BLOOMAGE BIOTECH2023 Sustainability ReportAbout this Report
About This Report
This report is the inaugural Sustainability Report (hereinafter referred to as "this Report") released by Bloomage Biotechnology CorporationLimited (hereinafter referred to as "Bloomage Biotech", "the Company" or "We"), following four consecutive annual Corporate SocialResponsibility (CSR) reports since the Company's listing in 2019. This report discloses information pertinent to the Company's sustainabledevelopment and fulfilment of social responsibilities.This Report covers Bloomage Biotechnology Corporation Limited together with its subsidiaries, in line with the reporting period covered inBloomage Biotech's Annual Report, unless specifically stated otherwise. The reporting period of this Report spans from 1 January 2023 to 31December 2023. To ensure continuity, integrity and comparability, certain content extends beyond the scope mentioned above, with detailedexplanations provided within the report.
Report Introduction
Report Scope
This Report is compiled in compliance withGuidelines No. 1 of the Shanghai Stock Exchange for the Self-Regulation of the Listed Company-Standard Operation (revised in 2023). It also references the Global Reporting Initiative Standards (GRI Standards) issued by the GlobalSustainability Standards Board (GSSB), the United Nations Sustainable Development Goals (SDGs), the Standards of the SustainabilityAccounting Standards Board (SASB Standards), the Task Force on Climate-related Financial Disclosures framework (TCFD framework),issues monitored by Morgan Stanley Capital International ESG Ratings (MSCI), and the Ten Principles of the United Nations Global Compact(UNGC) ("the Ten Principles of the UNGC"). For readers' convenience, a comprehensive index is provided in the appendix for easy reference.
Basis of Compilation
All information presented in this report originates from internal official documents, statistical reports, third-party questionaries and surveys,and relevant public sources within Bloomage Biotech. Financial data is meticulously sourced from the Company's annual reports, with allmonetary amounts denoted in Chinese Renminbi (RMB) unless explicitly stated otherwise.This report has been deliberated and approved by the Board of Directors of Bloomage Biotech. The Board of Directors solemnly assuresthat there are no falsifications or misleading statements within this report, and assumes full accountability for the truthfulness, accuracy andcompleteness of its content.Both a Simplified Chinese and English version of this report will be officially published. In case of any ambiguity, the Simplified Chinese versionshall take precedence.Electronic copies of this report in both Chinese and English are readily accessible through the Company's official website and the ShanghaiStock Exchange's website:
https://www.bloomagebiotech.com/http://www.sse.com.cn/For inquiries or feedback regarding this report and its contents, you are welcome to reach out through the following contacts:
Office Address: Floor 33, Tower D, Bloomage International Center, 6A, Jianguomenwai Avenue, Chaoyang District, 100022, Beijing, ChinaEmail: esg@bloomagebiotech.com
Data Sources
Board Statement
Report Release
Feedback
CATALOGUE
0104About this ReportChairwoman and CEO's Message
0607Company OverviewMajor Business
0808Corporate CultureAnnual Major Honors
Compliance Governance:Enhancing Development Capacity
About Bloomage Biotech
Sustainable DevelopmentManagement
About this ReportChairwoman and CEO's Message
1112ESG Management SystemESG Strategic Planning
131515Stakeholders EngagementESG Materiality AssessmentMajor Accolades in the ESG Domain
Internal Control and Risk ManagementCompliance Management
17Board of Directors2018
26Cybersecurity and Privacy27Investor Rights ProtectionBusiness Ethics22
Technological Innovation toEnhance Product Efficacy
29R&D Innovation35Pilot Scale Results Transformation42Product Accessibility and Affordability37Quality Management
45Intellectual Property Protection4443High-quality ServicePharmacovigilance
Building Competitiveness Basedon People-Oriented Principle
Employee Development
49Fair and Regulated Employment5260Employee Rights and BenefitsSafety and Health56
Green and Low Carbon to ProtectEcological Force
Strengthening Pollution Prevention and Control
63Improving Environmental Management6671Addressing Climate ChangeOptimizing Resource Use68
Reciprocal Cooperation andCohesive Development
Appendix
Care for Society InspiresVitality
Supply Chain Quality Supervision and Review
GHG Verification StatementESG Key Performance Tables
75
82
78
Supply Chain Management System
Index of Indicators
Care for Society
76
8688
77Supply Chain ESG Management
Catalogue
BLOOMAGE BIOTECH2023 Sustainability Report
BLOOMAGE BIOTECH2023 Sustainability Report5F"": )16·4.8l
Zhao YanChairwoman and CEO of Bloomage Biotech
Chairwoman and CEO's Message
In today's world, sustainable development has become a globalconsensus and a shared pursuit for all mankind. It stands as a vitalrequirement for both social progress and the long-term prosperityof enterprises. As a biotechnology company with a strong sense ofsocial responsibility and extensive global influence, we recognizethe imperative of steadfastly implementing a ESG strategy. Webelieve that integrating sustainable development principles intoour strategic planning and daily operations is essential for theCompany to ceaselessly drive sound and continuous growth whilecontributing to society and the sustainable future of humanity.To this end, in 2023, we formally embedded ESG into our long-term development strategy and established an ESG managementsystem tailored to our unique characteristics, so as to seamlesslyinfuse sustainable development principles into every facet of ourbusiness. Seizing this opportunity, we comprehensively revampedour previous annual CSR reports, and compiled thisSustainabilityReportwith reference to mainstream ESG standards bothdomestically and internationally, in order to present our efforts inESG-related areas more systematically and comprehensively,responding to the expectations from all stakeholders in society in amore profound and well-rounded way.Amid the evolving dynamics of 2023, marked by heightened globalinstability and uncertainty, the world faces multifaceted challengesincluding economic volatility, rapid technological advancements,divergent values, and frequent climate disasters. In this shifting era,where opportunities and challenges coexist, Bloomage Biotech hasproactively responded to the demands of the times. We have reshapedour mindset and behaviours, bravely confronting the all kinds ofchallenges presented by both internal and external environments.We have continuously refined our corporate governancemechanisms, enhanced organizational capabilities, andoptimized management systems. In 2023, we establisheda new organizational structure, building a comprehensiveoperational management system, a talent vitality mechanism, anESG management system, and a compliance and anti-briberymanagement system to adapt to the new stage of companydevelopment. Simultaneously, we have ceaselessly improvedexisting systems such as centralized purchasing, human resourcesmanagement, research and development (R&D) management,and quality management to ensure that the organization can bettersupport the Company's strategy and enable each employee tofully realize their value and potential for growth. These initiativesnot only elevate the Company's management capabilities but alsoenhance its operational resilience, laying a solid foundation forincreasing future-oriented competitiveness.
It is my great pleasure to share Bloomage Biotech's annualSustainability Report with you all. This report is our first sustainability report,marking our unwavering commitment to the cause of sustainable development and ushering in a new era as Bloomage Biotech embraces acomprehensive Environmental, Social, and Governance (ESG) strategy."
"Adhering to the corporate development logic of "science technology product brand", we have identified syntheticbiology as a key direction for our strategic development andstayed committed to investing in basic research and appliedbasic research. In 2023, we continued to deepen our syntheticbiology strategy, achieving breakthroughs in the R&D of varioussubstances and launching several new products made withbiologically active substance raw materials, such as "Hybloom?Minitrue" and "Bioyouth?-EGT Pure Ultrapure Ergothioneine".Moreover, we established a first-class synthetic biology pilot-scale testing platform, successfully putting it into operation,and we completed the layout of new capacities and platformsin bases such as our Bloomage Biotech (Hainan) Science andTechnology Industrial Park. Additionally, we also steadily promotedthe integration of industry-university-research cooperation andestablished the first synthetic biology Corporate Venture Capital(CVC) fund in China. These efforts have formed a syntheticbiology-supported biomanufacturing industry chain, spanningscientific innovation, pilot-scale testing, industrial transformationand market transformation.We fully recognize that green development not onlyembodies a company's social responsibility but also reflectsits long-term competitiveness. Therefore, we acceleratethe green and sustainable development by leveragingscientific and technological innovation, new infrastructure,and digital management. In 2023, based on the entire productlife cycle, we continued to optimize our research and developmentdesign and production techniques to continuously reduce energyand resource consumption and minimize negative environmentalimpacts. We introduced new energy facilities such as photovoltaicsand methane power generation from wastewater to optimize ourenergy structure. Additionally, we established a digital energymanagement platform and ESG data dashboard, effectivelyenhancing our data management capabilities. We have alsoconducted an organizational-level carbon audit and a carbonfootprint assessment of hyaluronic acid products, both of whichhave received third-party authority certification.
We uphold the greater good and pursue shared interests,and actively take into account the expectations anddemands of different stakeholders, striving to achievewin-win cooperation among stakeholders includingshareholders, customers, employees, suppliers,and communities. We continuously improve our quality
management system, endeavoring to provide clients andconsumers with high-quality, trustworthy products. Weprioritize people, respecting and safeguarding employees'legitimate rights and interests, working to create a fair, safe, andhealthy working environment, and providing learning platformsthat meet the personal growth and career development needsof employees to help them realize their value. In addition, wecontinuously optimize our supplier management mechanism,and strengthen communication and cooperation with suppliersin product quality, environmental protection, and labor rights,jointly promoting high-quality development. For the thirteenthconsecutive year, we have carried out "Yun Zhong (In Cloud)Public Welfare" campaign dedicated to exploring, inheriting, andpromoting the cultural treasures of ethnic minorities, not onlyenhancing cultural confidence and influence but also drivingrural development, influencing and changing more lives.ESG is gradually becoming the consensus of more and morepeople, and sustainable development has become the maintheme of social development, profoundly impacting and guidingthe operation and development of enterprises. Therefore,through thisSustainability Report, we hope to enablemore people to understand the management philosophy,practice principles, strategic thinking and our commitmentto social responsibility behind Bloomage Biotech's businessperformance. In the future, Bloomage Biotech will continueto uphold sustainable development principles, optimizeESG management, unwaveringly promote the Company'ssustainable development, create greater value, and achievethe long-term development of the enterprise and the sharedprogress of society.
Chairwoman and CEO's Message
BLOOMAGE BIOTECH2023 Sustainability Report
About Bloomage Biotech
Established in 2000 and publicly listed on the A-share Science and Technology Innovation Board (Stock Code: 688363.SH) in November 2019, Bloomage Biotech is a biotechnology company propelled by innovation in synthetic biology anda platform company for the whole industrial chain of biological materials, dedicated to improving people's quality of life bycreating healthier experiences. Driven by industry demands, we prioritize fundamental and applied basic research. We haveestablished six major research and development (R&D) platforms including the synthetic biology research and developmentplatform, microbial fermentation platform, application mechanism research and development platform, pilot-scale testingplatform, crosslinking technology platform, and formula & process research and development platform, enabling us to coverthe entire product lifecycle from cell establishment to commercial application.Embracing the development logic of "science technology product branding", Bloomage Biotech firmly believes thattechnological innovation is the primary engine of progress. We consider talent as the cornerstone and guarantee ofour advancement. Guided by the corporate mission of "Creative Technology For Vibrant Life", we concentrate on thedevelopment and industrial application of six major categories of biologically active substances conducive to life health:functional sugars, proteins, polypeptides, amino acids, nucleotides, and natural active compounds. We are advancing adiversified business strategy represented by our "four-wheel drive" model, encompassing biologically active substance rawmaterials, medical terminal products, functional skincare products, and functional foods. Moreover, we continuously expandour market share domestically and internationally, establishing competitive advantages, with our industrial scale at theforefront of the world. Bloomage Biotech's raw material products, medical terminal products, and functional skincare productsare distributed to over 70 countries and regions worldwide. Additionally, the Company holds the distinction of being the world'slargest developer, producer, and distributor of hyaluronic acid (HA).
Company Overview
Leveraging microbial fermentation platforms as well as our advantages in industrialization, we develop biologically active products beneficialto life health, including functional sugars, proteins, polypeptides, amino acids, nucleotides, and natural active compound. Our rangeincludes hyaluronic acid in over 200 specifications of pharmaceutical-grade, cosmetic-grade, and food-grade products, widely applied inpharmaceuticals, medical devices, cosmetics, functional foods, and ordinary food fields, spanning new areas such as pets, reproductivehealth, oral care, fabrics, and paper products. Other biologically active products include gamma-aminobutyric acid (GABA), sodiumpolyglutamate, Ectoine, Ergothioneine, collagen, SCLEROTIUM ROLFSSII, natto extract, brown rice ferment filtrate, and Microecobeautyproducts.
Biologically Active Substance Raw Materials
As a biotechnology all-industrial-chain platform company, Bloomage Biotech focuses on innovation and transformation in the syntheticbiology field, gradually forming a business layout driven by "four-wheel": biologically active substance raw materials, medical terminalproducts, functional skincare products, and functional foods.Major Business
Medical Terminal ProductsOur medical cosmetic products encompass soft tissue fillers, medical skin protectants, and postoperative repair products, offeringcomprehensive solutions for facial rejuvenation. Notably, our BIOHYALUX?Modified Sodium Hyaluronate Gel for Injection was the firstdomestically produced cross-linked hyaluronic acid soft tissue filler approved by the National Medical Products Administration (NMPA) formarket in 2012. Following this success, in 2016, our modified sodium hyaluronate gel for injection, enriched with lidocaine, took the lead toachieve NMPA certification. Then, in 2019, we unveiled our self-developed single-phase hyaluronic acid soft tissue filler with anesthetic thefirst of its kind in China. Building on this momentum, in the latter half of 2020, we introduced Aqualuna Modified Sodium Hyaluronate Gel forInjection, a micro-crosslinked HA product infused with lidocaine, designed for wrinkle correction spanning from the surface to the middle layersof facial dermis. Continuing our commitment to innovation, in 2021, we launched an upgraded version of our micro-crosslinked hyaluronicacid dermal revitalization product called Wrinkle Remover, a modified sodium hyaluronate gel for injection tailored for comprehensive facialrejuvenation and subtle wrinkle filler injection on the top of the skin. And most recently, in 2022, we unveiled our latest endeavor, the AqualunaSkincare, focusing on post-operation recovery in the medical aesthetics domain, offering a range of products including repair essences, spraydressings, skin repair masks, and repair creams, the current Aqualuna series includes micro cross-linked doll needles, single-phase Naturaland dual-phase products such as Aqualuna 2, 3 and 5.In the realm of pharmaceuticals and healthcare, our portfolio encompasses medical devices such as ophthalmic viscoelastic devices (OVDs)and medical lubricants, as well as pharmaceutical products such as intra-articular injections for joint in the treatment of osteoarthritis. As theonly distributor of RegenLab (Switzerland) in China, we continued our efforts in 2022 to promote and distribute products of Platelet-Rich Plasma (PRP)preparation kits for orthopedics, sports medicine, plastic surgery, and pain management across multiple medical specialties domestically.Bloomage Biotech's medical terminal products currently comprise seven brands: Aqualuna, BIOHYALUX, Hyprojoint, HYMOIS, HyaBricant,Meiyu, and RegenACR.
Functional FoodsThe Company has maintained a longstanding dedication to researching oral hyaluronic acid. After a persistent effort spanning 16 years,in 2021, the National Health Commission approved Bloomage Biotech's application for sodium hyaluronic acid as a novel food ingredient,permitting its integration into common foods. Presently, the Company has established both the Wuxi Functional Food Basic Research Centerand the Shanghai Food Research Center. Within the realm of functional food development, we prioritize beauty, joint health, and sleep healthas its primary R&D and application areas. Leveraging the capabilities of our six major R&D platforms, Bloomage Biotech has developed a widerange of bioactive raw materials for functional beverages, dietary supplements, dairy products, and beyond. Among these offerings are brandslike WHATER, which is a drinking water product with comestible hyaluronic acid.
Functional Skincare ProductsDrawing on six R&D platforms including the synthetic biology research and development platform, microbial fermentation platform, applicationmechanism research and development platform, pilot-scale testing platform, crosslinking technology platform, and the formula & processresearch and development platform, we conduct in-depth research into the effects of hyaluronic acid with different molecular weight, gamma-aminobutyric acid (GABA), Ectoine, and other biologically active substances along with their cross-linked derivatives on human skin. Basedon these bioactive substances researched as the core ingredients, and focusing on streamlining formulations, boosting the concentration ofactive ingredients and targeted efficacy, we develop a series of functional skincare products, tailored to address a range of skin concerns, includingsensitive skin, damaged skin barriers, facial redness, and acne. Leveraging our extensive expertise and experience in the biopharmaceuticalindustry, we employ the Blow, Fill, Seal (BFS) integrated technology to produce small packaging Hyaluronic Acid Essence series products.Bloomage Biotech's functional skincare products embrace multiple brands, including BIOHYALUX, QuadHA, MedRepair, and Bio-MESO.
BLOOMAGE BIOTECH2023 Sustainability ReportSustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Vision
Core Values
Talent Philosophy
Objectives
Development
Philosophy
Mission
Corporate Culture
Becoming a leader in the Life and
Health Industry
Persistence, Perseverance ,Innovation, Responsibility
Attitude, Manner, Insight, Depth Integrity, Courage, Fortitude,
Grandeur
To create products that makeChinese people confidentand proud, and to become arespected and beloved Chineseenterprise worldwide
Rely on technological strength,
create product power, shapebrand power, gain competitivepower, and possess resilience
Creative Technology for Vibrant Life
PurposeHealthy, Beautiful, Happy
In recent years, Bloomage Biotech has garnered numerous national and provincial honors and awards, including the Second Prize of NationalAward for Science and Technology Progress, Champion Demonstration Enterprise of National Enterprise Technology Center and NationalManufacturing, National Green Factory, China Patent Gold Award, First Prize of Scientific and Technological Progress in the ShandongProvince and Quality Award in Shandong Provine. Additionally, we have received honors from various national associations, including theScience and Technology Award of the China Food Industry Association, the Gold Bridge Award of the China Technology Market Associationand China Hi-Tech of the China Association of Productivity Promotion Center.In 2023, Bloomage Biotech continued to engage with relevant government departments, industry associations, research institutions, media,and other stakeholders, maintaining good relationships and jointly promoting industry and societal development. Our Chairwoman and CEO,Ms. Zhao Yan, received recognition and awards from all walks of life. Some of these honors are listed below:
Annual Major Honors
Honors Received by Bloomage Biotech in 2023 (Partial)Award or HonorOrganizer/Awarding InstitutionQuancheng Outstanding Enterprise
Jinan Municipal Committee of the Communist Party of China, JinanMunicipal People's Government
Honors Received by Ms. Zhao Yan, Chairwoman and CEO of Bloomage Bio tech in 2023 (Partial)Award or HonorOrganizer/Awarding InstitutionShandong Province Private Entrepreneurs "Leading the Way" theTop 100 List-Elite Entrepreneur
Office of the Leading Group for Promoting the Development of theNon-Public Sector of the Economy in Shandong Province2023 Forbes China Power BusinesswomenForbes China2023 Herose Club · Hurun Richest Women in ChinaHurun Report2023 Top 100 Annual Brands List-2023 Top 10 Annual Brand FiguresSina FinanceTop 10 Newsmakers in the Chinese Cosmetics Industry 2022
China Cosmetics Review-First China Cosmetics Science andTechnology ConferenceThe 18th "Golden Round Table Award" for Boards of ListedCompanies-Entrepreneurship Award
Directors & Board Magazine
Honors Received by Bloomage Biotech in 2023 (Continued)Award or HonorOrganizer/Awarding InstitutionShandong Province 2023 (First Batch) Provincial GreenManufacturing List: Provincial Green Supply Chain ManagementEnterprise
Department of Industry and Information Technology of ShandongPilot Enterprise in Shandong Province for the Construction of PilotZones for Green, Low-Carbon, and High-Quality Development
Shandong Development and Reform CommissionThe 24th China Patent Excellence Award National Intellectual Property Administration2023 Enterprise Brand Innovation Outstanding Achievement Awardof Shandong Province
Quality Evaluation Association of Shandong ProvinceTop 100 Innovation List of Public Companies in National High-techZone
Chinese High-tech Zone Research Center, Institute of Scientific
and Development, Chinese Academy of SciencesRated A in the 2023 Information Disclosure Evaluation of ListedCompanies on the STAR Market
Shanghai Stock Exchange (SSE)2023 Best Practice Case in Corporate GovernanceChina Association for Public Companies2023 Best Practice Case for Public Company BoardsChina Association for Public Companies"Enabling Biologically Active Raw Materials, Synthetic Biology HelpsAchieve 'Dual Carbon' Goals" recognized as one of the "Top TenTypical Applications" of synthetic biology in China
Science and Technology Daily,
Chinese Society of BiotechnologyThe 25th Golden Bull Award for Listed Companies-Golden BullScience and Technology Innovation Award, Golden InformationDisclosure Award
China Securities JournalThe 17th China Listed Company Value Awards "Top 30 Value ofListed Companies on the STAR Market"
Securities TimesOutstanding Cutting-edge Technology Enterprise of the 12th"Golden Wisdom Award"
Listed Company Research Institute of JRJ2023 China Medical Aesthetics Industry Overall Evaluation List-2023 Outstanding Enterprise Award of China Medical AestheticsIndustry Overall Evaluation List
National Business Daily Think Tank, hosted by Medical Beauty
Industry Blue Book Think Tank2023 Yicai Capital Market Annual Value List-2023 AnnualInnovation Enterprise
Yicai2023 Outstanding Development Award of 50 Best Company Shanghai United Media Group, Jiemian.com
BLOOMAGE BIOTECH2023 Sustainability ReportSustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Sustainable DevelopmentManagement
Bloomage Biotech embeds the principles of sustainable development into its operation, placing a strong emphasis onEnvironmental, Social, and Governance (ESG) management. By establishing an ESG management structure, formulatingESG strategic plans, and actively engaging in cooperation and communication with stakeholders, the Company ceaselesslyenhances its management on material topics and analysis of ESG issues.
During the reporting period, the Company's Chairwoman and CEO, along with the ESG Committee and relevant executives, reviewed theCompany's ESG management plans and annual ESG work summaries. They also approved the 2024 special action plan on corporategovernance and ESG enhancement, covering ESG strategy, green and low-carbon environmental production, supply chain ESGmanagement, labor rights, ESG digital management, as well as sustainable corporate culture development.
The Board of Directors is responsible for overseeing and coordinatingESG-related tasks and listens to and approves relevant advice proposedby the ESG Committee, so as to ensure the implementation of sustainabledevelopment from top to bottom as well as the integration of ESGmanagement into the Company's decision-making process
Established and supervised under the Board of Directors, the ESGCommittee reports to the Board of Directors and aims to achievehigh-quality sustainable development for the Company, which alsodeliberates on ESG-related matters and provides regular reports tothe Board
Tasked with overseeing the Company's ESG management, includingbuilding the ESG management system, assessing ESG risks, formulatingESG strategic plans, facilitating the implementation of key ESG initiatives,evaluating and optimizing key ESG indicators, and managing ESGcommunication and disclosure. The center reports annually to the ESGCommittee on its achievements of the year and future plans, receivingguidance and supervision from the committee
Established within various business lines, factories, and functionaldepartments, these working groups are responsible for maintaining ESGinformation within their respective areas and implementing specific ESG-related tasks.
ESG Management System
Bloomage Biotech's ESG Management and Governance Structure
Bloomage Biotech is committed to refining its sustainable development management and has established an effective ESG managementmechanism. This has resulted in a clear and well-defined ESG governance structure, providing robust support for the Company's stable operationsand sustainable growth. The Company established an ESG Committee under the Board of Directors and formulated and published theWorkRegulations for the ESG Committee of Bloomage Biotech Corporation Limited, reinforcing the roles and responsibilities of the Boardof Directors and its ESG Committee in the ESG strategy research and formulation, material topics identification, ESG risks and opportunitiesmanagement, ESG performance management, capital market ratings and so forth, thus enhancing the Company's governance transparency andsustainable development management. Meanwhile, after the Board of Directors' consideration and approval, the Company has newly establishedthe ESG Strategic Management Center, which is responsible for the Company's ESG management.
Governanve
Board of Directors
ESG Committee
Management
ESG StrategicManagement Center
Execution
ESG Working Groups(Established within variousbusiness lines, factories, andfunctional departments)
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
The Company has developed its distinctive ESG strategic plan, aiming to advance ESG initiatives guided by strategies and scientificallypromoting ESG tasks, thus enhancing resilience of corporate operation and capabilities adapting to the future development.ESG Strategic Planning
ESGStrategy
Sustainable
SocietySustainableProducts
SustainableOperations
Social Impactand PublicWelfare
ESG Risk
Management
ReducingEnvironmentalImpact
CorporateGovernance
EmployeeRightsR&D Innovation
In the realm of operation sustainability, we aim to continuously promoting corporategovernance and ESG risk management. We strive to identify, assess, and address key riskswhile consistently fostering a healthy, transparent, and equitable corporate governanceframework to underpin the Company's enduring stability and operations
In terms of sustainable product development, wefirmly believe that research and innovation are keydrivers to our sustainable development. We willcontinue to invest in R&D to develop more efficient andenvironmentally friendly technologies and products.Additionally, we are committed to reducing theenvironmental impact of our products by optimizingprocesses such as purchasing and production,and reduce waste emission as well as energy andresource consumption, so as to achieve sustainabilitythroughout the product lifecycle
Regarding social sustainability, we prioritizesafeguarding employee rights and creating adiverse, inclusive, and fair work environment.Moreover, we remain dedicated to activelyparticipating in social empowerment and publicwelfare activities, leveraging our technology andresources to create greater value for society
Bloomage Biotech highly values the expectations and demands of all stakeholders and is devoted to establishing a normalized stakeholderengagement mechanism. We actively listen to and solicit opinions and suggestions from all stakeholders including regulatory agencies,shareholders, employees, clients, partners, and communities through various channels such as reports, emails, phone calls, meetings,surveys, forums, and questionnaires. These ongoing dialogues aim to deepen internal and external stakeholders' understanding andrecognition of Bloomage Biotech. Meanwhile, we incorporate stakeholders' expectations and concerns into our operations and decision-making, publicly disclosing them in our annual reports to continually enhance stakeholders' recognition and confidence in the Company.Moreover, we prioritize addressing the concerns of regulatory agencies, customers, capital markets and other stakeholders regarding ourESG management practices. While ensuring compliance with ESG information disclosure, we establish connections with major domesticand international ESG rating agencies and respond to their assessments. During the reporting period, the Company's performance in MSCI,Carbon Disclosure Project (CDP), EcoVadis, and other ratings has improved.During the reporting period, the Company established a standardized audit mechanism for factory ESG audits to efficiently address clientdemands for factory ESG audits and implement corrective actions for all identified problems. Furthermore, we engaged internationallyrenowned audit firms to conduct Sedex Members Ethical Trade Audit (SMETA) audits on our factories in Jinan, Dongying, and Tianjin. Basedon the SMETA audit reports, we proactively communicated with clients to reduce ESG risks in supply chain and continuous improve our ESGmanagement practices.
Stakeholders Engagement
Bloomage Biotech Stakeholder Engagement MechanismStakeholderExpectations and DemandsEngagement and Response
Government andRegulatory Agencies
Compliant operations Tax complianceEconomic development Anti-corruptionProduct responsibility
Supervision and inspection Daily managementMeetings and exchanges Public consultationShareholders andInvestors
Corporate governance Risk managementShareholder rights ESG performanceInformation transparency Business ethics
Shareholders' meetings Investor exchangesInformation disclosure Field investigationsRoadshow activities Conference callsEmail and online engagement platformsEmployees
Employee rights protectionEmployee compensation and benefitsEmployee training and developmentEmployee safety and health
Employee forums Labor unionPerformance evaluations Employee trainingEmployee satisfaction surveysClients andConsumers
Product responsibility High-quality serviceProduct accessibility Product affordabilityClient privacy protection
Client satisfaction surveys Client follow-upSocial media platforms Client service hotlineSuppliers andPartners
Sustainable purchasing Green productsProduct responsibility Anti-corruptionIntellectual property protectionHonorable fulfillment of contracts
Supplier assessments Strategic cooperationSupplier meetings and exchangesSupplier trainingCommunity
Public welfare and charity Rural revitalizationEnvironmental protectionCommunity development
Public welfare activities Community eventsMedia communication Public consultationsIndustry Associationsand Chambers ofCommerce
Scientific and technological innovationIndustry developmentProduct responsibility
Industry exchanges Field visitsFormulation of industry standardsMedia
Product responsibility ESG performanceEmployee rights protection Business performanceResponse to climate change
Press conferences Field interviewsSocial media platformsPublic opinion monitoring Universities andResearch Institutes
Scientific research innovationTalent development
Education assistance Academic researchTechnology cooperationUniversity-enterprise cooperation
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
In September 2023, Bloomage Biotech was invited to participate in the side event of the 2023 SDG Summit held in New York under the themeof Innovation for Industrial Sustainability. During the event, Bloomage Biotech signed the "Business in Action-Consensus on SustainableIndustrial Development" initiative initiated by the Sustainable China Industry Development Action. This initiative aims to foster consensusand commitments among businesses and industries regarding sustainable industrial development, focusing on areas such as sustainableconsumption and production patterns, efficient utilization and sustainable management of natural resources, technological innovation,inclusive development, and sustainable international cooperation. Ms. Zhao Yan, Chairwoman of Bloomage Biotech, emphasized on the eventthat corporate development must align with the requirement of sustainable development. She stated, "All corporate endeavors must adhere tothe principles of sustainable development to effectively promote beauty and value, enhance quality of life, and extend lifespan."
Case: Bloomage Biotech participates in UN SDG Summit Official Side Event and signs initiative
The chairwomen of Bloomage Biotech, Ms. Zhao Yan, attended the SDG Summit Side EventBloomage Biotech hosted the China (Jinan) Hyaluronic Acid Industry Conference
In June 2023, Bloomage Biotech hosted the China(Jinan) Hyaluronic Acid Industry Conference inJinan, Shandong Province. Themed "TechnologyBuilds the Foundation, Innovation Lead the Way",the conference featured a wide range of activitiesincluding thematic forums, specialized forums,strategic signings, and project unveilings, bringingtogether experts from diverse industries, academicscholars, investment leaders, government andcorporate representatives, high-tech enterprises,and experienced media professionals. Discussionsat the conference revolved around academicand industrial issues related to hyaluronic acid,aiming to envision the future of high-qualitydevelopment in the hyaluronic acid industrythrough multidimensional, interdisciplinary andcross-category perspectives.
Case: Bloomage Biotech hosts China (Jinan) Hyaluronic Acid Industry Conference (HAIC)
Bloomage Biotech has established a systematic process for screening, researching, and analyzing ESG material topics, helping the Companyto understand the concerns of various stakeholders on ESG material topics and provides a reference for future ESG management.In 2023, with the assistance of external professional teams, Bloomage Biotech conducted an assessment on material topics in three steps,which are as follows:
ESG Materiality Assessment
Applying the double materiality principle, Bloomage Biotech assessed dozens of ESG material topics, resulting in the formation of a material topics matrixand list, with 30 major material topics identified, determining the focus of this report. Bloomage Biotech's 2023 ESG material topics list is as follows:
Major Accolades in the ESG Domain
Identification ofMaterial Topics
Taking into account international standards and disclosure frameworks, capital market rating indicators, peerperformance, national policies, and Bloomage Biotech's business development, 29 sustainable development topicsclosely related to the Company's operations were identified, which formed a repository for material topics
Research ofMaterial Topics
Stakeholders both within and outside the Company were invited to assess the materiality through onlinequestionnaires. The questionnaire survey covered 11 categories of stakeholders, including company management,employees, government or regulatory agencies, shareholders or investors, clients or consumers, suppliersor partners, universities or research institutions, industry associations or chambers of commerce, non-profitorganizations, the public, and sustainable development industry experts
Analysis ofMaterial Topics
Material topics rankingwSurvey data was handled and analyzed to quantitatively evaluate rankings based on twodimensions: "materiality to the Company's sustainable development" and "materiality to stakeholders"Material topics reviewwExternal experts provided suggestions for major material topics and rankings, which were thenreviewed by the Company's management
EnvironmentSocialGovernanceMaterial Issues withHigh Importance
Environmental ManagementPollutant ManagementWaste ManagementEnergy ManagementWater Resource ManagementMaterial Management
Research and Innovation Product QualityChemicals Safety ManagementInformation SecurityEmployee RightsEmployee Training and DevelopmentOccupational Health and Safety
Corporate GovernanceCompliant OperationsRisk ManagementBusiness EthicsIntellectual Property ProtectionMaterial Issues withMedium Importance
Product Environmental ImpactEnvironmental Permits and CertificationsResponse to Climate Change
Health Accessibility Client ServiceResponsible MarketingSupplier ManagementIndustry Collaboration and Development
Sustainable DevelopmentManagementMaterial Issues withLow Importance
BiodiversityResearch Ethics
Social Welfare and Community RelationsAward or HonorOrganizer/Awarding Instituion2023 United Nations SDG Summit Side Event Outstanding Corporate Practice Casethe United Nations2023 Best ESG Practice Case for Listed Companies China Association for Public CompaniesDistinguished ESG Practice in the Flavor, Fragrance, and Cosmetics Industry
China Association of Fragrance Flavourand Cosmetic IndustriesSocial Responsibility Award of 2023 CNR NewsGlobal Trend Practice 2023-Outstanding ESG Development Practice Case of the YearHuanqiu.comThe 10th China Financial V Forum-Outstanding ESG Contribution EnterpriseEconomic ViewThe 3rd Golden Cane Awards-Outstanding ESG Enterprise in China Comprehensive Health of 2023China Times2023 ESG Star Green Company, Pioneer of Dual Carbon in Beautiful China 2023tzsbw.com.cn2023 Sustainability Green Award of Caijing AwardCaijing.com.cn2023 Boao Forum for Entrepreneurs-2023 Outstanding Corporate Social Responsibility Practice CaseHexun.comThe 2nd China Businesses Social Responsibility Forum Outstanding Social ResponsibilityPractice Case
Organizing Committee of ChinaBusinesses Social Responsibility Forum
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Compliance Governance:Enhancing DevelopmentCapacity
Robust compliance governance forms the bedrock of corporate advancement. Bloomage Biotech steadfastly upholdslegal compliance as the prerequisite for all operational endeavors. Through continuously reinforcing corporate governancefundamentals, bolstering risk management frameworks, and nurturing a culture of integrity, the Company comprehensivelyelevates its long-term competitiveness, productivity, and operational resilience.
Compliance OperationsRisk Management
Risk ManagementResponsiible Marketing
Responsiible MarketingBusiness Ethics
Business EthicsCorporate Governance
Major Material Topics of Sustainability Covered in this Chapter:
SDGs Addressed in this Chapter:
Bloomage Biotech rigorously adheres to pertinent laws and regulations as well as requirements of the exchanges, such as the Company Lawof the PRC, theSecurities Law of the PRC, theCode of Corporate Governance for Listed Companies, and theRules Governing the Scienceand Technology Innovation Board Stock Listing Rules of the Shanghai Stock Exchange. The Company continually refines its corporate legalperson management system, strengthens internal control systems, and establishes a robust and efficient corporate governance structurecomprising the shareholders' meeting, the Board of directors and its subcommittees, management, and operational executives. Thisgovernance framework ensures clear delineation, coordination, and checks and balances among the power, decision-making, supervision,and execution bodies, providing robust protection for the Company's stable development and safeguarding the legitimate rights and interestsof the Company and shareholders.
Bloomage Biotech corporate governance structure
Board of Directors
Board of DirectorsSupervisory Board
Shareholders' Meeting
ESG CommitteeStrategy Committee
Remuneration andAssessment CommitteeAudit CommitteeNominationCommittee
Bloomage Biotech's management centers, operation and management departments of business lines,
opeeration and management centers of platforms
The Company strictly follows procedures outlined in theArticles of Association for the election of directors. Embracing a diversitypolicy that includes, but is not limited to, considerations such as gender, age, cultural and educational backgrounds, expertise,skills, knowledge, and past achievements, ensures diversity, comprehensiveness, and professionalism in member composition andviewpoints. We continuously monitor the proportion of female directors and independent directors in the Board. Moreover, the nominationand appointment of board members are based on the skills and experience required for the overall operation of the Board to ensure thatboard members possess the necessary knowledge and professional experience to carry out their duties. Independent directors areappointed by relevant laws, regulations, and regulatory requirements, and independent director remuneration is also issued based onstandards approved by the shareholders' meeting. Additionally, the directors of the Company have backgrounds, skills, and internationalperspectives in biomedicine, skincare products, risk management, finance and accounting, law, and sustainable development, enablingthem to make positive contributions to comprehensive decision-making for the Company.The Company actively provides continuous training to all board members on topics such as integrity in practice, normative operations, andinformation disclosure to ensure that corporate governance is conducted in compliance and orderliness.Bloomage Biotech Board composition and governance overview?
Number of directorsin the Board
Corporate Governance
Number of female directorsin the Board
9 | 3 |
Proportion of female directors
in the Board
%
Proportion of independentdirectors in the ESG Committee
33.3 | 66.7 |
%
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Bloomage Biotech has established a robust compliance management system, constructing a comprehensive organizational structure andoperating mechanism for compliance management. Simultaneously, the Company instils the concept of "compliance with laws and integrity"among all employees, conducts continuous compliance advocacy and cultural development activities, and follows rigorous and pragmatic taxmanagement principles to pay taxes in accordance with the law, thereby building a solid foundation for the Company's stable operation.Bloomage Biotech complies with laws and regulations such as theCompany Law of the People's Republic of China and theAnti-UnfairCompetition Law of the People's Republic of China. In accordance with the requirements of ISO 37301 Compliance Management SystemStandard, we have revised and issued twelve compliance management policies for the current year, including the Compliance (Anti-Bribery)Management Measures. These policies cover not only all employees and external business partners but also various aspects of compliancemanagement. From due diligence investigations and compliance consultations in the early stage to compliance obligation identification,risk assessment, performance management in the middle stage, and compliance review, non-conformity, and corrective and preventivemeasures in the later stage, the Company has formulated specific management measures to ensure that the entire process of compliancemanagement is standardized and systematic following regulations and instructions.The Company has meticulously outlined a comprehensive array of procedures for compliance management, encompassing policies,organizational structures, compliance controls and operational mechanisms, performance evaluations, cultural development, as well ascompliance internal auditing and improvement processes. Through the establishment of a robust compliance management system, we haveobtained ISO 37301 external certification for the compliance management system, effectively bolstering our resilience against compliance risks.The Company has built a top-down three-tier compliance management structure, with the compliance department (Legal Affairs Center)responsible for overall coordination, planning, and implementation of compliance management tasks. In addition, we have included theCompany's compliance system and major compliance risk prevention and control within the scope of audit supervision, in order to continuouslyimprove the existing compliance management system.
Compliance Management
Compliance Management System
Board of Directors
Various Business Departments
Executive Management
Legal Affairs Center?compliance department?
Audit and Inspection Center?Compliance Supervision Department?
Compliance (Anti-Bribery) Management Measures Regulations on Compliance Consultation and ReportingBusiness Partner Compliance Management Measures Implementation Methods on the Compliance ReviewDue Diligence Management Regulations Legal Affairs Management RegulationsManagement Measures on Compliance Performance Information CollectionManagement Measures on Non-Compliance, Corrective and Preventive ActionManagement Measures for Compliance Reporting, Investigation and HandlingEmployee Compliance and Anti-Bribery Handbook nonconformance and corrective and preventive actionManagement Measures on Compliance Obligations Identification and Risk Assessment
Bloomage Biotech Anti-Corruption and Anti-Fraud RegulationsRegulations on Sales Personnel and Sales Behavior Management
Professional Code of Ethics and ConductGuidelines for Anti-Commercial Bribery Compliance
Compliance Guidelines for Live Streaming PromotionBloomage Biotech Code of Conduct for Advertising Release
Bloomage Biotech continues to strengthen its compliance system to improve the standardization level of compliance management, and weformulated and implemented the following major management regulations:
Purchasing Management Regulations Regulations for Reviews on External Promotional CopywritingSensitive Term Base for Cosmetics and Daily Chemical Products (2022 Edition)
Compliance Management System
Business Ethics
Responsible Marketing and Purchasing
Bloomage Biotech places a strong emphasis on fostering and promoting a culture of compliance operations, advocating the principles of"Compliance with law and integrity" as the cornerstone for the Company's sustainable growth. This ethos has shaped Bloomage Biotech'scompliance policy, which is disseminated to all employees through the signing of compliance commitments, comprehensive compliancetraining programs, and compliance performance evaluations.In terms of compliance training, Bloomage Biotech integrates compliance topics into its employee training regimen. Following the guidelinesoutlined in theTraining Management Regulations, the Company devises an annual compliance training plan and hosts training sessions toensure that employees are well-versed in compliance protocols and abreast of the latest changes of laws and regulations. The effectivenessof these training initiatives is also assessed through examinations. Personnel in key positions, including leaders, purchasing managers, andfinance and sales personnel, are required to complete the training and learning ofEmployee Compliance Handbook within 30 days of joining the Company.Regarding compliance performance assessment, Bloomage Biotech has established theManagement Measures on CompliancePerformance Information Collection andManagement Measures on Examination Evaluation. These frameworks incorporate reward andpenalty mechanisms and implement results throughout various business departments and to employees themselves and third-partypersonnel, fostering a culture of compliance and reinforcing the Company's commitment to ethical conduct.
Compliance Culture Development
sessionsThe employees sign rate of theCompliance Commitment
%
%Cover the Bloomage Biotech to conduct thenumber of special compliance training
Key positions personnel compliance training
coverage rateBloomage Biotech diligently fulfills fundamental obligations to pay taxes in accordance with laws. The Company establishes and regularly updatestax-related management systems, including tax internal control manuals and invoice compliance guidelines. We systematically monitor theimplementation of tax policies on a regular basis and conscientiously fulfill our social responsibility to pay tax.In the realm of tax risk mitigation, the Company diligently monitors and identifies potential tax risks as part of its standard operating procedures. Thisentails employing a multi-tiered review process for tax declarations, actively engaging with external entities for tax inspections, regularly analyzingthe latest tax policies, and maintaining open channels of communication with external stakeholders. These proactive measures are designed tofortify the Company against tax-related risks and bolster the predictability of tax management outcomes. For further insights into the Company's taxmanagement practices, please refer to the Bloomage Biotech 2023 Annual Report.
Tax Compliance Management
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Internal Control
Risk Management
At Bloomage Biotech, we prioritize the establishment of robust systems for internal control and risk management, integrating them throughoutour operational framework. Regular internal audits and inspections are conducted to ensure their effectiveness, with ongoing enhancementsmade to our internal control systems. This proactive approach aims to effectively manage and mitigate risks, thus ensuring the steadyadvancement of our Company's development.
Bloomage Biotech ceaselessly enhances its risk management framework through the establishment of the Risk Management Regulations,which delineates objectives, principles, organizational structures, management processes, supervision and improvement mechanisms,cultural development initiatives, and assessment protocols for risk management. Following the PDCA cycle, this ensures a closed-loopapproach to risk management, driving systematic risk mitigation efforts.
Adhering strictly to the laws and regulations, including theCompany Law of the People's Republic of China, Bloomage Biotech conducts timelyassessments, updates, and improvements to its internal control system, guided by theBasic Norms for Internal Control of Enterprises.Our internal control mechanisms cover critical aspects of operational management, with emphasis on high-risk areas such as sales receivables,purchasing payments, production warehousing, quality control, financial management, asset management, and contract management processes.During the reporting period, we collaborated with renowned external consulting firms to conduct comprehensive business operation diagnostics andprocess reforms across the Company, so as to bolster the refinement of internal control systems and enhance their effectiveness.During the reporting period, external auditors were engaged to conduct annual audits of internal controls, affirming the soundness, reasonableness,and effectiveness of our internal control construction. No significant defects affecting the Company's business development were identified. For moredetails on internal control and internal control audits, please refer to the Bloomage Biotech 2023 Annual Report or our Company announcements.
Regarding the organizational structure for risk management,the Company has established a four-tiered frameworkcomprising the Board of Directors, the Executive Management,the Risk Responsibility Departments (across various businessdepartments), and the Risk Management Department. Thisstructured hierarchy ensures comprehensive managementand leadership of internal risk governance from top to bottom.Specifically, the Board of Directors, serving as the highestdecision-making body in risk management, holds accountabilityfor ensuring the effectiveness of risk management endeavors.Our risk management efforts are bolstered by an internalcontrol "three-line of defense" model. All business units (RiskResponsibility Departments) constitute the first line of defense,managing and controlling business risks within their purview.The Risk Management Department serves as the second lineof defense, overseeing overall risk management throughoutthe Company and conducting daily supervision and follow-upon improvements. The Audit and Inspection Center acts as thethird line of defense, responsible for reviewing and evaluatingthe Company's risk management practices and supervising riskmanagement efforts.
Internal Control and Risk Management
Risk Management System
Bloomage Biotech Risk Management Strucutre and Supervision Mechanisms
"Three-lineof Defense"Model ofBloomageBiotech'sRiskManagement
Board of Directors
Functional Department ofRisk ManagementRisk ResponsibilityDepartmentsAudit and InspectionCenter
Executive ManagementAudit Committee
In terms of the risk management process, the Company carries out activities such as risk collection, identification, assessment, response,monitoring, and early warning, based on our business management and operational practices. We've established a regular mechanism forreporting major risks and emergency situations.With regard to the culture development of risk management, we are dedicated to fostering a positive value of risk and management awareness,not only providing training for directors, supervisors and senior management, but also organizing courses and practical projects for managersand business operators at all levels, so as to enhance the quality of risk management talents and improve their capabilities in risk management.Furthermore, we've integrated risk management into our target management and annual performance evaluation system. We're alsopromoting the informatization of risk management, gradually establishing a risk management information system covering risk informationcollection, assessment analysis, monitoring and early warning, response, and disposal, to promote the establishment of a systematic,standardized, and efficient risk management system for the Company.
Confronting the persistent operational risks in the business landscape, Bloomage Biotech is committed notonly to refining its internal risk management protocols and organizational frameworks but also to implementingcomprehensive measures across all business departments. These efforts encompass risk prevention andcontrol, ongoing scrutiny for hidden risks, and effective management of operations on a regular basis.We classify risks into five major categories: strategic risks, financial risks, market risks, operational risks,and legal compliance risks. Additionally, we break down these risks into 26 specific dimensions based ontheir sources, covering corporate governance risks, environmental risks, security risks, human resourcesrisks, and product quality and measurement risks, so as to establish our risk classification framework. In 2023,Bloomage Biotech conducted risk identification activities and updated theRisk Identification Checklist based onthis risk classification framework, covering the 5 major risk types and 26 risk dimensions mentioned above.The Company has also developed theRisk Management Matrix, which amalgamates industry and marketinsights, while giving due consideration to both internal and external factors that impact the achievementof the Company's strategic goals. These factors encompass historical data, future projections, operationalworkflows, and product lifecycle management. The matrix is designed to meticulously monitor risks andtheir implications across all departments, delineating specifics such as risk types, descriptions, severitylevels, pivotal control points, accountable departments, regulatory frameworks, and management tools,facilitating an efficient response to all kinds of risks.
Risk Identification and Response
Internal Audit and SupervisionComplying with the laws and regulations, including theAudit Law of the People's Republic of China, Bloomage Biotech has established andimplemented regulations such as theInternal Audit Charter, Internal Audit Management System, andPost-audit Follow-up Management
System, clearly defining the conduct, scope of work, and workflow requirements for internal auditors. The Company also regularly organizesrevisions and updates to these regulations to continuously enhance audit efficiency and quality, thereby strengthening compliance riskmanagement.Considering strategic objectives, development plans, significant business decisions, and the risk status of each department, theCompany has assembled a team of professional auditors to form an internal audit task force. This team formulates an annual internalaudit plan and carries out internal audits focusing on the effectiveness of internal controls and risk management, the authenticity andintegrity of financial information, as well as the efficiency and effectiveness of operational activities. In the event of internal controldeficiencies identified during audits, the Company promptly implements corrective actions and conducts subsequent reviews to ensurethe thorough implementation of these corrections.In 2023, the Company conducted internal specific audits in phases, covering coremanagement areas such as purchasing, production, sales, research and development,investment, and performance. Special attention was paid to supervising and evaluatingbusiness processes, information systems, and risk controls at key points. The results ofinternal audits were reported to the Board of Directors.
Number of riskissues identified
Number of significant risksdetected during audits
Risk management initiativesinvolved of the business
%
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Professional Ethics
At Bloomage Biotech, the management of business ethics stands as the top priority of corporate governance. We remain steadfast in ouradherence to legal statutes and regulatory mandates while continuously refining internal control mechanisms across all business processes.By establishing robust auditing mechanism, we ensure rigorous supervision of business ethical affairs such as integrity in professionalconduct, anti-corruption measures, reporting and whistleblowing, and responsible marketing practices, effectively preventing instances ofimproper behaviours, regulatory breaches, and fraudulent activities.
At Bloomage Biotech, we uphold the ethos of honesty management, demanding that all employeesconduct themselves with integrity and honesty, strictly prohibiting falsehoods, fraud, or unlawful activities.To this end, we have established documents such as theProfessional Code of EthicsandConductandthe Employee Handbook, outlining fundamental behavioural guidelines that employees should abideby, responsibilities to the Company, clients, and the market, as well as confidentiality requirements. Allemployees are required to sign a confirmation form acknowledging their adherence to the ProfessionalCode of Ethics and Conduct. Moreover, we provide periodic professional ethics training for both newand existing employees and make a series of relevant management policy documents publicly availableon the Company's internal communication platform and office systems, ensuring accessibility to allemployees. Additionally, in 2023, we revised and updated theEmployee Compliance and Anti-BriberyManual, further guiding employees on compliance standards during recruitment, employment, anddeparture, ensuring integrity and probity in all interactions with internal and external stakeholders.
Business Ethics
Number of Bloomage Biotech to conduct corruption risk
assessments and due diligence investigations
Number of Bloomage Biotech to conduct
business ethics standards audits
Respect for every employee; prohibitusing one's position for personal gain,accepting unreasonable hospitalityfrom suppliers, or making payments toachieve sales, purchases, or specialfavours; prohibit using company assetsfor activities unrelated to work; adhereto safety and health-related rules andpolicies to maintain workplace safety
Keep confidentiality of all client information;prohibit unauthorized disclosure; timelynotify potential conflicts of interest torelevant parties; carefully select businesspartners and clients
Fairly trade with the Company'scustomers, suppliers, and competitors;prohibit manipulation, concealment,damage, defamation, abuse of proprietaryinformation, or false reporting ofsignificant facts; prohibit providing illegal,improper, or suspicious payments orpromises to others for undue benefits
Responsibilities to the CompanyResponsibilities to clientsResponsibilities to the market
Bloomage Biotech stipulates the following responsibilities of all employees to the Company, clients, and the market:
Bloomage Biotech highly regards integrity, compliance with laws and company regulations, and the avoidance of conflicts of interest as theunwavering foundation of professional ethics. Employees are expected to uphold the core values of integrity in all business activities, complywith laws, social norms, and professional ethics, and refrain from engaging in any behavior that may compromise the objectivity of their dutiesdue to personal activities or interests.
Bloomage Biotech is committed to honest and ethical business practices, whether in external interactions or within the Company. Allemployees must adhere to the letter and spirit of the law, treating clients, suppliers, and colleagues with honesty and respect.Adherence to these regulations is a prerequisite for employees to receive bonuses and for suppliers to continue cooperation with theCompany. Consistent and fair code of conduct provides employees with ample opportunities for improvement.Employees found to violate theProfessional Code of Ethics and Conduct will face corresponding penalties upon confirmation by theCompany. The Company reserves the right to reduce or cancel any bonuses or promotions that should be paid, and severe cases mayresult in the termination of the labour contract. Suppliers found to violate the Code will have their business relationship with the Companyterminated.
Summary ofProfessional Code of Ethics and Conduct
IntegrityCompliance with lawsand company regulationsAvoidance of conflicts ofinterest
Anti-Bribery ManagementAnti-bribery stands as a crucial focus within Bloomage Biotech's business ethics management.The Company strictly abides by national laws, policies, and regulations such as the Anti-UnfairCompetition Law of the People's Republic of China and theInterim Provisions on BanningCommercial Bribery, instituting anti-corruption regulations including the Bloomage Biotech Anti-Corruption and Anti-Fraud Regulations and theGuidelines for Anti-Commercial Bribery Compliance.These regulations are communicated and interpreted across the Company and subjected to trainingsessions organized for management and relevant departments to ensure effective implementation.Bloomage Biotech has established a corporate ethics governance system comprising the Boardof Directors, Audit Committee, and relevant departments. The Legal Affairs Center, Audit andSupervision Center, and Risk Management Department oversee the effective implementation andmonitoring of relevant policies from the perspectives of compliance management, internal control,and risk management, and they directly report to the board of directors. The Company has initiatedthe ISO 37001 Anti-Bribery Management System Standard introduction project, building its anti-bribery management system through policy revisions, procedural improvements, training initiatives,and operational implementations. Consequently, we have also obtained ISO 37001 externalcertification for the Anti-Bribery Management System.Identified risk areas such as daily operations, sales business, and client interactions are scrutinized,and activities prohibited or permitted are summarized for each risk area, thus preventing abuses ofpower, favouritism, improper gain-seeking, and any actions detrimental to the Company's interests.During the reporting period, Bloomage Biotech conducted a new round of internal audits, includinganti-bribery, anti-fraud, and anti-corruption issues, across key areas like sales and purchasing in itsdomestic subsidiaries. No instances of bribery, corruption, or related illegalities were detected withinBloomage Biotech during the reporting period.
Regarding confidentiality, Bloomage Biotech requires employees not to disclose or use proprietary, confidential, or commercially sensitiveinformation or materials encountered for any reason or purpose during their employment with the Company. Employees are required tosign aConfidentiality Agreement upon signing the labour contract, and core positions are also required to sign a Non-Compete Agreementas required by the Company. Moreover, personal information is considered confidential material by the Company, and employees shouldmaintain the confidentiality of such information.Any behaviour that violates relevant professional ethics regulations, once discovered by the Company, will be subject to verbal warnings,written warnings, contract termination, or other corresponding penalties.Summary of theManager's Red Line Behavior - 12 ArticlesTo strengthen the supervision of core managers and better promote the Company's compliance management system, creating atransparent, efficient, and collaborative working environment, Bloomage Biotech has formulated theManager's Red Line Behavior - 12Articles, clearly defining the red line behaviours of company management. This document is issued for implementation by the chairwomanof the board and is publicly disclosed to all employees, along with reporting channels, to earnestly accept supervision from all parties.1. Falsification2. Misappropriation of company property3. Misappropriation of public funds, private borrowing of funds, or unauthorized guarantees4. Unauthorized loans or credit sales5. Speculative use of enterprise funds6. Disclosure of company trade secrets
7. Doing business with relatives that harms company interests8. Unauthorized part-time work for remuneration9. Spreading illegal or reputation-damaging remarks that affect the Company's reputation, brand image, or organizational unity10. Soliciting benefits from partners, customers, subordinates, or affiliated companies11. Provocation or causing troubles12. Dereliction of duty or gross negligence
In the culture development of integrity, the Company strives to foster a working atmosphere of integrity and honesty. We regularly provide anti-corruption and anti-bribery training to board members and all employees, with specialized training for high-risk positions like marketing. In2023, themed articles on "How to Prevent Economic Crimes" were published in our internal publication, elucidating definitions, citing examples,interpreting legal regulations, and explaining company policies, thus educating all staff on the definitions, types, and consequences of suchcrimes, raising legal awareness and staying away from crimes.Furthermore, Bloomage Biotech is willing to collaborate with all stakeholders to create a fair and upright business ecosystem. We require allparties involved in business with Bloomage Biotech (including suppliers, clients, etc.) to adhere to our anti-corruption regulations, and haveestablished clauses for integrity and self-discipline in various purchasing contracts or appendices to theAnti-Commercial Bribery Agreement.During the reporting period, the signing rate for the Anti-Commercial Bribery Agreement among suppliers was 94%.
Sessions of Bloomage Biotech toconduct specialized anti-bribery
trainingKey positions personnel specializedanti-bribery training coverage rate
Key positions personnel specializedanti-bribery training coverage rateSession of the board of directorsparticipated in anti-corruption(integrity in employment) training
Session of the board of directorsparticipated in anti-corruption(integrity in employment) trainingPercentage of directors attended theanti-corruption training
Percentage of directors attended theanti-corruption training
33.3
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Email: jubao@bloomagebiotech.comPhone: 010-85670099-1503Reporting Channels:
Collectingwhistle-blowing information
File a record
Classifyingreporting records
Reconsider, respondand handle
Analyze and sortout information
Parties appealeif there is any objectionf
Establish aninvestigation team
Handle the investigation result
Whistleblowers have the right to know the progress of the investigation into the issues they reported and may request relevant personnelto recuse themselves. The department receiving the report and the investigating personnel must strictly keep confidential the personalinformation of the whistleblowers and the reported information, regulate the transmission of report materials, strictly control the number ofpeople who know, properly keep the report materials, and verify the situation without exposing the identity of the whistleblower. The Companywill strictly hold accountable any individuals who violate the provisions related to the protection of whistleblowers and effectively safeguard theirrights and interests.
Bloomage Biotech encourages employees, clients, suppliers, and other stakeholders to jointly supervise and maintain integrity. The Companyhas established a normalized reporting mechanism, formulated and strictly followed theManagement Measures for Compliance Reporting,Investigation and Handling, and carried out reporting and investigation tasks. We comply with the principles of handling issues accordingto laws and regulations, seeking truth from facts, safeguarding the legitimate rights and interests of the parties involved, handling issuespromptly, and combining investigation, handling, and prevention when conducting compliance reporting management, ensuring that reportsare handled objectively, independently, and safely.We have established a wide range of complaint and reporting channels, which are publicized to all employees, distribution clients, andsuppliers. Whistleblowers can report violations through telephone, internet, written, or face-to-face methods. A dedicated reporting emailaddress is maintained by a specialist, with single-line contact established with whistleblowers to ensure their protection and the confidentialityof information. The Company uniformly accepts and categorizes all reported matters and clues, and when necessary, sets up investigationteams to conduct investigations and gather evidence. For cases confirmed to involve violations of the company's compliance managementsystem, the Company will impose penalties in accordance with relevant regulations; for suspected criminal behaviours, the Company will referthem to judicial authorities according to relevant procedures to pursue their responsibilities. If the reported matters are confirmed to be trueand result in the recovery or reduction of losses for the Company, the whistleblowers may be rewarded materially or spiritually under relevantreward systems as appropriate.
Whistle-blowing Management Mechanism
Reporting Process Flowchart
Bloomage Biotech rigorously complies with laws and regulations in terms of responsible marketing such as theLaw of the People's Republicof China on the Protection of Consumer Rights and Interests,Advertising Law of the People's Republic of China, and Provisions for the ClearMarking of Prices and the Prohibition of Price Fraud. The Company has devised policies like theBloomage Biotech Code of Conduct forAdvertising Release, Bloomage Biotech Code of Conduct for Advertising Release (Applicable to Cosmetics), Compliance Guidelines for LiveStreaming Promotion, Sensitive Term Base for Cosmetics andDaily Chemical Products to regulate marketing and communication practices.Tailored compliance procedures have been established for different product categories and promotional channels, with regular internaltraining sessions organized. For instance, within the functional food and health products business line, Bloomage Biotech invited law firms toconduct specialized seminars on the theme ofThe Path to Food Compliance, providing comprehensive explanations and discussions on foodsafety-related laws and regulations, regulatory systems, and clauses of the advertising law to enhance employees' awareness of compliantmarketing and understanding of relevant laws and regulations. All claims regarding product efficacy must be based on results of externalauthoritative testing and verification, to ensure the compliant disclosure of authentic product information. During the reporting period, noviolations of marketing communications occurred, nor were there any lawsuits related to false marketing claims that resulted in financial losses.The Company places great emphasis on the timely disclosure of product ingredients. In addition to complying with laws and regulationsregarding product ingredient labelling, Bloomage Biotech enhances product information transparency by clearly stating product ingredientsin promotional materials and publicly disclosing product information across multiple platforms, thereby inviting scrutiny from a wide range ofcustomers and consumers.Online platform stores and e-commerce livestreams serve as the primary sales channels for Bloomage Biotech's functional skincare and foodproducts. To raise employees' awareness of responsible marketing and ensure compliance during the sales process, the Company conductscompliance promotion training for key marketing position employees, summarizing and sharing regulatory and policy consultations related tocompliant product promotion promptly. External experts are occasionally invited to conduct compliance promotion training for sales personnel.Furthermore, the Company regularly reviews prohibited marketing keywords and other online sales risks, reinforcing the compliance andoperational capabilities of relevant personnel through post-event analysis and internal training so as to avoid providing consumers withnegative experiences due to violation.
Responsible Marketing
1 DSR score is the detailed evaluation score given by buyers on e-commerce platforms to sellers, reflecting the performance of sellers in aspects such as productdescription, logistics service, communication, and transaction experience.
2 The comprehensive experience score of stores on TikTok is on a 5-point scale, with a minimum of 3 points, calculated by weighting the scores of productexperience, logistics experience, and service experience of the seller in the last 90 days.3
Tmall store ratings are on a 5-point scale, including description matching, service attitude, and logistics service, with data here representing the average of the threeratings over the past six months.4 Ratings of store on JD.com mainly consist of user evaluation, customer service consultation, logistics performance, after-sales service, and transaction disputeresolution, with data here representing the average of the five ratings.
("-": Indicates that no store is set up on that platform)
DSR scores of Bloomage Biotech's online stores
Brand
DSR Scores on Online PlatformsTikTok2
Tmall3
JD.com
4BIOHYALUX54.94.8QuadHA54.9-MedRepair54.84.6Bio-MESO54.84.6Bloomage Biotech Skincare Flagship Store5-
-
The Company respects and complies with management requirements from platforms such as Tmall, TikTok, and JD.com, by providing high-quality products, efficient logistics, and high-standard customer service, earnestly maintaining the reputation and image of our online stores.The company sets limits on online store purchases to prevent scenarios like click farming and distributor restocking, ensuring the authenticityand effectiveness of store performance. During the reporting period, all brands under Bloomage Biotech maintained high DSR
1
scores onmajor mainstream online platforms without serious violations.In terms of external collaborations for sales, the Company includes marketing risk clauses in marketing promotion contracts, which requirecooperation agencies and influencers to sign theCommitment Letter for marketing compliance, strictly adhering to all applicable laws,regulations, company policies, and promotion platform regulations related to internet promotion activities.
Bloomage Biotech responsible marketing training overviewIndicatorUnit2023Number of Participants-8,585Cumulative Training DurationHours2,714
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Concerning the protection of user personalinformation, the Company employsencryption, de-identification, and othertechnologies to ensure its security, utilizingtrusted protection mechanisms to thwartmalicious cyberattacks and deployingstrict access control mechanisms to avertunauthorized access or use of personalinformation. To facilitate users' exercise oftheir rights to access, rectify, delete, etc.,their personal information, correspondingoperational settings are provided on thewebsite and related services. Moreover, incollaboration with third parties and businesspartners, the Company strictly adheresto laws and regulations, requiring thirdparties to sign agreements and implementnecessary security measures to handlerelevant user personal data in accordancewith privacy policy requirements.
Data Security andPrivacy Protection
Measures
Inform risks inadvance
Establish areporting process
Assess risksregularlyExternal securityassessment
Establish responseprocedures
Cybersecurity and Privacy Management System
Information technology and digitization serve as pivotal foundations for the stable and efficient advancement of modern enterprises. As thedepth of digital transformation intensifies, Bloomage Biotech keenly acknowledges the core value of cybersecurity and privacy protectionfor corporate growth in today's digital landscape. The Company is dedicated to navigating the challenges and opportunities presented bycybersecurity and privacy protection by leveraging innovative management practices and the application of cutting-edge technologies.Complying with relevant laws and regulations such as theCybersecurity Law of the People's Republic of China,Data Security Law of thePeople's Republic of China, andPersonal Information Protection Law of the People's Republic of Chinaand drawing from the ISO/IEC27001 Information Security Management Standard, Bloomage Biotech has established a robust information security management systemencompassing organization, management, technology, training, and supervision. This system articulates clear policies for cybersecurity andprivacy protection, which are implemented across the spectrum of production, testing, operation, and marketing. In addition, the InformationSecurity Management Committee oversees and coordinates the Company's efforts in this regard, with dedicated departments entrusted toexecute information security protection strategies and procedures. During the reporting period, the Company once again achieved ISO 27001certification for information security management systems. Additionally, in 2023, two systems, namely the anti-counterfeiting tracing systemand the raw material portal website system, obtained Level 2 Certification for National Information Security.In 2023, the Company updated and issued several regulations related to cybersecurity and privacy protection, including the Bloomage BiotechPublic Internet Access Management System for Information Systems,Account, Password, andAuthority Management System, andDataBackup and Recovery Management System, building upon existing policies such as the Information Security Control Policy andSpecificationson Vulnerability Handling Process. These regulations aim to standardize and fortify cybersecurity risk prevention and control, account,password, and authority management, as well as ensure the security and stability of information systems, thereby enhancing the Company'sproactive and reactive capabilities in addressing contingencies.
Cybersecurity and Privacy
Data Security and Privacy Protection MeasuresAt the technological level, Bloomage Biotech integrates a variety of mature information security technologies and products, guided by theprinciple of defense in depth. This approach facilitates the implementation of security functions such as identity authentication, access control,data integrity, and data confidentiality across multiple layers, thus fostering an effective security technology protection framework. In 2023,the Company undertook various projects to enhance information and data security, including bolstering access control for core applications,preventing data leakage from terminals, managing off-site backups, and establishing a self-inspection platform for vulnerability management.These endeavors significantly elevated the security of critical applications to a higher echelon and further fortified the Company's informationsecurity monitoring and protection capabilities across all business segments.The Bloomage Biotech official website serves as a vital platform for showcasing, communicating, and delivering services. Consequently,the Company has crafted and issued a website privacy policy to transparently elucidate the policies and practices concerning the collection,processing, and protection of personal information for users/visitors.
The Company conducts regular internal and external information security risk assessments each year, evaluating the security levels ofthe anti-counterfeiting tracing system and portal website and completing records. We comprehensively identify and analyze risks andvulnerabilities across various aspects such as company network infrastructure, data storage, transmission and processing, access control,and physical environment of devices. Based on assessment results, corresponding plans and corrective measures are established tocontinuously refine the data security risk prevention system.Each year, necessary information security training and awareness promotion campaigns are conducted for company employees, relevantcontractors, and other external personnel to continuously bolster the information security awareness of all staff. Simultaneously, employeesengaged in information security positions are encouraged and supported to continuously enhance their professional skills and actively pursueprofessional qualification certification for information security. Presently, members of the Company's information security team have obtainedthe national certification of Certified Information Security Professional (CISP).Bloomage Biotech prioritizes investor relations, strictly adhering to laws and regulations such as the Measures for the Administration ofInformation Disclosure by Listed Companies issued by regulatory authorities. The Company has established robust systems including theInformation Disclosure Management Systemand the Investor Relations Management System, consistently implementing them to enhance thequality of information disclosure and safeguard the interests of investors and other stakeholders.The Company is committed to upholding the core principles of information disclosure, ensuring that all disclosures are truthful, accurate,comprehensive, and easily understandable. This commitment ensures that investors have timely and equal access to information. Inaddition, we offer a variety of communication channels for investors and patiently address their inquiries, thereby cultivating a reputation forresponsibility and reliability. Moreover, we actively foster communication with investors through diverse forms, including organizing large-scale public exchanges, participating in strategy meetings organized by securities firms, hosting investor visits to our facilities for researchpurposes, conducting conference calls, utilizing the Shanghai Stock Exchange Interactive Platform, holding roadshows, and maintainingregular contact with investors via email. These efforts aim to proactively disclose and update the Company's operational status to the capitalmarkets, thereby strengthening our effective communication with investors. In 2023, the Company issued 81 announcements, produced anddisseminated the Company's 2022 performance interpretation videos and the long charts of 2022 performance through new media platforms,held 6 performance presentations, received hundreds of investors, and participated in more than 100 strategy sessions and roadshowsorganized by brokerage firms.
Investor Rights Protection
Issued announcements | Held earning briefings |
A
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Technological Innovationto Enhance ProductEfficacy
Bloomage Biotech adheres to the logical progression of "science technology product branding" in corporate development,with synthetic biology as a key direction. The Company persistently invests in both fundamental and applied research,complying with relevant laws, regulations, and regulatory requirements while integrating various resources. We continuouslyestablish and improve our research and development innovation management system, to create high-standard R&Dcenters and pilot-scale transformation centers. Through technological innovation, material expansion, technology transfer,intellectual property protection, and deep integration of industry, academia, and research, our technological capabilities arefurther improved. The Company is committed to strengthening the quality management of products and services, managingcustomer needs and satisfaction, and providing the market with fair, accessible, healthy, and environmentally friendlyproducts and services, that empower people with healthy, beautiful, and joyful life experiences through biotechnology.
Product Environmental ImpactChemicals Safety Management
Chemicals Safety Management | Industry Collaboration and Development |
Research Ethics
Research Ethics | Product Quality |
Health Accessibility
Health Accessibility | Client Service |
Information Security
Information Security | Intellectual Property Protection |
Research and Innovatiion
Major Material Topics of Sustainability Covered in this Chapter:
SDGs Addressed in this Chapter:
R&D innovation is at the core of enhancing corporate competitiveness. Bloomage Biotech emphasizes independent innovation capabilitiesto construct a distinctive research and development innovation platform. We coordinate innovative management structures and resourceelements, facilitating in-depth integration of industry, academia, and research for innovation. We explore sustainable management throughoutthe product lifecycle and composition, actively leveraging our advantages in innovation platforms, resource allocation, talent aggregation,and technological foundations, focusing on core technology breakthroughs to promote high-quality development for the Company and theindustry.
Research and InnovatiionBasic ResearchApplication Research
Basic ResearchApplication Research
Synthetic Biology R&D PlatformMicrobial Fermentation PlatformApplication Mechanism R&DPlatformPilot-scale Testing PlatformCrosslinking Technology PlatformFormula & Process R&D Platform
Synthetic Biology R&D PlatformMicrobial Fermentation PlatformApplication Mechanism R&DPlatformPilot-scale Testing PlatformCrosslinking Technology PlatformFormula & Process R&D Platform
Jinan R&D CenterBeiing R&D CenterShanghai R&D CenterWuxi R&D CenterKey Laboratory of RegenerativeMedicine Technology andMaterial Transformation in HainanProvinceR&D Laboratory in FranceR&D Laboratory in JapanR&D Laboratory in the US
Bloomage Biotech continues to establish and refine a research and development innovation platform primarily composed of 1 nationalenterprise technology center, 2 core research areas, 6 high-end scientific research platforms, and 8 research laboratory bases. Wecoordinate efforts to strengthen the aggregation capacity of innovative resources, effectively enhancing the level of technology transfer andindustrialization. The Company focuses on the R&D, innovation, and production of 6 categories of biologically active substances related tohuman health, including functional sugars, proteins, peptides, amino acids, nucleotides, and natural active compounds, covering the entireindustry chain from cell construction to commercial applications. We adhere to a research and development strategy with a global multi-pointlayout, achieving global collaborative innovation to provide research support for the entire industry chain and long-term development.
R&D Innovation
Construction of R&D Innovation Platform
National EnterpriseTechnology Center
Core ResearchAreas
High-end ScientificResearch Platforms
ResearchLaboratory Bases
1
2
6
8
Bloomage Biotech R&D innovation platform
Jinan R&D CenterBeiing R&D CenterShanghai R&D CenterWuxi R&D CenterKey Laboratory of RegenerativeMedicine Technology andMaterial Transformation in HainanProvinceR&D Laboratory in FranceR&D Laboratory in JapanR&D Laboratory in the USAdditionally, during the reporting period, the Company has been awarded a series of awards and honors in technological R&D, including the"Annual Biotechnology Innovation Award", the "Innovation Award for National High-tech Zone Listed Company", and the "Top Ten OutstandingApplications of Synthetic Biology" in China. Over the years, the Company has also received other national and local awards in related to majortechnological innovations (as shown in the table below).
Major technological innovation awards received by Bloomage Biotech
CategoryNumber of awardsFieldsChina patent award2Enzyme cutting technology, cross-linking technologyNational scientific and technological progress award2
Research and development of sodium hyaluronate andits pharmaceutical preparationsProvincial scientific and technological progress award4
Fermentation technology, enzyme cutting technology,cross-linking technologyShandong provincial patent award2Enzyme cutting technology, cross-linking technology
The Company continues to increase its investment in scientific researchfunds to strengthen R&D capabilities. During the reporting period, thetotal R&D investment amounted to 4.46 RMB 100 million , representinga year-on-year growth of 14.95%. The proportion of R&D investment tototal revenue accounts for approximately 7.35%.
Additionally, during the reporting period, the Company has been awarded a series of awards and honors in technological R&D, including the"Annual Biotechnology Innovation Award", the "Innovation Award for National High-tech Zone Listed Company", and the "Top Ten OutstandingApplications of Synthetic Biology" in China. Over the years, the Company has also received other national and local awards in related to majortechnological innovations (as shown in the table below).R&D expenses(RMB 100 million)
4.46
R&D expenses (RMB 100 million) | Proportion of R&D investment to revenue |
7.35
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Bloomage Biotech has established an R&D Management Committee led by the Chairwoman, with senior management and key technicalmanagers involved in the comprehensive management of the Company's R&D system. Each center or studio is responsible for implementingspecific projects and related tasks. The Company emphasizes the integration of advantageous resources to enhance its core competitivenessin R&D.In line with the diversified market and the operation of the entire industry chain, the Company adopts a business-oriented approach andestablishes R&D studios in different directions with full authorization granted. This initiative promotes stronger collaboration among studios,breaks down internal barriers, and facilitates the efficient flow of information.
Bloomage Biotech strictly adheres to laws and regulations, including theRegulations on the Safety Management of Biotechnology Researchand Development, theRegulations on Drug Registration Management, theRegulations on Cosmetics Supervision and Administration, theFood Safety Law, and the Ethical Review Measures for Life Sciences and Medical Research Involving Humans. The Company has formulatedinternal systems such as thePublic Laboratory Management Regulations, theResearch and Development Center Equipment LifecycleManagement Procedures, theDesign and Development Control Procedures, the Patent Management Regulations, thePatent IncentiveMeasures, and theImplementation Rules for Research and Development Center Performance Management. These systems are implementedto standardize the Company's project development processes, talent recruitment and management, research outcomes, and talent rewardcriteria. Furthermore, the Company has established research project management regulations to ensure that relevant activities are conductedlegally and compliantly throughout stages such as project initiation, design, development, review, validation, transformation, and confirmation.
R&D Innovation Management Structure and Systems
R&D management structure at Bloomage Biotech
Members of the committees report to thechairwoman of the Board of DirectorsEach management committee isresponsible for the R&D managementand operation of each business line
Responsible for the comprehensive management of theCompany's R&D system
R&D Management Committee
Management Committee
for Raw Material R&D
Management Committee for Medical Device R&D
Management Committee for Personal Care Appliance
R&D
Talent is at the core of innovative development. Bloomage Biotech fully recognizes the criticalrole of talent in R&D innovation and continually broadens channels for talent introduction withincreasing efforts. The Company emphasizes internal talent mobility, optimizes the structureof its talent pool, establishes pathways for talent development, formulates and updatesmechanisms for talent assessment and incentives, and improves talent cultivation andmanagement models to achieve comprehensive talent acquisition, cultivation, and utilization.Aligned with an R&D talent management culture guided by corporate strategy and customer-centered philosophy, the Company constructs an R&D Management Committee to coordinatesupervision and guidance, adopts a collaborative management model among departments,and strengthens talent organization construction and management to attract high-leveltalents within the industry. Moreover, we encourage internal job rotations and transfersamong relevant personnel to vibrate and manage the internal talent market.Bloomage Biotech boasts a multidisciplinary, professionally structured, industry-experienced,deeply capable, and efficiently collaborative talent team, providing fundamental support forthe Company's technological innovation. As of the end of the reporting period, the Companyhas 926 R&D personnel, accounting for 20% of the total workforce, nearly 50% of whomcome from renowned domestic and international institutions, holding postgraduate or abovedegrees. We have 2 experts enjoying special allowances from the State Council, 2 provincial-level experts with outstanding contributions, 3 Taishan Industry leading talents, 1 leadingtalent at the municipal level, and 30 key technical personnel in critical fields such as senior/deputy engineers and pharmacists. Additionally, the Company forms external scientificresearch expert teams and has successfully attracted more than 50 professionals in relevantfields through flexible recruitment, further enhancing the strength of the Company's researchteam and providing strong support for favorable business development.
Talent Development for R&D Innovation
"o
Bloomage Biotech strictly adheres to relevant laws, regulations, and regulatory requirements to ensure that the identification and R&D ofnew materials, and the design and production of new products meet human health and environmental standards. The Company is committedto developing and producing products with no by-products, low or no toxicity, minimal impurities, low impurity content, and high safety andstability. Through measures like source substitution and process optimization, the Company achieves energy saving, pollution reduction, andconsumption reduction, thereby reducing the negative impact of the product's entire lifecycle on the environment and biodiversity. If green processeshave deficiencies in purity, the Company will use low-toxicity organic reagents such as ethanol as much as possible in product development.
In source substitution, the Company uses fermentation instead of extraction to produce Rhodiola extract, reducing the consumption ofRhodiola, a plant protected at the national levelIn the product R&D process, the Company strives to use green processes for product purification and refinement, such as membranefiltration and enzymatic hydrolysis, instead of traditional methods such as alcohol precipitation and acid-base processesIn the process of design and optimization, the Company avoids the use of environmentally unfriendly reagents, consumables, etc.,For instance, concentrated crystallization is used instead of traditional acid and organic reagent crystallization in part of the productdevelopment process
Technology and Product Innovation
The Key Laboratory of Regenerative Medicine Technology and Material Transformation in Hainan Province (hereinafter referred to as the "KeyLaboratory"), established and applied for by Bloomage Biotech, was officially inaugurated in December 2023 at the Bloomage Biotech (Hainan)Science and Technology Industrial Park. This laboratory is the first provincial-level key laboratory for regenerative medicine in Hainan Province,focusing primarily on three research directions Basic Research and Application Transformation of Biomedical New Materials, Design andDevelopment of Stem Cell Culture Medium and Innovative Application Research of Stem Cell-Derived Bioproducts, and hiPSC Regeneration andTransformation Research.Leveraging the Company's layout in regenerative medicine and its advantages in the industrial chain, this key laboratory aims to achievesynergistic innovation and development across the entire industrial chain, from technological innovation to industrial and markettransformation, leading the upgrade of the regenerative medicine industry.
Case: Leading the upgrade of the regenerative medicine industry
Based on the analysis of the functional, structural, and sequence correspondence of human type III collagen, Bloomage Biotech designed,tested, and ultimately selected protein sequences with composite efficacy, excellent safety, and the ability to meet terminal cost controlrequirements. The product is expressed by yeast, which is endotoxin-free, and free from viral contamination. It possesses powerful repair andhealing, as well as collagen regeneration promotion effects. This product can be widely used in wound repair, post-medical aesthetic surgerywound recovery, skin problem treatment, and facial rejuvenation care, meeting the needs of human health and beauty. At the same time, thistechnology addresses environmental pollution caused by large amounts of acid and alkali in the extraction process of animal collagen, thusembodying green environmental protection and sustainable development attributes.
Case: Recombinant collagen technology and products with health, safety, and green attributes
Bloomage Biotech's subsidiary, BloomStem (Hainan) Co., Ltd., along with Japan's Otsuka Pharmaceutical Co., Ltd., BioMimetics Sympathies,and other relevant partners, invested in the establishment of a joint venture named BloomStem Biotechnology (Hainan) Co., Ltd. (referredto as BloomStem) in 2022. As a Key Contracted Project for China-Japan Green Low-Carbon Cooperation, BloomStem will mainly focus onexpanding research in the biomedical field. It will introduce leading Animal Origin Free (AOF) mesenchymal stem cell culture technology fromJapan and launch the BloomStem? series of AOF mesenchymal stem cell expansion culture media, various high-performance cell culturemedia, and cell culture derivatives, among other regenerative medical products and customized development services.Cell culture media, as a cornerstone of the biopharmaceutical and biotechnology industry, plays a crucial role in the development of thebiotechnology industry with a green and low-carbon nature. This contracted project will help promote biotechnology cooperation and greendevelopment cooperation between China and Japan.
Case: BloomStem becomes a key contracted project for China-Japan green low-carboncooperation
Total number of various types of R&D projects | Number of participated in provincial key R&D projects |
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Bloomage Biotech has completed R&D of sugarcane-based plastics in the disposable packaging materials through technological extractionand semi-automatic wet pressing processes. This simple and recyclable product packaging, compared to traditional petroleum-based plasticpackaging, can reduce approximately 3 tons of carbon dioxide emissions per ton, achieving multiple environmental benefits such as resourceconservation, energy consumption reduction, and greenhouse gas emission reduction.
Case: Facilitating the green transformation of biotechnology packaging materials
Bloomage Biotech places great emphasis on the green, safe, and reliable nature of product ingredients, strictly adhering to domesticand international regulations such as theCosmetic Safety Technical Specifications and the Regulation on Registration, theEvaluation,Authorization, and Restriction of Chemicals(REACH Regulation). Necessary qualifications or certifications related to ingredient safetyand natural organic properties are obtained for products. The Company extensively refers to industry and market authoritative standards,formulates systems such as theChemical Use List for Research and Development, establishes chemical use and managementmechanisms, and identifies hazardous factors. By continuously reducing, substituting, or prohibiting controversial ingredients, thenegative impact of product ingredients on human health and the environment is minimized. During this reporting period, no penalty fromregulatory agencies occurred due to non-compliance with chemical usage in products.Furthermore, the Company is committed to promoting the sustainability of product ingredients in the industry and actively participates inthe "Cosmetic Mercury-free Action" advocated by the Skin Health Industry China Science and Technology Alliance as a member of theformulation of the first domestic group standard for low-mercury cosmetics. The Action is an important initiative concerning consumer safetyand environmental protection, which Bloomage Biotech continues to invest in, willing to collaborate with enterprises, research institutions, andconsumers, to provide consumers with higher quality and safer products.
Bloomage Biotech emphasizes the establishment of high-quality standards, the deepintegration of industry, academia, and research, and collaborative technological innovationto continuously build brand advantages. The Company actively forms links betweenindustry, academia, and research through strategic cooperation agreements, joint researchcenter establishment, leading pilot conversion platforms, and applied basic research inrelated technologies and manufacturing fields. It has also engaged in extensive researchcollaboration with prestigious domestic and international research institutions such as theChinese Academy of Sciences, the China National Institute of Metrology, Cornell University,the University of Oxford and other professional institutions and enterprises, to put forwardresearch and product innovation as well as high-quality development of the industry.
Ingredient Sustainability
Industry-Academia-Research Collaboration
During this reporting period, Bloomage Biotech successfully launched its first bio-surfactant product, Bloomsurfact? Bacillus lipopeptidesodium to the market. This product utilizes natural sugarcane-derived brown sugar as a carbon source to efficiently synthesize lipopeptideskeletons, replacing traditional surfactants and oils derived from fossil fuels and plants. Moreover, it enhances fermentation yield throughlow-foam fermentation technology. The production process of this product is environmentally friendly, as it does not involve organic solventsynthesis steps, leaves no chemical toxic residue, exhibits high biodegradability, and reduces the use of petroleum and plant resources, hencepromoting the safety, greenness, and sustainability of bioactive substances.
Case: Focus on the R&D and application of green surfactant lipopeptides
During the reporting period, Bloomage Biotech completed the production development of 2 probiotic skincare products with antioxidant andbarrier function effects (Microgeometry ME-2 and ME-3). The Company used natural and sustainable materials and significantly reduced theaddition of carbon and nitrogen sources during fermentation through process optimization. Moreover, all products obtained after fermentationcan be used for skincare ingredient development, and no wastewater is generated during the production process, resulting in benevolentenvironmental influences.
Case: Environmentally friendly production technology for skincare ingredients
Since the strategic cooperation agreement signed by Bloomage Biotech and CNIM in July 2021, the two parties have collaborated on variousaspects including "quality control research, the establishment of quality standards, research on standard substances, new measurementmethods, characterization technology research", and have achieved remarkable results over the past two years. In June 2023, thecollaboration between the Company and CNIM was comprehensively upgraded with a cooperation agreement signed for the project"Technological Innovation of the Full Industry Chain of Bioactive Substances and Standard-Setting Leading High-Quality Development".This project will focus on 6 categories of bioactive substances of Bloomage Biotech (functional sugars, amino acids and derivatives, peptides,proteins, nucleotides and derivatives, natural active compounds), conducting comprehensive and multi-field cooperation on quality andstandardization research, achieving complementary advantages and strong alliances.
Case: Collaboration between Bloomage Biotech and China National Institute of Metrology (CNIM)
In November 2023, more than 20 professors and young scientists from over ten Belt and Road (hereinafter referred to as "B&R") countriessuch as Pakistan and Iran, accompanied by representatives from the Tianjin Institute of Industrial Biotechnology, Chinese Academy ofSciences, visited the Bloomage Biotech Tianjin factory. They engaged in in-depth exchanges and discussions on scientific research,technology, and products.The visit is an active response of the Company to the national B&R strategic policy and demonstrates the crucial role of large nationalenterprises. It will provide a platform and sample for national industry-academia-research cooperation, the transformation of scientificresearch achievements, and more exchanges and cooperation with scientists from countries and regions along the B&R, which will facilitateexpansion businesses in countries involved in the initiative and promote the high-quality development accordingly.
Case: The Belt and Road scientists delegation visiting Bloomage Biotech
The B&R scientists delegation visits Bloomage BiotechBloomage Biotech leverages its own technological innovation capabilities and technical platform advantages to implement open cooperation,actively collaborating with governments, industry organizations, research institutions, etc., to promote the establishment of standardizednorms and industry knowledge popularization, driving the sustainable and healthy development of related industries.Collaborative Development
To promote new materials, technologies, processes, and advanced management concepts and to eliminate technological barriers to facilitatethe transformation of scientific and technological achievements, Bloomage Biotech takes the initiative to lead and participate in the formulationand implementation of national, group, and industry standards, which not only enhances its own influence and discourse power but alsopromotes the industry to have clear guidelines and standards to follow.Bloomage Biotech has led or participated in the formulation of 8 industry standards and 36 group standards, among which 15 group standardswere released during the reporting period. Additionally, the Company is currently involved in the development of 30 national, industry, andgroup standards.
Standard Setting
During the reporting period, the Company has actively carried out more than 70 collaborative projects with research institutions, peers,customers and other parties in raw materials, pharmaceuticals, medical devices, functional skincare products, etc. These collaborationsprovide technical support for the Company and industry development, promote comprehensive advancement of the industrial chain, andfurther strengthen the Company's leadership and influence in the hyaluronic acid industry.
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Bloomage Biotech strictly adheres to the laws and regulations of the PRC, including the Civil Code, the Basic Healthcare and Health PromotionLaw, the Law on Scientific and Technological Progress, theBiosafety Law, the Regulations on the Management of Laboratory Animals, andtheRegulations on the Quality Management of Clinical Trials of Drugs. Following the principles of the 3R
5
for animal experimentation, theCompany respects theDeclaration of Helsinki by the World Medical Association and relevant national or regional ethical systems, conductinginternal and external trials legally and compliantly. During the reporting period, the Company did not incur fines from regulatory bodies forbreaking ethical testing guidelines.
Ethical Testing
Bloomage Biotech does not directly conduct animal or human testing, nor does it have any regulations regarding the care or welfare of itstest subjects. All necessary animal and human clinical trials are entrusted to qualified Contract Research Organizations (CROs) or hospitals,with contracts stipulating compliance according to national regulations on trial ethics and related measures for the welfare of human/animalsubjects.The third-party animal experimentation and inspection institution admission requirements of Bloomage Biotech:
The Company ensures that third-party collaborationinstitutions possess nationally recognized laboratoryqualifications, as well as relevant certifications and approvalsfrom animal experimentation ethics committees
The Company assesses the technical capabilities andexperience of the institutions through observations and on-sitevisits
The Company inspects whether the facilities and equipmentof third-party collaboration institutions meet the requirements,including but not limited to the size, ventilation, temperature,humidity, and hygiene conditions of animal rooms, to ensurethey are suitable for animal survival and experimentation
The Company undertakes relevant measures to ensure thatthird-party collaboration institutions comply with applicablelaws, regulations, and ethical requirements for experimentation,following ethical review procedures
Possession of professional qualifications
Experience and technical proficiency
Suitable facility conditions
Legal and regulatory compliance
Bloomage Biotech uses human subjects, cell testing, ex vivo skin testing, and 3D skin model testing in place of animal testing forefficacy trials on functional skincare products. Participants may opt out at any moment and is completely voluntaryThe Company gives preference to alternative methodologies for medical device efficacy trials to minimize the need for animal andhuman clinical trials
As part of its commitment to popularize knowledge related to life sciences and biomanufacturing, Bloomage Biotech has established exhibitionhalls in its main offices, factories, and R&D centers to conduct science popularization activities for visiting groups.We have established the World Hyaluronic Acid Museum and the Synthetic Biology Science Museum. The World Hyaluronic Acid Museum isthe world's first hyaluronic acid theme museum, showcasing its knowledge and applications through scientific videos, historical documents,and simulated displays, etc. The Synthetic Biology Science Museum is the world's first science museum dedicated to synthetic biology, usingtechnology-driven and interactive methods to explore topics such as the origin of life, global crises, and sustainable development, whileintroducing the definition, significance, development, technological foundation, industrial applications, and underlying support for carbonpeaking and carbon neutrality brought by synthetic biology. Since the official opening, the World Hyaluronic Acid Museum has welcomed27,692 visitors, while the Synthetic Biology Science Museum has seen 2,243.The Company integrates internal and external professional resources to conduct online public education. This involves producing andreleasing themed video series including "Amazing Life Science," "Amazing Hyaluronic Acid," and "Amazing GABA" on the Company's officialwebsite. Additionally, the Company has established the "Bloomage Science Popularization" column on Weibo, where it carried out 153 sciencepopularization activities related to bioactive substances throughout the year.In addition, to further assist customers in developing a logical and scientific view on skincare, the Company also works with businesses anduniversities to develop projects and publish aScientific Skincare Guide for Oily Skin, aWhite Paper on Insights into Eye Anti-Aging, and aWhite Paper on Trends in Anti-Aging for Sensitive Skin in China.
Industry Education
Bloomage Biotech aims to establish a world-class intelligent pilot scale results transformation center, focusing on achieving high-quality, efficient product transformation and creating value for domestic and international customers through "smart manufacturing" of6 categories of bioactive substances. The Company follows Integrated Product Development (IPD) principles, constructing a productplanning and development management system centered on market and customer needs. This system aims to swiftly respond to marketchanges, significantly shorten product development cycles, reduce project rejection rates, lower development costs and resource waste,and ensure products not only have excellent stability but are also easy to produce and service, bringing higher value experiences to theCompany and its customers. 4 key business competencies are integrated into the pilot scale results transformation center: processresearch and validation, sample preparation and inspection testing, medium and small-scale commercial production, and processoptimization and quality improvement. It is committed to optimizing value, assisting creative achievements in realizing the leap from thelab to the market, and satisfying internal and external needs for product transformation.
Pilot Scale Results Transformation
The Company strictly adheres to relevant laws and regulations such as theLaw of the PRC on Promoting the Transformation ofScientific and Technological Achievements, theNotice of the General Office of the State Council on Printing and Distributing theAction Plan for Promoting the Transfer and Transformation of Scientific and Technological Achievements, and theInterim Measuresfor the Filing and Management of Pilot Demonstration Bases for the Transformation of Scientific and Technological Achievementsin Shandong Province. It has meticulously formulated and implemented a series of internal management systems such as thePilot and Trial Production Development Control Procedure, theResearch and Development Results Production Transfer andProduction Introduction Management System, and thePilot and Process Verification Management System, clarifying the executionstandards at different key points of the products, enhancing the standardization, compliance, and effectiveness of product processtransformation and technology transfer, and building a sound and efficient chain for the transformation of scientific and technologicalachievements.
Make it possible for cell factoriesto produce everything and build aplatform where achivements of digitalintelligence can be transformed
The key step for laboratory results toachieve commercial transformation
Biomaterials for biomanufacturing :
1.Substitute 50 % of the materials extractedfrom animals and plants2.Substitute 70% of petrochemical-basedsources
MissionPositioningVision-the next 30 years
Mission, vision, and positioning of Bloomage Biotech's pilot scale results transformation center
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Talent is the core driving the transformation of research achievements. Bloomage Biotech has established and optimized a talent trainingsystem and a pilot knowledge management system. It adheres to diversified and multi-channel pilot talent training, forming a professionalteam proficient in pilot research in related fields and possessing R&D capabilities. During the reporting period, the Company implemented thefollowing series of measures to improve the organizational capacity of the pilot transformation center:
Case: Continuous improvement of organizational capacity in the pilot transformation center
The Company deeply understands the importance of sustainable development and is committed to optimizing the product developmentand assessment process. It integrates environmental protection and safety concepts throughout the project research and developmentprocess. Comprehensive reviews are conducted on EHS risks, including the use of organic solvents, potential human hazards, and analysisof pathogenic bacteria, to ensure that every R&D outcome meets green and safety standards. Additionally, the Company utilizes bio-basedcarbon sources aimed at reducing greenhouse gas emissions, improving wastewater treatment, reducing air emissions, and minimizing wastegeneration. The overall goal is to minimize the negative impact on both personnel and the environment while promoting project research anddevelopment.
Bloomage Biotech actively promotes lean management, delving deep into the pain points of production, and meticulously analyzing theroot causes of issues. Focusing on key influencing factors, we employ simulation analysis and repeated validation to continuously optimizeprocesses and operational workflows, significantly improving the quality and pass rate of pilot production. The Company's competitiveadvantages of the company's products on key indicators has been reinforced by this improvement. Through optimizing production processes,we minimize our dependency on raw materials and energy while shortening R&D and production cycles, which lowers the amount of solidwaste and wastewater that is produced. These measures help us reduce costs and increase efficiency, also demonstrate our commitmentto green environmental principles. Furthermore, the Company has established a rapid and compliant commercial release system. Throughcross-department collaboration and stringent quality control, we have effectively accelerated the pace of research and developmentcommercialization, facilitating faster product launches into the market.
Case: Optimizing processes and management to achieve win-win economic andenvironmental performance
Organized multiple research and pilot issue communication meetings and co-creation sessions, actively integrating internal and externalresources, and conducting over 30 trainings covering standardization, lean production, management skills, internal processes, etcEstablished a "Problem-solving Camp" to enhance employees' abilities to identify, analyze, and solve problemsLaunched online pilot classrooms to provide employees with a platform for learning safety, quality, and general skillsConducted a 5-month "Peak Camp" management empowerment training program to equip employees with enhanced projectmanagement capabilitiesConducted pilot personnel capability testing and competency inventory, and constructed job competency models to guide employees'career development and growth pathsPromoted cross-department cooperation and talent mobility, implemented project team systems, and established cross-functionalteam operation mechanisms to enhance overall synergyEstablished a pilot knowledge system to accelerate the precipitation and dissemination of knowledge and experience, gradually formingan internal culture of sharing to provide strong support for the organization's continuous development and innovation
Professional training for pilot personnel at Bloomage Biotech
Bloomage Biotech follows the quality management policy and principles of "leading technology, standardized management, safe and reliable,and professional service," with product quality always prioritized. The Company constantly strengthens technological innovation, pursuesexcellent quality, practices and improves the construction of a quality system throughout the entire lifecycle, thereby promoting a cultureof quality, guiding quality consumption, assuming primary responsibility for quality and safety, and guiding customers to enjoy high-qualityproducts and services.
Quality Management
Annual key quality objectives for Bloomage BiotechItem ObjectiveStatusCustomer satisfaction Y90%AchievedQualified rate of finished products at one time Y98%AchievedBloomage Biotech strictly complies with laws and regulations of theProduct Quality Law of the PRC,the Drug Administration Law of the PRC, theFood Safety Law of the PRC, theRegulations on theImplementation of the Food Safety Law of the PRC, theDrug Alert Quality Management Specification, and
Cosmetic Production Quality Management Specification. The Company has formulated and implementedregulations such as theQuality, Food Safety, HACCP Management Manual and Product Surveillance andMeasurement Control Procedures, carrying out full-process quality management from product design,R&D, and production to post-launch quality and safety assurance to ensure product safety and efficacy.The Company has established and continuously improved the quality management system for the entirelifecycle of products to ensure the controllability of product quality and safety. We have obtained ISO9001 quality management system certification, ISO 13485 medical device quality management systemcertification, laboratory national accreditation certification
6, and high-standard production lines that meetUS cGMP, China GMP, and IC HQ7 requirements, as well as on-site inspections by the US FDA, SouthKorea MFDS, and China GMP standards.
Quality Management System
Bloomage Biotech received the "8th Shandong Provincial Governor's Quality Award" at the Shandong Provincial Quality Conference in 2023.As one of the first firms in Shandong Province to apply the "Chief Quality Officer" system internally, the Company's quality management,product quality, independent innovation capability, and management level are among the best in the local sector.
Case: Bloomage Biotech wins the "8th Shandong provincial governor's quality award"
The Company is promoting the construction and application of digitalized systems in the comprehensive quality management systems ofvarious products, continuously refining the quality management model. The implementation of the QMS system (Quality Management System),which aims to optimize quality decision-making processes, shorten the cycle of quality event handling, and improve daily quality managementlevels, is advancing compliance and refinement of quality management, thereby improving our quality management system. Additionally, theCompany has implemented the DMS system (Document Management System) to regulate and control document management activities whileincorporating features such as security, confidentiality, and audit tracking, thereby increasing the efficiency of quality management.The Company actively participates in numerous external quality audits by regulatory authorities, system certifications, and customers, all ofwhich have passed without major faults or substantial flaws, with minor errors corrected. During this reporting period, the Company formedan internal quality inspection and audit team, which conducted 6 internal audits on the construction and operation of each factory's qualitymanagement system, for a total of 9,252 product tests.The Company has long viewed quality as a vital basis and lifeline for company development and has been constantly developing theenterprise's quality management system. Currently, the Company has implemented a quality management system that covers the wholelifecycle and operation of medications, cosmetics, food, health food, disinfectants, sanitary goods, and medical devices. With technologicalinnovation as its foundation, the Company monitors product quality with high standards and strict requirements, continuously improving anexcellent and lean quality management system, achieving enterprise standards that exceed industry, domestic, and international standards,and becoming a benchmark enterprise for promoting high-quality development.
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
To actively address and manage quality risks, Bloomage Biotech has developed management regulations and related systems such as theQuality Risk Management Procedures, theRisk and Opportunity Control Procedures, theEmergency Response Plans for Sudden Incidents,and the Food Safety Traceability Management Procedures about relevant laws and regulations. The Company consistently identifies,assesses, controls, communicates, audits, and minimizes quality risks throughout its product's lifecycle to decrease the likelihood and impactof risks to an acceptable level while protecting consumer safety, health, and rights. The Company conducts comprehensive quality riskassessments annually and rectifies any defects found. During this reporting period, the Company invited third-party organizations to audit thequality management system a total of 62 times, and no major quality risks were identified.
Quality Risk Management
Bloomage Biotech combines raw material procurement as well as technical and process research and development into its productquality management systems. It continuously improves the evaluation of project proposals, expands market involvement in research anddevelopment projects, strengthens quality management, improves product quality, and produces high-quality goods to satisfy customerand market demands. For various categories of product development stages, including R&D initiation, experimental design, pilot testing toinitial scale-up trials, pilot-scale amplification, and trial release, the Company has established quality control requirements and managementprocedures. It follows internal quality management guidelines to the letter, which are even stricter than industry and national guidelines.
R&D Quality
Bloomage Biotech continues to promote the digitalization of the industry and has established a smart QR code traceability system tostrengthen the control of key elements' risks such as new product introduction management, supplier management, raw material certification,production control, laboratory management, and warehousing and transportation management. The Company has achieved direct traceabilityfrom raw material warehousing to final product packaging. Additionally, we've conducted forward and backward traceability simulationsannually to ensure that products can be traced throughout their entire lifecycle from project initiation, R&D, and production, to market launch,thereby implementing the Company's primary responsibility for product quality and safety.
Case: Smart QR code traceability system facilitating quality risk control
Bloomage Biotech rigorously manages the work environment that affects product quality and safety, including production workshops,warehouses, and factory premises. According to relevant laws, regulations, and the requirements of the quality management system, theCompany formulates production and quality inspection procedures, which are implemented at different stages of production activities.The Company focuses on quality control from the source of raw materials, and closely monitors the production process, from raw materialprocurement to pre-production material testing, equipment selection, and maintenance, to standardized operating instructions and productionprocesses, strictly controlling the quality of products at every stage of manufacturing operations.
Production Quality
Bloomage Biotech's functional skincare product workshop employs a visual inspection system. This system captures inspection imagesthrough cameras, converts them into digital signals, and utilizes advanced computer hardware and software technology to process andanalyze the digital signals, promoting fine and intelligent management of product quality.
The Company has also introduced a sorting machine to replace manual product inspection, which comprehensively detects the quality ofproducts, distributing only qualified products to the next process step and rejecting non-conforming products to the defective products area.This enhances the qualification rate of outgoing products, ensuring product quality with greater precision and efficiency.
Case: Empowering quality management and enhancement of functional skincare productsthrough digital transformation
The Company conducts performance and functional testing duringthe production process and comprehensive quality testing afterthe production is concluded. It has established the Procedures forMonitoring and Controlling Products, specifying the managementprocesses for packaging materials, raw materials, process water,intermediate products, finished product acceptance, inspection, andtesting. The Company ensures the reliability of process monitoringand measurement devices by managing their calibration and issuesa qualified inspection report as the basis for the release of qualifiedbatch products. Otherwise, an unqualified inspection report is issued,and non-conforming products are handled according to Companyprocedures, ensuring the quality, efficacy, and safety of productsbefore they leave the factory.The Company continuously conducts lean production activities,adhering to the 5S
7 management concept, creating a visualenvironment, and consolidating the foundation for continuousimprovement. It adopts standardized production operations, optimizesworkflows, strengthens work accuracy, and improves production skillsand efficiency while reducing human errors and deviations.
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Bloomage Biotech complies with laws and regulations such as theProduct Quality Law of the PRC and theQuality Management Standardsfor Medical Device Operations, establishing a compliant product quality management system that includes formulating quality standards,inspection procedures, and records to ensure the execution of product quality management in the operational process. To enhancecompliance and capabilities in quality management during operations, the Company regularly conducts compliance training for employees,doctors, and distributors, in line with relevant regulatory requirements. Additionally, the Company conducts at least one routine audit for all productseach year and collaborates with regulatory authorities, customers, and other parties for special and routine supervision and inspection. During thisreporting period, no serious defects in product quality were found, indicating manageable quality management risks in the operational phase.
Management Quality
The Company continuously tracks updates in regulations and policies related to product instructions, labels, and packaging, conductinginternal inspections promptly to ensure compliance with regulatory requirements. Adhering to the principle of transparent disclosure of productinformation, the Company accurately labels ingredient composition, content, recommended usage, contraindications, and other necessaryinformation in product instructions. For instance, for disinfectant products containing alcohol, the Company labels the effective disinfectantcomponents and ethanol content on the packaging, enabling customers to make informed choices based on their needs and skin sensitivity,thus preventing misuse.
Product Labeling and Instruction Management
Complying with standards of ISO 9001, ISO 22000, and GB/T 27341-2009, the Company establishes a product traceability managementmechanism covering the entire process to ensure the management of traceability records and channels. The Company ensures the integrity andclarity of product packaging for various delivered products, maintaining accurate, reliable, and standardized records to ensure the accessibility, retrieval,and traceability of product-related information. The Company implements a Code Reassurance Traceability System for drugs to ensure traceability andmanages medical devices under the Unique Device Identifier (UDI) system, enhancing product quality control and transparency of information.The Company has formulated the Product Recall Management Regulations for different types of products, standardizing the conditions andprocedures for recalls, effectively handling defective products, and taking corresponding measures to control risks promptly. The Companyhas separate recall plans for pharmaceutical and non-pharmaceutical products and conducts annual simulated recall and disposal exercises.In 2023, a total of 5 product recall simulation drills were carried out. During the reporting period, no incidents requiring the recall of sold orinspected products due to safety and health reasons occurred. However, one recall for functional skincare products due to packaging defectswas reported, involving 179 boxes of defective products, all of which were recalled and disposed of.
Product Traceability Management
Collectionquality-relatedaccidents
ImplementrecallsBloomage Biotech product recall process
Analyze product
recalls
Evaluate recallEffectiveness
Submit to theregulatorsFormulatespecific recallpolicies
Product Recall
Non-conforming products, including raw materials, packaging materials, intermediate products, finished products, and recalled/withdrawnproducts that do not meet theCompany's quality standards, are managed following regulations and procedures to prevent confusion betweenconforming and non-conforming products. The Company isolates and stores non-conforming and returned products separately, promptlychanging the quality status labels and conducting investigations, corrective actions, and inspections. Non-conforming items that fulfill reworkrequirements are reworked until they meet quality standards, while those that cannot be reworked are destroyed by protocols and under on-site supervision to prevent non-conforming products from entering the market.
Management of Non-conforming Products
To guide and standardize the emergency response to product safety incidents, effectively prevent and control various product safety incidents,and minimize harm to public health and safety, the Company has developed management systems such as theEmergency Preparednessand Response Control Procedureand theFood Safety Incident Handling Plan. These systems follow principles of unified leadership, gradedresponsibilities, prevention as the primary focus, combining prevention and control, swift and coordinated response, legal compliance, and scientificdisposal to occurrences involving product safety.The Company's product safety incident handling process includes monitoring, early warning, reporting, emergency response, follow-updisposal, and safeguard measures. We conduct one emergency response training annually for drug safety and emergency drills, allowingrelevant personnel to understand the content and procedures of emergency response, thereby enhancing the Company's emergencymanagement capabilities. To make sure that the appropriate departments can react quickly to occurrences and stop and address anypotential effects on food safety, we also hold an annual emergency drill for food safety events.
Quality Emergency Management
Bloomage Biotech clearly defines quality management goals, emphasizes the development of a quality system, promotes lean production,encourages cross-site collaboration and empowerment, advocates quality training and education, values practical quality managementexercises, implements quality assessments and incentive mechanisms, and has created a distinct quality management culture. The Companyactively fosters a good quality management atmosphere by organizing quality month activities, providing quality training and promotion,participating in the construction of quality standards, maintaining cooperation and communication with external parties, etc., to nurtureemployees' quality concepts and awareness.
Quality Culture
The Company has scheduled 10 sessions of the "Emphasizing Quality and Strengthening Compliance" series of quality learning activitiesfor all workers. Monthly quality verification knowledge lectures are conducted, quality regulations are collected and trained on, and qualityknowledge is shared through learning groups to promote internal capacity transformation and comprehensive improvement of all staff's qualitymanagement capabilities. During the reporting period, the Company conducted hundreds of offline/online quality-related trainings, covering allrelevant personnel involved in product quality management.The Company actively participates in the construction of international, national, industry, and group quality-related standards, therebyboosting the high-quality development of the industry. During this reporting period, the Company contributed to drafting standards forpharmaceutical raw materials such assodium hyaluronate and was involved in the development and validation of industry standards suchas theMedical Sodium Hyaluronate Dressing and Sodium Hyaluronate, as well as group standards of theSodium Hyaluronate for Nursing,Protection, and Oral Equipment. Additionally, the Company provided professional support with product samples and methodology to relevantresearch institutions, to help with building industry standards and project themes.The Company actively participates in industry exchanges related to quality management. During this reporting period, the Companyparticipated in several training sessions organized by the regulatory authorities of Shandong Province, attended forums on high-qualityinnovation and development of the medical device industry, and took part in training sessions organized by local pharmaceutical industryassociations, to learn regulations and standards, draw on excellent quality management experiences, extensively conduct industryexchanges, and jointly advance with various sectors of the industry.
Quality Management Training and Promotion
Construction of Quality Standards
External Cooperation and Exchange
To fully leverage the influences of "Quality Month" activities, innovative activities are continuously carried out to strengthen quality awarenessand improve quality levels. The execution of quality initiatives promotes the development of quality management while also improving theenterprise's cohesion and competitiveness. Therefore, the Company, together with relevant departments in various factories, has organizeda series of quality month activities themed "I Promise, Building Quality Bloomage" including knowledge competitions, billboard evaluations,inspection skills competitions, and "Most Beautiful Quality Person" photography contests.
Quality Month Activities
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
As the first company in China to use microbial fermentation to produce hyaluronic acid on a large scale, Bloomage Biotech has becomethe world's largest hyaluronic acid developer, producer and seller since 2007. We have made originally expensive and scarce hyaluronicacid available to the public. Initiating to use enzymatic digestion method to produce oligomeric hyaluronic acid, we have expanded theapplication space of hyaluronic acid. Bloomage Biotech has expanded from the earliest fields of ophthalmology to orthopedics, plasticsurgery, dermatology and other pharmaceutical and medical fields, and also to cosmetics and food, and then to emerging fields such as dailynecessities and targeted cancer drugs. In this way, we have expanded product application scenarios to reach and benefit more people.The Company has conducted more international operations to explore emerging markets at home and abroad. The Company's variousterminal products have been successfully registered/filed internationally in many countries and regions, such as Europe, America, Asia and soon. The products include products of hyaluronic acid other bioactive raw materials, medical devices, functional skin care products and food. Sofar, the Company's products have been sold to over 70 countries and regions overseas. The Company has leveraged its core advantages ofthe raw material business to serve domestic and overseas customers and enterprises. By doing so, we have promoted industry developmentand product accessibility, making safe and effective products benefit the world.The Company is committed to improving drug accessibility and medical levels in underdeveloped areas. We have actively cooperated withsectors of society, such as governments, medical institutions, and non-governmental organizations, to carry out "the Patient Care CharityCampaign". Each year, the Chairwoman and senior managers lead their charity walk campaign to help solve the health problems of people inunderdeveloped areas.In addition, the Company has leveraged its strong scientific research capabilities to improve the treatment of difficult diseases. For example,the Company has conducted R&D on cancer treatment and successfully obtained an invention patent titled "A 3D Cross-linked HyaluronicAcid Gel and Preparation Method thereof for Radiotherapy Protection".
Based on hyaluronic acid, an endogenous material in the human body, Bloomage Biotech has developed biomaterials for radiotherapyprotection isolation with excellent biocompatibility, which can isolate tumor tissues and reduce organ damage. We have obtained an inventionpatent for the product which is undergoing large-scale clinical trials. It is expected to obtain a Class III medical device registration certificate in2026, realizing localized substitution and innovation of similar products. In addition, this product can be expanded for various clinical scenarios,such as interventional therapy and postoperative auxiliary radiotherapy. We have promoted the R&D of biomedical materials in China to theinternationally advanced level, which is clinically significant for tumor treatment.
Driven by making products and services better quality, more accessible, more inclusive, safer and longer-lasting, Bloomage Biotech hasalways expanded product application areas and consumption scenarios, to bring healthy, beautiful and happy life experiences to mankind.
Product Accessibility and Affordability
Product Accessibility
Case: Bloomage Biotech helps cancer treatment
Bloomage Biotech strives to provide customers and consumers with high-quality raw materials and terminal products at reasonable prices. Tocontinuously improve the affordability of our products in the global market, we fully consider the level of economic development in each regionin product pricing.While abiding by the market pricing mechanism, the Company has taken into account factors such as the affordability and amount purchasedfrom different countries and regions. Adhering to business ethics rules such as anti-monopoly and anti-unfair competition, the Company haspriced fairly in accordance with the local market, industry pricing and regulatory requirements.At present, the Company owns one ophthalmic pharmaceutical product and one orthopedic drug, both of which have been included in themedical insurance to benefit the whole country, reducing the economic burden of patients and benefiting more patients.
Product Affordability
Adverse reaction feedback telephone number of the Company : 0531-82685091Adverse reaction feedback email of the Company : pv@bloomagebiotech.com
Pharmacovigilance Policies and ProceduresBloomage Biotech complies with the requirements oflaws and regulations, such as theDrug AdministrationLaw of the PRC, theGood PharmacovigilancePractice, and thePharmacovigilance InspectionGuidelines. We have formulated pharmacovigilancesystems and built pre- and post-marketpharmacovigilance systems. The Company'schairman & CEO has led to managing the drugsafety affairs and established a Drug SafetyCommittee. Other members of the Committee arecomposed of managers from various departmentsrelated to drug safety. The departments includepharmacovigilance, quality management, production,sales, R&D, and registration. We have ensuredthat pharmacovigilance and adverse reactionmanagement throughout the product lifecycle.
Bloomage Biotech has established a pharmacovigilance system for post-market drugs and formulated pharmacovigilance managementprocedures. We have maintained communication with regulators and other stakeholders and continued to enhance and improve pharmacovigilancemanagement. For the safety of medication for the public, we have ensured that pharmacovigilance throughout the lifecycle of related products.Pharmacovigilance
The Company has revised and put into effect theDrug Safety Committee Charter, thePharmacovigilance Quality Management Procedures
and other management systems. We have formulated and implemented more than 50 control procedures, such as vigilance systems, adverseevent reporting and disposal related to drugs, cosmetics and medical devices. The Company has analyzed and evaluated reports andmonitoring data of product adverse reactions, which have been actively and passively collected. We ensure product traceability, and efficientand accurate pharmacovigilance management. The Company has ensured the effective operation of the pharmacovigilance system throughcontinuous internal and external audits, training and exchanges.The Company has provided smooth information feedback channels to stakeholders, and actively responded to adverse events or informationfed back by customers and consumers. The Company has maintained continuous and smooth communication with regulators such as theJinan Adverse Drug Reactions and Medical Device Adverse Event Monitoring Center in Shandong. We have proactively reported adverseevents to relevant regulators on time and conducted signal detection and risk assessment.
Collect adverse reaction informationand feedback to make feedback forms
Evaluate information,update feedback andsummarize informationAnalyze the evaluationand reports to make areport formMonitor, analyze and evaluatesignals, assess risks, researchand make decisionsCarry out investigations and assessmentson relevant links, and form a report and
plan of rectification measures
Summarize the analysis andreport it to the Drug Safety
Committee
Make risk control decisionsImplement relevant risk control
measures
01
02030405060708Adverse reactionincident handlingflow
Adverse reaction incident handling flowchart of Bloomage Biotech
Based on external policies and regulatory guidance, stakeholder demands and internal needs for compliance operations, the Company hascontinued to revise its pharmacovigilance management mechanism, procedures and operation specifications. By doing so, we have improvedpharmacovigilance effectiveness. The Company has revised and dynamically adjusted the pharmacovigilance risk management system andformulated drug-related pharmacovigilance plans. We have conducted signal detection and analysis of drug safety, as well as risk monitoring,identification and assessment of adverse drug reactions and other harmful reactions related to drug use. In this way, we have developed a riskassessment report, and formulated control measures for risk management and minimization, based on relevant adverse reactions.The Company has actively collected and understood national, local and foreign regulations and guidelines related to pharmacovigilance. Wehave searched the literature and collected regulations on product adverse events every month. To make relevant staff's work more standard,professional and efficient, we have also instructed and supervised them, and provided training and information exchange activities.The Company has always maintained information exchange with external stakeholders and actively participated in relevant activities tounderstand their demands and expectations of the Company's pharmacovigilance management. The Company has actively participatedin training activities, such as core pharmacovigilance technology training, improvement training on pharmacovigilance business skills, andcore cosmetics technology training organized by regulators of all levels. We have enhanced our awareness and management capabilitiesin pharmacovigilance. Meanwhile, the Company has conducted more training on pharmacovigilance expertise, application of MedDRA (aninternational medical terminology dictionary), related product adverse events and adverse reactions, and cosmetics internal auditors. We havepopularized and improved employees' pharmacovigilance knowledge systems and professional skills in responding to adverse events.During the reporting period, the Company has actively cooperated with domestic and foreign official agencies in auditing adverse reactions andcompleted the rectification of deficiencies. The Company has received and handled 109 reports of adverse drug reactions and 66 reports of adversemedical device reactions. There were no product-related deaths or violations of the currentGood Pharmacovigilance Practice.
Continuous Improvement
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Bloomage Biotech strictly abides by laws and regulations, such as the Law of the PRC on the Protection of Consumer Rights and Interests.Attaching great importance to protecting consumer rights, we have continuously improved communication and service quality with the needsof customers and consumers at the center. We have provided timely, responsible and high-quality experiences.
High-quality Service
Bloomage Biotech has formulated theOperation Specifications onCustomer Satisfaction Surveyand Analysis and established a consumerresearch team. We have cooperated with a well-known external dataanalyzer to conduct customer satisfaction surveys on the quality ofproducts sold and services. We have conducted in-depth analysis of theresearch results, continuously optimizing how and what we work.With more than 4,000 stable customers in the global market, the Companyhas become a strategic partner of many international pharmaceutical,cosmetics and health food companies. To provide a high-quality serviceexperience to global customers promptly, the Company has set up itssubsidiaries in the United States, France, Japan, South Korea and othercountries and regions. We have recruited local professionals, to realizelocalized offices. We have also developed an efficient "iron triangle"management team composed of customer managers, solution experts anddelivery specialists. In this way, we have improved international customerresponse efficiency, customer satisfaction and brand stickiness. Duringthe reporting period, the Company has conducted a satisfaction surveyon 403 customers, with a comprehensive score of 96.59 (100-point scale)and a satisfaction rate of 100%, achieving the 2023 satisfaction target.
Improving Customer Satisfaction
Bloomage Biotech attaches great importance to customer privacy and security. To protect customer information and business secrets andprevent customer privacy leaks, we have required employees to strictly control and manage documents and other materials by relevantregulations. It is forbidden to arbitrarily leak any documents and materials of the Company to outsiders. In addition, the Company organizesspecial training on business secret protection on an irregular basis to enhance employees' confidentiality awareness.The Company strictly protects the privacy and data security of B-end customers. We have confidentiality clauses in all contracts signed withcustomers. We disclose no customer privacy without his or her knowledge and consent. The Company abides by the Personal InformationProtection Law of the PRC and the data protection policies of online shopping platforms. We have strengthened our internal self-discipline andautonomy. Based on legality and compliance, the Company has handled C-end consumers' personal information, following the principle ofpersonal information notification and consent.During the reporting period, the Company has received no confirmed complaints about infringement of customer privacy or loss of customerdata. No customer complaints have occurred due to poor security management of customer data.
Customer Privacy Protection
"o
To respond to customer feedback on time, handle customer complaints efficiently and improve service quality, Bloomage Biotech hasformulated the Customer Complaint Handling Procedures and established handling and feedback procedures, customer service standardsand specifications, and emergency handling procedures. The Company has optimized its service quality through daily inspections, researchand analysis, and timely training for relevant employees. After investigating and evaluating the collected complaint information, we work outand implement corrective and preventive measures to properly handle each complaint.The Company welcomes feedback from B-end customers through WeChat, email, phone calls and interviews. During the reporting period,the Company received a total of 14 complaints from such customers through various channels, with a response rate of 100% and a complaintresolution rate of 100%.The Company welcomes demands and suggestions from C-end consumers through online or offline channels. The Company has providedonline customer service on e-commerce platforms, such as Tmall, JD.com and TikTok. If C-end consumers have any questions orcomplaints, they can contact us through customer service channels. Besides, we have participated in the "Return and Exchange Guarantee"plan promoted by the platforms, such as 7-day unconditional returns and exchanges, allergy refunds, fast refunds and compensation forcounterfeits. During this reporting period, the Company has received a total of 90 C-end consumer complaints through various channels, witha response rate of 100% and a complaint resolution rate of 100%.
Customer Feedback and Complaints
The Company has managed its intellectual property based on the principles of protecting technological innovation achievements, controllingintellectual property risks, fostering core competition advantages, and empowering itself to keep innovating and operating for profits. TheCompany has always been committed to:
Intellectual Property Management Policies and Objectives
Bloomage Biotech has conducted intellectual property management activities in product project initiation, R&D, small trials, pilot plant tests,production, and post-market operation and management. The Company has built and continuously improved its standardized and effectiveintellectual property management system by clarifying management policies and objectives, improving management structure and resourceelements, strengthening lifecycle management of intellectual property and conducting operational control, inspection, analysis and continuousimprovement. The Company has been certified by GB/T 29490-2013 intellectual property management system.
Intellectual Property Protection
The Company's Chairwoman and CEO is responsible for the operation and continuous improvement of the intellectual property managementsystem. The Strategic Management Center of Intellectual Property is responsible for professional output and implementation of specific tasks.The Company reviews the suitability and effectiveness of the intellectual property management system every year.The Company strictly abides by the latest regulations of thePatent Law of the PRC, theTrademark Law of the PRC, theMeasures for theImplementation of the Mechanism for Early Settlement of Drug Patent Disputes(interim) and other relevant laws and regulations. We have referredto standards such as the Enterprise Intellectual Property Management. We have formulated and continued to improve its intellectual propertyprotection management policies suitable for the Company's business development, such as theIntellectual Property Management Manual, theIntellectual Property Risk Management and Control Procedures, and theIntellectual Property Dispute Control Procedures. We have implementedthem in intellectual property management activities. The Company has clarified its principles and division of responsibilities for intellectual propertymanagement in patents, trademarks, copyrights, domain names and business secrets. We have clearly defined the application, registration, use,management, transfer, and protection of intellectual property, and have managed intellectual property documents in a scientific and orderly manner.
Intellectual Property Management Structure and System
Effectively implementing intellectual property strategies, improving systems and standardizing managementStrengthening the creation, application and protection of intellectual property to stimulate innovation and promote the effectiveindustrialization of innovation resultsIdentifying, preventing and responding to intellectual property risks in all aspectsMaking every effort to foster current and future patent-based competitive advantagesEstablishing an inter-disciplinary talent team with technical and intellectual property management capabilitiesIn the next 3 to 5 years, the Company will actively conduct intellectual property operations and continue to increase the number of patents,especially the number of patents for inventions. We will also promote the conversion rate of patented technology and steadily increase theproportion of sales revenue of products with intellectual property rights.Bloomage Biotech strives to contribute to realizing the vision of world-inclusive health. We respect the outcomes and spirit of the Declaration onthe TRIPS Agreement and Public Health, and abide by compulsory licensing requirements for public interests, public health and other purposesin the Patent Law of the PRC. We involuntarily transfer relevant patents when necessary to popularize and promote technologies. In this way, theCompany can benefit more people with its innovative achievements and make them enjoy equal access to necessary medical and health services.
Intellectual Property Strategy Management CenterR&D CenterHuman Resources CenterExternal Affairs and General Management CenterDigital CenterFinance CenterLegal CenterManufacturing CenterBusiness Lines
ManagementRepresentatives Top Managers
Intellectual property management structure of Bloomage Biotech
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
The Company has established a patent search mechanism for its products to conduct analyses on FTO (Freedom to Operate), circumventionand patentability before project initiation, during R&D, project conclusion and before marketing. By doing so, we have avoided involvingtechnologies at risk of infringement during the R&D and marketing process. We have identified infringement risks from the source andtaken preventive measures. The Company has established a monitoring mechanism for competitors' patents to monitor and assess therisk of infringing the Company's key products in real time. The Company pays attention to the regional characteristics of intellectual propertyprotection. Based on business development needs, we have actively applied for international patents to fully protect our intellectual propertyand enhance our ability to respond to supply chain risks. The Company allocates necessary budgets every year to deal with possibleintellectual property risks.
Intellectual Property Operation ManagementIntellectual Property Risk Management
The Company has purchased well-known patents and literature databases in the industry and conducted training for relevant personnel.In this way, we have achieved a more comprehensive search of patented technologies, improved the quality of patent applications, andstrengthened intellectual property awareness and capabilities of researching and applying information. The Company ensures that it doesnot infringe on others' patents. At the same time, the Company has introduced a management system for professional intellectual propertyoperation and maintenance to improve efficiency. We can manage intellectual property materials in a centralized manner, such as patents,trademarks and copyrights, and automatically monitor patents' progress.
Intellectual Property Digital Management
To enhance employees' intellectual property awareness and capabilities and effectively protect its innovative achievements and intellectualproperty assets, the Company carries out intellectual property training activities for its employees every year, such as professional internaltraining and bi-weekly sharing sessions. During the reporting period, the Company has carried out 11 intellectual property-related publicityand training sessions, with more than 400 participants and more than 20 training hours.In addition, we have actively participated in relevant external exchange activities and received investigations and research of relevant supervisoryand management departments on our intellectual property management. We have also been involved in various seminars, training classes andother activities. By doing so, we have better understood and implemented the work programs on the intellectual property of the state and regulatorsand have standardized and promoted our intellectual property operations.
Intellectual Property Training and Exchange
To strengthen the intellectual property appraisal, improve the balanced distribution system of interests, and improve theeffectiveness of the technology transfer, the Company has the requirements clarified intellectual property rewards andpunishments, decomposed the intellectual property management objectives and carried out assessments. We have formulatedthePatent Reward Measures and theIntellectual Property Reward and Punishment Regulations. We have followed the principlesof openness, fairness and impartiality in conducting patent awards and penalties for violations. Based on their relevance andcontribution to Bloomage Biotech's business, the Company provides corresponding rewards for domestic invention patents. TheCompany also provides rewards for overseas patents, utility model patents and design patents authorized in other countriesthrough the PCT (Patent Cooperation Treaty) or Paris Convention on the Protection of Industrial Property. For violations of relevantrules and regulations that cause damage or economic losses to its intellectual property rights or customers' intellectual property,the Company makes claims based on actual losses and holds people accountable for their actions During this reporting period, theCompany has provided intellectual property performance rewards to 274 employees, with bonuses totaling RMB 2.33 million.
Intellectual Property Performance Appraisal
The main tasks of Bloomage Biotech's patent risk management?
Conduct patent and non-patent literaturesearchesPredict potential infringement risks and patentdisputesEvaluate patentability and commercial value toform an FTO reportDevelop risk response strategiesConduct supplemental search, update FTOreports and issue risk assessment reports
Write patent applicationdocumentsDetermine the scope andthe countries where thepatent rights are protectedMonitor the progress ofpatent application reviewRespond timely to reviewcomments
Manage patent renewal to ensure timelinessMonitor regularly competitors' products ortechnologies in the market to determinewhether there is any infringement of our patentrightsAnalyze competitors' patent layouts to guideour own R&D and patent strategy planningMonitor the legal compliance of patent marksused internally and externally
Risk assessment before patentapplication
Risk assessment inpatent application
Risk management after patentlicensing
To protect intellectual property rights, Bloomage Biotech has actively cooperated with police and judicial authorities in many places by assistingin handling cases of counterfeit production and sale. The Company has entrusted professional third-party organizations to follow up oninfringements of its trade names, trademarks, patents and other intellectual property rights. During the reporting period, the Company filed 143rights protection litigation cases. The Company has not been punished by relevant competent authorities or held liable by court judgments forinfringement of others' intellectual property rights. There have been no major infringement litigation cases of intellectual property (includingabuse of a dominant position, counterfeiting and piracy).
Intellectual Property Rights Protection
During this reporting period, Bloomage Biotech's patent of "Modified Sodium Hyaluronate Gel for Injection" has won the 24th China PatentExcellence Award. The company was not only honored with the title of 'National Intellectual Property Advantage Enterprise', but also won thehonorary title of Business Secret Protection Leader issued by the Jinan Innovation Zone and Jinan Area, China (Shandong) Pilot Free TradeZone.
Intellectual Property Honors and Performance
Bloomage Biotech's intellectual property licensingCategoryTotal licensed patentsNumber of licenses in 2023Number of applications in 2023Total patents452115189Patents for invention29687142Design patents581621Utility model patents981226Trademark rights4,346585822Copyrights of software and works1001719
By region
Domestic patents445112167Overseas patents7322Domestic trademarks3,749530404Overseas trademarks59755418
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Building CompetitivenessBased on People-Oriented Principle
Bloomage Biotech firmly believes that talents underlie its sustainable development. We have always been devoted to creatinga diverse, inclusive, and safe workplace, actively investing resources to promote employee development, and providingexcellent career advancement opportunities. We have continued to improve occupational health and safety management,protecting employees' occupational safety and physical and mental health. In this way, we can achieve our vision ofsustainable development together.
Employee Training and DevelopmentOccupational Health and Safety
Occupational Health and Safety | Safety Management of Chemicals |
Rights and Interests of Employees
Major Material Topics of Sustainability Covered in this Chapter:
SDGs Addressed in this Chapter:
Adhering to the principles of legal and equal employment, Bloomage Biotech has standardized the employee recruitment and hiring processand continuously improved the employment management system. We have clarified the code of conduct and ethics to fully respect and protecthuman rights as well as workers' rights and interests.Bloomage Biotech respects the relevant regulations of theUniversal Declaration of Human Rights and strictly abides by theLabor Law of thePeople's Republic of China, theLabor Contract Law of the People's Republic of China and theProvisions on Prohibition of Child Labor, aswell as the laws and regulations of the countries and regions where it operates, along with relevant international conventions approved by theChinese government. We have referred to the requirements of the SA8000 Social Accountability 8000 International standard, ISO 26000 socialresponsibility management system standard, and ETI (Ethical Trade Initiative) basic principles. We have formulated and implemented our
Employee Handbook and several related management systems. We treat employees of different races, colors, nationalities, genders, ages,religious beliefs, and cultural backgrounds fairly and impartially. We strictly prohibit any form of child labor, and forced labor through violence,threats, or illegal restrictions on personal freedom. Besides, we prohibit physical punishment, intimidation, harassment, abuse and any form ofdiscrimination against employees.
The Company prohibits the use of child labor, formulates and implements management procedures for prohibiting child labor and protectingunderage workers. We have conducted identity and background investigations on employees and ensured effective management by takingthe following measures:
Fair and Regulated Employment
Compliance Employment
Statements and principles: we firmly oppose any use of child labor and any suppliers who intentionally use child laborRecruitment and employment: we have established personnel files, and verify and identify employees' true identity information toprevent misrecruitment of child labor due to false informationProtection of underage workers: we forbid underage workers of over 16 but under 18 to engage in or to be arranged to engagein high-altitude, underground, radioactive, highly toxic, flammable, and explosive work, or work of level physical labor intensitystipulated by the state and other internship labor with potential hazards. Besides, we have conducted regular health examinations inaccordance with legal requirementsChild labor relief procedures: Once the misuse of child labor is discovered, we must stop his or her work immediately, and escorthim or her home after physical examinations. We also inform the child's guardian and relevant departments
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
The Company prohibits any form of forced labor and abuse, including but not limited to sexual coercion, sexual assault, threats, bodysearches, abuse, humiliation, exploitation, or harassment. We have formulated relevant management systems to explain employees' rightsand interests and to define requirements for managers. The Company has set up a complaint channel and a specialized department toconduct investigations, supervising and improving management quality.During this reporting period, the Company's labor contract signing rate was 100%, and all employees were adult workers. There has been noemployment of child labor or forced labor, and no serious violations of human rights requirements such as bonded labor, labor trafficking ortransfer.
We have made employee recruitment and management standard, including but not limited to:
Recruitment
Formulate theRecruitment Management Regulations adhere to the principle of openness and fairness in recruitment,with no regard for factors such as ethnicity, religion, disability, gender, and marital status. Conduct necessary backgroundchecks when informing applicants and getting their consent to ensure that no identity frauds and conflicts of interest
During work
Formulate theAttendance and Leave Management System and implement the standard workhour system andcomprehensive workhour system. In this way, we have protected the Company's operation and production order whileensuring employees' legitimate rights and interests in rest and vacation
Dismissal andresignation
Employee-initiated termination of labor contract:
Respect employees' willingness to resign voluntarily and carry out the resignation process in accordance with regulationsUnilateral termination of labor contract by the Company:
Respect laws and labor contracts: abide by local laws, regulations, and labor contracts to ensure the legality and fairness of dismissal or layoff procedures Make communication smooth and transparent: communicate with employees to make information transparent before the formal dismissal process. We clarify the specific reasons for dismissal or layoff, the implementation process, and follow-up arrangements Provide support and compensation: respect employees' rights and interests and provide corresponding compensation and benefits; help employees get re-employed, including providing career counseling, training opportunities, internal recommendations, and job transfer opportunities
To ensure the effectiveness of employment systems and procedures, Bloomage Biotech has regularly reviewed policies and implementationprocedures and effects. We have also identified and evaluated employment risks, and taken appropriate risk control measures. In addition,the Company has established a complaint and appeal mechanism. When receiving direct complaints from employees, we conduct relevantinvestigations and handle them promptly.
Bloomage Biotech continues to its reasonable talent team and expand it. As of the end of this reporting period, the Company has had a total of4,655 employees, with an employee turnover rate of 28.46%.
Bloomage Biotech and Jinan Women's Federation have cooperated and exchanged to promote the Company to adopt responsible practiceson child labor and forced labor. In this exchange, Bloomage Biotech has shared its current policies, measures, and results of child labor andforced labor. The Jinan Women's Federation has also shared its research results and experience in intervention of related fields. Through in-depth discussions, both parties have put forward specific suggestions in corporate management, supply chain supervision, employee training.In this way, the Company aims to further improve itself in these aspects. Bloomage Biotech has expressed its willingness to maintain closecommunication and cooperation with the majority of stakeholders to improve corporate social responsibility and contribute to making socialenvironment fairer, more just and harmonious.
Case: Bloomage Biotech communicated with the Women's Federation on child labor and forced labor
Staff Structure
Employment of Bloomage Biotech in 2023 ?person, %?
49.65%
43.33%
1.50%
0.17%
14.24%
36.78%
14.05%
0.77%
50.35%55.17%
85.59%48.40%
2,311
2,017
1,712
2,3442,568
3,9842,253
By Gender By Age
By RankBy Education
FamaleAged 31-50
Middle ManagementBechelor
Aged 51 or Above
Senior ManagementMasterDoctor and Professor
MaleAged 30 or Below
General StaffBelow Bechelor
Case: Bloomage Biotech has carried out corporate culture promotion for foreign employeesand organized diversified exchange activitiesTo make communication and collaboration in diverse backgrounds smoother, Bloomage Biotech has organized foreign employees to travel toChina in July 2023 to visit its World Hyaluronic Acid Museum. Besides, we have also invited foreign employees to participate in many activities,such as the Company's anniversary celebrations, corporate culture promotion, and fun sports games. In this way, we have deepened theirunderstanding and recognition of the Company and industry, eliminated their sense of cultural distance, and enhanced their cross-culturalawareness.
Bloomage Biotech attaches great importance to creating a diverse, inclusive, and equal workplace, and respects employees of different ages,races, genders, nationalities, and physical conditions. To ensure the fairness and justice of the Company's procedures and processes inrecruitment, salary incentives, training, and promotion, we have formulated and implemented the Professional Code of Ethics and Conduct
and other systems. In this way, we ensure that employees enjoy equal rights, prohibiting any form of discrimination and accepting employees'complaints when necessary.The Company has actively built a diversified workforce and provided equal opportunities to all employees. We have fully utilize the respectiveadvantages of gender differences and capability differences at work to stimulate a diversified atmosphere and unleash the power of diversity.In addition, we respect and protect the rights and interests of female employees and clarify the scope of work for female employees:
We forbid arranging female employees in super labor-intensive positions We prohibit arranging pregnant and lactating female employees to engage in any work that may endanger their and their children's health and safety
Diversity and Inclusion
The proportion of femaleemployees of BloomageBiotech in total employees
The proportion of femaleemployees of Bloomage Biotechin middle management
49.65
49.47
The proportion of femaleemployees of BloomageBiotech in senior management
The proportion of femaleemployees of BloomageBiotech in technical personnel
50.0062.20
% | % | % | % |
Foreign employees visited the World Hyaluronic Acid Museum and attended corporate culture promotion
In addition, we have formulated theManagement Regulations on Retirement and Re-employment. We have not restricted the opportunitiesfor employees to develop old employees' abilities. Oriented to personal expertise and industry experience, we conduct retirement and re-employment when necessary to fully protect the rights and interests of re-employed employees. As of the end of the reporting period,Bloomage Biotech has had 6 re-employed employees.The Company respects and embraces multiculturalism by widely absorbing talents from different cultural backgrounds. We have currentlyestablished 4 subsidiaries in the United States, France, Japan, and South Korea, with its business reaching more than 70 countries andregions around the world. We pay attention to the lives of employees of different races and ethnicities, fully respecting their emotions andcultural habits. By the end of the reporting period, the Company has employed a total of 18 foreign employees and a total of 131 minorityemployees.The Company supports the employment of special groups such as people with disabilities. Adhering to the principle of fairness and justice, wehave prohibited discrimination against the disabled in the recruitment and appointment process. When conditions permit, we provide suitablepositions for such individuals to protect their legitimate rights and interests. By the end of the reporting period, Bloomage Biotech has employeda total of 12 disabled employees.
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Bloomage Biotech attaches great importance to attracting and retaining talents. We have strived to make career development channelssmooth, continuously optimized employee training systems, and built a complete performance incentive mechanism. By doing so, we providea broad platform for employee development.Bloomage Biotech has established a reasonable talent recruitment management mechanism. We hire external human resources serviceagencies promptly to assist us in building its talent pool in technology, management, and profession. We carry out social and campusrecruitment activities on mainstream social and recruitment platforms. Meanwhile, we encourage employees to recommend candidates as away to support the Company in introducing high-quality talents.In addition, the Company has drawn talents' attention by participating in industry activities, conducting training with schools, promotingemployer brands, and providing competitive benefits.
Bloomage Biotech has improved employee qualities and fueled their career development through training. The Company has formulatedits Employee HandbookandTraining Management Regulations to clarify its talent cultivation strategy. By developing diversified promotionchannels and establishing an open development platform, we have provided employees with more opportunities for training and further study.We have built a systematic talent training system framework. To help build an internal talent echelon, we have provided multi-field and multi-level training programs covering management training, professional training, new staff training, and general skills training. In addition, weprovide rich academic resources and platforms, such as various AI office tools and CNKI accounts, to help employees make efficient use ofoffice and learning resources and support their development.
Employee Development
Talent Introduction
Talent CultivationEmployee Training System
In addition, the company formulated and promulgated theImplementation Rules for Learning and Growth Welfare, established vocationalqualification training projects and learning education plans, covering all employees (including part-time workers and contract workers),and encouraged employees to obtain relevant professional qualification certificates or improve their academic qualifications, clearlyReimbursement of expenses for personal academic qualification improvement and subsidy for obtaining certificates. We provide differentamounts of learning subsidies to all employees according to their different ranks. During the reporting period, the Company has invested a totalof RMB 659,500 in subsidies to support employees in obtaining education and qualification certificates.
Provide hierarchicalmanagement training for allmanagement levelsInclude leadership training forsenior managers, leadershiptraining for middle managers,management skills trainingfor junior managers andmanagement skills training fornewly promoted managers
For all managersFor all employeesFor all employeesFor new employees
Management sequence Professional sequence R&D sequence
Lecturer resourcesInternal lecturers, externalexperts
Offline coursesCover managerial, technical, operational,general courses
Online platform (E-learning)Case videos, learning courseware, knowledgebase resources, etc.
Establishment of R&D studio Internal job competition systemJob rotation system Management trainee system
For each professionalsequence covered bymarketing, R&D, productionand functionsProvide professional skillstraining courses, includingthree stages of beginners,intermediate and advancedlevels
Provide training on corporateculture, company system, jobbasics, knowledge and skillsEnable newcomers to betterintegrate into their newpositions and grasp the basicknowledge required by theposition in a short time
Provide training on knowledgethat all employees of differentsequences are required tomasterInclude general management,general qualities, generalskills and other relatedknowledge and skills, as wellas related training courses
Management training
Diversified promotion paths
Sharing of educational resources
Open development platform
Professional trainingNewcomer trainingGeneral training
Bloomage Biotech's all-round employee training system
Bloomage Biotech provides a variety of career development channels to improve employee development paths in terms of three directions:"experiential and practical learning", "feedback and instruction" and "courses and skills training". At the same time, we have employed IDP(Individual Development Plan) tools to help employees improve their development plans. We have also established an employee trainingevaluation mechanism to continuously improve the training.
Employee Growth Channels
We have always paid attention to employees' training needs and practical experience. For the management training path, we have formulatedpersonal development plans and understood employees' personal development needs from the aspects of development goals, resourceneeds, and challenging tasks, while regularly tracking their progress. Furthermore, we regularly review and evaluate various training programsfor all employees and continue to optimize training methods based on feedback.
Talent training practices of Bloomage BiotechCourses andskills training
Leveraging its training system and learning platform, the Company has provided teaching resources and onlineand offline courses in management, professional, general, and other knowledgeFeedback andinstruction
Tutorial system: establish an internal teaching mechanism, develop a team of internal lecturers, and providepersonalized instructionDaily communication: each department holds regular meetings to encourage communication and learning betweenold, middle-aged, and young employees, between current employees and new employees, and betweenemployees in relevant departments. This aims to pass on excellent experience and help employees independentlyaccess to training resources needed
Experiential andpractical learning
Job-specific learning: match suitable positions according to personal abilities, and continue to accumulate skills andmanagement experience at workJob rotation mechanism: provide three-year rotation opportunities for the head of first-line business to promoteinternal mobility of talentsPersonal improvement: provide learning subsidies to encourage employees to improve their academic level or professionaland technical abilities, and obtain relevant qualifications and academic certificates, at their own will
46.61%20.72%
53.39%
22.19
18.49
79.28%
23.15
38.52
Proportion byGender
Hours by GenderHours by Rank
Proportion byRank
Famale
Famale
Management Level
Management Level
Male
Male
General Staff
General Staff
Employee training of Bloomage Biotech in 2023?%, hour?
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
The Company has established a training path for management trainees and launched a two-year training plan for them. In the first year,we provide graduates with basic training including corporate culture, company systems, and job expertise through training courses, onlinelearning platforms, and scene exercises. In this way, we ensure that they can adjust to their jobs and integrate into the team in a short time.In the second year, we determine suitable management trainee candidates based on their assessment results. We focus on training onmanagement skills, such as project coordination and planning capabilities, and assign dedicated tutors to provide one-on-one instruction andtraining.We conduct monthly, quarterly, and annual evaluations. We have established a complete evaluation system through knowledge assessment,performance assessment, and 360-degree surveys. The system focuses on management trainees' post-knowledge, professional skills,personal behaviors and abilities, and checks employees' learning capabilities and the effectiveness of training programs.
Case: Bloomage Biotech established a growth channel for management trainees as reservetalents for its management positions
Bloomage Biotech has continuously cultivated its successorcandidates and conducted various forms of leadership developmenttraining. Establishing the long-term leadership program of "BloomageBiotech Institute of Advanced Studies in Management"The Institute focuses on cultivating two types of managers: totalmanagement group and functional management group. Thetotal management group learns courses and tools centering onstrategy, organization, and management. Students are required tosystematically think about the strategy, organization, and managementof their business in a written manner. In addition to basic managementcourses, the functional management group learns additional courses,such as processes, products, and communication. The company alsolearns how to practise market-oriented closed-loop business andR&D transformation. Carrying out leadership training activities of "Peak Camp"In 2023, Bloomage Biotech launched its leadership training program of"Peak Camp" to promote and provide instruction on managerial roles,management responsibilities, management tasks, and managementteams. More than 120 employees have participated in this program,including company executives, department-level managers, juniormanagers, and high-potential employees. There have been 61 femaleemployees, accounting for 50.83%.
Case: Bloomage Biotech has launched diversified leadership training programs
Bloomage Biotech continuously improves its employee training system and models including internal tutoring, external expert teaching, andschool-enterprise cooperation. The Company has continued to enrich the existing teaching resource library to meet employees' diversegrowth needs.The Company has formulated internal documents, such as the Interim Regulations on the Management of Tutoring New Employees
andInterim Regulations on the Management of Internal Trainers. By doing so, we have clarified the tutoring process, tutor qualificationsand appointments, teaching responsibilities, and assessment methods. We have regulated internally established tutorial system andapprenticeship to build a stable and high-quality team of trainers and improve the training quality for new employees.To effectively improve its management, the Company has invited well-known external consulting agencies to offer 8 types of training courseson strategy, digital transformation, and supply chain management in 2023. In this way, we have helped all employees reshape process thinkingand develop management tools, thereby improving the competitiveness of individuals and organizations.The Company has also strengthened school-enterprise cooperation to contribute to developing the industry-education integrationcommunity. In 2023, Bloomage Biotechnology has participated in constructing the communities in biotechnology industry, technical serviceindustry for medical equipment, and pharmaceutical industry. We have coordinated with universities of various industries to carry out jointenrollment, pre-job training, and other training models to improve talent training quality and unblock talent growth paths.
Employee Training Model
Bloomage Biotech leadership training activities
Promotion Mechanism
Committed to building a growth system consistent with job requirements and employees' career goals, Bloomage Biotech has designedscientific and rigorous evaluation standards for employees' promotions. We have formulated ourPerformance Management System tostandardize the performance management process including performance indicator setting, performance communication and counseling,performance evaluation, performance interviews, and feedback. We have adopted an assessment method combining quarterly and annualassessments, and managed performance regularly to provide data support for salary distribution, talent selection, and training. In addition,the Company has established its performance appeal process. When having doubts about their performance results, employees can submitreasonable appeals to the Human Resources Center in terms of the appeal process.To further optimize talent allocation and promote employees' all-rounddevelopment, we have formulated theInternal Competition ManagementRegulations to encourage employees to find more suitable careerdevelopment opportunities. Additionally, we have implemented a fair, just,and standardized internal competition assessment process to assist theCompany in better allocating and managing talent resources.
Talent Development
Commendation scene on Bloomage Biotech's anniversary
Incentives and Recognition
On talent incentives, Bloomage Biotech implements theManagement Measures of Honors and Recognition for all employees. We haveimproved the selection mechanism for honors and recognition and incorporated both spiritual and material incentives into the employeeperformance evaluation system.
In August 2023, BloomageBiotech honored benchmarkingand model employees at itsanniversary celebration. TheCompany awarded a totalof 17 categories of individualand team honorary awards,including Chairman's SpecialAward, Excellent TeamworkAward, and OutstandingContribution Award. Whileexpressing gratitude foremployees' hard work, we alsoinspired outstanding employeesto continue to yield outstandingachievements with us.
Case: Commendation activities on Bloomage Biotech's anniversary
Honor and recognition system of Bloomage BiotechObjects ofrecognition
Teams or individuals awarded in the quarterly honors recognitionExemplars from each business lineEmployees making outstanding contributions to important projects/tasksEmployees involved in Bloomage Biotech's milestonesForms ofrecognition
Spiritual incentives: customized medals/trophies, certificates, commemorative medals/souvenirs. We haveimproved employees' sense of honor and achievement by awarding medals of honor and titlesMaterial incentives: we select annual outstanding projects and provide bonus incentives to groups and individualsTalent development incentives: we record key matters in personal development files. We include employees in thecore reserve echelon for special training. We also provide promotion opportunities and a priority to medium andlong-term incentives such as equities
Recognition
frequency
Awards will be given in the annual/quarterly summing-up meetingPrompt awards after important projects/tasks are completed
undergo performance assessment
All employees
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Strictly abiding by laws and regulations including theProduction Safety Law of the People's Republic of China and theLaw of the People'sRepublic of China on Prevention and Control of Occupational Diseases, Bloomage Biotech have established a complete managementsystem for safety production and occupational health, as a way to provide a safe and healthy workplace for all employees, and to ensure ouroccupational health and safety management.By benchmarking ISO 45001 standards and international best practices, we have formulated policies to conduct safety and healthmanagement, such as theSafety Production Management System andOccupational Health Management System. By the end of this reportingperiod, Bloomage Biotech's Jinan, Tianjin, and Dongying factories have all been certified by ISO 45001 occupational health and safetymanagement system.
Safety and Health
Safety Management
Security Structure
Safety Goals
Bloomage Biotech attaches great importance to standardizing productionsafety and has established its Production Safety Committee. TheCommittee is directed by the Chairwoman & CEO, with relevant seniorexecutives and safety directors of factories serving as deputy directors, andheads of relevant departments at each factory participating as members.Besides, workshop managers and core personnel have been appointed assafety officers. Bloomage Biotech has established a top-down approach toorganize, instruct, and coordinate each subsidiary's implementation of thesafety production tasks while holding safety production meetings regularly.In addition, we have specially set up a Safety Expert Group composedof safety experts from each factory. They assist in formulating safetyproduction regulations, conducting safety audits, and academicdiscussions on production safety.Guided by relevant policies, the Company sets goals related to occupational health and safety production every year, as a guide to promotevarious safety production management tasks. In 2023, the Company adjusted the safety production goals of 2023 by combining the safetyaudit rectification opinions and national laws and regulations related to safety production. We have finally developed 13 annual goals anddecomposed them to each subsidiary, ensuring their implementation at each factory.
Safety Production Targets of Bloomage BiotechTarget Completion in 2023
Minor injury rate X1%AccomplishedThe number of larger or greater events is 0AccomplishedThe number of accidents is 0AccomplishedThe pass rate of hidden danger rectification reaches over 95%AccomplishedPromote the model of safety culture workshop, with the coverage rate of up-to-standard workshopsreaching more than 95%
AccomplishedThe employment rate of full-time safety management personnel, special operations personnel, andspecial equipment operators with certificates is 100%. The periodic review rate is 100%
AccomplishedThe training coverage rate of "three-level safety education" for new employees is 100%. The safetytraining coverage rate for all employees is 100%
AccomplishedThe regular inspection rate of special equipment and safety accessories is 100%Accomplished100% of safety equipment and facilities are in good condition AccomplishedThe reporting rate of runaway loss events is 100%AccomplishedThe "Three Simultaneities" completion rate of safety facilities in new, renovated, and expanded projectsis 100%
AccomplishedThe permit rate for special operations is 100%AccomplishedThe compliance rate of contractor qualification is 100%Accomplished
Production Safety Committee
All relevant departmentsWorkshops and studios
SubsidiariesSafety Expert
Group
Safety production management structure of Bloomage Biotech
Production SafetyTo promote the standardized management of safe production, the Company has formulated a series ofregulations, such as theCompilation of Safety Production Management Systems and theManagement Systemfor Responsibility System of Safety Production. To guide actual tasks, we have also specially formulated relevantpolicies in each link of safety production management, such as risk identification and evaluation, safety hazardinvestigation, chemical management, occupational health management, emergency response, and accidentmanagement.We implement a dual prevention system for production safety, involving hierarchical control of risks andinvestigation and management of potential accident hazards. We organize safety education and trainingactivities regularly, and continue to promote the production digitalization. Through regular internal and externalsafety audits, we achieve standardized closed-loop management throughout the production.
Employees' occupational health andsafety conditions of Bloomage Biotech
Indicators2023Number of work-related deaths0 personNumber of work-related injuries3 accidentsNumber of working days lostdue to work-related injuries
53 DaysWork-related accidents permillion work hours
0.32
To achieve its safety production targets successfully, the Company has decomposed thetargets into subsidiaries, departments, manufacturing workshops, teams, and individuals.We have completed the targets from top to bottom by standardizing the production system,improving the safety management structure, constructing a safety culture, and assessingsafety performance.Based on its realities, each factory has formulated its management measures forperformance appraisal, which are related to safety production and occupational health.These measures stipulated safety performance appraisal standards and procedurescovering all relevant employees. We also require general managers of all factories andemployees to sign a safety target responsibility letter. In 2023, the signing rate of employeesafety target responsibility letters in all factories of Bloomage Biotech has been 100%.Bloomage Biotech has formulated the Safety Investment Management System. We have increased safety investment, continuously improved,transformed, and maintained safety protection facilities and equipment, and updated new technologies, standards, and processes suitable forsafe production. To eliminate potential risks, we have also strengthened the construction of emergency rescue teams and safety productioneducation and publicity. During the reporting period, Bloomage Biotech invested a total of RMB 5.1968 million
8 in production safety andoccupational health.
Safety Culture ConstructionSafety Informatization
Internal ReviewsExternal Reviews
Risk Evaluation andControl
Safety HazardInvestigation
ChemicalsManagement
Occupational HealthManagement
Emergency Planningand Accident ResponseManagement Regulationsfor Safety Production RiskClassification and ControlSystemMajor Hazardous SourcesManagement SystemHazardous Sources Identification and RiskAnalysis of Operations
Management Regulationsfor Production SafetyAccident Hidden DangerInvestigation andManagement SystemSafety HazardInvestigation, Evaluationand Rectification System
Regulations on the SafetyManagement of HazardousChemicals Regulations onthe Safety Managementof Precursor andExplosive Chemicals
Special EquipmentManagement SystemLabor ProtectionSupplies ManagementSystemCompilation ofOccupational HealthManagement Systems
Emergency Plan ofProduction Safety AccidentAccident ManagementSystemEmployee Work-Related Injury InsuranceManagement System
In addition, the Company pays attention to the safety management of engineering contractors and other suppliers in the industrial park. Wehave formulated and strictly implemented theContractor and Supplier Safety Management System. We conduct compliance inspectionson contractor qualifications, clarify safety requirements in advance for all engineering contractors. To prevent safety risks for contractorsand suppliers operating in the park, we also conduct safety training and assessment for external construction personnel, as well as safetysupervision and management throughout the process.The Company has also actively promoted the digitalization of production safety by:
Building an integrated security platform and equipping an intelligent system to realize real-time dynamic monitoring through electronic maps and to achieve all-round security monitoring of the industrial park Equipping an automatic fire alarm system including combustible gas detectors, automatic fire alarms, temperature detectors, sound and light alarms, etc
Coverage rate of internalsafety audit
Rectification rate ofsafety hazard
8 The statistical caliber covers all of Bloomage Biotech's wholly-owned operating factories in China.
%
%%
Safety management system of Bloomage Biotech
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Chemical Safety
Safety Training
Laboratory Safety
To prevent hazardous chemical accidents, Bloomage Biotech abides by relevant laws and regulations, such as theProduction SafetyLaw of the People's Republic of China and theRegulations on the Safety Management of Hazardous Chemicals. We have formulated andimplemented a series of internal rules and regulations, such as theRegulations on the Safety Management of Hazardous Chemicals andtheRegulations on the Safety Management of Precursor and Explosive Chemicals to define the responsibilities of each department. Wehave established the List of Hazardous Chemicals and the Special Emergency Plan for Hazardous Chemicals (Major Hazardous Sources)Accidents, and organized regular drills to standardize management such chemicals' entire process of procurement, storage, loading andunloading, transportation, use, disposal, and accident handling.
Bloomage Biotech has developed and implemented its internal documents such as theRegulations on the Management of OccupationalSafetyand Health Education andSafety Training and Education System to develop the awareness of "inadequate training causing a majorsafety hazard". We have also required the chief persons in charge, safety managers, and transferred employees of each factory base toreceive safety education. Special operations personnel and special equipment operators must have relevant professional qualifications. Newemployees must receive three-level education on production safety.
As Bloomage Biotech's core to promote its continuous innovation and development, the laboratory serves as a centralized place for hazardouschemicals. To standardize laboratory safety management, Bloomage Biotech has formulated and implemented strict laboratory safetyprocedures, clarifying standard operating procedures for the management of chemicals, biological materials, and laboratory equipment. Wehave taken multiple measures to ensure the safe operation of the laboratories.Safety measures of Bloomage Biotech's laboratories:
Safety Culture
In 2023, each factory base of Bloomage Biotech carried out activities of three-level safety education and training for new employees, providingcomprehensive safety education and training on basic knowledge of production safety laws and regulations, basic knowledge of productionsafety (such as common knowledge of using labor protection supplies, electricity safety, and fire prevention), hazard identification, hiddendanger investigation, and accident emergency response. We have required a passing rate of 100% to raise new employees' awareness ofprevention and reduce accidents.
In June 2023, multiple factory bases of Bloomage Biotech carried out the activities themed "Safety for All, Emergency Response for All",with all employees participating. The activities include but are not limited to holding safety knowledge competitions, making publicity boardsand banners, organizing special emergency drills, conducting centralized self-investigation and rectification of hidden dangers, and holdingmeetings to review safety issues. In this way, we have created a strong atmosphere for safety learning.
Case: Safety education and training for new employees of Bloomage Biotech
Case: Bloomage Biotech carried out activities in "Production Safety Month" in many places
System construction
We have formulated and continued to improve thePublic Laboratory Management System, ReportingSystem for Precursor and Explosive Chemicals, Flow System for Precursor andExplosive Chemicals, SafetyManagement System for Synthetic Biology R&D Laboratory, Special Equipment Management Regulations,and Full Life Cycle Management Regulations of R&D Center EquipmentHazardous chemicalsmanagement
We properly classify, label, store, and dispose of all biological materials and chemicals to reduce the risks ofcross-contamination and accidental exposures
Personal protectionmanagement
We provide necessary personal protective equipment, such as lab coats, safety glasses, gloves, and masks,and ensure that employees can use them correctly
Facility and equipmentmanagement
We regularly maintain and inspect all laboratory equipment to ensure it is in good conditionEmergencypreparedness
We have assigned safety commissioners responsible for preparing laboratory emergency plans and
conducting drills. In 2023, the raw material R&D line conducted 2 fire evacuation drills and 1 special chemical
leakage drillPersonnel training
We regularly organized training on laboratory operations and equipment use. In 2023, the Company hired
specialist agencies to carry out training on laboratory personal protection, full life cycle management of
laboratory chemicals, and safety management of laboratory equipment
Safety DrillsBloomage Biotech has formulated comprehensive emergency plans, special emergency plans and on-site disposal plans, such as the
Emergency Plan for Production Safety Accidentsand theSpecial Emergency Plan for Fire and Explosion Accidents. The plans cover a totalof 13 categories, including fire, vehicle injuries, electric shocks, alcohol accidents and scalding accidents, and the relevant plans have beenregistered for the record. We carry out safety emergency drills in various factories and offices every year based on relevant plans to helpemployees apply the knowledge and skills learned in safety training to practice.
Special fire safety trainingIn November 2023, the Jinan factory of Bloomage Biotech carried out its fire safety trainingactivities for the third quarter. We have organized all employees from the production centerof the functional skin care products to watch warning educational films themed chemicalfires and residential community fires. We have also strengthened front-line employees'awareness of fire safety and production standards by sharing accident cases with them andconducting group discussions. Special fire safety emergency drillsIn 2023, Bloomage Biotech carried out fire safety emergency drills at each factory base, andfurther improved emergency plans and disposal plans based on the results of the drills.
Case: Bloomage Biotech carried out fire safety awareness promotion activities
Fire safety training and day emergency drills
Occupational health and safety training of Bloomage Biotech
9
IndicatorsUnit2023
Number of occupational health and safety trainingtimes640Number of employees trained on occupational health and safetyperson16,675Total hours of occupational health and safety traininghours23,533
Bloomage Biotech has implemented theLaw of the People's Republic of China on Prevention and Control of Occupational Diseases andtheLabor Law of the People's Republic of China. We have formulated, released, and implemented the Compilation ofOccupational HealthManagement Systems, Special Operations Management System, Personal Occupational Health Management Regulations, Labor ProtectionSupplies Management System, and other occupational health-related systems. We have also hired external agencies every two years todetect occupational hazard factors in the factory and provided employees with comprehensive occupational disease risk protection in terms ofpersonal safety protection, and environmental and equipment safety. This helps us address our main occupational disease risks, such as dust,high temperature, noise, power frequency electric fields, and chemicals. During this reporting period, the health examination coverage rate ofBloomage Biotech employees has been 100%.
Occupational Health
In addition, the Company pays attention to preventing the risks of repetitive strain injuries that may be caused to employees by daily operations.We have reduced the risks of discomfort and injuries to workers caused by repeated movements or overuse. For this, we have improved theoperating environment and methods, such as upgrading the manual packaging process to automatic or semi-automatic packaging machinesand installing fans to displace air and offset the impact of high temperatures in the workshop.
On personal protection, we provide employees and other personnel entering the production site with a full set of labor protectionequipment for free, and guide and supervise employees to use and wear them correctlyOn equipment management, we regularly maintain special equipment such as boilers and elevators in accordance with regulations,and develop strict procedures for the placement, operation, and maintenance of dangerous facilitiesOn operational safety, we have clear operation and protection requirements for special operations, such as high-altitude operationsand electrical operations. We also require relevant personnel to pass professional training and obtain certificates before operationsOn risk prevention, we post warning signs of occupational health and safety risks at necessary locations of the production site. Inaccordance with regulations, we also provide regular physical examinations for employees in positions with potential occupationaldisease hazards
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Bloomage Biotech has established a standardized salary and performance management system to protect and improve employees' welfarein daily management. It has also strived to make employee communication channels smooth to effectively care for employees and to improvetheir sense of happiness and belonging.Bloomage Biotech adheres to the principle of equal pay for equal work and has formulated theSalary Management System. To matchsalary with employees' contributions and performance and to boost their motivation, we have built a scientific and reasonable salary system,optimized the income distribution structure, and clarified the salary incentive orientation. The Company's remuneration payments are based onthe following principles:
Principle of job value payment: we have gradually established a salary deciding and adjustment mechanism in line with job value and market best practices. In this way, we have recognized job value and enhanced internal fairness Principle of performance results payment: we link remuneration with organizational and individual performance while improving the performance management mechanism linking corporate economic benefits with job performance. By doing so, we have tilted income distribution toward key positions and personnel The principles of openness, fairness, and transparencyBloomage Biotech adheres to its people-oriented principle and builds anemployee welfare system covering three categories: statutory benefits, corporateindependent benefits, and supplemental benefits. Based on employee feedback,we continuously optimize the welfare composition to meet employees' variousneeds. In addition, we provide diversified care to our female employees by settingup a dedicated lactation room in the Company and organizing regular careactivities.Committed to keeping employees' work-life balance and boosting their motivation,we have carried out various care activities, including holiday celebrations, periodicconsolations and, team-building activities. We have also continuously made theoffice environment more comfortable to provide employees with a more pleasantand humane workplace.
Employee Rights and Benefits
Employee Compensation
Employee Benefits
The social insurance payment ratio of the employees
The coverage of supplementary medical insurance and
physical examination for regular employees
%%
Statutory benefits
Corporate-owned benefits
Supplementary benefits
Provide benefits to employees to meet national statutory requirements according to the Leave and AttendanceManagement System:Statutory holidays, annual leave, sick leave, marriage leave, maternity and paternity leave, funeral leave, social insurance (medicalinsurance, pension insurance, unemployment insurance, work-related injury insurance, maternity insurance), housing fund
Provide additional benefits to all regular employees to enhance welfare benefits and satisfaction, including:
Additional paid vacation, holiday benefits, employee mall discountsMeal allowance, factory canteen, team building/annual meeting activities, etc.
Care benefits: supplementary medical insurance, annual physical examination, high temperature subsidy, holiday gift, wedding gift,etc.Economic benefits: subsidies in lunch, business trip, transportation, communication, overtimeLearning and growth benefits: provide a certification allowance while in serviceCorporate culture benefits: application for Beijing work-type residence permits
Welfare system of Bloomage Biotech
In March 2023, all subsidiaries and bases of Bloomage Biotech jointly launched the Women's Day activities themed "Your Beauty Need not beDefined". The scope of the event covered more than 10 provinces and cities, where various activities were carried out. The activities includedflower arrangement learning, Ukulele making, and painting, with employees' happy work and life promoted.
Bloomage Biotech has launched its "Happiness Proposal" plan to provide periodic congratulations and gifts on key dates, such as employees'induction, regularization, promotion, anniversaries, and birthdays. By doing so, we have expressed our care and gratitude to them to improvetheir sense of belonging and boost their motivation.
Case: Bloomage Biotech's subsidiaries jointly carried out theme activities of the Women's Day
Case: Bloomage Biotech's "Happiness Proposal" Plan
In 2023, we conducted an employee satisfaction survey anonymously, covering five dimensions: job duties, management process, workingenvironment, career development, salary, and benefits. We have also analyzed data with a third-party professional research platform. Wehave made organizational improvement plans based on the survey and analysis results. We have paid attention to employees' workingconditions through the survey data and provided appropriate care to gradually improve employee satisfaction. In 2023, the average score ofaverage score's overall employee satisfaction was 84.4 points.In addition, Bloomage Biotech explicitly respects employees' rights to freedom of association. We do not interfere with employees' legalestablishment, operation, or management of collective bargaining and provide convenience for communication between labor andmanagement. As of the end of the reporting period, each of Bloomage Biotech's production bases has established its trade union. Accordingto theTrade Union Management System, we listen to employees' opinions, safeguard their legitimate interests and democratic rights, andregularly carry out union welfare activities to improve their lives.
Bloomage Biotech attaches importance to communicating with employees and has established multiple and open channels for it. Employeescan report their problems and suggestions to department heads or the Human Resources Department through online feedback channels likeemails, dedicated feedback boxes, and face-to-face communication activities such as staff assemblies and department meetings to collectemployee opinions. The company is committed to protecting employees' rights and interests, maintaining fairness and justice, and providingtimely feedback to employees.To protect employees' legitimate rights, interests, and privacy, the Company has established an anonymous complaint and reporting channeland kept employees' complaints and reporting information confidential. Employees can anonymously report any violations and workplacemisconduct to their superiors or the Human Resources Department. Then, the relevant responsible departments conduct follow-upinvestigations and handling based on employees' complaints or reports.
Employee Communication
In September 2023, Bloomage Biotech launchedTeacher's Day theme activities by sending exclusivegift packs and sincere blessings to its internallecturers. In this way, we have enabled employees tofeel they were valued and cared for to create a warmand harmonious workplace.
Case: Teacher' Day theme activities of Bloomage Biotech
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Green and Low Carbon toProtect Ecological Force
The genes of green technology have been deeply rooted throughout Bloomage Biotech's production and operation. We havealways improved the environmental management system, product design and production processes, as a way to practice theconcept of green manufacturing. We constantly explore new ways of comprehensive utilization of resources and energy topractice green and low-carbon production and operation.
Environmental Permits and CertificationPollutant Management
Pollutant ManagementBiodiversity
BiodiversityEnergy Management
Energy ManagementMaterial Management
Material ManagementWaste Management
Waste ManagementWater Resources Management
Water Resources ManagementResponse to Climate Change
Response to Climate ChangeEnvironmental Management
Environmental ManagementProduct Environmental Impact
Major Material Topics of Sustainability Covered in this Chapter:
SDGs Addressed in this Chapter:
Upholding the concept of green manufacturing and the management policy of "preventing accidents, complying with regulations, protectingthe environment and continuously improving", Bloomage Biotech has established and continued to improve the environmental managementsystem to ensure environmental compliance while reducing the impact of operations on the environment.Bloomage Biotech has strictly abided by the requirements of laws and regulations, such as theEnvironmental Protection Law of the People'sRepublic of China and theEnergy Conservation Law of the People's Republic of China. With reference to the standards and requirements ofISO 14001 Environmental Management System, we have formulated internal environmental management systems, such as the EnvironmentalManagement Handbook, Internal Audit Control Procedures, theEnergy Management, Energy Saving and Consumption ReductionRegulationsas well as management regulations on air emissions, wastewater and waste discharge.The Company has set up dedicated safety and environmental protection centers in each factory. They are responsible for identifying,investigating, and evaluating environmental factors, determining important environmental factors and relevant goals and indicators,formulating corresponding management plans, and supervising the implementation of the plans. To further clarify the responsibilities ofrelevant departments, standardize employees' environmental protection and energy-saving behaviors, and ensure that rewards andpunishments are well-founded, we have formulated theSafety, Environmental Protection, and Occupational Health Performance AppraisalManagement Procedures and an energy efficiency incentive mechanism. We monthly assess employees of each level on rationalizedsuggestions, environmental protection and energy-saving technologies, operations against regulations, and relevant penalties.During the reporting period, Bloomage Biotech has invested a total of RMB 15.41 million
10
in environmental protection. No major environmentalpollution incidents occurred, and the following annual environmental management goals were achieved:
Improving Environmental Management
Environmental Management System
CertificationsBloomage Biotech's Jinan factory, Dongying factory and Tianjin factory have been certified by ISO 14001 Environmental ManagementSystem1 national-level green factory1 municipal green factory
Wastewater discharge compliance rateAir emission compliance rate
Compliance rate of hazardous waste treatment
The pass rate of environmental hazards rectification
Product Environmental Impact
100 | 100 |
%%
%%
10 The statistical caliber covers all of Bloomage Biotech's wholly-owned operating factories in China.
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
To step up its daily environmental risk management and control, Bloomage Biotech has established its environmental factor identification andevaluation control procedures. We regularly identify, evaluate, and update the environmental factors involved in the Company's production,R&D and operation processes from 3 temporal perspectives, 3 states, 8 types, and 2 aspects. We regularly evaluate the effectiveness ofcontrol measures for important environmental factors.
Environmental Risk Management and Control
Daily Risk Management and Control
The Jinan factory has actively communicated with the local ecology and environment bureau. It formulated an emergency plan for heavilypolluted weather in November 2023 and publicized the "One Strategy for One Factory" notice board. During the orange alert and red alert,the Company's production and relevant departments promptly implement factory shutdown and production restriction measures. The useof freight vehicles with emissions below National IV Standards for transportation are strictly prohibited. These measures ensure BloomageBiotech's compliant production in the emergency of heavily polluted weather.To improve employees' emergency response capabilities, the sewage treatment workshop of the Dongying factory has organizedemployees to conduct 4 emergency plan drills in 2023, including 2 on-site drills for limited space accidents, 1 on-site drill for hazardouswaste leakage accidents, and 1 on-site drill for chemical leakage accidents.
Case: Each factory of Bloomage Biotech developed response strategies for environmentalpollution and conducted necessary drills
The Company has effectively inspected environmental protection facilities, monitored the environment, and managed emergency response tominimize environmental risks:
We assign dedicated personnel to conductregular inspections of environmentalprotection facilities to check their operationand equipment wear. We also carry outtimely maintenance to ensure the safeand effective operation of all kinds ofenvironmental protection facilities
In accordance with theManagementRegulations on Pollutant Discharge Permitsand the requirements of the pollutantdischarge permit, we conduct regularenvironmental monitoring to effectivelymonitor the discharge of pollutants anddisclose the environmental test results in atimely manner as required. The results aresubject to review by regulators and publicsupervision
We have established and improved theresponse mechanism for environmentalemergencies, and prepared documents, suchas theEmergency Plan for EnvironmentalEmergencies and theEmergency Planfor Heavily Polluted Weather. In this way,we have standardized the response toenvironmental emergencies and ensuredthat on-site response to environmentalemergencies can be conducted in a quick,orderly, and efficient manner
Daily inspectionEnvironmental monitoringEmergency management
Discharge to the atmosphere
Discharge to landRaw materials and natural resource
use
Energy emissions Energy release Waste and by-products
Space occupation
Discharge to water bodies
Past, present, future Environmental pollution Normality, abnormality, emergency
Ecological damage and rational use of
resources
Flow chart of environmental factor identification
Bloomage Biotech strictly implements the "three simultaneous" system of environmental protection (environmental protection facilities andthe main project must be designed, constructed, and put into use simultaneously). We conduct timely environmental impact assessmentsbefore project construction to obtain approval and organize acceptance of environmental protection after project completion to ensure thatnew projects meet environmental compliance requirements. We regularly conduct internal and external audits to discover problems anddeficiencies in environmental management. We also take timely corrective measures to prevent potential environmental accidents andpollution incidents and to protect environmental and public interests.In accordance with the requirements of the Internal Audit Control Procedure, the Company conducts at least 1 internal audit covering its systemsof environment/occupational health and safety management every year. Through personnel interviews, document reviews, and on-site visits,we conduct inspections and develop ourAudit Report on environmental management policies, documented information, pollutant prevention andcontrol measures, and emergency preparedness and response. For problems discovered in the internal audit, the audited department analyzesthe causes of the non-conformities and prepares a report. Subsequently, the department makes its rectification plan based on theCorrective andPreventive Control Procedures and completes rectification within a time limit. Internal auditors are responsible for confirming the rectification results.We regularly invite external third-party agencies to conduct ISO 14001 Environmental Management System audits on the Company to ensurethe applicability and effectiveness of the management system. We regularly promote cleaner production audits and tap our emission reductionpotential to continuously improve resource utilization and pollution prevention and control. In 2023, Bloomage Biotech hired specialist agenciesto conduct clean production audits on Jinan and Dongying factories, covering energy consumption, pollution discharge, production processes,operation of environmental protection facilities, and environmental management status. We have also implemented clean production plansto further enhance economic and environmental benefits. In addition, each factory accepts irregular inspections from relevant governmentdepartments of all levels and clients' on-site audits to continuously improve the credibility and transparency of environmental management.The Company regularly conducts environmental protection training to provide in-depth interpretations of environmental laws, regulations, andstandards. In this way, we have enhanced employees' environmental awareness and created a corporate atmosphere in which all employeesparticipate in environmental protection. In addition, we have developed guidance documents for relevant positions of environmental protection,such as environmental protection equipment operating procedures. We have also provided special training for corresponding employees tostrengthen professional capabilities in environmental management, ensure their compliant operations, and prevent violations.
Bloomage Biotech identifies and monitors the negative impacts that its operations may have on the surrounding ecology. To understand thecurrent situation of biodiversity around the operation site, the Company conducted a biodiversity assessment in 2023 to thoroughly investigatethe surrounding ecosystems, animal, and plant species. We have developed corresponding prevention and control measures in terms ofpotential risk sources, scope of affected areas, probability of occurrence, extent of harm, and risk levels. The assessment results have shownthat there are no nature reserves, scenic spots, national and local key protected wild plants, and rare or endangered wild animals within 1km ofthe area where the Company is located. The Company causes no significant negative impacts on biodiversity while maintaining the normal andeffective operation of environmental protection facilities and detecting and disinfecting foreign objects.
Environmental Supervision and Audit
Improving Environmental Protection Capabilities
Biodiversity Assessment
The Jinan factory organized 4 environmental protection-related training sessions in 2023 to promote the popularization and improvementof its internal environmental awareness. A total of more than 600 people have participated in the training. Besides, the factory has activelyparticipated in more than 10 training and exchange activities of Ecology and Environment Bureau of Jinan to better understand policies andimprove the Company's environmental management.In 2023, the Dongying factory has invited external lecturers to conduct training on special solid waste management for relevant personnelof the safety and environmental department and production department. They have provided in-depth interpretations of laws, regulations,and standards related to environmental protection and solid waste pollution prevention and control. They have also further defined dailymanagement requirements of general solid waste and hazardous wastes, such as classified storage, labeling, and ledger recording. Thepassing rate of the training assessment was 100%.
Case: Comprehensive and special environmental protection training
Environmental protection training of Bloomage Biotech
11IndicatorsUnit2023Number of training sessions on environmental protection and pollution prevention and controltimes43Number of employees trained in environmental protection and pollution prevention and controlperson3,622Total hours of training on environmental protection and pollution prevention and control hours3,313
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Bloomage Biotech abides by relevant regulations and standards of pollutant prevention and control. To minimize the negative impact ofpollutants on the environment, we have always upgraded environmental protection design, transformed environmental protection equipment,and improved the treatment efficiency of environmental protection facilities.Bloomage Biotech abides by theLaw of the People's Republic of China on the Prevention of Atmospheric Pollution and national and localwaste gas emission standards applicable to the Company. We also implement the "three simultaneous" system for environmental protection inconstruction projects. We promptly install waste gas treatment facilities in newly built workshops and continuously optimize existing waste gastreatment designs and equipment. We adopt advanced waste gas treatment technology for pollutants generated during production and operations,such as nitrogen oxides (NOx) and volatile organic compounds (VOCs). Each factory has formulated its own air emission management systemand established its emission management ledger. To ensure the stable operation of waste gas treatment facilities and the compliance of waste gasemissions, the factories assign dedicated personnel to maintain the facilities and regularly entrust third-party agencies to conduct tests.
Bloomage Biotech abides by theLaw of the People's Republic of China on Prevention and Control of Water Pollutionand nationaland localwastewater discharge standards applicable to the Company. We have strengthened the management of water pollution prevention andcontrol facilities and effectively controlled various water body risks. The Company has formulated its wastewater management system tostrictly control all aspects of wastewater discharge and treatment to ensure compliance.Factories listed as key sewage discharge units have established wastewater treatment workshops within their parks to ensure that wastewatertreatment meets the requirements of theWastewater Quality Standards for Discharge to Municipal Sewers (GB/T31962-2015) before beingdischarged into the municipal sewage pipe network. Besides, in accordance with the requirements of theManagement Regulations onPollutant Discharge Permits, they have installed wastewater online monitoring equipment and networked with the government's environmentalprotection department to achieve internal and external collaborative and dynamic supervision of wastewater discharge. The wastewaterquality of other factories is regularly tested by the government and can be directly discharged into the municipal sewage pipe network. 100% ofsuch wastewater discharged into the municipal sewage pipe network meets the discharge requirements.During the reporting period, Bloomage Biotech has strengthened daily inspections of potential wastewater discharge hazards. We promptlyhandle potential risks identified in the inspections to ensure the stable operation of wastewater treatment facilities and prevent leakage andventing during production. Bloomage Biotech has been continuously improving precise monitoring and efficient end-of-pipe treatment ofwastewater treatment processes. Through digital management and upgrading of wastewater treatment facilities, the Company has furtherensured the stability and compliance of wastewater treatment. For example, the Dongying factory has installed an alarm system in thewastewater treatment workshop to conduct real-time monitoring of the pretreatment system, anaerobic system, AO system, and dosingequipment. We issue timely early warnings for abnormalities to enable operators to quickly reset faults remotely. At the same time, the Jinanfactory has upgraded its fans and aerating system to reduce the mud content of the effluent, enhancing the aeration effect and the effluentquality. In this way, we have improved wastewater treatment efficiency and reduced power consumption.
Strengthening Pollution Prevention and Control
Air Emissions
Waste Water
Emissions of major air pollutants of
Bloomage Biotech
12
IndicatorsTotal emissions in 2023Nitrogen oxides7.46 TonsVolatile organiccompounds
3.30 Tons
Wastewater discharge of Bloomage Biotech
13IndicatorsTotal emissions in 2023Total amount of wastewaterdischarge
123.85?in 10,000 tons?COD54.01 TonsAmmonia nitrogen2.03 Tons
In terms of air emission management, the Company takes emission reduction measuresfor organic waste gas. We have also improved treatment efficiency and reduced emissionsby upgrading process design and transforming environmental protection equipment. Forexample, the Chaohu factory has phased out and replaced two BFS 3-in-1 equipment, whichis expected to reduce waste gas emissions with non-methane total hydrocarbon by 5.4 millioncubic meters per year. At the same time, the Jinan factory has developed its collection andtreatment plan for the waste gas from alcohol storage tanks. After completing the project, thefactory can further reduce the fugitive emissions of VOCs (ethanol).
Bloomage Biotech adheres to the sustainable development concept of green operation. We thoroughly implement the requirements oftheLaw of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste. We also uphold theprinciple of "reduction, recycling and harmlessness" of solid waste to promote comprehensive solid waste management and utilization.The Company has formulated systems, such as theWaste Discharge Management Regulations andHazardous Waste ManagementRegulations to standardize the classified management of waste. Each of the Company's factories has built storage areas for generalsolid waste and temporary storerooms for hazardous waste to store the classified waste. The factories have also established ledgers forthe generation, transfer, and storage of waste to realize traceability throughout the waste management.On hazardous waste management, the Company has installed ground anti-seepage facilities, gas collection systems, and exhaust tubeequipment in the temporary storerooms in strict accordance with the relevant requirements of the Standard for Pollution Control on HazardousWaste Storage andTechnical Specifications for Collection, Storage, Transportation of Hazardous Waste. We classify and store varioushazardous wastes, such as waste liquid, waste packaging, used oil, waste lamp tubes, and spent activated carbon, and set prominent warningsigns of hazardous waste in the storage area. The Company has entrusted qualified third parties to transport and dispose of all hazardous waste.
Wastes
Bloomage Biotech's disposal measures for various wastes mainly include:
Optimize production processesand improve product quality andproductivity to reduce solid wastegenerationRecycle cleaning solution to reducechemical consumption and hazardouswaste productionOptimize the wastewater treatmentprocess to reduce the amount ofdosing and sludge generation
Recycle waste plastics, waste packagingcartons, and other wastesEntrust a qualified third party to firewaste perlite and sludge into buildingmaterials, and turn waste plastics intorecycled plastic particles
Entrust a qualified third party to disposeof unrecyclable general industrial wasteand hazardous waste
Source reductionRecyclingHarmlessness
12 The Company monitors, collects, and treats air pollutant emissions in accordance with regulatory requirements, including pollutants such as sulfur dioxide andparticulate matter which are insignificant in information disclosure. The statistical caliber covers all of Bloomage Biotech's wholly-owned operating factories in China.
13 The Company monitors, collects, and treats wastewater pollutant emissions in accordance with the requirements of regulators, including pollutants such as totalnitrogen, total phosphorus, and others that are insignificant in information disclosure. The statistical caliber covers all of Bloomage Biotech's wholly-owned operatingfactories in China.
14 The statistical caliber covers all of Bloomage Biotech's wholly-owned operating factories in China.
Waste Discharge of Bloomage Biotech
14IndicatorsUnitTotal amount in 2023General industrial wasteTons9,599.45Hazardous wasteTons85.01Domestic wasteTons581.09Food wasteTons658Total hazardous wasteTons10,923.55Recycled wasteTons7,331
Bloomage Biotech has the business of producing pharmaceutical-gradeproducts. The Company's related products (hyaluronic acid and relatedproducts) may flow into the wastewater treatment system during production dueto container cleaning and other reasons. Such products are discharged aftertreatment, meeting the pollution discharge supervision requirements. In addition,the products themselves are non-toxic, so they can also be used as a raw-foodmaterial without bioactivity. Therefore, they have no significant negative impact onthe environment and no substantial negative impact on employees' health.
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Bloomage Biotech continues to consolidate normalized resource use management, reduce its resource consumption, and recycle and reuseits resources in details. We have improved resource utilization efficiency comprehensively and given full play to its innovation advantages. Wehave also pushed forward the implementation of programs for resource recycling and green alternatives.Bloomage Biotech strives to reduce energy consumption and carbon emissions during production and operations. We have actively promotedthe establishment of an energy management system and formulated system documents, such as theEnergy Management, Energy Savingand Consumption Reduction Regulations andEnergy Management Implementation Plan. We have implemented a multi-level energymanagement post-responsibility system. As of the end of the reporting period, the Jinan factory has been certified by the ISO 50001 energymanagement system, achieving scientific, standardized, and procedural energy management.
We implement low-carbon emission reduction measures in details and actively recycle and reuse energy in production. For example, weuse the steam and heat generated during the fermentation process for factory heating, hot water supply, and heat energy consumption inemployee canteens. In addition, we vigorously promote the comprehensive utilization of energy and utilize biogas generated in the anaerobicstage of wastewater treatment for power generation. We have actively developed and utilized clean energy, introducing rooftop solarphotovoltaic power generation systems for production and office use. In this way, we have enhanced the proportion of green energy.
Optimizing Resource Use
Energy Management
Energy management measures of Bloomage Biotech mainly include:
Forbid the use of equipmentphased out by the state anduse the latest energy-savingproducts recommended bythe stateCarry out regular equipmentmaintenance and repair toeliminate faults, leakage,and venting and to keep theequipment at top performancefor a long time
Equip qualified measuring instrumentsas required, and continuously upgradeand optimize the IoT(Internet of Things)-based online collection system of energyconsumption data to facilitate energyplanning and management in advanceCarry out weekly energy statisticsand monthly summary, analysis, andbenchmarking. Analyze the reasons anddevelop rectification measures promptly inthe case of a large increase or decrease inenergy consumption
Hire specialist agencies to assist factories inconducting energy-saving diagnosisImplement a daily inspection system for energymanagement and a joint inspection system.Reward and punish individuals and departmentsfor their performance.Encourage employees to put forward rationalizedproposals and participate in technologicaltransformations of energy-saving and consumption-reducing. Provide positive incentives based on costsavings when the proposals are implemented andevaluated to be effective
Energy-consumingequipment management
Energy metering statisticsEnergy performance management
The Tianjin factory and the Jinan factory have built rooftop photovoltaic and biogas power generation equipment, with a total annualpower generation of approximately 3.522 million kilowatt hours (kWh) and greenhouse gas (GHG) emission reduction of approximately2,008 tons of carbon dioxide equivalentDuring the reporting period, the Jinan factory introduced external biomass heating for a total of 38,283 GJ, replacing the originalnatural gas boiler. We have reduced GHG emissions by approximately 5,000 tons of carbon dioxide equivalent
Energy Use of Bloomage Biotech
15IndicatorsUnitAmount in 2023Natural gascubic meter15,686,836Gasolinelitre21,706Diesel oillitre8,939Purchased electricitykWh66,931,210Purchased heat from fossil fuelsGJ174,332Self-generated renewable electricitykWh3,521,913Purchased heat from biomass fuelGJ38,283
Bloomage Biotech attaches importance to the rational utilization of water resources and continuously strengthens scientific watermanagement. The Company has formulated theEnergy Management, Energy Saving and Consumption Reduction Regulations, adding waterconsumption management indicators into the daily indicator management system of each workshop and team, and clarifying water meteringrequirements. Besides, we formulate annual water use plans and entrust third parties to conduct water balance tests and industrial water-saving diagnoses. By doing so, we have laid a solid foundation for the long-term improvement of water resource utilization efficiency. All theCompany's office and production are supplied by municipal water. The types of water used mainly include production water, make-up waterfor cooling circulating water, boiler replenishment water, water for environmental protection facilities, and domestic water.In the production process, the Company has actively used water-saving equipment, optimized production processes, and recycled industrialwater, steam, and wastewater to avoid unnecessary drainage, flushing, and overflow. Besides, we continue to improve water metering, identifyweak links in water use, and replace old water facilities to prevent water resource waste, such as leakage and venting in the water supply pipenetwork.Aiming to build a water-saving enterprise, the Company has vigorously promoted the use of advanced water-saving technologies andprocesses to enhance its water-saving management. The Dongying factory has been honored as a Water-saving Enterprise of ShandongProvince.
Water Resources Management
Water-saving measures of Bloomage Biotech mainly include:
The Dongying factory carried out a technical transformation project to transform the cooling water discharge pipes in the powerworkshop, fermentation workshop, and alcohol recovery workshop. It has also installed cooling circulating water tanks to achievereuse of production water, saving approximately 30,000 cubic meters of water annuallyThe Jinan factory has achieved 97% indirect cooling water circulation and 95% industrial water recycling
The Chaohu factory has replaced the rusted galvanized pipelines in the production workshop, and de-rusted and insulated all chilledwater and steam pipelines. The annual maintained pipelines exceeded 300 meters
Cooling water recycling
Troubleshooting for water pipelines
15 The statistical caliber covers all of Bloomage Biotech's wholly-owned operating factories in China. | 16 The statistical caliber covers all of Bloomage Biotech's wholly-owned operating factories in China. |
"o
Water consumption of Bloomage Biotech
16
IndicatorsUnitConsumption in 2023Total water consumption10,000 tons142.12Circulating water consumptionTons6,734
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Bloomage Biotech strictly complies with the laws and regulations, such as theProduct Quality Law of the People's Republic of China, theFood Safety Law of the People's Republic of China, theDrug Administration Law of the People's Republic of China, theLaw of the People'sRepublic of China on the Prevention and Control of Environmental Pollution by Solid Waste, Regulations Concerning Hygiene Supervision overCosmetics and theRegulation on the Supervision and Administration of Medical Devices. We conduct packaging design, procurement, andprocessing according to the laws and regulations' requirements. Besides, we implement the concept of green and low-carbon high-qualitydevelopment in accordance with the requirements of the national standard of theRequirements of Restricting Excessive Package—Foods andCosmeticsand documents, such as theSustainable Packaging Initiative for Cosmetics. To lessen the impact of packaging on the environmentand health, we focus on reducing packaging weight and quantities in packaging design, material transportation, production, packagingprocurement, and other links.
Packaging Material Management
As Bloomage Biotech's brand of functional skin care, BIOHYALUX has carried out the "Empty Tube Recycling" program for four consecutiveyears since 2020. It has encouraged more consumers to participate in sustainable consumption by distributing unconditional coupons andexchanging empty tubes for genuine products. By the end of 2023, it has conducted 13 sessions of the "Empty Tube Recycling" campaign andrecovered over 9.08 million tubes. A total of nearly 100,000 people have participated, with the recycling weight of 13.62 tons.
Green packaging initiatives of Bloomage Biotech mainly include:
Bloomage Biotech is oriented to consumer demands. While focusing on R&D and innovation in skin care, the Company's major functionalskincare brands are committed to practicing green and environmentally friendly sustainable concepts. We are convinced that we can shape amore sustainable consumer market alongside our customers with our products. While pursuing product effectiveness, we have always fulfilledour responsibility to the environment. To lessen the burden on the environment as much as possible, we have continued to optimize packagingdesign and effectively reduced the use of paper, plastic, and other materials. Besides, we have also launched refill products to encourageconsumers to recycle containers to reduce resource waste. In addition, we use FSC-certified paper packaging materials in our productpackaging to support the protection and sustainable development of the forest ecosystem.
Case: BIOHYALUX's "Empty Tube Recycling" program for single-use products
Case: Integration of skin care and environmental protection concepts
Green packagingdesign
Conduct research on the application of sugarcane-based plastics in disposable packaging materials.Compared with traditional petroleum-based plastics, each ton of bio-based plastics can reduce carbon dioxideemissions by about 3 tonsEmploy BOPP environmentally friendly film in place of PVC cigarette wrapping film to avoid the impact of harmfulsubstances contained in PVC on the environment and employees' health
Optimizationof materialtransportation
Use reusable material transfer tanks to transport materials and reduce the use of polyethylene plastic bagsStrengthen the linkage between equipment and reduce material turnover to save the use of packaging materialsPackaging recycling
Recycle secondarily waste plastics, waste outer packaging cartons, and other waste generated during theproduction process to minimize the amount of waste packagingGreen packagingprocurement
Obtain FSC-COC (Forest Chain of Custody) certification and have the ability to purchase FSC (ForestStewardship Council) certified packaging materials. More than 95% of the purchased external packagingmaterials for functional skin care products have been certified by FSCActively purchase biodegradable plastics, recyclable plastics and other environmentally friendly materials toreplace traditional plastic packaging
Packaging Materials Procurement of Bloomage BiotechIndicatorsUnitAmount in 2023
Total procurement of packaging materials
17
Tons5,270Purchase volume of FSC-certified paper packaging materialsTons846
Carbon footprint accounting serves as the foundation and key for Bloomage Biotech to achieve low-carbon and green development. It is alsoessential for the Company to reach the international market. During this reporting period, we have carried out cradle-to-gate carbon footprintaccounting on our product of hyaluronic acid in accordance with ISO 14067, PAS 2050, theGHG Protocol Product Life Cycle Accounting andReporting Standard and theGeneral Rules for Product Carbon Footprint Evaluation in Shandong Province. We have obtained the carbonfootprint certification statement.
Case: Product carbon footprint certification
Bloomage Biotech actively explores the development path of green manufacturing. The Company has been less dependent on naturalresources and chemicals and continuously reduced resource consumption and GHG emissions. While reducing its own emissions, theCompany strives to provide green manufacturing solutions to achieve the "dual carbon" goals and support sustainable development.The Company has realized the necessity and urgency of responding to climate change. We have proactively identified the impacts and risksthat climate change may bring to all aspects of our operations. We have established a top-down ESG management mechanism to advancethe effective implementation of tasks, such as responding to climate change, conserving energy, and reducing emissions. We have also set upan ESG Strategic Management Center responsible for policy research, path planning, carbon management, information disclosure, and otherclimate change-related tasks. The Company attaches great importance to managing carbon emissions at the organization and product levelsand has conducted GHG inventory based on ISO 14064 standards for all factories in China for two consecutive years, as well as an accountingon product carbon footprint and carbon emissions for our main products of hyaluronic acid, which have all obtained verification statementsfrom well-known auditing organizations.
Addressing Climate Change
Bloomage Biotech pays close attention to the impact ofclimate change on its production and operations. We haveissued and implemented theNatural Disaster EmergencyPlan to improve our relief system and operatingmechanism for responding to natural disasters. Inaddition, for the first time in 2023, we referred to the TCFDframework to identify climate risks and opportunities anddeveloped countermeasures, focusing on our operatinglocations. With the complicated and changeable impactsof climate risks, the Company will continue to track andassess the risks, timely adjust, and update their objectiveexpressions. We will promote the continuous integrationof climate risks and our risk management system, andgradually develop risk response strategies to pushforward the implementation of tasks.
Climate Risks and Opportunities
17 The packaging materials purchased by the Company mainly include paper, plastic, glass, and aluminum.
18 The report of Bloomage Biotech's GHG emission data in 2023 covers all of Bloomage Biotech's offices, R&D centers, and wholly-owned operating factories inChina. The emissions from offices and R&D centers are negligible and excluded from quantification based on international norms. Scope 1 GHG emissions refer to theemissions generated from the consumption of natural gas, diesel, gasoline, fugitive emissions of methane in waster water, and refrigerant filling. GHG emissions inScope 2 refer to the emissions generated from the consumption of purchased electricity and heat. The Company has accounted its GHG statistics in accordance withthe requirements ofISO14064-1: 2018 Specification with Guidance at the Organization Level for Quantification and the GHG Protocol Enterprise Greenhouse GasEmission Accounting and Reporting Standard and Reporting of Greenhouse Gas Emission and Removal. The emission factors refer to the requirements of technicaldocuments, such as the2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories and the latest average grid emission factor of 0.5703tCO2/ MWh issued by the Ministry of Ecology and Environment of the People's Republic of China.
GHG emissions of Bloomage Biotech
18
IndicatorsUnit2023
Direct emissions (Scope 1)tCO2e43,554.73Indirect emissions (Scope 2)tCO2e57,347.36Total GHG emissions (Scope 1 + Scope 2)tCO2e100,902.09
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Risk Type
RiskLevel
ExpectedOccurrenceTime
Potential ImpactsResponse
ExtremePrecipitation
High
Near, interim,long terms
Possible damages or faults to devices and infrastructure, resulting in productioninterruption and reduced productionefficiency, as well as more additional costsin device maintenance and replacement.An increase in short-term wastewaterdisposal burdens leads to larger externaldrainage volumes and severer waterpollution risks, affecting production stability.The normal operation of logistics andsupply chain may be affected withlogistics delays, inventory shortages,and even overdue delivery, incurringa big threat to business continuity andcustomer satisfaction.
DevelopPreparedness Plan to Respond to NaturalDisasters, Environmental Emergency Plan, and
Production Safety Accident Response, combinedwith regular drills to continuously improve andoptimize emergency response mechanisms.Plan and prepare sufficient flood preventionresources in advance, such as sandbags, sumppumps, raincoats, waterproof boots.Optimize water supply and drainage facilities toincrease the capacity of wastewater disposalsystem or apply more efficient treatmenttechnologies with external outlet shut-off valvesarranged.TropicalCyclone
ModerateInterim term
Extremely hightemperatures
Moderate
Near,interim,long terms
A need produced to equip morerefrigeration equipment in an increasedoperational cost.Some raw materials and products gobad during storage and shipment,affecting the quality and marketability ofproducts.Fire and explosion risks rise in thewarehousing.
DevelopPreparedness Plan to Respond to NaturalDisasters, combined with regular drills to continuouslyimprove emergency response mechanisms.Strictly monitor and ensure raw materials and productsstored and shipped under appropriate conditionsinvolving timely adjustments to ventilation,temperature, and humidity.Strengthen fire prevention, including regularinspections and maintenance of fire-fightingequipment and facilities, and fire drills.WaterShortage
Moderate
Near,
interim
terms
Long term drought may cause awater shortage in production and affectproduction stability.
Stick to optimization of production processes, employwater-saving devices instead of old ones for highlyefficient water resource utilization.Make a scientific schedule for production and strictlyact with it.
Sea-levelRise
LowLong term
Flooding risks increased in coastal areascause damage or faults to equipmentand infrastructure, and put factories,warehouses, and office buildings indanger of seawater erosion anddrowning, as a result of which productionmay be interrupted, or relocation needed.Potential damages to coastal ports andtransportation channels are associated withsupply chain disruption or logistics delays.
Strengthen the resilience of buildings andinfrastructure to disasters, such as a design ofhigher building foundation, more efficient drainagesystems.Assess risks related to sea-level rise in coastaloperation bases so as to adjust investment anddevelopment plans in a timely manner thatpotential risks are addressed.
FloodsLow
Near,interim, long terms
An increase in short-term wastewaterdisposal burdens leads to larger externaldrainage volumes and severer waterpollution risks.Possible damages or faults to devicesand infrastructure, resulting in productioninterruption and reduced productionefficiency, as well as more additional costsin device maintenance and replacement
DevelopPreparedness Plan to Respond to NaturalDisasters, combined with regular drills to continuouslyimprove emergency response mechanisms.Optimize water supply and drainage facilities toincrease the capacity of wastewater disposal systemor apply more efficient treatment technologies withexternal outlet shut-off valves arranged.Plan and prepare sufficient flood prevention resourcesin advance, such as sandbags, sump pumps.
We have conducted the scenario analysis based on the two Representative Concentration Pathways (RCPs) of the IntergovernmentalPanel on Climate Change (IPCC), namely RCP4.5 (low carbon emissions scenario) and RCP8.5 (high carbon emissions scenario). We havecomprehensively identified our potential physical risks in the short term (2030), medium term (2050), and long term (2080) as follows:
Physical Risks
Type
Risk/Opportunity
Type
Potential ImpactsResponse
Risk
Policies andregulations
China's Carbon Emissions Trading System operateswith carbon pricing. If included in the carbon quotaallocation list, the Company will cost more to supportrelated compliant operation.As stricter national policies and regulations areenacted to mitigate climate change, the Company isfaced with more pressures on compliance activitiesand related litigation risks.
Pay close attention to changes in international anddomestic laws, regulations, and policies involvingenvironmental protection and carbon emissions sothat the Company can plan and carry out annual carbonemission review and measurement in advance, andgradual carbon footprint verification, etc.Strengthen internal management to prevent additionalcost increases, and negative environmental events.Technologies
Technological cost in low-carbon transition.Investments in low-carbon technology failed and theCompany lagged behind peers in low-carbontransition.
Work harder in the feasibility study of new technologies toensure rationality and applicability.Focus on the cultivation and retention of R&D talents,consolidate for stronger R&D capabilities.Markets
Raw material costs may rise due to the climate-affecting quality and quantity.The demand for our products may decrease ascustomers/consumers become stricter about low-carbon products and ESG performance of theirsuppliers.
Pay attention to any change in raw material market and planto reserve raw materials in advance.Take an active part in energy conservation and emissionreduction and increase the proportion of clean energies used.Integrate the concept of sustainability into productdesign and research and development to meet the need ofcustomers/consumers for green products.Reputation
As the Company's ESG performance remains asa focus for stakeholders, failure to address climatechange risks or fulfill environmental responsibilitiesmay incur a negative impact on its reputation, andfurther damage its brand image and market position.
Actively respond to concerns of stakeholders aboutclimate related issues by disclosing ESG reports,updating information disclosed on the official website,and completing questionnaires.
Opportunity
Market
Incentive policies involving carbon reductionsubsidies and support are formulated by thegovernment.The Company can count on new financing channelsand support policies attributable to development ofgreen financing and sustainable investment.The demand of customers/consumers for greenproducts increases.
Actively engage in the development and implementation ofcarbon reduction projects, and timely apply for relevant subsidies.Build the capability of advancing green transformationand expand funding sources.Achieve non-hazardous disposal and low-carbonproduction of products by means of research anddevelopment innovation, process optimization, etc. and try toobtain product carbon footprint certification and environmentaldeclaration for higher product competitiveness.Technologies
Opportunities are provided by industrial energy-saving technologies and equipment for companiesto reduce costs and increase production efficiency.
Employ high-efficiency production equipment to improveresource recovery and utilization, and further reduce costsrelated to energy and resource consumption.
Driven by the national "dual carbon" strategy and global carbon neutrality trend, Bloomage Biotech is well aware of the necessity of low-carbontransition, as well as potential compliance risks in long term operation and business expansion and cost burdens increased therefor. At thepoint, we analyze climate-related transition risks and opportunities facing the Company with two shared socio-economic pathways (SSPs) ofIntergovernmental Panel on Climate Change (IPCC), namely SSP1-1.9 (low carbon emission scenario) and SSP2-4.5 (high carbon emissionscenario).
Transition Risks and Opportunities
Well understanding how necessary it is to accelerate low-carbon transition, Bloomage Biotech focuses on short-term emission reductionprojects with long-term reduction strategies. As of the disclosure of this report, the Company strengthened its renewable electricity capacityby means of photovoltaic distributed generation facilities, and facilities for biogas to electricity conversion.In time to come, we will continue to improve our carbon emission management system with measures taken, including professional talentallocation, and external cooperation and exchanges. At first, we will integrate internal and external resources to optimize the energy structureand reduce dependence on fossil fuels, thermal power generation, and steam power by fossil fuels, aiming at a decrease in greenhouse gasemissions resulting from energy consumption. Secondly, we will work toward improved energy efficiency through technological and processinnovation so as to reduce intensity of energy use and greenhouse gas emissions.In addition, we understand the importance of joint efforts by all parties to achieve the low-carbon transition and prepare to work with valuechain partners for greenhouse gas emission reduction projects conducted in the full life cycle of products, because we know expectations ofour customers, regulatory agencies, and other stakeholders for the Company's low-carbon development.
Greenhouse Gas Emission Reduction
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Reciprocal Cooperationand Cohesive Development
A stable and reliable supply chain is crucial for corporate development. Bloomage Biotech actively collaborates with suppliersfor greater value in the supply chain, which yields a win-win result. We develop close partnerships to practice responsibleprocurement, aiming at a positive impact on the environment and society while product quality is guaranteed.
Major Material Topics of Sustainability Covered in this Chapter:
SDGs Addressed in this Chapter:
Committed to building and maintaining a reliable and sustainable supply chain that is important to its development, Bloomage Biotechcontinuously optimizes the supply chain management system to meet diverse procurement needs. In addition, we have developed multi-dimensional management methods for various suppliers in a targeted manner, which are effective to enhance the resilience of the supply chain.Strictly abiding by relevant laws and regulations such as the Company Law of the People's Republic of China and theTendering andBidding Law of the People's Republic of China, the Company formulated procedural documents includingRegulations on MaterialProcurement Management andOn-Site Supplier Audit Regulations according to its own business needs, as a guide to standardizedmanagement in all aspects such as supplier entry, evaluation and review, routine management, and quality management. In the yearof reporting, the Company integrated, planned and implemented tendering and procurement strategies, put into practice suppliermanagement plans, and strengthened supply chain risk management capabilities, while promoting collaborative actions amongprocurement-related departments for the improved supply chain management process, in order to achieve better supply chainmanagement, and further improve functions of the procurement strategy management center.In 2023, the Company revised and newly established regulations including theCosmetics Supplier Entry, Supervision and ManagementRegulations to further refine and clarify the management processes of different procurement areas and categories, and to enhance themulti-dimensional supplier management capabilities . In addition, the Company has improved the efficiency of supply chain managementby means of digital intelligence, and has completed the acceptance of the Supplier Relationship Management (SRM) project. SRM is asystem that can enhance cross-departmental business collaboration, standardize and implement a series of management processesrelated to procurement and supplier supervision.
Bloomage Biotech has established a strict supplier entry mechanism used for comprehensive evaluations of potential suppliers in respectssuch as basic qualifications, quality assurance, scale and strength, competitiveness, etc., and necessary on-site audits. Eligible suppliers areincluded in the annualQualified Supplier List.The Company implements classified management of qualified suppliers, and the suppliers are classified according to their procurementamount, importance of goods, and impact on the Company's products and production, and other dimensions. By stratifying suppliers accordingto these dimensions, we manage suppliers in a tiered manner, effectively controlling supplier risks and ensuring high-quality, stable, and safeoperation of the supply chain.As per our requirements, suppliers of raw materials, packaging materials, and other types must be qualified with certificates for productionand operation, necessary management system (eg. Quality management system, GMP, etc.), and for purchased items (such as productionprocess description, safety assessment, quarantine certificates, toxicology and efficacy study data or inspection reports of raw materials,etc.), accompanied with appropriate production conditions. Besides, the Company assesses performances of suppliers in environmentalprotection, occupational health and safety, energy management, and labor rights, and rewards additional credits to excellent suppliers withwell-established management systems and certifications.In the reporting period, Bloomage Biotech has developed partnerships with 712 production suppliers, distributed as follows:
Supply Chain Management System
Supply Chain Management System and Structure
Supplier Entry and Classification Management
Bloomage Biotech is committed to more efficient and targeted management and communication with suppliers, by improving centralizedprocurement management system, launching and applying platforms like Supplier Relationship Management (SRM), and cooperatingwith partners for lean production management. Moreover, the Company actively builds itself into a green manufacturing benchmark with afocus on green supply chain development. To be specific, we establish green procurement standards and supplier performance evaluationmechanisms, and strengthen special exchanges with downstream enterprises through technical exchanges, new product promotion andother activities. On the basis that supply quality is ensured, we prioritize cooperation with suppliers with outstanding performance in greenproduction. In 2023, Bloomage Biotech was selected as one of provincial-level green manufacturing enterprises in Shandong Province andhonored as "Green Supply Chain Management Enterprise".
Case: Bloomage Biotech was honored as "Green Supply Chain Management Enterprise"
Country/regionUnitNumberChina's mainlandSupplier601Taiwan of ChinaSupplier2OverseasSupplier109
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Supplier quality management is an important part of the corporate quality management system. Bloomage Biotech attaches great importanceto the quality of supply chain and has established an effective evaluation and management mechanism, which works to strictly control qualityof goods provided by suppliers through routine monitoring and regular evaluation. Additionally, the Company cooperated with suppliers toimprove the quality of supply chain and provide customers with reliable and safe products and services.To ensure the stable and reliable quality of materials provided by suppliers, Bloomage Biotech has established a comprehensive suppliermanagement system and a series of management documents and audit forms in alignment with regulations, standards, and otherrequirements, such asRegulations on Selection, Evaluation, and Management of Raw Material Suppliers, Supplier Entry, Supervision andManagement Regulations, Class A Raw Material Supplier Quality Management Regulations, andOn-Site Supplier Audit Regulations. TheCompany has established a rigorous supplier quality audit process requiring a 2-3 year-round of on-site quality audits for all suppliers ofimportant materials. The audit encompasses various aspects of suppliers' operations, including management, production, logistics, andwarehousing, etc. Any non-compliance issues, if found during the audit, will be rectified by suppliers referring to the corrective action plan theCompany helps develop. Also, we will regularly communicate with suppliers on the implementation of the plan and arrange necessary re-audits to confirm the effectiveness of the corrective measures, ensuring continuous oversight until issues are resolved.We stick to communications and signQuality Assurance Agreement with suppliers, and conduct annual evaluations and assessments. At thebeginning of each year, theQualified Supplier List is updated annually based on the evaluation of qualified suppliers. Suppliers assessed as"excellent", "good", and "eligible" will be provided with corporate comments on their shortcomings and urged to improve; suppliers found to berejected in critical items or "ineligible" in review conclusions will no longer be included in theQualified Supplier List in this year, and if reactivated,they will be evaluated according to the admission process for new suppliers. In the period of reporting, the Company conducted quality auditsand reviews on 261 suppliers and no supplier was assessed as "ineligible" in the annual evaluation.
Supply Chain Quality Supervision and Review
In Sep 2023, Bloomage Biotech invited 9 leading suppliers in the cosmetics raw material industry (including raw material and packagingsuppliers) to visit Jinan factory and exchange experience and insights in supply chain management and quality management. The exchangeactivities intended to actively promote joint efforts by all enterprises in high-quality production and further advance quality improvement in theentire industry. While communicating, we introduced our quality culture and management philosophy to visitors, which were widely recognized.
Case: Continuous supplier quality exchanges for quality improvement among the industry
Supplier Access Flow Chart
DocumentEvaluation List of QualifiedSuppliers
Sample Evaluation
Supplier Approval
Application andAssessmentRegarding Changes Trial ProductionVerification
Small Batch SampleEvaluation and TrialProductionQuality Agreements
On-site ReviewSupplementary List ofQualified Suppliers (tobe Verified )
Adhering to the concept of "clear and transparent, healthy and orderly", the Company practices the principle of "equal, fair, just, transparent,willing and free negotiation" in procurement, and fulfills responsibilities strictly in accordance with relevant systems and requirements to protectlegitimate rights and interests of suppliers and ensure the legal and compliant procurement.Bloomage Biotech continues to explore how to deepen the supply chain ESG management mechanism and expand communication channelsand cooperation approaches. We manage important ESG issues such as green development, labor rights, safety and health, and businessethics, etc., aiming to reduce supply chain risks, promote sustainability, and maintain corporate reputation for mutual prosperity for thecompany, society, and the environment.Suppliers are required to comply with ESG-related laws and regulations and encouraged to practice high-standard management systemsand business ethics. In addition to theAnti-Bribery Agreement signed by suppliers, we also clearly specified in the contract that environmentalprotection, safety, quality, and others are responsibilities suppliers must assume.Bloomage Biotech's supply chain ESG management indicators include but are not limited to:
While promoting suppliers to improve ESG performance, the Company actively practices sustainable procurement, prioritizing products witha nature in sustainability, and builds a sustainable supply chain from the source. We delve deeply into the sourcing and production methodsof purchased materials, ensuring compliance with pertinent sustainable standards to reduce our impact on environment and society. TheCompany has been certified to FSC-COC (chain of custody), allowed to purchase FSC (Forest Stewardship Council) certified packagingmaterials, and over 95% of outsourced materials purchased for functional skincare products are FSC certified.
Supply Chain ESG Management
ESG dimensionsRequirements
Environment
Comply with national and regional environmental laws and regulationsComplete necessary environmental impact assessments and pollutant discharge permitapplicationBe certified to Environmental Management SystemSafety
Be certified to Occupational Health and Safety Management SystemComplete necessary safety evaluations and safe production permit applicationStandardize chemical management documents and ledger records
Labor
Comply with applicable national labor laws and regulationsNo child labor or forced laborRegular health examinationsNecessary employee trainingBusiness ethics
Integrity management qualificationsPositive track record of ethical business conductSign anti-bribery agreementProcurement
Established procedures for selection, confirmation, and audit of suppliersEstablished relevant regulations on supplier evaluations and retained evaluation recordsEstablished a qualified supplier list and updated in a timely manner
Customer relationship
Customer complaint investigation, corrective, and preventive measures management proceduresRecall proceduresCustomer service performance evaluation
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Care for society inspiresvitality
Bloomage Biotech cares about society, and actively practicing corporate responsibilities through high-quality public welfareinitiatives such as "In Cloud" and "Bloomage Health Tour". These initiatives promote the integration between technology andart while supporting advancements in medical education. The company continuously pays attention to social needs andleverages corporate advantages, integrating internal and external resources, and working together with all sectors of societyto lay a solid foundation for the construction of a mutually beneficial and harmonious society.
Healthcare AvailabilityIndustrial Cooperation and Development
Industrial Cooperation and DevelopmentSocial Welfare and Community Relations
Major Material Topics of Sustainability Covered in this Chapter:
SDGs Addressed in this Chapter:
Bloomage Biotech strives to create sustainable social value and concerns diverse social issues. For years, we continued to conduct two majorpublic welfare activities, "In Cloud" and "Bloomage Health Tour", aiming to explore and enrich public welfare practices in medical inclusion, ruralrevitalization, cultural inheritance, and other fields so that the corporate social influence grows increasingly.At the same time, we actively seek the industry-university-research cooperation. Thus, we engage in in-depth cooperation with universitiesincluding the Central Academy of Fine Arts, Shandong University and other colleges by providing scholarships, and innovation anddevelopment funds, as part of our public welfare activities, to contribute to the development of science, technology, art, and medical education.
"I hope, an increasing number of people will pay attention to ethnic culture and become a member who explores, inherits, and promotes thedisappearing cultures nourished on the land of China. I look forward to a future in which we grow with our ethnic cultures."
—— Ms. Zhao Yan, Chairwoman and CEO of Bloomage Biotech, initiator of "In Cloud"In 2011, Zhao Yan, Chairwoman and CEO of the Company, initiated the "In Cloud" project with a mission to protect China's original cultures.This project explores how to preserve the intangible cultural heritage of various ethnic groups in China through art exhibitions, immersiveexperiences, singing and dancing performances, and culinary events. Additionally, it supports rural development by promoting the inheritanceof ethnic cultures and improving local residents' living standards. In general, it contributes to rural prosperity.To date, the "In Cloud" series has been developed creatively with the times, both in content and form, including 13 thematic projects. It hascovered more than 60 cities in ten provinces and autonomous regions where ethnic groups gather, it cumulatively helping nearly 400 inheritorsof ethnic cultures and intangible cultures from 38 ethnic groups along the tour of over 150,000 kilometers come into view of domestic andinternational communities. Bloomage Biotech carried out a series of folk artactivities and held "Know Xinjiang" music theme partyIn 2023, the "In Cloud" team embarked on a one-year folkart collection tour deep in northern Xinjiang, searching forendangered intangible cultural heritages and folk arts. A seriesof "Know Xinjiang" activities were held, including music parties,art exhibitions, live forum chat, etc., which presented the publicwith a feast of diverse ethnic cultures via such comprehensiveexperiences as singing and dancing, art exhibitions, enjoyingdelicacies, and cultural forums. The music theme party of"Know Xinjiang·In Cloud" was broadcast simultaneously onthe CCTV4 TikTok account, WeChat channel, CCTV-channelHomeland Dreamland, Bloomage Biotech official Weibo andother channels, sharing and exploring the inheritance ofintangible culture with netizens amounting to nearly one million.
Case: In Cloud has been conducted for 13 years, supporting the vigorous development ofethnic cultural inheritance
In social welfare , Bloomage Biotech
totally invested
Provision of goods and servicesCash donations
12.68
Social Welfare and Community RelationsRMB million
1.68
RMB million | RMB million | RMB million |
"In Cloud" has lasted for 13 years, traveled more than 150,000 kilometers, penetrated into ethnic minority settlements in more than60 cities, and helped nearly 400 ethnic culture and intangible cultural heritage inheritors from 38 ethnic groups to go to domestic andinternational stages. During the period of reporting, the project was included in excellent cases at the Pavilion, UN SDG Summit 2023and ESG best practices for Chinese Listed Companies 2023 by China Association for Public Companies"Bloomage Health Tour", has been carried out for 10 years, with volunteer medical activities covering Yexian county of HenanProvince, Seda county of Sichuan Province, Yinchuan city of Ningxia Province, Zibo city of Shandong Province, Bole city of XinjiangProvince, and other areas
Total investment
Distributed by Impact
Distributed by form
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
With a focus on social health, Bloomage Biotech has long provided support for medical inclusion welfare which plays an advantageous role.The company initiated the public welfare activity called "Bloomage Health Tour" in 2013 and has been providing free surgical consumables forcataract patients in areas with relatively scarce medical resources for many years. It invited nationally renowned ophthalmologists to screenand treat local patients with eye problems and expanded its support to other life sciences and health fields - orthopedics and dermatology - in2021. The aim is to include more people in need into its public welfare projects as a way to fulfill corporate social responsibilities.Furthermore, its ophthalmic products "Hymois" (medical sodium hyaluronate gel) and "Hyprojoint" (sodium hyaluronate injection) have beenincluded on the list of medical consumables covered by health insurance nationwide, improving the level of medical security and healthcare. Bloomage Biotech invited orthopedic specialists to provide free medical services in the "Bloomage Health Tour" projectIn Aug 2023, the "Bloomage Health Tour" team visited Bole, a northern border city in Xinjiang Province. Accompanying the team were twowell-known domestic orthopedic experts from the First Teaching Hospital of Xinjiang Medical University we invited to screen and treatnearly 100 local patients with osteoarticular diseases for free, and provide treatment suggestions. In addition, under the help of the BeijingCharity Association, the Company donated 1000 vials of "Hyprojoinz" (sodium hyaluronate injection) and 500 vials of "Hymois" (medicalsodium hyaluronate gel) to the Fifth Division Hospital of Xinjiang Production and Construction Corps, which will be used in the treatment ofosteoarticular diseases and ophthalmic diseases including cataracts. The Company puts its advantages to good use, providing free medicalservices and health consultation services for residents in impoverished and remote areas. Bloomage Biotech sponsored Guangming Xing charityIn Jul 2023, the "Guangming Xing along the Silk Road" public welfare activity was held in Baisha County, Hainan Province as its 20th stop,aiming to provide free diagnosis and surgical treatment for cataract patients in medically weak and underdeveloped areas. Bloomage Biotechtook an active part by sponsoring 200 vials of "Hymois" viscoelastic used as high-quality medical products for cataract patients, in order to helpcataract patients from local disadvantaged families regain their eyesight.
Case: Bloomage Health Tour focuses on medical inclusion welfare, with practices followingthe concept that "life is to live"
Orthopedic specialists are providing free medical services in the "Bloomage Health Tour" project
Bloomage Biotech supported development of local special agricultural productsIn 2023, during the cultural tour in Gansu province, the "In Cloud" team discovered a special fruit called Piteguo fruit. However, due to itsastringent taste it had limited economic value. To address this issue, Bloomage Biotech utilized its professional technical expertise in syntheticbiology by applying microbial fermentation to increase the assay of active substances in the fruit. This effectively improved its economic valueand facilitated product transformation and upgrading within the local market. In addition, the Company utilized online and offline sales channelsto expand markets for Piteguo and processed products thereof, which helped increase economic incomes in the local area and improve theeconomic situation of its residents. Bloomage Biotech contributed to childhood education in rural areasThe public welfare activity "In Cloud" actively participates in funding education for children in remote areas. In 2023, sub-brands of BloomageBiotech, such as "Biohyalux" and "Bio-MESO", sponsored the construction of schools in poverty-stricken areas, including Yecha PrimarySchool in Qinggangtang Town, Suiyang County, Zunyi City, Guizhou Province and Zhongshiwanxiao Primary School in Yongning Town,Ninglang County, Yunnan Province through the public welfare project. They donated classrooms and educational materials to create a moresuitable environment where students can enjoy reading and learning while promoting the development of rural childhood education.
Technical Art is a discipline that promotes the integration of technological ideas and knowledgein art schools, as well as artistic thinking in technology schools. Bloomage Biotech aims tofoster industry-university-research cooperation to develop technical art. In June 2023, itentered into an official cooperation agreement with the Central Academy of Fine Arts anddonated RMB 1 million for the "Synthetic Biology Scholarship". This scholarship encouragesand inspires artists to create artwork related to synthetic biology, identifies innovativeartists with unique perspectives, and provides them with financial support and experimentalconditions.With the support of this scholarship, the first group of selected artists visited variouslaboratories and factories at Bloomage Biotech during the summer of 2023 for on-site artcreation. They had extensive exchanges with frontline scientists, engineers, and productionpersonnel while experiencing firsthand the innovative nature of synthetic biotechnology. Theestablishment of the "Synthetic Biology Scholarship" aims to popularize synthetic biologythrough artistic creations so that more people can intuitively appreciate its charm and power.
In Oct 2023, Ms. Zhao Yan, Chairwoman and President of Bloomage Biotech, donated a portion of her holdings in the Company to ShandongUniversity, accounting for 1% of the total share capital, which is to support scholars and researchers at the university who have madeoutstanding contributions in the field of biomedicine.The donated shares will be used for the advancement of medical education and technology at Shandong University through the establishmentof the Bloomage Biotech Medical Innovation and Development Fund. This fund will provide further support for Shandong University's effortsin constructing medical disciplines and transforming medical research across various areas such as synthetic biology, organ regenerationand stem cell research (anti-aging), new biomedical technologies and materials research and development, as well as other life sciences andhealth fields.Bloomage Biotech, taking into account its own technological strength, decided on this donation to contribute towards the development ofmedical education with an intention to promote science and technology transformation into productivity while empowering life sciences forsocietal progress that supports human healthy living standards characterized by beauty and happiness.
Case: Bloomage Biotech sets up "Synthetic Biology Scholarship" to promote closecollaboration and integration between synthetic biology and arts
Case: Ms. Zhao Yan, Chairwoman and CEO of Bloomage Biotech, donated equity holding toShandong University as a support to the development of medical education and technology
Bloomage Biotech stock donation ceremony
Award-winning works by honored artists (Partial)
Sustainability ManagementComplianceInnovationEmployeeEnvironmentSupply ChainCommunityAbout Us
Case: In Cloud has been conducted for 13 years, supporting the vigorous development ofethnic cultural inheritanceeContinuedf
AppendixIndex of IndicatorsGRI IndexGRI standardDisclosureIndex
GRI 2: GeneralDisclosures
2-1 Organizational detailsP6-72-2 Entities included in the organization's sustainability reportingP12-3 Reporting period, frequency and contact pointP12-4 Restatements of information P12-5 External assurance/2-6 Activities, value chain and other business relationshipsP6-72-7 EmployeesP48-612-8 Workers who are not employeesP492-9 Governance structure and compositionP172-10 Nomination and selection of highest governance bodyP172-11 Chair of the highest governance body/2-12 Role of the highest governance body in overseeing the management ofimpacts
P172-13 Delegation of responsibility for managing impacts/2-14 Role of the highest governance body in sustainability reportingP112-15 Conflicts of interestP13-142-16 Communication of critical concernsP242-17 Collective knowledge of the highest governance bodyP172-18 Evaluation of the performance of the highest governance body/2-19 Remuneration policiesP602-20 Process to determine remunerationP602-21 Annual total compensation ratio/2-22 Statement on sustainable development strategyP122-23 Policy commitmentsP22-27 P492-24 Embedding policy commitmentsP19-25 P49-50 P762-25 Processes to remediate negative impactsP24 P442-26 Mechanisms for seeking advice and raising concernsP432-27 Compliance with laws and regulations
P18-27 P34 P37-45
P49 P56-59 P63-70
P75-762-28 Membership associationsP142-29 Approach to stakeholder engagement P75-762-30 Collective bargaining agreements/
GRI IndexeContinuedf
GRI standardDisclosureIndexGRI 3?Material Topics
3-1 Process to determine material topicsP153-2 List of material topicsP153-3 Management of material topicsP15GRI 201: EconomicPerformance
201-1 Direct economic value generated and distributedP6201-2 Financial implications and other risks and opportunities due to climate changeP71-73201-3 Defined benefit plan obligations and other retirement plansP55201-4 Financial assistance received from government/GRI 202?Market Presence
202-1 Ratios of standard entry level wage by gender compared to local minimum wage/202-2 Proportion of senior management hired from the local community/GRI 203: Indirect EconomicImpacts
203-1 Infrastructure investments and services supportedN/A203-2 Significant indirect economic impactsP79-81GRI 204: ProcurementPractices
204-1 Proportion of spending on local suppliers/GRI 205: Anti-corruption
205-1 Operations assessed for risks related to corruption P21-22
205-2 Communication and training about anti-corruption policies and proceduresP22-23
205-3 Confirmed incidents of corruption and actions takenP23GRI 206: Anti-competitiveBehavior
206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices/
GRI 207: Tax
207-1 Approach to taxP19
207-2 Tax governance, control, and risk managementP19
207-3 Stakeholder engagement and management of concerns related to taxP19
207-4 Country-by-country reporting N/AGRI 301: Materials
301-1 Materials used by weight or volume P70
301-2 Recycled input materials usedP70
301-3 Reclaimed products and their packaging materialsP70
GRI 302: Energy
302-1 Energy consumption within the organizationP68
302-2 Energy consumption outside of the organization/
302-3 Energy intensity/
302-4 Reduction of energy consumptionP68
302-5 Reductions in energy requirements of products and servicesP68
GRI 303: Water and Effluents
303-1 Interactions with water as a shared resourceP69
303-2 Management of water discharge-related impactsP66
303-3 Water withdrawalP69
303-4 Water dischargeP66
303-5 Water consumptionP69
Appendix
GRI IndexeContinuedfGRI standardDisclosureIndex
GRI 304: Biodiversity
304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of highbiodiversity value outside protected areas
P65304-2 Significant impacts of activities, products and services on biodiversityP65304-3 Habitats protected or restoredN/A304-4 IUCN Red List species and national conservation list species with habitats in areas affectedby operations
P65
GRI 305: Emissions
305-1 Direct (Scope 1) GHG emissionsP71305-2 Energy indirect (Scope 2) GHG emissionsP71305-3 Other indirect (Scope 3) GHG emissions/305-4 GHG emissions intensity /305-5 Reduction of GHG emissionsP68305-6 Emissions of ozone-depleting substances (ODS)P71305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissionsP66
GRI 306: Waste
306-1 Waste generation and significant waste-related impactsP67306-2 Management of significant waste-related impactsP67306-3 Waste generatedP67306-4 Waste diverted from disposalP67306-5 Waste directed to disposalP67GRI 308: SupplierEnvironmentalAssessment
308-1 New suppliers that were screened using environmental criteriaP75-77308-2 Negative environmental impacts in the supply chain and actions takenP75-77GRI 401: Employment
401-1 New employee hires and employee turnoverP50401-2 Benefits provided to full-time employees that are not provided to temporary or part-timeemployees
P60-61401-3 Parental leaveP60GRI 402: Labor/Management Relations
402-1 Minimum notice periods regarding operational changesN/A
GRI 403: OccupationalHealth and Safety
403-1 Occupational health and safety management systemP56-57403-2 Hazard identification, risk assessment, and incident investigationP57403-3 Occupational health servicesP59403-4 Worker participation, consultation, and communication on occupational health and safetyP59403-5 Worker training on occupational health and safety P58-59403-6 Promotion of worker healthP59403-7 Prevention and mitigation of occupational health and safety impacts directly linked bybusiness relationships
P59403-8 Workers covered by an occupational health and safety management systemP56-59403-9 Work-related injuriesP57403-10 Work-related ill health P59
GRI IndexeContinuedfGRI standardDisclosureIndexGRI 404: Training andEducation
404-1 Average hours of training per year per employee P53404-2 Program for upgrading employee skills and transition assistance programsP52-55404-3 Percentage of employees receiving regular performance and career developmentreviews
P55GRI 405: Diversity andEqual Opportunity
405-1 Diversity of governance bodies and employeesP50-51405-2 Ratio of basic salary and remuneration of women to men/GRI 406: Non-discrimination
406-1 Incidents of discrimination and corrective actions takenP49-51GRI 407: Freedomof Association andCollective Bargaining
407-1 Operations and suppliers in which the right to freedom of association and collective
bargaining may be at risk
P61GRI 408: Child Labor 408-1 Operations and suppliers at significant risk for incidents of child laborP49GRI 409: Forced orCompulsory Labor
409-1 Operations and suppliers at significant risk for incidents of forced or compulsory laborP49GRI 410: SecurityPractices
410-1 Security personnel trained in human rights policies or procedures/GRI 411: Rights ofIndigenous Peoples
411-1 Incidents of violations involving rights of indigenous peoplesN/AGRI 413: LocalCommunities
413-1 Operations with local community engagement, impact assessment, and development
programs
P78-81
413-2 Operations with significant actual and potential negative impacts on local communitiesP78-81GRI 414: SupplierSocial Assessment
414-1 New suppliers that were screened using social criteriaP75-77
414-2 Negative social impacts in the supply chain and actions takenP75-77GRI 415: Public Policy415-1 Political contributions N/AGRI 416: CustomerHealth and Safety
416-1 Assessment of the health and safety impacts of product and service categoriesP31 P37-40 P43
416-2 Incidents of non-compliance concerning the health and safety impacts of products
and services
P40GRI 417: Marketingand Labeling
417-1 Requirements for product and service information and labelingP25 P40417-2 Incidents of non-compliance concerning product and service information and labelingP25 P40417-3 Incidents of non-compliance concerning marketing communicationsP25GRI 418: CustomerPrivacy
418-1 Substantiated complaints concerning breaches of customer privacy and losses ofcustomer data
P44
Principles of the United Nations Global Compact (UNGC)CategoryPrinciplesIndexHuman Rights
Principle 1: Businesses should support and respect the protection of internationallyproclaimed human rights; and
P49-51Principle 2: Make sure that they are not complicit in human rights abusesP49-51Labour
Principle 3: Businesses should uphold the freedom of association and the effectiverecognition of the right to collective bargaining
P61Principle 4: The elimination of all forms of forced and compulsory labourP49-51Principle 5: The effective abolition of child labour; andP49-51Principle 6: The elimination of discrimination in respect of employment and occupationP49-61Environment
Principle 7: Businesses should support a precautionary approach to environmentalchallenges
P62-73Principle 8: Undertake initiatives to promote greater environmental responsibility; andP62-73Principle 9: Encourage the development and diffusion of environmentally friendlytechnologies
P31-32 P66-70Anti-CorruptionPrinciple 10: Businesses should work against corruption in all its forms, including extortion and briberyP22-24
Appendix
GHG Verification Statement
8687Appendix
ESG Key Performance TablesEnvironmental Performance
IndicatorsUnit2023Greenhouse gases
Total GHG emissions (Scope 1, 2)tCO2e100,902.09Scope 1 emissionstCO2e43,554.73Scope 2 emissionstCO2e57,347.36
Energy
Natural gascubic meter15,686,836Gasolinelitre21,706Diesel oillitre8,939Purchased electricityKWh66,931,210Purchased heat from fossil fuelsGJ174,332Self-generated renewable electricityKWh3,521,913Purchased heat from biomass fuelGJ38,283Water Resource
Total water consumption10,000 tons142.12Circulating water consumptiontons6,734Packaging materials
Total procurement of packaging materialstons5,270Purchase volume of FSC-certified paper packaging materialstons846
Waste
Total hazardous wastetons10,923.55General industrial wastetons9,599.45Hazardous wastetons85.01Domestic wastetons581.09Food wastetons658Recycled wastetons7,331Waste gas
Nitrogen oxidestons7.46Volatile organic compoundstons3.30Wastewater
Total amount of wastewater discharge10,000 tons123.85Chemical oxygen demand (cod)tons54.01Ammonia nitrogentons2.03Training onenvironmentalprotection and pollutionprevention and control
Number of training sessions on environmental protection and pollutionprevention and control
times43Number of employees trained in environmental protection and pollutionprevention and control
person3,622Total hours of training on environmental protection and pollution preventionand control
hours3,313
Social Performance
IndicatorsUnit2023
Employment
Total number of employeesperson4,655Number of employees by genderMaleperson2,344Femaleperson2,311Number of employees by age51 and overperson7031 to 50person2,01730 and belowperson2,568Number of Employees by rankSenior Managementperson8Middle Managementperson663General staffperson3,984Number of employees by geographic locationMainland Chinaperson 4,637Regions or countries outside the mainland (including Hong Kong, Macao and Taiwan)person 18
EmployeeDiversity
Number and proportion of women in managementFemale senior management (executives)person4Proportion of women in senior management%50.00Female middle management (above the manager level)person328Proportion of women in middle management%49.47The number and proportion of R&D employeesNumber of R&D employeesperson926The proportion of R&D employees%19.87Number of female R&D employeesperson576The proportion of female R&D employees%62.20Number of employees by physical conditionGeneral employeesperson4,643Disabled employeesperson12Number of employees by ethnic groupNumber of employees of ethnic minoritiesperson131Number of employees of non-ethnic minoritiesperson4,524Number of employees by educationDoctor and Professorperson36Masterperson654Bachelorperson1,712Below bachelorperson2,253
Appendix
Social PerformanceeContinuedf
Economic Performance
IndicatorsUnit2023Employee turnoverTotal employee turnover rate%28.46
Employee Training
Proportion of trained employees by genderMale%53.39Female%46.61Proportion of trained employees by rankManagement Level%20.72General staff%79.28Average training hours by genderMalehours22.19Femalehours23.15Average training hours by rankManagement Levelhours38.52General staffhours18.49
Employee health and safety
Number of occupational health and safety trainingtimes640Number of employees trained on occupational health and safetyperson16,675Total hours of occupational health and safety traininghours23,533Number of work-related injuriesaccident3Number of work-related deathsperson0Number of working days lost due to work-related injuriesdays53Work-related accidents per million work hours-0.32Social welfareTotal investment in public welfareRMB million2.68
IndicatorsUnit2023Operating RevenueRMB 100 million60.76Net ProfitRMB 100 million5.93R&D investment RMB 100 million4.46Proportion of R&D investment to revenue%7.35
Governance Performance
IndicatorsUnit2023
Board composition andgovernance overview
Number of directors in the Boardperson9Number of female directors in the Boardperson3Proportion of female directors in the Board%33.3Number of independent directors in the Boardperson3Proportion of independent directors in the Board%33.3Number of directors with industry experience person5Number of directors with risk management experience person6Number of directors with financial management experience person3Proportion of independent directors of the Audit Committee%66.7 / 100
19
Proportion of independent directors of the Nomination Committee%66.7Proportion of independent directors of the Remuneration andAssessment Committee
%66.7Proportion of independent Directors of the Strategy Committee%20.0Proportion of independent directors in the ESG Committee%66.7Number of supervisors person3Number of female supervisorsperson3Number of employee supervisors in the Board of Supervisorsperson1Proportion of employee supervisors in the Board of Supervisors%33.3Number of the Board meetings heldtimes6Number of the Supervisory Board meetings heldtimes4Number of the Shareholders' meetings heldtimes1Number of the Committee meetings heldtimes7
Appendix
Address: Floor 33, Tower D, Bloomage International Center, 6A, Jianguomenwai Avenue, Chaoyang District, 100022, Beijing, ChinaEmail: esg@bloomagebiotech.comWebsite: https://www.bloomagebiotech.com/
Bloomage Biotechnology Corporation Limited