Environmental, Social and
Governance (ESG) Report
Shanghai Medicilon Inc.
Stock Code 688202
Address 585 Chuanda Road, Pudong, Shanghai, China
Tel. 021-58591500
Website https://www.medicilon.com
Shanghai Medicilon Inc. 2025 Environmental, Social and Governance (ESG) Report
About this Report 01
Contents
Message from the Chairman 03
About Medicilon 05
Sustainable Development Climate-related Transition and Sustainable Supply Chain and
Governance 15 Governance Structure 28 Green Development 78 Community Development 102
Sustainable Development Governance 29 Response to Climate Change 79 Establishment of Responsible
Strategy 15 Supply Chain 103
Investor Relations Management Energy and Resource Utilization 82
Long-term Goals of Sustainable and Shareholders’ Rights and Promotion of Sustainable
Development Topics 16 Interests 32 Environmental Compliance Development of Supply Chain 106
Management 90
Sustainable Development Risk Management and Internal Equal Treatment of Small and
Management System 17 Control 34 Waste Disposal 96 Medium-Sized Enterprises 107
Special Actions for Anti-Commercial Bribery and Protection of Ecosystem and Community Public Welfare 108
Sustainable Developmen 19 Anti-Corruption 37 Biodiversity 100
Communications with Anti-unfair Competition and
Stakeholders 20 Anti-Monopoly 42
Analysis of Material
Topics 21
Innovation-Driven Development Product Quality and Customer Employee Development,
and Data Security 44 Service 64 Health, and Safety 110 Appendix 133
Innovation-Driven Development 45 Product Quality Management 65 Protection of Employees’ Rights 111 Key Performance Form 133
and Interests
Protection of Intellectual Property Customer Service Management 71 Indexes 137
Rights 51 Occupational Health and Safety 121
Medicilon’s Global Development Feedback 140
Science and Technology Ethics System 74
and Medical Ethics 54
Responsible Marketing 76
Data Security and Customer Future Prospects 131
Privacy Protection 57
Description of Data The financial data and cases in this report are sourced from the official
About this Report documents, internal statistical reports, audited financial reports and verified
operational data of Shanghai Medicilon Inc. Unless otherwise specified, all
amounts in this report are expressed in RMB. For any discrepancy between
This report is the fifth Environmental, Social and Governance (ESG) Report of Shanghai Medicilon
this report and the annual financial reports, the latter shall prevail.
Inc., intended to provide stakeholders with a comprehensive disclosure of the Company’s core
principles, management approaches, implementation progress and performance outcomes in This report has been reviewed and approved by the Board of Directors of the
relation to ESG topics throughout its business operations and development. Company. The Board of Directors, along with all directors, hereby guarantees
that this report is free from false information, misleading statements or
material omissions, and assumes responsibilities for its truthfulness, accuracy
Reporting Scope This report is specific to Shanghai Medicilon Inc. and its subsidiaries
and completeness.
(“Medicilon”, the “Company” or “we”). Unless otherwise specified, the
scope of this report is consistent with that of the consolidated financial Appellation Description
statements of Medicilon (Stock Code: 688202.SH) for the
corresponding reporting period. Term Definition
Reporting Period This report covers the period from January 1, 2025 to December 31, Medicilon/the Company/we Shanghai Medicilon Inc.
completeness, some sections of this report may be appropriately Medicilon Puya Medicilon Preclinical Research (Shanghai) LLC.
referred to previous years or contain forward-looking statements.
Medicilon Puhui Medicilon Puhui Pharmaceutical Technology (Shanghai) Co. Ltd.
Reference Standard and Preparation Basis
Medicilon Purui Medicilon Purui Biomedical Technology (Shanghai) Co., Ltd.
Rules Governing the Listing of Stocks on the STAR Market of Shanghai Stock Exchange
Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies on SSE STAR
Medicilon Puson Medicilon Puson Pharmaceutical Technology (Shanghai) Co., Ltd.
Market No.1 - Standardized Operation of Listed Companies
Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 14 -
Sustainability Report (Trial)
Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies on SSE STAR Access to this Report This report is available in electronic format. You may download this report from
Market No. 13 - Preparation of Sustainability Reports (Revised in January 2026) the websites of the Shanghai Stock Exchange (www.sse.com.cn), cninfo
Global Reporting Initiative Sustainability Reporting Standards (GRI Standards) (Reference (www.cninfo.com.cn) or the Company (https://www.medicilon.com.cn) to access
Standard) more information.
UN Sustainable Development Goals (SDGs)
Feedback If you have any suggestions on this report, please don’t hesitate to contact us at:
Address: 585 Chuanda Road, Pudong, Shanghai, China
Email: IR@medicilon.com
Demonstrating corporate responsibility through ESG practices. As a long-term participant in the
Message from the Chairman biopharmaceutical industry, we recognize that corporate development is inseparable from environmental
stewardship and social progress. Accordingly, ESG principles are deeply integrated into our development strategy
and corporate culture. In terms of green development, we continuously upgrade our green chemistry platform by
Dear shareholders and all friends who care about Medicilon, integrating advanced technologies such as electrochemistry, photochemistry and metal catalysis, optimizing
synthesis routes, reducing emissions and resource consumption, and exploring low-carbon pathways for
We sincerely thank you for your continued attention and support for Medicilon, and for accompanying us in
pharmaceutical R&D, thereby contributing to the achievement of China’s carbon peaking and carbon neutrality
witnessing the wave of innovation in the biopharmaceutical industry as we advance steadily in the field of
goals. In terms of social responsibility, we remain committed to supporting education and public welfare initiatives,
preclinical research services. At present, the global biopharmaceutical industry is at a pivotal stage
making ongoing contributions to educational foundations and local charitable organizations to promote talent
characterized by both transformation and opportunity. Rapid technological advancement, increasingly clear
development, educational advancement and shared prosperity. At the same time, we actively facilitate industry
regulatory guidance and evolving market demand are creating broader development prospects while also
exchange and collaboration by organizing forums, participating in domestic and international conferences and
setting higher standards for industry participants. Medicilon remains committed to the principle of
offering online training programs, sharing R&D experience and technical insights to support the coordinated
“innovation-driven and quality-oriented development”, maintaining strategic focus and advancing with
development of the industry.
determination amid a rapidly changing environment.
Looking ahead, we will continue to adhere to the core
Focusing on core business and strengthening technological barriers through innovation. We consistently
direction of “innovation-driven growth, compliance-led
regard scientific and technological innovation as the primary engine of growth, closely tracking frontier
operations and sustainability-enabled development”.
trends in drug discovery while continuously advancing key technologies in preclinical research. In 2025,
We will further strengthen technological innovation,
Medicilon successfully passed the NMPA GLP additional accreditation, FDA on-site re-inspection, PMDA
continuously improve service quality and remain
on-site project inspection and CNAS laboratory reassessment, and obtained OECD GLP certifications in
steadfast in fulfilling our corporate responsibilities,
Hungary and Mexico, thereby establishing a comprehensive qualification matrix recognized by major global
delivering more resilient growth and higher-quality
regulatory authorities. We continued to enhance our integrated one-stop R&D service platforms covering
services in return for the trust and expectations of all
ADC, RNAi, PROTAC, peptides and cell and gene therapy, while actively advancing new technologies and
stakeholders. Together with industry partners, we will
methodologies, including AI-enabled drug discovery, in vitro safety evaluation, organoid and PDXO models,
work to advance the high-quality development of
and physiologically based pharmacokinetics (PBPK). Through these efforts, we are exploring new
China’s biopharmaceutical industry and make greater
paradigms in drug evaluation and building sustainable innovation momentum to support the Company’s
contributions to global drug innovation and human
high-quality development.
health and well-being.
Expanding development boundaries through ecosystem collaboration and global presence. In 2025, we
partnered with global innovators including Hengrui Pharma, Kexing Biopharm, Oncotelic and BIK
Therapeutics to jointly build a forward-looking international innovation ecosystem. With the continued
advancement of our globalization strategy, the proportion of overseas business increased steadily, newly
signed international orders continued to grow, and our global service capabilities and market
Founder, Chairman and Chief Executive
competitiveness were further strengthened, providing strong momentum for long-term sustainable
Officer of Shanghai Medicilon Inc.
development.
About Medicilon
Company Profile
Founded in 2004, Medicilon (Stock Code: 688202.SH) is dedicated to providing global pharmaceutical companies,
research institutions and scientific investigators with comprehensive preclinical drug research services. The
Company has established an integrated one-stop R&D platform covering drug discovery, CMC development and
preclinical research.
In frontier technology areas, Medicilon continues to strengthen its integrated R&D platforms for ADC, RNAi, PROTAC,
peptides, and cell and gene therapies. We’ve developed nearly 1,000 pharmacodynamics models and actively
explores and applies new approach methodologies (NAMs), including AI-enabled drug discovery, in vitro safety
Chairman
assessment, organoid and PDXO models and PBPK modeling.
With respect to quality management, we’ve established a quality control system in compliance with international
Internal Control and Audit Department Securities Office
standards and have obtained GLP certifications from the China NMPA, the U.S. FDA and the OECD, as well as
AAALAC international accreditation. The Company currently operates over 92,000 square meters of R&D laboratory
facilities across domestic and overseas locations.
Chief Executive Officer
In 2025, the Company’s globalization strategy entered a new phase. The Boston Innovation Center in the United
States officially commenced operations and began generating revenue, operating in close coordination with the
Chief Scientific Officer
Company’s domestic R&D centers in Zhangjiang, Chuansha and Nanhui in Shanghai to form an R&D service General Manager’s Office
Chief Technology Officer
network spanning China and the United States with global reach. The Company aims to gradually increase the
proportion of overseas business and to provide high-quality technical support to global partners.
As of the end of 2025, Medicilon had provided services to more than 2,000 clients worldwide. Among the new drug
and generic drug projects supported by us, 651 have successfully obtained IND clinical approvals. In 2025 alone, we
supported the successful approval of 131 Investigational New Drug (IND) filings, including more than 10 overseas CMC Preclinical Business
Drug Discovery U.S. Business Functional
IND approvals. Development Research Development
Division Division Support Center
Division Division Center
+ + +
years
Organizational Structure of Medicilon
R&D Experience Clients Worldwide Scientists & Supporting Researchers
Laboratories and Facilities
+m2 651
IND Filings
Pharmacodynamics Models
Business Layout Formulation Research
Provide end-to-end formulation development services, including formulation research, manufacturing and
Medicilon focuses on the full preclinical R&D value chain in the biopharmaceutical field and has established a quality consistency evaluation. Through formulation innovation, we optimize drug performance
comprehensive business framework comprising three core segments—drug discovery, CMC development and characteristics or expand indications, enabling product differentiation and extension of the product lifecycle.
preclinical research—together with integrated project management services. Leveraging the synergistic capabilities Analytical Chemistry
across these segments, the Company provides end-to-end R&D solutions for global clients, efficiently supporting Medicilon’s Analytical Chemistry Service Center provides integrated analytical solutions and technical support
preclinical development and regulatory submission of new drug candidates. for drug development, CMC regulatory submissions and product release testing. In August 2025, the
Medicilon Chemistry Service Center laboratory successfully passed the on-site re-assessment conducted by
Drug Discovery the China National Accreditation Service for Conformity Assessment (CNAS), demonstrating that its testing
Drug discovery represents the initial stage of the R&D process, focusing on target validation, lead capabilities and quality management system continue to meet internationally recognized accreditation
compound screening and optimization as well as early druggability assessment, with the objective of standards.
delivering candidate compounds with favorable druggability. Medicilon primarily provides two core
categories of services: chemistry services and biology services. Preclinical Research
Chemistry Services Preclinical research covers both chemical drugs and biologicals, with bioactivity analysis and pharmacological
Supported by comprehensive capabilities in medicinal, synthetic and process chemistry and analytical and toxicological evaluation conducted through in vitro and in vivo studies. Core service areas include
chemistry, together with advanced supporting facilities, Medicilon provides high-quality chemical synthesis pharmacology, PBPK and safety assessment.
services through an efficient and cost-effective operating model. These services enable seamless transition Pharmacology
from laboratory-scale synthesis to kilogram-scale process development, covering the full spectrum of
Medicilon has established multi-species and multi-disease model systems, with the capability to develop
chemical research from compound screening to IND filing.
customized models and integrate in vivo imaging technologies, providing precise and reliable support for
Biology Services
drug efficacy evaluation.
With extensive expertise in cell, molecular biology and structural biology, Medicilon provides end-to-end
ADME/DMPK
services ranging from cDNA library construction to drug design. Supported by technologies including
Provide in vitro and in vivo ADME and bioanalytical services for multiple drug modalities. Supported by
protein purification and structural characterization, these services provide critical biological data to support
advanced instrumentation, we perform a wide range of pharmacokinetic studies, delivering high-quality data
drug discovery and candidate optimization.
with efficient turnaround to support drug development programs.
Comprehensive Chemistry, Manufacturing and Control (CMC) Development Safety Assessment
CMC development serves as a fundamental safeguard for drug efficacy and safety. Focusing on APIs and Medicilon has GLP-compliant service capabilities and extensive experimental animal resources across
formulations, Medicilon conducts comprehensive studies covering process development, quality control multiple species, enabling the provision of preclinical toxicokinetic and safety evaluation services covering a
and stability evaluation, thereby laying a solid foundation for new drug commercialization and regulatory wide range of regulatory-compliant studies.
compliance.
Integrated Project Services
API Research
By leveraging our end-to-end R&D capabilities, we provide integrated services for chemical drugs from lead
Provide integrated research services covering API process development, quality control and stability
compound screening and optimization through IND filing, covering the entire preclinical development value
evaluation, including process optimization, impurity control and stability studies at pilot scale and above.
chain.
Through end-to-end quality management, the Company enhances product safety, consistency and
suitability for large-scale manufacturing.
December 19, 2025
Corporate Culture “Technology Empowerment,
October 24, 2025 Intelligent Innovation for the
As a provider of outsourced preclinical research services, Medicilon is The first anniversary celebration Future” — Medicilon Shanghai
committed to delivering comprehensive preclinical research solutions to of the Medicilon Boston Seminar series were
Vision
pharmaceutical companies, research institutions and scientific investigators Innovation Center was successfully concluded.
worldwide, thereby supporting the advancement of new drug development. successfully held.
Mission Innovate in R&D, Impartial in Evaluation, Economic in Development
August 28, 2025
Values Innovation First, Collaboration, Client-centric Excellence and Unwavering Dedication
Medicilon obtained
OECD GLP certification
(Hungary)
Milestones in 2025
October 1, 2025
Medicilon participated in the 4th
World Congress of Biopharm
August 12, 2025
Industry Development and
Medicilon Chemistry Service
co-hosted the “Shanhai Forum”
Center passed the CNAS
April 27, 2025 roundtable session
on-site re-assessment
Leaders from the Standing Committee of the August 13, 2025
People’s Congress of Pudong New Area
Medicilon obtained OECD
conducted an official visit and research
GLP certification (Mexico)
inspection at Medicilon
May 20, 2025
Medicilon passed the FDA on-site
re-inspection
March 3, 2025
Newly commissioned laboratory facilities
of Medicilon obtained NMPA GLP
additional accreditation
Honors and Awards in 2025
Type Award Name Awarding Authority
Primary Drafting Organization of the Group Standard
Economic •Pioneer Enterprise in Global Expansion •People’s Government of Pudong New Area, Shanghai Investor Relations 2025 STAR Market “Hard Technology
Technical Specification for Drug Toxicity Evaluation Pioneer Enterprise in Global Expansion
Management Award for · Investment Value” Award
and Investment •2025 Outstanding Investor Relations Management •Valueonline Based on Organoid Models (T/CIET 1854-2025)
Listed Companies
Award for Listed Companies •
Recognition
•2025 STAR Market “Hard Technology · Investment •China Business Journal, GF Securities
Value” Award
Industry •Top 20 Pharmaceutical CRO Enterprises in China 2025 •YAOZH, Pharmaceutical Development & Innovation
Recognitions • (PDI) Conference Organizing Committee, Zhongguo
• Yaoye Journal
•Top 20 New Drug Preclinical CRO Service Providers in •China Medicine Connect Expo, PHARNEX
China • Innovative R&D Best Medical Technology 2024 Team 2024 Outstanding
Award for Economic Development,
Enterprise par Excellence Breakthrough Award Excellence Award Partner Award
•Industry-Leading CRO Company Award •Pharmcube Huinan Town, Pudong New Area
•CRO Best Enabling Service Provider Award — Preclinical •New Drug Founders Club
CRO •
•Top 20 Enterprises in the 2025 China CRO Outstanding •YAOZH
Brand Ranking •
•Outstanding Enterprise of the Year 2024 •Healthcare Service Committee, Shanghai Modern
Service Industry Federation
Technology and •Innovative R&D Enterprise par Excellence •National Innovation Center par Excellence
Innovation •Best Medical Technology Breakthrough Award •TMTPost
•2024 Innovation Achievement Award for Economic •CPC Huinan Town Committee, Pudong New Area, Toxicology Pioneer Award
Recognition Cooperation Award Partner Award Year 2025 Partner
Development, Huinan Town, Pudong New Area Shanghai
•People’s Government of Huinan Town, Pudong New
Area, Shanghai
Client •Excellent Service Award •Eluciderm Inc
Recognitions •Excellent Partnership Award •RayThera
•Best Partner of the Year 2025 •Gluetacs Therapeutics (Shanghai) Co., Ltd.
•Outstanding Partner •Sungening Biotechnology Co., Ltd..
•Toxicology Pioneer Award •Beijing Continent Pharmaceuticals Co., Ltd.
•2024 Team Excellence Award •Insilico Medicine Top 20 New Drug Preclinical Top 20 Pharmaceutical
Excellent Partnership Excellent Service Outstanding Enterprise
CRO Service Providers in CRO Enterprises in
•2024 Best Partner Award •Shanghai Yishi Pharmaceutical Technology Co., Ltd. Award Award of the Year 2024
China China 2025
• (CSPC)
•2024 Outstanding Partner Award •Hexin Biotech (Changchun) Co., Ltd.
•2024 Best Cooperation Award •MediLink Therapeutics
Group Standard •Primary Drafting Organization of the Group Standard •Standardization Committee of China Association for
Contribution •Technical Specification for Drug Toxicity Evaluation the Promotion of International Economic and
Based on Organoid Models (T/CIET 1854-2025) Technological Cooperation
ESG Recognition •Top 10 ESG Competitiveness among Chinese Listed •Healthcare Executive
Pharmaceutical Companies 2025 • Top 10 ESG Competitiveness
CRO ESG Value Transmission
•ESG Value Transmission Award for Listed Companies •Valueonline Top 20 Enterprises in the 2025 China Industry-Leading among Chinese Listed
Best Enabling Service Provider Award for Listed
CRO Outstanding Brand Ranking CRO Company Award Pharmaceutical Companies
in 2025 Award — Preclinical CRO Companies in 2025
Performance Highlights in 2025
Total Assets 262,207.31 (in RMB 10,000) Investment in R&D 10,441.28 (in RMB 10,000)
Cumulative Number
of Authorized Patents 56 piece
Economic
Operating Revenue 116,306.25 (in RMB 10,000) Social
Performance Performance Social Insurance
Net Assets Attributable Coverage Rate among
to Shareholders 193,422.01(in RMB 10,000) Domestic Employees 100%
General Meetings of
Investment in Shareholders Convened 3 Times
Environmental Protection RMB 14.4466 Million
Non-compliance Events
Board Meeting Convened 9 Times
Concerning Environmental Proportion of Female
Environmental
Performance
Protection 0 Case Governance
Performance
Directors 25%
Compliant Emission Rate of Proportion of
Wastewater, Waste Gas and Independent Directors 37.50%
Solid Waste 100%
Sustainable Development
Governance
Long-term Goals of
Sustainable Development Strategy Sustainable Development Topics
As a professional CRO providing integrated preclinical R&D services to the biopharmaceutical industry, Medicilon
Governance Sustainable
consistently adheres to the principles of sustainable development and integrates them into its corporate strategy Long-term Goal Progress in 2025
Dimension Development Topic SDGs
and daily operations, establishing a structured ESG management strategy. We continue to enhance our
Governance Anti-commercial Bribery The Company continuously During the reporting period,
ESG-related practices by fully incorporating sustainability requirements into our operational management
and Anti-corruption, strengthens its business ethics the Company organized the
processes; regularly analyze and evaluate sustainability-related topics and, in consideration of industry trends, Anti-unfair Competition, management and strictly signing of the Letter of
corporate development objectives and national policies, and the evolving market environment; dynamically review Due Diligence, and prevents commercial bribery Commitment to Anti-Fraud and
and optimize our sustainability roadmap. Communication with and corruption to ensure that Anti-Commercial Bribery and
Stakeholders all operations comply with conducted business ethics
applicable laws, regulations, audits, further improving its
and ethical standards. business ethics governance
Medicilon has defined medium-term development targets across three key dimensions of sustainable framework.
development. In the governance dimension, we place sound governance at the core of our approach and Employee Occupational Health and The Company maintains a During the reporting period,
Management Safety, and Employee’s target of zero major the Company recorded no
continuously improve our governance structure to ensure compliant operations and transparent decision-making.
Rights and Interests responsibility-related major responsibility-related
In the environmental dimension, we promote green development and support environmentally responsible
incidents, including casualties, incidents, including casualties,
pharmaceutical R&D. In the social dimension, we rely on scientific innovation and robust quality management to fires, explosions and fires, explosions or
ensure the safety and reliability of our R&D services, while adhering to a people-oriented philosophy to provide occupational health incidents, occupational health events.
on an annual basis.
employees with a safe and healthy working environment. Guided by the concept of sustainable development, we
strive to achieve long-term, balanced and high-quality growth. To further strengthen the implementation of our
sustainability strategy, effectively respond to increasingly stringent regulatory and investor expectations, and
enhance our sustainability performance, we continuously improve our institutional framework and management Product Value Innovation-Driven 1. The Company continuously 1. During the reporting period,
practices for key ESG topics. By standardizing ESG-related policies and procedures, ESG requirements are fully Development, Data Security improves its quality the Company conducted
and Customer Privacy management system to ongoing internal quality audits
embedded into the Company’s operational and management processes.
Protection, Safety and provide high-quality, safe and and supplier audits to ensure
Quality of Products and reliable services. the robustness and
Services, Supply Chain 2. The Company maintains effectiveness of its quality
Medicilon regularly tracks the progress of key sustainability initiatives. Each year, the ESG governance Security, and Science and annual R&D investment at not management system.
Technology Ethics less than 5% of operating 2. In 2025, the Company’s R&D
management reports the progress of sustainability targets to the Board of Directors to ensure the effective
revenue. investment accounted for 8.98%
implementation of sustainability plans and objectives. 3. The Company maintains of operating revenue.
annual information security all employees completed
training. information security training
during the reporting period.
We’ve established a three-tiered ESG governance framework—comprising the decision-making level,
Governance Sustainable
Dimension Development Topic Long-term Goal Progress in 2025 SDGs management level and execution level—with clearly defined responsibilities at each tier. Through strategic
guidance from the Board, coordinated oversight by the Board Secretary and Securities Office and operational
Ecological Environmental Compliance 1. The Company maintains a 1. During the Reporting Period,
Management, Response to target of zero major no major environmental implementation by business units, we’ve created a cohesive and efficient governance chain that ensures ESG
Protection
Climate Change, Waste environmental pollution accidents occurred in the practices are systematically embedded and effectively managed across the organization.
Disposal, Circular Economy, incidents each year. Company.
Energy Utilization, Pollutant 2. The Company continuously 2. During the reporting period, ESG Management Structure
Emissions, Water Resource improves energy efficiency, the Company completed the
Utilization, and Ecosystem expands the use of renewable solar streetlight retrofit project
and Biodiversity Protection energy and optimizes resource and implemented multiple Decision-making Level Board of Directors
management to actively energy-saving initiatives,
address climate change. including electricity
compliance on an annual practices.
basis. 3. During the Reporting Period, Executive Level ESG Working Group
the Company achieved a 100%
compliance rate in waste
disposal.
Internal Control and Audit Department EHS Department R&D Department ……
Social Equal Treatment of Small 1. The Company continues to 1. During the reporting period,
Harmony and Medium-Sized invest in public welfare the Company donated RMB 5 Administration Department Quality Assurance Department Human Resources Department
Enterprises, Contribution to initiatives. million to the Fudan University
Society, and Rural 2. The Company treats small Education Development
Revitalization and medium-sized enterprises Foundation, Shanghai. Medicilon actively explores mechanisms linking compensation with sustainability. ESG-related indicator system
(SMEs) fairly and does not 2. During the reporting period, and evaluation mechanism are incorporated into performance evaluations, alongside financial metrics, covering
differentiate based on the Company did not have any
areas such as technological R&D, talent development, green manufacturing and supply chain security. By
company size. overdue payments to SMEs that
required public disclosure combining short-term and long-term incentives, the Company reinforces executive accountability and drives the
through the National Enterprise achievement of sustainable development objectives. During the reporting period, ESG performance targets for
Credit Information Publicity
senior management were largely achieved.
System.
Indicator Type Detailed Requirements Assessment Criteria
Sustainable Development Safety Management System
Management System Promote standardized laboratory safety upgrades
and enhance emergency preparedness.
Completion of annual safety system
certification updates;
Environmental Compliance
Qualitative Ensure full-process compliance in hazardous waste Zero environmental compliance
To further advance the Company’s sustainable development, strengthen strategic alignment and enhance our Indicators management and implement low-carbon penalties;
influence in the capital markets, the Board of Directors, as the Company’s highest decision-making body, oversees operations.
the comprehensive planning and supervision of ESG initiatives. Under the Board’s authorization, the Board ESG Strategy Implementation:
Lead ESG-specific training initiatives to raise Coverage Rate of ESG Training: 100%
Secretary is responsible for overall ESG coordination and strategic implementation, while the Securities Office
sustainability awareness across all employees.
manages operational execution and day-to-day ESG affairs.
Indicator Type Detailed Requirements Assessment Criteria
Communications with Stakeholders
Work safety incident rate 0 Accidents
Medicilon fully recognizes the importance of incorporating stakeholder perspectives into the development and
Quantitative
Hazardous waste disposal compliance rate 100% Compliance
advancement of sustainability strategy. We have identified six core stakeholder groups crucial to our operations
Indicators
Employee occupational health examination and maintain regular, multi-channel engagement mechanisms to address their expectations and requirements.
coverage This ensures ongoing dialogue regarding sustainability-related risks and opportunities and enables us to align our
strategy with stakeholder priorities.
We adhere strictly to international standards, including stock exchange regulations and the AA1000 Stakeholder
Special Actions for Engagement Standard, systematically recording, measuring and reviewing all stakeholder interactions. Feedback
from stakeholders is continuously integrated to refine engagement processes, enhancing the effectiveness,
Sustainable Development responsiveness and timeliness of communication, while embedding key stakeholder concerns into operational and
strategic decision-making.
In 2025, Medicilon continued to deepen the ESG institutional and procedural framework, undertaking multiple
initiatives including indicator optimization, ESG rating benchmarking, climate change response system
Category of
enhancement and specialized ESG training for personnel. These actions further strengthened ESG governance Stakeholders Topics of Concern Response Mode
capabilities and promoted the standardization of ESG management practices. Environmental Compliance Management Cooperate proactively with regulatory inspections
Response to Climate Change Promote green operations in alignment with China’s
Benchmarking industry-leading CXO cases, the Company enhanced quantitative carbon peaking and carbon neutrality policy
Indicator
disclosure and management practices across sustainability governance, environmental Government and
Optimization Pollutant Emissions Disclose pollutant emissions and participate in
Regulatory Agencies
management and climate resilience initiatives. government monitoring programs
Data Security and Customer Privacy Maintain and update data security management systems
Drawing on best practices from exchange disclosures, the Company continued to refine Protection to ensure regulatory compliance
Resilience
Development
institutional systems and information disclosure processes to enhance organizational
Anti-Commercial Bribery and Establish robust internal anti-bribery and anti-corruption
resilience. Anti-Corruption controls
Innovation-driven Development Strengthen investment in innovation and expand
collaborative industry partnerships
Case
Shareholders and Supply Chain Security Conduct comprehensive supply chain risk assessments
ESG-focused Training Investors and implement mitigation measures
Communications with Stakeholders Hold regular investor communication sessions to
On January 9, 2026, Medicilon conducted ESG-focused training for functional department leaders.
address stakeholder concerns
External experts provided comprehensive insights into the latest ESG regulations, reporting
Data Security and Customer Privacy Implement IT disaster recovery and business continuity
frameworks and compliance requirements, emphasizing their potential impact on operational and
Protection plans to safeguard data integrity
disclosure practices. This training strengthened management’s understanding of the ESG system,
Customers Safety and Quality of Products and Enhance service quality through proactive client
clarified the strategic direction and compliance requirements of the Company’s ESG initiatives and
Services engagement
promoted the standardization of ESG management and information disclosure across the
Science and Technology Ethics Comply with scientific and technological ethics
organization, laying a solid foundation for improving ESG governance capacities.
standards
Category of Double Materiality Assessment Process
Stakeholders Topics of Concern Response Mode
Supply Chain Security Establish supplier onboarding, assessment and lifecycle
management processes, with periodic supply chain risk audits Identification of Topics
We identified 22 sustainability topics of high relevance or impact to both the organization and its
Suppliers and Equal Treatment of Small and Ensure equitable treatment of SMEs, providing fair
Partners Medium-Sized Enterprises opportunities for collaboration stakeholders, based on global sustainability trends, applicable laws and regulations, macroeconomic
Due Diligence Implement supplier lifecycle management
policies, the characteristics of the new drug and CXO sectors, and the Company’s strategic and
operational context.
Employee Benefits Maintain comprehensive employee compensation and
benefits programs and conduct regular employee
satisfaction surveys Analysis of Impact Materiality
Cultivation and Retention of
These topics were analyzed considering positive and negative impacts as well as actual and potential
Provide continuous professional development, career
Employees
R&D Talents advancement opportunities, and publish talent development effects. The assessment incorporated stakeholder feedback to evaluate the scope and significance of
plans each impact.
Democratic Management Establish an employee congress, employee discussion forums
and departmental forums to capture employee feedback
Contribution to Society Organize charitable donations Analysis of Financial Materiality
The Company establishes annual action plans and defines long-term strategic goals. Using a time
Communities and Waste Disposal Disclose waste disposal processes and service providers
Media horizon framework—short-term (0–1 year), medium-term (1–5 years), and long-term (5+ years)1—
Communications with Hold media briefings
Stakeholders potential financial impacts associated with the risks and opportunities of each topic are identified.
Independent industry experts are engaged to provide an integrated assessment of financial
materiality.
Analysis of Material Topics Priority Ranking of Topics
Management reviews and deliberates on the outcomes of both impact and financial materiality
assessments. The Board of Directors then confirms the priority ranking of each sustainability topic,
In 2025, Medicilon conducted a materiality assessment, evaluating both financial and impact materiality for
ensuring alignment with corporate strategy and stakeholder expectations.
sustainability topics. Working with an independent third-party expert, we conducted stakeholder surveys to
identify and prioritize topics, issuing 151 questionnaires and receiving 151 valid responses. Integrating internal 1The impact duration for topics with financial materiality in the report is based on this time frame.
management insights with external expert guidance, ten topics were identified as financially material:
innovation-driven development, employees’ rights and interests, occupational health and safety, response to
climate change, environmental compliance management, anti-commercial bribery and anti-corruption, supply
chain security, safety and quality of products and services, data security and customer privacy protection and
waste disposal.
Definition of Specific Risks Key Opportunities
Topics with
Impacts on the Impact Impact Impacting the Related to the Impact
Financial
Company's Finance Type Scope Company's Finance Company’s Duration
Materiality
and Business and Business Business
Materiality of Economic, Social and Environmental Impacts
Environmental
Compliance Management Supply Supply of research Potential Upstream Supply chain Establish a Short term (1 year),
Innovation-driven
Development Data Security and Chain reagents and negative value chain disruptions may diversified medium term (1-5
Science and Technology Ethics Customer Privacy
Protection Security consumables affects /positive and the result in project supplier system years)
Energy Utilization
Safety and Quality of
Supply Chain Security project delivery impact Company’s delays and to stabilize
Products and Services
Communications Anti-Commercial Bribery and Anti-Corruption
with Stakeholders
cycles and own contractual liabilities; procurement
Employees’ Rights and Interests
Circular Economy procurement costs, operations increases in raw prices, ensure
Anti-Unfair Competition
Pollutant Emissions and influences material prices may timely project
Water Resource
Utilization Due Diligence inventory efficiency. raise procurement delivery and
Response to Climate Change
costs and weaken strengthen
Waste Disposal
Contribution to Society customer loyalty.
customer
Occupational Health and Safety confidence.
Ecosystem and Biodiversity Protection
Safety and It determines Potential The Failure to meet Maintain a strong Short term (within
Quality of customer satisfaction negative Company,and service quality reputation for 1 year), Medium
Rural Revitalization Products and repeat business, /positive the standards may result high quality to term (1–5 years),
and affects brand impact downstream in customer improve repeat Long term (more
Equal Treatment of Small and Medium-Sized Enterprises Services reputation, and is of its value complaints, contract order rates, than 5 years)
associated with chain termination, attract new
compensation costs compensation customers, and
Financial Materiality and rework expenses payments, and build competitive
arising from quality reputational barriers within
Topics with Impact Materiality Topics with both Financial Materiality and Impact Materiality incidents. damage. the industry.
Topics with General Materiality Topics with Financial Materiality
Data It affects customer Potential The Data breaches may Establish a Short term (1 year),
Security trust in R&D data, negative Company,and lead to customer robust data medium term (1-5
For topics with financial materiality, the Company conducts analysis and disclosure in accordance with the
and influences impact the loss, legal security system years)
Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 14 — Sustainability Report (Trial), Customer willingness to downstream proceedings, to enable the
focusing on the four core pillars of Governance, Strategy, Impact, Risk and Opportunity Management, and Privacy cooperate, and of its value regulatory penalties, Company to
Protection determines the level chain and increased undertake highly
Indicators and Targets, as well as other applicable regulatory requirements.
of data security remediation costs. sensitive projects
investment and and enhance
Analysis of the Impacts, Risks and Opportunities of Topics with Financial Materiality compliance risk. customer
confidence in
Definition of Specific Risks Key Opportunities
Topics with data protection.
Impacts on the Impact Impact Impacting the Related to the Impact
Financial
Company's Finance Type Scope Company's Finance Company’s Duration
Materiality
and Business and Business Business Waste It affects Potential The Company Improper handling of Implement Short term (1 year),
Disposal environmental negative waste may result in environmentally medium term (1-5
Innovation It determines the Potential The Insufficient return Establish Medium term (1–5
compliance /positive environmental friendly years)
-driven Company’s technical positive Company,and on R&D investment differentiated years); Long term
performance, impact penalties, treatment
Development competitiveness in impact the may weaken technological (more than 5 years)
determines community solutions to
preclinical research downstream technological barriers can
treatment costs and complaints and reduce long-term
services, affecting of its value advantages, leading attract high-end
environmental increased costs, strengthen
project win rates and chain to customer pharmaceutical
penalty risks, and is rectification and the Company’s
service pricing, and attrition and slower clients and
related to the compensation costs. green image, and
directly influencing revenue growth. enhance the
Company’s green meet customers’
revenue growth and Company’s
corporate image. environmental
profit margins. premium service
requirements.
capability.
Definition of Specific Risks Key Opportunities Definition of Specific Risks Key Opportunities
Topics with Topics with
Impacts on the Impact Impact Impacting the Related to the Impact Impacts on the Impact Impact Impacting the Related to the Impact
Financial Financial
Company's Finance Type Scope Company's Finance Company’s Duration Company's Finance Type Scope Company's Finance Company’s Duration
Materiality Materiality
and Business and Business Business and Business and Business Business
Employees’ It affects overall Potential The Company Low employee Improve Short term (1 year), Occupational Workplace accidents Potential The Company Safety incidents may Achieving a Short term (1 year),
Rights and operational efficiency negative satisfaction may lead employee welfare medium term (1-5 Health and or occupational negative lead to injury zero-incident medium term (1-5
Interests and workforce /positive to high turnover, systems to years) Safety diseases may result /positive compensation, record can years)
stability, and is impact increased enhance in compensation impact medical expenses enhance the
associated with replacement costs retention, costs, work stoppage and fines related to Company’s
compensation, and delays in project increase losses and increased production safety employer brand,
benefits and execution. productivity per investment in health violations. attract
employee-related employee, and and safety high-caliber
costs. reduce operating management, talent, reduce
costs. thereby affecting insurance costs
operational and strengthen
Environmental Violation of Potential The Company Regulatory penalties Compliance with Short term (1 year),
efficiency. customer
Compliance applicable laws, negative or rectification environmental medium term (1-5
confidence.
Management regulations or impact notices may increase and regulatory years)
standards may result operating costs and requirements can
in fines, corrective cause production or enhance brand Medicilon recognizes that certain sustainability topics are not financially or impact material for the Company. The
orders or suspension project interruptions. value and enable reasons are as follows:
of operations. the Company to
obtain Dimension Topics Reason
government
subsidies or Environmental Ecosystem and Biodiversity The Company’s operations are primarily conducted in standardized
preferential Protection laboratories located within urban industrial parks. These activities do not
policy support. involve resource extraction, land use or other practices that could adversely
affect biodiversity or ecosystems.
Anti Commercial bribery Potential The Negative publicity Strengthen Long term (over 5
-Commercial may lead to legal negative Company,and arising from integrity and years)
Bribery and sanctions, impact the improper conduct compliance Social Contribution to Society Operating in a technology-intensive service sector, the Company relies on
Anti reputational damage downstream may result in measures to Rural Revitalization highly skilled personnel and precision equipment rather than rural labor or
-Corruption and loss of business of its value termination of improve Equal Treatment of Small and locally specific resources. Consequently, its business has limited connection
opportunities. chain partnerships, decline governance Medium-Sized Enterprises to rural revitalization initiatives, regional employment generation, or local
in share price and efficiency, reduce investment. While the equal treatment of small and medium-sized
loss of key hidden or enterprises (SMEs) is relevant in certain supply chain activities, the
personnel. non-compliant Company’s core CRO suppliers consist primarily of international reagent
costs, and manufacturers and standardized laboratory animal providers, with SMEs
enhance true representing a minor proportion.
profitability.
Governance Due Diligence The Company has developed a robust sustainability governance framework,
Response to Intensifying climate Potential The Extreme weather Develop Short term (1 year),
and major risks are effectively managed through existing systems.
Climate change may affect negative Company,and events may cause low-carbon medium term (1-5
Change the Company’s /positive the supply chain pharmaceutical years)
production impact downstream disruptions and products or
operations and of its value economic losses, services to create
employee safety. chain affecting the new market
Company’s cost opportunities,
structure and asset while increasing
value. the use of clean
energy to reduce
long-term energy
costs.
Governance Structure
ESG Material Topics Covered
Due Diligence
Anti-Commercial Bribery and Anti-Corruption
Anti-Unfair Competition
Communications with Stakeholders
SDGs
Board of Directors
Governance The Board of Directors of the Company, accountable to the General Meeting of Shareholders, reviews major
matters in the business activities of the Company, and makes decisions or submits them to the General Meeting of
Shareholders for approval. In strict compliance with the provisions and requirements of the Company Law of the
Governance Structure
People’s Republic of China, the Articles of Association and the Rules of Procedure of the Board of Directors, the
Medicilon strictly complies with applicable laws and regulations, including the Company Law of the People’s Company clarifies the scope of authority of the Board of Directors, improves and standardizes the operation of the
Republic of China (the “Company Law”), the Securities Law of the People’s Republic of China (the “Securities Law”), Board of Directors in aspects such as the procedures of convening meetings and reviewing proposals voting, as
the Code of Corporate Governance for Listed Companies, and the Rules Governing the Listing of Stocks on the well as voting modes and resolution content, thereby fully utilizing the decision-making role of the Board of
START Market of Shanghai Stock Exchange. Based on the Company’s operational context and regulatory Directors.
requirements, we’ve established internal governance instruments such as the Articles of Association, Rules of
Procedure for Shareholders’ Meetings, Rules of Procedure for Board Meetings and the Work Rules of Independent Key Performance
Directors. These instruments ensure that the governance structure and operational processes are standardized, During the Reporting Period,
decision-making is scientific, transparent and compliant, and the legitimate rights of shareholders, employees and the Company convened a total of 9 meetings of the Board of Directors,
other stakeholders are safeguarded.
at which 54 proposals were reviewed and approved.
General Meeting of Shareholders Strategy Committee
Specialized Committees under the Board of Directors
Nomination Committee
Board of Directors The Board of Directors consists of four specialized committees: the Strategy Committee, the Nomination
Audit Committee Committee, the Audit Committee, and the Remuneration and Appraisal Committee. Each committee regularly
reports its work progress to the Board of Directors, providing support for the Board's informed decision-making
Management Level Remuneration and Appraisal Committee and corporate governance.
Key Performance
Governance Structure
During the reporting period,
General Meeting of Shareholders
the Company held 3 Strategy Committee meetings, 2 Nomination Committee meetings,
Medicilon strictly follows relevant laws and regulations, such as the Rules for Shareholders’ Meetings of Listed
Companies. Shareholder meetings are conducted in accordance with applicable regulations, adopting a dual-track 5 Audit Committee meetings and 3 Remuneration and Appraisal Committee meetings.
voting mechanism combining in-person and electronic voting. This ensures resolutions are made in a fair and
transparent manner, fully respecting the rights of all shareholders, including minority shareholders. During the
reporting period, no incidents of unauthorized interference in business decision-making were recorded. Board Diversity and Composition
Board composition is determined with reference to the Company’s future strategic needs and diversity criteria,
Key Performance
including professional background, gender balance and age structure. This approach ensures the board’s capacity
During the Reporting Period,
for informed and effective decision-making.
the Company held 3 general meetings of shareholders,
at which 24 proposals were reviewed and approved.
Management of Remuneration for Directors and other Officers
Number of Directors Number of Directors Number of Directors Number of Directors
We continuously refine our compensation management system. In alignment with the Rules of Procedure for the
by Gender by Type by Age by Education
remuneration for directors and senior executives is determined by the Shareholders’ Meeting and the Board based
Male Independent Directors Under 30 Years Old Doctoral Degree
on performance outcomes for the fiscal year.
Female Non-Independent Directors 31-40 Years Old Master’s Degree
Investor Relations Management and
Independence of Board of Directors Shareholders’ Rights and Interests
Medicilon emphasizes the critical role of independent directors in corporate governance. Through institutionalized
processes, we leverage their expertise to enhance board oversight and decision-making quality. The Work Rules of
Independent Directors ensures that three qualified independent directors, accounting for over one-third of the Information Disclosure
board, are appointed in compliance with regulatory requirements.
In accordance with the Administrative Measures on Information Disclosure by Listed Companies and other
applicable regulations, Medicilon has established and implemented the Information Disclosure Management
All independent directors participate in every board meeting, either in person or remotely, and serve on four board
System to safeguard the legitimate rights and interests of investors. During the Reporting Period, the Company
committees. Except for the Strategy Committee, independent directors chair the remaining committees, with the
was not subject to any penalties imposed by any regulators due to non-compliance with any information
Audit Committee chair possessing deep accounting expertise. Regularly organized dedicated independent
disclosure regulations.
director meetings provide a platform to review company operations, consider industry trends, deliberate on
strategic matters and offer professional recommendations, thereby supporting informed and effective corporate
decision-making. Key Performance
During the Reporting Period,
Key Performance we issued 136 public announcements and did not incur any penalties for non-compliance in information disclosure.
During the Reporting Period,
the Company convened 2 special meetings of independent directors,
Capital Market Communication and Public Opinion Management
at which 3 proposals were reviewed and approved.
Medicilon maintains a proactive and structured approach to capital market communications. We’ve established
and implemented the Public Opinion Management Workflow, covering pre-event monitoring, in-event response
and post-event evaluation, ensuring timely identification and management of market developments. Stock price
fluctuations and anomalous movements are analyzed in real time, with findings reported promptly to senior
management.
Investor Relations Management
Our Investor Relations Management System ensures equitable treatment of all investors and prioritizes protection
Risk Management and Internal Control
of minority shareholder rights.
The Board Secretary serves as the primary officer responsible for investor relations, supported by the Securities
Investment Decision Risk Management
Office, which coordinates investor visits, inquiries, shareholder engagement and the dissemination of publicly
disclosed information. Communication channels include earnings briefings or investor conferences, general In response to an increasingly complex and dynamic macroeconomic and trade environment, Medicilon has
shareholder meetings, creating platforms for the Company to communicate with investors over operating results, aligned its investment decision-making processes with national policies, regulatory requirements and the
significant matters and other information. recommendations of the “15th Five-Year Plan”. The Measures for Investment Decision Committee Management
provide a structured framework to continuously enhance the Company’s investment risk management capabilities,
improve risk prevention and mitigation effectiveness and strengthen internal controls and oversight mechanisms.
Key Performance
This ensures the systematic application of investment decision risk management across all business segments and
During the reporting period, global operations, supporting the Company’s sustainable and resilient growth.
In addition, we maintained
routine interactions and
we hosted3 earnings briefings, received 68 institutional research visits,
and engaged with over 460 investors.
engagements with investors
through a dedicated investor The response rate to investor questions submitted via SSE e-Interaction Internal Control
hotline, fax, email and SSE portal was 100% .
Anchored in compliance, Medicilon has established and continuously refined supporting governance systems,
e-Interaction portal, among
including the Internal Audit Management System, Internal Audit Implementation Rules, and Internal Audit
others.
Procedures in strict accordance with the Audit Law of the People’s Republic of China, the Basic Standards for
Enterprise Internal Control and related regulatory guidance. These institutionalized and standardized mechanisms
Return to Shareholders ensure that risk monitoring and internal audit activities operate effectively, efficiently and in line with best practice
standards.
Medicilon consistently upholds its responsibility to all shareholders and places high priority on shareholder returns.
For three consecutive years, the Company has conducted share repurchases through centralized bidding. In
An Internal Control and Audit Department serves as the Company’s independent audit body. Reporting directly to
addition, the Company has established scientifically designed procedures and adjustment mechanisms for profit
the Audit Committee, this department conducts audits across key operational areas, including financial audits,
distribution decisions to ensure the process is transparent and open, fully protecting the information rights and
internal control assessments, project budget and final account audits, economic responsibility audits, handover
participation of minority shareholders and safeguarding their legitimate interests.
and exit audits, and anti-corruption audits. Based on operational requirements, the Company has developed
detailed procedural standards for internal audit activities to ensure independence, objectivity and effectiveness.
Standardization of Related-Party Transactions
During the reporting period, Medicilon continuously optimized and standardized the Related-Party Transaction
Decision-Making System to regulate related-party transactions, detailing transaction approval, authority, review
and abstention procedures, examination and execution. This framework ensures that all related-party transactions
are conducted fairly, transparently and in accordance with governance standards, safeguarding the interests of
the Company and all shareholders. During the reporting period, no violations or incidents occurred that could
negatively impact the Company or its shareholders.
Asset Management: Inventory verification and fixed asset
Audit Project Initiation
Preparation for Audit
and Authorization management; audited at least once annually.
Engineering Projects and Contract Management: Key project
Medium-Frequency Audits milestones, including initiation, budget execution and completion,
Annual
Audit Report Preliminary Investigation
audited annually.
Information Systems and Data Security: Assessed annually in
Internal Control and
relation to system upgrades and potential data breach risks.
Audit Workflow
Audit Findings and Analytical Procedure and
Recommendations Compliance Test
Human Resources and Compliance Systems: Recruitment,
Low-Frequency Audits
Every 1–3 Years performance appraisal and anti-fraud mechanisms; audited at least
Substantive Test and once every two years.
Detailed Review
Key Performance
During the reporting period,
Internal Audit
all internal audit findings were addressed through corrective actions and closure procedures.
Medicilon develops an annual audit plan that coordinates resources to ensure audits are systematic,
forward-looking and outcome-driven. During the reporting period, the Company conducted targeted audits in
We completed 2 internal audit projects, identified 7 potential risks,
critical areas, including full lifecycle management of technical service contracts and implementation of outsourced
and issued 9 targeted recommendations to strengthen governance, compliance and operational resilience.
service policies. Audit scopes and objectives were clearly defined, potential risks were identified and actionable
recommendations were provided, supporting corrective measures, operational efficiency and compliance.
Risk Control and Management
We conduct a comprehensive annual risk identification process, evaluating both internal and external factors
Internal Audit Frequency and Scope
affecting its operations. Internal management risks include strategic, operational, financial, market and legal
compliance risks. External risks encompass macroeconomic fluctuations, environmental impacts, changes in
Financial Accounting and Fund Management: Revenue recognition,
national laws and regulations and shifts in industry-specific policies.
expense reimbursement and cash flow management; conducted
quarterly or semi-annually in full.
The global pharmaceutical CXO sector is highly sensitive to policy changes driven by geopolitical developments.
Procurement and Supply Chain: Supplier onboarding, contract Legislative initiatives such as the U.S. Biosecure Act draft, the EU Critical Raw Materials Act (CRMA) and
High-Frequency Audits
execution and payment processes; audited semi-annually, or “de-risking” policies in certain countries present potential constraints to the overseas operations of Chinese CRO
Quarterly to Semi-Annual
quarterly for bulk procurement or frequent supplier changes. companies.
Sales and Accounts Receivable: Compliance with credit policies and
To enhance resilience and mitigate these risks, we’ve implemented the following measures:
revenue recognition; audited semi-annually, with increased
frequency for high variability or credit risk.
Strengthening Compliance Systems Optimizing Global Footprint Governance
to Address Regulatory and Policy Changes to Reduce Regional Dependence
To reinforce anti-corruption measures, Medicilon has developed the Anti-Fraud, Anti-Bribery and Whistleblowing
Compliance management serves as a cornerstone of The Company follows a dual-track strategy of
Management System and the Measures for the Administration of Anti-Fraud, Anti-Bribery and Whistleblowing. A
the Company’s global operations. We continuously “deepening mature markets + expanding into diverse
clear hierarchical organizational structure is in place, which defines responsibilities at each level, with the Board
strengthen our internal control framework and risk regions”. We continue to consolidate our presence in
authorizing the Audit Committee to oversee anti-fraud initiatives. These measures ensure effective enforcement of
early-warning mechanisms, conducting regular established markets across Europe and North America
policies, clearly defined sanctions and the promotion of an ethical corporate culture.
internal audits and risk assessments to ensure robust while expanding our global service network. In China,
and compliant operations. Internationally, the Company operations cover core regions such as the Yangtze River
Board of Directors
actively pursues multi-system certifications and Delta and Pearl River Delta, with additional outreach
Decision-making & Supervisory Level
successfully passed on-site inspections by the U.S. FDA nationwide. Overseas, service teams and partnerships
Audit Committee
and China's NMPA for consecutive years, and obtained are established across multiple countries in the
OECD GLP certification. Americas, Europe and Asia to reduce dependence on
Management Level Senior Management
any single market.
Enhancing Data Governance and Strengthening Cross-Border Operations
Functional Departments Division President
Intellectual Property Protection to Safeguard Core Assets and Stabilizing Key Talent
Executive Level
The Company prioritizes data governance to mitigate For cross-border operations, we strengthen internal Internal Control and Audit Department, Legal Affairs Department,
cross-border transfer risks, upgrading information controls within our overseas subsidiaries to ensure Finance Department, Human Resources Department
systems to ensure secure and compliant global data timely operational reporting and improved
Corporate Anti-commercial Bribery and Anti-Corruption Governance Structure
handling. In terms of intellectual property, we’ve management efficiency. Additionally, we continuously
implemented comprehensive end-to-end IP evaluate the legal and commercial environments of Strategy
management mechanisms. Proactive IP strategy, risk overseas markets, continuously adapting management
assessments and legal safeguards in overseas markets models to support global growth. Relying on enhanced Description Likelihood Duration Value Chain
Risk/ Impact Priority Financial
of Risk of of Links Countermeasures
are applied to prevent potential infringement disputes. market development capabilities and culturally aligned Opportunity
/Opportunity Occurrence
Materiality
Impact Impacted
Ranking Impact
compensation and performance incentives, we
Corruption Any acts of corruption or Medium High Short to Operations High Increased Conduct regular
endeavor to foster a resilient workforce. Risk fraud by employees or medium operating anti-corruption training
management could result term costs and programs to strengthen
in litigation, regulatory reputational employees’ ethical
fines, contract loss awareness, and
Anti-Commercial Bribery
terminations, and establish a
reputational damage, whistleblowing policy,
materially affecting the empowering all
and Anti-Corruption Company’s financial
performance and
employees to participate
in oversight and
long-term sustainability. reporting.
Anti-commercial bribery and anti-corruption practices are fundamental to sustainable growth in the
Opportunities With robust ethical High Medium Long Operations, High Reduction in Maintain and optimize
pharmaceutical industry. Medicilon strictly complies with the Anti-Unfair Competition Law of the People’s Republic standards and term downstream operating the anti-fraud system
anti-corruption systems, cost and and mechanism to
of China and the Guidelines for Pharmaceutical Companies to Prevent Commercial Bribery Risks, establishing a
the Company can increase in ensure that corruption
comprehensive internal compliance framework supported by ongoing employee training and supervision. During continuously build brand operating risks remain controlled
equity and reinforce client income over the long term.
the Reporting Period, no incidents of commercial bribery, embezzlement, corruption or other violations occurred
loyalty.
in the Company.
Case
Impact, Risk, and Opportunity Management
Training on the Measures for the Administration of Anti-Fraud, Anti-Bribery and Whistleblowing
Medicilon has established and effectively implements anti-fraud procedures and controls, including risk
assessments and preventive controls. The Internal Control and Audit Department regularly evaluates internal As part of the 2025 onboarding program, Medicilon
corruption risks. All employees are required to sign the Letter of Commitment to Anti-Fraud and Anti-Commercial positioned anti-fraud culture as a foundational element of
Bribery, reinforcing awareness and accountability. employee development. It delivered training sessions on the
Measures for the Administration of Anti-Fraud, Anti-Bribery
and Whistleblowing, which defined fraudulent behaviors,
Supervision and Audit of Anti-Commercial Bribery and Anti-Corruption whistleblowing procedures, rewards and sanctions,
establishing a “compliance-from-day-one” mindset to
The Internal Control and Audit Department, reporting to the Board, oversees corporate ethics
ensure that integrity awareness permeates the workforce.
standards and monitors compliance continuously, assessing the integrity and effectiveness of risk
management and internal control systems across all business units.
It also drives employee training, whistleblowing and supervision, integrating ethical oversight into
Integrity Management of Business Partners
financial audits, supply chain management and compliance evaluations. Regular analysis of
employee reimbursements and supplier payments is conducted to detect and prevent fraudulent Medicilon conducts comprehensive due diligence during supplier onboarding, verifying
activity. qualifications through official credit information systems and bribery-related criminal record
databases. Suppliers are required to complete an Anti-Corruption Questionnaire and to sign the
Integrity Initiative, Declaration of Integrity, and the Supplier Code of Conduct which explicitly
incorporates anti-commercial bribery and anti-corruption clauses, thereby prohibiting any form of
Training on Anti-Commercial Bribery and Anti-Corruption corrupt behavior. Throughout the partnership, the Company systematically monitors and audits
suppliers’ compliance performance to ensure a long-term, integrity-driven supply chain with
Medicilon institutionalizes anti-corruption culture across all organizational levels, including Board
controllable risks.
members, management, employees and suppliers. This promotes alignment between ethical
culture, corporate governance and individual responsibilities, embedding integrity as an intrinsic
part of organizational operations.
Whistleblowing and Protection of Whistleblowers
Medicilon encourages all employees and external whistleblowers to report any acts of commercial
Key Performance bribery or corruption. Reporting channels have been established and disclosed publicly. The
Internal Audit Department is responsible for receiving and investigating such reports, implementing
During the reporting period,
tiered response procedures and recusal protocols depending on the severity of the case, ensuring
the Company conducted 20 in-person anti-commercial bribery and anti-corruption training sessions, a fair and impartial investigation process. Verified reports result in substantial cash rewards for
covering all new hires in 2025; and online training, with 1,217 participants completing a total of whistleblowers, depending on the amount of losses recovered. We strictly prohibit any unlawful
discrimination, retaliation or hostile actions against complainants or employees involved in
investigations, thereby safeguarding whistleblower rights.
Anti-unfair Competition
Whistleblowing Email Yijian@medicilon.com.cn
Whistleblowing Hotline 021-58591500-8149 and Anti-Monopoly
Medicilon has formulated the Measures for Unfair Competition and Anti-Monopoly Management in strict
Metrics and Targets
accordance with the Anti-Unfair Competition Law of the People’s Republic of China and the Anti-Monopoly
We maintain a zero-tolerance stance on corruption, establishing quantifiable, verifiable and traceable anti-bribery Law of the People’s Republic of China. The Internal Audit Department is responsible for supervising and
objectives, which are regularly reviewed and dynamically adjusted to ensure that anti-corruption management managing unfair competition behavior. Through regular training and the establishment of whistleblowing
evolves from a qualitative commitment to measurable, trackable and accountable governance practices. policies, the Company ensures that all market operations are conducted in full compliance with legal
requirements, effectively safeguarding the Company’s brand reputation and promoting fair market
competition. During the Reporting Period, no incidents of unfair competition occurred in the Company.
Targets Achievements in 2025
Online anti-corruption training is delivered to all employees. Achieved
Medicilon Content Publication Review Process
Initial Secondary Final
Review Review Review
Key Performance
Scientific Research
Department Review
During the reporting period,
Securities Affairs Client Review
Supervisor Review
Legal Affairs
Executive Review
business ethics audits achieved 100% coverage, with 0 risk points identified; Department Review
Case
《Training on the Measures for Unfair Competition and Anti-Monopoly Management
To strengthen anti-unfair competition and anti-monopoly awareness among new employees,
Medicilon conducted training on the Measures for Unfair Competition and Anti-Monopoly
Management as part of the 2025 onboarding program. Training content was closely aligned with the
Company’s operational realities, providing detailed guidance on institutional compliance and
effectively embedding a culture of compliance across the organization.
Innovation-Driven
Development and
Data Security
ESG Material Topics Covered in this Chapter
Innovation-driven Development
Science and Technology Ethics
Data Security and Customer Privacy Protection
SDGs Responded in this Chapter
Medicilon Technological Innovation Governance System
Innovation-Driven Development
Decision & Oversight Layer Board of Directors
Managerial Level Executives
Governance Execution Level Execution Group
Medicilon places the highest priority on scientific and technological innovation, establishing and implementing
systems such as the Internal Control System – Independent R&D to define clear objectives for proprietary research Functional Departments Subsidiaries
and development. The Company has built a three-tier governance structure for scientific and technological
innovation—comprising the Decision & Oversight Layer, Management Layer and Execution Layer—coordinating R&D Department
innovation strategy, resource allocation and project approvals. We’ve also developed three major business
divisions—Drug Discovery, CMC Development and Preclinical Research—alongside the Boston Innovation Center
in the United States, forming a distributed research architecture that enhances the resilience of the Company’s
scientific activities.
Medicilon continually focuses on the forefront of drug discovery, aligning with client innovation needs and
investing heavily in critical core technologies. We’ve built and refined the one-stop preclinical research platform
covering both chemical drugs and biologicals. In 2025, we further consolidated the one-stop preclinical research Internship Base for the Department Pudong New Area Enterprise NMPA GLP Laboratory for Drug
of Chemistry, East China Normal Postdoctoral Workstation Safety Evaluation
platforms for AOCs, ADCs and RNAi. In terms of technological innovation, Medicilon is strategically advancing an University, Shanghai
AI-enabled drug discovery platform, integrating artificial intelligence, big data and over two decades of R&D
experience. This platform encompasses core capabilities including protein structure prediction, target binding site
analysis, molecular design and database construction. Additionally, the Company actively develops cutting-edge
technology platforms, including organoid models, PROTACs, cell and gene therapies, ocular animal models and
AI-assisted molecular probe design, continually strengthening technological barriers and service competitiveness.
Leveraging our one-stop preclinical research platform, the Company collaborates closely with multiple AI-driven High-Tech Enterprise Certificate of High-Tech Enterprise Certificate of High-Tech Enterprise Certificate of
Medicilon Puson Medicilon Purui Medicilon Puya
new drug companies, successfully advanced several AI-driven new drugs of clients into the clinical stage. By the
end of the reporting period, Medicilon and several subsidiaries had obtained High-Tech Enterprise Certification.
Medicilon and Medicilon Puya were recognized as Municipal Enterprise Technology Centers. Medicilon, Medicilon
Puson and Medicilon Puya were recognized as “Specialized and Sophisticated Enterprise that Produces Novel and
Unique Products” (SSNI) enterprises.
High-Tech Enterprise Certificate of High-Tech Enterprise Certificates of
Medicilon Medicilon Puhui
Strategy Impact, Risk, and Opportunity Management
Guided by our R&D-driven innovation strategy, we conduct comprehensive, scientific assessments of Medicilon has established a systematic impact, risk and opportunity management framework covering the entire
innovation-related risks and opportunities, accurately evaluating their impact on technological development, proprietary R&D process, encompassing identification, assessment and mitigation, to achieve closed-loop control
product portfolio and market growth, and formulate corresponding mitigation and opportunity-capturing over the full R&D lifecycle. In the area of risk and opportunity management, we’ve implemented a multidimensional
Priority
strategies. Ranking identification mechanism, systematically tracking cutting-edge developments in new drug R&D and thoroughly
analyzing client innovation needs to accurately identify potential risks and opportunities, including technological
Type of Description Likelihood
Risk/Opport of Risk of Extent of Impact Impact on Financial challenges in R&D and industry-wide technology iterations. We further evaluate and classify the likelihood and
unity /Opportunity Occurrence Impact Duration Value Chain Impact Countermeasures
potential impact of these risks and opportunities, strengthen targeted mitigation measures, seize development
Rapid technological Advance frontier research and
opportunities, and continuously increase research efforts on key drug development technologies, thereby
evolution and high outcomes translation through
Risk uncertainty may Reduction in independent R&D and establishing a robust technical barrier against risks.
Long Operations,
Technology result in misjudged Low High operating industry-academia
term downstream
Risks R&D directions or revenue collaboration to maintain Metrics and Targets
outdated technological leadership in the
technologies. industry. Medicilon closely monitors global trends in drug discovery, aligning with core client innovation needs,
Continuously increase R&D systematically advancing and continuously improving its innovation technology platforms. The Company also
Market competition
Decreased investment, strengthen
from rivals launching increases investment in proprietary R&D resources, enhances technical service capabilities and strengthens core
Risk Medium market technological barriers and
cost-effective
Operations service differentiation, and R&D service competence and market competitiveness, leveraging specialized innovation technology to drive
Market Low Medium to long share and
products may erode
Risk term operating enhance customer loyalty and progress in the biopharmaceutical industry.
market share.
revenue order stability via long-term
strategic partnerships, The Company continues to consolidate and enhance integrated preclinical research platforms for
co-development and joint R&D Technology ADC, RNAi drugs and other biopharmaceuticals. This integrated approach extends from chemical
technology initiatives. Platform
drugs to biologics, further enhancing drug discovery and CMC development capabilities for
Emerging Strengthen Development
technologies such as industry-academia-research biopharmaceuticals.
AI-enabled drug collaboration and independent
discovery, organoid innovation, continuously
The Company further develops AI-driven drug discovery platforms, organoid model development,
models and human Short, iterate technological routes Proprietary
cell models are medium Reduction in and service models, converting Innovation and PROTAC drug R&D platforms, and cell and gene therapy platforms, addressing key technological
Opportunities R&D
rapidly penetrating High High and Operations operating technological opportunities frontiers.
Technological
the market, offering long costs into core competencies and
Opportunities
significant term market share, enhancing R&D
improvements in R&D service capability and
efficiency, cost
Targets Achievements in 2025
competitive advantage to
reduction and safety consolidate industry
In 2025, R&D investment accounted for
evaluation. leadership. The Company maintains an annual R&D
Product reliability and Medicilon continues to investment exceeding 5% of its operating revenue
achieving the target
safety are crucial to strengthen its talent pool,
building customer Short, increase R&D investment, and
Opportunities
trust and loyalty, medium Increase in advance its capital operations
Market Upstream,
reducing attrition, High High and operating strategy, optimizing and
Opportunities operations
and stabilizing or long income adjusting internal structures to
expanding market term further expand into high-tech,
share. high value-added fields.
Quantitative Indicators
internationally. During the reporting period, Medicilon led the development of the group standard Technical
Indicator Unit Results in 2025 Specification for Drug Toxicity Evaluation Based on Organoid Models, earning an honorary certificate from the
Investment in R&D: Standardization Committee of China Association for the Promotion of International Economic and Technological
Cooperation. Additionally, the Company participated in 25 domestic and 40 international industry conferences and
R&D Expenditures RMB 10,000 10,441.28
hosted 21 topic-specific live sessions covering ADCs, AOCs, nucleic acids, peptides, organoids and NAMs,
Percentage of R&D Expenditure to Operating Revenue % 8.98
promoting knowledge sharing and collective advancement.
R&D Team Building:
Case
Number of R&D Personnel Person 2,215
Medicilon Shanghai Seminar
Ratio of R&D Personnel to Total Employees % 88.46
Including: Employees with Master’s Degree and Above Person 601 On December 19, 2025, Medicilon held a specialized
Including: Employees with Bachelor's degree and below Person 1,614 touring seminar in Shanghai, inviting representatives
from Roche, Fudan University, Hengrui Pharma and
Innovation Achievements:
other industry-academia-research partners. The
Cumulative Number of Authorized Patents Case 56 seminar focused on cutting-edge technologies,
Including: Cumulative Number of Authorized Invention non-clinical research, FDA policy updates and
Patents Case 45
ecosystem co-development. Medicilon’s expert team
Including: Cumulative Number of Authorized Utility engaged in in-depth exchanges with attendees,
Model Patents Case 11 Roundtable Forum:
jointly promoting sustainable development within Co-Creating the Future
Number of Annual Patent Applications Case 6
the industry.
Cumulative Number of Software Copyrights Case 25
Cumulative Number of Trademarks Case 35 Case
Advancing New Opportunities for International Collaboration
Presentation of Innovation Achievements
On September 8, 2025, Medicilon’s Chief Scientific Officer
New Drug R&D
(CSO), invited as an authoritative Chinese expert, attended the
Medicilon is committed to building standardized, cutting-edge drug discovery technology platforms, continuously 13th World Congress on Alternatives and Animal Use in the
refining full-cycle R&D services. Core achievements include supporting partner biopharmaceutical companies in Life Sciences – 3RS Integrating 3 Worlds: Human, Animal and
accelerating drug discovery, thereby speeding up their market entry while generating stable and substantial Environment Health (WC13) in Rio de Janeiro, Brazil. During
economic returns for Medicilon. During the reporting period, the Company assisted 131 IND approvals. the event, two academic presentations were delivered,
systematically showcasing China’s progress, achievements
and challenges in non-animal toxicity testing strategies to the
Contribution to Industry Development
international scientific community. This conference highlighted
Medicilon has deepened strategic collaborations with leading domestic pharmaceutical companies, including the global impact of Chinese scientific innovation and 13th World Congress on Alternatives
and Animal Use in the Life Sciences –
Hengrui Pharma, Kexing Biopharm and Innodrug, while coordinating with international partners such as Oncotelic, reinforced Medicilon’s commitment to advancing drug
Hepanova and BIK Therapeutics. By integrating global technical expertise, talent and industry resources through a development in a scientifically rigorous, ethical and efficient Animal and Environment Health
collaborative model, the Company facilitates efficient progress in drug discovery projects both domestically and manner, in collaboration with international partners.
Medicilon Intellectual Property Application and Management Process
The R&D Department submits an intellectual property application to the Corporate Affairs Department based
on research outcomes.
The Intellectual Property Manager organizes the evaluation of the submitted IP application, conducts patent
searches on related technologies, issues search reports, and submits applications that meet the requirements
Validation of CCL20-driven CAR-γδ T
to the responsible supervisor for approval.
Technical Specification for Drug
secreting PD-1 blockade
Toxicity Evaluation Based on Organoid The Corporate Affairs Department engages a patent agency to prepare patent application documents and
with enhanced trafficking into solid tumor
Models
forwards the documents prepared by the patent agency to the inventor for confirmation.
The patent agency is entrusted to submit the patent application documents.
The status of patent application is tracked, and relevant procedures are handled accordingly.
Protection of Intellectual
Property Rights Measures for Intellectual Property Protection
Conduct pre-project patent searches and infringement assessments,
Medicilon places high strategic importance on intellectual property (IP) protection, recognizing it as a critical lever Patent Search
produce investigation reports, and implement early-warning or mitigation
for safeguarding technological innovation and maintaining core competitive advantages. The Company has measures.
established a systematic IP management framework, implementing 23 dedicated IP management policies,
including the Intellectual Property Document Control Procedures and IP Management Manual, which clearly Risk Control Market Maintain routine monitoring of potential IP infringements; all findings are
define responsibilities for relevant departments and personnel, and provide standardized procedures for IP Surveillance formally reported to the Legal Affairs Department to enforce rights.
application, protection, utilization and administration.
The Company’s IP protection measures address risk management, dispute resolution, international trade and Systematic Incorporate IP risk assessment into the Company-wide risk management
contract oversight, while continuously strengthening confidentiality management. We continuously improve our Oversight system with periodic evaluations and updates.
internal IP management system, focusing on promoting the institutionalization and systematization of IP
protection. Specific initiatives include training programs emphasizing respect for IP and privacy, Guide on Keeping Multi-Channel Monitor infringement trends and employ administrative complaints,
a Good Laboratory Notebook, and employee confidentiality agreements under the External Information Rights Enforcement litigation or whistleblowing as appropriate.
Distribution and Use Management System, clearly defining responsibilities and obligations to protect the IP of Dispute
Resolution
clients, partners and the Company itself. Evaluate litigation, arbitration, or settlement options based on cost,
Strategic
duration, and commercial impact to select the most effective course of
Intellectual Property Management Functions Decision-Making
action.
General Manager
Intellectual Property Management Representatives Pre-Export Assess IP laws, industry litigation risks, and potential infringement barriers
Due Diligence in target markets, preparing comprehensive risk reports.
Human Resources Department Corporate Affair Department Procurement Department
International
Overseas File patents, register trademarks, and record copyrights in relevant
Finance Department R&D Department IT Department Business Development Department IP Protection
IP Registration overseas jurisdictions.
Preclinical Research Department Chemistry Department Process Department
Border Apply customs IP filings and border inspection measures for high-risk
Enforcemen products.
CMC Departmentt Biology Department
R&D collaborations, outsourced projects and trade contracts clearly
Comprehensive
Coverage
define IP ownership, confidentiality obligations, and benefit-sharing Science and Technology Ethics and
arrangements.
All outsourced IP-related work, including searches, filings, and
Medical Ethics
Contract
Formalized Controls litigation, requires formal contracts; government projects comply with
Management
specialized regulations.
Medicilon strictly adheres to the Regulations on the Administration of Laboratory Animals, the Laboratory Animal—
Document All contracts are centralized under the Legal Affairs Department, with Guideline for Ethical Review of Animal Welfare, the Biosafety Law of the People’s Republic of China and GLP
Management ongoing compliance tracking and amendment review. standards established by the NMPA, FDA and OECD, among other relevant domestic and international laws and
regulations. The Company has established the Institutional Animal Care and Use Committee (IACUC) and
Full-Process Pre-approval reviews and post-implementation monitoring of IP implemented policies including the Medicilon Preclinical Research Animal Use and Management System and IACUC
IP Control: confidentiality. Operating Room Use and Care Rules, overseeing end-to-end management of laboratory animals. These measures
ensure compliance with animal welfare and ethical standards while providing high-quality animal care and robust
Equipment and information classification protocols define the purpose,
Equipment and authorized personnel and usage methods for high-risk-of-loss
biosafety protections.
Confidentiality
information equipment; specify the classification level, confidentiality period,
Management classification
transmission, storage and destruction requirements for classified
The Company continuously strengthens ongoing education and vocational training for personnel. Higher
information.
standards have been established and enforced regarding environmental safety, including the handling of
Physical Physical segregation measures establish secure zones with restricted laboratory waste and animal carcasses, as well as occupational safety, standardized operational procedures and
segregation access for clients and visitors.
labor protection. These measures maximize respect for animal welfare and ensure that experimental data are
accurate, reliable and reproducible. Medicilon actively implements the “3Rs” principles in animal research—
Replacement, Reduction and Refinement—and has developed a comprehensive system for animal welfare and
Case ethical protection, continuously improving the ethical and scientific standards of animal experiments.
Training on Laws Concerning Intellectual Property
Medicilon’s “3Rs” Principles in Laboratory Animal Management
In December 2025, Medicilon’s Legal Affairs Department
Utilize in vitro assays to evaluate drug safety, minimizing reliance on live animals. For example, in hERG
conducted specialized IP legal training for relevant
studies, cell-based models are used to assess compounds, avoiding the use of live animals.
management personnel. The training, tailored to the Develop iPS cell-derived organoid platforms, enabling in vitro pharmacological and toxicological
Company’s IP management needs, combined professional evaluation to replace in vivo studies, accelerating drug development timelines.
legal interpretation with practical guidance, effectively Leverage an AI-driven drug discovery platform to integrate compound physicochemical properties,
Replacement
strengthening participants’ awareness, accountability, and metabolic pathways and potential toxicities, enabling precise prediction of ADMET characteristics
legal expertise in IP protection. This initiative further (Absorption, Distribution, Metabolism, Excretion and Toxicity).
The NAMs (New Approach Methodologies) drug discovery platform combines AI, in vitro models and
supports the standardized and systematized development Highlights from Training on Laws
hybrid wet-dry systems into a triad framework. This fully integrates advanced in vitro models,
of Medicilon’s IP management framework. Concerning Intellectual Property
computational modeling, and AI technologies to support drug safety and efficacy evaluation, reducing or
replacing traditional animal testing.
Medicilon’s “3Rs” Principles in Laboratory Animal Management Animal Welfare and Ethical Protection Measures
Reuse animals in PK studies after completion of test compound washout periods to minimize total animal Animal Facility Animal facilities comply with the national standard GB14925-2023 Laboratory Animal -
use. Environment Environment and Housing Facilities, providing animals with a comfortable housing environment.
Use residual animals for blank sample collection for training or other research applications to optimize
Animal Experimental All projects involving laboratory animals require approval of the Protocol by the IACUC for welfare
resource use and avoid unnecessary animal testing.
Project Management and ethical compliance. Projects that do not pass review are prohibited from proceeding.
Reduction
A strategic framework agreement with Shanghai Jiao Tong University Agricultural Life Sciences
Regulatory and The Company has established comprehensive guidelines and policies to ensure the welfare and
Experimental Internship Co., Ltd. facilitates comprehensive collaboration in teaching, research,
Policy Safeguards ethical treatment of laboratory animals.
experimental internships and supply of Beagle dogs for preclinical research. Retired dogs are donated for
experimental teaching, maximizing the utilization of animal resources. For SD personnel, laboratory staff and animal caretakers: Conduct AAALAC international
Training accreditation training and in-house “Animal Care and Use Program” training.
During project implementation, literature research and optimized experimental design are applied in
For all employees: Conduct annual training on animal welfare and zoonotic disease prevention.
Reduction strict compliance with NMPA, FDA and OECD regulations and guidelines, ensuring minimal use of animals
to achieve research objectives.
To honor and recognize the contributions of laboratory animals, Medicilon has established an Animal Memorial
Monument and periodically holds flower-laying ceremonies, promoting ethical responsibility in scientific research,
Medicilon places a high priority on the welfare of laboratory animals, providing them with a comfortable and raising awareness among employees and the public regarding animal welfare, and advancing more humane and
humane living environment. Research projects are reviewed at least once every six months, and animal facilities sustainable practices in pharmaceutical research and development.
are inspected at least semiannually. During the reporting period, the Company conducted 14 IACUC knowledge
training sessions for relevant personnel and carried out 4 inspections of animal facilities, ensuring comprehensive
protection of animal welfare.
During the reporting period, the Company received full accreditation from the Association for Assessment and
Accreditation of Laboratory Animal Care International (AAALAC). From October 19 to 20, 2025, we successfully
passed the on-site triennial re-inspection by AAALAC international experts, with no major violations related to
scientific ethics reported.
Flower-Laying Ceremony Animal Memorial Monument
AAALAC Full Accreditation
On-site Inspection by AAALAC
Accreditation Experts, September
Data Security and
Customer Privacy Protection
Governance
Data security is a cornerstone of the Company’s sustainable operations. Medicilon strictly complies with the
Medicilon’s Collaborative Workplace Platform
Cybersecurity Law of the People’s Republic of China, the Regulations on the Protection of Computer Information ISO 27001Certificate OASYSTEM – Level 2 Network Security Certification
System Security of the People’s Republic of China, the Provisional Provisions on the Management of International
Connections of Computer Information Networks and the Good Laboratory Practice for Non-clinical Laboratory
Studies, among other relevant laws and regulations. We’ve established and implemented a series of policies and
Strategy
procedures, including the IT Information Security Management System, Network Security Management System and
Data Security Management System, covering IT infrastructure, information technology and compliance to build a
Type of Description Likelihood Value Chain
comprehensive data security management framework. A Cybersecurity Committee has been established, under Risk/ of Risk of Extent Impact Links Financial
which the IT Infrastructure Group manages full-process IT operations and training, while other departments Opportunity /Opportunity Occurrence of Impact Duration Impacted Impact Countermeasures
collaborate to safeguard data security. In 2025, the Company obtained ISO 27001 certification and network If Medicilon fails to The Company has
comply with relevant established a
security level protection certification. No data security incidents or customer information breaches were reported
information security comprehensive compliance
during the reporting period. regulations or transmits governance framework,
customer data overseas conducts regular
Medicilon Data Security and Privacy Protection Governance Structure without completing compliance audits and
Increase in
statutory procedures implements Privacy Impact
Compliance Medium costs and
such as security High High Operations Assessments (PIA). We also
Risk term decrease in
assessments or define a data localization
revenue
certifications, it may face strategy, apply standard
Decision-making & Supervisory Level Board of Directors regulatory penalties, contractual clauses, and
operational restrictions, complete required security
reputational damage, assessments or
and, in severe cases, certifications for
legal prohibitions. cross-border data transfers.
Management Level Cybersecurity Commission Information security
incidents may also arise
from employee Enhance encryption and
misconduct—such as access control, develop and
Increase in
clicking on phishing testing data breach
Management Medium costs and
emails, mis-sharing data Medium Medium Operations response plans, and
Execution Level IT Technology Department Internal Control and Audit Department Risks term decrease in
or using weak conducting ongoing
revenue
passwords—or from employee data security
external cyberattacks or training.
internal system
vulnerabilities.
Type of Description Likelihood Value Chain regular backup and off-site disaster recovery mechanisms. Additionally, through periodic drills and dynamic
Risk/ of Risk of Extent Impact Links Financial
Opportunity /Opportunity Occurrence of Impact Duration Impacted Impact Countermeasures assessments, we continuously verify the recoverability of backup data and the business restoration capabilities in
To address these risks, extreme scenarios.
Medicilon has implemented
an AI ethics review Data and Information Security Management Measures
mechanism and is gradually
When employing AI establishing AI compliance Medicilon maintains a full-spectrum data and information security management system covering employee
technologies to analyze standards. This includes: conduct, network security, data protection and emergency response. Through clear policies, strict technical
customer behavior, risks Conducting full-process
controls and efficient incident response mechanisms, the Company ensures the security and integrity of its data
may arise due to compliance reviews of
assets.
algorithmic bias, algorithmic models; Strictly
overprofiling of controlling the design and
customers or a lack of use of sensitive labels and Data and Information Security Management Measures
AI-related explainability in AI Medium Cost defining clear boundaries for
Medium Medium Operations Employees are required to follow device and software usage policies, password and access
Privacy Risk models and term increase the collection and application
Employees’ Code management protocols, cooperate with virus control and patch updates, transmit business data
decision-making of customer profiling data;
of Conduct according to protocols, and actively participate in security training. Violations are subject to
processes, potentially Implementing mechanisms
disciplinary measures.
leading to customer for user profile withdrawal
privacy disputes, and data deletion to protect Network devices and IP addresses are centrally managed, network management passwords are
Cybersecurity
regulatory scrutiny, user rights; Enhancing regularly updated, and backup, software upgrade, vulnerability scanning, and patching processes
reputational damage algorithm explainability and Management Measures
are implemented.
and loss of client trust. auditability, maintaining
Least privilege authorization, encrypted transmission and storage and database monitoring ensure
detailed data logs, and Data Security
ensuring AI decision-making data integrity, availability and confidentiality, while audit tracking records all access activities. A
Management Measures
processes are traceable and trusted recovery system is in place to respond to abnormal faults.
verifiable. A dedicated Network and Information Security Incident Response Committee has been set up to
Medicilon continuously Emergency Response oversee incident management, operating an emergency technical platform and implementing
Strengthening data develops its data security policies and technical plans to ensure rapid response to cybersecurity risks.
security and privacy management system and
protection enhances emphasizes transparency Case
client trust in the during client interactions to
Company’s data reinforce trust. By analyzing IT Policy Awareness and Training Program
Competitive Long Revenue
management Medium Medium Operations competitor weaknesses and
Opportunities term increase
capabilities, creating a highlighting its own To support business development, during the reporting period, the
differentiated differentiators, the Company Company conducted IT policy awareness training covering four key
competitive advantage integrates data security
areas: service support, compliance and security, infrastructure, and
that supports client capabilities into client
expansion. engagement strategies to application systems. The training provided employees with detailed
support market growth. guidance on account and password requirements, computer and
software usage standards, network security management, and
information security protection. Additionally, employees were
Impact, Risk, and Opportunity Management IT Policy Awareness and
instructed on the proper use of corporate WeChat, email, and
Training Program
Medicilon places a high priority on information security risk prevention and control. We implement diversified data telephone systems, as well as common application systems and IT
and information security management measures, establishing a multi-layered backup system that covers data, service request channels, thereby comprehensively enhancing IT
systems and staff. This ensures that both core information systems and hardware devices are incorporated into compliance awareness and operational competence.
Information Security Risk Prevention and Control
Case
Medicilon has established the IT Risk Management Procedures and formed a risk assessment team. The team
PRTG Network Monitor System Disaster Recovery Implementation
defines tiered evaluation criteria for key indicators, including data backup, access control, security protection and
environmental safeguards. Regular assessments are conducted on servers, networks, information security
On December 30, 2025, Medicilon executed and validated the disaster recovery plan for the
systems and core data centers to identify and classify risks, enabling targeted control measures and strengthened
Paessler Router Traffic Grapher (PRTG) Network Monitor at both its Chuansha and Nanhui R&D
supervisory execution. These efforts culminate in the preparation of a Risk Assessment Report, ensuring that data
sites. A simulated disaster scenario was used, and the Zerto disaster recovery platform was
security risks are maintained at acceptable levels, thereby safeguarding information assets and supporting
employed to restore the PRTG system. The process included system recovery validation, alert
sustainable business operations.
inspection and timely notification, ensuring the disaster recovery plan was fully functional and
IT Business Continuity Assurance reliable.
To reinforce risk resilience in extreme scenarios and ensure data integrity, availability and business continuity,
Medicilon has implemented the IT Business Continuity Plan. Core measures are deployed across system
Metrics and Targets
infrastructures, covering data backup, system disaster recovery and personnel redundancy. Execution is
coordinated by specialized IT teams, with recovery targets of 12 hours for core business systems and 24 hours for
To ensure the effective implementation of data security control measures, Medicilon, on the basis of establishing
non-core systems. The plan is continuously refined through annual drills and dynamic evaluations following
a data security management system, has set targets across multiple dimensions, including information leakage
business adjustments, ensuring robust IT continuity.
prevention, data classification and grading, recovery planning, training and emergency drills, and has promoted
IT Disaster Recovery Plan the orderly implementation of these targets throughout the year.
To enhance emergency response capabilities during disasters and safeguard core business systems and data
security, we’ve established an IT Disaster Recovery Plan. The plan defines differentiated recovery procedures Management Objectives Achievement
for natural disasters (e.g., fire, earthquake) and non-natural events (e.g., power outages, cyberattacks), No major data leakage or information security incidents occurred during the year. Achieved
enabling rapid, orderly recovery and minimizing business interruption. Regular recovery drills are conducted A data classification and grading protection mechanism covering the entire data
Achieved
to maintain a dynamic evaluation and continuous improvement mechanism. lifecycle has been established and continuously improved.
Backup strategies and disaster recovery plans have been implemented. Through
IT Business Recovery Process
regular training, drills and assessments, the Company continuously strengthens Achieved
employees’ awareness of and compliance with information security practices.
Upon detection of a business interruption, the disaster type must be promptly identified.
Natural Disaster
Ensure personnel safety while securing data carriers such as documents, magnetic tapes,
hard drives and servers
Non-natural
Assess losses, disclose relevant information, and activate emergency response plans for Disaster
each responsible team
Coordinate recovery of infrastructure, systems and network operations
Restore core business platforms in accordance with established procedures for data
recovery, system reconstruction and data migration.
Product Quality and
Customer Service
ESG Material Topics Covered in this Chapter
Safety and Quality of Products and Services
SDGs Responded in this Chapter
Strategy
Product Quality Management During the quality management process, Medicilon may face risks such as instability in raw material quality and
updates to quality standards resulting from changes in laws, regulations or policies. The Company systematically
promotes the identification, assessment, monitoring and control of risks, while actively exploring development
opportunities arising from quality improvement.
Governance Type of Description Likelihood Extent Impact
Risk/ of Risk of of Impact on Value Financial
Opportunity /Opportunity Occurrence Impact Duration Chain Impact Countermeasures
Medicilon has formulated institutional documents such as the Quality Manual, which define the quality policy of 1. Continuously strengthen the
“quality first, continuous improvement, pursuit of excellence, and striving to set industry benchmarks”. In quality management system,
ensuring strict adherence to GMP,
accordance with standards including ISO 9001, ICH Q7 and GMP, the Company has established a full-process ICH Q7 and other relevant
quality management system covering R&D, procurement of raw materials and excipients, manufacturing, domestic and international
standards.
packaging and testing. The Company has also issued multiple standard operating procedures (SOPs), including 2. Conduct comprehensive
SOP for Corrective and Preventive Actions and SOP for Inspection of Suppliers of Animals and Animal-Related Failure to meet product
quality trend analyses, leveraging
company experience, statistical
Products, to ensure standardized and regulated operations. quality standards or
tools or other methodologies to
regulatory requirements Increase in
identify potential nonconformities
may compromise the operating in the quality management
We’ve established a scientific and well-structured quality management organization, clearly defining the Risk accuracy and reliability of Downstream
Short costs and system and product realization
responsibilities of the Quality Assurance Department and other relevant departments. Through mechanisms such Clinical clinical trial data, Low Medium and
term decrease in process, and implement
Trial Risk jeopardize participant operations
as resource allocation, management review and corrective and preventive actions, the Company conducts safety, and expose the operating preventive measures.
comprehensive quality management across all stages of R&D and the production of drugs for clinical trials, Company to regulatory revenue
feedback and adverse event
penalties or brand
ensuring that products and services comply with customer requirements and applicable laws and regulations, and reputation damage.
response mechanisms to ensure
that quality-related issues arising
continuously maintaining the effectiveness of the quality management system. from customer feedback or
clinical trials are rapidly captured,
Medicilon continues to expand its R&D network by establishing research centers in Shanghai, Boston (USA) and professionally analyzed, and
other locations, ensuring that customers in different regional markets receive stable technical support that efficiently addressed, thereby
safeguarding participant safety
complies with local operational requirements. and supporting smooth project
progression.
Organizational Chart of Quality Management System
During raw material
onboarding, evaluation and
President procurement, insufficient
dynamic management process,
supplier qualification
strengthen raw material
checks or inadequate raw
acceptance procedures, and
material acceptance
conduct comprehensive testing in
Process Department Quality Assurance Department Formulation Department standards may allow
accordance with quality
Risk substandard raw or
standards.
auxiliary materials to enter Increase in 2. Maintain full lifecycle
Raw Material Short to
production, potentially Upstream,
Procurement Low Medium medium operating documentation of raw material
compromising product operations
and Supplier quality stability. This may term costs procurement, inspection and
storage to enable rapid
Document QA
On-Site QA
Quality Risk result in production
Production
System QA
Production
traceability of issues.
rework, increased costs or
PRD
PRD
ARD
ARD
QC
QC
non-compliance with
with high-quality suppliers while
downstream product
maintaining a reserve of
testing, customer
alternative suppliers to reduce
requirements or regulatory
reliance on a single source and
standards.
mitigate supply risks.
Type of Description Likelihood Extent Impact Impact, Risk, and Opportunity Management
Risk/ of Risk of of Impact on Value Financial
Opportunity /Opportunity Occurrence Impact Duration Chain Impact Countermeasures
Medicilon conducts internal quality self-inspections and management reviews to systematically identify, analyze
By maintaining a stable
product pass rate, and evaluate risk sources. For identified risks, the Company implements risk mitigation or acceptance measures
implementing a robust
and conducts periodic reviews and summaries, thereby establishing a comprehensive and multi-layered risk
customer complaint
handling mechanism and management system. During the reporting period, one quality self-inspection was performed; all identified issues
cultivating a reputable
were fully rectified, and no major quality risks were detected.
compliance record in Uphold quality commitments to
preclinical research, the ensure consistent achievement of
Opportunities Company can further
Downstream Increase in quality objectives; maintain and Quality Control: Based on multiple domestic and international standards, the Company has
Quality Brand strengthen the Long enhance brand reputation developed a Quality Manual that clearly defines quality policies and objectives. Through a
Medium Medium and operating
Premium “high-quality” brand term through tangible performance,
operations income four-tiered document management system, we standardize the entire R&D and production
positioning. This enables gradually transforming quality
Opportunity process and implement corrective and preventive actions for continuous improvement.
the conversion of quality excellence into brand value and
advantages into brand premium pricing potential.
premiums, attracting
high-end clients with Emergency Response: The Company has established disaster recovery and business
stringent quality continuity plans. For various contingencies—including facility failures, natural disasters and
Risk
requirements and supply chain disruptions—these plans specify tiered response processes, responsible
expanding high-value Response
parties and handling procedures, supported by dedicated incident command teams for
business opportunities.
coordinated management.
Building on the
Company’s established
quality management Business Continuity Assurance: The Company adopts a multi-site operational strategy to
system aligned with GMP, ensure cross-regional backup. Core facilities are equipped with redundant systems and
ICH Q7 and ISO 9001, and 1. Continuously monitor updates backup equipment, and IT systems maintain data integrity through backup and disaster
supported by a four-tier to domestic and international recovery architectures. Additionally, key position succession plans, flexible personnel
documentation control quality regulations and industry
allocation and remote work mechanisms are in place to mitigate risks associated with
mechanism and regularly standards, conduct periodic
personnel dependency.
updated Quality Manual, system suitability reviews, and
the Company has the revise the Quality Manual and
Opportunities opportunity to benchmark SMP/SOP documents in line with
industry-leading practices, Downstream Increase in business development needs. Leveraging our integrated technical service platforms, highly skilled R&D team and multiple
Quality System
integrate advanced quality Long 2. Deepen the application of
Optimization risk management High High and operating certifications, we focus on drug discovery and CMC development and Preclinical research.
term quality risk management,
and Upgrade concepts, and leverage operations income We meet the needs of global clients through efficient and cost-effective one-stop services.
embedding risk assessments into Opportunity
Opportunity digital management tools. raw material procurement, By continuously driving technological innovation, process optimization and compliance
This will drive the process development and system enhancement, we strengthen our core competitiveness in the CRO sector, accelerate
evolution of the quality product release, and implement new drug development, and contribute to innovation in the pharmaceutical industry.
system from disaster recovery and business
“compliance-oriented” continuity plans to achieve
one to “efficient and lean” proactive risk anticipation and
one, enhancing precise control.
Metrics and Targets
operational efficiency,
proactive risk Medicilon adheres to the quality policy of “quality first, continuous improvement, pursuit of excellence, and striving
identification and industry
to set industry benchmarks”. In alignment with industry regulations, market demands and corporate strategy, the
competitiveness.
Company sets quality objectives, monitors progress through regular communication and updates targets as
needed.
accordance with Company’s GLP projects, reviewing protocols, study conduct, data integrity and final reports.
Quality Target Achievement These inspections are designed to identify and correct potential issues promptly and constitute a core component
Incoming materials (raw materials, excipients, packaging materials)
Achieved
of the Company’s quality management system.
pass rate: 100%
Product pass rate: >99% Achieved
Medicilon annually collects and consolidates records related to Corrective and Preventive Actions (CAPA) over a
Incoming inspection pass rate: 100% Achieved
In-storage compliance: 100% Achieved
one-year period. These records include, but are not limited to, detailed problem descriptions, preliminary
Outgoing product compliance: 100% Achieved investigation results, temporary measures implemented and planned corrective and preventive actions. Each year,
Handling Rate of Customer Complaints: 100% Customer complaints: None the quality management system undergoes a comprehensive review to summarize deviations, changes and CAPA,
Employee quality training coverage: >98% Achieved
analyze the root causes of various deviations, and assess the effectiveness of CAPA measures.
Product Quality Control Measures Quality Audits
Product Lifecycle Management Through a systematic audit program, we ensure the full compliance of our R&D and production activities. Internal
audits review GLP and CMC projects, verifying that laboratory operations and data recording are accurate and
Medicilon has established systematic and end-to-end quality management measures across the full product
standardized. External audits involve inspections by domestic and international regulatory authorities, confirming
lifecycle, achieving closed-loop control from raw material entry to product delivery. Quality standards are defined
the effectiveness of the Company’s quality management system. Supplier audits include on-site inspections of
for monitoring hazardous substances during production, and combined with corrective and preventive
material suppliers, ensuring the compliance and safety of raw materials. Together, these audits form a critical part
mechanisms, potential non-conformities are promptly identified and addressed, ensuring comprehensive product
of the Company’s quality assurance framework, effectively mitigating risks and ensuring stable business
quality assurance.
operations.
Key Stages in the Product Manufacturing Lifecycle
Quality Culture Training
Medicilon has established a comprehensive quality training system, including new employee onboarding, annual
training and ad hoc training sessions. To ensure effectiveness, a strict assessment mechanism is implemented:
department heads develop and execute training plans, and trainees are evaluated according to internal
departmental assessment procedures. Passing the assessment is a prerequisite for employees to obtain project
assessment before continuing relevant operations.
Key Performance
(person-times) participants, with a total training duration of 15,921.25 hours.
In addition, to continuously enhance operational reliability, the Company conducts ongoing inspections of
facilities, research activities and processes in accordance with internal management procedures. Facility
inspections are conducted semiannually, focusing on laboratories, animal housing areas, the IT Department,
archives, general infrastructure and the management of controlled substances (narcotics and psychotropic drugs).
Laboratory process inspections occur quarterly, covering the management of test and control articles, animal
receipt, intracellular and extracellular fluids, among other aspects. Research inspections are performed in
Product Recall speed, cost optimization, compliance operations and intellectual property protection, ensuring a comprehensive
and proactive response to customer needs. Through transparent and honest communication combined with
To safeguard product quality and customer interests, Medicilon clearly defines the responsibilities and professional and efficient service, we continually strengthen customer trust and loyalty, solidifying collaborative
collaborative workflows of relevant departments, enabling efficient cross-departmental coordination for the recall and win-win relationships.
of delivered products. During the Reporting Period, no product incidents that required withdrawal or recall for
health and safety reasons occurred in the Company. Medicilon conducts regular customer satisfaction surveys. In 2025, these surveys covered all projects—both
completed and ongoing—throughout the year. Clients evaluate Medicilon’s performance across multiple
Product Recall Management Process dimensions, including project planning, research capabilities, problem-solving efficiency, responsiveness, delivery
The QA Head convenes an Emergency Quality Committee meeting to discuss the recall quality, and communication and collaboration. Feedback collected from these surveys informs targeted service
plan and communicates promptly with customers. process optimization and employee training initiatives, driving continuous improvement in the customer
Emergency
The plan must specify: affected batch numbers/items, customer list and quantities, experience.
Response and Plan
notification method and timeframe, and transportation method.
Development
All plans are documented in the Recall Record Form, reviewed by relevant departments, Key Performance
and approved by the CEO before execution.
In 2025, the Company received no customer complaints, and overall customer satisfaction remained strong.
Returned products are received by the warehouse, transferred to a physically
Recall Execution segregated nonconforming area and clearly labeled.
and Receipt The warehouse immediately notifies QA who verifies the completeness of the recall and
Control reconciles quantities (recall/shipment/sales/inventory/warehouse). Any discrepancies are Case
investigated to closure.
Recognition for Customer Service Excellence
The warehouse issues a sample submission form, QC performs sampling and testing,
Quality Inspection and generates a report. In 2025, upholding the philosophy of “innovation-driven and quality-first collaboration”, Medicilon
and Evaluation QA reviews the results and coordinates with production and other departments to leveraged its technical expertise and efficient customer service to earn high recognition from
evaluate appropriate handling options (rework, reprocessing, destruction or alternative domestic and international partners, including GlueTacs, TANGO, Eluciderm and Continent
measures). Pharmaceuticals. The company was also honored with the BIOCHINA “Top 100 Suppliers of 2024”
The proposed handling plan is reviewed by relevant departments and approved by the Award.
Approval and
QA Head before implementation.
Closure
The QA Head confirms the final outcome, and the recall event is formally closed.
Customer Service Management
Customer Service Management GlueTacs Award
Continent Pharmaceuticals
“Toxicology Pioneer” Award
Medicilon adheres to a “customer-first” service philosophy, striving to exceed client expectations. The Company
has established standardized service mechanisms across multiple dimensions, including service quality, response
Medicilon’s Global Development System
Strategic Foundation:
Expanding the Boston Center to Build a Global Innovation Hub
To accelerate the globalization process, Medicilon increased investment in the “Overseas Marketing and R&D
Center Project” as a fundraising investment project in 2025. This project involves a strategic expansion of its
existing Boston Innovation Center, aiming to attract and optimize international talent, procure advanced R&D
equipment, and enhance service capabilities. Leveraging the Company’s existing overseas R&D and sales teams,
RayThera Honors Medicilon with “Excellent Partnership Award” Eluciderm Award the center will further strengthen Medicilon’s brand influence, customer service efficiency, and business
development capabilities in the global biopharmaceutical market, establishing a solid strategic foundation for
global development.
Training on Customer Service
Compliance as Cornerstone:
Aligning with International Standards to Facilitate Global Expansion
Medicilon places great emphasis on customer service quality. To meet diverse client needs and foster long-term,
stable partnerships, the company regularly conducts specialized customer service training. These programs Compliance comes first in international operations. In 2025, Medicilon continued to build the international market
combine concept reinforcement with case study sharing, helping employees internalize customer satisfaction as a compliance system, thereby enhancing our cross-regional regulatory and customer response capabilities. In
core practice, enhancing service efficiency and elevating overall client satisfaction. alignment with the highest international standards, the Company achieved significant breakthroughs in quality
system and global certification. It successfully passed multiple inspections by drug regulatory authorities
Case worldwide and obtained OECD GLP certifications in Hungary and Mexico. These achievements build a reliable and
efficient compliance pathway for the Company’s global new drug applications and international collaborations,
“Customer-Centric” Training Program providing robust support for global business expansion.
On May 15, 2025, Medicilon conducted a “Customer-Centric”
training session for mid-level managers, with 32 participants.
The program emphasized that delivering high-quality service is
foundational to personal and corporate development, and
shared outstanding customer service examples from both the
industry and internal company practices. By illustrating practical
service pathways and outcomes, the training strengthened
“Customer-Centric”
managerial understanding, enhanced service capabilities, and Certificate of Registration of
Training Program
Conformity with the OECD Principles
empowered managers to lead their teams in fulfilling customer
of Good Laboratory Practice
service responsibilities. Visit of Mexican OECD GLP Inspection Expert Panel
th
On-site Inspection of GLP Project by
OECD GLP Inspection by the Hungarian OECD Expert Panel
Japanese Inspectors
Globalization Outcomes:
Talent Aggregation: Empowering Domestic Innovation and Facilitating Global Success
Gathering International Experts to Build an Innovation Team
In supporting global reach of domestic innovative achievements, Medicilon has facilitated overseas licensing for
Medicilon, deeply rooted in the CRO industry, consistently cultivates and attracts a large pool of R&D talent. Over
multiple Chinese innovative drugs, for example assisting MediLink Therapeutics in licensing out its HER3-targeted
years of development, the Company has built a professional, experienced, and well-structured talent team. The BD
ADC YL202 and B7H3-targeting ADC to Roche; assisting Allist Pharmaceuticals in licensing out its third-generation
team has grown to more than 10 members. Additionally, the Boston project is located in a region with numerous
EGFR-TKI Furmonertinib Mesylate to ArriVent Biopharma; assisting Hengrui Pharmaceuticals in licensing out its
top-tier universities and research institutions, alongside a robust pharmaceutical industry, providing strong
GLP-1 innovative drug HRS-7535 to Kailera Therapeutics; and assisting Jeyou Pharmaceutical in licensing out its
support for the Company’s talent recruitment.
long-acting IgE antibody JYB1904 to RAPT Therapeutics and KRAS G12C inhibitor Sotorasib to HuyaBio
International, respectively. These cases not only reflect the Company’s services of international caliber but also
Business Development:
substantially advance the global reach of domestic innovative achievements, laying a solid foundation for future
Deepening Global Ecosystem Engagement to Co-create Value
globalization of Chinese innovation.
Leveraging the Boston Innovation Center as a gateway, Medicilon actively advances overseas business expansion
and localized services. In 2025, the Company participated in nearly 40 top-tier global industry conferences,
including the Annual Meeting of the American Association for Cancer Research (AACR), BIO International
Responsible Marketing
Convention, EUROTOX Congress, and CPHI Korea. These engagements allowed the Company to precisely grasp
international R&D trends and actively showcase China’s innovative strength in the biopharmaceutical field.
Medicilon strictly adheres to the Advertising Law of the People’s Republic of China and relevant laws and
In the same year, Medicilon established in-depth strategic partnerships with several international innovative
regulations of all jurisdictions where it operates, and resolutely rejects any form of false or exaggerated advertising
pharmaceutical companies, such as Oncotelic, Hepanova, and BIK Therapeutics. Focusing on cutting-edge areas
to ensure all external communications are truthful, accurate, and transparent. Meanwhile, the Company continues
like nucleic acid drugs, nano-formulations, and cell and gene therapies, the Company integrates technical
to strengthen compliance management across service promotion and sales processes, maintaining a healthy
resources across regions to co-create a global innovation community poised to lead the industry’s future.
competitive order in the industry through responsible business practices. During the reporting period, no
marketing violations, false promises, or consumer rights infringement occurred.
Signing Ceremony of Strategic Cooperation Agreement
Signing Ceremony of Cooperation Agreement between between Oncotelic and Medicilon in Nucleic Acid Drugs,
Medicilon and BIK Therapeutics Nano-formulations, and Other Areas
Climate-related Transition
and Green Development
ESG Material Topics Covered in this Chapter
Waste Disposal
Response to Climate Change
Energy Utilization
Pollutant Emissions
Environmental Compliance Management
Water Resource Utilization
Circular Economy
Ecosystem and Biodiversity Protection
SDGs Responded in this Chapter
Description Likelihood Value Chain Financial
Response to Climate Change Risk/ of Risk
Opportunity /Opportunity
of Impact
Occurrence Materiality
Duration
of Impact
Links
Impacted
Priority Impact
Ranking Description Countermeasures
Accelerated
updates in
domestic and
Governance international Monitor domestic and
carbon international policy
Increase
Medicilon thoroughly implements the concept of green development, complies with policy documents such as the reduction laws, changes in real time
in
Policy Risk regulations, and Low Medium Short term Operations Medium and actively adopt
Action Plan for Carbon Dioxide Peaking before 2030, and integrates climate change response into the entire policies may
operating
energy conservation
costs
production and operation process to ensure that environmental responsibility and business development go hand expose the and emission
Company to reduction measures.
in hand. The Company has established a three-tier ESG governance structure consisting of a "decision-making penalties if it
level, management level, and execution level", with clear responsibilities at each level. The Board of Directors fails to respond
promptly.
oversees and leads related work, clarifies each management’s responsibilities in energy conservation, emission
Through energy
reduction, and green operations, and facilitates a clear chain of accountability and effective implementation of conservation Develop and strictly
energy conservation and emission reduction measures, thereby contributing to climate change mitigation in daily and emission implement policies
reduction such as the Energy
operations measures, the
Reduction
Management System,
Energy Short- and
in
ESG Management Structure Company can High Medium medium-t Operations Medium optimize the energy
Opportunity operating
effectively erm structure, and increase
Decision-making Level costs
reduce energy the use of clean
Develop ESG development strategies and provide consumption energy such as
Board of Directors
and lower photovoltaics.
overall leadership for ESG-related work
operating costs.
Management Level
As the public
Coordinate the work across departments and
ESG Working Group and customer
regularly report ESG work progress to the Board demand for
Increase investment in
green products
of Directors green chemistry, and
and services
Execution Level actively explore
Market increases, the Operations, Revenue
Fulfill specific ESG tasks, including collection and Medium Medium Long term Medium pathways that achieve
Functional Departments Opportunities Company can downstream increase
both green
archiving of relevant data and materials. attract market
development and
resources by
efficient production.
building a green
Strategy
and low-carbon
brand.
Description Likelihood Value Chain Financial
Risk/ of Risk of Impact Duration Links Priority Impact
Opportunity /Opportunity Occurrence Materiality of Impact Impacted Ranking Description Countermeasures
Impact, Risk, and Opportunity Management
Extreme weather
events, such as Develop a Business
typhoons and Continuity Plan and The Company continuously strengthens climate change risk management, regularly identifies risks and
severe Increase in equip facilities with
opportunities throughout the production and operation process, and takes targeted measures based on its actual
rainstorms, may operating dual-circuit power
Extreme conditions to achieve stable risk control and capitalize on opportunities.
cause power costs and supply system and
Weather Medium High Short term Operations Medium
outages or decrease in emergency diesel
Risks production halts, operating generator sets to
threatening the revenue minimize the impact of
safety of extreme weather on
employees and business operations.
facilities.
Identification Assessment Response Energy and Resource Utilization
The Company identifies risk For risks and opportunities Based on the identification
and opportunity types in line identified, the Company and assessment, the Energy Utilization
with authoritative domestic assesses their potential Company develops targeted
and international disclosure financial impact, duration of response measures to Management System
frameworks, and defines and impact, and impact materiality mitigate or even eliminate
Medicilon adheres to the principle of "integrating efficiency with strict economy” in energy management, and
describes relevant risks and to determine their priority climate change risks, while
strictly complies with laws and regulations such as the Metrology Law of the People's Republic of China, the
opportunities based on rankings. seizing opportunities from
Energy Conservation Law of the People's Republic of China, and the General Rules for Energy Measuring
relevant policies, sustainability climate change to promote
Instruments Equipping and Managing of Energy User. Based on its actual conditions, the Company has
trends, and actual company sustainable development.
formulated energy management regulations such as the Electricity Management System, Energy Management
conditions.
System, and Energy Measurement Management System, promoting the efficient recycling of energy resources
through strengthened whole-process control.
Indicators and Targets
The Company has established a three-tier energy management structure comprising a decision-making
With a long-term perspective, the Company layer, a management layer, and an execution layer, with clear responsibilities at each level. The
plans to gradually increase the use of clean decision-making layer is comprised of an Energy Management Leading Group, headed by the Vice President
Planned Percentage of Renewable
energy while developing long-term energy Electricity Used Over the Next Five Years of Operations with heads of various functional departments as members, responsible for formulating energy
conservation plans. Phased targets have been Percentage of policies, approving major energy-saving projects, and coordinating resource allocation. At the management
Renewable Electricity Used 30%
set: The percentage of renewable electricity layer, the Energy Management Office serves as the specialized agency responsible for coordinating daily work
used is expected to reach 10% by 2026 and 20% such as policy formulation, energy statistics, and implementation of energy conservation measures;
then increase by 5% annually to reach 30% by 15% functional departments such as the Production Department, Equipment Management Department, and
environmental benefits. execution layer comprises energy management personnel from each workshop/department team,
The Company's GHG emissions primarily come from purchased electricity consumption, natural gas combustion in responsible for grassroots energy management, particularly including supervising energy usage,
boilers, and use of air conditioning refrigerants. To effectively reduce GHG emissions, the Company actively adopts implementing energy conservation measures, and breaking down energy targets to individual positions and
power-saving measures and promotes the use of clean energy, helping mitigate global climate change through employees.
concrete actions.
The Company has established a sound energy assessment and incentive mechanism, closely linking energy
conservation targets to job performance, and providing special awards to departments and individuals with
Indicator Unit 2023 2024 2025
outstanding achievements in energy conservation. The Company regularly organizes energy audits to
Total GHG Emissions tCO2e 27,637.12 28,011.77 27,899.10
accurately identify energy waste and drive corrective actions. Additionally, the Company benchmarks against
Direct greenhouse gas emissions (Scope 1) tCO2e 3,623.40 3,470.53 3,333.59 advanced management standards and best practices in the industry to continuously improve its refined
Indirect GHG Emissions (Scope 2) tCO2e 24,013.72 24,541.24 24,565.51 energy management.
GHG emissions intensity tCO2e/ 10,000 yuan 0.20 0.27 0.24
Note on GHG Accounting Standards:
Calculated according to the Guidelines for Accounting and Reporting GHG Emissions for Enterprises in Other Industrial Sectors (Trial), and 2023 Carbon Dioxide Emission Factors
for Electricity.
Organizational Structure of Energy Management System
Supporting Retrofits and Energy
Energy Management Leading Group Refined Management of Electrical Equipment
Conservation Awareness Campaigns
Achieve timed switching of fans. All fans are shut
Complete natural air supply retrofit in laboratory
down after work and started before work each day.
Energy Management Office Functional Departments areas, particularly by replacing existing fixed windows
Promote a culture of energy conservation through
with rainproof louvers to effectively alleviate
regular energy-saving awareness campaigns;
building-wide negative pressure. The retrofit was
Workshop Management establish an equipment utilization check mechanism
Information Collection Energy Accounting Workshop Management
Metering Personnel completed for Building 2 in Nanhui in 2023 and for
Personnel Personnel to accurately identify idle assets; implement sealing
and Registration Personnel of the
Personnel Finance Department Building 1 in Nanhui in 2025. By optimizing the
management for inefficient equipment, and prioritize
building ventilation structure, the Company reduces
internal allocation to revitalize resources, thus
the mechanical ventilation energy consumption,
Energy Conservation Measures reducing the need for new equipment procurement
thereby achieving energy conservation and
at the source.
consumption reduction.
Medicilon systematically advances various energy conservation initiatives with a focus on energy Equip air conditioners in all rooms except special-use
Incorporate daily electricity use standards into the
rooms with custom controllers: cooling temperature ≥
conservation, consumption reduction, safety management, and efficient energy use. By establishing a administration module of new employee orientation
comprehensive energy measurement system, the Company conducts real-time monitoring and dynamic startup at 8?30 and shutdown at 17?30 every work
training, which is organized and coordinated by the
Human Resources Department. Signed confirmation
analysis of energy consumption data,and accurately identifies energy use trends, thus providing scientific day; manual activation available for overtime work
documents from participants are retained,
(lasting for 1 hour per activation).
data support for the formulation and implementation of energy conservation measures. Meanwhile, the strengthening all employees’ awareness of energy
Company actively promotes the application of new energy-saving technologies and equipment, conservation and consolidating the personnel
systematically organizes energy-saving retrofit projects, continuously optimizes energy utilization efficiency, foundation for energy management.
and effectively reduces energy consumption across all aspects of production and operations. Energy Planning and Targets
The Company's energy use is primarily concentrated in daily office and laboratory operations, with electricity
and natural gas as the main energy types, laying a foundation for energy management across the entire
Energy Monitoring and
Photovoltaic Application
Measurement Optimization operational chain. To ensure effective implementation of energy conservation and emission reduction
measures, the Company set the 2025 energy management targets, i.e., reducing both electricity and natural
Complete lighting retrofits at the Nanhui site by
Equip the Chuansha and Nanhui sites with an
adding a total of 35 sets of LED solar streetlights gas consumption by 1% in 2025 compared with 2024. During the reporting period, the Company successfully
energy monitoring system for power distribution
and on-site solar lighting facilities (100W per set). achieved the target of a 1% reduction in natural gas consumption. However, the target of a 1% reduction in
cabinets, enabling real-time monitoring of
These retrofits achieved significant energy
operating current, voltage, and temperature of electricity consumption was not achieved, primarily due to increased laboratory R&D and testing activities,
conservation and carbon reduction benefits, saving
equipment. When any abnormal parameter is extended operating hours of high-power equipment, expanded office and operational scale, compounded
approximately 12,775 kWh of electricity annually
detected, the system automatically triggers an
and reducing carbon dioxide emissions by over 8.53 by the fact that some energy-saving retrofit projects were still in the early stage of implementation and their
alarm, achieving dynamic energy management and
tons, equivalent to reducing 1,533 tons of standard effects had not yet materialized, resulting in electricity consumption management falling short of
early safety warning for the power distribution
coal combustion.
process. expectations.
Complete the installation of secondary meters at
the Chuansha site. All devices with a power rating of Additionally, the Company has established a long-term energy conservation plan for 2026-2030. In 2026,
independent meters, enabling precise monitoring of
and 15% respectively compared with 2025, reaching peak energy consumption; from 2027 to 2030, the
energy consumption.
Company will enter a phase of energy conservation and consumption reduction, aiming for a reduction of 1%
year-on-year in both electricity and natural gas consumption every year. Through this stepped control
strategy, the Company aims to steadily improve energy efficiency.
Executive Level Major Water-Using Units
Indicator Unit 2025
Manage water use in production processes, including equipment maintenance and
Comprehensive Energy Consumption tce 7,539.82 implementation of water conservation measures.
Natural Gas Consumption 10,000 m3 154.18
Wastewater Management Unit
Purchased Electricity Consumption kWh 44,664,565 Treat and discharge wastewater, ensuring compliance with water quality standards.
Clean Energy Consumption tce 2,050.55 Water Management Units
Monitor and manage daily water use, and develop water use plans and water conservation
Direct Energy Consumption tce 2,050.55
programs.
Indirect Energy Consumption tce 5,489.28
WASH Management Units
Comprehensive Energy Consumption Intensity tce/10,000 yuan 0.06
Ensure the safety of sanitary water for employees and communities, and provide related services.
① During the reporting period, the energy sources used by the Company included natural gas and electricity. The Company calculated comprehensive energy, clean energy, direct
energy, and indirect energy consumption with reference to the latest China Energy Statistical Yearbook and General Principles for Calculation of the Comprehensive Energy
Safety Management Units
Consumption.
② Comprehensive energy consumption intensity = Comprehensive energy consumption / Operating revenue.
Responsible for water-related safety risk prevention and control, such as flood control and
water quality.
Water Resource Utilization Supporting Level System Promotion Units
Promote the establishment and continuous improvement of the water resource management
system, and develop relevant standards and processes.
Management System
Supervision and
Environmental Compliance Department
Medicilon strictly complies with relevant laws and regulations such as the Water Law of the People's Republic of Communication Level
Ensure compliance with water resource laws and regulations, and handle related compliance
China, and has formulated and implemented the Water Management System and established a water resource
matters.
management structure with clearly defined roles and responsibilities for each position, systematically
strengthening full-process water management. Meanwhile, the Company incorporates the performance of water Information Disclosure Team
resource management into the performance appraisal and evaluation system. This drives management Disclose water resource management information to stakeholders to enhance transparency.
implementation, promotes scientific allocation and rational use of water resources, continuously improves water
efficiency, ensures safety in production and domestic water use, effectively reduces water-related operating cost, Water Resource Risk Assessment and Emergency Management
and supports the Company’s green and sustainable development through standardized and systematic water
Medicilon conducts water resource risk assessments to comprehensively identify and systematically analyze risks,
management measures.
such as water scarcity, water pollution, and water-related disasters, and develops targeted and scientifically sound
Water Resource Management Structure risk prevention and control measures. The Company has established a sound early warning mechanism for water
resource risks to achieve regular monitoring and timely warnings for water resource risks and promptly take
effective response measures, thus minimizing the likelihood and impact of risks. Furthermore, the Company has
Decision-making Level General Person in Charge
improved emergency management requirements for water-related incidents, developed specialized emergency
Set the overall objectives and strategic direction for water resource management, coordinate
resource allocation, and drive overall work. plans covering critical scenarios such as water source pollution, water supply interruption, and pipeline rupture,
established a specialized emergency response team for water incidents, and clearly defined the division of
Executive Person in Charge responsibilities for all stages of emergency response to ensure safe supply of water for production, domestic use,
Implement specific water resource management plans, and coordinate resource allocation and laboratory activities. Furthermore, the Company regularly organizes emergency drills to test the feasibility and
across departments to facilitate target achievement.
effectiveness of the plans, enhance employees’ emergency awareness and emergency response capabilities, and
promptly identify and address gaps in the plans, enabling rapid and precise response in emergencies.
Water Use Data Recording and Analysis
Install high-precision meters for key water-using equipment, all floors of each building, and the campus total meter;
Water Resource Emergency Management Team Regularly record data from all meters and continuously analyze water use;
Conduct focused monitoring on areas, departments, and equipment with high water consumption.
Information Release Group Logistics Support Group Water Quality Testing Group Emergency Repair Group
Use of Water-Saving Devices in Production Processes
Use river water preferentially for road washing and landscape irrigation at the sites;
Issue emergency water Responsible for In case of water source In case of pipeline Adjust tap water flow as needed;
supply information and emergency water contamination, the rupture, promptly shut off Recycle wastewater from the purified water system for reuse as make-up water in air conditioning cooling towers.
address water-related procurement to ensure Safety Management the main water supply
inquiries from various supply for urgent Department monitors valve based on the
departments laboratory and domestic and analyzes water specific cause, perform
use supply, and reports emergency repairs, and
water quality status in a restore water supply
timely manner immediately after repair
Water Conservation Measures
Water Conservation Promotion
The Company actively promotes the research, development, and application of water resource management
technologies, and encourages the adoption of advanced water-saving technologies, water treatment
Water Resource Management Goals
technologies, and water recycling technologies to continuously improve water efficiency. At the same time, the
Company regularly organizes technical training and exchange activities on water resource management to
To actively practice the concept of green development, implement requirements for the intensive and efficient use
comprehensively enhance employees' water resource management skills and strengthen the awareness of water
of water resources, and support the sustainable development strategy, Medicilon has set scientific water
conservation and management among all employees.
conservation targets for 2025 based on operational plans and actual production conditions: reduce water
Additionally, the Company scientifically coordinates the internal allocation and use of water resources by rationally consumption by 1% in 2025 compared with 2024. The Company has also established a long-term plan, setting
allocating water resources based on actual production needs and water availability to ensure stable supply for key phased water management targets for 2026–2030: Based on the phased development requirements, water
water-use processes. The Company also proactively coordinates partnerships with external water suppliers to consumption is expected to increase by 5% in 2026 compared with 2025, reaching the Company's peak water
secure stable water supply, and actively participates in the optimal allocation and sharing of regional water consumption; from 2027 to 2030, the Company will continue to focus on efficient use and conservation of water
resources, contributing to the overall efficient utilization of water resources. resources, aiming for a 1% year-on-year reduction in water consumption. During the reporting period, the
Company's water consumption in 2025 decreased by 0.92% year-on-year, primarily due to increased laboratory
Water Conservation Measures
R&D and testing activities, experimental animal husbandry, and expanded office and operational scale, which
Enhancement of Water Management created rigid water demand that was difficult to reduce. Additionally, some water conservation measures had not
yet fully taken effect, resulting in water consumption management falling short of expectations.
Establish a sound water conservation management system, define water conservation responsibilities for each department and position,
and incorporate water conservation targets into performance appraisals;
Conduct regular inspections of water facilities, promptly repair leaks, and strictly control pipeline leakage and losses. Key Performance
Enhancement of Publicity and Education
During the reporting period, the Company's total water consumption was 201,926 m3.
Regularly organize water conservation training, meetings, poster campaigns, and other publicity campaigns;
Set up water conservation bulletin boards and slogans to create a water-saving culture.
Green Operations
Medicilon deeply integrates the concept of green development into every aspect of operations, striving to become
an environmentally friendly enterprise. The Company has established a comprehensive operational environment Turn off rotary evaporators, oil pumps, freeze dryers and other laboratory equipment immediately when
monitoring mechanism, regularly testing indoor air quality, noise, and other factors to create a healthy, they are not in use to reduce standby energy consumption. Select equipment with lower energy
comfortable, and green working environment for employees. Through continuous improvement of operational consumption for experimental tasks to optimize energy efficiency.
processes, the Company enhances resource efficiency, reduces the negative environmental impact from For special analytical equipment such as NMR and LC systems, provide notification in advance and turn off
operations, and supports sustainable development. all associated facilities to reduce energy loss if such equipment needs to be shut down during holidays.
Only areas housing live animals require constant temperature, allowing equipment to operate continuously
Green Office for 24 hours a day. For other laboratories without special requirements, the use of air conditioning must
strictly comply with office electricity usage standards.
Use energy-saving lights in offices and public areas; install automatic control switches in corridors and In laboratories with low ambient temperature requirements, such as NMR rooms, analysis rooms, and
restrooms; keep lights off during the day in areas with good natural lighting; and reduce lighting in public refrigerator rooms, avoid using air conditioning in winter, and use air conditioning moderately in spring
areas at night (e.g., alternate lighting and motion sensor lights). and autumn based on instrument operation needs to avoid errors caused by abnormal temperatures.
Promptly turn off computers, printers, fans, and other office equipment when staff leave for long periods Rationally schedule the use of high-energy-consuming experimental equipment, scientifically control start
or after work; turn off air conditioning 30 minutes before the end of work, using residual cooling or and stop times, improve equipment load rates, and reduce unit electricity consumption.
heating to maintain indoor temperature.
Strictly control the use of air conditioning: it may only be turned on when the indoor temperature falls
below 10°C in winter or exceeds 28°C in summer. The heating temperature should not be higher than 18°C,
and the cooling temperature should not be lower than 26°C, with fan speed set to low. Air conditioning
and fans are not allowed to run when spaces are unoccupied, and windows should not be opened while
Environmental Compliance Management
the air conditioning is on.
Prohibit unauthorized wiring, replacement of power sources or sockets, and use of high-power electrical Governance
equipment such as electric heaters in office spaces. If such equipment is necessary, approval from the
Administration Department must be obtained. Medicilon places great importance on environmental protection, and strictly complies with national laws and
Prioritize purchasing key electrical equipment or components with energy-saving labels and high quality. regulations including the Environmental Protection Law of the People's Republic of China, the Law of the
Regularly clean air conditioning vents and filters; promptly report faulty electrical facilities, arrange People's Republic of China on the Prevention and Control of Water Pollution, the Law of the People's Republic
centralized maintenance, and monitor the entire process. of China on the Prevention and Control of Atmospheric Pollution, and the Law of the People's Republic of
China on the Prevention and Control of Environmental Pollution by Solid Wastes. The Company has developed
internal management procedures, such as the Water Pollution Control Procedures, Air Pollution Control
Green Laboratory Procedures, and Waste Management Procedures to achieve full-process control over wastewater, waste gas,
and solid waste generated during production and operations, thus ensuring compliance in pollutant
Turn on lights only as needed during experiments, avoiding simultaneous use of general lights and discharge. Through effective measures such as improving the environmental management system, improving
UV-free yellow lights. After work (including overtime work), the last person should turn off all unnecessary pollution prevention facilities, and promoting cleaner production, the Company effectively reduces
lights before leaving. environmental risks, enhances resource efficiency, and deeply integrates environmental protection concepts
Promptly turn off lights, solenoid valves, and control panels when fume hoods are not in use. The fume into daily operations and strategic decisions.
hood glass opening should exceed 15 cm during experimental reactions and not exceed 60 cm during
experiments to reduce energy consumption.
Medicilon has established a three-tier environmental management structure comprising the Board of Description Likelihood Value Chain Financial
Directors, the Chief Executive Officer (CEO), and the Environment, Health, and Safety (EHS) Department, with Risk/ of Risk of Impact Duration Links Priority Impact
Opportunity /Opportunity Occurrence Materiality of Impact Impacted Ranking Description Countermeasures
clearly defined roles and responsibilities at each level, to systematically direct, coordinate, supervise, and Develop emergency
Sudden
inspect environmental protection efforts, thereby facilitating fulfillment of environmental protection plans, strengthen
environmental
real-time monitoring
responsibilities. In addition, the Company focuses on developing a sense of environmental responsibility pollution
and early warning,
incidents during Increase in
Production organize regular drills,
among all employees. Through regular environment-themed learning and advocacy activities, it actively production may Low High Short term Operations Medium operating
Risks and prepare
fosters a culture that values ecology and embraces environmental protection, thus embedding the concept result in costs
emergency supplies to
production halts
of sustainable development into daily operations and establishing it as a shared commitment. During the ensure rapid response
and high repair
and recovery in case of
reporting period, the Company had no penalties for violations of environmental management laws and costs.
incidents.
regulations.
Establish and Maintain a robust
continuously environmental
Organizational Structure for Environmental Management optimize the management and risk
environmental emergency system to
Increase in
Compliance management Operations, ensure compliant
Board of Directors Medium High Long term High operating
Opportunity system to build a downstream operations, and
income
Set the strategic direction for environmental management, green brand organize training on
image and risk prevention and
make environmental management decisions, and review and
enhance market control and emergency
approve environmental management objectives as the highest competitiveness. response capabilities.
decision-making body
CEO
Impact, Risk, and Opportunity Management
Coordinate and oversee the Company’s environmental
protection efforts as the primary responsible person Environmental Risk Prevention and Control
EHS Department Medicilon has developed the Environmental Emergency Risk Assessment Report to systematically identify and
evaluate environmental risks associated with the Company's activities, products, and services. Considering internal
Responsible for daily management and supervision of
and external environments and stakeholder concerns, we identify potential environmental opportunities, and
wastewater, waste gas, solid waste, noise, and other emissions
implement targeted measures to manage risks and seize opportunities, thus promoting the continuous
optimization and effective operation of the environmental management system.
Description Likelihood Value Chain Financial Emergency Response Capacity Building
Risk/ of Risk of Impact Duration Links Priority Impact
Opportunity /Opportunity Occurrence Materiality of Impact Impacted Ranking Description Countermeasures Medicilon strictly follows the laws and regulations, including the Emergency Response Law of the People's Republic
Establish a dynamic
New
regulatory tracking
of China and the Law of the People's Republic of China on Work Safety, and has developed the Emergency Plan for
environmental
mechanism, plan Environmental Incidents and established an Emergency Rescue Command Center responsible for unified
regulations and
environmental
increasingly
protection investments
command and coordination of emergency response for environmental incidents. The Company regularly
Increase in
Regulatory stringent
High Medium Short term Operations Low operating and technology organizes specialized emergency drills, such as drills for hazardous waste leakage. Through simulation learning,
Risks emission
costs upgrades in advance,
standards may
and incorporate them
multi-department coordination, and post-drill evaluation, the Company continuously enhances employees’
lead to higher
into long-term on-site response and collaborated response capabilities, ensuring efficient and orderly response to environmental
compliance
budgets and strategic
costs.
management.
emergencies.
Key Performance Wastewater Management
Medicilon strictly complies with laws, regulations, and local standards, including the Law of the People's Republic
During the reporting period, the Company conducted a total of 1 environmental emergency drill.
of China on the Prevention and Control of Water Pollution, and has established internal procedures such as the
Water Pollution Control Procedures to manage wastewater generation and compliant discharge. Wastewater
generated by the Company mainly includes domestic sewage, laboratory wastewater, animal cleaning wastewater,
Case
and wastewater from purified water preparation. Domestic sewage is discharged into the site’s sewage pipe
Emergency Drill for Hazardous Waste Leakage
network through the sewer system. Laboratory wastewater is collected in a sump and treated using combined
physicochemical and biochemical processes to ensure that effluent quality meets the limits set by Shanghai
On November 6, 2025, Medicilon organized an emergency drill for hazardous waste leakage by Municipal Discharge Standard of Pollutants for Bio-Pharmaceutical Industry (DB31/373-2010) and the Integrated
simulating leakage of hazardous waste from a discarded solvent barrel, aiming to realize rapid, Wastewater Discharge Standard, before ultimately being discharged into the municipal sewage pipe network. The
efficient, and orderly emergency response and minimize losses and environmental impact in Company regularly engages qualified third-party testing agencies to conduct testing and issue testing reports.
case of an environmental emergency. This drill effectively improved the emergency response During the Reporting Period, all wastewater was discharged compliantly.
speed and practical skills of our staff and strengthened inter-departmental coordination.
Indicator Unit 2025
Total Water Emission m3 194,292
Chemical Oxygen Demand (COD) Ton 15.71
Total Nitrogen (TN) Ton 3.01
Five-day Biochemical Oxygen Demand (BOD5) Ton 7.26
Ammonia nitrogen (NH3-N) Ton 1.05
Emergency Drill for Hazardous Waste Leakage
Management of Waste Gas
Cleaner Production Waste gas generated by the Company mainly include volatilized reagents during R&D, exhaust from biosafety
cabinets, animal experiment emissions, dust, and combustion gas from boiler operation. Main pollutants include
To thoroughly implement the Law of the People’s Republic of China on the Promotion of Cleaner Production and the
volatile organic compounds (VOCs), particulate matter, nitrogen oxides, sulfur oxides, etc. We strictly follow laws
Measures on Cleaner Production Audits, Medicilon systematically advances cleaner production audits and
and regulations such as the Law of the People's Republic of China on the Prevention and Control of Atmospheric
management, regarding cleaner production as an important lever for sustainable development. The Company has
Pollution, and have established internal management procedures such as the Air Pollution Control Procedures to
established a dedicated Cleaner Production Audit Leading Group, led by the Vice President of Administration as
regulate waste gas treatment and discharge management. We also engage qualified third-party testing agencies
group leader and the EHS Department Manager as the deputy leader, to coordinate overall work arrangements.
annually to conduct waste gas testing, thereby ensuring compliance in pollutant emissions. During the reporting
In addition, the Company engages external professional organizations to collaborate on cleaner production
period, all waste gas treatment facilities remained in stable, continuous operation. Monitoring results show that all
audits, strictly follows cleaner production audit procedures and standards, and systematically identifies energy
waste gas indicators consistently met national and local emission limits.
conservation and emission reduction potential at each stage of the entire process from planning and organization,
pre-audit, audit, solution generation and screening, to solution implementation. This effectively reduces the
generation of hazardous waste, and successfully promotes the implementation of cleaner production
improvement measures and their result transformation. During the reporting period, the Company successfully
passed the cleaner production audit.
Measures for Waste Gas Management Indicators and Goals Achievements in 2025
Environmental Pollution Incidents: 0 Achieved
Waste Gas rooftop activated carbon adsorption unit for treatment, and finally discharged through Wastewater COD Emissions: < 20 tons Achieved
Wastewater NH?-N Emissions:< 1.5 tons Achieved
Waste Gas + activated carbon” integrated treatment unit for purification, and finally discharged Waste Gas VOCs Emissions:< 1,000 kg Achieved
through 15-meter-high stacks in compliance with standards. Waste Gas PM Emissions:< 10 kg Achieved
Waste Gas NOx Emissions:< 100 kg Achieved
Waste Gas through 15-meter-high stacks in compliance with standards.
Key Performance
To reduce waste gas generated during experimental processes, we implement source-level emission reduction
measures, such as promptly sealing organic solvents after use to prevent prolonged open exposure. We also
During the reporting period, the Company invested RMB
implement process-level emission reduction measures, such as using balloon sealers or installing tail gas conducted 16 environmental protection training sessions, covering 2,646 participants and totaling
treatment devices, and regularly replacing activated carbon adsorption units to prevent fugitive emissions. 5,292 training hours.
Indicator Unit 2025
Total Exhaust Emissions kg 828
Exhaust Gas Emission Intensity kg/ 10,000 yuan 0.0071 Waste Disposal
VOCs kg 755
Particulates kg 4
Governance
Nitrogen Oxides kg 74
Medicilon always places waste management at the core of operational management, and strictly complies with
Indicators and Targets national laws, regulations, and standards such as the Law of the People's Republic of China on the Prevention and
Control of Environmental Pollution by Solid Wastes, the National Catalogue of Hazardous Wastes, and the Standard
To systematically improve environmental performance, Medicilon has set environmental protection targets for for Pollution Control on Hazardous Waste Storage (GB18597-2023). On this basis, the Company has systematically
ecological and environmental protection efforts and achieving continuous progress in environmental System, and Hazardous Waste Reduction and Control Measures, clearly designating the EHS Department as the
management. By the end of the reporting period, all environmental targets had been achieved. responsible department for the collection, storage, and transfer of waste to qualified third-party agencies. In this
way, the Company achieves full-process control from waste generation, classification, and storage to disposal,
aiming to realize the integrated goals of compliant operations, risk prevention and control, and resource
conservation.
Strategy assessment results, the Company develops and implements effective control and optimization measures, thereby
improving resource efficiency, reducing environmental burdens, and providing strong support for sustainable
Description Likelihood Value Chain Financial operations.
Risk/ of Risk of Impact Duration Links Priority Impact
Opportunity /Opportunity Occurrence Materiality of Impact Impacted Ranking Description Countermeasures
Entrusting third
parties with Management Measures
waste disposal Prudently select
Medicilon classifies waste into three main categories: household waste, general waste, and hazardous waste.
carries potential qualified disposal
joint liability units, and reduce Household waste mainly refers to daily waste generated in office areas. General waste includes discarded
risks. If improper associated
equipment, packaging and other materials generated during production and construction. Hazardous waste
disposal by a environmental and
Risks from Increase in
third party leads operational risks from covers waste liquids, contaminated materials, and contaminated solids generated during experimental processes.
Waste Low High Short term Operations High operating
to an improper disposal by
Disposal costs All waste must be sorted and collected and disposed of properly according to regulations.
environmental third parties through
incident, the contractual
Company could obligations, process Waste Disposal Measures
suffer both supervision, and Household Waste
operational and regular audits.
reputational Household waste is collected and placed in designated areas by cleaning staff every day, and then
losses. collected by municipal sanitation authorities;
Leakage of
Improve daily General Waste
hazardous waste
management systems,
during collection After collection and temporary storage, general waste is uniformly handed over to qualified professional
implement
may pose direct
standardized agencies for recycling and disposal (all handover and registration procedures must be completed);
threats to Increase in
Leakage operating procedures
personnel health Low High Short term Operations High operating Hazardous Waste
Risk for collection, storage,
and safety costs
and other stages, and Hazardous waste is temporarily stored in specialized hazardous waste rooms as required after collection,
through contact,
engage qualified
inhalation, or and regularly transferred by qualified agencies for disposal according to regulations.
third-party institutions
secondary
for compliant disposal.
accidents.
Medicilon has been designated as a key environmental supervision entity for hazardous waste in Shanghai. To
Promoting waste
recycling can meet the government's high standards for waste disposal, the Company has set up the EHS Department to
effectively
Reduction Establish a waste manage hazardous waste-related activities, and assigned on-site management personnel, collection personnel,
Opportunities reduce both
in operating recycling system,
from
procurement and warehouse staff to ensure responsibility is assigned to individuals at each stage. During the reporting period,
Operations, costs and implement classified
and disposal High Medium Long term High
Circular downstream increase in recycling and reuse, hazardous waste collection and storage operations remained safe, with no safety incidents, and the overall
costs, optimize
Economy operating and convert waste into
resource operational safety remained under control.
income renewable resources.
efficiency, and
create circular Hazardous Waste Management Measures
economy value.
The Company classifies hazardous waste in strict accordance with the National Catalogue of
Classification Hazardous Wastes, implements standardized storage management, and ensures safety and
Impact, Risk, and Opportunity Management and
Storage compliance throughout the process through specialized facilities, standardized protection
measures, and an electronic labeling system.
Management Process
Medicilon has developed the Waste Disposal Risk/Opportunity Identification and Assessment Checklist to
The inbound/outbound management of hazardous waste strictly follows planned dispatch and
Inbound
systematically identify potential risks and recycling opportunities throughout the entire waste lifecycle, and /Outbound electronic manifest transfer procedures. A full-process closed-loop ledger system enables
management traceable management of the entire process from generation to disposal.
comprehensively assess their impact on the environment, operations, and market competitiveness. Based on the
Indicators and Targets
Source Control: The Company reduces hazardous waste generation and disposal risks through
Reduction meticulous planning, source reduction, strict classification, and compliant packaging reuse in
and Control To continuously reduce hazardous waste generation and ensure compliance in waste disposal, Medicilon sets
accordance with national standards.
management targets for hazardous waste reduction and recycling, and promotes the application of reduction
Experimental Process Control: The Company reduces hazardous waste and promotes compliant
solvent recycling and reuse through operational improvements across the entire experimental technologies such as solvent recycling, to fulfill our environmental protection responsibilities.
process, including experiment design optimization, refined process control, and standardized
post-treatment procedures.
Indicators and Goals Achievements in 2025
Hazardous Waste Generation and
Conduct emergency drills for hazardous waste leakage to train employees’ emergency response Hazardous waste generated in 2025: 3,134.30 tons
Emergency Discharge: < 3,200 tons
capabilities, enhance skills for preventing and handling environmental emergencies, and reduce
Drills
potential harm to the environment.
Indicator Unit 2025
Volume of General Waste Generated Ton 72.85
Culture Construction Disposal Volume of General Waste Ton 72.85
To systematically advance the development of a waste management culture, Medicilon has established a regular Quantity of Hazardous Waste Generated Ton 3,134.30
training mechanism. By regularly organizing specialized training on topics such as the safe use of hazardous Volume of Hazardous Waste Disposed Ton 3,134.30
chemicals, collection and packaging of hazardous waste, and standardized hazardous waste management, the Recycling Rate of General Waste % 44.21%
Company continuously enhances the environmental awareness and sense of responsibility among all employees
Recycling Rate of Hazardous Waste % 1.03%
and deeply embeds environmental protection concepts into daily operations and decision-making processes,
ensuring that relevant training is practical and effective.
Case
Protection of Ecosystem and Biodiversity
Specialized Training on Hazardous Waste Collection and Packaging
Medicilon strictly follows national environmental protection regulations, actively fulfills our corporate
On November 6, 2025, the Company organized specialized responsibilities for ecological protection, and strives to promote biodiversity conservation and improvement of
training on hazardous waste collection and packaging, natural habitats. Upholding the principle of source prevention, the Company requires all new, expansion, and
aiming to standardize the collection and storage procedures renovation projects to undergo environmental impact assessments in accordance with the law, and fully
of laboratory hazardous waste, clarify responsibilities at implements the "three simultaneities" principle，ensuring that environmental protection facilities are designed,
each stage, maintain operational safety, and prevent constructed, and put into operation simultaneously with the main project. During operations, the Company has
pollution incidents. The training systematically covered the established a comprehensive pollutant monitoring system for standardized control over wastewater, waste gas,
roles and responsibilities of collection personnel, Specialized Training on Hazardous solid waste, and noise to ensure that emissions consistently meet required standards. Comprehensive assessments
classification standards for laboratory hazardous waste, and Waste Collection and Packaging
indicate that the Company's business activities and production processes have not caused significant negative
proper collection and storage procedures, with a strong emphasis on safety protection and fire impacts on the local ecosystem. In the early planning stage of projects, the Company proactively avoids ecological
emergency precautions. Through the training, the Company further enhanced employees’ conservation redlines, key wetlands, and other environmentally sensitive zones, minimizing interference with
awareness of standardized operations and risk prevention capabilities. natural ecosystems at the source. The Company explicitly prohibits any activities that may damage vegetation,
cause soil erosion, or disrupt ecological balance, and consistently adheres to a sustainable development path that
harmonizes industrial growth with environmental protection.
Sustainable Supply Chain
and Community
Development
ESG Material Topics Covered in this Chapter
Supply Chain Security
Equal Treatment of Small and Medium-Sized Enterprises
Rural Revitalization
Contribution to Society
Equal Treatment of Small and Medium-Sized Enterprises
SDGs Responded in this Chapter
Strategy
Establishment of
Responsible Supply Chain Type of
Risk/
Description
of Risk
Likelihood Extent
of of
Impact
Impact
on Value
Financial
Countermeasures
Duration Impact
Opportunity /Opportunity Occurrence Impact Chain
Governance Closely monitor changes in
international regulations and
Medicilon primarily provides preclinical CRO services, involving a wide range of suppliers, such as suppliers of prepare strategic reserves in
The Company's raw advance; actively identify and
laboratory animals, reagents, consumables, and equipment. To improve supplier documentation, standardize materials include evaluate biotechnology
Increase in
qualification management, and facilitate subsequent performance evaluations, the Company has established the biotechnology products suppliers from other countries
operating
from the United States, Medium and regions, including local
Regulatory Upstream, costs and
Supplier Documentation Management System, according to which the Procurement Department is responsible for which may pose supply Medium High to suppliers, to reduce reliance
Risks operations decrease in
establishing and maintaining a list of qualified suppliers and regularly updating and retaining supplier qualification chain disruption risks and long term on single sources (especially
operating
compliance review risks U.S. suppliers); and conduct
documents to build a foundational framework for management of all categories of suppliers. revenue
under U.S. biosafety rigorous audits and
regulations assessments of potential
In addition, the Company has developed the Supplier Management System and Supplier Evaluation Standards, suppliers to ensure their
products and services comply
aiming to build a lifecycle management system for suppliers covering classification, admission, daily management,
with biosafety regulations.
assessment, and collaboration adjustments. On this basis, the Company can achieve closed-loop management
Improper supplier In terms of new supplier
throughout the process, maintain a stable and controllable supply chain, and promote collaboration with
selection or ineffective development, prudently
upstream and downstream partners for sustainable operations. management of supplier collect background and
qualifications and qualification information of
admission criteria may new suppliers according to
Supplier Classification Management Increase in
lead to the selection of Upstream, standards, and conduct
Risks Low Medium Short term operating
Based on annual procurement volume and supply importance, suppliers are classified into key suppliers, important suppliers that fail to meet operations on-site assessments of their
costs
suppliers, general suppliers, and potential suppliers. production requirements, quality control and production
or the procurement of processes to ensure they can
Admission of Suppliers materials of inferior quality stably meet the Company's
at excessive prices. production and quality
New suppliers must provide required qualification documents, product trials, or technical evidence. After requirements.
Sup
pli successful trials and approval, small-batch procurement may proceed. Suppliers of GLP- and
er
L
GMP-compliant materials must pass on-site or document audits before admission.
Establish an integrated digital
ife
cy
collaboration platform, break
cle
Daily Management down data silos, and create a
Man
Building a digital supply full-chain data analysis
agement
Suppliers at different levels are required to regularly update their qualification files according to chain can enhance system to support
requirements, ensuring compliance with laws, regulations, and industry standards. collaboration efficiency procurement
Opportunities across the supply chain, Reduction decision-making, thereby
from Digital optimize cost high High Long term Operations in operating improving operational
The Procurement Department conducts regular on-site/qualification audits for suppliers at different levels. Key
Transformation management through costs efficiency and lowering
and important suppliers undergo annual performance evaluations. Scoring is based on dimensions such as
data analysis, achieve operating costs; enable online
corporate management, customer service, quality management, social responsibility, and environmental efficient coordination, and collaboration for the entire
protection, providing an objective assessment of supplier performance. Based on scores, suppliers are classified reduce operational costs. process of supplier admission,
into four grades: A, B, C, and D. management, and exit,
enhancing work efficiency
Supplier Assessment and Grading Management and process transparency.
Suppliers rated as D are deemed unqualified and will be suspended from cooperation. They must complete rectification and
undergo re-evaluation before readmission.
Operation Adjustment
Impact, Risk, and Opportunity Management Key Performance
Medicilon attaches great importance to supply chain sustainability. By establishing the Measures for Supply Chain In 2025, the Company had a total of 1,699 suppliers,
Risk Management and Control, the Company has set quantitative targets around four core dimensions of risk including 17 from Hong Kong, Macao, Taiwan, and foreign countries.
control, operational stability, compliance assurance, and resilience enhancement, clearly defining management
and assessment criteria for all aspects of the supply chain. Additionally, we have established a dynamic adjustment
and regular assessment mechanism to maintain safe, stable, and sustainable operations of the supply chain.
To further strengthen supply chain risk prevention and control and enhance management efficiency, the Company
Promotion of Sustainable Development
has adopted an innovative "R&D-Driven Supplier Selection with Procurement Oversight" model through its SRM of Supply Chain
system. By prioritizing inventory recommendations, we promote material recycling, fully improve procurement
efficiency and lower procurement costs. Furthermore, we use OA system for supplier admission and review to
reduce manual errors, enhance standardized admission, and ultimately achieve full-process control and Integrity-based Supply Chain
traceability from supplier engagement and admission assessment to subsequent material flow.
Based on the Code of Conduct on Corporate Social Responsibility and international standards such as the ISO
Furthermore, the Company emphasizes supply chain resilience. To this end, we have developed the Business
Continuity (Resilience) Plan to identify single-source or high-risk suppliers of key materials, reagents, equipment,
We have developed a series of documents, such as the Statement of Integrity, Anti-Corruption Questionnaire, and
or services, and have established mechanisms to monitor suppliers’ operational status and geographical risks and
Integrity Initiative, which clearly stipulate that all trading parties must adhere to the principles of fair trade. We
regularly assess their business continuity, thereby maintaining a safe and stable supply chain.
oppose all forms of commercial bribery, maintain zero tolerance for corruption, and rigorously combat all types of
corrupt practices.
Indicators and Targets
In addition, we have set up a dedicated hotline and email for reporting integrity issues, encouraging suppliers and
To build a robust integrity and compliance framework and advance the development of a responsible supply
employees to report potential commercial bribery, improper transfer of benefits, and other misconduct. We strictly
chain, the Company explicitly incorporates core requirements such as transparent procurement, environmental
protect whistleblower information in accordance with regulations and offer substantial rewards, fostering a clean
standards, and labor rights protection into cooperation agreements, creating shared values among upstream and
and transparent environment for the supply chain.
downstream partners and promoting the sustainable and coordinated development of the supply chain.
Report phone 021-58591500-8149
Management Indicators Management Targets Achievement
Whistleblowing Email Yijian@medicilon.com.cn
Percentage of Key Suppliers Covered by Integrity Initiative 100% Achieved
Address 585 Chuanda Road, Pudong, Shanghai, China
Percentage of Key Suppliers Covered by Code of Conduct 100% Achieved
Responsible Supply Chain
Medicilon has developed documents such as the Supplier Code of Conduct, the Energy Conservation and Emission
Reduction Initiative, and the Supplier Social Responsibility Survey Report to clearly define suppliers’ compliance Community Public Welfare
obligations in environmental protection, labor and employee rights, occupational health and safety, business
ethics, and management systems. By signing the Annual Cooperation Agreements with suppliers, the Company
incorporates these requirements into binding contractual terms.
Medicilon actively fulfills corporate social responsibilities, and engages in public welfare initiatives such as the
"Public Welfare Festival" to spread goodwill and warmth, contributing to a more harmonious and inclusive society.
Communication with Suppliers
During the reporting period, the Company donated RMB 5 million to the Fudan University Education Development
Foundation for research talent cultivation, fulfilling its corporate social responsibilities.
Medicilon aims to build long-term, stable relationships with suppliers, working together to address market
fluctuations and build a sustainable supply chain. We maintain regular communication with suppliers, and foster
mutual understanding of each other's needs through in-depth communications with suppliers, thereby improving
supply chain responsiveness, enhancing product quality and performance, and achieving mutually beneficial
outcomes.
Equal Treatment of Small and
Medium-Sized Enterprises
Medicilon upholds equal treatment for small and medium-sized enterprises (SMEs), providing them with fair
bidding opportunities and selecting suppliers based on comprehensive evaluations. This approach helps SMEs
integrate into the supply chain by leveraging their own strengths and expand their business channels. During the
reporting period, the Company strictly complied with the payment terms stipulated in contracts with SMEs,
ensuring all due payments were made on time, with no overdue payments.
Employee Development,
Health, and Safety
ESG Material Topics Covered in this Chapter
Employees’ Rights and Interests
Occupational Health and Safety
SDGs Responded in this Chapter
Recruitment Key Performance
Measures
Protection of Employees’ Rights Channels During the Reporting Period
and Interests 02 The Company has established long-term partnerships with Over 20 offline/online recruitment
several "Double First-Class" universities and key science and sessions were held, and more than
On-campus engineering institutions. In 2025, the on-campus recruitment 200 graduates from the class of
recruitment
Governance followed a "offline + online" recruitment model, reaching 2026 were hired.
universities nationwide. The Company offers tailored programs
Medicilon strictly complies with laws and regulations such as the Labor Law of the People's Republic of China and for new graduates, such as the “Rising Star Talent Program” and
the “Management Trainee Program”, solidifying the core talent
the Labor Contract Law of the People's Republic of China, and has established internal policies such as the
reserve through systematic onboarding guidance and rotation
Employee Handbook and the Compilation of Human Resources Management Measures, designating the Human
training.
Resources Department as the functional department for human resource management. In addition, the Company
has built a comprehensive employee governance system to continuously optimize human resource management. 03 The Company upholds the principle of equal employment,
guarantees that all positions are openly available to qualified
During the reporting period, the
Company had 19 staff members
Inclusive candidates throughout the recruitment process, and encourages with disabilities.
The Company adheres to the principles of "open recruitment, internal promotion first, fair competition, job-person recruitment applications from special groups such as veterans and individuals
fit, and merit-based selection”, and carries out recruitment based on the requirements of each position, without with disabilities, striving to create an equal and inclusive work
discrimination based on ethnicity, age, gender, religious belief, political affiliation, or other factors. Candidates are environment without discrimination.
fully evaluated in terms of educational background, work experience, professional skills, personal abilities, and
health status, with the most suitable individuals selected. The Company resolutely prohibits the use of child labor, Strategy
rigorously verifies the age and identity documents of candidates during recruitment to ensure no one under 16 Regarding employees as the core driver of corporate development, Medicilon has established a systematic
years old is employed, and eradicates any form of forced labor. Additionally, the Company has established the mechanism for risk and potential opportunity identification to proactively identify and address potential
Policy on Eliminating Sexual Harassment in the Workplace, forbidding any form of sexual harassment in the employee-related risks, and has developed targeted measures to ensure risks are controlled and opportunities are
workplace, including verbal sexual advances, deliberate touching, and sending sexually explicit messages. During seized.
the reporting period, the Company had no incidents of employee discrimination, harassment, child labor, or forced
Value
labor. Type of Description Probability Extent Duration Chain Potential
Risk/ of Risk of of of Links Priority Financial
Opportunity /Opportunity Occurrence Impact Impact Impacted Ranking Impact Countermeasures
To build a diverse and high-quality talent pipeline, the Company has developed the Measures for Recruitment and
During employment,
Deployment Management and established a multi-channel recruitment system that integrates online and offline failure to update 1.Regularly review and adjust
internal policies and internal management policies
platforms to access multiple talent pools efficiently.
procedures in line with and operating procedures to
the latest labor, social ensure full compliance
insurance, or taxation throughout the employment
Recruitment Key Performance regulations, or process.
Measures insufficient 2.Conduct regular internal
Channels During the Reporting Period Policy and Increase in
justification or Short audits of employment
Legal Low Medium Operations Medium operating
incomplete term compliance to promptly
costs
through mainstream recruitment platforms, internal referrals, and to senior-level technical and employee departures, policy implementation and
Social may lead to labor operational procedures;
executive search partnerships. During the reporting period, to managerial professionals were
recruitment disputes or arbitration, organize compliance training
support business expansion and internationalization efforts, the recruited.
exposing the for management to enhance
Company successfully recruited senior management, including Company to litigation practical skills in lawful
the Chief Operating Officer and Chief Strategy Officer, or administrative employment.
strengthening the core talent pipeline. penalties.
Value Employee Benefits
Type of Description Probability Extent Duration Chain Potential
Risk/ of Risk of of of Links Priority Financial
Opportunity /Opportunity Occurrence Impact Impact Impacted Ranking Impact Countermeasures Medicilon provides a diverse benefits package for all employees. On one hand, we satisfy employees’ short-term
rights protection framework,
allowances, and holiday benefits. On the other hand, we develop a new restricted stock incentive plan for core and
optimize core policies
concerning compensation and key employees, which aligns long-term employee interests closely with corporate value, thereby effectively
A robust employee
benefits, occupational health,
rights protection enhancing employee belonging and cohesion. Additionally, we encourage employees to maintain a healthy
and career development based
system can create a
on job characteristics, and work-life balance. Departments are permitted to organize team-building activities based on their operational
differentiated
introduce special talent
competitive needs and business characteristics to foster a harmonious and inclusive work environment.
incentives and career
advantage in talent
Reduction advancement tracks to boost
acquisition, attract Medium
Operational in talent attraction and foster a
top-tier R&D and Medium Medium to long Operations Medium
Opportunities operating sense of belonging. Case
technical talent, term
costs 2. Establish a communication
enhance employee
and feedback mechanism for
belonging and loyalty, Annual Awards Ceremony
employee rights protection,
reduce turnover of
conduct regular satisfaction
core R&D personnel,
surveys, refine policies based In February 2025, the Company held the 2024 Annual Awards
and stabilize the talent
on employee feedback,
pipeline. Ceremony, presenting 28 awards such as Outstanding
facilitate effective
implementation of rights Employee, Outstanding Team, and Innovation Project Awards.
protection measures, and
These awards spanned individual, team, and project
stabilize the talent pipeline.
achievements, reinforcing performance orientation and value
guidance. Dr. Chen Chunlin, Chairman of the Board, delivered a
Impact, Risk, and Opportunity Management
keynote address, reviewing the business performance in 2024
Medicilon has established systematic risk and opportunity management procedures. We identify potential risks and outlining strategic priorities for 2025. The ceremony was
and opportunities in areas such as labor relations, occupational health and safety, diversity and inclusion, and live-streamed in real time to the U.S. branch, overcoming
compensation and benefits through multiple communication channels with employees and employee satisfaction geographical barriers and enabling cloud-based interaction
surveys. Furthermore, we prioritize risks based on their likelihood and severity and develop targeted strategies and between China and U.S. Teams. This demonstrates the
improvement plans, assigning responsible departments and allocating resources accordingly. Employee rights are organizational cohesion under the global governance structure.
integrated into the risk management framework, and management effectiveness is dynamically evaluated and
continuously improved to ensure that employee-related risks are effectively controlled, while opportunities
brought by human capital development are seized to support sustainable growth.
Employee Compensation
Adhering to the three core principles of external competitiveness, internal fairness, and performance orientation,
Medicilon has established a robust employee compensation management system. Employee compensation
consists of base salary, performance bonuses, and other components, which are paid in full on a monthly basis.
The Company evaluates and reviews employee compensation levels based on factors such as operating
performance, business environment, inflation, market salary trends, and employee contributions every year, Preclinical Research Division – Outdoor Team Building at Wuxi Nianhua Bay
ensuring that the compensation system remains competitive and effective in incentivizing employees.
Performance Appraisal Care for Employee
Medicilon has established a robust performance management system, implementing quarterly and annual
To fulfill its corporate social responsibility and build a robust employee support system, each division allocates
evaluations based on three dimensions: work performance, skills, and attitude. The evaluation process follows a
dedicated funds primarily for visiting and providing assistance to employees who are hospitalized due to illness
three-tiered approach: self-assessment, immediate supervisor review, and final review by the department head.
and offering support for employees in financial difficulty.
Performance outcomes are categorized into five levels and directly linked to performance bonuses, compensation
adjustments, promotions, and capability development, aiming to drive continuous improvement in both individual
Indicators and Targets
and corporate performance through a goal-oriented approach.
Medicilon conducts annual employee satisfaction surveys covering areas such as work value realization, skill
Grievance Mechanism
utilization, career development, work environment, and management incentives. For issues frequently raised by
Placing great importance on employee feedback and grievances, Medicilon has established a dedicated online employees, we conduct root cause analysis, develop targeted improvement measures, and share both the survey
appeal platform and an offline “anonymous suggestion box”, supported by standardized handling procedures to results and improvement plans with employees, demonstrating our attention to employee concerns and
ensure that employee complaints are addressed promptly and fairly, thereby safeguarding employee rights and encouraging staff participation in management optimization.
interests. Any employee who disagrees with performance evaluation results and fails to resolve the issue with the
evaluator can file an appeal within the specified period, either by escalating to the evaluator’s superior or
Targets Achievements in 2025
submitting a formal appeal to the Human Resources Department. Upon receiving an appeal, the Human
Signing Rate of Employment Contracts:100% Achieved
Resources Department coordinates with the employee’s department head or responsible leader to review the
Social Insurance Coverage Rate: 100% Achieved
evaluation results, safeguarding fairness and accuracy in performance evaluations.
Protection of Women's Rights and Interests Key Performance
Medicilon places great emphasis on female employee rights, strictly complies with laws and regulations such as During the reporting period, the Company had a total of 2,504 employees, including 19 persons with
the Law of the People's Republic of China on the Protection of Rights and Interests of Women, upholds the disabilities; the turnover rate was 22.87%; and 869 new employees were hired.
principle of equal pay for equal work, and provides dedicated leave benefits such as maternity leave and
menstrual leave for female employees, fully safeguarding the welfare and rights of female employees during
pregnancy, childbirth, and breastfeeding. 3.12%
The Company also attaches great importance to the occupational health protection for female employees. To this 1,234 214 78
end, we take multiple measures: restricting female employees from work that is prohibited under national 33.99%
regulations; providing training on occupational safety and health for female employees; investing in facilities such 851
By Gender By Educational
as rest rooms for pregnant employees and nursing rooms to improve working conditions; and organizing regular By Age
Background
health check-ups for female employees, such as gynecological examinations, breast disease screenings, and other 60.10%
specialized check-ups.
Key Performance Female Under 30 (exclusive) Years Old Below associate degree
Male
During the reporting period, the Company had
Bachelor’s Degree
reached 100%. 60 Years Old or Above Doctoral Degree
Employee Training and Development
New Employee
Mentoring
Employee Training Mechanism One-on-One Coaching: Establish a mentoring partnership system, pairing each new
employee with a mentor for regular one-on-one communication. In the early stages of
Adhering to a people-oriented philosophy, Medicilon has established the Employee Training Management System employment, face-to-face meetings are conducted on a weekly basis to discuss work
with a focus on both job requirements and career development pathways, and has developed a tiered and progress, challenges, and solutions. Mentors provide targeted feedback and guidance to
categorized training system, systematically advancing talent pipeline development and laying a solid foundation help new employees correct errors and improve job performance.
for sustainable growth. In addition, the Company has improved its full-process internal trainer management Hands-On Guidance: Implement a hands-on mentoring model, where mentors engage
system and established diverse incentive mechanisms to activate internal trainers' potential, thereby promoting new employees in actual project work while providing full-process operational guidance.
talent development and knowledge accumulation. Furthermore, the Company has built an online learning Team Collaboration Support: Mentors help new employees integrate into teams and
platform, aiming to provide convenient and efficient learning support to all employees through diverse training participate in project discussions and team-building activities to establish a foundation
formats. for effective communication and collaboration with team members. Mentors also
systematically introduce team roles, work processes and collaboration workflows,
Key Performance helping new employees quickly adapt to teams and strengthen their teamwork
During the reporting period, the Company invested RMB 300,000 in employee training, covering a total of awareness.
Training
Programs
Sprout Program: Designed for new graduates in organic synthesis positions.
Spring Bud Program: Designed for team leaders.
Elite Program: Designed for managers and directors, focusing on leadership
development and strategic thinking to effectively enhance management capabilities.
R&D Encyclopedia: Learning of synthetic expertise and name reactions for R&D
personnel, aimed at broadening and deepening professional knowledge. Online Learning Platform
Case Study: In-depth analysis of classic cases, enabling R&D staff to explore both project
specifics and underlying scientific principles, thereby enhancing professional
competence.
Industry
-University
-Research
Cooperation Medicilon has entered into a strategic cooperation agreement with Shanghai University
to jointly train graduate students in pharmacy, targeting employees with undergraduate Training Photos
degrees in pharmacy or related fields.
Employee Development Dual-Track Talent Development System
Medicilon has established a Talent Assessment Committee led by the CEO, who is responsible for overseeing all Management Track Professional Track
talent assessment activities. The Committee holds regular meetings to establish a dynamic tracking mechanism for
Senior Management Senior Expert
talent inventory and talent pipeline development, and conducts comprehensive reviews and discussions on the
progress of quarterly talent assessments.
Professional Management Middle Management Expert
All-round
Track talent Track
In alignment with strategic planning and business development goals, the Company assesses the requirements
Primary Management Backbone Staff
for talent quantity and quality across business units and projects. Based on current talent profiles and future
demand projections, the Company has built a multi-level talent pipeline system, developed succession plans for
Experienced
key and critical positions, and defined talent reserve targets and development directions. The Human Resources
Department organizes 360-degree reviews for executive promotions, establishes a talent evaluation system, and Beginner
optimizes the performance review process. Based on past operational challenges, the Company has developed
Democratic Governance
the Handbook for Performance Empowerment of Business Managers, conducting regular face-to-face
performance feedback sessions with employees to promote clear talent pipeline development, guide employees’ Medicilon has established an Employee Congress according to law, and created a legitimate and effective
career development paths, and motivate employees’ self-improvement and growth. platform for safeguarding employee rights and interests in line with the principle of democratic centralism.
Through participation in the development and review of company policies, employees' legitimate rights
The Company has established a dual-track career development system comprising a management track and a concerning compensation, benefits, labor safety, and other aspects are effectively protected. The Company
professional/technical track, providing clear promotion criteria for employees at all levels. Promotion reviews are regularly holds employee forums to establish a two-way interactive communication platform between
conducted through annual assessments, performance presentations, and multi-source evaluations, considering management and employees. Relying on the platform, the Company listens to employee concerns, gathers
performance, capabilities, values, and potential. The Company has also developed the Individual Development constructive suggestions, strengthens internal collaboration, and fosters team cohesion.
Plans (IDPs) which assign mentors to core employees for regular one-on-one guidance, aiming to accelerate the
growth of core employees. Case
Second Meeting of the Employee Congress in 2025
Career
Description
Development Channel
On April 20, 2025, Medicilon convened the Second Meeting of the Employee Congress in 2025
Focus on developing team leadership and comprehensive management capabilities, with a to seek feedback from employee representatives on the 2025 Employee Stock Ownership Plan.
promotion path as follows: core staff → junior manager → middle manager → senior manager. The meeting reviewed and approved the draft plan and its summary. The plan complies with
Management Track
multi-departmental regulations and adheres to principles of legal compliance and voluntary
participation. It is conducive to establishing a profit-sharing mechanism, enhancing employee
Focus on enhancing technical expertise and specialist influence, with a promotion path as
cohesion, and supporting the Company’s sustainable development.
follows: assistant researcher → researcher → senior researcher → chief scientist/expert.
Professional Track
Occupational Health and Safety
Governance
Work safety Biosafety
Medicilon strictly complies with the Work Safety Law of the People's Republic of China, the Fire Protection Law Medicilon strictly complies with the Biosafety Law of the People's Republic of China, the Regulations on the
of the People's Republic of China, and the Law of the People’s Republic of China on the Prevention and Control Biosafety Management of Pathogenic Microorganism Laboratories, the General Requirements for Laboratory
of Occupational Diseases. We have established a Work Safety Committee and developed internal policies such as Biosafety, and other applicable laws, regulations, and standards. The Company clearly defines laboratory
the All-Employee Work Safety Responsibility Management System and the Occupational Disease Prevention biosafety levels, conducts experiments involving pathogenic microorganisms only within permitted scopes, and
Responsibility System, clarifying safety responsibilities for all positions. Furthermore, we implement a "dual prohibits the development or application of biotechnology that may harm public health or ecological safety.
responsibility" system to fulfill the primary responsibility for work safety and safeguard employees' lives and health. During the reporting period, the Company had no significant violations related to biosafety.
Our safety assessments follow the principle of “exemption for due diligence and accountability for dereliction”. We
The Company has developed a Biosafety Manual and 11 core SOPs, which clearly specify requirements for key
set safety targets for all levels, and implement a reward and penalty system tied to employee performance, where
areas such as personnel management, facility maintenance, strain preservation, and waste disposal, establishing
rewards or penalties are determined based on the fulfillment of responsibilities.
a full-process biosafety risk management and control system. In addition, the Company has established a
Biosafety Committee and specialized working groups to oversee the full lifecycle of pathogenic microorganisms—
Occupational Disease Hazards
covering procurement, use, and disposal—across all relevant scenarios, including laboratories and cell culture
To prevent occupational disease hazards, Medicilon established an occupational health management body within
rooms. The Company has also established employee health monitoring and occupational exposure emergency
the EHS Department during the reporting period. This body is responsible for the daily occupational health
response procedures, and regularly conducts biosafety inspections and emergency drills to ensure personnel
management, including developing occupational disease prevention plans, policies, and operating procedures;
safety and experimental compliance.
organizing occupational health examinations and maintaining health records for employees; conducting
monitoring and evaluation of occupational disease hazards and publishing the results; organizing occupational Decision-Making and Oversight Level
health education and training; and fulfilling other legal requirements related to occupational health.
Board of Directors
During the reporting period, the Company advanced the digitalization of occupational health and safety
Management Level
management by installing alarm systems for toxic and hazardous gases, oxygen concentration, and emergency
Safety Production Committee Biosafety Committee
ventilation. This enabled real-time monitoring and early warning of environmental risks, effectively enhancing
safety management efficiency. Additionally, several occupational health and safety managers participated in the Execution Level
Execution Group
annual continuing education and training on occupational health organized by the Shanghai Institute of
Occupational Disease for Chemical Industry, and obtained relevant certificates, which effectively enhanced their Office of Work Safety Committee Working Group
professional competence and practical skills.
EHS Department, Preclinical Research Division, Facility Operations Department,
Administration Department, Procurement Department, etc.
Work Safety Management Structure
Strategy
Placing great emphasis on identification of occupational health and safety risks, Medicilon has developed the Value
Description Probability Extent Duration Chain Potential
Occupational Health and Safety Risk/Opportunity Identification and Assessment Checklist to systematically identify, Type of Risk of Risk of of of Links Priority Financial
/Opportunity /Opportunity Occurrence Impact Impact Impacted Ranking Impact Countermeasures
analyze, and evaluate relevant risks and opportunities, assess their impact on our business, strategy, and finances, as well
The introduction of
as future trends, and develop targeted response measures. digital safety
management systems,
Value such as alarm systems
Description Probability Extent Duration Chain Potential for toxic and
Type of Risk of Risk of of of Links Priority Financial
hazardous gases,
/Opportunity /Opportunity Occurrence Impact Impact Impacted Ranking Impact Countermeasures
oxygen concentration, Install intelligent radiation dose
and emergency sensors, toxic and hazardous
compliant office and
ventilation, enables gas sensors, and oxygen
production equipment;
real-time monitoring concentration sensors in key
prohibit unauthorized wiring; Reduction
and automatic early areas such as radiation zones,
use dedicated sockets for Technological Long in
high-power appliances; Opportunities term operating
non-compliant e.g., electric shock, and laboratories, so that data
conduct regular inspections costs
electrical equipment, radiation, chemical can be uploaded in real time to
and replace hazardous
unauthorized wiring, hazards, fire, and the management system,
electrical equipment; perform
or improper use of explosion. This triggering automatic alerts
regular maintenance by
high-power electrical enhances the when thresholds are exceeded.
qualified professionals.
appliances may lead accuracy of risk
Increase in 2. Chemical and Fire Safety:
Work Safety to electric shocks or Short identification and
Low Medium Operations Medium operating Store chemicals by category in
Risks casualties. term response efficiency,
costs dedicated cabinets equipped
with ventilation, fireproofing,
chemicals, heat costs and potential
and explosion-proof facilities;
sources near safety hazards.
offer three-tier pre-job safety
flammable materials,
training and annual continuing
or low fire safety
awareness may lead
education for employees; Impact, Risk, and Opportunity Management
develop emergency plans and
to fires or explosions.
organize drills; organize Detection of Occupational Hazard Factors
training on fire extinguisher
use and fire safety knowledge Medicilon regularly engages third-party agencies to conduct thorough identification and monitoring of existing
to enhance fire emergency
occupational hazards and issue the Occupational Hazard Monitoring Report to ensure that all hazards are
response skills.
Provide employees with personal agencies to conduct occupational hazard assessments and issue the Occupational Hazard Control Report to
protective equipment and
require them to wear the identify risk points and provide targeted recommendations. These measures help prevent and control
equipment as required; engage occupational hazards in the working environment, thereby safeguarding employees’ health and legitimate rights.
storage of hazardous
third-party technical service
chemicals, or failure to
providers to conduct regular By the end of the reporting period, the Company reported no new cases of occupational diseases.
wear required
monitoring of occupational
personal protective
equipment, may cause
disease hazards; post safety Type Occupational Disease Hazards
Increase in warning signs on site.
Occupational acute poisoning, Short Pentane, dichloromethane, ethyl acetate, methanol, acetonitrile, acetone, N, N-dimethylformamide,
Low Medium Operations Medium operating 2. Isotope Laboratory Protection:
Health Risk chemical burns, term methyl tert-butyl ether, tetrahydrofuran, hydrochloric acid, acetic acid, n-hexane, ethyl ether,
costs Develop regulations and
asphyxiation, etc.
operating procedures such as Chemical hydrogen peroxide, ammonia oxides, nitric acid, sodium borohydride, potassium hydroxide,
the Safe Operating Procedures Factors hydrogen, carbon dioxide, argon, helium, ethylene, carbon monoxide, nitrogen oxides, hydrogen
regulations in
for Isotope Laboratories;
isotope-related sulfide, ammonia, formaldehyde, isopropanol, phosphoric acid, formic acid, chloroform, phenol,
maintain records of safety
operations may lead n-butanol, sodium hydroxide, and bedding dust
education and training; develop
to radiation exposure.
radiation-related emergency Physical
Microwave radiation, high/low temperature, and noise
plans; ensure isotope operators Factors
are trained and certified before
taking up their posts. Other Factors Mechanical Injury
Occupational Hazard Prevention Measures
Case
Medicilon has established internal policies including the Management System for Protective Equipment for
Occupational Diseases, the Maintenance and Repair System for Occupational Hazard Control Facilities, and the
Continuing Education and Training on Occupational Health
Occupational Hazard Warning and Notification System. For workplaces with occupational hazards, the Company
actively takes protective measures to control occupational hazards, and organizes occupational health training for In November 2025, in strict compliance with the Law of the People’s Republic of China on the
relevant employees to enhance their self-protection awareness and prevent occupational diseases among Prevention and Control of Occupational Diseases, the Company organized annual continuing
production staff. Additionally, the Company adopts a top-down mental health promotion strategy. In 2025, a education and training on occupational health for employees directly exposed to occupational
specialized program on "Employees’ Mental Health Care Capability" was launched for mid-to-senior-level hazards. The training covered occupational health knowledge and emergency response
managers. Through systematic training, 62 managers, including all department heads, acquired skills for measures for occupational hazards, enhancing employees' awareness of self-protection and
identifying employees’ mental health status, communication techniques, and preliminary intervention strategies, emergency response capabilities.
significantly enhancing management’s ability to support mental health of employees.
Occupational Hazard Prevention Measures
Emergency Management
Set standardized warning signs in prominent locations at workplaces, workstations, equipment, Adhering to the principle of “putting people first, prioritizing prevention, and ensuring a rapid response”, the
Notification and storage areas where occupational hazards exist; and provide occupational hazard cards Company has developed the Emergency Plan for Work Safety Incidents, improving its emergency management
of indicating hazards and protective measures for high-risk posts. system. The plan clarifies emergency response procedures, rescue measures, and responsible personnel, and
Health Risk Standardize the placement of warning signs and bulletin boards, regularly inspect and maintain enables hierarchical control for emergencies. For different types of incidents such as fires, electric shocks, and
them, promptly update monitoring results and process changes, and maintain records. chemical spills, the Company has developed specific emergency plans and response measures. These effectively
enhance the ability to respond quickly and scientifically to safety incidents, minimize impacts and losses, safeguard
employees’ life safety and maintain stable operations of the Company.
Provide employees with personal protective equipment for occupational diseases that meets
national occupational health standards, instruct and supervise employees to properly wear the The Company conducts regular emergency drills to strengthen employees' emergency response and rescue skills,
equipment; define the replacement cycles, conduct proper maintenance, and prohibit expired or and continuously optimizes emergency plans based on drill results to ensure their practicality and relevance.
Prevention
substandard equipment. During the Reporting Period, the Company conducted 1 emergency drill.
of
Require employees to properly wear protective equipment before entering laboratories, which is
Occupational Chief Commander
monitored by the EHS Department.
Diseases
Regularly or irregularly inspect, repair, and maintain protective equipment, and conduct annual On-site Commander
comprehensive evaluations of their performance in controlling occupational hazards; provide
training on the proper use of protective equipment for employees.
Emergency Alert Medical Communication Logistics
Rescue Group Evacuation Group Rescue Group Liaison Group Support Group
Organize regular occupational health examinations based on exposure to occupational hazards
Occupational
and maintain occupational health records for ongoing monitoring. In 2025, 1,684 employees Organizational Structure for Emergency Response
Disease
participated in occupational health examinations, solidifying the foundation for occupational
Checkup
health protection.
Case
Key Performance
Fire Emergency Drill During the reporting period, the Company invested RMB 3.73 million in work safety. The detection coverage of
On November 24, 2025, the Company organized a occupational hazards in workplaces was 100%, the coverage of occupational health examination for
fire evacuation and suppression drill simulating a employees was 100%, and no acute occupational disease incidents occurred.
sudden fire. The drill included orderly evacuation
and fire suppression exercises, and clarified
Work Safety Management Measures
evacuation restrictions and reporting procedures for
individuals with special needs. Following the drill, a
Safety Accident Management
Fire Emergency Drill
debriefing was conducted to review lessons learned
and continuously improve the emergency plan. The drill effectively enhanced company-wide fire Medicilon has established the Incident Management System, which defines incident classification standards,
safety awareness and strengthened the ability to respond to fire emergencies. standardizes procedures for handling, reporting, and investigation, and clarifies the responsibilities of all parties.
Following the principle of "Four No Exceptions", the Company takes corrective actions, supported by rewards and
penalties, to improve the work safety system and prevent accidents.
Inspection of Potential Hazards Accident Handling Procedure
Medicilon has established the Safety Inspection and Hazard Identification and Management System and created a Immediate Response Emergency Escalation Investigation, Analysis,
Written Report
and Reporting and Scene Control and Corrective Actions
long-term mechanism for identifying and managing safety hazards. This system defines hazard classification
Immediately after an The EHS Department After the accident is Based on the complexity
standards, identification scope and frequency, and responsibilities at each level. Through a combination of
accident, the individual provides intervention resolved, the individual of the accident, the EHS
company-level, departmental, routine, and specialized inspections, the Company systematically carries out hazard
involved or on-site staff and support. Leaders at involved must submit a Department sets up an
identification and management to safeguard employees’ life and property safety and maintain stable and orderly initiate initial emergency various levels report the written initial incident investigation team. With
operation of the Company. During the reporting period, a total of 35 typical hazards were identified, with a response, and report to accident details truthfully report to the EHS support from technical
their direct supervisors level by level according Department within 1 departments, the team
rectification rate of 100%.
and the EHS to severity of the working day (excluding thoroughly analyzes the
Department within 1 accident, while the day of the causes, prepares an
Indicators and Targets
hour via multiple organizing further accident). investigation report,
The Company formulated the 2025 Occupational Disease Prevention Plan and Implementation Plan, setting work channels (face-to-face, emergency response to develops preventive and
phone, WeChat, email, prevent escalation and corrective measures, and
safety targets to provide clear guidance for safety management. Through multiple measures such as occupational
etc.). preserving the scene. urges responsible
health monitoring, hazard detection, facility maintenance, and specialized training, supported by dedicated funds departments to
and departmental collaboration, the Company has built a comprehensive occupational health and safety implement corrective
actions within specified
framework, aiming to achieve work safety targets and protect employee health and safety.
timeframe.
Targets Achievements in 2025
Training and Culture Development
No new suspected or confirmed occupational disease cases in 2025 Achieved
Medicilon has established the Safety Education and Training Management System and the Occupational Disease
Occupational health examination rate for employees exposed to occupational hazards: 100% Achieved
Prevention Publicity and Training System, and created a safety training system that integrates internal and external
Completion rate of "three simultaneities" for occupational health in existing construction projects: 100% Achieved
training. This system covers all employees and external personnel, defines training hours and assessment
Integrity rate of occupational hazard prevention and emergency rescue facilities: ≥95% Achieved
standards, and maintains standardized training records, thus enhancing safety awareness and practical skills to
Percentage of employees participating in on-the-job occupational health training: 100% Achieved
prevent accidents.
The Company offers a three-level safety education and training program for new employees and provides regular Key Performance
refresher training on work safety and occupational health for current employees at the end of each year.
Additionally, the Company offers annual online training for all employees, covering zoonotic disease knowledge
During the reporting period, the Company conducted 25 occupational health and safety training sessions, with
and protection, environmental health and safety, occupational health, etc. During the reporting period, the a total of 1,540 participants and 12,000 training hours.
Company conducted four biosafety training sessions, covering topics such as development of biosafety
laboratories, regulatory frameworks and internal SOPs, fundamental knowledge (including concepts, labeling, and
protection levels), occupational protection and operating procedures, and management of personnel, materials, Management of Hazardous Chemicals
and animals in Level 2 laboratories.
Medicilon places great emphasis on hazardous chemicals management, and strictly complies with laws and
regulations such as the Work Safety Law of the People's Republic of China, the Regulations on the Safety
Case Management of Hazardous Chemicals, the Regulations on the Administration of Precursor Chemicals, and the
Regulations of the People's Republic of China on the Administration of Controlled Chemicals. The Company has
developed multiple policies, including the Management Regulations on the Use and Storage of Laboratory
Annual Occupational Health Training
Chemicals, the Regulations on Rewards and Penalties for Laboratory EHS and 5S Management, and the
In 2025, the EHS Department conducted annual occupational health training, integrating Management System for Controlled Chemicals. In addition, the Company has established a Controlled Chemicals
theoretical knowledge with practical skills. In terms of compliance, the training provided Management Committee and built a risk prevention and control system for controlled chemicals covering the
systematical explanation on occupational health laws and regulations, and occupational entire lifecycle, including procurement, transportation, storage, use, disposal, and data reporting. The Company
disease classification and health monitoring requirements. In terms of protection skills, the implements lifecycle management of controlled chemicals, adheres to the "five-double" management principle,
training provided detailed instruction on the proper use of personal protective equipment such and strictly follows legal and regulatory requirements for obtaining controlled chemical permits, striving to prevent
as masks and respirators. In terms of emergency response, the training included drills on first incidents related to hazardous chemicals.
aid for typical scenarios such as acute poisoning, chemical burns, and heatstroke. The training
greatly enhanced employees' awareness of occupational health protection and operational Management of Related Parties
skills.
Medicilon has established policies such as the External Contractor Safety Management System and built a
stakeholder safety management system, which clearly defines the safety responsibilities of internal functional
departments and external contractors, covering the entire process from qualification review, onboarding training,
on-site supervision, to performance evaluation and elimination. Contractors are required to pass qualification
review and safety training assessments before entering the site, and to sign a Letter of Safety Commitment,
pledging strict compliance with safety management regulations, operating procedures, and reward and penalty
rules, clarifying responsibilities and mitigating safety risks associated with stakeholders.
Annual Occupational Health Training
Future Prospects
Aligned with the global trend of innovation in the biopharmaceutical industry and high-quality industry Maximizing Social Value and Empowering the Industry Chain and
development, Medicilon will anchor its core strategy as "innovation-driven, compliance-led, Talent Development
sustainability-empowered", deeply integrating ESG principles into its business strategy. Leveraging its full-chain
preclinical CRO service advantages, the Company will continue to create comprehensive economic, social, and With talent as the foundation of development, Medicilon aims to enhance its social value creation while fostering
environmental value while strengthening its market position, contributing to the green innovation and international synergistic collaboration across the industry chain to achieve mutual benefits. The Company will strengthen its
advancement of the pharmaceutical industry. talent-driven strategy to attract high-caliber R&D and management professionals from around the world, and will
enhance its highly educated talent pipeline and incentive training system to foster mutual growth with its
Strengthening Core Business While Building Compliance and Technical Barriers employees. Relying on service models such as FTE, INT, and FFS, the Company will deliver efficient services to
clients globally, accelerating the development of innovative and urgently needed drugs. By improving the
Focusing on the entire preclinical drug R&D process, Medicilon builds its core barriers through technological
innovation ecosystem jointly with upstream and downstream partners, the Company will contribute to the
innovation and compliance, and continuously strengthens its integrated service capabilities. The Company will
international advancement of China’s pharmaceutical industry.
accelerate the laboratory expansion of the Nanhui site, improve the full-chain technology platform based on
existing R&D facilities and GLP laboratories, and steadily increase the penetration rate of projects filed with both
Looking ahead, Medicilon will continue to uphold its core values of “Innovation First, Collaboration, Client-centric
Chinese and U.S. regulatory authorities according to international standards and data compliance requirements. In
Excellence, and Unwavering Dedication”. By deeply integrating ESG principles with its business strategy and
addition, the Company will deepen the application of AI technologies in drug R&D, iteratively optimize its AI-driven
consistently driving progress across its three core dimensions, the Company strives to become a globally trusted
drug discovery platform, and build specialized technology systems focused on high-demand drug areas to
preclinical CRO, accelerate innovative drug translation, empower the high-quality development of the
precisely meet global R&D demands through differentiated strengths.
pharmaceutical industry, and deliver long-term value for all stakeholders.
Fulfilling Environmental Responsibility and Building a Green R&D System
Guided by the principle of green R&D, Medicilon will continue to advance process optimization and environmental
management through its Green Chemistry Process Research Platform. The Company will focus on process
development and research, systematically optimize process parameters, and develop green, high-efficiency, and
cost-effective production processes, thus reducing raw material consumption and environmental impact while
enhancing R&D efficiency. Additionally, the Company will continuously improve full-process environmental
management measures, strengthen integrated control over pollutants, waste, energy, and water resources,
optimize energy and resource efficiency, and standardize waste disposal. Through technological innovation and
refined management, the Company will empower green R&D and support the low-carbon, sustainable
development of the pharmaceutical R&D industry.
Indicator Name Unit 2023 2024 2025
Appendix
Waste Gas Emission
Total Exhaust Emissions kg / 2,266.90 828
Exhaust Gas Emission Intensity kg/10,000 yuan / 0.02 0.0071
Nitrogen Oxide (NOx) Emission kg / 94.50 74
Volatile Organic Compounds (VOCs) Emission kg / 2,167 755
Key Performance Form Particulate Matter (PM) Emission kg / 5.40 4
Wastewater Discharge
Industrial Wastewater Discharge m3 / 140,085 164,792
/
Economic Performance Domestic Sewage Discharge m3 27,500 29,500
Chemical Oxygen Demand (COD) Emissions Ton / 13.85 15.71
Total Nitrogen (TN) Ton / 2.48 3.01
Indicator Name Unit 2023 2024 2025 Ammonia Nitrogen (NH3-N) Emission Ton / 0.91 1.05
Five-day Biochemical Oxygen Demand (BOD5) Ton / 6.78 7.26
Total Assets RMB 10,000 326,584.75 282,325.97 262,207.31
Operating Revenue RMB 10,000 136,563.09 103,774.57 116,306.25 Waste management
Net Assets Attributable to Shareholders RMB 10,000 251,077.94 214,015.72 193,422.01 Total Waste Generation Ton / 2,942.60 3,207.15
Volume of Hazardous Waste Generated Ton / 2,887.72 3,134.30
Intensity of Hazardous Waste Ton/10,000 yuan / 0.0278 0.0276
Volume of non-hazardous waste generated Ton 45.5 54.88 72.85
Environmental Performance2
Intensity of Non-Hazardous Waste Ton/10,000 yuan 0.0003 0.0005 0.0006
Indicator Name Unit 2023 2024 2025
Environmental Compliance Management
Social Performance
Total Investment in Environmental Protection RMB 10,000 1,210.17 1,592.64 1,444.66
Coverage Rate of Training on Environmental
% 100 100 100 Indicator Name Unit 2023 2024 2025
Protection
Innovation in Scientific Research and Technology
Non-compliance Events Concerning
Case 0 0 0 RMB 10,000 12,238.94 9,672.90 10,441.28
Environmental Protection Investment in R&D
GHG Emission Management Percentage of R&D Investment In Operating Revenue % 8.96 9.32 8.98
Number of R&D Personnel Person 2,235 2,029 2,215
Total GHG Emissions tCO2e 27,637.12 28,011.77 27,899.10
GHG emissions intensity tCO2e /10,000 yuan 0.20 0.27 0.24 Doctoral Degree Person 62 64 67
Educational
Direct GHG Emissions (Scope 1) tCO2e 3,623.40 3,470.53 3,333.59 Master’s Degree Person 631 557 534
Background
Indirect GHG Emissions (Scope 2) tCO2e 24,013.72 24,541.24 24,565.51 Structure of Bachelor’s Degree Person 1,188 1,147 1,395
R&D Person 273 223 191
Energy Utilization Associate Degree
Personnel
High School and Below Person 81 38 28
Total Comprehensive Energy Consumption tce 7,594.79 7,618.63 7,539.82
Comprehensive Energy Consumption Intensity tce/10,000 yuan 0.06 0.07 0.06 Under 30 years old Person 1,402 1,258 1,352
Total Direct Energy Consumption tce 2,228.81 2,134.78 2,050.55 Age 30-40 (exclusive) years old Person 675 645 714
Structure of
Total Indirect Energy Consumption tce 5,365.98 5,487.78 5,489.28 40-50 (exclusive) Years Old Person 123 107 127
R&D
Clean Energy Consumption tce 2,228.81 2,134.78 2,050.55 Personnel 50-60 (exclusive) Years Old Person 30 17 18
Natural Gas Consumption 10,000 m3 167.58 160.51 154.18 60 years old or above Person 5 2 4
Total Purchased Electricity kWh 43,661,316 44,620,436.52 44,664,565
Percentage of R&D Personnel % 85.96 86.38 88.46
Water Resource Utilization Patent Applications During the Reporting Period Case / 16 6
Total Water Consumption m3 207,000 208,099.79 201,926 Patents Granted During the Reporting Period Case / 9 16
Water Resource Utilization Intensity m3/10,000 yuan 1.5158 2.0053 1.7362 Cumulative Number of Authorized Patents Case / 40 56
Indicator Name Unit 2023 2024 2025 Indicator Name Unit 2023 2024 2025
Quality Management Supply Chain Security
Number of Customer Complaints Case / / 0 Total Number of Suppliers Supplier 1,287 1,516 1,699
Training on Quality Capacity Case / / 1,773
Number of Chinese Mainland Supplier 1,270 1,499 1,682
Number of Participants in Quality Training Person-times / / 21,302
Suppliers by Hong Kong, Macao, Taiwan,
Total Hours of Quality Training Hour / / 15,921.25 Region Supplier 17 17 17
and Overseas
Data Security and Privacy Protection
Signing Rate of Integrity Agreement by Core
Data Security / Customer Privacy Violations Case / 0 0 % / / 100
Suppliers
Amount Involved in Data Security / Customer Privacy
Overdue Payments to SMEs by the End of the
Violations RMB 10,000 / 0 0 RMB 10,000 / / 0
Reporting Period
Employee Recruitment
Social Welfare
Total Number of Employees Person 2,600 2,349 2,504
Charitable Donations RMB 10,000 552 500 500
Number of Male Person / 1,153 1,270
Employees
(by Gender) Female Person / 1,196 1,234
Governance Performance
Under 30 years old Person / 1,305 1,387
Number of 30-40 (exclusive) years old Person / 851
Employees 992
by Age 40-50 (exclusive) Years Old Person / 214 Indicator Name Unit 2023 2024 2025
Above 60 years old Person / 9
General Meetings of Shareholders Convened Case 3 1 3
Doctoral Degree Person 74 76 78 Proposals Approved Case 17 11 24
Number of Master’s Degree Person 699 620 594
Employees Board of Directors
Bachelor’s Degree Person 1,331 1,268 1,505
(by Academic Number of Members of the Board of Directors Person 8 8 8
Qualification) Associate degree Person 343 287 248
Number of Independent Directors Person 3 3 3
Below associate degree Person 153 98 79
Number of Female Directors Person 1 1 2
Number of New Employees Person / / 869 Meetings of the Board of Directors Convened Case 7 7 9
Employee Turnover Rate % / / 22.87 Proposals Approved Case 40 36 54
Employees’ Rights and Interests Information Disclosure
Employment Contract Signing Rate % / / 100 Number of Public Disclosure Reports Copy 136 113 136
Social Insurance Coverage Rate among Domestic Investor Relations Management
% / / 100
Employees Session 66 18 68
Investor Visits Organized
Proportion of Female Employees in Management % / / 43
Online Response to Investors’ Questions Case 50 27 7
Return Rate of Female Employees on Parental Leave % / / 100
Employee training
Total Employee Training Expenditure RMB 10,000 / 28 30
Total number of employees trained Person 2,564 2,349 2,408
Total Duration of Employee Training Hour 43,735 / 36,313
Coverage of Employee Training % 98.61 100 100
Occupational Health and Safety
Coverage Rate of Occupational Health Checkup % 100 100 100
Investment in Safety Production RMB 10,000 / / 373
Number of Safety Training Sessions Session 44 15 25
Number of Safety Training Participants Person / 1227 1,540
Total Employee Safety Training Hours Hour / 9,547 12,000
Times of Safety Emergency Drills Session / 1 1
Number of New Occupational Diseases Case 0 0 0
Index of Indicators as per the Guide to Corporate Sustainability Reporting in China (CASS-ESG 6.0) and the
Global Reporting Initiative Sustainability Reporting Standards (GRI Standards)
Indexes
Guide to Corporate Global Reporting
Sustainability Reporting in Initiative Sustainability
Table of Contents
Index of Topics as per Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 14 - China Reporting Standards
CASS-ESG6.0 (GRI Standards)
Sustainability Report (for Trial Implementation)
About this Report P1.1/P1.2 2-1/2-2/2-3/2-14
Corresponding Message from the Chairman P2.1 2-22
Index of Topics as per SSE Guideline Corresponding Sections
Articles
P3.1——
About Medicilon 2-1/2-6/2-27/201-1
Response to Climate Change Articles 21 to 28 Response to Climate Change P3.3/E2.4.4/S2.1.4/S2.1.11/S4.1.6
Pollutant Emissions Article 30 Environmental Compliance Management
Sustainable Development Governance
Waste Disposal Article 31 Waste Disposal
Sustainable Development Strategy G1.1.4/G1.1.6 2-12/2-22
Ecosystem and Biodiversity Protection Article 32 Protection of Ecosystem and Biodiversity
Long-term Goals of Sustainable
Environmental Compliance Management Article 33 Environmental Compliance Management G1.1.7/G1.1.11 2-22
Development Topics
Energy Utilization Article 35 Energy and Resource Utilization
Sustainable Development
Water Resource Utilization Article 36 Energy and Resource Utilization G1.1.1/G1.1.5 2-9/2-12/2-18
Management System
Circular Economy Article 37 Energy and Resource Utilization
Special Actions for Sustainable
Rural Revitalization Article 39 Community Public Welfare G1.1.3 2-17
Development
Social Contribution Article 40 Community Public Welfare
Communications with Stakeholders G1.3.1/G1.3.2 2-16/2-29
Innovation-driven Development Article 42 Innovation-driven Development
Analysis of Material Topics G1.1.8/G1.1.9 3-1/3-2/3-3
Science and Technology Ethics Article 43 Science and Technology Ethics and Medical Ethics
Governance Structure
Establishment of Responsible Supply Chain, and
Supply Chain Security Article 45
Promotion of Sustainable Development of Supply Chain Governance / 2-9/2-19/2-20/405-1
Equal Treatment of Small and Medium-Sized Equal Treatment of Small and Medium-Sized Investor Relations Management and
Article 45 G1.3.1/G1.3.2 2-16/2-27/2-29
Enterprises Enterprises Shareholders’ Rights and Interests
Product Quality Management, and Customer Service Risk management and internal control / /
Safety and Quality of Products and Services Article 47 Anti-Commercial Bribery and
Management G2.1.1——G2.1.4/G2.1.8 2-26/2-27/205-2/205-3
Anti-Corruption
Data Security and Customer Privacy Protection Article 48 Data Security and Customer Privacy Protection
Anti-Unfair Competition and
Protection of Employees’ Rights and Benefits, and G2.2.1/G2.2.2/G2.2.3 2-27/206-1
Employees Article 50 Anti-Monopoly
Occupational Health and Safety.
Innovation-driven Development and Data Security
Due Diligence Article 52 Governance
Communications with Stakeholders Article 53 Communications with Stakeholders Innovation-driven Development S2.1.1——S2.1.13 2-6/203-2
Anti-Commercial Bribery and Anti-Corruption Article 55 Anti-Commercial Bribery and Anti-Corruption Protection of intellectual Property
/ /
Anti-Unfair Competition Article 56 Anti-Unfair Competition and Anti-Corruption Rights
Science and Technology Ethics and
/ 2-27
Medical Ethics
Data Security and Customer Privacy
S3.4.1——S3.4.4 2-27/418-1
Protection
Product Quality and Customer Service
Product Quality Management S3.3.1/S3.3.3/S3.3.5 416-2
Customer Service Management / /
Global Development System of Medicilon / /
Responsible Marketing / 2-27/417-3
Guide to Corporate
Sustainability Reporting in
Global Reporting
Initiative Sustainability
Feedback
Table of Contents
China Reporting Standards
CASS-ESG6.0 (GRI Standards)
Climate Transition and Green Development
Dear Readers,
Response to Climate Change E1.1.1——1.1.8/E1.1.14/E1.1.16 201-2/305-1/305-2/305-4
Thank you for reading this report. We highly value your feedback on this report. Your comments and suggestions are crucial for
E3.1.1——
Energy and Resource Utilization 302-1/302-3/303-5
E3.1.5/E3.2.1/E3.2.3/E3.3.2/E3.3.3 helping us enhance ESG disclosure and optimize ESG management practices. We sincerely welcome valuable input from all sectors of
Environmental Compliance E2.1.1—— society and look forward to working together with you to put the concept of sustainability into practice.
Management E2.1.3/E2.1.5/E2.1.6/E2.4.1——E2.4.4
E2.2.1/E2.2.3/E2.2.5——
Waste Disposal 306-1/306-2/306-3 □ Employee □ Client & Consumer □ Shareholder or Investor □ Supplier □ Government or Regulator □ Media/Industry
E2.2.7/E3.3.2/E3.3.4/E3.3.5
Association □ Others (please specify)
Protection of Ecosystem and Biodiversity E2.3.3 304-2
Sustainable Supply Chains and Community Construction
□ Very Good □ Good □ Average □ Below Average □ Poor
Establishment of Responsible Supply
S3.1.1——S3.1.3/G2.1.2 / 3. How do you think Medicilon has performed in terms of communications with stakeholders?
Chain
Promotion of Sustainable □ Very Good □ Good □ Average □ Below Average □ Poor
S3.1.4 2-23/2-25/2-26
Development of Supply Chain 4. How do you think Medicilon has performed in terms of product responsibilities?
Equal Treatment of Small and
S3.2.1 / □ Very Good □ Good □ Average □ Below Average □ Poor
Medium-Sized Enterprises
Community Public Welfare S1.2.1/S1.2.2 203-1
Employee Development, Health and Safety □ Very Good □ Good □ Average □ Below Average □ Poor
S4.1.1/S4.1.3—— 6. How do you think Medicilon has performed in terms of the protection of employees’ rights and interests?
Protection of employees’ rights and 2-7/2-23/2-25/401-1/401-2/401-3/404-2/4
S4.1.6/S4.1.9/S4.1.11/S4.1.12/ □ Very Good □ Good □ Average □ Below Average □ Poor
interests 05-1/406-1
S4.3.1——S4.3.3/S4.3.5
Occupational Health and Safety S4.2.1/S4.2.2/S4.2.4/S4.2.6 □ Very Good □ Good □ Average □ Below Average □ Poor
Future Prospects 8. What are your opinions and suggestions on Medicilon’s ESG performance and this report?
Future Prospects A1 /
Appendix
You can contact us through the following methods:
Key Performance Form A2 /
Address: 585 Chuanda Road, Pudong, Shanghai, China
Indexes A3 /
Tel.: 021-58591500
Feedback A6 /
Email: IR@medicilon.com
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