Sustainability Report
Striving To Eliminate Human Diseases
Report Sustainable Development Innovation-driven Renewal of Collaboration for Mutual Safeguarding Employee Development Green Operations to Protect Our Operations to Consolidate the Future
Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Table of Contents
CATALOGUE
Report Description 01 Sustainable Development Management Safeguarding Employee Development
Chairman’s Address 02 with People-oriented Approaches
(I) Sustainable development governance structure 10
About Us 03
(II) Stakeholder communication 10 (I) Safeguarding employee rights and interests 32
(I) Company profile 03
(III) Material topic analysis 11 (II) Safeguarding employee health 35
(II) Business layout 03
(III) Enhancing employee well-being 37
(III) Major events in 2025 04
Special Topic I: Innovation Endures, Life Flourishes:
R&D Breakthroughs and Health Commitments of Ryzneuta 05 Innovation-driven Renewal of Products Green Operations to Protect Our
and Services Common Home
Special Topic II: Global Support, Local Empowerment:
Building an Open and Collaborative Pharmaceutical
(I) Innovating for a healthier future 14 (I) Strengthening environmental management 40
Innovation Ecosystem 07
(II) Advancing accessible healthcare 16 (II) Improving energy efficiency 41
(III) Maintaining strict safety standards 18 (III) Deepening green operations 13
Future Outlook 49
Appendices 50 Collaboration for Mutual Success and Operations to Consolidate the Foundation
Value Creation for Development
(I) Key Performance Table 50
(II) Indicator Index Table 52
(I) Supply chain management 22 (I) Strengthening corporate governance 45
(III) Independent Assurance Report (3 pages reserved for content) 53
(II) Protecting customer rights 27 (II) Strengthening risk management 46
(IV) Reader Feedback 54
(III)Supporting public welfare initiatives 30 (III) Upholding compliance standards 48
Report Sustainable Development Innovation-driven Renewal of Collaboration for Mutual Safeguarding Employee Development Green Operations to Protect Our Operations to Consolidate the Future 01
Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Report Description
Report Scope
Report Cycle Reporting Period
To ensure the continuity of information, certain content has been retrospectively reviewed and expanded upon. Any
Annual Report January 1, 2025 to December 31, 2025 information falling outside the reporting period will be clarified where relevant. Unless explicitly stated otherwise in this report,
the information disclosed herein encompasses Yifan Pharmaceutical Co., Ltd. and its subsidiaries, aligning with the scope of
the consolidated financial statements in the 2025 Annual Report of Yifan Pharmaceutical (SZ: 002019). For details regarding
the data coverage of this report, please refer to the "Appendix (I) Key Performance Table" section.
Data Description
Report Introduction The data is sourced from the Company's internal documents, reports, and relevant statistical data. Unless otherwise
specified, all amounts in this report are denominated in Renminbi (RMB).
This is the second sustainability report (hereinafter referred
to as “this report”) released by Yifan Pharmaceutical Co.,
Ltd. (hereinafter referred to as “Yifan Pharmaceutical”, “the Data Statement
Company”, or “we”). It aims to present to stakeholders our
sustainability philosophy, management approaches, progress, The company guarantees that there are no false records, misleading statements, or material omissions in the content of this
and achievements during 2025. report, and assumes corresponding responsibility for the authenticity, accuracy, and completeness of its content.
Release Format
To reduce resource waste and environmental pollution, this report is published in electronic format and is available on the
Shenzhen Stock Exchange website (https://www.szse.cn/index/) and CNINFO website (www.cninfo.com.cn). This report is
published in both Chinese and English. In the event of any discrepancy between the two versions, the Chinese version shall
Reliability Assurance prevail.
The Board of Directors of the Company reviewed and approved this report on April 22, 2026. The Company guarantees that there are no
false records or misleading statements in this report. Prepared by
Yifan Pharmaceutical Co., Ltd.
Basis of Preparation
◎ GRI Sustainability Reporting Standards issued by the Global Reporting Initiative (GRI);
◎ International requirements such as ISO 26000:2010 Guidance on Social Responsibility issued by the International Organization for Contact Information
Standardization;
Address: Yifan Pharmaceutical, Intersection of Yingjiangsi Road and Fanhua Avenue, Taohua Town, Feixi
◎ National standard GB/T 36001-2015 Guidance on Social Responsibility Reporting;
County, Hefei City, Anhui Province
◎ Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For Trial
Implementation) and Self-Regulatory Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report Postal code: 231200 Business inquiry hotline: 400-180-2019Overseas
issued by the Shenzhen Stock Exchange; Telephone: 0551-62672019 business inquiries: overseas@yifanyy.com
Fax: 0551-66100530 Official website: www.yifanyy.com
◎ Corporate Sustainability Disclosure Standards—Basic Standards (Trial) issued by the Ministry of Finance of the People’s Republic of
China;
◎ Referring to and responding to the United Nations Sustainable Development Goals (SDGs).
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Chairman’s Address
domestically manufactured product, Norepinephrine we go far. To this end, we continue to optimize compliance
Bitartrate Concentrated Solution for Injection, passed the governance, improve our internal control system, and strictly
PIC/S inspection by Singapore’s HSA. Yinikang domestic enforce anti-corruption and anti-commercial bribery policies,
repackaging passed the Korean MAH on-site audit and using compliant operations to safeguard the bottom line
obtained a GMP compliance notice. The Company also for development; in investor communications, we remain
secured promotion rights for Nilotinib Capsules in Colombia transparent, timely, and accurate, disclosing information
and Central America, Abiraterone Tablets in Mexico and on corporate operations and sustainable development in
Central America, Dydrogesterone Tablets in the Philippines, accordance with regulations and candidly responding to
and Dapagliflozin and Metformin Tablets in the Latin stakeholder concerns; and we integrate green and low-
American market. The cornerstone of our global supply carbon principles throughout production, procurement, and
chain is being built brick by brick by the Yifan team. the entire supply chain, continuously optimizing manufacturing
processes, promoting equipment upgrades and energy-
Embracing far-sighted wisdom, we foster in-depth efficiency improvements, advancing waste treatment and
Looking back, 2025 was a year in which Yifan Pharmaceutical innovative drug N-3C01 Injection was approved to enter clinical collaboration for mutual prosperity. We firmly believe pollution prevention, and encouraging all employees to
forged ahead through challenges and transformation. Facing trials for the treatment of advanced solid tumors and non- that a company’s sustainable development originates practice conservation. Through practical action, we respond
the “harsh” reality of industry consolidation, stricter regulation, muscle-invasive bladder cancer, and the Phase Ib clinical trial in the creativity of its people and is realized through the to the national “dual carbon” goals and strive to build an
and rising barriers to globalization, we set our course with of Duanjin Jiedu Capsules achieved its expected objectives. collaborative strength of its ecosystem. Internally, we let environmentally friendly enterprise.
“scientific planning” and reinforced our long-term commitment to Compound Huangdai Tablets achieved landmark results in those closest to the front line make decisions, driving
Environmental, Social, and Governance (ESG) responsibilities the treatment of ovarian cancer, and Compound Yinhua Jiedu organizational transformation to greater depth and The pharmaceutical and healthcare industry is a long-distance
with steady steps. Over the past year, we not only “strove to Granules advanced toward the pediatric influenza indication... unleashing agility and creativity at the business front end; race measured by life itself. On this journey, which carries
grow” in our business operations but also delved deeply into Behind every medicine lie the hopes of countless families and we continue to improve our talent development system and heavy expectations, sustainable development is the very
our responsibilities, embedding the philosophy of sustainable our steadfast response to the mission of “striving to eliminate career pathways, and effectively enhance employees’ sense foundation of survival for pharmaceutical companies and a
development into the company’s internal driving force. As human diseases”. of gain, happiness, and belonging. Externally, we build an choice we actively embrace. Over the next three years, Yifan
we release our second sustainability report, we are pleased open ecosystem of mutual benefit and shared prosperity Pharmaceutical will stay anchored to the goal of becoming “a
to share with you our practices and reflections in the field of With unstoppable momentum, we connect global health through measures such as green supplier screening, deeper benchmark Chinese pharmaceutical company with a global
sustainable development over the past year. through our expanding presence. From China to Europe, localized procurement, and stronger integrity management presence,” keeping pace with the times and resonating with
from Southeast Asia to the Americas, Yifan’s expertise and of suppliers, striving to establish deep collaboration and national priorities, integrating responsibility into strategy and
With a healing heart, we expand the boundaries of life solutions are reaching ever farther. Ryzneuta was approved a virtuous cycle of mutual achievement with global R&D goodwill into action, and working hand in hand with all parties
through innovation. R&D innovation is the vital lifeline of Yifan for marketing in Thailand and Malaysia, Amikacin Sulfate institutions, business partners, and medical institutions. to press forward tirelessly on the path of healing disease.
Pharmaceutical’s sustainable growth, and our most profound Injection was successfully shipped to Italy, Oxytocin Injection By connecting through openness, resonating through
commitment to patients, upheld consistently over time. In was launched in Tajikistan, and Diazoxide Oral Suspension connection, and prospering through resonance, we are May every step be firm and resolute, and may every journey
regimen of Ryzneuta was approved in China and the product continued to expand. Maqin Xiaoke Granules, Ginkgo Leaf
Pills, and several other products were exported for the first time By upholding integrity and sound rules, we cultivate Chairman:
was included in multiple authoritative clinical guidelines in
or exported again, making the overseas expansion of traditional fertile ground for development through standardized
China and abroad, while global shipments increased by over
governance. We know that only by moving steadily can
Cheng Xianfeng
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
About Us
Company profile
Yifan Pharmaceutical is an innovative R&D-driven pharmaceutical enterprise. Established on
November 10, 2000, with its registered office in Hangzhou, Zhejiang Province, the Company
was listed on the Shenzhen Stock Exchange in 2004 under the stock code SZ: 002019. Through
continuous R&D breakthroughs and high-quality pharmaceutical products and services, Yifan
Pharmaceutical brings health and hope to patients around the globe, striving to grow into a
professional and dynamic new force in the global pharmaceutical and healthcare industry.
Yifan Pharmaceutical upholds the cultural values of “pragmatism, innovation, integrity, and
diligence” and takes “striving to eliminate diseases for humans” as its mission. The Company
is committed to becoming a new contributor of expertise in the global pharmaceutical and
health industry. Yifan Pharmaceutical adheres to a development plan of “innovation and
internationalization” and integrates the ESG concept of “safe, controllable, and sustainable
development” into its actions, promoting harmonious coexistence between the enterprise,
society, and the environment.
Business layout
The Company has established a global production and R&D system, as well as a commercial network, centered around four key business areas: biologics, small molecules, synthetic biologics, and specialty Traditional Chinese Medicine. Through a diversified product
portfolio and strategies centered on innovation and internationalization, the Company has secured a significant position in the pharmaceutical and healthcare industry.
Biologics Small molecule drugs TCM patent formulations Synthetic biologics
We focus on the R&D and industrialization of biologics, Based on “special APIs + high-end excipients”, we focus on a TCM patent formulation sector represents the Company’s traditional area of strength, The Synthetic Biologics Business Division
concentrating on oncology, inflammatory diseases, differentiated portfolio of chemical drugs characterized by “small driven by the competitiveness of “proprietary products + inclusion in the National focuses on two primary areas: “nutrition”
and metabolic disorders. Our strategic priority is to scale, cutting-edge technology, and unique features”. We possess Reimbursement Drug List (NRDL)”. We hold 108 TCM drug approval numbers, including and “personal care”. We are systematically
develop globally competitive innovative drugs, improved a high-end chemical drug R&D and manufacturing platform and a 14 proprietary TCM products covered by the NRDL, such as Baixuekang (Compound advancing the development of an integrated
biologics, and biosimilars. Driven by the dual engines of quality management system that meets international standards. Huangdai Tablets), Xiao’er Qingqiao Granules, Dehumidifying and Anti-Itch Ointment, “R&D–Production–Commercialization” value
“independent R&D + international collaboration”, we have Our product portfolio includes Capecitabine Tablets (Xeloda ), Piminxiao Capsules, Fuyinkang Lotion, and Fufang Yinhua Jiedu Granules. Additionally, chain. While consolidating our market position
built a product matrix anchored by our “DiKine TM dual- Laevolac Lactulose Oral Solution, Emedastine Difumarate we have been awarded 2 National Awards for Scientific and Technological Progress, 1 for existing products to ensure baseline
molecule platform” and “LaMbs long-acting dual-antibody Sustained-Release Capsules, BDDE-Crosslinked Sodium national secondary protected Traditional Chinese Medicine variety, 1 entry in the WHO performance, we are actively promoting
platform”. Hyaluronate Injection (Euflexxa ), and Oxytocin Nasal Spray, Model List of Essential Medicines, and 5 products registered overseas. This positions the construction and commissioning of new
among others, comprehensively meeting diverse market demands. our company as one of the domestic pharmaceutical enterprises with a substantial projectsand pursuing both domestic and
number of proprietary products, particularly those with proprietary NRDL or National international certifications, thereby forging a
Essential Medicines List status. new trajectory for growth.
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Major events in 2025
Business performance R&D progress
● Overall operations: In 2025, the Company achieved total operating revenue of
RMB 5.133 billion. Net profit attributable to shareholders of the listed company ● Biologics R&D: We completed F-652 process optimization and received approval for a Phase II clinical trial in China for the
of RMB 402 million, with a 4.16% year-on-year increase , maintaining overall indication of graft-versus-host disease. We also obtained clinical trial approval for the biologic drug N-3C01 Injection for the
operational stability. treatment of advanced solid tumors and non-muscle-invasive bladder cancer, as well as clinical trial approvals for Insulin Glargine
and Human Growth Hormone Injection.
● Core pharmaceutical business: Pharmaceutical revenue reached RMB
products (including imports) amounted to RMB 3.837 billion, a 4.71% year- of opioid addiction, completed the Phase III clinical trials for Fufang Yinhua Jiedu Granules in treating pediatric influenza and
on-year increase, of which domestic revenue from proprietary pharmaceutical submitted the product for regulatory approval.
products (including imports) reached RMB 3.304 billion, surging by 4.86% year-
on-year, serving as the cornerstone of business performance.
● ?New synthetic biologics: The vitamin B6 production line completed installation and entered the testing phase. The HMO product
● Commercialization of innovative drugs: Initial results have begun to emerge GRAS certification in the U.S.
from the global commercialization of Ryzneuta, with total external shipments in
● ?Domestic and international registration, filings and approvals: The Company has completed regulatory submissions to
China and overseas exceeding 500,000 units, up more than 80% year on year,
China’s Center for Drug Evaluation (CDE) for Revefenacin Inhalation Solution and Vinorelbine Tartrate Injection, and obtained
contributing to the growth of revenue from the Company’s proprietary products.
Chinese drug registration certificates for six products, including Eptazocine Hydrobromide. Oxytocin Injection was approved in
Tajikistan. Sugammadex Sodium Injection was approved in the United States. Norepinephrine Bitartrate Injection was filed in
Singapore.
Global commercial operations
● Business system integration: ● Global approvals and collaborations for Ryzneuta: The Company has obtained ● ?Product in-licensing: The Company ● Product out-licensing: TCM patent formulations such as Maqin Xiaoke
We e s t a b l i s h e d t h e G l o b a l new market approvals in Thailand and Malaysia, bringing the total number of has obtained exclusive marketing rights Granules were exported to Singapore; Amikacin Sulfate Injection was
Business Division to integrate the countries where it has received marketing authorization to 36. It has also established in mainland China for Stivarga and exported to the European Union; Dinazone Oral Suspension was exported
domestic pharmaceutical sales commercial partnerships with 14 markets, including Croatia and Australia, with Nexavar from Bayer, as well as for the to Brazil; and Oxytocin Nasal Spray was licensed for overseas market
system with the International overseas shipments exceeding 500,000 units, representing a year-on-year growth of Tecfidera from Biogen, and substantially registration and commercialization.
Business Division. The Global over 80%. reached agreements on the manufacturing
BD Center was set up to actively and commercialization collaboration of
promote the “bringing in” and ACT001 in China, South Korea, and
“going global” of products. Southeast Asian markets. SciGen has
obtained overseas marketing rights for
multiple products, including Abiraterone
Acetate Tablets.
Ryzneuta Approved for Launch in Thailand and Malaysia Amikacin Sulfate Injection Exported to Ryzneuta Shipped to the U.S. for the
Italy for the First Time First Time
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Special Topic I: Innovation Endures, Life Flourishes: R&D Breakthroughs
and Health Commitments of Ryzneuta
As a core innovative achievement in the biologics sector of Yifan Pharmaceutical, Efbemalenograstim Alfa Upholding innovation to overcome global
Injection (English trade name: Ryzneuta; Chinese trade name: 亿立舒 ) is a long-acting recombinant pharmaceutical technology challenges
human granulocyte colony-stimulating factor (G-CSF) developed on the Company's proprietary DiKineTM
dual-molecule platform. Its journey from R&D to global commercialization not only underscores the The R&D of Ryzneuta has consistently focused on addressing unmet clinical needs,
Company's technological breakthroughs and innovative capabilities in biopharmaceuticals but also breaking through industry bottlenecks through technological innovation. As the first
exemplifies the seamless integration of clinical value realization, international expansion, and sustainable G-CSF drug in China to achieve long-acting properties without polyethylene glycol
development practices. It is currently the only G-CSF therapeutic product worldwide that has conducted (PEG) modification, its core technology lies in the use of Fc fusion protein technology. By
head-to-head clinical studies against both long-acting and short-acting innovator products, achieved pre- genetically engineering the construction of human granulocyte colony-stimulating factor, it
specified targets, and obtained marketing approval in countries or regions including China, the United significantly extends the drug's half-life while maintaining high stability and bioactivity. This
States, Europe, and Brazil. design inherently avoids the immune responses and hypersensitivity risks associated with
traditional PEGylation modifications and effectively addresses the clinical challenges of
frequent dosing and low patient compliance with traditional short-acting formulations.
Focusing on clinical value to safeguard treatment
safety for cancer patients
The core clinical value of Ryzneuta lies in its precise targeting of a critical unmet need in patients undergoing chemotherapy for cancer—neutropenia.
While chemotherapeutic agents kill tumor cells, they also severely suppress bone marrow hematopoiesis, leading to a sharp decrease in neutrophil
count, which significantly increases the risk of infection and may even interrupt the chemotherapy course, compromising treatment efficacy.
As a clinically recommended essential medication for elevating white blood cell counts, Ryzneuta specifically stimulates the proliferation and
differentiation of bone marrow hematopoietic stem cells, rapidly increasing peripheral blood neutrophil counts to effectively prevent and treat
chemotherapy-induced neutropenia. Compared to traditional short-acting formulations, its long-acting design substantially reduces dosing frequency,
significantly enhancing patient adherence. Additionally, through process optimization, it lowers the incidence of adverse reactions such as bone
pain and myalgia. Notably, it remains effective in reducing the incidence of moderate to severe neutropenia during the third and fourth cycles of
chemotherapy, demonstrating superior performance in elevating the absolute neutrophil count (ANC) nadir and shortening recovery time. Furthermore,
its ability to achieve faster recovery of neutrophil levels when administered on the same day as chemotherapy provides greater flexibility for optimizing
clinical treatment regimens and offers cancer patients a safer and more convenient therapeutic option.
Ryzneuta received high recognition from global authoritative guidelines
The only domestically produced long-acting G-CSF included in the U.S. National Comprehensive Cancer Network (NCCN) Clinical Practice Guidelines in Oncology:
Hematopoietic Growth Factors (Version 1. 2025)
?Included in the Chinese Society of Clinical Oncology (CSCO) Breast Cancer Guidelines (2025)
?Selected for poster presentation at the 116th Annual Meeting of the American Association for Cancer Research (AACR)
?Selected for poster presentation at the 2025 Annual Meeting of the Society of Gynecologic Oncology (SGO)
?Successfully included in the NCCN Guidelines with a Category 2A recommendation
?Included in Germany's "S3-Leitlinie Supportive Therapie bei onkologischen Patientlnnen" guidelines
In terms of medication safety, the prefilled syringe design of Ryzneuta reduces operational complexity, accommodating diverse treatment scenarios
and further expanding its clinical applicability, providing reliable support for standardized cancer treatment.
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Special Topic I: Innovation Endures, Life Flourishes: R&D Breakthroughs
and Health Commitments of Ryzneuta
Dual breakthroughs in global expansion and
sustainable development
The launch of Ryzneuta marks a leap from “Innovation in China” to “global recognition”. In May 2023, the product received marketing approval from China's National Medical Products Administration (NMPA); in November 2023, it obtained marketing authorization from the
U.S. Food and Drug Administration (FDA); in March 2024, it received marketing approval from the European Commission; and by the end of 2024, it received marketing approval from Brazilian Health Regulatory Agency (ANVISA), becoming the first domestically produced
long-acting G-CSF product approved in China, the United States, Europe, Brazil, and other regions. It has since been incorporated into relevant clinical guidelines worldwide. In 2025, the NMPA approved a supplemental application for Ryzneuta to change its dosing interval
from 48 hours to 24 hours, the European Commission approved its self-administration application, and the Company's partner in Japan initiated research on even shorter dosing intervals. By the end of 2025, Ryzneuta had established commercial partnerships in over 40
countries/regions globally, obtained approval in 36 countries/regions. In 2025, the first shipments in the U.S. market were completed in May. Fourteen new market partnership agreements were signed. Approvals were successfully obtained in Thailand and Malaysia, and
marketing applications have been submitted in the Philippines, the United Arab Emirates, Albania, Vietnam, and other regions, with global commercialization accelerating steadily.
In terms of social responsibility, Ryzneuta was renewed for inclusion in the National Reimbursement Drug List for Basic Medical Insurance, Maternity
Insurance, and Work-Related Injury Insurance (2025 Edition) in 2025, further advancing the Healthy China strategy and enhancing drug accessibility. The
reimbursement criteria were expanded from patients who experienced severe neutropenia during their "previous" chemotherapy cycle to those who had
experienced it during "any prior" cycle, broadening the coverage to benefit more clinical patients and significantly reducing their financial burden associated
with medication.
At the same time, to optimize the overseas supply chain of Ryzneuta, shorten product preparation lead times, and reduce supply costs, the Company
actively filed with the U.S. FDA and the European EMA for the addition of new manufacturing sites for Ryzneuta overseas formulations. It also carried out
diversified patient education and clinical training activities around Ryzneuta, improving standardized medication use among healthcare professionals and
enhancing patients’ self-management capabilities, thereby building a comprehensive health protection system.
The R&D and practical application of Ryzneuta vividly embody the "innovation
and internationalization" strategy of Yifan Pharmaceutical, and serve as
the core vehicle through which the company implements its sustainable
Grand Launch Ceremony of Ryzneuta in China Held
development philosophy with technological innovation. From technological
breakthroughs to the realization of clinical value, and from global outreach to
sustainable development, Ryzneuta not only offers tumor patients a superior
Launch Timeline Regions
treatment option but also establishes a benchmark image for biopharmaceutical
May 2023 Obtained marketing authorization in China companies in driving health and well-being through innovation and leading
industrial development with responsibility. It injects strong impetus into the
November 2023 Secured approval for launch in the United States sustainable development of the global pharmaceutical and healthcare industry.
Obtained marketing authorization in the
March 2024
European Union
November 2024 Received approval for launch in Oman
December 2024 Obtained marketing authorization in Brazil
October 2025 Approved for launch in Thailand
First Batch of Ryzneuta Dispatched Nationwide
November 2025 Secured approval for launch in Malaysia
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Special Topic II: Global Support, Local Empowerment: Building an Open
and Collaborative Pharmaceutical Innovation Ecosystem
Against the backdrop of continuously upgrading global healthcare demands and the deep integration of industrial globalization, Yifan Pharmaceutical adheres to its mission of "striving to eliminate diseases for humans". With an open and collaborative core strategy, it has
constructed a global business layout and innovation ecosystem. Through the simultaneous efforts of "bringing in" and "going global", supported by a multi-dimensional system and sustainable development practices, the Company has made steady progress in the global
pharmaceutical market. It has not only achieved global business expansion but also demonstrated the responsibility and commitment of Chinese pharmaceutical companies.
Global layout: laying a solid foundation for diversified global commercial synergy
Rooted in the domestic Chinese market and targeting the global market for business
expansion, the Company has established a global physical network covering R&D,
production, and commercialization. This forms a global layout that integrates innovation
generation, capacity assurance, and market access, laying a solid foundation for an open
and collaborative ecosystem.
Global R&D network: Focusing on four major areas—biologics, small molecules, synthetic
biologics, and specialty Traditional Chinese Medicine, the Company coordinates R&D teams
across multiple regions. Through international multi-center clinical trials, it accumulates
research data to provide core support for global product registration and commercialization.
Global manufacturing system: The Company has built over ten production bases both
domestically and overseas, all compliant with local pharmaceutical quality management
standards, establishing a high-standard manufacturing system aligned with international
norms. For core products, it has developed a global supply chain enabling cross-regional
coordination of domestic bulk drug substance production and international fill-finish
operations, ensuring stable global market supply. Global commercialization network:
The Company’s business covers multiple countries and regions, employing a diversified
commercial model combining direct sales, distribution, and strategic partnerships. This
creates a full-channel system covering both developed and emerging markets, providing
solid support for global product distribution and patient services. Additionally, leveraging
international conferences and platforms, the Company builds channels for global business
collaboration and brand visibility, enhancing its global market access.
Global Layout of Yifan Pharmaceutical
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Global resource integration: building an open and collaborative pattern of mutual empowerment
The Company adheres to a two-pronged cooperation strategy of "bringing in and going global", integrating high-quality global pharmaceutical resources with an open mindset. Focusing on key therapeutic areas such as hematological malignancies, solid tumors, orthopedics, and endocrinology,
the Company works in tandem with its various business divisions to introduce clinical-stage or commercialized products while actively seeking overseas partners to expand the global market presence of its products. This approach aims to promote Chinese innovations on the world stage and
build a mutually beneficial global cooperation ecosystem.
In terms of inbound cooperation, the Company focuses on addressing unmet global clinical needs by executing targeted product in-licensing and By 2025, Yifan Pharmacy had achieved a critical leap from product globalization to ecosystem globalization. Through a China-rooted, globally-
partnerships. During the reporting period, the Company obtained exclusive marketing rights in mainland China for Bayer’s Stivarga (Regorafenib oriented network, resource integration that combines "bringing in and going global", strategic alignment with local flexibility in governance,
Tablets) and Nexavar (Sorafenib Tablets), as well as Biogen’s Tecfidera (Dimethyl Fumarate). It also substantially finalized a cooperation and multi-dimensional sustainable practices, the Company has realized significant results in executing its globalization strategy. This has not
agreement covering the production and commercialization rights for the investigational Class 1 innovative drug ACT001 in the treatment of small only enhanced its global product portfolio and commercial footprint but also faithfully fulfilled its sustainable development commitments.
cell lung cancer brain metastases across core markets including China, South Korea, and Southeast Asia. Furthermore, the Company’s wholly-
owned subsidiary, SciGen, secured marketing rights for Nilotinib Capsules in Colombia and Central America, for Abiraterone Tablets in Mexico
and Central America, for Dydrogesterone Tablets in the Philippines, and for Dapagliflozin and Metformin Hydrochloride Extended-Release
Tablets in the Latin American market.
In terms of global expansion, the Company has significantly accelerated its pace of going global, achieving multiple breakthroughs in the
overseas registration and commercialization of its domestic products. A marketing authorization application was submitted in Singapore for
the Company’s domestically marketed product, Norepinephrine Bitartrate Injection. Another domestically marketed product, Oxytocin Injection,
successfully obtained approval for marketing in Tajikistan. Additionally, the Company’s Italian subsidiary, Fisiopharma, achieved U.S. FDA
approval for its Sugammadex Sodium Injection.
The Company’s proprietary Traditional Chinese Medicine products manufactured in China—Maqin Xiaoke Granules, Ginkgo Biloba Pills, Yifan Pharmaceutical at Overseas Exhibitions
Piminxiao Capsules, and Dehumidifying and Anti-Itch Ointment, achieved first-time or repeat exports to Singapore, preliminarily establishing a
pathway for TCM patent formulations in the Singaporean market. Amikacin Sulfate Injection, produced in China, was successfully shipped to
the EU market, signifying that the Company’s domestic chemical drug manufacturing quality system has been recognized as compliant with EU
standards. The domestically manufactured proprietary product, Dinazone Oral Suspension, was urgently exported to Brazil, making the Company
one of the few Chinese enterprises capable of supplying rare disease drugs to Brazil. Furthermore, a commercialization agreement was reached
with Sygardis Rus, LLC for Oxytocin Nasal Spray, granting them the rights to register and commercialize the product in the Russian market.
The Company has strengthened global manufacturing certifications to solidify the foundation for product exports. During the reporting period,
Hefei Yifan Biopharmaceutical successfully passed the PIC/S on-site inspection conducted by the Health Sciences Authority (HSA) of Singapore.
Hefei Yifan Biopharmaceutical also obtained domestic packaging and distribution authorization for Euflexxa. The Company’s Italian subsidiary,
Fisiopharma, achieved PMDA certification in Japan. As of the disclosure date of this report, certain of the Company’s manufacturing sites
have obtained GMP certifications from regulatory authorities in countries and regions including the United States, the European Union, Brazil,
Singapore, Japan, and South Korea. The Company’s global manufacturing quality system is now fully aligned with international standards,
steadily advancing its transformation into a globally integrated pharmaceutical enterprise.
Looking ahead, Yifan Pharmaceutical will continue to deepen integration around the themes of "innovation, going global, and core business",
constructing a three-tier product portfolio consisting of "star, growth, and defensive" products, while continuously expanding the boundaries
of its global cooperation network. Guided by clinical needs, the Company will accelerate the overseas registration of its proprietary products
and pursue two-way global business development (in-licensing and out-licensing). It will actively advance the deep cultivation of core products
in overseas markets and the R&D of innovative products, continuously improving the global accessibility of its pharmaceutical offerings. The
Company will promote international collaboration on biosimilar projects and further expand export channels for bulk drug substances and APIs.
The Company will also focus on core therapeutic areas by actively in-licensing mature commercial products and exploring new growth drivers.
Furthermore, Yifan Pharmaceutical will strategically build a differentiated and competitive pipeline of innovative drugs, establishing a multi-tiered,
full-lifecycle product matrix to drive high-quality corporate development. It will further integrate the philosophy of sustainable development into
the entire chain of its global operations, making sustained efforts in compliance-driven operations, green and low-carbon initiatives, employee
rights protection, and charitable practices. Together with global partners, it aims to build a responsible, efficient, and co-developing global Global Supply Chain and Marketing System Layout of Yifan Pharmaceutical
pharmaceutical innovation community, contributing its strength to global health causes through concrete actions.
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
SUSTAINABLE
DEVELOPMENT
MANAGEMENT
Sustainable development
philosophy: safe, controllable,
and sustainable development
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Sustainable Development Management
(I) Sustainable development (II) Stakeholder communication
governance structure
Yifan Pharmaceutical upholds the core principle of synergistic development between Stakeholders Key concerns Means of response Stakeholders Key concerns Means of response
economic and social benefits. While continuously providing high-quality products Corporate governance
and professional services, the Company actively pursues pathways to sustainable Anti-bribery and anti- Compliance with national laws and Supply chain security
Government/ corruption regulations Equal treatment of
development. To systematically plan, advance, and implement its sustainable Suppliers
Procurement negotiations
regulatory Anti-unfair competition Policy training and guidance small and medium-sized On-site visits
development strategies, ensure orderly and effective sustainability management, and authorities Environmental compliance Questionnaire surveys enterprises
keep its operational strategy highly aligned with global sustainability trends, the Company management Visits and exchange visits
has continuously optimized its top-down sustainable development governance structure Technology ethics
with clearly defined roles and responsibilities. In 2025, it formally established the Official website Regular exchange meetings
Corporate governance Information disclosure Innovation-driven
Environmental, Social, and Governance (ESG) Management System, providing a solid Regular visits
Shareholders/ Due diligence Shareholders' meetings development
Partners Project team services
institutional foundation for advancing all related efforts. investors Stakeholder On-site research Product and service safety
Seminars and exhibitions
communication Performance briefings and quality
Industry conferences
Investor communication
Decision-making Board of
Level Directors Employee representative congress
Employee training and skills Public welfare activities
Public/ Social contribution
development activities Volunteer services
Employees Employees communities Rural revitalization
Corporate culture activities Daily communication and interaction
Trade union activities
Senior Sustainable Development Platform for rationalization proposals
Management Management Committee
Innovation-driven
development Customer satisfaction surveys Climate change response
Environmental declarations
Focus on rare diseases On-site visits Pollutant emissions
Customers Environment Monitoring disclosures
Universal health access Seminars and exhibitions Ecosystems and
Compliance filings
Product and service safety Industry conferences biodiversity
Execution Sustainable Development Specific Functional Departments and quality
Level Executive Team and Business Divisions
Yifan Pharmaceutical's Governance Structure for Sustainable Development
As the highest management and decision-making body for sustainable development, the Company's Board of Directors holds the core responsibilities of overall leadership and strategic decision-making. Based on management reports provided by the Sustainable
Development Management Committee, the Board systematically analyzes potential risks and development opportunities in the sustainable development, provides strategic opinions on action plans and major initiatives related to sustainable development at the
corporate level, guides the Sustainable Development Management Committee in implementing various decisions, and approves the Company's sustainability report to ensure its authenticity, completeness, and compliance.
To strengthen the oversight and management of sustainable development, the Company has established a Sustainable Development Management Committee at the management level. The Committee accurately assesses risks and opportunities in the
sustainable development and promptly formulates response measures; based on the strategic decisions made by the Board, it develops specific management implementation plans for sustainable development and oversees the execution level to ensure results;
it sets key performance indicators for sustainable development to facilitate the successful achievement of various sustainability goals and plans; and it organizes the preparation of the Company's sustainability report to ensure that the report quality meets
relevant requirements.
The Company has established a Sustainable Development Executive Team as the specific implementing body for sustainability-related work. The Team coordinates the collaborative efforts of various business divisions and functional departments to carry out
sustainability-related activities; strictly implements the work plans formulated by the Sustainable Development Management Committee and provides timely feedback on work progress, existing issues, and improvement recommendations; establishes a robust
information and data collection system for sustainable development, regularly collecting and consolidating relevant information and data from all links. It promotes the deep integration of the sustainability concept into the Company's core business, integrating
sustainability requirements throughout the entire business process; proactively identifies various risks and opportunities in the sustainable development, promptly communicates and addresses stakeholder concerns, and establishes an efficient communication
and feedback mechanism; and completes the information collection, verification, compilation, and other related tasks for the Company's sustainability report to ensure the orderly progress of report preparation.
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(III) Material topic analysis
As a publicly listed company on the Shenzhen Stock Exchange, Yifan Pharmaceutical consistently upholds the principle of collaborative win-win relationships with its stakeholders and actively builds a sustainable development ecosystem centered on enhancing social value.
To comprehensively and accurately disclose the Company's sustainable development practices and achievements to both internal and external stakeholders, Yifan Pharmaceutical, based on its actual operations, conducts targeted stakeholder questionnaire surveys. Through
online research, it extensively collects stakeholder requests and suggestions, identifies double materiality topics, determines their prioritization, and constructs a materiality matrix, ensuring that sustainable development efforts are responsively and effectively implemented.
Establishment of a topic library Topic analysis and prioritization
Through benchmark research on standards, peer comparison, and an assessment of the Company's Through the dual perspectives of financial materiality and impact materiality, we conducted a comprehensive and in-depth statistical analysis of
development status, internal and external material topics are identified to form a topic library. A total of 24 the collected survey questionnaires. Based on the analysis results, the materiality level of each topic was accurately prioritized, and a double
sustainability topics have been identified, including 5 corporate governance topics, 11 social topics and 8 materiality matrix was subsequently constructed.
environmental topics.
Stakeholder survey Topic response and disclosure
Focusing on two dimensions—financial materiality and impact materiality regarding the sustainable Based on the results of the double materiality assessment, targeted disclosures are made in this report.
development of Yifan Pharmaceutical, we invited stakeholders to rate the importance of each topic on a
scale of 1 to 5.
Yifan Pharmaceutical 2025 Sustainability Report Materiality Matrix
Rating Importance Meaning
High impact materiality topic Double materiality topic
Immediate disclosure and management of this topic is not
necessary 2
Impact materiality on the Company
In this survey, we collected a total of 545 valid questionnaires, covering the requests and suggestions of 12 1
internal and external stakeholders, including government/regulatory authorities, shareholders/investors, 15
employees, customers, partners, suppliers, and the public/community.
Stakeholder category Number of questionnaires collected 24 23
Government/regulatory authorities 15
Shareholders/investors 32 4 21
Employees 436
Customers 24
Partners 8
Suppliers 15
Other topic High financial materiality topic
Public/communities 15
Financial materiality to the Company
Total 545
Environmental Social Governance
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Double
No. Topic name Financial materiality Impact materiality Other topics Category Description Countermeasure
materiality topi
Risk during production and operations may lead to excessive emissions, resulting in emission indicators; strictly enforce complian ce with emission standards;
environmental penalties, compliance risks, and brand reputation damage. standardize hazardous waste disposal and record management.
Promoting clean production and emission reduction technologies can lower
●
emissions
environmental compliance costs, improve green production levels, align Promote energy-saving and consumption-reducing processes; carry out
with the industry's low-carbon development trends, and enhance the green clean production transformation; advance resource recovery and reuse.
●
Ecosystem and biodiversity competitive advantage.
protection Increasingly stringent environmental policies and rising regulatory standards Establish an environmental compliance management system; conduct
● ●
Environmental compliance may create compliance gaps if management is inadequate, leading to regular self-inspections and training on environmental compliance; keep
management Environmental operational risks such as administrative penalties, production restrictions, or abreast of policy updates; implement statutory procedures such as
● ●
compliance shutdowns. environmental impact assessments and pollutant discharge permits.
management Strengthening the environmental compliance system helps improve the Build a whole-process environmental compliance management framework;
●
Opportunity Company's standardized operations, meet regulatory and market requirements, establish a compliance risk early warning mechanism; strive to become an
Risk increase production costs. An energy-intensive operating model is inconsistent consumption structure; reduce comprehensive energy consumption per
●
with low-carbon policy directions and poses energy efficiency control risks. unit of product.
Improving energy utilization efficiency and developing clean energy can lower Promote the application of energy-saving technologies; gradually adopt
and green development dividends. production facilities.
Risk insufficient breakthroughs in core technologies, may lead to declining product tackling core technological challenges; strengthen intellectual property
competitiveness and the risk of falling behind in technological iteration. protection; build an R&D risk assessment system.
Establish industry-university-research collaboration platforms; focus on
● ●
development Technological innovation and product upgrades can create core barriers,
Opportunity capture high-end markets, drive industrial upgrading, and align with the
outcomes; continuously launch high-value-added innovative products and
● ●
innovation-driven development of the pharmaceutical industry.
High difficulty in R&D for rare disease drugs, small patient populations, and Precisely plan the rare disease pipeline; optimize R&D strategies; integrate
Focus on rare and R&D investment. diagnosis and treatment service ecosystem.
●
Equal treatment of small and
medium-sized enterprises
Opportunity with significant market gaps, enables early movers to achieve differentiated development of rare disease diagnosis and treatment systems; build core
● ●
Product and service safety and competition and brand advantages. competitiveness in the rare disease sector.
quality
Limited profit margins for universal health products, coupled with intense Optimize the universal product structure; strictly control costs and pricing;
●
Data security and customer Risk market homogenization, create operational pressures in service coverage and enhance large-scale operational capabilities; focus on grassroots and
privacy protection Universal health cost control. universal health scenarios for precise deployment.
Rising national health demands and policies promoting universal health access
Expand the supply of primary care and universal health products; advance
Opportunity health education and accessible services; leverage product down-market
● ●
help expand patient/user groups and fulfill social responsibilities.
penetration to increase market coverage and brand influence.
The safety and quality of pharmaceutical products are directly related to patient Establish a full life-cycle quality control system; strictly comply with GMP
Risk health and life. Any quality defect may trigger recalls, penalties, litigation, and a and other standards; strengthen quality control of raw and auxiliary
major brand crisis. materials, process management, and finished product testing.
●
service safety
and quality
Opportunity market recognition, builds a high-quality brand image, and creates a long-term quality traceability system; win the market with high-quality products and
●
The abolition of the supervisory board under the Company Law and the Optimize the corporate governance structure; establish specialized bodies
Risk
oversight mechanisms, weakened supervisory functions, and gaps in internal internal supervision and checks-and-balances mechanisms to ensure
Corporate control supervision. effective implementation of oversight responsibilities.
In accordance with the requirements of the Self-Regulatory Guidelines No. 3 for Companies Listed
governance Continuously optimize modern corporate governance mechanisms;
on Shenzhen Stock Exchange—Sustainability Report issued by the Shenzhen Stock Exchange, Efficient and standardized corporate governance fosters more scientific
strengthen integration with sustainable development governance; improve
the Company has responded to the double materiality topics from the dual dimensions of "risks and Opportunity decision-making, and enhances operational efficiency and risk resilience,
the quality of information disclosure; empower high-quality sustainable
earning recognition from capital markets and stakeholders.
opportunities", as detailed in the table below: development through effective governance.
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INNOVATION-DRIVEN
RENEWAL OF PRODUCTS
AND SERVICES
Contributing to Sustainable
Development Goals (SDGs)
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?Risks and opportunities
Governance
Category Specific content Countermeasure
The Company, guided by its "innovation and internationalization" strategy, dynamically tracks policy changes, strengthens CMC
research and clinical data management, and has established a full-industry-chain quality control system spanning from preclinical Strengthen pharmaceutical and clinical data management,
research to commercial production. Through lean manufacturing, domestic substitution, and process optimization, the Company Stricter evaluation standards for drugs, more stringent filing
establish an R&D-registration linkage mechanism, dynamically
continuously reduces costs and improves efficiency. Each business division has designated intellectual property management requirements, and intensified inspections lead to extended R&D
Regulatory risks track policy changes, adjust project priorities; continuously
specialists responsible for coordinating global patent portfolios and IP risk prevention and control, thereby safeguarding the cycles, lower approval rates, and increased R&D costs, with
evaluate high-risk projects, promptly terminate low cost-
legitimate rights and interests of innovation outcomes. some projects facing the risk of delay or termination.
effectiveness projects, and optimize resource allocation.
Avoid price wars on commodity drugs; expand into primary
The normalization of national volume-based procurement (VBP)
markets and private channels to offset sales volume gaps under
Market risks compresses profit margins for generics, lowers development
Strategy VBP; accelerate global registration progress for biosimilars to
barriers, and intensifies market competition.
seize market opportunities.
The Company adheres to an R&D strategy of "innovation-driven and differentiated competition", focusing on areas of
unmet clinical needs, including oncology, metabolic diseases, and rare diseases, and has built a diversified product portfolio National policies encourage the R&D of pediatric drugs and Precisely align with national policy directions; optimize R&D
encompassing "innovative drugs, biosimilars, generics, specialty Traditional Chinese Medicine and synthetic biologics". Policy support clinically urgently needed varieties, with potential for expedited pipeline layout; accelerate the R&D and filing of pediatric drugs;
opportunities review and favorable access to national reimbursement; green leverage synthetic biologics demonstration lines to advance
technologies such as synthetic biologics receive policy support. product industrialization.
?Objectives and targets
Total R&D investment:RMB 355 million Number of R&D personnel: 836 Number of patent applications: 82 Number of newly granted patents for the year: 28
(I) Innovating for a healthier future Product areas R&D directions R&D progress
The Phase III clinical trial of Fufang Yinhua Jiedu Granules for the treatment of pediatric influenza has been
completed, and a registration application has been submitted;
Focusing on TCM's traditional strengths in pediatrics and gynecology, with emphasis on
IIT clinical study of Compound Huangdai Tablets for the treatment of advanced recurrent platinum-resistant ovarian
Traditional cancer: first subject enrolled and dosed, laying critical foundation for subsequent research;
product portfolio.Focusing on TCM's traditional strengths in pediatrics and gynecology, with
Chinese Medicine Phase Ib clinical trial of Duanjin Anti-Addiction Capsules (Class 1.1 new TCM drug) has been completed, achieving its
Focus on R&D innovation emphasis on developing innovative drugs and improved new drugs, while continuously
expected objectives;
enhancing the product portfolio.
We have completed the domestic manufacturing registration and marketing application for the classic formula Yi
In 2025, guided by its "innovation and internationalization" development Huang Tang Granules.
strategy, and with a core focus on "standardizing R&D processes,
strengthening risk management and control, and improving decision-making We adopt an "internal-external synergy" strategy for innovation. On one hand, we
?Eptazocine Hydrobromide Injection, Clenbuterol Hydrochloride Oral Solution, Cytarabine for Injection, Epirubicin
efficiency", Yifan Pharmaceutical has built a diversified technology system introduce products with clear clinical value and high synergy with our production lines. On
the other hand, we rely on external technology platforms and innovative drug Contract
centered on its core therapeutic areas, enabling the synergistic development Small molecule Hydrochloride for Injection, and Isavuconazonium Sulfate for Injection have been approved for marketing;
Research Organizations (CROs) to advance early-stage R&D. For improved drugs, we
of TCM, small molecule drugs, synthetic biologics, and biologics. In the drugs The Company has completed regulatory submissions to China’s Center for Drug Evaluation (CDE) for Revefenacin
focus on extending the lifecycle of key products based on clinical needs. Regarding
Inhalation Solution and Vinorelbine Tartrate Injection.
TCM sector, the Company deepens its focus on traditionally advantageous generics, we focus on key areas such as high-potency anti-tumor drugs based on our
diseases, systematically invests in innovative drugs and classic formulas, and existing pipelines and steadily advance the internationalization.
continuously improves its product portfolio. In the small molecule drug area, it
The vitamin B6 project has completed production line installation and is currently in the phase of pressure testing,
adopts an internal and external collaboration strategy, balancing improvement- Building on successful upstream and downstream integration and notable market
leak testing, and water run-in;
?The Human Milk Oligosaccharide (HMO) 6'-SL has been submitted for registration to China's National Health
driven innovation with a generic-innovative approach, steadily advancing development achievements, we are shifting from capacity expansion to tackling key
Synthetic biologics technological challenges, extending industrial chains, and transitioning to high-value-
product iteration and internationalization. The synthetic biologics segment has Commission (NHC) and has obtained FDA SELF-GRAS certification in the United States;
added operations, aiming to break through homogeneous competition and continuously
transitioned from capacity expansion to key technological breakthroughs and The Human Milk Oligosaccharide (HMO) 2'-FL has obtained FDA GRAS certification in the United States and has
enhance core competitiveness.
received approval from China's National Health Commission (NHC).
high-value-added transformation, striving to break away from homogenized
competition. In the biologics sector, the Company pursues a dual-driver Biosimilar pipeline:
strategy of innovative drugs and biosimilars, covering the entire industry chain ?Clinical trial approval notices have been received for Insulin Glargine Injection and Human Growth Hormone
from preclinical research to commercial production. The diversified R&D Injection.
Synthetic biologics
pipeline and robust clinical and regulatory progress have laid a solid foundation Biologics Focusing on core therapeutic areas such as oncology and metabolism, building a dual-
Innovative drug pipeline:
?Project F-652 has obtained the approval notice for the Phase II clinical trial in China for the treatment of acute Graft-
for the Company's medium- to long-term development. drive R&D system of "innovative drugs + biosimilars" that covers the entire industrial chain
from preclinical research to commercial production.
versus-Host Disease (aGVHD);
Project N-3C01 has obtained the clinical trial approval in China for the treatment of advanced solid tumors and non-
muscle-invasive bladder cancer.
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Yifan Pharmaceutical R&D Overview in 2025
TTotal R&D investment RMB 355 million R&D as percentage of pre-tax revenue 6.91% Number of R&D personnel 836 persons
Case: Yifan Pharmaceutical International Innovation Centerofficially launches—
building a core engine for global innovation and R&D
In 2025, Yifan Pharmaceutical International Innovation Center was officially inaugurated in Shanghai. Nearly two hundred on-site guests As the core hub of the company's R&D system, the launch of Yifan Pharmaceutical International Innovation Center represents a solid step
and numerous online partners jointly witnessed this significant moment, marking a new milestone in the Company's innovation and forward in the Company's pursuit of innovative drug R&D and global expansion. In the future, the center will adopt an open approach to
international development. The opening ceremony blended technology with tradition: a robotic dance performance showcased the allure of integrate global R&D resources, maintain a forward-looking vision to focus on cutting-edge technologies, and foster a collaborative spirit to build
cutting-edge technology, while a traditional lion dance symbolized the auspicious beginning of new opportunities and the aspiration to reach an efficient innovation platform. It is committed to becoming a hub of wisdom and an accelerator for new drug development, serving as the core
new heights—a vivid reflection of the Company's dynamic and diversified development. engine for the Company's technological achievement transformation and continuously contributing Yifan's strength to global human health.
Yifan Pharmaceutical International Innovation Center Established in Shanghai
Intellectual property protection Intellectual property management
Case: Yifan Pharmaceutical 2025 R&D Conference—embracing the Newly granted patents 28
"Refining Era" with perseverance We attach great importance to the management and protection of intellectual property rights,
Among them, granted invention patents 13
strictly adhering to relevant laws and regulations such as the Patent Law of the People's Republic
of China, the Trademark Law of the People's Republic of China, and the Anti-Unfair Competition Granted utility model patents 15
In November 2025, Yifan Pharmaceutical held its annual R&D conference with the theme of
Law of the People's Republic of China. In February 2025, the Company successfully completed
"Global Development, Boundless Innovation". The conference focused on the main themes of Cumulative granted patents 294
the recertification to the updated Enterprise Intellectual Property Compliance Management System
"innovation and internationalization", conducting in-depth analyses of policy and technological
(GB/T 29490) and obtained a new certificate, ensuring ongoing compliance and best-in-class New patent applications 82
frontiers such as accelerated drug approval pathways and AI-driven drug regulation. Concurrently,
system operation. Among them, applied invention patents 51
internal reviews were conducted on topics including cost reduction and efficiency improvement,
generic drug Volume-Based Procurement (VBP) strategies, and talent incentives. In 2025, the Company experienced no intellectual property disputes or issues. Applied utility model patents 31
The Company’s founder stated that the pharmaceutical industry has transitioned from the “Gold Cumulative applied invention patents 272
Rush Era” to the “Refining Era”, and that Yifan Pharmaceutical aspires not to be a follower, but
a courageous and persistent contender. The Conference further strengthened the cultural and
strategic foundation for deepening the Company’s global R&D footprint and bringing Chinese
innovations to patients worldwide.
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Refining the top-level desian ?Strengthening talent development ?Promoting service innovation
To systematically advance digital transformation, the Company ① Cultivating enterprise-wide digital literacy: To establish digital capability as a core ① Accelerating process innovation: By introducing RPA (Robotic Process Automation) solutions, we
has formulated a phased strategy of "strengthening the foundation, competency for all employees, we have systematically conducted multiple rounds of online have automated data collection, payment notifications, and receipt printing, freeing employees from
streamlining processes, and empowering all employees", enabling and offline training sessions and "Skills Bootcamps" focused on daily office software, repetitive tasks. This has directly reduced operational costs while improving process accuracy and
digitalization to permeate from point solutions to enterprise-wide covering over 260 person-times. Training goes beyond functional explanations to include processing efficiency.
integration: scenario-based hands-on guidance, such as multi-dimensional spreadsheet creation ② Responding to business needs: Leveraging the YiDa low-code platform, we have rapidly developed
① Full-chain coverage: Centered on the integration and rollout and automated workflow design. This approach helps employees directly translate digital and deployed personalized lightweight applications such as weekly report management and customer
of the ERP system, we have connected core business processes tool proficiency into practical solutions for real business challenges, infusing grassroots visit tracking, promoting the digitalization, standardization, and data accumulation of business processes.
including finance, supply chain, and sales, achieving closed-loop momentum into the digital transformation. This “agile and flexible” approach supports micro-innovation in business models.
and real-time synchronization of key data flows, thereby laying the ② Building Specialized Technical Capabilities: We adhere to the principle of “learning by
foundation for refined operations. doing and honing expertise through practice.” Key projects such as the “System Integration
② Full-scenario integration: By implementing digital office solutions Platform” serve as core practical training grounds. Through structured technical training
and digital business travel management, digital tools have been and project-based problem-solving, we have enabled the IT development team to master 3. Adherence to technology ethics
embedded into high-frequency scenarios such as daily office core technical capabilities including low-code interface development, data integration, and
API governance. Throughout the Company's drug clinical R&D process, we strictly comply with national laws, regulations, and
work and travel approvals, enhancing collaboration efficiency and
Currently, the team has achieved efficient, independent interface development capabilities, industry standards. All clinical trials are conducted only after obtaining approval from the drug regulatory authority
employee experience.
③ Omnidirectional interaction: The launch of the “Channel Lifecycle with an overall development efficiency improvement exceeding 50%. This has not only and passing ethics committee review. Our protocol design consistently adheres to the principle of "quality by
significantly reduced reliance on external resources but has also substantially built an design," ensuring the scientific validity, reliability, and operational feasibility of each trial.
Management” project has significantly improved order processing
efficiency—achieving a 99% channel order coverage rate, 99% internal digital middleware capability foundation, providing solid technical support for the
We place the highest priority on protecting the rights and interests of trial subjects, making this a primary
accuracy in payment notification delivery, and 99% payment Company's future business expansion and innovative applications.
consideration throughout the R&D process. Each subject is required to sign an Informed Consent Form in
reconciliation accuracy, substantially reducing operational costs. accordance with relevant regulations, ensuring that clinical trial procedures are standardized and data is reliable.
In 2025, the Company experienced no violations of technology ethics.
(II) Advancing accessible healthcare
In the rare disease field, we continuously optimize production processes and rationally manage costs to fill therapeutic gaps in pediatric rare
diseases in China while effectively reducing the financial burden on patient families, ensuring that innovative outcomes truly benefit the public.
As the first company in China to receive approval for Dinazone Oral Suspension, Yifan Pharmaceutical has not only filled the gap for a first-line
treatment for Congenital Hyperinsulinism (CHI), a pediatric rare disease, but has also improved the level of rare disease care by enhancing drug
accessibility, safeguarding the well-being of countless families. Building on its in-house R&D capabilities, the Company has secured exclusive
marketing rights for the original rare disease drug Tecfidera in Mainland China, actively establishing a two-way “bringing in and going global”
channel, thereby further enriching its rare disease product portfolio.
Meanwhile, we actively fulfill international health commitments. Through close collaboration with medical institutions, promoting broad coverage of
rare disease diagnosis and treatment services across all levels of society. Yifan Pharmaceutical consistently prioritizes enhancing the accessibility
of rare disease drugs as a key direction in our R&D and in-licensing efforts. Leveraging our professional expertise and resource advantages, we
strive to safeguard the equitable health rights and interests of rare disease patients, enabling more people to share a healthier future.
Focusing on Pediatric Rare Diseases: Yifan Pharmaceutical Featured at the National Annual Conference on Pediatric Endocrinology, Genetics and Metabolism
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Case: focusing on pediatric rare diseases—Yifan in action We are always committed to enhancing patient access to medicines globally. By pursuing a multi-pronged strategy encompassing national reimbursement listing (NRDL), participation in Volume-Based
Procurement (VBP), and international expansion, we achieve synergistic growth of corporate and social value.
In February 2025, the "CHI Pathway: Multidisciplinary Health Education Program for Inheriting and innovating TCM to contribute China's solutions. The Company holds 108 TCM product varieties, including 14 proprietary products listed in the National Reimbursement Drug List (NRDL).
Congenital Hyperinsulinism", exclusively sponsored by Yifan Pharmaceutical, was These include well-known products such as Compound Huangdai Tablets, Xiao'er Qingqiao Granules, Dehumidifying and Anti-Itch Ointment and Fufang Yinhua Jiedu Granules. Yifan Pharmaceutical is
among the domestic pharmaceutical companies with a significant number of proprietary products, particularly those included in the NRDL or the National Essential Medicines List. Compound Huangdai
successfully held on the People's Daily Health Client platform. During the event, experts
Tablets, a specific and effective treatment for acute promyelocytic leukemia (APL), had its molecular mechanism research published in the New England Journal of Medicine, a leading international journal,
systematically interpreted the clinical value of Dinazone Oral Suspension—the only first-line and received the Second Prize of the National Award for Scientific and Technological Progress. This product is not only recommended by China's APL diagnosis and treatment guidelines but has also
CHI treatment in China, developed by Yifan Pharmaceutical, and answered questions from been included in the expert consensus of the European LeukemiaNet (ELN). It stands as one of the few TCM products listed on the WHO Model List of Essential Medicines, bringing Chinese innovation to
parents of affected children online. The program attracted over 400,000 online views from patients worldwide.
medical professionals and parents of children with CHI.
As the first pharmaceutical manufacturer to fill this treatment gap in China, Yifan Compound Huangdai Tablets Fufang Yinhua Jiedu Granules
Pharmaceutical actively advanced the standardization of CHI diagnosis and treatment by
Clear heat and remove toxins, supplement Qi Dispel wind and release the exterior, clear heat and remove toxins, for
supporting this educational initiative, helping to bring quality medical resources to more and generate blood, for the treatment of newly the treatment of common cold and influenza with wind-heat syndrome.
families affected by rare diseases. diagnosed acute promyelocytic leukemia. National category III new Traditional Chinese Medicine, national
A proprietary drug in the NRDL and a product secondary protected Traditional Chinese Medicine variety,
in the WHO Model List of Essential Medicines included in the NRDL and the National Essential Medicines List
Domestically, universal healthcare continues to be implemented. The core product, BDDE-Crosslinked Sodium Hyaluronate Injection, has successfully been renewed for inclusion in the 2025 National
Reimbursement Drug List (NRDL), which not only enriches clinical medication options but also facilitates the allocation of high-quality medical resources to grassroots levels through the “Dual-Channel”
policy. Under public oversight, it ensures reasonable returns in underserved markets. Several of our key products maintain the NRDL eligibility, strengthening market competitiveness while demonstrating
the value of universal healthcare by effectively reducing patients’ medication costs. In Volume-Based Procurement (VBP) practices, the Company actively responds to national policies to promote
winning the product selection, rapidly expanding market coverage through “volume-driven pricing” strategies. This not only fulfills the social responsibility of a private enterprise but also achieves sustainable
operations through economies of scale.
Norepinephrine Bitartrate Injection
Used for blood pressure control in certain acute hypotensive states (e.g.,
BDDE-Crosslinked Sodium Hyaluronate Injection(Euflexxa)
pheochromocytectomy, sympathectomy, poliomyelitis, spinal anesthesia,
myocardial infarction, sepsis, blood transfusion, and drug reactions). Serves
It is indicated for adult patients with knee
as an adjunctive treatment for cardiac arrest and severe hypotension. For
osteoarthritis (OA) who experience inadequate
shock due to hypovolemia, this product is used as an adjunct to emergency
pain relief from non-pharmacological
volume replacement to raise blood pressure and temporarily maintain
conservative treatments and simple analgesic
cerebral and coronary artery perfusion until volume replacement therapy
therapy (e.g. acetaminophen).
takes effect. It may also be used to maintain blood pressure following
Imported product, NRDL negotiated drug
Public Health Education Lecture Events resuscitation from cardiac arrest.
product
NRDL product, Volume-Based Procurement (VBP) product
Yifan Pharmaceutical Product Information Statistics Internationally, the global layout is steadily advancing. Leveraging its well-established sales networks and industrial hubs across Europe, the United States, Japan, South Korea, and Southeast Asia,
the Company is deepening its expansion into ASEAN and African markets, promoting the internationalization of Chinese pharmaceutical products. Currently, the Company has established an extensive
Proprietary varieties 21 commercial network in more than 50 countries and regions, including Singapore, South Korea, Italy, Germany, and the United States, enabling high-quality domestic drugs to reach global markets.
Proprietary dosage form products 12
Proprietary strength products 4 Efbemalenograstim Alfa Injection (Ryzneuta)
Proprietary NRDL products 18 It is indicated for the prevention of neutropenia Dinazone Oral Suspension
in cancer patients following chemotherapy.
It demonstrates significant efficacy in treating hypoglycemia
Proprietary National Essential Medicines List products 5 It is the first innovative biotech drug in China associated with insulinoma/hyperinsulinemia, with good
whose Marketing Authorization Holder (MAH) safety and tolerability, and is recognized as the preferred/
National secondary protected Traditional Chinese Medicine varieties 1 has obtained regulatory approvals in China, first-line treatment.
the United States, the European Union, and
TCM products included in the WHO Model List of Essential Medicines 1 other countries.
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
(III) Maintaining strict safety standards
The Company thoroughly implements the Work Safety Law of the People’s Republic of China, shouldering full responsibility for work safety, and systematically enhancing the safety management system. We prioritize safety as central to our development strategy,
implementing regular risk checks, standardized equipment maintenance, safety education, and practical emergency drills. These efforts continuously strengthen the foundation of safety management, effectively ensuring the safety of employees and the stable operation of
the enterprise.
Safety risk control
In 2025, the Company kept optimizing its safety risk control mechanism based on specific circumstances: Evive Biotechnology (Beijing) has finished reassessing safety risk classifications, devised specific control measures; Hunan Furong Pharmaceutical
conducted regular inspections of firefighting facilities; Suzhou Yifan Pharmaceutical improved risk control through external expert reviews; Sichuan Defeng Pharmaceutical carried out 81 safety inspections throughout the year, identifying 109 hazards
with a rectification rate of 96.4%, and allocated RMB 10,502.6 in special funds for hazard remediation; Sichuan Kaijing Pharmaceutical established and operationalized a dual prevention system for graded risk control and hidden hazard investigation and
management; Liaoning Yifan Pharmaceutical updated internal systems based on dynamic risk assessments, identifying and rectifying 41 hazards throughout the year with a 100% rectification rate.
Meanwhile, Hefei Yifan Biopharmaceutical continuously updated and refined the Risk Control List and the “Dual Prevention Mechanism” Management Manual for Work Safety, forming a systematic risk management framework. In daily operations, in-depth
hidden hazard investigations and remediation were conducted, including regular, pre-holiday, and special inspections throughout the year. Identified issues underwent qualitative analysis, root cause tracing, and closed-loop rectification, achieving a 98%
rectification rate, and no major safety hazards were discovered. These efforts effectively ensured controllable safety risks for the Company.
The Safety Committee of the Biologics Business Division Regularly The Company Organizes Work Safety Training Key Safety Officers of the Biologics Business Division Lead Teams in Inspection
Organizes Work Safety Meeting
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Work safety awareness campaigns
Company Name Safety Promotion Measures
In 2025, while continuously improving the risk control system, we vigorously promoted transforming the safety philosophy
Hunan Furong Centered on the “Safety Month” theme, the company organized specialized training, high-temperature protection
from “passive compliance” to “internalization”. Subsidiaries and factories, based on actual production conditions, carried out Pharmaceutical campaigns, and heatstroke emergency drills to enhance employees’ ability in seasonal risk prevention.
diverse and extensive safety awareness education activities, embedding safety consciousness into the daily behaviors of all Tianchang Yifan The company developed the Work Safety Knowledge and Competency Handbook and carried out targeted promotional
employees. Pharmaceutical training to ensure safety knowledge is thoroughly understood and internalized.
Suzhou Yifan The company integrated safety promotion throughout the year, continuously carried out the “Five ONEs” knowledge
The Company systematically advanced annual safety training and publicity initiatives as planned, including regular special Pharmaceutical spot checks to reinforce employees’ safety awareness.
training on occupational health and fire safety and the “Three-Level Safety Education” for new employees. At the same time, Sichuan Defeng The company innovatively implemented a behavior safety incentive program and organized on-line fire safety
Pharmaceutical knowledge competition, achieving a participation rate of 81%, effectively boosting learning enthusiasm of employees.
leveraging platforms such as “Work Safety Month” and “Fire Safety Month”, the company fostered a positive environment
Sichuan Kaijing Leveraging special periods such as Safety Month, Fire Safety Month, etc., the company conducted centralized
where everyone learns and advocates safety through diverse activities including training sessions, competitions, and drills,
Pharmaceutical thematic publicity and practical drills to strengthen the emergency response capabilities of all employees.
effectively enhancing employees’ safety awareness and emergency response capabilities.
Liaoning Yifan The company established a diversified publicity matrix and successfully organized a series of activities for “Work
Pharmaceutical Safety Month”, embedding safety awareness deeply into the corporate culture.
The Sixth “Work Safety Month” Activity of the Small Molecules (TCM) Business Division Anqing Xinfu Organizes Fire Emergency Drill Evive Biotechnology (Beijing) Organizes Work Safety Emergency Drill
Yifan Pharmaceutical has always regarded product quality as the legal cornerstone and moral baseline for the Company’s development.
We fully implement the primary responsibility for product quality, strictly comply with laws and regulations such as the Drug Administration
Law of the People’s Republic of China and its implementing regulations, and establish a quality control system covering the entire
production process. We are deeply aware that every pill carries the trust of patients for life. Therefore, we continuously strengthen the
management of key aspects and processes of drug quality. In 2025, the Company did not experience any major safety or quality liability
incidents related to products or services.
Yifan Pharmaceutical Formulation Management Center launched the “Quality Improvement Special Initiative”, establishing a unified
quality policy of “Quality as the Foundation, Innovation for Adaptation, and Pursuit of Excellence”, which was officially implemented since
September 1, 2025. Centered around this policy, subsidiaries organized and carried out quality knowledge competitions, deepened
self-inspection and self-correction risk controls, and combined these efforts with the internal “Quality Month” activities. These initiatives
effectively enhanced the quality awareness and management level, led to the certification under PIC/S regulations, further solidified the
quality culture atmosphere, and injected sustained momentum into the effective operation of the quality system.
In 2025, the Formulation Management Center’s first-pass qualification rate remained above 99.9%, while the market sampling
Organizing Quality Knowledge Competitions
qualification rate has consistently reached 100% for consecutive years.
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Case: Xinzhu Plant introduces Kanban management, leveraging “Visualization” to enhance both quality and compliance Case: GembaWalk team drives quality management enhancement through
routine inspections
Since its establishment, the Xinzhu Plant has been systematically building a comprehensive quality management system aligned with business development
needs. This system covers six key areas: Quality, Production, Materials, Facilities & Equipment, Laboratory, and Packaging. To address increasingly diverse The Biologics Business Division established a dedicated GembaWalk team to encourage managers to step
operational scenarios, the plant’s teams innovatively introduced the “+QDCI Kanban Management” mechanism, which includes six modules: EHS (+), out of their offices and engage deeply with the production frontlines, confronting the actual conditions of
Quality Management (Q), Delivery of Results (D), Cost Control (C), All Employees Involvement (I), and Hot Topics. This approach enables full visualization of operational processes, equipment performance, and material flow. Through on-site observation and cross-
management elements. departmental collaboration, the team accurately uncovers latent issues that are often invisible in report
data. This not only helps the management break down information barriers and grasp on-site realities but
Management” Quality Delivery of Cost All Employees
Hot Topics
mechanism Management (Q) Results (D) Control (C) Involvement (I) Since its establishment, the GembaWalk initiative has demonstrated significant results across multiple
EHS (+)
dimensions, including compliance strengthening, risk reduction, process optimization, employee
empowerment, and the deepening of quality culture. Routine on-site supervision keeps all employees
Since the implementation of Kanban management and morning meeting mechanisms, the QA team has routinely conducted cross-departmental surprise
consistently vigilant about compliance, internalizing high-standard behavioral norms as daily habits,
inspections, delving deep into the production frontlines to directly observe operational processes, equipment performance, and material flow. This approach has
thereby solidifying the dual defenses of product quality and work safety.
enabled the precise identification of numerous hidden issues that are difficult to detect through office reports. Visible and transparent management has made
quality control more robust and actionable.
Kanban morning meeting of QA team Quality culture debate competition organized by QA team The QA team collaborated with various departments to discuss
solutions for issues identified by the GembaWalk team.
The company strictly complies with regulatory requirements
such as the Drug Administration Law of the People's Republic of
China, Good Manufacturing Practice for Drugs, and Drug Recall Case: Yifan Pharmaceutical organizes simulated recall drill for Capecitabine Tablets
Management Measures, and has established a robust product
On September 25, 2025, the Small Molecules (TCM) Business Division organized an emergency drill for product safety incidents to test the
recall system. Each manufacturing site under the Preparation
execution and response efficiency of the active recall procedure. Using Capecitabine Tablets as the simulated object, the drill was initiated
Production Center has developed Drug Recall Management
without prior notice at 7:30 a.m., fully simulating the entire process from incident reporting and recall instruction issuance to information tracing.
Procedures, creating a coordinated institutional framework from top
to bottom. This batch of product involved a total shipment of 48,975 boxes distributed to 38 partners across 16 provinces (autonomous regions) nationwide.
On the launching day, the Quality Assurance Department completed the preparation of the recall notice, while the Sales Department and
In 2025, the Company did not experience any actual product recall
Logistics Department simultaneously initiated customer notifications. The Information Department publicized the recall information on the official
incidents. Through regular simulated recall drills, the operability
website. By September 29, all finished product inventory and drug distribution information had been fully traced and compiled, successfully
and effectiveness of the recall procedures were fully validated,
completing the simulated recall task.
demonstrating the Company’s rapid response capability to potential
product issues and its well-established product traceability system.
Product Recall Simulation Drill Site
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
COLLABORATION FOR
MUTUAL SUCCESS AND
VALUE CREATION
Contributing to Sustainable
Development Goals (SDGs)
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Risks and opportunities
Governance
Category Specific content Countermeasure
Each business division is responsible for overseeing supplier admission, evaluation, grading, and exit management. Relevant divisions formulate supplier
management policies, review major procurement matters, and supervise compliance within the supply chain. In customer service, the divisions coordinate Dependence on single-source suppliers, Implement dual/multi-source supply strategies to
complaint handling, customer satisfaction surveys, and service process optimization to ensure effective protection of customer rights. geopolitical conflicts, natural disasters, etc. reduce reliance on single suppliers; establish a
Supply chain
may lead to interruptions in the supply of critical supplier alternative database and regularly assess
disruption risk
materials, affecting production continuity and supply risks; strengthen inventory management to
delivery capabilities. ensure safe reserves of critical materials.
Enhance the quality management system to ensure
Strategy Issues such as product quality problems, delayed
Customer complaint handling, and privacy breaches may
product safety and efficacy; optimize complaint
trust risks
handling processes to improve response speed
Guided by the principle of “Openness for Mutual Benefit, Collaboration for Long-term Success”, the Company is committed to building a responsible and undermine customer trust, affecting brand
and customer satisfaction; strengthen data security
sustainable supply chain ecosystem and customer service system. In the supply chain domain, a green supplier selection mechanism is implemented, reputation and market share.
protection to prevent privacy breaches.
prioritizing partners with strong environmental compliance and social responsibility. Localized procurement is deepened to enhance supply chain resilience and
responsiveness, while integrity management is strengthened to foster a transparent and fair cooperation environment. In customer service, a “Professional, Implementing localized procurement can shorten Develop regional resource maps to identify key
Transparent, and Efficient” system is established, leveraging multi-channel communication platforms, a three-tier complaint handling mechanism, and customer Localized supply cycles, reduce procurement costs, procurement areas; promote the “direct sourcing from
satisfaction follow-ups to continuously improve customer experience and satisfaction. Additionally, the Company actively fulfills social responsibilities by leveraging procurement and simultaneously drive regional economic production areas” model to streamline intermediate
its professional expertise to support the health and public welfare initiatives of the community. opportunities development while strengthening government- processes; cultivate local potential suppliers to
enterprise partnerships. achieve win-win cooperation.
Objectives and targets
Number of suppliers signing integrity Number of customer complaints: 467 Customer complaint response rate: Customer privacy breaches or theft-related Total investment in public welfare activities:
commitments: 1,931 100% security incidents: 0 RMB 6.0176 million
(I) Supply chain management
?Supplier admission mechanism
Based on product development, approval, and production progress, the Company identifies required raw materials, excipients, and packaging materials. The quality management department establishes corresponding quality standards and screens potential suppliers
according to system requirements. After passing qualification review, suppliers provide samples, which are jointly evaluated by the Quality Management Department and the product-related department for suitability. Upon successful sample validation, the Procurement
Department and Quality Management Department conduct a new supplier admission assessment, focusing on production environment, quality control systems, and environmental risks. On-site audits are performed when necessary. Suppliers meeting environmental and
quality requirements are included in the Approved Supplier List.
For suppliers requiring on-site audits, the regular audit frequency is once every two years. If the supplier receives an grade A in two consecutive on-site audits, the frequency may be adjusted to once every three years. If subsequent audit results fall below grade A, the
frequency reverts to once every two years (audit methods may be adjusted flexibly based on actual conditions). For suppliers not subject to on-site audits, if major quality indicators of their products show abnormal fluctuations, targeted audits shall be initiated promptly to
ensure ongoing stability of the supply chain quality.
The Small Molecules (TCM) Business Division has established the Supplier ESG Admission Standards, making environmental facility acceptance and carbon footprint verification mandatory requirements. Differentiated criteria are applied: suppliers of Chinese herbal
medicines and prepared slices must possess “fresh processing” qualifications and provide certificate of genuine medicinal materials, records of pesticide and fertilizer usage, and test reports confirming compliance for pesticide residues and heavy metals. Chemical drug
ingredient suppliers must submit GMP certification and associated review qualification documents. Companies found to be non-compliant with environmental standards, violating labor regulations, or associated with negative information will be subject to an immediate exit
mechanism upon verification.
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
?Tiered management and control of suppliers
To achieve refined management of suppliers, the Small Molecules (TCM) Business Division has established a scientific supplier risk assessment system. Through annual dynamic tracking, evaluation, and classification, it ensures the continuous stability of the supply chain quality. The evaluation system
covers six core dimensions, including qualification compliance, quality stability, and traceability capability, and introduces ESG weighting scores: Environment (50%, including carbon emissions, energy efficiency, waste management, and environmental compliance), Social (30%, including employee rights,
work safety, community responsibility, and supply chain management), and Governance (20%, including compliance management, transparency, business ethics, and risk control). Based on the comprehensive score, suppliers are classified into three levels—Grade A (Excellent), Grade B (Satisfactory), and
Grade C (Restricted)—for dynamic management and tiered responses.
carbon energy waste environmental
emissions efficiency management compliance
>> >> >> >>
employee work community supply chain
Social
Environment Social Governance rights safety responsibility management
>> >> >> >>
compliance business
Governance transparency risk control
management ethics
Meanwhile, the business divisions categorize suppliers into a three-tier supplier echelon based on the importance of product categories, establishing differentiated access and assessment systems:
Suppliers that directly impact the core product competitiveness and supply chain security of the Business Division's core products, involving patented APIs, exclusive APIs (including monopolized supplies), exclusive excipients, and critical pharmaceutical packaging materials
Excellent suppliers (sterile/injectable). These suppliers are eligible for priority order allocation, long-term framework cooperation agreements, priority participation in new product collaboration and price negotiations, and regular strategic cooperation communications to jointly improve quality and
supply efficiency, and reduce the costs.
Satisfactory suppliers Suppliers with relatively stable quality and cost advantages, including suppliers of packaging materials, consumables, and other related materials.
Restricted suppliers Suppliers of general non-production materials and emergency backup suppliers.
In 2025, supply chain resilience continued to strengthen, with the proportion of excellent and satisfactory suppliers increasing to 70%, and the supply assurance capability for critical materials being significantly consolidated. Specifically, the on-time supply rate for Chinese medicinal materials and medicinal
slices reached 99%, and the supply stability for chemical drug ingredients reached 98%. There was no production interruptions caused by supplier issues throughout the year, and no compliance risk incidents such as environmental penalties or labor disputes among cooperating suppliers. The overall
supply chain operation remained stable and controllable.
?Supplier integrity management
The Company conducts regular assessments of supplier performance and continuously strengthens the management of the entire supply chain process. In terms of anti-corruption and anti-bribery, in accordance with internal regulations such as the Anti-Commercial Bribery Compliance Management System
and relevant national laws and regulations, anti-corruption clauses, definitions of violations, and reporting hotlines are explicitly included in contracts and bidding documents. Additionally, the Company signs Anti-Commercial Bribery Agreement with suppliers to enforce constraints from the institutional source.
The Company’s office automation (OA) portal provides online and QR code-based reporting channels, offering rewards and strict protection to reporters while firmly resisting any form of retaliation. This ensures unimpeded supervision channels and timely feedback, establishing a comprehensive supervision
mechanism covering pre-event, in-process, and post-event phases.
To strengthen integrity and compliance management in the supply chain, the Company implements a tiered approach to handling supplier violations:
◎ For minor violations, written warnings will be issued, requiring the submission of a compliance rectification report within 10 working days; all procurement and custom R&D cooperation related to small molecule Traditional Chinese Medicine will be suspended until acceptance is approved; 10%–20% of the
performance bond will be deducted, and the violation will be recorded in the integrity file.
◎ For serious violations, all cooperation will be terminated immediately, with full compensation for economic losses required, illegal gains recovered, and the supplier blacklisted by the company and within the industry, with notifications circulated industry-wide.
Simultaneously, an internal coordinated accountability mechanism will be established. Employees involved in colluding with suppliers for bribery will be subject to penalties such as demotion or dismissal, depending on the severity of the offense. Cases involving suspected job-related crimes will be referred to
judicial authorities, with results publicly disclosed to serve as a deterrent, ensuring the implementation of “investigating and punishing every identified case”.
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Screening green suppliers
Inner packaging Outer packaging
Establishing a green supplier standard system. The Small Molecules (TCM) Business Division has formulated the “Green Supplier Grading Standards”, which Raw material suppliers Excipient suppliers
material supplier material supplier
explicitly require suppliers to obtain ISO 14001 Environmental Management System certification. The target is for green suppliers to account for 75% of the total
by 2026. This year, five suppliers failing to meet environmental standards have been phased out. Additionally, priority is given to procuring Chinese medicinal Production license 124 127 43 40
materials that are GACP (Good Agricultural and Collection Practices) certified, organically certified, or cultivated through ecological farming practices, ensuring
environmental friendliness from the source.
GMP compliance
Strengthening the access and dynamic evaluation mechanism. The Small Molecules (TCM) Business Division issues the Green Supply Chain Management
Standards, incorporating the “Environmental Compliance Commitment Letter” and product environmental attributes into the criteria for new supplier admission. A Environmental permit 71 90 50 32
dedicated “Green Performance” category, weighted at 20%, is established in the annual performance evaluation, with quantitative scoring across four dimensions:
environmental certification, resource consumption, pollutant emissions, and green innovation. Suppliers with excellent evaluations receive priority in orders and
Health and safety
payment terms, while those failing to meet standards for to consecutive years face quota reductions or elimination. clearance
Promoting quantitative management of environmental performance. The Small Molecules (TCM) Business Division develops the Detailed Rules for Supplier
Green factory
Environmental Performance Evaluation, specifying quantitative targets such as a carbon emission intensity ≤50 kgCO₂e/RMB 10,000 of revenue and a
renewable energy usage rate ≥20%. In 2025, specialized rectification was completed for 20 key suppliers, continuously improving the overall environmental
performance of the supply chain.
Building green supply chain
Practicing green transportation
The Global Business Division continues to advance the
construction of a green logistics system, focusing on both load
optimization and route planning to effectively achieve energy
conservation and emission reduction in transportation. In the
loading process, through wave management, intelligent order
consolidation, and the “single-line multi-delivery” model, we
have significantly improved vehicle loading rates and reduced
empty-load rates, resulting in a 20% year-on-year decrease in
transportation energy consumption. In route planning, leveraging
the TMS transportation management system, we integrate multi-
dimensional information such as real-time traffic conditions,
order density, vehicle load, and delivery time windows to achieve
intelligent and dynamic route optimization. This has led to a 20%
reduction in both annual mileage and fuel consumption, along
with a notable improvement in vehicle turnover efficiency.
Enhancing green warehousing
In 2025, to support business development, Yifan Pharmaceutical
added approximately 7,000 square meters of warehouse space
and introduced a “distributed cold source central air conditioning
system + IoT integrated management system”. This solution
ensures GSP-compliant storage while saving over 10% in
initial investment, reducing operational energy consumption
by over 20%, and improving comprehensive energy utilization
efficiency by over 20%. Through dual temperature and humidity
control and intelligent management, the system achieves
precise environmental regulation and remote operation and New Warehouse Space Intelligent Warehousing System of Intelligent Temperature and Humidity Monitoring System
Yifan Pharmaceutical
maintenance, effectively ensuring drug storage safety and
reducing management burdens.
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Implementation of localized procurement
To enhance supply chain resilience and achieve cost reduction and efficiency improvement, the Procurement Management Center of the Small Molecules (TCM) Business Division has vigorously promoted the localized procurement of raw materials. The specific measures and outcomes are as follows:
Developing a regional resource map to identify Implementing the “Direct Sourcing from Origin” Cultivating local potential suppliers for Significant increase in bidding procurement ratio
key procurement areas model to reduce intermediate links win-win cooperation with cost reduction and efficiency improvement
Supplier resources in the locations of various subsidiary companies For key authentic medicinal materials such as honeysuckle and Provide technical guidance to local suppliers with development The proportion of bidding procurement for TCM prepared slices
were reviewed, determining Bozhou as a key procurement base for wild chrysanthemum, the Company bypasses intermediaries potential, helping them meet procurement standards. This reached 80% in 2025, a 50% increase compared to 2024. This
TCM medicinal slices. Simultaneously, potential supplier databases and directly conducts bidding procurement from standardized ensures stable supply while reducing procurement costs. has significantly shortened the procurement cycle and effectively
in Sichuan, Hebei, and other regions were identified, laying the planting bases or processing enterprises in Hubei, Tianchang, controlled costs.
foundation for localized procurement. and other regions, effectively reducing procurement costs.
Promoting centralized procurement of Reviewing single-supplier materials and Integrating internal demand resources to Introducing new suppliers to strengthen
excipients to gain price advantages implementing dual/multi-source strategies leverage scale procurement advantages competition mechanism
The Company signed long-term agreements with strategic The Company stimulated competition by introducing new
The Company conducted a thorough review of key materials and The Company consolidated procurement demands from
suppliers, achieving a 30% price reduction for coating powders. suppliers. For example, after introducing new composite film
promoted the transition from single suppliers to dual or multi- subsidiaries across business divisions to form bulk purchasing
This enhances economies of scale and bargaining power in suppliers, the overall price of composite films decreased by 5%;
source suppliers, reducing the risk of supply disruptions. power, securing more favorable prices in supplier negotiations.
excipient procurement. after introducing a new carton supplier, prices dropped by 2%.
Strengthening industry-academia-research collaboration
Yifan Pharmaceutical adheres to a patient-centric and clinically value-driven philosophy of responsible innovation, serving as the core engine for
driving long-term social and environmental value. By fostering an open collaborative ecosystem integrating industry, academia, and research,
continuously increasing investment in independent R&D, and promoting innovation across the entire product lifecycle, we are committed to
developing more effective, accessible, and environmentally friendly pharmaceutical solutions, contributing to global health and sustainable
development goals.
The Company accelerates the transformation of innovative achievements through deep integration of “industry-academia-research-application”.It
engages in in-depth collaborations with universities such as Zhejiang University, Beijing University of Chinese Medicine, and China Pharmaceutical
University to bridge basic research and industrial applications..
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Strengthening strategic collaborations
In 2025, Yifan Pharmaceutical continued to deepen global industry collaboration, enriching its product portfolio and expanding its
market presence through multiple strategic partnerships. Secured marketing rights in Mexico and Central America for the licensed product Abiraterone Tablets;
Secured exclusive marketing rights in mainland China for Bayer’s flagship targeted therapies, Stivarga and Nexavar; Secured marketing rights in the Philippines for the licensed product Dydrogesterone Tablets;
Secured exclusive marketing rights in mainland China for the Tecfidera from Biogen; It signed an agreement with Sygardis Rus, LLC for the co-development of oxytocin nasal spray, laying a solid market and resource foundation for
future product expansion into Russia and surrounding markets.
Secured marketing rights in Colombia and Central America for the licensed product Nilotinib Capsules;
In November 2025, Yifan Pharmaceutical Was Invited to Participate in the 91st National Pharmaceutical Fair in Nanjing. In June 2025, Yifan Pharmaceutical Participated in the BIO International Convention in the United States In November 2025, Yifan Pharmaceutical Attended the
European Congress on Biotechnology.
Case: Yifan Pharmaceutical made its debut at the China Health Ecology Organization
(CPEO), collaborating with the industry to build a new ecosystem for
pharmaceutical retail growth.
On August 16, 2025, the 18th China Health Ecology Organization (CPEO), themed “Rapid Transformation, Navigating
the New Cycle—Reconstructing Growth Momentum and Evolving the Industrial Ecosystem”, was held in Bo’ao,
Hainan. The conference focused on the development direction of the health industry against the backdrop of pressure
across the entire pharmaceutical terminal market. Yifan Pharmaceutical, as a company deeply rooted in the hospital
market, made its debut as a new participant in the retail channel. Guided by the core philosophy of “Co-building
Golden Categories, Achieving Win-Win with Diverse Categories”, it presented systematic solutions to help the retail
channel overcome challenges and enhance efficiency.
Moving forward, the Company will continue to refine its product matrix and deepen collaboration models, evolving from
a “new face” in the retail channel to a trusted “Category Growth Partner”.
The 18th China Health Ecology Organization (CPEO)
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(II) Protecting customer rights
The Company strictly complies with the requirements of laws and regulations such as the Advertising Law of the People’s Republic of China and the Drug Administration Law of the People’s Republic of China, adhering to the principles of truthfulness, legality, and integrity in advertising content. We firmly
reject false or misleading promotions and take full responsibility for consumer safety. In September 2025, together with 15 pharmaceutical companies, we launched the “Responsible Marketing · Safeguarding Medication Safety” industry initiative. This initiative commits to strict adherence to advertising laws
and pharmaceutical marketing standards, eliminating exaggerated claims and misleading consumer practices, and collectively building an integrity-driven marketing system within the industry. The initiative has received full recognition from relevant departments of the National Medical Products Administration,
highlighting the commitment of the Company and industry partners to compliant marketing and safeguarding public health.
Expanding marketing training
In April 2025, the Company conducted specialized training for over 1,200 employees in the global marketing and sales departments, inviting industry experts and senior lawyers to provide in-depth interpretations of regulations such as the Measures for the Record Management of Pharmaceutical
Representatives and the Advertising Law of the People’s Republic of China. Through case studies and scenario-based simulations, the training systematically explained the hazards and prevention measures for violations such as exaggerated promotions and commercial bribery, effectively strengthening
employees’ compliance awareness and ideological defense. All participants passed the post-training assessment with a 100% pass rate, laying a solid foundation for standardizing marketing practices and mitigating compliance risks.
In August 2025, tailored training sessions were organized for overseas regional marketing teams, focusing on marketing compliance requirements and cultural differences in various countries. Case studies on localized marketing strategies for products such as Clofarabine and Vincristine were shared to
guide teams in adhering to local regulations and respecting cultural diversity. A total of six sessions were held, involving over 800 participants, and 46 feedback suggestions for optimization were collected from the teams.
Case: Yifan Pharmaceutical held 2025 annual management conference
In August 2025, Yifan Pharmaceutical held its annual management conference under the theme “Integrating Training and Execution: Focusing on
Growth”. Centered on the core philosophy of “management serving business operations”, the event focused on enhancing the practical capabilities
of the marketing system to fully empower business growth. In response to the evolving pharmaceutical industry policies and intensifying market
competition, the conference reviewed the business performance of the first half of the year and summarized terminal breakthrough strategies tailored
to regional characteristics, injecting strong momentum for market breakthroughs in the second half year. The conference adhered to the principle of
“using training to promote execution and using execution to validate training”, fostering consensus on development through intellectual exchanges
and honing core competencies through practical simulations. This laid a solid foundation for the company to seize market opportunities and achieve
sustainable growth amid industry transformations.
The Company Organizes Employee Participation in Responsible Marketing Training
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Strengthening brand building In July, the Company showcased at the Singapore
Global Innovative Medicine Forum, setting up a
In terms of brand building, the Company actively participated in national and provincial-level large-scale academic conferences, leveraging high- dedicated booth to display its core products in
level academic promotion platforms to significantly enhance the brand exposure and industry influence of its core products. At the same time, closely hematologic tumors and solid tumors, as well as its
aligning with the actual characteristics of various regional markets, the Company developed differentiated marketing strategies, moving away from a sustainability achievements. It also hosted a sub-forum
“one-size-fits-all” approach to ensure more precise and effective brand communication. titled “Innovative Drug R&D and Global Accessibility”,
attracting over 300 companies for collaboration
In 2025, Yifan Pharmaceutical continued to enhance its global brand influence through a dual approach of offline deep engagement and online
discussions. The event received coverage from
content dissemination.
overseas media more than 20 times, further expanding
the Company’s international business cooperation
network.
In September, the Company participated in the
Chinese Society of Hematology Annual Meeting
organized by the Chinese Medical Association, where
it showcased its hematology products, including
Compound Huangdai Tablets, Pufanle, Clofarabine,
and Vincristine, and received over 500 on-site
inquiries.
Yifan Pharmaceutical Participated in Industry Academic Annual Meetings and Specialized Academic Conferences
Proportion of complaint types
We always prioritize customer needs, building a professional, transparent, and efficient multi-channel customer service system as a key pathway to drive sustainable corporate development. We actively
uphold the United Nations Sustainable Development Goals of “Good Health and Well-being” and “Responsible Consumption and Production”. The Company continuously refines marketing standards,
enhances service professionalism, and optimizes the omnichannel interaction experience. This not only provides customers with safe, professional, and thoughtful all-around support but also empowers
the steady improvement of public health through innovative practices. We are committed to setting a benchmark for societal health development, ensuring that health and well-being benefit a broader
population.
Product usageconsultations
Service process issues
In 2025, the Company continued to optimize its “three-level complaint handling mechanism”, establishing an integrated online and offline complaint channel (400 hotline, official App, WeChat official
account, and offline service outlets). It defined six categories of complaint classification standards (product quality, service attitude, usage consultation, etc.), established tiered response time frames (24 Product quality issues
hours for general complaints, 2 hours for major complaints), and introduced a customer satisfaction callback mechanism. Through monthly case reviews, the “Complaint Handling Optimization White
Others
Paper” was produced. Throughout the year, 8 processes were optimized, and a dedicated response channel for pediatric medication consultation was added, continuously enhancing the customer service
experience.
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Complaint handling
In 2025, the Company’s customer service system continued to improve
in quality and efficiency. The 400 service hotline received a total of
of approximately 400 calls and a daily response capacity of 20–30
calls, ensuring “zero busy signals and zero missed calls” for customer
inquiries. Building on this, the Company proactively conducted 1,388
customer callbacks, covering 30% of the total incoming calls, driving
the service model to upgrade from “passive response” to “active care”,
further strengthening the foundation of customer trust.
The Global Business Division corporate email received 1,454 valid
emails throughout the year, 98% of which were in English, reflecting the
breadth and depth of the Company’s global presence. All email handling
strictly adhered to the Data Security and Privacy Protection Policy, fully
aligning with the ISO 27001 Information Security Management System.
This ensured end-to-end encryption of customer business information,
access logging, and regular audits, establishing a robust data security
defense in line with international standards.
Service creates value
In 2025, by continuously optimizing our service system and deepening global
collaboration, we created more value for our domestic and international
partners.
In terms of full product life cycle services, the Company has closely
collaborated with domestic and international partners to accelerate key
regulatory upgrades: In China, it successfully supported the National Medical
Products Administration (NMPA) in approving the supplemental application for
changing the administration of Ryzneuta from 48 hours to 24 hours, providing
an official basis for earlier clinical medication and helping to enhance patient
treatment outcomes and medical efficiency; in the European Union, it facilitated
the approval of the self-injection indication for Ryzneuta, making home-
based treatment possible and significantly improving patient accessibility and
convenience.
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
(III) Supporting public welfare initiatives
Yifan Pharmaceutical actively fulfills its corporate social responsibility by deeply engaging in public welfare initiatives. Leveraging its professional expertise in the pharmaceutical and healthcare sectors, the Company proactively participates in social services, precisely addressing grassroots needs. Through
health assistance, industrial support, and various other forms of aid, Yifan Pharmaceutical continuously empowers community development and improves people’s livelihoods. While boosting local economic growth, we are committed to promoting social progress, demonstrating the responsibility and
accountability of a pharmaceutical enterprise in the new era.
In 2025, the Company stood out for its remarkable performance in corporate social responsibility and philanthropy, and was selected as one of the “Hangzhou 2025 Listed Company with Growing ESG Strategic Philanthropic Influence”. It also received prestigious philanthropic honors, including being named
one of the “Top 500 Chinese Manufacturing Enterprises in Philanthropy” and one of the “Top 500 Chinese Private Enterprises in Philanthropy”.
Total investment in public welfare activities:RMB 6.0176 million
Case: Yifan Pharmaceutical organizes the “Jianxin Health
Care” brand public welfare activity
From January to December 2025, Yifan Pharmaceutical carried out activities
Community Summer Cooling Services Employees Promote Anti-Fraud Awareness Among Local Businesses Annual Five-Water Governance Initiative across 15 provinces and cities in China, organizing teams of medical experts
to conduct free clinics, promote hematological tumor awareness, and provide
charitable drug donations in remote areas and communities. The activities
were broadcast live on multiple platforms, thereby enhancing the brand’s
social reputation.
Organizing “5e Convenience Services” to Provide Free Appliance Volunteering at Traditional Chinese Medicine Hospitals for Residents Organizing Employee for Voluntary Blood Donation “Jianxin Health Care” Brand Public Welfare Activity
Repairs for Residents
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
SAFEGUARDING
EMPLOYEE
DEVELOPMENT WITH
PEOPLE-ORIENTED
APPROACHES
Contributing to Sustainable
Development Goals (SDGs)
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
?Risks and opportunities
Governance
Category Specific content Countermeasure
The Company has established an employee development governance system centered around the Human Resources and Administration
Center, with collaborative promotion from various business units. This system centrally formulates overarching policies in areas such as Continuously optimize the compensation and incentive system,
employee relations, compensation and benefits, talent development, and occupational health and safety, ensuring unified implementation Under the situation of intense market competition for improve the dual-track career advancement mechanism of
standards across all business units. Under the Board of Directors, the Remuneration and Assessment Committee is responsible for core R&D and international talents, inadequate incentive “management + professional expertise”; promote long-term
reviewing compensation incentive plans and overseeing the implementation of performance assessments for directors and senior Talent loss risk mechanisms and blocked career development pathways incentives such as equity incentives and project profit-sharing to
management. In occupational health and safety, a three-tier management mechanism has been established, led by the EHS Committee and may lead to the loss of key personnel, affecting business strengthen the alignment of interests with core talent; enhance
implemented by dedicated departments at each base, ensuring comprehensive safeguarding of employee rights and interests. continuity and innovation capabilities. corporate culture identification and boost employees’ sense of
belonging.
Strictly comply with labor laws and regulations, standardize
Inadequate implementation of employment policies, non-
labor contract signing and employment management; conduct
Strategy Employment
standard labor contract management, and improper
regular self-inspections on employment compliance and
application of working hour systems may lead to labor
The company adheres to the philosophy of “Talent as the Foundation, Value Co-creation”, with the core objective of “Empowering Employee compliance risk promptly rectify identified issues; strengthen legal and regulatory
disputes or regulatory penalties, affecting corporate
Growth and Fostering Talent Development”. It has established a systematic talent cultivation and incentive mechanism. In terms of rights training for the HR team to enhance compliance awareness and
reputation and operational stability.
protection, the Company fully implements equal employment and refines the compensation and benefits system. For talent development, it execution capabilities.
continuously enhances talent density and tiered talent reserves through tiered and categorized training, dual-track promotion, and key talent Enhance the occupational health and safety management
programs. In occupational health and safety, the Company strictly complies with regulations and international standards, strengthening risk Inadequate control of occupational hazards, insufficient
system, strengthen hazard monitoring and protection; conduct
identification, emergency drills, and safety training. Regarding employee well-being, it deepens employee care and democratic management, safety training, and lack of emergency drills during
Occupational health regular safety training and emergency drills to improve
fostering a warm, inclusive, and equally participatory work environment, thereby tangibly enhancing employees’ sense of gain, happiness, production processes may lead to occupational health
and safety risk employees’ safety awareness and emergency response
and belonging. damage or safety incidents, endangering employees’
capabilities; increase safety investment to ensure the provision
lives and health as well as normal business operations.
of protective facilities and equipment.
Refine the tiered and categorized training system, advance
A systematic talent development system can enhance key talent programs such as the “Voyager Program”; deepen
Talent development employees’ professional skills and overall competencies, industry-education integration, strengthen collaboration with
opportunity stimulate organizational vitality, and provide solid talent universities and research institutions; build an internal instructor
support for sustained business growth. database and course resource library to foster a continuous
learning culture.
Objectives and targets
Number of occupational health and safety training Number of participants in occupational health and
Labor contract signing rate: 100% Social insurance coverage rate: 100% Total number of employees: 4,182 sessions: 60 safety training: 2,687 persons
(I) Safeguarding employee rights and interests
Protection of employee rights and interests
Yifan Pharmaceutical strictly adheres to laws and regulations such as the Labor Law of the People’s Republic of China and the Labor Contract Law of the People’s Republic of China. The Company signs labor contracts with all employees in accordance with the law, upholds the principles of fairness,
justice, and transparency in recruitment management, and continuously promotes the standardization and normalization of employment practices to build harmonious and stable labor relations. In line with the Employee Relationship Management System and the Recruitment and Employment Management
System, the Company has further strengthened its onboarding review mechanism by implementing stricter verification procedures to prevent the inadvertent employment of individuals under the age of 16, thereby eliminating child labor at the source. In terms of protecting employee rights, the company fully
implements the principle of equal employment, maintains a balanced gender ratio and a diverse age structure, and has not encountered any labor dispute cases involving child labor or forced labor. Additionally, all labor contracts include specific clauses regarding labor protection, working conditions, and
occupational hazard prevention, effectively safeguarding the legitimate rights and interests of employees.
In 2025, all subsidiaries of the Company achieved a 100% labor contract signing rate and 100% social insurance coverage rate.
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Gender structure Education structure Age structure Work type structure
Male employees 2,398 persons Proportion of employees with
Master's Degree or Higher 6.79% Under 30 years old 1,010 persons Percentage of
production staff 38.55%
Percentage of
financial staff 3.90%
Female employees 1,784 persons Proportion of employees with
Bachelor’s Degree 35.87% 50 years old and above 624 persons staff 23.91% administrative staff 2.30%
Proportion of employees with Percentage of Percentage of
Associate Degree or below 57.34% technical staff 19.99% managerial staff 11.35%
Compensation and benefits
The Company has established a diversified compensation and benefits system centered on equal pay for equal work, balancing fairness and incentives.
In terms of compensation, various models such as position-based wages, position-skill-based wages, and “base salary + piece-rate/commission/performance” are implemented according to the characteristics of different roles. By signing special collective wage agreements and establishing a compensation
incentive mechanism that grows in tandem with the Company’s performance, the Company ensures continuous improvement in employee compensation. In 2025, the Company’s business divisions revised and issued the Performance Management System for Marketing Employees and the Job Qualification
Management System, further refining the performance management and competency assessment mechanisms, thereby providing solid institutional support for differentiated compensation and employee career development.
In terms of welfare benefits, the Company has progressively improved its “basic benefits + personalized benefits” system. Paid annual leave, marriage leave, bereavement leave, maternity leave, and breastfeeding leave are provided in accordance with the law, fully safeguarding employees’ rights to rest
and leave. At the same time, the Company continues to enrich its unique corporate benefits. In September 2025, the Company’s business divisions issued the Welfare Management System, specifying benefits such as holiday gifts for Spring Festival, Dragon Boat Festival, Children’s Day, and Mid-Autumn
Festival, as well as birthday blessings for employees. Combined with holiday bonuses, wedding and childbirth gifts, condolence payments, and various work-related subsidies, these measures effectively enhance employees’ sense of fulfillment and belonging.
In 2025, closely aligning with the “Innovation and Internationalization” strategy and focusing on “Organization, Talent, and Culture” as core drivers, we advanced the transformation of the HR and administration functions from traditional support to a dual-wheel drive of “empowerment + risk control”. This effort
continuously strengthened organizational capabilities and operational systems, laying a resilient foundation for business growth. During the reporting period, employee training investment reached RMB 3.825 million. Through a diversified training system, layered management, and customized development
mechanisms, we systematically promoted end-to-end talent management from “selection” to “development”, striving to enhance talent density and tiered talent reserves, and efficiently translating talent value into the core driving force for organizational evolution.
Strengthening the foundation for talent growth
For different groups such as new employees, incumbent staff, core talents, and management personnel, we developed differentiated training plans covering key areas including job skills, professional quality, sustainable development concepts, and compliance knowledge, ensuring precise alignment between
training provision and job requirements. In 2025, the completion rate for core job skills training reached 100%, new employee onboarding training achieved full coverage, and employee training satisfaction reached 92%, reflecting continuous improvement in the effectiveness of the training system and
employee recognition.
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Training groups Training courses Training content
The Company innovatively designed a dual-module training program combining “Strategic Orientation + Cultural
Internalization”. By interpreting China’s opportunities in the wave of innovative drug development, new employees are
guided to align their roles with the Company’s strategic direction. A “Cultural Storytelling Session” is organized, where
“Strategic Navigation, Cultural Integration”
New employees senior leaders share practical cases of practicing the “Global Collaboration” culture during compliance challenges in
onboarding training
Europe and the United States.
In 2025, the onboarding training coverage rate for new employees reached 100%.
In accordance with the Employee Career Development Management Measures, the Company has established a dual-
track promotion system comprising “Management Sequence + Professional Sequence”, providing employees with
clear career development paths. In 2025, the “Voyager Program” focused on middle level and frontline employees,
centering on the core competencies of “self-management, team management, and project management”. Through
Middle level and frontline employees “Voyager Program” methods such as classroom instruction, case studies, and practical exercises, the program established a special fund
and engaged high-quality instructors to ensure its effective implementation.
In 2025, 25% of employees who received promotions underwent job adjustments, and the retention rate of key talent
reached 96%, effectively mitigating the risk of core talent loss and supporting business growth.
To support international development, the Company has introduced a “External Expert Guidance + Internal
Workshops” training model for triple-role personnel. We invited experts from international regulatory agencies and
R&D, production, and commercial director level and Special training program for innovation and leading enterprises to interpret EU and US market access regulations, AI-driven drug R&D, and other cutting-edge
above employees internationalization trends, directly addressing strategic pain points. Participants developed a Three-Year Strategic Plan Draft, which was
reviewed by the senior management team and incorporated into annual objectives, ensuring effective translation of
strategic insights into operational implementation.
Case: Innovative cultural training model deepens employees’ value recognition
The company introduced an innovative cultural training format using a “murder mystery script game” approach,
breaking away from traditional team-building models. Through small-team trials and rapid iterations, employees
engaged in immersive experiences, solving puzzles layer by layer and deciphering cultural codes, thereby
deepening their understanding and identification with the corporate culture. The activity was conducted 4 times in a
year, covering nearly 200 core key personnel, significantly enhancing the engagement and effectiveness of cultural
dissemination.
Innovative Team-building Activities
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Establishing a skills training platform
In 2025, we continued to carry out the “Hundreds, Thousands, and Tens of Thousands” employee labor competition, actively building a multi-position, multi-level skills training system. The competition content was closely aligned with practical production, covering areas such as the Environmental Safety
Department’s fire safety competition, the Equipment Department’s electromechanical and instrumentation skills competition, the Technical Center and Quality Management Department’s inspection and testing skills contest, and the production department’s forklift operator skills competition. These initiatives
provided employees with a practical platform for skill demonstration and exchange. By promoting learning through competition and using competitions as training, we not only effectively enhanced employees’ professional technical capabilities and job competence but also strengthened cross-departmental
collaboration awareness and team cohesion. This fostered a positive atmosphere of “competing, learning, striving, and advancing together”, achieving remarkable results in talent development and work performance.
Advancing the performance appraisal system
To strengthen the strategic orientation of performance management, the Company
has deeply integrated key sustainability indicators (such as workplace safety,
teamwork, and participation in energy-saving and emission-reduction initiatives)
into the employee performance appraisal system. The appraisal results are directly
linked to salary adjustments and promotion pathways, fully leveraging the guiding
role of performance management. At the same time, the Company continues to
optimize long-term incentive mechanisms, offering core talent diversified incentives
such as equity incentives and project profit-sharing. This further aligns employee
interests with those of the Company, fostering a career community framework
featuring “shared responsibility, co-created value, and shared benefits”, effectively
stimulating the internal drive and talent creativity in the Company.
Forklift Skills Competition
(II) Safeguarding employee health
Organizing occupational health and safety training
The Company strictly adheres to the Occupational Disease Prevention and Control Law of the
In response to the Shenzhen Stock Exchange’s guidelines on strengthening occupational health and safety responsibilities, the Company organized specialized sustainability training
People’s Republic of China, the Work Safety Law of the People’s Republic of China, and international
using a combined training and practice model. We invited experts from the Ministry of Emergency Management and occupational health specialists from the Chinese Center for Disease
occupational health and safety management standards, always prioritizing employee health and
Control and Prevention, who provided in-depth analyses of Emergency Response Standards Under the ESG Framework and Occupational Health Risks and ESG Compliance in the
safety. By establishing a comprehensive occupational health and safety management system, the
Pharmaceutical Industry. Following the training, all employees signed the ESG Health and Safety Commitment, integrating health and safety principles into daily operations. As a result of
Company systematically conducts risk identification, emergency drills, and safety training, effectively
the specialized training, the average emergency response time was reduced by 30%, and the occupational health risk identification rate increased to 85%, achieving dual improvements in
controlling safety risks during project construction and operation, and ensuring the physical and
awareness and capability.
mental well-being of employees and production safety.
Medical examination coverage of Number of occupational health Strengthening occupational health and safety management
employees: 100% training sessions: 60 sessions The Company fully implemented its primary responsibility for occupational health and safety. Each business division, in line with its operational characteristics, systematically advanced the
development of occupational health and safety management systems, continuously enhanced risk prevention and control capabilities, and effectively safeguarded employees’ physical and
Number of participants in occupational health mental health.
training: 2,687 persons
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Annually commission occupational health institutions to test hazardous positions, ensuring employees’ right to know; establish a complete testing archive, covering commissioning
agreements, sampling records, reports, and corrective plans, ensuring full traceability and compliant management.
Commission professional institutions to conduct full-cycle occupational health examinations from “pre-employment, during-employment, to post-employment”: screening
for occupational contraindications before employment, executing specialized examinations based on risk levels during employment, and clarifying health status to define
responsibilities after demission. Establish “one file per person” health records, promptly reassign employees with contraindications from hazardous environments.
Provide personal protective equipment (PPE) compliant with national standards based on job hazard characteristics, implementing a system of “on-demand allocation, dedicated
Small Molecules (TCM) management, and regular replacement”. Strengthen PPE usage training and on-site supervision to ensure correct wearing and timely replacement, guaranteeing effective
Business Division protection.
Standardize the setup of occupational health warning signs compliant with GBZ 158 standards in workplaces; develop standard operating procedures (SOPs) for each position,
specifying requirements for operations such as chemical reagent handling, forbidding eating or smoking, etc., and enhance on-site supervision and inspection to prevent violations.
In 2025, the physical examination coverage rate reached 100%, with over 360 employee occupational health records established. A total of 130 safety training sessions were
conducted. The provision rate of safety protection equipment for key positions reached 100%, and the annual work-related injury incidence rate was significantly lower than the
Occupational Health Warnings Set in the Company
industry average. No major occupational health and safety accidents occurred.
Gradually advance the Occupational Health and Safety Management System and the “Three Occupational Health
Hefei Plant Simultaneities” in occupational health, confirming the service unit for occupational health control and Safety Emergency
effectiveness evaluation, and mitigating occupational health risks from the source. Drills
Biologics Business Division
Regularly conduct testing of occupational hazard factors, risk assessments for positions exposed to hazards, and suitability evaluations of personal protective equipment. Dynamically monitor the health status of employees in exposed positions
Beijing Plan and organized refresher occupational health education for all staff to strengthen regulatory awareness and protective capabilities. In 2025, a total of 91 on-the-job occupational health examinations, 15 pre-employment health examinations, and 5
post-employment health examinations were conducted, achieving full-cycle health surveillance for employees in hazard-exposed positions.
All subsidiaries under the Synthetic Biologics Business Division have fully obtained ISO 45001 Occupational
Health and Safety Management System certification. Through activities such as hazard identification, hands-
on training with emergency equipment, and team safety culture initiatives, employee safety awareness and Anqing Xinfu Organizes
Synthetic Biologics Business
emergency response capabilities have been continuously enhanced. In 2025, the Division allocated RMB 5.9939 Occupational Health and
Division Safety Emergency Drills
million for labor protection supplies and welfare expenses, an increase of RMB 1.6014 million compared to the
previous year. Additionally, RMB 460,100 was spent on health examinations, providing solid financial support for
occupational health and safety management.
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
(III) Enhancing employee well-being
The Company actively promotes work-life balance by organizing special care activities such as birthday greetings and holiday benefits, enriching employees’ leisure time and strengthening team cohesion. Meanwhile, through continuous care initiatives in various forms, from physical and mental health to
career development, the Company fosters a warm and inclusive work environment, helping employees achieve better balance and growth in both their career and personal lives.
Practicing employee care
The Company always adheres to a
people-centered approach, integrating
care into daily routines to genuinely
enhance employees’ sense of
fulfillment, happiness, and security.
On important occasions such as the
Dragon Boat Festival, Mid-Autumn
Festival, and employee birthdays,
the Company meticulously prepares
exclusive holiday gift packages
to convey organizational warmth.
Throughout the year, birthday cake
vouchers were distributed more
than 4,000 person-times, ensuring
that blessings arrive as promised.
To strengthen health protection,
Hangzhou Xinfu has continuously Employee “Watermelon Eating Contest” Themed Exchange Activities for Young Employees “Spring Breeze Scholarship” Program
enrolled employees in the “On-the-Job
Employee Medical Mutual Assistance
Program” for many years and applied
for hospitalization allowances for 29
employees, effectively alleviating
their medical burdens. Additionally,
the Company consistently addresses
the needs of employees’ families.
In August, the “Spring Breeze
Scholarship” activity was launched,
distributing scholarships totaling
RMB 12,900 to employees’ children
to support their dreams. At the
same time, the Company enriches
employees’ leisure time through
engaging activities and holds warm
Special Care Activities for Retired Employees
farewell ceremonies for retiring Employee Cultural and Sports Activities
colleagues, paying tribute to their
dedication. These efforts ensure that
every employee feels the warmth of
the extended family throughout their
career journey.
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Addressing Difficulties for Employees
The Company’s labor union places great emphasis on caring for employees in need, establishing and improving a comprehensive filing system for employees facing difficulties to ensure targeted and effective support. In 2025, the Company’s labor union distributed over RMB 400,000 in condolence
payments and extended support to more than 500 employees; the labor union of Hangzhou Xinfu conducted a total of 75 instances of various forms of care, distributing caring fund totaling RMB 59,380. These efforts covered multiple aspects, including congratulations on marriages, care for new parents,
hospital visits, and bereavement support. Specifically, the union extended marriage congratulations to 4 couples, offered childbirth care to 8 couples, visited 44 employees hospitalized due to illness, and expressed condolences to 19 individuals, ensuring timely delivery of the Company’s warmth and care.
Additionally, the union actively coordinated with higher-level labor unions to complete the application and review process for 3 employees in need, further expanding support channels and effectively alleviating difficulties faced by employees.
Caring for female employees
In terms of protecting the rights and interests of female employees, the Company adheres to the principles of equal
guaranteeing and humanistic care, diligently safeguarding their legitimate rights. We strictly implement fair mechanisms
regarding compensation, promotion, and career development to ensure equal opportunities for both male and female
employees. For pregnant and nursing employees, the Company makes reasonable adjustments to job positions and work
arrangements, establishes standardized nursing rooms in work areas, and enhances supportive and convenient facilities. 2. Strengthening democratic management
Hefei Yifan Biopharmaceutical has established a municipal Class II mother-and-baby room, which is fully equipped
with comprehensive functions. It adopts paperless management, and offers a convenient process, serving numerous
The Company values employee feedback and continuously improves consultation mechanisms and communication channels to effectively safeguard employees’
breastfeeding women within the Company. Furthermore, Hangzhou Xinfu provides female employees with “medical security
rights to information, participation, expression, and oversight. Under the leadership of the Company’s Party committee and with strong support from the
for special diseases of female employees”. The aforementioned measures provide all-round protection for their physical and
administration and the higher-level trade union, employees’ legitimate rights and interests are earnestly protected. The trade union has established a Labor Law
mental health as well as their professional development.
Supervision Committee, a Labor Dispute Mediation Committee, and a Wage Collective Consultation Agreement Monitoring Group, all approved by the higher-
level trade union and operating in full compliance.
To strengthen democratic management, the trade union has set up department/workshop-based WeChat groups for the collection of employees’ opinions and
suggestions online, and established an offline “Emotional Service Station” for in-person communication. By integrating “online and offline” efforts, the Company
continuously expands democratic participation pathways and advances practical democratic management.
Yifan Pharmaceutical’s “Emotional Service Station” for Employees
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
GREEN OPERATIONS TO
PROTECT OUR COMMON
HOME
Contributing to Sustainable
Development Goals (SDGs)
YIFAN PHARMACEUTICAL CO., LTD. SUSTAINABILITY REPORT 2025
Report Sustainable Development Innovation-driven Renewal of Collaboration for Mutual Safeguarding Employee Development Green Operations to Protect Our Operations to Consolidate the Future 40
Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
?Risks and opportunities
Governance
Yifan Pharmaceutical has consistently integrated green development and low- Category Specific content Countermeasure
carbon transformation into its corporate governance and strategic core. The
National and local environmental regulations are continuously tightening. For example,
Company operates a three-tier environmental management system with decision- Establish a dynamic tracking mechanism for environmental policies and assign personnel to interpret
the Opinions on Optimizing Environmental Impact Assessment for the Pharmaceutical
making by the Board of Directors, coordination by the management, and the latest regulations and industry standards. Continuously improve management systems, optimize
Policy Industry imposes stricter requirements on EIA management and pollutant control for
implementation at the operational level, focusing on compliance, clean production, the permit application and adjustment processes, ensure all production and operation activities
compliance risk pharmaceutical projects. Emerging controls on new pollutants and adjustments to
resource conservation, and green technology as key drivers to comprehensively comply with policy requirements, and proactively cooperate with regulatory spot checks and routine
pollutant discharge permits may increase compliance costs. Failure to adapt in time
advance environmental governance and support high-quality and sustainable monitoring.
could lead to penalties for non-compliance.
development.
Strengthen the application of the online environmental monitoring system (EMS) to achieve intelligent,
In the production of pharmaceuticals and APIs, the treatment of wastewater, waste gas,
end-to-end monitoring of pollutant discharge. Strictly follow procedures for the classification,
Pollution control and hazardous solid waste (e.g., antibiotic residue) is challenging. Improper monitoring
Strategy storage, and disposal of solid waste. Entrust qualified professional agencies for compliant disposal
risk or disposal may lead to excessive emissions, leaks, and other issues, resulting in
of hazardous waste. Continuously increase environmental protection investments and optimize the
Guided by the principles of green transformation, clean production, resource environmental accidents and reputational damage.
efficiency of pollution control facilities.
conservation, and environmental friendliness, and driven by both technological
innovation and green manufacturing, the Company is building a safe, low- The green transformation of traditional production processes requires significant Plan environmental investments rationally and carry out production process upgrades in phases,
Green
carbon pharmaceutical and bio-manufacturing industrial system. The Company investment and long lead times. R&D in green technologies such as synthetic biology prioritizing continuous, automated, and low-temperature processes. Increase investment in green
transformation
promotes clean production and process upgrades, increases investment in involves uncertainties. Delays in the transformation may result in non-compliance with technology R&D, replacing traditional high-pollution chemical synthesis with synthetic biology
risk
green technology R&D, and implements green procurement to strive to become industry green development requirements and negatively affect market competitiveness. manufacturing to reduce transformation risks.
an environmentally friendly enterprise. By deeply integrating ecological and As consumers and investors pay greater attention to corporate environmental Improve the ESG governance system, enhance the quality of environmental information disclosure,
Market
environmental concepts into all aspects of its development, the Company sets a performance, ESG performance has become a core component of corporate and build an image as an environmentally friendly enterprise. Integrate green development concepts
competition
benchmark for green transformation in the industry. competitiveness. Leading companies’ green practices can guide industry development into brand building, and leverage a compliant and environmentally responsible production system to
opportunity
and enhance brand reputation and market recognition. strengthen trust from customers and investors, thereby enhancing market competitiveness.
With the advancement of the “dual carbon” strategy, carbon reduction is becoming Optimize the energy mix by increasing the share of clean energy such as natural gas. Establish
Low-carbon
increasingly important for the pharmaceutical industry. Broad opportunities exist in a robust carbon accounting and environmental monitoring system, plan a clear carbon reduction
development
areas such as clean energy substitution and carbon accounting system development, roadmap, and gradually reduce the carbon footprint. These efforts align with low-carbon development
opportunity
supporting the Company’s high-quality, sustainable development. requirements and help the Company seize early opportunities in the industry’s green transformation.
Objectives and targets
Total investment in environmental protection: Total greenhouse gas Total water consumption: Number of environmental pollution Number of major administrative penalties due to
RMB 43.6274 million emissions: 109,782.35 tCO e 2 543,715.59 tons accidents: 0 environmental incidents: 0
(I) Strengthening environmental management
Yifan Pharmaceutical strictly complies with national environmental laws and regulations, including Refined pollutant discharge permit management and monitoring
the Environmental Protection Law of the People’s Republic of China, the Regulations on the
Administration of Pollutant Discharge Permits, and the Cleaner Production Promotion Law of
The Company strictly implements the “one-permit” management system for pollutant discharge permits. All
the People’s Republic of China. Based on the production characteristics of the pharmaceutical
manufacturing sites have legally obtained pollutant discharge permits and strictly follow permit requirements
industry, the Company has comprehensively implemented a three-tier environmental compliance
to regulate discharge activities. The Small Molecules (TCM) Business Division has established a dual
management system with “group-level coordination, tiered implementation, and company-wide
participation”, and established a full-process environmental management system, covering R&D, monitoring system combining “online real-time monitoring + offline periodic testing”. Online monitoring
production, supply chain, and waste disposal. equipment is installed at key points such as wastewater treatment stations and waste gas outlets,
connected to the regulatory platform of local ecological and environmental authorities, enabling real-time
In 2025, the Company continued to improve its environmental management documentation, data transmission and dynamic tracking of pollutant discharge.
clearly defined environmental responsibilities for each role, and incorporated environmental
compliance into departmental and employee performance assessments, forming a closed-loop
management mechanism featuring “responsibility assigned to each role and accountability linked
In 2025, the Company conducted various environmental monitoring activities covering wastewater, waste
to each employee”. Besides, all manufacturing sites have established environmental management Yifan Pharmaceutical’s Online Monitoring Equipment
gas, noise, soil, and other indicators. All results met national and local discharge standards, and no
systems, with some sites receiving honors such as “Environmental Protection Integrity Enterprise”
excessive emissions occurred.
and “Green Factory”.
YIFAN PHARMACEUTICAL CO., LTD. SUSTAINABILITY REPORT 2025
Report Sustainable Development Innovation-driven Renewal of Collaboration for Mutual Safeguarding Employee Development Green Operations to Protect Our Operations to Consolidate the Future 41
Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Routine risk prevention & control and emergency response
The Company has built a full-chain environmental risk prevention system in the principle of “prevention first, combined with control measures”. It systematically identifies environmental risks, focusing on key areas such as hazardous chemical storage, wastewater treatment, and hazardous waste disposal,
and develops and dynamically updates graded control measures. The Company has improved its environmental emergency plan system, including comprehensive emergency plans, specific emergency plans, and on-site response procedures. Regular emergency drills are conducted for scenarios such
as hazardous waste leakage, wastewater treatment plant accidents, and waste gas treatment facility failures, significantly enhancing emergency response capabilities. Additionally, an internal mechanism for hazards reporting and rewarding has been established, encouraging employee participation in
environmental risk inspections, ensuring early detection and timely resolution of environmental risks.
Waste treatment: embracing reduction and resource utilization
The Company has established a hazardous waste management system based on “segregated collection – standardized temporary storage – compliant disposal”, ensuring full traceability and oversight. The Small
Molecules (TCM) Business Division has set dedicated collection containers and signage at sources of hazardous waste, such as production workshops and R&D labs, with clear classification standards and collection
procedures. Standardized hazardous waste storage rooms are equipped with anti-leakage, fireproof, and explosion-proof safety devices and managed under a “double-key, double-person” system. All hazardous waste
is handed by the Synthetic Biologics Business Division over to qualified professional agencies under formal contracts, with strict adherence to the hazardous waste transfer manifest system. In 2025, the compliant
disposal rate of hazardous waste reached 100%.
The Company promotes a general solid waste management strategy prioritizing “reduction first, resource utilization primarily” to minimize environmental impact. General solid waste from production, such as waste
packaging materials, medicinal residues, boiler ash, and sludge, is segregated and recycled: recyclable packaging materials like waste cartons and plastic bottles are collected and reprocessed by the Biologics
Business Division; biomass waste such as medicinal residues and sludge is used by the Small Molecules (TCM) Business Division for farmland fertilization or biomass power generation; production scrap is crushed
and reused by the Synthetic Biologics Business Division as raw material. Additionally, a household waste sorting and recycling system has been implemented, with sorted waste bins at all sites to encourage employee
participation. The harmless treatment rate of household waste reached 100%.
Yifan Pharmaceutical’s Recyclable Packaging Materials
Pollutant treatment: achieving compliance discharge through technology
To address different types of pollutants from pharmaceutical production, including process waste gases, laboratory emissions, and odorous gases, the Company adopts a treatment model of “segregated collection + targeted treatment”. The Biologics Business Division captures process waste gases by
collection hoods and treated via activated carbon adsorption, alkaline solution scrubbing, or catalytic combustion to ensure compliance.. In 2025, the Company upgraded its waste gas treatment facilities, adding and retrofitting equipment. Emission concentrations were well below national standards, and total
emissions decreased by 14% year-on-year.
The Company has built a full-chain wastewater treatment system covering “source reduction – process control – end-of-pipe treatment” to achieve wastewater reduction and compliance discharge. At the source, process optimization reduces the generation of high-concentration wastewater, such as
optimizing product cleaning processes to reduce water use and pollutant discharge. During the process, a segregated wastewater collection system separates high-concentration process wastewater from low-concentration domestic and clean wastewater, improving treatment efficiency. At the end of the
process, each manufacturing site is equipped with a standardized wastewater treatment station using mature processes such as “equalization tank + anaerobic + aerobic + advanced treatment”. Treated wastewater is either discharged into municipal sewer systems or reused after advanced treatment. In
(II) Improving energy efficiency Application of high-efficiency energy-saving equipment
The Company has extensively promoted the use of high-efficiency energy-saving equipment to replace traditional
energy-intensive equipment. At Hefei XinZhu Site (Biologics), IE4 high-efficiency motors are selected, achieving a
Yifan Pharmaceutical adheres to the energy management philosophy SCOP of conventional chiller plants from 3.0 to over 5.0, significantly improving the energy efficiency of cooling
of “prioritizing conservation, promoting efficient utilization, and enabling systems. All sites have fully transitioned to LED energy-saving lighting. Utilities equipment such as air conditioners,
circularity”. Through systematic development, technological innovation, and
refined management, the Company continuously improves energy efficiency,
pumps, and fans have been optimized. A total of over 200 high-efficiency equipment units have been
reduces energy consumption intensity, and achieves synergy between replaced, increasing equipment energy efficiency by 15%–30%.
energy savings and production operations.
Yifan Pharmaceutical’s High-efficiency Chiller Plant
YIFAN PHARMACEUTICAL CO., LTD. SUSTAINABILITY REPORT 2025
Report Sustainable Development Innovation-driven Renewal of Collaboration for Mutual Safeguarding Employee Development Green Operations to Protect Our Operations to Consolidate the Future 42
Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Production process energy optimization Energy recycling
The Company optimizes process parameters and production workflows based on the characteristics of different products to reduce energy The Company promotes cascaded energy utilization and recycling to improve overall energy efficiency. The Hefei XinZhu site of
consumption. The Biologics Business Division improved the purified water system by building a concentrate recovery system, enhancing water the Biologics Business Division recovers condensate water from air conditioners in summer for use in cooling towers, and in winter,
efficiency while reducing energy use in water production. The Synthetic Biologics Business Division’s panthenol process optimization project recovers steam condensate to preheat fresh air for air handling units, reducing steam and electricity consumption. The Small Molecules
achieved continuous production, which is stable and economical, delivering significant overall energy savings. The Small Molecules (TCM) (TCM) Business Division recovers industrial steam condensate to boiler water tanks and uses the waste heat from steam condensate
Business Division re-insulated steam pipelines in the extraction workshop, replaced all steam traps, and optimized steam pipeline layouts to to preheat fresh air for air handling units in winter, reducing steam consumption by approximately 200 tons. The Synthetic Biologics
reduce steam energy losses. Business Division recovers waste heat from production processes for use in related operations, improving overall energy efficiency.
The Company selects water-efficient equipment and fixtures, replacing including high-efficiency cleaning equipment and cooling towers to reduce water consumption per unit of product. In terms of process optimization,
the Biologics Business Division has improved the purified water preparation process and built a concentrate recovery system, achieving a recovery rate of over 48%. For water recycling, the Synthetic Biologics
Business Division has installed rainwater collection systems, collecting rainwater for landscaping irrigation and floor cleaning. The Small Molecules (TCM) Business Division promotes the recycling of steam condensate,
recovering high-temperature condensate from production processes for use in boilers or production cooling. Through these water-saving measures, the Company reduced water consumption by 53% year-on-year
in 2025.
The Company has established a water consumption statistics and analysis system, enabling real-time monitoring and data analysis of water usage across all manufacturing sites and processes to identify potential areas
for water savings. Water-saving targets and assessment criteria have been set for each department, linking conservation performance to employee evaluations to encourage company-wide participation. The Company
also conducts water conservation awareness and training activities, such as posting water-saving signs and organizing knowledge contests, to strengthen employee awareness and embed water-saving principles into
daily practice. Additionally, the Company promotes water conservation among supply chain partners by guiding suppliers to adopt water-efficient production processes, jointly building a water-saving supply chain system.
Yifan Pharmaceutical deeply embraces the principles of the circular economy, centering on “reduction, reuse, and recycling”. These principles are integrated into production operations, supply chain management, and the full product lifecycle. Through technological innovation, process
optimization, and business model innovation, the Company minimizes resource consumption and waste generation, creating a virtuous cycle of efficient resource utilization and enhanced environmental performance.
Material circulation and reduction: The Company focuses on optimizing material consumption across the entire production process, reducing Cascaded energy utilization: The Company has built an energy recycling system to recover and reuse waste heat and surplus energy. In the
raw material loss and improving material utilization through process innovation. For the production of product B06, the Biologics Business Division Biologics Business Division, air conditioner condensate water at around 10°C in summer is recovered to cooling towers, lowering the outlet
optimized the column chromatography cleaning process by eliminating the use of urea, reducing raw material consumption by 300 kg per batch while temperature of cooling water and reducing chiller energy consumption. In winter, steam condensate at around 90°C is recovered to preheat fresh air for
cutting 1 ton of high-ammonia-nitrogen wastewater. The Synthetic Biologics Business Division, through fermentation process optimization, increased air handling units, reducing annual steam consumption by approximately 200 tons. In the Small Molecules (TCM) Business Division, industrial steam
the fermentation titer and extraction yield of products such as bisabolol and human milk oligosaccharides (HMOs), with the total extraction yield of condensate is recovered to boiler water tanks, with an annual recycling volume of 2,100 tons. In addition, secondary reverse osmosis concentrate is
bisabolol reaching 53.19%, reducing material waste during production. The Small Molecules (TCM) Business Division carried out process optimization used for landscaping irrigation, saving 200 tons of tap water annually. In the Synthetic Biologics Business Division, process waste heat from production
for several products, including anti-inflammatory and choleretic dripping pills, improving raw material conversion rates and reducing material is recovered for uses such as material preheating, improving overall energy efficiency.
consumption per unit of product.
YIFAN PHARMACEUTICAL CO., LTD. SUSTAINABILITY REPORT 2025
Report Sustainable Development Innovation-driven Renewal of Collaboration for Mutual Safeguarding Employee Development Green Operations to Protect Our Operations to Consolidate the Future 43
Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
(III) Deepening green operations
Yifan Pharmaceutical actively responds to the national “dual carbon” strategy by integrating climate
action into its overall development. Through multiple measures such as optimizing the energy Low-carbon energy mix Emissions reduction in production Coordinated emissions reduction across the
mix, decarbonizing production processes, and promoting coordinated emissions reduction across
the supply chain, the Company continuously reduces carbon intensity and fosters synergistic The Company is gradually phasing out energy The Company optimizes production
supply chain
development between business operations and the environment. varieties with high consumption and high emissions processes to reduce energy consumption
Carbon reduction requirements are extended to the supply chain
while promoting the application of clean energy. It during production; minimizes energy losses
The Company has established a carbon management system covering the entire industrial to drive low-carbon transformation across the entire chain. The
has replaced coal with natural gas, phased out fuel- caused by frequent equipment start-stop
chain, set clear phased carbon reduction targets, and incorporated carbon emission control into Company reduces the number of logistics transport trips while
powered forklifts in favor of electric ones, and reduced cycles, reducing energy consumption per
departmental performance assessments. Regular carbon inventories are conducted to systematically optimizing cold chain transportation to cut carbon emissions from
direct carbon emissions. Solar panels have been unit of product and indirectly lowering
collect Scope 1 (direct carbon emissions) and Scope 2 (indirect carbon emissions) data. In 2025, dry ice production, transportation, and sublimation. It promotes
installed on rooftops to lower fossil energy consumption carbon emissions; and achieves coordinated
the Company completed a company-wide carbon inventory, forming a detailed record of carbon the localized substitution of packaging materials, shortening
through renewable energy utilization. Waste heat from reduction in both energy consumption
emissions to provide data support for targeted reduction strategies. Besides, the Company actively supply chain distances and eliminating the high carbon emissions
local power plants is also used as industrial steam, and carbon emissions through equipment
participates in industry carbon management exchanges, adopts best practices to optimize carbon associated with international air freight. The Company also adopts
saving water and reducing carbon emissions. retrofitting.
management processes, and has obtained third-party carbon footprint verification for some of its bulk raw material packaging instead of small packaging to reduce
sites, continuously improving the standardization of its carbon management practices. carbon emissions from packaging production and waste disposal.
In 2025, total greenhouse gas emissions amounted to 109,782.35 tCO e, with direct greenhouse gas emissions (Scope 1) of 31,126.53 tCO e and indirect greenhouse gas emissions (Scope 2) of 78,655.82 tCO e.
Measures for the Management of Biodiversity Protection, organized to plant loquat and kumquat
saplings. These activities enriched plant species diversity around the Company’s manufacturing
Yifan Pharmaceutical thoroughly implements the Opinions on Further Strengthening Biodiversity Protection issued by the General Office of the Communist Party of China Central Committee
sites, improved regional ecological micro-environments, and fulfilled the ecological restoration
and the General Office of the State Council. Guided by the Environmental Protection Law of the People’s Republic of China and the Biosafety Law of the People’s Republic of China, the
requirements of biodiversity protection. They also laid a solid practical foundation for future
Company has set the protection and sustainable use of biodiversity, the maintenance of biosafety and ecological security, the promotion of ecological civilization, and the harmonious
ecological restoration efforts at the sites and for achieving the goal of no net loss of biodiversity.
coexistence between humanity and nature as its core development objectives.
Evive Biotechnology (Beijing) has developed and issued the Measures for the Management of Biodiversity Protection (EHS066-V1) as a standardized operating procedure for biodiversity
conservation, which defines objectives, scope of application, division of responsibilities, implementation procedures, key terms, and other core elements, providing a unified and standardized
framework for biodiversity management across the Company. Furthermore, based on these measures and aligned with national biodiversity protection policies, the Company has established an
institutional support system covering the entire process, including survey and assessment, project control, ecological restoration, and education and training.
Yifan Pharmaceutical has fully adopted green office practices, reducing energy consumption through measures targeting electricity, paper, and supplies. The Company has replaced lighting with
LED energy-saving lamps, optimized air conditioning operating parameters with temperature standards of no lower than 26°C in summer and no higher than 20°C in winter, and implemented
policies such as “lights off when leaving” and “power off after work”. In 2025, electricity consumption in office areas decreased significantly. The Company promotes digital office operations, with
internal approvals, document transfers, and meeting communications all conducted through online systems. The use of recycled office supplies is encouraged, environmentally friendly office
consumables are prioritized, and the use of disposable items (disposable pens and paper cups) is reduced.
The Company has integrated green office concepts into its corporate culture. Through internal training, bulletin boards, and corporate social media accounts, it regularly promotes environmental
knowledge and green office techniques. A series of activities, including “Green Office Initiatives” and “Environmental Volunteering”, have been organized to encourage employee participation
in practices such as office waste sorting and plant maintenance, creating a positive atmosphere where “everyone cares about the environment and integrates green practices into daily tasks”. Yifan Pharmaceutical’s Tree Planting Practice
Additionally, green office practices have been incorporated into employee conduct guidelines, guiding employees to develop good habits such as saving electricity, conserving water, and sorting
waste, thereby translating green office concepts into voluntary actions.
YIFAN PHARMACEUTICAL CO., LTD. SUSTAINABILITY REPORT 2025
Report Sustainable Development Innovation-driven Renewal of Collaboration for Mutual Safeguarding Employee Development Green Operations to Protect Our Operations to Consolidate the Future 44
Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
OPERATIONS TO
CONSOLIDATE THE
FOUNDATION FOR
DEVELOPMENT
Contributing to Sustainable
Development Goals (SDGs)
YIFAN PHARMACEUTICAL CO., LTD. SUSTAINABILITY REPORT 2025
Report Sustainable Development Innovation-driven Renewal of Collaboration for Mutual Safeguarding Employee Development Green Operations to Protect Our Operations to Consolidate the Future 45
Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
(I) Strengthening corporate governance
Governance
In strict accordance with applicable laws and regulations and the Articles of Association, Yifan Pharmaceutical has established a governance
framework with clearly defined powers and responsibilities and effective checks and balances, forming a complete closed-loop of “decision- 1.Improving the governance structure
making – execution – oversight”. The Shareholders’ Meeting, as the highest authority, exercises decision-making power over major matters,
including electing directors, deliberating on profit distribution, increasing or decreasing registered capital, mergers, divisions, and other such
issues.. The Board of Directors, as the executive body of the Shareholders’ Meeting, is responsible for implementing resolutions, formulating
operating plans, and appointing senior management. The management, entrusted by the Board of Directors, coordinates daily operations
Shareholders' Meeting
and core business activities to ensure decisions are implemented. The Audit Committee exercises the powers and functions of the Board of
Supervisors as stipulated in the Company Law, overseeing the performance of duties at all levels. Additionally, it is responsible for reviewing
the Company’s financial information and its disclosure, supervising and evaluating internal and external audit work, internal controls, etc..
Additionally, the Company has further improved its structure through supporting mechanisms such as subsidiary control and related-party Board of Directors
transaction regulations, ensuring coordinated and efficient operation across all levels.
Board Secretariat
Strategy
With the development goals of “innovation and internationalization”, the Company pursues a strategy of refined governance to enhance
governance effectiveness. This includes optimizing the division of powers and responsibilities in corporate governance, strengthening the Remuneration and Nomination
closed-loop of decision-making, execution, and oversight to improve decision-making efficiency, and improving the internal control and audit Strategic Committee Senior Management Audit Committee
Appraisal Committee Committee
systems to standardize full business processes and subsidiary management, thereby consolidating the foundation for compliance-based
governance. The Company also implements a specialized talent governance strategy that optimizes incentive and restraint mechanisms,
focusing on the retention and development of core talent to support key business growth. Furthermore, a collaborative governance strategy
aligns the governance system closely with core business operations, integrating resources to support the implementation of the Company’s
overall strategic goals.
Operations Center
Planning and
Administration Center
Human Resources and
Management Center
Financial
Department
Engineering Management
Department
Information Management
Department
Legal and Compliance
Business Division
Synthetic Biology
Business Division
Small Molecules (TCM)
Division
Biologics Business
Business Division
Global Commercial
Global BD Center
Clinical Medical Center
Audit Department
Risks and opportunities
Category Specific content Countermeasure
Given the Company’s numerous subsidiaries and diverse Strengthen audit supervision, conduct regular internal control
Compliance operation business operations, inadequate execution of internal control self-assessments, clarify subsidiary management authority and
risk may lead to compliance risks and undermine the overall responsibilities, and ensure compliance across all business
operational standardization. processes. Organization Chart
Significant differences in overseas market regulations and Establish governance mechanisms adapted to overseas
International operating environments, coupled with difficulties in coordinating markets, enhance coordination between domestic and overseas
governance risk governance between domestic and overseas entities, may management teams, and precisely align with overseas
The Shareholders’ Meeting, as the highest authority of Yifan Pharmaceutical, makes decisions according to the law on the Company’s
lead to operational and regulatory risks. regulatory requirements.
major matters, including electing directors, deliberating on profit distribution, increasing or decreasing registered capital, mergers, divisions,
Continuously improve the compliance system, accurately
International A robust compliance governance system can meet overseas and other such issues, and reviews and approves the Board of Directors’ report, the Company’s annual report, equity incentive plans, and
adapt to regulatory standards in different overseas countries,
development regulatory requirements, support innovative drugs in breaking other matters. The Company ensures that all shareholders, particularly minority shareholders, fully enjoy their legal rights as stipulated by
accelerate the global expansion of innovative drugs, and
opportunity into international markets, and increase global market share. laws, administrative regulations, and the Articles of Association. Pursuant to the provisions and requirements of the Articles of Association
broaden overseas presence.
and the Rules of Procedure for the Shareholders’ Meeting, it standardizes the convening, holding, and deliberation processes of general
An efficient governance structure can facilitate the integration Deepen governance-business collaboration, optimize resource meetings, treats all shareholders equally, and facilitates shareholder participation by providing both on-site and online voting methods,
Resource integration
of domestic and overseas resources, helping the Company allocation, focus on core businesses, proactively align with ensuring that all shareholders, especially minority shareholders, can fully exercise their rights.
opportunity
seize industry policy benefits and optimize business layout. industry policies, and seize market opportunities.
指标与目标 The Board of Directors, as the decision-making body of Yifan Pharmaceutical, reports to the Shareholders’ Meeting. In strict accordance
with the Company Law, the Securities Law, and the Articles of Association, the Company completed the election of a new Board of Directors
and the appointment of senior management in September 2025. The Board of Directors and senior management are highly aligned with the
Board meetings held: 6 General meetings held: 3 Company’s development path of “innovation, global expansion, and core business stabilization”, thus facilitating the Company’s long-term
sustainable development. As of the end of 2025, the Board of Directors consisted of six directors, including two independent directors.
Policies revised: 17 Cases of corruption or commercial bribery: 0 In 2025, six board meetings and three general meetings were held. In response to the latest laws and regulations, the Company revised 17
policies and formulated 2 new policies.
YIFAN PHARMACEUTICAL CO., LTD. SUSTAINABILITY REPORT 2025
Report Sustainable Development Innovation-driven Renewal of Collaboration for Mutual Safeguarding Employee Development Green Operations to Protect Our Operations to Consolidate the Future 46
Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
In accordance with the Company Law, the Securities Law, the Guidelines for Investor Relations Party leadership serves as the fundamental guarantee for Yifan Pharmaceutical’s high-quality development. The
Management of Listed Companies, and other applicable laws and regulations, the Company actively Company upholds the Party’s overall leadership in corporate development by embedding Party building into the entire
promotes investor relations management. It strengthens communication with investors through process of corporate governance, business development, and cultural cultivation. Guided by the Party’s leadership, the
the interactive exchange platform, email, telephone, social media accounts, website, and on-site Company consolidates development synergy and addresses development challenges through tangible Party-building
meetings. To protect the interests of small and medium-sized investors, the Company avoids selective outcomes, transforming the Party’s strengths into competitive and developmental advantages. This approach aligns
disclosure to ensure that all shareholders have fair and equal access to company information. Party building with corporate growth, fostering mutual reinforcement and fulfilling the political responsibilities and social
commitments of a pharmaceutical enterprise.
Yifan Pharmaceutical, in strict accordance with the Articles of Association, the Corporate Governance
Guidelines for Listed Companies, the M ? anagement Measures for the Disclosure of Information of The Company places a strong emphasis on passing on revolutionary traditions and has designed immersive learning
Listed Companies, and other relevant provisions, has established and improved a comprehensive programs. Party members visited to revolutionary sites in Changsha and Nanchang, where they engaged in on-site
information disclosure system to ensure truthful, accurate, complete, and timely disclosure of learning, renewed their oath of allegiance to the Party, and held thematic seminars. Through these immersive and
information. The disclosure process is supervised and reviewed to promptly identify and correct any experiential activities, Party members deepened their ideological commitment, strengthened their sense of national
issues. The Company strictly complies with the fair disclosure principle for voluntary information responsibility and historical mission, and translated the revolutionary tradition of “firm conviction and hard work” into
disclosure, maintains the completeness, continuity and consistency of disclosed information, while concrete actions—demonstrating dedication and resilience in their daily roles. Additionally, during key commemorative
ensuring no conflict with legally required disclosures, no selective disclosure, and no misleading of events, the Company organized thematic educational activities for Party members and active applicants, including site
investors. visits, expert-led sessions, and group discussions. These initiatives deepened participants’ understanding of the Party’s
history and the nation’s past, reinforcing their commitment to the Party’s original aspirations and mission. Through these
In 2025, the Company was awarded the “Golden Bull Award for Excellent Information Disclosure” by efforts, Party members strengthened the “Four Consciousnesses” and the “Four Confidences.” In addition, the Company
China Securities Journal. The Office of the Board Secretary actively performs its duties: It answered persists in regular theoretical study without slackening, strictly implements the “First Agenda” system, and conducts
and published 39 news releases. In addition, the Company proactively compiled shareholder opinions online learning platforms, so as to continuously enhance the political quality of Party members, systematically improve
and submitted them to the management in the form of a monthly “Investor Voice Report”. Reasonable their political judgment, understanding, and execution, thereby laying a solid ideological foundation for the Company’s
suggestions were reviewed and implemented to support operational management. The Company also high-quality development. Yifan Pharmaceutical’s Party Building Activities
completed 36 shareholder analyses, prepared 12 summaries of investor feedback.
(II) Strengthening risk management
Based on the Basic Internal Control System, it aims Identify internal and external risk factors that may cause
Yifan Pharmaceutical has established a systematic, multi-tiered risk management system covering its entire business process. With core to provide reasonable assurance regarding the losses to the Company, including but not limited to
lawful and compliant operation and management financial risks, operational risks, compliance risks, etc.
control objectives including legal compliance, asset security, information authenticity, operational efficiency, and strategic execution, and
of the Company, the safety of its assets, the These risk factors may originate from the Company's
supported by the tiered governance structure of the Shareholders’ Meeting, the Board of Directors, and the management, the Company authenticity and completeness of financial reports management, operations, financial activities, and the
has built an integrated risk control framework featuring clearly defined powers and responsibilities, mutual checks and balances, and and related information, enhance operational
collaborative oversight. A comprehensive system of policies and dedicated functional roles provides solid support for the implementation of efficiency and effectiveness, and facilitate the
risk management. Company in achieving its development strategies. Yifan
Pharmaceutical’s
Leveraging the pharmaceutical industry profile and its unique operating characteristics (namely the dual-track development of “APIs + Risk
innovative drugs” and the globalized footprint), the Company comprehensively identifies potential risk factors across internal operations, Management
Risk analysis System Response strategies
external markets and policies, and business-specific dimensions. It has established a risk assessment mechanism that combines qualitative
and quantitative approaches, utilizing historical data, industry case studies, and business development trends to scientifically evaluate the Collect initial information for risk management: 03 04 Justification for selecting the response plan and expected
likelihood and potential impact of various risks. Following a risk-oriented principle, the Company conducts targeted reviews and prioritization, Assess identified risks, including the likelihood and benefits;
focusing precise control on high-risk areas such as fund management, R&D management, and quality control. For risks of different priorities the severity of impact of each risk. Methods may Responsible persons for plan approval and execution;
and types, the Company deploys differentiated countermeasures including avoidance, reduction, transfer, mitigation, and continuous include questionnaires, group discussions, expert Actions to be taken;
consultations, scenario analysis, policy analysis, Resource requirements and emergency response plans;
monitoring, specifies clear accountability and execution procedures for each risk, strictly controls the probability of high-priority risks,
benchmarking, management interviews, and expert Performance measures and constraints;
establishes early warning mechanisms for medium-priority risks, and dynamically tracks low-priority risks, effectively mitigating core risks and research. Reporting and monitoring.
ensuring stable support for business development. Besides, the Company fully acknowledges the inherent limitations of internal controls and
will continue to dynamically optimize its risk management system in response to industry conditions and business developments, steadily
enhancing its risk identification, assessment, and response capabilities.
YIFAN PHARMACEUTICAL CO., LTD. SUSTAINABILITY REPORT 2025
Report Sustainable Development Innovation-driven Renewal of Collaboration for Mutual Safeguarding Employee Development Green Operations to Protect Our Operations to Consolidate the Future 47
Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
To enhance and standardize corporate internal control, continuously improve business management and risk prevention capabilities, and promote sustainable development,
Yifan Pharmaceutical consistently adheres to core objectives of ensuring legal and compliant operations, asset security and integrity, and the accuracy and reliability of
financial reports and related information. By continuously refining its internal management systems and operating rules, the Company has built a systematic, standardized,
and normal internal control management framework, which is strictly implemented to provide solid support for stable operations and strategic execution. In August 2025,
in response to regulatory requirements and actual management needs, the Company revised and improved core policies such as the Internal Audit System and the Basic
Internal Control System, further enhancing the scientific rigor and applicability of its internal control system.
The establishment and improvement of the Company’s internal control system not only respond to relevant regulatory requirements of the China Securities Regulatory
Commission and stock exchanges and to the objective needs of adapting to the capital market governance system, but also serve as an internal necessity for strengthening
governance capabilities, preventing operational risks, and achieving high-quality development. Focusing on key areas of internal control, the Company has developed and
improved a series of policy documents, including the Basic Internal Control System, the Financial Internal Control System, and the Internal Audit Management System
for Human Resources, forming a multi-layered internal control system with the basic policy as the guideline, specialized policies as support, and oversight mechanisms
as safeguards. And, the Company conducts regular internal audits and special inspections on key areas such as procurement, project management, and production
management, to embed internal control requirements into all business processes.
In terms of operational mechanisms, the Company has established a closed-loop management model covering risk identification, process control, supervision and
rectification, and continuous improvement under the integrated internal control philosophy of “prevention before events, control during events, and handling after events”.
Through pre-event actions including policy improvement, authority clarification, risk assessment; in-event actions including process control strengthening, key point reviews,
checks and balances, and dynamic monitoring; and post-event actions including internal audits, performance evaluations, and corrective accountability, the Company
achieves comprehensive identification, effective control, and timely resolution of risks.
Through ongoing development and implementation, the Company’s internal control system has significantly contributed to risk prevention and operational improvement. It
effectively ensures operational compliance, asset security, and information integrity, solidifying the foundation of lawful operations. On the other hand, it significantly optimizes
business processes, improves operational efficiency and management effectiveness, and enhances the Company’s overall risk response capability. A well-structured and
efficient internal control system not only improves the Company’s governance level and capital market credibility but also provides solid institutional and managerial support
for the company's sustained growth and strategic goal attainment.
The Company integrates tax compliance and risk management into its overall governance framework, committed to building a transparent, efficient, and sustainable tax management system that supports business development and innovation while complying with global tax laws and regulations. To cope with
the complex tax environment, the Company has established a normalized system for tax risk identification and response. During the reporting period, the Company led targeted reviews of tax base management and the utilization of preferential tax policies at key subsidiaries, systematically identifying multiple
potential risk points, and a long-term risk list and response mechanisms were established to improve compliance with the application of major tax incentives. Through proactive, systematic screening, the Company successfully identified risks and implemented corrective measures, effectively controlling its
overall tax risk exposure, proactively highlighting potential compliance issues in operations, and preventing tax-related risks at the source.
Through digital tools and ongoing knowledge sharing, the Company continuously enhances tax operational standardization and efficiency within the Company. During the reporting period, by integrating internal and external professional resources, the Company organized multiple tax-related operational and
policy interpretation training sessions, including practical guidance on annual tax filing and final settlement, improving company-wide tax practices and efficiency in light of current policy developments. The Company efficiently completed full-year tax filing reviews and annual final settlements, and compiled
internal case studies to facilitate knowledge sharing, ensuring the accurate and efficient operation of foundational tax work. As a result, the Company has maintained an excellent tax compliance record for many consecutive years.
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
(III) Upholding compliance standards
management
The Company highly values integrity, compliance, and anti-fraud risk prevention, advancing a long-term mechanism of “no dare for corruption, no opportunity for To ensure that related-party transactions are conducted legally, compliantly, fairly, and impartially
corruption, and no desire for corruption” to continuously reinforce the line of compliant operations and ethical conduct. To ensure accessible reporting channels, and to effectively safeguard the legitimate rights and interests of Yifan Pharmaceutical and its non-
the Company has established special policies such as the Whistleblowing Supervision System and the Anti-commercial Bribery Compliance Management System, related shareholders, the Company has formulated the Related-Party Transaction Decision-Making
and set up diversified reporting channels including a complaint email, official social media accounts, telephone hotline, and questionnaires. Dedicated personnel System to comprehensively govern matters related to the related-party transactions in accordance
review these channels daily, handle reports promptly, and conduct end-to-end tracking and investigation of each reported matter. Additionally, routine operational with the Company Law, the Securities Law, the Measures for the Administration of Independent
audits focus on identifying fraudulent behaviors and risk indicators. Any confirmed violations are strictly addressed in accordance with company policies. Directors of Listed Companies, the Stock Listing Rules of the Shenzhen Stock Exchange, the
Accounting Standard for Business Enterprises No. 36 – Disclosure of Related Parties, the Self-
The Company systematically advances a long-term mechanism of “no dare for corruption, no opportunity for corruption, and no desire for corruption” to Regulatory Guidelines No. 7 for Companies Listed on the Shenzhen Stock Exchange – Transactions
comprehensively build a robust defense line for integrity, compliance, and risk prevention. In terms of “no dare for corruption”, the Company continuously conducts and Related-Party Transactions, and other applicable laws, regulations, and normative documents,
regular integrity education and compliance training. On December 18, 2025, an online integrity and anti-corruption training session was held for the Marketing and based on its actual operating conditions. It clearly defines the criteria for identifying related
Department of the Direct Operation Center, with analyzing typical internal audit findings and presenting anti-fraud case studies to guide employees to shift from relationships and related parties, and explicitly sets out the prerequisites and scope of related-party
passive rule-following to proactive compliance, thus to prevent fraudulent intentions at the source and safeguard the Company’s assets and operational stability. transactions, laying the foundation for the proper conduct of such transactions. Besides, the Company
In terms of “no opportunity for corruption”, the Company has established a robust preventive system, strictly implementing the Ten Prohibitions, the Whistleblowing has established a dynamic management mechanism for maintaining a list of related parties, ensuring
Supervision System, and the Anti-commercial Bribery Compliance Management System, which clearly define the red lines for various violations and misconduct, the truthfulness, accuracy, and completeness of related-party identification, thereby mitigating risks
continuously address institutional gaps, and promote specific, targeted, and routine supervision. In terms of “no desire for corruption”, the Company strengthens associated with related-party transactions at the source. This ensures fair and impartial decision-
deterrence and binding constraints through strict enforcement of the Accountability and Penalty System for Audit and Supervision Findings. Complaint reporting is making processes, effectively prevents related-party transaction risks, and protects the legitimate
managed through a standardized, end-to-end process, including initial review, investigation, resolution, and exoneration—all completed within required timeframes. rights and interests of the Company and all its shareholders.
A transparent, rule-based, and rigorous supervision and accountability mechanism is implemented to maintain order in its operations and management, foster a
culture of integrity and ethics, and provide strong disciplinary assurance for compliant operations and high-quality development.
In 2025, Yifan Pharmaceutical recorded no cases of corruption or commercial bribery.
To enhance its core security protection capabilities, Yifan Pharmaceutical places a particular emphasis on advancing full-cycle security reinforcement for data and endpoints and building proactive monitoring and early warning capabilities for infrastructure, thereby strengthening the foundation
of information security. For data and endpoint security reinforcement, the Company has upgraded its encryption software, significantly enhancing defense capabilities against advanced threats such as ransomware and zero-day attacks, and systematically reducing the risk of endpoint data
leakage. Endpoint security management strategies have been optimized, and an organizational structure synchronization mechanism has been improved to enable automated operations, effectively boosting management efficiency. Besides, upload-decryption and download-encryption
policies have been deployed for the WPS cloud drive, further optimizing the online collaboration experience for all employees while ensuring core data security. Network access control has been strengthened through the full implementation of access authentication for terminals within the
park. Mandatory identity verification and security compliance checks are performed on all devices attempting to connect to the network, preventing unauthorized or non-compliant devices from accessing the network at the source and effectively mitigating the risk of lateral attacks within the
internal network. Regarding infrastructure monitoring and early warning, the Company has deployed and enhanced an integrated server performance and security monitoring system, enabling real-time visual monitoring and intelligent early warning of core infrastructure’s operational status,
abnormal behavior, and potential security threats. This transforms the security operations model from “passive response” to “active detection and proactive remediation”, improving the proactivity and effectiveness of security management and control.
To further enhance its information security emergency response capabilities, Yifan Pharmaceutical has conducted practical drills to verify and strengthen the effectiveness of two emergency plans, establishing a closed-loop management system of “drill – review – improvement”. The Company
completed off-site backup and recovery drills for core business data, establishing a data disaster recovery mechanism aligned with business continuity requirements. This ensures that critical data can be rapidly restored under extreme circumstances, safeguarding the resilience of the
Company’s business operations. On the other hand, the Company once again organized a company-wide simulated phishing email drill and targeted training. Using highly realistic attack scenario simulations and focused guidance, these exercises further enhance employees’ ability to identify
and respond to high-frequency social engineering attacks such as phishing emails, and help the Company continue to refine its emergency response procedures, thus steadily improving its overall emergency response capabilities in information security.
YIFAN PHARMACEUTICAL CO., LTD. SUSTAINABILITY REPORT 2025
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Future Outlook As a new era begins, the path ahead is promising. Yifan Pharmaceutical remains committed to its medium- to long-term development strategies of "innovation and internationalization", with pharmaceutical
preparations and synthetic biologics as its primary directions. While maintaining its existing business, especially high-quality operations, the Company will continuously innovate and transform.
The year 2026 marks the first year of the Company’s new three-year plan. Adhering to its long-term development strategy and guided by the objectives of this three-year plan, the Company will adopt "innovation,
revenue generation, and benchmarking" as its annual theme, advancing globalization across three dimensions—R&D, supply, and commercial—to drive high-quality and sustainable development.
To achieve this goal, the Company will focus on three key dimensions (innovation, supply chain, and commercial operations) to achieve coordinated breakthroughs. In terms of innovation, the Company will adopt
a tiered approach to global markets, establish an R&D system relying on diverse innovation pathways, advance the progress of pipeline products, and build a differentiated and sustainable innovation landscape.
Regarding the supply chain, the Company will adhere to international and domestic standards, advance new production capacities, integrate supply chain resources, optimize costs, and extend value through
CMO and CDMO capabilities, forging sustainable competitiveness for "Yifan Manufacturing". In terms of commercial operations, the Company will implement differentiated layouts, leverage international platforms
to deepen its presence both domestically and abroad, establish a virtuous cycle of "in-licensing and out-licensing", and solidify its position in the domestic market.
The Synthetic Biologics Business Division will deepen its advantages in core areas, accelerate the industrialization and commercialization of new products, and systematically advance the capabilities of the
entire "R&D–manufacturing–commercialization" chain in the directions of "nutrition" and "personal care". While consolidating the market positions of existing products and ensuring basic performance, the division
will actively drive new projects toward production, regulatory approval, and commercial launch, opening up entirely new growth trajectories.
We look forward to embarking on this new chapter of the journey together. We firmly believe that every act of perseverance and breakthrough is a profound response to the cause of human health. The future is
already here. We will walk hand in hand with all our peers and supporters, steadily advancing on the path of protecting lives and co-creating a promising new chapter.
YIFAN PHARMACEUTICAL CO., LTD. SUSTAINABILITY REPORT 2025
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Appendices
(I) Key Performance Table
Economic performance Environmental performance
Category Performance indicator Unit 2025 Category Performance indicator Unit 2025 Category Performance indicator Unit 2025
Operating revenue RMB100 million 51.33 Number of pollution prevention and control
Number 111 Total direct energy consumption Tce 7,323.19
Net profit attributable to policies
shareholders of the listed RMB100 million 4.02 Total discharge of major pollutants Ton 2,212.17 Diesel Ton 32.09
company
Approved total discharge of major pollutants Ton 2,474.42 Natural gas 10,000 Nm? 1,008.60
Total assets RMB100 million 128.45
Economy Excessive discharge of major pollutants Ton 0
Net assets RMB100 million 88.35 Biomass fuel Tce 1,119
Total tax paid RMB10,000 42,583.31 Number of major administrative penalties due to
Item 0
pollutant discharge Direct energy consumption intensity Tce/RMB10,000 57.32
Asset-liability ratio % 32.18
Hazardous waste Ton 2,872.34
Social contribution value per Total indirect energy consumption 10,000 kWh 11,918.36
RMB/share 1.43 Ton/
share Hazardous waste intensity 4.24
RMB10,000 Total electricity consumption 10,000 kWh 9,758.17
*Statistical scope: Yifan Pharmaceutical Co., Ltd., consistent with the annual report
Non-hazardous waste Ton 198.33
Purchased electricity 10,000 kWh 9,758.17
Ton/
Non-hazardous waste intensity 8.05
Purchased steam tCO2e 175,919.14
Environmental performance RMB10,000
Total general solid waste Ton 2,650.91 10,000 kWh/RMB
Indirect energy consumption intensity 46.64
Category Performance indicator Unit 2025 10,000
Waste pharmaceuticals (HW03) Ton 97.72
Total investment in environmental protection RMB10,000 4,362.74 Total water consumption Ton 543,715.59
Number of environmental monitoring actions Time 450 Laboratory waste liquid (HW49) Ton 19.08
Fresh water consumption Ton 543,715.59
Number of participants in environmental Drug residue and sludge Ton 6,102.98
Person 2,149
protection training Pollutants Energy Water consumption intensity Ton/RMB10,000 6,596.76
Environmental Environmental protection training hours of and Waste Office, domestic and other non-hazardous waste Ton 42.09 Management
Hour 218
information employees Total water withdrawal Ton 1,274,775.94
Total wastewater discharge Ton 733,579.35
disclosure Number of environmental emergency drills Time 30
Tap water withdrawal Ton 771,042.94
Number of participants in environmental Chemical oxygen demand (COD) Ton 43.30
Person-time 860
emergency drills
Ammonia nitrogen Ton 0.45 Surface water withdrawal Ton 364,990
Number of green plants Number 3
Number of biodiversity protection policies Number 1 Total waste gas emissions Ton 280,453.87 Water withdrawal intensity Ton/RMB10,000 7,900.84
* Statistical scope: The data includes the Biologics Business Division, the Small Molecules (TCM) Business Nitrogen oxide (NOx) Ton 17.89 Total water discharge Ton 731,060.35
Division, and the Synthetic Biologics Business Division
Sulfur oxide (SOx) Ton 1.07 Discharge to surface fresh water (including
rainwater, wetland water, river water and lake Ton 26,895
Category Performance indicator Unit 2025 Soot emission Ton 1.12
water)
Total greenhouse gas emissions tCO2e 109,782.35
Other waste gas emissions Ton 106,600.25
Discharge to a third-party site Ton 704,165.35
Direct greenhouse gas emissions (Scope 1) tCO2e 31,126.53
Particulate matter Ton 3.13
Indirect greenhouse gas emissions (Scope 2) tCO2e 78,655.82 Recycled water volume Ton 32,004,852
Volatile organic compounds Ton 183.89
Addressing Greenhouse gas emissions from combustion tCO2e 20,261.08 Waste recycling volume Ton 127.20
climate change Greenhouse gas emissions from processing tCO2e 8,704 Carbon dioxide (CO2) Ton 16,780.99
Waste recycling rate % 9.86
Greenhouse gas emissions from electricity tCO2e 49,031.60 Number of environmental pollution accidents Item 0
Greenhouse gas emissions from steam tCO2e 29,624.22 Number of major administrative penalties due to Total investment in energy conservation and
Item 0 RMB10,000 559.86
environmental incidents emission reduction
Other greenhouse gas emissions generated tCO2e 2,161.45
* Statistical scope: The data includes the Biologics Business Division, the Small Molecules (TCM) Business * Statistical scope: The data includes the Biologics Business Division, the Small Molecules (TCM) * Statistical scope: The data includes the Biologics Business Division, the Small Molecules (TCM) Business Division,
Division, and the Synthetic Biologics Business Division Business Division, and the Synthetic Biologics Business Division and the Synthetic Biologics Business Division
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Social performance
Category Performance indicator Unit 2025 Category Performance indicator Unit 2025 Category Performance indicator Unit 2025
Number of patent applications Item 82 Labor contract signing rate % 100 Number of new employees aged 30 and below Person 363
Number of patents held (granted) Item 294 Social insurance coverage rate % 100 Number of new employees aged 31-50 Person 294
Number of newly granted patents for the year Item 28 Number of labor arbitrations or disputes Time 6 Number of new employees aged 51 and above Person 13
Number of invention patents applied to the main Number of annual paid leave days per capita Day 9 Number of new disabled employees Person 8
Item 134
business
Scientific and Total number of employees Person 4,182 Employee turnover rate % 8.96
Number of system certifications or qualifications
technological Item 20 Proportion of employees from ethnic minorities % 2.2 Number of male employees who left Person 319
held
innovation
Number of relevant R&D achievements Item 35 Number of disabled employees Person 45 Number of female employees who left Person 217
Number of R&D personnel Person 836 Proportion of employees who return to work and retain their jobs
Proportion of female executives (deputy general manager and % 100
% 40 after maternity/paternity leave
Proportion of R&D personnel to total employees % 19.99 above)
Annual medical examination coverage of employees % 100
Number of penalties for violation of technology
Time 0 Male employees Person 2,398 Number of occupational health and safety training sessions Time 60
ethics
Female employees Person 1,784 Occupational health and safety training coverage rate % 100
*Statistical scope: Yifan Pharmaceutical Co., Ltd., consistent with the annual report
Number of employees aged 30 and below Person 1,010 Number of employees participating in occupational health and safety
Person-time 2,687
training
Category Performance indicator Unit 2025 Number of employees aged 31-50 Person 2,548
Number of safety emergency drills Time 82
Number of suppliers Number 2,583 51 years old and above Person 624
Number of participants in safety emergency drills Person-time 3,697
Number of suppliers within the province Number 1,439 Number of full-time employees Person 4,182
Number of persons with occupational diseases Person 0
Employees Employees
Number of suppliers outside the province Number 1,144 Number of part-time employees Person 0
Number of work safety accidents Number 0
Supply chain Procurement expenditure RMB10,000 122,593.53 Proportion of employees with Master's Degree or Higher % 6.79
management Number of work-related fatalities Person 0
Number of supplier assessments Time 332 Proportion of employees with Bachelor’s Degree % 35.87
Work-related fatality rate % 0
Number of new suppliers Number 15 Proportion of employees with Associate Degree or below % 57.34
Number of work-related injuries Person 9
Number of suppliers that have signed an integrity Percentage of production staff % 38.55
Number 1,931 Number of working days lost due to work-related injuries Day 299
commitment
Percentage of sales staff % 23.91
Working hours per capita Hour 8
* Statistical scope: The data includes the Biologics Business Division, the Small Molecules (TCM) Business Percentage of technical staff % 19.99
Division, and the Synthetic Biologics Business Division Number of employee training programs Time 192
Percentage of financial staff % 3.90
Employee training hours Hour 6,450
Category Performance indicator Unit 2025 Percentage of administrative staff % 2.30
Number of employees trained Person 3,000
Number of training sessions on product quality and Percentage of managerial staff % 11.35
Time 258 Amount invested in various types of training RMB10,000 382.50
servicea
Number of senior management employees Person 10
Number of participants in training on product Average training hours per male employee Hour 7.2
Person 7,386
quality and service Number of middle management employees Person 464
Average training hours per female employee Hour 7.8
Products and Number of major safety and quality accidents
Item 0 Number of general employees (including supervisors) Person 3,753
services related to products and services Number of employees participating in professional skills training Person 1,331
Administrative penalties for safety and quality Number of new jobs created Person 339
RMB10,000 0 Number of employees participating in vocational qualification training Person 138
related to products and services Number of new male employees Person 394
Number of employees participating in academic qualification
Number of product recalls due to safety and health Person 13
Item 0 Number of new female employees Person 276 promotion
reasons
* Statistical scope: The data includes the Biologics Business Division, the Small Molecules (TCM) Business *Statistical scope: Yifan Pharmaceutical Co., Ltd., consistent with the annual report
Division, and the Synthetic Biologics Business Division
Category Performance indicator Unit 2025 Category Performance indicator Unit 2025
Number of customer complaints Item 467
Total investment in public welfare activities RMB10,000 601.76
Customer complaint response rate % 100
Number of security accidents related to customer Number of volunteer activities organized Time 31
Item 0 Social contribution
Customers privacy leakage or theft
Amount involved in customer privacy leakage or Number of participants in volunteer activities Person-time 49
RMB10,000 0
theft
Number of violations or disciplinary incidents Volunteer activity hours Hour 186
Item 0
related to marketing and publicity
* Statistical scope: The data includes the Biologics Business Division, the Small Molecules (TCM) Business *Statistical scope: Yifan Pharmaceutical Co., Ltd., consistent with the annual report
Division, the Synthetic Biologics Business Division and the Global Business Division
YIFAN PHARMACEUTICAL CO., LTD. SUSTAINABILITY REPORT 2025
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Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
Governance performance
(II) Indicator Index Table
Category Performance indicator Unit 2025
Self-Regulatory Guidelines No. 17 for Companies Listed on
Number of personnel responsible for due diligence Person 15 Report section （GRI Standards） Shenzhen Stock Exchange—Sustainability Report (For Trial
Implementation)
Number of agencies responsible for due diligence Number 5 Report Description 2-2、2-3、207-4 Article 4、Article 6
Chairman’s Address 2-11、2-22 /
Number of board members Person 6
About Us 2-1、2-6、201-1 Article 5
Number of board members aged 30and below Person 0 Special Topic I: Innovation Endures, Life Flourishes:
R&D Breakthroughs and Health Commitments of 416-1、416-2 Article 5
Special Topic II: Global Support, Local Empowerment:
Number of board members aged 51 and above Person 4 Building an Open and Collaborative Pharmaceutical 2-6、416-1、416-2 Article 5
Innovation Ecosystem
Number of female board members Person 2
Corporate Sustainable development
Sustainable governance structure
governance Number of independent directors Person 2
Development Stakeholder communication 2-16、207-3 Article 9、Article 53
Management
Number of board meetings held Time 6 Material topic analysis 3-1、3-2、3-3、201-2 Article 5、Article 10、Article 14、Article 15
Number of proposals reviewed at board meetings Item 45 Article 10、Article 11、Article 19、Article 41、Article 42、Article
Innovating for a healthier future 2-23、2-27
Innovation-driven 43
Number of general meetings held Time 3 Renewal of Products
Advancing accessible healthcare 416-1、416-2 Article 5、Article 47
and Services
Maintaining strict safety
Number of proposals reviewed at general meetings Item 21 2-27 Article 47
standards
Supply chain management 2-6、2-27、2-28、308-1、308-2 Article 10、Article 11、Article 44、Article 45
Number of responses to stakeholder questions Time 418
Collaboration for
Number of activities related to protecting medium and small investors Time 3 Mutual Success and Protecting customer rights 2-6、2-23、2-25、417-1、417-2、417-3、418-1 Article 19、Article 48
Value Creation
Number of information disclosure documents issued Item 114
Supporting public welfare
initiatives
Information
Number of periodic reports Item 72 Safeguarding employee rights 2-19、2-23、2-27、202-1、404-1、405-1、406-
disclosure Safeguarding Article 10、Article 11、Article 19、Article 49、Article 50
and interests 1、408-1、409-1
Number of interim reports Item 42
Employee
Development with 2-23、2-27、403-1、403-3、403-5、403-6、
People-oriented Safeguarding employee health Article 19、Article 50
Number of commercial bribery-related violations Item 0 403-7、403-8
Approaches
Enhancing employee well-being 2-30、201-3、401-2、407-1 Article 50
Number of corruption-related violations Item 0
Strengthening environmental 2-23、2-27、306-1、306-2、306-3、306-4、 Article 10、Article 11、Article 19、Article 29、Article 30、Article
Number of activities to prevent unfair competition Time 10 management 306-5 31、Article 33
Number of incidents of unfair competition practices leading to litigation or major administrative Green Operations to
Item 0 301-2、301-3、302-1、302-4、303-1、303-2、
penalties Protect Our Common Improving energy efficiency Article 28、Article 34、Article 36、Article 37
Home
Number of commercial bribery training sessions Time 20
Deepening green operations
Number of anti-corruption training sessions Time 20 305-5 28、Article 32
Compliance
Strengthening corporate
governance 2-9、2-10、2-23 Article 10、Article 11、Article 19、Article 51
Number of directors who received anti-commercial bribery and anti-corruption training Person 4 Stable Operations governance
to Consolidate the Strengthening risk management 2-12、2-24、201-4、207-1 Article 52
Proportion of directors who received anti-commercial bribery and anti-corruption training % 67 Foundation for
Development Upholding compliance standards 2-15、2-23、2-24、2-27、205-2、205-3、206-1 Article 19、Article 54、Article 55、Article 56
Number of management personnel who received anti-commercial bribery and anti-corruption
Person 363
training
Proportion of management personnel who received anti-commercial bribery and anti-corruption Future Outlook / /
% 72
training 2-7、201-1、204-1、205-2、302-1、302-4、
Number of employees who received anti-commercial bribery and anti-corruption training Person-time 2,669 Key Performance Table Article24、Article25
Proportion of employees who received anti-commercial bribery and anti-corruption training % 63
Indicator Index Table / /
Independent Assurance Report 2-5 /
*Statistical scope: Yifan Pharmaceutical Co., Ltd., consistent with the annual report
Reader Feedback 2-29 /
YIFAN PHARMACEUTICAL CO., LTD. SUSTAINABILITY REPORT 2025
报告说明
Report Sustainable Development Innovation-driven Renewal of Collaboration for Mutual Safeguarding Employee Development Green Operations to Protect Our Operations to Consolidate the Future 53
Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
(III) Independent Assurance Report
YIFAN PHARMACEUTICAL CO., LTD. SUSTAINABILITY REPORT 2025
报告说明
Report Sustainable Development Innovation-driven Renewal of Collaboration for Mutual Safeguarding Employee Development Green Operations to Protect Our Operations to Consolidate the Future 54
Description Management Products and Services Success and Value Creation with People-oriented Approaches Common Home Foundation for Development Outlook
(IV) Reader Feedback
Thank you for reading the 2025 Sustainability Report of Yifan Pharmaceutical Co., Ltd. To offer you and other stakeholders more
valuable insights, improve oversight of our sustainability efforts, and boost our social responsibility performance, we welcome
your valuable comments and suggestions on this report.
□ Excellent □ Good □ Average □ Below Average □ Poor
responsibilities?
Environmental responsibility: □ Excellent □ Good □ Average □ Below Average □ Poor
Social responsibility:□ Excellent □ Good □ Average □ Below Average □ Poor
Corporate governance: □ Excellent □ Good □ Average □ Below Average □ Poor
sustainability?
□ Very effectively □ Quite effectively □ Moderately effectively □ Not very effectively □ Not at all effectively
Clarity: □ Excellent □ Good □ Average □ Below Average □ Poor
Accuracy: □ Excellent □ Good □ Average □ Below Average □ Poor
Completeness: □ Excellent □ Good □ Average □ Below Average □ Poor
□ Yes □ Average □ No
YIFAN PHARMACEUTICAL CO., LTD. SUSTAINABILITY REPORT 2025
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