Co-Founders’ Message
CONTENTS
Co-Founders’ MessageAbout Proya Cosmetics Co., Ltd.Proya's Sustainability Governance System
Key quantitative performanceBenchmarking index tableReport descriptionSustainable DevelopmentContribution Report
ESG ManagementPractice Report
Building a Happy Workplace for Employees 13Brand Power Promotes Harmonious Society 17Working Together to Protect Our Beautiful Planet 21
Environmental, Social, and Governance SystemEnvironmental ResponsibilityProduct and Customer ResponsibilitySupply Chain ResponsibilityEmployee ResponsibilitiesSocial ResponsibilityCorporate GovernanceCompliance Operation
Co-Founders’ Message
ProyaEnvironmental, Social& Governance (ESG) Report 2021
Co-Founders’ Message
In 2021, Proya celebrated its 18th anniversary. In the 18 yearssince our establishment, we have worked hard against allodds to evolve and grow. We are committed to becoming aworld-class cosmetics enterprise. In this highly-competitive21st century, we have lived up to market expectations andachieved multiple transformational milestones. Thesetransformations have ranged from the production of our firstbottle of skincare product with the aim of breaking into thecosmetics and personal care products market to embarkingon a period of“secondary entrepreneurship” for brand-based development, as well as the rapid development ofe-commerce and live-streaming opportunities in order toaccelerate our growth. We are making steady progress inthe business of creating beauty.Since our inception, Proya has attached great importanceto technological innovation. We always maintain a highpercentage of investment in R&D and focus on planning forindependent R&D and production to empower our productsthrough technology. In recent years, Proya has establishedstrategic partnerships with many organizations around theworld to implement global supply chain projects and to buildtechnical cooperation bridges with a global perspective.In 2021, we strengthened our basic research capabilities byestablishing the International Scientific Research Institutein addition to our existing R&D Innovation Center. We alsolaunched the Longwu R&D Center construction project tofurther enhance our R&D capabilities.We are well aware that the growth of Proya is intertwinedwith the development of society, the prosperity of theindustry, and the diligence and hard work of our staff. Asa corporate citizen, Proya upholds the philosophy ofdedicating ourselves to creating beauty with gratitudeand giving back to society with reverence. We arecommitted to bringing a better life to everyone and toworking with the entire value chain to create a beautifulplanet through sustainable development actions.We care about our employees. Proya strives to createa happy and inviting workplace environment for ouremployees. By listening to our employees and meeting theirneeds, we provide them with solid protection in their workand life. In 2021, we conducted several "Star" employeeactivities and celebrated holidays with them. We also valuedemployee feedback to improve the office experiencewithin each of our processes. This demonstrates our sincereconcern for our employees in every detail.
We care about our society. By fulfilling our mission of Ever-lasting Beauty and sharing bliss, Proya conveys the valueof beauty to society. We care about the living conditionsand mental health of women and youth groups. In 2021,we conducted social advocacy and public welfare activitiesin various ways, such as cross-border collaborations,to continuously advocate gender equality and providecompanionship, support, and assistance to young people.We care about our planet. The sustainable developmentof our planet requires the joint efforts of all membersof society. Proya relentlessly pursues products that aresustainable throughout their life cycle. Although the journeyahead may be long and arduous, with sustained hard workwe will eventually reach our destination and embrace abrighter future. In 2021, we made progress in manufacturingprocesses, packaging material applications, warehousing,and logistics. We implemented several measures toreduce the carbon footprint of our products, such as theintroduction of photovoltaics to reduce energy consumptionand the reduction or recycling of packaging materials. In thefuture, we will continue to create sustainable products tohelp achieve carbon peaking and carbon neutrality goals.We will also continue to contribute to the preservation of ourbeautiful planet.Meanwhile, we will continue to promote the constructionof the ESG system and make solid ESG managementthe foundation of sustainable corporate development.In 2021, the Company established an ESG managementstructure led by the board of directors and set up an ESGManagement Committee and an ESG ImplementationTeam to ensure the efficient execution of ESG tasks. In2022, we will develop our first medium- and long-termESG development plan to help the Company overcomedifficulties and achieve long-term stable growth.In 2022, the "18-year-old" Proya begins a new chapter ofdevelopment. We will continue to abide by the sustainableconcept and unswervingly follow the path of high-qualitydevelopment driven by technological innovation. We willconduct our business and strengthen ESG constructionmore sustainably. In addition, we will promote green,low-carbon, and high-quality development to create anenvironmentally-friendly and socially-responsible Proya, thusmaking new and greater contributions to the healthy andsustainable development of China's cosmetics industry.
About Proya Cosmetics Co., Ltd.
ProyaEnvironmental, Social& Governance (ESG) Report 2021
About Proya Cosmetics Co., Ltd.
Proya Cosmetics Co., Ltd. (hereinafter referred to as "Proya", "the Company", and "we") is committed to building a new Chinesecosmetics industry platform. We specialize in the R&D, production, and sale of cosmetics. Our brands cover a wide range of beautyproduct areas such as popular exquisite skincare, make-up, and high-efficacy skincare, as well as body and hair products. We arecommitted to becoming a world-class cosmetics enterprise through continuous technological and marketing innovation and productoptimization.
The kernel of“6*N”is originated from the 6 capacities above, empowering and incubating "unique" brands that
meet the "unique" needs of "unique" consumers
Company name: Proya Cosmetics Co., Ltd.Stock code: 603605 (Shanghai Stock Exchange)Headquarters location: Hangzhou City, Zhejiang ProvinceEstablished in: 2006Company business and size:
Operating revenue (Unit: RMB100 million)
Net profit attributable to shareholders oflisted companies (Unit: RMB100 million)
20192019
31.24
3.93
37.52
4.76
46.33
5.76
2020202020212021
?The Company develops, manufactures, and sells cosmetic products primarily on the Chinese mainland. We have twomanufacturing factories for skincare and make-up products in Huzhou, Zhejiang Province, and sales subsidiaries inHong Kong China, Korea, Japan.
?The Company's sales network encompasses multiple channels, such as e-commerce platforms, specialty stores forcosmetics and personal care products, shopping malls, supermarkets, and single-brand stores.
?The Company had 2,844 employees as of the end of the reporting period.
"6*N" development strategy
Company profile
Newconsumption
NewmarketingNewintelligentmanufacturing
NeworganizationNewtechnology
Newmechanisms
ProyaEnvironmental, Social& Governance (ESG) Report 2021
Proya's Sustainability Governance System
Company honors
HonorAwarding body
Top 100 Most Valuable Companies Listed on China's Mainboard at the15th Chinese Listed Companies Value Awards
The Securities TimesTop 10 Beauty Brand in Zhejiang Province in 2020
Zhejiang Health Products and Cosmetics Industry
Association2021 China Intelligent Production Outstanding Application Awarde-works.net.cnZhejiang Province Collaborative Supply Chain Innovation ComplexContractor
Zhejiang Province Circulation and Consumption Work
Leading Group OfficeOutstanding Industrial Product of Zhejiang Province in 2021 (the ProyaDeep Ocean Energy Essence 2.0 for wrinkle reduction and skin tightening)
Zhejiang Federation of Industrial EconomicsInnovative Consumer Product (the Proya Deep Ocean Energy Essence forenergizing, rejuvenating and firming your skin and reducing wrinkles)
China Association of Fragrance, Flavoring, and
Cosmetics IndustriesOutstanding Group in Drug Safety Governance and TechnologyEmpowerment 2021
Zhejiang Provincial Drug AdministrationNational "Dual Love and Dual Evaluation" Advanced Enterprise Union(selection of excellent employees who love their enterprises and excellentmanagers who support and care for their employees)
All-China Federation of Industry and CommerceChina Outstanding Paper AwardIFSCC Conference 2021 (Cancun, Mexico)
Company performance highlights
Sustainable development performance
RMB 432,668,300RMB 7.24
3.55%
18.19 kg
of CO
13.08 kg
of packaging
00%
RMB 172,868,570.76RMB 8.60 (tax included)Total tax payment
Social contributionper share
R&D investment as a percentage of theparent company’s operating revenue
Equivalent Greenhouse gas emissionsper RMB 10,000 of revenue
Materials used per RMB10,000 ofrevenue
Number of product healthand safety violations
Percentage of workdays lostdue to work-related injuries
Total cash dividends(tax included)Cash dividends per 10 shares
Society
Economy
Environment
Number of environmentalsafety accidents
Proya upholds the corporate mission of Ever-lasting Beauty and sharing bliss. We provide consumers with innovative productsbased on solid and holistic ESG management, thus enabling them to enjoy a beautiful life. We help our employees succeed byimplementing people-oriented management. We are also enthusiastic about good causes and help to build a beautiful society withour brand power. We work with our entire value chain to protect our beautiful planet and to share a better life with our employees.consumers, and society.
Sustainable development concept
Ever-lasting beauty
and sharing bliss
◎Sustainability development model
Corporate missionEver-lasting beautyand sharing bliss
Corporate visionTo become a world-classcosmetics enterprise
Corporate spiritDiligence, pragmatism, passion,aggressiveness, integrity, andgratitude
Core corporate valuesResponsibility, willingness to learn,high efficiency, collaboration,innovation, and fairness
S
olid
and
holistic
ESG
manage
m
e
n
t
Innovative products enablea beautiful life
People-orientedmanagementhelps employees
succeed
Brand powerpromotes
a beautiful society
Workingtogether to
protect
our beautiful
planet
Proya's Sustainability Governance System
ProyaEnvironmental, Social& Governance (ESG) Report 2021
Proya's Sustainability Governance System
The 2030 Agenda for Sustainable Development, formally adopted by 193 UN member states in 2015, includes 17 SustainableDevelopment Goals (SDGs) as well as 169 targets. The SDGs were established taking into account the economic, social, andenvironmental dimensions of sustainable development. The SDGs are designed to end poverty, hunger, and inequality and toempower all women and girls. These goals are also a universal call to action to build a peaceful, just, and inclusive society and toprotect the planet and its natural resources.The 17 SDGs and their 169 targets have become an important framework for businesses to work in solidarity to address complex andinterconnected global issues. As a responsible company, we want to play an important role in achieving these goals.Based on our sustainable development model, we will focus on the achievement of the following SDGs: Goal 5 (gender equality),Goal 8 (decent work and economic growth), Goal 12 (responsible consumption and production), and Goal 13 (climate action).We also support the achievement of the following SDGs: Goal 1 (no poverty), Goal 3 (good health and well-being), Goal 4 (qualityeducation), Goal 6 (clean water and sanitation), Goal 14 (marine life), Goal 15 (terrestrial life), and Goal 16 (harmonious, fair, and stronginstitutions). ◎Key SDGs
TargetCorporate actionReport sections
Target 5.1: End all forms ofdiscrimination against allwomen and girls everywhere.
We promote the concept of genderequality to help eliminate discriminationagainst women.
Gender does notdivide us, prejudicedoes!Target 8.5: By 2030, achieve fulland productive employmentand decent work for all womenand men, including for youngpeople and persons withdisabilities, as well as equalpay for work of equal value.
We drive economic development byinvesting, paying taxes, and providingjobs. We help our employees obtaindecent jobs, and we ensure equal pay forwork of equal value.
Employee rights andbenefits
Target 8.7: Take immediateand effective measures toeradicate forced labor, endmodern slavery and humantrafficking, and secure theprohibition and elimination ofthe worst forms of child labor,including recruitment and useof child soldiers, and by 2025end child labor in all its forms.
We protect labor rights, prohibit the useof child labor, and oppose forced labor.We also require our suppliers to adhere tothis principle.
Employee rights andbenefitsBuilding a responsiblesupply chain
TargetCorporate actionReport sectionsTarget 8.8: Protect laborrights and promote a safe andsecure working environmentfor all workers, includingmigrant workers, in particularwomen migrants and those inprecarious employment.
We provide our employees with stablejob opportunities and income as well as agood working environment.
Employee rights andbenefits
Target 12.2: By 2030, achievesustainable managementand efficient use of naturalresources.
We follow sustainable sourcing principlesin our procurement, use certifiedsustainable raw materials, and strive touse resources more efficiently in ourproduction.
ResourceconservationBuilding a responsiblesupply chain
Target 12.5: By 2030,substantially reducewaste generation throughprevention, reduction,recycling, and reuse.
We improve production processes andreduce factory waste; through packagingreduction and recycling, we reduce wastein logistics and product use.
Green packagingEmissionsmanagement
Target 12.6: Encouragecompanies, especially largeand transnational companies,to adopt sustainable practicesand to integrate sustainabilityinformation into their reportingcycle.
We publish an annual ESG report todisclose our sustainability information.
Report Description
Target 12.8: By 2030, ensurethat people everywhere haverelevant information andawareness for sustainabledevelopment and lifestylesthat are in harmony withnature.
We promote the sustainable developmentconcept to our employees, consumers,and suppliers.
Working with partners:
Leading a sustainablelifestyle
Target 13.3: Improveeducation, awareness-raising,and human and institutionalcapacity on climate changemitigation, adaptation, impactreduction, and early warning.
We take steps to improve energyefficiency and reduce carbon emissions tocombat climate change.
Responding to climatechange
Contributing to the achievement of global sustainabledevelopment goals
ProyaEnvironmental, Social& Governance (ESG) Report 2021
Proya's Sustainability Governance System
◎Other SDGs
TargetCorporate actionReport sections
Target 1.4: By 2030, ensure that all men andwomen, in particular the poor and the vulnerable,have equal rights to economic resources, aswell as access to basic services, ownership, andcontrol over land and other forms of property,inheritance, natural resources, appropriate newtechnology, and financial services, includingmicrofinance.
We participate inrural revitalization andprovide assistance tovillages in economicallybackward areas bypairing up with them.
Rural revitalization
Target 3.4: By 2030, reduce by one-to thirdpremature mortality from non-communicablediseases through prevention and treatment andpromote mental health and well-being.
We care about themental health ofyoung people andhelp them suffer lessfrom psychologicalproblems.
The Echo Project:
Don’t be ashamed ofyour feelings
Target 4.1: By 2030, ensure that all girls and boyscomplete free, equitable, and quality primaryand secondary education leading to relevant andeffective learning outcomes.
We provideeducational supportto the villages weare paired with, suchas supporting localstudents in theirschooling.
Rural revitalization
Target 4.7: By 2030, ensure that all learners acquirethe knowledge and skills needed to promotesustainable development through, among otherthings, education for sustainable developmentand sustainable lifestyles, human rights, genderequality, promotion of a culture of harmony andnon-violence, global citizenship, and appreciationof cultural diversity and of the contribution ofculture to sustainable development.
We promotethe sustainabledevelopmentconcept and asustainable lifestyleto our employeesand consumers, andwe conduct genderequality education.
Gender does notdivide us, prejudicedoes!Working with partners:
Leading a sustainablelifestyle
TargetCorporate actionReport sections
Target 6.3: By 2030, improve water quality byreducing pollution, eliminating dumping, andminimizing release of hazardous chemicals andmaterials, halving the proportion of untreatedwastewater, and substantially increasingrecycling and safe reuse globally.
We have improved ourproduction processesto reduce the emissionof wastewater andhazardous waste fromour factories.
Emissionsmanagement
Target 6.4: By 2030, substantially increase water-use efficiency across all sectors and ensuresustainable withdrawal and supply of fresh waterto address water scarcity and to substantiallyreduce the number of people suffering fromwater scarcity.
We strive to boostwater recycling duringproduction to improvewater efficiency.
Raw materials andwater conservation
Target 14.1: By 2025, prevent and significantlyreduce marine pollution of all kinds, in particularfrom land-based activities, including marinedebris and nutrient pollution.
We reduce packagingwaste by implementinggreen packagingmanagementmeasures, therebyreducing marinepollution from land-based activities.
Green packaging
Target 15.2: By 2020, promote the implementationof sustainable management of all types of forests,halt deforestation, restore degraded forests,and substantially increase afforestation andreforestation globally.
We follow sustainablesourcing principles anduse sustainable-forestcertified paper.
Building a responsiblesupply chain
Target 16.5: Substantially reduce corruption andbribery in all their forms.
We strictly managecommercial bribery toeliminate corruptionin our businessoperations.
Anti-corruption andbusiness ethics
Sustainable Development Contribution Report
ProyaEnvironmental, Social& Governance (ESG) Report 2021
SustainableDevelopmentContribution Report
The Chinese believe that
The Supreme Good isLike Water ; Water Nurtures All LivingThings without Competing with Them
.This reveals the true meaning of our sustainable developmentactions. We are committed to discovering, creating, andnourishing beauty to enable everyone to enjoy a beautifullife. We create the happiest workplace for our employees.Like water that silently nourishes all things, we are dedicatedto creating a beautiful, fair, and kind social environment, thuscontributing to the development of our beautiful planet.
Sustainable Development Contribution Report
ProyaEnvironmental, Social& Governance (ESG) Report 2021
Building a Happy Workplace for EmployeesWe believe that employees are the cornerstone of the company’sdevelopment. Companies should share the achievements of businessdevelopment with their employees. We aim to build a "happy workplace",that is, a caring, harmonious, and joyful working environment whereemployees feel satisfied, respected, and recognized.
At Proya, life is more than just work. We want our employees to maintaina work-life balance so that they can be physically and mentally healthy.Therefore, we encourage our employees to engage in various culturaland sports activities.We have built an employee lounge with facilities such as ping-pongtables and fitness areas. We have also helped employees set up clubs,such as a basketball club, a music club, an outdoor activity club, etc. Weprovide an average of RMB1,200-1,500/year for each club and organizeregular competitions to bring a colorful working life to our employees.
A colorful workplace
Club activities
In August 2021, Proya organized the "Star Presenter" competition. We invited special guests and professional stand-up comedians to support the event. Employees created their own stand-up comedy pieces or other language piecesto compete with each other. After a comprehensive assessment of online voting and expert ratings, eight "starpresenters" were finally selected.In November 2021, Proya organized the "Star Singer" competition. After preliminary and secondary selections, agroup of participants was selected to perform in the final round at a professional recording studio. The "star singers"performed enthusiastically throughout the competition and received continuous attention and "likes". They gave awonderful live performance at the Company's 18th anniversary celebration.
At the beginning of 2021, COVID-19 was still raging. The Company conducted Chinese New Year activities to helpemployees return home early to enjoy time with their families. Other employees who could not go home celebratedthe Chinese New Year with the Company."Star" activities let the stars in the workplace shine
Enjoying reunion time during the heart-warming Chinese New Year - Chinese New Year activities
Badminton clubFloral art clubSwimming club
Star Presenter awards
Every employee is a member of the Proya family. We sincerely care about their lives. When our employees encounter difficultiesin their lives, we do our best to help them. We celebrate holidays and share the joy with our employees, providing them a homeyatmosphere.A caring workplace
In accordance with pandemic prevention requirements, people were required to have a negative PCR test resultwithin seven days before returning home during the Spring Festival. To make it easier for employees to complete theirPCR tests, the company union contacted a third-party PCR testing facility to provide testing services at the office.The Company paid for the on-site service and applied for a team rate for employees. In the end, 488 employeescompleted their PCR tests at the Company.
Activity I: COVID-19 PCR testing for a healthy return home
Smoothcommunication
Colorful lifeThoughtfulcare
A happyworkplace
Many employees were unable to go back to theirhometowns. Having learned of this situation, the companyunion organized a New Year's Eve group dinner for theemployees remaining in Hangzhou and distributed NewYear gifts, creating a heart-warming atmosphere for them.
In February 2021, the Proya union invited more than a dozenartists from the Qingteng Art Center to write Chinese NewYear couplets for employees as well as stickers featuringthe Chinese character“Fu”, which means happiness,blessing, and good fortune. Filled with the spirit of the NewYear holiday, the event attracted enthusiastic employeeparticipation. More than 1,200 sets of spring couplets and Fucharacter stickers were given away.
Activity II: Staying in Hangzhou for New Year'sEve dinner
Activity III: Sending Chinese New Year wishes
Sustainable Development Contribution Report
ProyaEnvironmental, Social& Governance (ESG) Report 2021
We prepare gifts for our employees on important holidays and carry out various holiday activities to allow ouremployees to experience holiday joy after work.
To provide convenient dining for employees, Proya has built a company canteen by bringing in external suppliers.In 2021, the Administrative Department noticed a decline in the number of employees dining in the canteen. It alsofound through regular touchpoint surveys that the canteen received several complaints from employees. Canteenservice quality has a significant impact on employees’well-being. After receiving feedbacks, the AdministrativeDepartment carried out actions to improve the canteen service.
Various festivals were celebrated throughout the year
Promptly responding to the employee need for improving canteen services
At Proya, we respect the opinions of our employees and maintain open lines of communication to build a satisfying workingenvironment. On the one hand, we keep abreast of our employees' needs through regular satisfaction and touchpoint surveys tocontinuously improve their work experience. On the other hand, we work with our employees to make decisions that are truly well-received by them, including those regarding the welfare system and employee activities.In addition, we focus on diminishing the concept of hierarchy among employees in order to build an equitable workplaceenvironment. In 2021, we launched a campaign to encourage all employees to register and use nicknames instead of their job titles.The use of nicknames in daily communication weakens the hierarchical barrier and facilitates a better exchange of thoughts andideas between employees.
I am the "master" of my workplace
In addition, we established a regular canteen inspection mechanism to check the canteen performance on a weeklyand quarterly basis, thus motivating the canteen to continuously improve its service quality. After six monthsin practice, the canteen saw a 17% increase in turnover and a significant increase in dining rates and employeesatisfaction.
ProblemSolution
Poor complaint channels andsluggish feedback responseMonotonous dishes
We introduced a monthly menu update policy to satisfy ouremployees.We introduced a“daily specials”policy and required the canteen toincrease the volume of food available.Unreasonable food prices and aninadequate supply of food
We split the canteen operation and maintenance functions and madethe Company responsible for canteen supervision.We established feedback channels such as employee WeChat groups,suggestion boxes, and public notice boards.
Spring FestivalWe distributed goods for useduring the Spring Festival.
International Women's Day
We distributed roses andcustomized gifts to female
employees.
Lantern Festival
We conducted activities suchas solving lantern riddles andeating Yuan Xiao (glutinousrice dumplings).
Mother's Day
We distributed holiday gifts.
Father's DayWe conducted an activitycalled "Adding color to dad",and set up a wall with many"father-themed" cartoondrawings for employees tocolor in.
Dragon Boat Festival
We conducted festive activitiessuch as solving holiday-themedjigsaw puzzles and buildingdragon boats with Lego blocks.
Chinese Valentine's Day
We distributed holiday gifts.
Mid-Autumn FestivalWe carried out many activities,such as ring toss, sugar-figureblowing, balloon blowing,moon lantern making, etc., anddistributed holiday bonuses toour employees.
Laba Festival
We cooked Laba congeewith our employees.
Christmas
"Santa Claus" handed out gifts.
The employee canteen may seem insignificant when compared with countless other business operations and is therefore oftenneglected. But for Proya, everything related to the employee experience is important and deserves to be done as well as it can be.We conduct questionnaires on the employee experience and internal service satisfaction in accordance with our biannual touchpointsurvey system. This helps us to understand how the Company is doing and what our employees really think.During the reporting period, Proya:
Conducted employeesatisfaction and touchpointsurveys
Collected pieces ofemployee feedback
Conductedimprovementactions
13240
Sustainable Development Contribution Report
ProyaEnvironmental, Social& Governance (ESG) Report 2021
We believe that in the age of connectivity, no one is an island. We insist on expressing our views on social issues such as genderequality, mental health, and the new generation in the workplace. We share the social value of "beauty" and promote the values ofmutual support, equality, and independence. We share happiness and tears with the world to help more people live a better life.
Women are Proya's most important customers. We have a long-standing commitment to women's causes and call for worldwidegender equality. We have found that many people make judgments based on gender in their daily lives. It is as if the word "feminine"has become a pejorative term, and a whole set of gender biases have developed along with it. In fact, gender bias not only limitswomen, but also men. Gender stereotypes have become a serious obstacle to gender equality.To address the above issues, Proya andChina Women's Daily launched the "Gender doesn’t divide us, prejudice does!" campaignon Women's Day 2021. As of March 16, 2021, the campaign video had been played more than
million times. In addition, thecampaign topic had been read
million times and discussed more than103,000times on the Weibo trend topic page,triggering widespread social resonance.
Gender does not divide us, prejudice does!
We publisheda full-pagearticle (“GenderDoesn’t DivideUs, PrejudiceDoes!”) on theback page of anissue ofChinaWomen's Daily -
We released a promotional video incollaboration with singer Yu Zhen to fightgender bias, highlighting the expression ofattitudes.
We launched the #Gender doesn’t divide us,prejudice does!# Weibo topic discussion, andengaged key opinion leaders from multiple fields todiscuss gender issues in depth.
We invited a risingillustrator to designour gift box, andthe T-shirt in thebox was speciallydesigned to looklike a "blankpage". We invitedconsumers totalk about the"gender bias" theyencountered in theirlives to pass on theidea of "fightinggender bias".
We wantto promotethe value of
"beauty"
Promoting society-widegender equalityGender does not divideus, prejudice does!
Caring about the mentalhealth of young people
Sincerely supporting the
new generation in theworkplaceNo feeling is unjustifiedor wrong and no painshould be belittled: Don’tbe ashamed of your
feelings.
Growing throughadversity and struggle.Discover a bigger worldand a better you whileyou are young.
Brand Power Promotes Society
Sustainable Development Contribution Report
ProyaEnvironmental, Social& Governance (ESG) Report 2021
Publicly-available information shows that mental health issues affect nearly one billion people worldwide each year. However,Chinese people have little knowledge about mental health. Misconceptions about mental health issues are one of the reasons whyemotionally unhealthy groups are slipping further into the "tragic abyss".Proya is concerned about the emotional difficulties faced by youth today and wants to provide them with care and strength byviewing them as equals in society. In 2021, Proya launched the Echo Project to focus on mental health. We proposed that "no feelingis unjustified or wrong and no pain should be belittled".
The Echo Project: Don’t be ashamed of your feelings
?We launched the Echo Project withChina Youth Dailyandxinli001.com. Specific activities included the following:
- We launched a TV commercial under the theme "Don’t beashamed of your feelings".- We customized a youth mental health care handbook forthe Echo Project -The Incomplete Guide to EmotionalHealing.
?We collaborated with psychologists to provide professionalperspectives. We invited psychologists Li Songwei and ZhangChun to write articles on the topic #Don’t be ashamed of yourfeelings#, calling for more attention to the mental health ofyouth in today's society.
?We released the first video focusing on youth mental healthin China as well as an in-depth content documentary series.
?We established a mental health charity fund and a "spiritualresting place" under the Echo Project in collaboration withthe China Youth Foundation. We conducted home-schoolspiritual growth activities to implement the Echo Project inspecific campus scenarios.
?We collaborated with xinli001.com and invited Dr. Xu Kaiwen,a clinical psychologist, to co-host an open online class onmental health.
?We distributed more than 60,000 copies of the youth mentalhealth care handbook at more than 60 universities in China.In addition, we distributed 100,000 copies with the EchoProject gift box to raise awareness of mental health amongyoung students.
?We opened the application for the youth mental health carehandbook to the public. More than a dozen universities,organizations, and social work groups volunteered toparticipate in this application process to reach out to morepeople and give them support.
ConceptsActions
Echo Project concept promotion materialsHandbook application information
Following the brand concept of“discovering more while you’re young”, Proya pays constant attention to the lifestyle and stories ofGeneration Z
. In 2021, the first group of Gen Z-ers entered the workplace. In the first year after graduation, they have to learn toface society, life, and the future independently. They are easily confused and often unable to find a someone to talk with.We understand young graduates should be given more attention and supports. Therefore, we reached out to younger generationand became a friend who always listens to them, comforts them, and stands with them. We embraced the unknown future with them.As the year 2021 began, Proya launched the "Dealing with a New World in the First Year after Graduation" campaign in an effort tosend the following message to the new generation in the workplace:
Dealing with a new world in the first year after graduation
Grow through adversity and struggle. Discover a bigger world and a betteryou while you’re young. The world might be different from what it seems tobe, however, it is the assignment of life that every graduate should complete.
?We collected 82 user stories, made each storyan unique poster, and consolidated them into a"memorial album".
?We held a super-long illustration exhibition inChongqing's Hongtudi Station, the deepest subwaystation in China. 82 illustrations were exhibited tovividly reflect the emotions of young graduates.
?We produced the promotional video -The First Yearafter Graduation.
?Young graduates face many challenges, with careerdifficulties being the most likely to come to theirattention. After all, they can turn to their family andfriends for help to solve their difficulties in life, but mostof them can only resolve their career difficulties on their own.
?Together with Maimai, a Chinese workplace socialplatform, we releasedA Guide to Thriving in theWorkplace in the First Year after Graduation.Authoritative survey data was used to help youngpeople gain a broader understanding of the overallworkplace situation, and thus draw career developmentadvice from common experience. This provides realworkplace solutions.
Listening and empathizingCompany and support
1. Generation Z refers to those who were born between 1995-2009.
Sustainable Development Contribution Report
ProyaEnvironmental, Social& Governance (ESG) Report 2021
The sustainability of our planet is of great concernto everyone and requires the efforts of all membersof society. We want to create more and betterenvironmentally- and socially-friendly products throughoutthe entire process from R&D, procurement, andproduction to use and disposal. We aim to support globalsustainability by encouraging more people to recognize,understand, and participate in a sustainable lifestyle.
?Advocate an environmentally-friendly lifestyle
?Encourage the optimization ofproduction
?Jointly build a greenindustrial chain
?Create sustainable products?Convey the idea ofsustainable consumption
EmployeesSuppliers
ConsumersProducts
It is not easy to create truly sustainable products. This is not only because of the high cost of using eco-friendly materials, but also becauseit is often difficult to locate and procure them. At Proya, we have established a sustainable product model that covers the entire productlifecycle. We are continuously working to achieve this goal.
We have been working hard to reduce plastic consumption in our productpackaging. In 2021, we replaced some of the plastic used in packaging forproducts such as the anti-glycation and antioxidant PROYA Elastic BrighteningYouth Essence (30ml) and the anti-wrinkle PROYA Deep Sea Energy Essence(30ml) with metallic aluminum. The use of plastic in the packaging of theseproducts therefore has been reduced by more than52%.The improved packaging for these two products alone reduced plasticconsumption by approximately
127.6
tons during the reporting period.
Product sets sold on e-commerce platforms were packaged using plasticsealing bags. To reduce plastic consumption, the factory logistics departmentstudied how to improve the packaging process. The logistics department andthe equipment supplier jointly developed an automatic packaging machine,replacing the traditional plastic sealing bag with a POF eco-friendly shrink film.The design was used in over
million Proya product sets during the reportingperiod.
When transporting cosmetics in cold areas in winter, they must be thermallypackaged. Cosmetics used to be put into foam boxes to keep them insulated.These foam boxes, however, are not recyclable and can cause plastic pollution.Therefore, we have replaced the traditional foam boxes with new reusable andbiodegradable nano-tech insulated boxes.As of the end of the reporting period, a total of7,369new nano-techinsulated boxes were used, replacing14,738 traditional insulated boxes.
Creating sustainable products: A journey of a thousand miles begins with a single step.
Sustainable rawmaterials
?Use naturaland safe rawmaterials
?Use RSPOcertified palmoil
?Focus oncompliance withR&D ethics
?Focus onchemical safety
?Reduceenergyconsumption
?Reduceemissions
?Reduce plasticconsumption anduse eco-friendlymaterials
?Reduce packagingmaterialconsumption andensure no over-packaging
?Recycle andreuse packagingmaterials
?Optimizeroutes andloads toreducecarbonemissions
?Reduceresourceconsumption inproduct use
?Recyclepackagingmaterials
◎Our sustainable product model
Upgrading packaging to reduce plastic consumption
Replacing plastic sealing bags with eco-friendly shrink films
Replacing foam boxes with new eco-friendly nano-tech insulated boxes
产品示例
A product set featuringimproved packaging
New nano-tech
insulated box
Working Together toProtect Our BeautifulPlanet
Using sustainable packaging as an example, we have conducted various useful explorations into using eco-friendlymaterials and reducing plastic and packaging material consumption.Exploring sustainable packaging
SustainableR&D
Sustainableproduction
Sustainablepackaging
Use anddisposalSustainable warehousingand logistics
Sustainable Development Contribution Report
ProyaEnvironmental, Social& Governance (ESG) Report 2021
“You can walk more quickly on your own, but you can go further with others.”On the road to sustainable development, we alwayswalk side by side with our stakeholders. We promote the concept of sustainability and lead a sustainable lifestyle by using our energyvoices heard. Together with our partners, we will build a strong line of defense to protect our planet.
Sustainable development is an important part ofthe Proya spirit. Proya's corporate culture manual,Proya 32, clearly puts forward the concept ofvaluing resource conservation and advocatingenvironmental awareness. We promote the conceptof sustainable development throughout our dailyoperations.In addition, it is the consensus of all employeesto pay attention to the environmental impact ofeach manufacturing or operational process and tospare no effort in reducing it. All of our employeesare encouraged to offer suggestions regardingenvironmental protection. Even a minor procedurecan be optimized and improved.
At Proya, many environmental initiatives begin with an employee or a departmental effort. After achieving progress,these initiatives are gradually rolled out company-wide. We believe that when individual contributions are combined,it creates an important force in reducing environmental impact and creating a beautiful planet.
We have joined with our suppliers in focusing on sustainable production. We work together on innovative andsustainable production processes.
In guiding consumers towards sustainable consumption, we have incorporated our environmental philosophy into ourproduct and packaging design to pass it on to our consumers. Several of our product packaging designs encourage ourconsumers to reuse packing boxes. We have designed the metal outer boxes of our product sets to be reusable boxes thatcan store jewelry and other small objects. We also printed small games on the inside of Proya's Tmall gift boxes.
In 2021, we discussed with our suppliers the high energy consumption used in the production of glass cosmeticbottles. We then launched several energy-saving and consumption-reducing measures, including the following:
We have worked with our packaging container suppliers to evaluate and improve our production processes in orderto reduce water and electricity consumption.
?We closed the sandblasting plant, which discharged large amounts of acidic wastewater and replaced it with amore eco-friendly coating process.
?We replaced the heavy oil and air combustion process with a natural gas and oxygen combustion process oradopted electric heating to replace traditional fossil energy sources in order to reduce harmful emissions.
?We recycled waste heat from the kiln. Waste heat can be converted into cool air for the workshop and office insummer and into daily heating and hot water use in winter.
Proya Ultimate Repairing Essence
Promotion of environmental awareness in factories
Recognition of employee suggestions
Customized Proya Tmall gift box
Working with partners: Leading a sustainable lifestyle
Employees: Sustainable operations
Suppliers: Sustainable production
Consumers: Sustainable consumption
Reducing energy consumption in glass production
Improving processes to reduce resource consumption
ProyaEnvironmental, Social& Governance (ESG) Report 2021
ESG ManagementPractice Report
As important members of society, corporations have manystakeholders in their chain of operations. Fulfilling ourresponsibilities to our stakeholders is particularly importantfor solid business operations. As we aim to become
A World-class Cosmetics Enterprise,we should continue to strengthen our ESG management inorder to build a solid foundation for our long-term growth.
ProyaEnvironmental, Social& Governance (ESG) Report 2021
关注议题沟通与回应利益相关方
The Company has established a company-wide ESG structure to ensure the efficient ESG tasks. The Corporate Strategy Committeetakes the overall lead and formulates relevant strategic planning. Its ESG Management Committee is responsible for managing majorESG projects and for their performance evaluations and will report regularly to the Board of Directors. The ESG ImplementationTeam is composed of functional units to ensure overall planning and collaboration as well as smooth communication betweenthe upper and lower levels. In 2022, we will develop ESG strategic plans to further strengthen our integrated ESG managementcapabilities.
The support and trust of our stakeholders is vital to Proya. When carrying out and promoting ESG management tasks, Proyafocuses on the demands of stakeholders and actively communicates with them using multiple channels. We respond to stakeholderexpectations and demands by conducting responsible practices. We strive to achieve win-win cooperation among all parties,including shareholders, employees, and society.Environmental, Social, and Governance System
◎ESG management structure
◎Key stakeholders and communication channels
Board of Directors
StakeholdersIssues
Communication andresponse
Strategy Committee
ESG Management
CommitteeESG Implementation
Team
ESG Decision MakersESG ManagersESG Compliance
ESG Management CommitteeESG Implementation Team
The ESG Management Committee is an independentdepartment under the Strategic Committee and iscomposed of senior management members from theOffice of the General Manager, including the GeneralManager. The department manages environmental,social, and governance (ESG) issues and prevents ESGrisks. It also reports regularly to the Strategy Committeeand to the board of directors on ESG work progress.
The Board Secretary leads the ESG ImplementationTeam, with the relevant department heads being teammembers. The team coordinates business modules underthe direction of the team leader and reports to the ESGManagement Committee on ESG issues. It also providesinformation for decision-making and work guidance tobusiness modules in order to support the execution ofESG strategies and decisions.
Government and regulatory agencies(The National Medical ProductsAdministration, local governments, et al)
?Corporate governance
?Risk and compliance
?Hazardous emissions and waste
?Websiteannouncements
?Governmentinspections
?Exchanges and visitsInvestors and shareholders(investors who have equity and debtinvestments in Proya)
?Corporate governance
?Economic performance
?Science and technology innovation
?Shareholder meeting
?Financial reportrelease
?Seminars, interviews,etc.Consumers
?Product and service quality
?Responsible marketing and consumereducation
?Chemical safety and ingredienttransparency
?Field visits
?After-sales service
Employees
?Employee rights and benefits
?Employee training and development
?Occupational health and safety
?Employee unioninteractions
?Employee training
?Employee handbook
?Interviews, etc.Partners(industry associations, suppliers, distributors,
etc.)
?Responsible sourcing
?Product and service quality
?Industry development promotion
?Supplier training
?Distributor conference
?Technical exchanges
?Conferences
?Field inspections
Communities and the public(communities around sites of operation, public
welfare organizations, etc.)
?Public welfare
?Science and technology innovation
?Industry development promotion
?Climate change mitigation and adaptation
?Product carbon footprint
?Employee volunteeractivities
?Community activities
?Public donations
ESG management structure
Stakeholder communication
R&D Innovation Center
International Academy ofSciences
Production BaseProcurement DepartmentLogistics DepartmentStrategy & Brand Center
Brand DivisionsE-commerce Business Center
Office of the Board ofDirectors
Strategic ManagementDepartment
Human Resource Department
Corporate CultureDepartment
Information ManagementDepartment
Internal Audit DepartmentLegal DepartmentFinance Department
Administrative Department
ProyaEnvironmental, Social& Governance (ESG) Report 2021
Proya identifies substantive issues through regular communication with internal and external stakeholders and in accordance with the"substantive issue" principle set forth in the GRIStandards for Sustainability Reporting(Global Reporting Initiative). When identifyingsubstantive issues, we follow Chinese and international standards and industry policies and consider stakeholder priorities andexpectations. We identify highly substantive ESG issues and prioritize them for corporate management and reporting disclosure, therebycontinuously improving the value of the report.
We identified andsummarized 20 issuesrelevant to our companybased on industrypolicy analysis and peerbenchmarking. We alsofollowed Chinese andinternational standards andpolicies in this process.
High
HighLowImportance of Economic,Environmental,and Social Impact
Impact on Stakeholder Assessment and Decision Making
Environmental IssuesSocial IssuesCorporate Governance IssuesProtecting the rightsand interests ofshareholders
Corporate governance
Science and technology innovation
Product and servicequalityChemical safety and ingredienttransparency
Green packagingRights and interests ofemployeesResponsiblemarketingand consumereducation
Business ethicsRisk and complianceKnowledge product managementHazardous emissions and wasteWater management
Contributing to industrialdevelopmentResponsible procurement
Employee trainingand development
Mitigation of and adaptationto climate changeCarbon footprint ofproductsOccupational health and safetyThe public interest
Topics of Moderate ImportanceTopics of High Importance
Identification of Substantive Issues
◎Substantive issue identification process
◎Materiality matrix
◎Issue definition and update description
◎Definition of highly substantive issues
Update typeUpdate summaryNotesAddition
We added the following six new issues: Responsible marketing andconsumer education, chemical safety and ingredient transparency,water-use management, green packaging, product carbon footprint,and occupational health and safety.
We added the new issuesbased on policy analysis andpeer benchmarking.
Consolidation
We consolidated the following original ten issues into five.Original issues: High-quality products, high-quality service, employeerights, democratic management, greenhouse gas emissions, efficientenergy use, waste disposal, air emissions management, disclosure ofinformation, and investor relations.Consolidated issues: Product and service quality, employee rights andbenefits, climate change mitigation and adaptation, harmful emissionsand waste, and protection of the rights and interests of shareholders.
We consolidated issueswith similar meanings.
Presentation update
We updated the presentation of the following five issues. Employeetraining and development, community welfare, responsible sourcing,business ethics, and intellectual property management.
We updated the presentationof the issues to align withthe reality of corporatemanagement.
Substantive issueDefinition
Responsiblemarketingand consumereducation
The Company provides factual and complete product information (product logos, etc.) when conductingmarketing activities. The Company promotes products using credible, standardized, and transparentchannels and methods. The Company encourages sustainable consumption by promoting package recyclingand informing consumers about the environmental features of company products through product logos.Chemical safetyand ingredienttransparency
The Company reduces chemical hazards by eliminating or reducing the use of hazardous and controversialchemicals and developing alternative products. The Company endeavors to become more transparent toconsumers about our product ingredients. This allows our consumers to easily access information about ourchemical use and its hazards.Green packaging
The Company reduces the environmental impact of product packaging by simplifying and recycling productpackaging and improving packaging materials.Product andservice quality
The Company guarantees product quality, provides excellent customer-oriented service, ensures efficientcomplaint handling, and protects consumer privacy.Employee rights
and benefits
The Company protects the civil, political, economic, social, and cultural rights of employees in the areas ofhiring and termination, compensation, working hours, and employee communication. The Company alsoimproves employee well-being through diverse employee-care activities.Science andtechnologyinnovation
The Company ensures successful product R&D and innovation and provides healthier products.
Preliminary issueidentification
We conducted a two-dimensional evaluationof the importance of thesubstantive issues byconsidering the opinionsof internal and externalexperts.
Based on a two-dimensional evaluation,the Board of Directorsreviewed the reportmateriality forcompleteness andaccuracy. A materialitymatrix was then finalized.
Stakeholdercommunication
Overall resultanalysis
ProyaEnvironmental, Social& Governance (ESG) Report 2021
Proya strictly complies with environmental laws and regulations, including the Environmental Protection Law of the People'sRepublic of China, the Prevention and Control of Environmental Pollution by Solid Waste of the People's Republic of China, theRegulations on the Management of Hazardous Chemicals, and the Law of the People's Republic of China on Energy Conservation.The Company follows an environmental management policy to save energy, reduce consumption and emissions, and to increaseefficiency. We continuously strengthen our environmental risk management to ensure that our production and operations complywith relevant laws, regulations, and standards. We have established management documentation covering all environmental impactfactors. Additionally, we implement various management policies in our production and operations to ensure effective control ofenvironment-related risks.During the reporting period, the Company obtained ISO14001:2015 Environmental Management System certification (valid untilFebruary 14, 2025). The Company's resource use had no significant impact on the environment. During this period, the Companypaid environmental protection taxes and fees in full and there were no violations of environmental protection laws or regulations.An analysis of the impact of the Company's production and operation processes on the environment is shown in the table below.
Proya closely follows the global climate change situation. On September 22, 2020, China announced that it would scale up itsIntended Nationally-Determined Contributions by adopting more vigorous policies and measures in an effort to achieve carbonneutrality before 2060. In 2021, the Company established a climate change management system based on its governance structure,strategy development, risk management, and goal and performance setting. The Company structured this system based on therecommendations provided by the Task Force on Climate-related Financial Disclosures (TCFD) of the Financial Stability Board(FSB). We can identify climate change risks and opportunities through this system and then improve our management based on theoutcomes.
Environmental management system
Responding to climate change
◎Analysis of the environmental impact of each process
◎Climate change management system
?The Company has identified responding to climate change as an ESG issue. The Board of Directors supervises andmanages the Company's ESG issues, including climate change issues.
?Relevant functional and business departments integrate climate change management into their daily work priorities.
?The Company identifies the risks and opportunities that climate change presents to our business operations andincorporates them into our overall operational risk management.
?The Company identifies sources of greenhouse gas emissions throughout the product lifecycle and vigorouslymanages the product carbon footprint.
?The Company manages resource conservation and emission reduction.
?The Company has prepared emergency plans to deal with extreme weather conditions such as typhoons.
?The Company quantifies and discloses greenhouse gas emissions and emission intensity, and ensures that climatechange management performance is evaluated.
?We will set quantitative climate management objectives in 2022.
Governance
Strategy
Risk management
Performance
Environmental Responsibility
ProcessInputOutput
Production
Steam generation, paste making,and heating
?Energy: Natural gas
?Greenhouse gas
?Air emissions: VOCs, NOx, andsmoke.
?Wastewater: COD and NH3-N.
?General waste: Discarded productpackaging, expired products,discarded membranes and filters,sludge from sewage stations,domestic waste, and kitchen wastefrom canteens.
?Hazardous waste: Hazardousreagents from laboratories, wastemachine oil, waste ink, etc.
Air conditioning and refrigeration,production power, and lighting
?Energy: OutsourcedelectricityProduct ingredient water, processmedia, and cleaning
?Water: Municipal watersupplyProduct packaging?Packaging materials
Logistics
?Transport packagingmaterials
?Energy: Gasoline anddiesel consumed by freightvehicles.
?Greenhouse gas
?Non-hazardous waste: Discardedpackaging
Office operations
?Energy: Outsourcedelectricity and gasolineconsumed by company-owned vehicles
?Water: Municipal watersupply
?Wastewater: Domestic wastewater
?Non-hazardous waste: Domesticwaste
ProyaEnvironmental, Social& Governance (ESG) Report 2021
Our greenhouse gas emissions are generated throughout the product lifecycle with a small percentage arising from officeoperations. We identify greenhouse gas sources throughout the product lifecycle and then progressively conduct product carbonfootprint management tasks.
Proya is committed to reducing greenhouse gas emissions throughout the product lifecycle. We are already taking effectivemeasures to reduce the carbon footprint of our products for the production and logistics processes in which we are directly involved.We will strive to extend our carbon footprint reduction to the entire product lifecycle.The Company continues to promote low-carbon, environmental and green efforts in product manufacturing. Through technologicalinnovation and the acquisition of high-efficiency and energy-efficient emulsifying equipment, the Company can apply improvedmethods, such as jacketed hot water recycling, to improve energy efficiency.
In our logistics and warehousing, Proya has established five sub-warehouses across China according to the proportion of ordersreceived from online channel in each province. This warehousing strategy improves transportation efficiency and reduces carbonemissions generated during transportation.
Identifying sources of greenhouse gas emissionsReducing greenhouse gas emissions
◎Identification of sources of greenhouse gas emissions throughout the product lifecycle (product carbon footprint)
◎Key energy saving measures in 2021 and their outcomes
◎Greenhouse gas emission performance
Product lifecycleMajor energy consumptionMajor greenhouse gas sources
Procurement ofraw material
?Energy consumed in the productionand transportation of raw materials
?Scope 3 emissions
Production
?Electricity
?Natural gas
?Gasoline and diesel consumed bycompany-owned vehicles
?Scope 2 emissions from theconsumption of electricity
?Scope 1 emissions from theconsumption of natural gas, gasoline,and diesel fuel consumed by company-owned vehicles
Logistics andwarehousing
?Electricity, gasoline and dieselconsumed by freight vehicles
?Electricity consumed by company-owned warehouses is Scope 2 emission
?Energy consumed by leased warehousesand trucks is Scope 3 emission
Product usage
?Energy consumed by water utilitiesduring product usage
?Scope 3 emission
Product disposal
?Energy consumed for wasterecycling and disposal
?Scope 3 emission
TypeMeasureOutcome
Clean energyreplacement
Installation of a solar photovoltaic systemWe installed a 2 MVA photovoltaic power storage system on the roof of our25,000 m? factory warehouse. The generated power is prioritized for our ownuse, and the surplus can be supplied to the national grid.
During the reportingperiod, this photovoltaicpower generation systemgenerated 1,796,000 kWhof electricity.Wind-powered fans in the warehouseWe replaced electric fans with 1,500 wind-powered fans in our warehouse airconditioning system. The wind-powered fans use wind energy and thereforedo not produce carbon emissions.
During the reportingperiod, we reduced ourelectricity consumptionby approximately 360,000kWh.Energy useefficiencyimprovement
Intelligent electronic factory scheduling systemWe manage our factory operations digitally using a fully-automatedstereoscopic warehouse model. We use an intelligent electronic schedulingsystem to optimize equipment operation, vehicle dispatch, cargo loading, etc.in order to reduce energy consumption.
——Reactive power compensation devicesWe invested approximately RMB100,000 in power distribution facilities toupgrade the reactive power compensation devices. This will improve thepower supply environment and efficiency.
——
Greenhouse gas emissions (tCO2e) in the past three years
Greenhouse gas emissions per RMB10,000 of revenue in
the past three years (kgCO2e/RMB10,000)
2019
6,895
8,216
8,427
202020212019
22.07
21.90
18.19
20202021
ProyaEnvironmental, Social& Governance (ESG) Report 2021
In terms of the use of water resources, we continue to improve the recycling rate of water resources and have established a"reclaimed water recycling system", which recycles the water outflow from the production process and uses it for toilet flushing,plant watering, and other peripheral rinsing. During the reporting period, Proya witnessed a volume of recycled water of 15,000m?,with an increase of 8.7% year on year.
Resource conservation
◎Some suggestions for improvement from employees adopted in 2021
◎Performance of water resource conservation
SuggestionEffectImprovement locating the marking cam in the tail-foldingmachine
Reduction of the occurrence of defective products caused byskewed hosesAddition of a rejection induction device on the cartoningmachine of a product
Reduction of the occurrence of defective productsImprovement of the template in the finished product inspectionreport system
Reduction of A4 paper usageImprovement of the height limit rod of the plastic-envelopmachine
Reduction of maintenance frequency and saving of materials
The resources we use during production and operations are mainly raw materials and water resources. Water resources derive mainlyfrom the municipal water supply, and the water source has no significant impact on the environment.We implement excellent performance and lean management, and encourage employees to put forward improvement suggestionsat any time during production, so as to reduce the scrap rate and improve the use efficiency of raw materials. We collect suggestionsfor improvement from employees and regularly recognize them.
We consume a remarkable amount of packaging materials, which is an indispensable part of daily chemical products. However,disposable cartons used in conventional packaging mean a lot of wood consumption, and the hard-to-degrade plastic places ahuge burden on the ecological environment. In order to reduce the environmental impact of packaging, we actively facilitate greenpackaging projects.In 2021, we established a green packaging working group consisting of the Planning Department, the Product DevelopmentDepartment, the Production Department, the Procurement Department, and the Logistics Department. Relying on the outstandingpractices of diverse departments, the working group will further expand the application scope of green packaging in the company,seek more green packaging solutions based on existing practices, and build a comprehensive and complete green packagingmanagement system.
Conservation of raw materials and water
Green packaging
◎Structure of the green packaging working group
◎Key actions for green packaging in 2021
Green packaging working groupProcurementDepartment
Product DevelopmentDepartment
PlanningDepartment
ProductionDepartment
LogisticsDepartment
CategoryActionResult
Usedenvironmentally-friendly materials
?Upgraded ordinary cartons to zipper cartons toreduce the use of plastic tape
?Designed a snap-on device on recyclable cartonboxes to reduce the use of plastic tape
?During the reporting period, the use of tapewas reduced by nearly 180,000 rolls
?Replaced traditional plastic ziplock bags withenvironmentally-friendly shrink film
?During the reporting period, shrink film wasused in more than 2 million sets of Proyaproducts
Reduced packagingusage
?Replaced a portion of plastics in the productpackaging of Elastic Brightening Youth Essence30ml and Ruby Serum Essence 30ml with metalaluminum
?A maximum of 52% of plastics in productpackaging were replaced
?During the reporting period, the use ofplastics was reduced by about 127.6 tons
?Reduced the number of medium packaging boxesand used large-capacity outer cartons
?During the reporting period, the total numberof medium boxes used was reduced byabout 3,948,400 throughout the year, with anestimated saving of 237 tons of base paper.
?The Huzhou Production Base (skincare factory)purchased a total of 307 stainless steel storagetanks to store paste after going through CIPdisinfection in lieu of plastic barrels and plasticbags, thus reducing packaging waste
?A total of 115,000 plastic bags with a size of1,400cm*900cm were saved in a year, andsolid waste generation was reduced by 61,329kilograms.
Recycling
?Replaced disposable cartons with biodegradablerecyclable boxes in e-commerce channels andintralogistics
?As of the end of the reporting period, a totalof 46,000 biodegradable recyclable boxeshad been put into use, and the usage ofcartons had been reduced by about 46,000pieces
?Replaced traditional incubators with a new kind ofenvironmentally friendly nano-incubator, of whichthe materials can be degraded
?As of the end of the reporting period, this newnano-incubator had been used 7,369 times toreplace traditional incubators that would havebeen used 14,738 times
?Recycled glass bottles discarded by the factoryduring production to boost recycling
——
Volume of recycled water in the past three years (cubic meters)
2019
13,000
13,800
15,000
20202021
ProyaEnvironmental, Social& Governance (ESG) Report 2021
◎Performance of packaging managementProportion of the purchase price of various
packaging materials in 2021
Proportion of the purchase quantity of various
packaging materials in 2021
4%
27%
20%49%
GlassPlasticsPaperOthersGlassPlasticsPaperOthers
Usage of packaging materials used per RMB10,000of revenue in the past three years (kg/RMB10,000)
2019
17.66
17.40
13.08
20202021
We support employees to practice the concept of environmental protection in the little things around us, and to implement a greenoffice. In 2021, we proposed a goal of reducing per capita water and electricity consumption by 5%, and took various measures topromote energy conservation and consumption reduction.
Green Office
◎Green office actions
Apply intelligentpower-saving controlson air conditionersand other equipments
Adopt new LED lightsto reduce equipmentdowntime and energyconsumption
Encourage employees todevelop daily habits suchas turning off lights, turningoff faucets, and poweringoff instead of standby
◎Performance of green officeElectricity consumption per capita in the office (kWh/person)Water consumption per capita in the office (m
/person)2,629.40
2,027.69
20202021
28.15
23.60
20202021
Note: The office power consumption data includes power consumption for office operations and shared office building areas.
23%13%18%
46%
ProyaEnvironmental, Social& Governance (ESG) Report 2021
Emissions Management
The waste-water we produce comes mainly from domestic sewage and production waste water and is discharged to landscape waterpools or to the outside through a consolidated water pipe after being treated by our sewage treatment station. We have establishedadministrative documentation such as the Sewage Treatment Management System, installed a Multi Vision COD online automaticmonitoring instrument, and monitored COD in treated water 24-hours a day to ensure class-A sewage discharge; we constructed asewage treatment system to make sure the treated sewage is highly evolved and recycled. During the reporting period, the HuzhouProduction Base (skincare factory) added an MBR membrane treatment system and invests RMB200,000 every year to replace themembrane device. The treated waste water reached the level-1 discharge standard
.The waste gas we produce comes mainly from boilers. We have established administrative documentation such as the BoilerManagement System. The Huzhou Production Base (skincare factory) has invested more than RMB600,000 to install a layered VOCtreatment device, mainly for collecting and treating waste gas from the front-end reactors, including the front-end collection pipenetwork, the back-end treatment equipment, the PLC electronic control system, and the entire project, so that the treated waste gasreaches the discharge standard.
Waste-water discharge and air emissions
We properly dispose of solid waste generated in production and operations. We apply macro-management of solid waste. Factoriesare registered in the National Solid Waste and Chemicals Management Information System Platform, we make pre-declaration forthe generation of hazardous waste each year, and hold public bidding on the production and hazardous waste treatment unit onthe platform. The platform also handles hazardous waste applications to enable data tracking and risk prevention throughout theprocess of solid waste treatment.
Solid waste
1. The national requirement for sewage discharge is level 3.1. The data were from the Huzhou Production Base (skin care factory); the data of makeup factory were not included.
◎Waste-water discharge and air emission standards & main control indicatorsCategoryCompliance with emission standards Main control indicators
Waste water
Integrated Waste Water Discharge Standard (GB8978-1996)
Five-day biochemical oxygen demand (BOD 5)300mg/LChemical oxygen demand (CODcr) 500mg/LSuspended matter 400mg/LAmmonia nitrogen 35MG/lAnimal and vegetable oil, etc. 100mg/L,
Waste gas
Integrated Emission Standard of Air Pollutants(GB16297-1996)Emission Standard of Air Pollutants for Boilers(GB13271-2014)
Nitrogen oxides 50mg/lim?Particulate matter 20mg/m?Sulphur dioxide 50mg/m?
◎Performance of solid waste discharge
◎Main measures and implementation standards for solid waste treatment
Discharge of general waste per RMB10,000 of
revenue (kg/RMB10,000)
Discharge of hazardous waste per RMB10,000
of revenue (kg/RMB10,000)
2019
1.79
1.57
1.30
20202021
CategoryPollutantMain treatment measureImplementation standard
General waste
Domestic waste, cartons,tape, film, paper, etc.
Collected and sold
Standard for PollutionControl on MunicipalSolid Waste IncinerationGB18485-2014Lined bags, expiredproducts, waste filtermembranes and filters,sewage sludge, domesticwaste, canteen swill
Handed over to a qualifiedagency for regular treatment
Hazardous waste
Hazardous reagents, wasteoil, waste ink in laboratories
Handed over to a qualifiedagency for regular treatment
General Standards forIdentification of HazardousWaste GB5058.7-2019
2019
0.0030
0.0035
0.0037
20202021
ProyaEnvironmental, Social& Governance (ESG) Report 2021
By adhering to a consumer-centric philosophy, Proya’s product research and development is rooted in skin science and deeplyintegrates the needs of consumers. We have set up a consumer investigative team within the company and are cooperating withwell-known external data analysis companies. We hold quantitative or qualitative research analysis for target populations andcombine that with analysis data and industry reports to comprehensively identify consumer demand and to incorporate it deeplyinto the research, development, and innovation of the company, thus providing consumers with safe, functional, and outstandingproducts that truly fit their needs.
We spare no effort in developing new products and introducing technological talents. Supported by the comprehensive R&D andinnovation layout, those efforts help us lead the industry in many aspects such as fundamental research, formula development,efficacy, and safety evaluation. The R&D Innovation Center is our engine for innovation, which has witnessed efficacy and technologybreakthroughs of many Proya products. After 18 years of preparation, the R&D Innovation Center has accumulated powerfultechnological capabilities and achievements.On the basis of the R&D Innovation Center, we founded the International Academy of Sciences in 2021, combining independentresearch and development with external cooperation, focusing on application-oriented fundamental research centered oninnovation, independent patents, and application value, specializing in the study of skin science and the development of active rawmaterials, and constantly seeking more efficient and better ingredients and raw materials.We value the establishment of an R&D team. By means of setting up a post-doctoral workstation and initiating a state-level talentintroduction program, we have built a professional R&D team. In addition, we bring together global scientific research capabilitiesto pursue innovative breakthroughs in ingredients and formulas by entering into strategic partnerships with research institutes athome and abroad while integrating industrial, academic, and research organizations. During the reporting period, our investment inresearch and development accounted for 3.55% of the parent company’s operating revenue.In addition, Proya participated in the development of national and industrial standards to promote the healthy and high-qualitydevelopment of China's cosmetics industry. During the reporting period, we participated in the development of one nationalstandard and two group standards.
Innovations in Research and Development
Product and Customer Responsibility
◎R&D innovation system
?Two innovation centers: The R&D Innovation Center and the International Academy of Sciences
?Comprehensive research capabilities: Covering all key stages from raw materials to finishedproducts, including: Fundamental research, formula development, physical and chemical analysis,raw material and product efficacy evaluation, etc.
?Professional R&D teams: We have high-caliber professional researchers in different disciplinessuch as skin science, biochemistry, life science, material science, medicine, industrial design,psychology, and statistics.
?Provincial postdoctoral workstation: The "Zhejiang Postdoctoral Workstation" was established
and officially licensed in 2018 to give full play to our advantages and to deepen cooperation.
?Introduction of state-level talents: We recruited one state-level talent who is now serving as asenior researcher of core technologies to help us effectively combine promising active ingredientswith different formulas and auxiliary technologies in order to greatly improve the absorption ofskincare products and to promote skin health.
?Talent incentives: We have established administrative systems such as thePatent ManagementMeasuresto strengthen incentives and rewards for R&D personnel, and to encourage them toengage in research and development.
Integration of industrial, academic, and research capabilities:
?We actively carry out cooperative projects among industrial, academic, and research organizations,and have established the Deep-ocean Microbial Resource Utilization and Active SubstanceDevelopment Technology Research Center with the Institute of Microbiology of the ChineseAcademy of Sciences. In addition, we have initiated research on "deep-ocean microbial resourceutilization and active substance development";
?We carried out themed research on the "design of functional nutrient ingredient carriers forcosmetics" with Zhejiang University of Technology;
?We cooperated with the School of International Cosmetics at the Shanghai University of Technologyin terms of talent training, scientific research, technological innovation, and technical consultation,et al.International strategic cooperation:
?We have established partnerships with BASF in Germany, LipoTrue (a Spanish family peptidecompany), Ashland (an American special materials expert), CODIF (a French marine biotechnologiesexpert), CEVA (the French national algae research institute), and other global technologicallaboratories.
Quantitative/qualitative researchanalysisandAnalysis data/report in
the industry
Identify consumer
needs
Product research,development, and
innovation
R&D innovationlayout
Talent teambuilding
Cooperativenetwork building
ProyaEnvironmental, Social& Governance (ESG) Report 2021
Highlights and recognition of research, development, and innovation in 2021
International safety standards for important chemicals we refer to
?Had a total of
scientific researchers, of which more than32%had a master's degree or above, and
1.89%
had a doctoral degree.
?Applied for
invention patents and was granted 19 invention patents;
?Had 3 new products whose core ingredients are exclusive to Proya;
?Published
papers in authoritative journals such as theJournal of Cosmetic Dermatologyat home and abroad;
?The paperMicro innovation of efficacy test - Research on human efficacy test method of pore/ blackhead improvingcosmetics won the "Excellent Paper Award (China)" at the IFSCC 2021;
?The project "Key Technology and Industrialized Application of Seaweed Polysaccharide Value-added Processing" wonsecond prize at the Zhejiang Science and Technology Progress Awards;
?The Research, Development, and Innovation Center won the title "Group for Outstanding Achievement in Drug SafetyGovernance and Technology Empowerment 2021";
?Proya Empowering Brightening and Wrinkle Firming Essence was rated an innovative consumer product by the ChinaAssociation of Fragrance, Flavoring, and Cosmetic Industries.
?LIST OF SUBSTANCES PROHIBITED IN COSMETIC PRODUCTS
?LIST OF SUBSTANCES WHICH COSMETIC PRODUCTS MUST NOT CONTAIN EXCEPT SUBJECT TO THERESTRICTIONS LAID DOWN
?LIST OF COLORANTS ALLOWED IN COSMETIC PRODUCTS
?LIST OF PRESERVATIVES ALLOWED IN COSMETIC PRODUCTS
?LIST OF UV FILTERS ALLOWED IN COSMETIC PRODUCTS
?
Types and Restrictions of Cosmetic Colorants
?
Cosmetics Benchmark - List of Prohibited and Restricted Substances
?Led or participated in the development of
national standards,
industry standards, and
group standards.
?Had been granted
patents, including
patents of invention.
During the reporting period, Proya:
European Commission
South Korea
Japan
As of the end of the reporting period, Proya had:
To better meet our consumers' pursuit of natural and organic products, we provide diversified options and continue to improvetheir green attributes by using green, natural, and organic raw materials as well as formulas that are upgraded and improved forall product families, such as: The Bowling Blue Bottle, a new product introduced in 2021 that uses natural oil as the main activeingredient. Meanwhile, it contains no irritating ingredients, fragrance-free alcohol, or traditional preservative.
During product research and development, we keep a constant eye on thechemical ingredients we use in order to make them safer. Proya strictly abidesby the requirements of laws and regulations such as theSafety and TechnicalStandards for Cosmeticsand theCatalogue of Already-Used Cosmetic RawMaterials (2021 Edition), and never uses any prohibited ingredients including,but not limited to, more than 2,000 ingredients banned by theCatalogue ofProhibited Cosmetic Raw Materialsand theCatalogue of Prohibited Plant (Animal)Raw Materials for Cosmetics, such as hydroquinone, phenol, retinoic acid and itssalts, glucocorticoids, antibiotics, etc.At the same time, the company employs standards that are stricter than Chinese lawsand regulations to regulate the selection of chemical ingredients. By referring to theingredients and dosages in the relevant standards of the European Union, SouthKorea, and Japan, we prohibit the use of controversial ingredients in the developmentprocess of new products. We put forward ingredient upgrade programs for originalformulas and gradually reduce and phase out controversial ingredients.
As of the end of the reporting period, we had had 86 products containing 47 raw materials certified by COSMOS and ECOCERT,such as: ProyaSunshine FeatherCareEssence Sunscreenthat uses the ECOCERT-certified whitening ingredient AA2G; Proya ElasticTranslucent Youth Eye Cream that uses the COSMOS-certified organic anti-aging ingredient HYALUFIX GL; TIMAGE Glaze PorcelainFlawless Liquid Foundation (101 Pear White ) that uses the COSMOS-certified organic emulsifier, etc.
Improving the natural and organic properties of products
Chemical safety
Selection of raw materialsUse of organic raw materialsImprovements and upgradesIncorporate green sustainability into rawmaterial screening criteria
In addition, raw material screening indicatorsfor safety and efficacy such as active ingredientconcentration, irritant dimension, etc. We alsoinclude production sustainability in screeningand we value the environmental friendliness ofraw materials.Use more natural and organic raw materials innew product developmentAccording to ISO16128 Technical Definitionsand Criteria for Natural and Organic CosmeticIngredients and Products, new productscontain more natural ingredients to enhancetheir environmental friendliness.
Use certified organicingredientsOur products contain third-party-certified raw materials,such as raw materialsapproved and recognized byCOSMOS and ECOCERT.
Continuously improve theorganic and natural attributesand environmental friendlinessof formulasContinuously upgradeproduct formulas to provideconsumers with more organicand natural products.
ProyaEnvironmental, Social& Governance (ESG) Report 2021
We strictly abide by theRegulation on the Supervision and Administration of Cosmetics, theMeasures for the Administration of theRegistration and Recordation of Cosmetics, theMeasures for the Supervision and Administration of Production and Distribution ofCosmetics, and other laws and regulations, and we perform quality management throughout the entire process from product R&Dproduction, to post-market in a bid to ensure the quality, safety, and efficacy of products. During the reporting period, we did notencounter any incident related to quality and safety, nor did any lawsuit arising from the above matters occur.
In product development, we focus on the safety and efficacy of raw materials and formulas. We have formulated theProduct Anti-corrosion Energy Efficiency Test Process, theHuman Patch Test Process, and other systems to standardize the quality and safetycontrol of product development. In addition, we have comprehensively evaluated newly-developed formulas, upgraded originalformulas and functional and active raw materials to ensure product safety and outstanding efficacy.We comply with national requirements for cosmetics registration and recordation, and conduct product inspection and safetytesting of physical and chemical microbial indicators. We have established a physical and chemical analysis department and aproduct evaluation department under the R&D Innovation Center to evaluate the quality of product development and we havedesigned a sophisticated safety evaluation system, as follows: Stability, sensory evaluation, in-vitro efficacy evaluation, cytotoxicityevaluation, animal toxicology experiments, clinical test evaluation, etc., as well as tests performed by dermatologists. In addition, weactively conduct human patch tests to reduce the potential of adverse reactions of human skin caused by cosmetics.We have also actively established and developed in-vitro evaluation methods to replace animal experiments. We have set up a skinscience research department within the International Academy of Sciences to evaluate the safety and efficacy of key functional rawmaterials and products. We have established more than 20 in-vitro evaluation methods such as in-vitro moisturizing, whitening andfreckle removal, soothing and anti-inflammatory, anti-oxidative, anti-aging and other efficacy evaluations, as well as toxicologicalstimulation and other safety evaluations at the biochemical, molecular, cellular, and 3D model level. We have the preliminary abilityto conduct in-vitro efficacy and safety evaluations of major cosmetics such as anti-aging, whitening and freckle removal, soothingand stimulation, as well as research on efficacy mechanisms.During the production stage, Proya upholds the quality control philosophy of "process control, quality and safety, customersatisfaction" and has established a well-developed quality management system. We have formulated theProya ManagementManual, the Deviation Control System, theNon-conformance Corrective Action Control Procedure, and other systems to standardizequality control and deviation management at all stages from raw materials and production to delivery. Quality objectives are set atall stages and strict quality monitoring is applied to guarantee product quality across the board.
We have complete in-house testing capabilities and advanced equipment and instruments, including the VISION SWIFT DUOintegrated video and optical measurement system from the UK, the OLYMPUS wall thickness gauge, the SUN TEST light aging testerfrom America, the Agilent high performance liquid chromatography from America, and the inductively-coupled plasma emissionspectrometer (ICP-OES), etc., which allow us to measure the appearance of packaging materials, wall thickness, film thickness,hardness of electroplated coating, adhesion of surface printing and electroplated coating, light aging performance, impactresistance, solvent resistance, airtighteness, compatibility, and to determine the content of preservatives, heavy metals, and sun-screening agent in cosmetics, as well as the content of prohibited and restricted substances stipulated in theSafety and TechnicalStandards for Cosmetics. Safety and efficacy tests cover the entire product life cycle ranging from R&D, raw materials, packagingmaterials, semi-finished products, to finished products. In this way, we ensure that products delivered to consumers are safe andeffective.
Product Quality and Safety
Quality management in product R&D
Quality management in production
◎Quality Management System Certification
◎Key performance objectives and performance of production factories
◎Quality control at the production stage
CertificationScope of certificationValid period of certificationISO22716 Cosmetics - Good Manufacturing Practice(GMP)
Proya Cosmetics Co., Ltd.2024.3US FDA CFSAN Cosmetics - Good ManufacturingPractice (GMP)
Proya Cosmetics Co., Ltd.2024.1ISO9001:2015Proya Cosmetics Co., Ltd.2025.2ISO9001:2015Zhejiang Beute Cosmetics Co., Ltd.2024.3US FDA CFSAN Cosmetics - Good ManufacturingPractice (GMP)
Zhejiang Beute Cosmetics Co., Ltd.2024.3
KPIs in production qualityTargetPerformanceFirst-pass yield of the production process≥99%≥99.5%Acceptability of spot check100%100%Rate of quality-related complaints
≤2ppm (reject ratio per 1 million
products)
≤2ppmIQC pass rate≥99%≥99.5%Close rate of defects in management system review 100%100%
?Formulate araw materialmanagementsystem, setacceptancestandards, andstandardizeevaluation methods,and make eachdepartmentstrictly abide bythe regulations ofvarious documents
?Adopt a raw materialshelf life controlsystem and setquality controlindicators for rawmaterials, including:
Physiochemical,microbiological,infrared spectrumfingerprint control,etc.
?Formulate thePackaging MaterialManagementSpecificationandother systems
?Evaluate packagingsamples and small-lot trial productionof package
?Set up an inspectionplan, and releasethe products onlyafter they pass allinspections
?Formulate processspecifications instrict accordancewith the productionprocess approvedby the state,and manage theproduction processin a standard manner
?Develop evaluationspecificationsfor semi-finishedproducts and setquality controlindicators, such as:
Physiochemical,microbiological,preservativeadditions, etc.
?Sample every lotof semi-finishedproducts andregularly re-checkinventory
?Carry out first-piececontrol and in-process control, andmanage the qualityof the packingprocess
?The MES systemlaunched in 2021collects qualitydata during theproduction processto realize real-timesharing of on-sitequality informationand informationtraceability
?Perform qualitycontrol of productsagainst qualitystandards,including: Physicaland chemicalinspection, stabilityinspection, heavymetal inspection,etc. Products canonly be releasedafter passing theseinspections
?Establish the
Labeling andTraceability ControlProcedurein strictaccordance with therequirements of lawsand regulations
?Make sureproduction recordson the labelsof all deliveredproducts aretraceable, including:
Lot number,specification,process, inspectionrecord, etc.
Raw materialcontrol
Packagingmaterial control
Manufacturingprocess
Finishedproduct control
Ex-factoryinspectionPacking control
ProyaEnvironmental, Social& Governance (ESG) Report 2021
We have formulatedProduct Recall Managementto immediately stop selling and recall sub-standard products already sold or intransit, so as to protect the rights and interests of consumers. We conduct an annual product recall rehearsal to ensure the recallprocedure is running effectively. During the reporting period, we carried out two recall rehearsals in which we coordinated with theCustomer Service Department, the Quality Management Department, the Logistics Department, the warehouse, distributors, andmany other departments to successfully recall 14,586 products of ANYA Eye Rejuvenating Essence and Proya Deep Sea RejuvenatingAnti-Wrinkle Renewing Essence.In December 2021, we received a document from the Comprehensive Planning and Finance Department of the National MedicalProducts Administration, which put forward new requirements for the use of phenethyl resorcinol in ordinary cosmetics. To bettermeet the legal requirements, we immediately started the recall procedure according to the procedure, established a recall team,and actively carried out the backtracking of finished products. We collectively discarded and disposed of 400,000 products involved(at a cost of nearly RMB 3 million). At the same time, the company is re-registering products involving this raw material with specialcertificates in accordance with regulatory requirements to ensure product safety and compliance.
In addition, each business unit of the company performs consumer satisfaction surveys each year covering, among other things,products, logistics, and services, for collecting and respecting their opinions while better understanding their needs. During thereporting period, the company’s TIMAGE brand conducted a satisfaction survey which shows that 93.7% of respondents are verysatisfied with our products, logistics, and services, far exceeding the industry average. In addition, the satisfaction survey made usaware of the consumer’s need for cosmetic skills, leading us to organize a makeup class on WeChat to teach consumers makeupskills. With "consumer satisfaction" as our core value, we offer better products and services.
Post-market quality management
Consumer Services
Consumer privacy protection
Adhering to the concept of "heartfelt service and sincerehospitality", Proya is committed to providing consumers with apremium customer service experience. We have built a smoothonline and offline customer service channel to provide consumerswith pre-sale, in-sale, and after-sale inquiry, consultation, andcomplaint services We regularly organize training for marketingpersonnel in order to continuously improve their professionalismand service capabilities.Attaching great importance to communicating with and receivingfeedback from consumers, we have established a comprehensivecomplaint-handling channel linking our sales, R&D, and customerservice departments to timely handle consumers' feedback andquestions regarding the user experience, after-sale service, andproduct improvement suggestions.
Proya values information security and consumer privacy protection. We strictly abide by thePersonal Information Protection Law of the People's Republic of China, and theData SecurityLaw of the People's Republic of China, as well as other laws and regulations. In addition, interms of data security and research and development, we require all employees to strictlyimplement relevant security systems to ensure compliance with data-secure productionrequirements. We follow up on the latest security policies and related regulations in real time.During the reporting period, we did not encounter any incident related to customer privacy,nor did any lawsuit arising from the above matters occur.We strictly control the access to and transmission of consumer information, declassifysensitive information, and restrict data duplication and the frequency of access to consumerinformation. We also set permissions for the export of sensitive information so that operatorshave no right to obtain user information. In 2021, aiming at consumer privacy of personaldata, we launched a consumer-sensitive information protection scheme for order processinglinks and took technical security measures such as encryption and de-identification ofconsumers; sensitive personal information. In addition to taking these measures, we continueto improve the security of the platform and of product data.We also regularly conduct security drills and security training and perform regular self-inspection and self-correction on information security. During the reporting period, weorganized three data security drills, checked the product operation environment, andreinforced security measures for the platform, data, and products on an all-round basis.
Protection of Consumer Service Rights and Interests
Customerservicechannels
Offlinestore
Proya VIPcenter onWeiboE-commercecustomerservice
24-hour service
hotline
Feedbackcommunication
◎Method and procedure for handling complaints
◎Key measures to improve consumer satisfaction in 2021
User experience
Customer service personnel will take the questions of users and quickly provideprofessional suggestions and solutionsUser needs are recorded and reported to solve the problems encountered byusers as soon as possible and to maximize their rights and interestsProducts are sorted and monthly reports are generated and sent to the R&DDepartment for product upgrade and improvementFactories, R&D, and quality departments work together for troubleshooting andtake targeted measures according to the severity of the problem in order to reachconsensus with consumers to maximize their rights and interests
After-sales experience
Product qualitycomplaintsProduct improvement
We have optimized the service process system, formulated theService Standard Formulation Rules - ConsideringConsumer Needs,analyzed processes to determine the service elements that affect consumer perception, andhave continued to iterate and optimize service standards to enhance the consumer service experienceIn terms of after-sale services, we have established a multi-departmental rapid response collaborationmechanism, strengthened the coordination among customer service, operations, supply chain, and otherdepartments, enhanced the capability of problem solving in logistics, providing daily promotion duringoperation, and improving the experience in large-scale marketing campaigns. Consequently, the percentage ofvery satisfied consumers was dramatically raised to more than 80%We provide regular training of customer service personnel to improve their service and communication skills andto provide consumers with a better service experience
Handling method
ProyaEnvironmental, Social& Governance (ESG) Report 2021
Socially-responsible marketing and consumer education
Business marketing is the process ofinteracting with consumers. In this process,providing consumers with true, accurate, andcomplete product and marketing informationis the foundation for companies to carryout customer service. Also, the informationconsumers obtain from brands and productswill affect their purchasing decisions, furtheraffecting the development of the industry.Valuing interaction and communicationwith consumers, we carry out marketingcampaigns in a responsible manner andwe focus on conveying scientific andenvironmentally-friendly concepts in theprocess of communication with consumers,thus helping them make rational decisionsand realize sustainable consumption.Valuing truthfulness and accuracy in product marketing, we strictly abide by theLaw of the People's Republic of China on theProtection of Consumer Rights and Interests, have formulated the Product Copywriting Review Procedure, and established theProduct Technology Content Department under the R&D Innovation Center to control the science-related content of products.In addition, we have reinforced the training of all customer service personnel to improve their awareness regarding responsiblemarketing. During the reporting period, we did not encounter any incident related to market promotion and label use, nor did anylawsuit arising from the above matters occur.
Understanding the safety and functionality of cosmetics is an important line of defense for consumers to ensure their own safety.Through transparent ingredient disclosure and the education of chemical ingredients in their various forms, we help consumers tobetter understand the efficacy of ingredients and to make purchasing decisions more wisely.
To guide consumers toward sustainable consumption, we integrate our environmental protection philosophy into our product andpackaging design and pass it on to consumers.
◎Proya's principles of consumer communication
◎Administrative measures for chemical safety and ingredient transparency
◎Measures for guiding consumers toward sustainable consumption
◎Administrative measures for socially-responsible marketing
Convey productinformationtruthfully, accurately,and completely
Help consumers tobetter understandand chooseproducts
Pass on the conceptof environmentalprotection andlead consumers toconsume sustainably
?We have established the Product TechnologyContent Department in which professional R&Dpersonnel review product introductions to ensurethe correctness and accuracy of science-relatedcontent in the process of product promotion.
?We have established theProduct CopywritingReview Procedure. Marketing copywriting must bereviewed by departments such as brand marketing,product development, research and development,and legal affairs.
?Internal clinical trials and third-party tests for theprimary efficacy of products are carried out duringthe promotion process, for example: We engageda third party to issue a test certificate in orderto prove the highlighted promotional aspects ofTIMAGE Glaze Rejuvenating Multi-Effect MakeupPrimer, specifically that "the product improves cardpowder, dullness, and instant skin fineness"
?Prior to the launch of a new product, we organizetraining of product information accuracy for brandmarketing, operations, and customer servicepersonnel, including Product texture science,product usage suggestions, etc.
?Customer service personnel receive at least threesessions of training in product knowledge andtake post-training examinations to ensure thatconsumers are provided with consistent productinformation in line with our standard productintroduction
?During the reporting period, the coverage rate forresponsible product marketing training, customerservice, and sales personnel was 100%.
The packing box includes areusable box that can storejewelry and other small items,making it more reusable
Print instructions and mini-games on the inside of flowerboxes and gift boxes to leadconsumers to keep and reusethem
Socially responsiblemarketing
Transparencyregardingingredients
Guide themtoward sustainable
consumption
Guaranteed accuracy of
product promotion
Functional designUse guide
Ingredientdisclosure
?We fully indicate product ingredients on labeling in accordance with the requirements of lawsand regulations.
?We upload a complete ingredient list of products on APPs commonly used by consumers, suchas "Transparent Label" and "Practical Beauty", on which we openly and transparently discloseproduct ingredients.
?We clearly explain the ingredients used, the mechanism of action, and the source in thepromotion of all products.
?In conjunction with CCTV and dermatology experts, a popular science presentation titled "InFocus: The Smart Way to Avoid Wrinkles" was launched on the Weibo and Tik Tok accounts ofCCTV. In the presentation, leading experts visit our laboratories and intuitively experience thewhole chain of the anti-wrinkle process and its efficacy via professional experiments. In doingso, they teach the public how to scientifically avoid wrinkles and build awareness of scientificand effective skin care.
?We created the "This is Skin Care" feature, invited several authoritative dermatologists frompublic hospitals to livestream discussion of skincare issues, popularize professional skincareknowledge, and share diagnosis experiences, thus helping users build up a professionalskincare system.
?We were invited to the "2021 National Cosmetics Safety Science Week (Zhejiang) and theProvincial Cosmetics Safety Science Week", during which our engineer representative fromthe R&D Innovation Center answered questions from the public at the event site to promoteknowledge of cosmetics safety and to enhance consumer understanding and perception ofcosmetic safety, thus allowing them to better identify cosmetics they purchase and to betterprotect themselves.Training for responsiblemarketing
Ingredientdisclosure
ProyaEnvironmental, Social& Governance (ESG) Report 2021
The main types of our suppliers are material suppliers and OEM and ODM suppliers. The longevity of our relationships with suppliersis based on the quality of their products and services and the stability of their business operations. Proya complies with theContractLaw of the People's Republic of China, theBidding Law of the People's Republic of China, theCivil Code of the People's Republicof Chinaand other laws and regulations, and carries out effective and thorough management of suppliers to prevent and controlsupply chain risk.We have established administrative documentation such as the Supplier Management System and the Development ManagementSystem for New Suppliers of Production Materials for maintaining thorough and normative management of supplier access,evaluation, assessment, and review. During the reporting period, we were awarded special incentives for supply chain innovationand application by the Huzhou government.
Proya understands that, as a company at the core of the entire value chain, our procurement practices have a significant impact onthe environment and society, and we need to look at our responsibilities from the perspective of the value chain system as a whole.On the one hand, the raw materials we use affect the soil and biodiversity of the place of production and may also cause laborissues; on the other hand, our active guidance and support can encourage suppliers to reduce their own environmental and socialimpact. Therefore, we strive to practice the principles of sustainable procurement and are committed to improving the sustainabilityof the entire value chain.
In terms of palm oil procurement, we don't use palm oil in the production of our products; when we purchase raw materials madefrom palm oil, we learn from suppliers about the origin and source of the palm oil, understand its sustainable attributes, andpreferentially purchase RSPO-certified palm oil.In terms of production, during the reporting period, we discussed with our suppliers and launched several improvement measures tosave energy and reduce consumption, including the following:
In addition, we take an active part in industrial research and development, while sharing and exchanging our experiences in buildinga responsible supply chain. During the reporting period, we participated in the "Sustainable Packaging Seminar 2021" held byShanghai Tongji University and Aptar, and the Global Trend Seminar on Sustainable Packaging jointly held by Packaging Familyand SK. We joined hands with the community, academic institutions, and enterprises to explore a new green- and people-orientedpackaging ecosystem for the future.
?Shut down frosting workshops that employ non-environmentally-friendly processes, and stop using non-environmentally-friendlyprocesses;
?Use pure oxygen combustion and electric heating to replace traditional combustion kilns in order to reduce waste gas andgreenhouse gas emissions;
?Recycle preheating of the kiln and use it for daily heating;
?Evaluate the production process of products.
In terms of supplier quality management, we arrange regular on-site audits of suppliers and provide special quality training forkey suppliers. During the reporting period, we launched the "Quality Month" campaign for suppliers, aiming to conduct on-sitefactory audits for key suppliers. We put forward corrective suggestions and urged suppliers to improve the level of their qualitymanagement. Meanwhile, we organized training in key quality control points for suppliers of hygienically high-risk packagingmaterials.In terms of supply chain stability management, we have opened up the data information chain from the production end to the branddemand end through continuous upgrading of supply chain automation, digitization, and intelligence in order to create a moreaccurate and agile market response capability. We have established a supply chain stability guarantee mechanism in terms of value,strategy, technology, and business to ensure resilience and stability of the supply chain through scientific forecasting, early warning,and supplier control. We have built an information-based supply chain platform based on big data, 5G networks, Internet of Things,and other related technologies. In April 2021, we were contracted to build the Zhejiang Supply Chain Collaborative InnovationComplex.
Safeguarding Supply Chain Stability
Building a responsible supply chainSupply Chain Responsibility
◎Supplier management procedure
◎Our measures for sustainable procurement
In response to new demandgenerated during businessoperations which cannot bemet with existing resources, thepurchasing department will initiatethe development of new suppliers.Profiles of new suppliers arepreviewed to single out potentialcandidates who will then berequired to submit to an on-site audit. A new supplier will beaccepted after they have beenrated according to new supplierevaluation standards.
We conduct semi-annual supplierperformance evaluations. Duringthe evaluation, the ProcurementDepartment, which is also theinitiator, together with the QualityManagement Department and thePrice Assessment Department, ratessuppliers by levels A, B, C, and Dwith online and offline SRM. Theevaluation mainly covers productquality, delivery, price, and value-added services.
Measures are taken based on theresult of a supplier performanceevaluation. Level-D suppliers areconsidered unqualified suppliers, inwhich case procurement personnelwill submit a supplier delete/changeform. Following multi-level approval ofthe recommendation, the relationshipwith the supplier is terminated.
Supplier access
Supplier evaluation
Unqualified suppliers
Environment
Society
Businessethics
We preferentially select environmentally-certified raw materials
?We preferentially purchase environmentally-friendly raw materials, including FSC-certified paper,palm oil, environmentally-friendly ink, environmentally-friendly coating, and environmentally-friendlyglue, etc.
?For raw materials originating in Africa, the company gives preference to producers who have signedfair trade agreements.
?Natural products are the core ingredients of Proya's products. As for ingredients such as boerhaviadiffusa root extracts, tara gum, and cocoa resin, we give preference to manufacturers that complywith theNagoya Protocol.We work with production suppliers to reduce environmental impact
?We work with our suppliers to improve production processes and to reduce the environmental impactof the production process
?We require suppliers to promise to strictly abide by the law, not to use child labor, not to use forcedlabor, and to follow the principle of fairness and non-discrimination in employment
?We require suppliers to sign aCommitment Letter of Business Guidelinesfor New Suppliers, toabide by the principle of integrity and probity, and to reject any form of commercial bribery
ProyaEnvironmental, Social& Governance (ESG) Report 2021
We strictly abide by theLabor Law of the People's Republic of China, theLabor Contract Law of the People's Republic of China,and other legal provisions, and have formulated and released administrative documents such as theStaff Recruitment andHiring Management System, theSalary Management System, and theStaff Change Management Measuresare not subject toany form of discrimination in the recruitment and management process, and that they are treated fairly in terms of salary, jobtransfer, and performance assessment. During the reporting period, we did not encounter any incident related to recruitmentand dismissal, working hours and vacations, promotion and equal opportunity, anti-discrimination and diversity, or laborstandards, nor did any lawsuit arising from the above matters occur.
The high-quality development of a company can never be achieved without the growth of talents. We see improvement of employeecompetency as an important driver of our development and continuously empower them to grow.In terms of employee promotions, we provide smooth promotion channels for management-oriented and expertise-orientedemployees according to the characteristics of the position. We employ a consistent performance management system and haveformulated thePerformance Management Measures, thePersonnel Management Measures, and theInternal Competition System
to ensure that the performance evaluation standards are open to employees at all levels, that the procedures are fair, and that theappointment and promotion of managers at all levels is open and transparent.In terms of employee training, we integrate internal and external training resources, provide personalized vocational trainingsessions for employees at different stages of development, satisfy the demands of different employees for capability improvement,and offer them a well-designed training and improvement system.An equal dialogue relationship is conducive to the establishment of an efficient workplace, and also allows more employees to beengaged in the development and operation of the company, thus enhancing their sense of belonging. We continuously improve thecommunication mechanism with employees, listen to the opinions and suggestions of employees, improve corporate management,and create an equal and open working environment for employees.
Valuing employee benefits, we have formulated and issued theBenefit Management Measuresto provide employees with a rich andcomplete benefit system. On the basis of statutory benefits, we also provide supplementary and special benefits for employees.
We also provide factory employees with additional benefits, including free dormitory or housing subsidies, free working meals, andother rewards such as full attendance and seniority awards.
Employee rights and benefits
Human Capital Development
Employee Responsibilities
◎Policies of employment and fundamental rights of employees
◎Employee communication channels
◎Training system
◎List of company benefits
Recruitmentanddismissal
Workinghours andvacations
Salary andpromotion
?We formulated theStaffRecruitment and HiringManagement Systemtostandardize the recruitmentprocess
?We carry out dismissalprocedures in strictaccordance with laborregulations.
?We implement a flexible workinghours system to ensure thatthe standard working hours fordifferent positions are 40 hoursper week, and overtime hourscan be exchanged for days off.
?We formulated theAdministrative Measuresfor Requesting Leave, andimplement paid annual leave,marriage leave, funeral leave,and other statutory holidaysin accordance with nationalregulations.
?We formulated theSalaryManagement System, and haveadopted different remunerationformulas consisting of fixed pay,performance bonus, and rates byhours/pieces according to differentjob sequences;
?We formulated thePerformanceManagement Measures, inwhich the results of employeeperformance evaluations aretaken as important factors for theirpromotion; we established a dual-channel promotion mechanismfor expertise-oriented andmanagement-oriented employees.
Establishment of anemployee representativeassembly
Opened onlinecommunicationchannels on DingTalkand OA.
Established a face-to-face communicationmechanism betweenmanagement andemployees.
Conduct employeesatisfaction surveys andtouchpoint surveys.
Smooth employeecomplaint channels
Internaltraining
OrientationPromotion trainingDaily trainingExecutive study tourTrainees: New recruitsContent of training: Ourhistory and culture, rulesand regulations, and othercontents that employeesshould know
Trainees: MiddlemanagersContent of training:
Business thinking,management ability,leadership improvement
Trainees: All employeesContent of training:
Service capability,management capabilityimprovement
Trainees: CompanyexecutivesContent of training:
Vision expansion andstrategic thinkingimprovement
Externaltraining
Trainees: Trainees selected from among all employeesContent of training: We purchased Alibaba business training courses to provide employees with a full range ofgeneral business education
Statutory benefitsSupplementary benefitsSpecial benefits
Lunch allowanceSocial insuranceAnnuity benefits
Special healthbenefits, etc.High temperature subsidyHousing fundStatutory benefitssuch as statutoryholidays and annualleave
Physical examination,commercial insuranceAnnual travel and teambuilding benefitsCash gifts for weddings andfunerals, holiday condolencepayment, birthday gifts, etc.
ProyaEnvironmental, Social& Governance (ESG) Report 2021
During the reporting period, we held a "leadership training camp", in which employees wereorganized to receive intensive on-the-job training and learning. Lasting for one month and 10days, the training covered management, finance, and marketing. It provided leadership andservice capability training for 40 employees. The pass rate was 100%, and 43% of trainees receiveda“Good” or higher result in the graduation exam.In the meantime, we set up "mini-classes" within the company to encourage employees to sharetheir working and service experiences of their positions with colleagues. During the reportingperiod, we set up six service courses, each accommodating around 50 trainees. After class, thecourse content was uploaded to a public platform that could be viewed by all employees.In addition, we invited instructors to provide vocational skill training and to grade exams foremployees, including junior Internet marketers, senior health managers, and senior tea artspecialists, etc. A total of 108 employees participated in the training.During the reporting period, we carried out a total of 54,904 hours of training, with an employeecoverage rate of 49.75% and a per capita training time up to 19.31hours.
During the reporting period, we purchased specialized safety facilities and emergency rescue equipment as a physicalguarantee for emergency rescue and handling; we added an online site monitoring system based on the site situations andconnected the system to a governmental video surveillance platform as a part of intelligent management; we proceeded withthe "Massive Safety Training For A Million Employees" program, so that all employees could master the laws and regulationson safe production, accident prevention, and emergency response measures (the program required 100% participation, 100%training, and 100% pass rate); we implemented a new dual-control system consisting of safety risk-graded control and hiddendanger identification and elimination; we taught all employees how to identify sources of danger and produced a list of safetyrisks and corresponding safety protection measures to ensure zero safety management risks.
Adhering to the safe production principle of "insisting on safe production, creating a safe environment, ensuring physical and mentalhealth", we abide by theLabor Law of the People's Republic of China, theLaw of the People's Republic of China on Safe Production,and other legal provisions and have set a safe production goal of "zero major accidents causing casualties, zero fires, explosions andother fire-fighting accidents, and fewer than three minor accidents causing slight injuries per year". During the reporting period, wehad 0 accidents causing casualties and had no fire accidents.To establish a sound safety production management system, we have formulated institutional documentation such as theSafeProduction Inspection and Hidden Hazard Investigation and Management System, the Safe Production Education and TrainingSystem, theRegular Meeting System for Safety, and the Fire Safety Management System.
Attaching great importance to the occupational health of employees, we abide by theLabor Law of the People's Republic of Chinaand theLaw of the People's Republic ofChina on the Prevention and Treatment of Occupational Diseases; we formulated andreleased theOccupational Health Management Systemto identify occupational diseaserisks in the production environment and take targeted measures to protect the health ofemployees. We proposed the occupational health management goal of "no occupationaldisease; regular occupational hazard factor detection and occupational healthexamination". During the reporting period, the Huzhou Production Base received theISO45001:2018 OHSAS certification (valid until 2/14/2025), and no occupational diseasecase occurred in the company.Our occupational disease risks mainly include dust, VOC gas, and so on. Therefore,we provide employees with comprehensive occupational disease protection from twoaspects: environmental and equipment safety protection and personal safety protection.
Occupational Health and SafetySafe production
Occupational health
◎Administrative measures for safe production
◎Protective measures against occupational disease risks
?We improve safety awareness and adhere to a policy of“prevention first”. We regularly study the dynamics of safeproduction and solve problems occurring in production in a timely manner; we make full use of the safety protectionfund to improve working conditions and operating environments.
?We have established and improved the safety organization network, perfected the accountability system for safeproduction positions, created the Safe Production Responsibility Letter signed at all levels, and fully acted as a safetyadministrator to prevent illegal commands or operations.
?We strengthen safety education, improve the safety competence of employees, and perfect their safety educationrecords. Newly-hired workers must undergo three levels of safety education and training, pass an examination, and signthe Safe Production Responsibility Letter before they take up their positions.
?We carry out annual "National Safe Production Month" activities. By conducting safety activities, we enhance employeesafety awareness, improve safety competence, and promote safe production.
?We strictly implement the approval procedure for dangerous operations. All dangerous operations must receiveapproval beforehand. Dangerous operations must be accompanied by a detailed operation plan, written disclosure, andsafety protection measures, and must be available to be checked at any time to identify and correct hidden dangers.
?We perform regular supervision and inspection to eliminate hidden dangers from the very beginning.
?We established theEmergency Response Plan for Production Safety Accidentsas well as a complete safety accidentemergency response system from the aspects of organization, response, post-processing, special emergency response,and on-site disposal plans.
?We preferentially adopt new technologies, processes,and materials beneficial to preventing occupationaldiseases and protecting workers.
?We introduced a dust and VOC collection system toremove dust and VOC gas in workshops.
?We have posted on-site warning signs and bulletinboards and distributed protective gear to employees.
?We regularly maintain and overhaul occupationaldisease protection equipment, emergency rescuefacilities, and occupational disease protection articlesfor personal use.
?We provide workers with occupational diseaseprotection articles for personal use.
?We carry out occupational health examinations forworkers who are exposed to occupational diseasehazards before, during, and after their employment.
?We provide all employees with annual free physicalexaminations and give targeted health lectures onnoticeable sub-health problems of employees
Environmental and equipment safety protectionPersonal safety protection
54,904
49.75
19.31
%Total training duration ofthe company
Employee trainingcoverage
Per capita training time
ProyaEnvironmental, Social& Governance (ESG) Report 2021
For a long time, Proya has upheld the idea of "achieving beauty with a grateful heart; repayingsociety with a sincere heart". We have continued to increase social investment and activelyperform our social responsibilities. During the reporting period, we invested a total of RMB 3.706million for community philanthropy undertakings.
The rural revitalization strategy is a long-term and forward-looking national strategy of global importance, and is also thecore and key issue of national development. We actively implement such policies as theOpinions of the Central Committeeof the Communist Party of China and the State Council on Comprehensively Promoting Rural Revitalization and Acceleratingthe Modernization of Agriculture and Rural Areas, and theOpinions on Effective Connection of Consolidation and Expansionof the Results of Poverty Alleviation with Rural Revitalization. We help with rural revitalization by means of paired assistance,charitable donations, and other forms.
Social Responsibility
We have long advocated the social value of "aesthetics" and focused on key issues in social life. Relying on our brand influence andexpertise, we have issued initiatives and taken action to commit ourselves to delivering a beautiful life to everyone.
Social Advocacy
Rural Revitalization
◎Description of our participation in paired assistance for rural revitalization
Areas of interestProject nameProject descriptionProject data
Women andgender
Gender does notdivide us, prejudicedoes!
Start time: March 2021Project description: Through a seriesof integrated communication activitiessuch as media voices, Weibo discussions,and promotional videos, we break thestereotype of gender and discuss the truemeaning of gender equality.
?The promotional video has beenwatched 25 million times, with 150million readers viewing the topic pageon Weibo and 103,000 discussionsraised, evoking widespread socialresonance.
"To the Brave inLove"
Start time: May 2021Project description: Through classicliterature, combined with key social mediaplatforms, the brand spreads the conceptof "dare to love, dare not to love"; a shortfilm was produced with famous beautyKOL Luo Wang Yu to create social mediabuzz and to convey the brand's conceptand spirit of "discover while you’reyoung".
?As of May 24, the Weibo topic #dareto love, dare not to# had generated atotal of 44.935 million page views andattracted 30,000 Weibo users to discussit;
?As of September 7, the brand film hadbeen viewed 2.91 million times onWeibo.
Areas of interestProject nameProject descriptionProject data
Young people
Echo Project
Start time: October 2021Project description: Combining our
insights into the current mental health ofyoung people, we proposed "Don’t beashamed of your feelings" and we havepaid close attention to the emotionaldifficulties faced by young people byreleasing topics, customizing the "EchoProject" Mental Health Care Manual forYouth, founding a charitable fund, andproducing themed short films on themental health of youth.
As of October 29:
?The #Don’t be ashamed of yourfeelings# topic had received 76.29million views and 38,000 discussions;
?The #Proya Echo Project# topic hadreceived 13.39 million views and 30,000discussions.
?The "Don’t be ashamed of yourfeelings" TVC had been played morethan 4.9 million times on the Internet;
?The thematic documentary has beenplayed more than 3.5 million times;
?More than 60,000 copies of the "EchoProject" Mental Health Care Manualfor Youth were distributed in more than60 colleges and universities acrossthe country, including Beijing NormalUniversity and South China NormalUniversity.
Dabble in thenew world upon
graduation
Start time: January 2021Project description: Throughillustrations, Weibo topics, promotionalvideos, and other forms, we encourageyoung people to brave the new world anddeliver the brand concept "discover whileyou’re young".
?The total PV of the brand TVC onWeibo has exceeded 15.08 million andthe total interaction has exceeded10,000 times.
?The #First year of graduation# topicreceived 100 million views and44,000 discussions on Weibo. The#Touched by the deepest subway inChongqing# topic received more than80 million views and more than 35,000discussions.
Villages of paired assistanceStarting timeSupporting measures and resultsYandai Village, Yandai Town, JiulongCounty, Ganzi Prefecture, SichuanProvince
2021
During the reporting period, we invested RMB50,000 of assistancefunds to commend outstanding students and support poverty-stricken students.Mulin Village, Yandai Town, JiulongCounty, Ganzi Prefecture, SichuanProvince
2021
During the reporting period, we invested RMB50,000 of assistancefunds to commend outstanding students and support poverty-stricken students.
3.7
millionmore thanfor communityphilanthropyundertakings
ProyaEnvironmental, Social& Governance (ESG) Report 2021
We have improved our corporate governance structure and continue to enhance our standard operating capability in accordancewith the requirements of relevant laws and regulations such as theCompany Law, theSecurities Law, theRules of the Shanghai StockExchange for Stock Listing, theCode of Governance for Listed Companies, and theArticles of Association.We have convened and held general meetings of shareholders in strict accordance with theArticles of Association, treating allshareholders equally, and providing as much convenience as possible for shareholders to participate in general meetings so thatthey can fully exercise their rights as shareholders.All shareholders, directors, supervisors, and senior management personnel are diligent and responsible and effectively exercisetheir rights and perform their obligations in accordance with the relevant rules and regulations of procedure. The actual situationof our corporate governance complies with the requirements of the normative documents on the governance of listed companiesissued by the China Securities Regulatory Commission and the Shanghai Stock Exchange. No document has been received thatrequired a competent authority to enforce an administrative supervision measure.
Corporate Governance System
Investor Relations
Corporate Governance
◎Chart of corporate governance structure
◎Composition of our board of directors and the convening of three meetings in 2021
We strictly abide by theCompany Law of the People's Republic of China, theSecurities Law of the People's Republic of China,and other relevant laws and regulations to fulfill our information disclosure obligations, to ensure the truthfulness, accuracy,completeness and timeliness of our information disclosure, and to guarantee that all investors have fair access to companyinformation. During the reporting period, we did not have any violations or penalties.On the basis of proper mandatory disclosure, we actively add more information in voluntary disclosure. We disclose ESG informationthrough environmental, social, and governance (ESG) reports, and we hire professional external agencies to provide ESG training torelevant departments of the company and promote internal understanding of ESG.We adhere to the principle of equal opportunity for investors. In order to further protect the rights and interests of small and mediuminvestors, we take active measures to communicate with investors and to make investors better understand and trust the companyby means of telephone calls, emails, the "E Interaction" platform of the Shanghai Stock Exchange, performance presentations, visitand survey, online exchange, and many other ways.
Information disclosure and investor communication
Shareholders MeetingBoard of DirectorsStrategy Committee
Investment and M&A
Department
ESG ManagementCommittee
Remuneration and Appraisal
Committee
Human Resource
Department
Nomination Committee
Finance Department
Audit Committee
Data PlatformDepartment
Internal AuditDepartment
Chairman of the BoardGeneral ManagerOffice of the GeneralManager
Brand marketing platforms: Brand Marketing Department, Product Launch Department, Visual DepartmentSupply chain platforms: Procurement Department I, Procurement Department II, skincare factories, make-up product
factories, Logistics DepartmentAdministrative service platforms: Information Management Department, Administration Department, Engineering Department
Strategic Management andLegal AffairsDeputy GeneralManager
Office of the Board ofDirectorsBoard of Supervisors
Securities Investor
RelationsOffice of theChairman of the Board
Corporate CultureDepartment
Proya Business Unit
TIMAGE BusinessUnit
Uzero Business UnitAnya Business Unit
New Brand BusinessUnit
E-commerceBusiness Unit I
E-commerceBusiness Unit II
E-commerceBusiness Unit III
Executive Deputy General
Manager
Convening of three meetings2 Shareholders6 Board Meetings11 Meetings of special committees of theboard of directors6 Meetings of the board of supervisorsA total of about 124 proposals and reportshave been deliberated, read, reviewed, orheard
Performance of investor communication in 2021
?RatedA in information disclosure by the Shanghai Stock Exchange
?Issued a total of four periodic announcements and
temporary announcements
?Carried out seven investor surveys and communication activities in an online and on-site manner, and received morethan
800+
institutional investors
Composition of the Board of Directors and the Board of Supervisors
5 Directors
3 Executive Directors2 Independent Non-executive Directors
3 Supervisors, including one employeerepresentative
International Academyof SciencesR&D and InnovationCenterProduct DesignDepartment
ProyaEnvironmental, Social& Governance (ESG) Report 2021
While striving to achieve rapid growth in scale and steady growth in economic benefits, we also pay attention to giving reasonablereturns to investors based on our profitability and the need for production and operations., We employ a prudent dividenddistribution policy, pays a stable dividend, and actively rewards shareholders.
The social contribution per share reflects the value created by the company for society and stakeholders. The social contributionvalue per share of the company in the past three years is:
Investors' rights and interests
◎Cash dividend distribution in the past three years
In order to build a risk management mechanism that supports strategy implementation andintegrity building and ensures the effective operation of our risk management system, wehave formulated theInternal Audit Management System, theApplication Guidelines, andother institutional documents. Furthermore, we have established institutional documentationfor each subsidiary and business unit, optimized internal control systems, realized themanagement of and response to internal and external risks, and ensured the low-riskoperation and high-quality rapid development of the company.Under the guidance of theInternal Control Application Guidelines and Process SystemManagement, we have established independent processes and supporting regulations foreach business unit, each functional department, and each specific project to rapidly respondto market needs. Specifically, we are able to promptly identify and classify five major riskcategories, including business decision-making risks, legal violation risks, distorted propertyreports, endangered asset safety, and malpractice. In addition, we require the descriptionof specific risk control objectives and measures to improve the efficiency of internal riskmanagement.During the reporting period, the audit work carried out by our Internal Audit Departmentincluded 1 routine audit, 12 routine departure audits, 3 special departure audits, and 7 specialaudits. We strictly audited contract performance, related transactions, and other key aspects,timely handled violations or missed appointments, and boosted the continuous improvementof our business process and operations system.
Risk Management
1. Social contribution value per share = (net profit of the company + tax revenue created for the country in the year + wages paid to employees + loan
interest paid to creditors such as banks + external donations and other value created for other stakeholders - other social costs caused by environmentalpollution or other reasons)/total number of shares of the company.
We regard compliant operation ofour business as the cornerstone ofsteady development. To this end, wehave established a comprehensivecompliance management systemand we continue to improve it. Weactively identify compliance risksin the production and operationprocess with a focus on the riskpoints involved in anti-corruption,anti-bribery, environment, and laborrights.We have established a multi-level monitoring and auditingmechanism, and set up a varietyof compliance reporting channelsincluding the both internaldocumentEmployee Monitoringand Reporting ManagementSystemand an external reportinghotline and a reporting mailbox.We take every report seriously andresponsibly, and our Internal AuditDepartment will investigate andhandle related issues.
ComplianceManagementSystem
Compliance Operation
◎Employee reporting process
YearDividends per 10 shares (RMB) (tax included)
20195.9020207.2020218.60
Year201920202021
Social contribution per share
5.596.197.24
Whistleblower protection
Register
Accept
Investigate
Form aninvestigative
team
Report
?The report-handling personnel keep the relevant information of the whistleblower and the specific content of thereported matter strictly confidential. Investigations are carried out without revealing the whistleblower's identity.Unless it is agreed by the whistleblower, the whistleblower's name, department, contact information and otherinformation will not be disclosed under any circumstances.
?Report-handling personnel who violate confidentiality regulations or improperly perform their duties will be punishedseverely based on the circumstance and consequence. Where it constitutes a crime, they shall be handed over tojudicial organs.
?No unit or individual shall intercept or detain the whistleblower's report under any pretext, nor shall they take anymeans to retaliate against the whistleblower. Those who retaliate against the whistleblower or their family members,once verified, will be punished severely in accordance with the relevant regulations of the company. Where itconstitutes a crime, they will be handed over to judicial organs in accordance with the law.
?Where a reported matter is verified to be true, and those who violated the laws and disciplines are punished properlythereby recovering or reducing losses for the company, the Internal Audit Department may suggest commendingor rewarding the whistleblower in accordance with relevant regulations of the company. In order to protect thewhistleblower, the reward, after being approved by the Office of the General Manager, shall be distributed in a non-public manner unless it is agreed on by the whistleblower.
?The Internal Audit Department registers the whistleblower andrecords all reported matters.
?The Internal Audit Department holds internal discussions todetermine whether the investigation conditions are met and whetherthe matter is significant.
?The Internal Audit Department reports significant reported mattersto the Deputy General Manager, the General Manager, the BoardChairman or the Audit Committee in a timely manner.
?The Internal Audit Department forms an investigation team,designates the team leader, and begins the investigation.
?If the investigation requires the support or participation of otherfunctional departments, business units, or subsidiaries, thoseorganizations shall provide support.
?The investigation team issues an investigation report, submits itto the Office of the General Manager, and handles it according torelevant regulations of the company.
?Significant matters need to be submitted to the Audit Committeeand to the Board of Directors
?For reported matters that violate national laws, they shall behanded over to judicial organs.
?The investigation team leader begins the investigation
?The investigation shall be completed within 30 days after the report isaccepted. Where it is difficult to advance the audit schedule or thereis a major challenge, the investigation may be prolonged but shall notbe longer than 90 days
Routine audit
Special departureaudits
Special audits
Routine departureaudits
ProyaEnvironmental, Social& Governance (ESG) Report 2021
Key quantitative performance
During the reporting period, we organized training activities on relevant laws, regulations, and compliance practices for keyemployees, including two training sessions for the Marketing Department regarding the practical operation standards of theAdvertising Lawand one training session for the Human Resource Department regarding the key compliance points in theEmployment Management Practice.Those training sessions emphasized the combination of compliance risk control and routineoperation, and improved employees' awareness of compliant management.
We attach great importance to the code of ethics in business operations and seek to eradicate corruption within the company.During the reporting period, we did not encounter any incident related to corruption, bribery, extortion, fraud, or money laundering,nor did any lawsuit arising from the above matters occur.As for employees, the Thirty-Two Rules of Proya clearly stipulate that employees shall be "honest, upright, creditworthy, andtrustworthy". In addition, we require personnel within the Purchasing Department to sign the Commitment to the Code of Ethics andCode of Conduct for Purchasing Personnel, and strictly control the risk of occupational bribery during procurement management.As for procurement from key suppliers and brand cooperation, we require key raw material and packaging material suppliers tosign theCommitment to Business Principlesand we require brand promotion partners to sign theCooperation Agreement inIntegrity. We strictly abide by anti-corruption and anti-bribery principles, and clearly specify the definition of commercial briberyand penalties in our procurement contracts. For suppliers who violate our anti-corruption principles, we will blacklist them; if thesupplier's behavior constitutes a crime, we will hand them over to state agencies to investigate their criminal responsibility.
We strictly abide by thePatent Law of the People's Republic of China, theCopyright Law of the People's Republic of China, theTrademark Law of the People's Republic of China, and other laws and regulations and have developed a line of intellectual propertymanagement rules including theIntellectual Property Management System, theTrademark Management Measures, and thePatentManagement Measures to make sure we don't infringe on the intellectual property rights of others while protecting our own.
During the reporting period, our Intellectual Property Department launched special crackdowns and filed lawsuits against violatingand infringement acts, covering 20 stores infringing on our "Elastic Brightening" essence design patent with an amount up to morethan RMB 40 million. The Public Security Bureau investigated and confiscated more than 5,000 products with a counterfeit registeredtrademark of Proya. TIMAGE complained and removed 980 titles and obtained 159 notarized pieces of evidence.
Anti-Corruption and Business Ethics
Protection of Intellectual Property Rights
◎Intellectual property management measures
Intellectual property rights advocacy
No infringement on the intellectual property rights of others
Protecting our intellectual property rights
?We have set up an intellectual property training and publicity fund, and carry out annual training andpublicity campaigns for intellectual property protection.
?Before we initiate a new research and development project, proceed with new product developmentactivities, and introduce or export new technologies and products, we must conduct intellectualproperty searches to make sure we don't infringe on the intellectual property rights of others.
?In the course of an R&D project, we protect the intellectual property rights generated in the R&Dprocess in a timely manner.
?We actively carry out intellectual property registration, filing, application,, and other appropriateconfirmation work.
Key quantitative performanceEnvironmental data
Disclosure itemUnit201920202021
Number of punishments for violatingenvironmental protection laws and regulations
Piece(s)000Use of resources
Power consumptionMWh9,228.9011,230.1612,161.96Power consumption per RMB10,000 of revenueKWh/RMB10,00029.5529.9326.25Total natural gas consumptionCubic meter293,551.00306,164.00295,436.00Natural gas consumption per RMB10,000 ofrevenue
Cubic meter/RMB10,0000.940.820.64Gasoline consumption for self-owned vehiclesLiter241,083.61269,292.04291,954.00Diesel consumption for self-owned vehiclesLiter47,425.0052,932.0042,614.00Total water consumptionCubic meter167,132.30183,856.00208,614.90Water consumption per RMB10,000 of revenueCubic meter/RMB10,0000.540.490.45Total consumption of recycled waterCubic meter13,000.0013,800.0015,000.00Proportion of water recycled and reused in totalwater consumption
%7.787.517.19Total usage of packaging materials used onfinished products
Ton5,516.006,528.006,060.00Usage of packaging materials used perRMB10,000 of revenue
kg/RMB10,00017.6617.4013.08
Emissions
Total waste gas emissions
Cubic meter9,288,000.0010,238,400.0016,368,000.00Industrial wastewater dischargeCubic meter13,000.0012,800.0013,500.00Chemical oxygen demand (COD) emissions inwastewater
Kilogram650.00640.00675.00Biochemical oxygen demand (BOD) emissions inwastewater
Kilogram130.00128.00135.00Ammonia nitrogen (NH
-N) emissions inwastewater
Kilogram65.0064.0067.50Total amount of general waste generatedTon560.00587.68602.65Discharge of general waste per RMB10,000 ofrevenue
kg/RMB10,0001.791.571.30Total amount of hazardous waste generated
Ton0.951.301.70
ProyaEnvironmental, Social& Governance (ESG) Report 2021
Key quantitative performance
Disclosure itemUnit201920202021Discharge of hazardous waste per RMB10,000 ofrevenue
kg/RMB10,0000.00300.00350.0037Total greenhouse gas emissions
Tons of carbon dioxideequivalent
6,894.558,216.258426.86Scope 1 greenhouse gas emissions
Tons of carbon dioxideequivalent
1,264.001,364.731,360.77Scope 2 greenhouse gas emissions
Tons of carbon dioxideequivalent
5,630.556,851.527,066.10Greenhouse gas emissions per RMB10,000 ofrevenue
Kg of carbon dioxideequivalent/ RMB10,000
22.0721.9018.19Note:
[1] The resource data in Proya Sustainability Report 2020 were from the Huzhou Production Base (skin care factory); in this year, we improved the caliber ofdata, covering the office and the R&D centers of the Proya headquarters building and the Huzhou production base (skin care factory), as well as the make-up product factory at Proya Headquarters. As a result, the consumption of electricity and water was increased.[2] The emissions data were from the skin care factory; data from the make-up product factory were not included.[3] The total amount of hazardous waste and waste gas emissions increased slightly in 2021 because of new product development, increased laboratorytesting, and expanded scale of production.[4]The greenhouse gas emissions are calculated based on the Guidelines on Enterprise Greenhouse Gas Emissions Accounting and Reporting?PowerGeneration Facilities (Revised in 2022) issued by the Ministry of Ecological Environment for the calculation method of greenhouse gas emissions. In theGuidelines, the electricity emission factor for 2019-2020 is 0.6101 kilograms of carbon dioxide equivalent/kWh, and the electricity emission factor for 2021 is
0.5810 kilograms of carbon dioxide equivalent/kWh.
Compared with Proya Sustainability Report 2020, this year, we improved the statistical scope of energy consumption (see Note), and statistics for gasolineand diesel consumption by self-owned vehicles was added as well. Based on the updated data on energy and electricity emission factors, we made aretrospective adjustments of data from 2019 to 2020.
Product and customer responsibility
Disclosure itemUnit201920202021
Number of complaints received concerningproducts and services
Piece(s)349348310Complaint handling rate%100%100%100%Number of incidents of products and services inviolation of laws and regulations related to healthand security
Piece(s)000Number of violations of laws and regulations inmarketing (including advertising, promotion, andsponsorship)
Piece(s)000Number of incidents of violations of regulationsand voluntary guidelines regarding product andservice information and labeling
Piece(s)000Number of incidents of violations of regulationsregarding customer privacy protection
Times000
Supply chain management
Employee data
Disclosure itemUnit201920202021Total number of suppliers
Supplier(s)598538604Number of suppliers in the Chinese MainlandSupplier(s)592532599Number of suppliers in Hong Kong, Macau, Taiwan,and overseas regions
Supplier(s)665Percentage of suppliers evaluated for environmental,labor, ethics, etc.
%19.5020.8217.88Percentage of suppliers having passed environmental,labor, ethics assessments
%94.8799.1196.30Note:
[1] The statistics of supplier data are for production materials, service suppliers, and offline sales, excluding suppliers of brand marketing.[2] Proportion of suppliers who have been evaluated for environment, labor, and ethics = number of suppliers who have been evaluated for environment,labor, and ethics/total number of suppliers (end of period)[3] Proportion of suppliers who have passed environmental, labor, and ethical assessments = number of suppliers who have passed environmental, labor,and ethical assessments/number of suppliers who have been assessed for environmental, labor, and ethics
Disclosure itemUnit201920202021
Employment
Number of employeesPeople2,8442,8982,844
Number of male employees
People561625642Number of female employees
People2,2832,2732,202Number of employees aged below 30People8901,0701,192Number of employees aged 30 to 50People1,9031,7921,612Number of employees aged above 50People513640Number of employees working in the ChineseMainland
People2,8442,8982,844Number of employees working in Hong Kong,Macau, Taiwan, and overseas regions
People000Number of primary employeesPeople2,5962,6472,598Number of middle-management employeesPeople235238231Number of senior management employeesPeople131315
ProyaEnvironmental, Social& Governance (ESG) Report 2021
Key quantitative performance
Note:
[1] Employee data includes only full-time contracted employees, excluding employees under service dispatch and part-time employees[2] Following data retrospection, the data of male employees and female employees in 2020 have been revised[3] Proportion of female employees in middle management = number of female employees in middle management/number of employees in middlemanagement (end of period)[4] Proportion of female employees in senior management = number of female employees in senior management/number of employees in seniormanagement (end of period)[5] Since the statistical caliber of data on training newly included the data of offline BA (Beauty Advisor) in 2021, the employee training coverage andaverage hours of training for employees had increased dramatically[6] Employee training coverage = number of employees in this category trained during the reporting period/total number of employees in this category (endof period)[7] The average hours of training for employees = the total hours of training for employees in this category/total number of employees in this category (endof period)[8] Employee turnover rate = number of employees in this category departing during the reporting period/total number of employees in this category (endof period)
Disclosure itemUnit201920202021
Proportion of female employees in middlemanagement
%51.4957.5660.17Proportion of female employees in seniormanagement
%15.3815.3820.00Number of R&D employeesPeople172196159Number of penalties for violations of employmentand labor laws and regulations
Piece(s)000Occupational health and safetyWorking days lost due to work-related injuriesDay(s)000Number of employees died due to work-relatedinjuries
People000Proportion of employees died due to work-relatedinjuries
%000Employee training and developmentEmployee training coverage
5,6
%12.8013.2949.75Proportion of male employees covered by thetraining
%35.1229.7628.50Proportion of female employees covered by thetraining
%7.318.7555.95Proportion of primary employees covered by thetraining
%8.5111.1852.23Proportion of middle-management employeescovered by the training
%60.8537.3925.11Proportion of senior management employeescovered by the training
%000Average hours of training for employees
5,7
Hour(s)1.731.8619.31Average hours of training for male employeesHour(s)4.764.174.00Average hours of training for female employeesHour(s)0.991.2323.77Average hours of training for primary employeesHour(s)0.581.2320.60Average hours of training for middlemanagement
Hour(s)14.608.976.03Employee turnover rate
%26.5526.0926.79Turnover rate of male employees%24.0620.3218.22
Community philanthropy
Disclosure itemUnit201920202021Amount invested in community philanthropy
Million4.9515.013.71Amount of donations
Million4.9515.003.70Total hours of volunteer service of employees
Hour(s)0570Note:
[1] The investment in community philanthropy includes funds and materials donated by Proya to charitable activities in the community.[2] The amount of donations was relatively large in 2020 because we set up a "15 million charitable fund" in 2020 specially to be used for epidemicprevention and control.[3] In 2021, volunteer services were suspended due to the ongoing epidemic.
Disclosure itemUnit201920202021Turnover rate of female employees%27.1627.6729.29Turnover rate of employees aged below 30%13.9311.7827.35Turnover rate of employees aged between 30 to 50%30.8534.1526.61Turnover rate of employees aged above 50%86.2750.0017.50
ProyaEnvironmental, Social& Governance (ESG) Report 2021
Benchmarking index table
Benchmarking index table
Index Table of the Guidelines for the Self-Regulatory Supervision of Listed Companies on the ShanghaiStock Exchange No.1 - Standardized Operation (2022)
Terms and disclosuresReport chapters
8.1 Overview
Environmental, social, and governancesystem
8.2 Operating principlesCompliance operations
8.3 Social responsibility planning and working mechanism
Sustainable development conceptEnvironmental, social, and governancesystem
8.4 Social contribution per shareKey quantitative performance
8.5 Disclosure of social responsibility reportReport description
8.6: (1)Construction of a social responsibility system
Environmental responsibilityProduct and customer responsibilityEmployee responsibilitiesCommunity responsibility
8.6: (2)
Deficiencies and problems existing in thefulfillment of social responsibilities
We will formulate the sustainabledevelopment plan of 2022 and developmedium and long-term developmentplans and management goals
8.6: (3)Improvement measures and specific schedule
We will formulate a sustainabledevelopment plan for 202, and developmedium and long-term developmentplans and management goals
8.7 Rights and interests of employeesEmployee rights and benefits
8.8: (1)
Compliance with environmental protection lawsand industrial standards
Environmental management system
8.8: (2)Environmental protection planEnvironmental responsibility
8.8: (3)Use of natural resourcesResource conservation
8.8: (4)Disposal of pollutantsEmissions management
8.8: (5)Pollution prevention and control facilitiesEmissions management
8.8: (6)
Payment of taxes and fees related toenvironmental protection
Environmental management system
8.8: (7)Supply chain environmental securityResponsible supply chain
8.8: (8)Other environmental protection responsibilitiesEnvironmental responsibility
8.9: (1)
Policies, objectives, and results of environmentalprotection
Environmental responsibility
8.9: (2)Total annual resource consumptionKey quantitative performance
8.9: (3)
Environmental investment and environmentaltechnology development
Not involved
Terms and disclosuresReport chapters
8.9: (4)
Type, quantity, concentration, and destination ofpollutants discharged
Emissions managementKey quantitative performance
8.9: (5)
Construction and operation of environmentalprotection facilities
Not involved
8.9: (6)
Waste treatment, disposal, recycling, andcomprehensive utilization of discarded products
Emissions management
8.9: (7)
Voluntary agreements signed with environmentalprotection authorities
Not involved
8.9: (8)
Rewards granted by environmental protectionauthorities
Not involved
8.9: (9)Other voluntarily disclosed informationNot involved
8.10: (1)
New construction, renovation, expansion, ormajor investments
Not involved
8.10: (2)
Violation of environmental laws and regulationsand penalties
Not involved
8.10: (3)
Major lawsuits on environmental issues or assetsseized, frozen, detained, pledged, mortgaged
Not involved
8.10: (4)Key pollutant discharge unitsNot involved
8.10: (5)
Impact of newly-promulgated laws andregulations on the company
Not involved
8.10: (6)Major environmental protection eventsNot involved
8.11 Environmental inspectionEnvironmental responsibility
8.12 Key pollutant discharge units
We are not included as a key pollutantdischarge unit
8.13: (1)
Law, regulations, and industrial standards ofproduct safety
Product quality and safety
8.13: (2)Production environment and processProduct quality and safety
8.13: (3)
Product quality safety guarantee mechanism andaccident emergency response plan
Product quality and safety
8.13: (4)
Other responsibilities related to production andproduct safety
Product quality and safety
8.14: (1)
Employee management system and punishmentfor violations
Employee rights and benefits
8.14: (2)
Prevention of occupational hazards andsupporting safety measures
Occupational health and safety
8.14: (3)Employee trainingEmployee training and development
8.14: (4)
Other responsibilities for protecting employeerights and interests
Employee rights and benefits
8.15 Scientific ethicsResearch, development, and innovation
ProyaEnvironmental, Social& Governance (ESG) Report 2021
Benchmarking index table
GRI Index Table of Sustainability Reporting StandardsGRI IndexReport chapters
101Report description
Organization profile102-1About Proya Cosmetics Co., Ltd.102-2About Proya Cosmetics Co., Ltd.102-3About Proya Cosmetics Co., Ltd.102-4About Proya Cosmetics Co., Ltd.102-5About Proya Cosmetics Co., Ltd.102-6About Proya Cosmetics Co., Ltd.102-7About Proya Cosmetics Co., Ltd.102-8Key quantitative performanceStrategy102-14Co-Founders’ Message102-15Co-Founders’ MessageEthics and integrity102-16About Proya Cosmetics Co., Ltd.102-17Compliance operationCorporate governance102-18
Corporate governanceEnvironmental, social, and governancesystem102-19
Environmental, social, and governancesystem102-20
Environmental, social, and governancesystem102-21
Environmental, social, and governancesystem102-22Corporate governance102-29
Environmental, social, and governancesystemStakeholder engagement102-40
Environmental, social, and governancesystem102-43
Environmental, social, and governancesystem102-44
Environmental, social, and governancesystem
GRI IndexReport chapters
Reporting practice
102-45Report description102-46
Environmental, social, and governancesystem102-47
Environmental, social, and governancesystem102-48Key quantitative performance102-49
Environmental, social, and governancesystem102-50Report description102-51Report description102-52Report description102-53Report description102-55Benchmarking index table
Economy103: Management approach 2016103-1Compliance operation103-2Compliance operation103-3Compliance operation205: Anti-corruption 2016205-2Key quantitative performance205-3Key quantitative performanceEnvironmental103: Management approach 2016103-1
Working together for a beautiful planetEnvironmental responsibilitySupply chain responsibility103-2
Working Together to Protect OurBeautiful PlanetEnvironmental responsibilitySupply chain responsibility103-3
Working Together to Protect OurBeautiful PlanetEnvironmental responsibilitySupply chain responsibility
301: Materials 2016
301-1Environmental responsibility
GRI IndexReport chapters302: Energy 2016302-1Key quantitative performance302-3Key quantitative performance305: Water resources 2016303-1Key quantitative performance303-2Environmental responsibility303-3Key quantitative performance305: Emissions 2016
305-1Key quantitative performance305-2Key quantitative performance
306: Sewage and waste 2016306-1Key quantitative performance306-2Key quantitative performance307: Environmental compliance 2016307-1Key quantitative performance308: Supply chain environmental assessment 2016308-1Key quantitative performanceSociety103: Management approach 2016103-1
Build a happy workplace for employeesBrand Power Promotes SocietyWorking Together to Protect OurBeautiful PlanetEnvironmental responsibilityProduct and customer responsibilitySupply chain responsibilityEmployee responsibilities103-2
Build a happy workplace for employeesBrand Power Promotes SocietyWorking Together to Protect OurBeautiful PlanetEnvironmental responsibilityProduct and customer responsibilitySupply chain responsibilityEmployee responsibilities
GRI IndexReport chapters
103-3
Build a happy workplace for employeesBrand Power Promotes SocietyWorking Together to Protect OurBeautiful PlanetEnvironmental responsibilityProduct and customer responsibilitySupply chain responsibilityEmployee responsibilities
401: Employment 2016
401-1Key quantitative performance401-2
Build a happy workplace for employeesEmployee responsibilities
403: Occupational health and safety 2018
403-1Employee responsibilities403-5Employee responsibilities403-6Employee responsibilities403-7Employee responsibilities403-9Key quantitative performance404: Training and education 2016
404-1Key quantitative performance404-3Key quantitative performance406: Anti-discrimination 2016406-1Employee responsibilities408: Child Labor 2016408-1Employee responsibilities409: Forced and compulsory labor 2016409-1Employee responsibilities414: Supplier assessment 2016414-1Key quantitative performance416: Customer health and safety 2016416-1Key quantitative performance416-2Key quantitative performance
418: Customer privacy 2016418-1Key quantitative performance
ProyaEnvironmental, Social& Governance (ESG) Report 2021
Report description
Report descriptionThe Proya Environmental, Social and Governance (ESG) Report 2021 (hereinafter referred to as "the Report") is the second ESGreport issued by Proya Cosmetics Co., Ltd. following the Proya Sustainability Report 2020 released in 2020. This Report expands onthe principles and performance of ESG governance of Proya Cosmetics Co., Ltd. in 2021 and covers the environmental, social, andgovernance issues of concern for important stakeholders.
This report was prepared in accordance with the Guidelines for the Self-Regulatory Supervision of Companies Listed on theShanghai Stock Exchange No.1 - Standardized Operation (2022) and with reference to the Content and Format of InformationDisclosure by Companies Offering Securities to the Public No.2 - Content and Format of Annual Reports (Revised in 2021), and theGRI Sustainability Reporting Standards.
This report defines the content to be reported according to the principles of stakeholder inclusion, sustainable developmentbackground, materiality, and integrity specified in GRI Sustainability Reporting Standards, with reference to the following principlesthat define and improve the quality of the report.:
Reporting period: This Report is an annual report and covers the period from January 1, 2021 to December 31, 2021. Someinformation is beyond this scope and has been explained accordingly.Organizational scope: This Report covers Proya Cosmetics Co., Ltd. and its affiliates and includes only our cosmetic business. Thestatistical scope of some data differs from this and has been explained in the data section.
Basis of preparation
Reporting principles
Report
Principle of accuracyThis report describes the basis of the calculations andassumptions for the caliber of information and data provided,and indicates the basic assumptions that the estimated dataare based on.
Principle of balanceBased on this principle, this report reflects objective factsand discloses indicators involving both positive and negativeinformation.
Principle of clarityThis report is published in Simplified Chinese and English, andcontains a benchmarking index table and a terminology indextable for stakeholders to better understand the information.
Principle of comparabilityThis report discloses key quantitative performance indicators,explains the meaning of the indicators, and indicates the basisfor its calculations and assumptions. Meanwhile, the indicatorsused in different reporting periods are as consistent aspossible to reflect the trend of performance levels.
ReliabilityThe data and examples in this report come from originalrecords or financial reports reflecting the actual operationof the company. The board of directors guarantees that thisreport contains no false records, misleading statements, ormajor omissions.
TimelinessThis report is an annual report. We make every effort to publishit as soon as possible after the end of the reporting year, andwe indicate the scope covered by the report under“Scope ofReport”.
The scope of entities in the consolidated statement of the company is as follows:
Company name
Whether to beincluded in this report
Hangzhou Proya Trading Co., Ltd.YesHannah Cosmetics Co., Ltd.YesAnya (Huzhou) Cosmetics Co.,Ltd.
YesYueqing Laiya Trading Co., Ltd.YesHuzhou Youzilai Trading Co., Ltd.YesMijing Siyu (Hangzhou) CosmeticsCo., Ltd.
YesZhejiang Beautiful ValleyE-Commerce Co., Ltd.
YesHuzhou Chuangdai ElectronicCommerce Co., Ltd.
YesHapsode (Hangzhou) CosmeticsCo., Ltd.
YesHapsode Co., Ltd.YesHuzhou Hapsode Trading Co.,Ltd.
YesDanyang Hapsode CosmeticsTrading Co., Ltd.
YesHong Kong Keshi Trading Co.,Ltd.
YesHong Kong Xinghuo Industry Co.,Ltd.
YesHong Kong Zhongwen ElectronicCommerce Co., Ltd.
YesHong Kong Sunrise Trading Co.,Ltd.
YesHong Kong Wanyan ElectronicCommerce Co., Ltd.
YesHuzhou YNM Cosmetics Co., Ltd.YesKorea YNM Cosmetics Co., Ltd.YesNingbo Timage Cosmetics Co.,Ltd.
YesNingbo Keshi Trading Co., Ltd.YesZhejiang Beute Cosmetics Co.,Ltd.
YesO&R Co., Ltd.YesNingbo Tangyu Trading Co., Ltd.Yes
Company name
Whether to beincluded in this reportHangzhou Weiluoke CosmeticsCo., Ltd.
YesHangzhou OOMS Trading Co.,Ltd.
YesHuzhou Poyun ElectronicCommerce Co., Ltd.
YesProya (Hainan) Cosmetics Co., Ltd.YesSinguladerm (Hangzhou)Cosmetics Co., Ltd.
YesHangzhou Proya CommercialManagement Co., Ltd.
NoHangzhou Tiedingxian CateringManagement Co., Ltd.
NoHangzhou Tielexinaini CateringManagement Co., Ltd.
NoHangzhou Xiakeba CateringManagement Co., Ltd.
NoHangzhou Luxiaotie Fitness Co.,Ltd.
NoHuzhou Niuke Technology Co.,Ltd.
NoHangzhou Wanyan Culture MediaCo., Ltd.
NoNingbo Proya EnterpriseConsulting Management Co., Ltd.
NoZhejiang Qingya Culture and ArtCommunication Co., Ltd.
NoXuzhou Proya InformationTechnology Co., Ltd.
NoProya Europe SARLNoShanghai Zhongwen ElectronicCommerce Co., Ltd.
NoBoya (Hong Kong) InvestmentManagement Co., Ltd.
NoHangzhou Yizhuo Culture MediaCo., Ltd.
NoGuangzhou Qianxi NetworkTechnology Co., Ltd.
No
ProyaEnvironmental, Social& Governance (ESG) Report 2021
The data and examples in this report come from original records or financial reports reflecting the actual operation of the company.The financial data stated in the report are in RMB. If financial data is inconsistent with the financial statement in our annual report,the annual report shall prevail.
Proya promises that the content of this report does not contain any false records, misleading statements, or major omissions. Proya'sBoard of Directors bears overall responsibility for ESG management and reporting.Proya Cosmetics Co., Ltd. involved in this Report has been searched in Shanghai Qingyue Credit Database, and no negativeenvironmental information was found.
If you have any question related to this Report or Proya's ESG governance, please contact us by the sending e-mails toproya-group@proya.com.
Data
Reliability guarantee
Contact us
The abbreviations in the Report are explained as follows:
AbbreviationDefinitionProya, the company, we (us)Proya Cosmetics Co., Ltd.Skin care factoryHuzhou Branch of Proya Cosmetics Co., Ltd.Makeup factoryZhejiang Beute Cosmetics Co., Ltd.
Add: Proya Building, No.588 Xixi Road, Xihu District, Hangzhou, Zhejiang ProvinceE-mail: proya-group@proya.comTel: 0571- 8735 2850Web: www.proya-group.com
Proya Cosmetics Co., Ltd
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