CONTENTS
About This Report 01
Sustainable Responsible Employees Environment
Message from the 02 Corporate Value Chain and
Chairman and CEO
Governance Community
About HitGen 03
Corporate 08 R&D and Innovation 20 Employee Rights 33 Environmental 50
Governance Management
Product Liability and 25 Employee Well-being 36
ESG Governance 13 Customer Service Emissions and Waste 52
Talent Attraction and 38
Business Ethics and 17 Digitalization and 27 Retention Resource Utilization 56
Compliance Intelligence
Employee Training and 41 Addressing Climate 58
Sustainable Supply 29 Development Change
Chain
Occupational Health and 45
Safety
Social Contribution 48
Appendix
Appendix 1 ESG 61
Performance
Appendix 2 Index to 67
Guidelines of SSE
Appendix 3 Index to 68
PSCI Principles
About This Report
About This Report
This report is the second sustainability report of HitGen Inc., aiming to present the Company's concepts and policies in the areas of environmental, social, and governance ("ESG"),
as well as its sustainable development practices and performance in 2025, to systematically respond to stakeholder concerns.
Message from the
Chairman and CEO
Reporting Period Reporting Methodology
About HitGen
This Report covers the period from January 1, 2025 to December 31, 2025. To ensure This Report has been prepared in accordance with the Guidelines No. 14 of the
continuity of information, some sections include appropriately referenced historical Shanghai Stock Exchange for Self-regulation of Listed Companies - Sustainability
Sustainable Corporate data. Report (Trial) , with reference to the IFRS Sustainability Disclosure Standards (IFRS
Governance S1 and IFRS S2) by the International Sustainability Standards Board, the Corporate
Sustainability Disclosure Standards - Basic Standards (Trial) issued by the Ministry of
Finance of the People's Republic of China, the PSCI Principles for Responsible Supply
Responsible Value Chain Chain Management published by the Pharmaceutical Supply Chain Initiative (PSCI) .
Appellation Note
For clarity and conciseness, HitGen inc. is referred to as "HitGen," "We," or "the
Employees and Community Company" throughout this report.
Report Language
Environment
Report Scope This Report is presented in Chinese and English. In case of discrepancies between the
two versions, the Chinese version shall prevail.
Appendix This Report covers HitGen Inc. and its subsidiaries. All information and data cited
herein are consistent with HitGen's official documents, statistical reports, financial
statements, as well as corporate social responsibility information that has been
collected, compiled and verified by the Company.
Access to the Report
This Report is published in Chinese and English, and release to stakeholders and the
public in PDF format. The PDF document can be downloaded and viewed on the
Company's official website (https://www.hitgen.com/en/sustainability.html).
Message from the Chairman and CEO
About This Report
Dear Readers,
Message from the As an innovative biopharmaceutical enterprise committed to "contributing to human health," HitGen has
Chairman and CEO always believed that the core of a company lies in continuously creating value. In 2025, we remain dedicated
to practical and determined actions, driving sustainable development to be integrated into strategy, embedded
in management, and deeply rooted in operations. This strengthens the solid foundation for long-term success
About HitGen
Dr. Jin Li
and enables us to continuously contribute, through tangible efforts from HitGen, to our customers, collaborators,
investors, employees, as well as the environment and communities on which we depend.
Sustainable Corporate
Governance
Strengthening the Foundation of Sustainable Corporate Governance. In 2025, the Company continues to explore innovative solutions to address unmet medical needs. In
Company established a three-tier governance structure comprising the board of directors, 2025, we advanced the HG146 project for the treatment of recurrent or metastatic adenoid
the strategy and sustainable development committee, and the ESG working group, cystic carcinoma, a rare disease, into a Phase IIa clinical trial. Preliminary data have shown
Responsible Value Chain
to systematically advance the institutionalized operation of sustainable development positive signals in both efficacy and safety, and the quality of life of the majority of enrolled
work. Taking participation in the EcoVadis assessment as an opportunity, we evaluated patients has been significantly improved. We also believe that, given the global macro
ourselves against international standards and continuously improved our sustainable challenge of human health, relying solely on our own capabilities is insufficient. We have
Employees and Community governance system. We continued to deepen the institutional development of business developed and globally launched the OpenDELTM Community platform, which provides
ethics and whistleblowing supervision systems. Anti-corruption training covered directors researchers with a fully autonomous screening solution, offering every innovative idea an
and senior executives, whistleblowing channels remained accessible, and no corruption- opportunity to be validated. As a partner of the Structural Genomics Consortium (SGC),
related litigations occurred throughout the year. On the supply chain front, we required key we not only draw insights from the global open-source data pool but also contribute our
Environment
suppliers to sign integrity commitments, implemented full lifecycle traceability for hazardous research outcomes back to the scientific community, fostering with an open mindset the
chemicals, and promoted sustainable development concepts across the entire business overall enhancement of global drug discovery capabilities.
chain.
Safeguarding the Earth's Ecological Environment. In 2025, the Company formally
Appendix
Sharing the Fruits of Enterprise Development. The Company has consistently placed committed to joining the Science Based Targets Initiative (SBTi), integrating climate action
talent development at the core of its strategy. In 2025, R&D personnel accounted for into its corporate strategic framework and upholding the principle of generating greater
established a multi-level employee communication mechanism, with CEO roundtables held we continuously reduce our environmental footprint. We embrace the circular economy
quarterly, and annual employee satisfaction reaching an all-time high. In terms of talent philosophy to promote the efficient reuse of resources, and remain steadfast in our
development, we built clear career development paths, establishing three promotion dedication to green operations. The Company has attained ISO 14001 Environmental
tracks—management, technical, and professional support—providing employees with Management System certification.
sustainable growth space. For new employee onboarding, we implemented a buddy system,
Every step counts, leading to great distances. On our journey to becoming a world-class
achieving an 89% retention rate during the probation period. In 2025, we also launched an
innovative biopharmaceutical enterprise, we will continue to adhere to market demand
equity incentive program for key employees, truly achieving shared goals and co-growth
as our guide and technological breakthroughs as our engine, continuously optimizing our
between the Company and its talent.
innovative drug discovery services system, and contributing to building a more inclusive,
Committed to Upholding Our Original Aspiration of Safeguarding Health. The healthy, green, and accessible world.
About HitGen
About This Report
Company Overview
Message from the
Chairman and CEO HitGen Inc. (SSE: 688222.SH) is dedicated to building a world-class innovative biopharmaceutical enterprise. Driven by the mission to advance human health and quality of
life, it provides innovative therapeutic solutions to address unmet medical needs. Centered on its internationally leading DEL (DNA-encoded Library) technology, the Company
has expanded into Fragment-Based Drug Discovery and Structure-Based Drug Design and a suite of complementary platforms based on Oligonucleotide-based Therapeutics,
About HitGen Targeted Proximity Drugs, and Cyclic Peptidomimetics, and has developed HAILO, a proprietary "DEL+AI+Automation" molecular optimization platform, thereby establishing a
distinctive novel molecule discovery engine that delivers both therapeutics molecules and tool molecules to the global pharmaceutical industry. Headquartered in Chengdu, China,
HitGen maintains subsidiaries in Cambridge, UK, and Houston, USA, with its operational network spanning the globe. Through diversified and flexible business models including
Sustainable Corporate technical services, project out-licensing and product sales, the Company has forged extensive collaborations with a broad range of pharmaceutical and biotechnology companies,
Governance chemical firms, foundations, and research institutions. As of the end of 2025, it has empowered over 600 clients globally and contributed to thousands of their innovative drug
development projects. HitGen also advances multiple internal programmes at various clinical and preclinical stages. For more information, please visit www.hitgen.com.
Responsible Value Chain
Cambridge, UK
Employees and Community
Houston, USA
Environment
Chongqing, China
Appendix
Chengdu, China
Meishan, China
History
Library Size
About This Report
DNA Encoded DNA Encoded DNA Encoded >1.2 Trillion
Library Size Library Size Library Size
Message from the
Chairman and CEO
OpenDELTM Community - a dedicated platform
HitGen co-published White Paper: DNA HitGen's controlled for drug discovery professionals passionate
HitGen's novel small
About HitGen
received approval Drug Discovery with Fierce Biotech has officially Main structure of HitGen Global Drug R&D and
Establishment by National Medical NMPA approved clinical trial commenced Production Base (Phase I) Project successfully
of HitGen, Products Administration application for injectable HG381 production completed
Sustainable Corporate
Governance headquartered in (NMPA) to begin Phase I HitGen-backed equity investment fund
Chengdu, China clinical trials to invest RMB40 Million for controlling
stake in BCPM, an Al pharma data service
Responsible Value Chain provider(Chengdu) Co., Ltd
Employees and Community
Environment
Appendix
DNA Encoded DNA Encoded DNA Encoded DNA Encoded
Library Size Library Size Library Size Library Size
HitGen established HitGen's New Generation of NTRK/ROS1 Inhibitor The IND application of Rongchuang HitGen M&A Fund was
the subsidiary in HG030 received approval by NMPA for clinical innovative anti-tumor officially established
Houston, USA trials drug HG030 was
Multiple global pharma companies
HitGen received approval to be listed on the approved by FDA
joined hands with HitGen to establish
Shanghai Stock Exchange (SSE) the world's first DEL Consortium
HitGen completed acquisition of UK's Vernalis
(R&D) Limited
HitGen achieved first self-developed drug
transfer (HG030)
Mission and Vision
About This Report
Message from the
Chairman and CEO
Molecules 3 Business Models 4 Strategic Pillars
Build a world- Generate tool molecules Operate through technical Support company growth through
About HitGen
class innovative and therapeutics services, project out- strong customer and market
biopharmaceutical molecules. licensing, and product mindset, innovative technology
Sustainable Corporate enterprise that contributes sales platforms, targeted M&A, and
Governance
to improving human health operational excellence.
and quality of life.
Responsible Value Chain
Employees and Community
Corporate Honors
Environment
Appendix
Top 20 Enterprises of "Securities Times" 2025
Wind 2025 China Preclinical
China CRO Excellence Top 100 Growing Chinese
ESG Rating CRO Ranking Top20
Brand List 2025 Listed Companies
Core ESG Performance
About This Report
Message from the
Chairman and CEO
Economic Value Environmental
About HitGen
Revenue Total GHG Emissions (Scope 1 & 2) GHG Emission Intensity (Scope 1 & 2)
Sustainable Corporate
tCO2e tCO2e/Revenue of RMB 10,000
Governance
Responsible Value Chain
Employees and Community Society Governance
Number of employees Number of Corruption-related Litigations Fines for Unfair Competition Practices
Environment
Appendix
Percentage of employees trained R&D Expenses (Funding Related to Percentage of R&D Expenses in Revenue
Training sessions conducted Total R&D personnel Percentage of Total R&D Personnel
Sustainable
Corporate
Governance
HitGen continuously optimizes its governance system,
upholds the principle of integrity in business operations
to set an industry benchmark, and establishes a
comprehensive risk management system to promote
long-term and stable development, creating sustainable
value for all stakeholders.
Corporate Governance 08
ESG Governance 13
Business Ethics and Compliance 17
Contribution to the SDGs
Corporate Governance
About This Report
HitGen continues to improve its corporate governance and internal control systems, providing solid support for the compliance and efficiency of such governance.
Message from the Governance
Chairman and CEO
In 2025, the Company strictly complies with laws and regulations including the Company Law of the People's Republic of China and the Securities Law of the People's Republic of
China , revised our governance systems including the Articles of Association, Rules of Procedure for Shareholders' General Meetings, Rules of Procedure for the Board of Directors
About HitGen and detailed working rules for various special committees in 2025, and built a standardized corporate governance structure comprising the Shareholders' General Meeting,
the Board of Directors and senior management. Members of the Company’s Board of Directors possess profound professional backgrounds in biopharmaceuticals, investment,
accounting, legal affairs and other sectors, which effectively enhances the professionalism of corporate decision-making. The Board of Directors has established the Strategy
and Sustainable Development Committee, the Audit Committee, the Nomination Committee as well as the Remuneration and Assessment Committee, and adopts hierarchical
Sustainable Corporate
Governance decision-making for major affairs through a multi-level governance framework covering shareholders' general meetings, the Board of Directors, special committees, independent
director special meetings and management meetings. Meanwhile, the Company actively organises compliance training on securities market laws and regulations for directors, and
Corporate Governance
regularly compiles and issues the Capital Market Bulletin to share the latest corporate updates, market conditions, regulatory rules and typical cases with senior decision-makers.
ESG Governance
Business Ethics and
Compliance
Information Disclosure Investor Relations
Responsible Value Chain The Company strictly implements internal systems including Information The Company has established an investor relations section on its official
Disclosure Management Measures, Measures for Suspension and website, along with a dedicated email address (investors@hitgen.com)
Exemption of Information Disclosure Business, Internal Reporting Measures and hotline, managed by a designated team led by the Board Secretary.
Employees and Community for Major Information, Registration Management Measures for Insiders The Company also organizes activities such as investor open day, on-site
of Insider Information , and Accountability Measures for Major Errors in visits, and conference calls to proactively communicate with investors and
Annual Report Information Disclosure , disclosing corporate information enhance their participation and sense of engagement. On the information
to investors in a true, accurate, complete, fair and timely manner, and dissemination front, the Company promptly shares corporate updates
Environment has launched internal control procedures covering information disclosure through its official website, WeChat official account, video channels, and
approval, information disclosure suspension and exemption approval, and other platforms. It also promotes public understanding of cutting-edge
insider registration on its internal office system. The Company issued a technologies related to its business through initiatives such as HitGen
Appendix total of 59 announcements in 2025. science popularization and technology frontier, enabling the public to stay
timely and comprehensively informed about the Company's development.
In 2025, the Company Cumulative Disclosure of Investor Relations SSE E-Interaction
disclosed a total of Activities in 2025 Response Rate
Strategy
The Company strategically identifies relevant risk opportunities, analyzes their financial impact, and develops response measures.
About This Report
Issue Issue Attribute Financial Impact Response Measures
Message from the
Increased equipment repair/replacement costs.
Chairman and CEO Strengthen project progress tracking and internal resource allocation mechanisms
Physical Risk Project delays leading to deferred revenue
to identify and mitigate delay risks in a timely manner.
recognition.
Enhance daily monitoring and measurement of energy and material consumption
About HitGen
Rising carbon tax and environmental to accurately identify reduction opportunities.
Transition Risk compliance costs, increased procurement costs Strictly enforce equipment energy efficiency access standards, prioritizing
for raw materials and equipment. procurement of production and laboratory equipment with high energy efficiency
Sustainable Corporate Corporate ratings.
Governance
Governance Green Technology Incorporate life-cycle energy costs into equipment procurement evaluation and
Corporate Governance Application Higher initial equipment investment, but select the optimal solution through comprehensive comparison.
ESG Governance Opportunities (New gradually declining energy costs. Take advantage of equipment depreciation expiry timelines to naturally replace
Business Ethics and Energy) existing equipments with energy-efficient models in batches.
Compliance
Monitor existing green finance incentive policies and assess the feasibility of
Policy Support Green bonds or carbon reduction support financing cost optimization.
Opportunities instruments lower financing costs. Standardize data collection on energy consumption and carbon emissions to
meet green financing application requirements.
Responsible Value Chain
Impacts, Risks and Opportunities
Employees and Community
While ensuring R&D security, data reliability, and operational compliance,
the Company deeply integrates risk management into its operations through
institutionalized accountability mechanisms.
Environment Board Office
Internal Control Management
Appendix The Company has formulated relevant systems including Internal Control Risk
Assessment Management Measures, Internal Audit System, Internal Reporting Compliance Role
Measures for Major Information, Registration Management Measures for Insiders Internal Audit Role
of Insider Information , and Measures for Suspension and Exemption of Information Legal Role
Disclosure . Through regular compliance training, risk assessment, internal audit and
other initiatives, the Company enhances employees' compliance awareness, optimises
business processes, and ensures the effective implementation of internal control Governance Structure of Internal Control and
Compliance Management
measures.
With the business lines serving as the first line of defense, under the business ethics
and compliance framework, the Board Office has established compliance, internal
audit, and legal positions, which collectively build internal control and compliance
About This Report management defenses from different perspectives and functional roles:
Compliance Internal
Message from the Legal Role
Role Audit Role
Chairman and CEO
Primarily responsible Primarily responsible Primarily responsible
About HitGen for ensuring the proper for auditing internal for controlling legal
operation of internal controls across various risks arising from the
controls related to business cycles of the Company's business
corporate governance. Company. operations.
Sustainable Corporate
Governance
Corporate Governance In 2025, the Company conducted a special internal audit on procurement and
ESG Governance engineering projects, identified potential internal control deficiencies within the
Business Ethics and procurement department, and promoted the implementation of corrective actions,
Compliance followed by further audits to evaluate the effectiveness of the rectification. For
engineering projects, the Company performed walkthrough testing on internal control
Risk Management
processes to ensure compliance across all phases of construction activities.
The Company has established a systematic management framework covering
Responsible Value Chain The Company has established a dynamic closed-loop compliance risk management
technological, operational, financial and compliance domains. For major or sensitive
system to ensure legal governance and stable operations in a complex regulatory
transactions, the Company has specifically formulated internal systems including
environment:
Measures for External Guarantee Management, Measures for External Investment
Employees and Community Management, Related Party Transaction Management Measures , and Measures
Governing Fund Transactions with Related Parties , to strictly supervise relevant capital
A dynamic regulatory monitoring mechanism is established to track
Identification flows.
policy changes and systematically identify risk points in corporate
Environment governance and daily operations.
Key Measures for Risk Management
The Company regularly conducts various types of compliance training to strengthen
Appendix Assessment
Risks are evaluated based on their likelihood and potential impact, employees' risk awareness and foster a risk management culture involving all
which informs the determination of risk levels and control priorities. employees. It implements qualification reviews and dynamic evaluations for suppliers
to ensure a compliant and reliable supply chain. Risk assessments are carried
The Company adheres to the principle of "internalizing external out for cell and animal laboratories to control hazards and ensure the safety of
rules" – internal policies are promptly updated in light of the latest experimental activities. The Company has established a public opinion management
regulations and embedded into online and offline processes. Targeted and risk incident response plan, clarifying procedures and responsibilities for handling
training (e.g., for key insiders and responsible personnel) is provided to
Response emergencies, ensuring a prompt response to minimize risk impacts.
raise awareness, and any identified non-compliance is firmly rectified
with accountability enforced.
Core Risk Identification and Management Mechanism
About This Report
The Company, based on the characteristics of its business, focuses on the following risks and has established corresponding control measures:
R&D Failure Risk Technology Substitution Risk
Message from the
Chairman and CEO As an innovative biopharmaceutical enterprise with proprietary DEL DEL technology, as one of the screening methods for early drug discovery,
technology, the Company faces the risk of R&D failure in some of its faces competition from traditional high-throughput screening (HTS), fragment-
self-screened drug programs targeting novel targets or mechanisms based drug discovery (FBDD), and the risk of technology substitution from
About HitGen Core during preclinical development. To address this, at specific stages of emerging approaches. The Company relies on mature technology platforms
Competitiveness
drug development—up to the identification of preclinical candidate including DEL and FBDD/SBDD, along with a strategic integration of
Risk
compounds—the Company transfers all or part of the project rights, emerging technologies such as oligonucleotide-based therapeutics platform
Sustainable Corporate thereby shifting both future benefits and risks and reducing the (OBT) and targeted proximity drugs (TPD), to continuously optimize its
Governance uncertainty associated with its own R&D expenses. technology portfolio. By accelerating technology iteration and increasing R&D
investments, the Company aims to strengthen its competitive advantage in
Corporate Governance
the field of DNA-encoded library screening.
ESG Governance
Business Ethics and
Compliance
Core Talent Attrition and Confidentiality Breach Risk Management Integration Risk
The Company enhances the stability of its core team by improving talent To address regional coordination challenges following the completion
development systems, implementing equity incentive mechanisms, and of mergers and acquisitions, the Company promotes the integration of
Responsible Value Chain providing an international research environment. Meanwhile, it has management systems and cultural alignment based on industrial synergies in
Business Risk
established strict confidentiality protocols and other restrictive measures products, technologies, and markets. In response to organizational expansion
to implement tiered management of technical information, preventing after going public, it enhances management capabilities in talent, finance,
Employees and Community technology leakage. and capital operations by optimizing the corporate governance structure and
strengthening management training.
Environment
Exchange Rate and Accounts Receivable Risk Tax Policy and Fair Value Fluctuation
Given the relatively high proportion of overseas revenue, the Company The Company continuously monitors changes in national tax incentive policies
Appendix monitors exchange rate fluctuations between the RMB and settlement and dynamically evaluates financial assets measured at fair value (such
Financial Risk currencies such as the US dollar and the British pound, and plans to as equity investments and private fund interests) to mitigate the impact of
engage in foreign exchange derivatives trading. At the same time, it aims market volatility on performance.
to reduce foreign exchange losses and accounts receivable risk through
prudent assessment of customer creditworthiness and appropriate
accrual of bad debt provisions.
Market Competition Risk Macro Environment Risk
About This Report In response to the competitive landscape of DEL technology from The Company's clients are mostly multinational pharmaceutical enterprises
both domestic and international enterprises, the Company has built and well-known biotechnology companies, with a high proportion of overseas
Market Risk technological barriers through its ultra-large compound library (exceeding revenue. If there are significant adverse changes in the laws, regulations,
Message from the 1.2 trillion compounds) and high-efficiency screening capabilities. It policy environments, international relations, wars, sanctions, or other force
Chairman and CEO
continues to explore new technologies and application scenarios, while majeure events in the regions where its overseas operations are located,
deepening collaborations with global pharmaceutical companies and such changes may pose potential risks to the sustainable development of the
research institutions to expand its market share. Company's global business.
About HitGen
Sustainable Corporate
Governance
Metrics and Targets
Corporate Governance In 2025, the Company held 3 performance briefing sessions and 3 general meetings of shareholders. The
ESG Governance chairman, CEO chairman of the audit committee, CFO, and Board Secretary participated in each performance
Business Ethics and briefing and engaged in in-depth discussions with investors to safeguard shareholders' rights and ensure
Compliance transparency.
Metric Unit 2024 2025
Responsible Value Chain Number of Directors Person 9 9
Number of Female Directors Person 1 2
Employees and Community
Number of Independent Directors Person 3 3
In 2025,
Number of Non-Independent Directors Person 6 6
Environment
Number of Female Executives1 Person 2 1
Number of Board Of Directors Meetings Held Times 4 9 3 Shareholders' General Meetings
Appendix
Number of General Meetings Of Shareholders Held Times 4 3
The scope of executives covered in this report includes statutory executives, heads of HitGen's first-level departments,
and subsidiary CEOs / general managers.
About This Report
Message from the
Chairman and CEO
ESG Governance
About HitGen
HitGen continues to improve its ESG governance structure, strengthen stakeholder communication mechanisms, systematically identify material issues, and steadily advance the
management of sustainable development.
Sustainable Corporate
Governance
ESG Governance
Corporate Governance
ESG Governance The Company has established a three-tier working system consisting of the board of directors, the strategy and sustainability committee, and the esg working group. ESG work is
Business Ethics and led overall by the board of directors, with the board secretary and ESG head regularly reporting to the board of directors and the strategy and sustainability committee through
Compliance activities including the review of ESG reports and presentations on ESG strategic plans.
The Board of Directors(the Board) is responsible for the top-level design of the
Responsible Value Chain Company's ESG initiatives, monitoring and evaluating ESG goal attainment, ensuring
ESG integration into overall development strategies, and creating sustained value for
shareholders and stakeholders.
Employees and Community
ard
The Bo The strategy and sustainability committee is responsible for formulating the
Company's ESG strategy, promoting and overseeing ESG initiatives - including but not
Environment limited to materiality identification, ESG initiatives implementation and guidance, and
cross departmental coordination - and reporting related progress to the Board.
nd
egy a e
Strat mitte
Appendix il it y Com
Sust ainab
The Company's ESG working group is led by the CEO, with members comprising
department heads and ESG subject matter experts, which is responsible for the
specific implementation of ESG initiatives, collection and analysis of ESG data,
roup
ork ing G stakeholder communication, and preparation of the annual ESG report.
E SG W
Stakeholder Communication
HitGen has established a sustained communication bridge with stakeholders, accurately understanding their needs, expectations, and key concerns. Through two-way interaction,
HitGen promptly responds to stakeholder priorities, adhering to in-depth dialogue and value alignment, continuously strengthening the long-term mechanism for stakeholder
About This Report
relationship management, and is committed to building long-lasting, mutually trusted partnerships with all stakeholders.
Communication Channels
Message from the Stakeholder Main Stakeholder Major Issues of Concern
and Mechanisms
Chairman and CEO Identification
Waste Treatment, Water Resource Utilization, Energy Utilization,
Policy briefings, regulatory inspection Environmental Management, Addressing Climate Change,
NMPA, local drug administrations,
About HitGen feedback, research project applications Occupational Health and Safety, R&D and Innovation, Scientific
Government environmental bureaus, science &
Drug R&D compliance filings, environmental and Technological Ethics, Data Security and Customer Privacy
and Regulatory technology departments, market supervision
standard implementation, and science policy Protection, Product Safety and Quality, Business Ethics and
Authorities bureaus, customs, etc
coordination Compliance, Anti-bribery and Anti-corruption, Intellectual
Sustainable Corporate Property Protection, Risk Management, Corporate Governance
Governance
Clients R&D and Innovation, Product Safety and Quality, Data Security
Corporate Governance (Pharmaceutical Domestic/foreign pharmaceutical Technical seminars, project meetings, customer
and Customer Privacy Protection, Scientific and Technological
ESG Governance Companies / companies, universities/research institutes, satisfaction surveys
Ethics, Supply Chain Management, Intellectual Property
Business Ethics and Research Institutions medical institutions, CROs/CDMOs Online platforms
Protection, Business Ethics and Compliance
Compliance / Hospitals, etc.)
Environmental Management, Addressing Climate Change,
Annual general meetings of shareholders, R&D and Innovation, Talent Attraction and Retention,
Biopharma investors, industry funds,
Shareholders and R&D progress disclosures, roadshows, investor Supply Chain Management, Digitalization and Intelligence,
strategic investors
Responsible Value Chain Investors surveys Corporate Governance, Risk Management, Business Ethics and
Compliance, Intellectual Property Protection
Occupational Health and Safety, Employee Training and
R&D technology forums, employee training,
Employees and Community Employees (R&D Medicinal chemistry/biology researchers, Development, Employee Rights Protection, Talent Attraction
online communication platforms
/ Technical / DEL engineers, quality control specialists, IP/ and Retention, Diversity, Equity and Inclusion, Digitalization
Career development planning, innovation
Management, etc.) project managers and Intelligence, Anti-bribery and Anti-corruption, Business
incentives
Ethics and Compliance
Environment
Supplier (Reagent Biological reagent suppliers, high-end Supplier evaluations, technical meetings, Supply Chain Management, Environmental Management,
/ Equipment / lab equipment manufacturers, IP service regular supply agreement discussions Waste Treatment, Anti-bribery and Anti-corruption, Risk
Service) providers, environmental service providers Environmental standard coordination Management, Business Ethics and Compliance
Appendix
Waste Treatment, Water Resource Utilization, Environmental
Community and Local residents, biopharma education Community open days, online science columns,
Management, Social Responsibility, Occupational Health and
the Public organizations, media (industry coverage), environmental meetings
Safety, Scientific and Technological Ethics, Business Ethics and
environmental NGOs Media interviews
Compliance
Natural Environment Waste Treatment, Water Resource Utilization, Energy
Environmental monitoring reports, public R&D
(R&D Context) Corporate R&D park ecosystem Utilization, Environmental Management, Addressing Climate
environmental optimization proposals
Change, Scientific and Technological Ethics, R&D and Innovation
Double Materiality Issues
Based on the "Guideline No. 14 for Self-Regulation of Listed Companies — Sustainable We identified and selected 22 key material issues, including R&D and innovation,
About This Report
Development Reports (Trial)" issued by SSE and PSCI, an issue repository was digitalization and intelligence, and employee training and development, by
established and a materiality assessment was conducted. After the Company's benchmarking against international standards, industry policies, peer practices,
management reviewed and approved the annual results, they were submitted to the and corporate strategy, as well as incorporating feedback from research on eight
Message from the board of directors for deliberation. By integrating industry benchmarking results and stakeholder groups such as government regulators, customers, and employees.
Chairman and CEO
expert consultations, HitGen's ESG material issues were identified as the key focus
areas for corporate management and reporting disclosure.
About HitGen Environmental Society Governance
Identification Process
Sustainable Corporate
Waste Treatment Occupational Health and Safety Business Ethics and
Governance
Compliance
Water Resource Utilization Employee Training and
Corporate Governance Based on the Company's business characteristics, policy
Development Anti-bribery and Anti-
ESG Governance requirements, industry practices, and expert opinions, Energy Utilization corruption
relevant issues are identified and summarized in Employee Rights Protection
Business Ethics and Environmental
Preliminary Intellectual Property
Compliance accordance with PSCI standards, SDGs, industry policy Management Talent Attraction and Retention
Identification Protection
analysis, and peer benchmarking. These issues are
Addressing Climate R&D and Innovation Risk Management
categorized into environmental, social, and governance Change
dimensions to form an issue pool. Social Contribution Corporate Governance
Responsible Value Chain Scientific and Technological
Ethics
Internal and external stakeholders, including government
Supply Chain Management
and regulators, shareholders and investors, customers,
Employees and Community Diversity, Equity and Inclusion
Stakeholder and employees, are invited to complete online
Survey questionnaires. Combined with internal and external Product Safety and Quality
expert opinions, the importance of each material issue is
Data Security and Customer
Environment evaluated. Privacy Protection
Digitalization and Intelligence
Appendix
Material issues are prioritized based on questionnaire
feedback, evaluation results, and expert opinions. The
Comprehensive
Board then reviews the completeness and accuracy to
Analysis
finalize the material issue matrix.
HitGen Double Material Issues Matrix
High
About This Report
Occupational Health and Safety
R&D and
Waste Treatment Innovation
Employee Rights Protection
Message from the
Chairman and CEO
Environmental Management Environmental
Talent Attraction
About HitGen and Retention
Society
Impact Materiality to HitGen Water Resource Utilization Product Safety and Quality
Employee Training
and Development
Sustainable Corporate
Governance
Governance Data Security And Customer
Corporate Governance Energy Utilization Privacy Protection Digitalization
ESG Governance
and Intelligence
Business Ethics and Social Contribution
Compliance
Intellectual Property Protection
Addressing Climate
Change
Responsible Value Chain Scientific and Technological Ethics
Anti-bribery and Anti-corruption Supply Chain Management
Risk Management
Business Ethics and Compliance Corporate
Employees and Community Governance
Diversity, Equity and Inclusion
Environment
Financial Materiality to HitGen High
Appendix Double High Materiality Financial High Materiality General Materiality
R&D and Innovation Digitalization and Addressing Climate Change Environmental Management Business Ethics and Diversity, Equity and
Talent Attraction and Intelligence Occupational Health and Data Security and Customer Compliance Inclusion
Retention Employee Training and Safety Privacy Protection Scientific and Technological Employee Rights
Development Waste Treatment Social Contribution Ethics Protection
Corporate Governance Product Safety and Quality Water Resource Utilization Supply Chain Management
Intellectual Property Energy Utilization Anti-bribery and Anti-
Protection Risk Management corruption
Business Ethics and Compliance
About This Report
HitGen has established and improved its management system for business ethics, anti-corruption, and anti-unfair competition, strengthening compliance management through
multi-dimensional measures such as fostering a culture of integrity, digital controls, internal audit, and reporting supervision.
Message from the
Chairman and CEO Anti-bribery and Anti-corruption
The Company has formulated internal policies including Code of Business Conduct
Metric Unit 2024 2025
About HitGen and Ethics, Internal Audit System, Reporting and Investigation Measure s, and Conflict
of Interest Management Measures , prohibiting acts such as commercial bribery, Anti-bribery and Corruption Training
conflicts of interest, money laundering, fraud, and insider trading. Attendances
Sustainable Corporate The Company has currently established a fraud reporting email address and hotline,
Governance Person-
clearly defining the entire process for reporting, investigation, and feedback. During Of Which: Board Directors / 6
times
Corporate Governance the reporting period, the Company received no reports related to business ethics or
ESG Governance corruption. The Company will conduct anti-fraud training annually, perform internal Person-
Of Which: Senior Management / 3
Business Ethics and audit spot checks on key suppliers each year, and carry out relevant special audits to times
Compliance reduce the risk of fraud.
Total Training Hours on Anti-corruption
Regarding whistleblower protection, the Company strictly safeguards the identity
of whistleblowers, prohibits retaliation, establishes accountability mechanisms, and
Of Which: Board Directors Hour / 24
strengthens position-specific training to mitigate whistleblower management risks. In
Responsible Value Chain
addition, the Company will initiate the development of operational-level remediation
Of Which: Senior Management Hour / 12
procedures for victims of discrimination or harassment, providing timely and effective
support by identifying and addressing the harm caused. Anti-bribery and Corruption Training
Employees and Community
Coverage Rate
Of Which: Board Directors % / 67
Environment
Of Which: Senior Management % / 30
Number of Corruption Litigation Cases
Appendix Case 0 0
Filed or Concluded
Anti-unfair Competition
About This Report HitGen has established internal policies including the conflict of interest management policy, related-party transaction policy, and regulations on fund transactions with related
parties. The Company consistently adheres to the principle of fair competition and strives to prevent any form of unfair competition practices in business activities through clear
contractual agreements.
Message from the
Chairman and CEO
About HitGen
The Company incorporates The Company strictly monitors
anti-unfair competition related-party transactions, regularly
Sustainable Corporate agreements into its business updates the list of related parties, and
Governance contracts with partners to has added an automated function to
Corporate Governance ensure fairness in commercial identify related parties in the online
activities. approval process for contract signing,
ESG Governance
thereby strengthening the supervision
Business Ethics and
Compliance and management of related-party
transactions.
Responsible Value Chain
Employees and Community
The Company regularly identifies unfair competition risks, including commercial bribery, false
advertising, and commercial defamation, across its core operations such as pharmaceutical R&D
services, client collaboration, and market expansion. Such risks are assessed and graded based
Environment on their likelihood of occurrence and potential impact. Targeted prevention and control measures
are accordingly formulated to strengthen end-to-end process management and employee
compliance training. Any emergent risks are promptly addressed to ensure compliant operations
and fair market competition.
Appendix
Metric Unit 2024 2025
Fines for Unfair Competition Practices RMB 10,000 0 0
Responsible
Value Chain
HitGen adheres to product safety and service quality,
builds a sustainable supply chain, systematically
manages all aspects of the value chain, and is
committed to collaboratively creating long-term,
comprehensive value with stakeholders.
R&D and Innovation 20
Product Liability and Customer Service 25
Digitalization and Intelligence 27
Sustainable Supply Chain 29
Contribution to the SDGs
R&D and Innovation
About This Report
HitGen systematically identifies and manages the risks and opportunities arising from technological advancements,
and is committed to creating long-term value for human health.
Message from the
Chairman and CEO
Governance
About HitGen The Company has established a systematic governance framework for R&D and innovation, and ensures effective
allocation of R&D resources and continuous output of innovative outcomes through institutionalized project review,
resource allocation, and decision-making processes.
Sustainable Corporate
Governance
The Company establishes an innovation incentive mechanism that combines short- The Company, guided by clinical and market demands, ensures efficient
Responsible Value Chain term incentives, medium- and long-term incentives such as equity incentives, and and risk-controlled R&D activities through full lifecycle management and
long-term development: key initiatives:
R&D and Innovation
Product Liability and
Customer Service
Short-term Incentive Goal Setting and Breakdown
Digitalization and
Intelligence
The Company and department levels establish quarterly and annual excellence Based on the Company's overall strategy, each department establishes annual
Sustainable Supply evaluation mechanisms, and provide special rewards to teams that achieve R&D objectives and breaks them down into each quarter, clearly defining key
Chain
innovative outcomes such as patents, publications, and technological action plans, deliverables, and timelines for each phase.
breakthroughs.
Employees and Community Equity Incentives Efficient Execution and Quality Control
The Company launches equity incentive plans at appropriate times for key Each R&D team strictly follows the established plan to carry out R&D activities,
employees and core members, with corporate performance and individual ensuring timely synchronization of critical information and resource coordination
Environment performance results as the assessment criteria. through regular mechanisms such as project progress meetings; it rigorously
controls R&D data quality to ensure the authenticity and reliability of R&D data.
Appendix Long-term Development Risk Assessment and Decision Optimization
The Company regularly organizes internal technical training and encourages Each department continuously monitors R&D projects in terms of technology,
participation in external academic exchanges and training programmes; progress, and cost, and promptly makes scientific go/no-go decisions to achieve
it relies on its postdoctoral workstation to attract and cultivate high-end optimal resource allocation and effective risk management.
talent. Outstanding operational backbone employees can access fast-track
development opportunities, and have the opportunity to be rapidly promoted to
project leadership roles with core responsibilities in R&D and innovation.
Strategy
The Company systematically identifies the key risks and strategic opportunities in the field of R&D and innovation, assesses their financial impact, and formulates response
About This Report
strategies to transform R&D investment into sustainable competitive advantages.
Message from the Issue Issue Attribute Financial Impact Response Measures
Chairman and CEO
Implement dynamic, full-process monitoring and closed-loop management for
Strategic Risk Resulting in sunk R&D investment, missing the R&D projects. See the "R&D and Innovation - Governance" section for details.
(Technical Failure or market window, affecting pipeline value and
About HitGen Implement forward-looking patent layout and risk analysis to systematically
Schedule Delay of future revenue, and potentially facing claims
R&D Projects) from collaboration partners. avoid intellectual property risks. See the "R&D and Innovation - Impacts, Risks
and Opportunities" section for details.
Sustainable Corporate
Governance Establish and implement unified R&D data management standards and
Making incorrect decisions based on inaccurate quality control processes.
Operational Risk (R&D or unreliable data may lead to a wrong R&D
Establish an internal review mechanism at critical experimental milestones to
Data Quality and direction, resulting in significant resource
Responsible Value Chain ensure the authenticity, reproducibility, and traceability of data.
Reliability Risk) waste and time costs, as well as damaging
R&D and Innovation scientific research credibility. Promote the development of laboratory information systems to reduce human
error.
Product Liability and
Customer Service R&D and
When applying AI in scientific research, strictly adhere to ethical usage
Digitalization and Strategic Risk
Innovation principles, clearly define boundaries, and resolutely prevent misuse.
Intelligence
(Scientific and May lead to biased research conclusions,
Sustainable Supply Strictly comply with regulations related to laboratory animal welfare, and
Technological Ethics compliance investigations, project termination,
Chain subject the entire process to review and supervision by the Institutional
and Compliance and legal litigation, resulting in fines, disruption
Animal Care and Use Committee (IACUC). For details, see the "R&D and
Risk (including AI of R&D , and damage to the Company's
Innovation - Impacts, Risks and Opportunities" section for details..
applications and scientific reputation and brand value.
animal welfare)) Provide ongoing scientific and technological ethics training to R&D personnel
Employees and Community
to strengthen compliance awareness.
By integrating internal and external R&D
Actively establish strategic collaborations with universities, research
Environment Strategic Opportunity resources and reducing the fixed costs and
institutions, and biotechnology companies both domestically and
(Building an risks of individual R&D projects, the Company
internationally, and expand the collaboration network by participating in
Open Innovation accelerates pipeline advancement and creates
top industry exhibitions. See the "R&D and Innovation - Impacts, Risks and
Ecosystem) new revenue streams through technology
Opportunities" section for details.
Appendix licensing, joint development, and other models.
Impacts, Risks and Opportunities
The Company effectively manages risks related to intellectual property, scientific and technological ethics, compliance, and reputation arising from R&D and innovation, and
About This Report
transforms responsible innovation practices into strategic opportunities to strengthen technological barriers and achieve long-term sustainable development.
Intellectual Property Scientific and Technological
Message from the Industry Collaboration
Chairman and CEO Management Ethics Management
The Company revised its Intellectual Property The Company strictly complies with relevant regulations The Company actively participates in industry
Management System to further optimize incentive such as the Regulation on the Administration of exhibitions and academic seminars, proactively
About HitGen and confidentiality mechanisms, with special Laboratory Animals and Laboratory Animal – Guideline sharing cutting-edge achievements and co-
additions covering the management of international for Ethical Review of Animal Welfare , and has established developing technical standards to continuously
PCT patents entering the national phase and an Institutional Animal Care and Use Committee (IACUC). promote the prosperity of open innovation and
Sustainable Corporate the termination phase. The Company has deeply It has developed internal systems and various standard collaboration ecosystems. During the reporting
Governance
integrated intellectual property management into operating procedures, including the Laboratory Animal period, the Company's collaboration with a renowned
project workflows: conducting patent searches prior Welfare and Ethics Management System, Standard international foundation remained focused on malaria
to project initiation, performing freedom-to-operate Operating Procedure for Receiving and Quarantining prevention and control, particularly targeting diseases
Responsible Value Chain
(FTO) analyses at key milestones, promptly filing Laboratory Animals, Standard Operating Procedure for caused by Plasmodium falciparum. Leveraging
R&D and Innovation patents for R&D outcomes during the development Marking and Grouping Laboratory Animals , and Standard its proprietary technology platform, the Company
Product Liability and process, and dynamically monitoring both its own and Operating Procedure for Blood Collection in Laboratory successfully identified multiple compounds exhibiting
Customer Service competitors' patent portfolios. Animals . The Company conducts annual inspections of its activity in one or more assays. These compounds
Digitalization and animal experimentation license and carries out rigorous will be further evaluated jointly with the foundation
The Company has established a multi-level review
Intelligence ethical review and supervision of all internal animal through target engagement validation, structural
process. All disclosure materials intended for external
Sustainable Supply experiments. When outsourcing animal experiments to biology studies, and structure-activity relationship
Chain publication, such as academic papers and patent
third parties, the Company carefully selects qualified analysis.
application documents, must sequentially undergo
institutions and ensures their operations comply with
review and approval by the project supervisor,
requirements of the IACUC and relevant regulations,
the intellectual property department, the legal
Employees and Community thereby minimizing animal ethics risks. Meanwhile, the
department, and the Management of the Company.
Company is conducting internal self-assessments against
This ensures that the content does not infringe upon
AAALAC accreditation standards, aiming to integrate
third-party intellectual property rights and protects
international standards into its animal management
Environment the Company's core technical secrets and commercial
practices and future planning.
interests. While actively encouraging academic
exchange and technical disclosure, the Company During the reporting period, the Company implemented
strictly adheres to the bottom line of business a "toxicity-first" strategy in its experimental design while
Appendix
ethics and compliance. During the reporting period, using its organoid platform for drug screening. In vitro
the Company did not experience any significant toxicity screening was conducted at an early stage using
intellectual property disputes. human-derived cells to identify and eliminate high-risk
compounds in advance, thereby reducing the need for
animal testing.
About This Report
Highlight Case Sustained Collaboration with the Structural Genomics Consortium (SGC) to Advance Open Science
The Company is deeply involved in the global open science initiative "Target 2035," committed to maximizing the value of open science data through open collaboration
and data sharing, and jointly accelerating the drug discovery process.
Message from the
Chairman and CEO In April SGC, in collaboration with HitGen and several industry partners, jointly In July SGC, together with 78 researchers from 30 organizations and
competition invites the community of data scientists worldwide to build DEL- Nature Reviews Chemistry . The core objective of this roadmap is
About HitGen ML models to discover hits (bioactive drug-like molecules). This initiative aims clear and ambitious: to make early-stage drug discovery faster,
to accelerate the development of research tools for human proteins, drive less expensive, and more widely accessible. As a participant in
transformative innovation in drug discovery, and pave new pathways for Target 2035, HitGen remains deeply committed to the field of drug
Sustainable Corporate future pharmaceutical R&D. discovery, taking concrete action to continuously drive large-scale
Governance innovation in early-stage pharmaceutical R&D.
Responsible Value Chain
R&D and Innovation
Product Liability and
Customer Service
Digitalization and
Intelligence
The Company actively participates in the development of industry standards.
Sustainable Supply
During the reporting period, HitGen, as a primary drafting entity, participated in the
Chain Highlight Case Participation in the 13th DEL International
formulation of the group standard Technical Requirements for Oligonucleotide Drug
Symposium
Delivery Systems .
In August 2025, the Company was invited to participate in the 13th
Employees and Community International Symposium on DNA-Encoded Chemical Libraries held in
Boston, USA. Through diverse and in-depth engagement, the Company
strengthened its technological leadership and promoted collaborative
development within the industry ecosystem. Dr. Liu Guansai, Senior Vice
Environment
President of the Research Chemistry Centre, delivered a presentation
titled "DEL Technology for the Synthesis and Discovery of Macrocyclic
Peptide Ligands," interpreting cutting-edge trends and key technological
Appendix breakthroughs in the field. By participating in this symposium, the
Company effectively showcased its technological innovations, contributing
to international collaboration and breakthroughs in drug discovery and
development.
Metrics and Targets
The Company has established a comprehensive key performance indicator system
About This Report Publication
covering resource input, inputs, outputs, and capability building. By monitoring the No. Journal Title
Date
indicators within this system, it evaluates progress toward goal attainment and
Identification of TIGAR, a direct proteomic
dynamically optimizes resource allocation and innovation strategies accordingly. 1 2025.1 Fitoterapia target associated with the hypoglycemic effect
Message from the of Berberine
Chairman and CEO
Metric Unit 2024 2025 Royal Society of DNA-encoded library technology for drug
Chemistry discovery
R&D Expenses (Funding Related to ACS Chemistry TRIM21-NUP98 Interface Accommodates
About HitGen RMB 10,000 6,732.81 7,159.41 3 2025.4
Technological Innovation) Biology Structurally Diverse Molecular Glue Degraders
Percentage of R&D Expenses in ACS Chemistry Chemically Induced Nuclear Pore Complex
% 15.77 13.62 4 2025.5
Revenue Biology Protein Degradation via TRIM21
Sustainable Corporate Frontiers in Insights into the gut-liver axis: mechanisms and
Governance
Total Count Person 406 461 5 2025.5
Pharmacology emerging therapies in hepatocellular carcinoma
R&D Team Percentage
Biomolecular Backbone resonance assignment of the
in Overall % 84.06 84.43 6 2025.6 NMR catalytic and ATP-binding domain of CpxA from
Responsible Value Chain Workforce assignments Escherichia coli
Cumulative European A deep learning model for structure-based
R&D and Innovation Number 99 130 Journal of bioactivity optimization and its application in
Domestic Invention Granted 7 2025.7
Medicinal the bioactivity optimization of a SARS-CoV-2
Product Liability and
Patents Applications Chemistry main protease inhibitor
Customer Service Number 188 244
Pending Journal of TRIM21-Driven Degradation of BRD4:
Digitalization and
Cumulative Chemical Development of Heterobifunctional Degraders
Intelligence 8 2025.7
Number 39 42 Information and and Investigation of Recruitment and Selectivity
Sustainable Supply International Granted Modeling Mechanisms
Chain Invention Patents Applications
Number 122 169 Journal of Photocatalyzed Decarboxylative B-C Couplings
Pending 9 2025.10 the American for the Synthesis of Carboranyl Amino Acids
Chemical Society and Peptides
Accumulated Software Copyright
Number 13 36 Enabling Open Machine Learning of
Employees and Community Registrations Journal of
Deoxyribonucleic Acid-Encoded Library
Trademark Rights Held Number 54 92 10 2025.10 Medicinal
Selections to Accelerate the Discovery of Small
Chemistry
Molecule Protein Binders
Number of Standards Participated
in Developing
Number / 1 Journal A positive allosteric modulator of the β1AR
Environment 11 2025.10 of Clinical with antagonist activity for catecholaminergic
Number of Investigation polymorphic ventricular tachycardia
Times 4 2
IPR Compliance Sessions Held Model-Assisted Process Optimization for
Training1 Number of 12 2025.10 ACS Omega Trivalent Ligand-siRNA Conjugation via CuAAC
Appendix Person-times / 200 Click Chemistry
Participants
Journal of Discovery of potent and selective inhibitors
The Company published 14 scientific and peer-reviewed papers in 2025 in Medicine action
authoritative journals including the Journal of the American Chemical Society ,
Synthesis of DNA-Encoded Bicyclic Peptides
focusing continuously on cutting-edge fields such as drug discovery and chemical Bioconjugate
Chemistry
biology to contribute to scientific research and innovation. Condensation Reaction
Data includes only Chinese mainland. 24
Product Liability and Customer Service
About This Report
HitGen implements a quality management system covering the entire lifecycle, engages in responsible customer engagement practices, strictly adheres to product safety
requirements, and continuously improves service quality to strengthen customer trust and drive the long-term development of both the Company and its customers.
Message from the
Chairman and CEO Product Safety and Quality
R&D Phase
The Company strictly complies with domestic and international regulations, technical The Company integrates quality risk management throughout the
About HitGen guidelines, and international standards such as Good Manufacturing Practice entire process of drug discovery and process development for small
of Medical Products (GMP) , regulations issued by the National Medical Products molecule drugs and oligonucleotide-based therapeutics, ensuring the
Administration (NMPA), guidelines of the International Council for Harmonisation of scientific rigor and safety of R&D outcomes from the outset.
Sustainable Corporate Technical Requirements for Pharmaceuticals for Human Use (ICH), ISO 9001, and ISO/
Governance IEC 17025. It has established a quality assurance system covering the entire lifecycle
of drug research, development, production, and use, ensuring that every step from
laboratory to patient is safe and controllable. HitGen and its subsidiary Hitston have Manufacturing Process
Responsible Value Chain obtained ISO 9001 Quality Management System Certification, and its analytical The Company has established an internationally aligned
testing platform for innovative drug research and development has received CNAS production and quality control system for special products such
R&D and Innovation
accreditation. as oligonucleotide active pharmaceutical ingredients, covering the
Product Liability and
entire process from quality assessment of critical starting materials,
Customer Service
real-time monitoring and optimization of manufacturing process
Digitalization and
Intelligence
parameters, to finished product testing and release, ensuring that
products meet predefined critical quality attributes. The Company
Sustainable Supply
Chain utilizes advanced analytical technologies such as high resolution
mass spectrometry and ultra performance liquid chromatography to
comprehensively characterize product structure, purity, and impurity
profiles, guaranteeing the quality consistency and uniformity of each
Employees and Community
batch of product.
The Company's product safety and quality department is fully responsible for
establishing and operating the quality management system, regularly conducting
Environment internal audits and external inspections. It achieves early identification through the Safety Monitoring
establishment of a multi-dimensional, forward-looking risk early warning system, while The Company has established a comprehensive pharmacovigilance
also establishing an emergency response mechanism to ensure rapid and effective system to systematically monitor the safety information of
handling when risks occur. investigational medicinal products, timely collect, evaluate and
Appendix
manage adverse drug reaction reports, and effectively safeguard
Metric1 Unit 2024 2025 patient safety in medication use.
Percentage of Products Recalled due to Quality
% 0.10 0.10
Issues out of Total Products Sold/Shipped
Data includes only Chinese mainland. 25
Customer Service and Marketing Management The Company has established a standardized after-sales and complaint management
system, driving continuous improvement in service quality through a closed-loop
The Company has established a multi-dimensional customer demand response management mechanism of "root cause analysis—implementation of improvements—
About This Report mechanism and a high-standard service system, while adhering to responsible verification of effectiveness." For major or urgent incidents, the Company activates
marketing communication practices based on integrity and transparency, and is an emergency response mechanism, with senior leadership leading the formation of
committed to delivering an exceptional customer experience. special task forces to focus on resolving the issues, ensuring fundamental solutions
Message from the
and establishing a complete chain of "response—resolution—review—accountability."
Chairman and CEO
The Company adopts a dual-driven model of "offline branches + online platform" to
Customer Service enhance service efficiency.
About HitGen The Company has established a service model that combines "standardized services
with personalized solutions". In response to clients' specific target or special molecular Offline global layout Online platform support
type requirements, the Company flexibly adjusts its service strategies, offering one-
Sustainable Corporate stop solutions covering DEL, FBDD/SBDD, OBT, and TPD technology. The Company has Leveraging an
Governance established a global information technology
The Company has established a multidimensional customer insight and feedback network of R&D and project management
mechanism: innovation centers, platform to enable real-
Responsible Value Chain building a service network time project progress
that covers major global tracking, rapid allocation
R&D and Innovation
biopharmaceutical of service resources,
Product Liability and
innovation hubs. and refined after-sales
Customer Service
Systematically identify "pain points" of customers in the new quality management.
Digitalization and
Intelligence drug discovery process through technical exchanges, project
Sustainable Supply follow-ups, etc., and translate market preferences into Marketing Management
Chain directions for improving drug discovery services. Facing the diverse characteristics of global markets, the Company formulates
and implements differentiated marketing strategies, localizing and optimizing
marketing content and formats according to regional regulatory requirements,
customer maturity, channel characteristics, and cultural contexts to achieve precise
Employees and Community An efficient Frontline Conduct regular in-
Feedback communication and efficient conversion.
customer demand depth interviews
Network Regarding marketing content review, the Company has established a classification
response channel with key strategic
Environment has been established customers, management mechanism, whereby the Marketing Department conducts
to ensure that Dynamic transforming their corresponding classification approvals based on the importance and complexity of
Annual
customer technical Feedback In-depth feedback into the content, as well as the publishing channels.
requirements Mechanism Interviews inputs for internal
Appendix
are categorized, product iteration
evaluated, and and technology Metric Unit 2024 2025
responded to within upgrades.
Total Number of Complaints Received
Regarding Products and Services
Resolution Rate for Complaints
% 100 100
Regarding Products and Services
Digitalization and Intelligence
About This Report HitGen has established a systematic digitalization and intelligence governance framework and implementation roadmap, deeply integrating advanced technologies into the entire
R&D and operational process to continuously enhance the Company's overall efficiency.
Message from the
Chairman and CEO
Governance
The Company has established a systematic digitalization and intelligence governance system, formulating and implementing a series of key management systems, including
About HitGen the Information Security Management System, Information System Access Management System, Information System Master Data Management Specification, Data Document
Management Specification, IT Asset Management System and Privacy & Personal Information Protection Policy , laying a solid foundation for digitalization and intelligence.
Sustainable Corporate
Governance Strategy
The Company systematically identifies relevant risks and opportunities in the process of digitalization and intelligence, analyzes their potential financial
Responsible Value Chain impacts, and accordingly formulates and implements response measures.
R&D and Innovation
Product Liability and Issue Issue Attribute Financial Impact Response Measures
Customer Service
Clarify the boundaries of technology use, accountability mechanisms, and
Digitalization and May lead to unreliable research conclusions
Strategic Risk prohibited scenarios.
Intelligence and data bias, triggering serious regulatory
(Misuse of Artificial Embed ethical reviews during the initiation and key milestones of programs
Sustainable Supply investigations, project suspension, legal
Chain Intelligence (AI) in progress to ensure that the application of AI tools and data complies
proceedings and fines, as well as long-term
Technology and with scientific ethical standards.
damage to the Company’s scientific research
Ethical Violations) Provide ongoing AI ethics training for R&D personnel and establish internal
reputation and brand value.
reporting and verification channels for technology misuse.
Employees and Community
Resulting in impaired intellectual property value, Encrypt sensitive data and implement tiered access authorization.
Digitalization
Operational Risk (Core exposure to high compliance fines, disruption of Deploy an advanced Data Loss Prevention (DLP) system integrated with a
and
Data Leakage and R&D project timelines, customer attrition, and cybersecurity protection framework.
Intelligence
Environment Loss Risk) direct financial losses as well as a decline in Establish a regular data backup and recovery drill mechanism to ensure
market share. business continuity.
Improve the efficiency and success rate of target Strategically allocate resources to continuously enhance technology
Strategic Opportunity platforms such as DEL, FBDD/SBDD.
Appendix screening, compound design, and optimization,
(Digitalization
significantly reducing early-stage R&D costs and Build a multidisciplinary talent team with expertise in biopharmaceuticals
and Intelligence
time, accelerating pipeline advancement, and as well as digitalization and intelligence capabilities.
Technologies Enabling
thereby creating greater long-term commercial Establish pilot programs to verify the effectiveness of AI tools within a
Drug Discovery)
value. controlled scope, and then gradually scale up.
Impacts, Risks and Opportunities
The Company has established an information security Highlight Launch of the "OpenDELTM Community" professional platform to enhance
protection system based on "defence-in-depth, layered Case R&D efficiency and industry engagement through digital innovation
protection", covering four core modules: endpoint The Company has completed the development
About This Report security protection, application-layer deep defense, front- and launch of the "OpenDELTM Community". By
end access protection, and threat intelligence detection. offering three core functions—industry trend
This system achieves end-to-end security coverage insights, access to a global expert network, and
Message from the from network entry points and terminal applications to streamlined order and service management—
Chairman and CEO
personnel management, ensuring a secure environment it significantly enhances R&D personnel's
for stable business operations. The Company has formed efficiency in information access and collaboration
a professional information security team comprising convenience, strengthening the Company's
About HitGen
CISSP-certified information security experts and professional influence and ecosystem connectivity
professionals in related fields. in this vertical domain. OpenDELTM Community Website：www.opendelcommunity.com
Sustainable Corporate The Company implements classified protection and
Industry Trend Insights Access to a Global Streamlined Order and
Governance management of trade secret information. All employees,
Expert Network Service Management
partners, and other obligated parties who have access to
Through DEL Hunter, researchers The platform helps researchers Users can access product
or come into contact with trade secrets must strictly fulfill
Responsible Value Chain
can access curated updates to establish direct connections information and track order and
their confidentiality obligations. Without the Company's
and cutting-edge academic with peers worldwide, service progress in real time
written authorization, they shall not disclose, copy,
R&D and Innovation achievements in the DEL field, facilitating the exchange through their personal accounts,
transfer, or license the information to third parties in any
Product Liability and enabling them to efficiently obtain of ideas and exploration of enhancing R&D management
Customer Service
form, nor shall they use it for non-job-related purposes
critical information. collaboration opportunities. efficiency.
without authorization. We apply principles such as data
Digitalization and
Intelligence minimization, minimum necessary access, need-to-know
Sustainable Supply basis, and secure storage to the personal information of
Chain data subjects including customers, users, and employees. Metrics and Targets
Personal information shall not be collected, used,
The Company ensures precise and effective digitalization investments by continuously monitoring and managing the
shared, or transferred across borders without proper
core indicators of digitalization and intelligence, driving comprehensive improvements in operational efficiency and
authorization.
Employees and Community innovation capability.
Metric Unit 2024 2025
Environment Number of Information Security Training
Times 17 25
Sessions Conducted
Number of Participants in Information
Person 405 479
Appendix
Security Training
Percentage of Employees Trained in
% / 87.73
Information Security
Number of Information Security Incidents Case 0 0
Number of Customer Privacy and
Case 0 0
Information Security Breach Incidents
The Company has obtained the ISO 27001 Information Security
Management System Certification 28
Sustainable Supply Chain
About This Report HitGen integrates ESG principles into the entire process of supply chain management, emphasizing equal
treatment and collaborative growth with small and medium-sized enterprises, and enhancing the overall
resilience and sustainable value of the supply chain by building a fair and trustworthy network of partners.
Message from the
Chairman and CEO
Supply Chain Management
About HitGen
The Company has established and implemented Bidding and Procurement Supplier Admission
Management Measures, Measures for the Management of the Supplier Pool , and
The Company has established a systematic and multi-level supplier onboarding
Supplier Code of Conduct , adhering to the principles of fairness, openness and
Sustainable Corporate mechanism, covering qualification document review, comprehensive market research,
Governance impartiality to ensure that all suppliers enjoy equal cooperation opportunities.
and trial period evaluation. Under equal conditions, the Company gives priority
to suppliers that have obtained certifications such as ISO 14001 Environmental
Procurement Management Management System Certification to manage environmental and social risks in
Responsible Value Chain
the supply chain. During the reporting period, long-term suppliers with ISO 14001
During the reporting period, the Company conducted a special audit on its
R&D and Innovation certification accounted for 23%.
procurement operations, focusing on "procurement system compliance, supplier
Product Liability and onboarding and management, employee-designated procurement, and price For suppliers of special categories (e.g., hazardous chemicals, controlled substances),
Customer Service
comparison" as the core themes. It systematically reviewed information from over the Company has established specific admission standards and management
Digitalization and 200 suppliers with stratified sampling by transaction amount and randomly checked requirements. During the admission process, the Company strictly reviews their
Intelligence
Sustainable Supply
implementation of the procurement system, identified potential risks and weaknesses penalties. In the contract and delivery stages, safety responsibilities, transportation
Chain
across 11 key control points, and provided specific optimization recommendations, regulations, and emergency response requirements are clearly defined, and the
effectively enhancing the standardization of procurement processes and the level of "dual-person acceptance" system is strictly enforced. The Company also requires
risk prevention and control. these suppliers to regularly conduct safety training and safety drills to jointly mitigate
Employees and Community operational risks.
Supplier Anti-Corruption
The Company requires all suppliers entering the database to sign an integrity
Environment commitment. Any entity in the candidate pool or its practitioners found engaging in
dishonest behavior will have collaboration immediately suspended. The Company
strictly requires all relevant personnel to maintain integrity, self-discipline, and
Appendix confidentiality of business secrets, and will strictly pursue accountability for any
illegal or disciplinary violations. The Procurement Department is responsible for
the management of the candidate pool, while the Internal Audit Department and
General Manager's Office are responsible for internal audit and supervision, including
investigating internal violations and handling related complaints. During the reporting
period, the Company conducted training on integrity and standardized procurement
workflows for all members of the procurement department.
Supply Chain Risk Management The evaluation results are directly applied to the dynamic management of supplier
classification.
The Company systematically identifies key risks, including supply disruptions and
About This Report quality fluctuations, and conducts graded assessments based on their likelihood and Score Rating
Company Measures
potential impact, thereby formulating corresponding mitigation measures. Range
得分范围 Results
评级结果 公司措施
Priority order allocation, extended contract
Message from the
Chairman and CEO
Localized Inventory Stocking Score ≥ 90 points Excellent terms, and inclusion in the strategic
collaboration partner list.
The Company actively develops local qualified suppliers for commonly used Provide timely feedback identified in the
critical raw materials and requires suppliers to maintain reasonable inventory Qualified annual performance review to promote its
About HitGen points
levels for frequently used materials. improvement.
Investigate the reasons and, upon internal
Score < 80 points Unqualified company approval, remove from the supplier
Sustainable Corporate database.
Governance
Domestic Substitution
During the reporting period, the Company initiated a special social responsibility
For reagents, consumables, and equipment with high import dependency,
assessment for certain suppliers, with evaluation indicators covering environmental
Responsible Value Chain unstable supply, or high prices, the Company actively promotes the development,
responsibility, labor and human rights, business ethics, sustainable procurement, and
qualification, and introduction of domestic suppliers, gradually and rationally
R&D and Innovation information security.
increasing the proportion of domestic supply. Domestic substitution has been
Product Liability and
Customer Service incorporated into the procurement department's performance evaluation system.
Digitalization and
Digital Procurement
Intelligence
The Company actively promotes the digitalization and intelligence of supply chain
Sustainable Supply
Supply Network Optimization management by establishing a unified online supplier management platform, enabling
Chain
the entire process—from registration and qualification approval to performance
evaluation and blacklist management—to be conducted online and data-driven.
For commonly used critical raw materials such as nucleic acid synthesis reagents
and monomers, and bulk solvents, the Company implements a “single primary,
Employees and Community Online archiving and organization of supplier qualification documents to
multiple backups” supply strategy.
mitigate compliance and supply risks.
Environment The digitization of procurement and collaboration processes—such as
inquiry, quotation, ordering, material issuance, and account reconciliation—
effectively enhances efficiency and transparency.
Supplier Evaluation and Performance
Appendix
We conduct annual comprehensive evaluations for all business partner suppliers,
covering key dimensions such as quality, delivery, price, and collaboration. For critical Build a supplier management data dashboard to help managers monitor
suppliers, we carry out regular on-site inspections, focusing on their production sites, supplier structure, performance, and risks in real time, providing support
quality control, and safety management. for decision-making.
Metric Unit 2024 2025
About This Report Total Number of Suppliers Company 990 691
Number of Suppliers by Region
Message from the Wherein: Chinese Mainland Company 560 248
Chairman and CEO
Wherein: Chinese Hong Kong, Macao, And Taiwan Company 2 0
About HitGen Wherein: Overseas Company 428 443
Supplier Integrity Agreement Signing Rate1 % / 99
Sustainable Corporate
Governance Supplier Certification - Number of Suppliers with ISO 450012 % / 21
Supplier Certification - Number of Suppliers with ISO 140013 % / 23
Responsible Value Chain
Supplier Certification - Number of Suppliers with ISO 90014 % / 42
R&D and Innovation
Supplier Certification - Number of Suppliers with Other
Product Liability and % / 11
Certifications5
Customer Service
Digitalization and
Intelligence
Sustainable Supply
Chain
Equal Treatment for Small and Medium-Sized Enterprises
The Company actively supports the development of small and medium-sized enterprises, aiming to maintain the proportion of small and micro enterprises within its supplier
Employees and Community pool at no less than 5% in principle, and strictly adheres to contractual payment terms to promote coordinated development and stability across the industrial chain. During the
reporting period, the proportion of small and micro enterprises in the supplier pool was 7%.
Environment Metric Unit 2024 2025
Amount of Overdue Payments to Small and Medium-Sized Enterprises RMB 10,000 / 0
Appendix
Data includes only Chinese mainland. Data includes only Chinese mainland. Data includes only Chinese mainland.
Data includes only Chinese mainland. Data includes only Chinese mainland.
Employees
and
Community
HitGen regards employees as the core driving force
for sustainable development and communities as
important partners for mutual growth. Adhering to
a responsibility philosophy centred on people and
dedicated to giving back to society, HitGen promotes
employee growth and community co-development.
Employee Rights 33
Employee Well-being 36
Talent Attraction and Retention 38
Employee Training and Development 41
Occupational Health and Safety 45
Social Contribution 48
Contribution to the SDGs
Employee Rights
About This Report HitGen strictly adheres to the baseline of compliant employment, advocates a diverse and inclusive culture, respects the equal rights and personal dignity of every employee, and
builds a fair, healthy, and sustainable employee rights protection system.
Message from the
Chairman and CEO Compliant Employment
The Company complies with the Labour Law of the People's Republic of China , The Company adheres to the principles of voluntariness, fairness, and non-
the Labour Contract Law of the People's Republic of China , and other applicable discrimination in recruitment and hiring, treating all employees equally regardless
About HitGen
regulations, as well as internal policies such as the Employee Handbook , to ensure of race, color, gender, nationality, age, religious belief, marital status, disability, or
standardised management of employees throughout their entire employment any other factor unrelated to the job performance. The Company upholds a non-
lifecycle. discriminatory management approach in job posting, CV screening, interviews, and
Sustainable Corporate
Governance promotions, avoiding any unfair treatment or discrimination due to personal biases.
The Company has established a three-tier management structure centered on the
During the reporting period, the Company achieved a 100% compliance rate in non-
Human Resources Department, with collaborative participation from business units
discriminatory recruitment practices.
and management. As the organising and executing hub for recruitment, the Human
Responsible Value Chain Resources Department provides end-to-end professional support and ensures
compliance oversight across the entire process. Business units, as initiators of talent
demands and assessors of professional competencies, are deeply involved in the
Employees and Community selection process. Management is responsible for the final approval of key positions
Job CV
and the strategic oversight of recruitment policies. Interviewing
Posting Screening
Employee Rights
Employee Well-being
Talent Attraction and
Retention
Prohibition of Child Labour Prohibition of Forced Labour
Prohibit Screen based on Conduct structured
Employee Training discriminatory job requirements interviews, and have
and Development The Company opposes any form expressions, and use regarding educational at least two business
The Company prohibits the
Occupational Health of forced labour.Upon issuing a neutral and objective background, major, interviewers complete
employment of minors under
and Safety written offer of employment, the
the age of 18 and sets a goal of descriptions. competencies, scoring and one
Social Contribution Company clearly communicates experience, and HR representative
zero child labour employment.
in writing the key terms such qualifications. complete evaluation.
During the recruitment process,
as position, location, and
the Company verifies the age of
compensation, and provides a
job candidates, and completes
standardised labour contract
Environment necessary checks on age
document compliant with the During the reporting period, the Company had no human
information prior to onboarding
Labour Contract Law of the rights or labour-related violations, and the compliance rates
before proceeding with
People's Republic of China , for statutory working hours and overtime approval were
employment procedures.
Appendix containing no hidden coercive,
punitive, or debt-binding clauses. 100% .
Number of employees
About This Report 546 persons
By Employee Type By Position Level By Gender
Message from the
Chairman and CEO
About HitGen
Sustainable Corporate 2024 2025 2024 2025 2024 2025
Governance
Full-time 474 537 Senior Management 9 10 Male 264 306
Responsible Value Chain Middle Management 41 28 Female 219 240
Part-time 9 9
Primary Management 130 54
Employees and Community General Staff 303 454
Employee Rights
Employee Well-being By Educational Degree By Age By Region
Talent Attraction and
Retention
Employee Training 2025 2025 2025
and Development
Occupational Health
and Safety 2024 2024 2024
Social Contribution
Ph.D 82 92 ≤ 30 212 248 Chinese Mainland 407 461
Environment
Master 153 193 31-50 237 251 Chinese Hong Kong,
Macao and Taiwan 1 2
Bachelor 218 231 ≥ 51 34 47 Overseas 75 83
Appendix
Other 30 30
Diversity, Equity, and Inclusion
The Company adheres to a talent philosophy of diversity and inclusion, actively
About This Report
promoting unity and integration within teams. It is committed to respecting the
fundamental rights, including cultural dignity, of external stakeholders such as partner
organizations, suppliers, and business-connected communities.
Message from the
Chairman and CEO The Company respects female employees and safeguards their equal rights. The
Company has established the Code of Business Ethics, clearly stating its commitment
to upholding civilised and respectful values, fostering a positive, healthy, and uplifting
About HitGen work environment, resolutely preventing any form of harassment, and prohibiting
physical or verbal violence against individuals. In the event of any incidents related
to discrimination or harassment, any individual may report or raise concerns with the
Sustainable Corporate Company. The Company will conduct necessary internal and external investigations
Governance while protecting the whistleblower, take management actions based on findings, and
provide support to the affected individuals.
Responsible Value Chain The Company safeguards the equal employment rights of employees with disabilities.
After evaluating the professional skills, physical conditions, and other comprehensive
abilities of employees with disabilities, and with their full consent, the Company
arranges suitable positions for them. The Company continuously improves reasonable
Employees and Community accommodations such as accessible facilities and job adjustments.
Employee Rights
Employee Well-being
Talent Attraction and During the reporting period, the Company had
Retention
Employee Training employees with disabilities.
and Development
Occupational Health
and Safety Metric Unit 2024 2025
Social Contribution
Percentage of Women in Senior
% 22.22 10.00
Management
Total Number of Employees with
Person 6 7
Disabilities
Environment
Total Number of Veteran Employees Person 7 7
The Company also emphasizes the principles of voluntariness, fairness, and non-
Appendix
discrimination in external collaboration, and commits to respecting the fundamental
rights, including cultural dignity, of external stakeholders such as partner
organisations, suppliers, and business-connected communities.
Employee Well-being
HitGen adheres to a people-oriented approach, continuously enhancing employees' sense of belonging and fulfilment through competitive compensation and benefits, open
About This Report communication channels, and thoughtful employee well-being, fostering a warm and trusting work environment.
Message from the
Chairman and CEO Compensation and Benefits
The Company strictly complies with relevant laws and regulations such as the Labour Law of the People's Republic of China and the Social Insurance Law of the People's Republic
of China , clearly defines specific standards for salary calculation and benefits distribution, establishes a comprehensive compensation and benefits system, and fully safeguards
About HitGen
employees' rights and protection regarding compensation and benefits.
Sustainable Corporate Compensation Management
Governance Benefits System
The Company adheres to the principle of equal pay for equal work, and
fairly compensates employees based on positions, individual performance, The Company has established a "statutory benefits + special benefits"
and competencies. The Company has established a compensation system
Responsible Value Chain system, clarifying subsidy standards to cover compliance requirements
that balances market competitiveness with internal equity, regularly and diverse needs, comprehensively supporting employees' work and life.
monitors industry compensation trends and internal/external compensation
indicators to assess external competitiveness and internal fairness, aiming
Employees and Community to provide employees with compensation that is both market-competitive Statutory Benefits
and sufficient to meet a decent standard of living (i.e., living wage), while
Employee Rights The Company strictly complies with relevant laws and
ensuring that employees performing equivalent work receive equal pay.
Employee Well-being regulations by paying social insurance and housing funds
The Company adopts a "fixed compensation + variable incentives" model,
Talent Attraction and for employees to safeguard their basic rights, implementing
where fixed compensation includes base salary and position-based salary,
Retention standards as prescribed to ensure compliance and meet
ensuring employees' basic income. Variable incentives include performance
Employee Training regulatory requirements.
and Development bonuses and project commissions, the distribution of which is directly linked
Occupational Health
to the Company's business performance, individual performance outcomes,
and Safety position value, and scope of responsibilities. Supplementary Benefits
Social Contribution
The Company provides meal allowance, annual health
Women Support Initiatives checkups, holiday benefits, and clearly defined subsidy
standards for marriage, childbirth, and hospitalisation,
The Company values the physical and mental well-being of female
comprehensively covering employees' work and life needs.
Environment employees, organises Women's Day events and team-building activities
annually, implements maternity leave, breastfeeding leave, and paternity
leave policies, provides maternity subsidy to new parents, and has
established a nursing room. In 2025, HitGen had 7 employees on maternity
Appendix leave, 6 employees on breastfeeding leave, and 6 employees on paternity
leave.
Employee Communication Employee Care
The Company has established a multi-level employee communication mechanism, To support work-life balance and the physical and mental well-being of employees,
covering channels such as the CEO roundtable, fortnightly department meetings, the Company regularly organises a variety of cultural and sports activities as well
About This Report employee satisfaction surveys, onboarding and exit interviews, and the staff and as external exchanges. During the reporting period, the Company held 123 internal
workers' representative congress. It defines the frequency and feedback processes events, including 28 badminton events, 59 basketball events, and 36 table tennis
for each type of communication, ensuring that employee opinions are promptly events, and conducted 13 external events covering activities organized by the High-
Message from the conveyed and addressed. Tech Zone, industry events, and Bio-Town enterprise club events.
Chairman and CEO
Communication
Frequency Main Content
mechanism
About HitGen Newly hired employees (on probation),
regular employees, and mid-level
management staff each held direct
CEO Roundtable Quarterly
discussions with the CEO, and
Sustainable Corporate improvement measures were developed
Governance based on the feedback received.
Department
Discussion of work content and an open
Responsible Value Chain Fortnightly Fortnightly
session for employees to provide feedback.
Meeting
The Human Resources Department
Current Employee
Employees and Community
Regularly maintains communication with employees
Interview
to understand their employment status.
Employee Rights
The Human Resources Department
Employee Well-being
Exit Interview In real time communicates with each departing
Talent Attraction and employee to collect feedback.
Retention
Employee Training
and Development
Occupational Health Satisfaction Survey Appeal Channels
and Safety
Social Contribution The Company conducts an The Company has established employee
annual employee satisfaction appeal channels. Employees who encounter
survey, distributing questionnaires unfair treatment may file an appeal with
anonymously via office software their department head or submit a written
to assess organisational health, appeal to the Human Resources Department, Various company event activities
Environment
gain insights into employee needs, which will respond within three working
and drive effective actions. The days. The Company also provides both
overall score for the 2025 employee online and offline appeal channels, including In addition, the Company offers flexible work arrangements, allowing employees to
Appendix satisfaction survey was 4.45, an the CEO suggestion box, HR department apply for remote or flexible working when encountering extreme weather or special
increase of 0.4 points compared email, physical suggestion boxes located in circumstances, ensuring safe work operations.
to the 2024 employee satisfaction company office buildings, and the reporting
score. email (internal.audit@HitGen.com).
Talent Attraction and Retention
About This Report HitGen adheres to talent-driven development, fostering a supportive environment that values and empowers talent,
enabling mutual empowerment between employees and the Company.
Message from the
Chairman and CEO
Governance
The Company has established clear management guidelines for the entire process of talent acquisition, development, and
About HitGen
retention, and strictly enforces specialised systems such as the Internal Job Competition Policy .
The Company's talent management structure consists of the Company's management, the Human Resources Department,
Sustainable Corporate the Trade Union, the Staff and Workers’ Representative Congress, and various business departments, jointly forming a
Governance collaborative management system.
Responsible Value Chain
Governance Level Responsible Entity Core Responsibilities
Employees and Community
Employee Rights Decision-making
Company Management, Trade Union, and Responsible for strategic decision-making, policy approval,
Employee Well-being and Supervision
Staff and Workers' Representative Congress and democratic supervision
Talent Attraction and Level
Retention
Employee Training
and Development
Occupational Health
Policy
and Safety
Formulation and
Social Contribution Human Resources Department Responsible for system construction and daily operations
Implementation
Level
Environment
Implementation
Responsible for the direct execution of employee
and Feedback Heads of various business departments
management and providing care and feedback
Level
Appendix
Strategy
Based on business continuity assessments and talent reviews, the Company systematically identifies risks and opportunities related to talent attraction and retention, analyses
About This Report the associated financial impacts, and develops corresponding mitigation measures.
Issue Issue Attribute Financial Impact Response Measures
Message from the
Chairman and CEO Loss of key talent may lead to delays in R&D and Ensure compensation competitiveness for key positions and stabilise
Operational Risk (Key the core talent team.
innovation projects, missed business opportunities,
Position Talent Loss
loss of knowledge assets, and increased costs for re- Establish a backup talent programme to reduce the risk of business
Risk)
About HitGen recruitment and training. disruption caused by staff turnover.
Talent Strategic Opportunity A well-developed talent pipeline reduces the risk of Establish a talent development map to systematically plan talent
Attraction (Talent Pipeline critical position vacancies, shortens the job adaptation sourcing, development, and deployment.
Sustainable Corporate and Development period, and enhances organisational effectiveness Establish a multi-track advancement system to provide employees
Governance Retention Opportunity) and employee retention rates. with clear career development paths.
Operational Improving new employee retention rate can reduce Establish a buddy system to help new employees integrate into their
Opportunities (New recruitment costs and training investment, and roles.
Responsible Value Chain
Employee Onboarding shorten the time for new employees to become Establish a buddy system allowance to incentivise effective mentoring
and Retention) productive. and guidance.
Employees and Community
Impacts, Risks and Opportunities
Employee Rights
Employee Well-being The Company has established a management framework centred on the full lifecycle of talent management, structured around three dimensions: talent acquisition, integration
training, and talent retention.
Talent Attraction and
Retention
Employee Training
and Development
Talent Acquisition Integration Training Talent Retention
Occupational Health
and Safety The Company has established diverse To stabilise the new employee workforce, the The Company continuously enhances
Social Contribution external recruitment channels, fully Company has established a new employee employee satisfaction and sense of
incorporating diversity considerations retention mechanism and implemented belonging by establishing a comprehensive
during the hiring process, continuously the buddy system. Buddies are primarily compensation and benefits system,
expanding talent acquisition pathways, responsible for developing mentoring plans, multi-level employee communication
and attracting outstanding individuals providing work guidance, and conducting mechanisms, and employee well-being
Environment
from varied backgrounds. During the daily communication with new employees. programs. For details, please refer to the
reporting period, the Company hired 115 During the reporting period, the Company's "Employee Well-being" section.
new employees. new employee retention rate during the
Appendix probationary period was 89%.
Metrics and Targets
About This Report The Company uses employee turnover rate as a core indicator for talent attraction and retention, regularly conducts data collection and analysis, and continuously optimizes
talent management strategies. During the reporting period, the Company set a target to keep the overall talent turnover rate below 15%, and the actual turnover rate was 11.36%,
achieving the established goal.
Message from the
Chairman and CEO
Metric Unit 2024 2025
About HitGen Employee Turnover Rate % 9.32 11.36
Senior Management % / 30.00
Sustainable Corporate Middle Management % / 14.29
Governance
By Position Level
Primary Management % / 5.56
Responsible Value Chain General Staff % / 11.45
Male % 10.61 13.07
By Gender
Employees and Community Female % 7.76 9.17
Employee Rights
≤ 30 % 8.49 13.71
Employee Well-being
Talent Attraction and By Age 31-50 % 10.13 9.16
Retention
Employee Training ≥ 51 % 8.82 10.64
and Development
Occupational Health Chinese Mainland % 9.83 12.36
and Safety
Social Contribution By Region Chinese Hong Kong, Macao and Taiwan % 0 0
Overseas % 6.67 6.02
Environment
Appendix
Employee Training and Development
About This Report HitGen values employee capability enhancement and
career growth, supporting sustainable development Governing Entity Core Responsibilities
and job competency through systematic employee
Message from the training and development programs and clear career
Chairman and CEO
advancement pathways.
Responsible for approving the annual training plan, annual training
CEO
budget, and ad hoc training matters.
Governance
About HitGen
The Company implements special systems such as the
Employee Promotion Management Policy to promote Professional Responsible for the development and implementation of the annual
Committees training plan for R&D employees.
Sustainable Corporate standardized full-process management of employee
Governance training and development. The Company has
established and enforces the Performance Incentive
System , clearly defining that performance objectives Responsible for organizing and implementing internal business training
Responsible Value Chain follow the SMART principle. It adopts a comprehensive within the department.
evaluation process combining quantitative and Responsible for the selection and assignment of training personnel.
qualitative assessments through a 100-point scoring Departments Responsible for the development of professional training materials and
Employees and Community
system and bonus/deduction for key events. Based on teaching.
the rating results, employees are managed through
Assist the specialized committee or the Human Resources Department in
Employee Rights classification, supported by a grievance mechanism conducting assessments for relevant professional training.
Employee Well-being and performance improvement plans to ensure
Talent Attraction and fairness in evaluation and effective support for
Retention employee development.
Employee Training
Responsible for the Company's training planning and the development of
and Development The Company’s training management governance annual plans.
Occupational Health structure is jointly constituted by the CEO, the Responsible for the formulation and revision of training management
and Safety Human Resources Department, various professional measures.
Social Contribution committees, and departments. Responsible for the organization, review, and management of training.
Human
Responsible for the preparation, review, management, and use of
Resources
training funds.
Department
Responsible for evaluating training effectiveness, registering trainees,
and statistical analysis and archiving of training records.
Environment
Guide and inspect the training work carried out by various departments
and subsidiaries.
Responsible for the organization and management of training instructors.
Appendix
Strategy
The Company's system identifies risks and opportunities related to employee training and development, analyzes the associated financial impacts, and formulates response
About This Report
measures accordingly.
Issue Issue Attributes Financial Impact Response Measures
Message from the
Chairman and CEO Operational Risk (Risk Skills shortages may lead to reduced R&D and
Conduct an annual training needs survey, develop a training plan
of Mismatch Between innovation efficiency, project delays, product quality
covering multiple categories such as management, professional, and
Employee Skills and issues, and increased costs for training and error
safety, and implement training effectiveness evaluation.
About HitGen Job Positions) correction.
Establish three promotion methods: annual merit-based promotion,
Systematic talent development can enhance project-based promotion, and competitive promotion.
Employee Strategic Opportunity
employee performance, shorten job adaptation
Sustainable Corporate Training and (Talent Development Established a 15-level career advancement system across three
periods, and strengthen organisational capabilities
Governance Development Opportunity) tracks: management track, technical track, and professional support
and competitiveness.
track.
Operational
Responsible Value Chain Opportunities
Internal job posting can reduce external recruitment The internal job posting application is open throughout the year,
costs, shorten time-to-fill cycles, and improve and candidates will be hired after interviews and job-fit assessment
(Internal Talent
employee retention rates and satisfaction. periods.
Mobility)
Employees and Community
Employee Rights Impacts, Risks and Opportunities
Employee Well-being The Company has established a talent development map to uniformly plan talent development initiatives across four stages: talent sourcing, cultivation, assessment, and
Talent Attraction and deployment.
Retention
Employee Training
and Development Talent Sourcing Talent Development Talent Assessment and Deployment
Occupational Health
Management Professional Knowledge Internal Trainer
and Safety University Selection Training Training Training
Promotion from
Recruitment
Social Contribution Salary Grade
Campus
Spark Advanced Trainer Level 4 to Level 6
Competency Model for R&D
Recruitment
Functional Roles
Programme Skills
Computational
Competency Model for
Committee
Development
Assessment
Postdoctoral
Analytical &
Chemistry
Evaluation
Sciences
Intermediate Promotion from
Biology
Quality
University-Industry Quenching
Trainer Skills Level 7 to Level 8
Managers
Programme
Personnel
Collaboration
Environment
Lighthouse Junior Trainer Skills
Benchmarking Programme Promotion from
Programme
Companies Expert
Recruitment
Level 9 to Level 10
Broadband Committee
Social
Appendix Compensation Evaluation
General Competencies and Workplace Professionalism Promotion from
Evaluation Criteria Level 11 to Level 12
Standard Forms New Hire Training (Campus & Social Recruitment)
Full-Chain Talent Development Map 42
Employee Career Development
The Company establishes a clear career
About This Report
Highlight Case On-the-Job Postgraduate and High-Level Talent Development Program
development path, sets up a multi-channel
The Company provides educational advancement and high-level talent development support for R&D key promotion system and diversified advancement
personnel and mid-to-senior level managers, offering specialized development programs such as part-time methods, providing different types of
Message from the postgraduate and doctoral programs, university-based entrepreneur academies for professional growth, employees with sustainable career growth
Chairman and CEO and overseas advanced studies, while standardising the requirements regarding application eligibility, opportunities.
tuition funding, and service period management.
About HitGen Vertical development
Employee Training
The Company is gradually establishing a comprehensive training management system covering needs assessment, Establish three career tracks – management
Sustainable Corporate
Governance plan approval, process control, effectiveness evaluation, and annual review. track, technical track, and professional support
track – to provide employees with a clear
Core Content Responsible Entity
vertical promotion path.
Responsible Value Chain Requirement
Departments submit annual training requirements, and the Human
Departments,
Research
Human Resources
and Analysis Resources Department conducts a training needs survey. Horizontal flow
Department
Employees and Community Vacant positions are open to internal
Plan The Human Resources Department formulates the annual training Human Resources employees, enabling cross-role and cross-
Employee Rights Approval
plan and budget, which is implemented upon approval by the CEO. Department, CEO functional horizontal mobility and career
Employee Well-being
development.
Talent Attraction and
Retention
Process The Human Resources Department supervises and controls the
Employee Training Human Resources
Control and implementation of training, and promptly coordinates solutions when Promotion method
and Development Management Department
issues arise.
Occupational Health
and Safety The Company offers three promotion
Social Contribution pathways: annual merit-based promotion,
Effectiveness Trainees shall complete the learning outcome evaluation form and Participants, Human
Evaluation project-based promotion, and competitive
submit it to the Human Resources Department for record. Resources Department
promotion, which are determined based
on annual performance appraisal results,
outstanding contribution performance, and
Environment Summarize the implementation status of the annual training plan, Human Resources
Annual Review internal job vacancies together with post-
and prioritize unfinished items for the following year. Department probation assessment results, respectively.
Appendix
Human Resources
Feedback The review results will be incorporated into next year's requirements
Closed Loop Department, All business
research to establish a continuous improvement mechanism.
departments
Metrics and Targets
About This Report During the reporting period, the Company organised various types of training, including 12 company-level
professional training sessions such as HitGen Forum and HitGen Lecture Hall, 25 information security training
sessions, 6 safety drills, and 6 new employee onboarding training sessions. In addition, departments across the
Company organised internal training focused on specialised areas and projects.
Message from the
Chairman and CEO
Metric1 Unit 2024 2025
About HitGen
Percentage of Employees Trained % 100 100
Training Sessions Conducted Session 175 160
Sustainable Corporate
Governance Total Investment in Training RMB 10,000 221 102.3
Total Employee Training Hours Hour 4,255.00 4,143.00
Responsible Value Chain
Male Hour 2,372.00 2,362.00
By Gender
Female Hour 1,883.00 1,781.00
Employees and Community
Senior Management Hour 1,324.80 1,103.12
Employee Rights
Middle Management Hour 652.80 543.57
Employee Well-being
By Position Level
Talent Attraction and Primary Management Hour 878.40 731.42
Retention
Employee Training General Staff Hour 1,399.00 1,764.90
and Development
Occupational Health Per Capita Training Duration for Employees Hour 10.37 8.83
and Safety
Male Hour 10.63 8.91
Social Contribution
By Gender
Female Hour 10.06 8.73
Senior Management Hour 147.20 122.57
Environment Middle Management Hour 26.07 24.71
By Position Level
Primary Management Hour 7.20 17.01
Appendix General Staff Hour 5.48 4.47
The data covers Chinese mainland only.
Any discrepancies between the total employee training hours and the aggregated training hours by gender and employee type are due to rounding. 44
Occupational Health and Safety
About This Report HitGen always places employee health and safety first, establishing a prevention-
oriented, continuously improving occupational health and safety management system
to strengthen the foundation of safe development. Governance Responsible Core
Message from the Level Entity Responsibilities
Chairman and CEO
Occupational Health and Safety Management
System Decision-making Responsible for the management of
About HitGen Safety
The Company complies with laws and regulations such as the Law of the People's and Supervision the occupational health management
Committee
Republic of China on Prevention and Control of Occupational Diseases and the Work Level system
Safety Law of the People's Republic of China , and implements specialized systems Responsible for establishing
Sustainable Corporate
Governance including the Occupational Health Management System, Work Safety Responsibility occupational health records, conducting
System, Hazardous Chemicals Management Specifications, Laboratory Safety occupational health examinations
Professional EHS for employees, managing health
Operating Procedures , and EHS Target Management and Assessment Procedures .
Execution Layer Department surveillance records, performing routine
Responsible Value Chain It has established a full-process management system covering occupational health
monitoring of occupational hazard
examinations, hazard factor monitoring, protective facility management, and accident
factors, and managing occupational
emergency response. The Company also pays close attention to employees' physical
health protection facilities
and mental health, improves work environment safeguards, and ensures controllable
Employees and Community physical and mental safety during the labor process. It respects the labor rights and Human Responsible for handling work injury
Employee Rights occupational health of external stakeholders Resources insurance and providing support for
Employee Well-being such as collaborating organizations, suppliers, Department occupational health training
Talent Attraction and
and business-related communities.
Retention Responsible for ensuring funding for
The Company has established a safety occupational health examinations,
Employee Training committee as the highest decision- Collaborative Finance
and Development diagnosis and treatment of occupational
making body for the occupational health Support Layer Department
diseases, hazard factor testing, and
Occupational Health
management system, with the EHS protective equipment and facilities
and Safety
department serving as the core professional
Social Contribution Responsible for procuring protective
execution unit, and various departments
Purchasing equipment and labor protection
collaborate through defined responsibilities Department supplies that meet occupational health
to form a comprehensive governance requirements
structure covering decision-making,
Responsible for formulating occupational
Environment implementation, supervision, and execution.
health operating procedures related
During the reporting period, the Company Business
Each to the department's production
and its subsidiary Hitston obtained ISO 45001 Implementation
Department and business activities, which shall
occupational health and safety management Level
Appendix ISO 45001 Occupational Health be uniformly managed by the EHS
system certification. The Company has set a and Safety Management System Department
quantitative target to maintain 100% medical Certification
insurance coverage by 2026.
Occupational health and Safety Management Measures
The Company has established a regular safety management mechanism covering key areas such as hazardous chemicals, fire and explosion prevention, and biosafety, focusing
on risk identification, hazard investigation, and emergency management.
About This Report
Risk Hazard Emergency
Message from the Identification Identification Management
Chairman and CEO
The Company has established a risk identification The Company has established a routine inspection and assessment The Company has developed specialised
About HitGen
mechanism, clarifying control requirements for the two key mechanism. The Safety, Environmental Protection, and Logistics emergency response plans for different risk
areas of hazardous chemicals and biosafety. In terms of Department conducts weekly inspections and monthly assessment categories. For hazardous waste, the Company
hazardous chemicals, the Company implements full-process evaluations, with inspection results incorporated into performance has established spill prevention measures and
Sustainable Corporate management covering procurement, storage, use, and appraisal to promote closed-loop rectification of hazards through emergency response plans, equipped with
Governance disposal. Precursor chemicals, explosive precursors, and notifications, rewards, and penalties. The Company implements the impermeable flooring, liquid collection pools, and
highly toxic chemicals are managed under a dual-person Instrument and Equipment Management Procedure , which defines emergency response materials. A designated
requisition system with usage logs maintained accordingly. equipment responsible persons and maintenance standards, standardizes person is responsible for the entire process of
Responsible Value Chain Regarding biosafety, the Company has established an maintenance processes and record management, and ensures safe waste liquid collection, temporary storage, and
Institutional Biosafety Committee (IBC), which conducts and stable equipment operation. The Company regularly conducts noise transportation, and disposal is entrusted to
regular risk assessments and adjusts management monitoring in workplaces, with monitoring results complying with relevant qualified entities. Regarding laboratory safety,
measures accordingly. The Company implements an regulatory requirements, effectively safeguarding employee occupational the Company has formulated emergency
Employees and Community occupational hazard reporting management system, health. The Company has established a hazard reporting mechanism, response plans for safety incidents, clarified
standardizes reporting procedures, and strengthens encouraging employees to proactively report risks, incidents, and issues emergency evacuation routes and requirements
Employee Rights
employee health protection. related to occupational health and safety, enabling timely identification for fire extinguisher usage, and regularly
Employee Well-being
and elimination of hazards. conducts safety drills.
Talent Attraction and
Retention
Employee Training Metric Unit 2024 2025
and Development 1
Employee Health Examination Rate % / 97.00
Occupational Health
and Safety Employee Occupational Health and
% 100 100
Safety Examination Rate
Social Contribution
Number of Work-Related Injury
Incident 0 2
Incidents
Number of Work-Related Fatalities Person 0 0
Environment
Number of Working Days Lost due
Day 0 89
to Work-Related Injuries2
Occupational Disease Prevalence % 0 0
Hazardous Waste Spill Emergency Drill
Appendix Work Injury Insurance Expenditure RMB 10,000 118.72 186.87
The data covers Chinese mainland only.
Work Injury Insurance Coverage 2
In 2025, a total of two work-related incidents occurred, resulting in 89 lost workdays,
% 100 100
Rate meaning the affected employees took a cumulative total of 89 days off.
Occupational Health and Safety Training
About This Report The Company continuously conducts safety training covering all employees, ensuring that occupational health and safety requirements are integrated throughout employees'
entire careers. The Company provides new employee onboarding training to promote knowledge of occupational health and safety procedures. The Company also regularly
organises refresher training and specialised training for current employees to continuously improve overall safety performance.
Message from the
Chairman and CEO
About HitGen
Sustainable Corporate
Governance
Responsible Value Chain
On-site safety training sessions at the Company
Employees and Community
Employee Rights Metric1 Unit 2024 2025
Employee Well-being
Talent Attraction and Cumulative Safety Training Hours Hour 12.00 24.00
Retention
Employee Training Number of Safety Training Sessions Session 6 12
and Development
Occupational Health
Number of Participants in Safety Training Person 400 440
and Safety
Percentage of Employees Covered by OHS Training % 95.00 95.00
Social Contribution
Safety Drills Times 6 6
Environment
Appendix
The data covers Chinese mainland only.
Social Contribution
About This Report HitGen leverages its diverse DEL product portfolio and flexible, in-depth customised drug
Metric Unit 2024 2025
discovery services to precisely explore new pathways in drug discovery, while advancing
its proprietary drug pipeline with the goal of benefiting a broad patient population in the Total Investment in Rural
RMB 10,000 / 12.00
Message from the future. Revitalisation
Chairman and CEO
Total Investment in Public
The Company has gradually planned public welfare projects across multiple fields, routinely
Welfare and Charitable RMB 10,000 20.00 /
procuring agricultural products for rural revitalization as holiday benefits for distribution,
Activities
About HitGen thus supporting rural revitalization, science education, and other diversified initiatives.
Sustainable Corporate
Governance
Highlight Case HitGen is advancing a clinical drug trial for a rare disease (ACC)
Responsible Value Chain The Company's self-developed programme HG146 is currently in the Phase II clinical study stage. This program targets Adenoid Cystic Carcinoma (ACC), a relatively
rare but highly aggressive malignancy commonly found in the head and neck region, and may also occur in the trachea, breast, salivary glands, and other sites, with
a high incidence among individuals aged 40–60. Currently, there is a lack of standard treatment options for ACC, especially for patients with recurrent or metastatic
disease, resulting in very limited therapeutic choices and significant unmet clinical needs. HG146 is a potentially innovative therapy independently developed by the
Employees and Community
Company, aiming to provide new treatment hope for these patients. During the reporting period, the Phase II clinical study of HG146 completed enrollment of all patients
Employee Rights and conducted four rounds of tumor efficacy assessments. Preliminary data show positive signals in both efficacy and safety, and the majority of enrolled patients
Employee Well-being experienced improved quality of life. The Company is systematically analyzing the interim study data obtained and will begin preparing relevant materials for formal
Talent Attraction and discussions with the Center for Drug Evaluation (CDE) of the NMPA, with the goal of clarifying the subsequent development and registration pathway, aiming to benefit
Retention patients as early as possible.
Employee Training
and Development
Occupational Health
and Safety
Social Contribution
Highlight Case Vernalis Inspires the Next Generation to Pursue Science
In November 2025, one of Vernalis' biologists visited a local girls' school to deliver a talk on career opportunities in science, with a focus on ITC (Isothermal Titration
Environment Calorimetry) and DMPK (Drug Metabolism and Pharmacokinetics). The session aimed to encourage young female students to explore scientific pathways and highlight
the diverse roles available in the life sciences industry.
The talk received very positive feedback from the school's teaching staff, who expressed that the session served as an inspiring example for the students and helped
Appendix illuminate potential career paths they had not previously considered.
Environment
HitGen adheres to the concept of green
development, integrates environmental
management into corporate operation and
development strategies, and systematically
advances environmental management, ecological
protection, waste management, resource
utilization, addressing climate change and other
initiatives.
Environmental Management 50
Emissions and Waste 52
Resource Utilization 56
Addressing Climate Change 58
Contribution to the SDGs
Environmental Management
HitGen integrates environmental management into the Company’s production and operations, earnestly fulfilling its corporate green responsibilities. During the reporting
About This Report
period, no major environmental incidents occurred at the Company, nor was the Company subject to any major administrative penalties or held criminally liable by competent
departments such as those for ecology and environment due to environmental incidents.
Message from the
Chairman and CEO Environmental Management System Environmental Risk Control
The Company strictly abides by the The Company actively identifies prominent environmental risks in R&D and
About HitGen Environmental Protection Law of the People's experimental activities, mainly covering the full life cycle management of hazardous
Republic of China and applicable laws chemicals and standardized disposal of hazardous wastes. The Company has
and regulations in all operation locations, established and improved an environmental risk prevention, control and emergency
Sustainable Corporate formulates and implements internal systems management system, compiled environmental risk assessment reports and filed
Governance including the Environmental Protection them with local competent departments for ecology and environment as required,
Management System and EHS Management effectively building a solid line of defense for environmental safety.
Target Assessment Procedures, and ensures
Responsible Value Chain
During the reporting period, the Company conducted 2 fire and emergency
the implementation of environmental
evacuation drills to enhance employees’ emergency response, self-rescue and mutual-
protection responsibilities in daily operations
rescue capabilities. In addition, the Company held monthly EHS incident sharing
by clarifying environmental management
sessions on a regular basis to continuously raise the awareness of environmental
duties and standardizing management
Employees and Community safety and risk prevention among all employees.
processes. The Chief Executive Officer
(CEO) of the Company is the primary person
responsible for environmental protection, ISO 14001 Environmental Management
Environment and the EHS & Logistics Department System Certification
Environmental is responsible for daily management,
Management effectively integrating environmental management requirements into the entire
Emissions and Waste process of production and operation. During the reporting period, the Company and
its subsidiary Hitston obtained Environmental Management System Certification (ISO
Resource Utilization
Addressing Climate
Change In addition, the Company has established and improved incentive and restraint
mechanisms, assigned environmental management responsibilities to all departments During the reporting
and relevant positions, conducted regular EHS management assessments and
period, the Company
evaluations, strengthened on-site management and process control, and promoted the
Appendix
effective implementation of various environmental management systems. conducted fire and
emergency evacuation
drills
Environment, Health and Safety
Hazardous Materials Management
The Company complies with the Regulations on the Safety Management of Hazardous Chemicals and applicable laws and regulations in all operation locations, formulates
About This Report
and implements internal systems including the Hazardous Chemicals Management Specifications and Precursor Chemicals Management System, and conducts standardized
management of hazardous chemicals to ensure safe, compliant and controllable management in all links including procurement, storage, use, and disposal of waste precursor
chemicals and explosives-prone hazardous chemicals. All hazardous materials management personnel of the Company hold relevant qualifications.
Message from the
Chairman and CEO The Company’s highly toxic chemicals are strictly managed in accordance with the "Five Doubles" requirements, with dual-person operation and dual-person supervision
implemented throughout the whole process of storage, collection, transportation and use to ensure full-process controllability and traceability. The Company also requires
employees engaged in precursor chemicals warehouse management, logistics and distribution and other positions to undergo special training and pass assessment before taking
About HitGen up their posts, effectively improving the safety management capabilities of practitioners.
HitGen "Five Doubles" Management Requirements for Highly Toxic Chemicals
Sustainable Corporate
Governance
Dual-person Custody Dual-lock Management Dual Ledger
Responsible Value Chain
Two dedicated personnel are jointly responsible Two independent locks are installed in the Two sets of mutually verified management
for the daily management of highly toxic storage warehouse of highly toxic chemicals, ledgers are established to separately record
chemicals, implementing joint on-duty and joint with keys held by two management personnel information such as warehousing, collection,
accountability, and single-person independent respectively. The warehouse can only be consumption and balance of highly toxic
Employees and Community management is strictly prohibited. opened when both personnel are present chemicals, ensuring consistency between
simultaneously to achieve mutual supervision. accounts and materials as well as between
accounts, and realizing full-process traceability.
Environment
Environmental
Management
Emissions and Waste
Dual-person Dispatch Dual-person Collection
Resource Utilization
Addressing Climate Two management personnel shall jointly verify and When a user department collects highly toxic chemicals,
Change operate for the delivery of highly toxic chemicals before two collectors shall go through collection procedures
outbound delivery, so as to prevent unauthorized together, collect and use the chemicals jointly to ensure
single-person dispatch. full control over the collection link.
Appendix
In accordance with the storage and use of highly toxic chemicals, the Company entrusts institutions with nationally required qualifications to conduct safety assessments on its
current production safety status, and submits the current situation safety assessment reports and the implementation of rectification plans to local regulatory authorities for
filing. During the reporting period, the Company also organized hazardous chemical leakage drills to enhance employees’ emergency response capabilities and risk disposal levels
through regular drills and practical training.
Hazardous Reaction Management
Emissions and Waste
The Company complies with the Laboratory Hazardous Reaction Approval System
About This Report and applicable laws and regulations in all operation locations, further standardizes HitGen strictly abides by pollutant discharge standards and waste management
the approval and management process of laboratory hazardous chemical reactions, requirements in operation locations, formulates compliant and efficient disposal
and strengthens full-process monitoring of hazardous reagent use, building a solid processes for various pollutants and wastes generated during production and
Message from the laboratory safety line of defense through standardized and institutionalized control. operation, and strives to minimize the environmental impact of pollutants and
Chairman and CEO wastes. During the reporting period, the Company was not subject to any major
The Company strictly implements an all-weather safety inspection mechanism administrative penalties or held criminally liable for pollutant discharge and waste
with uninterrupted daily inspections; it implements strict approval management for treatment. The Company’s environmental monitoring plans and risk management
About HitGen overnight reactions and hazardous reactions, and effectively reduces the probability measures are sound, complete and effectively implemented with no major defects.
of laboratory safety accidents through hierarchical risk assessment and approval
checks.
Sustainable Corporate
Governance Waste Treatment
HitGen Laboratory Hazardous Reaction Control Measures The Company strictly follows the Law on the Prevention and Control of Environmental
Pollution by Solid Wastes and applicable laws and regulations in all operation
Responsible Value Chain
locations, formulates and implements the Hazardous Solid Waste Management
Setting Quantitative Control System and Hazardous Waste Management System, and builds a full-process
Eight Key Categories of High-Risk
Thresholds for Hazardous waste control system to ensure legal and compliant disposal. The Company has set
Reactions under Strict Control
Substrates up a hazardous waste pollution prevention and control working group headed by
Employees and Community
the CEO and composed of heads of all departments to make decisions, supervise
and coordinate various environmental protection work of the Company. The EHS &
Establishing Hierarchical Approval Prohibition of Hazardous Reaction Logistics Department is responsible for the daily waste management of the Company
Environment
and Special Filing Mechanism Feeding at Night and on Holidays and assigns objectives and tasks to relevant responsible departments.
Environmental
Management
The Company’s hazardous wastes mainly include medical wastes, biological test
wastes, waste pharmaceuticals, waste organic solvents, etc., mainly generated from
Emissions and Waste
Dedicated Personnel on Duty; Establishing Performance laboratory R&D activities. Special hazardous waste temporary storage points are set
Resource Utilization Consolidating Responsibilities of Assessment and Accountability up in all laboratories of the Company, with classified collection carried out in strict
Addressing Climate Three Parties Mechanism
accordance with specifications, and classified temporary storage using compliant
Change
containers such as biological waste bins, sharps containers and special sealed drums.
In addition, the Company has fully accessed the Sichuan "Zero Waste Sichuan"
Initiative system, realizing the "Five Immediate" Management of hazardous wastes
Appendix Metric Unit 2024 2025 throughout the whole process from generation, packaging, weighing to warehousing,
and achieving dynamic traceability through electronic tags, video surveillance and
Environmental Protection
RMB 10,000 76.80 117.00 other means to ensure authentic, verifiable and traceable data. Illegal cross-border
Investment
transfer of hazardous wastes is strictly prohibited.
Participation in Environmental
Person-times 400 440
Compliance Training
“Five Immediate" Management refers to immediate generation, immediate packaging,
immediate weighing, immediate coding and immediate warehousing.
The Company has signed service contracts with third-party institutions qualified for hazardous waste disposal,
entrusting them to legally and compliantly complete the transportation and full-process disposal of hazardous
wastes. In the transportation link, third-party institutions strictly abide by relevant regulatory requirements for
About This Report
hazardous waste transportation and implement various safe transportation control measures to ensure legal,
compliant, safe and controllable hazardous waste transportation.
Message from the
Chairman and CEO HitGen Hazardous Waste Transportation Management Measures
Use of standard- Use of special hazardous Transport personnel must
About HitGen compliant special waste transport vehicles receive professional
containers to ensure with regular inspection and training and hold relevant
tightness and safety maintenance qualification certificates
Sustainable Corporate
Governance
Transport Transport Transport
Responsible Value Chain Containers Vehicles Personnel
Formulation of detailed Detailed records
Employees and Community
emergency response plans for for each transport
rapid response and handling in to ensure
case of accidents traceability
Environment
Environmental
Management
Emergency Transport
Emissions and Waste
Measures Records
Resource Utilization
Addressing Climate
Change
The Company is committed to reducing the generation of hazardous wastes by prioritizing the adoption of clean
production technologies such as microchannel reactors and tubular reactors and other highly efficient and safe
Appendix processes to reduce the on-line volume of hazardous chemicals and by-product generation in reactions; the
Company also selects low-toxicity and low-hazard raw materials to lower the toxicity level and disposal difficulty of
hazardous wastes; the Company promotes refined production control and accurately calculates material ratios to
avoid waste accumulation caused by excessive feeding.
The Company’s non-hazardous wastes mainly include cartons, plastic products, office
Wastewater Management
paper and other general domestic wastes generated in daily office and operation
processes, all of which are disposed of compliantly through the municipal domestic The Company complies with the Law on the Prevention and Control of Water
About This Report Pollution, the Integrated Wastewater Discharge Standard and applicable laws and
waste recycling and treatment system.
regulations in all operation locations, formulating and implementing the "Three
Wastes" Management System. Wastewater from pure water preparation, laboratory
Message from the coat cleaning, animal room cleaning, lye absorption, instrument and vessel cleaning
Chairman and CEO
Highlight Solid Waste and Chemicals Regulatory Authority and other sources is uniformly discharged into the integrated temporary wastewater
Case Investigates HitGen and Affirms Ecological Responsibility treatment facilities supporting the incubation park for pretreatment, and then
and Management Effectiveness connected to the park’s wastewater pipe network after reaching the discharge
About HitGen standard.
During the reporting period, a research team from the solid waste and
chemicals regulatory authority visited HitGen for a special investigation on the The Company conducts irregular random inspections of wastewater discharge outlets
Sustainable Corporate full-process management of hazardous wastes. The research team inspected on a daily basis. If abnormal or excessive discharge is detected in monitoring results,
Governance the Company’s hazardous waste management system, disposal processes the Company will communicate with the park’s wastewater treatment management
and risk prevention and control measures on site, spoke highly of HitGen’s unit immediately and simultaneously verify the compliance status of the park’s
practice of adhering to the bottom line of ecological protection and actively discharge outlets. Meanwhile, the Company regularly entrusts qualified third-
Responsible Value Chain fulfilling social responsibilities, and fully recognized the standardized practices party institutions to conduct wastewater testing every year. During the reporting
and remarkable achievements of the Company in standardized and refined period, the Company’s wastewater discharge fully complied with relevant standard
hazardous waste management. requirements with no excessive discharge, and did not involve the discharge of Active
Pharmaceutical Ingredients (API).
Employees and Community
Metric Unit 2024 2025 Metric Unit 2024 2025
Total Non-Hazardous Total Wastewater
Environment Waste Generation
Tonnes / 25.79
Discharge
Tonnes 10,665.60 9,644.20
Environmental Non-Hazardous Wastewater Tonnes/Revenue
Management Tonnes/Revenue 0.25 0.18
Waste Generation / 0.0005 Discharge Intensity of RMB 10,000
of RMB 10,000
Emissions and Waste Intensity
Resource Utilization Total Hazardous
Tonnes 394.25 461.28
Addressing Climate Waste Generation
Change
Hazardous Waste Tonnes/Revenue
Generation Intensity of RMB 10,000
Appendix
Waste Gas Management
About This Report The Company complies with the Law on the Prevention and Control of Atmospheric Pollution and applicable laws and regulations in all operation locations, implementing the
"Three Wastes" Management System. The Company’s waste gas originates from laboratories, with main pollutants including Particulate Matter (PM) and Volatile Organic
Compounds (VOCs) The Company is equipped with corresponding waste gas treatment equipment in laboratory operation rooms, ensuring orderly discharge of waste gas after
Message from the treatment up to standard.
Chairman and CEO
The Company attaches importance to waste gas pollution prevention and control, and continuously improves waste gas management through a series of control measures.
About HitGen HitGen Waste Gas Pollution Prevention and Control Measures
Sustainable Corporate
Governance
Fume Hood Control Hazardous Waste Laboratory Waste Liquid Equipment Maintenance Air Filters
The operating speed of Treatment Treatment Regular inspection and Waste gas is collected
Responsible Value Chain
fume hoods is adjusted Wastes containing active Laboratory waste liquids maintenance of high-energy- and treated with two-
according to experimental pharmaceutical ingredients or are treated by chemical consuming equipment are stage activated carbon
needs to reduce energy antibiotic residues must undergo classification to avoid direct carried out to ensure efficient adsorption technology
consumption and thereby high-temperature sterilization or discharge into sewers and operation and reduce energy to ensure compliance
Employees and Community
lower air pollutant chemical treatment before safe reduce the release of harmful waste and air pollutant with discharge
emissions. discharge to minimize impacts gases. emissions during operation. standards.
on the atmospheric environment.
Environment
Environmental
During the reporting period, the Company entrusted qualified third-party institutions to conduct waste gas testing, with all waste gas discharge meeting relevant standard
Management
requirements and no excessive discharge. In addition, the Company’s pollutant discharge caused no adverse impacts on employees or residents of surrounding communities, and
Emissions and Waste
no environmental complaints were received from stakeholders such as community residents.
Resource Utilization
Addressing Climate
Change Metric Unit 2024 2025
Volatile Organic Compounds (VOCs) Tonnes / 2.22
Appendix Particulate Matter (PM) Tonnes / 0.09
Ammonia (NH3) Tonnes / 0.01
Sulfur Oxides (SOX) Tonnes / 0.0002
Resource Utilization
About This Report HitGen highly values the efficient utilization and sustainable management of resources. By continuously optimizing experimental operation procedures, promoting the application
of water-saving technologies, strengthening the reduction and recycling of packaging materials, and advancing full-process refined management, the Company effectively
reduces resource consumption and waste, supporting green, low-carbon and high-quality development.
Message from the
Chairman and CEO
Energy Utilization
The Company abides by the Energy Law of the People's
About HitGen Republic of China, the Law on Conservation of Energy Temperature Control Air Conditioning Air Conditioning
and applicable laws, regulations and standards in all Management System Usage
operation locations, establishing and implementing
Sustainable Corporate internal systems such as the Energy Conservation Differentiated temperature Power-off control during non- Strict implementation of
Governance Management Measures. The EHS & Logistics Department control standards are set use periods; standardized temperature threshold control,
of the Company is responsible for energy conservation for laboratories according to employee operation with strict standardized operation of
and consumption reduction management, and conducts functional zones, with lower prohibition of unauthorized laboratory air conditioners
Responsible Value Chain training on environmental protection and energy priorities assigned to non- disassembly and equipment and fume hood use, and the
conservation awareness. critical areas to prioritize adjustment, and accountability requirement of turning off air
temperature control needs of for damage; standardized conditioners when leaving
The Company’s energy consumption mainly comes from
Employees and Community
experimental zones. operation in accordance posts for 30 minutes, with
laboratory equipment and central air conditioners, cabinet
with procedures and timely supervision by department
air conditioners, condensing heat recovery air conditioners
fault reporting to reduce heads to strictly control
and other facilities. The Company has established and
office energy consumption air conditioning energy
Environment implemented the Air Conditioning Management and
through refined operation and consumption.
Usage Regulations and launched a number of energy
Environmental maintenance.
conservation and consumption reduction measures
Management
accordingly.
Emissions and Waste
Resource Utilization
Addressing Climate
Metric Unit 2024 2025
Change
Direct Energy Consumption tce / 188.92
Direct Energy Consumption Intensity tce/Revenue of RMB 10,000 / 0.004
Appendix Indirect Energy Consumption tce / 835.81
Indirect Energy Consumption Intensity tce/Revenue of RMB 10,000 / 0.02
Total Energy Consumption tce 965.72 1,024.73
Total Energy Consumption Intensity tce/Revenue of RMB 10,000 0.02 0.02
Water Resource Utilization
The Company complies with the Water Law of the People's Republic of China and
About This Report applicable laws and regulations in all operation locations. The Company continuously
Metric Unit 2024 2025
strengthens the full-process refined management of laboratory water use, eliminating
Water Intake Tonnes 13,332.00 12,194.00
water waste such as running, dripping and leaking through regular inspection and
Message from the maintenance of water facilities; meanwhile, it prioritizes the procurement and - Municipal Pipe
Chairman and CEO Tonnes 13,332.00 12,194.00
application of water-saving equipment with supporting water volume control devices Network
to reduce laboratory water resource consumption from the source and improve water
Water Consumption Tonnes 2,666.40 2,549.80
use efficiency.
About HitGen
The Company attaches importance to water recycling. During the construction of the Water Consumption Tonnes/Revenue
Intensity of RMB 10,000
Global Pharmaceutical R&D and Production Base (Phase I) project, collected rainwater
Sustainable Corporate is used for greening irrigation and cleaning operations in the project construction area,
Governance effectively reducing dependence on fresh water and improving water use efficiency.
Responsible Value Chain
Circular Economy
The Company actively advocates employees to practice water
Employees and Community The Company practices the development concept of circular economy, follows the
conservation in daily work and promotes green alternatives to
core 3R1 principles , strives to build a closed-loop resource management system,
Reduction
disposable laboratory consumables; it promotes experimental schemes
and continuously promotes resource conservation, efficient reuse and recycling
using 384-well plates instead of 96-well plates, effectively reducing
across the entire operation chain. During the reporting period, the Company
Environment the use of laboratory consumables and reagents, cutting resource
replaced packaging cushioning materials with biodegradable materials to support
Environmental
consumption, and deeply integrating the green and low-carbon
sustainable resource utilization and minimized environmental impacts.
Management concept into daily operations.
Emissions and Waste
Resource Utilization Metric Unit 2024 2025
Addressing Climate Laboratories prioritize reusable autoclavable glassware instead of
Packaging Material
Reuse
Change Tonnes / 0.04 disposable plastic consumables to extend service life and reduce
Consumption
single-use waste discharge.
Packaging Material Tonnes/Revenue of
/ 0.000001
Consumption Intensity RMB 10,000
Appendix Recycled Packaging
Tonnes / 0.02
Material Volume
Recycling
Part of the Company’s non-hazardous wastes (e.g., waste cartons) are
Packaging Material
% / 50.00 handed over to recycling institutions for recycling, promoting resource
Recycling Rate
recovery and reuse.
Reduce, Reuse, Recycle.
Addressing Climate Change
About This Report HitGen deeply recognizes the urgency of addressing climate change and its far-reaching impacts on global health and human well-being. The Company systematically identifies
and assesses climate-related risks and development opportunities, strengthening proactive responses to changes in operations, supply chains and market environments. On this
basis, it gradually improves climate action deployment and implementation paths, strengthens process monitoring and information disclosure, and promotes the coordinated
Message from the advancement of climate management and business development.
Chairman and CEO
Governance HitGen Climate Governance Structure
About HitGen
The Company has established a three-tier climate governance
framework covering "Decision-Making – Management – Execution",
As the highest governing body for climate change, the Board is responsible
committed to systematically integrating climate change into
Sustainable Corporate Decision-Making for reviewing climate strategies, objectives and relevant policies, assessing
corporate operation and management processes. In the future,
Governance Level climate risk and opportunity management, supervising climate action
the Company will dynamically communicate progress in climate
implementation performance, and reviewing climate information disclosure to
management through regular climate information disclosure Board of
ensure climate governance requirements are effectively integrated into the
Responsible Value Chain
and communication activities, enhance internal consensus and Directors
Company’s overall development strategy and governance system.
improve participation at all levels. In terms of professional
skills and capabilities of governance bodies, the Company
conducts training and exchanges with external professional
Employees and Community resources to continuously enhance the team’s professional Responsible for researching and formulating climate strategies and phased
capabilities in climate strategy, risk identification and objectives, organizing climate risk identification and assessment, coordinating
Management Level
low-carbon transition, providing strong support for the cross-departmental collaboration to advance climate-related work, reporting
implementation of climate strategies. The Company
Environment Strategy and major climate issues or important progress to the Board of Directors, and
continuously improves the climate-related supervision Sustainability providing professional support and recommendations for the decision-making
Environmental and management system, incorporates climate Committee
Management
level.
management performance into assessment,
Emissions and Waste
and ensures the orderly progress and effective
Resource Utilization implementation of corporate climate governance.
Headed by the General Manager of the Company, the ESG Working Group
Addressing Climate In addition, the Company’s climate-related
Change collaborates with relevant functional departments, integrates internal
governance bodies comprehensively consider
resources, and specifically implements climate management and action
climate-related factors in operational planning Execution Level
measures such as energy conservation and emission reduction, greenhouse
and major business decisions, prudently judge
ESG Working Group gas inventory, and carbon target setting, ensuring the implementation of
Appendix climate-related impacts, risks and potential
various climate-related requirements at the production, operation and project
opportunities through risk identification,
implementation levels.
analysis and assessment, and promote the
integration of climate management concepts
into corporate business decisions.
Strategy
The Company refers to the disclosure recommendations of the IFRS Sustainability Disclosure Standard S2 – Climate-related Disclosures (IFRS S2) issued by the International
Sustainability Standards Board (ISSB) and identifies climate-related risks and opportunities through qualitative descriptions. On this basis, combined with its own business
About This Report characteristics, the Company formulates risk response and mitigation measures to enhance its adaptive capacity and climate resilience to climate change.
Potential Time
Type Impacts on Business Model Financial
Message from the Impacts Horizon1
Chairman and CEO
Increased cooling loads in laboratories and office spaces, greater heat dissipation pressure on
equipment; extreme high temperatures may cause malfunctions of laboratory temperature control
High-temperature
systems and affect stable operation of experimental equipment. Meanwhile, persistent high Cost Increase S、M
About HitGen Acute Heatwaves
temperatures may trigger regional power supply shortages and local phased power rationing or
Risks peak-shifting power use measures.
Heavy Precipitation Heavy precipitation and floods may damage laboratory equipment, compound samples and data
Asset Damage S
Sustainable Corporate and Floods storage facilities, disrupting R&D operations.
Governance
Long-term high temperatures drive up annual cooling energy consumption and continuous
Chronic Rising Average increases in laboratory temperature control costs; high-temperature environments affect the
Cost Increase M
Risks Temperatures stability of DEL compounds, increase the difficulty of sample storage and maintenance, and raise
Responsible Value Chain R&D and operation costs.
Domestic dual-carbon policies and exchange regulatory requirements continue to tighten; the
Strengthened Company needs to continuously improve ESG information disclosure and carbon accounting
Policy and
Employees and Community Emission Reporting management; affected by upstream regulatory transmission, downstream customers also put Cost Increase S
Legal Risks
Requirements forward requirements for the Company to set Science Based Targets initiative (SBTi) targets, and
may further establish CDP rating access thresholds in the future.
SBTi targets are widely adopted by global pharmaceutical customers, and requirements for CROs’
Environment Market Evolving Customer
carbon emissions and sustainable development capabilities have become access conditions for Cost Increase S
Risks Behavior
Environmental cooperation; customers prioritize low-carbon and transparent R&D partners.
Management Investors, customers and the public pay increasing attention to the ESG performance of
Insufficient Climate-
Emissions and Waste pharmaceutical companies. The Company has committed to the Science Based Targets initiative
related Information
Resource Utilization Reputation and the public to set near-term science-based carbon targets meeting SBTi standards within two Brand value
Disclosure / Lagging S、M
Addressing Climate Risks years. Slow progress in SBTi target implementation will damage the Company’s brand reputation, impairment
Low-carbon
Change affect cooperation with customers and transmit to capital market expectations of the Company’s
Transition revenue and valuation.
Adoption of
Resource Optimizing upstream and downstream transportation routes for R&D materials and samples to
More Efficient Cost reduction S
Appendix Efficiency reduce logistics energy consumption and emissions while improving transportation efficiency.
Transportation Modes
Combined with the characteristics of its biomedical R&D business and operational layout, the Company continuously improves its climate-related transition plan. Based
on basic assumptions such as tightening climate change regulations in China and overseas, transmission of downstream customer access requirements, and frequent
occurrence of extreme weather events, the Company continuously optimizes its R&D operation and logistics transportation systems, improves energy efficiency and low-
carbon operation levels, and addresses climate-related risks and opportunities through supply chain collaboration, energy-saving renovation, low-carbon logistics and other
measures.
Short-term (S): within 1 year (inclusive); Medium-term (M): 1 to 5 years (inclusive); Long-term (L): over 5 years 59
Impacts, Risks and Opportunities
About This Report
The Company carries out capacity building for climate risk management, committed to integrating the management of climate-related impacts, risks and opportunities
into its overall risk management system. The Company adopts qualitative methods to conduct risk and impact assessments, reasonably determines the priority of climate
risks in the overall risk system, actively seizes opportunities for green transformation and development, and ensures the long-term stable operation and sustainable
development of the Company.
Message from the
Chairman and CEO
Metrics and Targets
About HitGen During the reporting period, the Company officially submitted a commitment letter to the Science Based Targets initiative, promising to set near-term science-based
carbon targets meeting SBTi standards within two years. The Company plans to reduce greenhouse gas emissions across its full value chain to levels consistent with the
Sustainable Corporate established systematic management indicators to dynamically monitor and assess climate governance-related performance, providing a scientific basis for target setting
Governance in the next stage and promoting continuous improvement of the Company’s climate actions.
Responsible Value Chain
Metric Unit 2024 2025
Scope 1 GHG Emissions tCO2e 284.20 315.00
Employees and Community Scope 2 GHG Emissions tCO2e 3,457.63 1,093.75
Total GHG Emissions (Scope 1 & 2) tCO2e 3,741.84 1,408.75
Environment
GHG Emission Intensity (Scope 1 & 2) tCO2e/Revenue of RMB 10,000 0.09 0.02
Environmental
Management
Emissions and Waste
Resource Utilization
Addressing Climate
Change
Appendix
Appendix
About This Report
Appendix 1 ESG Performance
Message from the
Chairman and CEO
Dimension Metric Unit 2024 2025
Number of Directors Person 9 9
About HitGen
Number of Female Directors Person 1 2
Number of Independent Directors Person 3 3
Sustainable Corporate
Governance Number of Non-Independent Directors Person 3 6
Number of Female Executives Person 2 1
Number of Board of Directors Meetings Held Times 4 4
Responsible Value Chain
Number of Meetings of the General Meeting of Shareholders Times 4 3
Anti-bribery and Corruption Training Attendances
Employees and Community Of Which: Board Directors Person-times / 6
Governance
Of Which: Senior Management Person-times / 3
Environment Total Training Hours on Anti-corruption
Of Which: Board Directors Hour / 24
Of Which: Senior Management Hour / 12
Appendix
Anti-bribery and Corruption Training Coverage Rate
Appendix 1 ESG
Performance Of which: Board Directors % / 67
Appendix 2 Index to
Of which: Senior Management % / 30
Guidelines of SSE
Appendix 3 Index to PSCI Number of Corruption Litigation Cases Filed or Concluded Case 0 0
Principles
Fines for Unfair Competition Practices RMB 10,000 0 0
Number of Employees Person 483 546
Society Full-time Person 474 537
By Employee Type
Part-time Person 9 9
Dimension Metric Unit 2024 2025
Senior Management Person 9 10
About This Report
Middle Management Person 41 28
By Position Level
Primary Management Person 130 54
Message from the
Chairman and CEO General Staff Person 303 454
Male Person 264 306
By Gender
About HitGen Female Person 219 240
Ph.D Person 82 92
Master Person 153 193
Sustainable Corporate By Educational Degree
Governance Bachelor Person 218 231
Other Person 30 30
Responsible Value Chain ≤ 30 Person 212 248
By Age 31-50 Person 237 251
≥ 51 Person 34 47
Employees and Community Society
Chinese Mainland Person 407 461
Chinese Hong Kong, Macao, and
By Region Person 1 2
Taiwan
Environment
Overseas Person 75 83
Employee Turnover Rate % 9.32 11.36
Appendix Senior Management % / 30.00
Appendix 1 ESG
Middle Management % / 14.29
Performance By Position Level
Appendix 2 Index to Primary Management % / 5.56
Guidelines of SSE
General Staff % / 11.45
Appendix 3 Index to PSCI
Principles Male % 10.61 13.07
By Gender
Female % 7.76 9.17
≤ 30 % 8.49 13.71
By Age 31-50 % 10.13 9.16
≥ 51 % 8.82 10.64
Dimension Metric Unit 2024 2025
Chinese Mainland % 9.83 12.36
About This Report
Chinese Hong Kong, Macao, and
By Region % 0 0
Taiwan
Message from the Overseas % 6.67 6.02
Chairman and CEO 1
Percentage of Employees Trained % 100 100
Training Sessions Conducted Session 175 160
About HitGen Total Investment in Training RMB 10,000 221 102.3
Total Employee Training Hours Hour 4,255.00 4143.00
Sustainable Corporate Male Hour 2,372.00 2,362.00
Governance By Gender
Female Hour 1,883.00 1,781.00
Senior Management Hour 1,324.80 1,103.12
Responsible Value Chain
Middle Management Hour 652.80 543.57
By Position Level
Primary Management Hour 878.40 731.42
Society General Staff Hour 1,399.00 1,764.90
Employees and Community
Per Capita Training Duration for Employees Hour 10.37 8.83
Male Hour 10.63 8.91
Environment By Gender
Female Hour 10.06 8.73
Senior Management Hour 147.20 122.57
Appendix Middle Management Hour 26.07 24.71
By Position Level
Appendix 1 ESG
Primary Management Hour 7.20 17.01
Performance
Appendix 2 Index to General Staff Hour 5.48 4.47
Guidelines of SSE 3
Employee Health Examination Rate % / 97.00
Appendix 3 Index to PSCI
Principles Employee Occupational Health and Safety Examination Rate % 100 100
Number of Work-Related Injury Incidents Incident 0 2
Number of Work-Related Fatalities Person 0 0
Number of Working Days Lost due to Work-Related Injuries Day 0 89
The training-related data covers Chinese mainland only.
Any discrepancies between the total employee training hours and the aggregated training hours by gender and employee type are due to rounding.
The data covers Chinese mainland only. 63
In 2025, there were 2 work-related injury incidents, resulting in 89 lost working days, meaning that the injured employees took a total of 89 days of leave.
Dimension Metric Unit 2024 2025
Occupational Disease Prevalence % 0 0
About This Report
Work Injury Insurance Expenditure RMB 10,000 118.72 186.87
Work Injury Insurance Coverage Rate % 100 100
Message from the
Chairman and CEO Cumulative Safety Training Hours Hour 12.00 24.00
Number of Safety Training Sessions Session 6 12
About HitGen Number of Participants in Safety Training Person 400 440
Percentage of Employees Covered by OHS Training % 95.00 95.00
Safety Drills Times 6 6
Sustainable Corporate
Governance Total Investment in Rural Revitalisation RMB 10,000 / 12.00
Total Investment in Public Welfare and Charitable Activities RMB 10,000 20.00 /
Responsible Value Chain R&D Expenses (Funding Related to Technological Innovation) RMB 10,000 6,732.81 7,159.41
Percentage of R&D Expenses in Revenue % 15.77 13.62
Society
Total Count Person 406 461
Employees and Community R&D Team
Percentage in Overall Workforce % 84.06 84.43
Cumulative Granted Number 99 130
Domestic Invention Patents
Environment Applications Pending Number 188 244
Cumulative Granted Number 39 42
International Invention Patents
Appendix
Applications Pending Number 122 169
Appendix 1 ESG Accumulated Software Copyright Registrations Number 13 36
Performance
Trademark Rights Held Number 54 92
Appendix 2 Index to
Guidelines of SSE Number of Standards Participated In Formulating Number / 1
Appendix 3 Index to PSCI
Number of Sessions Held Times 4 2
Principles IPR Compliance Training2
Number of Participants Person-times / 200
Percentage of Products Recalled due to Quality Issues out of Total Products
% 0.10 0.10
Sold/Shipped3
Safety training-related data includes only Chinese mainland.
Data includes only Chinese mainland.
Data includes only Chinese mainland.
Dimension Metric Unit 2024 2025
About This Report Total Number of Complaints Received Regarding Products and Services Piece 6 8
Resolution Rate for Complaints Regarding Products and Services % 100 100
Number of Information Security Training Sessions Conducted Times 17 25
Message from the
Chairman and CEO Number of Participants In Information Security Training Person 405 479
Percentage of Employees Trained In Information Security % / 87.73
About HitGen Number of Information Security Incidents Case 0 0
Number of Customer Privacy And Information Security Breach Incidents Case 0 0
Total Number of Suppliers Company 990 691
Sustainable Corporate
Governance Society Wherein: Chinese mainland Company 560 248
Wherein: Chinese Hong Kong, Macao, and Taiwan Company 2 0
Responsible Value Chain Wherein: Overseas Company 428 443
Supplier Integrity Agreement Signing Rate % / 99
Supplier Certification - Number of Suppliers with ISO 45001 % / 21
Employees and Community
Supplier Certification - Number of Suppliers with ISO 14001 % / 23
Supplier Certification - Number of Suppliers with ISO 9001 % / 42
Environment Supplier Certification - Number of Suppliers with Other Certifications 4
% / 11
Amount of Overdue Payments to Small and Medium-Sized Enterprises RMB 10,000 / 0
Appendix Environmental Protection Investment RMB 10,000 76.80 117.00
Appendix 1 ESG Participation in Environmental Compliance Training Person-times 400 440
Performance
Total Non-Hazardous Waste Generation Tonnes / 25.79
Appendix 2 Index to
Guidelines of SSE Environmental Non-Hazardous Waste Generation Intensity Tonnes/Revenue of RMB 10,000 / 0.0005
Appendix 3 Index to PSCI
Total Hazardous Waste Generation Tonnes 394.25 461.28
Principles
Hazardous Waste Generation Intensity Tonnes/Revenue of RMB 10,000 0.01 0.01
Total Wastewater Discharge Tonnes 10,665.60 9,644.20
Data includes only Chinese mainland. Data includes only Chinese mainland. Data includes only Chinese mainland. Data includes only Chinese mainland.
Wastewater generated at the Company's operations in China is discharged entirely into the centralized sewage network of the industrial park after pretreatment and compliance with
discharge standards. As there is no individual external discharge outlet, the exact total volume of wastewater discharge cannot be precisely measured. The wastewater discharge volume for
the China operations is calculated using a conversion factor of 0.8 multiplied by the total water intake, and this method has also been applied to revise the 2024 wastewater discharge data
accordingly. 65
Dimension Metric Unit 2024 2025
Wastewater Discharge Intensity Tonnes/Revenue of RMB 10,000 0.25 0.18
About This Report
Volatile Organic Compounds (VOCs) Tonnes / 2.22
Particulate Matter (PM) Tonnes / 0.09
Message from the Ammonia (NH3) Tonnes / 0.01
Chairman and CEO Sulfur Oxides (SOX) Tonnes / 0.0002
Direct Energy Consumption tce / 188.92
Direct Energy Consumption Intensity tce/Revenue of RMB 10,000 / 0.004
About HitGen
Indirect Energy Consumption tce / 835.81
Indirect Energy Consumption Intensity tce/Revenue of RMB 10,000 / 0.02
Sustainable Corporate Total Energy Consumption1 tce 965.72 1,024.72
Governance Total Energy Consumption Intensity tce/Revenue of RMB 10,000 0.02 0.02
Environmental Water Intake Tonnes 13,332.00 12,194.00
- Municipal Pipe Network Tonnes 13,332.00 12,194.00
Responsible Value Chain
Water Consumption2 Tonnes 2,666.40 2,549.80
Water Consumption Intensity Tonnes/Revenue of RMB 10,000 0.06 0.05
Packaging Material Consumption Tonnes / 0.04
Employees and Community
Packaging Material Consumption Intensity Tonnes/Revenue of RMB 10,000 / 0.000001
Recycled Packaging Material Volume Tonnes / 0.02
Packaging Material Recycling Rate % / 50.00
Environment
Scope 1 GHG Emissions 4 tCO2e 284.20 315.00
Scope 2 GHG Emissions tCO2e 3,457.63 1,093.75
Appendix Total GHG Emissions (Scope 1 & 2) tCO2e 3,741.84 1,408.75
Appendix 1 ESG GHG Emission Intensity (Scope 1 & 2) tCO2e/Revenue of RMB 10,000 0.09 0.02
Performance
Appendix 2 Index to 1
Data on energy conversion into standard coal is derived from the General Rules for Calculation of the Comprehensive Energy Consumption (GB/T 2589-2020). The Company’s direct energy
Guidelines of SSE consumption mainly comes from gasoline and natural gas, while indirect energy consumption mainly comes from purchased electricity.
Appendix 3 Index to PSCI In this year, the definition of water consumption has been revised to be calculated as water intake minus wastewater discharge, reflecting the Company’s overall impact on the availability of
Principles downstream water resources.
Data only includes Vernalis, a wholly-owned overseas subsidiary of the Company.
Scope 1 GHG emissions refer to direct GHG emissions generated from the consumption of fossil fuels such as gasoline and natural gas during the operation of HitGen’s own equipment.
Sources of 2025 emission factors: the average Sichuan power sector CO2 emission factor for 2023, which is 0.1564 kg CO2/kWh, as specified in the Announcement on Issuing the 2023 Power
Sector CO2 Emission Factors issued by the Ministry of Ecology and Environment of the People's Republic of China; the GHG emission factor for electricity in the UK used in this report adopts
the grid average emission factor from UK Government GHG Conversion Factors for Company Reporting 2025 V1.0, with a total CO2 equivalent factor of 0.1770 kg CO2e/kWh. The decrease in
Scope 2 GHG emissions in 2025 is mainly attributable to the adjustment of the CO2 emission factor for electricity consumed at the Company’s operating sites in China from the national grid
average emission factor to the corresponding provincial grid average emission factor. Source of 2024 emission factor: the national average power sector CO2 emission factor for 2022, which
is 0.5366 kg CO2/kWh, as specified in the Announcement on Issuing the 2022 Power Sector CO2 Emission Factors issued by the Ministry of Ecology and Environment of the People's Republic of
China.
Appendix 2 Index to Guidelines No. 14 of SSE for Self-regulation of Listed Companies - Sustainability
Report (Trial)
About This Report
Dimension No. Topic Article Chapter/Section
Message from the
Chairman and CEO 2 Pollutant Discharge Article 30 Emissions and Waste
About HitGen Environmental
Sustainable Corporate
Governance
Responsible Value Chain
Employees and Community
Society Equal Treatment for Small and Medium-
Environment
Sized Enterprises
Data Security and Customer Privacy
Appendix Protection
Appendix 1 ESG Employee Rights, Employee Well-Being, Talent Attraction and
Performance 17 Employee Article 50 Retention, Employee Training and Development, Health and
Safety
Appendix 2 Index to
Guidelines of SSE 18 Due Diligence Article 52 Business Ethics and Compliance
Appendix 3 Index to PSCI 19 Stakeholder Communication Article 53 Corporate Governance
Sustainability-related
Principles
Governance 20 Anti-bribery and Anti-corruption Article 55 Business Ethics and Compliance
The Company's core business focuses on drug discovery and preclinical research, with all R&D activities conducted in laboratories built in compliance with regulations. These activities do not
involve ecologically sensitive areas such as ecological conservation redlines, nature reserves, or key ecological function zones, and the Company's production and operations have not had a
significant impact on ecosystems or biodiversity.
Appendix 3 Index to PSCI Principles for Responsible Supply Chain Management
About This Report
Dimension No. Issue Chapter/Sectio
Message from the Sustainable Corporate
Chairman and CEO Governance
Sustainable Corporate
Governance
About HitGen Sustainable Corporate
Governance
Sustainable Corporate
Governance
Sustainable Corporate
Governance Sustainable Corporate
Governance and Governance
Management 1.6 Documentation Employees and Community
Responsible Value Chain System
Sustainable Corporate
Governance
Employees and Community
Sustainable Corporate
Governance
Sustainable Corporate
Environment Governance
Appendix 2.1 Patient Safety and Access to Information Employees and Community
Appendix 1 ESG Sustainable Corporate
Performance Governance
Appendix 2 Index to Sustainable Corporate
Guidelines of SSE Governance
Appendix 3 Index to PSCI Ethics 2.4 Animal Welfare Responsible Value Chain
Principles
Sustainable Corporate
Governance
Dimension No. Issue Chapter/Sectio
About This Report 3.1 Freely Chosen Employment Employees and Community
Message from the 3.3 Non-Discrimination Employees and Community
Chairman and CEO
Human Rights 3.4 Fair Treatment Employees and Community
About HitGen
Sustainable Corporate 3.7 Local Communities Employees and Community
Governance
Occupational
Responsible Value Chain Health and Safety
Employees and Community
Environment
Environment
Appendix 5.5 Biodiversity Conservation Environment
Appendix 1 ESG 5.6 Spills and Releases Prevention Environment
Performance
Appendix 2 Index to
Guidelines of SSE
Appendix 3 Index to PSCI
Principles
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