independent). The charter empowers the committee to set CEO goals, approve other executive compensation, oversee incentive/equity plans, and approve employment/severance/change-in-control arrangements; the committee has not engaged compensation consultants since organization .
• Independence compliance: Board chose to comply with Nasdaq rules; only one non-independent director (Xu) serves on the Compensation Committee; none of the non-independent directors serve on Audit or Nominating committees .

Performance Compensation Structure Analysis

• No equity plans authorized and no RSU/PSU/option grants since inception—low at-risk equity compensation reduces direct equity alignment pressure but also removes typical performance levers tied to TSR, revenue, EBITDA, margin, or ESG metrics .
• Executive employment terms allow termination on 30 days’ notice; no severance or change-in-control multipliers or accelerated vesting terms disclosed—limited retention economics and minimal golden parachute risk .

Related Party Transactions and Ownership Concentration

• Ownership concentration: Zhang Liang holds ~51.30% of outstanding shares as of both proxies; other 5%+ holders include Li Qiaozhen, Liu Jiazhong, and Guo Xiaozhen .
• Related party balances (historical): amounts due to Zhang Liang and Zhou Hongxiao as of June 30, 2023 and 2022 were unsecured, repayable on demand, and interest-free .

Expertise & Qualifications

• Education: Bachelor’s Degree in Finance, Shandong University (2006) .
• Technical/industry experience: Strategy, financial management, and consulting across biotechnology, health management, and asset management sectors; current leadership role in healthcare (hospital operations) .

Equity Ownership & Alignment Implications

• Xu’s 0.35% beneficial ownership suggests modest personal economic alignment; no disclosed pledging or hedging; absence of equity awards reduces forced-selling pressure from vesting or tax-withholding events .

Employment Terms (Retention Risk)

• 30-day terminable contracts for executive officers; no severance, no change-in-control economics, and no equity acceleration—implies minimal contractual retention hooks and limited downside cost to transitions .

Investment Implications

• Alignment: Modest direct ownership (0.35%) and no equity award program limit traditional pay-for-performance alignment; however, separation of Chair and CEO roles provides governance balance; Xu’s non-independence on the Compensation Committee warrants monitoring for potential conflicts in pay-setting .
• Retention/overhang: Absence of equity plans and grants implies low insider selling overhang from vesting and low dilution risk, but also reduces incentives tied to performance metrics; contracts with 30-day termination and no severance/change-in-control benefits minimize financial friction in executive turnover .
• Control risk: Majority ownership by Zhang Liang (~51%) concentrates voting power, potentially diminishing minority shareholder influence on pay/governance; Xu’s role as Chair within a majority-controlled structure may affect board dynamics and compensation oversight .
• Performance backdrop: Revenue and net income fell in FY 2025 versus FY 2024; without disclosed performance-linked incentives, management compensation responsiveness to operating trends is unclear, increasing execution-risk concerns for investors focused on pay-for-performance .