Message from the Chairman
In 2024, Walvax Biotechnology forged ahead with renewedambition and unwavering commitment. This year, we activelyembraced change and focused our efforts on building adynamic, customer- and market-oriented business framework.These strides marked a new chapter in our pursuit of high-quality development. Throughout the year, we remainedcommitted to strengthening corporate governance, protectingthe environment, and fulfilling our social responsibilities.In doing so, we continuously enhanced our capabilities ingovernance, innovation, resilience, competitiveness, and valuecreation. These efforts not only advanced the Company'ssustainable growth, but also contributed to the broader goal ofsustainable economic and social development.Steady progress paves the way for long-term success,as transformation fuels the Company's enduring growth.To better implement its development strategy for the new eraand respond more swiftly and effectively to customer needs,Walvax Biotechnology launched a transformation initiative in2024. Guided by this imperative for change, the Companyrestructured its organizational framework and managementprocesses, establishing a new business architecture centeredon business units (BUs) as the core operational entities. EachBU is now empowered to focus more sharply on its strategicgoals, taking full charge of business planning and execution.This transformation has laid a solid organizational foundationfor the Company's high-quality and sustainable growth. Withthe support of the founding team, the Board of Directorsappointed a new generation of executive leadership. This moreprofessional, younger, and international management team isnow leading the Company through a strategic transformation—anchored in integrity, powered by innovation, and committedto long-term growth. Together, we strive to build a new globalbenchmark for vaccine innovation and equitable access,advancing public health for all.Driven by innovation, we are accelerating the developmentof new quality productive forces. Guided by the belief
that "life is priceless, and science is boundless," WalvaxBiotechnology continues to invest heavily in R&D for newproducts and projects. We regard independent innovation,strategic acquisitions, and deep integration across industry,academia, and research as the driving force behind theCompany's growth and consistently foster new qualityproductive forces. For years, the Company has maintainedannual R&D investment at approximately 20% of its operatingrevenue. Walvax Biotechnology has been listed among theTop 10 manufacturers by value (excluding COVID-19) by WHO
for multiple consecutive years. To date, we have launched8 vaccine products with 14 specications, and an additionalmRNA vaccine targeting the Omicron XBB.1.5 variant hasbeen approved for emergency use by Chinese nationalauthorities. These achievements reflect the Company'senduring commitment to public health. In 2024, the Companyachieved new breakthroughs in several innovative blockbusterproducts and technologies. With continuous improvements inquality management, Walvax Biotechnology is honored to berecognized among the Top 500 Private Enterprises in R&DInvestment 2024 and the Top 10 Most Innovative Non-publicEnterprises in Yunnan Province 2024. In December 2024, theYunnan Vaccine Laboratory passed the acceptance inspectionand was o?cially inaugurated. It will serve as a key strategicplatform for Walvax Biotechnology to advance vaccine R&Dand industrialization, facilitate technology commercialization,power industrial growth, and nurture talent. The laboratorywill contribute to China's vaccine industry development andbiosafety strategy, supporting the nation's e?orts to achievegreater scientic independence and self-reliance.Promoting health hand in hand, we embrace a vibrant andpromising future. Walvax Biotechnology remains committedto driving progress through technological innovation andbuilding on a foundation of high-quality products. By fosteringlocal collaborations and making vaccines more accessibleand affordable, we are bringing life-saving solutions tomore people across the globe. As of the end of 2024, ourproducts had reached 22 countries and regions, with over55 million doses supplied to developing nations. Notably, ourbivalent HPV vaccine received WHO prequalification andachieved its first overseas market approval. We continueto pursue the development of high-quality, high-value, andmore accessible vaccines, while actively advancing globalpublic health through public health education initiatives andvaccine donation programs. At the same time, we have fullyimplemented our "Ever-Thriving Walvax" talent developmentsystem, cultivating a diverse, dynamic, and innovation-driventeam of professionals. Together, we are safeguarding healthand life, and journeying toward a vibrant and promising futurefor all.
We are driving a green transformation to build a cleaner,low-carbon production system. Walvax Biotechnologyintegrates green ecological principles and sustainabilityrequirements into every aspect of its operations. We arecommitted to building a company-wide EHS managementsystem that spans all business units, while proactivelyaddressing the risks and opportunities brought by climatechange. We are firmly advancing resource conservationand environmental protection action plans. Through robustenvironmental management systems and the implementationof high-standard environmental practices, we strive toestablish a production system that is clean, low-carbon,and climate-resilient. In 2024, the Company incorporatedenergy management indicators and targets into its annualperformance evaluations. With continued upgrades inequipment and technology, and more e?cient production-salescoordination, we achieved sustained reductions in energyconsumption, water usage, greenhouse gas emissions, andhazardous waste discharge. Our efforts toward clean andlow-carbon production have begun to deliver tangible results.Looking ahead, we will work hand in hand with partnersacross the industry chain to advance the green transition andsafeguard our shared planet.Moving forward, Walvax Biotechnology will remain steadfastin embracing change. We will continue refining the R&D,production, and industrialization of our core proprietaryproducts, maintaining strategic focus and pursuing steadyprogress. We are also committed to fullling the mission andresponsibilities entrusted to biopharmaceutical enterprises inthis era, actively exploring new business areas and innovativemodels, and continuing our journey toward helping everyonelive a healthy life.
Li Yunchun,Chairman of Walvax Biotechnology Co., Ltd.
Staying true to its original aspiration andsteadfastly embracing change, WalvaxBiotechnology continues its journey to helpeveryone live a healthy life.
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
01 02
About Walvax Biotechnology
Company Prole
Product Overview
Bivalent Human Papillomavirus Vaccine13-valent Pneumococcal Polysaccharide
Conjugate Vaccine
23-valent Pneumococcal Polysaccharide
Vaccine
Group ACYW135 Meningococcal
Polysaccharide Vaccine
Group A and Group C Meningococcal
Conjugate Vaccine
Haemophilus Inuenzae Type bConjugate Vaccine
Diphtheria, Tetanus and AcellularPertussis Combined Vaccine, adsorbed
Group A and C MeningococcalPolysaccharide Vaccine
SARS-CoV-2 mRNA Vaccine(Omicron XBB.1.5)
Launched in 2022Indicated for females aged 9-30 years;Prevents cervical cancer and relateddiseases caused by high-risk HPV types16 and 18
Launched in 2020Indicated for infants and children from6 weeks to 5 years of age (prior to 6thbirthday); Prevents infectious diseasescaused by 13 serotypes of Streptococcuspneumoniae
Launched in 2017Indicated for individuals over 2 years ofage with increased risk of pneumococcalinfection; Prevents pneumococcaldiseases caused by 23 serotypes ofStreptococcus pneumoniae
Launched in 2012Indicated for children over 2 years of ageand high-risk adults; Prevents meningitiscaused by corresponding Neisseriameningitidis serogroups
Launched in 2009Indicated for children aged 3 months to5 years; Prevents diseases caused byNeisseria meningitidis serogroups A and C
Launched in 2007Indicated for infants from 2 months of ageto children of 5 years; Prevents diseasescaused by Haemophilus inuenzae type b
Launched in 2017Indicated for children aged 3 months to 6years; Prevents pertussis, diphtheria, andtetanus
Launched in 2012Indicated for children over 2 years ofage and adults; Prevents epidemiccerebrospinal meningitis caused byNeisseria meningitidis serogroups A and C
Approved for emergency use in 2023Indicated for individuals 18 years andolder; Prevents COVID-19 infectioncaused by prevalent strains such asOmicron XBB, EG.5, etc.
Products exported to
countries and regions
Overseas business revenue in 2024 reached RMB
million
This represents a98%
increase compared to 2023
Founded in 2001, Walvax Biotechnology Co., Ltd. (hereafterreferred to as "Walvax Biotechnology") is a cutting-edgebiopharmaceutical enterprise integrating R&D, production, andsales of human vaccines. The Company has established itselfas an industry leader in the biotechnology pharmaceuticalsector, particularly in novel vaccines. In 2010, the Companywas successfully listed on the Shenzhen Stock Exchange(stock code: 300142), becoming the first enterprise fromYunnan Province to be listed on China's ChiNext board.Guided by the purpose "Help Everyone Live a Healthy Life,"Walvax Biotechnology has steadily advanced over more thantwo decades, securing approval for 8 vaccine varieties across14 specifications. In December 2023, its mRNA vaccinetargeting the Omicron XBB.1.5 variant received emergencyuse authorization, making it the only company worldwide too?er all three of the best-selling vaccine varieties: COVID-19mRNA vaccine, HPV vaccine, and pneumococcal conjugatevaccine. The Company's products have reached 22 countriesand regions, and it has been recognized among the Top10 manufacturers by value (excluding COVID-19) by WHO
for two consecutive years. Adhering to its developmentphilosophy of "Rooted in Yunnan, Based in China," theCompany has built high-standard, high-performance platformsfor translating technology into product. It has invested in theconstruction of R&D centers in Kunming High-tech IndustrialDevelopment Zone and Shanghai Zhangjiang Hi-tech Park, aswell as a state-of-the-art vaccine production base in Yuxi StateHigh-Tech Development Zone, Yunnan. The Company is alsoadvancing the construction of new vaccine industrial basesin Beijing, Guangzhou, and other locations, while planningglobal ll-nish bases. These e?orts lay a solid foundation forrealizing the vision of "Made in China, Supplied Globally."Looking ahead, Walvax Biotechnology will continue toadvance along an innovation-driven path that integratesindependent R&D, strategic mergers and acquisitions, anddeep collaboration across industry, academia, and research.The Company remains committed to developing high-value,customer-oriented, and internationally competitive vaccines,bringing the benefits of immunization to an ever-growingglobal population.
Non-Expanded Program on Immunization (Non-EPI) Vaccines
Expanded Program on Immunization (EPI) VaccinesEmergency Use
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
03 04
Key Figures of 2024
Total assets:
RMB
14.724
billion
Annual R&D investment:
RMB
million
Total employees:
1,932
Annual product recall rate:
0%
Operating revenue:
RMB
2.821
billion
Products exported to
countries and regions
Proportion of femaleexecutives:
43.24%
Annual increase in environmentalprotection investment:
RMB
2.9732
million
Annual exports to developingcountries and regions: Over
million doses
Annual overseas businessrevenue reachedRMB
million,representing a 98% increasefrom 2023
Annual charitabledonations:
RMB
5.1069
million
Compliance rate for wastesemissions:
100%
Overall service qualitysatisfaction:
99.72%
Total tax contribution:
RMB
million
Net prot attributable to shareholdersof the listed company:
RMB
million
Vaccine delivery rate:
100%
Walrinvax
?(HPV-2 Vaccine)receivedWHOprequalication,and obtained its rst overseasregistration and market access
Annual vaccine batchrelease:
24.6392
million doses
Greenhouse gas emissionintensity:
0.151
tons of CO
equivalent/RMB 10,000 revenue
05 06
ChiNext 50 IndexSZSE 200 Index
Hang Seng Stock Connect Biotech 50IndexCSI Health Care 100 IndexCSI 500 Index
CSI Vaccine and Biotechnology TotalReturn IndexCNI Health Care Sector Index
Hang Seng China A InnovativeEnterprises Index
SSI A-share Large Cap Index
Index Inclusions
05 06
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Honors & Memberships
Exemplary Enterprise for Industry-University-Research Cooperation andInnovation in China
China Industry-University-Research InstituteCollaboration AssociationTop 50 Chinese Biopharmaceutical Companies by R&D Strength 2024
Organizing Committee of China Pharmaceutical R&Dand Innovation SummitChinese Red Cross Dedication MedalRed Cross Society of ChinaBest Practice Case in Sustainable Development for Listed Companies2024
China Association for Public CompaniesTop 10 Innovative Non-Public Enterprises in Yunnan Province 2024(Ranked 2nd)
Yunnan Federation of Industry and CommerceTop 100 Non-Public Enterprises in Yunnan Province 2024 (Ranked 34th)Top 100 Yunnan Enterprises 2024（Ranked 53rd）
Yunnan Enterprise Confederation, Yunnan
Entrepreneurs AssociationTop 100 High-Tech Enterprises in Yunnan Province 2024 (Ranked 25th)Top 100 Manufacturing Enterprises in Yunnan Province 2024 (Ranked35th)Exemplary Employer Brand Management Award 2024Yonyou / Dayee, HR SPACETypical Case of Global Brand Innovation and Development 2024
Organizing Committee of Global Brand Innovation
Development Think Tank ForumConsumer Satisfaction Brand for Brand Inuence 2024
Organizing Committee of Brand Inuence Development
Conference and Results Release Event
Top 20 Chinese Listed Pharmaceutical Companies by ESGCompetitiveness 2024
Healthcare Executive
Five-Star Gold Award for Social Responsibility Among China's ListedManufacturing Companies 2024
Times Responsibility 40 Forum Think Tank
Corporate Honors in 2024
Award / RecognitionIssuing Organization
China Association for VaccinesCouncil MemberChina Society for the Study of the Private–Sector EconomyExecutive Council MemberChina Industry-University-Research Institute Collaboration AssociationVice President UnitThe Supply Chain Branch of the China Association for VaccinesExecutive Council MemberThe General Association of Dian EntrepreneursVice President UnitYunnan General Chamber of CommerceExecutive Council MemberYunnan Pharmaceutical Chamber of CommerceVice President Council MemberYunnan Young Entrepreneurs Chamber of CommerceVice President UnitYunnan Pharmaceutical Industry AssociationVice President Executive Council MemberYunnan Provincial Intelligence and Digital Economy AssociationVice President UnitYunnan Enterprise Technology Center AssociationExecutive Council MemberYunnan Microbiology SocietyExecutive Council MemberYunnan Biomedical and Health Industry Promotion AssociationExecutive Council MemberNew Medical Education Alliance in YunnanExecutive Council Member
AssociationPositionIndustry Association Memberships
Sustainable Development Management
Walvax Biotechnology has fully integrated sustainabledevelopment into its business strategy. The Company'ssustainable development management is aligned with itscorporate development strategy, with continuous renementof its governance system. A comprehensive top-downmanagement mechanism has been established, involvingthe Board of Directors, management, functional departments,and business units. To this end, the Company has formulatedthe Walvax Biotechnology Sustainable DevelopmentManagement System and related policies. These documentsdefine sustainable development concepts, principles, scopeof authority, and tasks, providing institutional guidancefor the implementation, supervision, and development ofsustainable development-related initiatives. This enhances thesystematicity and e?ectiveness of the Company's sustainabledevelopment management.The Board of Directors serves as the principal bodyresponsible for managing and making decisions on economic,environmental, and social issues. Its duties include evaluatingthe impacts, risks, and opportunities associated with theCompany's sustainable development initiatives, deliberatingon and deciding significant sustainability-related issues,and ensuring the effectiveness of these decisions. Underthe Board, a Sustainable Development Committee hasbeen established. Chaired by the Chairman, this committeeis tasked with researching, guiding, and reviewing theCompany's sustainable development objectives, policies,and plans. Additionally, it monitors the implementation ofkey sustainable development initiatives, assesses goalattainment, and o?ers recommendations for improvement. Atthe management level, the President's Office and the ESGO?ce are responsible for developing sustainable developmentstrategies, coordinating action plans, and overseeing theachievement of related objectives. The ESG Working
Sustainable Development Governance System
Group, comprising personnel from various departments andsubsidiaries, is charged with implementing specic sustainabledevelopment tasks. These include developing specializedplans aligned with the Company's overall strategy, conductingregular reviews of sustainable development indicators,compiling reports, and gathering and submitting relevantinformation. The Company's Organizational PerformanceManagement Measures (Trial) incorporates assessmentcriteria for ESG factors such as quality, safety, and theenvironment. Quantitative indicators are used to measure thee?ectiveness of ESG strategies, which are also integrated intothe assessment framework for the remuneration system.Members of the Sustainable Development Committee and ESGWorking Group possess extensive professional knowledgeand practical experience. During the reporting period, theCompany conducted thorough reviews and examinations ofmaterial issue assessments, goal achievements, and othercritical matters. Additionally, two ESG-specic training sessionswere organized for all employees, covering ESG trends, ratinginterpretations, and implementation guidance. These effortsaim to enhance employees' understanding of the Company'sESG strategies and ensure the effective implementation ofESG initiatives across the organization.
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
07 08
Stakeholder ManagementWalvax Biotechnology maintains effective communication with stakeholders through a proactive and transparent approach.Stakeholders' concerns, demands, opinions, and suggestions are integrated into the identification and response to sustainabledevelopment risks and opportunities, as well as the establishment of performance indicators and management mechanisms. Theobjective is to address the expectations and requirements of various stakeholder groups.
●Compliance with laws and regulations
●Fulllment of tax obligations ●Contribution to local development
●Dedicated meetings and reports ●
Policy consultation and feedback
●O?cial site visits
●
Regulatory compliance inspections
●
Statutory information disclosure
●Sustainable and consistent returns ●Transparency in informationdisclosure ●E?ective investor relationsmanagement
●Annual general meetings ●Financial reports and announcements ●
Investor hotline services
●Roadshows and reverse roadshows ●Performance briengs and investorevents ●Assurance of product quality andsafety ●Enhanced customer service ●Guarantee of business continuity ●Customer privacy protection
●Customer satisfaction surveys ●Customer relationship managementsystems ●Customer audits and feedbacksessions ●Engagement through social mediaplatforms ●Adherence to ethical businesspractices ●Implementation of responsible supplychain management ●Promotion of industry collaborationand knowledge exchange
●Supply chain audits and capacitybuilding ●Open innovation initiatives ●Regular communication and dialogue ●Participation in industry conferences ●Protection of employee rights andbenets ●Commitment to occupational healthand safety ●Provision of training and developmentopportunities ●Promotion of diversity and equalopportunities
●Employee engagement activities ●Comprehensive training programs ●Performance review and feedbacksessions ●Internal communication platforms ●Established grievance mechanisms ●E?cient and sustainable resourceutilization ●Minimization of environmentalfootprint ●Leadership in industry-wide greendevelopment initiatives
●Proactive climate change mitigationstrategies ●Reduction of wastes emissions ●Active participation in biodiversityconservation e?orts ●Commitment to product quality andsafety ●Engagement in philanthropic andcharitable activities ●Fostering community relations anddevelopment
●Proactive media engagement ●Transparent public disclosures ●
Implementation of community-focusedprojects ●Organization of employee volunteerprograms
Stakeholder GroupsExpectations and RequirementsCommunication Methods and Channels
Public and Communities
Environment
Employees
Partners
Customers
Shareholders and Investors
Government and Regulatory Bodies
Walvax Biotechnology's Sustainable Development Governance Structure
Management Level ●Execute and monitor sustainable development strategies, plans, and objectives ●Assess the materiality of sustainable development issues and integratethem into operational considerations ●Identify and allocate the necessary costs and resources for detecting,mitigating, managing, and monitoring sustainable development-relatedimpacts, risks, and opportunitiesExecutive Level ●Manage various issues through designated channels anddevelop targeted sustainable development plans ●Implement specic sustainable development initiatives ●Conduct regular monitoring and reporting of sustainabledevelopment indicators
Board ofDirectorsSustainableDevelopment
Committee
Decision-Making Level
●
Evaluate sustainable development-related impacts, risks, and opportunities facing
the Company
●
Engage in the review and decision-making process for signicant sustainable
development matters
●Provide comprehensive oversight of sustainable development issues and assume
responsibility for their e?ectiveness
In 2024, Walvax Biotechnology conducted a comprehensive analysis of key sustainability frameworks based on theCompany's vision. These include the IFRS S1 General Requirements for Disclosure of Sustainability-related FinancialInformation, IFRS S2 Climate-related Disclosures, and the Self-Regulatory Guidelines No. 17 for Companies Listedon Shenzhen Stock Exchange—Sustainability Report (For Trial Implementation). The Company benchmarked itspractices against leading domestic and international ESG rating systems. Aligning with the United Nations SustainableDevelopment Goals (SDGs) and industry trends, it initiated groundwork for developing a robust sustainable developmentstrategy and enhancing top-level design, with the aim of boosting governance capabilities, competitiveness, innovationperformance, and resilience to risks.
ESG Working Groups
●Corporate GovernanceWorking Group
●Product Safety and QualityWorking Group ●Health AccessibilityWorking Group
●Environmental, Health, and Safety(EHS) Working Group
●Employee Responsibility WorkingGroup
●Information Security and PrivacyProtection Working Group
(coordinates and advances
ESG initiatives)
ESG O?ce
(including executivesresponsible for various issues)President's O?ce
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
09 10
Materiality AssessmentWalvax Biotechnology considers stakeholder concerns as a critical factor in formulating its sustainable development strategy. Theimplementation of systematic materiality issue management forms the cornerstone of our sustainable development planning, riskand opportunity management, and information disclosure. The Company regularly conducts materiality analyses. In 2024, analyticalmethods were rened in accordance with the latest disclosure standards, including the GRI Standards for Sustainability Reporting,the IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information, and the Self-Regulatory GuidelinesNo. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For Trial Implementation). The Companyperformed a comprehensive double materiality assessment across various stakeholder groups, identifying and evaluating materialissues from two perspectives: "impact materiality" (importance to impacts on economic, environmental, and social sustainability)and "nancial materiality" (importance to impacts on the Company's nancial performance). This thorough review examines theconcerns of all parties and their nancial implications for the Company. To better address stakeholder expectations and demands,rigorous management and disclosure practices were implemented for high-impact issues. The Board and Sustainable DevelopmentCommittee reviewed and endorsed the materiality matrix for the current year.
Risk and Opportunity ManagementWalvax Biotechnology strictly adheres to legal and regulatory requirements, including the Company Law of the People's Republicof China, Securities Law of the People's Republic of China, Basic Standard for Enterprise Internal Control, and Guidelines for theApplication of Enterprise Internal Control. With the management objective of "strengthening internal control, preventing risks, andpromoting compliance," the Company has developed institutional guidelines such as the Walvax Biotechnology Risk ManagementSystem and Walvax Biotechnology Internal Control Deciency Identication Standards, tailored to the specic characteristics ofthe industry. A comprehensive work model centered on risk management and compliance management supervision has beenestablished, alongside a "three lines of defense" internal control and risk management implementation structure. These measuresare designed to enhance the management of sustainability impacts, risks, and opportunities, ensuring the Company's stableoperation.
The Board of Directors holds ultimate responsibility for risk management. Their duties include approving the Company's riskmanagement strategy, determining overall risk levels, sanctioning major risk response plans, monitoring the effectiveness ofrisk management practices, and evaluating the management team's performance in this area. The Audit Committee, operatingunder the Board, reviews the e?ectiveness of risk identication, assessment, management, and monitoring procedures. Specicrisk management responsibilities are delegated to other committees, such as the Sustainable Development Committee, withintheir areas of expertise. The President's O?ce is responsible for executive management, including formulating risk managementstrategies, objectives, appetite, and tolerance. It oversees the control of operational and business risks, providing regular reportsto the Board on the Company's risk management status. An Internal Audit Department has been established to assess variousbusiness and sustainability risks, supervise the implementation of risk management systems, and deliver annual reports to the AuditCommittee and executive management on key risk control e?orts. The Compliance O?ce is tasked with identifying, assessing, andmanaging compliance risks.
Risk Management Structure
First Line of Defense
Second Line of Defense
Third Line of Defense
The Company's business departments, functioning as front-end units, serve as the primary entities responsible for internalcontrol and risk management, establishing and implementing the rst line of defense.
The Company's internal control and risk management functional units, including Quality, Compliance, Safety, HumanResources, and Finance departments, act as support units for internal control and risk management, establishing andimplementing the second line of defense.
The Company's internal audit unit and external auditors serve as assurance providers for internal control and riskmanagement, implementing the third line of defense.
Importance to Impacts on Economic, Environmental, and Social Sustainability
Importance to Impacts on the Company's Financial Performance
Product Qualityand SafetyResearch Ethics inScience and Technology
Health AccessibilityCorporate Governance
Business Ethics andAnti-corruptionHuman CapitalDevelopmentInformation Security and Privacy Protection
Climate ChangeMitigationSustainable Supply ChainOccupational Health andSafetyCustomer Relationship ManagementLabor and HumanRights ManagementDiversity and EqualOpportunity
Water Resource Management
Digital TransformationIndustrial Cooperationand Development
Rural Revitalization and
Social Contribution
Emissionsand WasteManagementBiodiversityConservationResource Utilization andCircular Economy
Identify general and industry-specicissues by referencing authoritativedomestic and internationalsustainability reporting guidelinesand standards, mainstream ESGrating systems, and sustainabilityissues of concern within the industry.
Conduct targeted surveysamong key internal and externalstakeholder groups to developthe 2024 materiality matrix,determining the material issuesand their priorities for the currentyear.
Perform internal managementassessment and external expertevaluation for the screening andanalysis results, with nal reviewand validation by the SustainableDevelopment Committee.
LowHigh
High
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
11 12
Walvax Biotechnology has established ve key areas of focus for risk management: compliance assurance, industry regulation,risk orientation, risk (deficiency) identification standards, and internal control self-assessment. Risk management indicators areintegrated into the performance evaluation system. In response to changes in both internal and external environments, the Companyconducts comprehensive risk identication, assessment, and management. On an annual basis, it employs a variety of methods,including questionnaires, expert consultations, scenario analyses, policy reviews, and industry benchmarking. This approach allowsfor a focused review of critical business areas, key domains, crucial operational aspects, and international business activities. Allbusiness departments are mobilized to review, identify, and assess specic business risks. By evaluating the potential impact andlikelihood of risks, priorities for risk management e?orts are determined, resulting in the creation of a Risk Database and an InternalControl Database. The Company assesses risks (including sustainability-related risks and opportunities) that may significantlyimpact its business model, operations, development strategy, nancial status, and value chain in the short, medium, or long term.Based on these assessments, risk management policies and response measures are adjusted accordingly. Furthermore, theCompany has implemented e?ective risk handling and emergency management mechanisms. For newly emerging signicant riskslacking established response plans, the President assembles a team to develop appropriate plans, which are then submitted to theBoard for consideration.The Company actively promotes employee involvement in fostering a robust corporate risk management culture. Employees areprovided with tailored risk management training, focusing on job functions and business characteristics. Departments are mandatedto promptly study and analyze emerging regulations and policies, engaging external experts for further interpretation and trainingwhen necessary. This approach ensures operational compliance and helps reduce risks to an acceptable level.
Walvax Biotechnology places a strong emphasis on identifying and managing signicant nancial and non-nancial risks that mayaffect business strategy and objectives. The Company proactively incorporates major sustainability risks and opportunities intothe risk review and business planning processes. Through rigorous and independent procedural mechanisms, risks are denedand quantified accurately. This approach enables effective management or mitigation of risks while simultaneously identifyingopportunities for growth and transformation.
Note: Impact levels are categorized as "minimal", "moderately signicant", "signicant", and "highly signicant".
Strategy and Procedures
Analysis of Material Issues' Impact, Risks, and Opportunities
Risk IdenticationRisk ControlRisk Assessment ●Utilize a diverse rangeof methods, includingquestionnaires, documentreviews, on-site inspections,penetration testing, and SWOTanalysis
●Evaluate risk probability
●Assess the severity of potentialrisk impacts ●Calculate risk values todetermine risk levels ●
Evaluate the e?ectiveness ofexisting control measures
●
Implement risk managementmeasures based on identiedrisk levels and the Company'sspecic circumstances, consideringstrategies such as risk avoidance,transfer, reduction, and mitigationof potential impact severity ●Conduct ongoing risk monitoringand early warning procedures
Short-term,medium-term,long-term
●Evolving external regulatory standards may result inregulatory penalties, market access restrictions, anddiminished market trust if the Company fails to adapte?ectively. ●High-quality products can enhance customer trust, expandmarket share, and secure competitive advantages.
Negative Impact: highlysignicant;Positive Impact: highlysignicant
Short-term,medium-term,
long-term
●In the face of technological challenges, market competition,and internationalization, R&D investments necessitateincreased nancial commitments with uncertain commercialoutcomes. ●Advancements in disruptive technologies such as mRNA,gene editing, synthetic biology, and articial intelligencecan facilitate the development of vaccines with substantialmedical and social value, which helps sustain long-termmarket competitiveness.
Negative Impact:
moderately signicant;Positive Impact: highlysignicant
Short-term,medium-term,
long-term
●As the domestic pharmaceutical industry undergoesstructural transformation, it faces increasingly complexpolicy, market, and technological risks. Vaccine demand isbecoming more susceptible to disease prevalence trends. ●Considerable unmet demand persists in the global vaccinesector. Frequent national policies promoting innovationand biopharmaceutical industry growth o?er substantialdevelopment potential.
Negative Impact: minimal;Positive Impact: highlysignicant
Short-term,medium-term,
long-term
●Instances of commercial bribery and corruption canpotentially incur signicant economic costs, legalramications, operational risks, and reputational damage tothe Company. ●Robust anti-bribery and anti-corruption measures contributeto the establishment of sound internal management systemsand processes, optimizing operations and enhancinge?ciency and transparency.
Negative Impact:
signicant;Positive Impact: moderatelysignicant
Short-term,medium-term,
long-term
●Inadequate employee training and development may leadto strategic and organizational change risks, as well asincreased employee turnover. ●A comprehensive employee learning, development, andtalent nurturing system will underpin the achievementof company strategic objectives, bolster brand andmarket competitiveness, and generate potential businessopportunities.
Negative Impact:
moderately signicant;Positive Impact: highlysignicant
Short-term,medium-term,
long-term
●Multi-faceted risks encompass technological, human,management, and operational aspects. Inadequatemanagement of critical data and customer privacy mayresult in data breaches, leading to compliance issues,reputational damage, and erosion of customer trust.
Negative Impact: highlysignicant;Positive Impact: moderatelysignicant
Medium-term,
long-term
●Climate change-induced extreme weather events andnatural disasters pose both physical and transition risks.Their unpredictability may lead to asset losses, increasedcosts due to supply chain disruptions, and changes inmarket conditions and disease patterns that may impactproduct strategies.
●Possible solutions include identifying new business areas inclimate change-related disease areas, developing innovativevaccine solutions. Enhanced energy management practiceswill also ensure long-term stable power supply and yieldenergy-saving benets.
Negative Impact:
signicant;Positive Impact: signicant
Impact LevelRisks and OpportunitiesImpact PeriodMaterial Issues
Product Quality
and Safety
BusinessEthics and Anti-
Corruption
Human CapitalDevelopment
Information Security
and Privacy
Protection
Climate Change
Mitigation
Research Ethics inScience and Technology
HealthAccessibility
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
13 14
StrengtheningGovernancefor SustainableGrowth
Operating revenueRMB
2.821
billion
Number of signicant information securityrisk incidents:
Anti-corruption training coverage:
100%
Guidance Through Party BuildingWalvax Biotechnology deeply integrates Party-building withits corporate philosophy of "Help everyone live a healthylife," guided by its mission to serve the country and societythrough unwavering dedication. Through concrete actions,the Company demonstrates its profound respect for life andcontinuously refines its "Wo·Health" Party-building brand.Focusing on six key areas—ideological development,organizational development, institutional development,capacity building, brand development, and mass organizationdevelopment, the Company closely aligns Party-building withits business operations, elevating Party-building efforts tonew heights and contributing to its sustainable developmentstrategy.
We have thoroughly studied and implemented Xi JinpingThought on Socialism with Chinese Characteristics for a NewEra, along with the spirit of the 20th CPC National Congressand the spirit of the 1st/2nd/3rd Plenary Session of the 20thCPC Central Committee. In celebration of the Party's 103rdanniversary, we organized a variety of enriching activities.In alignment with the Company's business characteristics,we held a themed Party lecture titled "Fostering New QualityProductive Forces to Support High-Quality CorporateDevelopment", which further enhanced the unity and solidarityof our Party members.
Ideological Development
The "Smart Party Building" platform has been implementedto strengthen Party member management through digitalsolutions, enhancing the efficiency of Party-building efforts.The internal publication Walvaxer serves as a key mediumfor promoting the Party's policies and the Company'sdevelopment achievements, while also highlighting exemplarydeeds of Party members and showcasing the role model ofParty organizations as strongholds of support. These effortshelp inspire and motivate employees.
Guided by the principle of "integrating Party-building with business operations and empowering employees," the Company hasreinforced e?orts in mass organization development by hosting diverse cultural events such as tea culture workshop and World BookDay activities. These initiatives enrich employees' cultural experience while fostering the inheritance and innovation of the corporateculture. At the same time, we actively explore innovative pathways for aligning Party-building with core business practices, improvecommunication channels for employee concerns, and enhance employee cohesion and sense of belonging.
We consistently rene the "Wo Health" Party-building brand,shaping the spiritual ethos of Walvax employees throughve dimensions: "Born in Health, Learn for Health, Think forHealth, Act on Health, and Serve for Health." The constructionof the Party Building Cultural Corridor was completed in 2024.
Capability Building
Mass Organization Development
Brand Development
Awarded the title ofAdvanced Primary-Level PartyOrganizationby the KunmingHigh-Tech Industrial Development Zone.Awarded the title of
"StrongParty-Building, StrongDevelopment" TorchProgram Model PartyOrganization
by the KunmingHigh-Tech Industrial Development Zone.
Deputy Secretary Li Yunchun leading all Partymembers in rea?rming the Party oath
Themed Party lecture on "Fostering New Productive Forces toSupport High-Quality Corporate Development"
Recognition of Outstanding Party Members, Party Workers,and Advanced Party Branches at Walvax Biotechnology forTheir Excellence in Leading Innovation and ExcellenceChoral performance "Towards Revival"
Celebration of the 103rd Anniversary of the CPC, themed "Stay True to
the Original Aspiration and Embrace Reform"
The Party Committee of Walvax Biotechnology consists of oneGeneral Party Branch and nine Party Branches. In 2024, theYunnan Vaccine Laboratory Party Branch was established,along with the formation of a trade union, ensuring fullcoverage of primary-level Party organizations and enhancingtheir e?ectiveness.
We have established comprehensive standards andinstitutional mechanisms for Party building, along witha standardized management system for Party-relateddocuments. The Implementation Measures for the Selectionof Outstanding Party Members (Trial) have been formulatedand published, and the Party and Mass Work Manual hasbeen upgraded. These efforts ensure that Party-buildingactivities are conducted in accordance with clear regulationsand standardized procedures, thereby improving governancee?ectiveness.
Organizational DevelopmentInstitutional Development
Innovation-Driven HealthEmpowerment
Community Co-development,
Shared Health Benets
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Strengthening Governancefor Sustainable Growth
17 18
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Corporate Governance
Enhancing the GovernanceFrameworkWalvax Biotechnology strictly complies with the legal andregulatory requirements of the Company Law of the People'sRepublic of China, the Securities Law of the People's Republicof China, the Measures for the Administration of StockExchanges, the Code of Corporate Governance for ListedCompanies, the Shenzhen Stock Exchange Growth EnterpriseMarket (GEM) Listing Rules, and the Shenzhen StockExchange Self-Regulatory Guidelines No. 2 – StandardizedOperations for Companies Listed on the Growth EnterpriseMarket (GEM), as well as the Articles of Association and otherinternal corporate regulations. The Company has establisheda stable corporate governance structure in which the GeneralMeeting of Shareholders, the Board of Directors, the Boardof Supervisors, and the management team each fulfill theirrespective duties while maintaining a system of mutual checksand balances.The Company consistently improves and implements itsinternal control systems, clearly defining the rights andresponsibilities of shareholders, directors, supervisors, andsenior management. It fully respects and safeguards thelegitimate rights and interests of its stakeholders, includingshareholders, employees, customers, consumers, suppliers,and creditors. At the same time, the Company remainscommitted to strengthening the standardized governanceof its subsidiaries, ensuring robust risk management,and upholding the legitimate rights and interests of allshareholders, especially minority investors. For details on theCompany's governance structure, governance mechanisms,shareholding structure, and information about the controllingshareholders and actual controllers, please refer to theWalvax Biotechnology Co., Ltd. 2024 Annual Report.
The General Meeting of Shareholders, as the highest authority of the Company,primarily exercises decision-making and supervisory powers. It convenes theshareholders' meetings in compliance with the Rules for the Shareholders' Meetingsof Listed Companies, the Articles of Association, and the Rules of Procedure forShareholders' Meetings, ensuring that all shareholders, particularly minority and smallshareholders, are treated equally and can fully exercise their legal rights.
The Board of Directors is accountable to the General Meeting of Shareholders and isresponsible for making decisions on major corporate matters and business operations.It oversees ve specialized committees: the Strategy Committee, the Audit Committee,the Nomination Committee, the Remuneration and Evaluation Committee, and theSustainable Development Committee. These committees provide professional adviceand recommendations to support the Board's decision-making. Among them, the AuditCommittee, Nomination Committee, and Remuneration and Evaluation Committeeare primarily composed of independent directors, who also serve as their respectivechairs. The company continues to strengthen the supervisory and advisory roles ofexternal directors, e?ectively enhancing the scientic rigor of board decision-making.
General Meeting of
Shareholders
Board of Directors
Held
shareholders' meetings throughout the year
Held
board meetings throughout the yearHeld
Audit Committee meetings
Remuneration andEvaluation Committeemeetings
passed
resolutions
passed
resolutions
Strategy Committee meeting
NominationCommittee meetings
Sustainable DevelopmentCommittee meetingsthroughout the yearAs the Company's supervisory body, the Supervisory Board is accountable to theGeneral Meeting of Shareholders and is responsible for overseeing the Company'sfinancial affairs, as well as ensuring the legality and compliance of the Board ofDirectors and senior management in the performance of their duties. It plays akey role in safeguarding the legitimate rights and interests of the Company and itsshareholders, while promoting its healthy, stable, and sustainable development. Asof the end of 2024, the Supervisory Board consists of three members, including twoemployee representative supervisors and two female supervisors.Supervisory Board
Held
Supervisory Board meetings throughout the year
passed
resolutions
Innovation-Driven HealthEmpowerment
Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Strengthening Governancefor Sustainable Growth
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2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Driving Organizational Transformation
Amidst the complexities and fluctuations of the market, coupled with the demands for high-quality development, the drive forinnovation and change has emerged as a unied consensus across the industry. To achieve long-term sustainable development,Walvax Biotechnology consistently strengthens its strategic and organizational capabilities through systematic transformation andoptimization. Our focus spans multiple key areas, including capital strategy planning, strategic decision-making and positioning,globalization strategy, organizational transformation, organizational capability development, and leadership and culturaladvancement. By driving strategic and managerial reforms, the Company proactively addresses internal and external challenges,steadily enhancing its core strategies, talent pool, and resource allocation. These e?orts support Walvax Biotechnology in its pursuitof becoming a globally leading enterprise.In 2024, the Company undertook an organizational transformation to support the implementation of its new development strategyfor the current stage and to better respond to customer needs with greater agility. The organizational structure and managementprocesses were restructured, transitioning to a Business Unit (BU)-based model, under which each BU functions as an operationalunit bearing full responsibility for key performance indicators such as revenue, profit, and cost. This adjustment ensures thecomprehensive implementation of operational responsibilities, enables holistic business planning and development, and strengthensthe organizational foundation for high-quality growth. With strong support from the Company's founding team, the Board of Directorsappointed a new management team to lead this transformation. Characterized by enhanced professionalism, a younger prole, anda global vision, the new team is positioned to drive the Company's strategic transformation and long-term growth.
Board Diversity and E?ectiveness
TypeNameGender
Professional CapacityIndustryExperience
RiskManagement
FinancialAccounting
Law
OperationsandManagementDirector, Chairman of theBoard
Li YunchunMale
√√Director, Vice ChairmanHuang ZhenMale
√√Director, Vice ChairmanDong ShaozhongMale
√√DirectorJiang RunshengMale
√√Employee Director,President
Yao WeiMale
√√DirectorFan YongwuMale
√√
Employee DirectorYan TingFemale√Independent DirectorZhao JianmeiFemale
√√
Independent DirectorZhu JinyuMale
√√
Independent DirectorSun GanghongMale
√√
Independent DirectorZeng LingbingMale
√√
Strategy Committee
Audit CommitteeRemuneration andEvaluation CommitteeNomination CommitteeSustainable DevelopmentCommitteeR&D and TranslationalCenterQuality Management CenterRegistration and Medical
CenterSupply Chain Center
DomesticMarketing BU
InternationalMarketing BU
Bacterial VaccineBU
RecombinantProtein BUSix Business Units
Four Capability Platforms
Seven Functional Departments
mRNA Vaccine BUNew Business BU
Strategic Operations
DepartmentHuman Resources
Department
Legal A?airs Department
Financial Management
Department
Intelligent Information
DepartmentAdministrative Management
Department
Audit and Supervision
Department
the Supervisory Board
Board O?ce
Walvax Biotechnology firmly believes that board diversitystrengthens the rigor and effectiveness of decision-making,playing a vital role in advancing the Company's strategicobjectives and sustaining long-term development. Thenomination of Board members follows a rigorous selectionprocess in accordance with the Rules of Procedure for theNomination Committee of the Board of Directors and otherrelevant regulations. Diversity is a key consideration in thenomination review process, where candidates are assessedbased on a comprehensive evaluation of their educationalbackground, industry experience, professional expertise,specialized skills, and work history. The selection processprioritizes candidates' strengths and the benefits of boarddiversity, ensuring that the Board maintains a well-balancedcomposition in terms of capabilities, skills, experience, gender,age, and cultural and educational backgrounds. This approachenhances corporate governance and strengthens decision-making e?ectiveness.The Company's Board of Directors currently consists of 11members, including 4 independent directors, accountingfor more than one-third of the Board. Two of the directorsare women. The current Board consists of 11 memberswith diverse professional backgrounds and expertisein pharmaceutical chemistry, biological sciences, riskmanagement, financial accounting, law, and finance. The
Audit Committee, composed of three independent directors,includes two accounting professionals. Several Boardmembers also bring valuable experience in risk managementand prevention, such as developing risk control frameworks,addressing and mitigating significant risks, and providingeffective risk solutions. Their expertise strongly supportsthe Company in identifying, mitigating, and resolving risks.The remuneration of board members is reviewed annuallyby the General Meeting of Shareholders. In the event thatthe Company or any individual's performance does not meetthe required expectations, or if any inappropriate conduct isfound, the Company reserves the right to recover part or all ofthe remuneration already paid or to withhold any outstandingremuneration.As part of its ongoing e?orts to enhance corporate governance,Walvax Biotechnology actively promotes professional trainingfor board members. Directors are encouraged to participate intraining sessions on internal policies, codes of conduct, andrelevant securities market laws and regulations to strengthentheir professional expertise and fulfill their duties moree?ectively. During the reporting period, Walvax Biotechnologyheld two professional skill training sessions for the Board ofDirectors, covering topics including business ethics and anti-corruption, risk mitigation of insider trading and related-partytransactions, and information security and privacy protection.
General Meeting of Shareholders
Board of Directors
President
Innovation-Driven HealthEmpowerment
Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Strengthening Governancefor Sustainable Growth
21 22
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Investor Rights Protection
Walvax Biotechnology strictly complies with the SecuritiesLaw of the People's Republic of China, the Measures forthe Administration of Information Disclosure by ListedCompanies, the Provisions on the Registration andManagement of Insiders with Access to Insider Informationof Listed Companies, and other relevant laws, regulations,and normative documents. The Company has establishedthe Information Disclosure Management System of WalvaxBiotechnology Co., Ltd. and its implementation rules toensure that information disclosure is conducted in a truthful,accurate, complete, timely, and fair manner. In 2024, theCompany published a total of 124 announcements anddesignated Securities Times, China Securities Journal,Shanghai Securities News, Securities Daily, and CNINFO asits o?cial information disclosure platforms. This ensures thatall shareholders have equal and timely access to companyinformation. During the reporting period, there were no falserecords, misleading statements, material omissions or otherimproper disclosures in the Company's information disclosure.We also keep a close eye on the public sentiments andmarket trading conditions to e?ectively protect the legitimaterights and interests of investors.
The Company is committed to providing shareholders withreasonable investment returns, with cash dividends as akey method of shareholder compensation. While adheringto profit distribution principles and ensuring the Company'sstable operations and long-term growth, we also enhance itsinvestment value through measures such as share buybacksand cancellations. Our goal is to establish a shareholder valuereturn mechanism that is long-term, stable, and sustainable.In 2024, the Company distributed a cash dividend of RMB
15.9935 million (tax inclusive). In the same year, it also
completed the cancellation of 7.9999 million shares that hadpreviously been repurchased through centralized bidding.
The Company consistently refines internal policies, suchas the Investor Relations Management System of WalvaxBiotechnology Co., Ltd., and the Investor Visit ReceptionManagement System of Walvax Biotechnology Co., Ltd.,and develops diverse communication channels to engagewith investors. These channels include General Meetings ofShareholders, investor site visits, investor hotlines, dedicatedemail responses, earnings briefings, in-person investorreceptions, and responding to investor inquiries via the irm.cninfo.com.cn platform. Through these initiatives, we fostertransparent and open communication with investors oncorporate governance, strategic development, operationalperformance, financing plans, and sustainability, effectivelyenhancing mutual interaction and trust between the Companyand its investors. During the reporting period, the Companyengaged with investors more than 3,600 times through variouschannels.The Company has established clear procedures for convening,holding, and conducting the General Meetings of Shareholders,as well as for the voting process, ensuring that investorshave the right to be informed and to participate in signicantcorporate matters. We treat all shareholders equally. Small andmedium-sized shareholders may attend the General Meetingof Shareholders in person or vote online. For major mattersthat may impact their interests, the company separately countsand discloses their votes. The meeting agenda includes adedicated Q&A session for small and medium-sized investorsto actively voice their opinions and suggestions. The time andlocation of shareholder meetings are carefully selected tomaximize participation, and modern information technology isleveraged to further expand shareholder engagement. Whenreviewing and deciding on prot distribution plans, independentdirectors diligently fulfill their duties by explicitly expressingtheir consent. Relevant proposals are reviewed and approvedby the Board of Directors and the Supervisory Board beforebeing submitted to the General Meeting of Shareholders fordeliberation, ensuring the protection of small and medium-sized shareholders' legitimate rights and interests.
Information Disclosure
Investment Returns
Investor Communication
Tax Management
Digital Intelligence Transformation
Walvax Biotechnology strictly complies with the Enterprise Income Tax Law of the People's Republic of China and other relevantdomestic laws and regulations, as well as international tax rules. The Company has formulated the Tax Management Measures ofWalvax Biotechnology Co., Ltd., which cover tax declaration and payment, tax risk management, and tax document management,and continues to improve its tax management system and tax risk control mechanisms to ensure compliant tax reporting andpayment and maintain the compliance and soundness of tax administration. We are committed to responsible tax practices: wedo not shift the value we create to low-tax jurisdictions, do not use tax planning structures lacking genuine commercial substance,adhere to the arm's length principle in transfer pricing, and refrain from using secrecy jurisdictions or "tax havens" for any formof tax avoidance. As international business expands, the Company further strengthened its tax compliance management in 2024by conducting internal self-inspections and external audits, optimizing tax planning, and continuously enhancing its capability toaddress tax risks. During the reporting period, Walvax Biotechnology did not encounter any signicant tax compliance violations.
Walvax Biotechnology aims to achieve the seamless integration of informatization, digitalization, intelligence, and networking acrossits business operations and management. We are accelerating the development of a data-driven digital management system andestablishing an intelligent manufacturing system with deep cross-platform and multi-system interactions. These efforts stronglyadvance the construction of Digital Walvax, Intelligent Walvax, and Smart Walvax. The Company has established an integratedinformation system encompassing marketing, production, and R&D. Driven by a technology-powered development strategy, thissystem enables seamless connectivity between business processes and data flows across the front-end, mid-end, and back-end operations. In 2024, the Company further strengthened its IT architecture and enhanced the integration of industrializationand digitalization across production units. We continued to refine our financial shared services, ERP systems, and operationalinformation systems, driving improvements in overall business e?ciency.
Product quality, process quality, and EHS/ESGsustainabilityE?ciency of process technology, equipment andfacilities, material inventory, and human resourcesE?ectiveness of production planning, manufacturingexibility, and workforce adaptabilitySpeed of product development and translation, andresponsiveness to market and service needs
QualityProductionFlexibility
Speed
QPFS
IndustrialUpgrade
OrganizationalUpgradeTechnologicalUpgradeACBDChangeManagementComprehensive Digital and
Intelligent Upgrade"Listed Company Visit" Event by the Healthcare Committee of the China Association for Public Companies
Innovation-Driven HealthEmpowerment
Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Strengthening Governancefor Sustainable Growth
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2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Business Ethics and Anti-Corruption
Walvax Biotechnology strictly adheres to international declarations and legal regulations, including the United Nations DeclarationAgainst Corruption and Bribery in International Commercial Transactions, the CEPI Third-Party Code, and various national lawssuch as the Criminal Law of the People's Republic of China, the Company Law of the People's Republic of China, the Anti-unfair Competition Law of the People's Republic of China, the Anti-Monopoly Law of the People's Republic of China, the Anti-Money Laundering Law of the People's Republic of China, the Drug Administration Law of the People's Republic of China, and theVaccine Administration Law of the People's Republic of China. The Company also complies with industry regulations, including thePharmaceutical Industry Compliance Management Regulations and Guidelines for Preventing Commercial Bribery in PharmaceuticalEnterprises. Furthermore, the Company upholds the ethical and compliance standards required by international partners such as theBill & Melinda Gates Foundation (BMGF) and the Coalition for Epidemic Preparedness Innovations (CEPI). The Company remainscommitted to continuously strengthening its compliance and business ethics governance framework, enhancing its risk managementsystems, and maintaining robust internal auditing and whistleblowing mechanisms. Through stringent standards, professionalintegrity, and comprehensive management, the Company safeguards its ethical business practices. During the reporting period,Walvax Biotechnology was not involved in any litigation related to corruption, bribery, or unfair competition.GovernanceWalvax Biotechnology regards compliance and business ethics as strategic issues and has incorporated them into the Board'soversight and management framework. The Board of Directors serves as the leadership and decision-making body for complianceand business ethics management. Oversight is carried out by the Supervisory Board, the Board's Audit Committee, and the Auditand Inspection Department, with dedicated personnel ensuring full coverage. The CEO holds primary responsibility for implementingbusiness ethics and anti-corruption management, overseeing risk assessments, advancing key initiatives, and driving continuousimprovements, thereby strengthening the foundation for the Company's high-quality development. The Company integratescompliance and business ethics management assessments into its performance evaluation system. The evaluation scopeencompasses the performance of directors, supervisors, senior management, and risk management personnel, as well as the riskmanagement e?ectiveness of business departments, subsidiaries, and overseas entities.
Walvax Biotechnology consistently enhances its business ethics governance framework, which applies to all business units,functional modules, and supply chain operations. This system incorporates a range of management policies, operational procedures,implementation guidelines, and processes. It clearly delineates responsibilities and accountability mechanisms, extendingrequirements for anti-fraud, anti-money laundering, anti-corruption, anti-bribery, fair competition, anti-monopoly, and conflict ofinterest to company directors, all employees (including part-time sta?), and all supply chain partners and collaborators. In 2024, theCompany drafted the Walvax Biotechnology Co., Ltd. Disciplinary Measures for Violations. This document outlines that for conrmedunethical business conduct, the Company will take decisive actions based on the severity of the o?ense. These actions may includejob transfers, position changes, demotions, rank reductions, salary cuts, or termination of employment contracts. Furthermore,directly responsible parties and key managers will be held accountable.
Strategy and TacticsWalvax Biotechnology maintains a "zero-tolerance" policy toward business ethics violations. The Company strictly adheres to itscode of business ethics, formulates strategic plans and improvement initiatives for corporate compliance and ethics management,and aligns with standards such as the ISO 37001 Anti-Bribery Management System. It continuously strengthens its compliance andethics culture, enhances control procedures and mechanisms, monitors and optimizes the e?ectiveness of its management systems,and extends these requirements to the supply chain, thereby building a comprehensive compliance and business ethics defensesystem.
Walvax Biotechnology's Compliance and Business Ethics System
Walvax Biotechnology Values and Guidelines - Code of Prohibited ConductWalvax Biotechnology Co., Ltd. Code of Business EthicsWalvax Biotechnology Co., Ltd. Employee Professional Ethics and Code of ConductWalvax Biotechnology Co., Ltd. Implementation Rules for the Employee Code of ConductWalvax Biotechnology Co., Ltd. Anti-Fraud, Anti-Money Laundering, and Anti-Bribery Management SystemWalvax Biotechnology Co., Ltd. Conict of Interest Declaration SystemWalvax Biotechnology Co., Ltd. Misconduct Reporting Mechanism and Handling ProceduresWalvax Biotechnology Co., Ltd. Whistleblower Protection PolicyWalvax Biotechnology Co., Ltd. Disciplinary Measures for ViolationsWalvax Biotechnology Co., Ltd. Supplier Code of ConductWalvax Biotechnology Co., Ltd. Anti-Commercial Bribery Agreement (covering all employees and suppliers)
Walvax Biotechnology has institutionalized the development of a business ethics and anti-corruption culture. Through theestablishment of Walvax Biotechnology Values and Guidelines - Code of Prohibited Conduct and Walvax Biotechnology Co., Ltd.Employee Professional Ethics and Code of Conduct, the Company clearly denes the business ethics standards that employeesmust follow. All employees are required to sign the Walvax Biotechnology Values and Guidelines Commitment Letter. Employees'adherence to company values and their performance in professional ethics and conduct serve as crucial criteria for theirperformance evaluation, promotion, appointment, and dismissal decisions.
Business Ethics Training and Promotion
Average anti-corruptiontraining hours per director:
hours
with
100%
director coverage
Average anti-corruptiontraining hours per employee:
hoursNote: These figures represent specialized training hours. The Company also conducts ongoing promotional activities and integrates anti-corruptionrequirements into daily training to ensure comprehensive implementation.
with100%
employee coverage
Compliance and Business Ethics Leadership Body
Compliance and Business Ethics Implementation Bodies
Supervisory Board, Audit Committee of the Board of Directors, and Audit and Inspection DepartmentThe Oversight Bodies actively align with the latest national and industry policies on compliance and business ethics. Theyare responsible for providing management recommendations, supervising policy implementation, evaluating compliance andbusiness ethics risks, and managing daily whistleblowing operations. These e?orts enhance the monitoring and enforcementof business ethics across the Company. The Audit and Inspection Department operates as an independent entity within theCompany, responsible for overseeing routine audit and compliance activities. All sta? in this department are dedicated full-time professionals who do not engage directly in production or business operations. The department reports directly to theAudit Committee under the Board of Directors, maintaining independence at the organizational, operational, and individuallevels. This ensures that audit results remain impartial, objective, and accurate, providing a fair reection of the Company'soperational processes.
Compliance and Business Ethics Oversight Bodies
Compliance O?ce; Functional Departments, Business Units, and Controlled SubsidiariesThe Compliance Office implements a comprehensive compliance management framework across eight key areas: anti-bribery, antitrust, financial and tax compliance, product marketing, centralized procurement, environmental, health andsafety, adverse reaction reporting, data protection, and cybersecurity. This framework ensures full compliance coverageacross internal operations and throughout all stages of the supply chain and value chain.
Board of DirectorsAs the core leadership body, the Board of Directors oversees and drives management in developing and enhancing theCompany's business ethics, anti-corruption management systems, internal controls, and compliance culture. It is alsoresponsible for reviewing major compliance and business ethics matters, including decisions on handling violations, andholds ultimate accountability for the e?ectiveness of management.
Innovation-Driven HealthEmpowerment
Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Strengthening Governance
for Sustainable Growth
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2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Walvax Biotechnology consistently organizes and conducts comprehensive business ethics and anti-corruption initiatives, includingpromotional activities, awareness campaigns, and training sessions. These encompass a wide range of programs, such as anti-corruption training for directors, compliance training for new employees, integrity and compliance training for functional personnel,specialized compliance and business ethics training for auditors, and targeted training for suppliers. The Company ensuresthat Board members, Supervisory Board members, and senior management are promptly updated on the latest domestic andinternational anti-fraud, anti-corruption, anti-bribery, and business ethics policies, case analyses, and the Company's implementationstatus, thereby equipping them to e?ectively address business ethics risks. All employees, including part-time sta?, are required toparticipate in business ethics training at least once annually. The e?ectiveness of this training is veried through various assessmentmethods. In 2024, Walvax Biotechnology achieved 100% coverage of anti-corruption and business ethics training for Boardmembers, all employees (including part-time sta?), key partners, and critical suppliers through a multi-faceted approach includingo?ine training, online learning, special lectures, email communications, and examinations.
Walvax Biotechnology demonstrates strict adherence to theLaw of the People's Republic of China for Countering UnfairCompetition, Several Provisions on Prohibiting Infringementsupon Trade Secrets, and relevant anti-monopoly and faircompetition laws and regulations in all countries and regionswhere it operates. The Company is firmly committed toethical business practices, pledging not to illegally collectcompetitors' trade secrets or other confidential information.Furthermore, it refrains from engaging in illegal activities suchas price-fixing with industry peers that could disrupt marketorder. The Company's compliance and business ethicstraining system incorporates comprehensive content related toanti-unfair competition. Compliance supervision departmentsregularly conduct thorough anti-unfair competition reviews tomaintain a market environment of fair competition. In 2024,Walvax Biotechnology was not involved in any violations offair competition or anti-monopoly laws and regulations.
The Company provides all directors with at least one annual session on business ethics, anti-corruption, and risk management training. Directors are encouraged and supported to participatein courses and lectures organized by professional institutions to enhance their expertise andcompliance awareness. In September 2024, the Company organized a specialized trainingsession on anti-bribery and compliance risk identification and prevention for publicly listedcompanies, attended by all members of the Board of Directors.
The Company has implemented the Walvax BiotechnologyCo., Ltd. Supplier Code of Conduct that clearly delineatesrequirements for business ethics, anti-corruption, and anti-fraud practices. This code applies to all suppliers, ensuring100% coverage. Suppliers are mandated to comply withnational and local laws, regulations, policies, and industrystandards, and are explicitly prohibited from engaging inor tolerating any form of corruption, fraud, extortion, orembezzlement. Furthermore, the Company has establishedrobust centralized procurement management measuresand process mechanisms. Internally, potential conflicts ofinterest are rigorously checked against procurement processregulations. Externally, all suppliers and partners are requiredto sign an Anti-Commercial Bribery Agreement and includeexplicit business ethics standards and compliance clauses intheir contracts. This approach ensures that the Company'sbusiness ethics and anti-corruption policies have substantivebinding force on the entire supply chain.Suppliers are expected to operate in strict compliance with allapplicable laws and regulations, demonstrating their abilityto address various business ethics risks. The Companyconducts annual assessments of suppliers' performancein anti-corruption and other business ethics areas. Theseassessments strengthen the supervision and control ofbusiness ethics issues in supplier cooperation processesacross all business departments. In 2024, the Companyprovided comprehensive training on business conductcompliance requirements to its suppliers. This training coveredcritical topics such as anti-corruption laws and regulations,identification and prevention of corrupt practices, internalcontrol mechanisms, compliance processes, and reportingchannels. During the reporting period, Walvax Biotechnology'sprocurement activities were free from any litigation casesrelated to corruption or unfair competition.
Supply Chain Integrity Management
Anti-Unfair Competition
DirectorBusiness
EthicsTraining
SupplierBusiness
EthicsTraining
EmployeeBusiness
EthicsTraining
During procurement bidding processes, Walvax Biotechnology actively promotes anti-fraud andanti-bribery principles. The Company emphasizes its business ethics policies during supplierinterviews, building a dual line of defense—both internal and external—for compliance andethical conduct. Together with our partners, we are working to establish a clean and efficientsupply chain. In 2024, a remote training session titled "Walvax Biotechnology Code of BusinessConduct Requirements" was delivered for suppliers. Additionally, ve on-site anti-fraud and anti-bribery awareness sessions were conducted during procurement and bidding supervision.
The Company employs diverse methods to promote business ethics and anti-corruption policiesand procedures, including employee handbooks, regulation issuances, promotional materials,and online platforms. Aperiodic anti-corruption training activities are organized to enhancecompliance awareness and capabilities across the workforce. In 2024, a company-wide trainingsession on business ethics was conducted through a combination of online and o?ine channels.
The Company has implemented the Walvax BiotechnologyCo., Ltd. Whistleblower Protection Policy to safeguardwhistleblowers and witnesses. We are committed to maintainingstrict confidentiality throughout the reporting and investigationprocess. This includes protecting personal information suchas names, work units, contact details, and home addressesof whistleblowers, as well as the content of reports and theirhandling status at all stages of acceptance, registration, storage,and investigation. Reported leads and materials are handled bydesignated personnel and managed under strict confidentialityprotocols. Access to this information is prohibited without explicitapproval from the President or Chairman of the Board. Whileensuring whistleblower condentiality, we take a zero-toleranceapproach to retaliatory actions. Personnel violating condentialityregulations or engaging in retaliation against whistleblowers faceaccountability based on the severity of their actions, with severeconsequences for those implementing such retaliation. Thisapproach ensures maximum protection for whistleblowers andcomplainants. For veried reports that signicantly contribute tosafeguarding the Company's interests, both moral and materialrewards are provided to whistleblowers who actively provideleads and assist in case investigations.
Walvax Biotechnology maintains an uncompromising zero-tolerance stance towards corruption and unethical businesspractices. The Company has formulated and rigorouslyimplements the Walvax Biotechnology Co., Ltd. MisconductReporting Mechanism and Handling Procedures. This policyactively encourages all stakeholders, including employees,customers, suppliers, contractors, business partners, and anyindividuals with business relationships with the Company, toreport actual or suspected business ethics violations. To facilitatereporting, the Company offers multiple accessible channels,including complaint hotlines, text messages, WeChat, email,and traditional mail. The Audit and Inspection Department isresponsible for handling complaints and reports of employeemisconduct, conducting thorough investigations of disciplinarycases, and reporting findings directly to the President's Officeand the Board of Directors. In cases where violations of lawsor disciplinary regulations are confirmed, the Company takesappropriate action based on the severity of the situation.These actions may include job transfers, position changes,demotions, rank reductions, salary cuts, termination ofemployment contracts, and referral for judicial processing. As anadditional measure to promote integrity, the Company maintainscomprehensive employee integrity les. These les record anyviolations of laws, regulations, and company rules. Importantly,employees with records in these integrity les are ineligible foremployment or promotion to key positions within the Company.
Whistleblowing and Whistleblower Protection
Walvax Biotechnology Reporting Channels
and Contact Information
Audit and Inspection Department, 395 Kexin Road,High-tech Zone, Kunming, Yunnan Province, China+86 871-68312586ynwsia@walvax.comAnti-bribery and compliance risk identicationand prevention training for publicly listedcompanies
Training on commercial bribery risks andresponses in listed companies
Innovation-Driven HealthEmpowerment
Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Strengthening Governance
for Sustainable Growth
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2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Impact, Risk, and Opportunity Management
Walvax Biotechnology adheres to industry standards such as the Compliance Guidelines for Healthcare Companies to PreventCommercial Bribery Risks. The Company strengthens its compliance and business ethics management system through annual riskassessments. This process includes identifying and evaluating compliance and business ethics risks, implementing correspondingmeasures, and conducting thorough reviews and audits of the internal control system's e?ectiveness and compliance. Findings arereported directly to top management or the Audit Committee, detailing relevant risks, violations, and countermeasures.
Walvax Biotechnology maintains a rigorous approach to business ethics audits across all operational areas. The Audit andInspection Department annually develops targeted audit plans to assess the implementation of business ethics policies and evaluateassociated risks in various operational scenarios. To enhance the e?ectiveness of business ethics and anti-corruption audits, theCompany has established the Walvax Biotechnology Co., Ltd. Internal Audit Quality Assessment Manual, aligning with industrystandards such as the Professional Ethics Standards for Internal Auditors and the Internal Audit Quality Assessment Measures(Trial). During the reporting period, the Audit and Inspection Department completed 11 compliance and business ethics inspectionsalongside 29 special audits. Each business unit was required to formulate and execute corrective measures in response to auditrecommendations. The Company ensures comprehensive coverage of all business areas through business ethics-related auditsconducted on a three-year cycle, aimed at assessing and improving the e?cacy of business ethics management practices. At theclose of 2024, an independent professional accounting rm was engaged to audit the Company's internal controls, encompassingaspects of business ethics, anti-bribery measures, fraud prevention, and complaint reporting mechanisms.The Audit and Inspection Department leverages audit ndings to formulate ongoing improvement strategies. It conducts regularfollow-ups on the implementation of corrective actions and reports progress and outcomes to the Audit Committee and Boardof Directors. This process ensures the robustness of the Company's business ethics, anti-corruption policies, and compliancesystems, e?ectively mitigating business ethics risks. For matters involving misconduct reporting, fraud, money laundering, bribery,and conicts of interest across internal departments, subsidiaries, and signicantly inuenced associated companies, the Audit andInspection Department adheres to the Company's established policies and procedures. These include the Walvax BiotechnologyCo., Ltd. Misconduct Reporting Mechanism and Handling Procedures, Walvax Biotechnology Co., Ltd. Anti-Fraud, Anti-MoneyLaundering, and Anti-Bribery Management System, and Walvax Biotechnology Co., Ltd. Conict of Interest Declaration System.
Corporate Business Ethics Audit
Compliance and Business Ethics
Risks
Response Strategies
●Academic visit andexchange risks ●Business reception risks ●Consulting service risks ●Outsourcing service risks ●Discount, rebate, andcommission risks ●Donation, sponsorship, andfunding risks ●Clinical research risks ●Retail terminal sales risks
●Rene the business ethics risk identication and assessment mechanism, conductingregular risk assessments across various business scenarios and updating the businessethics risk inventory.
●Enhance employee compliance awareness and capacity to address commercial briberyrisks through intensied compliance and business ethics training, robust whistleblowingmechanisms, and proactive communication with regulatory authorities. ●Develop and rene compliance review mechanisms to prevent commercial bribery risks,ensuring that compliance management bodies independently exercise review authorityand actively manage potential business ethics risks in operations.
●
Implement a monitoring mechanism for the compliance and business ethicsmanagement system, conducting regular evaluations of its effectiveness, promptlyimplementing improvement measures, and adjusting management strategies to ensurethe adaptability and e?ectiveness of the compliance and business ethics managementsystem.
Indicators and Targets
Walvax Biotechnology has implemented stringent supplier qualication requirements and conducts comprehensive audits of supplychain partners' adherence to the code of conduct, with a focus on business ethics and anti-corruption practices. When deemednecessary, the Company performs due diligence, project audits, and compliance checks on partners involved in collaborativeprojects. Due diligence methodologies include, but are not limited to, public information verication, questionnaire distribution, on-site inspections, and engagement of specialized investigation agencies. Walvax Biotechnology employs a combination of thesemethods for routine or high-risk due diligence, tailored to specific business needs, ensuring constant monitoring and control ofsupply chain compliance and business ethics risks. The Company enforces a "zero-tolerance" policy towards supplier corruption,implementing a "one-strike" rule and strict procurement prohibitions. Suppliers found in severe violation are blacklisted and subjectto penalties in accordance with company policies, thereby preventing improper, illegal, and fraudulent activities. During the reportingperiod, integrity due diligence assessments, based on compliance and business ethics standards, were conducted on 78 suppliers.These assessments revealed no high-risk behaviors warranting special attention or expanded audit scope.
Supply Chain Business Ethics Audit
IndicatorTarget2024 Achievement Status
Major corruption incidentsZero occurrence of major corruption incidents
Target achievedWalvax Biotechnology Values and GuidelinesCommitment Letter signing rate
100% signing rateBusiness ethics audit
Ensure comprehensive coverage of all company
operations every three yearsBusiness ethics and anti-corruption trainingcoverage
100% coverageE?ective report resolution rate100% resolution rate for valid reports
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
29 30
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Innovation-Driven HealthEmpowerment
Community Co-development,
Shared Health Benets
Empowering People,Energizing the Workplace
Green Development andEnvironmental StewardshipStrengthening Governance
for Sustainable Growth
Information Security and Privacy ProtectionGovernanceWalvax Biotechnology rigorously adheres to a comprehensive set of laws and regulations, including the Cybersecurity Law ofthe People's Republic of China, Data Security Law of the People's Republic of China, Personal Information Protection Law ofthe People's Republic of China, and the World Health Organization (WHO) Guideline on Data Integrity: Guidance on Good Dataand Record Management Practices. To ensure compliance and best practices, the Company has developed and implementedseveral internal policies, such as the Walvax Biotechnology Co., Ltd. Information Security and Privacy Protection Policy, WalvaxBiotechnology Co., Ltd. Information Security Management Measures, and Walvax Biotechnology Co., Ltd. Personal Information andPrivacy Protection Management Measures. These policies address multiple facets of information security, including data security,personal device security, application security, data integration security, and IT infrastructure security. By embedding informationsecurity and privacy protection requirements into business processes, the Company ensures comprehensive management of dataprotection and information security across all operational areas. In 2024, it undertook a thorough revision of its information securitysystem, culminating in the draft of Walvax Biotechnology Co., Ltd. Personal Information and Privacy Protection ManagementMeasures. This document establishes standards for information collection and processing, sensitive information handling, cross-border data transmission, and processor obligations.Walvax Biotechnology improves its information security organizational structure by establishing an Information Security ManagementCommittee, directly led by the Chairman. This committee is tasked with core information security management responsibilities,including approving security measures, making decisions on security policies, supervising security practices, and handling majorinformation security incidents. The committee comprises senior management, with general managers from each subsidiary servingas committee members. In addition, the Company has incorporated the information security reward and penalty mechanism into itsbusiness management system. For comprehensive details on the Company's information security and privacy protection principles,management structure, policies, and protection systems, please refer to the Walvax Biotechnology Co., Ltd. Information Securityand Privacy Protection Policy.
Strategy and TacticsWalvax Biotechnology recognizes the critical importance of information assets. Aligning with international standards such as ISO27001 Information Security Management System and ISO 27701 Privacy Information Management System, the Company hasestablished a comprehensive information and data security framework in accordance with Multi-Level Protection Scheme (MLPS)Level 3 standards. This framework encompasses management, technological, and operational aspects. At the management level,the Company has implemented a suite of information security policies and procedures, including the Information Security ManagementMeasures, Information Security and Privacy Protection Policy, and Information System Emergency Response Plan. In addition, theCompany has enhanced o?-site disaster recovery protocols, implemented personnel and material classication management, andestablished data export compliance self-assessment and reporting mechanisms. Employee behavior is strictly regulated to minimizethe likelihood of information security risks. At the technical level, a multi-faceted approach to security measures has been deployed,which includes network isolation, transmission encryption, tracking and early warning mechanisms, and antivirus measures. Thisresults in a comprehensive, multi-layered security protection network designed to safeguard information and data assets. At theoperational level, the Company has intensied information and data security training and awareness programs, while conductingregular audits to enhance overall information security standards.
The Company promotes classification and hierarchicalmanagement of personnel and information assets. Fordi?erent categories and levels of classication, di?erentiatedprotection measures are applied in accordance with relevantmanagement protocols. Following the principle of leastprivilege, data access permissions are strictly controlled toprevent unauthorized access to sensitive information. Keycore systems are equipped with audit mechanisms thatensure all operations are logged and traceable. In addition,log audit systems and operation & maintenance audit systemsare in place to monitor and record access activities bymaintenance personnel in IT systems.
Information Access Control
The Company has significantly upgraded our Green Shieldprotection system, fully transitioned to company-wide clouddocument usage, and provided secure VPN accounts forall personnel. Comprehensive encryption and decryptionmanagement is rigorously applied to server and terminal data,effectively mitigating risks of data theft or tampering duringtransmission. Over the past year, we enhanced our technicalprotection measures 1,410 times and successfully defendedagainst 56,592 network attacks, ensuring secure datatransmission between terminals and servers. We keep reningour audit tracking and early warning mechanisms, employingreal-time monitoring of data access, modication, and deletionto swiftly detect and address potential security vulnerabilities,thereby bolstering our overall information security posture.
Enhanced Technical ProtectionThe Company has established the Walvax BiotechnologyCo., Ltd. Backup and Recovery Management Measures,which outlines detailed requirements and procedures for databackup, extraction, and usage. Our application systems aredeployed locally and privately, with regular full local backupsof both systems and their generated data. To ensure businesscontinuity, we maintain two geographically dispersed datacenters in Kunming and Yuxi, providing cross-city disasterrecovery capabilities. This infrastructure ensures rapid datarestoration in the event of loss or damage. Our backupsystem incorporates deletion protection features to safeguardagainst accidental data deletion or modication. Additionally,we have implemented comprehensive emergency responseand recovery testing protocols to minimize potential losses.
Data Loss and Alteration Prevention
In strict compliance with legal requirements, including theRegulations on Promoting and Regulating the Cross-borderData Flow, Measures for Security Assessment of Data Exports,and Measures for Standard Contracts for Cross-borderTransfer of Personal Information, the Company implementeda rigorous data export compliance self-assessment andreporting process. We have instituted measures such asrequiring employees to carry computers with no data whentraveling internationally. Our approach includes strengthenedpreventive controls against cross-border data transmissionsecurity risks, particularly those involving national securityconcerns, thus comprehensively safeguarding against dataexport security risks.
Data Export Control
The Company implements a comprehensive information security training program for all employees. These sessions are customizedto address the specic requirements of various roles, ensuring that personnel are well-versed in the information security risks andprotocols relevant to their positions. In 2024, the Company organized a total of four dedicated information security training sessions,covering topics such as international data export regulations and company-wide awareness of information security and privacyprotection. These sessions achieved 100% coverage of employees across Walvax Biotechnology, its subsidiaries, and controlleda?liates. Information security has been integrated into the new employee orientation process. Furthermore, the Company published12 issues of information security bulletins to promote knowledge and raise awareness, enhancing the entire workforce's capability toidentify and mitigate data security risks.
Information Security Training and Advocacy
Information Security Management Committee
Functional Departments, Business Units, and Controlled Subsidiaries
Develop comprehensive information security and privacyprotection framework, aligning with compliance requirements andbusiness needs. Standardize operational mechanisms across allorganizational levels to ensure seamless functioning of securityand privacy management systems.Conduct risk assessments and implement improvements forinformation security and privacy protection. Ensure ongoing andeffective operation of the security maintenance system. Reportdirectly to the Information Security Management Committee.
Information Security Management O?ce
Ensure adherence to company-wide information security requirements. Implement information security and privacyprotection measures at operational levels.Promptly report identied information security and privacy protection risks. Collaborate with management to enhanceprotective capabilities.
Establish strategic direction and key decisions for information security.Approve information security management policies, procedures, and objectives.Dene information security standards and protocols for major security incidents.Monitor implementation of information security policies and evaluate the e?ectiveness of security management.
Monitor and audit information security risks(integrated into annual internal controlsupervision and evaluation processes).
Audit and Inspection Department
Innovation-Driven HealthEmpowerment
Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Strengthening Governancefor Sustainable Growth
31 32
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Impact, Risk, and Opportunity ManagementWalvax Biotechnology has implemented a comprehensive information security risk assessment process. This holistic processincludes risk identication, vulnerability identication, risk evaluation and analysis, risk treatment, residual risk management, andrisk control. By quantifying risk levels, the Company can more accurately assess high-risk areas in information security and privacyprotection, enabling the development of targeted countermeasures to ensure robust protection of corporate information and data.The information security risk assessment team is composed of personnel from the Company's Intelligent Information Departmentand relevant specialists. They employ a diverse range of assessment methods, including questionnaires, interviews, automatedscanning tools, manual inspections, document reviews, and penetration testing. This multi-faceted approach ensures a thoroughand professional evaluation. The Company conducts risk assessments at least once annually, with additional updates prompted bychanges in information systems, business operations, or information security incidents. This practice ensures that the Company'sinformation security risk management remains timely and e?ective.
Walvax Biotechnology conducts regular internal and external information security audits, including annual information security riskaudits. These audits focus on ve key areas: user access management, system development, system changes, logical access, andother general controls. The process involves reviewing historical risks and the status of their resolution, identifying current risks, andproposing avoidance and mitigation strategies. Additionally, the Company engages independent third-party institutions annually toaudit its information systems and security policies. This external scrutiny enables comprehensive risk identication and assessment.Based on the audit ndings, the Company actively implements improvements and enhancements to strengthen its information dataprotection system.
While Walvax Biotechnology's core business of vaccine production involves minimal direct interaction with end-users and theirpersonal data, the Company has proactively established the Walvax Biotechnology Co., Ltd. Personal Information and PrivacyProtection Management Measures. This framework creates a sophisticated privacy data management system that addressesvarious data categories. Through stringent access controls and enhanced data governance, the Company ensures transparency inthe collection and utilization of product and service-related data. This approach reinforces stakeholders' rights to information, choice,and control over their personal data.
Personal Information and Privacy Protection
Information Security and Privacy Protection
Risk Analysis
Response Strategies ●Policy risks (potential legal liabilities orreputational damage resulting from non-compliance with relevant regulations) ●Technical risks (issues such as hardware/software failures, system vulnerabilities,malicious code and viruses, and cross-border data ow challenges) ●Human risks (encompasses both accidentalerrors and deliberate actions, includingunauthorized access or misuse of systems) ●Management and operational risks (includesinsu?cient security policies, organizationalsecurity management deciencies, and lackof personnel security awareness)
●Rene information security and privacy protection risk identication andassessment mechanisms, maintaining an up-to-date risk inventory. ●Align with the latest domestic and international information security andprivacy protection legal requirements, establishing a comprehensiveprotection system across organizational, managerial, technical, andoperational domains. ●Conduct regular, proactive vulnerability assessments on businesssystems, ensuring that each newly discovered high-risk issue isaddressed with appropriate active defense strategies, therebyenhancing overall system resilience. ●Perform periodic audits of the information security management system,evaluating and improving risk control measures to actively manageinformation security and privacy protection risks in business operations.
The Company has developed the Walvax Biotechnology Co., Ltd. External Personnel Access Information Security ManagementMeasures, which delineates robust security protocols for external individuals accessing company information systems and physicalresources. This document encompasses the definition and categorization of external personnel, information access securityprocedures, server room access control measures, and account and access permission management guidelines, all designed tosafeguard the Company's condential information and technological assets.
External Personnel Information Security Management
The Company has updated critical documents, including the Walvax Biotechnology Co., Ltd. Emergency Plan ManagementMeasures and Walvax Biotechnology Co., Ltd. Information Security Incident Reporting and Handling Management System. Ongoingimprovements are being made to information security emergency plans and data breach response protocols. Regular cybersecuritydrills and recovery tests are conducted to reinforce emergency response mechanisms and procedures, ensuring prompt andeffective protection of the Company's information assets. In 2024, Walvax Biotechnology performed comprehensive data andapplication recovery simulations for essential systems such as ERP, OA, and e-HR, bolstering the resilience of data and systemsecurity.
Information Security Emergency Management
Walvax Biotechnology strictly complies with the Provisions for Drug Registration, the Declaration of Helsinki, thePersonal Information Protection Law of the People's Republic of China, and other relevant laws, regulations, andguiding principles. All clinical trials are conducted by qualified research institutions and their affiliated trial sites.Therefore, during the clinical trial process, the Company does not directly access or collect personal information of trialparticipants; instead, it uses subject data that has been encoded or de-identied. A series of measures have also beenimplemented to safeguard the security of clinical trial data:
Clinical Research Data Security and Privacy Protection
During the clinical trial design phase, the scope, purpose, and access permissions for data collectionare clearly defined based on established Standard Operating Procedures (SOPs), ensuring that onlyinformation directly relevant to the trial objectives is collected and unnecessary data is minimized.Informed consent forms are written in user-friendly language and clearly explain the type of informationto be collected, how it will be used, and the data protection measures in place, ensuring participantsvoluntarily join the study with full awareness. Anonymization and other technical safeguards areemployed to ensure the condentiality of research data and protect the personal privacy of participants.The Company has established sound regulations for the evaluation and management of electronic datacapture (EDC) system providers. Clinical trial data collection, management, and storage are conductedusing systems that meet national regulatory requirements and relevant industry standards in terms ofsecurity and reliability. All clinical trial materials are managed exclusively by authorized personnel at trialsites and securely stored in designated archives or cabinets. During data transmission and processing,validated encryption technologies and security measures are employed to rigorously prevent any risk ofparticipant privacy breaches.Before initiating any clinical trial, condentiality agreements and/or technical service contracts are signedwith all collaborating parties, clearly dening condentiality obligations and requirements. Throughout allclinical trial projects, no incidents of participant privacy breaches have occurred.
Indicators and TargetsIndicatorTarget2024 Achievement StatusInformation security trainingcoverage
100% coverageTarget achievedPrevent the occurrence of majorinformation security risks
Zero incidents of major information security breaches in 2024Target achieved
Innovation-Driven HealthEmpowerment
Community Co-development,
Shared Health Benets
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Strengthening Governance
for Sustainable Growth
33 34
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Innovation-Driven HealthEmpowerment
Annual R&D investment:
RMB
700.4222
million
Annual product recall rate:
0%
Annual vaccine batch release:
24.6392
milliondoses, with a 100% delivery rate
Advancing Innovative Vaccine Development
New quality productive forces are the driving force behind continuous innovation and organizational adaptability. WalvaxBiotechnology, guided by the principle that "life is priceless, and technology is limitless," has progressively built a high-level, openscientific innovation ecosystem. This system has evolved through independent development, strategic acquisitions, and deepintegration of industry-academia-research collaborations. The Company has developed multiple pipelines of innovative vaccineproducts, positioning innovation and synergistic collaboration across industry, academia, and research institutions as the coreengines of corporate growth. By cultivating new quality productive forces, the Company aims to contribute signicantly to building aglobal immune barrier.Governance
Strategy and Approach
To e?ectively implement its innovation strategy, the Company has established a scientic and e?cient R&D project decision-makingand management system. The Board of Directors oversees innovation strategy decisions, ensuring alignment with overall corporateobjectives. A Scientic Committee has been formed to evaluate and approve projects. The Company operates through four businessunits: Bacterial Vaccine BU, Recombinant Protein BU, mRNA Vaccine BU, and New Business BU. These units are efficientlysupported by key capability centers, including the R&D and Transformation Center, Registration and Medical Center, and QualityManagement Center. This structure enables each business unit to manage the entire process from R&D to commercialization,ensuring e?ciency, quality, and accelerated technology advancement, product integration, and iteration.The Company has established comprehensive R&D project management practices in compliance with relevant domestic andinternational laws, regulations, technical guidelines, industry standards, and international benchmarks. These include the DrugAdministration Law of the People's Republic of China, Vaccine Administration Law of the People's Republic of China, and Provisionsfor Drug Registration. The management system covers the entire spectrum of scientic research, from project initiation and planningto change management, execution, monitoring, results management, and reward mechanisms. In 2024, the Company introducedexploratory project management measures to balance risk control and resource allocation while fostering e?ciency and innovationin research projects. Additionally, the Company has implemented the Walvax Biotechnology Co., Ltd. Scientic Research ProjectFunding Management Measures and Walvax Biotechnology Co., Ltd. R&D Project Investment Funding Management Measures toensure compliance, transparency, and e?ciency in R&D fund utilization.
Walvax Biotechnology employs a dual-driven strategy focusing on technology and market dynamics. The Company consistentlymaintains substantial R&D investments in new products and projects, fostering industry-leading scientic innovation capabilities. Weactively pursue a technology innovation system that is enterprise-driven, market-oriented, and deeply integrates industry, academia,and research institutions. Our multifaceted approach balances in-house research, collaborative development, and strategic license-in, prioritizing the development of vaccines with high medical and social value that address urgent market needs. Our goal isto cultivate an innovative product pipeline with significant technological and clinical advantages, thereby nurturing new-qualityproductivity through both technological and institutional innovations to strengthen global health defenses.
Establishing High-Level Research Platforms
In 2024, the Company embraced a transformative approach,implementing a new business management structure centered onbusiness units (BUs), supported by capability platforms and functionaldepartments. This restructuring aims to create a dynamic operationalsystem that prioritizes customer needs and market demands. Weestablished four key innovative operational units: the BacterialVaccine BU, Recombinant Protein BU, mRNA Vaccine BU, andNew Business BU. Each unit is tasked with developing a suite ofvaccines in their respective elds, leveraging cutting-edge scienticresearch platforms. This structure enables deeper insights into marketdemands and competitive landscapes, facilitating more targetedproduct development and iteration strategies, ultimately leading tomore diverse and strategically aligned vaccine R&D pipelines.Walvax Biotechnology remains committed to advancing innovativebiological products, addressing antimicrobial resistance, andresearching vaccines for major infectious diseases. Our focus onoptimizing the vaccine innovation landscape is twofold. Firstly, weare enhancing our currently marketed products by developing higher-valent versions of pneumococcal polysaccharide conjugate vaccines,meningococcal vaccines, and HPV vaccines, while expanding theirindicated populations. Secondly, we are accelerating the R&D ofgroundbreaking vaccines, with a particular emphasis on respiratorysyncytial virus vaccines, shingles vaccines, and mRNA COVID-19-influenza combination vaccines. Concurrently, we are leveragingour marketed vaccine products and vaccine candidates in clinicaldevelopment to expedite the development of combination vaccines forinfants and young children, aiming to provide superior, more e?cientvaccine solutions for global public health.
Enhancing the Vaccine Innovation Pipeline
Bacterial Vaccine BUmRNA Vaccine BURecombinant Protein BU
R&D and Transformation CenterRegistration and Medical CenterQuality Management CenterSupply Chain Center
New Business BUScientic Committee
Shanghai Zerun was recognized as a
National Technology Innovation
Demonstration EnterpriseNational Innovative-Oriented
Pilot EnterpriseNational Enterprise Technology
CenterNational High-Tech Enterprise
Yunnan Vaccine LaboratoryYunnan Biological VaccineTechnology Innovation CenterYunnan Province High-TechLeading EnterpriseYunnan Province Manufacturing
Innovation CenterShanghai High-Tech EnterpriseShanghai Science and TechnologyLittle Giant (Cultivation) Enterprise
Shanghai Specialized, Rened,Di?erentiated, and Innovative
(SRDI) EnterpriseShanghai Enterprise Technology
Center
Top
Most Innovative Non-Public Enterprises in Yunnan Province 2024
Recipient of
provincial-level scientic andtechnological innovation awards
The Bacterial Vaccine BU boasts state-of-the-art polysaccharidetechnology platforms, carrier protein technology platforms, andpolysaccharide-protein conjugation technology systems. To date,we have successfully developed and launched seven bacterialvaccine products. These include the 13-valent pneumococcalconjugate vaccine, 23-valent pneumococcal polysaccharide vaccine,Haemophilus influenzae type b conjugate vaccine, Group A and Cmeningococcal conjugate vaccine, Group ACYW135 meningococcalpolysaccharide vaccine, Group A and C meningococcalpolysaccharide vaccine, and diphtheria, tetanus and acellularpertussis combined vaccine (adsorbed). This comprehensiveportfolio addresses the prevention of multiple pathogens, includingpneumococcus, meningococcus, and pertussis.
Bacterial Vaccine BU
The main clinical work for the full immunization phaseof clinical trials for the Group ACYW135 meningococcalpolysaccharide conjugate vaccine was completed in 2024.The Drug Clinical Trial Approval for the adsorbed tetanusvaccine was received in November 2024.The clinical trial application for the 20-valent pneumococcalpolysaccharide conjugate vaccine was accepted onJanuary 20, 2025.
Strengthening Governancefor Sustainable Growth
Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Innovation-Driven HealthEmpowerment
37 38
The Yunnan Vaccine Laboratory stands as a agship projectexemplifying Yunnan Province's commitment to innovation-driven development strategies and the pursuit of high-levelscientific and technological self-reliance. Spearheaded byWalvax Biotechnology in partnership with relevant universities,disease control centers, and enterprises in Yunnan Province,this initiative represents a signicant step towards advancingfrontier technologies in vaccine industry R&D. It aims to breakthrough core technological barriers and establish high-endvaccine R&D platforms and public service infrastructure forthe biopharmaceutical sector. The laboratory integrates theentire vaccine industry chain, encompassing basic research,applied research, clinical trials, technology transformation,industrial scaling-up, and research in health economics. Thiscollaborative effort aims to drive high-quality developmentwithin Yunnan's vaccine industry while extending its impact toSoutheast Asian Belt and Road Initiative (BRI) countries andother participating nations.In December 2024, the laboratory successfully completed itspreparatory phase assessment. Following official approvalprocedures, it has been formally inaugurated as the "YunnanVaccine Laboratory." Looking ahead, the laboratory willmaintain its roots in Yunnan province while adopting a
global perspective. It aspires to become a national center ofexcellence for vaccine R&D and industrialization technologyinnovation, a wellspring of cutting-edge technology, a catalystfor translating research into practical applications, a driver forindustrial development, a magnet for high-caliber talent, andan incubator for nurturing core professionals. The ultimategoal is to cultivate an industrial cluster of signicant nationalimportance.In addition, Walvax Biotechnology proactively combinestechnological expertise from domestic and internationalenterprises, universities, and disease control centers to createa comprehensive innovation ecosystem. We collaborate withprestigious institutions such as Tsinghua University, FudanUniversity, Shanghai RNACure Biopharma Co., Ltd., andGuangzhou Laboratory in groundbreaking vaccine technologyR&D. Our research scope extends to broader fields andcutting-edge technologies in vaccine development, pioneeringnew frontiers in innovative vaccines. Furthermore, wemaintain strategic partnerships with renowned internationalorganizations, including the Gates Foundation (GF), Coalitionfor Epidemic Preparedness Innovations (CEPI), and Programfor Appropriate Technology in Health (PATH). We alsocollaborate with the United Nations Children's Fund (UNICEF),Global Alliance for Vaccines and Immunisation (Gavi), andthe Developing Countries Vaccine Manufacturers Network(DCVMN). These collaborations aim to accelerate vaccineR&D and facilitate WHO-PQ.
Fostering Synergy through Industry-Academia-Research-Application Collaboration
Scientic research talent development is the cornerstone of technological innovation. Walvax Biotechnology continuously renesits talent selection criteria, recruiting outstanding R&D professionals who embody the Company's values, demonstrate excellentqualities, possess robust technical expertise, and show high potential. The Company strengthens its innovation teams throughvarious approaches, including full-time recruitment and exible hiring models. It has also enhanced its management mechanismsto foster the growth of scientic research talent. The Company intensies e?orts to attract and nurture high-caliber scientic andtechnological professionals, regularly conducts on-the-job qualification and skills training, encourages participation in externalexchange programs, and promotes the development of multidisciplinary researchers. Furthermore, the Company has implementedlong-term incentive plans for core talent to unleash the full potential of its scientic and technological workforce. With over twodecades of development, we have cultivated a talent pipeline of management and technical professionals who possess globalperspectives and deep expertise, achieving a comprehensive talent ecosystem across the entire vaccine industry chain. In addition,the Company has appointed several seasoned experts from the vaccine industry as consultants, providing strong support forensuring the proper direction, technical standards, progress, and quality of its vaccine R&D.
Building a Dynamic Talent Ecosystem
The Company actively participatesin industry academic exchangeevents, including the China BiologicalProducts Annual Conference (CBioPC),China Vaccine Conference, VaccineInnovation Forum World, NationalNucleic Acid Vaccine Conference,and International PapillomavirusConference. It remains closely attunedto and shares the latest global trends invaccine development.
Bachelor'sDegree
Doctorate
Master'sDegree
Total R&DPersonnel
EducationBackground
Below 30years
30–40years
Above 40years
AgeDistribution
The Recombinant Protein BU has developed advancedtechnology platforms, including Virus-Like Particle (VLP)preparation, recombinant protein expression, novel adjuvantevaluation, and innovative vaccine technology systems.This BU has independently developed and manufacturedWalrinvax
?, a bivalent human papillomavirus (HPV) vaccine,which contributes significantly to accelerating the globalcervical cancer elimination action plan.In August 2024, Walrinvax
?received WHO Prequalification(WHO-PQ). Subsequently, in October 2024, it obtained theProduct Marketing Authorization Certicate from Indonesia'sNational Agency of Drug and Food Control (BPOM). Thesemilestones qualify the vaccine for procurement by UNICEFand other UN agencies, facilitating its entry into additionalcountries and regions, thereby expanding its global reachto benefit a broader population. Concurrently, the PhaseIII clinical trial of the nonavalent HPV vaccine continues toprogress, bolstered by substantial support from internationalorganizations such as BMGF and PATH.
The mRNA Vaccine BU has swiftly established an mRNAtechnology platform through collaborative R&D. It hassuccessfully overcome key technical challenges in mRNAdesign optimization, in vivo delivery, thermal stability, large-scale production, and analytical evaluation. A comprehensivesystem for R&D, clinical trials, and industrialization has beenimplemented to rapidly introduce innovative vaccine productsthat meet market demands.The collaboratively developed novel coronavirus variantmRNA vaccine (Omicron XBB.1.5) (code: RQ3033), brandedas Walancorna
?
, is China's first COVID-19 mRNA vaccinetargeting XBB and other variants approved for emergencyuse. This approval is based on complete Phase III safetyand e?cacy data obtained through immunogenicity bridgingclinical trials. Through the development and industrializationof COVID-19 vaccines, Walvax Biotechnology has establishedan independent and controllable mRNA technology platformand R&D capability. In 2024, the Company worked withits partners to advance the iterative upgrade of the novelcoronavirus variant mRNA vaccine and pursue its marketingapplication in China and Indonesia.
Recombinant Protein BUmRNA Vaccine BU
Researcher Dong Shaozhong introduces mRNA platform technology.
Participation in the 23
rd CBioPC
Strengthening Governancefor Sustainable Growth
Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Innovation-Driven HealthEmpowerment
39 40
Walvax Biotechnology adheres to the ethical principles of respect, benecence, and justice for all trial participants. The Companystrictly complies with relevant legal and regulatory requirements and ethical standards, reinforcing management and oversightthrough standardized processes to safeguard the safety, rights, and privacy of trial participants. During the reporting period, theCompany remained fully compliant, with no recorded violations of research ethics.
Adhering to Research Ethics
Walvax Biotechnology places strong emphasis on ethical integrity in clinical trials, with the rights and safety of participants being theCompany's top priority. It strictly complies with applicable laws, ethical principles, and scientic standards, including the Declarationof Helsinki, the International Ethical Guidelines for Health-Related Research Involving Humans, and the Measures for EthicalReview of Life Science and Medical Research Involving Human Beings. The Company has established a comprehensive frameworkcovering the development of clinical trial protocols, informed consent documents, and risk control plans. In addition, a well-structuredtraining system is in place to ensure that all clinical trials are conducted in full compliance with legal and ethical requirements,thereby safeguarding participant rights and safety.
Protecting the Rights of Clinical Trial Participants
We have dedicated departments tasked with real-time safety monitoring and have establishedmanagement systems that align with regulatory requirements. These teams conduct thorough analysesof safety data and promptly report any risk events to regulatory authorities, thereby safeguardingparticipant safety and rights throughout the trial process.
Our clinical trials adhere stringently to relevant laws, regulations, and ethical review procedures. Notrial commences without ethics committee approval. Throughout the trial, we submit any modicationsto critical documents, including the protocol, for ethical review before implementation. We promptlyreport safety events and implement recommended measures. Furthermore, all trials undergocontinuous ethical oversight.Right to Information and Voluntary Participation: We use only ethics committee-approved informed
consent forms. The consent process thoroughly explains the trial's nature, purpose, risks, and benets,allowing ample time for consideration. Participation is entirely voluntary, with participants retaining theright to withdraw unconditionally at any stage.
Right to Privacy: We safeguard participants' privacy in strict compliance with regulatory standards. This
includes ensuring the lawful and compliant collection, use, and storage of personal information. Forfurther details, please refer to the "Information Security and Privacy Protection" section of this report.Right to Life and Health: All clinical trial protocols undergo rigorous scientic validation and proceedonly when benets outweigh risks. We provide insurance coverage for all participants. For early-phase,large-scale, or high-risk trials, we establish an independent Data and Safety Monitoring Board (DSMB)to ensure comprehensive participant protection.Right to Medical Treatment: We collaborate exclusively with compliant trial sites and establishexpedited care agreements with reputable local hospitals before trial initiation. We developcomprehensive emergency response plans and implement robust safety monitoring and evaluationmechanisms to ensure prompt and appropriate management of any safety incidents.
ProtocolDesign
EthicalReview
ParticipantProtection
Safety EventManagement
In designing clinical trial protocols, we prioritize participant safety, rights, and risk assessment fromthe outset to ensure both scientific rigor and ethical integrity. During trials, any necessary protocolamendments undergo thorough evaluation for their necessity, rationality, and potential impact onparticipant safety. We promptly submit all modifications to the ethics committee for review, strictlyadhering to regulatory guidelines.
Walvax Biotechnology strictly adheres to the Institutional Animal Care and Use Committee (IACUC) guidelines. Personnelconducting animal experiments must be certied before performing any procedures. Before acquiring experimental animals, theCompany submits an animal experiment ethics review form to the ethics committee and proceeds with animal experiments onlyafter approval. The Company diligently follows the "3R Principles" (Reduction, Replacement, Refinement) to maximize animalwelfare protection. Moreover, the Company has joined the "3Rs Working Group" of the Developing Countries Vaccine ManufacturersNetwork (DCVMN), collaborating with global vaccine industry experts to explore alternative methods to animal testing in vaccineproduct release testing.
Animal Ethics
Walvax Biotechnology rigorously adheres to the WalvaxBiotechnology Co., Ltd. Biosafety Management Regulationsfor Pathogenic Microorganism Laboratories. The Companyhas established a Biosafety Committee and implementeda designated accountability system for pathogenicmicroorganism laboratories. We have strengthened riskassessment and prevention measures for activities involvingpathogenic microorganisms. Continuous biosafety training isconducted through various formats, including new employeeorientation, annual refresher courses, and specializedtraining by external experts, all followed by comprehensiveassessments. We also conduct regular on-site biosafety drillsto ensure the thorough implementation and enforcementof biosafety management requirements. Furthermore, theCompany has implemented biosafety management protocolsfor suppliers, ensuring regulatory compliance, stringent full-process oversight, and complete traceability. This guaranteesthat clinical trial drugs and biological samples are securelyhandled. In 2024, the Company reported no safety incidents,including any pathogenic microorganism leakage.
Biosafety
Sta? conducts biosafety incident simulation exercises
Shanghai Zerun conducts vaccine-related animal experiments through its dedicated laboratory animal center, adheringstrictly to animal welfare guidelines and ethics committee requirements. Each cage houses no more than ve mice, andall experimental operators must be certified. New personnel undergo comprehensive training before assuming theirduties. The animal center's ethics committee provides vigilant oversight of daily welfare and ethical considerations inShanghai Zerun's animal experiments, promptly issuing corrective recommendations when any issues are identied.
Strengthening Governancefor Sustainable Growth
Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Innovation-Driven HealthEmpowerment
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Walvax Biotechnology strictly complies with the latest provisions of the Patent Law of the People's Republic of China, theTrademark Law of the People's Republic of China, the Copyright Law of the People's Republic of China, and other relevant lawsand regulations. The Company has formulated and implemented comprehensive guidelines, including the Walvax BiotechnologyCo., Ltd. Intellectual Property Management Specications, Walvax Biotechnology Co., Ltd. Patent Management Measures, WalvaxBiotechnology Co., Ltd. Copyright Management Measures, and Walvax Biotechnology Co., Ltd. Guidelines for Legal Risk Controland Review of Intellectual Property in External Publicity Materials. These guidelines encompass the acquisition, management,maintenance, utilization, and protection of intellectual property, providing a robust institutional framework for the Company'sstandardized management of intellectual property a?airs. The Company has established a dedicated Legal A?airs Department atits headquarters to coordinate the Group's intellectual property matters. We have invested in the PatSnap global patent databaseand regularly conduct intellectual property protection training to ensure professional, e?cient, and standardized intellectual propertymanagement. While safeguarding its own intellectual property rights, the Company also fully respects the intellectual property rightsof others, strengthening patent risk control measures to avoid infringing on third-party intellectual property rights.
Intellectual Property Protection
Impact, Risk, and Opportunity ManagementTo effectively address various risks such as rapid technological advancements, market competition, clinical trial challenges,intellectual property concerns, policy and regulatory changes, and nancial uncertainties, Walvax Biotechnology has establisheda Scientic Committee. This committee strengthens the evaluation and approval process for R&D projects. The Company utilizesbusiness units as operational entities to respond more agilely to market demands. Through cross-functional team collaborationin R&D, marketing, procurement, production, and pharmacovigilance, we ensure that risk management activities are integratedthroughout the entire vaccine product development process. Throughout the lifecycle of R&D projects, the Company closelymonitors market trends, technological advancements, and policy developments. We continuously conduct risk identification,assessment, and monitoring, incorporating key business and priority area risks into our comprehensive Risk Database. We promptlyadjust risk management strategies based on changes in internal and external environments, establish risk warning mechanisms,and implement risk reporting systems to ensure that all R&D activities remain within controllable parameters.
The Company has launched a dedicated intellectual property course module on the "KnowledgeCloud - Walvax Academy" online learning platform. Professional intellectual property training coursesare conducted regularly each year, integrating online and offline formats to enhance employees'expertise in intellectual property matters. Furthermore, the Company has developed the comprehensiveWalvax Biotechnology Intellectual Property Handbook for disseminating and training on fundamentalintellectual property knowledge and regulatory standards, thereby improving employees' awareness andunderstanding of intellectual property. In 2024, employee intellectual property training coverage achieved100%.
New invention patents granted in China:
Number of valid invention patentsgranted in China:
Valid utility model patents granted inChina:
New utility model patents granted in China:
Valid granted patents:
Valid international patents granted:
Valid domestic trademark registrations:
Valid trademark registrations:
Valid overseas trademark registrations:
R&D Risk AnalysisMitigation Strategies ●Technical risks ●Clinical trial risks ●Market competition risks ●Internationalizationchallenges ●Policy risks ●Financial and fundingrisks ●Intellectual propertyrisks
●Enhance cross-functional risk assessments, facilitating rapid information flowbetween departments and enabling multi-perspective project reviews to promptlyidentify and address potential R&D risks.
●Closely monitor market trends, technological advancements, and policydevelopments. Adopt diversified technological approaches and continually iteratebased on market demands to swiftly respond to market changes, thereby reducingthe risk of R&D innovation deviation. ●Develop well-dened R&D risk response strategies for various levels of R&D risks,ensuring risk avoidance, mitigation, or transfer. Formulate contingency plans toensure rapid response when risks materialize. ●Conduct thorough patent infringement risk analysis on the technical content of R&Dprojects. Implement a dedicated intellectual property legal risk review node in thecontract approval process to identify and mitigate intellectual property risks.
Indicators and Targets
Indicators and Targets2024 Achievement Status
Enhancing R&D innovation capabilities
R&D personnel totaled 172, accounting for 8.90%of the workforce. Annual R&D investment reachedRMB 700.4222 million, representing 24.82% ofoperating revenue. Listed among the Top 500Private Enterprises in R&D Investment 2024Target achievedRising number of patent applications andauthorizations
18 newly granted patents
Note: The patent data is as of the end of March 2025.
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
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Strengthening Governance
for Sustainable Growth
Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace
Green Development andEnvironmental StewardshipInnovation-Driven HealthEmpowerment
Prioritizing Quality Excellence
Governance
Walvax Biotechnology upholds the quality management principle that "Life is paramount, quality outweighs all; continuousimprovement, conscientious in any detail." We strictly comply with national and international regulations and standards, includingthe Drug Administration Law of the People's Republic of China, Vaccine Administration Law of the People's Republic of China, andGood Manufacturing Practice of Medical Products. Furthermore, we follow industry guidelines and standards issued by renownedinternational organizations such as the International Council for Harmonisation of Technical Requirements for Pharmaceuticals forHuman Use (ICH), World Health Organization (WHO), Pharmaceutical Inspection Co-operation Scheme (PIC/S), European Union(EU), International Society for Pharmaceutical Engineering (ISPE), and International Organization for Standardization (ISO). Toensure compliance and maintain high-quality standards, Walvax Biotechnology has developed a suite of internal managementsystems. These include the Walvax Biotechnology Quality Manual, Walvax Biotechnology Production Quality ManagementGuidelines, and Quality Risk Management Inspection Guidelines (Trial), among other policy documents and procedural guidelines.These systems clearly define quality management requirements across the product lifecycle, ensuring that all operations aremeticulously recorded and traceable, thus maintaining consistent product quality. In 2024, the Company further strengthenedits regulatory compliance by monitoring industry guidance, developing a Chinese Drug Regulatory List, and implementing avaccine regulatory management platform. The Company conducted thorough regulatory gap analyses and initiated Corrective andPreventive Actions (CAPA) to address and e?ectively control all identied discrepancies. Walvax Biotechnology has established aQuality Management Committee directly overseen by the Vice Chairman and created a Quality Management Center, one of its fourcore capability platforms. This center serves as the cornerstone for building a coordinated, exible, and e?cient quality managementsystem that spans all business lines, alongside a comprehensive Total Quality Management (TQM) platform. To reinforce theimportance of quality, related responsibilities are incorporated into annual performance evaluations, ensuring that products are safer,more e?ective, more controllable, more accessible, and more advanced.Strategy and Approach
Quality is central to Walvax Biotechnology's operations, reected in a high-standard quality management system that spans theentire lifecycle of its vaccine products. This comprehensive approach ensures the safety, e?cacy, and quality control of all vaccineproducts. The Company's product quality registration standards fully meet EU standards,with some indicators even exceeding them.Facility design and construction adhere to international pharmaceutical industry regulatory requirements set by ICH, WHO, and theEuropean Medicines Agency (EMA), demonstrating the Company's dedication to safeguarding public health and safety throughexcellent and industry-leading product quality.
Lifecycle Quality Management
Vaccine R&DTechnology TransferCommercial ProductionProduct Termination
Quality Management System Coveringthe Entire Vaccine Product Lifecycle
Change Management SystemManagement ReviewPharmacovigilance Management SystemFailure Management SystemDocument Management SystemProcess Performance and Product Quality Monitoring SystemData Integrity Management SystemCorrective/Preventive Action (CAPA)
Walvax Biotechnology employs a problem-oriented approach to continually enhance and e?ectively operate its R&Dquality system. The Company implements a strategy of "detailed pre-planning and post-audit release" throughoutthe research process. Quality audits and release procedures are executed at each critical stage to maintainresearch quality throughout project development.Monthly quality analysis meetings are held to promptly resolve quality-related issues and ensure that all employeesconsistently prioritize quality in their daily work.Annual training programs covering relevant policies, regulations, quality management, and standard operatingprocedures are organized for R&D personnel. These training sessions achieve 100% participation among researchsta?, ensuring experimental safety, data reliability, and regulatory compliance while equipping researchers to handlecomplex research tasks more e?ectively.
Walvax Biotechnology has implemented a comprehensive quality management system for R&D, adhering to ISO 9001, GMP, ICHQ10 standards, and relevant regulations. This system is documented in key publications, including the Walvax Biotechnology Co.,Ltd. Quality Manual, Walvax Biotechnology Co., Ltd. Standard Operating Procedure for Quality Management of R&D Project, andWalvax Biotechnology Co., Ltd. Standard Operating Procedure for CQA & CPP Research. These documents encompass variousaspects such as knowledge management, project management, quality control and assurance, quality risk management, dataintegrity management, outsourcing management, and clinical management. The Company has also integrated digital managementpractices to ensure the authenticity, compliance, scientic validity, and traceability of all R&D processes.
R&D Quality Management
In 2024, Shanghai Zerun's Quality Department organized 12 comprehensive quality management training sessions covering severalkey areas. The Quality Department focused on the latest version of ICH Q9 Quality Risk Management and guidelines for analyticalmethod validation and verification. Internal auditor qualification standards and deviation change specifications were reinforced.The R&D departments concentrated on pharmaceutical change essentials, technical guidelines for non-clinical research of vaccineadjuvants, and technical guidelines for contamination control strategies and cleaning validation. The clinical team organizedlearning sessions on Good Pharmacovigilance Practice and technical guidelines for vaccine clinical trials. By actively monitoringand incorporating the latest regulatory guidelines, the company ensures that its R&D processes remain closely aligned with currentregulatory requirements. This approach maintains relevance and guarantees high-quality, steady progress in R&D activities.
Case Quality Management Training at Shanghai Zerun
Yuxi Walvax, the Company's primaryproduction base, achievedISO 9001
Quality Management Systemcertication.
Strengthening Governancefor Sustainable Growth
Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Innovation-Driven HealthEmpowerment
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Walvax Biotechnology has established a stringent distribution quality management system based on pharmaceutical and vaccineregulations and Good Supply Practice (GSP). The system has enhanced quality management across all distribution stages,including vaccine warehousing, storage, transportation, and cold chain verification. A comprehensive vaccine traceability andcontrol system has been implemented using advanced digital methods. The Company employs a hybrid model of in-house andoutsourced storage and distribution, enhancing overall distribution capabilities. Regular quality audits of logistics service providersare conducted to maintain high standards in vaccine distribution.
To mitigate potential product safety and quality issues, Walvax Biotechnology has implemented rigorous quality control measuresthroughout all stages of vaccine product testing. These measures ensure effective quality control, thereby strengthening thefoundation of product quality. Quality monitoring continues even during production halts for research purposes, such as stabilitystudies.
Distribution and Storage Management
Quality Testing ManagementWalvax Biotechnology applies the ICH Q10 Pharmaceutical Quality System to its clinical quality management practices. TheCompany has established a dedicated clinical research quality management team and comprehensive clinical trial qualitymanagement systems. These systems cover the entire process from clinical trial design to implementation, results, and reporting.Platform-based management systems for supplier management, issue CAPA management, and personnel training have beenimplemented to ensure full compliance with regulatory requirements and industry standards. During the reporting period, theCompany's Registration and Medical Center conducted 70 training sessions on regulations such as Good Clinical Practice ofMedical Products and Measures for Ethical Review of Life Science and Medical Research Involving Human Being.To maintain the highest standards of quality and compliance, all clinical trials are monitored by third-party entities. This ensuresadherence to GCP and other legal requirements, guarantees data reliability, and protects subjects' rights. Third-party datamanagement units are engaged to systematically verify clinical trial data, ensuring data integrity. When necessary, independentthird-party audits are commissioned to further safeguard project quality. The Clinical Research Quality Assurance and QualityControl departments, operating as independent units, conduct risk-based quality activities throughout each clinical trial to ensureproject quality.
Clinical Trial Quality Management
The Company's facilities, equipment, and testing methods for vaccine products have undergone thorough validation andverication. Walvax Biotechnology maintains a comprehensive document management and record control system that complieswith Chinese GMP, WHO GMP, EU GMP, ICH, and other regulatory and industry standards. Every batch of vaccine products,including raw materials, excipients, intermediate products, packaging materials, and nished products, is subjected to stringentquality management testing throughout the entire process. Real-time trend analysis and data monitoring are conducted toproactively prevent potential safety and quality issues. Products that pass internal testing are then sampled by the Medical ProductsAdministration of Yunnan Province and sent to the national laboratories (National Institutes for Food and Drug Control, NIFDC) forfurther testing. Only after obtaining the Lot Release Certicate can the vaccines be distributed. In 2024, the testing completion ratereached 100%, ensuring all hardware and methodologies meet the highest standards of e?cacy and safety. For each vaccine batch,the Company cross-validates internal test data with those from national laboratories for the same batch. This preventive comparisonenables timely adjustments to the quality testing system when needed, ensuring its continued e?ectiveness.
The national batch release authority meticulously reviews the production and testing records for each batch of nished productsand conducts sample testing. If the results meet the requirements, a Biological Product Batch Release Certicate is issued. Uponreceiving this certicate, the Company's Quality Department performs a comprehensive quality assessment of each batch. Finalrelease for market distribution is authorized only after approval by the Qualied Person (QP). For outsourced testing management,Walvax Biotechnology has established standard operating procedures and signs contracts with third-party testing institutions. On-site audits are conducted to assess their quality management systems, personnel, equipment/instruments, laboratory facilities, dataintegrity, and computerized systems. This ensures that outsourced testing activities comply with Chinese GMP, WHO GMP, EUGMP, and other regulatory requirements.
For innovative products, new processes, and new equipment, or in response to emerging quality and safety issues, the Companyconducts thorough reviews and risk assessments from multiple perspectives. These include GMP compliance, change management,maintenance/calibration, and deviation handling. Identied potential quality risks undergo pre-validation and preventive testing, withcorresponding quality control plans developed. This comprehensive approach ensures stable operation of process equipment beforeproduction launch and e?ective control of critical quality attributes (CQAs).
Internal Testing
External Testing
Preventive Testing
Walvax Biotechnology annually develops a comprehensive validation plan that encompasses GMP facilities,production equipment, testing instruments, manufacturing processes, cleaning methods, testing procedures, andcomputer systems. This plan includes preventive testing and validation of Critical Process Parameters (CPPs) andCritical Quality Attributes (CQAs) to proactively identify potential quality risks, thereby ensuring vaccine safety, e?cacy,and quality stability. In 2024, Yuxi Walvax formulated the 2024 Re-validation Plan, which guided the Risk ValidationManagement Department in coordinating validation activities across various departments. Concurrently, Yuxi Zerunimplemented re-validation of major production equipment and inspection instruments in accordance with theirValidation Master Plan.The Company has established the Equipment Preventive Maintenance Management Procedure to standardizemaintenance practices. Tailored preventive maintenance plans for each piece of equipment are developed andexecuted based on its purpose, characteristics, historical performance, risk analysis, and supplier recommendations tomitigate quality risks. In 2024, the Company achieved a 100% completion rate for equipment preventive maintenance.
Preventive Testing for Internal Quality Risks
As part of the Digital Walvax strategy, the Company is advancing the informatization, digitalizationand intelligentization of manufacturing processes. This enables intelligent workshop control,transparent production processes, digitally controlled manufacturing equipment, and integratedproduction information systems. These improvements ensure controlled production operations,maintain stable vaccine production processes, and enable rapid identification of areas forimprovement and optimization of quality control strategies.
Walvax Biotechnology places a strong emphasis on critical process parameter evaluation andhas established rigorous internal quality standards. The Company is equipped with state-of-the-art internal testing instruments and employs a professional in-house testing team. Real-timemonitoring of production processes has been enhanced, shifting from reactive to proactive qualitymanagement, ensuring consistent compliance with quality requirements for nal products.
IntelligentManufacturingfor QualityEnhancement
ProcessManagementand Quality
Control
Walvax Biotechnology has implemented comprehensive procedures to ensure robust quality control throughout the productionprocess. These procedures encompass facility and equipment management, material and product release, quality assurance, qualitycontrol, validation and verication, and packaging and labeling. Key documents include Facility and Infrastructure ManagementControl Procedures, Equipment Management Control Procedures, Material Management Control Procedures, ProductionManagement Control Procedures, and New Product and Process Industrialization Implementation Control Procedures.
Production Quality Management
Strengthening Governancefor Sustainable Growth
Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
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Walvax Biotechnology headquarters and its subsidiaries have established dedicated pharmacovigilance departments. Thesedepartments operate under the guidance of domestic and international pharmacovigilance-related laws, regulations, industry norms,and business guidelines, including the Good Pharmacovigilance Practice, Measures for the Reporting and Monitoring of AdverseDrug Reactions, and ICH guidelines. The Company has formulated internal pharmacovigilance policies and established a globalpharmacovigilance system aligned with international standards. It continuously improves its pharmacovigilance managementframework and monitoring processes, actively conducts both internal and external audits, and ensures ongoing safety surveillance ofmarketed products. In addition, we support developing countries in establishing vaccine safety monitoring systems. This includes theglobal collection, monitoring, identication, and evaluation of adverse events following immunization (AEFIs). These comprehensivee?orts aim to make vaccines safer, more e?ective, better controlled, more accessible, and more advanced.
Pharmacovigilance
The Company implemented the Risk Signal Detection and Processing ManagementProcedure. This procedure involves comprehensive safety monitoring through individualcase report reviews, regulatory vaccine safety information, periodic safety reports,cluster signal screening, and case report summary analyses. Potential safety risksare systematically identified, tracked, and analyzed. Regular reviews of safety dataand updates to product risk management plans effectively safeguard consumer healthinterests.Annual training plans were developed, covering pharmacovigilance regulations,documentation, and skills. Basic pharmacovigilance knowledge was incorporated intomandatory new employee training at headquarters, utilizing the Company's onlinelearning platform, Walvax Academy. Training effectiveness assessments ensure qualityand efficacy. The pharmacovigilance department achieved a 100% completion rate forits annual training plan, with all participants meeting qualication standards. Additionally,department personnel actively participated in professional training sessions, publiccourses, and programs organized by government agencies and industry associations,achieving a 100% participation rate.
During the reporting period, the pharmacovigilance department further refined itssystem documentation, covering policy documents, personnel and resources, qualitymanagement, monitoring and reporting, risk management, and outsourcing management.These efforts continued to improve the operational efficiency of the pharmacovigilancesystem and ensured compliance across the entire vaccine lifecycle.Enhancement ofPharmacovigilanceManagementSystemStrengthening ofPharmacovigilanceRisk Control
ContinuousImprovement ofTraining Quality
A comprehensive process for managing vaccine safety emergencies was developed,including the formation of an emergency response team and corresponding contingencyplans. Routine surveillance is maintained, and in the event of a vaccine safety emergency,detailed investigations and active responses are initiated to minimize impact. Post-incidentevaluations are promptly organized company-wide to assess the emergency response,prevent similar occurrences, and optimize handling procedures, thereby safeguarding thehealth and safety of vaccine recipients.
The Company adheres to the principle of "vigilance by all, at all times, comprehensivemonitoring, timely assessment, compliant reporting, and reporting upon suspicion."Processes such as the Collection and Handling Procedure for Suspected Adverse EventsFollowing Immunization and the Management Procedure for Collection and Reporting ofSuspected Adverse Events Following Immunization were established. A standardized andefficient channel for adverse event information collection was implemented, supportedby a pharmacovigilance system and MedDRA dictionary for analysis, evaluation, andmonitoring. This approach enables proactive, comprehensive, and e?ective managementof suspected adverse drug reactions during vaccine use. For overseas suspectedadverse events, timely verication, recording, evaluation, and reporting are conducted inaccordance with the Management Procedure for Handling and Reporting of SuspectedAdverse Events Following Immunization Occurring Overseas. Targeted measures aretaken for di?erent levels of suspected adverse events, addressing stakeholder concernswhile ensuring regulatory compliance.
AdverseReaction/EventManagement
Handling
of SafetyEmergencies
In September 2024, the Pharmacovigilance Management Department within Walvax Biotechnology's Quality ManagementCenter established a Clinical Medical Expert Panel. This initiative was undertaken to implement the Measures for Identication ofAdverse Events Following Immunization and to provide enhanced professional medical guidance for diagnostic identification inpharmacovigilance and clinical trial operations. The primary goal is to improve the medical diagnostic identication of suspectedadverse events following immunization. The Clinical Medical Expert Panel comprises leading authorities from various clinicaldisciplines. Through their multi-dimensional, in-depth analysis of vaccine product risks, the panel significantly enhances theefficiency and quality of medical diagnostic identification processes. This approach ensures swift responses to vaccine productsafety issues while refining pharmacovigilance decision-making procedures, resulting in more scientifically rigorous risk controldecisions.
Case Establishment of Walvax Biotechnology's Clinical Medical Expert PanelTo mitigate regulatory compliance risks, the Company's Quality Management Center mandates all relevant subsidiariesto conduct thorough gap analyses against the latest regulations and implement targeted improvement measures.In 2024, the Company focused on eight key areas: sterile filtration, sterilization processes, supplier management,production process validation, data integrity, management review, self-inspection, and sampling management.Accordingly, the Company developed several guidelines, including the Sterile Filtration Inspection Guidelines (Trial)),Supplier Management Inspection Guidelines (Trial), Production Process Validation Inspection Guidelines (Trial), DataIntegrity Inspection Guidelines (Trial), and Self-Inspection Guidelines (Trial). These guidelines align with the latestdomestic and international requirements, enhancing Walvax Biotechnology's Pharmaceutical Regulatory Map andbolstering its defenses against regulatory compliance risks.The Company maintains vigilant monitoring of emerging external quality and safety issues. Upon identification ofany concerns, immediate product quality and safety assurance measures are implemented. These include thoroughassessment and investigation, risk evaluation, and implementation of appropriate corrective and preventive actions(CAPA), such as process improvements, to e?ectively mitigate potential quality risks.
Preventive Testing for External Quality Risks
Walvax Biotechnology has implemented a comprehensive vaccine information traceability system. This system enables full-range,end-to-end product information traceability, reinforcing the interconnection and sharing of traceability data. Consequently, it promotesintegrated management of vaccine quality and safety, continuously elevating the standards of vaccine quality and safety assurance.Product Traceability
Yuxi Walvax has established Operating Procedures for the Use of the Code Assurance System, implementingthe Ali Health Code Assurance System for electronic vaccine traceability. This system integrates with the nationalcollaborative platform, achieving traceability down to the smallest packaging unit of vaccines throughout theproduction and distribution processes. It also facilitates comprehensive ow information queries at every stage.Yuxi Zerun has developed an advanced drug traceability code system. Leveraging the nationwide NationalMedical Products Administration network platform, this system enables product status inquiries, traceability,and management. Every shipment, return, and related operation is recorded through scanning and uploading oftraceability codes. This allows for real-time monitoring of production, operation, inventory, and distribution status foreach box, case, and batch of key pharmaceutical products.
Comprehensive Electronic Traceability of Vaccines
Strengthening Governancefor Sustainable Growth
Community Co-development,
Shared Health Benets
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
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Walvax Biotechnology has implemented a comprehensivevaccine product recall system and mechanism in compliancewith the Good Manufacturing Practice of Medical Productsand Provisions for Administration of Medical Device Recall.This system covers both marketed products and drugsused in clinical trials. The Company has developed internalmanagement policies and standards, including the ProductShipment and Recall Management Control Procedure and theProduct Recall (Simulated Recall) Management Procedure.The Company conducts regular simulated product recalls toensure that any batch of products with quality issues or safetyconcerns can be promptly and effectively withdrawn from themarket when necessary, thus safeguarding public health. Bothof the Company's primary vaccine production facilities, YuxiWalvax and Yuxi Zerun, have implemented electronic vaccinetraceability systems. These systems enable real-time monitoringof the distribution status for each box, case, and batch ofvaccines, facilitating rapid tracing and recall if any issues areidentied. In October 2024, Yuxi Zerun conducted a simulateddomestic product recall exercise (Level II recall), achieving a100% completion rate and timeliness rate. During the reportingperiod, no incidents necessitated the recall of sold or shippedproducts due to safety or quality concerns.
Product Recall
Product Recall Decision
Recall Closure
Level I Recall / Level II Recall / Level III Recall
Develop Recall Plan
Implement RecallReceipt and Handling of Recalled Products
If Destructionis Required:
Destroy underSupervision ofDrug RegulatoryDepartment orNotary Institution
Recall Summary Report
Submit to DrugRegulatory Department for Review
and Evaluation
If NotApproved
Walvax Biotechnology embraces a quality culture founded on the principle of "All-Employee Participation, Each with Their OwnResponsibilities." In compliance with pharmaceutical laws and regulations, the Company has established comprehensive trainingmanuals and management procedures. A diverse and systematic quality training curriculum has been implemented to provide allemployees with robust quality control and product safety training. The training encompasses a wide range of topics, including drugregistration, clinical trial protocol design, quality management, data management, ethics review, and protection of trial participants'rights. This ensures that all employees are well-versed in the Company's quality management system operational requirements,thereby enhancing quality risk awareness and management capabilities across the entire organization.
Quality Culture
Total quality training hours in 2024:
31,562.6
hours
with100%
coverage of allemployees in quality-related training
The completion and qualication ratefor quality-related training in 2024:
100%
Annual quality training plans are meticulously developed and rigorously implemented forall employees, ensuring comprehensive coverage at company, department, and position-specific levels. Employees undergo training and subsequent assessments to guaranteethe e?ectiveness and empowerment of the training programs. Year-end reviews of trainingactivities are conducted to evaluate the operational efficiency of the training system,facilitating continual improvement and optimization of the Company's training management.
The Company is advancing the digitalization of quality training management by offeringproduct quality-related courses on the "Walvax Academy" online learning platform andimplementing the Bopu Cloud training management system. These initiatives enhancepersonalized learning experiences and enable real-time monitoring and feedback on traininge?ectiveness.
InternalQualityTraining
Quality awareness is seamlessly integrated into daily operations through various channels,including quality meetings, targeted activities, internal communication platforms, andinformative quality promotion display boards.QualityCulturePromotion
ExternalQualityTraining
Employees are strategically assigned to participate in legal and regulatory interpretationsessions and professional skills training based on the relevance to their roles. Theseare organized by industry-leading institutions such as the National Medical ProductsAdministration Institute of Executive Development, National Institutes for Food and DrugControl, China Medicine Education Association, and China Health Media Group. Post-training,participants are responsible for conducting company-wide knowledge transfer sessions anddissemination activities.The Company regularly invites experts in drug quality management, quality control, equipmentand facilities, biosafety, and professors from domestic universities to conduct on-site training,fostering continuous learning and acquisition of cutting-edge knowledge among employees.
Impact, Risk, and Opportunity Management
Quality risk assessment and control form the cornerstone of effective quality management. Walvax Biotechnology adheres tointernationally recognized standards such as the ICH Q9 Quality Risk Management and the TRS 981 - Annex 2: WHO Guidelineson Quality Risk Management (2013). These external benchmarks are complemented by internal management policies, includingRisk Management Control Procedures, Quality Risk Management Specifications, and Quality Risk Management InspectionGuidelines (Trial). This comprehensive framework is applied throughout the product lifecycle, from R&D through technology transfer,commercial production, and distribution, to product phase-out, ensuring proactive identication and management of potential qualityissues. The Company employs a multi-faceted approach to risk management, utilizing various control methods such as deviationmanagement, change control, quality audits, adverse reaction monitoring, product quality review analysis, corrective and preventiveaction management, and personnel training. To enhance risk identication and control, the Company also leverages recognizedrisk management tools, including Failure Mode and E?ects Analysis (FMEA), Fault Tree Analysis (FTA), and Hazard Analysis andCritical Control Points (HACCP). To maintain vigilance and drive continuous improvement, the Company conducts risk audits at leastannually.
Quality Risk Management System
Yuxi Walvax has diligently implemented the 2024 quality risk management plan, completing departmental riskassessments and establishing corresponding control measures. To ensure timely updates of newly identied risks, thecompany developed a comprehensive Risk Registration Ledger. In 2024, this register documented 142 risk assessmentreports spanning nine critical categories, including production process contamination control, data management, qualityrisk management, and regulatory gap analysis. Notably, all risk assessment results were deemed manageable.Yuxi Zerun has fortied its risk management framework by establishing the Standard Operating Procedures for QualityRisk Management and Quality Risk Management Tools Summary and Application Guide. To facilitate systematic risktracking and review, the company implemented a Risk Assessment Ledger and Risk Registration Form. In 2024, thisproactive approach led to the identication of 12 new risk points, for which tailored control measures were promptlydeveloped. These measures addressed key areas such as data integrity rectication, self-prepared solution expirationverication, shared production line risk assessment, environmental monitoring review, and sterilizer validation.
Strengthening Governancefor Sustainable Growth
Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
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To maintain the integrity of its quality system, the Company conducts regular internal and external audits across all business lines.The Quality Department spearheads internal audits, while external audits encompass a range of assessments. These include GMPcompliance inspections by the National Medical Products Administration, local regulatory authorities, and WHO-PQ. Additionally,the Company undergoes audits from business partners during domestic and international collaborations. Throughout the reportingperiod, no critical deciencies were identied, and all corrective actions were implemented according to schedule.
Quality Audits
The Company has established comprehensive internal audit criteria and evaluation standards. A quality audit is conducted at leastonce annually across all business lines, ensuring 100% coverage of operations and further enhancing the quality managementsystem. In 2024, these audits encompassed various aspects, including organizational structure and personnel, facility and equipmentmanagement, materials and products, qualification and validation processes, document management, production oversight,quality control and assurance, outsourced production and testing, data integrity management, drug storage and distribution, andpharmacovigilance.When audits reveal issues or deficiencies, the Quality Management Center requires each business unit to identify associatedproduct or system risks, develop risk inventories, and implement control measures. Corrections and preventive actions (CAPA)are executed following the Plan-Do-Check-Act (PDCA) model, with all improvement measures tracked through the CAPA system.Furthermore, the Company conducts GMP compliance audits on its subsidiaries, providing feedback through internal inspectionnding notications. For a detailed overview of supply chain quality audits, please refer to the "Sustainable Supply Chain" section ofthis report.
The Company actively participates in external third-party quality audits, including those conducted by domestic and internationalregulatory bodies and business partners, to continuously enhance the integrity and e?ectiveness of its quality management system.In 2024, Yuxi Walvax and Yuxi Zerun underwent a total of 19 audits from regulatory agencies and independent third parties. Theseaudits included inspections by the National Medical Products Administration, National Center for Vaccine Inspection, YunnanProvincial Center for Vaccine Inspection, Medical Products Administration of Yunnan Province, as well as quality managementsystem certication audits and independent third-party GMP compliance inspections. In response to deciencies identied duringthese audits, particularly those related to deviation and change management, the Company compiled detailed reports, includingWalvax Biotechnology's Compilation of Deviation Management Findings from External Inspections and Walvax Biotechnology'sCompilation of Change Management Findings from External Inspections. These documents facilitated targeted improvements in thequality management system, with a specic focus on deviation and change management processes. All corrective measures wereintegrated into the CAPA system with dedicated personnel from the Quality Supervision Department meticulously tracking eachaction item to ensure full implementation. Notably, throughout the year, the Company incurred no regulatory penalties during itsvaccine production and operation management processes.
Internal Quality Audits
External Quality Audits
Yuxi Walvax has implemented a Self-Inspection Management Control Procedure and formed a dedicated GMP self-inspection team led by the quality manager. The team develops and executes an annual self-inspection plan. In 2024,Yuxi Walvax conducted one comprehensive self-inspection and ve specialized self-inspections. All identied deciencieswere addressed through the CAPA system, achieving a 100% completion rate for corrective actions.Risk Communication
Initiation of Quality Risk Management Procedure
Quality Risk Process Outcomes / Outputs
PublicUtilities
ProductionProcesses
VaccineDistribution
……
Risk SourcesToolsTools
Events Review
Risk Assessment
Risk Control
Risk Review
Control MeasuresRisk ReductionRisk Acceptance
Root CausesResidual RiskStandards
Risk EvaluationAssessmentForms
RiskIdenticationRisk Analysis
Unacceptable OutcomesImprovement
Strengthening Governancefor Sustainable Growth
Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Innovation-Driven HealthEmpowerment
53 54
Walvax Biotechnology conducts regular reviews of its quality management system, encompassing critical components such as rawmaterial supply, equipment and facilities, internal and external audits, deviations, and changes, with the aim of continually enhancingthe system's e?ectiveness.
Emergency Response and Mitigation Systems
The Company has implemented comprehensive guidelines,including the Deviation Management Standards (Trial) andOperating Procedures for Change Control. These protocolsensure a comprehensive approach to deviation management,including thorough investigation, assessment, analysis,correction, and prevention, with periodic implementationreviews. This approach is designed to mitigate risksassociated with reduced vaccine e?cacy or potential adversereactions stemming from deviations. During the reportingperiod, all deviations were managed according to establishedprocedures, including reporting, recording, investigating,evaluating, and addressing. Effective corrective andpreventive measures were implemented, with no instancesof unexplained or recurring deviations. Furthermore, theCompany conducts regular deviation reviews and analysesto drive continuous improvement and risk control, therebyenhancing both production activities and the overall qualitymanagement system.
Deviation Management
Walvax Biotechnology has established the Product QualityReview Management Procedure and Corrective andPreventive Action Operating Procedure to ensure the stabilityand reliability of product manufacturing processes andworkflows. These procedures also verify the applicability ofcurrent quality standards for raw materials, auxiliary materials,and finished products. This enables prompt detection ofadverse trends and provides valuable guidance for productand process control improvements. The Quality ManagementCenter conducts biannual audits of change review analysisreports submitted by various production units to ensureongoing compliance and improvement.
Correction and Prevention
Through years of strategic development, Walvax Biotechnology has established a comprehensive business continuity managementsystem that spans R&D, procurement, manufacturing, logistics, and storage. This system extends from suppliers through theCompany to end customers. It incorporates measures for emergency management of unexpected events, hazard identication andremediation tracking, and regular inspections. These e?orts enhance the Company's business continuity management capabilitiesand its ability to respond e?ectively to emergencies, ensuring business continuity and workplace safety. Detailed information on theCompany's resilient supply chain can be found in the "Sustainable Supply Chain" section of this report.
Business Continuity Management
Indicators and Targets
Entity InspectedInspection TypeInspecting Agency
Number ofInspections
Inspection OutcomeYuxi Walvax
China GMP Compliance Inspections
National/Provincial MedicalProducts Administration
11PassedInternational GMP ComplianceInspections/Audits
Overseas Medical ProductsAdministration
4PassedYuxi Zerun
China GMP Compliance Inspections
National/Provincial MedicalProducts Administration
2PassedInternational GMP Compliance
Inspections/Audits
Overseas Medical ProductsAdministration
1PassedPQ inspectionsWHO1Passed
Indicators and Targets2024 Achievement StatusPreventive maintenance plan completion rate: 100%
Target achievedInspection plan completion rate: ≥98%Revalidation plan completion rate: 100%At least one comprehensive self-inspection conducted annuallyDeviation handling rate: 100%Monitoring plan completion rate: 100%First-pass CAPA completion rate: ≥80%Product release pass rate: 100%
Strengthening Governancefor Sustainable Growth
Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Innovation-Driven HealthEmpowerment
55 5655 56
Professional Customer ServiceService Assurance
Building long-term, trusting relationships with customers is a cornerstone of Walvax Biotechnology' sustainable growth. TheCompany adheres to the principles of "sincere cooperation, mutual trust, reciprocal benefits, and shared development" in itscustomer service approach. With a customer-centric focus, we have developed a synergistic system where market insights andR&D e?orts reinforce each other. The Company has implemented a standardized, clear, and e?cient customer service managementsystem. Performance indicators related to customer service are integrated into employee evaluations to drive continuousimprovement in user experience.The Company conducts annual customer satisfaction surveys to gather comprehensive feedback and suggestions, continuouslyimproving service quality based on customer needs. In 2024, questionnaires were distributed to 211 customers, including diseasecontrol and prevention centers, hospitals, and health service centers. The survey covered aspects such as product quality,packaging, delivery time, and service quality. With a 100% response rate, the results showed 100% satisfaction in product quality,packaging, and delivery time (with no dissatisfaction reported), and an overall service quality satisfaction rate of 99.72%.
On-time delivery rate for vaccine orders:
100%Customer complaint response rate:
100%
Accurate delivery rate for vaccine orders:
100%
Customer complaint resolution rate:
100%
Economic contract fulllment rate:
100%Overall satisfaction with service quality:
99.72%
Walvax Biotechnology is dedicated to providing meticulouscare to every vaccine recipient and fostering collaborativerelationships with all partners. The Company has establisheda "3R" market service team structure, comprising SolutionResponsibility (SR), Account Responsibility (AR), and FulfillResponsibility (FR). Additionally, we have implemented 24/7multi-channel communication platforms and a comprehensivecustomer support system that spans pre-, during, and after-sales processes. This enables the Company to deliver tailoredsolutions and responsive support services to its customers.
E?cient Service Response
Walvax Biotechnology places high value on customerfeedback and has developed an efficient operational andfeedback mechanism. The Company rigorously investigates,handles, tracks, and supervises customer complaints. Itconducts thorough analyses of customer feedback andproactively implements improvements to enhance customersatisfaction continually. For local partners, international salesagreements include comprehensive after-sales clausescovering product quality, quantity, expiration dates, andshipping details. Regarding complaints from overseas end-users (both individuals and governments), all internationalsales agreements incorporate specific clauses on productquality complaint management. These clauses requiredistributors to promptly report all complaint details to theCompany upon receipt, enabling the Company to addressissues e?ectively and implement appropriate measures.
Customer Complaint Handling
Responsible MarketingWalvax Biotechnology is committed to implementing a scientific and rigorous responsible marketing philosophy. The Companycomplies with local laws and regulations, including the Law of the People's Republic of China on Protection of Consumer Rightsand Interests, Law of the People's Republic of China for Countering Unfair Competition, Advertising Law of the People's Republicof China, Vaccine Administration Law of the People's Republic of China, and General Data Protection Regulation. Furthermore,the Company aligns its practices with international guidelines such as the WHO's Ethical Criteria for Medicinal Drug Promotion.To ensure responsible marketing, we have established comprehensive company policies, including the "Promotion Prohibition,"Responsible Marketing Policy, and Fair Pricing Policy. The Company regularly updates its guidelines covering all marketingactivities, encompassing the management of Marketing Department meetings and events, regional market initiatives, andpromotional material standards. These policies govern the marketing conduct of all employees, including full-time, part-time, andtemporary sta?. We are dedicated to conducting all sales and marketing activities in an ethical, scientic, and objective manner,pledging to avoid commercial bribery, unfair competition, or any other illegal practices in its sales e?orts.
Walvax Biotechnology ensures accurate product information disclosure in accordance with applicable laws, regulations, industrystandards, and guidelines in each operating location. The Company adheres to internal guidelines, such as the Guidelines andStandards for Promotional Materials. In its marketing and promotional endeavors, the Company strictly observes anti-unfaircompetition and antitrust requirements. All referenced, quoted, or reprinted content must originate from published academicliterature and third-party reports, and is regularly updated to reect new scientic evidence and approved documentation. Whenpromoting vaccines and providing usage recommendations, the Company rmly prohibits exploiting users' fears for forced sales.False or misleading statements about product marketing are strictly forbidden, as is exaggerated or false information. All promotionalmaterials adhere to the principles of accuracy, clarity, and transparency, ensuring that stakeholders receive timely, truthful, rigorous,and compliant product and academic information.The Company's vaccine packaging is designed to clearly communicate product information to diverse populations across di?erentcountries. We rigorously follow government vaccination regulations in various nations and collaborate with medical professionalsand health departments to develop evidence-based vaccination recommendations. We respect each individual's right to makeinformed decisions about vaccination. During the reporting period, the Company did not recieve any complaints or legal proceedingsregarding misleading or deceptive promotional information.
Rigorous and Accurate Marketing
Customer Complaint Investigation and Handling Procedure
Provide multiple feedback channels including phone, website, and corporate email for customersDocument specic customer suggestions or complaints using the STAR model (Situation, Task,Action, Result)
Conduct thorough reviews and coordinate with relevant departments to investigate complaints,identifying preventive or corrective actions for similar incidentsRespond immediately to customer complaints and collaborate to develop emergency handlingmeasures
Promptly communicate investigation ndings and resolution outcomes to customers
Assessment
Feedback
Recording
Review
Reception
Strengthening Governancefor Sustainable Growth
Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Innovation-Driven HealthEmpowerment
57 58
Walvax Biotechnology is committed to continually enhancing its responsible marketing compliance management system andimplementing systematic audit and control procedures. All marketing activities undergo rigorous internal review to ensure accuracyand adherence to regulations. The Company has established a dedicated process for updating and ling promotional information.Every marketing initiative, including material content, methods, and channels, must pass through a stringent review and supervisionprocess. Multiple departments, with the Legal Department playing a key role, conduct thorough reviews before any materials canbe approved for use, thereby ensuring content accuracy and compliance. External promotional materials require each departmentto complete a Review Opinion Collection Form prior to distribution. The Company strictly adheres to its Medical MarketingDepartment's guidelines for meetings and event management, reinforcing the scrutiny of academic conferences. Clear protocolsare in place for employee interactions with external parties, ensuring that responsible marketing promotional activities align withlegal requirements and ethical standards. Process audits and supervision have been intensied, exemplied by the involvementof manager-level and above personnel in client communications. Written responses, such as emails and messages, are reviewedby responsible leaders and simultaneously copied to management for awareness and tracking of communication content, thusmitigating marketing vulnerabilities. Sales personnel performance evaluations now incorporate process assessments to guaranteeprofessional, compliant, and legal sales practices. During the reporting period, the Company received no sales-related complaints.
Walvax Biotechnology implements a comprehensive annual responsible marketing training plan. Each year, all employees participatein at least one responsible marketing training session. These sessions cover pertinent laws and regulations, company policies,product knowledge, promotional standards, and compliant market promotion strategies. This approach ensures that every employeeis well-versed in and strictly adheres to the Company's marketing, advertising, and sales protocols. For sta? in marketing-relatedpositions, the Company conducts specialized responsible marketing training sessions on a regular basis. To reinforce learning,post-training assessments and periodic spot checks are implemented, ensuring employees have a thorough grasp of the materialpresented. The curriculum is continuously updated to reect evolving market dynamics. In 2024, both the Domestic Marketing BUand International Marketing BU proactively conducted responsible marketing training and policy dissemination sessions. Theseincluded in-depth interpretations of market regulation and compliance policies, comprehensive vaccine product information andintroduction training, bivalent HPV international market development training, and anti-commercial bribery and risk preventiontraining for listed companies. These concerted e?orts aim to guarantee compliance and legality throughout market development andsales processes.
Walvax Biotechnology places a strong emphasis on responsible marketing audits, conducting at least one comprehensive auditannually. The audit scope encompasses all sales operations and includes examining sales personnel's adherence to the Company'sresponsible marketing policies and systems, the compliance of sales processes and contract signing, marketing behaviors andexpenses, and the consistency of product packaging with official approvals. For any issues identified, corrective measures aredeveloped and implemented to ensure marketing promotional activities consistently meet business ethics requirements. In casesof violations, the Company disciplines o?ending personnel based on the nature and severity of the infraction. Furthermore, theCompany extends its responsible marketing audits to cooperating third-party service providers and distributors. These audits assessfactors such as business reputation, any history of unfair competition incidents, and adherence to our responsible marketing policies.This comprehensive approach ensures responsible marketing practices are maintained throughout the entire business chain.
Compliance ManagementResponsible Marketing Training
Responsible Marketing Audit
Responsible marketing training coverage formarketing personnel:
100%
Training sessions conducted by Guangzhou Walvax(Domestic Marketing BU) for promotion teams:
200+
sessions
Annual responsible marketing training sessions conducted byDomestic Marketing BU and International Marketing BU:
sessions, encompassing detailed project implementationguidelines, responsible marketing requirements, and managementprotocols for external marketing agencies.with total attendance nearly6,000
Strengthening Governancefor Sustainable Growth
Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Innovation-Driven HealthEmpowerment
59 60
Sustainable Supply Chain
Supply Chain Management System
Walvax Biotechnology has implemented a comprehensive supply chain management system in compliance with relevant nationallaws and regulations, including the Law of the People's Republic of China on Invitation and Submission of Bids. The Companyhas developed a suite of internal policies and implementation guidelines, such as the Procurement Management System, SupplierManagement Implementation Rules, and Independent Bidding and Procurement Management Implementation Rules. In addition,the Company has issued the Supplier Code of Conduct, which applies to all suppliers within its global operations. The Companyis dedicated to fostering fair, transparent, and mutually beneficial relationships with its suppliers. The supplier managementimplementation rules govern the entire lifecycle of supplier relationships, from selection and admission to evaluation, maintenance,and exit. By treating SME partners equally, the Company establishes a robust, long-term communication framework with suppliersthrough these guidelines. While placing product and service quality at the core, the Company also closely monitors supplierperformance in areas such as compliance and ethics, environmental protection, labor rights, and occupational health and safety.Through the development of a high-standard supply chain management system, the Company seeks to safeguard the long-term,sustainable growth of both its own business and its supply chain partners.
Total number of suppliers:
with
located in China (including HongKong, Macao, and Taiwan)
located overseas suppliers
Number of suppliers with occupational health andsafety management system certication:
Number of suppliers receiving ESG-relatedtraining annually:
Number of suppliers with quality management systemcertication:
Number of suppliers with environmental managementsystem certication:
On-time payment rate for small and medium-sizedenterprises:
100%
Supplier Lifecycle Management
The Company maintains a transparent and open procurement policy, primarily employingindependent bidding and procurement methods, complemented by various other procurementstrategies. This approach ensures fairness, impartiality, and transparency throughout theprocurement process, thereby protecting suppliers' rights and interests.A cross-functional evaluation team consisting of representatives from multiple departments,assesses potential suppliers. While product quality and service remain fundamental criteria, theteam also considers suppliers' performance in areas such as human rights compliance, ethicalconduct, and environmental management.
If a supplier engages in non-compliant behavior, fails to meet supply requirements, or is unableto rectify identied deciencies in accordance with audit standards, the Company may disqualifythe supplier.
Supplier Classication: Suppliers are categorized into three tiers: qualied suppliers, backup
suppliers, and strategic partners. The Company implements comprehensive managementapproaches tailored to each category, including qualification reviews, on-site audits, remoteaudits, third-party audits, and annual assessments. Annual evaluations are conducted,with classifications subject to dynamic adjustment based on factors such as the supplier'sgeographical location, procurement volume, market competition, material characteristics, qualitystandards, and ESG risk prole.Regular Supplier Evaluation: Each year, the Company establishes rigorous audit plans for alladmitted suppliers. These audits scrutinize suppliers' qualications, product and service quality,safety management capabilities, environmental management practices, and business ethics.The evaluation process employs various methods, including document reviews, questionnaires,sample quality assessments, and on-site or remote audits. In situations where on-site audits areimpracticable due to force majeure, the Company utilizes remote or third-party audits to maintaincomprehensive oversight and mitigate supply chain risks, thus ensuring a stable and reliablesupply chain. Identied issues are promptly communicated to suppliers following the audit, witha requirement to develop and implement corrective action plans within specied timeframes.
Selection
andAdmission
Evaluation andManagement
Exit
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Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Innovation-Driven HealthEmpowerment
61 62
Sustainable ProcurementWalvax Biotechnology has established a Procurement Committee in accordance with its Procurement Management System tooversee and make decisions on signicant supplier-related matters. The Company has also developed a comprehensive SupplierCode of Conduct, which addresses key areas such as compliance and business ethics, quality management, labor rights,occupational health and safety, and environmental protection. On an annual basis, the Company conducts a thorough assessmentof potential risks in its supply chain, including sustainability-related concerns. It continuously renes its management practices, witha particular focus on quality risks, while rigorously controlling ESG risks throughout the procurement process and supplier lifecycle.The implementation of sustainable supply chain initiatives is overseen by the Board's Sustainability Committee and is collaborativelyexecuted by relevant departments, including procurement management and quality control, across various operational sites toensure strict adherence.Walvax Biotechnology is committed to upholding the TenPrinciples of the UN Global Compact and adhering to responsiblesupply chain management requirements. Guided by its SupplierCode of Conduct, the Company works closely with suppliersto build a reliable, quality-assured, and sustainable supplychain. To enhance supplier capabilities, the Company activelypromotes supplier development initiatives. In light of thedistinctive characteristics of its various technology platforms,Walvax Biotechnology regularly invites suppliers to participatein technical exchange sessions. These sessions allow suppliersto gain a thorough understanding of the Company's R&D andproduction technologies, quality standards, and health, safety, andenvironmental requirements. Meanwhile, the Company listens tosupplier feedback and o?ers tailored guidance, working togetherto leverage mutual strengths in addressing key challenges inproduction, storage, and logistics. Through multi-dimensionaldialogues, the Company facilitates timely information exchangeon production needs, product quality, and policy interpretations,fostering mutual growth through open collaboration.
Risk TypeCorresponding MeasuresManagement Risk
Standardize procurement procedures and minimize dispersed purchases within the sameproduct category to mitigate mismanagement risks associated with an excessive number ofsuppliers.
Cost Risk
Determine and control procurement costs through strategic negotiations and competitive biddingprocesses. Avoid single-source procurement and high-cost situations to enhance companye?ciency and cost-e?ectiveness.
Quality Risk
Align practices with GMP system requirements and other relevant industry standards to establishquality agreements and maintain clear communication of quality requirements with suppliers.Conduct regular qualication audits and on-site inspections of suppliers. Provide quality trainingand facilitate technical cooperation and exchanges when necessary.Compliance and
Ethical Risk
Mandate all suppliers to sign an Anti-Commercial Bribery Agreement, strengthen awarenessthrough ongoing education and training initiatives, and conduct regular audits to ensure suppliercompliance with the code of conduct. Perform due diligence, project audits, and compliancechecks on partners as required.
Environmental,Health and Safety,and Labor RightsRisks
Integrate sustainability requirements into the core of supply chain management. Clearly outlineexpectations for environmental management, climate change response, resource utilization,emission control, prohibition of child labor and forced labor, anti-discrimination practices, andoccupational health and safety in the Company's Supplier Code of Conduct. Actively promotesupplier compliance and encourage continuous improvement in these areas.
Walvax Biotechnology has joinedthe Supply ChainBranch of the ChinaAssociation forVaccines, where it servesas an Executive CouncilMember
Walvax Biotechnology has implemented a comprehensive set of internal regulations and procedures for suppliermanagement. These include the Supplier Management Implementation Rules, Standard Operating Procedures forSupplier Management, and Inspection Guidelines for Supplier Management. These documents clearly dene criticalaspects such as supplier qualication validity, quality assessment methodologies and standards, material quality issuereporting, annual evaluations, and supplier audits. These measures enable effective evaluation of supplier qualitystatus and provide standardized guidance for implementing a full lifecycle quality management system for suppliers.The Company mandates that all suppliers must be registered with relevant national authorities, possess appropriateprofessional qualications for their provided services or products, and maintain a robust quality management systemcompliant with current laws and regulations (e.g., certication systems equivalent to ISO or GMP standards). Walvaxenters into Quality Assurance Agreements with key strategic suppliers, specifying requirements across six dimensions:
regulatory compliance, quality standards, logistics and transportation, accompanying documentation, batchrequirements, and service response. This multi-faceted approach reinforces supply chain quality management.
Supplier Quality Management
Special Topic
In alignment with GMP system requirements and the Standard Operating Procedures for Supplier Management, theCompany' production entities develop annual supplier audit plans. These audits employ a variety of methods, includingqualication assessments, questionnaire surveys, remote audits, on-site inspections, small sample quality evaluations,and regular raw material quality checks, to conduct comprehensive assessments of suppliers. Key suppliers undergoannual on-site audits or alternative forms of evaluation (remote audits, third-party audits, or questionnaire surveys),while major suppliers are subject to similar audits biennially. Dynamic audits are conducted in response to qualityissues or other anomalies. These audits encompass various aspects, including quality management, organizationalstructure and personnel, facilities and equipment, material management, production processes, quality control, andquality assurance. Each audit culminates in a detailed report. For suppliers with identified deficiencies, a formalprocess is initiated. They are required to complete a deciency record form and submit a corrective action plan withinseven days. This ensures that suppliers take prompt measures to address issues and meet compliance requirementswithin a reasonable timeframe. Unqualied suppliers are removed from the approved list, fostering a fair, transparent,and high-quality supply chain.
Supply Chain Quality Audits
On-site Supplier Audit Process
Appointsuppliers
Develop andreview theaudit plan
Conduct theon-site audit
Prepare theaudit report
Track andimplementcorrective
actions
Supplier submits
the correctiveaction report
Verify completion
of suppliercorrective
actions
Supplier Quality Audits
Audit TypeNumber of Audits in 2024Remote audits167 suppliersOn-site audits28 suppliersThird-party commissioned audits9 suppliers
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Special Topic
In the realm of quality management, the Company has established comprehensive supplier training managementprotocols. The Quality Department, working in tandem with relevant divisions, develops annual training plans tailoredto various supplier categories. These initiatives aim to ensure suppliers gain a thorough understanding of the technicalspecifications and quality standards required for the Company's R&D products. Leveraging supplier evaluationoutcomes and insights gleaned from audits, the Company provides targeted guidance and recommendations, therebyfostering holistic improvements in suppliers' quality management systems. When quality concerns emerge duringroutine procurement processes, the Company employs a continuous improvement methodology encompassing"feedback - quality root cause analysis meetings - solution formulation - preventive measures implementation." Thisproactive approach engages suppliers in collaborative problem-solving for product quality and safety issues, ultimatelyenhancing their product quality and technical service capabilities. Throughout the reporting period, the Company'ssupplier quality assurance training program successfully encompassed key suppliers across all categories.
Supply Chain Quality Training
In December 2024, to reinforce the quality assurance and regulatory compliance of raw and auxiliary materialssupply, the Company's Supply Chain Center, in collaboration with the Audit and Inspection Department and QualityManagement Center, organized the Walvax Biotechnology 2024 Online Supplier Training Conference for key materialsuppliers. This conference, grounded in the principles of the Vaccine Administration Law of the People's Republic ofChina and GMP regulations, offered comprehensive insights into supplier quality management protocols, supplierselection criteria, and methodologies for supplier evaluation. The symposium delineated explicit quality responsibilitiesand requirements for suppliers, emphasizing the imperative to ensure document authenticity and legality, maintainrigorous product quality control, facilitate timely and precise supply, and guarantee safe delivery. Furthermore, thecritical nature of prompt information exchange was underscored to maintain quality control throughout the entire supplychain process.
Case Walvax Biotechnology 2024 Online Supplier Training Conference
Resilient Supply Chain
Developing a resilient supply chain and safeguarding business continuity are paramount to the Company's sustainable supplychain strategy. We have implemented a sophisticated risk analysis model and assessment mechanism to conduct comprehensiveevaluations of various supplier categories. This approach focuses on risk identication, potential loss quantication, and specicmitigation strategies. By proactively refining our supply chain safeguards, we effectively mitigate potential risks throughout thesupply network. In 2024, the Company maintained uninterrupted raw material supplies, avoiding any production disruptions due tomaterial shortages.
Our supply chain risk assessments are grounded in thecriticality of materials to production processes and theprobability of supply interruptions. We develop tailoredsafeguarding strategies that consider the severity of impacton production activities, the likelihood of supply delays, andthe detectability of such disruptions. High- and medium-riskmaterials are subject to intensied monitoring to ensure timelyavailability for commercial production projects.
To hedge against price volatility and ensure superior after-sales service, we engage in annual agreements with suppliersbased on long-term collaboration principles or establishstrategic alliances. This approach prioritizes the procurementof scarce materials and minimizes distribution risks.
We have established multi-channel communicationplatforms with suppliers, including email, telephone, videoconferencing, and in-person meetings. A Delivery WarningNotication protocol has been implemented, initiating supplierengagement at least one month prior to contractual deliverydates to assess readiness. We provide formal monthly writtenfeedback to suppliers on delivery performance, facilitatingcontinuous improvement in on-time delivery. Proactivecommunication with suppliers addresses potential issuesidentified during monitoring, such as supply shortfalls. Wepromptly arrange meetings with suppliers experiencingconstraints to collaboratively develop solutions, ensuringoptimal inventory management and supply stability.
Enhancing Supply Chain Contingency Plans
Maintaining Stable Partnerships
Timely Communication and Information Sharing
To counteract upstream supply disruption risks stemming fromclimatic, geographical, or regulatory factors and to ensureproduction continuity, we adhere to principles of "compliance,stability, timeliness, cost-effectiveness, and strategicimportance." Our management policy mandates at least twosuppliers for each material. We have diversied our key rawmaterial supplier base across different regions, securinga minimum of two domestic and international suppliers forcritical materials, while also identifying backup suppliers. Wehave established preventive measures to mitigate supplydelays and over-dependence on single, high-cost suppliers,thus further reducing production vulnerabilities in the supplychain.
We have implemented inventory management systems forproduction-critical materials, including raw materials andkey consumables, featuring safety stock alert mechanisms.These systems enable real-time monitoring and dynamicmanagement of material inventory data. Our risk mitigationstrategies encompass early demand forecasting and strategicstockpiling, with particular emphasis on enhancing earlywarning controls and increasing inventory levels for criticalmaterials.
We conduct comprehensive assessments of import materialsupply risks, considering historical delivery performanceand inventory levels. We actively explore opportunities fordomestic substitutes and local sourcing, particularly for criticalmaterials, evaluating technical specifications, commercialviability, production capacity, and accessibility to enhanceour supply chain resilience. During the reporting period, YuxiZerun, Walvax Biotechnology' subsidiary, achieved 100%domestic substitution for single-use sterile storage bags,with ongoing initiatives to localize the sourcing of lters andconsumables.
Implementing Dual Sourcing Strategy
Establishing Safety Stock Levels
Promoting Local Sourcing and DomesticSubstitution
In 2024, Yuxi Walvax executed its audit plan with precision, conducting annual evaluations of 103 suppliers,questionnaire surveys of 64 suppliers, and on-site audits of 10 suppliers. The Company achieved a 100% passrate, with all audited suppliers deemed compliant and e?ective, maintaining their status as qualied suppliers. Fordistributors, the Company completed 8 on-site audits, 3 remote audits, and 21 document audits.
Strengthening Governancefor Sustainable Growth
Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Innovation-Driven HealthEmpowerment
65 66
CommunityCo-development,Shared HealthBenets
Products exported to
countries/regions
Annual charitable donations:
RMB
5.1069
million
Annual exports to developing countries/regions:
exceeding
million doses
Health AccessibilityGovernance
Strategy and Approach
The WHO recognizes immunization as one of the most e?ective and cost-e?cient health interventions. Health accessibility is astrategic priority for Walvax Biotechnology. The Company's Board of Directors bears ultimate responsibility for the concept, goals,strategies, structure, and implementation of health accessibility initiatives. The Sustainable Development Committee, operatingunder the Board, comprehensively oversees the advancement of health accessibility strategies, while the Health AccessibilityWorking Group is tasked with formulating and implementing action plans. The Company has also established key policies includingthe Walvax Biotechnology Co., Ltd. Health Accessibility Policy, Walvax Biotechnology Co., Ltd. Fair Pricing Policy, and WalvaxBiotechnology Co., Ltd. Statement on Addressing Antimicrobial Resistance. These policies integrate relevant requirements intocompany operations, aligning with the UN SDG of "Good Health and Well-being."
Walvax Biotechnology is committed to the principle of "Help Everyone Live a Healthy Life" and consistently leverages innovationas its driver and high-quality vaccine products as its foundation. It accelerates vaccine R&D processes while promoting localcooperation, enhancing product accessibility and affordability, and strengthening public health capabilities in operational areas.Through these e?orts, a more robust and sustainable business model has been in place to extend the benets of vaccine productsto a broader population. The Company has developed a ve-year health accessibility strategy. By fully utilizing our R&D and productadvantages through diversied business operations and continuous international expansion, we aim to better serve global publichealth initiatives and improve health accessibility worldwide.
Annual overseas business revenue reached RMB
million, representing a98%increase from 2023 andemerging as a new growth driver.Products exported to a cumulative total of
countries/regions, with registration processes ongoing in
countriesand
valid registration certicates (including all dosage forms); inaugural exports to Afghanistan and Burkina Faso.Cumulative exports to developing countries/regions surpassed
million doses, with over
million doses exportedin 2024 alone, achieving a100% vaccine delivery rate.PCV13 vaccine exported for the rst time to Indonesia, the Philippines, and India; signed a PCV13 cooperationagreement with Mexico, marking our rst contract in the Latin American market.Successful commercial production of the bivalent HPV vaccine project, continuing to secure bids for HPV vaccineprocurement in multiple domestic provinces; the bivalent HPV vaccine obtained WHO-PQ and achieved its overseasregistration in Indonesia and Nepal, laying the foundation for global promotion of our vaccine products.
Hold ultimate responsibility for the Company's health accessibility concept, goals, strategies,structure, and implementation.Review health accessibility strategies and goals, approve implementation plans, promote goalachievement, and conduct regular reviews.Formulate, execute, evaluate, and optimize health accessibility implementation plans,coordinating across departments to advance health accessibility goals; Report progress andachievements to the Sustainable Development Committee, ensuring alignment with healthaccessibility objectives.
Board of DirectorsSustainable DevelopmentCommitteeHealth AccessibilityWorking Group
Walvax Biotechnology continually expands its international market presence through direct operations and strategic licensingpartnerships. Our business now spans emerging markets and developing countries across, Southeast Asia, South Asia, CentralAsia, Latin America, and Africa, consistently delivering high-quality, cost-e?ective, and accessible vaccine products to developingnations. In 2024, the Company maintained its focus on low- and middle-income countries in Asia, Africa, and Latin America. Weprioritized meeting public market demands for pneumococcal, meningococcal, and cervical cancer vaccines in these regions, whilealso addressing emergency procurement needs and private market opportunities. For countries seeking to develop local capabilities,we offered technical cooperation services to support theestablishment of self-reliant vaccine production facilities,collaboratively addressing disease-related challenges.Throughout 2024, the Company actively participated innumerous international conferences and events organizedby UN agencies, including WHO, UNICEF, and PAHO,demonstrating our commitment to providing affordable,high-quality vaccines to low- and middle-income countries.Furthermore, the International Cooperation Division of theYunnan Provincial People's Government Foreign A?airs O?ceestablished a collaborative mechanism with the Company,aiming to leverage strong government-enterprise cooperationto promote our international market expansion.
Expanding Vaccine Coverage to More Developing Countries
Partnership established with Mexican partner for PCV13,marking the rst contract in the Latin American market.
The Company took part in organizing and attending global exhibitions held in Milan, Italy, and Riyadh, Saudi Arabia
The Company was invited to attend the 11th Thai NationalVaccine Conference and participate in roundtable discussionsThe inaugural China Vaccine Conference was heldin Kunming, where Li Yunchun, Chairman of WalvaxBiotechnology, delivered a keynote speech
Strengthening Governancefor Sustainable Growth
Innovation-Driven HealthEmpowerment
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Community Co-development,Shared Health Benets
69 70
In November 2024, Walvax Biotechnology participated in the inaugural conference of the "Egyptian Vaccine Manufacturers Alliance,"signing memoranda of understanding with two Egyptian pharmaceutical companies for localized vaccine production. Leveragingits extensive technology transfer expertise, the Company will collaborate on advancing the local production of Group A and GroupC meningococcal conjugate vaccine, PCV13, and bivalent HPV vaccine. It will assist in establishing production systems, providetechnical innovation support, o?er guidance on production technology and quality control, and deliver solutions for issues relatedto samples, reagents, equipment, and raw materials. This partnership aims to equip local manufacturers with advanced vaccineproduction technologies, fostering Egypt's vaccine self-su?ciency and sustainable industrial growth.
Indonesia has been a key focus in Walvax Biotechnology's internationalization strategy for over a decade. Since 2021, the Companyhas initiated localization projects with Indonesian pharmaceutical firms for PCV13, bivalent HPV vaccines, etc. The technologytransfer of polysaccharide/conjugate vaccine platforms and recombinant protein vaccine platforms has progressed steadily. Thiscollaboration supports Indonesia in developing an integrated platform for innovative vaccine R&D and production, along with arobust evaluation system. The goal is to create a global center for cutting-edge vaccine R&D and production, enhance Indonesia'svaccine supply security, and expand the reach of "Made in Indonesia" vaccines across ASEAN and Muslim countries, therebycontributing to global health. In 2024, the Company successfully facilitated the technology transfer for PCV13 to its Indonesianpartner. This localized product not only received market approval in Indonesia but also obtained Halal certication from MUI, aglobally recognized authority in Halal certication.
Case Empowering Egypt's Local Vaccine Production Capabilities
Case Joint Establishment of an Innovative Vaccine Manufacturing Base in Southeast Asia
Walvax Biotechnology constantly improves its vaccine supply chain, empowering local suppliers to enhance their capabilities inproduct transportation and storage. This approach ensures a compliant, safe, and e?cient supply chain that guarantees vaccinesafety and accessibility.
Walvax Biotechnology has established a dedicated Vaccine Safety Committee to advance its life-cycle pharmacovigilance system.This system meticulously collects, monitors, identies, and evaluates adverse reactions following vaccination globally, ensuringvaccine safety throughout the product lifecycle. Recognizing the potential resource and technical limitations in developing countries,the Company collaborates closely with local partners on pharmacovigilance while expanding its international business. Thisapproach supports developing countries in establishing comprehensive pharmacovigilance systems, ensuring thorough monitoringand assessment of vaccine safety post-marketing in overseas countries. Consequently, this allows for timely and appropriatemeasures to address safety concerns, safeguarding the health and safety of vaccinated populations.
Updating the Vaccine Supply Chain
Advancing Post-Marketing Pharmacovigilance
In thedomesticmarket
In overseas
The Company adopts a "trunk transportation + regional warehousing + regional distribution" logisticsmodel. Each product is fully traceable via an electronic supervision code, ensuring the timeliness andsafety of vaccine delivery and achieving zero complaints related to supply chain security.
The Company defines transportation and storage protocols prior to shipment, with real-timetemperature monitoring throughout the process using advanced temperature recorders. Duringsupply and delivery, while prioritizing product safety and e?cacy, we optimize the selection of exportports, airlines, and routes to improve supply efficiency. Delivery solutions are refined to minimizetransportation costs and enhance supply chain reliability while maintaining optimal transport conditions.
Through the "regional warehousing + regional distribution" model, branch distributors delivervaccines from regional warehouses to counties and districts across the country. This expandsdelivery coverage and ensures timely vaccine access in remote areas, thereby enhancing vaccineaccessibility.The Company uses a comprehensive vaccine tracking system to achieve end-to-end visibility fromproduction to nal delivery, further enhancing vaccine safety.
Before market launch, distributors are required to complete a comprehensive Pharmacovigilance Service ProviderQuestionnaire. A professional team conducts rigorous qualication audits of service providers, focusing on theircapacity to conduct pharmacovigilance activities in terms of personnel, equipment, resources, and managementsystems. Identied issues are promptly addressed to ensure compliance with internal and local pharmacovigilancestandards. Safety Data Exchange Agreements (SDEAs) are signed with distributors to establish robustcommunication mechanisms and work systems between pharmacovigilance teams, strengthening joint monitoringe?orts.After the market launch, dedicated pharmacovigilance officers are appointed to work with local partners.Throughout the product lifecycle, these teams conduct continuous in-depth analysis, evaluation, and informationexchange of collected safety data, jointly enhancing risk control and ensuring all data and reports comply withlocal and international pharmacovigilance standards. In 2024, we exchanged safety data 151 times with overseasdistribution partners, with no new safety risk signals related to vaccine use detected, demonstrating excellent safetyperformance.The Company advances both internal and external pharmacovigilance audits and supports developing countriesin establishing robust vaccine safety monitoring systems. In 2024, comprehensive pharmacovigilance audits wereconducted on three overseas distributors, covering organizational structure, PV systems, personnel qualications,and PV policies and procedures. These audits meticulously evaluated the effectiveness of pharmacovigilancesystems and identified areas for improvement, helping local companies develop mature pharmacovigilancemanagement systems and mechanisms. These efforts have contributed to assisting developing countries inenhancing their post-marketing pharmacovigilance capabilities.
The Company signed memorandums of understanding with two Egyptian pharmaceutical rms to advance local vaccine production
Localized production enables developing countries to establish self-su?cient vaccine industries. For years, Walvax Biotechnologyhas actively promoted local vaccine production, fostering the development of regional vaccine industry chains, and working toreduce vaccine costs for populations in emerging markets and developing countries. The Company has explored localization modelswith countries including Indonesia, Morocco, and Egypt, o?ering tailored solutions. In 2024, several technology transfer projectsmade signicant progress, such as the Indonesian and Moroccan PCV13 projects. These key projects involved localizing bulk llingand testing technologies, with expert sta? and project managers deployed for on-site guidance. Furthermore, the Company engagedin discussions with international organizations like PATH to promote vaccine localization in low- and middle-income countries, aimingto bolster their capacity to address public health challenges.
Enhancing Local Production Capabilities
Strengthening Governancefor Sustainable Growth
Innovation-Driven HealthEmpowerment
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Community Co-development,Shared Health Benets
71 72
In an e?ort to foster a fair and equitable marketing environment and extend the benets of high-quality vaccine products to a widerpopulation, Walvax Biotechnology has developed the Walvax Biotechnology Co., Ltd. Fair Pricing Policy. In alignment with the WorldHealth Organization's guidelines on fair pricing, the Company adopts a value-based and transparent pricing strategy that balancesproduct quality with a?ordability. Sustainable pricing models are explored across various markets, with pricing policies extended todownstream distributors to ensure consistent implementation and improved product accessibility. Our comprehensive pricing modeltakes into account global market demands, considering factors such as vaccine research and production costs, market supply anddemand dynamics, and pricing of comparable vaccine products. We employ a tiered pricing strategy, o?ering more favorable ratesto economically disadvantaged countries and populations, thereby extending the benefits of vaccine innovation to underservedregions. Detailed information on our fair pricing principles can be found in the Walvax Biotechnology Co., Ltd. Fair Pricing Policy andthe Walvax Biotechnology Co., Ltd. 2023 Sustainability & ESG and Social Responsibility Report.
Increasing Product A?ordability
In the domestic market, the Company complies with relevant legal regulations, ensuring fair and reasonable pricing for its high-quality vaccines, with consistent pricing nationwide. Prices are publicly available and transparent across all regions, accessible viaprovincial-level platforms. We strive to balance scale and e?ciency, o?ering vaccine products at competitive prices. For successfulbid products, we strictly adhere to regulations by promptly publishing information on the central government procurement website.As of the end of the reporting period, two of our marketed vaccine products are included in the national immunization program,with procurement prices regulated and guided by the state, provided free of charge to residents. In 2024, the procurement volumefor these two immunization program vaccines exceeded 7.5 million doses. Moreover, we actively address the needs of specicpopulations by participating in various local welfare procurement projects and o?ering substantial corporate concessions. Currently,both our bivalent HPV vaccine and 23-valent pneumococcal vaccine have secured bids in multiple government procurementprojects. Furthermore, we monitor end-of-supply chain prices to prevent price gouging and welcome public scrutiny.Our self-developed bivalent HPV vaccine was initially priced at RMB 329 per dose at launch. Compared to the imported bivalentHPV vaccine already on the market, this can result in savings of approximately RMB 812 for a complete 3-dose regimen. In 2024,the price of this vaccine in some regions was reduced by about 40.43% from our initial recommended price, potentially savingapproximately RMB 399 for a complete 3-dose regimen. This allows more people to access equally safe and e?ective high-qualityvaccines at a lower cost.
In overseas markets, the Company adheres to local pricing regulations and tax policies and has established the WalvaxBiotechnology Co., Ltd. Overseas Sales Pricing Management Measures. We have developed accessible pricing strategies tailoredto the needs and economic development levels of di?erent countries or regions. Our approach considers factors such as nationalor regional economic development, local vaccine production and supply, public healthcare investment, individual healthcarecosts, vaccine procurement budgets and policies, and the overall benets of vaccines to populations and healthcare systems. Weimplement di?erentiated pricing models and tiered strategies. While ensuring necessary prot margins, product quality, and stablesupply, we o?er more favorable vaccine prices to economically disadvantaged countries and populations. For instance, we providevaccines at lower prices to low-income African countries such as Mauritania and Burkina Faso compared to other internationalmarkets.The Company recognizes the vital role that centralized procurement plays in reducing costs, improving vaccination coverage, andadvancing public health. To this end, we actively promote the inclusion of our vaccine products in local immunization programs. As ofthe reporting period's end, our products have been successfully incorporated into the immunization programs of Morocco and Egypt.Concurrently, we are expanding cooperation with other countries and regions, strengthening vaccine product certications, andsupplying vaccines through international organizations like PAHO and UNICEF. We are also working to reduce minimum purchasequantity requirements for developing country customers, aiming to make our vaccine products accessible to a broader range ofpopulations in need.
The Company tailors its training programs and communication efforts to meet local development needs. Our initiatives includedelivering specialized training to disease control centers that utilize our vaccine products, cultivating local talent in vaccineproduction and quality control, providing professional development opportunities for local vaccine industry professionals, andconducting training and knowledge-sharing sessions for local agents. These e?orts are aimed at elevating medical service standardsin developing countries.
Domestic Market
Overseas Markets
Strengthening Healthcare Worker Training
Walvax Biotechnology consistently implements a range of initiatives including professional vaccine training, public health education,and charitable healthcare activities. The Company actively donates vaccines to developing countries and remote, underdevelopedregions, striving to enhance public health capabilities in areas where its vaccine products are utilized. For a comprehensive overviewof our health-related charitable activities, please refer to the "Heartwarming Charity" section.
Boosting Public Health Capabilities
In partnership with the China Primary Health Care Foundation, Walvax Biotechnology has established the "Live HealthyPublic Welfare Fund." This initiative provides nancial support and vaccine donations to remote areas, with the aim ofreducing the incidence and mortality rates of relevant diseases and improving overall health standards in rural regions.The "Live Healthy Public Welfare Fund" is dedicated to: 1) Supporting targeted vaccination programs, enhancing medicalservice capabilities, and conducting scientic education and awareness campaigns; 2) Facilitating medical research,establishing scientic research projects, disseminating research outcomes, and organizing relevant academic exchanges;
3) Sponsoring training programs for specialized disease control management personnel and grassroots public health
workers; 4) Supporting the enhancement and improvement of service capabilities in medical institutions.
We have conducted comprehensive professional training on disease burden, product usage, and product data forvaccine industry professionals in various countries, including Indonesia, Thailand, the Philippines, Belarus, Egypt,Chile, Malaysia, and Saudi Arabia. These programs are designed to enhance the expertise of relevant personnel.
In 2024, we further strengthened ourcollaboration with the Chinese PreventiveMedicine Association. We jointlyorganized four leadership developmenttraining sessions for district and county-level disease control institutions atour Innovation and Education SciencePopularization Base, benefiting nearly500 participants. The comprehensivecurriculum covered various aspects,including public health policies, vaccinetechnologies, and legal interpretations,aiming to deepen local understanding andknowledge of relevant vaccine products.
As the sponsor of the post-market clinical trial for PCV13 in Indonesia, we provide ongoing, structured trainingon research protocols, procedures, operations, and management. This training is targeted at on-site researchers(medical professionals responsible for biological sample collection, adverse reaction monitoring, and case tracking)and local research partners (including research organizations and local agents). Our goal is to enhance thecapabilities of disease prevention and control personnel in Indonesia, with a particular focus on Jakarta and Bali.
Strengthening Governancefor Sustainable Growth
Innovation-Driven HealthEmpowerment
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Community Co-development,Shared Health Benets
73 74
The Company collaborates closely with local health institutionsto provide comprehensive vaccine education. Informationis provided to recipients on how vaccines work, differencesbetween various types of vaccines, and potential side e?ects.To broaden public reach, we utilize diverse media platforms,conduct vaccine knowledge seminars, and organize forumevents. These initiatives aim to disseminate both fundamentalvaccine information and cutting-edge epidemiological insights.We regularly invite experts to address public concernsabout vaccines, thereby enhancing awareness of diseaseprevention and promoting individual health management
skills. In partnership with non-governmental organizations,we have developed tailored vaccine training programs forspecic demographic groups, such as expectant mothers andindividuals with chronic conditions. Through this multi-tieredapproach to vaccine education, we strive to elevate society'soverall understanding of vaccines and contribute to publichealth protection. During the reporting period, we organized 16national academic conferences, 53 provincial-level academicconferences, and approximately 6,000 other conferencesrelated to disease prevention and control. Additionally, weconducted 120 consumer education events.In 2020, the World Health Organization released the GlobalStrategy to Accelerate the Elimination of Cervical Cancer.That same year, at the Gavi Pledging Meeting and the GlobalVaccine Summit, Walvax Biotechnology made a solemncommitment: upon receiving WHO-PQ for its bivalent HPVvaccine, the Company would allocate more than half of itsproduction capacity to fulll Gavi's procurement needs. Gavi isan international organization dedicated to improving access tovaccines for children in low-income countries. This commitmentaligns with Gavi's 5.0 strategic plan, which aims to benet 84million females aged 9-14 globally. In August 2024, our bivalentHPV vaccine received WHO-PQ, marking a significant steptowards contributing to the global effort to eliminate cervicalcancer. The Company is actively exploring internationalvaccine donation channels. In 2024, we participated in thebidding process for the Chinese government's vaccine aidproject to Afghanistan and continue to monitor vaccine aid anddonation opportunities for other countries.
In response to the Healthy China Initiative 2030 and theAction Plan for Accelerating the Elimination of Cervical Cancer(2023-2030), the Company launched the "HPV Vaccine PublicWelfare Donation Project" in 2024. This initiative involvesdeveloping a comprehensive and sustainable HPV vaccinedonation plan, with the goal of donating over 160,000 doses ofbivalent HPV vaccine to over 10 provinces and municipalitiesacross China, including Henan, Hubei, Jiangxi, Shandong,Shaanxi, Sichuan, Tianjin, and Yunnan. The project aims toreduce the nancial burden of cervical cancer vaccination foreligible women in these areas. Furthermore, in collaborationwith the Wu Lien-teh Public Foundation, we initiated the "ChinaLow Health Resource Areas Cervical Cancer EliminationDemonstration Project". In 2024, Yuxi Zerun donated about14,000 doses of bivalent HPV vaccine to areas with limitedhealth resources, aiming to improve health standards in ruralareas.
Public Education
Vaccine Donations
Walvax Biotechnology recognizes antimicrobial resistance(AMR) as one of the major threats to global public health.Multiple factors have contributed to the decreased sensitivityto antimicrobial drugs among patient populations, presentingsignificant challenges for clinical treatment. As a high-tech biopharmaceutical company specializing in the R&D,production, and sale of human vaccines, the Companyadvocates for the judicious and appropriate use of antibioticsand other antimicrobial drugs. Our strategy consistentlyprioritizes vaccine categories that reduce antibiotic use whilealso focusing on the development of innovative vaccines.We aim to serve human health with cutting-edge vaccinetechnologies and superior products, while addressing the AMRthreat through groundbreaking solutions.Bacterial vaccines are a cornerstone of Walvax Biotechnology'sproduct portfolio. Since its establishment, the Companyhas maintained a dedicated focus on the discovery anddevelopment of vaccines to combat infectious diseases. Asof the end of 2024, the Company has 7 approved bacterialvaccine products on the market, including pneumococcal,meningococcal, and Haemophilus inuenzae type b vaccines.These bacterial vaccines e?ectively prevent diseases caused
by bacterial infections, thereby signicantly reducing the needfor antibiotics in clinical settings. Our independently developedPCV13 has emerged as the world's second and China's rstdomestically developed product of its kind. Three years post-launch, studies have demonstrated that this vaccine providesrobust long-term immunity across all age groups, with alow incidence of fever and an excellent safety profile. In ourinvestments in vaccine development at other laboratories, wecontinue to prioritize strategies that minimize antibiotic use.For more comprehensive information on our approach to AMR,please refer to the Walvax Biotechnology Co., Ltd. Statementon Addressing Antimicrobial Resistance.Furthermore, the Company has implemented a specializedAMR education and training program to enhance employeeawareness of antibiotic resistance internally. Externally, weleverage various channels including o?cial WeChat accounts,websites, academic conferences, and vaccine recipienteducation to bolster AMR awareness among vaccine usersand healthcare professionals. We also actively collaboratewith governments, regulatory bodies, manufacturers, andhealthcare providers to forge joint commitments and implementcollective actions in tackling AMR challenges.
Mitigating Antibiotic Resistance Risks
Impact, Risk, and Opportunity ManagementWalvax Biotechnology consistently monitors domestic and international macroeconomic trends, policy developments, and industryupdates. The Company maintains ongoing tracking and analysis of emerging technologies that could potentially inuence vaccineindustry development, new product creation, and iteration. By keeping pace with the latest product and technological advancementsin the sector, the Company has gradually established and improved its procedures for identifying, assessing, controlling, monitoring,and improving strategic risks. This approach enables us to clearly comprehend the risks and opportunities associated with healthaccessibility issues, allowing us to continuously optimize, promptly adjust, and substantially enhance our risk control strategies andmeasures, thereby ensuring the e?ectiveness and adaptability of our risk management e?orts.Analysis of Risks and Opportunities in Health Accessibility IssuesResponse Strategies Risks
●Policy risks (The domestic pharmaceutical industry istransitioning through industrial restructuring; regulatorychanges may impact corporate R&D, production, and sales;compliance challenges emerge in overseas markets) ●Market and technological risks (Competitive marketpressures, R&D pipeline homogenization, technologicalobsolescence, etc.) ●Natural risks (Vaccine demand fluctuations due to diseaseepidemic trends, raw material supply chain vulnerabilities,etc.) ●Management and operational risks (Quality controlchallenges, supply chain disruptions, cold chain transportationissues, talent acquisition and retention di?culties, etc.)
Opportunities ●Substantial unmet needs persist in the global vaccine sector;government initiatives are actively promoting innovation andbiopharmaceutical industry growth, presenting significantexpansion potential ●Breakthroughs in disruptive technologies such as mRNA,gene editing, synthetic biology, articial intelligence, and bigdata are propelling high-quality industry development
●Vigilantly monitor policy developments, regularly assessthe impact of regulatory changes on company operations,and proactively foster collaborative relationships withregulatory authorities, industry associations, andinternational organizations to ensure compliance whileadvocating for supportive policies. ●Maintain a dual-focus strategy on "technology & market,"aligning with the vaccine industry's future trajectory "frompediatric to adult, prevention to treatment, and population-wide to personalized care." Implement a developmentmodel that balances in-house research, collaborativepartnerships, and strategic acquisitions, concentratingresources on accelerating key vaccine productdevelopment and fostering new quality productive forces. ●Steadily enhance business continuity planning and bolsterproduct safety and quality control systems. Evaluateand refine risk control measures to improve the safety,e?cacy, and quality assurance of our vaccine products,thereby strengthening market condence. ●Actively explore innovative marketing approaches,enhance academic partnerships, and improve post-tender and after-sales support. Capitalize on globalmarket opportunities through flexible and effectivestrategies, including tailored country-specic approaches,targeted coverage in key regions of core markets,technology transfer initiatives, and pursuit of internationalcertifications to expand our global footprint and bettercontribute to worldwide public health e?orts.
Strengthening Governancefor Sustainable Growth
Innovation-Driven Health
Empowerment
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Community Co-development,Shared Health Benets
75 76
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Heartwarming CharityWhile pursuing its own growth, Walvax Biotechnologyremains steadfast in its commitment to social responsibility.The Company proactively explores philanthropic models thatresonate with contemporary societal needs, viewing eachproject as an opportunity for shared community development.We endeavor to extend warmth and care to those in need,safeguarding public health and well-being. In 2024, wecontinued to advance our health education initiatives andvaccine donation programs, reinforcing our dedication toprotecting public health.
Since 2023, Walvax Biotechnology has donated a total of RMB 5.45 million to the "Baby-Friendly Initiative - Discharge HealthGuidance from Baby-Friendly Hospitals" public welfare project, jointly organized by the Chinese Preventive Medicine Associationand the Chinese Red Cross Foundation. This donation supports professional training for healthcare workers and health educationfor inpatient mothers and their families. Through large-scale training sessions for Baby-Friendly Hospitals, guided WeChat supportgroups for mothers, and expert health advice on immunization for infants, the project aims to enhance maternal and child healthservices and increase families' awareness of crucial health practices. These e?orts align with the Healthy China Initiative 2030.In 2024, the project successfully conducted 7 events, focusing primarily on breastfeeding and immunization. These sessionsshared best practices related to the "Baby-Friendly Initiative" and provided skill enhancement training for various levels of hospitalpersonnel, reaching over 1,000 participants.
Since 2022, Walvax Biotechnology has been collaboratingwith the China Women's Development Foundation to enhancecervical health awareness among adolescent girls and theirfamilies, aiming to advance cervical cancer prevention andreduce its incidence. To date, we have donated RMB 11.5million to support the "Rose Action - Adolescent HealthEducation Charitable Initiative" and the "Caring for HospitalNurses Charitable Initiative". In 2024, the project distributedover 330,000 "Rose Action" promotional manuals, conducted43 cervical health knowledge lectures for students, anddistributed over 7,000 "Rose Action" care packages foreducators.
Case "Baby-Friendly Initiative - Discharge Health Guidance from Baby-Friendly Hospitals"
Project
Case "Rose Action - Adolescent Health Education" Charitable Initiative
Total charitable donations:
RMB
5.1069
million
Indicators and Targets
To bolster professional capabilities in maternal and child health services, the project delivered a series of specializedtraining sessions for obstetrics and pediatrics sta?. These covered breastfeeding techniques, precautions, commonissues and their solutions, as well as immunization principles, procedures, and contraindications. By engagingauthoritative experts and employing diverse teaching methods, including case studies and simulations, the projectequipped healthcare providers with the skills to o?er enhanced care to mothers and infants.To improve health literacy among families, the project organized various educational activities for inpatient mothersand their relatives. These included targeted lectures, distribution of informative materials, and personalizedconsultations, e?ectively communicating the importance and correct methods of breastfeeding and immunization toeach family, ensuring every infant can thrive with proper health knowledge.
Indicators and Targets2024 Achievement StatusAnnual expansion into one new low- ormiddle-income country for exports, with activeparticipation in public market procurement acrossvarious nations
Target achieved. Exports successfully expanded into two new low- andmiddle-income countries. We actively engaged in vaccine public procurementprograms in countries such as Egypt and Algeria. Overseas marketsmaintained robust growth trajectories.Proactive promotion of localized vaccineproduction, fostering local vaccine industry chaindevelopment, and facilitating vaccine industryadvancements in developing countries/regions
Target achieved. In 2024, three technology transfer projects were successfullyadvanced. We collaborated on developing vaccine evaluation systems inChina and Indonesia. The localized PCV13 product in Indonesia receivedmarket approval and secured MUI Halal certication. Additionally, memorandaof understanding for local vaccine production were signed with two Egyptianpharmaceutical companies, contributing to Egypt's vaccine self-sufficiencyand sustainable industry growth.Ongoing enhancement of partnerships withdeveloping country governments and globalhealth organizations, with active involvementin multiple national immunization programs,expanded immunization initiatives, and otherhealth capacity development projects indeveloping nations
Target achieved. Our two national immunization program vaccines areprocured through unied bidding by the national disease control system andare provided free of charge to residents. In 2024, the bid volume exceeded
7.5 million doses. Our self-developed bivalent HPV vaccine has won bids
in multiple government welfare procurement projects, supporting the ActionPlan for Accelerating the Elimination of Cervical Cancer (2023-2030). The13-valent pneumococcal conjugate vaccine has been included in Morocco'sExpanded Program on Immunization (EPI) and is being supplied steadily.For seven consecutive years, we have consistently delivered Group A andC meningococcal polysaccharide vaccines to Egyptian customers for theirNational EPI.Acceleration of research and productioncapabilities for multiple high-impact products toensure a consistent supply of high-quality, cost-effective, and sustainable vaccine varieties tolow- and middle-income countries
Target achieved. Our products have now reached 22 countries/regions.PCV13 made its debut in Indonesia, the Philippines, and India. A landmarkPCV13 cooperation agreement was signed with Mexico, marking our firstcontract in the Latin American market. Notably, the bivalent HPV vaccineWalrinvax
?obtained WHO-PQ in August 2024, paving the way for its entryinto the international market and extending its benets to a broader globalpopulation.
Strengthening Governancefor Sustainable Growth
Innovation-Driven HealthEmpowerment
Empowering People,Energizing the Workplace
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Community Co-development,Shared Health Benets
77 78
EmpoweringPeople,Energizing theWorkplace
Total number of employees
1,932
Employee training coverage100%
Proportion of female employees in seniormanagement
43.24%
Inclusive and DiverseWorkplaceWalvax Biotechnology values the recruitment of diverse talentand is committed to building a high-caliber, inclusive, and diverseprofessional workforce through an open and inclusive talentphilosophy. The Company fosters a workplace environmentcharacterized by equality, openness, and harmony, contributingto a positive and healthy organizational ecosystem.Compliant Employment
Diversity and equal opportunities
Walvax Biotechnology adheres to the principles of equality,respect, fairness, and justice in employment practices. TheCompany strictly complies with international human rightsstandards, including the International Bill of Human Rights,the International Labour Conventions, the ILO Declaration onFundamental Principles and Rights at Work, the UN GuidingPrinciples on Business and Human Rights, and the TenPrinciples of the United Nations Global Compact. It also abidesby relevant national laws and regulations such as the LaborLaw of the People's Republic of China, the Labor Contract Lawof the People's Republic of China, and the Law of the People'sRepublic of China on the Protection of Labor Rights andInterests. To ensure compliance and standardize employmentprocedures, the Company has developed internal policiessuch as the Walvax Recruitment Management Measuresand the Walvax Labor Contract Administration Regulations.These policies regulate the entire recruitment and employmentprocess, emphasizing capability-based candidate evaluation andjob matching. Discrimination on the basis of gender, educationalbackground, age, ethnicity, family status, religious belief, orcultural background is strictly prohibited. The Company forbidschild labor, forced labor, and all forms of employment thatviolate laws or policies, as well as any form of discriminationor harassment. Additionally, it strictly prohibits the unlawfulcollection of candidates' personal information, thereby promotingfair and equitable employment opportunities.The Company regularly conducts strict audits on its recruitmentand hiring processes to ensure compliance with laws andregulations at every stage. We encourage employees toreport any actions that violate company policies or regulationsthrough public channels. All reported violations will be carefullyinvestigated and handled with seriousness by the Company.When appropriate, corrective actions will be taken, which mayinclude, but are not limited to, warnings, reprimands, formaldisciplinary actions, or termination of the employment contract.During the reporting period, Walvax Biotechnology did notexperience any incidents involving child labor or forced labor.
Walvax Biotechnology upholds the principles of diversity, equity, and inclusion (DEI), and fully respects the diversity and individualityof its employees. The Company has formulated the Walvax Biotechnology Co., Ltd. Employee Diversity Policy and actively fostersa diverse and inclusive corporate culture. Diversity-related training sessions are regularly conducted for all employees, and DEIprinciples are embedded into recruitment, employment management, and training practices to ensure equal opportunities andbroad career development platforms for every employee. The senior management team oversees the development of a diverse andinclusive culture, as well as the performance of DEI-related initiatives. Diversity and inclusion indicators are integrated into internalsurveys and evaluations to facilitate targeted improvements in related practices.
Employees aged
51 and above
Employeesaged 31-501,044
Femaleemployees1,070
Entry-levelemployees1,729
Employeesaged 30 and
below
Male
employees
Seniormanagement
Middlemanagement
Employeeswith bachelor'sdegree
Employees withassociate degree
or below
Employeeswith graduate/
MBA degree or
above
Overseas
employees
Number ofemployeesby region
(includingemployees fromHong Kong,Macao and Taiwan)1,928
Chineseemployees
Total number of employees
1,932
Number of employees recruited duringthe reporting period
Employee labor contractsigning rate100%
Social insurancecoverage rate100%
Employee voluntaryturnover rate
7.24%
Proportion of female employees
55.38%
Proportion of employees withdisabilities
0.1%
Proportion of female employees insenior management
43.24%
Proportion of newly hired female employees
50.75%
Proportion of female employees amongthe backup management talent
52.73%
Proportion of female employees inSTEM positions
59.3%
Proportion of minority employees
20.08%
Proportion of female employees inmiddle management
53.01%
Walvax Biotechnology actively recruits and attracts talent from diverse backgrounds. All job postings are required to be based solelyon job qualications and competency requirements, with strictly no discriminatory content of any kind. We encourage individualsfrom all walks of life—regardless of their education, work experience, nationality, gender, age, marital or parental status, ethnicity,or religion—to apply and join our team. We evaluate candidates strictly according to the job requirements and competency criteria.Through the implementation of efficient processes and mechanisms, we ensure that candidates from diverse backgrounds aretreated fairly and impartially during the recruitment process, avoiding any potential discrimination or bias. This helps create a diverse,inclusive, and equitable workplace environment for our employees. During the reporting period, female employees accounted for
55.38% of the workforce, ethnic minority employees made up 20.08%, and there were four foreign nationals employed. Overall, the
Company's workforce structure continues to demonstrate a trend toward greater diversity.
To support its internationalization strategy, Walvax Biotechnology integrates the concept of diversity into its corporate culture. Inalignment with the Walvax Biotechnology Co., Ltd. Employee Diversity Policy, the Company organizes annual diversity trainingprograms covering all employees, along with a series of initiatives including theme-based seminars on diversity, mental healthlectures, diversity workshops, and o?ine events. These initiatives aim to help employees understand, internalize, and comply withrelevant principles and policies, while fostering cultural integration and promoting more e?ective team collaboration.
Recruitment and Hiring
Diversity Training and Activities
Number ofemployeesby gender
Number ofemployees by
hierarchical
level
Number of
employees
by age
Number ofemployees by
educational
level
Strengthening Governancefor Sustainable Growth
Innovation-Driven HealthEmpowerment
Community Co-development,Shared Health Benets
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Empowering People,Energizing the Workplace
81 82
Walvax Biotechnology implements fair and equitable employee development programs, ensuring transparency and fairnessthroughout processes related to compensation, training, and promotion. The Company's management team embraces an open andinclusive mindset, values diverse perspectives, and conducts performance evaluations and promotion decisions in an objective andunbiased manner, preventing any form of discrimination or bias.The Company is committed to providing equal career development opportunities for female employees and to strengthening theprotection of women's labor rights. This includes ensuring equal pay for equal work and o?ering equitable access to training andpromotion opportunities. The Company actively supports the advancement and skills development of female employees, encourageswomen to take on managerial roles, and works to break the glass ceiling, ensuring greater participation and developmentopportunities for women across all functions and management levels. In addition, the Company strictly complies with the SpecialProvisions on Labor Protection for Female Employees, providing paid leave for prenatal check-ups, maternity leave, paternity leave,breastfeeding leave, and parental leave. Facilities such as mother-and-baby rooms and dedicated refrigerators are available fornursing mothers. The Company also regularly provides benets for International Women's Day, menstrual hygiene subsidies, andcustomized health screening packages for female employees, helping to safeguard their health and well-being.
Material and Welfare SupportHuman Rights Due Diligence Management
Labor RightsIn line with the International Bill of Human Rights, the ILO Conventions, and the Guiding Principles on Business and HumanRights of the United Nations, the Company has developed the Walvax Biotechnology Statement of Human Rights, the RecruitmentManagement Measures of Walvax Biotechnology, and the Management Measures of Walvax Biotechnology for EmployeeAttendance and Leave. These documents have collectively constituted the risk assessment and prevention framework of humanrights to guard against human rights risks, and safeguard labor rights in the core business activities effectively. Notably, theStatement of Human Rights sets out no forced labor, no child labor, no freedom of association, collective bargaining, diversity,inclusion and anti-discrimination, among other things. The Statement is applicable to all full-time and spare-time employees, as wellas all suppliers, subcontractors, service providers, customers, and other partners that have business ties with us.
Identify and assesshuman rights risksin accordancewith applicableinternational standards,laws, regulationsand certicationrequirements of humanrights.
Perform regularrisk assessmentsin operation, workout action plans forimprovement withinspecied time accordingto assessment results,and take mitigation andremediation measurestargeting critical issues.
Formulate andimplement humanrights policies, businessethics, and the code ofconduct for suppliers,and step up training toprevent human rightsrisks.
Establish a feedbackmechanism to followup on the e?ect ofmeasures for sustainedoptimization andimprovement; openup smooth complaintand appeal channelsto identify and addresshuman rights issuese?ectively.
Identication and Assessmentof Human Rights Risks
Mitigation andRemediation MeasuresPrevention of HumanRights Risks
Performance Supervisionand Feedback
Walvax Biotechnology regularly organizes multiple training sessions concerning labor and human rights policies among allemployees to help employees gain more understanding of human rights and engage in good practices. Besides, the Companyassigns employees to receive human rights training sessions conducted by external organs on a regular basis.
Training and Competence Development
The key to corporate governance of human rights risks is building a compliant labor relations management system. In June 2024,Walvax Biotechnology concluded the Training Session of Risk Control in Labor Relations Management targeting managers andabove in the Bacterial Vaccine BU. The session interpreted the legal boundaries of the probation period in the labor contract,the attendance and leave compliance standard, and the core modules of the standard-based personnel management process.Focusing on high-risk employment scenarios, the session presented policy explanation and compliance guidance to promote thefull compliance of management practices with laws and regulations, and establish a well-performing human rights risk preventionsystem.
The Recombinant Protein BU strictly implements monthly risk reporting within the labor ling system to identify and track potentialemployment-related risks, establishing a closed-loop management mechanism that integrates monitoring, early warning, andrectication. The Human Resources team actively participated in the Human Resources Compliance Practical Training organizedby the High-tech Industrial Development Zone and simultaneously obtained qualications as certied labor law supervisors throughthe labor union. By combining in-depth policy study with hands-on practice, the Recombinant Protein BU has built a comprehensiverisk prevention and control framework that spans institutional design, process execution, and supervisory feedback, signicantlyenhancing the professionalism and e?ectiveness of labor rights protection.
Case Training Session of Risk Control in Labor Relations Management for the Bacterial
Vaccine BU
Case The Recombinant Protein BU Forties A Defense Line for Protection of Labor RightsComplaints against discrimination orharassment in 2024
Major risk incidents related to laborand human rights in 2024
Percentage of employees who returnto work after taking child care leave
100%
Strengthening Governancefor Sustainable Growth
Innovation-Driven HealthEmpowerment
Community Co-development,Shared Health Benets
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Empowering People,Energizing the Workplace
83 84
Prevention of Human Rights Risks
Human Capital DevelopmentGovernanceThe Company has formulated and implemented a seriesof management measures and regulations including theTraining Management Measures of Walvax Biotechnology,the Management Measures of Walvax Biotechnologyfor Career Development (Trial), and the PerformanceManagement Regulations of Walvax Biotechnology (Trial).Effectively planning human resources, these documentsenable employees to unleash their potential according to theirabilities, and prevent organizational risks caused by the owor loss of key talents.The employee development strategy of Walvax Biotechnologyis formulated by the Human Resource Department andsubmitted to the Board of Directors for approval. TheCompany keeps refining the human resource managementsystem to ensure its alignment with the overall strategicgoals. The Remuneration and Evaluation Committee underthe Board of Directors is responsible for formulating andoverseeing the remuneration policy and appraisal standard forexecutive directors and senior executives. The Chief O?cerof Human Resources is tasked with devising human resourceplanning based on the overall corporate strategy of theCompany, and providing support and suggestions for strategicdecision-making from the human resource perspective.The Human Resource Department is charged with workingout and implementing human resource plans, target plans,policies and processes. All BUs have set out their own humanresource departments to perform specific human resourcetasks, and bolster talent development.
Strategy and TacticAcknowledging that "the most competitive employees in theirpositions are remarkable talents", Walvax Biotechnologyhas developed the efficient and forward-looking talentdevelopment strategy and plan, and deepened its tactic oftraining existing talents and introducing new talents to meetthe needs of inter-disciplinary and diversified talent teamsfor e?ectively practicing the corporate strategy and boostingbusiness development.Upholding the principle of "cultivating high-integrity, high-caliber, high-drive, and high-e?ciency talents and promotingthe growth of all employees," the Company has establishedWalvax College and, guided by strategic goals, developeda scientific and well-structured talent management model.This includes a tiered and categorized training system, asound and merit-based promotion mechanism, and openinternal communication channels. To this end, the Companyfully implements the "Ever-Thriving Walvax" talent cultivationsystem, which is designed to develop key talent capable ofsupporting sustainable corporate growth and respondingflexibly to market demands. The system helps enhancetalent depth and quality, optimize the talent structure, andstrengthen the Company's overall competitiveness.
Issues of ConcernPrevention or Mitigation Measures
●Implement the Recruitment Management Measures, and govern the employment process inaccordance with the local laws and regulations of operating sites, strictly verify the authenticityof applicants' identities, and provide anonymous reporting channels to ensure all employeeshave reached the legal age for employment. ●Employees are free to sign and terminate labor contracts.
●Recruit su?cient employees catering to business development needs, execute theManagement Measures for Employee Attendance and Leave, allocate tasks properly throughworkload saturation analysis, and manage and track working hours. ●Combat discrimination and harassment in any forms according to the diversity policy and theStatement of Human Rights, and strengthen publicity and training among all employees. ●Set a clear complaint reporting process, and work out corrective or punitive measures toimpose strict legal penalties on veried violations. ●Adopt the Statement of Human Rights allowing all employees to freely join the labor union andparticipate in collective bargaining to protect their rights to know, participate, and supervise.
●Sign collective labor contracts, including wage-targeted collective contracts, and collectivecontracts for the protection of female employees' rights. Under the guidance of the labor union,the Recombinant Protein BU has signed the collective consultation contract and the collectivecontract for the protection of the special rights and interests of female employees. ●Develop and maintain a robust occupational health and safety management system, conductregular safety risk assessments and detections of occupational disease hazards, organizesafety training and drills among all employees, and foster a safe and healthy workplace. Fordetails, please see the "Occupational Health and Safety" section hereof.
Prohibition ofchild labor andprotection ofunderage workers
Freedom ofassociation,and collectivebargaining
Prohibition offorced labor
Anti-discriminationandanti-harassment
Health and safety
Walvax Biotechnology adopts demand-oriented strategic talent pool planning. To this end, the Company redoubles e?orts to launchregular talent and organizational assessments according to its strategic blueprint and business development direction, proactivelydesign talent layout, actively predict recruitment needs, and comprehensively evaluate recruitment channels in terms of theire?ciency and costs. In the recruitment process, we champion scientic planning, targeted recruitment, standard-based employment,and fair appraisal to attract diversied talents. Our recruitment channels have been extended to university-enterprise cooperationprograms, internship programs, campus recruitment, social recruitment, headhunting recruitment, and internal referral to expandtalent reserves. Besides, advanced information technology has been applied to enhance recruitment e?ciency and job-matchingaccuracy. During the reporting period, the Company pushed ahead with employer branding by promoting precise publicity across 48universities, and building its employer image from multiple dimensions. The recruitment achievement rate reached 91.43%.
Talent Attraction
Received the 2024 Employer Brand Best Practice Award underthe 2024 China Human Resources Venus Awards
Strengthening Governancefor Sustainable Growth
Innovation-Driven HealthEmpowerment
Community Co-development,Shared Health Benets
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Empowering People,Energizing the Workplace
85 86
Guided by strategic objectives, Walvax Biotechnology has established Walvax College as the core platform for building the "Ever-Thriving Walvax" talent cultivation system. This system features a "Learning Panorama Map" that systematically covers four keytraining modules: onboarding for new employees, general competencies, professional expertise, and leadership development. Theprogram is supported by a dual-track mechanism that integrates the "4+1" training principles and the "2345" management model. Itis designed to enhance employees' professional capabilities and leadership skills in a structured and progressive manner, therebystrengthening the talent pipeline and improving overall talent quality and depth.To maximize training e?ectiveness, the Company employs a multi-dimensioned assessment and feedback mechanism for trainingcourses. Training outcomes are directly linked to the annual performance appraisal in accordance with the learning credit andtraining management measures, and the learning performance of trainees is subject to annual assessment. What the Companydoes is to foster a learning-oriented organization, and provide high-caliber, vigorous and e?cient talents with moral integrity formanagement innovation and business growth. In addition, training specialists have been appointed to gather feedback and assesstraining e?ect through questionnaires or other survey methods, and constantly rene training courses according to the collectedinsights.
Employee Training
Talent training mechanism: talent criteria + talent selection + talent development + talent evaluation + talent incentives
Onboardingtraining series
General skillstraining series
Professional skills
training series
LeadershipTraining Series"Ever-Thriving Walvax" Talent Cultivation System
GurusExperts/senior
experts
Tailored trainingSeniormanagementCadre employeesMentoringAdvanced training
Senior employeesOnboardingtraining
Intermediatetraining
Emerging LeadersProgramMiddle managementEmerging Talent ProgramPrimary-level managementEntry-level employeesOnboardingguidance
Entry-leveltraining
High-potential talent training
Tiered leadership training
"Moral integrity" lays a strong ethical foundation; "high caliber" reinforces professional expertise; "high-drive" stimulatesinnovation vitality; "high e?ciency" enhances work performance. Together, these four principles align with the core goalof "growth for all employees," serving as a long-term driver of enhanced employee competitiveness.
The model consists of two core training modules—shared values and shared energy eld—supported by a three-tierstructure involving Walvax College, Branch of Walvax college, and functional departments/teams. A four-dimensionalevaluation system covering virtue, professionalism, competence, and performance ensures training e?ectiveness. Fivetraining formats—in-class learning, reading sharing, public speakingand debate, paper writing, and case study—provideemployees with diverse and integrated learning experiences.
"4+1" Principles: Dening a Unied Value Orientation
"2345" Model: Structuring the Training Implementation Framework
Talent training platforms: internal trainer team + E-Learning platform + mentoring + independent knowledge base building +…
Since 2021, Walvax Biotechnology has been continuously strengthening itsemployer branding e?orts. During the reporting period, the Company built amulti-dimensional communication matrix centered on the main visual designof "Around the Clock – My Life in Walvax", incorporating contemporary andyouth-oriented elements. The Company also developed the personifiedIP image "Dr. Walvax" and a set of workplace-themed emojis, which werepromoted across universities to enhance emotional connection with youngtalent. In addition, the Employer Value Proposition (EVP) was furtherimplemented and translated into a visual communication system. Throughformats such as horizontal scrolling graphics, promotional brochures, and adedicated campus recruitment website, employee value commitments wereeffectively visualized and conveyed. These efforts contributed to strongerbrand recognition and emotional resonance among prospective talents,supporting the Company's talent attraction and reserve strategy.
Case Employer Brand Building
InternalReferral
SocialRecruitment
CampusRecruitment
Internship
Programs
University-EnterpriseCooperation
Programs
●The Company has established the Modern Biomedical Industry College jointly with Kunming MedicalUniversity to cultivate high-quality, innovative, versatile, and application-oriented talents throughdeepening the integration between industry and education. In 2024, internal experts were assigned toparticipate in discipline development, curriculum planning, and joint compilation of training materials,forming a talent development model more aligned with industry needs.
●The Company has designated its experts to participate in professional master training and disciplineprogram discussions, and share practical experience at lectures in multiple universities such as YunnanUniversity, and Kunming University of Science and Technology to broaden channels for attractingtalents. ●The Company implements a diversified growth program for interns, categorizing internships intocognition internships, general internships, and xed-post internships. The program enhances workplaceexposure for interns while supporting talent development and reserve for the Company.
●In the spring campus recruitment of 2024, the Company concluded offline Job briefing sessions ata number of universities including Shenyang Pharmaceutical University, Peking University, ChinaPharmaceutical University, Fudan University, and Sichuan University. ●The synergy of offline campus recruitment presentations and information delivery at third-partyrecruitment platforms and employment websites of major universities has expanded our employer brandreach and attracted more fresh graduates to submit resumes.
●The Company has established a fair and transparent internal referral process, encouraging employeesto recommend outstanding candidates and thereby enriching the Company's talent pool.
●The Company adheres to the principles of fairness, impartiality, and openness in recruitment, withreasonable evaluation of position needs and development of annual recruitment plans to accuratelyidentify and attract suitable talent.
"Dr. Walvax" IP Image
Strengthening Governancefor Sustainable Growth
Innovation-Driven HealthEmpowerment
Community Co-development,Shared Health Benets
Green Development andEnvironmental Stewardship
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Empowering People,Energizing the Workplace
87 88
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
To adapt to industry trends, build strategic talent reserves, and boost the standard-based, intelligent and international developmentof the Company, Walvax College concluded two EMBA/MBA classes in February 2024, with 177 trainees from the middle-level andfrontline management. Focusing our core business areas, the classes introduced courses integrating business administration theorywith our corporate values to enhance the practical skills of trainees in standard-based and intelligent management, and cross-department collaboration. With graduation thesis, trainees were guided to propose e?ective solutions to problems based on the jobduties and the strategy of the Company, thus elevating their overall competence and problem-solving abilities.
Case Successful Conclusion of EMBA/MBA Classes in Walvax College
The E-learning platform of Walvax College is open to the Headquarters of Walvax Biotechnology, and its wholly-owned and holdingsubsidiaries. By integrating internal and external resources, the platform has provided employees with an access to independentlearning, knowledge accumulation, and innovation. In 2024, the E-learning platform introduced engaging activities such as the onlinelearning camp and the reading festival, and launched the "Learning Consulting" and "Community Interaction" modules, allowingexperience sharing and communication among employees. The platform upgrade has brought better interaction and more practicalfunctions, thus strengthening the learning-oriented organization capabilities of the Company.
Case E-learning Platform of Walvax College
Total courses launched:
1,000+
Total views:
7,933
Total learning hours:
110,000+
Highlighting employee growth, Walvax Biotechnology has customized training programs for new employees to meet theirdevelopment needs throughout the growth cycle. The specic training sessions involve our corporate values and guidelines, industrytrends and corporate strategies, product knowledge, quality management, cross-department process analysis, as well as careerplanning paths. Additionally, training sessions on GMP fundamentals, aseptic operation procedures, and safety management havebeen designed especially for new employees in production positions. These systematic training programs help new employees tinto their work environment easily, perform their duties according to standards, and collaborate e?ectively and grow continuouslyin their roles. Furthermore, we provide one-on-one mentoring throughout the probation period of new employees so that they canintegrate into the team smoothly.
In line with organizational development needs, Walvax Biotechnology continues to implement its talent succession program,integrating leadership competencies into the "1+3" job competency model to identify and develop high-potential managers.Respecting employees' personal aspirations, the Company has built a business-aligned, tiered leadership development systemthat supports forward-looking leadership cultivation across senior management, middle management, frontline management, andreserve managerial talent, providing employees with opportunities to step into leading roles. In 2024, targeted training was providedfor managers at di?erent levels, focusing on mindset, behavioral patterns, and leadership capabilities.
Onboarding Training
Leadership Training
Primary-levelemployee
Female employee
88.8 hours
86.3 hours
Mid-levelemployee
Male employee
71.6 hours
87.2 hours
Trainingcoveragerate bygender
Trainingcoverage rateby employeecategory
Senior employee
55.3 hours
Annual training hoursper employee
86.7
hoursEmployee trainingcoverage
100%
Total investment inemployee trainingRMB
504,100
Total employee traininghours
167,469.3
hoursTotal attendance of trainingthroughout the year
172,327
Female employees100%
Mid-levelemployees100%
Male employees
100%
Frontlineemployees
100%
Senior employees
100%
Averagetraining hoursper employee
by gender
Averagetraining hoursper employeeby employee
category
SeniorManagementMiddleManagement
Primary-levelManagementReserve Management Talent
High-potential talent training
Tiered leadership training
Talent Sources
SeniorManagement
MiddleManagement
Primary-levelManagement
Leader DevelopmentPaths
Succession Plan
Mature managers:
Leader of seniormanagers
●Successor DevelopmentProgram/LeadershipProgram (customizedtraining)
●Course training +external exchangesand visits + experienceexchanges
●Training program ofemerging leaders
●Capability identication+ course training+ action learning +mentoring
●Online and o?inelearning
●
Management trainingcamp/MBA
●
Course training asthe main + interactivediscussion + graduationthesis
Mental breakthroughBusiness thinkingStrategic thinkingLeadershipimprovementEmerging LeadersProgramSenior managers:
Leader of junior managers
BusinessmanagementTeam leadershipInterpersonalinteractionChange Adaptability
Emerging Talent Program
Junior managers:
Leader of individualcontributors
Role transformationTask managementTeam managementSelf-management
Training DirectionsTraining Approaches
Management capability training is conducted in alignment with business areas, with a focus on project management, stakeholder
communication, and related competencies.
Strengthening Governancefor Sustainable Growth
Innovation-Driven HealthEmpowerment
Community Co-development,Shared Health Benets
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Empowering People,Energizing the Workplace
89 90
To step up the leadership and project management capabilities ofproject managers, the Company organized a two-month projectmanagement training camp in 2024. At the o?ine training sessions,experts were invited to deliver lectures on project managementsystems, overall planning, risk control, and organizationalcoordination. Case study, hands-on exercises, and results-orientedmodels were adopted to guide trainees to generate five majordeliverables, namely project charter, work breakdown structure(WBS), schedule, stakeholder register, and risk register. Seniorinternal experts also shared hands-on experience, strengtheningparticipants' ability to apply theoretical knowledge and solve real-world problems. The program helped trainees gain a deeperunderstanding of the essential logic and practical methodologybehind e?ective project execution.
In 2024, Walvax Biotechnology launched a dedicated trainingprogram titled "Successful Product Managers," focusing on productmanagement and managerial competencies. The program aimedto systematically enhance the competitiveness and innovationcapacity of the product management team, while strengtheningbusiness collaboration and the development of a robust productmanagement system. In collaboration with Changsha HanrunpuEnterprise Management Co., Ltd., the Company also introduceda series of courses and reading activities under the theme "TheGentleman's Character and Managerial Cultivation," designed todeepen ethical awareness and leadership development amongmanagers, and to promote the integration of corporate values intoeveryday management practices.
Case Training Camp for Improvement of Project Management Capacity
Case Training on Product Management and Manager Competence
To support the professional growth of employees, Walvax Biotechnology develops annual professional expertise training plansfor departments aligning with the development goals of the Company. These training plans cover multiple business links such asR&D, clinical trial, production, quality, EHS, supply chain, and marketing. Tailored to evolving business needs, job requirements,and competence models, our training programs equip employees with the professional skills necessary to enhance their "tangiblestrengths" in career development. In addition, departments allocate dedicated training funds in their respective annual budgets,enabling employees to participate in external professional expertise programs as needed.
Walvax Biotechnology places strong emphasis on enhancing scientic literacy in vaccines among all employees and continues tostrengthen its training system for general skills. Focusing on key areas such as vaccine R&D, production, and quality control, theCompany regularly o?ers scientic knowledge and practical skill-building courses. In alignment with industry trends and regulatoryupdates, a hybrid learning approach has been adopted—integrating theoretical instruction, case studies, and simulation exercises—embedding scientic literacy into the Company's overall development framework of comprehensive skills for all employees. Sinceits launch in 2020, Walvax College's Basic Training Program on Vaccine Scientic Literacy has been conducted in four sessions.The fourth session, held in 2024, comprised 21 courses (48 class hours) covering essential topics including vaccine fundamentals,industry-specic knowledge, and the Company's operational processes. The program is designed to help non-technical sta? betterunderstand technical concepts and promote cross-functional collaboration. The Marketing Module of the First Session of theAdvanced Training Program on Vaccine Scientic Literacy featured four key components: classroom lectures, observation-basedlearning, knowledge assessments, and practical exercises. In addition, practical insights from frontline sales were introduced throughthe integration of the "Shishuo Xinyu" initiative, enhancing cross-departmental collaboration through a combined "theory + practice"model.
Training on Professional Expertise
Training on General Skills
Walvax Biotechnology actively leverages high-quality external training resources to support employees in deepening their expertiseand advancing their professional capabilities. In 2024, we partnered with multiple external institutions to launch a range of trainingprograms, providing strong support for employee development across various disciplines.Joint Training with External Partners
On-site practical training for middle-level and frontline managers were delivered in colaboration with Yunnan ChenwenTechnology Co., Ltd. to invite certied project management experts (PMI-PMP/PgMP/ACP) who have contributed tonational standard development.In partnership with Jiangsu Yunxuetang Network Technology Co., Ltd., the Emerging Talent Program–New ManagerTraining Camp (First Session) and the Training Camp for Improvement of Project Management Capacity werelaunched. These programs leveraged Yunxuetang's professional curriculum ecosystem to accelerate the growth of ourmanagement talent.We also invited professors from Hunan University, Southwest Forestry University, and Kunming Medical Universityto serve as instructors for the Training Program on Vaccine Scientic Literacy, incorporating academic expertise toenhance the specialization and credibility of the training curriculum.
Training on Gentleman's Character and Managerial Cultivation
Training Camp for Improvement of Project Management Capacity
The Stellar Training Program for R&D Talents (First Session) was launched with a focus on the "learning – thinking –practicing" development model. A variety of learning methods have been adopted, including structured coursework,collective book reading, mentoring, department rotation, and implementation of action-based learning. The program isdesigned to support the development of a strong and sustainable talent pipeline within the R&D departments.
In addition to internal training and assessment requirements outlined in the departmental training matrix, employeesengaged in special operations are required to undergo professional training at accredited third-party institutions inaccordance with external training regulations. Certicate renewal is subject to periodic re-assessment, in compliancewith the Management Regulations on Safety Technology Training and Assessments for Special Operations Personnel.
New employees are required to complete both general knowledge and professional training sessions, as speciedin the departmental training matrix, within the first 20 days of employment. Assessments are administered uponcompletion of each module. Regular training on quality control and product safety is also provided for all employees.For more details, please refer to the "Innovation-Driven Health Empowerment / Product Quality and Safety" section ofthis report.
R&D employees
Employees engaged in special operations
Production and quality control employees
Basic Training Program on Vaccine Scientic Literacy by Walvax College
Strengthening Governancefor Sustainable Growth
Innovation-Driven HealthEmpowerment
Community Co-development,Shared Health Benets
Green Development andEnvironmental Stewardship
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Empowering People,Energizing the Workplace
91 92
Employee Development
Anchored in the "Walvax Eight Competencies," Walvax Biotechnology has systematically defined talent criteria aligned with itsfuture strategic direction. Based on this framework, the Company has established a tiered and role-specic "1+3" job competencymodel, which has been deeply integrated into performance management, talent recruitment, training, and development processes—serving as a cornerstone for optimizing the overall talent management system. In line with the Management Measures for CareerDevelopment of Walvax Biotechnology, the competency model and corporate values are embedded throughout the careerdevelopment framework. This provides employees with clear, structured career pathways, enabling them to leverage their strengthsand create greater value in their roles.In 2024, the Company continued to advance its dual career development pathways, enabling employees to pursue growth andpromotion opportunities in both management and technical pathways, thereby removing the "ceiling" that hinders employees'career advancement. A new job grading system, aligned with the Company's strategic framework, was successfully implementedto promote consistency in talent management philosophy and practices across the Headquarters and its subsidiaries. In addition,a series of enhancement initiatives targeting the core management team were carried out, supporting the Company's goal ofcultivating a workforce that is more "professional, young, international, and Walvax-featured."
In accordance with the Performance Management Regulations of Walvax Biotechnology (Trial), the Company adheres to theprinciples of fairness, openness, and impartiality in evaluating employee and departmental performance. We adopt a multi-dimensional appraisal system that integrates self-evaluations, assessments by direct supervisors, and feedback from cross-functional teams, supported by multiple evaluation tools. The performance appraisal process is grounded in objective evidenceand takes into account a balance of results and responsibilities, behaviors and processes, short- and long-term objectives, as wellas internal and external benchmarks. This comprehensive and structured approach ensures that employees' contributions areaccurately recognized and fairly rewarded.The Company has established a robust performance communication and coaching mechanism, ensuring employees receive timely,continuous, and constructive feedback throughout the entire appraisal cycle. This supports employees in aligning with organizationalgoals and driving performance improvement. During the planning and implementation stages, departments are required to settransparent objectives and dene measurable outcomes. Managers provide feedback through both formal and informal channels,o?ering guidance and actionable suggestions. The Company also reinforces the PDCA (Plan Do Check Improve) closed-loop controlof the overall performance management, promoting accountability at all levels. The Human Resources Department is responsible forreviewing, consolidating, and communicating performance evaluation results, as well as following up on identied issues to ensuretimely corrective actions. An appeal mechanism is in place for employees to raise concerns or disagreements regarding appraisaloutcomes, thereby reinforcing procedural fairness and continuous improvement across the performance management system.If employees have objections to their performance appraisal results or are unclear about specific details, they may submit aPerformance Appraisal Appeal Form to their direct supervisor or the Human Resources Department within three working days ofreceiving the results, in accordance with the Company's Performance Appraisal Appeal and Feedback Procedures. Supervisors orthe Human Resources Department are required to handle the appeal and provide a formal response within seven working days.Upon conclusion of the appeal process, the Human Resources Department will promptly record any necessary corrections andensure they are applied to the nal appraisal results. In 2024, the Company launched the President's Email Inbox, which allows foranonymous or real-name submissions. Strict condentiality protocols are enforced to protect employee information. These e?ortsjointly contribute to a performance management system that ensures fair evaluations, e?ective appeals, and timely feedback.
Career Development
Walvax Biotechnology encourages and supports both full-time and part-time employees in pursuing academic degree enhancement,professional certications, and professional title attainment, with the goal of continuously improving their professional competencies.According to the Credit Management Measures and the Management Measures for Professional Titles of Walvax Biotechnology,employees may earn credits through training participation, title examinations, and on-the-job academic programs. These credits areincorporated into performance evaluations and considered as factors in promotion and salary adjustment decisions. Upon approval,employees are eligible for expense reimbursement and paid training leave, and may receive rewards for obtaining recognizedprofessional titles. These initiatives are designed to foster motivation for continuous self-development and encourage professionalgrowth across all regular employees, with 100% coverage. In addition, the Company actively collaborates with higher educationinstitutions to support employees in obtaining advanced degrees and job-related qualications, further empowering their professionaldevelopment.During the reporting period, 1 employee in the R&D division was awarded the title of Senior Research Fellow (Full ProfessorLevel); 10 employees were granted the title of Assistant Researcher (Intermediate Level); and 2 employees received Junior-Levelprofessional titles. Multiple professional certications were also newly obtained, including pressure vessel operation licenses. 6employees from the Bacterial Vaccine BU completed academic degree upgrades and applied for subsidies provided by the High-techIndustrial Development Zone. In the Recombinant Protein BU, 34 employees passed the junior-level professional title evaluation inpharmacy. 1 employee was nancially supported to pursue a master's degree at Fudan University, and core team members wereencouraged to participate in intermediate- and senior-level title training programs organized by the Shanghai Municipality.
Academic and Professional Credential Support
Walvax Biotechnology has established a structured remuneration system in accordance with its Remuneration ManagementRegulations, based on the 3P principle (Position, Performance, and Person). The system applies to all employees—including non-management and non-sales personnel—and consists of both xed and variable components. Variable income includes performance-based pay, bonuses, and allowances, which are closely linked to individual and organizational performance to maximize theincentive function of the remuneration mechanism. For senior management, compensation is determined based on their position,responsibilities, capabilities, and prevailing market salary benchmarks. The variable portion of their compensation is further tiedto the Company's operational performance and individual appraisal results, aligning their interests with the Company's long-termgrowth. For general employees, variable income is linked to the Company's performance, departmental results, and individualcontributions. A dynamic adjustment mechanism is in place, allowing compensation to increase or decrease in accordance withperformance outcomes. This system ensures that all employees receive remuneration commensurate with their work results, whilesupporting a decent work experience and high quality of life.We regularly monitor and assess market salary levels each year, and develop salary adjustment plans according to the marketdata collected and our operating performance to maintain competitive pay packages, and attract more talents for our crucial andstrategic positions. All employees and departments undergo regular performance appraisals in an objective manner. By referring tothe appraisal results, we determine and adjust the salaries for all positions, and design short-term and long-term incentive plans.Therefore, all managers and primary-level employees including non-sales employees receive fair and competitive remuneration thatfully reect their performance and contributions.
Remuneration Incentives
Performance Feedback and Appeals
Senior managers
Middle-level managers
Frontline managers
GurusSenior expertsCadre employees/expertsExperienced employees
Entry-level employees
Overarching Remuneration and Benet Packages
Walvax Biotechnology launches stock ownership and stock option incentive plans targeting senior executives and core employeesto align their remuneration expectations with the long-term goals and interests of the Company. These plans help attract top talentsand retain key employees, and promote mutual development and benets between the Company and its employees. In addition, theCompany has formulated a development-adapted recall and adjustment policy for employees' performances. In the stock incentiveplan, it is stipulated that if the assessment results suggest incentive targets fail to meet specied standards at the company levelor individual level, the corresponding stock incentives will be recalled. For details on employee stock ownership, please refer to the2024 Annual Report of Walvax Biotechnology Co., Ltd.
Employee Stock Ownership
Intrinsicmotivation
Belief
Professionalcompetence
Innovation
Traction
Action
Inuence
Teamspirit
Strengthening Governancefor Sustainable Growth
Innovation-Driven HealthEmpowerment
Community Co-development,Shared Health Benets
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Empowering People,Energizing the Workplace
93 94
The Company has developed an e?cient benet system for all employees. Apart from mandated basic benets, a wide range ofnon-salary benets have been provided to enhance employees' sense of belonging and happiness, and foster a warm and happyworkplace.Employee Benets
To enrich employees' daily experience and strengthentheir sense of belonging, Walvax Biotechnology launchedthe "WALVAX STYLE" brand series, covering catering,entertainment, sports, arts, and cultural activities. In 2024,the W COFFEE organized a variety of themed campaignstied to holidays and company culture, such as "Back toWork Day", "Crazy Thursday", "Women's Day Celebration",seasonal product launches, and the "W COFFEEAnniversary". To meet employees' dining needs, the Cafélaunched a new range of sandwiches, burgers, and cakes.It also developed a series of freshly made juice productswith distinctive flavors and healthy nutritional ingredients,encouraging employees to maintain a proper balancebetween work and rest and to better enjoy both work andlife.
Case "WALVAX STYLE" – Leisure & Wellness Experience for Employees
Social insurance package, housing provident fund, and paid leaves (including sick leave, work-related injuryleave, marriage and funeral leave, prenatal check-up leave, maternity leave, paternity leave, breastfeedingleave and annual leave)Basic benets
Physical or cash benets for holidays (such as Women's Day benets and reimbursement of women's healthfees)
Holiday benets
Annual physical examination, supplementary medical insurance (including accidental injury insurance,accidental medical insurance, and major disease insurance), and reimbursement of vaccination feesVaccines (for employees, their children and spouses, as well as parents of both employees and theirspouses), and medical mutual aid
Housing allowance, reimbursement of women's health fees, travel allowance, and employee canteen
AllowancesEmployee health
Organize a variety of cultural and entertainment activities, and establish the "Fitness Center" to encouragephysical exercise; provide psychological counseling services to guide employees to learn psychological self-regulationWork pressure relief
Care for special employee groups such as pregnant women, employees with disability, and employees indi?culty through various benets and assistance initiatives to alleviate their di?culties with true and warme?ortsCare for special employee groups
"Walvax STYLE Reading" World Reading Day Activity
Employee badminton competition
Tea culture learning activities
Walvax GYM"WALVAX STYLE" Moments
Fun sports meet
Strengthening Governancefor Sustainable Growth
Innovation-Driven HealthEmpowerment
Community Co-development,Shared Health Benets
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Empowering People,Energizing the Workplace
95 96
Impact, Risk, and Opportunity Management
Indicators and Targets
Walvax Biotechnology places signicant emphasis on human capital risk management. We precisely pinpoint key human capital riskdomains and, with a strategic-goal-oriented approach, persistently conduct the identication, assessment, response, and monitoringof human capital risks. Leveraging employee engagement surveys, we consistently refine our human resources managementstrategies across the entire spectrum of talent acquisition, development, deployment, and retention. This guarantees that humancapital development risks remain rmly within the controllable scope, enabling high-quality development to be realized by means ofa top-notch talent workforce.
Analysis of Human Capital RisksCoping Strategies
●
Risks of strategic and organizationaltransformation
●Scarcity of international-minded, multi-skilled and highly-procient talents ●Insu?cient talent reserve for long-termdevelopment ●Risks of diversity and inclusion
●Inadequate training and development ●Performance management risks ●Lack of competitiveness in ●salary and welfare or cost overruns ●Risks related to compliance ●Risks in organizational culture
●Risks of brain drain
●Refine the mechanism for identifying and assessing human capitalrisks, and keep the human capital risk inventory up-to-date on anongoing basis. ●Build a scientic human resources management system and implementa demand-driven strategic talent pool plan. Regularly conduct talentand organizational evaluations in line with the Company's strategic planand business development directions. E?ectively manage risks throughavoidance, mitigation or transfer. ●Define performance standards clearly, beef up communication andfeedback, and keep optimizing performance management tools andprocesses. ●Implement the talent development strategy of Internal Cultivationand External Recruitment, establish the "Ever-thriving Walvax" talentcultivation system, and supply the Company with high-integrity, high-caliber, high-drive and high-efficiency talents for its managementinnovation and business growth. ●Build a job competency model with Walvax's Eight Competencies asthe core benchmark. Intensify talent assessment and talent successionplanning. Boost employee engagement by means such as employeeengagement surveys, thereby reducing organizational risks.
The Company conducts regular employee engagement surveys, focusing on three dimensions and eight behavioral indicators ofengagement, along with four key drivers. These surveys comprehensively collect employees' opinions and suggestions. Based ondata analysis and employee feedback, we constantly improve our management practices.Employee Engagement Survey
In 2024, the Company launched a strategic and organizational capacity building project, which promoted a systematicorganizational upgrade through current-state diagnostics, organizational restructuring, and a series of transformativeinitiatives.The President's E-mail Inbox was established to widely solicit feedback and suggestions from all Walvax employeesregarding the Company's steady operations and development. This initiative fosters a culture of broad participation incorporate governance, supervision, and continuous improvement in management e?ciency.A front-middle-back o?ce structure was established as part of organizational transformation e?orts, aimed at enhancingcross-functional collaboration, reducing communication costs, and improving work e?ciency.Workload saturation analysis was carried out to enable balanced task allocation. A fast-response mechanism for employeefeedback was put in place, allowing for timely adjustments to work arrangements and strengthening employees' sense ofinvolvement.In response to relatively low satisfaction with welfare benets identied in the engagement survey, the Global BusinessUnit enhanced employee involvement in benets design and introduced diversied delivery methods, including physical/non-physical/cash incentives. As a result, welfare satisfaction increased by 12% year-on-year.
Management Enhancement Strategies Based on the 2024 Employee Engagement Survey
IndicatorTarget2024 Achievement Status
Coverage rate of employee performance evaluation100% among regular employees
Target achievedCoverage rate of employee training100% for all employeesFrequency of performance management optimizationAt least once
The Company has established a formal, accessible, and confidential grievance reporting mechanism that covers all full-timeand part-time employees. Employees are encouraged to promptly report any instance of unfair treatment to their immediatesupervisors or the Human Resources Department. Designated personnel are responsible for receiving and handling grievanceand whistleblowing reports. The Human Resources Department serves as the primary center for grievance management and, incollaboration with the Audit and Supervision Department, is responsible for case acceptance, investigation, resolution, and follow-up.Upholding the principles of authenticity, condentiality, and e?ectiveness, we ensure that all legitimate reports are promptly acceptedand independently investigated. Strict condentiality is maintained regarding the identity of complainants and the content of theirreports. We also take necessary measures to protect the safety and lawful rights of complainants. Any veried act of retaliation orinformation leakage will be dealt with seriously in accordance with relevant policies. In addition, the Company regularly audits theoperation of its employee communication and feedback systems to ensure that communication channels remain unimpeded and thatemployee concerns and grievances are e?ectively addressed.
Employee Communication and Engagement
Walvax Biotechnology provides employees with smooth, diversied communication channels and secure, condential grievancereporting mechanisms. These include the Workers' Congress, communication and exchange meetings, internal hotlines, reportingmailboxes, the President's email inbox, an online feedback platform, employee suggestion boxes, rationalization proposal initiatives,and comprehensive evaluations of middle managers' adherence to corporate values and codes of conduct. The Companycontinuously improves its reporting procedures and handling processes, ensuring that all employee feedback is duly acknowledgedand responded to in a timely and e?ective manner.
Communication and Grievance Reporting
A labor union has been established, alongside the formulation of theRegulations of the Workers' Congress of Walvax Biotechnology Co.,Ltd. Regular workers' congresses and employee assemblies are heldto fully incorporate feedback from employees and the labor union.The inbox is personally managed by the President, who independentlyaccesses and follows up on messages. All information from individualssubmitting opinions or suggestions is handled with strict condentiality.Both online and offline suggestion boxes are available, allowingemployees to submit feedback at any time. Anonymity andcondentiality are strictly protected, and all submissions are addressedand responded to within a specified timeframe. The online platformremains accessible 24/7 for continuous employee engagement.
The Workers'
Congress
Quarterly / Semi-Annually / AnnuallyPresident's E-mailInbox
Regular
Employee FeedbackPlatform
Regular
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
97 98
Strengthening Governance
for Sustainable Growth
Innovation-Driven Health
Empowerment
Community Co-development,
Shared Health Benets
Green Development andEnvironmental StewardshipEmpowering People,Energizing the Workplace
Occupational Health and SafetyWalvax Biotechnology strictly complies with applicable laws and regulations, including the Work Safety Law of the People's Republicof China, the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases, the Provisions on theSupervision and Administration of Occupational Health in the Workplace, the Regulations on the Safety Administration of HazardousChemicals, and the requirements of the ISO 45001 Management System. The Company has formulated a series of managementpolicies, procedures, and standard operating guidelines, including the Walvax Biotechnology Work Safety Responsibility Systemand the Walvax Biotechnology Safety Risk Classification and Control System, which apply to all employees, contractors, andsuppliers. Health and safety indicators are incorporated into the annual performance assessments of both senior executives andall employees, contributing to a strong and accountable safety foundation. In line with the principle of "safety first, prevention-oriented, and integrated governance," the Company has established the Safety Risk Evaluation Leadership Group, responsible forthe overall planning and oversight of safety risk prevention and control. Under this group, a safety risk prevention and control taskteam has been formed to implement a dual-prevention mechanism that integrates hierarchical safety risk management with theidentication and rectication of potential hazards. In addition, the Company maintains Individual Occupational Health MonitoringFiles for all employees to strengthen occupational health and safety risk management. For contractors, the Company enforcesstrict occupational health risk control measures throughout the entire business process—from contractor selection, contractualdisclosure, and entry requirements to training, ongoing supervision, and performance evaluation. During the reporting period,100% of employees in positions exposed to occupational hazards underwent health examinations. No new or suspected cases ofoccupational diseases were reported.
Amount invested in work-related injuryinsurance:
RMB
1.3504
million
Investment in health and safety:
RMB
4.4947
million
Coverage rate of work-related injury insuranceamong employees:
100%
The injury rate per millionworking hours:
0.44%
Shanghai Zerun has been certied under theISO 45001
OccupationalHealth and Safety Management System
We have established a systematic hazard identication and assessment mechanism. The resultsare directly applied to key decision-making processes, including design optimization, processselection, production layout, and equipment procurement, ensuring risk control is integratedthroughout the entire business chain.We classify health and safety risks into four levels—major, relatively major, moderate, andlow—and implement tiered control measures accordingly. For major and relatively major risks,we develop dedicated mitigation plans using diverse technical, engineering, and managerialapproaches such as design optimization, substitution, risk transfer, and isolation.We conduct routine inspections to identify potential safety hazards. Once identified, we takeimmediate corrective actions and implement real-time monitoring to ensure complete resolution.During the reporting period, we rectied 80 such hazards.
We have developed policies such as the Comprehensive Emergency Response Plan forProduction Safety Incidents, and continue to improve contingency plans for various safetyaccidents and public health emergencies. Regular emergency drills are carried out on scenariosincluding re safety, hazardous substance spills, as well as combating terrorism and preventingviolence.
EHS Daily Inspections
Fire Emergency Drill
HazardIdentication
andAssessment
PotentialHazardIdentication
andRectication
EmergencyManagementfor Health and
Safety
We foster a strong safety culture through initiatives such as Safety Production Month campaigns,safety knowledge competitions, recognition of outstanding safety performers, and regularsafety training. In 2024, health and safety training covered 100% of employees, with 4,547 totalparticipants and 6,413 cumulative training hours.
Health andSafety CultureDevelopment
HierarchicalManagementof Health and
Safety Risks
Occupational Health and Safety Targets2024 Achievement StatusOccupationalHealth Check-up
100% of employees receive pre-employment physical examinations100% of in-service employees receive regular health check-ups100% of employees undergo exit physical examinations100% ling rate of individual occupational health monitoring les
Target achieved
WorkplaceInspection
100% inspection coverage of workplaces with occupational hazard factors100% coverage of hazard warning signs in all workplaces; test result boardsare prominently displayed in main production areasProtectiveMeasures
100% distribution and usage rate of personal protective equipment (PPE)100% coverage of safety management qualications and hazardouschemical operation certicates across all R&D departmentsOccupationalDiseaseIncidence Rate
0% incidence rate of occupational diseases in the workplace0 major personal or equipment safety incidents0% incidence rate of acute poisoningProductionSafety
0 re or explosion accidents0 major safety accidents and 0 electric shock accidents0 electric shock accidents0 poisoning accidents0 biosafety incidents0 work-related fatalities
Strengthening Governancefor Sustainable Growth
Innovation-Driven HealthEmpowerment
Community Co-development,Shared Health Benets
Green Development andEnvironmental Stewardship2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Empowering People,Energizing the Workplace
99 100
GreenDevelopment andEnvironmentalStewardship
Annual increase in environmental protectioninvestment:
RMB
2.9732
million
Compliance rate for wastes emissions:
100%
Greenhouse gas emission intensity:
0.151
tons of CO
equivalent/RMB10,000 revenue
Environmental Management Enhancement
Walvax Biotechnology rigorously complies with environmentalprotection laws and regulations, including the Law of thePeople's Republic of China on Environmental Protection,Law of the People's Republic of China on the Preventionand Control of Atmospheric Pollution, Energy ConservationLaw of the People's Republic of China, Law of the People'sRepublic of China on Water Pollution Prevention and Control,and Law of the People's Republic of China on the Preventionand Control of Environmental Pollution by Solid Waste.The Company aligns its practices with standards such asISO 14001 Environmental Management System and ISO50001 Energy Management System to develop the WalvaxBiotechnology Environmental Management Policy andWalvax Biotechnology Emergency Response Plan for SuddenEnvironmental Incidents. We commit to environmentalobjectives through signed responsibility agreements, ensuringall operations adhere to applicable environmental regulationsin our areas of operation while minimizing ecologicalimpact. During the reporting period, the Company recordedno environmental pollution incidents, no exceedances inenvironmental monitoring, and received no environmentaladministrative penalties.
Total environmental protection investment:
RMB
2.9732
millionEnvironmental protection training coverage:
100%
General or above-level environmental accidents:
Shanghai Zerun achievedISO 14001
EnvironmentalManagement System certication
Walvax Biotechnology integrates environmental managementas a strategic priority at the Board level. The Board ofDirectors regularly assesses environment health safety (EHS)management implementation, assuming ultimate responsibilityfor climate and environmental management policies,objectives, strategies, structures, and execution. The Boardempowers the Sustainability Committee to comprehensivelyoversee climate and environmental issues, including reviewingenvironmental plans, examining policy implementation,and monitoring progress towards goals. The EHS WorkingGroup, reporting to the Sustainability Committee, tracks legaland regulatory developments, formulates and implementsEHS objectives and action plans. EHS departments areestablished at headquarters and all production units, with theCompany's senior leadership taking primary responsibility forenvironmental protection.The EHS management system encompasses 100% ofcompany operations. We conduct regular reviews andevaluations of the environmental management system'sperformance, incorporating it into overall performanceappraisals. Violations of national laws, regulations, or ourArticles of Association resulting in signicant decision-makingerrors, major safety incidents, or environmental accidents thatcause substantial adverse e?ects or economic losses to theCompany are subject to performance deductions based onseverity.
Walvax Biotechnology has implemented a comprehensive internal EHS audit mechanism that conducts regular environmentalaudits across all production units. These audits encompass a wide range of areas, including EHS compliance, pollution controlfacility operations, emissions of the three primary waste types, waste storage and disposal procedures, hazardous chemicalmanagement, environmental risk assessments, and emergency response planning and drills. The audit process is multi-faceted,comprising headquarters-led evaluations, cross-audits among subsidiaries, and stringent monthly self-inspections that involve seniormanagement participation. To ensure objectivity, we also engage qualied third-party monitoring rms to conduct standardized self-monitoring assessments. In addition to internal measures, each operational base actively collaborates with regulatory agencies andexternal stakeholders to facilitate various external environmental audits. This ensures the ongoing suitability and e?ectiveness ofour environmental management system. The Company employs a tiered approach to addressing audit ndings, setting correctiondeadlines based on the severity of issues identified. Dedicated departments are tasked with tracking the implementation ofimprovements to ensure timely resolution. For pollution prevention facilities operated by third-party companies, including onlinemonitoring equipment, we conduct rigorous supervisory spot checks at least once a week. These inspections focus on the third-partycompany's performance, the accuracy and timeliness of record-keeping, and the operational status of facilities. Detailed inspectionrecords are maintained, and clear responsibilities and deadlines for improvements are established. During the reporting period,100% coverage of all production units was achieved through internal environmental audits and external inspections by third-partyorganizations. A total of 8 environmental audits were completed across all plant areas, and 11 external environmental inspectionswere carried out by qualied third parties. All identied issues were rectied within the specied timeframes. Notably, the subsidiaryShanghai Zerun successfully obtained ISO 14001 Environmental Management System certication.The Company continues to refine its environmental risk control mechanisms in alignment with ISO 14001 EnvironmentalManagement System requirements. We conduct thorough environmental monitoring based on robust policies, including the WalvaxBiotechnology Online Monitoring Operation and Maintenance Management System and the Walvax Biotechnology Online MonitoringData Anomaly Handling Management System. These measures enable us to strengthen our assessment and control of variousenvironmental risk factors inherent in production and operations, thereby enhancing our environmental risk prevention capabilities.To ensure emergency preparedness, the Company has developed an Emergency Response Plan for Sudden EnvironmentalIncidents along with corresponding response cards. An emergency response team has been established and equipped withnecessary materials and tools. Regular, targeted environmental emergency training and drills are conducted to maintain operationalreadiness. During the reporting period, 100% of the Company's environmental monitoring data met compliance standards, and fourenvironmental emergency drills were conducted.
The Company places strong emphasis on environmental protection training and awareness. Employees are engaged throughvarious learning formats covering environmental laws, regulations, standards, internal policies, and implementation of environmentalmanagement practices. In addition, awareness of environmental protection is reinforced through campaigns and internal promotionalactivities, fostering a culture of environmental responsibility across the organization. The Company also actively participates inexternal training programs organized by the Department of Ecology and Environment of Yunnan Province. These include videotraining sessions on province-wide automated pollution source monitoring, online training on key areas of soil pollution preventionand control, and dedicated environmental management training for industrial parks.
The Company systematically evaluates the environmentalimpact of its operations, establishes clear environmentalprotection targets, and regularly reviews goal attainment andprogress, aiming at enhancing its environmental performancethrough closed-loop management.
Environmental Management Structure
Environmental Certication and Auditing
Environmental Risk Prevention, Control, and Emergency Management
Environmental Protection Training and PromotionEnvironmental Management Objectives
Achievement of environmental management
objectives: 100%100% legal compliance in all operations, with0 major environmental pollution incidents orcomplaints100% coverage of environmental education andtraining for all employees100% compliance rate for "three wastes" emissionsand boundary noise levelsAnnual growth rate of water and electricityexpenditure below the increase in managementexpensesProactive adoption and development ofenvironmentally friendly technologies, minimizingpotential environmental impacts throughout theproduct lifecycle, from R&D and procurement toproduction, distribution, and end-use
Conducting training on Enterprise EnvironmentalManagement and Requirements
Arbor Day activity themed on "Building a BeautifulCountryside and Supporting Rural Revitalization"
Strengthening Governancefor Sustainable Growth
Innovation-Driven HealthEmpowerment
Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Green Development andEnvironmental Stewardship
103 104
Climate Change MitigationWalvax Biotechnology adheres to the framework recommendations outlined in the IFRS S2 Climate-related Disclosures and the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For Trial Implementation).The Company is committed to exploring innovative green and low-carbon development pathways, offering solutions to addresshealth needs arising from climate change, and enhancing its capacity to respond e?ectively to climate risks.
Governance
Strategy and Approach
The Company has integrated climate change considerations into its sustainable development governance structure. The Board'sSustainability Committee spearheads the management of climate change-related matters, refining processes for identifying,assessing, managing, and disclosing climate risks and opportunities. Members of the EHS Working Group bring extensiveprofessional knowledge and practical experience to the table, enabling them to comprehensively and promptly identify climatechange risks and opportunities, formulate e?ective environmental protection policies and emission reduction plans, and ensure theirthorough implementation.
Walvax Biotechnology is dedicated to integrating climate risk management into its overall risk management system. This ensuresthat addressing climate change issues is a fundamental consideration in its strategic decision-making processes. The Companyhas positioned green and low-carbon development as a core element of its sustainable development strategy, integrating theseprinciples throughout the entire lifecycle of projects, from initial planning and design through to construction and operation. Thiscomprehensive approach serves to boost our climate adaptation capabilities.
Walvax Biotechnology conducts comprehensive analyses of the risks and opportunities arising from climate change. The Companydevelops targeted response measures to ensure its climate management strategy aligns with policy trends, market developments,and customer needs, thereby enhancing its resilience to climate risks.
Climate Resilience
Acute Risks
●
Extreme weather events such asheavy rainfall, heatwaves, typhoons,and oods resulting from climatechange may adversely a?ectcompany operations and supplychain continuity.
●Stringent temperature controlrequirements for vaccine production,storage, and transportation posechallenges, as high temperaturesand humidity uctuations maycompromise vaccine stability.Additionally, extreme weather eventsare likely to increase operationalcosts.
Operating revenue?
Operating costs?
Fixed asset value?
●Closely monitor climate change trends,develop comprehensive emergency plansfor extreme weather events, enhanceemergency response capabilities, andmaintain strict EHS risk controls. ●Incorporate regional climate risk assessmentsinto site selection, planning, and designprocesses for new projects. ●Install o?-grid lithium battery energy storagesystems to ensure emergency powersupply for critical equipment during poweructuations or abnormal situations. ●Implement safety stock strategies anddiversify suppliers to build a resilient supplychain.Chronic Risks
●Sea level rise ●Water resource scarcity
Operating costs?
●Regularly assess and track changes in waterresources and public utilities.
Policy andRegulatoryRisks
●Ongoing implementation ofclimate change mitigationpolicies and regulations, gradualadvancement of carbon emissionstrading mechanisms, and morestringent environmental protectionrequirements are leading toincreased constraints and costs forproject development and operations.
Operating costs?
●Closely monitor changes in international anddomestic environmental and carbon-relatedpolicies, mitigate risks through enhancedmanagement practices, and ensureregulatory compliance. ●Achieve green and low-carbon developmentby improving process equipment, optimizingenergy structure, and enhancing productione?ciency, thereby bolstering energy security.
Market andTechnologyRisks
●Long-term climate change is leadingto shifts in public health landscapes,potentially impacting vaccinecompanies' product R&D directionsand market strategies. ●Climate change is altering marketpreferences in certain regions,increasing costs for low-carbontransition, particularly upfrontexpenses for green and low-carbontechnology adoption.
Operating revenue?Operating costs?
●Monitor and assess the potential impactof climate change and natural disasterson disease patterns. Focus on cutting-edge technologies in the vaccine industry,strengthen feasibility studies on newtechnology applications, and foster industrycollaborations to proactively addresschallenges brought by evolving diseasespectrums. ●Conduct thorough cost-benet analyses andfeasibility studies before implementing low-carbon transition projects, selecting the mostviable solutions.Products andServices
●Identifying new businessopportunities in disease areasa?ected by climate change,developing innovative vaccinesolutions, and expanding intoemerging markets.
Operating revenue? ●Develop and provide cutting-edge vaccineproducts to address emerging health needswhile enhancing market competitiveness.ResourceE?ciency
●Optimizing both energy structure ande?ciency to achieve long-term stablepower supply and realize energy-saving benets.
Operating costs?
●Explore emission reduction potential andminimize energy consumption costs throughthe construction of proprietary photovoltaicfacilities and implementation of robust energymanagement systems.
Response MeasuresPotential Financial ImpactRisk/Opportunity DescriptionCategory
Review ESG-related risk and opportunity assessments, with a particular focus on climate change topicsApprove climate-related plans, targets, and response strategies, while overseeing their implementationEvaluate the e?ectiveness of climate change risk management and internal control systems
EHS Working Group
Ensure adherence to climate change-related action strategies, policies, regulations, and target indicatorsDevelop and implement specic plans to advance climate-related actions and support the realization of company-levelclimate strategies and plansConduct regular statistical compilation and reporting of relevant information and data
ESG O?ce
Coordinate the development of climate change-related action strategies, policies, regulations, and target indicatorsConduct thorough assessments and analyses of climate change risks and opportunitiesOrchestrate and drive the implementation of climate change actionsRegularly compile, track, and report on climate change-related data and progress towards targets
Physical
Risks
Transition
Risks
ClimateOpportunities
Decision-making Level
Execution Level
Management Level
Board of Directors and Sustainability Committee
Strengthening Governance
for Sustainable Growth
Innovation-Driven Health
Empowerment
Community Co-development,
Shared Health Benets
Empowering People,Energizing the Workplace
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Green Development andEnvironmental Stewardship
105 106
Walvax Biotechnology strictly complies with relevant legislation, including the Energy Conservation Law of the People's Republic ofChina and the Law of the People's Republic of China on the Promotion of Clean Production. The Company has issued institutionalguidelines such as the Walvax Biotechnology Energy Conservation and Emission Reduction Management System, and activelypromotes energy consumption and efficiency management in line with ISO 50001 Energy Management System standards.Employees are encouraged to adhere to clean production processes, and energy control indicators and targets are integrated intoannual performance evaluations as part of our proactive approach to climate change mitigation.
Energy Management
The Company has established a standardized energy management system and set up a dedicated equipment and energymanagement team to enable rened management of energy indicators and continuously improve its overall energy managementperformance.Energy Management Strategy
Energy Planning ManagementDevelop and rene plans to maximize
usage e?ciencyImplement rational energy use planning
to reduce production costsConduct thorough bill verication tostreamline expense payment and
settlement processes
Energy-saving Strategy Formulation
Enhance monitoring of energy-consumingequipment to improve utilization e?ciencyImplement integrated management ofenergy supply and consumption foroptimal usageConduct regular inspections to identify andeliminate energy wasteData Statistics and AnalysisMaintain detailed logbooks for energyconsumption and metering instrumentsImplement robust energy consumptionmonitoring to ensure optimal equipment
operationPerform in-depth data analysis andevaluation to inform energy-saving
measures
Compliance ManagementFacilitate e?ective coordination withgovernment departments and externalentitiesEnsure accurate and authentic reportingto energy consumption systemsMonitor regulatory and policy changes,providing timely support and guidance
Scope 1 and Scope 2 Emissions
●Capitalize on Yunnan's abundant hydroelectric resources by prioritizing low-carbonlocations during site selectionSource approximately 70% of electricity from hydropower
●Install large-capacity photovoltaic power stations on industrial park rooftops, enabling self-generation and self-consumption to boost economic benets and energy security ●Substantially increase the use of clean energy sources, such as natural gas and electricity(leveraging Yunnan's high proportion of hydropower), to replace traditional energy sources,thereby expanding the share of clean energy usage. During the reporting period, theCompany successfully transitioned from coal-fired to electric boilers, enhancing thermale?ciency and energy conservation benets. ●Streamline production management by strategically activating and deactivating HVAC forclean areas, steam generators, and pharmaceutical water systems based on productionrequirements; implement additional operational monitoring systems to regulate theactivation and deactivation of refrigeration units and pumps based on chilled water pipelinetemperatures, minimizing energy consumption ●Utilize HVAC systems for clean areas with real-time temperature and humidity monitoring,intelligently adjusting ventilation frequency and air volume; implement specialized gasmonitoring systems to enhance equipment automation control strategies, preventingunnecessary waste ●Implement upgrades to the Building Management System (BMS) and EnvironmentalMonitoring System (EMS) within the pneumonia vaccine bulk production workshop,ensuring stable control and real-time monitoring of temperature, humidity, and pressuredifferentials through automated control and precision adjustments to reduce energyconsumption ●Conduct regular energy conservation training sessions for employees to improve overallawareness and operational prociency ●Implement large-capacity condensate treatment units to enhance industrial steam systemcondensate collection, treatment, and reuse, boosting energy utilization efficiency andreducing carbon emissions ●Install standalone o?-grid lithium battery energy storage systems in key production buildingswithin the industrial park, featuring optimally designed capacity and operational controlstrategies to achieve "valley charging and peak discharging," optimizing energy allocationand smoothing peak demand ●Establish regionalized centralized heating, introducing an energy trusteeship managementmodel that combines biomass and natural gas heating, utilizing a dual-energycomplementary approach to supply steam for industrial park production, improving energyutilization e?ciency and mitigating environmental impact ●Integrate heat recovery units into air conditioning systems to harness waste heat fromdirect exhaust systems for heating or cooling fresh air, reclaiming thermal energy or coolingcapacity
Scope 3 Emissions
●Foster green supply chain development by prioritizing energy-e?cient equipment during theselection process ●
Enhance digital and intelligent infrastructure, implementing comprehensive vaccinetraceability and control systems throughout the entire process, while optimizing strategiesto reduce existing logistics-related carbon emissions
Energy StructureOptimization
ManagementEnergyConservation
Technical EnergyConservation
SustainableProcurementGreen Logistics
The Company has established and implemented carbon reduction targets, continuously advancing energy conservation andemission reduction initiatives. It also encourages suppliers to align with its environmental policies, fostering joint e?orts to addressclimate change.Energy Conservation and Emission Reduction Initiatives
Yuxi Walvax has implemented an innovative condensate recovery system that collects and transports high-temperature condensatefrom the industrial park to the boiler room. After treatment to meet required standards, it is repurposed as boiler make-up water. Thisproject achieves thermal energy recovery from condensate and promotes circular use of boiler water, signicantly enhancing energyutilization e?ciency and reducing industrial water consumption.
Case High-Temperature Condensate Recovery
Annual condensate recovery andutilization:
76,000
tons
Boiler thermal e?ciencyimprovement:
15%
Annual industrial steamsavings:
5,500
tons
CO
emissionreduction:
1,580
tons
Strengthening Governancefor Sustainable Growth
Innovation-Driven HealthEmpowerment
Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Green Development andEnvironmental Stewardship
107 108
Impact, Risk, and Opportunity Management
Emissions and Waste Management
To address potential risks and opportunities arising from climate change, Walvax Biotechnology has implemented a comprehensiveprocess and framework for managing climate-related risks and opportunities. This approach aims to identify, analyze, assess, andclearly understand the scope of climate change risks and opportunities, enabling more e?ective screening and management ofsignicant climate-related issues, thereby enhancing our climate resilience.
Pollution Prevention and Ecosystem Protection
IndicatorUnit2024
EnergyConsumption
DieselTons87Natural gas10,000 cubic meters340.87Purchased electricity10,000 kWh6,496.28Total energy consumptionTons of standard coal equivalent12,652.10Energy consumption intensity
Tons of standard coal equivalent/RMB 10,000 revenue
0.0448
IndicatorUnit2024
Greenhouse GasEmissions
Direct greenhouse gas emissions (Scope 1)Tons of CO
equivalent7,643.23Indirect greenhouse gas emissions (Scope 2)Tons of CO
equivalent34,859.04Total greenhouse gas emissions(Scope 1 and Scope 2)
Tons of CO
equivalent42,502.27Greenhouse gas emission intensity
Tons of CO
equivalent/RMB10,000 revenue
0.151
We employ internal and external environmental research and risk management tools to assess thelikelihood of risk occurrence, the degree of potential impact, and the level of nancial implications.This assessment helps us determine the most signicant climate change risks and opportunitiesfacing our organization.For identified significant climate change risks and opportunities, we develop tailored responsestrategies, managing them through a combination of avoidance, mitigation, and adaptationmeasures.Various functional departments, business divisions, and subsidiaries within the Companyconduct targeted risk management and response activities, regularly monitoring and tracking theimplementation progress of these strategies.
Drawing on recommendations from frameworks such as the IFRS S2 Climate-related Disclosures,we identify a range of climate risks and opportunities. This includes transition risks such as policyand regulatory risks, technology risks, market risks, and reputational risks, as well as acute andchronic physical risks.Identication ofClimate Risks andOpportunities
Management ofClimate Risks and
Opportunities
Materiality
Assessment ofClimate Risks andOpportunities
Indicators and TargetsIndicatorTarget2024 Achievement StatusGreenhouse gasemission intensity(Scope 1 andScope 2)
8% reduction by 2025compared to 2023baseline
7.3% reduction in annual comprehensive energy consumption
equivalent value of Yuxi Walvax, the Company's primary productionbase, compared to 2023
Walvax Biotechnology strictly adheres to relevant regulations, including the Regulations on Administration of Pollutant DischargePermits. Environmental protection requirements have been integrated into the Company's development strategy and corporategovernance processes. Systematic management measures have been formulated for exhaust gas, wastewater, and solid waste,with continuous monitoring of the treatment and discharge of these waste types. Monitoring data are reported and disclosed viathe National Pollutant Source Monitoring Data Management and Sharing System. The Company is committed to establishing anindustrial environment characterized by "no visible emissions, no detectable odors, no audible noise, and no perceptible dust." Fordetailed information on environmental protection permits, pollutant emissions, environmental emergency management, and self-monitoring plans, please refer to the Walvax Biotechnology Co., Ltd. 2024 Annual Report and Walvax Biotechnology EnvironmentalManagement Policy.
Note:
1. Total energy consumption is calculated in accordance with GB/T 2589-2020, as specified by the State Administration for Market Regulation and the
Standardization Administration of China.
2. Greenhouse gas emissions reported here refer exclusively to carbon dioxide emissions, excluding other greenhouse gases such as methane and nitrous oxide
from other emission sources. Scope 1 greenhouse gas emissions, derived from fossil fuel combustion activities (including diesel, gasoline, and natural gas)and industrial production processes, are converted to standard coal units as per the General Rules for Calculation of the Comprehensive Energy Consumption.Scope 1 greenhouse gas emission factors are calculated with reference to the Environmental Key Performance Indicators Reporting Guidelines issued by theNational Development and Reform Commission. Scope 2 greenhouse gas emissions encompass those from purchased electricity and heat, with electricityemission factors referencing the Announcement on the Release of Carbon Dioxide Emission Factors for Electricity in 2022 (Announcement No. 33 of 2024)jointly issued by the Ministry of Ecology and Environment and the National Bureau of Statistics.)
During the reporting period, the Company experienced no majorenvironmental incidents, nor did it face any penalties or legalaction from environmental authorities. There were no instancesof excessive or illegal emissions of exhaust gases or wastewaterpollutants, and no violations related to waste disposal.
Compliance rate for wastes emissions:
100%
IndicatorTarget2024 Achievement StatusSulfur dioxide emissions per RMB 10,000 output value1% reduction from previous year
Target achieved
Nitrogen oxides emissions per RMB 10,000 output value1% reduction from previous yearParticulate matter emissions per RMB 10,000 output value1% reduction from previous yearChemical oxygen demand emissions per RMB 10,000 outputvalue
0.5% reduction from previous year
Ammonia nitrogen emissions per RMB 10,000 output value0.5% reduction from previous yearCompliant disposal rate of hazardous and non-hazardous waste100% complianceWaste generation
Enhance the resource utilization ofwaste during the production processto reduce waste generation per RMB10,000 of output value
Strengthening Governancefor Sustainable Growth
Innovation-Driven HealthEmpowerment
Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Green Development andEnvironmental Stewardship
109 110
The Company's air emissions primarily consist of volatile organic compounds (VOCs), sulfur oxides (SOx), nitrogen oxides (NOx),and particulate matter generated during R&D and production processes. The Company strictly complies with applicable lawsand regulations, including the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution,the Emission Standard of Air Pollutants for the Pharmaceutical Industry, and the Emission Control Standard of Volatile OrganicCompounds for Industrial Enterprises. To further reduce emissions beyond regulatory requirements, the Company continues tooptimize its environmental treatment processes and has installed a range of high-e?ciency end-of-pipe control systems. Theseinclude high-performance air filters, UV photocatalytic oxidation units, activated carbon adsorption systems, and biologicaldeodorization equipment. All five air emission outlets have been designed and installed in accordance with national standards.Exhaust gases are treated through high-e?ciency ltration before being released into the atmosphere. In addition, real-time onlinemonitoring systems are in place to continuously track emissions and ensure full regulatory compliance.
IndicatorUnit2024
Total wastewater dischargeTons279,723.76Chemical oxygen demandTons7.71Ammonia nitrogen dischargeTons0.25
IndicatorUnit2024
Total exhaust gas emissionsTons24,566.23- Volatile Organic Compounds (VOCs) emissionsTons15.17- Nitrogen Oxides (NOx) emissionsTons26.39- Sulfur Oxides (SO
x) emissionsTons21.08- Particulate Matter (PM) emissionsTons4.70- Ammonia emissionsTons0.12- Non-methane HydrocarbonsTons12.12
In 2024, Yuxi Walvax continued to enhance its investment in wastewater treatment facilities, implementing advancedMBR (Membrane Bioreactor) technology for further processing of aerobic tank effluent. This initiative not only ensuredcompliance with discharge standards, further reduced concentrations of pollutants such as ammonia nitrogen, signicantlyimproving the overall e?ectiveness of wastewater treatment. A comprehensive upgrade of the existing wastewater treatmentsystem was undertaken, including the addition of aerobic tank media and a full automation overhaul. These improvementsboosted wastewater treatment capacity while simultaneously enhancing the industrial park's aesthetic appeal. The minimalodors generated by the wastewater treatment plant are naturally absorbed by surrounding vegetation, further mitigatingenvironmental impact.
The Company's wastewater is primarily generated from domestic sewage, discharges from the circulating cooling system, ande?uents from research and production activities. It strictly complies with relevant laws and regulations, including the Law of thePeople's Republic of China on Water Pollution Prevention and Control, Discharge Standard of Industrial Water Pollutants, andDischarge Standards of Water Pollutants for Pharmaceutical Industry Bio-pharmaceutical Category. The Company has alsoimplemented a series of internal guidelines, such as the Walvax Biotechnology Waste Liquid Disposal Standard ManagementProcedure, which regulate wastewater treatment procedures, monitoring protocols, and operational requirements.
Our drainage system separates rainwater from sewage, and clean water from wastewater. All biologically activewastewater undergoes high-temperature inactivation (121°C for over 30 minutes) before being mixed with otherproduction wastewater and domestic sewage. This ensures that all wastewater is collected through sealed pipelinesand fully treated in septic tanks and wastewater treatment facilities, meeting the Discharge Standards of WaterPollutants for Pharmaceutical Industry Bio-pharmaceutical Category (GB21907-2008) before discharge into themunicipal sewage network.We have implemented an online monitoring system for real-time wastewater discharge surveillance. The Companyoperates 3 discharge outlets: 1 main wastewater outlet and 2 rainwater outlets. Data from the main wastewateroutlet is linked to national, provincial, and municipal environmental protection departments, enabling joint monitoringof wastewater ow, pH value, chemical oxygen demand, ammonia nitrogen, and other discharge parameters.
Wastewater Management
Exhaust Gas Management
The Company generates a wide variety of waste, including general production solid waste, domestic waste, laboratory e?uents,waste organic solvents, waste alcohol, discarded hazardous chemicals, spent activated carbon, waste reagents, biological wastefrom R&D and testing, as well as pharmaceutical waste and expired drugs. In strict compliance with relevant laws and regulations,such as the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste and theMeasures for the Administration of Hazardous Waste Transfer, the Company has established internal protocols including the WalvaxBiotechnology Hazardous Waste Management Procedure and the Waste Disposal Standard Operating Procedure. These guidelinesensure comprehensive control of solid waste across the entire lifecycle, covering generation, storage, transportation, and finaldisposal.
The Company maintains dedicated hazardous waste storage facilities. Temporary storage ofhazardous waste strictly adheres to the Standard for Pollution Control on Hazardous WasteStorage (GB18597-2023) and local regulations at each operational site. Specialized personnel areresponsible for managing hazardous waste.Pharmaceutical waste, infectious hazardous waste, organic solvent waste, chemical reagentbottles, waste filters from contaminated areas, spent ion exchange resins, and spent activatedcarbon undergo on-site disinfection or sterilization. These are then stored separately from otherhazardous waste in designated areas before being transferred to qualied disposal facilities.Annual self-audits of hazardous waste management are conducted to identify and cataloghazardous waste. Timely disposal is arranged through certified contractors, ensuring propertreatment of all solid waste in the project area.
General production solid waste and packaging materials are collected and recycled as renewableresources by authorized waste collection stations. Waste from puried water preparation systemsand spent lters from sterile areas are regularly collected and disposed of by municipal sanitationdepartments.Domestic solid waste is uniformly collected and regularly disposed of by sanitation departments.Waste oil from grease traps is periodically removed by qualified contractors, while septic tanksludge is regularly cleaned and disposed of by local sanitation authorities.
Hazardous
Waste
Non-hazardousWaste
Waste Management
Strengthening Governancefor Sustainable Growth
Innovation-Driven HealthEmpowerment
Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Green Development andEnvironmental Stewardship
111 112
Resource Utilization and Circular Economy
Walvax Biotechnology utilizes advanced online analysis tools such as the World Wide Fund for Nature's Water Risk Filter and theWorld Resources Institute's Aqueduct Water Risk Atlas to assess water risks for its production units. Based on the assessmentresults, targeted risk prevention and mitigation measures have been developed to safeguard business continuity. The evaluationsindicate that the Company's major production and operational sites with higher water consumption are located in regions classiedwith low water resource risk.
Water Resource Management
Walvax Biotechnology rigorously complies with the water resource management requirements outlined in its EnvironmentalManagement Policy. The Company regularly conducts water risk analyses and implement a series of water conservationmanagement and technical measures focused on improving water resource utilization e?ciency. E?orts are also made to strengthenemployee awareness of water conservation, with the overarching goal of maximizing water resource utilization and minimizingenvironmental impact. During the reporting period, no major water resource-related compliance incidents occurred at any of ouroperating facilities.
Production Base
Water Stress
Level
Water Conservation MeasuresReclaimed waterreuse
Rainwaterreuse
Concentratedwater reuse
Condensatewater reuse
Other water-savingtechnical modicationsYuxi WalvaxLowYuxi ZerunLow
Assessment Process for Water Resource Risk
Establish water riskindicator database
Conduct risk exposure
assessment
Perform riskvulnerabilityassessment
Develop water risk
matrix
Formulate response
strategies
The Company adheres to the principles of reduction, resource utilization, and harmless treatment. We actively exploregreen, environmentally friendly technologies, optimize production processes, and prioritize the use of low/non-toxicchemicals to reduce process steps and hazardous waste generation. The material warehousing process has beenoptimized: after successful inspection and release approval, materials are now stored in their original packaging. Thiseliminates the previous need to remove and repackage materials into logistics boxes, enhancing operational e?ciency andminimizing environmental impact. Production–sales coordination has been strengthened to improve nished product yieldand minimize pharmaceutical waste, contributing to a continued reduction in hazardous waste emissions.
Improve resource utilizatione?ciency to reduce wastegeneration at the source
Promote circular economypractices and increase waste
recycling rates
Enhance supply chainmanagement of hazardous
waste
We employ a dual-circuit water supply system to prevent production and operational disruptions caused by watersupply interruptions.Our comprehensive, interconnected pipeline network forms a closed loop across various parts of the water supplysystem. This design minimizes the impact of maintenance-related water shutoffs, significantly enhancing watersupply stability in the park and e?ectively meeting the facility's water load requirements.We conduct regular inspections and maintenance, activating and deactivating water equipment and systems asneeded based on production conditions, to ensure that water supply can consistently support necessary productionoperations.
Biodiversity Protection
Walvax Biotechnology strictly adheres to biodiversity protection-related laws, regulations,and international conventions, including the Forest Law of the People's Republic of China,the Wildlife Protection Law of the People's Republic of China, and the United NationsConvention on Biological Diversity. The Company conducts regular assessments of itsoperational dependence on and impact to natural resources and integrates biodiversityprotection practices across the full project lifecycle—from planning and design to constructionand operation. Management requirements are clearly outlined in the Walvax BiotechnologyEnvironmental Protection Management System. At each critical stage, including site selection,construction, implementation, and project acceptance, emphasis is placed on protectingoriginal vegetation and natural habitats within project development areas. A precautionarystrategy of "avoid, reduce, restore, and o?set" is adopted to minimize ecological disruption.Furthermore, we strictly implement the "Three Simultaneities" system, ensuring thatenvironmental protection facilities for new, renovated, or expanded projects are designed,constructed, and commissioned simultaneously with the main project. This approach aims tominimize the impact on surrounding land and biological habitats during construction.
Water Risk ManagementIndicatorUnit2024Non-hazardous waste generatedTons1,941.35Non-hazardous waste recycled, utilized, and disposedTons1,941.35Hazardous waste generatedTons338.92- Medical waste (HW02)Tons197.53- Pharmaceutical waste (HW03)Tons77.33- Other hazardous wasteTons64.06Hazardous waste recycled, utilized, and disposedTons338.92Hazardous waste emission intensityTons/RMB 10,000 revenue0.0012
Strengthening Governancefor Sustainable Growth
Innovation-Driven HealthEmpowerment
Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Green Development andEnvironmental Stewardship
113 114
Green PackagingThe Company has established the Walvax Biotechnology Environmental Management Policy to define and enforce greenpackaging requirements. Our ongoing e?orts focus on improving the utilization e?ciency of packaging materials, contributing to thedevelopment of a resource-conserving society. Throughout our packaging design, production, distribution, transportation, and salesprocesses, we prioritize the use of recyclable materials. While ensuring compliance with GMP requirements, we aim to simplifypackaging as much as possible. Through internal circulation, resource recovery, and reuse initiatives, we promote the reductionof packaging materials throughout the product lifecycle, thereby minimizing our use of natural resources and our impact on theecological environment.
Walvax Biotechnology incorporates industry best practicesinto its business operations and services. The Companyconduct comprehensive water balance analyses to designand implement efficient water resource managementmeasures, aiming to achieve our water resourcemanagement objectives.
IndicatorUnit2024Total water withdrawalTons692,940.39- Tap water/Municipal water withdrawalTons692,940.39- Surface water withdrawalTons0- Groundwater withdrawalTons0Total water dischargeTons282,373.85- Municipal sewage network dischargeTons282,373.85- Surface water dischargeTons0- Other discharge methodsTons0Total water consumptionTons410,566.54Recycled water volumeTons87,476Water recycling rate%11.21%
Water conservation goal
WaterBalanceAnalysis
Rainwater
Reuse
RiskInspection
WaterConservation
WaterRecycling
Annual water savings throughcondensate water reuse:
approximately
76,000
tons
Overall wastewaterrecovery rate: over80%
Projected annual water savingsfrom reusing naturally cooledhot water:
85,000
tons
Water Resource E?ciency Improvement
●
We perform water balance analyses to measure and evaluate water supply, usage, and dischargein our factory production processes. Based on these ndings, we develop targeted measures toimprove water resource utilization e?ciency.
●We organize underground water supply pipeline leak detections, utilizing advanced technologiessuch as micro-detection probes and small robots. These tools allow us to comprehensivelyexamine our entire underground pipeline network for wear and deterioration, enabling promptidentication and repair of leaks and severely worn sections, thus reducing or preventing waterresource waste.
●Where environmentally permissible, we install rainwater reuse systems in our facilities. Thesesystems utilize clean rainwater for road cleaning, landscaping, and toilet flushing, therebyimproving our overall water recycling rates.
●We enhance precision control of water usage by selecting water-e?cient facilities and devicesduring project construction and operation, thereby reducing water resource consumption. ●We maintain detailed water usage records, categorizing and classifying water consumptionstatistics to accurately monitor usage patterns and optimize water resource allocation andutilization. ●We conduct regular, comprehensive inspections, renovations, and repairs of pipelines. We alsoprioritize the maintenance of water and special gas systems, promptly addressing leakage issuesto prevent unnecessary waste.
●Condensate water reuse: We actively promote water recycling technology in our projects, utilizingcondensate recovery units. All generated condensate is recovered, treated to standard at theboiler room, and reused. Our Yuxi Walvax park saves approximately 76,000 tons of water annuallythrough this process. ●Concentrated water reuse: We automatically recover a portion of concentrated water within ourpuried water preparation system, increasing the overall wastewater recovery rate to over 80%. ●
Reclaimed water reuse: We have established a reclaimed water treatment and reuse system.Treated wastewater is used for landscape irrigation, achieving zero discharge of productionwastewater while reducing water resource consumption. Hot water, after natural cooling, isexpected to save 85,000 tons of water annually when reused.
To progressively reducemunicipal water withdrawal perunit of revenue year-on-year
Strengthening Governancefor Sustainable Growth
Innovation-Driven HealthEmpowerment
Community Co-development,Shared Health Benets
Empowering People,Energizing the Workplace2024 Sustainability and Environmental, Social, and Governance (ESG) Report
Green Development andEnvironmental Stewardship
115 116
Key Performance Table
IndicatorUnit202220232024
Total assetsbillion RMB15.32815.58914.724Operating revenuebillion RMB5.0864.1142.821Net prot attributable to shareholders of the listedcompany
billion RMB0.7290.4190.142Total tax paymentbillion RMB1.0720.2970.139Annual R&D investmentmillion RMB1,052.8096910.6104700.4222R&D investment as a percentage of operatingincome
%20.70%22.14%24.82%Number of R&D personnelpersons179216172Proportion of female directors%18%18%18%Anti-corruption training coverage%100%100%100%E?ective report resolution rate%100%100%100%Labor contract signing rate%100%100%100%Social insurance coverage rate%100%100%100%Number of employees recruited during thereporting period
persons75540067Total number of employeespersons2,2492,3881,932Incidents of labor discriminationcases000Training coverage rate%100%100%100%Total employee training hourshours897,246.1270,079.9167,469.3Annual production safety incidentscases000Employee physical examination coverage rate%100%100%100%Occupational disease incidence rate%0%0%0%Total number of supplierscompanies324418486Number of suppliers certied to qualitymanagement systems
companies113146185Number of suppliers certied to occupationalhealth and safety management systems
companies395161Number of suppliers certied to environmentalmanagement systems
companies546971
Notes 1 & 2: Due to increased production demand, the total volume of wastewater discharged in 2024 increased, resulting in a moderate rise in the total dischargeof chemical oxygen demand compared to 2023. However, with the commissioning of a new wastewater treatment station equipped with ammonia nitrogen removalprocesses, the e?ciency of ammonia nitrogen reduction was signicantly improved, leading to a decrease in total ammonia nitrogen discharge compared to 2023.
IndicatorUnit202220232024
Customer complaint response rate %100%100%100%Customer complaint resolution rate %100%100%100%Annual product recall rate %0%0%0%Total number of countries and regionsexported to
No.181922Annual exports to developingcountries and regions
million doses7.56+9+Total cash donations for charitythroughout the year
million RMB7.059.18185.1069Annual incremental environmentalinvestment
million RMB10+2.16452.9732General or above-level environmentalincidents
cases000Total chemical oxygen demandemissions
tons4.125.837.71Total ammonia nitrogen emissions
tons0.220.260.25Total particulate matter emissions tons3.912.924.70Total nitrogen oxide (NO
X) emissions tons18.930.7626.39Total energy consumption tons of standard coal equivalent13,352.1013,466.9112,652.10Energy consumption intensity
tons of standard coal equivalent/RMB 10,000 revenue
0.02630.03270.0448Direct greenhouse gas emissions(Scope 1)
tons of CO
equivalent11,288.3410,331.047,643.23Indirect greenhouse gas emissions(Scope 2)
tons of CO
equivalent29,888.435,682.2534,859.04Total greenhouse gas emissions(Scope 1 and Scope 2)
tons of CO
equivalent41,176.7446,013.2942,502.27Greenhouse gas emission intensity
tons of CO
equivalent/RMB10,000 revenue
0.0810.1120.151Total water withdrawal tons506,360.9713,256.75692,940.39Recycled water volume tons/61,04087,476Water consumption intensity tons/RMB 10,000 revenue0.9961.7341.455Total volume of hazardous wastedischarged
tons421.602356.62338.92Hazardous waste emission intensity tons/RMB 10,000 revenue/0.00090.0012
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
117 118
Reporting Framework
Shenzhen Stock Exchange Sustainability ReportingGuidelines
GRI Standards 2021(Referenced Framework)
Message from theChairman
/2-22/2-23About WalvaxBiotechnology
/2-1/2-2/2-4/2-6/2-16/2-28/201-1Sustainable DevelopmentManagement
Article 12, Article 13, Article 14, Article 15, Article 17,
Article 18, Article 51, Article 52, Article 53
2-12/2-13/2-14/2-16/2-19/2-22/2-29/3-1/3-2/3-3Strengthening Governance for Sustainable GrowthGuidance Through PartyBuilding
/—Corporate Governance/2-9/2-10/2-12/2-15/2-27/405-1Business Ethics and Anti-corruption
Article 11, Article 19, Article 54, Article 55, Article 562-27/3-2/205-1/205-2/205-3/206-1Information security andprivacy protection
Article 11, Article 19, Article 48418-1Innovation-Driven Health EmpowermentR&D InnovationArticle 11, Article 19, Article 41, Article 42, Article 432-6/2-27/416-1Product quality and safetyArticle 11, Article 19, Article 472-25/2-27/3-2/416-1/416-2/419-1Professional CustomerService
Article 44, Article 472-27/417-1/417-2/417-3/418-1Sustainable supply chainArticle 11, Article 19, Article 44, Article 45, Article 462-6/3-2/204/308-1/414-1/414-2
Community Co-development, Shared Health BenetsHealth AccessibilityArticle 472-23/2-27/203-1/203-2Heartwarming CharityArticle 38, Article 403-2/203-1/203-2/413-1/415-1
Empowering People, Energizing the Workplace
Workplace Diversity andInclusion
Article 49, Article 502-7/401-1/405-1/406-1Human CapitalDevelopment
Article 11, Article 19, Article 50401-2/404-1/404-2/404-3Occupational Health andSafety
Article 50
403-1/403-2/403-3/403-4/403-5/403-6/403-7/403-8/403-9/403-10Green Development and Environmental StewardshipEnvironmentalManagementEnhancement
Article 29, Article 333-2/2-27/307-1Climate Change Mitigation
Article 11, Article 19, Article 20, Article 21, Article 22,
Article 23, Article 24, Article 25, Article 26, Article 27,
Article 34, Article 35
201-2/302-1/302-3/302-4/302-5/305-1/305-2/305-4/305-5Pollution Prevention andEcosystem Protection
Article 11, Article 19, Article 29, Article 30, Article 31
2-27/304-3/305-7/306-1/306-2/306-3/306-4/306-5/307-1Resource Utilization andCircular Economy
Article 34, Article 362-27/303-1/303-3/303-5
Index TableAbout This Report
Reporting Scope
Denition of TermsFor ease of reference and reading, "Walvax BiotechnologyCo., Ltd." is also referred to in this report as "WalvaxBiotechnology," "the Company," or "we."
Organizational Scope: The scope of this report aligns withthat of the annual consolidated financial statements of theCompany.Time Range: This report covers the period from January1, 2024, to December 31, 2024. Some information may beappropriately extended to previous or subsequent yearswhere relevant. This is an annual report; the previous editionwas released in March 2024.
Basis of PreparationThis report has been compiled according to the GRIStandards by the Global Sustainability Standards Board,the Shenzhen Stock Exchange's Guideline No.17 on Self-Regulation for Listed Companies — Sustainability Reporting(Trial) and the Guideline No. 3 on Self-Regulation for ListedCompanies — Preparation of Sustainability Reports (Trial),the European Sustainability Reporting Standards (ESRS),the national standard Guidance on Social ResponsibilityReporting (GB/T36001-2015), and the United NationsSustainable Development Goals (SDGs).
Assurance of Accuracy
Source of InformationAll data and information presented in this report are derivedfrom the Company's official documents, statistical reports,nancial statements, and sustainability-related data submittedby various business units and consolidated and veried by theCompany's sustainability management department. Unlessotherwise specified, all monetary figures in this report aredenominated in RMB.The Company assures that there are no false records,misleading statements, or significant omissions in thecontents of this report, and is responsible for its truthfulness,accuracy, and completeness. This report has been reviewedand approved by the Board of Directors and is released to thepublic.
Reporting PrinciplesThis report follows the principles of materiality, quantication,balance, and consistency.Materiality: Walvax Biotechnology conducts materialityassessments to identify and evaluate ESG issues that aresignificant to our business operations and to both internaland external stakeholders. The key material topics identiedthrough this process are highlighted in this report. For moredetails on the materiality assessment process and results,please refer to the "Materiality Assessment" section in thisreport.Balance: This report presents an objective and balancedview of the Company's ESG performance by disclosing bothpositive and negative information without bias. No signicantnegative events requiring disclosure were omitted during thereporting period.Quantication: ESG performance indicators are disclosed inquantitative terms, and measurable performance targets havebeen set when appropriate. The methodologies, assumptions,measurement standards, calculation tools, and sourcesof conversion factors used for key performance indicatorsare explained in the relevant sections of the report, whereapplicable.Consistency: The statistical methods and disclosureapproaches for the same indicators remain consistent acrossreporting periods. Any changes to the statistical or disclosuremethodologies are fully explained in the report's notes toensure meaningful analysis and evaluation by stakeholders.Report AvailabilityThis report is available in both printed and PDF electronicformats. The electronic version can be accessed on the o?cialwebsite of Walvax Biotechnology at https://www.walvax.com.To continuously improve our reporting practices, we welcomeyour feedback and suggestions. If you have any questions orcomments regarding this report, please contact us via emailat ir@walvax.com or by phone at +86 871-68312779.
This is the eighth Social Responsibility / ESG / Sustainability Report (hereinafter referred to as "this report") published by WalvaxBiotechnology Co., Ltd. (hereinafter referred to as "Walvax Biotechnology"). This report adopts an open and transparent approachto disclosing the Company's sustainability philosophy, management practices, and key performance, in order to e?ectively addressissues of concern to stakeholders.
2024 Sustainability and Environmental, Social, and Governance (ESG) Report
119 120