圣达初心 笃行致远
圣达初心 笃行致远
About this Report
This report is the first copy of "Report of Environmental, Social, and Corporate Governance"
issued by Zhejiang Shengda Bio-Pharm Co., Ltd. ("Shengda Bio-Pharm", "Shengda",
Compilation Principles
"Company", or "the Company"). Subsequent reports will be published regularly on annual This report is developed mainly based upon the No. 14 Self-Regulatory Guidelines
basis. The Report of Environmental, Social, and Corporate Governance in 2025 ("this for Listed Companies in Shanghai Stock Exchange- Sustainability Reports (Trial) and
Report") will elaborate in all respects the corporate policy and concept on sustainability, as No. 4 Self-Regulatory Guidelines for Listed Companies in Shanghai Stock Exchange-
well as its performance in environmental, social, and corporate governance ("ESG") for the Sustainability Report Development, with appropriate reference to international
year 2025. standards such as the IFRS Sustainability Disclosure Standards of the International
Sustainability Board's (ISSB), and the GRI-Standards of the Global Sustainability
Standards Board's (GSSB). It contains the company's commitment and actions to the
United Nations Sustainability Goals (UN SDGs), and shows its efforts made under the
Organizational Boundary ten principles of the United Nations Global Compact.
This report covers Shengda and its subsidiaries, with certain sections involving the
controlling shareholders of the company, specifically including: Data Source
The key financial data in this report is sourced from the audited Annual Report of
Zhejiang Shengda Group Co., Ltd ("Shengda Group" , the controlling shareholder of the
Zhejiang Shengda Bio-Pharm in 2025, while other data is sourced from the corporate
company)
internal documents and audit statements etc. Unless as noted otherwise, the
Anhui Shengda Bio-Pharm Co., Ltd. ("Anhui Shengda" , a subsidiary of the company) currencies contained herein are in CNY. Appropriate authority and license have been
duly granted for use of the pictures in this report.
Tongliao Shengda Biological Engineering Co., Ltd. ("Tongliao Shengda" , a subsidiary of
the company)
Zhejiang Silver-Elephant Bio-engineering Co., Ltd. ("Silver-Elephant" , a subsidiary of the Language
company)
This report is developed and publicized in simplified Chinese, with an English version
Zhejiang Shengda Bio Research Institute Co., Ltd. ("Research Institute" , a subsidiary of thereof made available. In the event of any discrepancy between the different versions,
the company) the version in Chinese shall take precedence.
Zhejiang Yitao Food Technology Co., Ltd. ("Yitao Food" , a sub-subsidiary of the company)
Release Form and Accessibility
Time Framework The report is publicized in electronic format, which is accessible via the company
website (http://www.sd-pharm.com/).Please feel free to contact us via the way
The reporting period primarily covers year 2025 (a period from January 1, 2025, to below if you have any advice on the report:
December 31, 2025). To ensure the continuity of information and data, reference is
made to historical data in some sections. E-mail：zqb@sd-pharm.com
圣达初心 笃行致远
Chairman's Speech Be People-oriented: Create Platforms for Sharing Achievements
In 2025, Shengda Bio-Pharm took talent as the most powerful engine of development. With the
improvement of a dual-channel promotion system and the performance of the employee shareholding
plan, the company has enabled every dedicated individual to become a beneficiary of the company's
Dear stakeholders: growth. It showed deep concern and cared its employees by organizing various recreational and sports
activities and stressing on their physical and mental health management. The company focused not only
China is now in an important transitional period for its economic and social development. With on the output of its employees but also on the quality and dignity of their life.
the furthering of the outlined "Healthy China 2030" plan and "Dual Carbon" strategic goals, the
biopharmaceutical industry comes to a historical intersection for green development and industrial Social Responsibility: Pass on Goodwill to Promote Social Progress
upgrading. This is not only a historical mission bestowed upon us by the era, but also the strategic
In 2025, Shengda Bio-Pharm continued, as usual, its efforts to integrate corporate development into social
opportunity we must seize for our development. As a pioneer in the fields of vitamins and bio-preservatives,
progress. With operation of the Group's "An Yang Yuan" , we explored a practical way for high-quality elderly
Shengda Bio-Pharm is committed to the vision of being a "Guardian of Health", aiming to provide safe
care services. Through execution of agreement for joint construction, it injected capital and industrial
and high-quality health products for its global consumers as driven via technical innovation and green
resources into the rural areas to improve the growth of collective economy. It also set an education incentive
development. To this end, we are setting up systematically an ESG governance framework and "HEALTH"
fund to plant the "Shengda Hope" and drive further development of education institutions. The company
strategic framework, which are normalized, effective and complying with the cut-edging industry standard.
is writing a great Shengda chapter in advancing common prosperity through its moral practice and
We have publicized officially the company's first ESG report. It is not only a milestone towards sustainability,
contribution to the society.
but also our serious commitment we made with respect to the thorough review and continuous
improvement of the company's non-financial performance.
Compliance Governance: Law-abiding Operation to Secure Steady
Green operation: Technical innovation for High-level Safety Development
In 2025, Shengda Bio-Pharm tackled the pressing challenges in energy consumption by using new quality In 2025, Shengda Bio-Pharm continued to shift its compliance awareness to a core management instinct. By
productive forces in such fields as water resource recycling in the folic acid (Vitamin B9) workshop, steam applying a comprehensive due diligence mechanism, it fully identified and assessed compliance exposed
energy efficiency improvement in the nisin production line and synergy of photovoltaic and waste heat risks so as to safeguard the risks at the source. It maintained a "zero-tolerance" policy towards commercial
recovery systems. The company is becoming gradually a green and innovative producer. In the meantime, bribery and corruption to foster a clean and transparent business environment through well-established
it has formed a rigorous safety protection network through a dual prevention mechanism for risk control supervision mechanisms and strict accountability systems. The company is positive in promoting the
and potential hazard governance to achieve zero major environmental and safety accidents throughout the creation of a fair and transparent market competition framework, respecting intellectual property rights
year. It maintained a lifeline of green development to build a safety barrier for its employees, communities and opposing unfair competition. It encouraged its partners to jointly enhance the compliance standards,
and the society. working together to build a healthy and orderly industrial ecosystem.
Quality Innovation: Strive for Excellence to Ensure Enduring Success Looking back on our journey, we have taken solid and firm steps; looking ahead, we are full of confidence.
In 2025, Shengda Bio-Pharm continued to consolidate its technical strength in the industry. Powered by Standing at a new historical starting point, Shengda Bio-Pharm will deepen its ESG practices with a higher
a highly skilled R&D team led by doctoral and master's degree holders, alongside a high-throughput R&D stance, broader vision, and more concrete measures to propel the company's high-quality development.
platform, it made sustained breakthroughs in key technological areas such as bio-fermentation, chemical It will integrate deeply the ESG concept into the "15th Five-Year Plan", making sustainability a core pillar of
synthesis, and process development, driving Bio-pharm toward greater efficiency and sustainability. its corporate strategy. The company will systematically advance the comprehensive implementation of the
In response to the market's growing demand for healthy products, the company has been working HEALTH (Health, Environment, Innovation, Humanity, Supply Chain, Business Ethics) strategy to ensure ESG
continuously to tackle the industry-wide challenge of reconciling "natural health" with "long-term takes root and flourish in all of its business operations. Let's join our hands and support one another, more
preservation." With a deep sense of responsibility, it refined the product quality and, through a full life-cycle resolutely, pragmatically and innovatively, to collectively write a new chapter in Shengda Bio-Pharm's high-
quality management system, established"Shengda Manufacturing" as a hallmark for QA. quality development and create jointly a greener, healthier, and brighter future!
About Shengda Bio-Pharm
Company Profile
Shengda Bio-Pharm (Stock Code: 603079) is primarily engaged in the R&D, production, and sales of vitamins and food additives. Its product slate covers vitamin products such as D-Biotin (Vitamin B7) and folic acid (Vitamin
B9), as well as biological preservative and functional ingredient products including nisin, natamycin, and ε-polylysine hydrochloride. Based on a world-class quality management system, the company has established a
standardized and regulated operation system, and continuously provides high-quality products and services to customers around the world.
As one of the earliest companies in China to engage in the production of D-Biotin, the company is a major global supplier for D-Biotin and folic acid, also one of the earliest domestic producers of bio-preservatives, which is
recognized as a leading enterprise in the food additive industry in Zhejiang Province, a provincial "Potential Champion" in its industry, a key agricultural research institute in Zhejiang Province and a national-level "Little Giant"
enterprise. It enjoys a high fame and reputation in the global food additive industry. Based upon its years of operational experience, continuous technical innovation, process optimization, and application development, the
company has established itself as a leader in the product segment sector. It is leading globally in terms of mass production capacity, technical expertise, product market share and brand recognition. The Company has also
been honored with titles such as "China Quality Integrity Enterprise", " Mid-sized Enterprise with High Growth Potential in Zhejiang Province", and "Model Enterprise for Industrial Circular Economy in Zhejiang Province" etc.
The company deeply implements its forward and backward integration development strategy to fully integrate the resources of its subsidiaries, enhance synergies and coordination, and steadily to advance the construction
of the entire industrial chain. In terms of forward integration, the company has continued to optimize innovative processes, enhance product quality, and actively pursue various authoritative accreditation. It has undergone
the AEO Advanced Certification from the customs and obtained the CEP certificate for D-Biotin issued by the European Directorate for the Quality of Medicines & HealthCare (EDQM), becoming the first certified domestic
manufacturer of pharmaceutical-grade D-Biotin. Additionally, it has completed the registrations for D-Biotin and folic acid in India, steadily expanding into the API pharmaceutical sector. In terms of backward integration, the
company has established production bases in Anhui and Tongliao, creating the synthesis base and the Tongliao fermentation base in Anhui Province. These facilities provide upstream raw material security and production
capacity support for products such as vitamin series, environmentally friendly water-based polyurethane series, bio-preservatives, and functional ingredients. Among the above, Tongliao Shengda has, via leveraging
economies of scale, process optimization, lean management, and a circular industrial chain layout, established its systematic and structural cost advantages to continuously enhance its core competitiveness and profitability.
The company adheres to its core values of "customer first, people orientation, professionalism and integrity for mutual benefit" . It is mainly engaged in the vitamin and natural preservative business, aiming to become an
outstanding enterprise in the world by providing safe, sustainable, and innovative solutions on foods, feed additives and natural preservatives for its customers in the global food and animal nutrition sector.
Main Business
Provide Biological Preservation Lead the Healthy and Sustainable
Maintain Global Health and Nutritional Balance
Solutions for Multiple Scenarios Development of the Food Industry
D-Biotin Folic Acid Riboflavin
(Vitamin B7) (Vitamin (Vitamin Nisin Natamycin ε-polylysine Dry Vinger Fermented
B9) B2) Sugar
About Shengda Bio-Pharm
Main Applications
Vitamins Bio-preservatives and Functional Gradients
Animal Nutrition Sauce and Milk and Dairy Cheese Pastry Cooked Rice Meat Products
Sauce Products Products
Animal Nutrition Canned Food Braised Pork Fruit and Sauce Pasta Barbecued Snack
Vegetable Braised Food Foods
Juice Pork
Vitamin Vitamin Vinegar, Compound Bacon Western- Sushi Seasoning
Supplement Drink Coffee, and Seasoning style Ham
Tea Beverages
Corporate Culture and Values
Professional Expertise &
Customer First Benefit yourself and Others Embrace Change Work Happily Learn and Grow
Specialization
Respect customers, Act with love and Face change with a positive Focus and excel. Promote Be joyful in the work that Continuously engage in
understand them, and assist responsibility, respect and mindset, respond to change both the corporate and creates value, Work as much open communication,
them from their perspective; understand others, put with effective actions, and individual expertise as you enjoy life, and Live absorb advanced ideas, and
Manage expectations, yourself in other's shoes and foster personal and creative simultaneously. Improve your life as seriously as you constantly renew your skills
balance customer needs and keep the big-picture in mind development through continuously the corporate treat your work. and knowledge, ensuring
strive for maximal mutual to benefit others via your changes. professional standards in your learning outpaces the
benefit. acts. practice. speed of changes.
Historical Evolution
Tongliao
The company acquired
main board market
Business expansion
The company expanded its Bio-Engineering Co., Ltd.
share expansion, the company listed on the main board Shengda Bio-Engineering
Company acquired Zhejiang Silver- of the Shanghai Stock Co., Ltd., to strategically
incorporation Elephant, a renowned Exchange in the same year lay out a fermentation
Shengda Bio-Pharm has bio-preservatives (stock code: 603079) industry base and expand
become the world's largest manufacturer, and the layout of a big health
Acquire Tiantai
supplier for D-Biotin so far. Anhui Changming industry.
Pharmaceutical Works
via competitive bidding Pharmaceutical. It
and establish Shengda subsequently established
Pharmaceutical to Anhui Shengda to lay out a
start operations in the synthetic industry base.
vitamin industry. In 1999,
Shengda Bio-Pharm was
incorporated.
About Shengda Bio-Pharm
production and
Jointly build a improve quality
cornerstone of
The company successfully
development
differentiated The company rolled out an placement fundraising.
Deepen
plan to provide incentives empowerment, it has
business structure
for key talent. By increasing steadily expanded its
The company is
market-driven R&D
Issue convertible
deeply engaged in product portfolio, bringing
For the first time, investment and leveraging
bonds
the high-specification its industrial scale and
revenue from the food innovations in synthetic operational quality to a
pharmaceutical-grade
The company issued QA and ingredient biology processes to new level.
vitamin sector, steadily
convertible corporate sector surpassed that achieve breakthroughs
expanded its food
bonds totaling 299 of the vitamin industry, in critical technologies,
preservation business,
million yuan to support becoming the company's it is advancing its
and achieved remarkable
the development of pillar business. sustainability.
results in the innovation
Tongliao Shengda, and
and implementation
promote the sustained
of circular production
growth of the company's
processes.
biological preservation
and functional ingredient
product segments.
Honor and Recognition
In recent years, Shengda Bio-Pharm has continuously integrated ESG concept into the entire process of its operations and management to steadily improve its sustainability system.
Thanks to its solid practices and outstanding performance in relevant fields, the company is widely recognized and won more than one honorary title:
Second Prize for Science Third Prize of Science Postdoctoral Program
Zhejiang Provincial
and Technology Progress in and Technology Progress Workstation in Zhejiang
Engineering Research Center
Zhejiang Province in Zhejiang Province Province
Zhejiang Provincial Zhejiang Provincial Famous Export Brand in
Quality Integrity Enterprise of
Enterprise Research Enterprise Technology Zhejiang Province (Under Re-
China
Institute Center examination)
"Specialized, Sophisticated,
Distinctive, and Innovative"
small and medium-sized Innovative small and "Specialized, Sophisticated,
Enterprise in Zhejiang Province medium-sized enterprises Provincial high-tech enterprise Distinctive, and Innovative" Little
(Under Re-examination) in Zhejiang Province Giant Enterprise in Taizhou
AAA-level "Contract-Honor
Trustworthy" Enterprise in Certificate of AAA Demonstration Enterprise of
Quality Award of Taizhou
Zhejiang Province (Under Re- Good Standardization Industrial Circular Economy in
Municipal Government
examination) Practices Zhejiang Province
One of the 3rd Batch of
Water-saving Benchmark Four-star Enterprise in Enterprise for Cultivation of Enterprise for private economy
Enterprise in Zhejiang Enterprise Management "Pacesetters" for Integrated home office cultivation in
Province Rating of Zhejiang Province Domestic and Foreign Trading Zhejiang Province
in Zhejiang Province
About Shengda Bio-Pharm
The company subsidiaries also carried out actively the ESG concept and have achieved remarkable results in their sustainability practices as recognized by the authoritative institutions.
Anhui Shengda
"Specialized, Sophisticated,
Provincial-level Water- Distinctive, and Innovative" Enterprise R&D Center of Anhui
National high-tech enterprise
Saving Enterprise small and medium-sized Province
Enterprise in Anhui Province
Silver-Elephant
"Specialized,
Sophisticated, Distinctive,
Water-saving Benchmark Innovative small and medium-
and Innovative Little Giant"
Enterprise in Zhejiang sized enterprises in Zhejiang High-tech enterprise
Enterprise in the Ministry of
Province Province
Industry and IT
Yitao Food
Specialized, Sophisticated,
Distinctive, and Innovative"
small and medium-sized Small and medium-sized Innovative small and Demonstrative Base for Enterprise Meeting Grade
Enterprise in Zhejiang Technical Enterprise in medium-sized enterprises Trade Secret Protection III Standard for Work Safety
Province Zhejiang Province in Zhejiang Province in Taizhou City Standardization
Tongliao Shengda
Specialized, Sophisticated, Development and
Innovative small and Distinctive, and Innovative Industrialization Demonstration
High-tech enterprise medium-sized enterprise in small and medium-sized for Green Intelligent
in Inner Mongolia Inner Mongolia Autonomous enterprise in Inner Mongolia Manufacturing Technologies in
Autonomous Region Region Autonomous Region Key Biomedical Industries
Sustainability Management
Corporate Governance
Shengda Bio-Pharm strictly complies with the Company Law of the People's Republic of China, the Securities Law of the As of December 31, 2025
People's Republic of China, the Governance Guidelines for Listed Companies, relevant regulations of the China Securities
Regulatory Commission, and the Listing Rules of Shanghai Stock Exchange Stock to continuously improve its corporate the company's BOD comprised a total of
governance mechanism. The company's BOD is responsible for supervising and managing all significant matters of the
company, including formulating and approving all policies, overall strategies, risk management and internal control
systems, as well as monitoring the performance of the management team.
including and
Corporate Governance Structure of Shengda Bio-Pharm
Shareholder
Meeting
The current directors and senior executives of the
Strategy Commission BOD company are all experienced professionals in the fields
BOD Secretary of food and medicine, risk management, accounting,
Nomination Commission law, and other related areas.
Payroll and Assessment General BOD Office(Security Dept)
Commission Manage
During the reporting period
Audit Audit Commission
Supervision Dept the company held a total of deliberating on
Production Project Management Dept. 5 shareholders' meetings 28 proposals
Market and Commerce Dept.
Quality Management Dept.
and
International Trade Dept.
HSE Management Dept.
Domestic Trade Dept.
Administration Office
Procurement Dept.
Finance Dept.
board meetings for deliberating on proposals.
HR Dept.
To further comply with relevant laws, regulations,
and supervisory provisions, and in consideration of
the company's actual situation, Shengda Bio-Pharm
has decided to establish no board of supervisors as of
November 2025.
ESG Governance Structure
Shengda Bio-Pharm stresses highly on sustainability and endeavors to gradually improve its ESG governance structure, it has established 1) researching and formulating the company's ESG vision, goals,
a robust ESG management system, refining ESG key performance indicators and specific action plans based on the material topics and strategies; 2) identifying and assessing ESG-related risks and
identified, aiming to explore the establishment of ESG objectives, promote systematic ESG practices in corporate management opportunities, and developing response strategies; 3) formulating
and operations, and comprehensively enhance the company's ESG management capabilities. In 2025, the company explored the and reviewing ESG systems, processes, and assessment plans
establishment of a three-tier ESG governance structure consisting of "decision-making level - management level - execution level" and to ensure the implementation of ESG policies; 4) reviewing the
built an ESG work network to comprehensively coordinate all ESG-related activities. annual ESG report and submitting it to the BOD for approval.
The Sustainability Leadership Team serves as a permanent body
ESG Governance Structure of Shengda Bio-Pharm of the Strategy Commission and is also responsible for the overall
coordination and daily management of ESG activities. Led by the
Decision-making Level Board Office (Securities Dept.), it is tasked with implementing
BOD the decisions and deployments of the BOD and the Strategy
Commission. It organizes and coordinates various departments
and subsidiaries of Shengda Bio-Pharm to carry out ESG-related
Strategy Commission activities to ensure the effective implementation of ESG strategic
objectives. Based on the professional fields of ESG work and
the actual corporate conditions, seven professional teams have
Management Level established, including the Climate Change Response Team,
Sustainability Leading Group Environmental Compliance Team, Product Quality and Safety
Team, Employee Equity Team, Sustainable Supply Chain Team,
R&D Innovation Team, and Business Ethics Team. The heads
Execution Level of the leading departments serve as the leaders of each team,
responsible for achieving various ESG objectives and tasks in their
Employee Equity Team
R&D Innovation Team
Business Ethics Team
Product Quality and
respective fields, regularly collecting, compiling, and submitting
Sustainable Supply
Compliance Team
Climate Change
Response Team
Environmental
ESG data and information in their fields, communicating with
Safety Team
Chain Team
stakeholders on ESG issues and participating in the preparation
of the company's annual ESG report.
Based on the above, the company will fully leverage the
effectiveness of its ESG governance structure, integrate ESG-
related topics into the regularly convened meetings of the
Strategy Commission, review and discuss materiality matrix,
In the above structure, BOD and its subordinate Strategy Commission serve as the "decision-making level" for ESG. The BOD, as the sustainability goals, actual progress of ESG activities, future
highest decision-making body for ESG at Shengda Bio-Pharm, bears the ultimate responsibility for ESG governance. It is responsible for planning directions, and other key ESG issues, and effectively
reviewing and approving the company's ESG development strategy, medium- and long-term plans, and annual work plans, as well as supervise and thoroughly examine the implementation of the
the identification and management of ESG risks and opportunities, the company's annual ESG report, and the achievement of annual ESG management strategy.
key performance indicators and targets. The Strategy Commission, as a professional decision-making body, is primarily responsible for:
Sustainability Management
Stakeholder Communication
In the process of business development and daily operations, the company fully emphasizes and encourages transparent and open communication between responsible departments,
individuals, and stakeholders. While effectively conveying the company's strategic development, financial performance, and sustainability achievements, the company also actively listens
to opinions and suggestions to identify the feedback and expectations from stakeholders, and promote the long-term healthy development of the company.
The main stakeholders of the company include, but are not limited to, governments and regulatory agencies, shareholders and investors, domestic and foreign customers, suppliers and
partners, employees, community members, and industry associations. The company regularly maintains communication and exchanges with stakeholders through various channels,
listening to and actively responding to the expectations and requirements of various stakeholder groups. Apart from compliance operations, financial performance, product quality,
and safety, special focus is also on stakeholders' concerns regarding environmental protection, labor rights, and the construction of sustainable supply chains to ensure that various
management practices fully respond to stakeholders' expectations and requirements.
Communications with Shengda's Stakeholders
Stakeholders Communication channels and frequency Expectations and requirements Response
•Talks and exchanges (irregular) •Compliance operation •Observe laws and regulations
Governments
•Supervision and inspection (irregular) •Respond to the national strategy •Rely on industrial advantages to support the construction of a
and regulatory healthy China
authorities
•Organize visits (irregularly) •Drive economic development •Create wide employment opportunities and pay taxes under law
•Daily report and communication (irregular) •Maintain market order •Strictly abide by business ethics and safeguard fair competition
•Improve governance capacity and optimize the risk management
•Shareholders' Meeting (annual) •Efficient corporate governance system
Shareholders •Regular Reports and Announcements •Sound economic performance •Maintain good profitability
(quarterly/annual reports, irregular
and investors
announcements)
•Timely information disclosure •Regularly release annual reports, announcements and other public
•Smooth channels for communication information
•Investor relations activities (irregular)
•Performance statement at regular intervals
•Due Diligence (irregular) •Promote innovation of products and services
•High-quality, safe and innovative products
Domestic
•Industry exhibition (annual) •Continuously improve product quality and ensure product safety
•Facilitating and effective service
and foreign
•Customer visits (irregular) •Strengthen customer relationship maintenance and listen to
customers
•Sustainable procurement customer feedback and opinions
•Customer satisfaction survey (annual) •Comprehensively improve sustainable performance and results
•Supplier conference (annual) •Improve the supplier evaluation and management mechanism
•Cooperation in good faith
Suppliers and •Supplier review and evaluation (annually) •Integrate ESG into the entire process of supplier management
•Communication empowerment
Partners •Daily work communication (irregular) •Carry out supplier communication and training
•Industry seminar and cooperation (irregular) •Actively empower the development of the industry
Stakeholders Communication channels and frequency Expectations and requirements Response
•Respect and protect the legitimate rights and interests of workers
•Staff Representative Congress (annually) •Protection of the legitimate rights and interests of workers •Create a diverse and equal working environment
•Staff education and training (irregular) •Equal, diverse and inclusive working environment •Establish a fair, impartial and transparent salary management
system
Employees •communication (irregular) •Sophisticated salary and welfare system
•Provide employees with comprehensive and multi-dimensional
•Internal communication platform (real-time) •Clear training plans and career development paths
training resources
•Employee complaint channel (real-time) •Occupational Health and Safety •Ensure safety in production and the prevention and control of
occupational hazards
•Practice green production
•Community volunteer activities (irregular) •Community development
community •Carry out public welfare and charitable activities
•Charitable Donations (irregular) •Rural revitalization
public •Devote to rural revitalization and assist in achieving common
•Organize visits (irregular) •Public welfare and charity activities
prosperity
Industry •Participate in the formulation of industry standards
•Member activities •Active industry participation
association •Participate in industry exchanges
Double Materiality Assessment
Assessment of materiality is the cornerstone of corporate ESG management and information disclosure. In 2025, based on the "No. 1 Overall Requirements and Disclosure Framework" outlined in the series of
documents including No 14 Self-Regulatory Guidelines for Listed Companies in Shanghai Stock Exchange- Sustainability Report (Trial)" and No 4 Self-Regulatory Guidelines for Listed Companies in Shanghai
Stock Exchange- Preparation of Sustainability Report, as well as disclosure standards such as the European Sustainability Reporting Standards (ESRS) of the European Union, and taking into account its own
strategic planning and realistic situations, the company comprehensively analyzed the impact the 21 ESG topics outlined in the above No 14 file on the company's finances, economy, environment, and society
through on-site interviews, survey questionnaires, seminars, and other forms. After review and approval by the BOD and the strategy commission, the company disclosed the double materiality assessment
process and results, and responded in detail to the topics identified as with "financial" materiality, by using the four-pillar disclosure structure of "governance - strategy - impact, risk, and opportunity
management - indicators and targets".
Step 1: Understand the Enterprise Background Information and the Affected Stakeholders
The company fully analyzed the relationship between internal activities and business, including the actual and potential sustainability-related impacts of upstream and downstream value chains. By combining
the analysis of the external objective environment, including domestic and foreign policies, industry hotspots, market trends, company strategies, and development needs, the company has identified
potential impacts that may arise on the company. In the meantime, based on the relevance of stakeholders to ESG topics, the company identified two major internal stakeholders: "board members" and "the
management", as well as six major external stakeholders: "employees", "government and regulatory agencies", "shareholders and investors", "customers", "suppliers", and "community". Among them, internal
stakeholders participate in the financial materiality assessment, while both internal and external stakeholders jointly participate in the impact materiality assessment of topics.
Step 2: Identify the Current or Potential Impacts, Risks and Opportunities Related to ESG Topics
Regarding the 21 ESG topics outlined in the "No 14 Self-Regulatory Guidelines for Listed Companies in Shanghai Stock Exchange – Sustainability Report (Trial)", the company conducted an assessment of
Sustainability Management
applicability and relevance based on its industry characteristics and business operations. The results showed that the "Technology Ethics" and "Equal Treatment of Small and Medium Enterprises" are not
applicable to the company or its subsidiaries. Hence these two topics are not assessed or addressed in this report .
Based on on-site interviews and desktop benchmarking, the company conducted a thorough analysis on the remaining 19 topics to identify relevant impacts, risks, and opportunities thereunder. Taking topics
such as "Addressing Climate Change", "Product and Service Safety & Quality", and "Innovation-Driven Growth" as examples:
Response to climatic change
Positive The company promoted the green transformation and upgrading of existing products by phasing out high-energy-consuming equipment, optimizing production
Impact processes, and utilizing clean power, while implementing green manufacturing in new projects to reduce greenhouse gas emissions.
Negative The company still relies primarily on fossil fuel consumption, and as its business continues to expand, the failure to exercise effective controls may further
impact exacerbate the adverse effects of climate change on the environment and human health.
Risks Climate change is posing both physical and transition risks. More frequent extreme weather events in the future, along with increasingly stringent policy standards,
may lead to rising costs and operational disruptions.
Opportunity Advancing climate transition can further enhance climate resilience, reduce operational costs, and be more attractive in the sustainable consumption market.
Innovation Driven
Positive Through continuous technological innovation, process optimization, and the development in the application fields, the company owns multiple core patented
Impact technologies and has been leading in the product segment market.
Negative Absence of innovation or effective protection of intellectual property right may hinder business development or the rights of stakeholders, and could even impede
impact the overall technological progress of the industry.
Risks The process of technological innovation may lag behind that of its peers, resulting in resource wastage and potentially diminishing the company's competitive
advantage.
Opportunity Continuously enhancing the company's competitiveness and leadership in the industry, along with technology innovation driven by market demand, helps the
company respond more flexibly to consumption market trends and improve market performance.
Product and Service Safety and Quality
Positive Through strict quality control, the company has continuously provided safe and reliable products and services, winning wide recognition from major customers
Impact both at home and abroad.
Negative If product quality management is neglected and major quality and safety problems occur, it will do harm to downstream customers and consumers.
impact
Risks An increase in the product non-conformity rate may, on the one hand, lead to a waste of resources; on the other hand, it may reduce customers' experience of using
the product and affect the health and safety of consumers.
Opportunity The company will further improve product quality and safety, expand high value-added products, enhance its own profitability, and provide high-quality products
and services for the industry.
Step 3: Assess and Establish
High
the Materiality of ESG Topics
Double Materiality Matrix for Shengda Bio-Pharm in 2025
To a s s e s s m a t e r i a l i t y o f t h e i m p a c t , a n o n l i n e
questionnaire was developed for 19 topics along with
their (actual/potential) positive and negative impacts.
Internal and external stakeholders were invited to rate Social contribution
on each topic based on two dimensions: "severity of
Product and Service Safety and Quality
impact" (scope, scale, irreversibility) and "likelihood of
Innovation Driven
occurrence." Questionnaires covered five stakeholder
groups: board members, management, employees,
customers, and suppliers. Based on the feedback and
calculation formulas, the impact materiality assessment
results for each topic were derived.
Employee
Cyclic Economy
For financial materiality assessment, a workshop
Pollutant Discharge
with internal stakeholders was convened to evaluate
the (actual/potential) risks and (actual/potential) Water Resource Harness
Impact Materiality
opportunities across 19 topics based on two dimensions: Waste Disposal
" d eg re e o f f i n a n c i a l i m pa ct " a n d " l i ke l i h o o d o f Energy Leveraging
occurrence". The assessment involved board members
Supply Chain Safet
and key department heads and the financial materiality Anti-unfair Competition
assessment results for each topic were consolidated Due Diligence Environment Compliance
finally. Management
Stakeholder
Rural Revitalization Data Security and Customer Privacy Protection
Communication
Response to Climate Change
Step 4: Deliberation and Confirmation
of Materiality Assessment Results
Based on the assessment results, the final materiality Ecosystem and Biodiversity
matrix is shown in the figure below, in which "Innovation- Conservation
Driven" and "Product and Service Safety and Quality"
have double materiality— both financial materiality and
Anti-commercial Bribery
impact materiality.
and Anti-corruption
Low Financial Materiality
High
Sustainability Management
The company will conduct annual regular reviews for
Topic Pillar Impact Materiality Financial Materiality
materiality assessments, and update and improve
the double materiality assessment methodology and
Response to Climate Change
process mechanisms based on the latest regulations and
Pollutant Discharge standards, so as to respond more precisely to stakeholder
demands and continuously enhance ESG management
Waste Disposal effectiveness.
Ecosystem and Biodiversity Conservation
Environmental
Environment Compliance Management
Energy Utilization
Sustainability
Water Resource Harness
Strategy
Cyclic Economy With the successive introduction of sustainability-related
laws, regulations and guidelines both at home and abroad,
Rural Revitalization
enterprises have been presented with opportunities while
also facing more stringent requirements in terms of ESG
Social Contribution
and sustainability. In recent years, Shengda Bio-Pharm
Innovation Driven and its subsidiaries have successively received ESG-related
investigations and reviews from overseas customers. It
Scientific and Technical Ethics NA NA responded proactively through improvement and refining
in the areas of its deficiency, and focused on enhancing its
Supply Chain Safety Social performance in sustainability. Against this backdrop and
based on its own business characteristics, ESG governance
Equal Treatment for Small-Medium Sized Enterprise NA NA structure, the company established a core value
featuring customer in the first place, people-orientation,
Product and Service Safety and Quality
professionalism and mutual benefits. It has, based upon
the concerns of its stakeholders, including regulators,
Data Security and Customer Privacy Protection
domestic and foreign customers as well as partners,
Employee formulated a preliminary "HEALTH" sustainability strategy
with production of high-quality health products as a
Due Diligence health guardian to benefit the world in a sustainable
manner as its mission. The strategy covers six strategic
Stakeholder Communication pillars, namely, health and safety, environmental
Sustainability Related
Governance protection, enterprise and Innovation, people-orientation,
Anti-commercial Bribery and Anti-corruption responsible supply chain and business ethics, as well as
Anti-unfair Competition
efforts and practices.
The "HEALTH" Sustainability Strategy of Shengda Bio-Pharm
Health guardian: Let high-quality health products benefit the world in a sustainable manner
Mission
H E A L T H
Strategic Pillar
Health Emission & Advancement& Labor rights & Traceability & Honesty &
&Safety Environment Innovation Well-being Transparency Ethics
Promote enterprise
Practice green and low-
Provide safe and reliable progress with Uphold the people-oriented Build a fully traceable Abide by the bottom line
Strategic Goal
carbon development to
health products to professionalism and original aspiration, respect and responsible supply of integrity and morality,
promote harmonious
customers worldwide enterprise to enable and safeguard the value of chain, and create and win the trust of
coexistence between
by following the most innovative achievements every employee, and jointly sustainable value stakeholders through
operations and the
stringent standards. to benefit the public in create a better life. together with partners. solid governance.
natural environment.
an equitable manner.
Product and Service Safety
Response to Climate Change Innovative Driven Employee Supply Chain Safety Due Diligence
and Quality
Anti-commercial Bribery and
Stakeholder Communication Pollutant Discharge Circular Economy Social Contribution Due Diligence
Anti-corruption
Waste Disposal Social Contribution Rural Revitalization Stakeholder Communication Anti-unfair Competition
Topic Response
Environment Compliance
Stakeholder Communication Stakeholder Communication Stakeholder Communication
Management
Energy Leveraging
Water Resource Harness
Stakeholder Communication
Currently, the company's ESG activities have completed their stage-wise transformation from "0" to "1" and are now at the critical stage of shift from "1" to "N". Based on the six strategic
pillars, the company is systematically configuring specific action plans and a scientific quantitative metrics system to ensure that strategic goals are decomposable and executable. By
following the policy of "benchmarking against top-tier standards and pursuing continuous improvement," the company will persistently and deeply integrate the ESG requirements
into the entire process of R&D, production, and management. Through dynamic monitoring and targeted measures, it will continuously enhance the ESG governance efficiency and risk
management capabilities to pave a good way for its sustainable, high-quality development and enduring business success.
Green Development
Response to Climatic Change Governance
Climate change is not only having a profound impact on the human living environment The company has recognized profoundly the significant impact of climate change on its
and the development of the global economy and society, but also reshaping the business strategic planning and business operations. It has integrated climate change governance
environment and operational models of enterprises. Based on compliance disclosure functions into its ESG governance structure, clearly defining the responsibilities of the BOD
recommendations, Shengda Bio-Pharm is exploring a way to address climate change and management to establish a top-down management system. Within this framework, the
across four key areas: governance, strategy, risk management, and metrics targets. By BOD and the strategy commission are responsible for decision-making oversight and top-
analyzing and identifying climate change-related risks and opportunities, the company level design to steer the overall strategic direction. In the meantime, relevant departments
is developing response measures tailored to its own business model, thereby enhancing such as those for production management and HSE management are collaboratively
climate resilience across its operations and value chain. working on energy conservation, consumption reduction, and carbon emission control, so
as to shift progressively greenhouse gas emission reduction from a "compliance cost" to a
"green competitiveness".
Level Organizational Structure Main Responsibility
Decision-making level Exercise top-level oversight over the identification, assessment and management of risks and opportunities related to climate change
Deliberate on and approve the climate strategy, pathways, metrics targets, as well as their special budgets and resource allocation
Integrate ESG factors, including climate change, into major corporate decisions such as overall strategic planning, business models,
capital expenditure, and acquisition and divestiture plans
BOD
Gradually incorporate climate performance into the performance assessment of management level
Assess and manage the impacts, risks and opportunities associated with climate change
Strategy Formulate medium and long-term strategic plans for the company to address climate change
Commission Track and supervise the implementation progress of carbon reduction pathways and key indicator targets
Provide advice on climate strategy and decision-making support to the BOD
Management level Formulate specific emission reduction pathways and annual action plans
Sustainability Coordinate cross-departmental resources and promote the implementation of climate goals
Leadership Team Supervise the completion of climate-related KPIs
Review the external climate information disclosure
Implement specific climate action and emission reduction measures
Execution level
Collect, compile and analyze carbon emission data
Climate Change
Identify and assess climate risks at the operational level
Response Team
Prepare climate-related reports/report chapters
Organize climate-related training and capacity buildings
Green Development
Strategy
In 2025, the company conducted a preliminary identification and assessment of climate-related risks and opportunities by taking into account internal and external factors such as
regulatory policies, market conditions, its own industry characteristics, and operational models. It also analyzed their specific impacts to formulate corresponding response measures.
The company subsequently established high and low climate emission scenarios as per the disclosure recommendations of Shanghai Stock Exchange, as well as data models and industry
research from the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC). By thoroughly analyzing the risks and opportunities brought about by
climate factors under each scenario, the company comprehensively evaluated its climate resilience and has progressively improved its climate response mechanisms.
Analysis and Response to Major Climate-Related Risks
Risk Type Detailed Indications Impact Analysis Impact Scope Impact Cycle Counter-measures
Physical Risks
• Establish a diversified raw material procurement
Frequent occurrences • Supply outage due to disasters in the raw Upstream of
network
material production areas value chain
of extreme weather
• Formulate contingency plan for typhoon and flood
Acute Risk
events such as • Production facilities damage and outage. Corporate
Short-term prevention and strengthen drills.
typhoons, floods, operation
droughts and high • Logistics and transportation delay
• Strengthen and upgrade the adaptability of
Downstream of
temperatures • Damage to inventory products buildings, equipment and facilities to extreme
value chain
weather.
Upstream of
• Increased energy consumption of refrigeration • Optimize the energy efficiency of each
value chain manufacturing base, and systematically plan and
equipment in the production workshop
Average temperature replace energy-saving equipment.
Corporate Medium-and
Chronic risk rise and precipitation • Affected stability of power supply in some
operation long term
pattern change regions • Continue to track climate change risks at operation
Downstream of sites and optimize the layout of manufacturing
• Risk of increased water pressure in some areas.
value chain bases and warehouses.
Transformation Risks
Climate-related • Investment in energy conservation, talent • Establish a carbon management system and
development, carbon sink prices and other promote the process of carbon neutrality.
regulations
Policy and factors lead to increased operational and Short-and
regulatory
and disclosure Corporate
medium • Improve energy efficiency and the proportion of
requirements are compliance costs. operation renewable energy used
risks term
becoming increasingly
• Improper information disclosure leads to • Strengthen the construction of internal capabilities
stringent. reputational risks. and introduce external expert resources.
Risk Type Detailed Indications Impact Analysis Impact Scope Impact Cycle Counter-measures
Upstream of
• Increased costs for product research and
value chain • Invest in the research and development of energy-
Green Product development as well as certification saving and low-carbon technologies, and improve
Short-and
Certification, Carbon Corporate
Footprint Labeling
• The competitiveness of high-carbon products
operation
medium the management of product carbon footprints.
has declined. term
Requirements • Increase investment in research and development,
Downstream of
• Higher market access thresholds
value chain
and enhance incentives for innovation.
Market risks
Upstream of
• Need to respond to customers' carbon
value chain • Establish a carbon management system for the
Downstream management requirements supply chain
Short-and
customers require Corporate
suppliers to reduce
• Failure to meet the standards may result in
operation
medium • Promote suppliers to reduce emissions
losing orders. term
emissions.
Downstream of • Participate in the industry's green supply chain
• Increased costs in supply chain synergy
value chain
initiative.
Replacement • The existing production line is facing • Continue to research and develop green process
retirement. technologies
of low-carbon
Technical
technologies such
• Considerable demand for investment in Corporate
Medium- • Gradually revamp the production equipment
as clean production and long
risks
technologies and
technological transformation. operation
term • Cooperate with scientific institutions for
innovation
green manufacturing • Reduced production capacity during the
processes. technological transition period • Apply for a green technology patent
Negative feedback Upstream of
from stakeholders value chain • Communicate progress in climate change
regarding the • Failure to promptly communicate the response through information disclosure and ESG
Reputational enterprise's progress in addressing climate Corporate ratings.
company's failure to Long-term
risk change to stakeholders has resulted in negative operation
respond to climate
feedback and damaged goodwill. • Keep the communication channels with
change issues in a Downstream of stakeholders open and conduct regular dialogues.
timely manner value chain
Green Development
Analysis and Responses to Major Climate-Related Opportunities
Opportunity Type Detailed Indications Impact Analysis Impact Scope Impact Cycle Counter-measures
Corporate • Develop green products such as safe,
Green products have • Explore new markets and enhance brand operation
competitiveness. efficient and naturally fermented foods.
a premium space and Medium and
Green products the downstream
enjoy high market long-term • Explore the use of biodegradable packaging
• Satisfy customers' green demands and increase
of the value
recognition. sales revenue
chain • Obtain green product certification
Promote the
application of rooftop
• Reduce long-term electricity costs • Invest in and construct rooftop photovoltaic
Application Short and power stations and energy storage facilities
of renewable
photovoltaic systems, • Enhance energy autonomy Corporate
medium
distributed wind operation • Procure green power certificate
energy
power, and other • Reduce carbon emissions and promote the term
process of carbon neutrality. • Sign a Power Purchase Agreement (PPA)
related applications.
Upstream of • Establish a supply chain carbon
value chain management platform
Build a climate- • Reduce the risk of supply chain outage
Medium-
Diversified supply resilient and Corporate • Empower and promote suppliers to reduce
• Improve business continuity
operation
and long
emissions
chain diversified supply
term
chain • Enhance competitive advantages
Downstream of • Implement responsible procurement
value chain standards
Impact, Risk and Opportunity Management Indicators and Targets
The company has gradually integrated low-carbon development into its business The company is systematically sorting out various emission sources, continuously
management and operational development. At the current stage, various industrial sectors improving data collection and management mechanisms, and planning to carry out
have achieved effective arrangements for energy conservation and carbon reduction in systematic and comprehensive greenhouse gas inventory work to improve the accuracy
strategic businesses and key projects, and have actively carried out a series of pilot and and traceability of data. On the premise of continuously improving the data foundation,
promotion initiatives, achieving significant results in the green and low-carbon transition. the company will scientifically carry out carbon target setting and carbon reduction path
For details, refer to the "Energy Utilization" section. planning, clarify phased implementation plans and key measures, steadily promote energy
conservation, emission reduction, and low-carbon transformation, and gradually move
In the meantime, the company has conducted full lifecycle carbon footprint accounting towards carbon neutrality goals.
and certification for its main products (including D-Biotin, folic acid, 2% D-Biotin, etc.). In
the future, the company will further clarify and refine various carbon reduction initiatives,
adopt more active and effective measures to practice the concept of green development,
and contribute to the realization of the nation's dual carbon goals.
sewage pipe network and further processed by a centralized wastewater treatment shop.
Pollutant Discharge As for domestic sewage, it is preliminarily treated by sewage treatment system to meet the
standard for centralized management before being discharged into the municipal sewage
As a key pollutant discharger designated by the ecological and environmental authorities, pipe network and sent to the centralized wastewater treatment shop for unified treatment.
Shengda Bio-Pharm and its subsidiaries strictly comply with the Environmental Protection
Law of the People's Republic of China, the Water Pollution Prevention and Control Law With the exception of certain drain provided with online monitoring devices that transmit
of the People's Republic of China, the Air Pollution Prevention and Control Law of the emission data in real time to the ecological and environmental authorities and the
People's Republic of China, the Soil Pollution Prevention and Control Law of the People's company's management platform, the company and its subsidiaries regularly engage
Republic of China, the Environmental Noise Pollution Prevention and Control Law of the qualified third parties each year to perform test at process wastewater and rainwater
People's Republic of China, and other relevant regulations. The company takes compliance drains. The wastewater discharge proves consistently up to standard, with effluent quality
pollutant discharge as a fundamental requirement for its production operations and conforming to the limits stipulated in the Integrated Wastewater Discharge Standard
ensures that all permits related to pollutant discharge are promptly updated and remain (GB8978-1996), the Indirect Discharge Standards for Nitrogen and Phosphorus Pollutants
valid and compliant. Internally, the company has established regulations, such as the in Industrial Wastewater (DB33/2013), the Discharge Standard of Process Water Pollutants
Regulation for Wastewater Management, the Regulation for Exhaust Management, the for Pharmaceutical Industry of Chemical Synthesis Products Category(GB21904-2008),
Regulation for Noise Management, the Regulation for Environmental Protection Facilities and other relevant regulations. In the meantime, the company has completed an anti-
Management, and the Regulation for Leak Prevention Management etc. Each subsidiary seepage renovation project in key areas (tank farm and loading/unloading areas) of the
has also developed relevant procedural documents to continuously strengthen their Shengda Bio-Pharm, and has installed monitoring wells to conduct annual self-monitoring
emission monitoring and control. While ensuring the proper treatment and compliance of soil and groundwater to effectively safeguard the environmental safety of soil and
discharge of various pollutants, the company is committed to pollution source reduction groundwater.
and process control.
Based on its stable and compliance wastewater drainage, the company has continuously
Wastewater Management improved its wastewater treatment efficiency and reduced the concentrations of drainage
by optimizing treatment processes and enhancing treatment facilities. Based on the above,
The wastewater generated by the company and its subsidiaries primarily consists of the company has put in place the following measures: First, it systematically optimized the
process wastewater, cleaning wastewater, maintenance wastewater, lab wastewater, wastewater treatment management and control system to improve the efficiency of solid-
cooling wastewater, initial rainwater, and domestic sewage. The company strictly follows liquid separation and sedimentation as well as their treatment. Secondly, the company
a policy of split flow for rainwater and sewage, as well as clean water and sewage. Each kept on upgrading its wastewater treatment processes to effectively reduce the levels of
production area is provided with the necessary collection pipe networks for production pollutant and related indicators in the wastewater.
wastewater, domestic sewage, or rainwater, with measures fully in place to prevent
potential negative impacts on soil and groundwater from production wastewater leakage.
For process wastewater, the wastewater generated during the production processes of the Wastewater Drainage in 2025
company and its subsidiaries mainly includes folic acid wastewater, D-Biotin wastewater,
Shengda Bio-Pharm Anhui Shengda
miconazole nitrate wastewater, and nisin wastewater. The main characteristic pollutants
include COD (Chemical Oxygen Demand), ammonia nitrogen, total phosphorus, and total
nitrogen. For treatment, the company and its subsidiaries collect various types of high-
concentration wastewater at the workshop, where it undergoes pre-treatment before
being combined with other low-concentration wastewater in a collection tank. The Tongliao Shengda Silver-Elephant (Including Yitao Food)
combined wastewater is then sent via boost pumps and exposed pipelines to the on-site
wastewater treatment shop, where it undergoes advanced and effective treatment using
physicochemical and/or biochemical treatment processes. After meeting the standards for 896,171 ton 435,595 ton
discharge into the municipal pipe network, the treated wastewater is sent to the municipal
Green Development
Where the compliance drainage of major characteristic pollutants in process wastewater is shown in the following table:
Company Description Main Characteristic Pollutants Total Drainage (t) Certified Total Drainage (t/y) Drainage beyond limits
COD COD：54.22 COD：114
Shengda Bio-Pharm Ammonia nitrogen Ammonia nitrogen: 1.268 Ammonia nitrogen: 7.98 None
Total phosphorus Total phosphorus: 0.179 Total phosphorus:/
COD COD：6.308
COD：131.09
Anhui Shengda Ammonia nitrogen Ammonia nitrogen: 0.111 None
Ammonia nitrogen: 6.93
Total phosphorus Total phosphorus: 0.004
COD COD：68.664 COD：753.97
Tongliao Shengda None
Ammonia nitrogen Ammonia nitrogen: 0.828 Ammonia nitrogen: 50.26
Silver-Elephant COD COD：88.46 COD：239.6
None
(Including Yitao Food) Ammonia nitrogen Ammonia nitrogen: 1.107 Ammonia nitrogen: 22.35
Exhaust Management
At the project EIA stage, the company comprehensively identified regular and fugitive limits stipulated in the Comprehensive Emission Standard of Air Pollutants (GB16297-1996),
emission points for exhausts, and selected efficient and feasible technologies and plants the Emission Standard of Air Pollutants for Pharmaceutical Industry (GB37823-2019), the
for exhaust collection and treatment. The exhaust generated during the production Fugitive Emission Control Standard for Volatile Organic Compounds (GB37822-2019), and
processes of the company and its subsidiaries primarily comes from the volatilization of other relevant regulations.
organic solvents during production and that generated from chemical reactions, including
production exhaust from various workshops, breathing tail gas from storage tank areas, On realization of stable and compliance exhaust emissions, the company aimed to reduce
and exhaust from wastewater treatment. The main characteristic pollutants are VOCs fugitive emissions and achieve centralized exhaust collection and treatment by taking a
(Volatile Organic Compounds), NOx (Nitrogen Oxides), SO2(Sulfur Dioxide), etc. For multiple measures to further reduce exhaust pollutant emission.
treatment, the company and its subsidiaries have adopted a targeted approach involving
quality-based pretreatment and centralized terminal treatment for exhaust management.
The exhaust from each emission source is collected in a sealed manner and sent via
First, it appointed third- Secondly, it has Thirdly, it replaced the
pipelines to the exhaust treatment system, where it undergoes effective treatment through
party organizations to established an internal exhaust scrubber with
combined processes such as filtration, condensation, spray scrubbing, adsorption, and
conduct gas leakage test LDAR (Leak Detection and a new one to retire the
catalytic combustion to varying degrees. Among these, the dust-laden exhaust is effectively
and regularly scan the Repair) system to improve outdated equipment
disposal using a water-membrane deluge approach.
pipeline components the maintenance and and improve exhaust
to identify and remedy replacement of the exhaust treatment efficiency.
With the exception of certain emission outlets equipped with online monitoring devices
promptly the leak-offs lines as well as the exhaust
that transmit emission data in real time to the ecological and environmental authorities
identified to minimize collection and transfer
and the company's management platform, the company and its subsidiaries regularly
leakage and fugitive system to further reduce
engage qualified third parties to conduct testing of organized and fugitive exhaust
emissions. their fugitive emissions.
emissions annually. The emission concentrations of various pollutants comply with the
Exhaust Emission in 2025
Shengda Bio-Pharm Anhui Shengda Tongliao Shengda Silver-Elephant (Including Yitao Food)
Where the compliance emission of major characteristic pollutants in exhaust is shown in the following table:
Company Description Main Characteristic Pollutants Total Emissions(t) Certified Total Drainage (t/y) Emission beyond limits
SO2 SO2: 0.532 SO2: 0.61
NOx NOx: 0.66 NOx: 4.2
Shengda Bio-Pharm None
VOCs VOCs：1.0875 VOCs：11.785
Particulates Particulates: 0 Particulates: 0.855
SO2 SO2: 0.0862 SO2: 0.35
NOx NOx: 0.7462 NOx: 3.78
Anhui Shengda None
VOCs VOCs：0.7146 VOCs：13.392
Particulates Particulates: 0.0260 Particulates: 0.4
SO2 SO2: 54.3442 SO2: 240.08
Tongliao Shengda NOx NOx: 75.133 NOx: 324.83 None
Particulates Particulates: 4.8313 Particulates: 59.11
Silver-Elephant (Including Yitao Food) Particulates Particulates: 0.543 Particulates: 5.926 None
Noise Management
While prioritizing the selection of noise-reducing equipment and strengthening equipment the boundaries of each production facility proved to be within the limits specified in the
maintenance, the company has taken room isolation measures for highly acoustic Emission Standard for Industrial Enterprises Noise at Boundary (GB 12348-2008).
equipment. It has installed soundproof materials inside the isolated structures, and
placed noise barriers at appropriate points within the plant area. These measures are In 2025, Shengda Bio-Pharm and its subsidiaries received no complaints from the local
effective in isolation and control of noise sources and have minimized the impact from residents on its irregular pollutant discharges, and were not subject to any administrative
noise to the greatest extent allowed. During the reporting period, the company and its penalties and/or damages for criminal liability on issues relating to up-to-standard
subsidiaries appointed qualified third parties to conduct noise test, and the noise levels at emission of pollutant.
Green Development
Waste Disposal Hazardous Wastes
Shengda Bio-Pharm strictly complies with the Law of the People's Republic of China on the For hazardous waste (such as waste solvents, waste mineral oil, waste packaging
Prevention and Control of Environmental Pollution from Solid Wastes and other relevant material, wastewater sludge etc.), the company and its subsidiaries have established
laws, regulations, and industry standards. The company has established an internal temporary storage warehouses for hazardous waste as per the Pollution Control Standard
Regulation for Solid Waste Management and all its subsidiaries also established relevant for Hazardous Waste Storage" (GB 18597-2023). The waste is stored by category, form,
procedures of like nature. These regulations were developed for reduction, recycling and and physic-chemical properties, and subject to up-to-standard disposal by qualified
non-hazardous disposition of pollutants, aiming to normalize the classified collection and third parties appointed for the purpose. Additionally, the company has also formulated
storage, outsourced transit, utilization, or disposal of wastes and minimize their negative documented regulations for recording and transfers its hazardous wastes to be consistent
impact on the environment. with the Technical Guidelines for the Preparation of Hazardous Waste Management Plans
and Records (HJ 1259-2022).
Non-hazardous Waste While ensuring the compliance disposal of hazardous waste, the company also endeavored
to advance its emission reductions. By addition of new plate and frame filter presses and
For general industrial solid waste (such as fly ash, gypsum, used diatomite, etc.), the
adopting a dewatering process, the company reduced effectively the moisture content
company and its subsidiaries usually appoint qualified third parties to enable their
in sludge to minimize its sludge generation. The company also intensified its efforts
comprehensive utilization and harmless disposition. Solid wastes with recycling value
for routine maintenance management of equipment to reduce their rate of failure and
(e.g., spent packaging materials) is collected and periodically sold to waste recycling
replacement frequency, minimize the consumption of solvents and lube oil and promote
entities. Domestic waste is uniformly cleared and treated by the local municipal sanitation
control and safety and environmental protection at the source.
department. The company will continue to reduce the generation of non-hazardous waste
by tightening requirements for fuel consumption, optimizing production processes, and
other measures to minimize the generation of non-hazardous wastes.
Waste Discharge in 2025
Total Yield of Hazardous Waste
Shengda Bio-Pharm Anhui Shengda Tongliao Shengda Silver-Elephant (Including Yitao Food)
Total Yield of Non-hazardous Waste
Shengda Bio-Pharm Anhui Shengda Tongliao Shengda Silver-Elephant (Including Yitao Food)
Environment Compliance Management
Shengda Bio-Pharm has consistently integrated the fulfillment of environmental compliance responsibilities into the
core principles of its corporate operations and established a comprehensive, multi-tiered environmental compliance
management system. The company strictly complies with the Environmental Protection Law of the People's Republic of
China, the Law of the People's Republic of China on Environmental Impact Assessment, the Management Procedure of
Contingency Plan for Unexpected Incidents, the Management Procedure of Contingency Plan for Unexpected Incidents in
Enterprises and Institutions (Trial) and other relevant laws and regulations. In alignment with its actual production and
operations, the company has internally developed and implemented management procedures, such as the Responsibility
System for Environmental Protection, the Procedure of Potential Hazards Management for Environmental Protection
and the Contingency Plan for Environmental Emergency etc. Each subsidiary has also formulated relevant procedures of
management to conduct "full-process and refined" environmental management. During the reporting period, Shengda
Bio-Pharm and its subsidiaries were certified to comply with the ISO 14001:2015 environmental management system, thus
building a systematic and standardized environmental management and emergency response mechanism, which provides
solid guarantee for the company's stable operations and sustainability.
Allocation of Responsibility for Environmental Protection
The company fulfilled in a down-to-earth manner its primary responsibility for environmental governance to ensure that
environmental responsibilities are delegated level by level and assigned to specific positions and individuals. The chairman
is the first person responsible for the company's environmental protection, taking overall responsibility for the company's
environmental affairs. The HSE Dept. acts as the body for daily management of the company's environmental activities
and is responsible for the formulation and implementation of environmental management regulations, environmental
risk assessments, supervision, inspections, and related work coordination. Additionally, the company has also established
an environmental protection leading team headed by the general manager, with members comprising heads of various
departments. The team is responsible for coordinating and advancing environmental protection initiatives, addressing
key and challenging issues in environmental management, and ensuring the effective implementation of environmental
management measures and the satisfactory execution of environmental protection activities.
Environmental Factor Assessment
The company has developed and implemented the Procedure for Environmental Factor Identification and Assessment,
and organizes systematic identification and evaluation of environmental factors in all departments of the company
on an annual basis. It has identified the potential environmental impacts arising from production and operations, and
confirmed the same the heads of relevant departments to pinpoint key environmental factors. For the identified high-
risk environmental factors, the company has provided tiered control and targeted management and established a closed-
loop management system of "identification-evaluation-control" to mitigate the environmental risks at the source and
continuously improve its environmental performance.
Green Development
Remedy of Potential Environmental Hazards
Based upon the Procedure for Environmental Protection Related Hazard Control and The Emergent Response Organizational Structure in Shengda Bio-Pharm
Management, the company conducted environmental hazard inspections in key areas and
facilities, including production equipment areas, raw material tank farm, hazardous solid
waste warehouses, environmental protection treatment facilities, rainwater pipe networks General Director
and emergency response systems, various pipelines within the plant, and groundwater
and soil monitoring. The company has applied a dual mechanism consisting of "quarterly
company-level inspections and monthly departmental-level inspections." Specifically,
Vice General Director
company leaders and designated responsible leaders organize environmental hazard
inspections at least once per quarter, while workshops and departments organize such
inspections at least once per month.
For the identified hazards, the company strictly implements a process of "registration and
filing, responsibility assignment, and rectification within the specified timeframe" for the
Environmental Command
Emergent Fire Prevention
same. It requires that hazards be documented as per relevant regulations, establish a
Emergent Rescue Team
Material Support Team
On-site Security Team
Expertise Technology
Communication and
Medical Aid Team
hazard investigation and rectification log, and, based on the division of responsibilities,
Contact Team
assign responsible personnel, formulate measures for remedy and set deadlines for
Team
Team
Team
their rectification. The company requires the department where the hazard originated
to organize relevant technical personnel to conduct a root cause analysis, identify the
underlying reasons, and implement targeted remedy to ensure the proposed remedy is
in place. Additionally, on completion of any hazard remedy, relevant departments are
required to apply in activities the lessons learned, conduct further inspections for similar
hazards, coordinate the efforts for remedy and finalize relevant documents for closed-loop
management to ensure the remedy is complete and the compliance risks are at control.
To enhance its capability in responding to unexpected environmental incidents, the
Consolidate the Emergent Response Line company conducts, on annual basis, a comprehensive emergency drill and two drills
The company has continued its efforts to improve its environmental emergent specific for environmental protection roles. These drills simulate scenarios such as
management system, aiming to strengthen its emergent preparation and drills, and hazardous waste spill, soil pollution. By following the environmental contingency plan, the
effectively build a solid environmental safety and emergent response line. To be consistent participants strictly implements relevant procedures governing incident reporting, on-site
with relevant laws, regulations, and policies, the company devises reasonably its warning and isolation, wearing protective equipment, confined space rescue and emergent
procedures for incident reporting, response, and disposition to define the composition disposition and medical treatment of the injured. These drills enable the emergency
of the emergency response team and the allocation of material. It has established a responders to become more familiar with the response procedure and identify promptly
systematic contingency plan (including comprehensive and specific contingency plans). any deficiency. For the identified areas of concern, the company will organize targeted
A systematic review and updating of the environmental contingency plan are conducted training, improve relevant actions to be taken on emergency and revise the contingency
every three years, and it is submitted to the local environmental protection authorities for plan as necessary before its re-filing.
filing as required. To ensure any environmental emergency is prevented, responded and
disposed of orderly, the company has established an environmental emergent response
organization. Each of the team thereunder functions properly and collaboratively based
upon their work split
Promote Prevention of Accidents through Drills: Emergency Drill for Hazardous Chemicals Leakage and Fire Accidents
To effectively respond to emergency due to hazardous chemical leakage and fire
accidents, and ensure the safety of employees' lives, on October 23, 2025, the
company organized a unified emergency drill for hazardous chemical leakage and
fire accidents. All employees for Grignard in the D-Biotin workshop, EHS office,
equipment maintenance workshop and other relevant departments participated
in the drill. The drill plan was issued to all positions concerned one week later
following its study, devising and endorsement. The participants studied and
were trained carefully, and strictly implemented the plan. During the drill, each
participating organization organized their activities carefully, responded quickly,
and coped with the situation in a standardized manner. The on-site simulation was
close to reality and focused on testing the evacuation of personnel, self-protection,
use of emergency materials and equipment, and collaborative capabilities. This
has improved further the risk identification and emergency response of employees,
enhanced the overall coordination ability and emergency response of the company
on emergency.
In 2025
NO NO
There were
major environmental violations or incidents any environmental compliance issues which subjected them
occurred in Shengda Bio-Pharm and its subsidiaries to any administrative penalties or criminal liabilities
The total investment in environmental environmental protection related with a total of
protection was trainings were organized
Energy Utilization
Efficient energy utilization is crucial for enterprises to reduce resource consumption and promote sustainability. Shengda Bio-Pharm strictly complies with the Energy Conservation
Law of the People's Republic of China and other relevant laws and regulations, continuously strengthens its normalized consumption of energy as per Energy Conservation and Carbon
Reduction Management Policy, and has developed and carried out such internal management regulations as Regulations for Energy Management and the Regulations for Energy Metering
Management. During the reporting period, Shengda Bio-Pharm was certified to comply with ISO 50001:2018 energy management system. Its subsidiaries have also simultaneously
established and implemented relevant energy management procedures to continuously enhance the standardization and systematization of their energy management.
Green Development
Energy Audit and Measurement
Schedule of Energy Conservation Measures
The company continues to improve its basis for energy Dimension Measures in 2025
management to achieve full coverage of measuring instruments
for key energy-consuming equipment across its subsidiaries
Shengda Bio-Pharm completed its energy efficiency upgrade for its power supply
and various workshops. Through an energy online monitoring
and distribution system by replacing all S9 series transformers with S15 series, Class
platform, it conducts real-time data collection and monitoring
I energy-efficient products. This achieved a "three-level leap" in energy efficiency
of water, electricity, and steam and supports accurate monthly
ratings, significantly reducing transformer energy consumption.
energy cost accounting and anomaly analysis, hence has
improved continuously its refined energy management. Equipment
Tongliao Shengda carried out a special rectification campaign for key energy-
renewal
consuming equipment by retiring and replacing six high-energy-consumption electro-
Besides, the company conducts internal audits of the
mechanic devices to progressively eliminate equipment energy efficiency bottlenecks.
construction and operation of the energy management system
annually, requiring relevant responsible departments to rectify
non-conformities within a specified timeframe to ensure the The Silver-Elephant took energy-saving measures across its key product lines to
adequacy and effectiveness of energy management. In the continuously enhance energy utilization efficiency:
meantime, its subsidiary, Silver-Elephant, as a key energy-
In the nisin product line, the nisin acidification process was optimized, and the steam
consumer in Zhejiang Province in 2025, strictly obeyed the
consumption was further reduced compared to the original process, saving about 4.2
governmental requirements for energy statistics and review.
tons of steam per batch per tank.
It submits energy data such as the Enterprise Energy Revenue Process
and Expenditure Balance Sheet, Enterprise Energy Purchase optimization
For the polylysine product line, the polylysine production process was improved by
Cost Sheet, and Energy Consumption Sheet for Outputs
omitting the use of steam to further reduce steam consumption.
monthly through the Zhejiang Provincial Comprehensive Energy
Utilization Status Management System. The company submits its
Unit Energy Consumption of Major Energy-Consuming Products The Silver-Elephant achieved the thermal energy recycling from condensed water
and Comprehensive Energy Consumption and Enterprise Water generated during the process. This has realized the waste heat recycling and further
Consumption Status Sheet annually. enhanced the overall energy utilization.
Yitao Food has also taken a number of energy-saving measures by targeting key areas
for energy-consumption:
Energy Efficiency Enhancement
In the drying production line, all atomizers were provided with waste heat recovery
units for exhaust and steam condensate, enabling cascaded utilization of waste
The company and its subsidiaries have continued to promote Recycling
heat.
their energy efficiency, systematically carry out energy-saving
renovations in such aspects as equipment renewal, process For the air conditioning system, rotary dehumidifier waste heat recovery devices
optimization, recycling etc. to solidify its foundation for green were installed to recover and reuse the waste heat generated during the AC system
manufacturing. operation to reduce reheating energy consumption.
Clean Energy Utilization
The company actively promotes the utilization of clean energy, explores the use of photovoltaic power generation facilities to increase the proportion of clean energy application, and has
continuously optimized its energy structure. The company has installed solar streetlights and plans to provide the part of existing rooftop space at its plant to qualified third parties for the
installation of photovoltaic power stations. This project is currently under negotiation. In the meantime, the rooftop of the warehouse at its subsidiary, Silver-Elephant, was provided with
total of 30,000 green certificates in 2025.
Empower through Green Initiatives：Promote Energy Conservation and Emission Reduction and Guide Behavior Changes
The company organizes annual training and promotional activities on the theme of energy conservation and emission reduction, aiming to provide systematic explanations
and case studies on energy-saving techniques in daily office and living scenarios and continuously enhance employees' awareness of energy conservation and environmental
protection. The training covers specific measures such as rational operation of office equipment, minimizing standby power consumption, and optimizing the use of air
conditioning and lighting to encourage the employees to start with minor things and embrace a green and low-carbon approach to work and life. In the meantime, the
company also, through means including internal publicity, energy-saving initiatives and behavior guidance etc., fostered a positive atmosphere of full participation to integrate
the concept of energy conservation and emission reduction into daily management and employee behaviour and establish in a stepwise manner a long-term, normalized
mechanism for green development.
Water Resource Harness
Shengda Bio-Pharm strictly adheres to relevant laws and regulations such as the Water Law of the People's Republic of China, the Regulations on Water Conservation, and the Regulations
on Urban Water Conservation Management to promote sustainably carry-out of its water-saving measures.
The company reuses the process water in its production process to achieve recycling of the same, which can save about 30,000 tons of water annually; In the meantime, the surplus purified
water generated by the purified water station is collected in the intermediate water tank for recycling in the CCW system, which has improved the efficiency of water resource harness and is
expected to further save water every year.
In the production line, the corporate subsidiary, i.e., Silver-Elephant, recycled and reused the cooling water as equipment cleaning water; In the meantime, the cleaning management was
optimized and to reduce reasonably the frequency of equipment cleaning, which may save about 3,600 tons of water per year; Besides, Silver-Elephant has endeavoured to recycle the
process water and recycle the water used in other sections to further reduce the amount of fresh water required.
Green Development
Circular Economy
Shengda Bio-Pharm actively practices the circular economy concept, and its subsidiary Tongliao Shengda continuously
promotes the enhancement of the value of fermented by-products. By utilizing fermented by-products in the development
of products such as protein feed and microbial agents, the transformation of by-products from "waste" to "resource
utilization" is achieved, and the comprehensive utilization level of resources and added value of products are continuously
improved——efforts are made to build a green, low-carbon, efficient and circular industrial development model to provide
solid support for sustainability of enterprises and industrial transformation and upgrading.
Ecological System and Eco-diversity
Protection
The company follows the principle of source avoidance and intensified process management to effectively protect
the ecosystem integrity and biodiversity. It commits to minimize its interference and damage to ecosystems during its
production and operational activities. For its project site selection, Shengda Bio-Pharm strictly complies with national
and local laws and regulations such as the Environmental Impact Assessment Law of the People's Republic of China and
the Regulations on the Environmental Protection Management of Projects to fully meet the requirements for delineated
boundaries of ecological conservation red lines and environmental control in the proposed location. The company
prioritizes its project location in industrial agglomeration areas to preclude any of its constructing or operation in
important areas such as nature reserves, scenic spots, potable water source protection zone and wildlife protection areas.
It endeavored to refrain from locating its projects near important ecological function zones or ecologically sensitive and
fragile areas to avoid any ecological damage at the source. During the project construction and operation, the company's
pollution prevention facilities for exhaust, wastewater, and other pollutants are built and put into operation in-phase
with the main works. These facilities are operated stably and pollutants are treated according to legal requirements, and
pollutants are discharged strictly by using the means stated in the permit for pollutant discharge to ensure that ecological
impacts are mitigated throughout the process.
In the reporting period,
Shengda Bio-Pharm, its subsidiaries, and their production facilities
have NO operations within the scope of ecological conservation red lines.
Social Responsibility
Employee
Shengda Bio-Pharm strictly complies with the Labor Law of the People's Republic of China, the Labor Contract Law of the People's Republic of China, the Social Insurance Law of the
People's Republic of China, and other relevant laws and regulations. The company consistently adheres to a people-oriented development philosophy, regarding employees as the
core driver of sustainability. It continuously improves the employee rights protection and labor rights management system, ensures compliance employment at the law, and safeguards
earnestly employees' legitimate rights and interests as well as their professional dignity. To this end, the company has established the Labor and Human Rights Management Objectives and
Regulations, which includes seven categories of quantitative indicators covering employee health and safety, working conditions and social dialogue etc. to ensure ongoing monitoring,
evaluation, and improvement. While providing strong guarantee for employee rights and interests, the company stresses highly on attracting, cultivating, and retaining talents. Through
a robust talent acquisition mechanism, a systematic training system, and diversified career development, the company provides employees with extensive growth opportunities and
platforms to realize their value. In the meantime, the company actively fosters a fair, equitable, diverse, and inclusive workplace environment, respects individual differences, encourages
the collaborative development of talents from diverse backgrounds so as to continuously enhance organizational vitality and cohesion, and promote the joint growth and progress of both
the company and its employees.
Labor Right and Interests
Shengda Bio-Pharm strictly prohibits forced labor, child labor, and other violations of labor rights. The company continuously improves its employment management and overtime control
mechanisms, safeguards employees' rights to rest and leave under the law, and protects employees' legitimate rights and interests through democratic management channels such as
trade unions.
The company has established a Management Procedure for Prohibiting Forced Labor, Mental and Physical Abuse and Ensuring Freedom. It explicitly states
Prohibition that the company shall not collect any form of deposit or collateral. It prohibits forcing employees to stay on-site after work, and forbids any form of corporal
of forced punishment, physical contact, mental coercion, or verbal abuse. All employees have the freedom to elect whether to work overtime, and are provided with two
labor forms of compensation for overtime work—compensatory leave or overtime pay—as stipulated to ensure effective protection of employees' basic legitimate rights
and interests.
The company strictly adheres to the State Council's Prohibition of Child Labor Regulations and the Law of the People's Republic of China on the Protection of
Prohibition Minors. It has formulated the Management Procedure for Child Labor and Young Workers to establish comprehensive prohibitive clauses, complaint channels
of child and processing mechanisms for management in the area. Through a systematic seven-step process—including identification and reporting, acceptance and
labor evaluation, investigation and intervention, emergent rescue, case assessment and planning, remedy and long-term follow-up and support—the company has put
in place a structured remedy and support process to effectively safeguard the physical and mental well-being of minors and children.
The company has continuously improved its employee leave management mechanism. While providing legal guarantee for rights to annual leave, marriage leave,
Leave sick leave, bereavement leave, maternity leave etc., the company focuses on its efforts to optimize arrangements for parental leave, paternity leave, nursing leave,
application family reunion leave, and family care leave. For example, employees with their kids under three years of age are entitled to a 10-day parental leave per year;
mechanism employees who are the only child of a parent aged 60 or above are entitled to an additional five days of family care leave per year. These measures prove effective
in assisting employees balance childcare responsibilities, family obligations, and career development.
The company continuously improves its democratic management mechanisms and actively promotes the development of trade union organizations. As
stipulated in the Trade Union Law of the People's Republic of China, the Constitution of the Chinese Trade Unions, the Regulations on the Election of Grassroots
Level Trade Union Organizations and other relevant regulations, the company formally established a trade union and elected its employee representatives
in 2020. It holds regular employee representative conferences annually to gradually refine the communication and consultation mechanisms. Currently, the
Democratic
organizational structure of the Fourth Employee Representative Conference Commission is well-configured and the election of the Trade Union Commission,
management
development
the Fund Audit Commission, and the Female Workers' Commission has concluded successfully. Through the signing of collective agreements, the company has
made equal consultations on issues governing compensation and benefits, working hours, labor protection, and employee concerns to effectively safeguard
employees' rights to information, participation, and supervision, and promote development of harmonious and stable labor relations.
Talents Attraction and Retention
In terms of talent attraction and retention, Shengda Bio-Pharm, taking compliance
employment as a precedent condition, has improved continuously the organizational Walking by the Lakeside to Build Vitality with Every
attractiveness and employee stability through a robust talent retention mechanism
Step — Active Joining in the 2025 Group Walking Event
and a competitive compensation and benefit system. The company has established
a comprehensive Labor and HR Management System and put in place a standardized On November 29, 2025, the company organized the first session of 2025 Group
assessment and screening mechanism. During the recruitment process, a unified workflow Walking Event launched by Shengda Group at Shifeng Lake Park to attract
for job application approval, information publication, resume screening, interview active participation of its employees. The event is launched to keep employees
evaluation, and employment approval has been established to ensure that the entire physically fit and promote their solidarity. It not only enhanced effectively
recruitment process is standardized, compliant, and traceable. Candidates are promptly employees' physical conditions but also promoted cross-departmental
informed of the recruitment progress to safeguard their right to know. communication and the team cohesion through outdoor collective activities. The
event showed the employees are mentally upward. By deeply integration of a
Based on national laws and regulations as well as industry characteristics, the company healthy life style with unity and progress, the event fostered a positive corporate
has established a comprehensive Regulation for Salary Assessment Management. It adopts culture ecosystem, reinforced organizational cohesion, and empowered the high-
a classified salary management model in establishing a salary structure adaptive to job quality development of the company with spiritual drive and cultural vitality.
value, personal ability and performance. The payroll consists of basic salary, performance
bonuses, and various allowances and subsidies. The salary establishment, adjustment,
and payment are carried out in accordance with institutional norms to ensure fairness and
incentive-based compensation.
Apart from a robust social security mechanism (five social insurances and housing fund),
the company also provides various welfare and care program for all employees, including
employee dormitories, meal allowances for work, team building tours, union benefits,
holiday gifts, birthday party activities, etc. Furthermore, for migrant employees, the
company has specially formulated a Procedure for Migrant Talent Welfare Management,
which creates a good working atmosphere for migrant employees by providing free
accommodation, non-local family reunion leave and subsidies to enhance their sense of
belonging and the company's talent attraction and retention stability.
Zhejiang Shengda Group Co., Ltd., the controlling shareholder of the company.
Social Responsibility
Talent Cultivation and Development
Joint Celebration in the Name of Love — Birthday Gatherings Shengda Bio-Pharm pursues full-chain synergy for its talent recruitment, cultivation,
Convey Warmth and Cohesion employment and retention. It focuses on improving the talent reserve and succession
mechanisms to consolidate its talent base for key jobs. It has established a comprehensive
framework that covers full-cycle training and development, multi-channel career
To ensure that every employee truly feels the warmth brought by the "family
advancement, and competitive incentive safeguards. It continues to improve employees'
culture", enhance their sense of belonging and identity, and encourage them to
professional competence and provide additional room for their growth so as to build a
learn how to give back with gratitude (gratitude to family and parents, colleagues,
high-quality, high-performance team of specialized talents.
friends, the company, and the society) and foster a harmonious working and
living environment, the company organizes monthly birthday gatherings for the
birthday employees. During these events, the company presents handwritten
greeting cards and cozy birthday gifts to the birthday employees and their family
members. Employees are encouraged to do something small but meaningful for
their parents on their birthday, take a photo with a caption, and submit it in the
contest organized for the purpose. In the meantime, the company also organizes
employees to participate in public welfare volunteer services and extend their
wishes through dedicated columns, videos, and rolling displays in public areas so
as to create a harmonious and warm working atmosphere.
Splendor of Shengda Bio-Pharm
Basketball Team Shengda Hehe Book Bar
Shengda Greetings on the Spring Festival Shengda GYM
Training empowerment
The company has formulated Regulations for Employee Training Management and established a comprehensive training system covering pre-employment training, on-the-job training,
job transfer training, and qualification training. Through the integration of internal training and external off-the-job training, the company selects instructors with proven professional
experience and outstanding teaching capabilities to provide employees with a systematic, multi-level learning and development platform. The effectiveness of training is evaluated
through written examinations, on-site operational assessments, oral questioning, and other methods as appropriate. Through the above closed-loop training and evaluation system, the
company has improved effectively employees' job competence and standardized operational skills, providing a solid talent base for the company's high-quality development. Based on
the company-wide training system, the company further refines its tiered and categorized talent development framework. Through three distinctive programs—the "Shengrui" Program
(young leader program), the "Shengtu" Program (reserve cadre program), and the "Shengjing" program (newly promoted managers)—the company offers differentiated training and career
development pathways tailored to various groups to continuously strengthening the construction of its talent pipelines.
Principal departmental leader 02
Deputy departmental leader 03
"Shengrui" Program (Young Leader Program) Successor
"Shengtu" Program (Leader Pool Program)
Managers)
Promotion and Development 3rd-tier leader pipeline
The company has established a dual-channel career
Taking Technology as an
development system comprising the P-sequence (including
example (P-sequence)
technical, production, marketing, and functional roles)
and the M-sequence (management roles). Differentiated
promotion paths and evaluation methods are set up based on
New Assistant Intermediate Senior Professorate
Technicians
employees engineer engineer engineer engineer
the characteristics of the two job categories, and transparent
promotion mechanisms and assessment criteria are developed
to provide clear pathways for employee growth and career
development. For example, the company has formulated
the Management Regulations for Technical Personnel Grade New employees Deputy Senior
Assessment, which specifies the standards and qualification
manager executives
(M-sequence)
Management
r e q u i r e m e n t s f o r t e c h n i c a l p e r s o n n e l p r o m ot i o n s .
Comprehensive assessments are conducted based on
Deputy Assistant
dimensions such as technical experience, professional supervisor manager
competence, and work performance to provide a systematic Principal Strategic senior
framework for the promotion of technical personnel.
Supervisor manager executives
Social Responsibility
Incentive Guarantee
To further enhance employee cohesion and the company's competitiveness, and promote the company's long-term, sustainable, and healthy development, Shengda Bio-Pharm
developed the 2024 Employee Stock Ownership Plan for Shengda Bio-Pharm. Under the plan, directors, supervisors, senior management, and other key employees are granted share
incentives totaling no more than 10% of the company's total share capital. A management commission, elected by all shareholders, is responsible for overseeing and managing the
entire stock ownership plan. In 2025, the company advanced the implementation of the employee stock ownership plan, completed non-trade transfers of shares, and concurrently
revised the management rules of the plan to further refine the incentive mechanism and implementation rules, thereby strengthening the stability of the core team and providing long-
term development momentum thereof. Additionally, to encourage the improvement of employees' professional competence and skills, the company has established the Incentives for
Enhancing Employee Professional (Vocational) Qualification, Education, and Skills. This program provides learning incentives, whereby cash rewards will be offered to employees who
were certified to be qualified for their operations, business or other jobs during their employment.
Diversity, Equality and Inclusion
Shengda Bio-Pharm is committed to building a fair, respectful, and inclusive workplace ecosystem. Through diversified cultural platforms and innovative activities, it fosters a healthy and
uplifting organizational atmosphere to make the company a community with shared value and a spiritual home for employees. The company has established a Fair Management Procedure
for Recruitment, Training, Development, and Promotion, which systematically ensures fairness throughout the entire process. Through measures such as open recruitment, accessible
training, fair promotion, and reasonable facilitations, the company guarantees equal and fair development opportunities for all employees.
In the meantime, the company has developed an Anti-Discrimination and Anti-Harassment Management Procedure, explicitly encouraging and supporting all employees to preclude any
discrimination based on race, religion, region, gender, age, language, physical ability, or other factors. Any violations, once discovered, will result in remedial measures such as personal
safety protection, job adjustments, professional psychological counseling, and legal support. The company has established multi-channel complaint and reporting mechanisms, including
a public hotline, physical box for complaints, and a cyber-based "CEO Direct Line", encouraging employees to report various violations openly or anonymously, verbally or in writing. All
concerns and requests will be promptly investigated, properly addressed with the results thereof fed back in a timely manner to form a closed-loop process of "acceptance-investigation-
accountability-feedback" and ensure the effective operation of the oversight mechanism and a zero-tolerance for various violations.
Furthermore, the company keeps on improving its employee care system, focusing on thoughtful measures to support female employees, assist employees in difficulty, and promote
employee physical and mental well-beings so as to enhance their sense of fulfilment and organizational cohesion.
The company stresses on protecting the rights and interests of female employees and follows the principle of equal pay for equal work and equal
development opportunities. It has enhanced its special protections for the pregnancy, childbirth, and nursing periods, and regularly organizes care
activities for female employees, such as spring outings, free physical check-ups, and holiday visits. In May 2025, for the physical and mental health of
its female employees, the company's trade union, in collaboration with the local street-level trade union and the county maternal and child health
Care for Female and family planning service center, organized on-site free physical checkups for all female employees. Besides, it also invited a physician from
Employees Tiantai People's Hospital to deliver a lecture on breast cancer prevention.
The company keeps on caring for the actual needs of employees facing hardship and has
established a support and care mechanism for the purpose. Through measures such as
visits and financial assistance, it provides timely support to help employees ease their living
tension and enhance their confidence in work. In January 2025, the company organized a
care tour before the Spring Festival. The company's senior executives visited employees
Support for in financial difficulty, as well as their relatives, friends, and neighbors, presenting to them
Employees compassionate payments and daily life necessities to show the company's care. A total of
more than 30 households in need were visited.
in Difficulty
While stressing specially on protecting the rights and interests of specific groups, the company is simultaneously advancing the development of a physical
and mental health support system for all employees. Mental health and emotional management are included as key priorities in daily care. Through health
promotion, communication and counseling, and resource support, the company helps employees maintain a positive and stable working state. In 2025,
by focusing on employees' physical and mental health management needs, the company organized a series of activities including health consultations
Physical and and health knowledge lectures to further promote employees' health awareness and self-management capabilities, and foster a warm and supportive
workplace atmosphere.
Mental Health
Support
Feel "Warmth of Shengda's Love on the Double Ninth Festival": A Heart-warming Event for Retired Employees to Visit the Company
On October 28, 2025, Shengda Bio-Pharm sincerely invited its retired employees
to "return home" to participate in the heartwarming event for retired employees,
themed "Warmth of Shengda's Love on the Double Ninth Festival — Joyful Gathering
in This Season." The event celebrated the golden autumn season by bringing
the former retired employees back together. The company invited the veteran
retirees to experience on the spot the corporate industrial upgrades and innovative
achievements, allowing them to directly witness the new development of the
company. Through informal discussions and a park tour, they renewed the profound
friendship within the "Great Shengda Family" and reinforced the continuity of the
corporate culture. This event not only honored the traditional virtue of respecting and
caring for the elderly but also served as a bridge for the spiritual heritage between
new and veteran employees. The valuable experience of the retired employees has
transformed into a source of inspiration for the company's development to further
strengthen the sense of organizational belonging and corporate cohesion.
Social Responsibility
Shengda Bio-Pharm Organized a Care Tour and Outing
Maintain Sound Physical and Mental Health — Shengda
Event for Female Employees on International Women's
Bio-Pharm's Ongoing Health Care Initiatives
Day
On March 8, 2025, International Women's Day, to convey the company's care and In 2025, the company continued to improve its employee care system, focusing
concern, the company offered shopping benefits for its female employees and on safeguarding employees' physical and mental health by organizing a series
organized a one-day tour to Xikou Ancient Town and Fenghua Xuedou Mountain of activities such as health consultations and health knowledge lectures. The
(for voluntary sign-up) at the expense of the company. The event effectively health consultation services covered routine physical checkup, consultations
conveyed the company's care and respect for its female employees, enhanced on common diseases, physiotherapy experiences, mental health support, and
their sense of fulfilment and happiness, and fostered further a warm and health knowledge education etc. A team of professional physicians was specially
harmonious corporate culture. invited to provide one-on-one services on-site. The activities were conducted on a
rotational basis at different work locations as scheduled to ensure broad coverage
and easy access for employees. While safeguarding employee health, these
initiatives effectively conveyed the company's care and were highly appreciated
and positively responded by employees.
To further strengthen the closed-ring management based upon what has been achieved, the company established the Procedure for Employee Satisfaction Management to extensively
gather employee opinions and suggestions. In June 2025, it conducted a satisfaction survey among all employees with a response rate of 97%. The results showed that employees had
generally high satisfaction with the work environment, the company's prospects, and the company's training system, while there was a still room for continuous improvement in the
compensation incentive mechanism and attendance management system based on actual corporate conditions. In response to the feedback, the company will continue to improve the
relevant areas by strengthening daily management, reasonably arranging promotions, and providing support for employees facing difficulties. It will promptly optimize measures to
continuously enhance the organizational cohesion.
Employee Information in 2025
Total number of active employees at the end of the period
Male Female ≤ 30 years old 30-50 years old
Structure of active Structure of active
employees at the end of employees at the end of
the period the period
(By gender) ≥ 50 years old (By age)
Financial Doctorate's degree Master's degree
Technical
Administration Bachelor's degree
Structure of active Structure of active
employees at the end
of the period
employees at the end
of the period 254 Person
(By discipline (By education
composition) background)
Sales Senior high
Production
school and below College degree
Employee social insurance and housing Incidents resulting in labor lawsuits, labor
Rate of labor contract conclusion fund coverage arbitration, and other employee dispute
Total number of employee training sessions Total hours of employee training Employee training coverage Total investment in employee training
Social Responsibility
Occupational Health and Safety Guard Work Safety
Occupational health and production safety are the cornerstones for safeguarding employees' life and health, reducing The company has established and keeps on optimizing
accident risks, and promoting the stable and sustainability of enterprises. Shengda Bio-Pharm strictly complies with a dual prevention mechanism for cascaded safety risk
relevant laws and regulations such as the Work Safety Law of the People's Republic of China, Law of the People's Republic control and hazard investigation and management,
of China on the Prevention and Control of Occupational Diseases, and the Administrative Procedure of Contingency Plans centered on proactive risk control and early Intervention.
for Work Safety Accidents. Internally, it has formulated and implemented a series of management regulations including
the Responsibility System for Work Safety, Responsibility System for the Prevention and Control of Occupational Hazards, For cascaded safety control, the company uses HAZOP
Management System for Safety Inspection and Hazard Rectification, Management System for Work-Related Accidents, (Hazard and Operability Analysis) approach to conduct
Management System for Labor Protection Supplies, Safety Management System for Hazardous Chemicals, and Safety systematic safety risk identification for production
Management System for Stakeholders. Its subsidiaries have also prepared relevant procedural documents to ensure processes, equipment and facilities, and operational
there workplaces meet the standards for safe production and protect employees from occupational hazards. During activities, focusing on analyzing typical hazardous
the reporting period, Shengda Bio-Pharm and its subsidiaries were certified to comply with ISO 45001:2018 for OHSE chemical risks such as fire, explosion, poisoning and
management systems, kept improving its OHSEE management to effectively safeguard employees' life safety and their suffocation, leakage, and corrosion. Furthermore, the
physical and mental health. company has quantified the risk levels, dividing them
into four grades: major (red), significant (orange),
ordinary (yellow), and low (blue). Targeted management
measures are implemented for each grade—developing
Intensify Safety Accountability and exercising control across five levels: "engineering
technology, maintenance, operational control, emergent
response and personal protective equipment"—to
The corporate chairman acts as the primary person responsible for work safety and is generally responsible for the ensure that major risks are controlled, general risks are
company's work safety. The general manager assists the chairman in practicing the work safety and occupational health preventable, and low risks are manageable.
management system, leads the coordination of cross-departmental work safety affairs, and regularly supervises the
implementation of work safety responsibilities across various business segments. The company has established an HSE For hazard investigation and management, the company
department (Safety Section) as a dedicated functional unit for occupational health and work safety. It employs full-time has established a comprehensive hazard inspection
safety management personnel who are responsible for performing daily safety management and guiding on work safety- network that covers daily team-level walk-around
related activities in various workshops. In the meantime, production workshops and teams are required to perform inspection, monthly company-wide comprehensive
their respective duties and collaborate efficiently to ensure the health and safety of all relevant personnel inside of the inspections, seasonal and holiday-specific special
operational premises. inspections, and in-depth detection conducted by third-
party professional institutions. The Identified hazards are
The company promotes the implementation of work safety responsibilities at all levels in accordance with the Work Safety rectified promptly with results thereof to be followed up
Responsibility System. It requires the signing of work safety responsibility agreements annually at all levels and for all as required.
employees, breaking down the safety objectives and responsibilities to every position—from the chairman and general
manager to frontline operators—and directly linking them to performance assessments.
Occupational Health Guarantee
Special Equipment The company is subject to an annual inspection of occupational hazard factors in
Apart from regular internal and external inspections, the company maintains a the workplace by an external third party. It conducts evaluation of the current status
full lifecycle record for each piece of special equipment, integrating the entire of occupational hazards every three years. It has taken corresponding occupational
process from design, manufacturing, installation, inspection, maintenance, disease prevention measures to improve positively the working environment conditions
and modification to retirement to ensure the whole process traceability of for employees in the workplace and ensure the workplace meets the requirements in
equipment status. occupational health standards.
The company organizes regular occupational physical check-ups for all employees
annually in accordance with the laws. The physical check-up covers major occupational
hazard factors such as dust, noise, and chemical toxins, and at three key points, i.e., before,
during and after employment. The results of physical check-up are signed and confirmed
by the employees themselves for future reference.
Key areas
The company integrates DCS (Distributed Control Systems), GDS (Gas Detection The company establishes and continuously updates personal occupational health records
Systems), and video surveillance systems to establish an online monitoring for all employees who participate in occupational physical check-ups. The records
and early warning network covering key parameters and operational status to include occupational hazard exposure history, results of occupational physical check-
enable real-time risk perception and advance warning. up, occupational disease diagnosis and treatment, treatment and recuperation status as
In the plant area, the company implements a "standardized walk-around well as records on emergent response for occupational hazard accidents etc. to achieve
inspection" system, defining inspection frequency, routes, and key checkpoints. dynamic management of employees' health status.
The Inspection personnel use information terminals to upload inspection data
in real time to the dual prevention system to enable immediate warning and
closed-loop processing of abnormal conditions.
In the meantime, the company also provides personal protective
Hazardous Chemicals
equipment fit for their positional risk exposure as required for their
As guided in the Work Safety Law of the People's Republic of China for operations, such as noise-proof earplugs, gas/dust masks, acid and
Hazardous Chemicals to be effective in near future, the company has alkali-resistant gloves and protective shoes, air breathing apparatus,
established a record on hazardous chemical consumption, covering the entire etc., and has established records of distribution to supervise employees'
process from warehousing, issuance, and consumption to ensure traceability standard wearing.
and precedent warning of risks thereof. Hazardous chemical warehouses are
run strictly to ensure the materials are segregated, separated and isolated
effectively. Safety information such as MSDS (Material Safety Data Sheets) is
readily available at hazardous chemical storage sites to ensure workplaces
and safety facilities comply with national standards and conspicuous and
standardized safety signs for warning are installed and emergency rescue
equipment are in place.
Social Responsibility
Safety Culture Building
The company adheres to the principle of "safety first, prevention foremost" and is deeply In 2025
committed to fostering a safety culture. Through a comprehensive education and publicity
system that involves all employees and covers all areas, it promotes a profound shift in
safety concept from "passive compliance" to "active prevention, aiming to build a strong
safety defense line for production and providing guarantee for high-quality development.
In 2025, Shengda Bio-Pharm and its subsidiaries conducted a total of 93 occupational Shengda Bio-Pharm and its subsidiaries attended by
health and safety-related trainings attended by 5,230 trainees altogether. The training conducted a total of
covered production knowledge, emergent response, first aid knowledge etc. to effectively
trainees
promote employees' understanding of and adherence to safety red line and behavior
occupational health and
standards.
safety-related trainings
Empower Capabilities through Drills: Emergency Drill for Confined Spaces in the Fermentation Workshop
On May 29, 2025, Tongliao Shengda organized an emergency rescue drill for confined
spaces in its fermentation workshop. The drill simulated a situation where an employee
in the fermentation workshop fell in faint due to an unexpected situation while
working inside a tank. After the accident occurred, the on-site emergency response
process for confined spaces was quickly initiated. Each emergency response team
carried out rescue operations such as ventilation, monitoring, rescue, and personnel
transfer in an orderly manner according to the established plan to fully demonstrate
the emergency response and rescue process for accidents in confined space.
Record of emergency plan drill for sudden spill fire and explosion accident in 2025 -
centralized training for each emergency team before drill
Occupational Health and Safety Status in 2025
In 2025
Employee fatalities from work- Work-related fatalities from
Total investment in work safety related accidents contractors Major work safety accidents
Total investment for work- Work-related injury insurance Total investment for work
related injury insurance coverage safety liability insurance Work safety liability insurance coverage
Social Responsibility
Supply Chain Screening Admission
Management
In the supplier introduction phase, the company applies For qualified suppliers, the company divides them into
a rigorous a "360 ° Panoramic Assessment" mechanism. Class A, B, and C based on the significance of the raw
Shengda Bio-Pharm stresses highly on collaboration
Along with reviewing supplier qualifications and product and auxiliary materials they are to supply. It thoroughly
with industry partners and keeps on improving its supply
quality, it uses public channels—such as environmental communicates its requirements and standards in areas
chain risk management. It actively practice responsible
penalty records and credit survey systems—to evaluate such as ethical conduct, confidentiality, environmental
procurement to advance the carry-out of sustainable
supplier's performance in environmental compliance and protection, hazardous substance control, OHSE, and labor
supply chain requirements. The company is committed
creditworthiness. Additionally, the company assesses ESG rights. Suppliers are required to sign the POs, Supplier Code
to establishing long-term, stable, and sustainable
performance through questionnaires covering occupational of Conduct, and Supplier's Anti-Bribery Commitment, all
partnerships with suppliers and other value chain
health and safety, environmental protection, labor rights, of which shall contain provisions related to environments,
stakeholders. As guided in the Management Procedure
and business ethics. Suppliers that fail the assessment are labor, and human rights. All suppliers are expected to
for Procurement Operations, Management Procedure
advised to make improvement and remedy. Those whose strictly adhere to and comply with these standards.
for Bid Solicitation and Regulations and Objectives for
remedy was accepted will be included in the name list of
Sustainable Procurement Management, the company's
qualified supplier; Otherwise, they are disqualified from
Procurement Dept. and Quality Dept. etc. have organized
becoming approved suppliers. Under equal conditions,
various management departments to work collaboratively
the company will cooperate among others with suppliers
to ensure the effective implementation of sustainable
that have established ESG management systems and are
supplier management across all levels.
actively engaged in ESG management practices.
Sustainable Procurement
The company has incorporated the sustainable and Evaluation Classification
responsible concept in the entire supplier management
process to establish a full-lifecycle green supply chain Annually, relevant departments conduct an online Based on the results of assessment, the company requires
management system covering admission, collaboration, rating for cooperative suppliers, dividing them into four and assists suppliers in rectifying and improving non-
evaluation and exit: levels based on their rating:"Very Good" ,"Good" ,"OK" compliant items, supporting their capability enhancement.
and"Poor" . Additionally, the company performs on-site Suppliers that were rated as "Poor" in the annual online
audits every two years for Class A suppliers of key raw and assessment or failed the on-site audit will be removed from
auxiliary materials, covering aspects such as quality and the supplier pool and the cooperation with them will cease.
environmental performance etc.
Based upon development and continuous improvement of a sustainable supply chain, the company actively encourages and supports
suppliers in establishing and enhancing their own ESG management systems. In 2025, 100% of the company's raw and auxiliary material
suppliers signed procurement contracts containing provisions relating to requirements for environment, labor, and human rights. 70% of
the suppliers participated in corporate social responsibility and on-site environmental audits. Besides, 20% of suppliers were certified to
comply with ISO 45001 standard and 35% of the supplier were certified to comply with ISO 14001 standard.
Risk Management for Supply Chain
Supply chain risk management is essential in stable raw material supply, product delivery and quality compliance. Shengda Bio-Pharm has established a systematic supply chain risk
management system. Through ongoing monitoring of national policies and industry trends, improved communication with suppliers, review of supply chain data over the past three years,
and collection of market reports, the company analysed and evaluated relevant risk points to estimate their potential impact and likelihood of occurrence. It also put efficient and viable
countermeasures in place to significantly enhance its supply chain stability.
Empower Supplier
The company has identified risks associated with suppliers concentration for portions of Cooperation
raw and auxiliary materials. To address this, the company expands its pool of alternative
Minimize
suppliers through multi-channel sourcing and comparison, actively supports small and
single source
Active collaboration and mutual empowerment with
medium-sized enterprises and local suppliers to diversify its supplier identification and
supplier
suppliers are critical to ensure stable operations and long-
gradually reduce supply-side concentration.
dependency
term sustainability of the supply chain. At the beginning
of the year, Shengda Bio-Pharm identified raw materials
and related suppliers with deep cooperation ties and
conducted annual strategic cooperation negotiations in
The company has improved its core supplier management through long-term strategic advance to establish the cooperation goals and resource
cooperation agreements to establish deeper relationships. It strategically plans its own allocation orientation. For suppliers with financial or
Ensuring
safety inventory alongside supplier reserve inventory to create a flexible supply system technical difficulties during the cooperation, the company
Stable
and ensure the continuous supply of key raw and auxiliary materials even under provides key support through financial assistance and
Supply
extreme conditions. technical coordination to enhance supplier capabilities
and further secure the stable supply of key raw and
auxiliary materials.
The company closely monitors market trends for key raw materials. Through
Stabilize
analysing and forecasting the price movements, it flexibly employs strategies such as
cost
bulk purchasing with fixed price and strategic stockpiling to effectively hedge against
fluctuations
the risks from market price fluctuation to achieve refined cost control across the
entire procurement chain.
Social Responsibility
Through supply chain finance mechanisms such as prepayments and shortened payment
Financial Efficient Empowerment:
cycles, the company supports suppliers in stocking up on raw materials required for production
Support
to ensure the smooth execution of production plans.
Collaborate with Relevant
Stakeholders to Advance Supply
Chain Capacity Building
Experts from Shengda Bio Hangzhou Technology Research Institute and production
Technical departments were assigned to supplier sites to provide professional guidance and technical The company continuously enhances the professional
Guidance empowerment, help suppliers improve their capacity and processes, and enable mutual capabilities of its internal teams and supply chain
technical advancement. partners through organized training and experience
sharing. In 2025, the company invited industry experts
to conduct specialized training for production and
The company is actively exploring collaboration with raw material suppliers, service providers,
Green technical personnel on the properties of special raw
construction contractors, and waste disposal entities to implement greenhouse gas emission
Collaboration materials and their associated reaction mechanisms.
reduction initiatives. These include reducing packaging consumption and promoting waste
Additionally, it engaged in joint discussions and
recycling to lower the overall environmental impact from the supply chain.
continuous problem-solving efforts with suppliers
to improve the efficiency of raw material utilization,
The company continues its efforts to promote an open and inclusive supply chain cooperation increase the number of reuse cycles for special raw
model, encouraging participation from suppliers with diverse backgrounds and expertise. While materials, and enable the recovery and reuse of
Opennessand
ensuring compliance with legal and regulatory requirements, it provides appropriate support valuable by-products. This approach achieves a
Diversity
to businesses owned by women and ethnic minorities to build in a stepwise manner, a mutually synergistic effect of "resource conservation" alongside
beneficial and win-win supply chain ecosystem based on inclusiveness and cooperation. "cost reduction and efficiency improvement."
Product and Service Safety and Quality
The company regards the safety and quality of its products and services as the foundation of its operations and management. It keeps on improving its quality management system
and enhancing whole-process control to ensure the stability and reliability of its product and service. To protect against the quality risks, the company has improved its mechanism for
product recall and problem resolution, established open channels for customer complaints and feedback to continuously optimize its product and service performance through customer
satisfaction management. Through systematic governance and continuous improvement, the company has achieved effective management of the risks related to its products and services
and improved customer experience while solidifying the foundation for sustainable business development.
Governance
The company keeps on promoting the
Tier Organizational Structure Main Roles
development of its quality governance system
and has established a multi-level governance 1. Implement the highest-level supervision and accountability for product quality and safety,
framework comprising "strategic decision- and review the effectiveness of the quality and safety management system.
making-comprehensive management- 2. Deliberate on and approve the product quality and safety strategies, policies, indicators and
coordinated implementation-operational targets, as well as their special budgets and resource allocation.
execution." Under the framework, the BOD and
the Strategy Commission fulfill the functions BOD
Decision-making tier
of strategic decision-making and oversight,
steering the direction of quality. The Quality upgrading, system certification, etc.)
M a n a ge m e n t D e pt . a cts a s a h u b a n d i s 1. Assess and manage the impacts, risks and opportunities related to quality and safety,
responsible for whole-process coordination including those on the company's brand value and market competitiveness.
and the formulation of standards. The Sales 2. Formulate a medium and long-term strategic plan for product quality and safety of the
D e pt . e n ga ge s i n d e e p co l l a b o rat i o n to
company.
precisely align market demands with quality
benchmarks. The frontline operators rigorously 3. Oversee the development of the product quality and safety management system;
implement operational procedures to solidify Strategy Commission 4. Review the disposal plans for product recalls and major quality accidents.
the foundation of quality and safety. Through
clearly defined responsibilities at each level
BOD.
and efficient coordination mechanisms, the
company not only ensures the product quality 1. Formulate annual quality and safety objectives and action plans, and coordinate the quality and
consistency and safety, but also transforms safety work of various departments as a whole.
Management tier
its quality strengths into the cornerstone for 2. Supervise the operation and continuous improvement of the quality management system;
customer trust, which lays a solid foundation for Sustainability
Leadership Team 3. Review the management polices and standard operating procedures related to quality and
the sustained enhancement of brand value.
(Including head of the safety.
Quality Management
Dept.) 4. Internal and external quality audits and management reviews within the organization;
control, inspection and test.
Execution tier
Product Quality and
Safety Team 4. Handle customer complaints and conduct customer satisfaction management.
(Quality Management 5. Organize the investigation of quality accidents and implement corrective and preventive
Dep) measures.
Social Responsibility
Strategy
Based on the current competitive landscape of the industry and the dynamics of supply and demand within the industrial chain, the company has conducted a comprehensive strategic review and assessment
of the safety and quality of its products and services. Following an in-depth analysis of the macro environment, industry trends, and its own operational status, the company has systematically evaluated the
potential risks, core opportunities, and their key impacts. On this basis, it has defined forward-looking and feasible countermeasures to provide a clear guidance in product quality guarantee.
Analysis of Risks, Opportunities and Countermeasures Related to Main Products and Services
Impact
Type Detained Indications Impact Analysis Impact Extent Countermeasures
Cycle
Risks
Administrative penalties and fines, damage to mechanism for monitoring and updating regulations
Policy and Failure to promptly follow up on corporate reputation Medium-
regulatory regulatory updates, expiration of Corporate operation and long- Conduct regular internal compliance audits.
risks relevant permits/licenses, etc. Restricted market access, products unable to be term
launched or sold Strengthen communication with regulatory authorities
Resulting in unstable product quality and failure to Medium- Establish a strict supplier quality audit mechanism and implement batch-by-
Unqualified raw material deliver on schedule; batch inspection of raw materials.
Supply chain Upstream of value and
suppliers and occurrence of
risks Damage to customer relationships and harm to chainCorporate operation short- Implement the supply chain transparency and traceability system.
quality problems;
brand reputation; term Sign quality assurance agreements with suppliers, etc.
Establish a quality management system covering the entire product lifecycle.
Improper control over production The product quality problems occurred, triggering a Medium-
Production and Corporate operation Improve the product recall procedure and conduct regular drills.
process and non-standard product recall. and long-
operation risks Downstream of value chain Strengthen the qualification training and operational standards for
inspection and test; Loss of customer trust and market shares; term
employees.
Opportunity
Enhance Increased product added value, leading to higher Establish a quality culture and brand story
Increased demand for high- profit margins Corporate operation Medium-
market shares
profile products and quality and long- Invest in advanced production and quality test devices;
through quality Enhanced market pricing power and expanded Downstream of value chain
premium term Develop high-end product lines
upgrading brand influence
Opportunities Expand market space and increase revenue from Procure internationally recognized certifications with authoritative approval,
Procure international quality overseas markets. Corporate operation Medium- as well as relevant certifications required by export countries.
for access to
certification and complete export and long-
international Enhanced risk resistance capacity and Downstream of value chain Establish an overseas quality service network.
qualifications. term
markets internationalization of the brand Participate in international exhibitions and industry exchanges.
Impact, Risk and Opportunity Management
Products and services serve as the foundation for an enterprise's survival and development, as well as the core guarantee of product competitiveness. To this end, the company keeps on improving its quality
improvement and compliance assurance centered on products and services, promoting the development and maintenance of the quality management system, and steadily enhancing the customer trust.
During the reporting period, products of Shengda Bio-Pharm and its subsidiaries have all been certified to be consistent with ISO 9001:2015 Quality Management System. Based on its product characteristics
and business needs, the company has procured certifications including the ISO 22000 Food Safety Management System, BRC International Food Safety Standard, FAMI-QS European Feed Safety Management
System, Written Confirmation for APIs export to the European Union (WC certificate), Good Manufacturing Practice (GMP/GMP+), and the U.S. Food and Drug Administration (FDA) certification to ensure its
product quality control by applying high standards and strict requirements.
Quality Management and Control
To defend further the product safety and quality line, the company has established a dynamic regulatory monitoring and compliance response mechanism. By maintaining a real-time updated list of regulations and
standards, the company accurately identifies and promptly carries out the new regulatory requirements. It has formulated a series of control procedures, including the Quality Risk Management System, Product
Quality Archives Management System, as well as internal audit, analysis and evaluation, product release, deviation remedy and product recall to ensure the whole-process coverage for compliance awareness and
operational standards.
In the meantime, the company and its subsidiaries conduct monthly quality analysis involving the company's management and heads of relevant functional departments. A systematic analysis is carried out on
the quality of raw, auxiliary materials and finished products, including product quality performance and non-conforming products. Besides, statistics and summaries are compiled regarding the inspection of utility
systems, stability studies, implementation of CAPA (Corrective and Preventive Actions), completion of annual and monthly plans, acquisition of licenses and certificates, etc. to form a monthly quality report and
ensure the orderly operation of the quality system.
To further strengthen its quality risk management, the company and its subsidiaries have regularly organized quality seminars (quarterly/annually) for special discussions on various topics (including but not limited
to workshop process control capabilities, production deviations and abnormal events, complaints, product returns, etc.). These moves helped various departments draw lessons from past issues to effectively
address quality incidents. During the process, in-depth analysis was conducted on product quality anomaly trends, with comprehensive assessments carried out from the perspectives of personnel, machinery,
materials, methods, and environment. This enabled timely adjustments in personnel training, equipment maintenance, supplier management, and other areas, while facilitating the sharing and exchange on root
cause analysis and corrective/preventive measures and has effectively improved the quality risk identification and closed-loop management capabilities. Specific quality improvement measures include:
In 2025
Initiate proactive change Review and clarify supplier Establish customer files Exercise cascaded risk
Shengda Bio-Pharm and its subsidiaries experienced
NO
management to extend quality agreement to identify differentiated control for test items
product re-test periods/ requirements and technical requirements through in-depth regulatory
expiry dates and maximize acceptance standards to of different customers, benchmarking and risk major safety or quality liability accidents
product commercial value extend quality control providing a decision-making assessment to reduce or related to products and services.
while strictly maintaining upstream to the source; basis for product upgrades eliminate unnecessary tests
compliance; and production planning; and significantly improve
operational efficiency while
ensuring product safety.
Social Responsibility
Multidimensional Efforts Made for Whole-staff Governance: Successful Conclusion of the 2025 Quality Month Activity Campaign
During the period of September to October 2025, by taking the "Quality Month" as an opportunity, various subsidiaries devised and implemented a series of themed activities featuring novel formats and
rich connotations. A strong quality-focused atmosphere was created through measures such as hanging banners, screening videos, and holding fun garden parties, while the substantive connotation
was deepened through quality analysis meetings, advanced team evaluations, specialized training across various systems, and the collection of "Golden Quality ideas." During the campaign, companies
gathered numerous rational suggestions from the front line. After professional evaluation and screening, some outstanding "Golden Ideas" have been implemented, not only addressing difficult quality
issues but also effectively solidifying the foundation for quality management with whole-staff participation.
Product Recall
According to relevant documents such as the Procedure for Early Warning and Product Recall Control and the Regulation for Drug Recall Management, the company's product recalls typically commence with
problem identification and risk assessment. A systematic analysis of product quality or potential safety hazards is conducted to determine whether a recall procedure needs to be initiated, and the severity of the
product safety hazards is graded for differentiated processing. After confirming the necessity of the recall, the recall decision-making mechanism will be implemented promptly, defining clearly the scope of recall and
the plan for execution and relevant departments are to be organized to collaborate on the execution and communication of the recall. Upon completion of the recall, the effectiveness of the recall will be evaluated to
identify the root cause behind the problems, define the remedy to be taken, ensure sustainable improvement of the quality management system and prevent re-occurrence of similar problems.
After a product was recalled, the quality departments of each company are required to submit an investigation and evaluation report, recall plan, and notice for recall to the local food and drug supervisory
administration for filing. During the implementation of the recall, the progress of the same must also be reported to the local food and drug supervisory administration in a timely manner. To effectively ensure the
compliance and effectiveness of the product recall system, the company and its subsidiaries have established an annual simulated recall drill mechanism. By setting different triggering scenarios, the emergency
response speed, information transmission accuracy, and decision-making process efficiency of the product recall system are comprehensively tested. After the drill, the deviation remedy and CAPA (Corrective and
Preventive Action) procedures are immediately initiated to facilitate identification and deficiency remedy by the system, ensure practical capability of the recall system is verified and consolidated continuously and
risks are controlled quickly, orderly, and efficiently for true recall incidents.
In 2025
From Identification to Recall: Simulated Recall Exercise for Products in Silver-Elephant
Shengda Bio-Pharm and its subsidiaries had
NO cases where sold or shipped products had
to be recalled due to safety and health
On December 29, 2025, the Silver-Elephant, a subsidiary of the company, conducted a simulated recall test for its product to
verify the feasibility and effectiveness of product recall management. The simulated recall was successfully completed, with all
departments actively cooperating throughout the process and successfully completing the recall within a relatively short period
issues.
of time. The entire recall drill proceeded according to the predetermined plan to verify the operability and effectiveness of the
"Withdrawal and Recall Control Procedure" in the quality management system. This demonstrates Silver-Elephant's high ability to
recall its faulty products and its orderly management of product traceability.
Processing Customer Complaints
In 2025
To improve the quality of customer service and optimize the allocation of service resources, the company has formulated the Regulation for
Product After-Sales Service and relevant procedural documents. It conducts classified evaluation of customers to achieve precise response to
customer needs and daily refined management, so as to ensure customer experience and build an efficient service system.
The company strictly follows a 24-hour response mechanism for customer inquiries across all channels to ensure all calls, letters, and visits Shengda Bio-Pharm and its subsidiaries received a total of
receive a response within the specified timeframe. In case of any special cases that prevent timely responses, the company will proactively
explain the reasons to customers and seek their understanding. To address customer complaints, the company takes customer feedback
as the starting point. The marketing department receives and forwards the feedback to the quality department, which determines whether
the complaint is valid and assigns a classification level. It then collaborates with relevant departments to conduct a complaint investigation
all of which were responded to, handled, and closed on time,
and impact assessment, identify the processing measures, and establish corrective and preventive actions to drive implementation of
achieving a
improvements. Once completed, a product quality information feedback report is generated and communicated to the customer through
the marketing department, followed by follow-up responses until the customer is satisfied and the complaint process is closed. If the
customer is dissatisfied with the outcome, the process re-enters the analysis and improvement phase to ensure the issue is fully resolved,
thereby achieving closed-loop management and continuous improvement for customer complaints.
Illustration of Customer Complaint Processing
Relevant Departments Efficient Collaboration for
Reason Analysis and
Remedy Quality Assurance: Establishment
of a Business Communication
Mechanism for Key Customers
To ensure effective quality management at the customer
side for a key customer's business, the company
established a dedicated business communication
an information feedback
Executive Departments
slip on product quality
Quality Dept. prepares
Closeout of Customer
Reason analysis and
Satisfaction Process
team to facilitate interaction between the customer
Marketing Dept.
Marketing Dept.
Quality Dept.
and the company and interface with major functional
complaint
Customer
Feedback
Feedback
departments such as production, quality, and sales.
reme
During collaboration and communication with the
customer, issues are identified and resolved promptly.
In the meantime, reasonable suggestions from the
customer are adopted to leverage strengths and address
weaknesses and resolve issues arising from the process
from product production to transportation to the
Customer customer's destination.
dissatisfaction
Social Responsibility
Customer Satisfaction
The company regards customer satisfaction as an
important indicator for measuring product quality and
service level, and has formulated a "Customer Visitation
and Satisfaction Survey Procedure", stipulating the
customer satisfaction surveys are conducted annually and Price Delivery Special Freight quality Time-bar for
targeted remedy and improvements are made based on Competitiveness promptness demand and labeling information
customer feedback. response code updatings
The company's 2025 annual customer satisfaction
survey was under way orderly. For the annual customer
satisfaction survey in 2024, the company distributed a
total of 80 questionnaires and received 64 valid responses, To this end, the company has formulated and implemented a series of remedy as follows:
with a response rate of 80%. The data shows that overall
customer satisfaction is high: 56 questionnaires received a
high score of "very satisfactory" ( ≥ 90 points), accounting
for 87.5% of the total; 8 questionnaires received a score Continuously promote process innovation and procurement model upgrades to fully tap
Pricing into cost reduction potential; establish a market price monitoring mechanism to flexibly
of "satisfactory" ( ≥ 80 points), accounting for 12.5% of strategy
the total with an excellence rate of 100%. Based upon its optimization adjust sales strategies; implement differentiated price support policies for core customers
in-house check and sorting-out and external feedback, to enhance overall competitiveness.
the company will consolidate what it has achieved and
promote in the following aspects:
Strengthen capacity assessment and balance supply and demand. The sales side needs
For the annual customer satisfaction survey in 2024 Improvement to scientifically accept orders based on actual production capacity; the production side
in delivery
capability needs to establish a safety stock warning mechanism to ensure timely delivery of key
orders.
the company distributed a total of
Implement supplier lifecycle management, strengthen audits and high-standard
Logistics
and
packaging
quality
assessments of upstream packaging material suppliers; establish a preferred logistics
supplier screening mechanism, select optimal partners through multi-dimensional
comparison, and develop protective plans for key transportation difficulties to ensure
control
received with a response rate of "zero defect" delivery of goods.
overall customer satisfaction rate of each subsidiary reached more than 95%.
Responsible Marketing
The company's business model is customer oriented and in the process of cooperation, it consistently upholds the principle of "health first" to integrate the concept of responsible
marketing into its core management. The company is strictly within the bounds of regulatory compliance and has formulated and implemented internally relevant documents such as the
Regulation for Product Marketing Management and the Management Procedures for Export and Domestic Product Labeling to ensure its product labeling is science-based and compliant
and marketing promotions are authentic and professional. By building a "compliant, scientific, and transparent" marketing ecosystem, the company is committed to achieving business
growth setting a responsibility benchmark within the industry, while safeguarding the public security.
Indicators and Targets
The company follows thoroughly the principle of "quality first", and takes product quality and customer satisfaction as its In 2025
ultimate target. It has established a series of quality objectives and linked them to the performance-based compensation
of relevant departments and the management tier. In 2025, Shengda Bio-Pharm and its subsidiaries achieved the following
quality objectives and will continue to improve its quality management performance.
The right-at-the first-time acceptance
rate of the product is
The product factory qualification rate shall be
Customer satisfaction is over
Social Responsibility
Data Security and Customer Privacy Protection
Effective information security management constitutes the foundation for mutual trust and long-term cooperation between Shengda Bio-Pharm and its partners, customers, and
employees. The company's business model targets corporate customers, involving no collection, storage, or processing of any personal consumer privacy data. Therefore, it stresses on
managing the security and stability of the IT systems. The company strictly complies with relevant laws and regulations such as the Cyber-security Law of the People's Republic of China
and the Data Security Law of the People's Republic of China. It has formulated the Regulations for Enterprise Information Security Management and Procedure for Information Security
Risk Assessment to benchmark the requirements for Class III network security protection certification. It has established security mechanisms covering data encryption and access control,
improved the protection of key systems and data assets, and provided a solid guarantee for the safe and stable operation of IT systems and business. In 2025, the company completed the
upgrade of its security capabilities, updating and configuration of security devices such as firewalls, behavior management systems, and bastion hosts, and has simultaneously optimized
its server security policies to further uplift the boundary protection and access control capabilities.
Hierarchical walk-around Drill dissemination and
Data governance Technical protection inspection roll-out
For the data governance system, The company's servers adopt an The company conducts regular In 2025, the company deeply
the company has continuously architecture where application inspections of infrastructure participated in two practical
promoted the construction of a data servers and data servers are such as computer rooms and offensive-defensive drills. Relying
hub and established an integrated deployed separately, ensuring that cabinets at least twice a year, and on its robust defense system, it
capability for data cleaning, terminal computers cannot directly carries out random inspections successfully withstood external
transformation, integration, and access the data servers through for key security devices such as attacks and achieved "zero
modeling. It rendered support network isolation and permission firewalls and internet behavior breach." The company organized
to master data management to control. In the meantime, all management systems to promptly special information security
ensure internal and external data administrator operations are identify and rectify potential risks. training session for all employees,
consistency while reserving data uniformly authenticated and In 2025, the company established established a regular security alert
desensitization function to meet audited through a bastion host an information security team to mechanism, and continuously
the requirements for privacy to strengthen the control over conduct a comprehensive risk delivered cyber-security warnings
protection compliance. operation and maintenance assessment of the corporate and protective knowledge through
behaviors. Besides, the company information assets. The team multiple channels to solidify the
has closed high-risk ports related to identified and mitigated the ideological defense line among
ransom-ware attacks to reduce the risks exposed to two assets and employees.
risk of intrusion and propagation. generated a Report on Information
Security Risk Assessment.
In the meantime, the company strengthened information security control by signing confidentiality agreements with customers and operating local dedicated terminals to further mitigate
the risk of data leakage. In 2025, Shengda Bio-Pharm and its subsidiaries experienced no data security incidents.
Innovation Driven
The company remains committed to innovation as the Organizational
core driver of high-quality development, continuously Tier Main Roles
Structure
increasing its R&D investment, systematically advancing
R&D capability building, and refining its technological
and supervise the implementation of the innovation strategy.
innovation system. By focusing on overcoming 2. Deliberate on and approve the commercialization paths and market strategies for innovative
key technological difficulties and facilitating the businesses.
transformation of achievements, the company steadily 3. Deliberate on and approve the intellectual property strategy and the core technology protection plan.
has improved its independent R&D capabilities and 4. Supervise the development of the R&D team and the retention of core talents, and review the incentive
BOD plans for R&D personnel.
promoted the application of innovative results in business
Decision-making tier
operations. At the same time, the company enhanced
its innovation incentive mechanisms and intellectual
property management framework, unlocking employee
creativity and safeguarding innovation outcomes, so as to 1. Assess and manage the impacts, risks and opportunities associated with R&D and innovation,
drive continuous improvement in its core competitiveness including those on the company's brand value and market competitiveness.
and long-term sustainability.
layout of innovative businesses and product pipelines.
Strategy introduction plans.
Governance Commission 4. Assess intellectual property risks and technological developments of competitors
The company regards innovation as the core engine
BOD.
of its development and has continuously optimized
its R&D innovation governance framework to build 1. Formulate annual innovation goals and key performance indicators, and coordinate innovation
a highly coordinated management matrix to ensure collaboration among various departments.
Management tier
highly efficient synergy for "strategic decision-making, Sustainability for R&D project management.
strategy execution and operation monitoring". Within Leadership Team 3. Establish an innovative performance evaluation and incentive mechanism;
this framework, the BOD and the Strategy Commission (Including 4. Supervise the annual R&D plans and project progress, as well as the implementation of R&D budgets
focuses on top-level design, exercising strategic decision- directors of and project progress.
making and supervisory functions. In the meantime, the the research 5. Supervise the application and protection of intellectual property rights.
Research Institute serves as the hub for R&D strategy and institute) 6. Organize external technical cooperation and joint research and development projects.
implementation and tackles key technical challenges. By
relying on the framework, the company has established
a tiered and standardized R&D review mechanism 3. Identify patentable technologies and innovative areas, conduct patent searches and infringement risk
Execution tier
that integrates technology decision-making, resource R&D and analysis.
allocation, and management oversight. This ensures Innovation Team 4. Cooperate in research and development with third parties such as external scientific research
closed-loop management across the entire R&D lifecycle— institutions, universities and suppliers.
(Research
from initiation to delivery—thereby achieving dual
Institute)
enhancement of both innovation efficiency and quality.
Social Responsibility
Strategy
The company has established a comprehensive lifecycle risk and opportunity identification and assessment system for R&D innovation. During the project initiation phase, multi-
dimensional evaluations are conducted from four perspectives: technical feasibility, regulatory compliance, commercial market viability, and resource availability and timeline. Throughout
the R&D process, leveraging key milestone reviews and a major change review mechanism, the company dynamically monitors and updates progress, data, and external environmental
changes—enabling precise identification of core risks such as R&D delays, technological uncertainties, and cost overruns. Simultaneously, the company keenly captures differentiated
competitive opportunities arising from policy trends (such as green and low-carbon initiatives), shifts in customer needs, and technological breakthroughs. By establishing a risk list
tracking and closed-loop management mechanism, the company achieves dynamic resource allocation adjustments and scientifically prioritizes projects to ensure that R&D initiatives
consistently maintain both compliance and commercial viability.
Analysis and Responses to Major Risks and Opportunities Related to R&D and Innovation
Impact Impact
Type Detailed Indications Impact Analysis Countermeasures
Extent Cycle
Risks
• The ongoing projects and technologies under
research cannot meet the dynamic compliance Medium- • Establish a mechanism for the monitoring and updating of laws and
Dynamic changes in industry requirements. Corporate regulations.
and short
Policy and regulations and standards operation
• Adjustment of the research and development term • Strengthen communication with regulatory authorities
regulatory risks
direction results in waste of resources.
Low efficiency and prolonged • Establish a full life cycle management system for research and
research and development • Delayed product launch and missed market development projects and define key milestones.
cycles due to decision- window opportunities Corporate • Establish cross-functional R&D teams to mobilize resources
making process, registration Ditto
Risk of R&D • R&D costs overrun and return on investment operation efficiently.
and approval procedures,
cycle delay resource allocation, and decreases • Introduce professional talents and tools, and establish a rapid
other factors. decision-making mechanism for projects.
• Establish a technical intelligence monitoring system to strengthen
• The existing products are backward in technology, the tracking and pre-research of cutting-edge technologies.
Replacement by emerging
and the R&D investment has depreciated. Medium-
Risk of technologies and the shift Corporate • Implement multi-path technical reserves and conduct regular
and long-
technological of industrial technological • The market share has declined and the industry operation technical portfolio evaluations.
term
route paradigms position has been shaken. • Establish an open innovation network and maintain technical
competition
flexibility and adaptability.
• Establish a linkage mechanism between market insight and
Insufficient market demand • -Serious waste of resources and high costs of research & development
strategic adjustment. Medium-
research, changes in market Corporate
and long- • Implement a phased review mechanism for research and
Risk of Deviation demand, or errors in the • The product has low market acceptance, resulting operation
term development projects.
in R&D Direction selection of technical routes. in the loss of genuine market opportunities.
• Carry out multi-scheme demonstration and technical pre-research
Impact Impact
Type Detailed Indications Impact Analysis Countermeasures
Extent Cycle
• Market promotion is hindered and
The research and • Consider industrial feasibility during the research and development
competitiveness declines. Medium-
Risks in the development achievements Corporate phase, and implement process verification and optimization.
transformation • Consider industrial feasibility during the research and short-
cannot be effectively operation • Strengthen collaboration between the R&D and production
of research and and development phase, and implement process term
commercialized. departments
development verification and optimization.
achievements
• Establish an equity/option incentive plan, or a key talent retention
Insufficient mechanisms • Disruption or delay of ongoing projects and plan.
discontinuity in technological inheritance Medium-
for talent attraction and Corporate
and long- • Establish a mentoring system and talent pipeline training, and
The risk of brain incentives, along with a • Weakened innovation capacity and loss of operation
term provide continuous learning and growth opportunities.
drain in R&D shortage of high-end talents. technological advantages
• Foster a sound scientific research culture and environment;
• Failure to effectively protect research and • Establish a comprehensive intellectual property management
development achievements results in the loss of Corporate system
Imperfect patent layout, competitiveness. operation Medium-
or suspected patent and long- • Implement patent early warning and build a patent defense
Intellectual infringement • Faced with infringement lawsuits and Downstream term portfolio.
property risks compensation claims, the company's reputation of value chain
has suffered damage. • Regularly carry out intellectual property training and audits.
Opportunity
• Reduce production costs and resource wastage. • Explore emerging technology sectors, invest in advanced equipment
and nurture interdisciplinary talents.
The application and • Create a brand-new product category and Medium-
Corporate
Opportunities breakthrough of new enhance the advantages of sustainability. and long- • Carry out in-depth industry-university-research cooperation with
operation
for technical technologies term external third parties.
• Build technological barriers and lead industry
innovation
transformation. • Apply for a core technology patent
• Comply with future regulatory requirements and Enterprise • Research and invest in green technologies and processes
Increased demand for reduce environmental impact
green and low-carbon operation Medium- • Establish a product life cycle assessment system
Green and development, and policies, • Open up green markets and gain long-term Downstream and long-
sustainable laws and issue of regulations competitive advantages. term • Develop sustainable raw material substitution solutions.
of the value
opportunities for sustainability; chain
• Attract ESG investment • -Build a circular economy business model
Social Responsibility
Impact, Risk and Opportunity Management
Shengda Bio-Pharm places innovation-driven growth at the core of its strategy to achieve high-quality development and strengthen its competitive edge. Focused on its core businesses—
vitamins and food additives—and building on decades of technical expertise, it is continuously refining product formulations, manufacturing processes, and quality control systems, while
accelerating the shift toward automation and digitalization in production. These efforts are steadily enhancing the company's long-term sustainability.
Sustainable Innovation Achievements
The company's R&D and innovation strategy is guided by three core principles: lean production, resource efficiency, and health and safety. It has put in place internal governance
frameworks, including the Regulations for R&D Project Organization and Management and Regulations for R&D Input Accounting to improve operational efficiency and the health profile
of its products, while staying firmly committed to green, low-carbon, and sustainability. By integrating environmental compliance and energy conservation in every stage of technology
R&D, the company has not only strengthened its defenses around product safety but has also accelerated its shift toward an eco-friendly growth model, creating shared value for both the
business and the environment.
In the field of microbial manufacturing, the company In the field of chemical synthesis and process In the food compounding and solution business,
has continuously improved the product output level development, the company continuously conducts the company focuses on developing natural and
per unit of raw material and energy consumption process optimization research by focusing on efficient biological preservative and fresh-keeping
through high-throughput strain selection, synthesis routes of key products and intermediates. technologies, reducing the use of traditional
fermentation process optimization, and medium By improving reaction yields, shortening process chemical preservatives, helping downstream
improvement. While meeting product quality flow, and reducing by-product generation, the customers enhance the health attributes of their
requirements, it has reduced resource consumption, company aims to minimize raw material loss products, and responding to consumers' concerns
lowered energy consumption per unit of production, and energy consumption. Simultaneously, the about food safety and sustainable consumption.
decreased discharge of wastewater and exhaust, and company actively promotes research on continuous
alleviated environmental tension. transformation of conditional processes. While
ensuring product quality and safety, it aims to
enhance the stability of the production process and
resource utilization efficiency, thereby reducing the
overall energy consumption per unit of product.
R&D Capability Development
Schedule of Sustainable Innovation Achievements
The company regards talent as the primary resource for
ESG Features Innovation Achievements in 2025
innovation, with a well-established R&D team supporting
technical upgrading and innovative development. It has
R&D on antiseptic, texture and antioxidant solutions for leisure meat products formulated internal management documents such as the
Regulations for Outstanding Talent Introduction, Regulations
Assist to decrease Biological preservation and freshness-keeping solutions are developed for
for Technical Personnel Training and Further Education and
energy consumption reducing the thermal sterilization intensity for prepared meat products, helping
Regulations for Employee Skills Training. Focusing on its core
and food loss by customers lower energy consumption while better retaining nutrition and
R&D areas, the company continues to recruit and develop high-
reducing the intensity of flavor, all while ensuring food safety.
level talents. By combining campus recruitment with internal
thermal processing and
Antioxidant solutions are developed and applied in combination with development, it has steadily strengthened its pool of young,
extending shelf life,
preservation solutions to reduce oil oxidation during the shelf life, thereby highly educated professionals, gradually refining a tiered talent
minimizing the adverse effects of oil oxidation on consumer health. structure comprising experts, core professionals, and emerging
young talent. This has enabled the company to continuously
enhance its overall R&D capabilities, technological innovation
Reducing the use of Development of natural and highly effective biological preservative solutions capacity, and specialized technical expertise.
chemical additives is in
line with the trends of Solutions of natural and highly effective biological preservation are developed
By the end of 2025, the company's R&D team consisted of 160
healthy consumption to reduce the use of traditional chemical preservatives, and provide customers
members, with over 18% holding either a master's or doctoral
and compliance. with healthier and friendly fresh-keeping feels.
degree (including 3 doctors and 27 masters). The team was also
staffed with multiple senior principal researcher and senior
principal engineer as core experts and technical leaders, as
High-throughput test platform well as multiple intermediate engineers serving as technical
backbones. By establishing a high-quality, tiered talent team, a
Provide rapid, accurate and bulk test and analysis services for all links of R&D, solid intellectual barrier was built for the company's continuous
conduct high-throughput determination of indicators such as composition, technological breakthroughs and product innovations.
Shorten the research concentration and purity of fermentation products, feed back timely key data,
and development cycle support R&D personnel to quickly optimize experimental schemes, and ensure
controllable quality of R&D achievements. By the end of 2025
and significantly reduce
the consumption of
the company's R&D team consisted of
energy and materials
in the research and High-throughput fermentation platform
development process. members
Through the miniaturization and parallelization design of the fermentation
system, multiple different strains, formulations or process parameter systems
can be fermented and cultured simultaneously, which shortens the cycle of with over
strain screening and process exploration and improves R&D efficiency.
(including 3 doctors and 27 masters)
Social Responsibility
R&D Innovation Incentives Intellectual Property Right Protection
The company's steady stream of R&D breakthroughs is driven by an innovation culture As a cornerstone of technological innovation, the company attaches great significance
rooted in shared value creation and mutual benefit. To further empower its R&D teams, to intellectual property protection and has achieved a fully controlled process from R&D
the company has rolled out internal policies, including the Procedure for R&D Performance project initiation to achievement transformation:
Evaluation and Incentives and the Procedure for Technology Commercialization Rewards,
which establish clear reward criteria at every stage of the innovation lifecycle. Based upon
the above, the company conducts annual project reviews and achievement assessments, Establish a patent search and evaluation
Risk
allocates bonuses based on a combination of project impact and performance outcomes, mechanism, regularly organize joint technical
mitigation at
and continuously evolves its incentive mechanisms through practical application. and legal reviews, accurately identify patentable
the project
technical features, and effectively avoid potential
initiation
intellectual property infringement risks through
stage
Special Incentive Regular Incentives analysis.
The Category for
The Category forJob
R&D Achievement Strengthen process management, implement
Contribution and Process
Transformation and Confidentiality confidentiality management for core information
Performance
Implementation control at the such as technical documents and experimental
R&D stage data, implement confidentiality responsibilities,
and prevent the leakage of technical secrets.
• Evaluation objects: Project • Evaluation objects: All personnel
teams and individuals who in functional positions, technical
have successfully promoted the support positions, and other
transformation, application and similar roles who are not directly Develop patent application strategies and adopt
industrial implementation of R&D involved in the implementation and Strategic a combination layout model of "core technology+
achievements. transformation of achievements. layout at the peripheral processes", which not only protects
achievement core innovation, but also suppresses competitors
• Core evaluation criteria: Based • Core evaluation criteria: focus on
stage through peripheral patent networks to form
on the application of R&D employees' actual contribution,
technological barriers.
achievements in actual production work engagement, and task
and the market, with a focus on completion quality, while taking
capacity realization, cost control into account indicators such as
performance, as well as market and collaboration and cooperation. Establish a mechanism for monitoring and
customer feedback. Dynamic evaluating patent annual fees, dynamically screen
• Incentive method: Bonus
maintenance and maintain existing patents based on market
• Incentive method: Special bonuses distribution is linked to personal
at the changes and technological iterations and optimize
will be established for key incentives value creation, and graded and
authorization sustainably the patent layout to boost efficiency
to highlight the crucial value of the verified based on evaluation results
stage and core competitiveness in intellectual property
technology transformation process. to ensure fair incentives.
right application.
During the reporting period
Silver-Elephant, i.e., a subsidiary of the company,
procuredits accreditation for GB/ T 29490-2023
the intellectual property management system to fully safeguard the core competitiveness of the company.
Indicators and Targets
In 2025
Shengda Bio-Pharm invested The company and its subsidiaries have a total of and
development
and have obtained including
While ensuring research and development security and compliance, the company will continuously improve its research and development efficiency, optimize resource allocation, and
support green and low-carbon technology so as to provide support for the overall ESG performance and sustainability of the company.
Social Responsibility
Social Contribution
Shengda Bio-Pharm actively aligns with national policy directions and social development trends and diligently fulfills its corporate social responsibilities. The company carries out
support initiatives in areas such as disability assistance, education promotion, elderly care, and poverty alleviation to convey corporate warmth and social value. Committed to advancing
the development of social welfare, Shengda Group established a SACRED LOVE Charity Foundation in December 2009. Over the years, Shengda Bio-Pharm, together with its subsidiaries
and the Foundation, has been actively engaged in charitable and public welfare initiatives, contributing to the Chinese tradition of compassion and support for those in need. In 2025, the
company's public welfare efforts included:
The company made a targeted donation of RMB 50,000 to the The company has always been committed to aligning
Support for the Charity Federation of Tiantai Country in Zhejiang Province, Care for the its corporate development with social progress, actively
Vulnerable and which serves a fund for assisting the disabled, promoting Elderly and participating in public welfare initiatives such as elderly care
Disabled common prosperity and the care and support of disabled Orphans and support, and fulfilling its corporate social responsibility
individuals. and mission through concrete actions.
The company, in collaboration with the SACRED LOVE Charity
The company established a Teacher Development Incentive
Foundation, launched a Spring Festival warmth initiative
Fund of RMB 600,000 at Enmei Kindergarten. In 2025, the
Education for impoverished families in 2025. A total of 15 families in
senior executives of the company made personal donations Aid for those in
and Talent need received assistance, with donations amounting to RMB
Cultivation
totaling RMB 200,000, to continuously invest in early Need
childhood education resources and support the development
warming a community" and ensuring that care was delivered
of the pre-school education sector.
directly to the people.
In 2025
Shengda Bio-Pharm's actively participated in with a total of and a volunteer service of
Disability Assistance Fund,
One-day Donations
and other activities
Through a series of solid public welfare initiatives, the company has continuously expanded the depth and breadth of its social responsibility efforts to ensure the corporate
development aligns with advancement of its social value.
Rural Revitalization
To further advance rural revitalization and strive to deliver a satisfactory outcome for the conclusion of the 14th Five-Year Plan, Shengda Bio-Pharm has fulfilled positively its corporate
social responsibility. By relying upon its own strengths, the company provided support and launched public welfare initiatives to contribute to rural development and the improvement
of people's livelihoods. In 2025, the company entered into a cooperation agreement with Feifengqiang Village Collective Economic Development Co., Ltd. in Tiantai Country to participate
in and support local agricultural development projects. The company participated in and rendered its support to the local agricultural development program by contributed its shares in
driving the village collective economy through the synergy of capital and resources. It helped deliver tangible results in agricultural efficiency enhancement, farmers' income increase and
rural revitalization.
Shengda Bio-Pharm cooperates with Feifengqiang Village Company to launch agricultural support projects
On October 31, 2025, the company signed a cooperation agreement with Feifengqiang
Village Collective Economic Development Co., Ltd. in Tiantai County in the presence
of the director of the village and a representative of Shengda Bio-Pharm. In the
agreement, provisions concerning the subscription target, subscription value, equity
arrangements, and subsequent performance procedures were defined clearly. Through
the above subscription-based cooperation, Shengda Bio-Pharm provides supports to
the construction of village collective economic projects and business development
and more channels to increase the income of village collectives. The company helps
deliver tangible results in the practice of "Revitalize Villages and Enriching Farmers" and
common prosperity.
Social Responsibility
Due Diligence
By focusing on an integrated compliance framework, Shengda Bio is establishing and refining a systematic and standardized due During the reporting period
diligence mechanism to effectively identify and manage various risks in its operations and development. This mechanism helps
to enhance its long-term resilience and create stable value for its stakeholders. In 2025, the company conducted, by focusing on the company achieved
contract review, demand survey and major project support, systematic risk assessments, which covers Shengda Bio-Pharm and its
subsidiaries. During the reporting period, the company achieved 100% of compliance review of contracts and worked simultaneously
to investigate and refine the contract standard templates in alignment with new economic business scenarios. It has promoted the
of compliance review of contracts
proactive risk identification and effective mitigation process across the company. The details are described as follows:
Risk
Review Object Risk Archiving
Identification
and Coverage and Review
and Mitigation
The Legal Affairs Department For potential risks identified through reviews, On completion of risk identification,
conducts regular reviews to identify compliance determinations are carried out, and business assessment, and carry-out of
compliance risks in business contracts departments are guided to implement timely remedy response measures, the company
and performance risks of partners, to enable proactive prevention of compliance risks manages information relating to the
focusing on potential issues related and reduction of operational losses. On one hand, potential contract risks identified
to legal compliance and commercial standard contract templates are revised and improved, and key compliance review points to
execution. For major key co-operations and fully incorporated in the business processes to further consolidate what has been
and engineering projects, it stresses on achieve systematic control at the source. Concurrently, achieved. Risk categories, relevant
pre-signing risk control assessments targeted compliance training is conducted to clarify subjects, response measures, and
and establishes a special consultation implementation requirements for each business line, implementation status will be recorded
mechanism for anomalies at the ensuring that control measures are effectively in place. systematically and retained as per the
performance stage to enable immediate On the other hand, special compliance reviews are corporate archive management system
analysis of issues and closed-loop strengthened for key issues, and a management system to ensure the entire risk management
implementation of remedy. for risk identification and remedy promotion is enhanced. process is traceable and reviewable.
By systematically advancing the compliance execution, risk identification and response, and digital management, the company has gradually established a due diligence management
system covering pre-process identification, in-process control, and post-process traceability to effectively enhance the foresight of risk prevention and standardization of corporate
governance.
Corporate Governance
Anti-Commercial Bribery and Anti-Corruption
Shengda Bio-Pharm has taken anti-commercial bribery and anti-corruption management as a crucial part of its program for improving its governance mechanism, maintaining fair
competition order, and preventing compliance risks. Based upon relevant laws and regulations such as the Disciplinary Regulations of the Communist Party of China, the Administrative
Sanctions Law for Public Officials of the People's Republic of China, and the Supervision Law of the People's Republic of China, the company kept on refining its internal compliance
management policies in 2025 to make it be applicable to all employees, partners, and major business matters (including bidding, equity transfers, etc.). It has translated systematically
the external regulatory requirements into its internal governance rules and established and put into place a series of closed-loop management measures covering system development,
execution supervision, and risk prevention.
Risk Assessment Risk Mitigation
The company focused on conducting compliance risk screenings for key positions The company has intensified its pre-process prevention by requiring new recruits
with relatively concentrated authority and significant discretionary power (such as and transferred employees to sign a statement on clean conduct and incorporating
contract approval, fund settlement and project bidding etc.). No risks or potential clauses on clean conducts in the cooperation contracts and bidding documents,
hazards related to corruption were identified in 2025. so as to minimize clean conduct-related risks at the source through front-end
constraints.
Training and Dissemination Reporting and Supervision
The company has incorporated anti-commercial bribery and anti-corruption The company keeps on improving the reporting and feedback mechanisms
in its compliance training system to enable tiered and categorized training and to secure smooth channels for reporting via the online OA system and offline
dissemination. Specifically, for middle-level managers, the training focused on dedicated lines. It promptly investigates and addresses issues raised by employees,
strengthening risk identification capabilities and awareness of management responds to compliance inquiries and concerns in a timely manner to promote the
responsibilities; for frontline employees, the emphasis was on explaining key points effective operation of the supervision mechanism and closed-loop management.
of compliance operations in their respective positions. During the reporting period,
a total of over 200 middle-level managers and frontline employees were covered.
To evaluate the effectiveness of anti-bribery and anti-corruption policies and measures, the company actively conducted internal compliance inspections in 2025. Issues identified during
the inspections were promptly investigated and documented in reports. The results showed that in 2025, Shengda Bio-Pharm and its subsidiaries had no incidents related to business
bribery or corruption. Additionally, based on the feedback on the inspections, the company has optimized the compliance process in its daily risk management to further reduce its
compliance risk exposure.
Anti-Unfair Competition
Shengda Bio-Pharm strictly prevents and prohibits unfair competition practices such as
market monopoly and false advertising. It upholds the principle of lawful compliance and
fair competition in market participation and establishes it customer and market trust via Compliance Safeguards Steady Development: Launch
legitimate and compliance operations. The company strictly adheres to the requirements a Special Training Session on Legal and Compliance
of laws and regulations, including the Anti-Unfair Competition Law of the People's
Management
Republic of China. Being centered on the compliance management policies, the company
explicitly prohibits unfair competition, such as false advertising and infringement of trade To further enhance the legal risk awareness and compliance management
secrets etc. capabilities of the company's mid-to-high level manager and to solidify the
high-quality corporate development, the company launched the 2025 Special
Apart from investigation for patent infringement issues and review of compliance clauses Training Session for Legal Affairs and Compliance Management on the afternoon
in bidding projects, the company developed and issued in 2025 the Interpretation for of November 20. Senior executives, including Chairman Hong Ai and Zhou Bin,
Competition Compliance Policies in response to the new regulatory developments. The director of Shengda Bio-Pharm, attended the training. Under the theme "Legal
document was promptly distributed it to all key departments such as those for marketing, Compliance · Steady Progress," the training brought together the mid-to-senior
sales, and project bidding to ensure compliance requirements are understood accurately level managers and employees in key positions. The training session improved
and implemented by all business lines with no vacancy in the system. Furthermore, the effectively the understanding of legal risks and compliance management by
company organized in Nov 2025 a company-wide training on the Anti-Unfair Competition the mid-to-senior level managers and employees in critical roles and promoted
Law of The People's Republic of China and the Patent Law of the People's Republic further the company's overall awareness of lawful and compliance operation and
of China, to further improve employees' awareness of anti-unfair competition and risk prevention capabilities.
intellectual property protection, and ensure business operations are strictly consistent
with the requirements in relevant laws and regulations.
In 2025,
Shengda Bio-Pharm and its subsidiaries had
NO
litigation or major administrative penalties imposed due to unfair competition
practices and maintained stable compliance operations across the company.
Appendices
Appendices
Key ESG Performance
Wastewater Drainage Waste Discharge
Company 2025 Unit Non-hazardous
Company Hazardous Waste Unit
Waste
Shengda Bio-pharm 215,546 ton
Shengda Bio-pharm 699 40 ton
Anhui Shengda 31,043 ton
Anhui Shengda 149 30 ton
Tongliao Shengda 896,171 ton
Tongliao Shengda 1 14,228 ton
Silver Elephant
(Including Yitao Food) 2 3,881 ton
(Including Yitao Food)
Exhaust Emission Environment Compliance Management
Company 2025 Unit Indicators 2025 Unit
Shengda Bio-pharm 17,732 10km3 Major environmental violation incidents 0 Occurrence
Administrative penalties or criminal liability
Anhui Shengda 4,817 10km3 0 Occurrence
imposed due to environmental compliance issues
Tongliao Shengda 51,210 10km3 Total investment in environmental protection 5,756.46 10k CNY
Silver Elephant Number of environmental protection-related
(Including Yitao Food) training sessions
Number of trainees attending environmental
protection-related training sessions
Employee
Indicator Secondary Indicators 2025 Unit
Total number of active employees at the end of the period / 1,083 Person
Male 710 Person
Structure of active employees at the end of the period (By gender)
Female 373 Person
≤ 30 years old 202 Person
Structure of active employees at the end of the period (By age) 30-50 years old 617 Person
≥ 50 years old 264 Person
Production 765 Person
Sales 42 Person
Structure of active employees at the end of the period (By discipline composition) Technical 163 Person
Financial 24 Person
Administration 89 Person
Doctorate's degree 3 Person
Master's degree 41 Person
Structure of active employees at the end of the period (By education background) Bachelor's degree 254 Person
College degree 205 Person
Senior high school and below 580 Person
Rate of labor contract conclusion / 100 %
Employee social insurance and housing fund coverage / 100 %
Incidents resulting in labor lawsuits, labor arbitration, and other employee dispute / 0 Occurrence
Total number of employee training sessions / 440 Number
Total hours of employee training / 830 Hour
Employee training coverage / 100 %
Total investment in employee training / 12,650 CNY
Appendices
Occupational Health and Safety Product and Service Safety and Quality
Indicators 2025 Unit Indicators 2025 Unit
Number of occupational health and safety-related Major safety and quality liability accidents related
training sessions to products and services
Number of trainees attending occupational health Number of incidents where products sold or
and safety-related training delivered must be recalled due to safety and 0 Occurrence
health issues
Total investment in work safety 589.25 10k CNY
Number of customer complaints received relating
Employee fatalities from work-related accidents 0 Person to products or services
Rate of customer complaint addressing 100 %
Work-related fatalities from contractors 0 Person
Major work safety accidents 0 Occurrence
Total investment for work-related injury insurance 24.92 10k CNY
Data Security and Customer Privacy Protection
Work-related injury insurance coverage 100 %
Total investment for work safety liability insurance 15.81 10k CNY Indicators 2025 Unit
Work safety liability insurance coverage 100 % Number of major data security incidents 0 Occurrence
Innovation Driven
Supply Chain Management
Indicator 2025 Unit
Indicators 2025 Unit Total investment in R&D 5,367.42 10k CNY
The proportion of raw and auxiliary material
Number of R&D teams 160 Person
suppliers that have placed orders containing
provisions on environment, labor and human -Doctorate's degree 3 Person
rights requirements
Proportion of suppliers participating in corporate -Master's degree 27 Person
social responsibility and on-site environmental 70 %
audits -Bachelor's degree and below 130 Person
Innovation Driven Anti-unfair Competitions
Indicator 2025 Unit Indicator 2025 Unit
Proportion of R&D team in total number of Incidents involving lawsuits or major
employees
company's unfair competition
Number of authorized patents 19 Number
- Invention patents 12 Number
- Utility model patents 7 Number
Number of newly applied invention patents 11 Number
Social Contribution
Indicator 2025 Unit
Number of participants involved in public
welfare, charity and volunteer activities
Hours of participation in public welfare, charity
and volunteer activities1
Anti-commercial Bribery and Anti-corruption
Indicator 2025 Unit
Number of Commercial bribery and corruption
incidents
Appendices
Index List of No 14 Self-Regulatory Guidelines for Listed Companies in Shanghai Stock Exchange- Sustainability Reports
(Trial)
Pillar No. Topic Chapter Index
Environmental
Social 13 Supply Chain Safety Supply Chain Management
Sustainability Related 19 Stakeholder Communication Stakeholder Communication
Governance
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