Contents
Message from ChairmanAbout Marubi
AppendixMarubi in 2023ESG Management
Theme Spotlight: EmpoweringResilient Growth with DigitalIntelligence
952113
Enhancing Governance and SolidifyingDevelopment FoundationsStrict Adherence to Fundamental Principlesand Reinforcement of Risk BarrierOperating with Integrity and Adhering toBusiness EthicsBe Proactive to Ensure Information Security
Leading with Technology and Decoding theBeauty of DiversityEscorting Innovation and SafeguardingIntellectual Property RightsIngenuity Embodies Quality and Guarding thebeauty of qualityDelivering Exceptional Service and Upholdingthe Promise of BeautySolidarity to Promote the Development ofCosmetics IndustryCollaborating with Partners to Folster aBeautiful Ecosystem
Embracing Green Values and ImprovingEnvironmental ManagementLow-Carbon Transformation to AddressClimate ChangeClean Production to Reduce EnvironmentalFootprint ReductionEnvironmentally Friendly and ResourceConservationPromoting Green Practices and AdvocatingGreen O?ceEcological Integration for the Creation of GreenBuildings
Promoting Equity and Diversity for Employee
Rights and Interests
Empowering Employees to Achieve Their
Dreams
Enriching Workplace Experiences with Intimate
Care
Safeguarding Health and Safety through
Secure Production Practices
Gratitude to Society and Fostering Community
Prosperity
Robust Operation andBuilding a SustainableBeauty Power
Ingenuity Research toSafeguard the Beauty ofthe Skin
Protecting theEnvironment andPreserving the Ecology
People-Oriented and
Creating the Beauty of
Harmony
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Message from Chairman
The year 2023 marks the commencement ofcomprehensively embodying the spirit of the
th
National Congress of the Communist Partyof China, a pivotal year for the ascendance ofdomestic beauty brands, and a significant yearfor Marubi to uphold its original aspirations,embrace long-termism, and consistently fuelhigh-quality development through technologicalinnovation, digitization, and green development.In 2023, amidst a landscape of both opportunitiesand challenges, we adhere to the strategy of"customer first, excellent products, exploitationof market advantages, and precise operation",while upholding the core principle of sustainabledevelopment, to continually offer enhancedbeauty solutions to our consumers.Persistence in Scientific and TechnologicalInnovation and Seizing the FutureAs a forerunner in the cosmetics technologycompany in China, we firmly believe thattechnology holds the potential to revolutionizethe world and reshape the industry. We haveconsistently dedicated ourselves to establishinga leading technological core competencyand achieving autonomy in controlling coreingredients with unwavering determination.We have consecutively introduced exclusiveingredients such as "Type I + Type III triplehelix recombinant collagen", "schizophyllanpolysaccharide (SPG)" ,"supramolecular kapok",and core technologies including CelCaper?directional low-temperature cold extractiontechnology and C-PRO buckle reinforcementtechnology, inaugurating a new era intechnological skin care. During the reportingperiod, we have launched supramolecularelastin, successfully registered our inaugural newraw material, "finger lime extract", completedthe international registration of SPG rawmaterials, and surpassed the milestone of 500patent applications, further augmenting ourtechnological prowess.
Sound Governance Escorting the DevelopmentSound corporate governance serves as the foundation for enterprises to achieve long-term sustainable growth. Weconsistently refine our governance framework, enhancing risk mitigation measures and upholding ethical businesspractices. Furthermore, we embark on digital transformations, harnessing innovative technologies like big data and arti?cialintelligence to enhance the quality and efficiency of the product lifecycle management. Additionally, we strengtheninformation security infrastructure, fostering new productive capabilities and fueling the momentum of our corporatedevelopment. During the reporting period, our e?orts were recognized by being selected for the List of Industrial InternetPilot Demonstration Projects in 2023 by the Ministry of Industry and Information Technology, testament to our robust digitalcapabilities.
Green Development Protecting the EcologyWe are committed to the vision of "building a clean, efficient, low-carbon and circular green enterprise, achievingsustainable and green development". Aligning with the national carbon peak and neutrality strategic goals, we consistentlyinvest in environmental protection management, climate change mitigation, resource conservation, emissions control,and green building initiatives. We continuously optimize our environmental management system, streamline productionprocesses, and rigorously oversee the management of energy, resources, and emissions, striving towards a greener andmore sustainable future. During the reporting period, Marubi successfully attained the ISO50001 energy managementsystem certi?cation, and the greenhouse gas emissions decreased by 2.68% year-on-year.People-Oriented, Harmony, and HappinessMarubi adheres to the people-oriented philosophy and strives to enhance HR system comprehensively, encompassing allfacets of recruitment, employment, training, retention, and management. Our objective is to empower employees in theirjourney towards "growth, maturity, and achievements". We prioritize employee welfare, safeguard their health, and fostera workplace environment that is both nurturing and inclusive. Furthermore, we actively discharge social responsibilitiesand collaborate with diverse societal stakeholders to foster a harmonious society through educational donations andcommunity engagement activities.Continuous Progress Embracing a Promising FutureTime stands as the most objective recorder and the greatest author of our journey. Looking forward, we are filled withcon?dence that hard & core technology and "digital intelligence" will emerge as the core competitive edge for cosmeticsenterprises. In 2024, we will continue to forge ahead, embracing a new era of innovation. Guided by the principles of long-termism, we will propel technological advancements, digital intelligence enhancements, and green and harmoniousdevelopment. With ?rmer convictions, more pragmatic approaches, and a renewed spirit of innovation, we will persevereand collaborate with all stakeholders to shape a sustainable and bright future.
CEO of Marubi
Huaiqing Sun
About Marubi
Guangdong Marubi Biotechnology Co., Ltd. was established in 2002 and listed on theShanghai Stock Exchange in 2019. The headquarter and factory are located in Guangzhou,China.Marubi commits to the R&D, design, production and sale of cosmetics based on researchon skin science and biological science. Its brands mainly cover the fields of anti-aging,functional skin care and make-up with di?erentiated brand positioning, to meet the needsof consumers of di?erent ages and preferences. Following the principle of "using the bestof the world to make the best of China", Marubi develops high-quality products based onthe world's leading technologies, takes the long-termism strategy as the guiding direction,focuses on the mission of "technology-driven beauty and health", and adheres to theoperation combining "technology + brand + digital intelligence", aiming to build a globallycompetitive cosmetics company.
CompanyOverview
Boasting robust R&Dcapabilities and systems
Marubi, a skincare brand with over 20 years of experi-ence, focuses on eye care and anti-aging, positioningitself ?rmly in the high-end and medium-end market.It has emerged as a leading domestic brand withhigh-end and medium-end positioning and with aconsiderable market share. Passional Lover, a cut-ting-edge makeup brand, excels in foundation prod-ucts and champions high quality with a minimalistapproach. Chunji, adhering to the philosophy offood extract technology, and suitability for sensitiveskin, positions itself as a popular functional skincarebrand.Marubi owns a 5C factory, with a construc-tion area of 50,000 square meters and asecond intelligent factory currently underconstruction. It established an e?cient andcollaborative supply chain managementsystem that supports rapid and flexibleproduction and circulation through digitaltransformation.
Marubi built a multi-channel sales networkcovering online platform e-commerce,content e-commerce, o?ine daily chemicalspecialty stores, department store countersand beauty salons.
CompetitiveAdvantages
Possessing di?erentiatedbrand assets and precisepositioning in eye care
Equipped with strongproduction capabilities andsupply chain management
expertise
Boasting a sales system that
combines multi-channelcollaborative developmentwith ?ne management
The Industrial Ecological Layout of Beauty and Health
Extremely minimalist,cutting-edge makeup
foundation
Food extract technology,suitable for sensitive skin
Focus on eye care, andengaged in anti-agingresearch for 20 years
Oriental Eye Care ExpertMarubi
Passional Lover
Chunji
Marubi achieves closed-loopresearch and transformationalutilization of core raw materialsalong with innovative techno-logical achievements.
Corporate CultureNational High-Tech EnterpriseNational Intellectual Property Demonstration EnterpriseCMA Quali?cation Certi?cationGuangdong Bio-Skincare Engineering Technology Research CenterGuangdong Industrial Design CenterGuangdong Enterprise Technology CenterGuangdong Excellent "Specialized and New" Small and Medium-sized EnterpriseChina Patent Award - Four Excellence AwardsGuangzhou Headquarters EnterpriseSpecial Prize of Scientific and Technological Progress Awards ofGuangdong Cosmetics AssociationGuangzhou Post-Doctoral Innovation Practice BaseGuangzhou Green FactoryGuangzhou Excellent Cleaner Production Enterprise
Quali?cations and Honors
Origin of "Marubi"
View of cooperation
View of responsibility
EighteenViews ofMarubi
View of learningView of value
View of ideal
View of career
Vision of Marubi
Mission of Marubi
The name "Marubi" comes from aphilosophical thinking of orientalaesthetics–roundness is beauty.In Shuo Wen Jie Zi, "Wan" means"roundness", and "Wan Mei" (Marubi)means "roundness is beauty"
We will always be with our
customers to go through
thick and thin together
We will always be with ourcustomers to go through thickand thin together
Learn during the lifetime, andapply what we have learned
Self-disciplined and committed to the society
We are far from perfect, but ourpursuit of perfection will neverstopProfessional, attentiveand dedicated
Be a globally competitivecompany and make the worldbeautiful
Drive the beauty and healthindustry with technology, anduse the best of the world tomake the best of China
The brand of Marubiwas born upon theestablishment of theCompany and thecommencement offactory production
Marubi was awardedthe title of high-techenterprise for the firsttime (marking thebeginning of a consec-utive ?ve-year streak ofsuch distinctions)
The "Better Care Fund" waso?cially established. Under thisfund, for every bottle of productsold, RMB 0.1 will be donated topublic welfare from the income,to support education in under-developed areas
Marubi's third-gen-eration Elastin Es-sential Day & NightEye Essence wasreleased, for which itwas the first time topropose the conceptof doing day andnight skincare di?er-ently
Marubi was named as "EyeCare Master"A fund of the global luxurygroup LVMH invested inMarubi
The 5C center of nearly 50,000 square metersin Guangzhou Science City o?cially replacedthe old factory and was put into use, includinga R&D center, a manufacturing center, a train-ing center, an information center and an artcenter, as well as the world's ?rst-class work-shops and manufacturing processes, withsophisticated production and R&D facilitiesimported from Japan, Germany, South Koreaand other countries
As a spokesperson of Marubi,Tony Leung Chiu Wai performed"Eye" emotionally, a three-minutephenomenal classic commercial,which won several awardsMarubi established its subsidiaryin Tokyo, launched a Sino-Japa-nese dual-core R&D center, anddeployed a high-end line
Marubi invested inPassional Lover (ul-timately acquiring a100% shareholding in2019)MARUBI TOKYO Japa-nese Sake Age RenewalFresh Serum, the firsthigh-end line for import-ed Marubi Tokyo withthe original packageswas launched
Marubi's A-shareswere listed on themain board of theShanghai Stock Ex-change, becomingthe first eye creampublic company inChina
Marubi proposed the prod-uct concept of two-in-oneskin care X instrument,and launched a two-in-oneskin care X instrument withblack technology – Multi-ple Peptide Anti-wrinkle EyeCream, marking the brand'sfurther evolution towardsrejuvenation and scientifictechnology
Marubi unveiled a recombi-nant humanized collagen, acollaboration with Jinan Uni-versity and the National Engi-neering Research Center forGenetically Engineered Drugs,which was subsequentlyintegrated into the MarubiRecombinant Collagen series
Marubi completed the buildingof Digitization 1.0 and a digitalmiddle platform on all sidesand achieved whole life cyclemanagement including R&D,procurement, production, sup-ply, market, and sales
Marubi achieved a significantmilestone in channel transforma-tion, transitioning from a primari-ly o?ine distribution-based salesmodel to one that is focused ononline direct sales
The total sales vol-ume of Marubi eyecare products ex-ceeded one millionunits
The brand Chunjiemerged, positionedas "skin care productsof natural ingredients"
Marubi created a classicwith its first generationElastin Essential EyeEssence on the slogan"Bounce, bounce, bounce!Bounce off the crow'sfeet", which was upgradedto the fifth generation in2018
200220112008201220132014
20152017201820192020202120222023
200520062007
Key Milestone
Oriental Eye Care Expert
Anti-aging MasterWith profound market insight, Marubi has capitalized on the surging demand for anti-aging products.By leveraging cutting-edge raw materials and technological resources from both domestic andinternational sources, and adhering to a world-class business philosophy, the company has beensteadfastly engaging in the anti-aging market, particularly focusing on eye care. Its relentless pursuitof unlocking the secrets of youthful skin has enabled it to o?er consumers increasingly precise ande?ective beauty enhancement solutions.
Deeply attuned to the allure of oriental eyes, Marubi specializes in the R&D of eye care products tailoredfor oriental women. Up to now, Marubi has introduced nearly 100 eye care products, encompassingeye creams, eye essences, eye masks, and more, earning it the esteemed title of "Eye Care Master".
Marubi exclusively introduces the groundbreaking theory of "targeted anti-aging". We have comprehensively designeda range of anti-aging products specifically tailored to address phenotypic initial aging, pillar-type degradation aging,endogenous degradation aging, and structural root aging. These products are meticulously crafted to accurately targetand cover the diverse layers and symptoms exhibited by di?erent groups, ensuring a comprehensive approach to anti-aging.
Marubi's ace prod-uct is Eye Multi-Cel-lular Repair Cream
China's first eye-specificsunscreen approved by theMinistry of Health: MarubiEye Sunscreen Lotion
Marubi created a clas-sic with its first gener-ation Elastin EssentialEye Essence on the slo-gan "Bounce, bounce,bounce! Bounce offthe crow's feet!"
Marubi's secondgeneration GoldenElastin Eye Essence
Debuting in Paris, France,Marubi presents itsfourth generation ElastinTime-Locking Firming EyeEssenceTailored for the youth,Marubi Chocolate YouthSilk Eye Cream, marksthe first eye cream spe-cifically designed foryounger skinWith its innovativewarm-sensing tech-nology, Marubi WhiteLove Pure White DarkCircle Reducing EyeCream provides acomforting warmthto help combat darkcircles
Marubi Peptide Protein EyeBag Lifting Essence is arevolutionary formula thateffectively removes eyebags, lifts eye corners, andaccentuates the beauty ofeyesMarubi introduces itsfifth-generation Elas-tin Eye Essence, alsoknown as the LittleSpring Eye Cream
Marubi Multiple Pep-tide Anti-wrinkle EyeCream, a dual-pur-pose beauty solution,functions not only asan eye cream but alsoas a beauty device,helping to rejuvenatethe brand's image
With its high-ac-tivity true retinol,Marubi Little PurpleBomb Eye Creamprecisely targetsand combats eyewrinkles
Marubi CrystalSculpting EyeCream is formu-lated to plumptear troughs, en-hance eye sock-ets, and reducethe appearanceof eye wrinkles
Marubi Pep-tide ProteinLight AgeWrinkle-Re-ducing EyeEssence
Marubi Iris Crys-tallized EssenceEye CreamMarubiChoco-late Ra-dianceSilk EyeCreamLeveraging gene en-gineering technolo-gy, Marubi Recom-binant Collagen EyeCream offers safer,gentler, and moreeffective results forrejuvenated eyes
Marubi's third-generationElastin Essential Day &Night Eye Essence was re-leased, for which it was thefirst time to propose theconcept of doing day andnight skincare differently,with a focus on daytimewrinkle reduction andnighttime anti-wrinkle ac-tion
MarubiSculptureKnife Series
Marubi Dual
CollagenSeries
Marubi 5VPeptideSeries
MarubiChocolateFour-Anti
Series
Marubi Super
MolecularElastin Series
Hollowed CheeksSagging and Displacement
Sensitive, Fragile SkinWrinkles and Sagging
Deformed Facial ContourLooseness, Sagging
Loss of ElasticityVisible Wrinkles
Dryness, Roughness,Dullness, Fine Lines
Collapse
Sagging
InitialAging
Lines
Lines+Sagging
Levels of Aging
Marubi Symptomatic Anti-aging Pyramid
Focusing on Eye Care and Engaging in Anti-aging
1314
Marubi in 2023Key Performance
Economy
2,226
28.52
RevenueYoY growth of revenueRMB million
%
48.93
Net pro?t attributable to shareholdersof the Company
YoY growth of net pro?t attributable toshareholders of the Company
Net assets attributable to shareholders ofthe Company
Proportion of dividend to the net pro?t attributableto shareholders of the Company
%RMB million
4,4543,347Total assets
RMB million
RMB million
Environment
Social Indicator
Energy e?ciency
2,633.70
Total greenhouse gas emissions
tCO
e
12.41
Online shopping mall logistics e?ciencyincreased YoY
Total hours of employee training
Note: The caliber of environmental statistics is 5C Center.
%
0.05
Wastewater emission intensity
Ton/ RMB 10,000
0.24
Water resource e?ciency
Ton/ RMB 10,000
29,081
Satisfaction rate of online mall customerservice%
Hour(s)
67.121.50Proportion of female employeesAmount of investment in social welfare
%
Tons of standard coal/RMB 100million of revenue
RMB million
41.13
Tax amount
RMB million
62,287.6
8.45
R&D investmentProportion of R&D personnelRMB'000%
Number of newly authorized patentsNumber of valid patents per million of revenue
0.12
57.55
Total cash dividend of 2022
RMB million%
Technology & Product Innovation
Brand & Product Recognition
Key Quali?cationsESG Awards
Investor Relations
Guangdong Excellent "Specializedand New" Small and Medium-sizedEnterprise(Guangdong Marubi)
2023 Guoxin Cup · ESG Golden Bull
Award Top 100
2023 Excellent Case of ESGEnvironmental Protection in theFlavor, Fragrance, and Cosmetics
Industry2023 Annual ESG SustainableDevelopment Innovation Pioneer
EnterpriseThe Third "Sustain 100 Sustainable
Fashion Creative List" GreenTechnology - Digital Innovation
Outstanding Practice Award for the2022 Annual Report Earning Releaseof Listed Companies
2023 Listed Company Award- Best Investor RelationsCompany
Green Innovation and ESGSustainable DevelopmentConference - 2023 Best ESG PracticeAward for Listed Companies
Contribution Award for SocialConstruction
2023 Enterprise Award for PromotingHigh-quality Social Development -Outstanding Award
The 24th
China Patent Award forExcellence in Innovation (a Paste
Cosmetic Packaging Device)
Special Prize of Scienti?c andTechnological Progress Awards ofGuangdong Cosmetics Association -Marubi Recombinant Collagen Skin Care
Products
Guangdong High-Quality Cosmetics(Guangdong Premium CosmeticSelection)- Marubi Multi-peptide Firmingand Wrinkle Reducing Eye Cream
2023 New Cosme Awards - LeadingBrand 2022-2023 Super Hit Product -Multi-peptide Skin Firming and WrinkleReducing Eye Cream
Guangdong High-Quality Cosmetics(Guangdong Premium CosmeticSelection)- Marubi Recombinant
Collagen Disposable Essence
2023 Business Creativity Award
Guangdong High-Quality Cosmetics(Guangdong Premium CosmeticSelection)- Marubi Elastin Eye Essence
2023 Annual Star Listed Company
2023 China Cosmetics Blue RoseAward - Annual In?uential Listed
Company
2023 E?ect Marketing Gold Award
Guangdong High-Quality Cosmetics(Guangdong Premium CosmeticSelection) - Marubi Retinol Firming andWrinkle Reducing Eye Cream
2023 Annual Highlight Brand
2023 Brand Quality Award2023 Annual Brand Marketing Award
2023 Outstand?g Product Innovation
Guangdong Famous and Excellent High-tech Product Recognition (for ChocolateSkin Care Products, Whitening andSunscreen Skin Care Products, andBeauty Cosmetics (Base Category))
ICIC Scienti?c and TechnologicalInnovation Anti-aging Product Award- Marubi Multi-peptide Firming andWrinkle Reducing Eye Cream
Golden Spike Award for 2022 InnovationProduct - Marubi Recombinant Collagen
Disposable Essence
Guangzhou Post-Doctoral Innovation
Practice Base
Guangzhou Customized City - CultivatingDemonstration Enterprise
Guangzhou Headquarters Enterprise
Guangdong Excellent "Specializedand New" Small and Medium-sizedEnterprise(Guangzhou Marubi)
Guangdong Industrial Design Center(Marubi Cosmetics Industrial Design
Center)
National High-Tech Enterprise(Renewal
Evaluation)
Guangdong Key Trademark Protection
List (Chunji)
Guangdong Department of Industry andInformation Technology
China Listed Company High-qualityDevelopment Forum
China Flavor, Fragrance, and CosmeticsIndustry Association
Southern Metropolis Daily
WWD CHINA
China Association for Public CompaniesJudongmi
Value Online（Easy board）
Guangzhou Huangpu District SocialConstruction Promotion Association
Guangdong Federation of Industry and
Commerce
National Intellectual PropertyAdministration
Guangdong Cosmetics Association
Guangdong Medical ProductsAdministration Society
C2CC media X New Cosme
Guangdong Medical ProductsAdministration Society
ROI Festival
Guangdong Medical ProductsAdministration Society
Cosmetics Newspaper
China Cosmetics Congress
Top Digital
Guangdong Medical ProductsAdministration Society
Vipshop Holdings
Guangdong Cosmetic Industry High-quality Development Conference
Tiktok E-commerce Golden Marketing
Award
Jingchao Award
Guangdong High-tech Enterprise
Association
ICIC International Cosmetics Congress
Guangdong Cosmetic Science and
Technology Research Association
Guangzhou Municipal HR and Social
Security Bureau
Guangzhou Municipal Bureau of Industry
and Information Technology
Guangzhou Municipal Development and
Reform Commission
Guangdong Department of Industry and
Information Technology
Guangdong Department of Industry and
Information Technology
Guangdong Department of Science andTechnology, Guangdong Department ofFinance, Guangdong Taxation Bureau of
the State Administration of Taxation
Guangdong Trademark Association
1516
Honors and Awards in 2023
1718
Marubi guided by the principle of "becoming an excellent enterprise, but more importantly, becoming an excellent cor-porate citizen", has successfully established a thorough and comprehensive ESG management system, alongside a gover-nance framework that places ultimate responsibility on its Board of Directors, practicing ESG concepts from top to bottomin operations, thereby strengthening the foundation for sustainable corporate growth. Furthermore, throughout its devel-opmental journey, Marubi remains attuned to the pivotal demands of all stakeholders, integrating them seamlessly intoits strategic planning for corporate advancement. This ensures the consistent creation of long-term value for shareholders,customers, employees, and all other relevant parties.
Marubi takes a positive attitude to check the impact of the operation on various stakeholders, establishing acomprehensive and e?cient communication and feedback framework. Furthermore, we foster strong relationships withstakeholders, striving for collaborative growth and mutual prosperity for all parties involved.
ESG Management
ESG Management Structure ResponsibilitiesBoard of Directors
? Authorizes the strategic committee under the board of directors to be responsiblefor speci?c ESG matters. Takes full responsibility for the Company's ESG strategyand implementation.Strategy Committee
? Develops the ESG vision, strategy, and goals, oversees their implementation,regularly reviews the achievement of these goals, and reports to the Board ofDirectors with recommendations.ESG Implementation Committee
? Allocates resources to support the implementation of ESG work, evaluates thee?ectiveness of ESG e?orts, and regularly reports to the strategy committee withsuggestions.Environmental Team, SocialTeam, Governance Team
? Clarifies ESG goals, arranges and implements the coordination of ESG work,oversees the specific implementation of ESG tasks, reports on the progress ofwork to the ESG Executive Committee, and provides suggestions.
StakeholderIssues
Communication andResponse
Government and regulatory
authorities
? Business ethics? Corporate governance? Risk management? Emission and waste management? Water resource management? Energy management? Green packaging
? Institution research? O?cial correspondence? Policy implementation? Information disclosure
Stockholders and investors
? Corporate governance? Sustainable development management? Addressing climate change? Intellectual property protection? Risk management? Business ethics? R&D and innovation
? General Meeting ofShareholders? Information disclosure? Investor hotline? Roadshow
Consumers
? Product quality and safety? Chemical safety and ingredient transparency? High-quality customer service? Information security and privacy protection? Responsible marketing
? Quality management? Customer service? Satisfaction survey
Employees
? Compliance in employment and employeerights protection? Occupational health and safety? Employee training and development? Competitive compensation and bene?ts? Employee care
? Internal communicationplatform? Employee appraisal and? promotion? Employee training
Suppliers/distributors
? Sustainable supply chain? Business ethics? Intellectual property protection? Risk management
? Supplier management? Green procurement
Cooperation organizations
? Product quality and safety? Intellectual property protection? R&D and innovation? Responsible marketing
? Investigation and visit? Technical exchange? Regular meeting
Industry associations
? Promoting industry development? R&D and innovation? Product quality and safety
? Industry forum? Exchange and mutualvisit
Public and community
? Community contribution and charity? Emission and waste management? Addressing climate change? Green packaging? Biodiversity conservation
? Community activity? Voluntary service
Stakeholder Communication
Board of Directors
Strategy CommitteeESG Implementation Committee
Environmentalteam
Social team
Governanceteam
ESG Governance Structure
(Public welfare organizations andresearch institutions, and so on)
1920
Analysis of Material Issues
Marubi aims to become a globally competitive brand,integrating ESG concepts into business operations toachieve sustainable development management, andactively contributing to achievement of UN SDGs.Contribution to UnitedNations SustainableDevelopment Goals (SDGs)SDGsMarubi's action in 2023
Chapters and
Sections? Marubi cares about the physical and mental health of employees and carries out comprehensiveoccupational hazards monitoring every year. All employees take physical examination and safety training.
Safeguarding Health and
Safety through SecureProduction Practices? To promote the education development, Marubi has been giving long-term supports to Chongqing University
of Technology and educators and has donated RMB1.4 million as student grants.
Gratitude to Society andFostering Community
Prosperity
? Marubi always advocates and adheres to gender equality, employment diversity and other concepts, andstrives to create a fair, respectful and diverse working environment. Female employees account for 67.12%,with women holding 25% of senior management positions.? Marubi celebrate Women's Day annually on March 8
thto demonstrate dedication to the welfare of femaleemployees. During the reporting period, Marubi established a nursing room to cater to the convenience ofpostpartum mothers.
Promoting Equity andDiversity for Employee Rights
and Interests? Marubi improves the building of the factory sewage treatment station, reduces waste water discharge, activelycarries out water-saving projects to improve the comprehensive utilization e?ciency of water resources.? During the reporting period, the emulsification pot's cooling system underwent a transformation toincorporate a recirculation mechanism. This innovation allowed for the reuse of emulsi?cation cooling water,resulting in a daily water usage reduction of 165m?.
Environmentally Friendly andResource Conservation? A photovoltaic power station was erected atop the factory roof. During the reporting period, roof-mountedphotovoltaics achieved an installed capacity of 660.06 KW, generating a total of 602,098 kWh of electricity.20,910 kWh was supplied to the power grid, whereas 581,188 kWh was utilized internally. This signi?cantenergy usage reduction translated into a self-imposed reduction of carbon dioxide emissions by 274.03 tons.
Low-Carbon Transformationto Address Climate Change? Marubi respects the employees' rights and interests, establishes a comprehensive salary and welfare systemand provides a diverse growth platform, creating an inclusive and comfortable workplace environment.
? Forced labor and child labor are prohibited.
Promoting Equity andDiversity for Employee Rights
and Interests? Marubi emphasizes investment in R&D, establishes a global open partnership system, and engages ininterdisciplinary practice and makes creative breakthroughs. As of the end of the reporting period, Marubiboasted a team of 93 full-time internal technical experts, with 29.03% possessing a master's degree or higherquali?cations. Furthermore, Marubi had secured the collaboration of 105 external scientists, among themBernard Meunier, a renowned member of the French Academy of Sciences and former president of the FrenchNational Research Council. Mr. Meunier holds the positions of Chief Scienti?c Advisor and Chairman of theAcademic Committee of Scientists within our organization.? During the reporting period, Marubi invested RMB 62.2876 million in R&D, representing 2.80% of revenue.
Leading with Technologyand Decoding the Beauty ofDiversity? Adhering to the principle of open recruitment, fair competition and merit-based employment, Marubi insistson equal employment and opposes all forms of employment discrimination.? During the reporting period, Marubi employed 17 ethnic minority individuals and 4 disabled workers.
Promoting Equity andDiversity for Employee Rightsand InterestsEnriching Workplace
Experiences with Intimate
Care? Marubi emphasizes interaction and communication with consumers, carries out marketing activities inprinciple of responsibility, and advocates rational consumption and scienti?c skin care. During the reportingperiod, Marubi followed up with the customers regarding Marubi's products and Passional Lover foundationliquid and integrated their feedback into the product enhancement plan.? Marubi follows the concept of green procurement, purchases and uses the raw materials that possess greencerti?cations, such as Cosmos and FSC, and adheres to sustainable development standards, including thoseset forth by the Roundtable on Sustainable Palm Oil (RSPO) and the Nagoya Protocol.
? Marubi expands gradually the scope of ESG audits within its supply chain to encompass a broader array ofsuppliers.
Delivering Exceptional Serviceand Upholding the Promise of
BeautyCollaborating with Partners toFolster a Beautiful Ecosystem
? Marubi explores synthetic biology and green manufacturing technology to pursue green and low-carbondevelopment.? Marubi actively promotes energy-saving technology transformation, reduces emissions of three wastes(i.e., waste gas, waste water and waste solid), and integrates environmental protection concepts into dailyoperations. During the reporting period, Marubi successfully implemented energy-saving retro?t projects,resulting in an annual electricity savings exceeding 545,048.65 kWh and a reduction in carbon dioxideemissions by over 256.99 tons.
Leading with Technologyand Decoding the Beauty of
DiversityLow-Carbon Transformation
to Address Climate Change? Marubi prohibits any form of corruption and bribery, requests all relevant parties to sign a commitment letteron integrity and self-discipline, and strengthens the promotion of integrity and self-discipline awareness.During the reporting period, Marubi conducted 4 anti-corruption training sessions, covering all employees.
Operating with Integrity and
Adhering to Business Ethics
Establishment of a materialissue database
Con?rmation and reportingof material issuesImportance assessmentand prioritizationStakeholder research
? Identify a list of ESG issues
relevant to Marubi by con-sidering the ESG background(geographical location,business activities, businessrelationships), standard pol-icies, industry practices, andexpert opinions.
? Adopt the dual-importance
principle to design surveyquestionnaires and invite keyinternal and external stake-holders to complete online oro?inesurveys, rating the im-portance of the ESG materialissues.
?Analyze survey feedback
and scoring results, anddevelop a material issuematrix by considering theimpact of issues on boththe sustainable develop-ment of Marubi and itsstakeholders.
? The ESG Implementation
Committee reviews andacknowledges the highly im-portant issues, reports themto the Board of Directors, andprovides prominent disclo-sure in the annual ESG report.
Analysis Process for Material Topics of Marubi
Environmental protectionmanagementAddressing climatechangeEnergy managementWater resourcemanagementGreen packagingEmission and wastemanagementBiodiversity conservation
Product quality and safetyR&D and innovationSuperior customer serviceChemical safety andingredient transparencyInformation security andprivacy protectionSustainable supply chainResponsible marketing
Employment compliance andemployee rights protectionEmployee training and developmentCompetitive compensation andbene?tsEmployee careOccupational health and safetyPromoting industry developmentCommunity contribution and charity
Corporate governanceRisk managementBusiness ethicsIntellectual propertyprotectionSustainable developmentmanagement
81522
SocietyEnvironmentGovernance
Importance to MarubiLow High
High
Importance to stakeholders
Marubi engages in the identi?cation and analysis of material issues, drawing upon strategic planning, industry trends, stakeholderexpectations, international norms, and best practices within our industry. For the key issues identi?ed, the Company establishestailored management objectives and strategies, presents comprehensive responses in our annual report, and strives tocontinually advance the company's sustainable development.
Committed to fostering the seamless integration and interoperability of information and data throughout its variousbusiness processes, Marubi aims to achieve the shortest path and fastest response in the consumer-centered value chain.This endeavor is driven by the digitization of operational scenarios, enabling the company to deliver superior productsand services to its customers. Since officially commencing its digital transformation in 2020, Marubi has successfullyestablished a comprehensive digital mid-platform from accumulating data assets to visualizing data and empoweringintelligent analysis and decision-making in various business processes, marking a signi?cant leap from informatization tointelligent .
Leveraging a comprehensive digital management platform that encompasses the entire product lifecycle spanningR&D, procurement, production, supply, market, and sales, Marubi has harnessed advanced technologies including deeplearning, knowledge graphs, and natural language processing to devise a suite of intelligent analysis tools tailored tospeci?c business scenarios. These tools o?er profound big data insights into each stage of business operations, furnishingreal-time and precise data support for decision-making. Consequently, Marubi's organizational chain becomes more agileand intelligent, enabling it to deliver satisfying products and services to consumers.
Marubi innovatively introduces the "Four Verticals and Two Horizontals" digitaldevelopment model, a strategy that integrates two horizontal axes with four verticalaxes. This model aims to empower the digital upgrading of the entire business chain.
"Four Verticals and Two Horizontals": Forging a Novel Paradigm for DigitalIntelligence Development
Leveraging Data for Enterprise Governance to Establish a Robust Digital Foundation
Digital and Intellectual Upgrade to Boost E?ciency throughout the Entire Chain
As of the end of the reporting period
During the reporting period
The total number of data analysis indicators
The total annual production volume increased by overThe average delivery cycle stands at Logistics e?ciency experienced a boost of
Production e?ciency witnessed an enhancement of more than
Connection of internal systems
Distinct data analysis sectionsNew business empowerment projects in 2023
Connection of external data platforms235,000
% year-on-yeardaysyear-on-year
12.41
% year-on-year
43.3
Key Performance Indicators
Key Performance Indicators
2023 Environmental, Social and Governance(ESG) ReportVisualization of the Product Lifecycle
Visualization of the Product LifecycleVisualization and Real-time Data Alert for the Entire Supply Chain Operations
Sales
Sales Plan
ProcurementPlan
Production
Plan
Inventory
E-commerceMembershipMarket
PatentsRegistrationMarketSalesProductionInventory
Real-time visu-alization of salesachievementsacross diversechannels is facil-itated by algo-rithms such asregional marketshare matching,aiding in theexpansion of ournetwork
Integration of busi-ness data acrossall channels isachieved, alongwith a thoroughanalysis of trafficand live streamerdata, to inform andsupport strategicbusiness decisions
Member segmen-tation algorithmsenable preciseidentification ofmember value,which is thenleveraged for tar-geted marketingthrough seamlessCRM integration
A comparativeanalysis of theoverall market,competition,pricing, and storereviews on Tao-bao and Tiktokis conducted,o?ering vital datasupport for prod-uct planning
Listed in the 2023 Pilot Demonstration Program for Industrial Internet by the
Ministry of Industry and Information Technology of ChinaObtained the Certi?cate of Evaluation for the Integrated Management System
Combining Industrialization and Informatization
Key Quali?cations & Honors
“
In 2023, the world witnessed the rapid popularity of Chat GPT on a global scale. Thenew generation of arti?cial intelligence, represented by generative arti?cial intelligence,is leading a new round of technological revolution and industrial transformation at anunprecedented speed, breadth, and depth, reshaping the development model of theeconomy and society, and injecting new momentum into various industries. Embracingthese profound changes, Marubi leverages the industrial internet platform to gatherlifecycle data for its products. Within the framework of a comprehensive digitizationstrategy, Marubi prioritizes intelligent decision-making, e?ciency enhancement, andcost reduction in its digital transformation e?orts. With a resolute digital focus, Marubielevates its brand's high-end and youthful positioning, using digital transformation tostrengthen every aspect of its product lifecycle - from R&D to innovation, production,and sales. This approach cultivates new productive forces, driving Marubi towards high-quality development.
Empowering Resilient Growth with DigitalIntelligenceTheme Spotlight
By leveraging comprehensive data capture and deep learning techniques on existingcosmetic formula information spanning the internet and the entire market, the AI largemodel for formulas is able to automatically generate new product formulas based ondemand.
By capturing real-time consumer reviews across the internet and the entire market for a specific product, Marubiemploys text mining algorithms to sift through comments on usage e?ects, focusing particularly on negative feedback.This process pinpoints areas for product improvement, ensuring that product development and iteration are morealigned with consumer needs, thereby continuously enhancing consumer satisfaction.
Marubi aims to establish a "smart brain" capable of driving R&D and innovation by digitizingand enhancing the intelligence of crucial processes, encompassing patent search and analysis,product registration analysis, analysis of new product R&D trends, formula analysis, literaturesearch and analysis, and patent trend alerts. This signi?cantly boosts the quality and e?ciencyof innovative R&D e?orts in raw materials, formulas, and technologies, thereby contributing tothe strengthening of the company's technological prowess.
Leveraging real-time capture and analysis of public big data, Marubi achieves digitization and intelligence in various areasincluding channel-category-audience matching, consumer demand mining, sales validation, competitor research, pricingstrategy, and advertising strategy. This approach enables a more scienti?c and e?cient method for product developmentand iteration, ultimately delivering more precise, safer, and satisfying product solutions to consumers.
Marubi leverages its data platform to automatically analyzevarious aspects, including product demand, APS (AdvancedPlanning and Scheduling), procurement situation, productionstatus, raw material, and finished product inventory data. Thisanalysis provides visual data that supports scientific decision-making in supply chain procurement, enabling Marubi toestablish a ?exible supply chain.
Marubi continuously enhances and upgrades its MES(Manufacturing Execution System), harnessing automationand intelligent technology to achieve intelligent workshopmanufacturing control, transparent production processes,digitalized production equipment, and integratedproduction information, aiming to create a smart factorythat optimizes e?ciency and productivity.
Marubi has successfully digitized its productinventory management, logistics, anddistribution processes, automating andvisualizing key metrics such as overall productinventory, inventory turnover, insights intoproduct suite inventories, sales trends, shelf-life analysis, and stagnation analysis throughdashboards. Furthermore, Marubi has forgedcollaborations with top-notch third-partylogistics partners to consistently enhance thee?ciency of its distribution network.
Capitalizing on its expertise in eye care, Marubi hasintroduced a care app equipped with AI skin testingcapabilities, tailored to address consumers' skin careneeds. This app facilitates a seamless online experiencefor users, encompassing appointment scheduling, settingcare reminders, AI skin testing, and service evaluationmechanisms. Through the AI skin testing feature,consumers can undertake comprehensive analysis oftheir skin condition and receive tailored anti-aging skincare plans and intelligent product recommendationsbased on their skin type, thus enabling them to makemore scienti?c and precise skin care decisions.
R&D andInnovation
? Commodity Operation: Marubi digitizes crucial processes, including omni-channel
product overview, inventory management, trial assembly ratio control, stockingconditions, and product lifecycle performance. By automating analysis and creatingdashboards, Marubi provides commodity operation personnel with valuable big datainsights, enabling precise and e?cient commodity operation strategies.? E-commerce Platform: Marubi digitizes, automates, and presents dashboards for keyonline business processes, such as omni-channel performance analysis, operationalinsights from T-mall flagship stores, live streaming data analysis, and e-commercefinance. These efforts effectively enhance the online consumer product purchaseexperience, driving sales and satisfaction.? CS (Cosmetic Shop) Channel: Marubi has established a comprehensive digitalintegration platform that covers the entire process, from shipment origination at theCS channel company, through cloud warehouse operations, to store shipments andterminal retail. Automation and dashboard creation for CS channel performance andmember operation analysis empower the digital transformation of the CS channel,enhancing the consumer experience and driving business growth.
AI Large Model for Formulas - Ushering in the AI Era ofCosmetic R&D
Enhancing Consumer Experience through Digital Intelligence InsightsCase Study
Case Study
AI Skin Testing
ProductDevelopment
ProcurementManagementProductProduction
Logistics andDistribution
AI EmpoweringConsumersfor Scienti?c
Purchases
Marketingand Sales
2526
Robust Operation
and Building a
Sustainable Beauty
Power
Solidifying corporate governanceIntensifying risk managementImplementing ethical business practicesSecuring information security
Marubi's Actions:
Contributing to the SDGs
Committed to adhering to compliant operational principles, Marubicontinuously optimizes its corporate governance structure, strictly adheringto business ethics, enhancing information security management, andelevating the overall value of the company. This ensures a solid foundationfor Marubi's sustainable and healthy development, safeguardingshareholders' rights and interests in the long term.
2728
Marubi remains dedicated to enhancing its corporate governance, bolstering investor relations managementand information disclosure, and safeguarding shareholders' rights and interests, aiming to creating sustainable?nancial value for investors, fostering long-term growth and prosperity.
Independence Structure of the Board
Professional Background BreakdownBy Educational Background
Gender Structure of the BoardEnhancing Governance and SolidifyingDevelopment Foundations
Board Structure and GovernanceMarubi continually enhances the standardization of its operations and corporate governance structure in alignmentwith various laws and regulations, including theCompany Law of the People's Republic of China, theSecurities Law ofthe People's Republic of China,theListing Rules of the Shanghai Stock Exchange, and the Governance Code for ListedCompaniesand follows the directives set by the China Securities Regulatory Commission and the Shanghai StockExchange.Marubi's governance structure comprises the General Meeting of Shareholders, the Board of Directors, and the Board ofSupervisors, all operating in strict compliance with regulations. The Board of Directors has four specialized committees,namely the Strategy Committee, the Audit Committee, the Remuneration and Appraisal Committee, and the NominationCommittee, to ensure clarity in roles and responsibilities, scienti?c decision-making, mutual checks and balances, andcoordinated e?orts. This structure provides robust support for daily operations, management, and decision-making oncrucial matters. During the reporting period, the attendance rate of Board meetings, supervisory board meetings, andspecialized committee meetings all reached 100%.
Marubi adheres strictly to the corresponding selection and appointment procedures outlined in theCompany LawanditsArticles of Associationwhen electing directors. Marubi actively promotes the diversi?cation of the board in terms ofindependence, gender, and professional background. Currently, the Board of Directors is composed of 9 directors withoutstanding educational quali?cations, enabling the board to make scienti?cally informed decisions e?ectively.
BachelorMasterDoctorBoard Diversity
Corporate Governance Structure
3，33%
1，11%
2，22%
4，44%
1人，11%
8人，89%
Independent directorNon independent directors
MarketingManagementAccounting
LawBiotechnologyDigitization
Female directorsMale directors
6，67%
1，11%
1，11%
2，23%
4，44%2，22%
1，11%
During the reporting period,Marubi held
general meeting ofShareholders Meeting
meeting of the StrategyCommittee
meeting of the AuditCommittee
meeting of theNomination Committee
meeting of the Remunerationand Appraisal Committee
meeting of the Board ofDirectors
meeting of the Board ofSupervisors
Key Performance Indicators
General Meeting of
ShareholdersBoard ofDirectorsStrategyCommitteeESG ImplementationCommittee
Audit and SupervisionDepartmentSenior Management
AuditCommittee
NominationCommittee
O?ce of the Boardof DirectorsBoard ofSupervisors
Remuneration andAppraisal Committee
Number of
Number of
Number of
Number of
Number of
Number ofNumber of
2930
Investors' Rights and Interests Protection
Information Disclosure Management
Marubi places significant emphasis on investor relations, establishing the Investor Relations Management System toengage promptly and proactively in information communication e?orts. It actively disseminates company information tothe capital market and investors through diverse methods and channels, thereby e?ectively safeguarding the rights andinterests of investors and cultivating a good image within the capital market.
Marubi reviews its internal control proceduresevery year and evaluates their effectivenessto improve its internal control system. Duringthe reporting period, Marubi conducted theassessment and revision of its systems, resultingin the revision and update of
existingsystems and the establishment of
newsystems, to elevate the level of internal controlmanagement.
Adhering to the principles of objectivity, policyconformance, and a prevention-focusedmindset, Marubi conducts rigorous andindependent audits and supervision on thebusiness operations and internal controls ofitself and its subsidiaries. During the reportingperiod, Marubi executed a comprehensive slateof
internal audit projects, with a focus ondiverse management modules encompassingassets, expenses, procurement, logistics, andperformance.
Marubi conducts annual reviews and revisionsof its systems to align them more closely withits business operations. This includes theoptimization of OA processes to align with thestrategic objectives. Additionally, Marubi sortsout and evaluates its OA approval processes touphold the compliance of business approvals.During the reporting period, the Companysuccessfully improved and established 137
new OA processes, while re-categorizing andstandardizing 10 authorization systems.
Marubi adheres strictly to pertinent laws, regulations, as well as itsArticles of Associationand theCompany InformationDisclosure Management System,ensuring e?ective compliance with its information disclosure obligations, ensuring thatall disclosed information is truthful, precise, comprehensive, timely, and equitable, thereby enhancing the quality and
Investor Hotline and Email
Diligently responding to every incoming call and email on our investor hotline,ensuring a 100% response rateOnsite or VirtualCommunication
Accommodating investors' on-site visits for research purposes and organizeregular earning release conferencesGeneral Meeting ofShareholders
Holding 2 General Meeting of Shareholders, o?ering an online voting platform toensure small and medium-sized investors to exercise their rights and participateactively in the company's decision-making process
SSE online interaction100% response rate to investors' inquiriesInvestor Relations Column
A dedicated "Investor Relations" column, where relevant company information isupdated in real-time to keep investors informed
Awarded the Excellent Practice Award for the 2022 Annual Report Earning Release of Listed Companies
by the China Association for Public CompaniesNamed the Best Investor Relations Company in the 2023 Listed Company Awards issued by Judongmi
Honors during the reporting period:
During the reporting period
announcementsMarubi disclosed
Marubi has set up the Audit and Supervision Department which is under the management of the Board Withthree functions in total, namely internal control, audit, and supervision, the Department provides an all-aroundsupervision management system to the business at all levels. Marubi has built an effective risk and internalcontrol management system in accordance with relevant laws, regulations, and internal requirements such as theAudit and Supervision System, theSupervision Management System, and the Internal Audit System.
Strict Adherence to Fundamental Principlesand Reinforcement of Risk Barrier
Continuously Fine-tunes Internal Control System
Strict Audit Supervision
Communication ChannelsCommunication Initiatives
Key Performance Indicators
standard of the information disclosure practices. Furthermore, Marubimaintains strict compliance with insider trading regulations, implementingaRegistration and Management System for Insider Information Insiderstobolster the con?dentiality of insider information. This measure e?ectivelyprevents any illegal or unethical activities, such as insider trading, whilesafeguarding the principles of transparency, fairness, and impartiality ininformation disclosure. Additionally, to standardize the decision-makingprocess for related-party transactions, Marubi has established aRelated-Party Transaction Management Systemthat explicitly outlines the review,avoidance, and decision-making framework for such transactions.Through these regulations, the company safeguards the legitimate rightsand interests of all shareholders. During the reporting period, Marubihas remained free from any regulatory sanctions related to informationdisclosure violations.
3132
Marubi considers it its paramount duty to foster a clean and ethical industry ecosystem, and forbids all forms ofcorruptions and bribes strictly. The Board of Directors functions as the apex regulatory body overseeing business ethics,while the Audit and Supervision Department executes supervisory duties and oversees the Company's comprehensivee?orts in preventing corruption and bribery. Marubi has established theSupervision Management System, theHonestyand Self-discipline System, and theComplaint and Reporting Management System, de?ned the "red line for integrity",consistently elevating employees' awareness of integrity and self-discipline, and reinforcing integrity managementamong suppliers, dealers, and other partners. Additionally, Marubi actively enhances its communication andcollaboration with industry organizations and regulatory bodies to continuously bolster its anti-fraud capabilities. Duringthe reporting period, no corruption-related litigation cases were recorded.
Operating with Integrity and Adhering toBusiness Ethics
Integrity Management
Marubi places a strong emphasis on the integrity management of its workforce and collaborators, ensuring their strictadherence to applicable laws and regulations throughout all business transactions, thereby effectively safeguardingagainst any potential corruption.
To further bolster employees' professional ethics and cultivate a workplace culture that venerates integrity anddenounces corruption, Marubi proactively promoted anti-corruption management, organized and required the sta? tosign theEmployee Integrity and Self discipline Commitment Letter. Additionally, Marubi promotes a robust integrityand compliance culture through a blend of online and offline training sessions, while simultaneously enhancing thepromotion of complaint and whistleblowing channels through diverse means.
Integrity Training
Methods
Integrity Training
Content
Promotion Channels for Complaintand Reporting MethodsOnline (OA, MarubiUniversity) Training &O?ine Training
Online: Courses on Gift and CashManagement, Precautions for Finan-cial Expense Reimbursements, andSpecial Learning on International An-ti-Corruption DayOffline: Integrity Training Conferenceof the 5C Center
Festival Integrity Reminders,Quiz Activities on Marubi Uni-versity, OA Promotions, etc.
Employees Integrity Management
Marubi convened the 2023 Annual IntegrityTraining Conference at the 5C Center onAugust 9
th
,2023, to deepen anti-corruptioneducation and integrity culture development,enhance the integrity consciousness amongemployees, strengthen professional ethics,and promote the thorough and practicalimplementation of integrity training. Keypersonnel from various departments,including the Product DevelopmentDepartment,5C Finance Team,5C HR Team,Logistics Operations Department, andProduct Manufacturing Department, wereinvited to participate, with a total attendanceof 82 individuals.
From September 29
th, 2023 to October 6
th, 2023, Marubi organized a daily quizcheck-in activity commemorating the Mid-Autumn Festival and National Day. Thequizzes encompassed reminders regarding travel reimbursement considerationsand integrity guidelines during the festive season. The objective was to reinforcethe importance of adhering to company policies when submitting travel expensesand discourage the acceptance of gifts during the holidays. Over the duration of theactivity, a total of 248 employees actively participated and a total of 59 employeesreceived rewards.
Mid-Autumn Festival and National Day Check-in Activity
2023 Annual Integrity Training Conference of the 5C Center
Case Study 2
Case Study 1
Marubi's Red Lines for IntegrityObtain improper individual interests by fabricating or concealing factsAsk for bribesAbuse power for personal gainsUse an o?cial seal without authorization or through fraud
Disclose the Company's secretObtain interests through internal andexternal collusionObstruct or hinder audit andinvestigation
Integrity Training Conference
Integrity Culture Construction
Whistleblowing/ Handling Mechanism
Enhancing Information Security Construction
Collaborating with Third Parties to Strengthen Anti-corruption Capabilities
Marubi employs a comprehensive strategy of audit and supervision in its ongoing anti-corruption e?orts. Any fraud cluesuncovered through the auditing process are promptly forwarded to supervisory personnel for further investigation.Additionally, supervisory personnel diligently review and document reported leads in a timely manner. This dualapproach reinforces the prevention and mitigation of integrity-related risks.Marubi has formulated theComplaint and Reporting Management Systemto standardize the process of reportmanagement. The Company provides diverse whistleblowing channels and publicizes integrity through OA, WeChatpublic account, and its o?cial website, to inspire the employees, clients, suppliers, and partners to report corruptionunder the real name or anonymously, safeguarding rights of whistleblowers, e.g., petitioning for recusal, result inquiry,request for protection, and receiving rewards.Whistleblowing channels are managed by specific personnel. Marubi keeps the information of the whistleblowersstrictly con?dential, and protects their legitimate rights and interests according to law. The anti-corruption dedicatedinvestigation team is speci?cally responsible for investigating corrupt behaviors.
To safeguard the integrity and confidentiality of the network and information systems, Marubi continuously refinesits information security system and related management protocols, enhances information security management andimplements dedicated security projects to enhance risk prevention and control capabilities.Marubi has joined the Enterprise Anti-fraud Alliance, fully utilizing the alliance's blacklist information sharing system,and strengthened talent review and new suppliers, to keep out dishonest persons and organizations and reduce risks offrauds. During the reporting period, the Company actively engaged in 6 anti-fraud communication meetings with leading
Reporting channelsReporting hotline (Tel): 020-66378666 (Ext) 385Reporting email: complaint@marubi.cnAddress: Audit and Supervision Department, 7/F, South Tower, Poly Granville Building, No. 11, Xiancun Road,Tianhe District, Guangzhou
Reporting hotline (Mobile):18602010151WeChat o?cial account: Integrity of Marubi
Be Proactive to Ensure Information Security
The Management Philosophy of Information Security
Once a year
Conductedbased onimportantsystems
Four times a year
Once a year
Four times a year
Twice a year
Twice a year
Conducted on anas-needed basis
Security RiskAssessment
Code Audit
SecurityInspection
Security Drill
VulnerabilityScan
SecurityEducation
PenetrationTesting
EmergencyResponse
Information Security Management Measures
Partners Integrity ManagementMarubi proactively promoted partners integrity management, organized the suppliers and distributors to sign theHonest Cooperation Agreement,and the bidders to sign theHonesty and Self-discipline Commitment for Bidders, andpublicized theHonesty Statement on the construction project site, to promote the business ethics.
Governing Unit of the EnterpriseAnti-Fraud Alliance Council
PreventionOrientation
ComprehensiveCoverage
enterprises within the Enterprise Anti-Fraud Alliance, ultimately attaining thestatus of a "Governing Unit of the Enterprise Anti-Fraud Alliance Council".Marubi also regularly participates in anti-fraud knowledge training organizedby the local public security departments, further enhancing the legal anddisciplinary awareness of its employees. Drawing lessons and clarifyingdiscipline through case studies, the Company resolutely adheres to strictself-discipline and maintains integrity in its business operations. During thereporting period, Marubi participated in the high-quality development themelecture on "serving enterprises to escort the economy" organized by theHuangpu Public Security Bureau, establishing a police-civilian cooperationsystem for anti-fraud and risk prevention.
Marubi strictly adheres to theCybersecurity Law of the People's Republic of China, theData Security Law of thePeople's Republic of China, the Personal Information Protection Law of the People's Republic of China, and otherpertinent legal frameworks. To standardize information security management and enhance the overall protectionlevel of information security, Marubi has established institutional documents encompassing theComputerEquipment Management System, theMarubi Data Center Permission Management System, and theIT Operationand Maintenance SLA Service Level Management.
ContinuousImprovement
Information SecurityRisk Assessment
?Identi?ed crucial internet assets;?
Conducted a threat analysis andgenerated risk assessment and im-provement reports.
?Enforce stricter measures to mitigate unautho-rized access and abuse of permissions;?Undertake security level protection assess-ments for vital systems;
?Enhance the security management frameworkacross the entire lifecycle of developers;?Upgrade protective measures for permissionsto ensure enhanced security.
Information SecurityEducation
?Elevate the overall awareness ofinformation security via targetedawareness training;?Strengthen the overall security pro-tection capabilities through practi-cal simulations and drills.
?Broaden the coverage of security awarenesstraining to reach a wider audience;
?
Enhance the reward and punishment mecha-nisms pertaining to network security.
Vulnerability Scan
?Perform security vulnerability scans;?Develop and execute tailored repairplans for identi?ed vulnerabilities.
?Maintain ongoing vulnerability scanning ef-forts;
?
Enhance vulnerability protection measures.
Penetration Testing
?Simulate a hacker's penetrationattempt into the system to pinpointhigh-risk systems.
?Address and rectify the identified risks thathave been exposed;?Elevate the intensity of penetration testingand maintain its ongoing execution.
Code Audit
?Perform code audits on the systemto detect and rectify vulnerabilities.
?Conduct code audits on a regular basis;?Establish a secure development guidelinesbaseline to ensure consistency and e?ciency.
Emergency Drill
?
Strengthen the emergency re-sponse mechanism through regulardrills.
?
Refine the emergency response system forgreater e?ciency;?Persistently conduct emergency drills to en-hance the capability of addressing networksecurity incidents.
Enhancing Information Security Facilities
Privacy and Data Security
To provide fundamental support for information security protection, Marubi regularly performs maintenance on itsinternet infrastructure. During the reporting period, Marubi has integrated computer-related ?xed assets into its assetmanagement system and designated specific responsible departments and personnel for each device and has alsoupdated and upgraded the following infrastructure to safeguard data security.
Marubi regularly refreshes its privacy policy to maintain ongoing compliance with regulatory mandates, therebysafeguarding the privacy and data security of third parties e?ectively. During the reporting period, Marubi issued a privacyprotection policy statement tailored to its member system, aligned with prevailing laws, regulations, and supervisorydirectives.During the reporting period, Marubi updated its privacy protection policies as outlined below:
Clarify privacyprotectionprinciples
Enhance normsfor personalinformationcollection andutilizationStrengthenuser complaint
and disputeresolutionmechanisms
In the process of collecting and utilizing user personal information,Marubi adheres strictly to the principles of legality, legitimacy,necessity, and transparency, to fully protect users' right to knowand right of choice.
Marubi has established clear guidelines for the collection and useof personal information, encompassing the scope of collection,intended purposes, and storage duration. Furthermore, theCompany has delineated its speci?c obligations when dealing withsensitive personal information.
Users can easily complain regarding any instances of personalinformation leakage or improper usage and Marubi promptlyinvestigates and addresses these concerns.
These features aim to preventdesktop data breaches beforetheir occurrence and conductaudits in case of any breaches.
This system separates the internetfrom the local network, therebyguaranteeing the safety of R&D
data.
Upgrade outdated equipment to
ensure consistent and reliablepower supply for servers and
network equipment.
Deploy desktop management
anti-leakage features
Deploy a cloud desktop system
for R&D
Maintain the uninterruptiblepower supply system
ContentAchievementsNext Steps
Content of information security management during the reporting period
3738
Ingenuity Research toSafeguard the Beautyof the Skin
Marubi relentlessly enhances its investments in technological advancements, qualitymanagement, customer service, industrial development, and partner empowerment. TheCompany seamlessly incorporates the principles of sustainable development into its valuechain management, e?ectively harnessing the in?uence of its branded enterprise to fostera more environmentally friendly, people-centered, healthy, and secure ecosystem across itsentire value chain. Marubi remains steadfast in its mission to cultivate sustainable beauty,not only for its customers but also for the society.
Marubi 's Actions
Contributing to the SDGs
R&D and innovationIntellectual property protectionExcellent quality management
Providing superior servicesPromoting industry developmentWin-win collaborations with partners
3940
Marubi has consistently prioritized scientific and technological innovation as its core mission. Over theyears, it has continuously invested in scientific research, cultivating advanced technological capabilitiesthat strive to deliver an unparalleled experience to consumers through its perseverance and robust corecompetitiveness. This relentless pursuit enables Marubi to ful?ll a higher aspiration for beauty.
Marubi boasts robust R&D capabilities and a comprehensive R&D system, facilitating closed-loop research andtransformation of core raw materials as well as groundbreaking technological advancements. Guided by theprinciples of sustainable development and green technology, Marubi respects animal welfare and remainscommitted to creating exceptional products that cater to both consumers and the industry.
Marubi upholds the R&D philosophy encompassing open, innovative, scienti?c, truth-seeking, along with green, leading,independent, and high-tech oriented and adheres to the principles of green chemistry and animal ethics. The Companycontinuously strives to optimize product formulas and enhance their safety and user-friendliness through the utilizationof natural raw materials and green technology R&D, in order to develop alternative solutions to animal testing, aiming tominimize any unnecessary harm to animals.
Marubi strictly adheres to national laws and regulations, referencing theCatalogue of Cosmetic IngredientsAlready in Use (2021 Edition), theTechnical Speci?cation for Cosmetic Safety"(2015 Edition),and theGuidance onCosmetic Safety Evaluation Techniques (2021 Edition) ,establishes rigorous standards for raw material approvaland conducts thorough safety risk assessments on all potential product ingredients to ensure the eliminationof prohibited ingredients and the gradual elimination of controversial ones. Furthermore, in alignment with theISO 22716 standard for good manufacturing practices in cosmetics, the Company formulates theDesign andDevelopment Control Program 6.0to guide product development and uphold the safety and reliability of itsproducts.
Leading with Technology and Decoding theBeauty of Diversity
The preservative system has removed two controversial ingredients: propylparaben andbutylparabenThe sunscreen system has removed two controversial components: 4-methylbenzylidenecamphor and octocryleneThe physical friction component, plastic microbeads (including methacrylic acid methylester crosslinked polymer and acrylic acid (ester) copolymer), has been eliminated in order tomitigate the environmental pollution caused by our products
As of the end of the reporting period
Key Performance Indicators
R&D Innovation System
R&D Philosophy
Green Chemistry
Marubi adheres to animal ethics and holds a profound respect for the value of animal life. To minimize any undue su?ering toanimals resulting from experiments, it has developed and implemented diverse alternative animal testing methods. Presently,the Company utilizes a range of extracorporeal testing models, biochemical experiment, cellular biological experiment, andmolecular biological experiment, chorioallantoic membrane (CAM) experiment and caenorhabditis elegans assay experiment.The combination of di?erent experimental models, o?er robust support for the safety and e?ectiveness of the products and rawmaterials.
Biochemical ExperimentBiochemical experiment exhibits a brieftesting cycle, high efficiency, and excellentreproducibility, suitable for evaluatingthe efficacy of raw materials and finishedproducts, as well as for high-throughputscreening of raw materials.
CAM experimentCAM experiment facilitates convenient sampling, with the vascular networkin the mesoderm effectively mimicking the conjunctiva structure. Thismakes it an outstanding alternative model for eye stimulation tests. Duringthe reporting period, the number of raw materials and products tested onembryos tripled year-on-year.
Cellular biological experimentCellular experiment offers convenient controlover experimental factors, simplify the cell growthenvironment, and facilitate the observation ofexperimental outcomes. Marubi currently boasts a diversearray of cell experiments, encompassing cytotoxicity,cell proliferation, cell scratch, and cell anti-in?ammatorytests. These experiments enable us to comprehensivelyassess various aspects such as safety, firmness, repair,and soothing properties.
Molecular biological
experiment
Marubi has developed a range ofdetection methods that cater to thedetection of firming, anti-wrinkle,hydrating, moisturizing, and soothinge?ects.
Caenorhabditis elegans assay experimentCaenorhabditis elegans, with 60%-80% of homology with human,has become the core indicator in anti-aging research. Marubi holdsthe distinction of being the ?rst beauty and cosmetics enterprise inthe industry to utilize it in evaluating the safety and e?ectiveness ofcosmetics.
Furthermore, Marubi has vigorously pursued innovative plant extraction technology and green biotechnologyresearch, consecutively introducing numerous original plant-based extraction and biotechnology ingredients. Itremains steadfast in its dedication to offering consumers increasingly natural, gentle, and efficacious skin caresolutions.
Over
raw materials were prepared utilizing green plant extraction technology, and over
were formulatedusing green biotechnologyAccumulated
plant raw material extraction research projects were successfully executed, leading to theregistration of 1 innovative raw material
patent have been applied centering on green plant extraction technology and the application of its constituents, 6authorized patents have been obtained and and a SCI paper has been submittedThe green manufacturing technology for recombinant collagen protein was awarded the Scienti?c and TechnologicalProgress Awards of Guangdong Cosmetics Association
During the reporting period
Key Award
Animal Welfare
Key Performance Indicators
v
Case StudyMarumed Research, a subsidiary of Marubi, functions as a leading professionalinspection and testing platform committed to offering comprehensive servicesto the beauty and health industry. These services encompass inspection andtesting, development of innovative testing methodologies, evaluation modelresearch, and professional regulatory consultancy. Obtaining a CMA quali?cation,Marumed Research has actively participated in the formulation of 8 industry andgroup standards, submitted 7 patent applications, and established a diverse arrayof inspection and testing laboratories, including those specializing in humane?ectiveness, in vitro e?ectiveness, physicochemical analysis, and microbiologicaltesting. These state-of-the-art facilities enable Marumed Research to delivera wide range of services, including cosmetics registration inspection, stabilitytesting, human safety and e?ectiveness assessments, as well as in vitro safety ande?ectiveness evaluations.
Forging Comprehensive Cosmetic Testing Service CapabilitiesTalent remains the fundamental cornerstone of innovation. Embracing the spirit of open innovation, Marubi consistently attractsexceptional talents from the industry through a blend of independent training programs and external collaborations. Thisapproach has culminated in the creation of a multidisciplinary talent pool encompassing expertise in over ten ?elds, includingbiology, genetic engineering, dermatology, pharmacology, phytochemistry, material chemistry, and testing. This diverse talentpool serves as a continuous source of innovative impetus, fueling the Company's growth and progress. During the reportingperiod, Marubi successfully recruited 33 outstanding R&D talents and appointed Bernard Meunier, a renowned scientist andmember of the French Academy of Sciences, who previously served as the chairman of the French National Research Institute, asour chief scienti?c advisor and chairman of the Scienti?c Academic Committee, which further enhances our R&D capabilities andsoft power.
With the aim of motivating R&D personnel to embrace innovation and elevate product R&D and innovation to new heightsthrough the constant enhancement of R&D capabilities, Marubi has instituted a competitive reward system. This includesorganizing a monthly "Ingenuity Re?nement" competition for formula engineers, which evaluates the creativity and skin feel ofproduct formulas, and o?ers rewards to the winners.Marubi has firmly established R&D hubs in Guangzhou, Shanghai, andTokyo, possessing a total of 36 functional laboratories that span diverseprofessional fields such as chemistry, biology, food science, medicine,pharmacology, and materials science. This extensive platform serves as aseamless continuum, encompassing all critical stages of the complete link ofR&D lifecycle: fundamental research - raw material development - raw materialproduction - formula exploration - manufacturing - quality inspection and
R&D Talents
R&D Incentives
R&D Platform
Establishment of a brand-new plant tissue culturelaboratory
Establishment of
new collaborativeR&D institutions
Awarded the title ofGuangzhou PostdoctoralInnovation Practice Base
Marubi boasted a team of 93full-time internal technical experts. The proportion of master's degreeor above stands at
29.03%
Marubi have a network of
collaborating external scientists
As of the end of the reporting period
Leveraging its robust R&D capabilities, Marubi remains committed to advancing innovative research in ingredients,technologies, and processes. The objective is to deliver enhanced beauty solutions to consumers by achievingbreakthroughs in core technologies.
Technological Innovation Achievements
Marubi's Recombinant Collagen Protein Skincare ProductsWon the Special Prize of Scienti?c and TechnologicalProgress Awards of Guangdong Cosmetics AssociationNominated for the Front-runner Program for Anti-AgingCosmetics in ChinaGuangdong Excellent "Specialized and New" Small andMedium-Sized EnterpriseGuangdong Industrial Design Center4 Products Have Been Selected for Inclusion in theGuangdong Premium Cosmetic Selection List
The 24
th China Patent Award - Excellence AwardsThe Chocolate Skincare Products, Whitening SunscreenSkincare Products, and Beauty Cosmetics (Base Category)Have Been Awarded as Guangdong Famous And ExcellentHigh-Tech ProductsMarubi's Multi-Peptide Firming And Wrinkle-SmoothingEye Cream Has Been Honored with the Scientific andTechnological Innovation Anti-Aging Product Award at theInternational Cosmetic Innovation Conference
Accumulated
authorized patents, including
invention patents and
overseas patents
newly authorized patents have been granted, with
invention patents and 3 overseas patents
papers have been published, with a cumulative impactfactor exceeding
Accumulated
patent applications, including
invention patent applications76 new patent applications have been submitted,comprising
invention patent applications and
overseas patent applications
newly published articles, with a total impact factor of
17.12
During the reporting period
Key awards obtained during the reporting periodDuring the reporting period
During the reporting period, Marumed Research has significantly expanded its capabilities by introducing 64 new testing indicators,thereby achieving a comprehensive testing capacity exceeding 360 items. This signi?cant milestone marks a further enhancement of ourcompany's inspection and testing capabilities.
Key Performance Indicators
Key Performance Indicators
Key Performance Indicators
testing - culminating in e?cacy evaluation. Furthermore, the Company maintains a global network of collaborative partners,encompassing over 40 domestic and international universities, renowned tertiary hospitals, research institutions, and otherscientific organizations. This strategic alliance has formed influential research platforms, including a collaborative platformdedicated to recombinant collagen research that integrates industry, academic, medical, and inspection capabilities, as well asthe Guangdong-Hong Kong-Macao Greater Bay Area Aging and Regenerative Medicine Industry-Academia-Research-InnovationAlliance. These platforms serve as powerful engines, continuously driving the product development and technologicalinnovation.
Case Study
Marubi remains steadfast in its commitment to R&D of core product ingredients,aiming to achieve autonomous control over these essential components throughenhancing strong core competitiveness with perseverance. Over the past fewyears, Marubi has introduced a series of exclusive core ingredients, including TypeI + Type III triple-helical recombinant collagen, schizophyllan polysaccharide(SPG), and supermolecular kapok flower, thereby continuously bolstering itscore competitiveness. During the reporting period, the Company added anothergroundbreaking core raw material to its arsenal: finger lime extract, whichsuccessfully underwent registration as a new cosmetic raw material by theNational Medical Products Administration. Furthermore, Marubi successfullycompleted the registration of INCI 25775 (International Nomenclature CosmeticIngredient) under the name "Schizophyllum Commune (Mushroom) FermentFiltrate" at PCPC (Personal Care Products Council), and the independentlydeveloped SPG raw material has been internationally recognized.
Ingredients Innovation
On September 25
th, 2023, Marubi marked a significant milestone as its novel rawmaterial, finger lime extract, bearing the registration number Original Chinesecharacters for national cosmetics No. 20230034, successfully completed theregistration process for new cosmetic raw materials with the National MedicalProducts Administration. This accomplishment represents the first successfulregistration of a new raw material since its inception and places it among a selectfew enterprises that have achieved this feat since the enactment of the revisedRegulations on the Supervision and Administration of Cosmetic Products in 2021.Finger lime, alternatively known as Australian ?nger lime or ?nger lemon, is an exoticfruit originating from Australia. It was introduced to China in 1977. Resembling thesize of a human finger, its pulp is distinguished by its tiny, fish egg-like particles,earning it the moniker of the caviar of fruits, considering a prized member of thelemon family.
Unveiling the "Hermes" of the Fruit World: Marubi SharesAchieves Landmark Registration of Its First Novel RawMaterial!
Case Study
E?ects of Finger Lime Extract
AntioxidantE?ect
Finger lime extract demonstrates robustantioxidant capabilities, displayinga positive correlation between itsscavenging e?ect on diverse free radicalsand the concentration of the extract withina de?ned range.
Finger lime extract stands out for itssuperior moisturizing properties,surpassing both glycerin andsodium hyaluronate in terms of itshydrating potency.
Finger lime extract effectivelysuppresses the expression of thein?ammatory factor IL-6, exhibitinga notable anti-inflammatory andsoothing effect on compromisedskin.
Moisturizing
Anti-in?ammatoryand Soothing
Marubi has independently developedover 50 raw materials, with over 20types realized mass productionAs of the end of the reporting period
Marubi boasts a robust technology R&D and innovation platform, having successfully introduced groundbreaking technologiesincluding translation pause technology, C-PRO ring reinforcement technology, and CelCaper? directional cryogenic extractiontechnology, continuously fortifying the capabilities in ingredient innovation. During the reporting period, the Company hasfurther augmented its technical prowess by introducing several novel technologies: senescence gene target screening and libraryconstruction, plant tissue green culture technology, 3D bioprinting technology, MPCF multilateral parallel complex fermentation,and network pharmacology reverse screening.
Technological Innovation
The escalating demand for plant materials, coupled with the unchecked exploitation of rare plant resources, posesa significant threat to the sustainable development of our ecological environment. Traditional methods of artificialplanting, often in?uenced by climate, environmental factors, and planting management practices, render these materialsvulnerable to contamination by harmful elements such as bacteria, pesticide residues, and heavy metals. In response tothese challenges, plant tissue culture technology, a pivotal and dynamic component of modern high-tech advancements,emerges as a critical tool. This technology holds immense potential in addressing the scarcity of high-quality plantresources, safeguarding exceptional germplasm, and fostering the sustainable utilization of plant resources. Its outstandingcharacteristics include accelerated breeding processes, enhanced quality, independence from regional and seasonalconstraints, and facilitation of factory-scale seedling production.Currently, the plant tissue culture laboratory has successfully completed germination experiments for 6 plant species, callusinduction experiments for 1 species, and in vitro functional assessments for 5 natural active ingredients. Moving forward,the laboratory remains committed to introducing superior plant resources and cutting-edge equipment, laying a solidfoundation for future scaled production of plant materials and further safeguarding biodiversity.
Enhancing Biodiversity Protection through Plant Tissue Culture Capabilities
Production of High-Quality Plant MaterialsExtraction of Key Plant Active IngredientsPlant tissue culture technology serves as a powerfultool for the large-scale production of high-qualityplant materials, encompassing items like plant callusfiltrate and plant stem cell extracts. Through thecultivation of plant cells or tissues, Marubi can acquireplant materials with high purity and activity, thussupporting the effectiveness of cosmetics in areassuch as skin whitening, antioxidation, anti-aging, andother bene?cial e?ects.
Plant tissue culture technology o?ers the capability toprecisely target and extract specific functional activeingredients from plants. By nurturing plant cells ortissues under controlled conditions, Marubi can inducethe production of specific secondary metabolites,including ?avonoids and terpenes, among others.
Advantages of Plant Tissue Culture Technology
A total of 45 patent applications havebeen ?led regarding SPG, with 28 patentsgranted, and 3 pub-lished papers with acumulative impactfactor of 14.9
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Marubi has successfully constructed acomprehensive gene bank encompassingfull-length gene sequences for a total of44 subunits across 28 collagen sub types,along with a corresponding cell bank ofyeast expression plasmids. Currently, theCompany is engaged in the design andconstruction of a gene bank dedicated tofunctional fragments of small-moleculecollagen.
Marubi has successfully established astate-of-the-art Pichia pastoris proteinfermentation platform, markinga significant advancement in theevolution of engineering bacteria fromprokaryotic to eukaryotic cells.
In addition to its recombinantcollagen library, the Company hasnearly completed the constructionof a recombinant elastin library.Furthermore, the R&D of functionalactive proteins, including recombinant?bronectin, is progressing seamlessly.
Marubi has been at the forefront of research and application of recombinant active protein raw materials, striving to occupy thepinnacle of innovation in active protein and spearheading a new growth trajectory in anti-aging. Currently, Marubi has achievedstable production and product integration of recombinant collagen and recombinant elastin, while simultaneously advancing theresearch and application of recombinant ?bronectin.
Focus: Leading the New Era of Active Protein Anti-aging
The development of a triple-helical structure recombinant collagen protein, which mirrors the human collagen sequence, posessigni?cant technical challenges, earning it the moniker of biotechnology's crown jewel. In 2021, Marubi introduced the innovativerecombinant dual collagen protein component and created the world's first chimeric recombinant dual collagen proteincombining Type I and Type III, utilizing advanced C-Pro buckle reinforcement technology alongside the proprietary patentedtranslation pause technology. The recombinant double collagen protein exhibits several advantages, including superior stability,elevated activity, and enhanced absorption capabilities.
25 patents have been applied for and 7 authorized patents have been obtained for recombinantcollagen proteinThe Marubi recombinant collagen protein disposable essence lotion was awarded the title ofGuangdong Premium Cosmetic Selection
As of the end of the reporting period
Genetic and Cellular PlatformStrain PlatformActive Protein Platform
Marubi led the formulation of the industry standard Recombinant Soluble Collagen organized by the Ministry ofIndustry and Information Technology and o?cially initiated the projectServed as the unit participating in the compilation of the group standard of Guangdong Cosmetics Association titledCosmetic Ingredients - Recombinant Soluble Collagen, Marubi successfully passed the expert acceptance review.Marubi ?led 30 new patent applications for functional proteins, resulting in the total number of patent applications to
During the reporting period
Leading the Rise of Chinese Ingredients through Technological Innovation
Exploring the Advantages of the Type I & Type III Chimeric Recombinant Dual Collagen Protein
Collagen comprises approximately 70% of the proteins in human skin, with two types receiving significantattention and playing pivotal roles: namely Type I collagen and Type III collagen. Type I collagen accounts for80% of the total collagen in adult dermal tissue, providing reinforcement to the skin like steel-like tree ?bers.Type III collagen exhibits a mesh-like structure, conferring elasticity. As each year goes by, the levels of bothType I and Type III collagen gradually decline, resulting in a disruption of their ratio, which contributes to skinaging. Therefore, supplementing the skin with additional Type I and Type III collagen is crucial to delayingskin aging. However, relying solely on a single type of collagen is insu?cient for e?ective anti-aging. Instead,combining and embedding Type I and Type III collagen together for supplementation can truly yield thedesired e?ects.The recombinant dual collagen protein, due to its amino acid sequence being identical to human collagen,offers advantages such as excellent affinity and the absence of rejection reactions. This makes it anoutstanding solution for anti-aging in human skin.
Science Behind Ingredients
Case Study
The Chunji brand, with a deep understanding of the needs of skin a?ected by staying up late, introduced a pure skincareproduct with a minimalist formula - Chunji 12 Cream, which contains only 12 ingredients during the reporting period. Thisproduct innovatively incorporates the exclusive ingredient, namely supermolecular kapok, and is also the ?rst green andlow-carbon product that uses 100% photovoltaic power in the production process.
Minimalist Formula Creates a New Experience in Pure Skincare
2 cellular technologies: supermolecular cellular ?ash extraction technology andcellular micro-guided penetration technology6 major product benefits: brightening, anti-wrinkle, firming, soothing, repairing,and moisturizingApplied for 4 patents regarding the supermolecular kapok ingredient andpublished 1 authoritative SCI paperObtained third-party certi?cation for its green and low-carbon attributes
Product Highlights
Marubi remains committed to advancing its research in formula andprocess technology, with the ultimate goal of enhancing product e?cacythrough optimized formulas and delivering safer, more e?ective productexperiences to consumers. During the reporting period, the Companysuccessfully introduced 8 novel formula and process technologies,signi?cantly contributing to the upgrading and e?ciency enhancement ofits product formulas.
Formula and Process Innovation
Marubi applied for
pat-ents related to the newlyadded 8 formula and pro-cess technologies
During the reporting period
Key Performance Indicators
Key Performance Indicators
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4748
E?ectiveness Veri?cation and Doubts Dispelling
Science Popularization of Ingredients and Establishment of Cognition
Establishing Standards and Promoting Standardization Development
Ever since the emergence of recombinant collagen, consumers have been divided on whether it cane?ectively be absorbed by the skin. To clear up these doubts and validate the e?cacy of recombinantcollagen through scienti?c testing, Marubi has devised four distinct methods for evaluation. The results ofthese tests have unanimously con?rmed that the triple-helix structured recombinant collagen can indeedbe stably absorbed by the skin.
Since 2021, Marubi has consistently organized the Recombinant Collagen Scientist Forum, which convenes renownedand esteemed experts, scholars, university researchers, consumer representatives, and industry media to deliberateon the evolving trends in collagen development, exchange novel scientific findings, and share knowledge aboutcollagen. Furthermore, Marubi has been enhancing consumers' comprehension of recombinant collagen ingredientsthrough a multifaceted, diversi?ed, and profound approach encompassing self-media platforms, elaborate ingredientbreakdowns, live streaming explanations, and in?uencer-led popularization e?orts.
The current cosmetics industry lacks standardized and unified regulations forrecombinant collagen raw materials, particularly in areas such as quality control,technical speci?cations, and testing protocols. This has resulted in a wide rangeof quality inconsistencies in the available recombinant collagen raw materials onthe market, posing numerous uncontrollable safety hazards in products. Suchinconsistencies have not only caused significant harm to consumer rights andinterests but have also greatly hindered the widespread adoption and furtherdevelopment of recombinant collagen in the cosmetics sector. Recognizingthe need for standardization, Marubi, as a leading enterprise in the field ofrecombinant collagen, has been actively involved in the formulation of industrystandards aimed at promoting standardization and sustainable developmentwithin the industry. During the reporting period, Marubi successfully led thedevelopment of the industry standardRecombinant Soluble Collagen, whicho?cially obtained project approval from the Ministry of Industry and InformationTechnology and entered the standard preparation phase. This standard holdsa high importance level, marked with two "★". Additionally, serving as thefirst unit participating in the compilation of the group standard of GuangdongCosmetics Association titledCosmetic Ingredients - Recombinant SolubleCollagen, Marubi successfully passed the expert acceptance review.
Collaborating with institutions such as Beijing Technologyand Business University and various testing facilities, Marubiemployed the state-of-the-art two-photon microscopeto carry out a human transdermal absorption test on itsself-developed recombinant dual collagen protein. Theoutcomes of the experiment unequivocally demonstratedthat Wanmei's recombinant dual collagen protein canbe effectively absorbed through the skin, achieving amaximum penetration depth of 26 μm within 24 hours.Furthermore, after 7 days of application, it significantlyenhances the collagen structure within the skin.
On September 23, 2023, the 3
rdRecombinant Collagen Scientist Forum, organized by Marubi, concluded successfully onGuangzhou Bio Island. This edition, building upon the high standards and quality of previous forums, further elevated itssigni?cance by assembling an elite international team of academics from various countries. The forum gathered numerous
Transdermal Absorption of Marubi's Recombinant Dual CollagenProtein Con?rmed by Two-Photon Microscope
The 3rd Recombinant Collagen Scientist Forum was Conductedwith Great Success
Develop/revise 5 groupstandards centered onrecombinant collagen
As of the end of thereporting period
renowned and authoritative experts, scholars, and universityscientists, who delved into more advanced technologies anddeeper application areas of collagen, exploring innovativedirections for the development of recombinant collagen.A highlight of the event was the exclusive release of the
International Academician and Scientist Consensus onResearch and Applications of Recombinant Human-sourceCollagen, marking a significant milestone where Chinesereconstituted collagen protein has entered the internationalstage and received global evaluation.
Elastin, a crucial hard protein in human connective tissues, primarily functions to confer elasticityto tissues and acts as a vital component of the extracellular matrix, fostering intercellular adhesionand support. In conjunction with collagen, it preserves the structural stability of tissues. Sincethe introduction of the first-generation elastin eye essence in 2007, Marubi has been steadfastin investing in elastin R&D, continuously enhancing and refining our elastin products. Duringthe reporting period, the elastin technology has reached the 3.0 era, marked by the emergenceof supermolecular elastin. This milestone represents breakthrough achievements in optimizingelastin's e?cacy and integrating it into our product formulations.
Signi?cant Upgrade of Elastin Technology
?
In 2007, meticulously selected elastinwas derived from pristine deep-sea tunainhabiting the Arctic Ocean of Norway
?
Today, Marubi introducessupermolecular elastin
?
In 2018, Marubi employed cutting-edge small-molecule hydrolysis technology to formulateelastin molecules that are smaller and moree?ciently absorbed
1.0 Era2.0 Era3.0 Era
Evolution of Marubi's Elastin
Marubi Bounce,Bounce, BounceDisposable Essence
Case Study
Key Performance Indicators
Case Study
Before
After
4950
Heat-resistant
40°C, with no abnormality after
24 hours
45°C, with no abnormality after 24
hoursCold-resistant
-8℃, with no abnormality after
24 hours
-18℃, with no abnormality after 24
hoursCentrifugation (emulsion)
2,000 r/min, with nostrati?cation at 38℃ for 30
minutes
3,000 r/min, with no strati?cation at
38℃ for 30 minutesBacterialamount(CFU/g)
Cosmetics for children,lips, and eyes
≤500＜50Other skin cosmetics≤ 1000＜50Total mold and yeast CFU/g≤ 100＜ 10
Chinese Industry StandardMarubi StandardComparison of Chinese Industry Standard and Marubi Standard
Marubi considers technological innovation as its paramount priority. In alignment with standards and regulations, includingthe GB/T29490-2013 Intellectual Property Management Standard, theTrademark Law of the People's Republic of China, andthePatent Law of the People's Republic of China, the Company has established a robust intellectual property managementsystem that comprehensively covers the acquisition, implementation, licensing, transfer, maintenance, dispute resolution,and risk mitigation of intellectual property rights, thereby supporting the innovative development. Marubi not onlysafeguards its own intellectual property rights and business secrets but also respects the intellectual property rights ofothers. Regular specialized trainings are organized to enhance the awareness of intellectual property protection amongrelevant personnel.
Escorting Innovation and SafeguardingIntellectual Property Rights
As of the end of the reporting period, Marubi has successfully obtained certi?cation for the GB/T29490-2013 intellectual propertymanagement system and has been honored as the National Intellectual Property Demonstration Enterprise, National IntellectualProperty Advantage Enterprise, Development Zone Intellectual Property Advantage Enterprise, and Development ZoneIntellectual Property Demonstration Enterprise.Utilizing an anti-counterfeiting traceability code system, collaborating with professional third-party institutions, and conductingboth online and o?ine market inspections, Marubi regularly monitors and reviews fake and inferior products, aiming to minimizethe presence of fakes. This approach ensures that consumers purchase authentic Marubi products, safeguarding their interestswhile fostering a healthy and vibrant industry ecosystem.
Combating Fake and Inferior Products
Marubi's fifth-generation elastin eye essence, known as the "Little Spring" eye cream, was awarded the 2022Guangdong Premium Cosmetic SelectionSubmitted 2 patent applications pertaining to supermolecular elastin
During the reporting period
Through the encapsulation elastin with ionic liquids, a signi?cantlymore stable, safer, and highly efficient active protein system isformed. When compared to traditional elastin, supermolecularelastin demonstrates superior affinity and permeabilitycharacteristics.Supermolecular
Elastin
Statistics of cumulative permeability ofelastin in each cortex after 24 hours ofexperiment
Using the (Sus scrofa f.domestica) skin model todetect the transdermalpenetration of skin atdi?erent time periods
Key Performance Indicators
Guided by the policy of "quality-?rst, integrity-based, leading the market,and keeping improving", the Company strictly complies withQualityManagement Standards for Cosmetics Productionand other relevantlaws and regulations, and has established a quality management systemthrough the entire lifecycle of the product, covering product development,supplier selection, material acceptance, production, sales management,and product recall. Furthermore, the Company has passed the certi?cationof ISO22716:2007 Good Manufacturing Practices for Cosmetics (GMP), theISO9001 Quality Management System, and the Guidelines for CosmeticGood Manufacturing Practice (2022) issued by the U.S. Food and DrugAdministration, maintaining e?cient and e?ective operations.
Ingenuity Embodies Quality and Guardingthe beauty of quality
To guarantee a superior user experience for consumers, Marubi adheres to more rigorous product quality standards than thoseprescribed by the industry. The production area includes the ?lling workshop, ingredient workshop, and emulsi?cation workshop,with a cleanliness degree up to level D according to GB 50457-2019 Code for Design of Pharmaceutical Industry Clean Room. Thisensures that the number of particles measuring ≥5.0μm under static conditions remains below?29,000/m
. The Company willconduct stability, safety and other tests on all products to ensure quality. For newly launched products, the Company will conducttests for di?erent e?ects, including ?rming, soothing, anti-wrinkle, whitening, and suitable for sensitive skin to verify their safetyand e?cacy.
Strict Standards
Quality Management System Certi?catesof Marubi
Elastin content in each cortex(ug/cm
)
Ordinary elastin
Supramolecular Elastin
OrdinaryelastinSupramolecularElastin
4.2x higher
absorption rate
5152
Marubi maintains vigilance in monitoring regulatory announcements and pertinent industry trends, promptly apprehendingthe nuances of new regulations and updating the internal and external documents. In alignment with the implementationmandates of these regulations, the Company promptly organizes internal inspections and training sessions to ensure operationalcompliance. During the reporting period, the Company successfully conducted 11 routine internal inspections and conductedinternal self-audits in accordance with the recently issuedSupervision and Administration Regulations on EnterprisesImplementing the Main Responsibility for Cosmetic Quality and Safety.
Leveraging daily quality meetings, periodic quality retrospectives, andcomprehensive quality management training, Marubi is committed toenhancing the quality consciousness and pro?ciency of its personneland cultivating a robust quality culture. During the reporting period,with a focus on adhering to new regulatory standards and elevatinginternal quality management practices, the Company hosted a two-dayworkshop on Cosmetic Production Quality Management Standards anda one-day seminar on Cosmetic Process Veri?cation.
Marubi has instituted theSMP-PG-047 Quality and Safety Incident Disposal Control Procedure, clearly outlining the responsibilitiesof the legal representative as the ?rst responsible person for quality and safety and the quality and safety supervisor designatedas the direct executor. This procedure categorizes potential quality incidents and establishes corresponding emergencymeasures, which are periodically evaluated to guarantee their e?ectiveness in addressing urgent situations.
Marubi has established theRecall Management Control Procedureto outline comprehensive handling plans for addressingquality issues in delivered products, tailored to the speci?c nature of each problem. A designated working group oversees thisprocess, conducting regular recall drills to assess the efficiency of the recall procedures. Additionally, the Company remainsvigilant in monitoring the safety and performance of its after-sales products, leveraging laboratory testing and market conditionanalysis to ensure a seamless product experience for its consumers.
Marubi maintains a regular schedule of quality review meetings and quality management training sessions speci?cally tailoredfor its suppliers. These sessions serve as platforms for sharing the experience in quality management, enabling suppliers tocontinually elevate their quality standards. During the reporting period, the Company successfully conducted more than 10quality review and training sessions, signi?cantly strengthening the suppliers' quality management capabilities.
Marubi remains steadfast in its commitment to delivering an exceptional product experience to consumers through meticulousquality management. During the reporting period, 4 products were honored with the Guangdong Premium Cosmetic Selectionaward by the Guangdong Medical Products Administration Society(GDMPAS). This accolade serves as a testament to theCompany's unwavering dedication to maintaining a rigorous quality management system, providing exceptional consumerservice, and fostering a robust research and development innovation framework.
Regulatory Dynamic Monitoring
Quality Culture Construction
Quality Emergency Management
Post-market Product Management
Supplier Quality Training
Quality-Oriented and Winning Guangdong Premium Cosmetic Selection Award
Marubi Multiple PeptideAnti-wrinkle Eye Cream
Marubi Retinol FirmingAnti-wrinkle Eye Cream
Marubi Elastin Eye Essence
Marubi Recombinant Collagen
Disposable Essence
Cosmetic Regulatory Training
Number 2001005018℃~26℃45%~65%
Environmental Indicators for D-level Pharmaceutical Clean RoomIndicatorAirborne Bacteria
CFU/m
Settled Bacteria(ф90mm)
CFU/4h
Surface Microbial Contact
(ф55mm)CFU/disc
HumidityTemperature
5354
Consumer Satisfaction Management
Improving Service Experience
Optimization ofLogistics Timeliness
Content:
?The shipping process within the warehouse has been refined to minimize shipmentduration. Additionally, a pre-packing strategy was formulated on the operational frontto alleviate the shipping strain during promotional activities and enhance the 24-hourcollection e?ciency;?The customer service department collaborated seamlessly with plan management,warehouses, and retail operations across various channels to undertake logisticstimeliness optimization e?orts. The warehouse personnel also ?ne-tuned the packagingprocedures and optimized product placement.
Achievement:
?The 24-hour package collection rate reached to 97.27%, marking a YoY increase of 2.54%;?
All stores have successfully met the delivery target of under 50 hours, significantlyelevating the shopping experience for customers.
Optimization ofPackaging Boxes andPacking Process
Content:
?To devise package optimization plans, three rounds of unpacking experience surveys wereconducted, encompassing both traditional and emerging brands;?Unify the use of red express boxes to standardize product placement direction, quantity of?llers used, and speci?cations for express box usage.Achievement:
?
The complaint rate for damaged packages decreased by 20% year-on-year.
Content and AchievementProject
Exploring the Essence of "Selection" in Guangdong High-QualityCosmetics (Guangdong Premium Cosmetic Selection)Under the guidance and supervision of the Guangdong Provincial Drug Administration, GDMPAS isresponsible for organizing and implementing the evaluation of the Guangdong Premium CosmeticSelection Honor. The aim is to expedite the professionalization, branding, and internationalizationof the Guangdong cosmetics industry, cultivate national brands, and promote the high-qualitydevelopment of the Guangdong cosmetics industry.
Requirements for Guangdong Premium Cosmetic SelectionThe applicant must demonstrate a clean record over the past three years, free from any unquali?edsupervision and inspection reports, serious violations uncovered during regulatory audits withoutany records of punishment, instances of serious adverse reactions, veri?ed complaints or reports, andinfringements of intellectual property rights.
including sales, consumersatisfaction, and consumerknowledge popularizationetc.
including formula and processinnovation, raw material in-novation, and other pertinentfactors etc.
including product standards,product inspection, raw ma-terial safety, packaging man-agement, and sustainablequality assurance etc.
including e?cacy evaluationand e?cacy claims etc.
The selection criteria includes 4 first grade indexes, 16 second grade indexes and 36 scoring items,totaling 150 points.
Basic Requirements:
Evaluation Criteria:
26.67%
30%17.33%
26%Market PerformanceTechnological Innovation
Quality ControlProduct E?ectiveness
Science Popularization
With the philosophy of "service first, sales second", Marubi has established a comprehensive customerservice management system and diversified and efficient service feedback mechanism, committing toproviding customers with exceptional service.
Delivering Exceptional Service andUpholding the Promise of Beauty
Marubi is constantly striving to optimize consumer service and product experiences, providing consumers with a range ofconvenient channels for raising complaints and providing feedback. The Company actively addresses customer feedback andconsistently works towards improving overall customer satisfaction.Marubi ensures a seamless experience for its customers by o?ering comprehensive pre-sales consultation, ongoing sales support,and after-sales service. Additionally, the Company implements regular follow-up plans for loyal customers, o?ers personalizedproduct usage guidance, exclusive gift privileges, and other initiatives to continually enrich the consumer experience. Duringthe reporting period, the Company has embarked on multiple service optimization projects aimed at further boosting customersatisfaction.
5556
The customer satisfaction rate at the o?cial T-mall ?agship store reached 92%, representing a YoY growth of 3.49%The o?cial T-mall ?agship store secured the Gold Medal Customer Service Certi?cation for a consecutive 6 monthsThe o?cial T-mall ?agship store was honored with the Star Customer Service award from Chitu
During the reporting period
Marubi maintains a regular practice of collecting after-sales issues and negative feedback from consumers. Through variousmechanisms, these product-related concerns are then relayed to the product department for subsequent optimization.Additionally, the Company works closely with the training team to conduct comprehensive product knowledge training, with theultimate goal of delivering a satisfying product experience to its customers.
Marubi holds consumer feedback and suggestions in high esteem, offering a range of convenient channels for consumers tovoice their opinions and complaints. This ensures prompt resolution of issues and continues to deliver a satisfying consumerexperience.
In response to consumer complaints, Marubi adheres to the principles of prompt response, thorough investigation, and swifthandling. Marubi regularly analyzes complaint data to explore the root causes of problems and provides strong support forcontinuous improvement in product and service quality.
Optimizing the Product Experience
Consumer Feedback Management
Marubi regularly compiles focused and di?cult issues, as well as product issues raised by consumers,timely conducts internal communication to trace the source of common product issues andincorporates customer feedback on product-related issues into the product improvement plan.
Marubi regularly holds product communication workshops with KOLs in the cosmetics industry tocomprehensively listen to the sharing of advantages and disadvantages of the products by consumerspokespersons and their suggestions for improvement. Common issues will be included in the productupgrade plan.
The Four-Resistance (anti-oxidation, anti-glycation, anti-photoaging, and anti-stress) set is the flagship product of the promotional campaign on Tiktok Mall in2023. Marubi attaches utmost importance to, as well as closely monitors, consumerfeedback. During the reporting period, the Company conducted follow-up interviewswith select consumers, taking into account their feedback on product issues. Bysynthesizing consumers' daily feedback with the insights gained from the interviews,the Company was able to refine and enhance the Four-Resistance product. Theupgraded version has garnered widespread acknowledgment from consumers.
Enhancing the Four-Resistance Product Based on ConsumerFeedback
Direct Feedback Mechanism for Customer Service
KOL Workshop
Feedback Channels
Complaint Management
400 National Hotline
O?cial We-mediaPlatforms
O?cial Customer Service ofthe Online Store
General ComplaintsAuthorize frontline personnel to handle quicklySevere issues and ComplaintsInvolving Legal and RegulatoryIssues
Professional departments conduct rapid and e?ective analysis and handling,and conduct in-depth analysis of the causes to take preventive measuresComplaints with Material Impact
Promptly report to the company's leadership for proper handling, and
conduct product recalls when necessary
Handling MethodsTypes of Complaints
Jiaoao Rising - Private New Product Launch Event
During the reporting period
0.09
%
%Customer complaint rateComplaint settlement rate
Key Performance Indicators
Key Performance Indicators
Case Study
5758
Marubi ensures conformity of its market behaviors, encompassing customer service and marketing activities, with legal provisionsand harmonious social development values through regular compliance training, dissemination of knowledge on productingredients, and marketing activities that resonate with mainstream social values.
Responsible Marketing
Marubi maintains a schedule of training sessions for its customer service personnel and marketing team, focusing on cosmeticsregulations, online platform guidelines, and cosmetics product expertise. This ensures that accurate product information isimparted to consumers in a manner that adheres to regulatory requirements, while safeguarding customers' legitimate rightsand interests. Additionally, the Company develops guidelines for live streaming conduct, tailored for internal anchors andcollaborating partners, to guarantee that their live streaming activities adhere to the established standards.Furthermore, the Company actively encourages its service personnel to engage in professional certi?cation training related toskin care and cosmetics, aiming to continually enhance their professional service capabilities.The Company prioritizes providing scientific explanations and supporting evidence for the ingredients and effectiveness ofits products. Currently, a range of methods are employed to educate consumers on product ingredients, bene?ts, and usage,including detailed product descriptions, educational short videos, packaging information, customer service explanations, andanchor demonstrations. This comprehensive approach aims to empower consumers to make informed purchase decisions andensure the correct usage of products.In the brand marketing e?orts, the Company adopts a people-oriented approach, emphasizing the delivery of unique emotionalvalues to consumers and fostering social harmony and diversi?ed development. During the reporting period, Marubi initiated aseries of topics such as "Girls, Embrace Your Unique Radiance" and "The Power of Holding High Expectations", aimed at voicingout for women, encouraging them to embrace their authenticity and shine brightly in their lives.
Compliance Training
Product Ingredient Education
Value Advocacy
Drawing on the profound professional capabilities and extensive experience in the beauty industry, Marubi has beenactively involved in fostering the development and construction of the industry through various activities such as standardformulation, research projects, and industry exchanges. Its aim is to promote the standardized and high-quality growth ofthe entire industry.
Solidarity to Promote the Development ofCosmetics Industry
Marubi actively utilizes its professional prowess and expertise to participate in the formulation of industry standards, therebycontributing signi?cantly to the standardization and high-quality advancement of the industry. As of the end of the reportingperiod, the Company has been participated in or led the compilation of a total of 53 standards. During the reporting period, 13new standards were added, with the Company leading the formulation of 1 industry standard and 2 group standards.
Participation in the Formulation of Industry Standards
IndustryStandard
QBCPZT2235-2023Restructured Soluble CollagenApprovedLeadGroupStandard
T/GDCA 033—2023
Cosmetic Antioxidation Activity Evaluation -Caenorhabditis Elegans Assay
LeadGroupStandard
T/CIET 414—2024
Quality Classi?cation and EvaluationRequirements for Front-runner Eye Cream
LeadGroupStandard
T/GDCQMA 002—2023Speci?cation for Cosmetic Stability TestingParticipateGroupStandard
T/GDCA 024—2023
Electrospun Fiber Membrane for Cosmetic
Use
ParticipateGroupStandard
T/GDCA 032—2023
General Principles for Safety Evaluation ofCosmetic Formulas Suitable for Pregnant and
Lactating Women
ParticipateGroupStandard
T/CIET 254--2023General Principles for Eye Nutritional FoodsParticipateGroupStandard
T/CIET 256—2023
Technical Requirements for External Eye Care
Products
Participate
GroupStandard
T/CIET 357—2024
General Technical Requirements for theProduction of Sterile Products Using Blow-
Fill-Seal (BFS) Technology
ParticipateGroupStandard
T/CAS 805—2024
Quality Classi?cation and EvaluationRequirements for Front-runner Hair
Conditioner
ParticipateGroupStandard
/
Evaluation Method for Cosmetic Packaging
Compatibility
ParticipateGroupStandard
/
Laboratory Quality Control Speci?cationCosmetic E?ectiveness Evaluation
ParticipateGroupStandard
/
Laboratory Quality Control Speci?cationCosmetic Physical and Chemical Testing
Participate
Standard NameStatus
Role ofMarubiStandard Type Standard Number
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5960
Case Study
Marubi actively engages in collaborative research e?orts addressing key industrial challenges, harnessing its strengths in talentand research platforms to assist Guangdong Province in establishing a new frontier for international green bio-manufacturingR&D and industrialization. During the reporting period, the Company contributed to the progress reporting of two pivotal specialprojects under the Green Bio-manufacturing key research plan targeted at key areas in Guangdong. Concurrently, the companysuccessfully applied for and secured approval for the research project titledDevelopment and Industrialization of BiofermentedRistomycin as an Innovative Cosmetic Ingredientin partnership with Guangdong Pharmaceutical University, further propellingthe industrial utilization of bio-fermented ristomycin.
The Company actively participates in industry associations and industry exchanges, leveraging its professional andexperiential advantages to contribute wisdom and strength to the development of the industry.Supporting Industry Research InitiativesIndustry Exchanges
The R&D representative of Marubi made a presenta-tion at the 7
th China International Cosmetic Technol-ogy Summit
Xiong Sheng, Chief Scientist of recombinant collagenprotein at Marubi, delivered a speech at the ChinaCosmetic Science and Technology Congress
Initiated on August 12, 2022, this project is spearheaded by Marubi and executed through collaborations with institutionssuch as Beijing University of Chemical Technology, Jihua Lab, and Guangdong University of Technology. Amidst theescalating competition in the cosmetics industry and the persistent dominance of foreign brands in the Chinese market,e?ectiveness and innovation have emerged as pivotal breakthroughs for domestic brands. The advancement in technicalraw materials grounded in synthetic biology and green bio-manufacturing undoubtedly o?ers domestic brands signi?cantopportunities to surpass their competitors.The seamless progress of this project will facilitate the e?cient biosynthesis of raw materials for premium daily chemicalproducts and establish a technology framework for bio-manufacturing of daily chemical products with independentintellectual property rights. This accomplishment signifies a significant milestone for Marubi in the realm of pivotaltechnologies and industrial applications of green bio-manufacturing for premium daily chemical products.
R&D Project on Key Technologies and Industrial Applications ofGreen Bio-manufacturing for Premium Daily Chemical Products
China Fragrance and Flavor Cosmetics Industry AssociationMemberGuangdong Cosmetic Science and Technology Research AssociationDirectorGuangzhou Development Zone Intellectual Property AssociationMemberChina Brand Construction Promotion Association - Cosmetic Brand ClusterVice chairman
Guangdong Light Industry FederationDirectorGuangzhou SME's Promotion For Specialization Re?nement Di?erentiation
Innovation Development
DirectorGuangzhou Huangpu District Enterprise-Bene?ting Policy AssociationDirector
Detergent & CosmeticsDirectorChina Anti-aging Promoting AssociationDirectorChina Health Care AssociationMemberGuangdong Quality Inspection AssociationMemberGuangzhou Development Zone Huangpu Cosmetic Industry AssociationExecutive presidentChina Food and Drug Enterprise Quality and Safety Promotion AssociationDirector
Guangzhou Industrial Design AssociationVice-president
Association NameRole
Two Specialized Projects Report Meeting
Industry Associations Joined by the Company
6162
In the process of growth and expansion, Marubi actively engages in industry-university-research collaborations, not onlysupporting the nurturing of industry talents but also fueling the sustainable development with a steady stream of innovativemomentum. So far, the Company has forged collaborative partnerships with universities such as South China University ofTechnology, Jinan University, Guangdong Pharmaceutical University, and Guangdong Vocational College of Light Industry, aimingto jointly foster the development of talents in the cosmetics industry.
Supporting the Cultivation of Industry Talents
Joint Post-doctorate Training
Joint Master'sDegree Training
Internship Base
To further enhance the postdoctoral innovation practice base's role in fostering industry talentsand strengthening industry-university-research collaborations, Marubi partnered with South ChinaUniversity of Technology to jointly nurture postdoctoral researchers, successfully recruiting 3individuals.The collaboration between Marubi and Jinan University hasdeepened during the reporting period. Building upon theexisting professional undergraduate internship base, thetwo entities have established a collaborative training andeducation hub for full-time professional degree graduatestudents.Marubi collaborates with Guangdong PharmaceuticalUniversity in jointly nurturing master's degree students.These collaborating graduate students can commence theirscienti?c research practice at Marubi.Marubi has embarked on university-enterprise cooperationwith the School of Life Sciences and Technology of JinanUniversity, Guangdong Medical University, and GuangdongVocational College of Light Industry, aiming to jointly cultivatehigh-quality and applied talents possessing excellentprofessional qualities and practical skills. As of the end ofthe reporting period, nearly 400 interns have engaged ininternship training.
Collaborative ProjectsProject Introduction
Marubi remains committed to collaborating with its upstream and downstream partners to foster mutual growth,prosperity, and beneficial outcomes. It generously shares its extensive experience and technological advancements,garnered from years of development, with its suppliers and distributor partners. This collaboration aims to jointly promotesustainable development and forge resilient, stable partnerships.
Collaborating with Partners to Folster aBeautiful Ecosystem
Marubi has formulated theSupplier Management Manual,specifying the whole life cycle from introducing suppliers, audit,procurement, cooperation, and evaluation management, to elimination. According to the open, fair and just principles, theCompany utilizes a supplier management platform to systematically regulate supplier relationships, continually enhancing thestable and sustainable supply chain.
Marubi has developed a sustained empowerment framework for its distributorspartners, collaborating closely with them to promote sustainable growth. Duringthe reporting period, 3,530 training sessions were organized for daily chemicalpartners, reaching out to 22,860 individuals. Similarly, 724 training sessionswere conducted for general merchandise partners, covering10,206 participants.Furthermore, the Company launched the Little Teacher initiative, specificallydesigned for distributors partners, successfully qualifying 204 individuals. Thisinitiative enables distributor partners to independently conduct consumer-oriented events such as private sessions and salons, thereby significantlyenhancing their service delivery capabilities.
Distributors Management
Sustainable Supply Chain
During the supplier selection process, Marubi prioritizes those with green credentials and comprehensive management systemsencompassing production management, environmental protection, safety, and business ethics. Throughout the collaborations,Marubi adheres strictly to the principle of transparent procurement, annually signing theIntegrity Cooperation Agreement
with the suppliers and providing whistleblowing channels. Internally, the Company conducts integrity training for procurementpersonnel, focusing on topics such as gift handling and con?ict of interest. We also incorporate integrity indicators into theirperformance appraisals and implement a rotation policy every 2-3 years to ensure continued vigilance.Currently, the Company has implemented regular ESG audits for a select group of key suppliers. In the future, Marubi will strive toextend the ESG audit process to cover all our key suppliers, thereby elevating the sustainability level of our entire supply chain.Marubi follows the concept of green procurement, advocates the preemption and use of raw materials with less impact onenvironment and human body, gradually integrates the principle of sustainable development to supplier management andreview, continues to complete sustainable procurement procedures, and improves the sustainable attribute of the wholeindustrial chain. As required by the Company, the supplier's product should contain information about hazardous substance,recyclable material, etc. To ensure the validity of green procurement, the Company implements environment audits and regulartraining.
Supplier ESG Management
Green Procurement
The raw material complying with organic certi?cations such as COSMOS is the ?rst choicePrioritize the procurement of the raw material complying with the Roundtable Sustainable Palm Oil (RSPO)Prefer the suppliers who adhere to the Nagoya ProtocolEncourage packaging material suppliers to use environmentally friendly inksFavor the procurement of packaging materials with FSC certi?cation
Distributors Training Session
Little Teacher Project Training
6364
Protecting theEnvironment andPreserving the Ecology
Environmental protection managementAddressing climate changeWaste management
Saving resource usagePromoting green officeCreating green buildings
Marubi's Actions：
Contributing to the SDGs
Marubi stays committed to building a green enterprise featuring "cleanness, high efficiency,low carbon, and recycling" and aims to realize the sustainable and green growth. The Companyactively aligns with the national strategic objectives of achieving carbon peak and carbon neutralityand consistently invests in environmental protection management, addressing climate change,conserving resources, managing emissions, and promoting green building practices. Throughcontinuous enhancement of its environmental management system, adopting lean productionmethods, and rigorously managing energy, resources, and emissions, the Company aims to forgeahead towards a greener and more sustainable future.
6566
Marubi has firmly established an environmental policy that prioritizes environmentalprotection as a core responsibility, committing to taking care of our environment. Fueledby innovative concepts, technologies, and processes, the Company strives to continuouslypromote energy conservation, emission reduction, and operational e?ciency across ourproduction and operations. The Company has obtained the ISO14001 Certification forEnvironmental Management Systems and Clean Production Recerti?cation, and also beenawarded as the Guangzhou Green Factory.In alignment with the ISO14001 Environmental Management System standards,Marubi has crafted a comprehensive suite of institutional documents, including theEnvironmental Factor Identification and Control Procedure.These documents facilitatethe ongoing identification, evaluation, and updating of environmental impact factors,serving as a foundation for setting environmental protection goals and metrics, as well asguiding operational control measures.
Embracing Green Values and ImprovingEnvironmental Management
During the reporting period
millionRMB
Environmental investment
1.36
Low energy consumptionfor product use
Low production resourcedemandsLow toxicity of raw materialsLow recycling cost
Marubi's Four Basic Environmentally Friendly Principles
Marubi actively responds to the national strategy of carbon peak and carbon neutrality goals, enhancing theapplication of clean energy and striving to reduce energy consumption through technological upgrades andequipment improvements and continuously improves energy performance levels to enhance energy utilizatione?ciency.
Low-Carbon Transformation to AddressClimate Change
The electricity consumptionper unit of output decreasedby
%
4.5
Improving the Energy Management System
Initiatives Toward Carbon Neutrality
The Company has established the Energy Management Manual and formed an Energy Management LeadershipTeam headed by the 5C Center Plant Manager to continuously optimize the energy management system. Duringthe reporting period, the Company obtained ISO50001 Energy Management System certi?cation.
Marubi remains committed to its energy policy of optimizing energy structureand implementing comprehensive process management. Aligning withpertinent laws and regulations, including theNotice on Further Enhancing theUpgrading and Implementation of Energy-Saving Standards and theIndustrialEnergy Conservation Administrative Measures, the Company has developedcomprehensive management frameworks, such as theResource and EnergyConservation Management Systemand theControl Procedure for EnergyObjectives, Benchmarks, and Performance Parameters. Annual targets and plansare set for emission reduction, with rigorous monitoring of their implementationto ensure a gradual decrease in carbon emissions. During the reporting period, theelectricity consumption per unit of output decreased by 4.5% year-on-year.
ISO50001 Energy ManagementSystem Certi?cation
ISO50001 Energy Management SystemCerti?cation Training
ISO14001 EnvironmentalManagement SystemCerti?cation
Key Performance Indicators
6768
Marubi's Energy Policy:
Energy-saving Management
Optimize energy structure and complywith laws and regulations;
Implement comprehensive process managementand continuously improve energy e?ciency.
The Company enhances the management of energy-consuming processes and equipment in order to achievee?cient energy utilization and conservation, thereby contributing to the reduction of carbon emissions.
BenchmarkingManagement forProduction Energy
Use
Undertake benchmarking e?orts pertaining to energy e?ciency, conduct energybalance testing and analysis, devise plans for energy conservation and emissionreduction, and gradually decrease energy consumption.
Energy-savingEvaluation
Gas Pipeline
Management
ProductionSchedulingManagement
EquipmentOperationManagementNon-productionEnergy Use
Management
Establish a comprehensive energy management evaluation system to regularlyassess the progress made by various departments in achieving their energytargets, implementing rewards and punishments accordingly. Personnel whopropose innovative and practical suggestions for energy conservation andemission reduction are duly recognized and rewarded.Prioritize optimizing the combination of production equipment and processparameters, enhance equipment operational efficiency, and ensure the lowestoverall energy consumption when compiling production plans and arrange forthe shutdown, maintenance, or repair of equipment units in a timely and rationalmanner.Implement standardized management practices and regular maintenanceroutines to ensure that the main indicators and parameters of the equipmentunits remain in optimal operating condition.Intensify efforts in the statistics, analysis, and management of non-productionenergy usage, aiming to ensure rational and energy-e?cient utilization.
Strengthen the oversight of gas pipelines, conduct prompt inspections of variousgas pipelines to minimize natural gas losses.
274.03
Technical Energy Conservation
Utilization of Clean Energy
The Company is committed to enhancing energy e?ciency and minimizing energy consumption by continuously upgrading itsenergy-consuming equipment, with the ultimate goal of establishing a low-carbon enterprise.
The Company is actively promoting the utilization of cleanenergy by installing photovoltaic power stations on factoryrooftops, successfully implemented the grid-connected PVsystem in 2018. During the reporting period, the installedcapacity of rooftop photovoltaic stations reached 660.06 KW,generating a total of 602,098 kWh of electricity. 20,910 kWh wassupplied to the power grid, while 581,188kWh was consumedinternally, resulting in an equivalent carbon emissionsreduction of 274.03 tons.
Renovation of the workshop'sconstant temperature andhumidity air cabinet system
By upgrading the control program of the constant temperatureand humidity system, the system now operates automatically asrequired, signi?cantly reducing unnecessary energy consumption.
Annual electricity saving:
340,953.84kWhRenovation of warehouse andcorridor lighting
The corridor's original 36W fluorescent lamps have beencomprehensively replaced with 18W LED energy-saving lamps,resulting in a reduction of 64 lamp tubes in use. The total numberof lamps used in the warehouse has been reduced by 342.
Annual electricity saving:
23,519.81kWh
Renovation of inverter air
conditioner
Three high-power water pumps of the central air conditioningsystem have undergone an energy-e?ciency upgrade, transitioningfrom three-level to two-level energy e?ciency.
Annual electricity saving:
180,575kWh
Upgrade of motor energy
e?ciency
In line with theCatalog of High-energy-consuming and BackwardElectromechanical Equipment (Products) to Be Eliminated(ThirdBatch), a thorough inspection of motor energy e?ciency has beenconducted, leading to the replacement of three low-efficiencymotors.
/
Total energy saving
Annual electricity saving exceeded545,048.65kWh and realized carbonemissions reduction of over 256.99
tons
tons
Resulting in an equivalent carbonemissions reduction of
ProjectContent Achievement
Energy conservation projects during the reporting period
Rooftop Photovoltaic Site
6970
Waste Gas Management
The primary sources of waste gas emissionsstem from boilers and standby generatorsduring operation, as well as dust generatedduring the mixing process of productionline ingredients. Marubi has established acomprehensive and standardized mechanismfor waste gas prevention and control,formulating a waste gas monitoring plan andmaintaining a monitoring ledger. During thereporting period, the Company successfullycompleted the renovation project of its steamboiler combustion engine, effectively reducingatmospheric pollutant emissions.
During the reporting period, the Company has successfully executeda renovation project aimed at enhancing the cleanliness of steamboiler combustion. This involved the installation of a state-of-the-art low-nitrogen burner, coupled with auxiliary emission reductiondevices. Post-renovation, the boilers now adhere to the moststringent emission standards, resulting in a reduction of nitrogenoxide emissions by approximately 0.78 tons annually. Furthermore,the e?ciency of the boilers has been optimized, leading to a dailysavings of 139 m
of natural gas.
Implementing Steam Boiler Waste Gas Emission Reduction RenovationCase Study
0.78
tons annuallyThe emission reduction of nitrogenoxide is approximately
Natural gas usage savings
m?/day
Waste Water Management
Solid Waste Management
The waste water primarily accounts for industrial waste water anddomestic sewage. To ensure e?ective waste water management, theCompany has instituted a rigorous daily supervision mechanism thatinvolves regular monitoring and inspection of all treatment units,coupled with maintaining a comprehensive daily operational logfor the sewage treatment facility. During the reporting period, theCompany successfully undertook the replacement and enhancementof the plate-and-frame filter press, leading to a significant reductionin the moisture content of compressed sludge, thereby effectivelyreducing the weight of sludge entrusted for external disposal.
The solid waste generated during the production and operation ismainly divided into recyclable waste, non-recyclable waste, hazardouswaste, and domestic waste, which are uniformly collected and thenhanded over to quali?ed suppliers for disposal.
Industrial WasteWater
Industrial waste water is centrally treated by the supportingsewage treatment facilities and discharged into the municipalsewage pipeline network after meeting the standards. Theresulting sludge is compressed using a plate-and-frame ?lterpress and subsequently recycled and reused by a third-partyorganization, and then is made into the new wall materialthrough sintering.
DomesticSewage
Domestic waste water must undergo three-level septictank and meets the local standard for the second period oftime before discharging into the municipal sewage pipelinenetwork.
Key performance indicators
tons
70.94
Non-hazardous solid wasterecycled
tons
70.94
Non-hazardous solid wastereused
tons
66.58
Sludge recycled
0.0637
tonsHazardous solid waste disposed
During the reportingperiod
Noise ManagementThe noise pollution are mainly generated by the air conditioningunits, cooling towers, and standby generators during operation.The Company monitors and manages the environmental noise atthe factory boundary and high-intensity noise sources within theproduction area according to the monitoring plan. Regular lubricationis conducted for high-noise equipment, and new equipment with highprecision and low noise is purchased to prevent noise pollution.
Classi?cationMeasures
Waste gas emittedfrom gas-?red boilersWaste gas generated bystandby generators inoperationDust produced duringthe mixing processof production lineingredients
Enhancing the thermal e?ciency of boilersand utilizing environmentally friendly fuelsPurifying the exhaust gas through a spraybox and subsequently discharging it into theatmosphere at a safe altitudeEnsuring e?ective ventilation and deployinga pulsed back-blowing industrial dustcollection system, achieving a ?ltratione?ciency exceeding 99% for dust particleslarger than 0.3?m
Classi?cationMeasures
Pollution Prevention and Control of waste water Discharge
Pollution Prevention and Control of Waste Gas Emissions
Marubi strictly adheres to relevant laws and regulations, including theRegulations onUrban Drainage and Sewage Treatment, theLaw of the People's Republic of China onthe Prevention and Control of Environmental Pollution Caused by Solid Wastes, the
Law of the People's Republic of China on the Prevention and Control of Air Pollution,and theLaw of the People's Republic of China on the Prevention and Control of NoisePollution. To continuously enhance its emissions management system, the Company hasestablished internal regulations, such as theControl Procedures for Wastewater, ExhaustGas, and Noise and the Waste Control Proceduresand also strengthens daily monitoringand conducts regular third-party monitoring to ensure the e?ective implementation ofenvironmental protection measures.
Clean Production to ReduceEnvironmental Footprint Reduction
Recyclable waste
Non-recyclable
wasteHazardous waste
Collection sites are established in public areasfor the purpose of gathering waste, which issubsequently collected and dispatched to a third-party entity possessing recycling qualificationsfor further processing.Stored in designated, ?xed storage areas and thengathered to be sent to a third-party with disposalquali?cations for appropriate treatment.After collection, it is sent to a third party withqualifications for the treatment of hazardouswaste for standardized disposal.
7172
Water Resource ManagementThe Company adopts measures such as strengthening water-saving management, optimizing equipmentmaintenance, and enhancing valve internal leakage management to carry out water resource conservationmanagement. During the reporting period, the Company recycled the cooling water from the emulsifying pot,resulting in a water saving of 165m?/day.
The Company remains committed to the ongoing effort of conserving raw materials and minimizing packagingmaterials and actively explores the establishment of a recycling system for post-consumer product packaging,aiming to reduce resource waste.
Valve Internal Leakage Management
During the reporting period, the Company successfully implemented a
re-circulation upgrade for the emulsifying pot cooling system, e?ectively
enabling the reuse of emulsifying cooling water. Operating with a
daily cooling water consumption of 15m? and utilizing 11 production
pots, the transformation led to a substantial reduction in water usage,
achieving a daily water savings of 165m?.
m?Daily water consumption saving
Routine inspections are strengthened to minimize waterwastage.The cooling water volume is adjusted accordingly based onseasonal changes and unit conditions, ensuring both safety andeconomic e?ciency.The operation and maintenance of the thermal system areenhanced to mitigate leaks and minimize water replenishment.The reuse rate of waste water is elevated, leading to a reductionin external discharge.Regular equipment maintenance is conducted to eliminateleaks and spills, further minimizing water loss.
New technologies and processes areadopted in design, installation, andprocurement to guarantee the quality ofvalves.A regular valve leak detection systemis established, with detection pointsinstalled on critical drainage valves,enabling real-time monitoring andaddressing of any abnormalities.
Water Conservation Management
Raw Material and Packaging Material Management
The Company consistently optimizes its processes and procedures to lower raw material consumption.During the reporting period, a series of conservation measures were implemented, e?ectively reducing bothwaste generation and water consumption, while simultaneously enhancing production and minimizinglosses.
Conservation of Raw Materials
Packaging Materials and Wastes Management
Optimizing Sampling：Implement new sampling guidelines specifically for crucial raw materials,
ensuring that sampling quantities are minimized while ful?lling inspection criteria. This has translatedinto a reduction of 4.6g per batch and a cumulative annual reduction of 23.11kg.Merging Batches： Institute batch merging protocols to address waste arising from QC, filling andpackaging samples, as well as cleanup procedures and toreduce finished product consumption. Themonthly average ?nished product requisition decreased by 28.42% year-on-year.Optimizing Production Scheduling：Manage input losses, volatilization losses, sticking losses, andsample testing discharge volumes by re?ning production scheduling. Consequently, the paste outputrate has increased by 0.21% year-on-year, translating into an additional 5,740kg of paste produced.Optimizing Operations：Optimize ?lling scheduling, stabilize ?lling standards, and minimize the lossof substandard products. These e?orts have collectively resulted in a reduction of paste usage losses by3,754kg.Marubi remains committed to optimizing the utilization of packaging materials, aiming to minimize bothconsumption and waste. During the reporting period, numerous initiatives have been implemented to enhancethe e?ciency of packaging material usage. Additionally, the Company has initiated recycling programs for post-consumer product packaging, significantly mitigating the environmental footprint associated with packagingmaterial consumption.
Reducing Consumptionof Inspection PackagingMaterials
Marubi enhances process protection measures to facilitate the reuse of certain inspectionpackaging materials, thereby minimizing losses during the inspection process.Replacing with CalciumPlastic Turnover Boxes
The kraft paper boxes previously used for transportation turnover have been substituted withcalcium plastic boxes, capable of being reused 20-25 times. This replacement has enabled thereuse of turnover boxes and consequently reduced packaging material consumption.Optimization of Parcel Box
Usage
By promoting the utilization of more generic packaging materials, the inventory of packagingbox SKUs has been streamlined, decreasing from over 30 to just 11. Additionally, based onproduct-speci?c requirements, some ?ve-layer cartons have been substituted with three-layercartons, while sample orders have shifted to being shipped in express delivery bags. Theseoptimizations have resulted in a cumulative savings of 17,941kg of packaging materials.Post-consumption EmptyTube Recovery of LittleGolden Needle Products
A recycling initiative aimed at collecting used packaging from Little Golden Needle products hasbeen initiated. During the reporting period, 502 consumers actively participated in this program,resulting in the collection of 30,120 empty tubes.
ProjectContent and E?ectiveness
Environmentally Friendly and ResourceConservationAccording to resource management regulations such as theWater Law of thePeople's Republic of Chinaand theOpinions of the National Developmentand Reform Commission and Other Departments on Further Strengtheningthe Conservation and Intensive Use of Water Resources, Marubi hasformulated theResource and Energy Conservation Management Systemtoguide the control of water, raw materials, packaging materials, and otherresources, in order to achieve e?ective utilization of resources.
Water Conservation Renovation of Emulsifying Pot Cooling SystemCase Study
7374
Marubi actively promotes resource-efficient and environmentally friendlygreen o?ce. Leveraging internal energy management systems, the Companyactively disseminates the concept of green office work and encouragesemployees to adopt green and low-carbon work and lifestyle habits.
Promoting Green Practices and AdvocatingGreen O?ce
Ecological Integration for the Creation ofGreen Buildings
Green O?ce PracticesTo enhance resource utilization e?ciency and mitigate the environmental impact caused by o?ce operations, theCompany has implemented the following green o?ce measures.
The Company prioritizes environmental protection indicators, including energy consumption and pollutantemissions, as crucial factors in the design of new, renovated, and expanded projects. This approach aims tosignificantly reduce the environmental impact during the construction and operation of buildings. Duringthe reporting period, the headquarters building, which adhered to green building standards in its design andconstruction, reached completion and capping, now entering the decoration phase.
Drinking Water Management：Encourage the sta?s to use their own water cups and reuse barreled waterbottles.Lighting Management：Ensure that lights are turned o? when leaving a room. Maximize the use of naturaldaylight during daytime hours to minimize the need for lighting and conserve electricity.Air Conditioning Usage Management：Maintain the air conditioning temperature at a minimum of 26℃during summer and a maximum of 20℃ in winter.O?ce Paper Management：Save o?ce paper and use double-sided paper for documents that do notrequire saving.Vehicle Usage Management：Optimize the utilization of company vehicles and minimize redundant trips.Transition to electric commuting buses and gradually phase out fuel-powered vehicles to reduce carbonemissions.Low-carbon Equipment Usage：Install charging stations for electric vehicles and prioritize the purchase ofrechargeable o?ce equipment.Garbage Classi?cation：Set up a garbage classi?cation leadership team, formulate garbage classi?cationsolution and management system, and put domestic garbage classi?cation into place.
Material Selection：The decorative and ?nishing materi-als utilized adhere to the national standard, ensuring thatthey meet the criteria for limiting harmful substances to?ve categories or more;Water Conservation Measures：Sanitary ware in thebuilding boasts a water efficiency rating of Level
1. Micro-irrigation systems, inclusive of rain sensors
for automatic shutdown, are employed for landscapingpurposes. Furthermore, a rainwater storage tank is incorpo-rated for various applications such as ?ushing undergroundgarages, irrigating outdoor landscapes, and watering roads;Integrated Design and Construction：The civil engineeringand decoration works are executed through an integrateddesign and construction approach;Material Recycling： The building demonstrates acommendable commitment to sustainability, with a pro-portion of 15% recyclable and reusable materials and aminimum of 50% green building materials utilized.
Solar Energy Utilization：A solarphotovoltaic system covering 59 squaremeters is installed;Thermal Insulation: The roof is insulatedwith extruded polystyrene board, while theexterior walls feature high-performanceglass curtain walls;High-efficiency Equipment: The airconditioning system's circulating pumpsexhibit a power consumption and cooling(heating) ratio that is 20% lower than thecurrent national standard. Additionally,the fans achieve Level 2 efficiency, thelighting power density adheres to nationalstandards, and the transformers boastLevel 2 energy e?ciency.
The new headquarters building of Marubi embodies a high-quality architectural space that prioritizes both energye?ciency and healthiness. This is achieved through meticulous design considerations encompassing air, water,nutrition, light, exercise, thermal comfort, acoustics, materials, spirit, and community. Marubi adheres to the WELLPlatinum standard in all aspects of design, construction, building material selection, and post operation. Duringthe reporting period, the building passed the preliminary review of China Green Building Three Star Standard andWELL Platinum Standard certi?cation.
Environmental Protection MeasuresEnergy Conservation Measures
People-Oriented andCreating the Beauty ofHarmony
Marubi's Actions
Contributing to the SDGs
Employee rights and interestsprotectionDiversity and inclusionCompetitive compensation andbenefitsSmooth communication channels
Empowering employee developmentCaring for employees withconsiderationSafeguarding employee health andsafetyContributing to communitydevelopment
Marubi upholds the core philosophy of people-oriented, embodying the virtues of loyalty,pragmatism, unity, innovation, and gratitude. The Company has comprehensively enhanced itshuman resources system, encompassing recruitment, hiring, training, retention, and management,to foster the growth, maturity, and success of its employees. Marubi emphasizes employee welfare,ensures their health, and fosters a nurturing and supportive workplace environment. Furthermore,Marubi actively ful?lls its social obligations through educational donations, organizing communityevents, and collaborating with various stakeholders in society to foster a harmonious community.
7778
Marubi consistently views safeguarding the fundamental rights and interests of its employees as a paramountresponsibility, strictly adhering to national laws and regulations to guarantee that employees enjoy legitimateentitlements, including wages, working hours, vacations, social insurance, and democratic communication.
Promoting Equity and Diversity forEmployee Rights and Interests
Embracing Equality and Diversity
Free of child labor and forced labor. All new employees are mandated to provide veri?cation documents, includingcopies of their identi?cation cards and academic credentials, to authenticate their identity and safeguard against anyinstance of hiring minor labor. During their employment tenure, the Company strictly prohibits the withholding ofemployees' identity documents, forbids the assignment of any work that violates their will, respects the right to freelychoose the work, and ensures the elimination of forced labor.Preventing harassment and discrimination. To address these issues, Marubi regularly conducts anonymous360-degree surveys among managers to gather pertinent information. In the event of discovering suspected incidents,the Company conducts undercover investigations to authenticate the veracity of the incidents and o?ers psychologicalcounseling to the victims.The Company always advocates and adheres to gender equality and employment diversity, striving to cultivate a diverseand inclusive talent team. As of the end of the reporting period, the Company has 1,101 employees, exhibiting thefollowing sta? structure.
As of the end of the reporting period, the employee structure is as follows:
Gender
Female
50 years old and aboveMainland ChinaLabor contract
PhD degreeBachelor's degreeMale
30 to 50 years oldOther countries and regionsRetirement re-employmentagreementUnder 30 years old
Master's degreeJunior college degree and belowAgeRegionEmployment Type
Education Background
As of the end of the reporting period
Key Performance Indicators
%Female in senior management
Retired employees re-employed
Ethnic minority employees
Veterans
Employees with disabilities
32.88%
1.54%
1,095
99.46%
1,099
99.82%
0.18%
44.96%
0.73
%
67.12%
53.50%
0.54%
4.54%
30.70%
64.03%
The Company strictly abides by theLabor Law of the People's Republic of China, theLabor Contract Law of the People'sRepublic of China and the Social Insurance Law of the People's Republic of Chinaand other laws and regulations, touphold compliant employment practices. During the reporting period, the Company has revised and updated the internalsystems, such as theEmployee Handbook and the Recruitment Management System.The Company upholds principles ofopen recruitment, fair competition, merit-driven hiring, and prioritizing internal candidates and maintains gender equalityin hiring, prohibits all forms of employment discrimination and workplace harassment, and strictly prohibits forced laborand child labor.
7980
Salary and WelfareThe company has instituted crucial management frameworks, including theSalary Management Systemand theWelfareManagement System, to provide employees with legitimate and comprehensive salary and welfare packages. and toensure that employees are able to reap the bene?ts of the company's progress.Remuneration and Talent Motivation
Employee Welfare
Marubi ?rmly adheres to the principle of equal pay for equal work, upholding thebasic rules of fairness, competitiveness, motivation, acceptability, adaptability, andlegality. In addition to being compliant with local provisions and being higher thanthe local minimum wage, the Company also benchmarks its salary levels againstthose in the same industry and regional market. Salary adjustments are made basedon factors such as job value, work experience, professional expertise, and individualperformance, thus ensuring the ongoing competitiveness of the salary structure.The salary structure comprises a ?xed base salary, variable incentives, and additionalwelfare subsidies. Bonuses are awarded based on employee performance, fosteringa culture of shared interests and risks that encourages employee engagement andenthusiasm. During the reporting period, the Company has further optimized andenhanced its salary and talent motivation efforts, focusing on the fairness of itssalary structure both internally and externally.Marubi advocates the values of "learning by heart, concentrating on work, andliving happily". In addition to o?ering fundamental statutory welfare bene?ts to allits employees, it also provides five distinct categories of exclusive welfare aimedat boosting the overall happiness and satisfaction of its workforce. These includecare during festivals, medical and health support, service facilities, opportunitiesfor learning and growth. During the reporting period, the Company has furtheraugmented its employee welfare initiatives including enhancing the lunch allowancestandard at the headquarters, introducing a smart cafeteria to enhance the diningexperience of employees, and organizing afternoon tea sessions and various otheractivities for the bene?t of its employees.
pension insurance, work injury insurance,
unemployment insurance, maternity insurance,
medical insurance, public housing fund
statutory paid leaves, statutory annual leave,marriage leave, maternity leave, bereavementleave, prenatal examination leave, paternityleave, breastfeed leave
Statutory Welfare
Five social insurances and housing fundPaid leaves
Wedding giftBaby giftHealth giftBirthdayparty
Commercial insuranceAnnual physical examination
Parking and parking spacemanagement
Training allowance
Festival welfareEmployeepurchasediscountRetirement gift
Full attendance bonusLunch allowanceTransportation allowanceFilial piety salary
Mobile phone bill allowanceLaptop allowanceBusiness travel allowanceHigh-temperature allowanceMarubi honor award
During the reporting period, the Company headquarters builta smart canteen aimed at enhancing the dining experience ofits employees. This innovative facility o?ers a diverse selectionof healthy dishes for employees to choose from, saves time fordining out and ensures the safety of employees' meals.
"Double Eleven" Shopping Festival 5CCenter Welfare Distribution
Marubi Built a Smart Canteen for EmployeesCase Study
Festival care
Convenient Services
Subsidies
Health protection
Learning and development
Corporate Special Bene?ts
Retirement Bene?ts
8182
Democratic Communication
To build a smooth communication bridge with employees and foster a work culture of mutualtrust and shared progress, Marubi has formulated theComments and Suggestions Collection,Handling and Feedback System. This system incorporates various democratic communicationchannels to gain a deeper understanding of employees' mindsets and listen to their voices.The HR Department systematically categorizes and summarizes these suggestions, assigningthem to the appropriate departments for processing. Following the department heads'handling, the HR Department announces the outcomes at employee meetings, ensuringthe timely and e?ective collection, processing, and feedback of the suggestions. During thereporting period, the Company achieved a 100% resolution rate for employee suggestions.
%
Resolution rate foremployee suggestions
Face-to-faceFeedbackSuggestion Mailbox
OA "I Make Suggestionsfor the Company"Column
Marubi holds a ?rm belief that employees are the most invaluable asset and prioritizes employee training anddevelopment, establishing a multi-tiered training system that empowers diverse talents to grow. Additionally,the Company creates diverse career paths to assist employees in continuously enhancing their capabilities andpotential, enabling them to achieve their personal aspirations.
Empowering Employees to Achieve TheirDreams
Cultivating TalentGuided by the values of life-long learning and practice, the Company strivesto establish a competitive learning environment and cultivate professional,dedicated, and focused talents. Leveraging the comprehensive onlinelearning platform of Marubi Academy, the Company implements athree-level training system encompassing new employee orientation,professional skill enhancement, general management capabilitydevelopment, and leadership training. This comprehensive approachsupports the execution of the corporate strategy, business expansion, andthe enhancement of human capital value. During the reporting period, theCompany optimized the employee training system and tailored trainingcourses to align with job requirements, aiming to enhance employees' jobcompetence.
Cultivation
of seniormanagers
Talents withcoordinatedmanagementskills
Cultivate business partners that have far strategic vision,recognize Marubi's corporate culture, and with overallmanagement capacity through the Joint training program -EMBA courses of SUN YAT-SEN UniversityCultivation ofmiddle-level
managers
Management
experts
Committed to cultivating the management elites of di?erentspecialties through educational promotion, improvingthe professional capacity of the middle level staff, andstrengthening the backbone forceCultivation ofjunioremployees
Talents withexecutionabilities
Dedicated to cultivating management trainees andhigh potential talents at junior level, and strengtheningbackbones for the basic level
Cultivation LevelCultivation ObjectivesCultivation Methods
Employee Communication Channels
Three-level training system
8384
To cultivate strategic development talents, the Company has embarked on a collaborative EMBA training programwith Sun Yat-sen University since February 2022. Through rigorous and structured learning and training, theparticipants have successfully built a comprehensive knowledge base while honing their capabilities to thinkcritically and resolve challenges in intricate business landscapes. As of the end of the reporting period, 91employees have joined this program, of which 64 have successfully graduated.
Marubi AcademyThe Company sets up three colleges based on di?erent learning demands of front, middle and back platform personnel:
including Brand Management College, Operation College and Retail College. Such colleges provide systematic learningcourses respectively targeting general knowledge and professional knowledge such as management, operation, skills,products, and scienti?c principles. After completing online learning, employees must successfully pass online exams, andtheir learning records serve as a criterion for evaluating their promotion eligibility. As of the end of the reporting period, atotal of 2,095 online courses were o?ered, amounting to a grand total of 94,648 hours of course content.
To empower employees with new skills in the digitaleconomy and foster the enterprise's digital growth,the Company incorporated original courses offeredby Tencent, enabling employees to participatein the training sessions and acquire qualificationcertifications free of charge. During the reportingperiod, 92 individuals successfully obtained theTencent community operation and channel operationquali?cation certi?cations.
New Employee TrainingProfessional Skills Development
The Company consistently organizes comprehensivetraining sessions for its new hires, encompassingfactory tours, introductions to corporate culture,detailed product demonstrations and experiences,explanations of career development paths,presentations on compensation and benefitssystems, as well as discussions on channel business.During the reporting period, a two-day, one-nightintensive training camp was held specifically fornew employees. Furthermore, to facilitate the swiftintegration of new employees in the e-commercedepartment, 1V1 newcomer training program wasimplemented, yielding favorable outcomes.
The Company attaches utmost importance to nurturingand enhancing the job skills of its employees, activelyencourages participation in nationally recognizedvocational qualification exams and offers financialassistance to those pursuing certifications pertinent totheir job roles. Additionally, the Company provides supportto engineers of all levels in their pursuit of professionaltitle assessments, fostering a culture of lifelong learning.Annual training programs are conducted across multipledimensions, encompassing product expertise, hands-onproduct experience, live streaming techniques, and job-speci?c competencies, aimed at elevating the professionalcapabilities of employees.
During the reporting periodSupported 5 employees for vocational quali?cation certi?cationwith a total subsidy of RMB
14,290
Supported
engineers in participating in professional title evaluations, with a total support amount of RMB
57,150Conducted
professional skills training sessions, with a cumulative training duration of
473.5
hours, covering
1,612
individuals
individuals achieved quali?cation certi?cation in Tencent community operation/channel operation
Tencent Course Learning Quali?cation Certi?cation
2022 Graduation Group Photo of Sun Yat-sen University EMBA Program
Implementing the EMBA Senior Management Talents TrainingProgram with Sun Yat-sen University
Free Qualification Certification in Tencent CommunityOperation and Channel Operation
Case Study
Case StudyNumber of new courses added
Total employee training duration
During the reporting period
New course hours added
Employee training coverage ratehours
hours
%
29,081
30,626
Key Performance Indicators
Key Performance Indicators
Leadership Training
In order to refine the process of discovering and nurturing managerial talents, and foster a cadre team that is bothresilient and e?ective, the Company has established theCadre Management Measuresto standardize the managementof its cadre workforce. The Company implements various training initiatives, including regular cadre training, new cadretraining, and core cadre transition plans, to empower and enhance the growth of cadres across all levels.
The Company provides employees with dual career channels, encompassing both managementand professional sequences. It strives to build a fair, just, objective, and qualified promotionsystem. Employees can progress horizontally and vertically to achieve their career aspirations.Furthermore, the Company has established theInternal Recruitment Management Systemtostandardize the internal hiring process, thereby expanding employees' career developmentopportunities. During the reporting period, the Company re?ned theQuali?cation ManagementMeasuresand established graded and categorized quali?cation standards to guide employees incontinuously enhancing their work performance.
The Company offers employees diverse career development paths, aiming to empower them to fully realize theirpotential, enhance performance feedback and continuous improvement, and cultivate a talent pool with a balanced mixof knowledge, skills, and age.
Career Development
Career Development Paths
In December 2023, the Company tailored theHRManagement for Non-HR Managerstraining programspeci?cally for cadres within the e-commerce department.The objective of this training was to empower andenhance the leadership capabilities of cadres acrossvarious dimensions, including role comprehension, talentidentification, talent nurturing, talent deployment, andtalent retention. The results of a subsequent survey revealedthat the training achieved a satisfaction rate of 95.69%.
Composition of Quali?cation Standards
8586
Training Scene
During the reporting period, the Company tailored the training sessionHuman Resource Management for Non-HR Managersspecifically forthe e-commerce department. Additionally, Guangzhou Passional Lover,a subsidiary of the Company, organized an intensive 8-hour trainingprogram namedThe First Transition of New Managersfor 22 middle andsenior management personnel as well as key position employees, aimingto further empower and accelerate their growth as leaders.
HR Management for Non-HR Managers Training ProgramCase Study
Value AlignmentCharacter and Conduct
Professional sequence: general capabilities + professional
capabilities
Key Contributions
Capability Standards
Management sequence: management capabilities + professional
capabilities
8788
The Company implements a fair recognition and promotion framework rooted in performance appraisals. The annualperformance scores of all employees are comprehensively aligned with business metrics, and the individual jobevaluation scores act as the fundamental criterion for determining employee performance bonuses, promotions,recognition, training opportunities, and other relevant tasks. To enhance the e?ectiveness of performance management,the Company revised thePerformance Management Systemduring the reporting period, emphasizing performancefeedback and interviews, thereby facilitating continuous employee growth and development through performanceappraisals.
The Company conducts regular talent inventories. Duringthe reporting period, the Company has conductedtwo rounds of talent inventories specifically targetingheadquarters personnel and factory supervisorsand above. These inventories encompassed annualwork reports, performance appraisals, and capabilityevaluations. The outcomes of these inventories informdecisions on employee capability assessments,recruitment needs matching, personnel promotions,annual training plan formulations, talent pipelinedevelopment, and other related endeavors.
The Company enhances its talent reserve byoptimizing recruitment channels and establishingtalent pools. Internal talent inventories lead tothe formation of internal talent pools throughcapability identification and talent tagging.Additionally, the Company leverages competitortalent mapping to identify and attract mid-to-high-level talents from the industry, therebysolidifying a high-quality talent reserve.
The Company conducts regular talent inventories. The Company regularly performs talent inventories to assess theoverall capabilities of its employees, and applies graded and categorized management approaches tailored to distincttalent pro?les, ultimately contributing to its talent reserve.
Talent InventoryTalent Reserve
Aligned with our corporate philosophy of "enterprise is family, school, and military", Marubi strives to createa workspace that embodies care and support, bolstering employees' feelings of happiness and belonging.During the reporting period, the Company has continuously hosted diverse cultural activities, including theestablishment of a comprehensive employee care center featuring four functional rooms and the introduction ofsocial events catered to single professionals. Additionally, the Company regularly conducts quarterly satisfactionsurveys, achieving an average satisfaction rate of 88.85% during the reporting period.
Enriching Workplace Experienceswith Intimate CarePerformance Management
Talent Inventory and Reserve
Marubi annually organizes a rich array of cultural activities aimed at fostering a deeper understanding and appreciationof the corporate values among employees. These activities not only enrich employees' leisure time but also contribute tothe deep integration of the corporate culture within the Company.Cultural Activities
During the reporting periodNumber of employees receiving performanceappraisals or career development evaluations
Coverage rate of employees receiving performanceappraisals or career development evaluations1,101
Photography Competition
Award Ceremony
Final Match of the Second Sta? Badminton CompetitionTeam-building ActivityNew Year Wish 's Event
Mid-Autumn Garden Party
Quarterly MeetingThe
th Cultural FestivalThe 21st Anniversary
Key Performance Indicators
%
8990
The Company holds female care in high regard, annually celebrating International Women's Day on March 8
thtodemonstrate its appreciation and support towards its female workforce. During the reporting period, the Company
The Company adheres strictly to relevant laws and regulations, developing a comprehensive suite of safety managementdocuments including theEmergency Rescue Plan in Case of Accidents Caused by Precursor and Explosive Chemicals,theHazardous Chemicals Safety Management Procedures,theEmergency Preparedness and Response Control Procedures.
By setting clear safety production objectives and conducting regular safety risk assessments and drills, the Companyensures the seamless execution of safe production practices.The Company has established a dedicated Safety Department tasked withoverseeing safe production management. This department establishesannual safety production targets and facilitates the efficient executionof various safety-related initiatives. During the reporting period, theCompany achieved 100% completion rate of safety production goals.
Female Care
Networking Activities
Marubi has consistently prioritized the occupational health and safetyof its employees, establishing a robust occupational health and safetymanagement system that ensures necessary safety measures andpsychological support are provided to employees. The Company hasobtained and maintained the ISO45001 Occupational Health and SafetyManagement System certification, a testament to its commitment toe?ective and ongoing safety practices.
ISO45001 Occupational Healthand Safety Management SystemCerti?cation
Safeguarding Health and Safety throughSecure Production Practices
Safe Production
Safe Production Management
Completion rate ofsafety production goals
eligible single employeesparticipated in the event
%
2023 Environmental, Social and Governance(ESG) Report
%
Number of major safetyaccidents
Lost workdays due towork-related injuries
Employee safety training coverage rate
Occupational diseases incidence rateInjury rate at work
days%
0100
Women's Day Breakfast Delivery Event Baby Care Room
Networking Activity
headquarters served a satisfyingbreakfast to each female colleague onthe day of Women's Day and organizedan on-site blind box lottery event.Furthermore, a brand-new Baby careroom was established within the 5CCenter, providing postpartum motherswith added convenience and comfort.
The Company holds a profound concern for the personal well-being and happiness of single young men and women, onValentine's Day, collaborated with the trade unions of variousenterprises in Huangpu District to organize networking activities.Twenty eligible single employees participated in this event.
Key Performance Indicators
9192
Case Study 1
Case Study 2
The Company has formulated theHazard Source Identi?cation and Evaluation Control Proceduresto strengthen safetyrisk management, adhering to the principle of balancing prevention and emergency response. The Company alsoconducts safety risk evaluation every year and implements e?ective control measures according to the evaluation results.
The Company has prioritized safety training as an integral part of its daily operations. In addition to conducting safetyproduction monthly training, the Company implements daily safety production training, committed to building a goodsafety culture, and improving the safety protection awareness and skills of all employees. During the reporting period, theCompany responded proactively to potential safety hazards by organizing ?re evacuation drills, ?re rescue competitions,and emergency training simulations for natural gas leaks. Additionally, targeted safety training was provided to newemployees and part-time safety o?cers, covering a cumulative of 1,422 individuals receiving training throughout the year.
During the reporting period, the Company invited external experts toconduct a mental health training session entitledUnderlying Logic andEnvironmental Variables in the Internet Era.This training aimed to fostera positive, healthy, and stable mindset among employees and enhancetheir sense of well-being and resilience. The comprehensive courseencompassed topics such as self-awareness, emotion management,stress adjustment, goal setting, team collaboration, and fosteringa positive mindset. The training lasted for 6 hours, covering 132participants.
To prioritize the mental well-being of its employees, the Company collaborated with the Guangzhou HuangpuDistrict Social Construction Promotion Association to establish the "Marubi Yuexin'an Enterprise Peace Station"within the 5C Center. This initiative officially commenced on June 25, 2023. To streamline its operations, the
Safety Inspections: The Company performs monthly EHS (Environment, Health, and Safety) inspections to promptlyidentify deviations and inconsistencies in the production process, followed by the formulation of corrective measures fortimely recti?cation. Furthermore, a part-time safety inspector patrol system is in place to ensure the ful?llment of safetymanagement responsibilities at every level, eliminating accident hazards at the source.
Safety Risk Screening
Safety Culture Construction
During the reporting period
%Occupational health andsafety training coverage rate
%Coverage rate of occupational disease medical examinationsfor employees in occupational disease risk positions
The Company places signi?cant emphasis on the occupational health and safety of its employees, striving to create a safeworking environment and consistently engages professional third-party organization to supervise all occupational healthhazards. Employees in positions exposed to such hazards are provided with necessary protective equipment, includingearplugs, disposable medical masks, and gas masks. Additionally, the Company ensures that all employees undergoannual occupational health screenings, achieving a 100% coverage rate.Furthermore, the Company recognizes the importance of employee mental well-being. Various departments worktowards enhancing the mental health of their staff through initiatives such as mental health training, psychologicalcounseling support, and other methods. During the reporting period, the 5C Center launched the "Marubi EnterprisePeace Station", o?ering employees complimentary 1V1 psychological counseling services and free educational lectures.
Occupational Health
Mental Health Training onUnderlying Logic and EnvironmentalVariables in the Internet Era
Marubi Enterprise Peace StationChemical Emergency Drills
Safety Production MonthFire Safety Drill
Training Scene
Room of the Peace Station
Chemical Safety Management: The Company prioritizes daily safety management,
emphasizing the prevention of chemical leakage and expltosion. TheHazardousChemicals Safety Management Proceduresthat detail stringent measuresfor procurement, transportation, storage, utilization, and waste disposal ofhazardous chemicals. During the reporting period, the management of toxicand explosive chemicals adhered to legal regulations, resulting in zero chemicalsafety accidents.Safety Emergency Response. The Company has established comprehensive
internal systems, including theEmergency Response Plan for ProductionSafety Accidentsand theEmergency Rescue Plan in Case of Accidents Causedby Precursor and Explosive Chemicals, effectively preventing and controllingpotential incidents such as fires, explosions, and dangerous goods leaks. Anemergency command department has been set up, with the factory directorserving as the general commander and the deputy factory director as the deputycommander. This department oversees various emergency response teams,ensuring the e?cient execution of emergency response measures. Furthermore,the Company regularly organizes targeted emergency drills, such as chemicalemergency drills, to mitigate the risk of unexpected accidents and safeguard thesafety of its employees.
Key Performance IndicatorsDuring the reporting periodTotal Number of IndividualsParticipating in Safety ProductionTraining1,422
Key Performance Indicators
Company has formulated thePeace Station Management Measures. Atthis station, employees of the 5C Center have exclusive access to 1V1free psychological counseling services and occasional mental healthworkshops, facilitated by professional counselors. The Companyprovides confidential support for employees seeking assistancein psychological counselling and protects their privacy. During thereporting period, four diverse mental health workshops were held,incorporating yoga, music, and other body-mind therapies, fosteringa relaxed and positive work environment.
9394
Adhering to the corporate responsibility credo of "Gratitude toSociety, Action for Love", Marubi has demonstrated its commitmentto society through tangible actions. Since the inception of theMarubi Fully Caring Fund in 2008, the Company has prioritizededucation support, women's empowerment, community service,and other endeavors, aiming to establish itself as a compassionateand accountable enterprise that collaborates with society to sharedevelopment successes and jointly forge a brighter future.
Gratitude to Society and FosteringCommunity Prosperity
During the reporting period
millionRMBPublic welfare donations
1.5
Education Assistance to Chongqing University of Technology
Rose Plan, Dedicated Project to Supporting Mothers in Dilemma
Makeup Teaching Scene
Specialized Training on Anti-DomesticViolence Rights Protection and LegalEducation
Key Performance Indicators
Since 2015, the Company has been consistently extending its support to Chongqing University of Technology.During the reporting period, a total of RMB 1.4 million was donated to the Education Development Foundation,alongside 40 trophies and thousands of sponsored products of the university.
To foster harmony within families and assist those trapped in domestic violence crises in escaping theirpredicaments, the subsidiary Guangzhou Passional Lover, leveraging the platform of Guangzhou Women'sFederation Wanshixing Rights Protection and Comprehensive Service Center, has embarked on the "PerfectProtection and Accompanying Love" initiative aimed at empowering women against domestic violence. Thisendeavor establishes a one-stop consultation service for the anti-domestic violence hotline, drawing upon theexpertise of a professional team and adopting a holistic approach that integrates law, psychology, and social workto guide women in expressing their demands in a legal and rational manner. Moreover, the Company disseminatedtypical cases through various channels such as news media, o?cial account, and micro-blog. At the same time, theCompany conducted o?ine anti-domestic violence training sessions on rights protection and legal awareness toeducate the public on anti-domestic violence knowledge and skills.
To empower mothers experiencing di?cult circumstances in their pursuit of employment and entrepreneurship,and to foster their awareness of professional image in the workplace, the Rose Plan project was successfullyexecuted on July 6, 2023. This initiative, titledCharm for Her, Graceful Blooming, was jointly guided by theGuangzhou Municipal Women's Federation and the Guangzhou Civil Affairs Bureau, funded by the GuangzhouCivil Affairs Bureau(Guangzhou Welfare Lottery Public Welfare Fund), and hosted by the Guangzhou Womenand Children Development Center. The implementation was further facilitated by the Yuexiu District Women'sFederation and the Guangzhou Jinguo Social Work Service Center.
Case Study 1
Case Study 2
Leading the way was the volunteer service teamof Guangzhou Passional Lover, a subsidiary of theCompany. They conducted comprehensive trainingsessions, divided into two parts, speci?cally tailoredfor mothers. These sessions emphasized the creationof professional makeup styles, delivered througha blend of theoretical explanation, demonstrationteaching, and hands-on practice. This approachaimed to empower participants to recognize anddevelop their own professional image, ultimatelyenhancing their enthusiasm for entrepreneurship andcompetitiveness in the workplace.
"Perfect Protection and Accompanying Love", EmpoweringWomen Against Domestic ViolenceCase Study 3
During the reporting period, the project team organized fouranti-domestic violence training sessions dedicated to rightsprotection and legal education. The total reading volume of theanti-domestic violence articles on the o?cial account exceeded6,000 views. Furthermore, the Company provided anti-domesticviolence rescue guidance, crisis intervention, and personalsafety protection order application assistance to 50 womenwho had experienced domestic violence. Simultaneously, theCompany collaborated with professional volunteer teams too?er legal, psychological, and family mediation services to thesewomen. Through collaborative e?orts, we have assisted victimsof domestic violence in safeguarding their legitimate rights andinterests in accordance with the law.
9596
AppendixKey Performance Table
EconomyIndicatorUnit202120222023RevenueRMB million1,7871,7322,226Net pro?tattributable toshareholders of theCompany
RMB million248174259Total assetsRMB million3,7624,0944,454Number of R&Dpersonnel
Person979393R&D personnelproportion
%8.108.778.45
R&D investmentRMB'00050,488.252,925.762,287.6Tax amountRMB million253263239
EnvironmentTopicIndicatorUnit202120222023
Renewableenergy
Photovoltaic powergeneration
kWh690,800655,185602,098
Energy use
Purchased electricitykWh4,617,8464,707,0004,456,188Natural gasm?238,997228,071246,041Diesel oilL//30Comprehensiveenergyconsumption
Tons of standard coal913.33905.81915.54Energy intensity
Tons of standard
coal/100 million
yuan of revenue
51.1152.3341.13Energy e?ciency
100 million yuan ofrevenue/tons ofstandard coal
0.020.020.02Greenhousegas
Total emission
Tons of carbondioxide equivalent
2,694.602,712.992,633.70Scope 1
Tons of carbondioxide equivalent
517.29493.64523.61Scope 2
Tons of carbondioxide equivalent
2,177.312,219.352,101.09Waste water
Total emissionTon11,49311,12510,034Emission intensity
Ton/10,000 yuan ofrevenue
0.060.060.05Waterresource
Amount of waterconsumption
Ton54,92757,19052,630Intensity of waterconsumption
Ton/10,000 yuan of
revenue
0.310.330.24Water resourcee?ciency
10,000 yuan ofrevenue/ton
3.253.034.23Waste
Amount of generatedhazardous wastes
Ton/1.520.0637
Society
TopicIndicatorUnit202120222023
Employees
Total number of employeesPerson1,1971,0601,101By gender
MalePerson377358362FemalePerson820702739By educationalbackground
College degree orbelow
Person779707705Bachelor degreePerson351299338Master degree orabove
Person675458By age
Under 30 years oldPerson53943849530 - 50 years oldPerson636597589Over 50 years oldPerson222517Gender of themanagement
MalePerson427474FemalePerson59133145Diversity
Number of employeesfrom ethnicminorities
Person/4317Number of peoplewith disabilities
Person/44Number of veteransand demobilizedsoldiers
Person/89Number of local employmentPerson/221201Signing rate of labor contracts%100100100Coverage rate of social insurances%100100100Coverage rate of labor union%100100100TrainingTotal hours of employee trainingHour21,43228,52229,081Occupationalsafetyand health
Number of employment injuryaccidents
Number000Number of employment injuriesPerson000Number of accidents involving work-related fatalities
Number000Number of work-related fatalitiesPerson000
Suppliers
Total number of suppliersNumber218172227By region
Suppliers fromMainland China
Number210167227Suppliers from HongKong, Macaoand Taiwan andoverseas suppliers
Number850CommunityPublic donationRMB '0003,072.5 2,5001,500
Note: For other ?nancial data for the year 2023, please refer toMarubi 's 2023 Annual Report.
Note:
1. The statistical caliber of EHS data is 5C center;
2. The main sources of greenhouse gas emissions are natural gas, electricity, and diesel;
3. The comprehensive energy consumption data, energy intensity, and energy e?ciency for 2021 and 2022 have been updated due to the increase in
the calculation caliber of photovoltaic power generation self consumption;
4. The greenhouse gas emission data for 2021 and 2022 have been updated due to the updating of calculation methods and the selection of electricity
emission factors (using the average carbon dioxide emission factor of 0.4715kgCO
/kWh for electricity in Guangdong Province in 2021 released by theMinistry of Ecology and Environment and the National Bureau of Statistics).
9798
IndexGRI Content Index
GRI StandardDisclosureCorresponding chapter or section
GRI 2: GeneralDisclosures2021
2-1Organizational detailsAbout Marubi2-2
Entities included in the organization'ssustainability reporting
About the Report2-3Reporting period, frequency and contact pointAbout the Report2-4Restatements of informationKey performance table2-6
Activities, value chain and other businessrelationships
Collaborating with Partners to Folster
a Beautiful Ecosystem
Delivering Exceptional Service and
Upholding the Promise of Beauty2-7Employees
Promoting Equity and Diversity for
Employee Rights and Interests
Key Performance Table2-9Governance structure and composition
Enhancing Governance and Solidifying
Development Foundations2-10
Nomination and selection of the highestgovernance body
Enhancing Governance and Solidifying
Development Foundations2-11Chair of the highest governance body
Enhancing Governance and Solidifying
Development Foundations2-12
Role of the highest governance body inoverseeing the management of impacts
ESG Management
Stakeholder Communication2-13
Delegation of responsibility for managingimpacts
ESG Management
Enhancing Governance and Solidifying
Development Foundations2-14
Role of the highest governance body insustainability reporting
ESG Management2-15Con?icts of interest
Operating with Integrity and Adhering
to Business Ethics2-16Communication of critical concernsStakeholder Communication2-19Remuneration policies
Promoting Equity and Diversity for
Employee Rights and Interests2-20Process to determine remuneration
Promoting Equity and Diversity for
Employee Rights and Interests2-22
Statement on sustainable developmentstrategy
Message from Chairman2-23Policy commitments
Operating with Integrity and Adhering
to Business Ethics
Promoting Equity and Diversity for
Employee Rights and Interests2-24Embedding policy commitments
Operating with Integrity and Adhering
to Business Ethics
Promoting Equity and Diversity for
Employee Rights and Interests
GRI StandardDisclosure
Corresponding chapter or
section
GRI 2: GeneralDisclosures
2-25Processes to remediate negative impacts
Operating with Integrity andAdhering to Business Ethics2-26
Mechanisms for seeking advice and raisingconcerns
About the Report2-27Compliance with laws and regulations
Operating with Integrity and
Adhering to Business Ethics2-28Membership associations
Solidarity to Promote the
Development of Cosmetics Industry2-29Approach to stakeholder engagementStakeholder CommunicationGRI 3: MaterialTopics 2021
3-1Process to determine material topicsAnalysis of Material Issues3-2List of material topicsAnalysis of Material Issues3-3Management of material topics
Analysis of Material Issues
Stakeholder CommunicationGRI 201:
EconomicPerformance 2016
201-1Direct economic value generated and distributedKey Performance Table201-2
Financial implications and other risks andopportunities due to climate change
Low-Carbon Transformation to
Address Climate Change201-3
De?ned bene?t plan obligations and otherretirement plans
Promoting Equity and Diversity for
Employee Rights and InterestsGRI 203: IndirectEconomic Impacts2016
203-1Infrastructure investments and services supported
Gratitude to Society and Fostering
Community ProsperityGRI 205: Anti-corruption 2016
205-2
Communication and training about anti-corruptionpolicies and procedures
Operating with Integrity and
Adhering to Business Ethics205-3
Con?rmed incidents of corruption and actionstaken
Operating with Integrity and
Adhering to Business EthicsGRI 302: Energy2016
302-1Energy consumption within the organizationKey Performance Table302-3Energy intensityKey Performance Table302-4Reduction of energy consumption
Low-Carbon Transformation to
Address Climate Change
GRI 303: Waterand E?uents 2018
303-1Interactions with water as a shared resource
Environmentally Friendly and
Resource Conservation303-2Management of water discharge-related impacts
Clean Production to Reduce
Environmental Footprint Reduction303-4Water discharge
Clean Production to Reduce
Environmental Footprint Reduction
Key Performance Table303-5Water consumption
Environmentally Friendly and
Resource Conservation
Key Performance TableGRI 305:
Emissions 2016
305-1Direct (Scope 1) GHG emissionsKey Performance Table305-2Energy indirect (Scope 2) GHG emissionsKey Performance Table305-5Reduction of GHG emissions
Low-Carbon Transformation to
Address Climate Change
Statement of use
Marubi has reported the information cited in this GRI Content Index for the periodJanuary 1, 2023 to December 31, 2023 with reference to the GRI Standards.GRI 1 usedGRI 1: Foundation 2021
99100
GRI StandardDisclosure
Corresponding chapter or
section
GRI 306: Waste 2020
306-1Waste generation and signi?cant waste-related impacts
Clean Production to ReduceEnvironmental Footprint Reduction306-2Management of signi?cant waste-related impacts
Clean Production to ReduceEnvironmental Footprint Reduction306-3Waste generatedKey Performance Table306-4Waste diverted from disposal
Clean Production to ReduceEnvironmental Footprint ReductionKey Performance Table306-5Waste directed to disposal
Clean Production to ReduceEnvironmental Footprint ReductionGRI 308: SupplierEnvironmentalAssessment 2016
308-1
New suppliers that were screened using environmentalcriteria
Collaborating with Partners toFolster a Beautiful EcosystemGRI 401: Employment2016
401-1New employee hires and employee turnover
Promoting Equity and Diversity forEmployee Rights and InterestsKey Performance Table401-2
Bene?ts provided to full-time employees that are notprovided to temporary or part-time employees
Promoting Equity and Diversity forEmployee Rights and Interests
401-3Parental leave
Promoting Equity and Diversity forEmployee Rights and Interests
GRI 403: OccupationalHealth and Safety2018
403-1Occupational health and safety management system
Safeguarding Health and Safetythrough Secure ProductionPractices
403-2
Hazard identi?cation, risk assessment, and incidentinvestigation
Safeguarding Health and Safetythrough Secure ProductionPractices403-3Occupational health services
Safeguarding Health and Safetythrough Secure ProductionPractices403-5Worker training on occupational health and safety
Safeguarding Health and Safetythrough Secure ProductionPractices
403-6Promotion of worker health
Safeguarding Health and Safetythrough Secure ProductionPractices403-7
Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships
Safeguarding Health and Safetythrough Secure ProductionPractices403-8
Workers covered by an occupational health and safetymanagement system
Safeguarding Health and Safetythrough Secure ProductionPractices403-9Work-related injuriesKey Performance Table403-10Work-related ill health
Safeguarding Health and Safetythrough Secure ProductionPracticesGRI 404: Training andEducation 2016
404-1Average hours of training per year per employee
Empowering Employees to AchieveTheir Dreams404-2
Programs for upgrading employee skills and transitionassistance programs
Empowering Employees to AchieveTheir Dreams404-3
Percentage of employees receiving regularperformance and career development reviews
Empowering Employees to AchieveTheir DreamsGRI 405: Diversity andEqual Opportunity2016
405-1Diversity of governance bodies and employees
Enhancing Governance andSolidifying DevelopmentFoundationsPromoting Equity and Diversity forEmployee Rights and InterestsGRI 406：Non-discrimination 2016
406-1
Incidents of discrimination and corrective actionstaken
Promoting Equity and Diversity forEmployee Rights and InterestsGRI 408: Child labor2016
408-1
Operations and suppliers at signi?cant risk for incidentsof child labor
Promoting Equity and Diversity forEmployee Rights and Interests
GRI StandardDisclosure
Corresponding chapter or
sectionGRI 409: Forced orCompulsory Labor2016
409-1
Operations and suppliers at signi?cant risk for incidentsof forced or compulsory labor
Promoting Equity and Diversity forEmployee Rights and InterestsGRI 414: SupplierSocial Assessment2016
414-1New suppliers that were screened using social criteria
Collaborating with Partners to Folster aBeautiful Ecosystem
GRI 417: Marketingand Labeling 2016
417-1
Requirements for product and service information andlabeling
Ingenuity Embodies Quality andGuarding the beauty of qualityDelivering Exceptional Service andUpholding the Promise of Beauty417-2
Incidents of non-compliance concerning product andservice information and labeling
Ingenuity Embodies Quality andGuarding the beauty of qualityDelivering Exceptional Service andUpholding the Promise of Beauty417-3
Incidents of non-compliance concerning marketingcommunications
Delivering Exceptional Service andUpholding the Promise of BeautyGRI 418：
Customer Privacy2016
418-1
Substantiated complaints concerning breaches ofcustomer privacy and losses of customer data
Be Proactive to Ensure InformationSecurity
ContentsCASS-ESG 5.0
Message from ChairmanP2.1-P2.2，A1About Marubi
Company OverviewP4.1，P4.3Corporate CultureP4.2Key MilestoneP4.3Focusing on Eye Care and Engaging in Anti-agingP4.3Marubi in 2023
Key Performance-Honors and Awards in 2023G3.11
ESG Management
Stakeholder CommunicationG3.6
Analysis of Material IssuesG3.5Contribution to United Nations SDGs-
Theme Spotlight: Empowering
Resilient Growth with Digital
Intelligence
"Four Verticals and Two Horizontals": Forging a Novel
Paradigm for Digital Intelligence Development
V2.1Leveraging Data for Enterprise Governance to
Establish a Robust Digital Foundation
V2.1Digital and Intellectual Upgrade to Boost E?ciency
throughout the Entire Chain
V2.2-V2.4Robust Operation and Building aSustainable Beauty Power
Enhancing Governance and Solidifying Development
Foundations
G1.1-G1.2，G1.10，G3.6Strict Adherence to Fundamental Principles and
Reinforcement of Risk Barrier
G1.3，G1.4Operating with Integrity and Adhering to Business
Ethics
G1.6-G1.9Be Proactive to Ensure Information SecurityV2.2，S4.6
Ingenuity Research to Safeguard
the Beauty of the Skin
Leading with Technology and Decoding the Beauty
of Diversity
V2.1-V2.4Escorting Innovation and Safeguarding Intellectual
Property Rights
V2.2
CASS-ESG 5.0 Indicator Index
101102
ContentsCASS-ESG 5.0
Ingenuity Research to Safeguardthe Beauty of the Skin
Ingenuity Embodies Quality and Guarding
the beauty of quality
S4.1Delivering Exceptional Service andUpholding the Promise of Beauty
S4.3，S4.5，S4.7-S4.8Solidarity to Promote the Development of
Cosmetics Industry
V2.7-V2.8Collaborating with Partners to Folster a
Beautiful Ecosystem
S5.1-S5.2，S5.6，V2.5-V2.6
Protecting the Environment andPreserving the Ecology
Embracing Green Values and ImprovingEnvironmental Management
E1.1-E1.3，E1.5-E1.6Low-Carbon Transformation to Address
Climate Change
E1.8，E2.1-E2.5，V4.3Clean Production to Reduce Environmental
Footprint Reduction
E1.8，E3.1-E3.5，E3.8，E3.10Environmentally Friendly and Resource
Conservation
E1.8，E2.6，E2.9-E2.12Promoting Green Practices and Advocating
Green O?ce
E1.7，E2.14Ecological Integration for the Creation of
Green Buildings
E2.14-E2.15
People-Oriented and Creating the
Beauty of Harmony
Promoting Equity and Diversity forEmployee Rights and Interests
S1.1-S1.8，S1.10Empowering Employees to Achieve Their
Dreams
S2.1-S2.2，S2.4Enriching Workplace Experiences with
Intimate Care
S1.10，S1.11Safeguarding Health and Safety throughSecure Production Practices
S3.1-S3.2，S3.4-S3.7，S3.9-S3.12Gratitude to Society and FosteringCommunity Prosperity
V3.4，V3.6-V3.7
Appendix
Key Performance TableA2
IndexA4Feedback and SuggestionsA5
About The ReportP1.2-P1.3
About The Report
Introduction
This report is the 3
rdESG Report issued by Guangdong Marubi Biotechnology Co., Ltd. (hereinafter referred to as "Marubi"or the "Company") to stakeholders. It aims to truly reflect the Company's efforts, practice, and performance in governance,environmental and social responsibilities through objective, standardized, transparent and comprehensive informationdisclosure. This report mainly covers the period from January 1, 2023 to December 31, 2023, while some contents may extend tothe previous years or re?ect the policies and practices of year 2024.Report scope and boundariesThis report covers Marubi as well as its branches and subsidiaries. The "Marubi" and the "Company", and "We" herein shallmean Guangdong Marubi Biotechnology Co., Ltd. as well as its branches and subsidiaries. The "5C Center" in the report refers toMarubi's research and development center, manufacturing center, logistics center, information center, and training center.Data source and description
The data used in this report come from public data of government departments, internal statistical data, administrativedocuments and reports of the Company, third-party evaluations and interviews, etc. Unless otherwise speci?ed, the monetaryamounts shown in this report are dominated in RMB. In case of any inconsistency with the data of the financial report, thefinancial report shall prevail. This report is released after being reviewed by the Board of Directors. The Company and all itsdirectors guarantee that there are no false records, misleading statements or major omissions herein, and jointly and severallyassume the liabilities for the authenticity, accuracy and completeness of the contents hereof.
Preparation process
This report is based on the Company's ESG practice and follows the process of "project approval - collection of materials -preparation and revision - review by senior management - review by the Board of Directors - disclosure to the public". Activecommunications are carried out with relevant stakeholders in the process of project approval, preparation and revision, andother links to discuss the structure and contents of the report.Release formThis report is released in electronic form in both Chinese and English, which can be accessed and downloaded from the ShanghaiStock Exchange or the Company's website (www.marubi.cn). The Company plans to release it once a year. In the event of anydiscrepancy between the Chinese version and the English version, the Chinese version shall prevail. Please do not hesitate toemail us if you have any questions or suggestions about this report: securities@marubi.cn, or call us at (020) 66378685.Feedback and SuggestionsIf you have any questions or suggestions about this report, please scan the QR code on the right or providefeedback to us through the above contact information. Thank you!
Preparation basis
? China National Standard Social Responsibility Report Preparation Guide (GB/T 36001-2015)? Chinese CSR Report Preparation Guide issued by the Chinese Academy of Social Sciences (CASS-ESG 5.0)? 2030 Sustainable Development Goals (SDGs) of the United Nations? Global Sustainability Standards Board (GSSB)Sustainability Reporting Guidelines(GRI Standards)? Self regulatory Guidelines for Listed Companies on the Shanghai Stock Exchange No. 14- Sustainable Development Report (Trial)? International Organization for StandardizationISO 26000: Guidelines for Social Responsibility (2010)? The Ten Principles of the United Nations Global Compact