About This ReportZhonghong Medical 2023Corporate Social Responsibility Report
About This Report
Basis of Preparation
Reporting Scope
Data Source
Access to This Report
Reference
This is the second Corporate Social Responsibility Report disclosed by Zhonghong Pulin Medical Products Co., Ltd. Based on the principlesof standardization, transparency, objectivity, and comprehensiveness, the report presents stakeholders with the social responsibility practicesand performance of Zhonghong Medical in the aspects of operation, environment, society, and charity.
This report is prepared according to theGuidelines for Corporate Social Responsibility of Listed Companies Listed on Shenzhen StockExchangeand theNo. 2 Guidelines on Self-regulation of Listed Companies Listed on Shenzhen Stock Exchange - Standardized Operation ofListed Companies on the ChiNext Board, and with reference to theGRI Sustainability Reporting Standards(GRI Standards) issued by GlobalSustainability Standards Board (GSSB) and theGuidelines on Corporate Social Responsibility Reporting for Chinese Enterprises(CASS-ESG
5.0) issued by the Chinese Academy of Social Sciences. It also draws on the ESG topics required by Wind ESG rating.
Unless otherwise specified, the information contained herein is ranged between January 1, 2023 to December 31, 2023. For someinformation beyond the above time range, the report may date back to previous years or refer to later years. This report contains informationon Zhonghong Pulin Medical Products Co., Ltd. and its subsidiaries and branches.
Unless otherwise specified, the data contained herein are from the internal materials, investigation and interview records, and other relevantdocuments of the Company. The Board of Directors of the Company is responsible for the authenticity, accuracy and completeness ofthe report and assures that there is free of misrepresentations or misleading statements. The currency used in this report is RMB, unlessotherwise specified.
Chinese and English versions of this report can be downloaded from the official website of ZhonghongMedical (www.zhonghongmedical.com). In case of discrepancies between two versions, the Chinese versionshall prevail.
For better expression and readability, “Zhonghong Pulin Medical Products Co., Ltd.” in this report is referred to as “Zhonghong Medical”, “theCompany” or “we”.Subsidiaries involved in this report are:
“Jiangxi Kelun Medical Devices Manufacturing Co., Ltd.”, referred to as “Kelun Medical Devices”;“Jiangxi Zhonghong Pulin Medical Products Co., Ltd.”, referred to as “Jiangxi Zhonghong”;“Guilin HBM Health Protections,Inc.” referred to as “Guilin HBM”;“Shenzhen MedRena Biotech Co., Ltd.” referred to as “MedRena” .Branches involved in this report are:
“Tangshan No.1 Branch of Zhonghong Pulin Medical Products Co., Ltd.”, referred to as “ the First Tangshan Branch”;“Tangshan No.2 Branch of Zhonghong Pulin Medical Products Co., Ltd.”, referred to as “the Second Tangshan Branch”;“Tangshan No.3 Branch of Zhonghong Pulin Medical Products Co., Ltd.”, referred to as “the Third Tangshan Branch”;“Tangshan No.5 Branch of Zhonghong Pulin Medical Products Co., Ltd.”, referred to as “the Fifth Tangshan Branch”;“Tangshan No.6 Branch of Zhonghong Pulin Medical Products Co., Ltd.”, referred to as “the Sixth Tangshan Branch”;“Tangshan Color Printing and Packaging Branch of Zhonghong Pulin Medical Products Co., Ltd.”, referred to as the “Color Printing andPackaging Branch”.
Contents
About This ReportMessage from the ChairmanAbout Zhonghong MedicalData 2023ESG Governance
Standardizing Environmen-tal ManagementSaving Resources for Sus-tainable OperationsPreventing and AddressingPollution to Safeguard theEcologyPracticing Green Operationto Realize the SustainableDevelopment
Driving R&D via theStrength of InnovationUpgrading Quality ThroughLean ManagementEnsuring Supply ThroughResponsible ProcurementOffering Sincere Servicesby Putting Customers First
5056
2028384854
Protecting Rights and Inter-ests Based on Equality andInclusionProtecting OccupationalHealth and Securing WorkSafetyEmpowering Developmentfor Common GrowthCaring Employees for JointProgress
Embracing Strategic Coop-eration for Win-win ResultsEngaging in Charity forInclusive Health
Improving Governance for Sta-ble and Sustained DevelopmentPursuing High-Quality Develop-ment and Forging Ahead withDue DiligenceAdopting Digital Governance toParallel Quality and E? ciencyImprovementKeeping Anti-Corruption andClean GovernanceGRI Content IndexOutlook for 2024Feedback Form
Making Healthcare Accessibleand Gloves for Health
Ingenuity SupportsExcellent Quality
Green Medical ProductsGuarantee a Beautiful Future
People Foremost UnitesEfforts from Employees
A Culture of Giving BackPromotes Well-being
Stable Operation Underpinsthe Corporate Foundation12345
Spotlight
Zhonghong Medical 2023Corporate Social Responsibility ReportMessage from the Chairman
Message from the Chairman
The year 2023 marks the beginning of exploring a Chinese path to modernization and a critical stage in marching towards the second cente-nary goal. Dedicated to the aspiration of “sincerity and excellence for ambitious goals”, Zhonghong Medical adapts to the rapidly evolving era,? rmly serves the Health China strategy, and sticks to the path of self-dependent innovation. We also speed up efforts to foster new qualityproductive forces, stimulate new momentum for high-quality development, and take sustainable development as the core growth driver. To-gether with all stakeholders, we are creating a better future for human health.
Zhonghong Medical experiments with ways to effectively combine ecological protection and industrial development and closely follows thethreats and opportunities brought by climate change. We are steadfast in delivering the concept that “lucid waters and lush mountains are in-valuable assets” in the new era. Therefore, we e? ciently promote green and low-carbon production, accelerate the building of green factories,and work for the green and low-carbon transformation of production bases, which lays the foundation for green and high-quality development.
Guided by a “high-end and differentiated” product strategy, Zhonghong Medical focuses on market changes and the latest niche andstrengthens original and pioneering research, followed by accelerated efforts to translate innovation into productivity. We continue to sharp-en our core competitiveness through enhanced research and innovation, high-quality products and services, and diversi? ed product lines. Wehave been selected for the list of “creating the world-class specialized and sophisticated model enterprises”.
Putting social responsibility as our primary ? rst responsibility, Zhonghong Medical integrates sustainability concepts into business strategiesand processes. We calibrate our way forward following prudent, compliant, and responsible business behavior and put our business into thegeneral context of national development. Working with all stakeholders to promote fair and sharing health services, we contribute to an in-dustrial ecology of integrity and win-win outcomes.Going forward, we will bear our social responsibility and brand mission, offer better health resources and services, foster commercializationcompetitiveness, and make concerted and intensive efforts towards the goal of “becoming the future-leading smart Zhonghong Medical anda trustworthy century-old enterprise.”Our previous success foresees future progress.
We remain committed to our original aspirations and missions
We adopt clean operations for a green ecology
Achievement grows from commitment!
We concentrate on innovation and sci-tech self-reliance
Sang Shujun, Chairman
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Zhonghong Medical 2023Corporate Social Responsibility ReportAbout Zhonghong Medical
About Zhonghong Medical
Company Pro? le
Our History
Zhonghong Pulin Medical Products Co., Ltd. (“Zhonghong Medical”) was established in 2010, a core member of Xiamen ITG Holding GroupCo., Ltd. (one of Fortune Global 500 companies). Zhonghong Medical is engaged in the research and development, production and sales ofhigh-quality disposable health protection products, medical sterile equipment, comprehensive life support solutions and other medical con-sumables and equipment. We have three major business divisions, i,e, Health Protection, Safe Infusion, and Innovative Incubation, and ? veproduction bases in Tangshan in Hebei, Jiujiang in Jiangxi, Yichun in Jiangxi, Guilin in Guangxi, Shenzhen in Guangdong. The production basein Guangyuan, Sichuan is under construction. We have a R&D system formed by Beijing Research Institute, Shanghai Research Institute (tobe built), Yichun Research Institute, Shenzhen Research Institute, Guilin Research Institute and Hainan Subsidiary. The Company is amongthe top 50 listed medical equipment companies in China, a national high-tech enterprise, and is selected as “creating the world-class special-ized and sophisticated model enterprises ”.In 2023, Guilin HBM was approved as the specialized and sophisticated “little giant” ? rm.
2010-2014
2015-2020
2021
2023
2022
Our company was founded.We undertook the glove assets and businessesof Tangshan Zhonghong Pulin Group Co., Ltd.,including the First Tangshan Branch, the SecondTangshan Branch, the Third Tangshan Branch, theFifth Tangshan Branch, as well as Tangshan ColorPrinting Packaging Branch.Beijing Research Institute was established
The Sixth Tangshan Branch was established, andthe ? rst workshop started construction.The Company was renamed as Zhonghong PulinMedical Products Co., Ltd.The United Medical Inc was established.Jiangxi Zhonghong Pulin Medical Products Co., Ltd.was established.The first phase project of Jiangxi Subsidiary wasstarted, and the second phase project of the SixthTangshan Branch was put into operation.Continental Medical B.V. was established.The Company started the IPO declaration.The Company started construction of Jiangxi BasePhase II.
Zhonghong Pulin Medical Products Co., Ltd. waslisted on the ChiNext Board of Shenzhen Stock Ex-change(SSE).The Company signed an agreement with BeijingUniversity of Chemical Technology to establish theJoint Research Center for Advanced New LatexMaterials.
The Company acquired Guilin HBM Health Protec-tions,Inc., to develop latex gloves and condom prod-ucts.The Company acquired Shenzhen MedRena Bio-tech Co., Ltd.The Company established Beijing Zhonghong PulinReproductive Medical Technology Co., Ltd.
The Company acquired Jiangxi Kelun MedicalDevices Manufacturing Co., Ltd., to expand its busi-ness of safe infusion.Zhonghong Medical Supplies (Hainan) Co., Ltd.(Hainan Subsidiary) was established as a medicaltransformation and R&D platform.
Corporate Culture
Awards & Honors
Delving into healthcare industry, Zhonghong Medical is committed to becoming a digital modern enterprise bene? ting all stakeholders andleading the industry's future development. We strive to become a healthy and sustainable century-old enterprise that is trusted by customers,employees, partners, shareholders and the society. Led by the corporate mission, the Company builds a career platform to ful? ll employees'dreams of career development and personal growth. We provide the ? rst-class products and services to help the customers create a healthyand quality life. We also operate for good, contributing to the healthy and sustainable development of a better society and creating values forstakeholders constantly.
We strive to build the industry's ? rst-class digital and intel-ligent management system and operation platform, whichwill greatly enhance our competitiveness and operationale? ciency;After building an R&D system that leads the industry andcovers the whole country, our products and technologicalinnovations will become stronger. With improved innova-tion sense and ability, we will continue to lead the marketand the industry development;Putting people ? rst and going beyond pro? tability, we arededicated to create a positive and sincere energy ? eld ofZhonghong Medical to bene? t all stakeholders;When big rivers have water, the small ones are ? lled. Wewill help millions of customers start from scratch, grow inscale and go from strength to strength.
Integrity-oriented, we strive to build long-term mutually ben-eficial partnerships with stakeholders, and establish deepemotional connections with customers;We will forge a dynamic staff team with top-notch profes-sional competence, build a sound internal training systemand talent echelon, and become the preferred developmentplatform for excellent talents;Taking full advantage of mixed ownership system, we workto establish an institutional mechanism with Zhonghongcharacteristics to enhance the risk resistance capacity;Adhering to long-termism, we will steadily realize the long-term goals, expand the scale and e? ciency, improve thebrand and status, and become an industry-leading andsustainable century-old enterprise.
Creating world-class specialized andsophisticated model enterprises
Top 50 medical equipment compa-nies in China in 2022-2023
Advanced certi? ed enterprise in Chi-na’s Authorized Economic Operator
(AEO) systemTop 100 companies in China’s rub-
ber industry
2023 China health ESG outstanding
company
Core Values
Zhonghong Medical
Corporate Vision
A future-leading smart Zhonghong Medical and a trustworthy centu-ry-old enterprise
2023 pharmaceutical industry brand
list - Golden Deer Award
Faithfulresponsibility
Diligence first
MutualprogressFirst-classleadership
Outstanding case in the 2023 White Paper on ESG Practice
Observation of Chinese Enterprises
Best practice in 2022 annual reportperformance brie? ng
Becoming the future-leading smart enterpriseBecome a trustworthy century-old enterprise
Corporate MissionFul? ll the dream of growth for a healthy life
Talent conceptUtilize employees’ strengthsHire excellent talents
Innovation concept
Innovate in integrationTranscend in learning
Strict quality controlStandards enforcementQuality conceptCost concept
Lean managementDriven by data
About Zhonghong Medical
Zhonghong Medical 2023Corporate Social Responsibility ReportData 2023
E
S
G
Top 50 companies of Gulin in 2023
Medispo medical gloves are shortlisted in the 2022Guangxi Recommended Catalogue of Distinguished
Industrial Products (Second Batch)
2022 Guangxi contract-abiding and credit-
worthy company
Zhonghong Medical is listed on the “demonstrationenterprises of excellent product items in GuangxiZhuang autonomous region ” and “Guangxi Zhuangautonomous region green factories”
Guilin HBM
MedRena
Governance
Material ESG topics identi? ed
Domestic and international exhibitionsthat we registered and prepared
Roadshows organized
Academic conferences in anes-thesiology, nursing, and other? elds attended
Reports and announcementsreleased on the Shenzhen StockExchange
Extraordinary shareholders’ meet-ings and annual shareholders’meetings
Reduction of o? ce paperconsumption70%
EnvironmentalTotal investment in environmentalprotection
8.92
millionRMB
Total recyclable waste1,875.78tons
SocialTotal employees
4,352
R&D personnel
Percentage of female employees69%Accumulated patented inventions
R&D investment
79.10
Business scope covered by qualitymanagement system certificationfor four consecutive years
million
100%
Medispo medical gloves are shortlisted in the 2022Guangxi Recommended Catalogue of Distinguished
Guangxi Recommended Catalogue of DistinguishedIndustrial Products (Second Batch)
Industrial Products (Second Batch)worthy company
worthy companyZhonghong Medical is listed on the “demonstration
Zhonghong Medical is listed on the “demonstrationenterprises of excellent product items in Guangxi
enterprises of excellent product items in GuangxiZhuang autonomous region ” and “Guangxi Zhuang
Zhuang autonomous region ” and “Guangxi Zhuangautonomous region green factories”
autonomous region green factories”MedRena
Data 2023
Specialized and sophisticated small-
and medium-sized enterprise
Innovative small- and medi-um-sized enterprise
High-tech enterprise
RMB
MedRena
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Zhonghong Medical 2023Corporate Social Responsibility ReportESG Governance
ESG Governance
Adhering to the ESG concept, Zhonghong Medical integrates ESG governance into its daily operations and production management, exten-sively conducts communication activities with stakeholders, dynamically identi? es ESG issues concerned by stakeholders, and clari? es thework focus.With great importance to the leadership of the Board of Directors in ESG management, we organize and lead departments to improve sys-tems and promote information disclosure on key ESG issues, continuously optimize ESG management mechanisms and processes, andsystematically improve our level of ESG decision-making. Meanwhile, we focus on the forefront trends of ESG, actively apply for ESG awards,and promote our excellent ESG practices through o? cial WeChat and other means, so as to establish a responsible image.
We put a high value on communication with stakeholders and actively listen to the expectations and demands of all stakeholders with pos-itive responds. During the reporting period, we identi? ed seven types of main stakeholders, including government and regulatory agencies,shareholders and investors, customers, employees, suppliers and partners, environment, and community.
Stakeholder communication
StakeholdersIssues of concernsWays of engagement
Government andregulatory agencies
·Compliance with laws and regulations·Response to national strategiesStandardized·Corporate governance·Anti-corruption and cleaner governance
·Implementation of regulatory policy guide-
lines·Participation in research and visits·Daily supervision reports·Information disclosure
Shareholders and investors
·Stable business performance·Good corporate governance·Transparent information disclosure·Comprehensive risk management·Protection of stakeholder rights andinterests
·General meeting of shareholders·Periodic reports and information bulletins
·Investor research and communicationmeetings·Roadshows and reverse roadshows·Online communication platforms
Customers
·Responsible marketing·Protection of customer rights and interests·Improvement of service quality·Wider service channels·R&D of innovative products
·Responsible marketing system documents·Customer complaint handling·Product presentation·Customer discussion and return visits·Official website, official Weibo, APP andother communication platforms
Employees
·Protection of employee rights and interests·Promotion of employee growth·Occupational health and safety·Salary and bene? ts·Inclusion and diversity
·Trade union·Symposiums·Internal training system·Performance and salary managementsystem·Trade union?s cultural and caring activities
Suppliers and partners
·Consultation on an equal footing·Honesty and trustworthiness·Complementary advantages·Mutual bene? t
·Exchange visits·Panel Discussion·Supplier evaluation·Industry research
Environment
·Energy saving and emission reduction·Green manufacturing·Green operation·Green supply chain
·Implementation of energy saving andemission reduction policies·Environmental data collection anddisclosure·Digital energy management platform·Green public welfare activitiesCommunity
·Sudden disaster and accident response·Devotion to public welfare·Response to social concerns
·Emergency response training·National thematic public welfare activities·Charity fund
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Based on Company’s development strategies, stakeholder concerns, and industry hotspots, we conducted in-depth research and developed adatabase of ESG topics, with 21 identi? ed material social responsibility topics. The materiality is prioritized by questionnaires and stakehold-er interviews, and as the basis for the preparation of this report.
Presentation of material topicsMateriality assessment
Significance to Zhonghong MedicalExtremely high
Extremely high
High
Significance to stakeholders
1812
Environmentalresponsibility
Climate change and car-
bon emissions
Use of resources
Waste and pollutant dis-
charge
Green o? ce
Productresponsibility
Product quality and safetyScienti? c research tech-nology and innovationMedical accessibilityData security and privacyprotectionResponsible marketingHigh quality customerservice
GovernanceresponsibilityCorporate governanceInvestor relations man-agementCompliant operationBusiness ethics andanti-corruptionBuilding a responsiblesupply chain
Social responsibility
Equal employment andprotection of rights andinterestsEmployee training anddevelopmentOccupational health andsafetyEmployee careIndustry developmentSupporting communi-ty-based charity
Zhonghong Medical Materiality Matrix
ESG Governance
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Zhonghong Medical 2023Corporate Social Responsibility ReportMaking Healthcare Accessible and Gloves for Health
SpotlightMaking Healthcare Accessibleand Gloves for HealthOn April 7, 2023, World Health Day, China set the theme as “transferring high-quality medical resources to the grassroots and achieving healthfor all” . The vision of “health for all” is to enable all individuals to live a ful? lling life in a peaceful, prosperous, and sustainable world. Over theyears, centering around the protection needs of the medical industry, Zhonghong Medical has expanded the boundary of medical products,strengthened health publicity and education, and ful? lled social responsibilities. These endeavors are intended to provide affordable and sus-tainable medical services to all.
Reputed for product quality, Zhonghong Medical supplies the domestic marketand more than 80 countries and regions such as North America, Europe, andJapan. We have been rated as V-level customers by China Export & Credit In-surance Corporation . The Company has formed a pattern of “one center, threepillars, and eight regions”, providing high-quality medical products and enablinghigh-quality medical services for users worldwide.In 2023, Zhonghong Medical expanded medical product categories. We im-proved our high-end product R&D capabilities and strategically acquired GuilinHBM Health Protections,Inc. and Shenzhen MedRena Biotech Co., Ltd. We new-ly increased a dozen upmarket surgical gloves such as protein non-detectablesurgical gloves, extended and thickened surgical gloves, KBD surgical gloves,etc. We also introduced new product syringe pumps, infusion pumps, and infu-sion information collection systems to see that more medical innovative prod-ucts bene? t people worldwide.
Providing solutions to people allergic to latex
Helping interventional radiologists stay away from radiation problems
Medical gloves, a necessity for health professionals, have everything to do with the safety of medical staff and patients. Aiming to addresschallenges in the protection of medical staff, Zhonghong Medical specializes in protection products for various scenarios and ? lls the tech-nological void in China, offering safe, practical, and economical medical devices through sci-tech innovation.
Since latex gloves can block microbial infections, they are widely used in labo-ratories in healthcare services, food services, or research institutions. Medicallatex gloves are seen as the best option for surgical and other aseptic proce-dures. However, some healthcare professionals allergic to the proteins con-tained in natural latex gloves may have an allergic reaction when using suchgloves.In response to such latex allergy issues, Guilin HBM employs innovative tech-nologies to overcome obstacles, thus creating polyisoprene gloves (PI gloves).Since the product contains no latex protein or allergen, it can better protectmedical staff who are prone to allergies.At the same time, Guilin HBM uses advanced protein removal technologyto reduce the level of protein in natural latex products and develops proteinnon-detectable gloves to minimize allergens. Tested by Akron Rubber Devel-opment Laboratory, Inc. (ARDL) in the United States , the protein of the productis non-detectable, far below the level of 50 micrograms per square centimeterstipulated by the FDA. The gloves serve as an effective solution for medicalstaff with latex allergies.
In interventional radiology, doctors are exposed tolots of X-rays every day. They have to put on bulkylead-lined garments for procedures. However, be-cause procedures require delicate operations, theystill expose their hands to radiation.To protect interventional radiologists from radiation“attacks”, Guilin HBM has developed lead-free light-weight interventional radiation protective gloves.The product is soft, lightweight, and easy to wear. Itsradiation protection indexes far exceed the nationalstandard. The gloves have passed the testing by the
Medispo polyisoprene gloves
The lead-free and lightweight interventional radiation protective gloves
Medispo Protein Non-detectable
radiation measurement station of the China Institute for Radiation Protection . After being launched, the product capturesthe attention of interventional radiologists at home and abroad, providing them with solid wearable protection.
Countries and regions where ourproducts are sold
The Company has set up subsidiariesin Beijing, Hong Kong, the UnitedStates, and the Netherlands, rankingamong the top in the world with anannual production of
80+
Resolving Thorny Issues in the Medical Industry
Expanding our Presence and Product Categories
billion gloves
| 16 | 17 |
Product portfolio
Product accessibility
Publicizinghealthknowledge
Health protection Safe infusionInnovative incubationMedical examinationglovesMedical surgical glovesMedical radiationprotection glovesNon-medical protectiveglovesCondomsFinger cots……
Infusion setsSyringesIndwelling needlesBlood collection tubesNasal oxygen cannulaSterilized connectorsDisposable nebulizers……
Infusion pumpsSyringe pumpsEnteral nutrition pumpsPortable analgesic pumpsDS50 Series workstations……
Since eight agencies including the National Medical Security Administration issued theGuiding Opinions on Carrying out the CentralizedBulk-buying and Use of High-value Medical Consumables on an Institutionalized Basis , the centralized bulk-buying policy has gradually cur-tailed the price of high-value medical consumables to a reasonable level. It reduces patients’ burden and transaction costs of enterprises andbetter guarantees healthcare accessibility.Leveraging our competitive strengths in product quality, production capacity, supply stability, and corporate credit, we are active in centralizedbulk-buying projects, sacri? cing some pro? ts to make medical consumables more affordable so that more people can afford medical prod-ucts and services.
When going global, Zhonghong Medical ensures fair pricing by considering the local economic development, per capita income, and health-care level, with differentiated product pricing strategies. More preferential prices are given to consumers in Africa, the Middle East, SouthAmerica, and other regions to reduce their medical burden.
Zhonghong Medical engages in a variety of academic exchanges to improve medical services. Based on the o? cial WeChat public account,Zhonghong Medical popularizes health knowledge to raise health awareness, allowing more people to know how to protect themselves ap-propriately and how to use medical devices.
On May 5, 2023, World Hand Hygiene Day , we helped people establish a correct awareness of handhygieneOn June 14, 2023, World Blood Donor Day , we popularized the precautions for blood donorsOn July 28, 2023, World Hepatitis Day , we gave tips for hepatitis preventionOn October 16, 2023, World Analgesia Day , we reminded the public to pay attention to pain and edu-cate the public on pain diagnosis and treatmentOn December 1, 2023, World AIDS Day , we popularized HIV/AIDS prevention knowledge
Safe infusion series products of Kelun Medical Devices successfully won several bids for bulk-buying projects,covering Jiangxi, Henan, Hunan, Fujian and other provinces and municipalities across the country.
Reducing the Cost of Medical Consumables
Publicizing Health Knowledge
Engaging in
academicexchanges
We participated in the 28th National Annual Con-ference of Anesthesiology of the Chinese MedicalAssociation , where we showcased new anestheticproducts, shared the latest research results and clin-ical practices with professionals, and promoted thecapacity building of anesthetic services
We participated in the 27th National Operating RoomNursing Academic Exchange of the Chinese MedicalAssociation, where we discussed in depth the latestoperating room nursing issues with professionals,in combination with the Company’s operating roomnursing products, contributing our wisdom to im-prove the quality of operating room nursing
In 2023
Making Healthcare Accessible and Gloves for Health
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About This ReportZhonghong Medical 2023Corporate Social Responsibility Report
Ingenuity SupportsExcellent Quality
Regarding innovation as the driver for corporate growth,Zhonghong Medical maintains the quality concept of “Strictquality control and standards enforcement” to pursue first-class quality. Staying focused on the latest technology trends,we protect the life and health of the public, improve the sup-plier management system, and ensure a sustainable supplychain. By doing so, we aim to provide high-quality productsand services for global customers and partners.
Alignment with the UN SDGs
Zhonghong Medical 2023Corporate Social Responsibility Report Ingenuity Supports Excellent Quality
Driving R&D via the Strength of Innovation
Adhering to the innovation concept of “innovate in integration, transcend in learning”, Zhong-hong Medical attracts highly skilled professionals, puts in place a sustainable innovation plat-form, and always addresses technical problems. We have trained an R&D team experienced inunique formulas, production lines, and product design to guarantee our strategic vision and thecontinuity of technological innovation.Putting the protection and management of independent intellectual property rights high on ouragenda, we continuously improve our production processes and have formulated theRewardMeasures for R&D Achievements. Meanwhile, we encourage employees to apply for patentsand R&D personnel to sign up for national, provincial, or municipal projects and the Company’sself-invested projects to keep the Company up to date with the latest technology and the ener-gy conservation trend. In theNew Product Development Management Measures, we standard-ize the process of new product development and encourage the development and release ofnew products.
R&D investment
R&D personnel
79.10
million RMB
In 2023
The provincial technology innovation center platform “Hebei Medical Glove Technology Innovation Center” has passed the evaluation.We have developed super-durable nitrile gloves, super-soft nitrile gloves, nitrile gloves with a diamond pattern , and other products.Super-soft nitrile gloves and nitrile gloves with a diamond pattern have been manufactured.We have designed rubber chemical and fatigue resistance testing machines to quantify the wearability of nitrile gloves.We have developed automatic supplying equipment for nitrile production lines to control liquid levels automatically.
Guilin HBM intends to solve the production challenges of polyurethane condoms. Adopting water-based mold release agentsinnovatively, which is different from the conventional dry method of synthesis , the new wet chemical method allows the materialto fully absorb water during production, thus avoiding losing water from the body after using the product. The new method is asuccessful attempt to end the technological monopoly possessed by foreign counterparts. In August 2023, the tank-reactor-basedpolyurethane project was put into production, realizing the independent production of polyurethane condom emulsion to meet themarket demand for high-end polyurethane products.
Guilin HBM tank-reactor-based polyurethane project makes an all out e? ort to breakthrough the “stranglehold” key technologies
Committed to the high-quality development driven by innovation, Zhonghong Medical continues to explore and advance in the ? eldof arti? cial latex materials. After several times of product development and trial production, we ? nally successfully produced "poly-isoprene condom", breaking the long-term foreign technopoly. In 2023, the product obtained the Registration Certi? cate for Medi-cal Device of People's Republic of China issued by the Medical Products Administration of Guangxi Zhuang Autonomous Region.
Self-developed polyisoprene condom successfully breaks the years of foreign technopoly
new products.The provincial technology innovation center platform “Hebei Medical Glove Technology Innovation Center” has passed the evaluation.
Super-soft nitrile gloves and nitrile gloves with a diamond pattern have been manufactured.
Super-soft nitrile gloves and nitrile gloves with a diamond pattern have been manufactured.We have designed rubber chemical and fatigue resistance testing machines to quantify the wearability of nitrile gloves.
Upgrading Quality Through Lean ManagementZhonghong Medical has formulated theInternal Audit Control Procedureand conducts internal qualityaudits every year to ensure the effective operation of the quality management system. We also activelycooperate with the audit and supervision of external third-party organizations, and have passed the FDAcerti? cation, CE certi? cation, ISO 9001, and ISO 13485, and MDSAP. Our products have reached the rele-vant international product standards. Relying on the physical property laboratory and pinhole inspectionlaboratory, the Company sets up a quality group to carry out targeted inspection of products to ensurethat the products comply with the relevant standards of China, the United States, Europe and othercountries and regions. We carry out on-site inspections of suppliers, introduce automatic identi? cationdevices, optimize product quality manuals and control procedures to realize a whole life cycle productquality control.In 2023, Zhonghong Medical conducted product recall simulation and product traceability simulationexercises in conjunction with foreign regulations and relevant requirements in the Company'sControlProcedures for Product TraceabilityandControl Procedures for Recall of Medical Devicesin order tocontinually satisfy the quality requirements of end customers. During the reporting period, there was norecall incident caused by the delivery quality of product.
%
%
Pass rate in 68 quality-relatedexternal audits
Business covered by thequality management systemcerti? cation for four consec-utive years
We have designed rubber chemical and fatigue resistance testing machines to quantify the wearability of nitrile gloves.In 2023
Regulatory requirements formedical devices
Resource
managementProduct realization process
Customer-related processesDetermination of productrequirementsCommunication withcustomersContract review
Product realizationProcess planningQuality offormation plan
DesignDevelopment
Supplierevaluationand selection
Finishedproductinspection
Productsdelivery
Meeting customer requirements and regulatoryrequirements for medical devices
Measurement, analysis and improvement processes
Customersatisfactionevaluation
Internalaudit
Processmonitoring
Productmonitoring
Identi? cation andimplementation ofnecessary amendments
Corrective actions
PrecautionsFeedback
Monitoring and measurement
Manufacturing andprocessing
Procurement
Unquali? edproduct control
Data analysis
Improvement
Supportive process
Management responsibilities
(Where plasticization formingis a special process)
Main process of product realization
Flow Chart of Zhonghong Medical Quality Management System
Humanresources
Infrastructure
Quality policyQuality objectivesQuality planningInternal communicationWorkenvironment
In 2023
In 2023
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Ensuring Supply ThroughResponsible ProcurementAttaching great importance to the quality and sustainability of supply chain, Zhonghong Medical continuously improves the supplier manage-ment system, and raises the awareness of corporate social responsibility among our supplier partners. Through supplier training and guid-ance, we strengthen communication with suppliers to build a sustainable supply chain.
Following theProcurement Management System, Zhonghong Medical ensures that the purchaser signs theIntegrity Commitmentand signstheSupplier Code of Conductwhich includes environmental and labor requirements with suppliers. We have formulated a sustainable supplychain policy, established long-term strategic partnerships with the upstream and downstream partners, and also provide technical support tocoordinate supply chain development.
Zhonghong Medical has formulated theSupplier Risk Management Procedureto identify, assess, monitor and respond to various risks thatmay arise from suppliers, so as to ensure that the Company can effectively manage supplier risks. Based on the management results, theCompany will continue to improve the management process, enhance the quality and e? ciency of management, and safeguard the stabilityof the supply chain.
Signing theSuppliers Social Responsibility Audit Checklist and theSupplier Commitment for Compliance and Continuous Improve-ment of Social Responsibilitywith suppliers, Zhonghong Medicalrequires suppliers to undertake and ful? ll a series of social respon-sibilities to ensure their business activities comply with the princi-ples of morality, law and fairness. With this measure, we can alsosafeguard employees’ rights and interests, promote environmentalprotection and resource conservation, and actively contribute to thesustainable development of the society and the environment.
suppliers, including
suppliers in the Chinese mainland and
suppliers from Hong Kong, Macao, Taiwan, andoverseas (
new suppliers)Purchasers who have signed the Integrity Commitment
100%
In-house purchasers who have passed sustainable procure-ment training100%
Based on the technical and quality requirements of different materials, we tentatively select suppliers of rawand auxiliary materials that meet the Company’s requirements. Then we send the SupplierSurvey/EvaluationFormto examine their quali? cations, product quality, technology, and environmental management capabilities.Those who pass the audit are included in the management of quali? ed suppliers.
Supplier review
Supplier exit
Supplierselection andaudit
We conduct annual comprehensive evaluations of suppliers based on supply inspection, performance, quality,and the stability of supplied materials before issuing theSupplier Annual Audit Report. At the same time, weconduct on-site evaluation on some suppliers and theSuppliers On-site Evaluation Reportis formed and kepton ? le.
Based on the comprehensive evaluation of suppliers, an evaluation report is sent to suppliers with serious sup-ply quality and service problems. Their quali? cations will be canceled after reviews.In 2023
Supply chain management
Supplier management processSupplier management processSocial responsibility of suppliers
Supplier develop, certi? -cate and introduce
Classi? ed managementof suppliers and materials
100%Supplier develop, certi? -
| Supplier develop, certi? - | Classi? ed management |
of suppliers and materials
Suppliers on-site evaluation
Strictly comply with national andlocal labor laws and regulations,international labor standards andrelevant industry regulations.Prohibit child laborProhibit forced laborProhibit discriminationEnsure working hours in accordancewith national legal standardsGuarantee reasonable and compli-ant salaries and bene? ts
Strictly comply with national andlocal environmental protection lawsand regulationsBoast environmental quali? cationand good environmental perfor-mance to realize green supply chainmanagementEstablish and improve the environ-mental management system toensure the systematic and long-term effectiveness of environmen-tal protection.
Strictly comply with national andlocal laws and regulations onhealth and safetyProvide a safe working environ-ment and necessary protectiveequipmentConduct employee health andsafety trainingDevelop health and safetyemergency response plan andconduct regular emergency drillsAdvance the health and safe-ty management system andimprove the health and safetymanagement level
Employees’ rights and interestsEnvironmental protectionHealth and safety
of suppliers and materialsClassi? ed management
Classi? ed managementof suppliers and materials
Performance manage-ment and improvement
of suppliers
Risk management andtermination of suppliers
Ingenuity Supports Excellent Quality
of suppliers and materials
| 24 | 25 |
O ering Sincere Services by PuttingCustomers FirstBy providing high-quality services and solving practical problems for customers at homeand abroad, Zhonghong Medical has established stable partnerships with hundreds of over-seas customers while serving domestic customers wholeheartedly.
With theCustomer Feedback Control ProcedureandCustomer Complaint Control Procedure
in place, Zhonghong Medical has perfected the customer complaint handling process, lis-tened to customer demands, and practiced responsible marketing. In accordance withAdver-tising Lawand other laws and regulations, we provide detailed and true product information,enhance the compliance audit of publicity materials and promotional information, and avoidunfair marketing or misleading information about products and services to effectively protectthe legitimate rights and interests of customers. In 2023, the number of product complianceawareness training doubled, and there were no major marketing violations.
Customer satisfaction
Customer complaint handlingcompletion rate
99.89
99.10
In 2023
In 2023
Better customer services
Studying in depth custom-ers’ industry dynamics andmarket competition
Establishing customer com-munication channels to stayclose to customers
Listening to customer opin-ions and feedbackExploring the hiddendemands and problems ofcustomers
Seeking teamwork toshare information
%
%
Strong customerinformation security
Heightening employees’ awareness of confiden-tiality, establishing a punishment mechanism forcustomer information leakage, and keeping trackof any possible customer information leakage.
Strengthening customer information managementand swiftly getting rid of invalid customer informa-tion generated in daily o? ce work con? dentially.
Committed to building long-term and stable cooperative relationships and promoting exchanges and collaboration, Zhonghong Medical es-tablishes an effective communication channel with suppliers, and communicates with suppliers on a regular basis, to optimize the coopera-tion process and improve operational e? ciency.
Zhonghong Medical carries out supplier training to enhance suppliers' awareness of cooperation, promote communication and collaborationwith suppliers, and facilitate the sustainable development of the supply chain. At the same time, targeting the problems and shortcomings ofthe suppliers during the cooperation, the Company provides speci? c guidance, which can effectively improve the suppliers' ability and servicelevel, thus improving the e? ciency and quality of the overall supply chain.
Sustainable supply chain
Suppliers management systemMessages, social medias, and e-mails
Telephone calls, online meetings, and instant messengers
Regular offline face-to-face meetingsIndustry exhibitions and forums
Suppliercommunication
Supplier training
Supplier guidance
Product knowledge andtechnical standards training
Business process and operationstandardization training
Quality control and continuousimprovement trainingHelping suppliers to under-stand the Company's productcharacteristics, technicalspecifications and qualityrequirements, to ensure thatthe products in line with theCompany's standards.
Introducing the Company’sprocurement process, orderprocessing, and delivery re-quirements to help suppliersget familiar with and complywith the Company’s businessnorms.
Equipping suppliers with qual-ity control methods and toolsto improve product qualityand productivity.
Business cooperation andcommunication
Technologyinnovation and R&D
Sharing effective commu-nication skills and coopera-tion experience to promotesmoother cooperation.
Legal and compliancerequirements
Emphasizing requirementsfor employee rights and inter-ests, environmental protec-tion, health and safety.
Encouraging suppliers to pay at-tention to industry dynamics andtechnology development trends,sharing the Company's techno-logical innovation achievementsand experience, and guiding sup-pliers to carry out technologicalinnovation and R&D.
Ingenuity Supports Excellent Quality
| 26 | 27 |
About This ReportZhonghong Medical 2023Corporate Social Responsibility Report
Zhonghong Medical ful? lls the responsibility of environmentalprotection and acts in response to China’s 30?60 Decarbon-ization Goal by saving energy, controlling pollution and emis-sions, and reducing negative environmental impact. What’smore, we explore green operations, improve resource man-agement capabilities, lead the development of green technol-ogy, and raise the public’s awareness of energy conservationand environmental protection.
Alignment with the UN SDGs
Green MedicalProductsGuarantee aBeautiful Future
Zhonghong Medical 2023Corporate Social Responsibility ReportGreen Medical Products Guarantee a Beautiful Future
Standardizing Environmental ManagementFollowing theEnvironmental Protection Law of the People's Republic of China , Law of the People's Republic of China on Evaluation of En-vironmental Effects, Regulations on the Management of Environmental Protection of Construction Projects, and other laws and regulationsgoverning environmental protection, we have formulated several environmental protection management policies and standardized the envi-ronmental management system. During the reporting period, there were no violations of laws and regulations related to environmental pro-tection.
When it comes to environmental management, Zhonghong Medical assigns designated personnel to get in charge of comprehensive envi-ronmental impact assessment and pollutant discharge permit declaration. We strengthen the operation and management of environmentalprotection facilities, put forward environmental emergency plans and emission monitoring plans, and regularly launch environmental super-vision and inspection. We also keep updating the procedure and structure of the environmental management system for the green develop-ment of the Company.Zhonghong Medical environmental management system
Implementing policies, industry
standards, laws and regulations
Issuing environmental protectionrequirements and objectives
Formulating environmental protectionmanagement policies and emergency plansSupervising environmental protectionEvaluating environmental protectionReporting and handling problems
Zhonghong Medical ISO 14001 environmental
management system s certification
Guilin HBM ISO 14001 environmental management
systems certification
Guided by the concept of green manufacturing, GuilinHBM continues to raise resource e? ciency and controlpollution. With the goal of “energy saving, consump-tion and pollution reduction”, Guilin HBM continues tooptimize its measures in internal production manage-ment, equipment selection, use of raw and auxiliarymaterials, and waste treatment. During the reportingperiod, the company was granted the title of “GreenFactory of Guangxi Zhuang Autonomous Region ”.
Guilin HBM recognized as a “Green Factory”
Stronger emergency response: We have formulated environmental emergency plans, which are reviewed byexperts and registered. In addition, emergency rescue leading groups, working groups, and emergency rescueteams are set up to standardize emergency response procedures, conduct regular drills, and heighten aware-ness of environmental risk prevention.
Regular environmental monitoring: We plan self-monitoring and entrust a third-party agency to regularly assessenvironmental risks. The test report is sent to relevant platforms and the ecological and environmental protec-tion department to accept regulatory and public scrutiny.
More investments in environmental protection. We regularly maintain environmental protection facilities to en-sure their stable operation, increase investment in environmental protection, and upgrade waste gas and waste-water treatment facilities as well we solid waste temporary storage facilities.
Environmental management system
In 2023Total investment in environmental protection
8.92
RMBmillion
Measures to bring environmental risks under control
| 30 | 31 |
Natural resources underpin human survival. Zhonghong Medical attaches great importance to the use of resources during business opera-tions, advocates resource saving and recycling, and integrates the concept of sustainable development into daily production.
Zhonghong Medical urges branches and subsidiaries to formulate theEnergy Conservation Reward and Punishment Management System,Energy Conservation Publicity and Training System, andEnergy Metering Management System. While tightening the management of energyconsumption, we optimize the energy structure, reduce energy consumption and improve energy e? ciency by upgrading technology. Theseinitiatives help reduce carbon emissions throughout the life cycle of products.
Zhonghong Medical saves water in production and operation. Based on our water-saving and consumption team, we have developed rele-vant policies, and make water-saving part of performance assessment to improve water management capabilities.
Zhonghong Medical digitalizes energy management by putting in placethe second phase of the energy management system platform. It helpsus monitor the energy consumption of all energy-demanding equipmentonline in real time through the Internet of Things. It also enables energyconsumption data statistics, analysis, early warning and display, as well ascentralized monitoring of energy production, transmission, distribution, anduse, realizing data-based, visualized, intelligent, and detailed managementof energy use and carbon emissions.
Kelun Medical Devices renovates out-dated equipment such as air compres-sors, air conditioners, and mold coolingsystems, saving RMB 899,500, 28.5%higher than the annual saving target.
The Sixth Tangshan Branch inde-pendently designed the frequency con-version control system of drying ovenfans and upgraded the oven in the pro-duction plant. It is expected to save 2.5GWh of electricity annually and aboutRMB 1.5 million.Resources usedUnit2023Plasticston
9.73
Paperton8,884.85Municipal water purchasedcubic meter1,279,361.90Groundwater usedcubic meter551,753.20
Energy Unit2023Natural gascubic meter12,810.00Steamton4,274,985.72Purchased electricitykWh130,869,938.39Diesel fuelliter59,277.50
Gasolineliter48,487.97Raw coal ton15,027.31
Tech upgrade tosave energy
Four major shifts in energy management
Extensive management
Passive managementafter an event
Empirical managementActive managementin advance
Scienti? c and quantitativemanagement
Intensive management
Single-entity energy-savingmanagement
Company-wide ener-gy-saving management
Water savingcampaign
We carry out water conservation publicityand education in daily operations, popularizewater-saving knowledge and culture, fully en-courage employees to save water, and adopttouchless faucets and water-saving toilets inthe o? ce.
We save and recycle water during the produc-tion process and reuse reclaimed water toreduce water consumption and improve watere? ciency.
Saving Resources for SustainableOperations
Energy management
Water management
Zhonghong Energy Management Cloud PlatformNote: The statistical caliber of Guilin HBM and MedRena is the annual data of 2023.
Note: The statistical caliber of Guilin HBM and MedRena is the annual data of 2023.
Green Medical Products Guarantee a Beautiful Future
| 32 | 33 |
Zhonghong Medical aims to reduce resource consumption at source. We improve the compliance rate of ? nished products by optimizingproduction processes and formulas and the precision of using raw and auxiliary materials, which are also recycled.
Zhonghong Medical strictly abides by theLaw of the People’s Republic of China on Prevention and Control of Atmospheric Pollution, Law ofthe P.R. China on Prevention and Control of Water Pollution, Law of the People’s Republic of China on Prevention and Control of Environmen-tal Pollution by Solid Waste, and Law of the People’s Republic of China on Prevention and Control of Pollution from Environmental Noise. Weimprove the pollutant discharge management system, and ensure waste gas, wastewater, and solid waste prevention facilities are designed,built, and commissioned together with the main project. We also strengthen the maintenance and management of environmental protectionequipment and guarantee that emissions from facilities meet national and local regulatory requirements.
Zhonghong Medical strictly implements national green packaging standards, designs a packaging material recycling system, replaces con-ventional packaging materials with eco-friendly ones, and reduces the use of packing materials through green design and manufacturingoptimization.
Optimized formulas
Kelun Medical Devices addscrushers next to injectionmolding machines , reducing346 metric tons of waste forthree consecutive years andRMB 722,700.
Guilin HBM optimizes the la-tex vulcanization formula anddrying process, reduces theuse of vulcanization agentsand accelerators by 10%, andimproves the product compli-ance rate by 1%.
Guilin HBM optimizes thecoagulant formula, whichcan get rid of the subsequentheating emulsification pro-cess, reduce the amount ofstarch added, and greatly im-prove water impermeability .
Packaging reduction measures
We improve the production process, and reduce internal box sizes tosave paperWe restrict the number of inner and outer boxes to reduce the wasteof unused packagingWe strengthen equipment maintenance and production process con-trol, and improve product compliance rate to reduce the number ofwaste products.
Preventing and Addressing Pollution toSafeguard the Ecology
Coal-? red boiler exhaust: Waste gas meets emission standards after a combination of SNCR de-nitration + bag-type dust removal + sodium-alkali desulfurization , and real-time detection equip-ment is installed at the discharge end to upload the emission data.Volatile organic compounds: Each branch and subsidiary adopts methods such as “high-e? ciencyspray tower -gas-liquid separator-activated carbon adsorption-catalytic combustion and desorp-tion ”, “RTO combustion , UV photolysis + activated carbon adsorption”, and installs alarms at thedischarge end to ensure that stable and standardized emissions.Waste gas
We renovate the production machines to minimize noise pollution in plants and communities.Noise
Non-hazardous waste: We collectively recycle paper and recyclable materials and ask suppliers to
recycle or dispose of waste packaging materials and latex in the manufacturing process.
Hazardous waste: Branches and subsidiaries sign the Hazardous Waste Disposal Contract with
hazardous waste disposal companies. Hazardous waste rooms are built for temporary storage
of a small amount of hazardous waste generated in the production process. Relevant information
is reported to the hazardous waste management platform of the Ministry of Ecology and Envi-
ronment. After regulatory approval, we cooperate with the hazardous waste disposal company to
transfer and treat hazardous waste. We purchase catalytic combustion equipment, reuse activated
carbon for waste gas treatment to reduce hazardous activated carbon waste, and lower the com-
pany’s environmental protection costs.Solid waste
We build wastewater treatment plants following EIA reports, install a real-time monitoring system
at the discharge end, and accept regular monitoring by the environmental protection department.
Wastewater
Raw and auxiliary materials management
Packaging material management
Pollution prevention and control measures
Green Medical Products Guarantee a Beautiful Future
| 34 | 35 |
Waste managementUnit2023Total general solid waste generatedton2,468.89Total of hazardous/medical waste
generated
ton113.60Total hazardous/medical waste
burned
ton107.56Total recyclable wasteton1,875.78
Following theHazardous Waste Management Respon-sibility System, the Sixth Tangshan Branch carried outhazardous waste management training, where thetypes, sources, hazards, and protection of hazardouswaste generated by the company are explained indetail, with hazardous waste cases discussed. Suchtraining also popularizes emergency response and im-proves the company’s capability of hazardous wastemanagement.
Conducting hazardous waste management training
More information onpollutant discharge：
Zhonghong Medical 2023Annual Report
FurtherReading
Practicing Green Operation to Realize theSustainable DevelopmentIntegrating environmental protection into its daily operations, Zhonghong Medical advocates green o? ce and low-carbon travel to make thegreen concept take deeper roots in the heart of the people .
Decrease of o? ce paper
%
Green officeGreen travelGreen cultureWe promote paperless officeand use paperless documentmanagement systems such asOA system, electronic ? nancialfiling system, ERP system,human resource managementsystem, and CRM sales man-agement system.We advocate video conferenc-ing to reduce carbon emissionscaused by business travel.
We encourage employees tocommute by walking, cycling,public transportation, or car-pooling.
We carry out activities on envi-ronmental protection publicityand education, and organizeemployees to plant trees andclassify waste.
CO
Note: The statistical caliber of Guilin HBM and MedRena is the annual data of 2023.
Green Medical Products Guarantee a Beautiful Future
Committed to the concept that "lucid waters and lush mountains are invaluableassets", Guilin Hengbao Health Protection Co., Ltd. unswervingly follows thepath of low-carbon and eco-friendly development. It restrains itself from dis-charging wastewater into nearby rivers or industrial exhaust into the air. In 2023,the company passed the ? nal evaluation of the ? rst group of "zero waste cells"in Guilin, becoming one of the ? rst "zero-waste factories" in the city.
Guilin Hengbao Health Protection Co., Ltd. is included inthe first group of "Zero Waste Cells" in Guilin
| 36 | 37 |
About This ReportZhonghong Medical 2023Corporate Social Responsibility Report
Employees are the most valuable asset of a company. Com-mitted to the talent concept of “utilizing employees’ strengthsand hiring excellent talents” , Zhonghong Medical listens tothe opinions and suggestions of employees and actively pro-tects their rights and interests. Additionally, we have built asmooth career development platform for our employees andcare for their occupational health, thus continuously enhanc-ing employees’ sense of belonging and cohesion.
People ForemostUnites Efforts fromEmployees
Alignment with the UN SDGs
Zhonghong Medical 2023Corporate Social Responsibility ReportPeople Foremost Unites Efforts from Employees
Protecting Rights and Interests Based onEquality and InclusionZhonghong Medical continues to improve its employee management system, deepens democratic management mechanisms, and improvesits compensation and bene? ts system, working to safeguard the legitimate rights and interests of employees.
We strictly abide by the local laws and regulations, such as theLabor Law of the People’s Republic of China, theLabor ContractLaw of the People’s Republic of China, and theU.S. Pay Transpar-ency and Nondiscrimination Provisions, as well as internationalpolicies on labor rights such as theInternational Human RightsConventionsand theUniversal Declaration of Human Rights.On this basis, some labor management policies are formulated,including the Human Resource Management Measures (2023),theEmployee Handbook, and theEmployee Evaluation Manage-ment Measures. We completed the 2023 annual review of laborprotection as required. In communities where we do business, weensure whole-process human rights protection of relevant groupsand say no to child labor, forced labor, harassment, or abuse. Hav-ing passed several globally recognized CSR certification audits,we are exposed to lower risk in working conditions, health and
Promoting employment equity
We standardize the management of employee recruitment, induction, transfer, and resignation, and provideequal job opportunities for all applicants. On the premise of equal pay for equal work between men and women,we also strive to provide suitable positions for vulnerable groups such as disabled and vulnerable people . Thelabor contract signing rate reached 100% in 2023.
EqualEmployment
Committed to providing competitive salaries, we tie employee compensation to their positions, job quali? ca-tions, and performance, and assure basic bene? ts such as salary, working hours and leave, safe labor, socialinsurance, and bene? ts. In order to establish a sound and effective incentive and constraint mechanism for theCompany's management personnel and to mobilize the enthusiasm and creativity of personnel, we have formu-lated and implemented theManagement Measures for Compensation Assessment of Middle-level Managers.Through the establishment of the performance system, the Company decodes the overall strategy to each de-partment, which can ensure the realization of the Company's overall strategic objectives.Compensationand benefits
Our recruitment information clearly indicates the minimum age that meets legal requirements. During recruit-ment process, we verify quali? cation certi? cates such as identity card and educational certi? cate. For reserveleaders, we organize secondary veri? cation for their background. Necessary materials will be retained for timelyreview after employee induction to ensure the authenticity and veri? ability of identi? cation materials.
Forbidchild labor
We respect all employees equally in our recruitment and daily work, and do not compromise their career oppor-tunities and bene? ts due to religious belief, nationality, race, skin color, gender, age, and other factors. Any formof discrimination is opposed. We organize irregular inspections. In case of a violation of employment regula-tions, we will promptly rectify, hold accountable, and compensate in accordance with laws. In 2023, the propor-tion of female employees reached 69%, and that of employees from ethnic minority groups reached 4%.
Diversity andinclusion
Passed factory inspection conducted byBSCI, an organizations advocating social responsi-bility in the business community.Passed the Sedex Members Ethical Trade AuditSMETA.
Total employees:
4,352
Certi? ed by Worldwide Responsible Accredited Production
WRAPfor Corporate Social Responsibility Audits.
In 2023
WRAP Gold Certificate Compliance
2,933
MaleFemale≤ 35 years old36-50 years old
≥ 50 years old
Chinese mainlandHong Kong, Macao,and Taiwan, Chinaand overseas
4,336
1,419
2,823
3251,204
Number of employees divided by gender, age and geographical region
We respect the employee rights of freedom of association and collective negotiation. In accordance to internal policies such as theDemo-cratic Management System, we continuously promote democratic management based on the form of workers congress, emphasize the roleof employee democratic participation and supervision, and establish the Labor Arbitration and Dispute Mediation Committee, and a labormediation room. Employees’ problems and complaints related to human rights, performance, and promotion are collected, fed back, andpromptly handled to encourage their full engagement in corporate decision-making and management. We have established the labor unionthat has reached a written agreement with the Company on working conditions, compensation and bene? ts, occupational safety, and so on,with the collective contract covering 100% employees.
Deepening democratic communication
safety, business ethics, etc. Employees’ legitimate rights and interests such as their privacy, salaries, and bene? ts are well protected to createa fair, safe, diverse, and inclusive working environment. During the reporting period, Zhonghong Medical was recognized as a Hebei ProvincialUnit of Harmonious Labor Relations without major labor disputes or human rights complaints.
for Corporate Social Responsibility Audits.
| 40 | 41 |
Protecting Occupational Health andSecuring Work SafetyAdhering to laws and regulations such as theLaw on Work Safety of the People’s Republic of China, theLaw of the People’s Republic of China
on thePrevention and Control of Occupational Diseases, and theFire Protection Law of the People’s Republic of China, Zhonghong Medicalhas formulated and implemented theMeasures for the Management of Work Safety, and actively prevents, controls, and eliminates occupa-tional hazards and risks to safeguard the occupational health and safety of employees.
Following internal management policies such as theWork Safety Goal Management System, theManagement Measures on Work SafetyGoal Assessment,theOccupational Health Prevention and Control Plan and Implementation,and theLabor Protection Equipment Manage-ment System, we have established an occupational health and safety management system, a work safety leadership team, an occupationalhealth management organization, etc., and pass the ISO 45001 Occupational Health and Safety Management System certi? cation to effec-tively ensure the occupational health and safety of employees.
Sound safety management
We keep improving our work safety responsibility system, and sign an annual EHS target man-agement responsibility letter to include work safety goals in the assessment scope of middle andsenior managers.
We have prepared theSafety Risk Control and Hidden Danger Governance Manual. Accordingly, weevaluate the hazards of occupational diseases once every three years, and conduct occupationaldisease hazard factor testing annually. We also conduct regular daily inspections of risk manage-ment to prevent safety risks to the maximum.
We have developed safety emergency plans, and also organize special inspections on electricalsafety, chemical safety, special equipment safety, and pre-holiday safety. We strictly implement hid-den danger identi? cation and management measures, and enhance capabilities of emergency andhidden danger management.
We distribute labor protection equipment and special ones in compliance, and regularly inspect theuse, maintenance, and upkeep of health equipment, protective facilities, and supplies.
Fulfilling mainresponsibilities
Strictly controllingsafety risks
Identifying and handlinghidden dangers
Strengthening safetyprotection
To meticulously implement national laws, regulations, policies, and standards related to the building of healthy enterprises andbetter protect and improve the physical and mental health of employees, the Company has established a leadership team onbuilding a healthy enterprise to clarify safety management goals and main responsibilities. We also developed the2023 HealthEnterprise Work and Implementation Plan, which outlines the measures to strengthen the replacement of old protective equip-ment, promotion of health knowledge, and occupational health examinations, and create a safe and healthy production and workenvironment. Those initiatives effectively ensure the health and safety of employees during their labor process.
Building a healthy enterprise to ensure employee health
We strengthen the safety awareness of “safety ? rst, prevention foremost, and comprehensive management”, establish a record managementsystem of employee occupational health, and implement occupational health examinations to prevent occupational diseases. We have formu-lated an annual work safety training plan to invite internal and external professional lecturers to offer entrance training and three-level safetyeducation and training for new employees. Focusing on the prevention of occupational diseases, standardized use of labor protection devices,hazardous chemicals, ? re safety, special equipment and special operation safety, and emergency rescue, the Company comprehensively im-proves the employees’ safety awareness and safety capability. We also attach great importance to the dissemination of professional safetyknowledge and the Company's safety management regulations to external contractors, to ensure the implementation of the annual safetymanagement objectives. In the meantime, we organize various culture activities on safety such as safety knowledge lectures, work safetymonths, and ? re protection publicity months, and provide training on safety and health knowledge to all employees to safeguard work safety.
Safety culture cultivation
Investment in occupational health of employees
Participants in safety training
New cases of occupational diseases
Safety emergency drillsParticipants
Investment in work safety
Training hours
114,800
11,753
2,179,500
52,295
5,240
RMBRMB
People Foremost Unites Efforts from Employees
| 42 | 43 |
Participants1,869
Employee training hours8,140.2
Total investment in training325,931.34RMB
2,868
2,089.35
26.1
1,212
5,272.2
1,401
6,024.75
MaleFemale
MaleFemale
Primary-level personnelMiddle-level managementpersonnelSenior management personnel
Primary-level personnelMiddle-level managementpersonnelSenior management personnel
Number of trainers and training duration divided by gender and employee type
Empowering Development for CommonGrowthZhonghong Medical continuously optimizes mechanisms for talent introduction, training, retention, and development, and formulates and im-plements internal policies such as theCareer Development Management Rules, the Training Management Measures, and the ManagementMeasures for Performance Evaluation. We expand talent selection channels and organize employee performance assessment. Diversi? edtraining covering various professions have been conducted according to the annual training plan to cultivate a high-quality talent team thatmatches the Company’s strategic development. We also create a broad platform for employees to achieve career growth and personal valueto help them realize their self-worth.
We establish a talent pool, expand our channels for introducing talents, and focus on the promotion of the introduction of high-quality youngtalents. We strengthen professional training for human resources personnel, enhance our ability to identify and introduce talents, and preventrisks such as talent loss and increased employment costs by continuously promoting digital management of human resources. In terms ofcampus recruitment, we have maintained long-term cooperative relationships with multiple universities. In 2023, we participated in 30 cam-pus recruiting fairs, lectures, etc., and collected nearly 3,000 resumes. For social recruitment, we provide more opportunities to expand thecareer development through large recruitment platforms, internal recommendations, and other channels, with a total of 627 recruiting eventsorganized.
In combination with our strategic planning, we implement theTraining Management Measuresto construct a diversi? ed training systemincluding new employee orientation, professional skill enhancement training, management training, etc. and covering professional themessuch as corporate culture, product quality, equipment use, work safety, and compliance sales, with continuous optimized training contents.At the same time, we have established an online learning platform to provide courses that meet the needs of employees in various lines andjob levels, helping them quickly learn and master skills anywhere at any time. In 2023, the Company offered 37 types of training, with a totalinvestment of nearly RMB 186,100.
Optimizing talent introduction
Diversifying training
On-site SOP training for handheld terminals2023 new employee training camp
People Foremost Unites Efforts from Employees
| 44 | 45 |
Caring Employees for Joint ProgressZhonghong Medical highly values employee care and assists employees in need. For example, we launch activities, such as holiday visits,care for disabled people, and care for employees in di? culties. In addition, various themed activities are held to enrich the cultural lives ofemployees. We strive to improve employees’ sense of gain, satisfaction, and belonging.
We have established a dual career development channel that matches our development and combines with the development of employeeabilities to enhance talent team building and specialized capabilities, better a? rming and motivating the value of employees. We attach greatimportance to the selection and recommendation of outstanding young leaders. TheJob Descriptions for Subsidiaries and Departmentsunder Zhonghong Medicalis issued to clarify job responsibilities. TheFrontline O? cial Selection Methods andManagement on Selection andAppointment for Middle-Level Management Posts (Trial)are prepared to strongly support talent selection. In 2023, two phases of personnelselection were completed.
Expanding development channels
Management ladderTechnical ladder
Middle-level managementGrassroots management
Staff
Business specialistTechnical specialist
Technical personnel
We pay endowment, med-ical, unemployment, workinjury, and maternity insur-ance, and housing provi-dent fund, and provide paidannual leave, marriage andfuneral leave, etc.
Basic benefitsfor employees
We provide canteens anddormitories for free, regu-larly organize physical ex-aminations, and irregularlyhold activities with variousthemes, including holidaycelebrations, birthday wish-es, employee visits, etc.
Life and holiday care
Female employees are enti-tled to leave of antenatal care, childcare, and maternity.Care for femaleemployees
We have established thePresident Love Fund to helpemployees in need.Assistance toemployees in need
Organizing festival gala at the Lantern Festival and the Mid-Autumn Festival
Organizing diversified group activities
People Foremost Unites Efforts from Employees
| 46 | 47 |
About This ReportZhonghong Medical 2023Corporate Social Responsibility Report
As a responsible corporate citizen, Zhonghong Medical lever-ages expertise and embraces open cooperation for the devel-opment of the industry. Committed to our philanthropic aspi-rations, we engage in volunteering programs and communityvolunteer services to give back to society and share what weachieve with the public.
Alignment with the UN SDGs
A Culture ofGiving BackPromotesWell-being
4849
Zhonghong Medical 2023Corporate Social Responsibility ReportA Culture of Giving Back Promotes Well-being
Embracing Strategic Cooperation forWin-win ResultsZhonghong Medical reaches out to famous universities and research institutions in China, supports industry associations to conduct aca-demic exchanges, and helps draft industry standards. We also present ourselves in exhibitions at home and abroad to promote the high-qual-ity development of the industry. Aiming to build a digital ecosystem, the Company establishes digital ties with partners, realizes informationsharing and business collaboration, and improves the e? ciency and response speed of the entire supply chain. By contributing to the buildingand operation of the industry’s digital platform, we advance the digitalization of the industry.The Company establishes Zhonghong Medical Research Institute , and co-founds Heibei Engineering Research Center for fabrication tech-nology of high-performance rubber and plastic material for gloves with the North China University of Science and Technology. We also setup a practice teaching base to carry out directional training, which will not only meet our needs for high-end automation talents, but alsohelp college students ? nd jobs. Furthermore, we gradually establish technology cooperation with universities, such as the Chinese Academyof Sciences to support the Company’s innovation in polymer performance, production processes, and automation. At the same time, wemaintain close partnerships with renowned Grade III hospitals , airlines, and airports in China and make high-quality products more availablethrough more than 200 dealers across the country.
As an active participant in the activities of industry associations,Zhonghong Medical serves as a member or a member of the Boardof Directors of many associations. We promote industry exchangesby organizing and participating in academic seminars, forums, exhi-bitions at home and abroad, etc. We are also engaged in the formu-lation of the national standard of Medical Gloves Safety TechnologyRequirements to advance the progress of the industry.
Promoting the developmentof the industry
48th Arab Health Medical Expo on January 30 in Dubai
Hospitalar on May 26 in Sao Paulo, Brazil
The 17th China Growing Pharmaceutical Enterprises Development
Conference on November 23
RUSSIAN HEALTH CARE WEEK on December 8China International Medical Equipment Fair (CMEF) on May 14 in Shanghai
Florida International Medical Expo (FIME) on June 21 in Miami
MEDICA on November 13 in Düsseldorf, Germany
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Engaging in Charity for Inclusive Health
Upholding the core value of ? rst-class leadership, faithful responsibility, diligence ? rst and mutual progress”, Zhonghong Medical is active involunteering. For years, we have donated materials to areas hit by tsunamis, earthquakes, and ? oods and contributed to rescue efforts. Weencourage employees to sign up for community volunteer services and carry out large-scale poverty alleviation campaigns.
In August 2023, an extreme downpour struck many parts of Hebei Province, causing severe ? ooding. In particular, ZhuozhouCity was seriously ? ooded, jeopardizing economic activities and daily life. As soon as we were informed about the ? ood, wedonated 3 million disposable nitrile gloves to the affected area to help medical and sanitization staff prevent occupational haz-ards and cross-infections.
In January 2023, the Company participated in the “CaringVolunteer Service, A New Style” children-oriented activityand arranged donations, materials, and “intangible culturalheritage” cultural courses for disadvantaged families andleft-behind children in Lujia Village, Xiufeng District, ShankouVillage of Tanxia Town at Lingchuan County, and Yaotou Vil-lage of Zhemu Town at Yanshan District.
In March 2023, the Company participated in the series of ac-tivities of “Promoting the Linkage and Caring for Children andthe Elderly” hosted by the Civil Affairs Bureau of Qixing Dis-trict, Guilin City and made donations, receiving a Certi? cate ofAppreciation from the Guilin Social Work Association.
Donating 3 million gloves to Zhuozhou, Hebei Province
Engages in volunteering activitiesf
Zhonghong Medical rushes to Zhuozhou with flood relief supplies
Participates in a children-oriented volunteering
activity
Certificate of Appreciation from the Guilin Social
Work Association
Participates in the activity to care for children and the elderly
A Culture of Giving Back Promotes Well-being
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About This ReportZhonghong Medical 2023Corporate Social Responsibility Report
Stable corporate governance not only provides a solid foun-dation for stable operations, but also is the key to enhancingoverall competitiveness and practicing social responsibilities.Zhonghong Medical actively improves its business ethicsmanagement system and institutional development, effective-ly prevents various compliance risks, and strengthens auditsupervision and internal control, taking the lead to build animage of a responsible corporate citizen.
Alignment with the UN SDGs
Stable OperationUnderpinsthe CorporateFoundation
Improving Governance for Stable andSustained Development
Zhonghong Medical strictly follows the laws and regulations such as theCompany Law, theSecurities Law, theCode of Corporate Gover-nance for Listed Companies, and theRules Governing the Listing of Shares on the ChiNext Market of Shenzhen Stock Exchange, to establishits corporate governance structure system and comprehensively modernize its corporate governance system and governance capabilities.
Based on internal policies such as theArticles of Association, theRules of Procedure of the Shareholders’ Meeting, and theRules of Proce-dure of the Board of Directors, the governance structure comprised of the Shareholders’ Meeting, the Board of Directors, the Board of Super-visors, and the Management, was established. The Board of Directors is the highest governing body of the Company and regularly reportson its work to the Shareholders’ Meeting. The Board of Supervisors supervises the lawful operation of the Company and the performance ofmanagement personnel. The two organs have clear rights and responsibilities and conduct close cooperation. The Board of Directors has es-tablished specialized committees such as Strategy Committee, Audit Committee, and Remuneration Appraisal and Nomination Committee,which are responsible for the assessment, decision-making, audit, and other internal work related to the Company’s development matters.The Board of Directors consists of 9 directors, including 3 independent directors. Directors have rich management experience in the industry,? nance, law, and other ? elds, and possess the necessary knowledge, skills, and qualities to perform their duties. They are selected based onvarious factors such as age, gender, educational background, and professional experience. This approach ensures scienti? c decision-makingand governance. Independent directors express independent opinions on major issues of the Company.
Valuing the protection of investor rights and interests, we implement long-term, stable, and transparent pro? t distribution policies, and safe-guard the right to earnings of shareholders, especially minority ones. According to ourInvestor Relations Management SystemandInforma-tion Disclosure Management System, we enhance communication and unblock channels such as online phone calls, emails, meetings, andthe SSE Easy Interaction platform . We carry out communication activities such as o? ine roadshows, investor meetings, and investor on-site visits, and proactively release important information such as corporate strategies, major issues, operational status, and ? nancial perfor-mance. We also push the latest legal requirements and publicity activities in the “Investor Protection” section of our o? cial website, coveringtopics such as comprehensive registration system, knowledge competition of investor rights, and prevention of illegal futures.
Developing robust governance capacity
Protecting investor rights and interests
Shareholders meetingBoard of SupervisorsBoard of Directors
The Management
Strategy Committee
Remuneration Appraisaland Nomination committee
Board of Auditors
More information about our corporate governance and ? nancial information, please readZhonghongMedical Annual Report 2023 or visit the Company’s o? cial websitehttps://www.zhonghongmedical.com/list-49-1.html
To better popularize investor education and knowledge, Zhonghong Medical launched a series of World Investor Week activitieswith the theme of “practicing the concept of green development and promoting sustainable development”. Around themes suchas registration system, understanding of ESG reports, and green investment, we combine digital means to promote investmentknowledge to investors, better enhance their risk awareness, and protect their legitimate rights.
Zhonghong Medical actively promotes the protection of investor relations
In
In
2023
2023
Roadshows
Extraordinary shareholders’ meetingsand annual shareholders’ meetings
Reports and announcementspublished on the SSE
Board meetings Meetings of Board
of Supervisors
Meetings of theStrategy CommitteeMeetings of the AuditCommittee
All were in compliance with theRules Governing the Listing of Shares on the ChiNext Market ofShenzhen Stock Exchange and the requirements in rules of procedure.
1292
Meetings of the Remuneration Appraisaland Nomination Committee
Zhonghong Medical Governance Structure
Further Reading
Stable Operation Underpins the Corporate Foundation
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Pursuing High-Quality Development andForging Ahead with Due DiligenceBased on the important strategic opportunities in the new development stage, Zhonghong Medical deeply implements law-based gover-nance, actively promotes industrial development and integration, and continuously improves market competitiveness with a sound internalcontrol system, prudent risk control, and forward-looking industrial layout.
On the basis of improving the market position of core products, Zhonghong Medical accelerates the development of new tracks and followsup on potential cooperation opportunities, committed to returning to investors through better business performance.Creating value continuously
We completed the 2023 reviewand evaluation report on the de-velopment strategy and planningduring the 14th Five-Year Plan pe-riod, and clarified and subdivideddevelopment plans and measures.
We completed the application andconstruction plan for a world-classmodel enterprise and a specializedand sophisticated model enter-prise, and have been selected forthe list of “creating the world-classspecialized and sophisticatedmodel enterprises”.
We formed three major businesssectors consisting of health pro-tection, safe infusion, and innova-tive incubation, and expanded newbusiness lines such as high-endlatex gloves, condoms, and pumpsto seize development opportuni-ties in high-potential ? elds.
Strategic leadershipReform and innovationIndustrial investment
In2023
Business revenue
2105.25RMBRMBmillionmillion
Total assets7056.97
Stable Operation Underpins the Corporate Foundation
We have established a sound internal control system and formal and transparent audit procedures, and reported to the Board and the AuditCommittee regularly. We dynamically assess major risks and determine prevention and control measures and solutions, and ensure that thecompany’s internal control system is effective.
We stick to the bottom line of compliant operation with strict accordance to requirements of laws, such as theCompany Law, theAnti-Mo-nopoly Law, and theAnti Unfair-Competition Law, and oppose any form of unfair competition and other violations. In 2023, the Companyhad zero signi? cant legal compliance risk event.
Strengthen internal control and risk management
Legal and compliant management
We adhere to relevant internal control and regulatory requirements to establish a clear and effective internal control and riskmanagement framework with clear responsibilities and effective execution. We have developed and revised internal control man-agement policies such as theInternal Control Manual, theSales Management Measures, and theCustomer Credit ManagementMeasures to consolidate the foundation of internal control management.We dynamically identify and respond to major and important risks that affect the realization of the company's business objectives.We pay attention to the closed-loop management of risk assessment, monitoring, early warning and response, to strengthen theability to prevent and resolve. We conduct self-assessment on internal control at least once a year to ensure the achievement ofcontrol objectives.We focus on key businesses, key management processes, and management needs to conduct 9 internal audits covering logistics,sales, inventory, procurement and other business areas, implement audit recti? cation in place, and effectively promote the trans-formation and application of audit results.
We establisha soundcompliance management system,preliminaryprepare theCompliance Management Manual
to standardize the behavior of the Company and employeesfrom a systemic perspective.
We strengthen compliance risk prevention and controlinkey areas, dynamically monitor compliance risks in keybusiness areas such as engineering constructionandbidding, and establisha joint supervision mechanism toeffectively enhance the joint force of supervision.
We develop compliance management evaluation indicators, andconduct assessment and evaluation of the operational effective-ness of the compliance management system based on daily su-pervision results.
We organize training with themes of compliance manage-ment, invite external lawyers to carry out popularization oflegal knowledge, organize legal salons, and focus on compli-ance training for new employees and personnel in relevantlines. We develop compliance guidance documents to com-prehensively enhance employees' legal awareness and com-pliance ful? llment.
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We continue to implement requirements of laws and regu-lations such as theTrademark Lawand thePatent Lawtoimprove our intellectual property management mechanismand ensure that our trademark use meets the authorization re-quirements stipulated in contracts. During the reporting period,the Company was not involved in any major infringement orintellectual property disputes. In 2023, Guilin HBM successfullyobtained the GB/T 29490-2013 intellectual property manage-ment system certi? cate.
Protecting intellectual property rights
Including
patented inventions,
utility modelpatents, and
design patents
Accumulated obtained patents by Zhonghong Medical
Adopting Digital Governance to ParallelQuality and E? ciency ImprovementZhonghong Medical ? rmly believes that digital transformation is the only way for future development. Strictly complying with relevant lawsand regulations such as theLaw on Guarding State Secrets, theCybersecurity Law, and thePersonal Information Protection Law. We build asound information management system to realize the optimal allocation of corporate resources and the optimized management of businessprocesses. The Company is committed to using digital tools to improve its ESG performance, reducing industry costs and increasing e? cien-cy through innovation, and pursuing excellence to enhance market competitiveness.
Building a data-driven decision-making system, actively introducing advanced technologies such as ar-ti? cial intelligence, big data, and cloud computing, and creating an integrated platform of business and? nance to standardize data governance. Tapping into big data analysis technology, we extract customerneeds and market trends, which lend strong support for product development and market expansion.Through advanced industrial Internet of Things, together with sensors, cloud computing, and other tech-nologies, we achieve real-time monitoring and data analysis of manufacturing equipment to improveproduction e? ciency and product quality.Building the Shuwangxing Industrial Internet Platform to realize equipment connection, data collection, re-mote monitoring and other functions, and improving the intelligent level of production lines.Intensifying the cultivation and introduction of digital talents, establishing close cooperation with leadingtechnology enterprises and research institutions in the industry, and jointly promoting innovative devel-opment of digital transformation.
Enhancing digital andintellectual abilities
Developing and implementing the requirements of theNetwork Security System,ensuring that customerdata is desensitized and only accessible to relevant personnel, and the data system having passed the sec-ond-level certi? cation of “National Classi? ed Protection of Information System Security”.Carrying out training on network information security, organizing IP audits, and ensuring strict con? -dentiality of sensitive information such as customer information and information data.Actively improving the level of network security defense, monitoring and early warning, and emergencyresponse, building a security situation awareness platform, providing early warning for security com-promise , cryptographic attacks , and other behaviors, and enhancing the proactive prediction ability ofnetwork information security.
Preventinginformation risks
Developing a medium- and long-term plan for the Company’s digital transformation, and clarifyingtransformation goals, key tasks, and implementation paths.Establishing a digital transformation leadership team to coordinate work on digital transformation.ClarifyingtransformationstrategiesKeeping Anti-Corruption and CleanGovernance
Zhonghong Medical implements theCode of Professional Ethics for Employee and standardizes and implements relevant disciplinary regu-lations of the Group to strictly prevent violations like corruptions and bribery. We publicly disclose our reporting email and hotline, encouragecustomers, employees, suppliers, etc. to report improper behavior to the supervision room through email, letter or face-to-face communica-tion, and ensure the con? dentiality and proper dealing with whistleblowers and reporting clues.During important holidays and on critical moments, the Company strengthens discipline construction and creates a clean and positive atmo-sphere. We publishIntegrity Risk Prevention and Control Manual, use internal emails and o? cial notices to publish promotional materials onclean governance, and organize related warning and education activities to enhance employees’ awareness of integrity practice. Preventionand control of integrity risks are strengthened in key areas with 100% of signing rate of theIntegrity Commitment Letter by procurement per-sonnel.In 2023, the Company established a specialized teamfor the centralized rectification of corruptions in thepharmaceutical area, and carried out seven meetingson policy preaching and warning education, with400 participants. The Company issued thePlan forCentralized Rectification of Corruptions in the Phar-maceutical Areawith a focus on corruptions in thepurchase and sales of pharmaceutical sales and func-tional departments. We also strengthened supervisionand inspection, implemented main responsibilities,and held accountable relevant personnel with prob-lems in accordance with relevant regulations, so asto effectively and intensively rectify corruptions in thepharmaceutical area.
Whistleblowing email: tsjb@zhonghongpulin.cnWhistleblowing telephone: 0315-4169049
Zhonghong Medical establishes a specialized team for the centralized rectification of
corruptions in the pharmaceutical area.
In order to enhance the security and stability of the Company's network, Zhonghong Medical introduced situational awareness/network security systems in Beijing, Tangshan, Jiujiang and other places. The network security solution, based on big data andarti? cial intelligence technology, extracts characteristic risks, analyzes hazardous information, and evaluates security warningsbased on the big data platform. Afterwards, the solution interlinks corresponding security equipment for risk disposal. It hasprevented and discovered a number of potential cyber-attacks in a visual display and interactive manner. At the same time, itis equipped functions of data encryption and access control, security audit and monitoring, disaster recovery and backup, andnetwork security situation predicting, which signi? cantly enhances the Company’s security protection capability.
Leveraging situational awareness/network security systems to build a network integrationinnovation application demonstration
Stable Operation Underpins the Corporate Foundation
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GRI StandardDisclosuresLocationGRI205:Anti-corruption 2016
3-3 Management of material topics12-15205-1 Operations assessed for risks related to corruption60205-2 Communication and training about anti-corruption policies and procedures60205-3 Con? rmed incidents of corruption and actions taken60GRI206:Anti-competitive Behavior2016
3-3 Management of material topics12-15206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices
GRI301:Materials 2016
3-3 Management of material topics12-15301-1 Materials used by weight or volume32301-3 Reclaimed products and their packaging materials32GRI302:Energy 2016
3-3 Management of material topics12-15302-1 Energy consumption within the organization32-34302-4 Reduction of energy consumption32-34GRI303:Water and E? uents 2018
3-3 Management of material topics12-15303-3 Water withdrawal32-33GRI305:Emissions 2016
3-3 Management of material topics12-15305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other signi? cant airemissions
GRI306:Waste 2020
3-3 Management of material topics12-15306-1 Waste generation and signi? cant waste-related impacts35-36306-2 Management of signi? cant waste-related impacts35-36306-3 Waste generated35-36306-4 Waste diverted from disposal35-36306-5 Waste directed to disposal35-36GRI308:
Supplier Environmental Assessment 2016
3-3 Management of material topics12-15308-1 New suppliers that were screened using environmental criteria24-26308-2 Negative environmental impacts in the supply chain and actions taken24-26GRI401:Employment 2016
3-3 Management of material topics12-15401-2 Bene? ts provided to full-time employees that are not provided to tem-porary or part-time employees
46-47401-3 Parental leave46
GRI403:
Occupational Health and Safety 2018
3-3 Management of material topics12-15403-1 Occupational health and safety management system42403-2 Hazard identi? cation, risk assessment, and incident investigation42-43403-3 Occupational health services42-43403-4 Worker participation, consultation, and communication on occupa-tional health and safety
42-43403-5 Worker training on occupational health and safety42-43403-6 Promotion of worker health42-43403-7 Prevention and mitigation of occupational health and safety impactsdirectly linked by business relationships
42-43403-8 Workers covered by an occupational health and safety management system42-43403-10 Work-related ill health42-43
GRI StandardDisclosuresLocation
GRI 2: General Disclosures 2021
2-1 Organizational details1，6-82-2 Entities included in the organization’s sustainability reporting
2-3 Reporting period, frequency and contact point
2-4 Restatements of information
2-6 Activities, value chain and other business relationships6-8，24-262-7 Employees38-512-8 Workers who are not employees24-26，38-512-9 Governance structure and composition562-10 Nomination and selection of the highest governance body562-11 Chair of the highest governance body562-12 Role of the highest governance body in overseeing the manage-ment of impacts
2-14 Role of the highest governance body in sustainability reporting12，562-16 Communication of critical concerns56-592-17 Collective knowledge of the highest governance body562-18 Evaluation of the performance of the highest governance body
2-22 Statement on sustainable development strategy12，562-23 Policy commitments12，562-24 Embedding policy commitments12，562-25 Processes to remediate negative impacts12，562-26 Mechanisms for seeking advice and raising concerns12，562-27 Compliance with laws and regulations12，562-28 Membership associations50-512-29 Approach to stakeholder engagement12-152-30 Collective bargaining agreements41GRI 3:Material Topics 2021
3-1 Process to determine material topics143-2 List of material topics15GRI201:Economic Performance 2016
3-3 Management of material topics12-15201-1 Direct economic value generated and distributed56，58201-3 De? ned bene? t plan obligations and other retirement plans46-47
GRI203:Indirect Economic Impacts 2016
3-3 Management of material topics12-15203-1 Infrastructure investments and services supported52-53203-2 Signi? cant indirect economic impacts52-53
Statement of useGRI 1 used
Zhonghong Medical has reported in accordance with the GRI Standards for the period fromJanuary 1st 2023 to December 31st 2023.GRI 1: Foundation 2021
GRI Content Index
GRI Content Index
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GRI StandardDisclosuresLocationGRI404:Training and Educations 2016
3-3 Management of material topics12-15404-1 Average hours of training per year per employee45404-2 Programs for upgrading employee skills and transition as-sistance programs
404-3 Percentage of employees receiving regular performanceand career development reviews
GRI405:
Diversity and Equal Opportunity 2016
3-3 Management of material topics12-15405-1 Diversity of governance bodies and employees40-41GRI406:Non-discrimination 2016
3-3 Management of material topics12-15406-1 Incidents of discrimination and corrective actions takenNo such caseGRI408:Child Labor 2016
3-3 Management of material topics12-15408-1 Operations and suppliers at signi? cant risk for incidents ofchild labor
No such caseGRI409:Forced or Compulsory Labor2016
3-3 Management of material topics12-15409-1 Operations and suppliers at signi? cant risk for incidents offorced or compulsory labor
No such caseGRI413:Local Communities 2016
3-3 Management of material topics12-15413-1 Operations with local community engagement, impact as-sessments, and development programs
52-53413-2 Operations with significant actual and potential negativeimpacts on local communities
No such caseGRI414:Supplier Social Assessment 2016
3-3 Management of material topics12-15414-1 New suppliers that were screened using social criteria24414-2 Negative social impacts in the supply chain and actionstaken
GRI416:Customer Health and Safety 2016
3-3 Management of material topics12-15416-1 Assessment of the health and safety impacts of productand service categories
416-2 Incidents of non-compliance concerning the health andsafety impacts of products and services
No such caseGRI417:Marketing and Labeling 2016
3-3 Management of material topics12-15417-1 Requirements for product and service information and la-beling
417-2 Incidents of non-compliance concerning product and ser-vice information and labeling
No such case417-3 Incidents of non-compliance concerning marketing com-munications
No such caseGRI418:Customer Privacy 2016
3-3 Management of material topics12-15418-1 Substantiated complaints concerning breaches of custom-er privacy and losses of customer data
No such case
Outlook for 2024
Outlook for 2024
Feedback Form
Looking back at 2023, Zhonghong Medical adjusted its development strategy through mergers and acquisitions, and explored digital trans-formation to improve the quality and e? ciency of green development. Going forward to the future, Zhonghong Medical will integrate ESGconcepts into the Company's development strategy. We will contribute to the sustainable development by adhering to technical innovation,promoting the green transformation of industry and society, improving corporate governance, and developing new quality productive forces .
Innovation to enhance product competitivenessFocusing on the healthcare sector, we will vigorously carry out R&D innovation, improve the e? ciency of new product development, and per-fect the new product development system. We will introduce “superego” foregoer to deepen coordinated innovation between the enterprises,universities, research institutes and hospitals and foster the commercialization of research ? ndings. Aiming at enhancing the market com-petitiveness, we will explore and introduce new materials and new processes, and conduct strict quality control of the product. With thesemeasures, we can enable the high-quality medical products to bene? t more people.
Green development to serve the carbon peak and carbon neutrality strategyBased on the concept of green development, we will conduct green operations, implement energy-saving and consumption-reduction re-forms, and upgrade pollution control facilities. We will also promote the application of energy management system and carry out new energyutilization projects to increase the e? ciency of resource utilization. Meanwhile, we will cope with climate change, contribute to China’s 30·60Decarbonization Goal, and realize the sustainable development of the Company and the society.
Mutual progress for a better futureWe are committed to creating a happy workplace, caring for employees' health, empowering their development, and encouraging them todevelop together with the Company. We will strengthen the communication and cooperation with suppliers and partners to provide morehigh-quality medical and health products and services for global customers. We are dedicated to building a harmonious society by strength-ening communication with the public and carrying out volunteer activities, and helping community development.Better governance to promote high-quality developmentFocusing on long-term value, we will integrate ESG into the Company's business development at strategical level. We will adjust our businessmanagement model, strengthen compliance system and risk management system, and adhere to business ethics to ensure high-quality de-velopment with e? cient governance.Zhonghong Medical is committed to becoming a future-leading smart enterprise and a trustworthy century-old enterprise. In face of an eraof changes, we will take initiative to implement Health China strategy and build a community of common health for mankind .
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