About This Report
This is the third Sustainability (ESG) / Social Responsibility Report disclosed by Zhonghong Pulin Medical Products Co., Ltd.Based on the principles of standardization, transparency, objectivity, and comprehensiveness, this report aims to demonstrateZhonghong Medical's performance and achievements in corporate governance, environmental protection, and social welfare toour stakeholders. We seek to enhance public understanding of our company's sustainability commitments and practices, whilecontinuously driving our improvement in ESG performance.
Preparation Basis
This report is prepared in accordance with theNo. 2 Guidelines on Self-regulation of Listed Companies on Shenzhen StockExchange - Standardized Operation of Listed Companies on the ChiNext Board, theSelf-Regulatory Guidelines No. 17 forCompanies Listed on Shenzhen Stock Exchange—Sustainability Report (For Trial Implementation)and theGuidelines No. 3of Shenzhen Stock Exchange for Self-Regulation of Listed Companies on the ChiNext Board— Preparation of SustainabilityReport, and with reference to theUN Sustainable Development Goals (SDGs),GRI Sustainability Reporting Standards (GRIStandards)issued by Global Sustainability Standards Board (GSSB) and other relevant standards. It also draws on the ESGtopics required by Wind ESG rating.
Reporting ScopeUnless otherwise specified, the information contained herein is ranged between January 1, 2024 to December 31, 2024. Forsome information beyond the above time frame, the report may date back to previous years or refer to later years. This reportcontains information on Zhonghong Pulin Medical Products Co., Ltd. and its subsidiaries and branches.
Data SourceUnless otherwise specified, the data contained herein are from the internal materials, investigation and interview records, andother relevant documents of the Company. The Board of Directors of the Company is responsible for the authenticity, accuracyand completeness of the report and assures that the report is free of misrepresentations or misleading statements. Thecurrency used in this report is Chinese RMB, unless otherwise specified.
Name AbbreviationsFor better expression and readability, “Zhonghong Pulin Medical Products Co., Ltd.” in this report is referred to as “ZhonghongMedical”, “the Company” or “we/our”. Subsidiaries involved in this report are:
“Jiangxi Kelun Medical Devices Manufacturing Co., Ltd.”, referred to as “Kelun Medical Devices”;“Jiangxi Zhonghong Pulin Medical Products Co., Ltd.”, referred to as “Jiangxi Zhonghong”;“Guilin HBM Health Protections,Inc.” referred to as “Guilin HBM”;“Shenzhen MedRena Biotech Co., Ltd.” referred to as “MedRena” .Branches involved in this report are:
“Tangshan No.1 Branch of Zhonghong Pulin Medical Products Co., Ltd.”, referred to as “ the First Tangshan Branch”;“Tangshan No.2 Branch of Zhonghong Pulin Medical Products Co., Ltd.”, referred to as “the Second Tangshan Branch”;“Tangshan No.3 Branch of Zhonghong Pulin Medical Products Co., Ltd.”, referred to as “the Third Tangshan Branch”;“Tangshan No.5 Branch of Zhonghong Pulin Medical Products Co., Ltd.”, referred to as “the Fifth Tangshan Branch”;“Tangshan No.6 Branch of Zhonghong Pulin Medical Products Co., Ltd.”, referred to as “the Sixth Tangshan Branch”;“Tangshan Color Printing and Packaging Branch of Zhonghong Pulin Medical Products Co., Ltd.”, referred to as the “ColorPrinting and Packaging Branch”.Report Access
You can download the Chinese and English versions of this report from our official website (www.zhonghongmedical.com). Incase of discrepancies, the Chinese version shall prevail.FeedbackPlease scan the QR code to leave your feedback.
About is ReportMessage from the ChairmanAbout Zhonghong Medical
Key Performance TableIndexOutlook for 2025
Product QualityResponsible Supply ChainPremium Service
Environmental ManagementResource UtilizationPollution PreventionGreen Oces
Ecological Protection:
Fostering a Green Homeland
Customer First:
Creating an Outstanding Brand
PART
PART
CSR Feature:
Leading the Digital and IntelligentMedical Care rough Innovation-DrivenDevelopment
Sustainability Management
CONTENTS
Employee RightsDevelopment and TrainingOccupational Health and Safety
Company-Employee Collaboration：
Securing a Bright Future
PART
Corporate GovernancePrudent OperationsBusiness Ethics
Governance Improvement:
Laying a Solid Foundation ofDevelopmentPART
Medical AccessibilityOpen CooperationCharity
Social Contribution:
Sharing Development Fruits
PART
Message from the Chairman
We sail forward and embark on a new journey bravely.
Sang Shujun, Chairman
We make steady advances in business expansion.In 2024, committed to our go-global strategy, we strengthened our presence in overseas markets. Our export business witnessedsteady growth, with the number of overseas clients increasing by nearly 10% year over year and our products sold to over 80countries and regions. To explore the “second growth curve” , we invested in Wismed Intelligent Technology (Beijing) Co., Ltd.,ushering in a new era of digital vital sign management and injecting fresh momentum into our long-term development.We pursue green development by practicing low-carbon principles.In 2024, guided by China’s 30?60 Decarbonization Goal, we were devoted to a green and low-carbon development path. To addressthe risks and opportunities posed by climate change, we optimized production processes, enhanced energy efficiency, andreduced pollution and greenhouse gas emissions. We also accelerated our transition toward green production and operations, built“green factories” and “zero-waste factories,” and fostered a green workplace. These efforts contributed to the harmony betweenpeople and nature.We make an intensive effort to set a benchmark.In 2024, our three business segments progressed in synergy. Leveraging our high-quality products and services, we establishedlong-term partnerships with more than 3,000 hospitals. With our excellent strength and industry influence, we have been listed asone of China’s top 50 medical device companies for three consecutive years, and we have made it to the “Top 500 Most ValuableChinese Brands” ranking. We have received 23 prestigious industry awards, contributing our strength to product R&D, healthcareaccessibility, and philanthropy.Looking ahead, Zhonghong Medical will leverage the leading role of innovation and take concrete actions to embed sustainabilityinto every aspect of our operations, advance ESG practices, and unite behind the goal of “becoming the future-leading smartZhonghong Medical and a trustworthy century-old enterprise,” composing a new chapter of corporate responsibility.Arduous as the journey may be, we will always forge ahead.
The year 2024 marked the 75th anniversary of the People’s Republic of China and a pivotal year for achieving the goals outlinedin China’s 14th Five-Year Plan (2021-2025). Under our corporate mission of “fulfilling the dream of growth for a healthy life”,Zhonghong Medical serves the Healthy China strategy and embraces opportunities presented by new quality productive forces. Wealso accelerate sci-tech self-reliance and self-strengthening at higher levels and drive digital transformation. Answering the call ofour times, we fulfill social responsibilities and steer the Company toward high-quality development with sound ESG performance.
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About Zhonghong Medical
Zhonghong Pulin Medical Products Co., Ltd.(“Zhonghong Medical”), founded in 2010,is a core member of Xiamen ITG HoldingGroup Co., Ltd. (one of Fortune Global 500companies). Focusing on the healthcareindustry, Zhonghong Medical is engaged inthe research and development, productionand sales of high-quality disposablehealth protection products, medical sterileequipment, comprehensive life supportsolutions and other medical consumablesand equipment. During the reporting period,we had three major business divisions,i,e, Health Protection, Safe Infusion, andInnovative Incubation, and five productionbases in Tangshan in Hebei, Jiujiang inJiangxi, Yichun in Jiangxi, Guilin in Guangxi,Shenzhen in Guangdong. Our overseasbases are under preparation. We have aR&D system formed by Tangshan ResearchInstitute, Shanghai Research Institute (to bebuilt), Yichun Research Institute, ShenzhenResearch Institute, Guilin Research Instituteand Hainan Subsidiary. The Companyis a national high-tech enterprise, one oftheTop 500 Most Valuable Chinese Brands,among the top 50 listed medical equipmentcompanies in China, and is selectedamong the “the world-class specialized andsophisticated model enterprises”. GuilinHBM is selected as a national specializedand innovative "little giant" enterprise.
Company Prole
Our History
The Company acquired Guilin HBM Health Protections,Inc., todevelop latex gloves and condom products.
The Company acquired Shenzhen MedRena Biotech Co., Ltd.
The Company established Beijing Zhonghong Pulin ReproductiveMedical Technology Co., Ltd.
The Sixth Tangshan Branch was established, and the firstworkshop started construction.The Company was renamed as Zhonghong Pulin MedicalProducts Co., Ltd.The United Medical Inc was established.Jiangxi Zhonghong Pulin Medical Products Co., Ltd. wasestablished.The first phase project of Jiangxi Subsidiary was started, andthe second phase project of the Sixth Tangshan Branch wasput into operation.Continental Medical B.V. was established.The Company started the IPO declaration.The Company started construction of Jiangxi Base Phase II.
Zhonghong Pulin Medical Products Co., Ltd. waslisted on the ChiNext Board of Shenzhen StockExchange (SZSE).20212015-2020
2023
The Company acquired Jiangxi Kelun Medical DevicesManufacturing Co., Ltd., to expand its business of safeinfusion.
2022
Zhonghong Medical Supplies (Hainan) Co., Ltd.( HainanSubsidiary) was established as a medical transformationand R&D platform.
Our company was founded.We undertook the glove assets and businesses ofTangshan Zhonghong Pulin Group Co., Ltd., includingthe First Tangshan Branch, the Second TangshanBranch, the Third Tangshan Branch, the Fifth TangshanBranch, as well as Tangshan Color Printing PackagingBranch.
2010-2014
We held hold equity of Wismed Intelligent Technology(Beijing) Co., Ltd and work to establish a long-termand comprehensive strategic partnership with it.
2024
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Delving into healthcare industry, Zhonghong Medical is committed to becoming a digital modern enterprise benefiting allstakeholders and leading the industry's future development. We strive to become a healthy and sustainable century-old enterprisethat is trusted by customers, employees, partners, shareholders and the society. Guided by the corporate mission, the Companybuilds a career platform to fulfill employees' dreams of career development and personal growth. We provide the first-classproducts and services to help the customers create a healthy and quality life. We also operate for good, contributing to the healthyand sustainable development of a better society and creating values for stakeholders constantly.
Becoming the futureleading smart enterprise
Become a trustworthycentury-old enterprise
We strive to build the industry's first-classdigital and intelligent management system andoperation platform, which will greatly enhanceour competitiveness and operational efficiency;After building an industry-leading R&Dsystem across the country, our products andtechnological innovations will become stronger.With improved innovation sense and ability,we will continue to lead the market and theindustry development;Putting people first and going beyondprofitability, we are dedicated to creating apositive and sincere energy field of ZhonghongMedical to benefit all stakeholders;We uphold the principle that 'a rising tide liftsall boats,' committed to enabling millions ofZhonghong families to achieve progressiveprosperity—from basic sustenance to comfortableliving, and ultimately to premium quality of life.
Being integrity-oriented, we strive to build long-term mutually beneficial partnerships withstakeholders, and establish deep emotionalconnections with customers;We will forge a dynamic staff team with top-notch professional competence, build a soundinternal training system and talent echelon, andbecome the preferred development platformfor excellent talents;We work to establish an institutional mechanismwith Zhonghong characteristics to enhance therisk resistance capacity;Adhering to long-termism, we will steadilyrealize the long-term goals, expand thescale and efficiency, improve the brand andstatus, and become an industry-leading andsustainable century-old enterprise.
Corporate Vision
A future-leading smart ZhonghongMedical and a trustworthy century-old enterprise
Corporate Culture
CorporateMissionZhonghong’sAspiration
CoreValuesThePrincipleof Pulin
Fulfill the dream ofgrowth for a healthy life
Sincerity and excellenceDevotion and ambition
First-class leadershipFaithful responsibilityDiligence firstMutual progress
AltruismWin-win outcomes
Talent concept
Quality concept
Innovation concept
Cost concept
Utilize employees’ strengthsHire excellent talents
Strict quality controlStandards enforcement
Innovate in integrationTranscend in learning
Lean management
Driven by data
Zhonghongcharacters
Zhonghongtaboos
VisionViolating safety protocolsAweCrossing the bottom-line of integrityTolerance Engaging in cliquesDisciplineSpreading negativityBoldnessLacking cost awareness
ResilienceNeglecting quality controlResponsibility Disclosing confidential information
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Haopin Youxiang (Beijing) Information
Management Service CenterChina Industry News National Brand
Research Center
Honors
Zhonghong MedicalGuilin HBM
MedRena
Hebei Province ManufacturingSingle-item Champion EnterpriseHebei Provincial Department ofIndustry and Information Technology
The sixth place in the “ESG TOP 20 A-Shares
Listed Medical Device Companies”ESG Task Force, China Association for
Medical Devices Industry
2024 Guangzhou High-End Medical Device
Exhibition’s “Special Advisory Unit”Professional Committee on InnovationServices, China Association for Medical
Devices Industry
2024 Best Listed Company Board Practice
China Association for Public Companies
2024 Outstanding Listed Company Board Office
Practice
China Association for Public Companies
Top 100 Enterprise in China’s Rubber IndustryChina Rubber Industry Association
2024 Top 10 Innovative Biotech Company
Golden Cane Award
Top 50 Medical Device Companies by Revenue
Qinshan Pharmaceutical ForumOrganizing Committee
2024 CLS Zhiyuan Award – ESG Pioneer Award
CLS
2024 Chinese Enterprise ESG Practice Observation Report
Outstanding Social Management Practice (S) Case
China Times
Top 500 Most Valuable Chinese Brands
The Evaluation Center of Brand Union
(Beijing) Consulting Co., Ltd.
2nd Guoxin Cup ESG Golden Bull Award Top
20 in GovernanceChina Securities Journal
2024 Listed Company ESG Value
Communication Award
Shenzhen Value Online Information
Technology Co., Ltd
GoldenBee Excellent Corporate Sustainability Report2024 Customer Information Disclosure Award
GoldenBee ThinkTank
Excellent Enterprise in Digital andIntelligent ApplicationsKingdee CIO Achievement Program
2024 Quality Benchmark Best Practice
China Association for Quality
Specialized and sophisticated SME in Guangxi
Zhuang Autonomous Region
Department of Industry and Information
Technology of Guangxi Zhuang
Autonomous RegionGuangxi Smart Factory Model EnterpriseDepartment of Industry and Information
Technology of Guangxi Zhuang
Autonomous Region
Waste-Free Factory in GuilinGuilin Bureau of Industry and
Information TechnologyYongfu County 2023 Industrial Vitalization
Employment Encouragement Award
CPC Yongfu County Committee & Yongfu
County Government
Yongfu County 2023 Industrial Vitalization
Tax Contribution AwardCPC Yongfu County Committee & Yongfu
County Government
2024 Top 100 Specialized and SophisticatedEnterprise in Greater Bay Area
Organizing Committee of the Greater BayArea Innovation Festival & Shenzhen-Hong
Kong-Macao Innovation Conference
High-Tech EnterpriseShenzhen Science and Technology
Innovation Commission
Specialized and sophisticated SMEService Bureau for Small and Medium-Sized
Enterprises
Innovative SME
Service Bureau for Small and Medium-Sized
Enterprises
Title of “National Brand & Domestic Excellence”
2023 AAA Integrity Enterprise of Shenzhen
Pingshan DistrictPingshan District Social Credit System Building
and Coordination Office
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Sustainability ManagementUnder our corporate mission of “fulfilling the dream of growth for a healthy life,” Zhonghong Medical embeds sustainabilityprinciples into the Company’s development strategy and daily operations. We continue to enhance our sustainability managementframework, optimize sustainability disclosure mechanisms, and maintain communication with stakeholders to drive high-qualitygrowth while balancing environmental, social, and economic benefits.
Given our strategic needs, Zhonghong Medical has refined the sustainability framework centering around the Board of Directors.We have established a three-tier structure—decision-making, management, and execution—designating the Board as the highestdecision-making body for ESG matters. The Strategy and Sustainability Committee sits under the Board and a cross-departmentalESG Task Force is established to ensure that sustainability principles are integrated into R&D, production, and operations through atop-down collaborative mechanism.
Sustainability Management Structure
Board ofDirectors
Strategy and Sustainability CommitteeStudy and formulate the Company’s sustainability strategy;Manage and oversee sustainability-related impacts, risks, andopportunities, and propose recommendations;Review the compliance and materiality of the Company’s sustainability report;Other responsibilities.
ESG Task Force
Define key objectives and action pathways for the Company’s sustainabilitystrategy to ensure that ESG work is aligned with business operations;Develop and refine ESG policies, frameworks, and processes;Coordinate internal departments, bring resources together, and drivesustainability project implementation;Other responsibilities.Company departments
Understand stakeholder expectations and needs timely;Execute ESG tasks according to established deadlines and schedules;Regularly report sustainability practices, performance indicators, and typicalcases;Other responsibilities.
Zhonghong Medical conducts regular materiality assessments to identify ESG topics of stakeholder concern. In 2024, based onthe Company’s database of ESG topics, we conducted stakeholder surveys through questionnaires to identify, evaluate, screen,and prioritize ESG topics. Eventually, the 2024 materiality matrix was finalized, which serves as the foundation for this report.
Materiality Assessment
We gather existing ESG practices, challenges, and plans from various departments to create apreliminary ESG topic list.We refine the list of ESG topics by referring to domestic and international standards, industry bestpractices, and ESG disclosure guidelines.We add ESG topics that could significantly impact the Company based on global ESG trends, nationalpolicies, and industry regulations.
Establishinga topicdatabase
ConductingsurveysamongstakeholdersScreeningandprioritizingissuesReviewingandconfirmingissues
We distribute questionnaires to track stakeholder concerns and expectations regarding ESG topics.We analyze survey results and quantify the attention paid to and materiality of ESG topics for subsequentprioritization.We assess the potential impact of ESG issues on the Company’s financial performance, operationalefficiency, and long-term growth.We evaluate the impact materiality of ESG topics from a stakeholder perspective.We visualize the prioritization of ESG topics to identify high-priority material topics.The ESG Task Force conducts an initial review of selected ESG topics to ensure comprehensiveness andrepresentativeness.The Strategy and Sustainability Committee finalizes the ESG topic list based on corporate strategic goalsand resource allocation.The Board of Directors confirms the 21 ESG topics to align them with corporate governance objectives.
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Environmentalresponsibility
Climate change andcarbon emissionsUse of resourcesWaste and pollutantdischargeGreen office
Productresponsibility
Product quality and safetyResearch, technology, andinnovationHealthcare accessibilityData security and privacyprotectionResponsible marketingHigh-quality customerservice
Governanceresponsibility
CorporategovernanceInvestor relationsmanagementBusinesscomplianceBusiness ethics andanti-corruptionBuilding aresponsible supplychain
Socialresponsibility
Equal employment andprotection of rights andinterestsEmployee training anddevelopmentOccupational healthand safetyEmployee careIndustry developmentSupport forcommunity-basedcharity
Zhonghong Medical upholds an open, transparent, and responsible approach to realizing extensive stakeholder communication.Through structured engagement mechanisms and diverse interaction methods, the Company listens to stakeholder expectationsand ensures targeted responses to various concerns. During the reporting period, the Company identified seven key stakeholdergroups: government and regulators, shareholders and investors, customers, employees, suppliers and partners, environment, andcommunities.
Stakeholder Communication
Signi?cance to Zhonghong MedicalExtremely high
Extremely high
High
Signi?cance to stakeholders
1812
Zhonghong Medical Materiality Matrix
Government andregulators
Compliance with laws andregulationsResponse to national strategiesStandardized corporategovernanceAnti-corruption and integrity
Implementation of regulatory policy guidelinesParticipation in survey and visitsDaily supervision and reportingInformation disclosure
Shareholders and investors
Stable business performanceSound corporate governanceTransparent informationdisclosureComprehensive riskmanagementProtection of stakeholder rightsand interests
General meeting of shareholdersPeriodic reports and information bulletinsInvestor surveys and communicationmeetingsRoadshows and reverse roadshowsOnline communication platforms
Customers
Responsible marketingProtection of customer rightsand interestsImprovement of service qualityUnblocked service channelsR&D of innovative products
Responsible marketing system documentsCustomer complaint handlingProduct presentationCustomer discussion and return visitsOfficial website, official WeChat account, APPand other communication platforms
Employees
Protection of employee rightsand interestsPromotion of employee growthOccupational health and safetyCompensation and benefitsInclusion and diversity
Labor unionEmployee seminarsInternal training systemPerformance and compensation managementsystemLabor union’s cultural and caring activitiesSuppliers and partners
Consultation on an equal footingHonesty and integrityComplementary advantagesMutual benefits
Exchange and visitsSeminarsSigning of agreementsIndustry research
Environment
Energy saving and emissionreductionGreen manufacturingGreen operationGreen supply chains
Implementation of energy saving andemission reduction policiesEnvironmental data collection and disclosureDigital energy management platformEco-friendly charity activities
Communities
Sudden disaster and accidentresponseDevotion to public welfareResponse to social concerns
Emergency response trainingNational thematic public welfare activitiesCharity fund
Stakeholders Expectations and appealsWays of engagement
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CSRFeature
Leading the Digital and IntelligentMedical Care Through Innovation-DrivenDevelopmentUpholding the innovation concept of "innovate in integration and transcend in learning", Zhonghong Medical launches high-performance and targeted medical products to satisfy the diversified needs of the market. Meanwhile, the Company leveragesdigital technologies to realize product R&D upgrade and has developed high-quality and innovative medical consumables andequipment. Our intelligent upgrading of medical products facilitate our transition to a leading innovative intelligent and inclusivemedical solution provider in the industry.
Zhonghong Medical has established an all-round R&D innovationmanagement system encompassing theReward Measures for R&DAchievementsand theNew Product Development Management Measures,etc., which standardizes the R&D process and improves R&D efficiency atthe institutional level. Each year, the Company invests heavily in buildinginnovation platforms, introducing R&D personnel, and transforming scientificand technological achievements. Close partnerships are also establishedwith several universities and research institutions to ensure the Company'sleading position in technology.
Orienting Product R&D to Medical Frontier
Technological breakthroughs
Zhonghong Medical has developeda way to test the total migrationof food-contact nitrile gloves.Through optimization andadjustment of raw materials,formulas, and productionprocesses, significantly reducingthe total migration of nitrilegloves to meet food contactrequirements.
Guilin HBM proposed the technicalrequirements for “Six-Protection”nuclear radiation protection gloves andconducted a one-year scientific researchwith the joint R&D team from GuilinUniversity of Technology. Benchmarkingthe structure and performance ofadvanced enterprises’ anti-radiationgloves, Guilin HBM developed keymaterial systems and forming processesfor multi-layer nuclear radiation protectiongloves with a chemical protection layer,a white warning layer, a nuclear radiationprotection layer, and a wearing inner layer.
In response to the clinical needsof products such as nutritionpumps, syringe pumps, infusionpumps, infusion informationcollectors, and pumps forpets, MedRena conductedtechnical transformation andupgrading by optimizing productfunctions, structural design,and appearance, after clinicalapplication training and productperformance tests.
Zhonghong MedicalGuilin HBMMedRena
RMB
98.3142
millionR&D investment
R&D personnel
In 2024
Innovation-led changesMedispo nuclear grade protective glovesAfter years of scientific research, Medispo successfully developed nuclear gradeprotective glovebox gloves, including long-life, high-performance and long-armnuclear protection gloves, long-life and high-performance chloroprene rubberglovebox gloves, long-life and high-performance butyl rubber glovebox gloves,long-life and high-performance nitrile rubber glovebox gloves, and natural latexglovebox gloves. The outstanding performance of the long-life, high-performanceand long-arm nuclear protection gloves can be used to handle harsh conditionssuch as heavy oil, strong acids, and strong alkalis in extreme nuclear radiationenvironments. It can also meet operational needs in different conditions, makingit the first of its kind in China.Medispo indicator surgical gloveThe unique dual color configuration provides double peace of mind and greatlyreduces the perforation rate of gloves. At the same time, utilizing the negativepressure principle of double-layer gloves, once the outer layer leaks, it will quicklydevelop and improve the recognition rate after perforation. It is applicable tohigh-risk operations such as AIDS and hepatitis, effectively reducing the risk ofoccupational exposure, indicator surgical glove provide a dual safety guaranteefor surgeons, building a new protective defense for surgical safety.Intelligent infusion pump
The pump uses advanced algorithms and sensor technology to realize precisecontrol and real-time monitoring of infusion speed; it supports several infusionmodes to meet the treatment needs of different patients; it also has a powerfuldata logger to back up clinical decision-making.
Digital body temperature management solutionBased on the clinical needs of the perioperative period and the requirements ofanesthesia quality control management, a digital body temperature managementsolution is developed, mainly consisting of a wireless temperature sensor, anactive warming system, and digital quality control software. The combination ofthe wireless temperature measurement sensor and the active warming systemachieves closed-loop management of temperature measurement and warming,while also digitizing temperature data across the whole perioperative period.
Precise syringe pump
The pump supports multiple injectable drugs and dose settings to ensure precisedrug injection; its intelligent alarm system can promptly alert users of anyabnormality to guarantee the safety of patients.
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In January 2024, Guilin HBM's “Li Jingfeng Innovation Studio for Model Workers and Craftsmen Talents” was selectedinto the list of 2023 Guilin Innovation Studios for Model Workers and Craftsmen Talents. As a fertile ground forinnovative talent cultivation, the innovation studio has solved many technical challenges by leveraging its outstandinginnovation capabilities and profound technical expertise. It trains talents for the sustainable development of the healthindustry.
In September 2024, Zhonghong Medical wonthe "Excellent Enterprise of Digital and IntelligentApplication" award in the Kingdee· CIO AchievementProgram. Zhonghong Medical has successfullyoptimized the entire business process througha series of innovative solutions, making thethen complicated work processes smootherand more efficient. Production processes thatused to require a significant amount of time andmanpower can now be done quickly and accurately,which greatly improves production efficiency andcompetitiveness while providing valuable insightsand new ideas for the overall development of themedical supplies industry.
Case
Case
Guilin HBM cultivates innovative talents
Zhonghong Medical wins "Excellent Enterprise of Digital and Intelligent Application" award
Zhonghong Medical actively responds to the national intelligent manufacturing strategy and keeps increasing investment in digitaltransformation. We build advanced digital factories and introduce intelligent production equipment and management systems toachieve automated production and intelligent monitoring. We fully utilize digital technologies to improve efficiency and precisionwhile reducing costs and risks in processes ranging from raw material procurement, product production and quality inspection topackaging and transportation, advancing with big strides on the path to digitization.
Empowering Corporate Transformation through Digital and Intelligent Upgrading
In 2024
MedRena introduced the MES (manufacturingexecution system), an intelligent manufacturingsystem, reaching the third level of maturity inintelligent manufacturing capability.
In October 2024, Guilin HBM's excellent project of "Guilin HBM Discrete Intelligent Factory" was included in the list of2024 Guangxi Intelligent Factory Demonstration Enterprises. The project has achieved highly automated, digitized, andintelligent production processes by introducing advanced intelligent manufacturing technologies and managementphilosophies. It has built a unique intelligent manufacturing ecosystem to significantly improve production efficiencyand reduce operating costs, laying a solid foundation for the sustainable development of the Company. The discreteintelligent factory owns the most advanced production control system and high-precision inspection and testingequipment in China's latex industry, 20 fully automated medical glove production lines (including double lines) and 4condom production lines.
CaseGuilin HBM, a leader of intelligent manufacturing
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Ecological Protection:
Fostering a GreenHomeland
Committed to the concept that “lucid waters and lushmountains are invaluable assets,” Zhonghong Medical putssustainability at the core of our corporate strategy. TheCompany strengthens environmental compliance, tightenspollution prevention, and addresses climate change. Toexplore energy-saving and carbon-reduction opportunities,we adopt digital and intelligent management and resourcerecycling for higher resource efficiency while advancinggreen operations. Pursuing green, low-carbon development,we strive to contribute to a future of harmonious coexistencebetween humanity and nature.
Contributions to UN SDGs
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Environmental Management
In response to call for green development, Zhonghong Medical keeps enhancing its environmental management system, andeach subsidiary has established a comprehensive EHS (Environment, Health, and Safety) management system with dedicatedpersonnel responsible for environmental management. Environmental management metrics and targets are integrated intoexecutive performance assessments to ensure high-level environmental management in all aspects. During the reporting period,the Company recorded no environmental administrative penalties, environmental pollution incidents, or major environmentalaccidents.
Zhonghong Medical has developed aResponse Plan forEnvironmental Emergencies, which is filed with local ecologicaland environmental authorities. The Company conducts regulartraining and emergency drills to enhance environmentalrisk awareness and response capabilities. Our subsidiarieshave also formulated protocols such as theIdentification,Assessment, and Control Procedure of Environmental Factors
and theManagement Review Control Procedure, with periodicenvironmental risk assessments and hazard inspections.
In response to national environmental policies, Zhonghong Medical completes supervisory audits of the ISO 14001 environmentalmanagement systems by third-party certification bodies, which helps standardize environmental management. As part of ourindustry-leading “Green Factory” practices, we apply the principles of energy conservation and emission reduction from factorydesign to equipment selection, adopt efficient, energy-saving equipment, and implement clean production, significantly loweringenergy consumption and waste.
Environmental emergencymanagement
Environmental green certification
Emergency drill for environmental emergencies
Committed to the strategy of green andsustainable development, Kelun MedicalDevices fulfills responsibility for environmentalprotection. The company explored andimplemented green operations, such asenergy-efficient upgrades, enhanced resourcemanagement, and pollution and emissionreduction, to minimize environmental impact.In July 2024, thanks to its progress in greenmanufacturing, Kelun Medical Devicesmade it into Jiangxi Province’s 2024 greenmanufacturing list and earned the title of“Green Factory” awarded by the JiangxiProvincial Department of Industry andInformation Technology.
CaseKelun Medical Devices receives the provincial title of “Green Factory”
Resource Utilization
Dedicated to improving resource and energy efficiency, Zhonghong Medical has developed an industrial Internet platform andapplied an intelligent manufacturing execution system (MES) to promote precise, digital energy and carbon management. TheCompany also carries out energy- and water-saving upgrades and encourages resource recycling to improve green production andoperations.
Zhonghong Medical has urged subsidiaries to formulate energy management policies, including theEnergy Conservation Rewardand Punishment Management System,Energy Conservation Publicity and Training System, andEnergy Metering ManagementSystem. We have introduced energy-saving equipment and energy-efficient technology upgrades, slashing energy consumptionand GHG emissions and achieving substantial environmental benefits.
Energy management
Total energy consumptiontce247,903.11
Direct energy consumptiontce5,401.93Indirect energy consumptiontce242,501.18Coalton1,619.48GasolineL6,578.66DieselL59,997.43Natural gasm
346,615.00Coke oven gasm
6,026,192.00Purchased electricityMWh363,324.69
Steamton2,019,403.85
Indicator Unit2024
In 2024, Guilin HBM improved the steamenergy efficiency of the dual-mode gloveproduction line, which was put intooperation in May of the same year. Theupgrade effectively lowered the dailysteam consumption of all productionlines, maintaining an industry-leadinglevel of energy efficiency.
CaseGuilin HBM completes steam energy-efficient upgrade for the dual-mode glove production line
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Zhonghong Medical strictly adheres to China’sWater Lawand localregulations in areas where we operate, with science-based water resourcemanagement. The Company encourages subsidiaries to establishtheWater Use Management Policyand explore measures to improvewater management. We step up water protection by integrating watermanagement into all steps of production and operations to build a water-efficient enterprise. We primarily use municipal water supplies andgroundwater for production and office operations. Major water-consumingproduction facilities are located in areas with low water risk levels.
Zhonghong Medical reduces consumption at the source by incorporatinggreen design, replacing outdated equipment, strengthening maintenance,optimizing production processes, and recycling waste. These measureslower the consumption of raw materials and packaging materials. TheCompany also explores eco-friendly alternatives to conventional materials,adds green certification requirements into procurement, and prefers supplierswith certifications for green products and the ISO 14001 environmentalmanagement systems.
Water resource management
Materials management
In 2024, Guilin HBM enhanced the intensive utilization of water resources in the production process through systematicmodifications, achieving higher efficiency in wastewater recycling. By addressing the specific characteristics ofoverflow water resources in certain process segments, an innovative "graded recovery and cascaded utilization" modelwas designed. Through front-end overflow recycling and back-end resource allocation, the dynamic water balancewithin the plant helps the plant save 180,000 tons of water annually, providing a reusable water-saving efficiency pathfor the Company's green transformation.
CaseGuilin HBM implements water-saving upgrades
Leveraging emerging technologiessuch as the Internet of Things (IoT),Zhonghong Medical has developed anenergy management platform to enable thedigital, visualized, intelligent, and refinedmanagement of energy use and carbonemissions. The Company continues toapply the platform in more factories,where real-time energy consumption datais gathered to develop targeted equipmentand process improvements for betterenergy efficiency.
Zhonghong Medical energy management cloud platform
2,541,786.74tonsTotal water consumption
18,533.02 tonsPackaging material consumption
304,806.94tonsDomestic water consumption2,236,979.80tonsIndustrial water consumption
Pollution PreventionZhonghong Medical strictly follows Chinese laws and regulations such as theAtmospheric Pollution Prevention and Control Law,Water Pollution Preventionand Control Law, andLaw on the Prevention and Control of Environment PollutionCaused by Solid Wastes. We continue to improve theHazardous Waste PreventionResponsibility SystemandWastewater, Air Emission, and Noise Pollution Preventionand Control Procedures, clarifying pollutant treatment processes, emission standards,and supervision measures. Regular environmental training sessions and inspectionsof environmental protection equipment ensure that all production links meetenvironmental requirements.
Air emissions from coal-fired boilers: The Company employs a“selective non-catalytic reduction (SNCR) + baghouse dust collector+ sodium-alkali desulfurization system” to ensure emissioncompliance. Online monitoring equipment is installed at emissionpoints to upload real-time emission data.Volatile organic compounds (VOCs): Various subsidiaries adoptpollution control technologies, such as “high-efficiency spraytower—gas-liquid separator—activated carbon adsorption—desorption and catalytic combustion” and “regenerative thermaloxidizer (RTO), UV photolysis, and activated carbon adsorption.”Alarm systems are installed at emission points to ensure emissionsremain within regulatory limits.The Company strictly follows environmental impact assessmentreports in constructing wastewater treatment plants. Onlinemonitoring systems are installed at discharge points and regularlyinspected by environmental authorities.Non-hazardous waste: Chemical raw material barrels are collectedand reused by manufacturers. Rubber scrap generated duringproduction is recycled by certified companies, and certain non-hazardous sludge is sent to brick factories as raw material.Hazardous waste: The Company strictly adheres to nationalhazardous waste management regulations and entrusts qualifiedhazardous waste disposal companies for proper treatment.
2,553,541.44
m
Total wastewater
2,330,200.54m
Industrial wastewater
223,340.90m
Domestic wastewater
3,041.05tonsTotal solid waste
1,764.40tonsNon-hazardous waste
1,276.65tonsHazardous waste
In 2024
Pollution prevention measures
Solidwaste
Wastewater
Airemissions
For more information on pollutant emissions, refer to theZhonghong Medical AnnualReport 2024.Further Reading
In 2024
In 2024
2024 Sustainability (ESG) Report
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In 2024, Guilin HBM replaced the chlorine-based process with coating technology to reduce chlorine-relatedenvironmental impacts. For sterilization, the company switched from ethylene oxide (EO) sterilization to electron beam(EB) sterilization, minimizing EO’s environmental impact.
CaseGuilin HBM implements environmental upgrades on production lines
Guilin HBM AO biochemical wastewater treatment process
Our Scope 1 emissions primarily result from the combustion of fossil fuels, including coal, gasoline, diesel, natural gas, and cokeoven gas. Scope 2 emissions arise from indirect emissions associated with purchased electricity and steam.
In 2024
Total GHG emissions
tCO
etCO
e
tCO
e/RMB 10,000 tCO
e
818,075.319,453.28
Scope 1 GHG emissions
808,622.03
Scope 2 GHG emissions
3.3300
GHG emissions intensity
Green OfficesUpholding sustainability principles, we promote a green, low-carbon culture, advocate green commuting, and reduce ouroperational carbon footprint. Through extensive employee environmental training, we foster employee environmental awarenessto create a greener workplace.
In May 2024, during China’s National Energy Conservation Week, Zhonghong Medical launched activities on low-carbondevelopment and environmental protection in the Company’s five major production sites through promotional postersand WeChat account, fostering a strong culture of green development, production, and lifestyles.
CaseCarrying out the “Embracing Low-carbon Development, and a Greener Future” campaign
We purchase high-efficiency air conditionersand set the temperature to no lower than 26°Cin the summer.We enforce strict office electricity management,ensuring lights are switched off after workinghours.We have upgraded the lighting system withenergy-saving and eco-friendly fixtures.
We organize campaigns on ecologicalconservation, energy conservation, and carbonreduction and host activities such as treeplanting and waste sorting.
We promote electronic contracts and paperlessoffice systems such as the OA system,electronic financial archives, enterprise resourceplanning (ERP) system, HR managementsystem, and customer relationship management(CRM) system to minimize paper use. Whennecessary, double-sided printing is encouraged.We advocate video conferencing to reducecarbon emissions from business travel.
We have installed EV charging piles atproduction sites and parks to encourage theuse of new energy vehicles.We encourage employees to commute viapublic transportation, shared bicycles, and othergreen modes of travel.
Green o?ces Electricity saving
Green culture Green commuting
AO biochemical wastewater treatment
2024 Sustainability (ESG) Report
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Putting customers at the center, Zhonghong Medical reinforcesproduct quality control and fosters a responsible supply chain.Through an efficient customer service response mechanism, weelevate customer satisfaction while systematically mitigatingpotential risks in quality, supply chain, and customer service.Customer needs are translated as a driver for product innovationand service improvement, which helps enhance brand resilience andset a quality benchmark.
Contributions to UN SDGs
Customer First:
Creating anOutstanding Brand
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Product Quality
Product quality and safety are fundamental to businesses and a solemn commitment to the health of the public. Upholding thequality concept of “strict quality control, standards enforcement,” we instill a strong quality awareness in every employee. From rawmaterial procurement and production processes to final product inspection, we take rigorous measures at every stage. Through aseries of meticulous quality control measures, we deliver safe, high-quality, and reliable medical products to our customers.
Following multiple legal requirements, Zhonghong Medical hasdeveloped a quality guarantee and management system, includingprocedures such as theProduct Monitoring and MeasurementControl Procedureand theCorrective and Preventive Measure ControlProcedure.We leverage digital means to upgrade quality managementand seek cooperation with third-party agencies for audits andoversight. We have successfully obtained certifications such as theU.S. FDA certification, EU CE marking, ISO 9001 quality managementsystems, ISO 13485 medical device quality management systems, andthe Medical Device Single Audit Program (MDSAP), guaranteeing fullcompliance with international product standards. During the reportingperiod, no major quality incidents occurred.The Company has implemented theMedical Device Product Recall Control Procedure, theAdvisory Notice and Adverse EventControl Procedure, and theProduct Information Disclosure Control Procedure. These measures ensure a full-process managementmechanism from risk identification and early warning response to traceability and recall. During the reporting period, no productwithdrawals or recalls occurred.
Business operated under the qualitymanagement system certification forfive consecutive yearsPass rate in 52 external quality audits
Strict quality management
100%
100%
Guilin HBM has developed digital quality management under the“discrete intelligent manufacturing model.” By integrating informationsystems, smart production equipment, and refined managementprocesses, the model has achieved full-process quality monitoringfrom raw material procurement to finished product delivery. Thisapproach has significantly enhanced product consistency andstability, ensuring reliable quality for customers. In August 2024, GuilinHBM received the national honor of “2024 quality benchmark bestpractice,” setting an industry example with distinctive digital qualitymanagement expertise.
CaseGuilin HBM recognized for “2024 quality benchmark best practice”
ZhonghongMedical
MedRena
We partner with pharmaceutical regulators to complete multiple rounds of medical devicecompliance inspections and promptly addresses identified issues to ensure product safetyand compliance.We collaborate with quality inspection and management certification agencies to conductannual risk assessments of internal product quality and compile risk reports according tolegal requirements, ensuring continuous improvement in quality management.We conduct internal quality audits and management reviews as per theInternal AuditControl Procedure and the Management Review Control Procedureto maintain theeffectiveness and continuous improvement of the quality management system.Third-party agencies are hired for 52 product tests as required by customers in China, theU.S., Europe, and Japan, with tests covering multiple international standards and regulationsto ensure that our products meet the needs and regulatory requirements of differentmarkets.
The company has established quality goals and policies and assigned them to theproduction, R&D, and procurement departments, with dynamic annual performanceassessments and clear scope of quality responsibilities to build a full-value-chain qualityculture.If there are quality issues with the product, the company will designate personnel to resolveissues, investigates causes, and implements targeted measures to improve product qualityeffectively and track problem resolution.The company has developed theMedical Device Recall Control Procedureto ensuresystematic tracking of defective products, risk warnings, and proactive recalls, ensuring fulllifecycle quality monitoring.
MedRena has set up designated quality management positions, such as the qualitydepartment manager and management representative, to shoulder responsibility for thequality system, ensuring executive-level support and effective implementation of qualitymanagement.MedRena has established a set of quality indicators, including the pass rate of rawmaterials on the assembly line, sample pass rate, annual raw material pass rate, open-box pass rate, annual defect rate, and product direct pass rate, and integrated them intoquarterly and annual performance assessments to drive continuous quality improvementand effectiveness.MedRena conducts regular internal and external quality management evaluations inline with quality management system requirements, successfully passing two externalevaluations during the reporting period.
Guilin HBM
In 2024
2024 Sustainability (ESG) Report
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Regulatory requirements formedical devices
Product realization processCustomer-related processesDetermination of productrequirementsContract reviewCommunicationwith customers
Product realizationProcess planning
Quality offormation plan
DesignDevelopment
Supplierevaluation andselection
Finishedproductinspection
Productsdelivery
Meeting customer requirements and regulatory requirements for medical devices
Customersatisfactionevaluation
Internalaudit
Processmonitoring
Productmonitoring
Identification andimplementation ofnecessary amendmentsCorrectiveactionsPrecautionsFeedback
Improvement
Monitoring and measurement
Manufacturingand processing
Procurement
UnqualifiedproductcontrolData analysis
Quality policyQuality objectivesQuality planningInternal communicationResourcemanagement
ManagementresponsibilitiesHumanresources
Infrastructure
Workenvironment
（Where plasticizationforming is a specialprocess）
Main process of product realization
Zhonghong Medical Quality Management System Flowchart
As a guardian of product quality and safety in the medical industry, Zhonghong Medical enhances employees’ quality managementskills through systematic training programs, solidifying the Company’s quality defense.
Zhonghong Medical invites external experts to providein-depth training on EU medical device regulations andthe U.S. 21 CFR 820 regulation, covering topics suchas design and development, production control, qualitycontrol, and procurement control.
Guilin HBM implements thorough product qualitymanagement training across the full chain, coveringinspector responsibilities, raw material acceptance,production process control, finished productinspections, and customized products. The trainingemphasizes operation standards, testing techniques,and record integrity to meet the quality managementrequirements of the medical device industry.
MedRena’s training on product quality management
MedRena has formulated quality managementtraining plans covering quality personnel’s qualityawareness and defect-handling processesto improve employees’ expertise in qualitymanagement.
Quality training for employees
Quality management trainingZhonghong Medical
Guilin HBM
MedRena
In July 2024, Guilin HBM organizeda skills competition for 34 productquality inspectors from the qualitydepartment . The event combinedtheoretical knowledge andhands-on practice, significantlyenhancing the skills of inspectorsto guarantee product quality.
CaseGuilin HBM hosts quality inspection skills competition
Measurement, analysis and improvement processes
Supportive process
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Responsible Supply ChainUnder Zhonghong Medical’s supply chain risk management system, the Company identifies risks and implements targetedstrategies to improve supply chain continuity, transparency, and resilience. Meanwhile, we accelerate the digitalization and greentransition of the supply chain. Through stringent supplier selection, evaluation, and engagement mechanisms, Zhonghong Medicalpromotes ESG capability-building with upstream and downstream players, fostering a responsible and sustainable value chain.
According to theSupplier Management Control Procedure, the Company has established acomprehensive supplier management process, which includes regular supplier qualificationreviews, performance assessments, and risk assessments. These efforts guarantee that oursuppliers are qualified and perform well, supporting the Company’s stable operations and businesscompliance.
Supplier management
Total suppliers
In 2024
We list potential suppliers that meet technical and qualityrequirements for raw and auxiliary materials as qualifiedsupplier candidates.We conduct on-site evaluations and sample testing ofpotential suppliers and distribute theSupplier Survey/Evaluation Formto verify their qualifications, productioncapacity, environmental measures, and social responsibilitypractices. Then, we engage in trial cooperation withtentatively approved suppliers, who, once approved bythe Company, will be included in the qualified suppliermanagement file.
We continue collaboration with suppliers offering soundmaterials and services and possessing technologicalexpertise, as they can contribute to the Company’sgrowth.We issue aNotice on Time-limited Rectificationtosuppliers with significant quality or service deficienciesand prepare an evaluation report for suppliers failing tomeet the rectification deadline. Following reviews, theircontracts will be terminated.
Supplier access
Supplier retention and exit
We conduct specialized audits of suppliers, whoseresults serve as a reference for supplier assessment andcollaboration adjustments.We perform annual supplier evaluations based onsupplyinspections, supply performance and capability,continuous supply quality, return or exchange situations,and material stability.We conduct comprehensive reviews of qualified suppliersto reevaluate their credentials, quality systems, andproblem rectification. The results, combined with theannual evaluation of supply quality, are reflected in the
Supplier Annual Audit Report.
Supplier evaluationSupplier management process
Potential suppliers disqualified due to socialresponsibility non-compliance
Suppliers with their contracts terminated due tosocial responsibility non-compliance
In 2024
Employee rights Environmental protectionHealth and safety
In 2024, Zhonghong Medicalconducted on-site audits ofsuppliers’ quality managementsystems, assessing productionenvironments, equipmentconditions, and employeepractices. During the process, weidentified problems and askedsuppliers to address them forbetter supply quality and CSRperformance, ensuring supplychain stability and reliability.
Zhonghong Medical requires suppliers to sign the following CSR-containing documents:
Supplier Code of Conduct, SuppliersSocial Responsibility Audit Checklist, andSupplier Commitmentfor Compliance and Continuous Improvement of SocialResponsibility. Environmental and social responsibility clausesare incorporated into supplier contracts to urge suppliers toshoulder social responsibilities, with specified penalties for non-compliance, reinforcing long-term stable partnerships.
CaseOn-site supplier evaluations
Compliance with national andlocal labor laws, international laborstandards, and industry regulationsEmployment contracts signed withemployeesProhibition of child labor and forcedlaborReasonable and compliant workinghours, wages, and benefitsZero tolerance for workplacediscrimination and harassment
Compliance with national and localenvironmental protection laws andregulationsISO 14001 environmentalmanagement systems certificationImplementation of energy-savingand emission reduction measuresand the promotion of greenproductionProper handling of medical wasteto ensure compliance
Compliance with national andlocal health and safety laws andregulationsISO 45001 occupational health andsafety systems certificationEmergency response plans foremployee health and safetyProvision of necessary protectiveequipmentRegular occupational healthcheckups and safety training
Supplier social responsibility requirements
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Based on theProcurement Control Procedure, Zhonghong Medical implements a transparent and standardized procurementmanagement framework. We integrate procurement governance into the ESG framework and adopt digital means to build asustainable supply chain. During the reporting period, all procurement personnel signed the Integrity Commitment.
Transparentprocurementpolicy
We adhere to six principles: openness and transparency, standardization, collective decision-making, smooth processes, supervision, and information sharing. The Company ensurescompliance and efficiency in procurement activities through full-process informationdisclosure, long-term effective institutional design, collective decision-making processes, andelimination of any rent seeking.
Transparentprocurementprocess
The procurement process covers five key links: demand confirmation, multi-dimensionalsupplier evaluation, contract negotiation, order tracking, and acceptance/payment.Standardized procedures strengthen supply chain control.
Transparentprocurementplatform
We integrate modules for information release, electronic workflows, and contract management,realizing separate access and data security.We release procurement information via the platform to encourage fair competition amongsuppliers, effectively reducing costs and preventing corruption.We enable full-process digital, data-based procurement management, allowing the Companyto grasp accurate supplier information, improve procurement efficiency, and enhance overallperformance.
Zhonghong Medical maintains sufficient communication with suppliers to inform them of our demands and expectationsaccurately. Emphasizing supplier training and guidance, we host regular exchanges and share industry experience and bestpractices for better supplier management and product quality. Through these efforts, we grow together with suppliers andestablish long-term, stable partnerships with them.
Responsible supply chain initiatives
Supplier communication
Phone callsOnline meetings
WeChatEmailsSMS
Industryexhibitions andforumsSocial media
On-site visitsRegular face-to-facemeetings
Suppliermanagementsystem
Zhonghong Medical’s transparent procurement system
By conducting comprehensive supplier training, Zhonghong Medical aims to raise suppliers’ technical and managementcapabilities. The training focuses on quality management, green production, and business compliance. We also promote thesharing of technological resources and supply chain collaborative innovation to improve suppliers’ competitiveness and our ESGperformance.
Supplier training and guidance
We provide targeted training on potential quality issues in production for suppliers to ensure thatthey master quality control methods and techniques.We encourage suppliers to adopt advanced testing equipment and methods to improve accuracyand efficiency in product quality testing.Quality control
training
The Brand Management Department manages information dissemination and overseescommunication channels and the departments involved to prevent unauthorized misleadingpromotions.We encourage suppliers to participate in industry exchanges and apply the latest technologicaladvancements to produce high-tech and more competitive products.Technical standards
training
We introduce best practices and lessons in environmental regulations, labor rights, occupationalhealth and safety, and business ethics to enhance suppliers’ awareness of social responsibility.CSR training
Premium ServicePrioritizing customer communication, Zhonghong Medical has established a customer service system to respond swiftly tocustomer needs. With dedicated technical support and after-sales teams, the Company delivers all-around, tailored solutions andoffers efficient, professional, and considerate services to customers worldwide, contributing to the advancement of healthcare.
To optimize customer service processes, Zhonghong Medical upgrades thecustomer relationship management (CRM) system and launches extensivedistributor training to bolster product consultation services. The Companyalso equips medical professionals with the correct usage of medical products,ensuring safer healthcare for patients.
Higher service quality and efficiency
99.87%
Customer satisfaction rate
Distributor training sessions
In 2024
2024 Sustainability (ESG) Report
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The Brand Management Department manages information dissemination and overseescommunication channels and the departments involved to prevent unauthorized misleadingpromotions.Our rigorous information review mechanism follows the principles of “review before release”and “case-by-case approval.” Information is scrutinized based on the scope of informationdissemination to guarantee accuracy and prevent false or exaggerated claims.We use product information and labeling in accordance with uniform standards, covering brandname, logo, slogan, and packaging design to prevent consumer confusion caused by inconsistentor incorrect labeling.Responsiblemarketing
In April 2024, Zhonghong Medical hosted a product promotion conference in Shanghai, bringing together over 150distributor representatives nationwide. The event recognized and rewarded top-performing distributors for theiroutstanding contributions to market expansion and customer service. This conference strengthened communicationbetween the Company and distributors, propelling both sides to continue cooperation for high-quality clinical productsand services.
Using medical products properly is critical topatient safety and treatment efficacy. In 2024,Zhonghong Medical conducted a trainingsession on the usage and precautions of infusionpumps, demonstrating practical applicationsand operation procedures. This event helpedhealthcare professionals use infusion pumpscorrectly, guaranteeing safe and effective clinicalapplications.
Case
Case
Hosting the 2024 product promotion conference
Training on medical product usage
CRM system enhances customer service capabilities
The data cockpit provides real-timeand accurate statistics related tokey customer service indicators.The statistics help us identifyservice weaknesses and potentialissues for timely decisions,enabling ongoing improvement ofservice processes and quality.
We have combined multipleworkflows, including contracts,pricing, stamping, and creditmanagement, which reducesinternal communication costs andaccelerates response to minimizecustomer waiting time.
By integrating the enterpriseresource planning (ERP) systemaccounts and adopting the CRMsystem, we reduce costs andreallocate money saved to enhancecustomer services, providing morevalue-added services to customersand improving overall customerexperience.
Data-driven serviceimprovement
Integratedwork?ow forgreater e?ciency
Increasedinvestment incustomer service
Zhonghong Medical has established theCustomer Feedback ControlProcedure, Customer Complaint Control Procedure, andCustomer PropertyControl Procedure. Accordingly, we make continuous efforts to improvethe complaint-handling process for the timely resolution of customercomplaints. Upholding responsible marketing, we implement customerinformation protection mechanisms to safeguard customers’ legitimaterights and interests.
Protection of customer rights
100%Customer complaint resolution rate
In 2024
A dedicated team oversees the confidentiality of customers' proprietary technologies, software,product specifications, designs, and drawings, ensuring that such information is not disclosedexternally without customers’ authorization.During internal communications, we refer to customers by their abbreviations, and full customernames are not displayed throughout the processes. Additionally, the CRM system restricts accessto customer data.Customerprivacyprotection
Multiple complaint channels are available, with dedicated personnel responsible for collecting anddocumenting customer complaints.A transparent and efficient complaint resolution process is in place for the swift investigationof complaint causes and effective rectification. We also issue CAPA (corrective and preventiveactions) reports addressing customer grievances.
Customercomplainthandling
2024 Sustainability (ESG) Report
Committed to the talent concept of “leveragingemployees’ strengths and hiring exceptional talent,”Zhonghong Medical regards employees as the drivingforce of corporate growth. The Company refines humanresource management systems to protect fundamentalemployee rights. We also offer diverse careerdevelopment opportunities and promotion pathways toattract and nurture top talent. Prioritizing employee well-being and safety, we strengthen democratic managementand employee care, which improves employees’ cohesionand their sense of belonging.
Contributions to UN SDGs
2024环境、社会及公司治理（ESG）报告
Company-Employee CollaborationSecuring a Bright Future
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| 37 | 38 |
Employee Rights
Devoted to creating a fair, open, and inclusive workplace, Zhonghong Medical continuously improves the Company’s policies onrecruitment, compensation, performance assessment, and democratic communication. This helps improve standardized andscience-based HR management, fully protect employees’ legitimate rights and interests, and better employee retention.
Zhonghong Medical strictly adheres to Chinese laws and regulations,such as the Labor Lawand theLabor Contract Law, and internationalconventions, including the International Bill of Human Rights, theUniversalDeclaration of Human Rights, and theConvention on the Rights of Personswith Disabilities. The Company has established internal policies such astheEmployee Recruitment Control Procedureand theEmployee Handbookto standardize hiring processes, define recruitment criteria, and expandrecruitment channels, ensuring fair, just and transparent hiring practices.
Compliance in employment
4,228Total employees
Ethnic minority employees
In 2024
Internshipprogram
We select outstanding students through summer internships and university-enterprisecollaboration programs, with high-performing interns given priority for full-time jobopportunities.
Onlinechannels
We have set up a “join us” section on the Company’s official website to provide detailed joblistings, responsibilities, and qualifications.We employ social media platforms such as WeChat, Weibo, and Douyin to share job postingsand corporate culture.We partner with leading job sites and medical industry platforms to publish open positions.
Campusrecruitment
We participate in large-scale job fairs at universities to engage with to-be-graduates andshowcase the Company’s growth potential, corporate culture, and job opportunities.We host on-campus recruitment sessions to provide a detailed overview of the Company’sbusiness, career paths, and benefits, offering students a clearer, in-depth understanding ofZhonghong Medical and attracting those who meet the Company’s requirements.
Internal
channels
We encourage employees to recommend qualified candidates to improve recruitmentefficiency.We select and transfer technical and managerial professionals internally.
We have formulated theHuman Resource Management Measuresand theControl Procedure of Prohibiting Forced Labor, and opposediscrimination based on gender, age, ethnicity, region, marital status,or religious beliefs. The Company says no to child labor, forcedlabor, and workplace harassment or abuse while upholding theprinciple of equal pay for equal work and protecting women’s rightto fair employment. In overseas markets, we hire local people andcomply with local labor laws and regulations in recruitment and HRmanagement to protect the rights of local employees. During thereporting period, there were no significant labor disputes or humanrights-related complaints.
Labor rules
Passed the factory inspections byBSCI
Passed theSMETAaudit for supply chainsocial responsibilityObtained theWRAPcertification forsocial responsibility
In 2024
Employee number by gender, age, and region
Employees under 30 years oldEmployees over 50 years oldEmployees aged 30-50Number of male employeesNumber of female employeesNumber of overseas employeesNumber of domestic employees
1,443
2,7853,4734,205
WRAP gold certification
In 2024, Zhonghong International achievedlocalized employment by hiring residents inproject regions. All new hires in the UnitedStates, Kazakhstan, Chile, Tunisia, Thailand,and Malaysia were locals.
Zhonghong International implementslocalized employment overseas
Case
2024 Sustainability (ESG) Report
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Zhonghong Medical offers competitive salaries, accompanied by robust mechanisms for incentives and restrictions. The Companyhas implemented the Employee Evaluation Management Measures,Employee Incentive Program, andManagement Measuresfor Compensation Assessment of Middle-level Managers. Under our performance assessment system, employees’ salaries arealigned with their position, capability, and performance. Employees are entitled to remuneration, work safety, social insurance,other benefits, and a full range of statutory leaves, including sick leave, personal leave, marriage leave, maternity and paternityleave, and parental leave.
Zhonghong Medical respects employees’ rights to freedom of association and collective bargaining. Under theDemocraticManagement System, the Company promotes democratic management underpinned by the Workers' Congress to engageemployees in democratic management and supervision. We have set up a labor dispute arbitration and mediation committee, withmediation and supervision offices, to collect, report, and address issues on human rights, performance, and career advancement.Employees are encouraged to engage in corporate decision-making and management. A labor union has been formed and reachedformal agreements with the Company on working conditions, compensation and benefits, and occupational health and safety, witha collective contract signed with all employees.
Zhonghong Medical’s employee management pivots around improving employee well-being and satisfaction. Each year, theCompany assists staff in need through the Presidential Fund and pays a visit to employees on holidays. We organize a varietyof team-building activities, offer psychological counseling, and put in place the “Staff Home,” enriching employees’ lives andsupporting their physical and mental health.
Compensation and benefits
Democratic management
Employee care
Development and Training
Zhonghong Medical has introduced a set of internal policies, including theEmployee Evaluation Management Measures, CareerDevelopment Management Rules, Training Management Measures, andPerformance Assessment Management Measures. Wealso optimize the employee training system and team-building to help employees improve their skills. Additionally, our fair andjust evaluation system and incentive mechanism and clear career pathways for employees, drive the shared growth betweenindividuals and the Company.
Zhonghong Medical has revised theTraining Management Measures. Giventhe Company’s development strategies, we have created a diversified trainingframework that includes orientation, professional skills enhancement, andmanagement improvement. Supported by internal lecturers and externalexperts, a multi-tiered, multi-channel online learning platform delivers bothonline and offline training on leadership development, professional skills, andgeneral knowledge for all business sectors and staff at all levels.
Employee training
RMB224,800Total training investment
Training sessions
Training coverage
66.84
%
In 2024
In September 2024, Zhonghong Medicallaunched a new employee orientation campthemed “Gathering Talent at Zhonghong, Leadingthe Future.” The training program spanned keybusiness areas such as brand management,corporate culture, strategic planning, compliance,safety, HR policies, and professional image andconduct. It aimed to familiarize new hires withthe Company and corporate culture quickly andimprove their professionalism.
案例New employee orientation
Chairman delivers the opening speech of the training camp
Given the Company’s development strategy, Zhonghong Medical has built a “dual-channel” career development model closelyaligned with the personal growth of employees. Such a complete career promotion mechanism fully recognizes and motivatesemployees, further reinforcing our talent team.In terms of talent selection, the Company identifies and recommends young professionals. We have formulated theJobDescriptions for Zhonghong Medical Subsidiaries and Departmentsto clearly define the responsibilities of each position andprovide clear guidance for talent selection and training. At the same time, we have finalized science-based and rigorous selectionrules such as theFrontline Official Selection Methodsand theManagement on Selection and Appointment for Middle-LevelManagement Posts to explore, train, and appoint front-line and middle management talent, which supports the Company’s high-quality development.
Career advancement
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Occupational Health and SafetyPutting employees’ health and safety first, the Company strengthens the occupational health and safety management system,launches safety culture campaigns and education programs, and implements safety management on occupational diseases andhazardous chemicals to prevent and address risks. During the reporting period, no major safety incidents were reported.
Zhonghong Medical’s “dual-channel” career development
Following theLaw on the Prevention and Control of Occupational Diseasesand other Chinese laws, Zhonghong Medical has formulated theOccupationalDisease Prevention SystemandOccupational Disease Hazard Warning andNotification System. These policies form a robust occupational health andsafety framework to identify, control, and eliminate occupational health hazards,ensuring employees’ health.
Safeguarding occupational health
Guilin HBM was awarded the title of“Occupational HealthChampion of Guilin”.
In 2024
We conduct training sessions onoccupational health knowledgeand campaigns on occupationaldisease prevention.
We fully assess occupational healthhazards in our production process,including annual evaluations ofoccupational disease hazards andclassification of risk factors, andproduce theList of OccupationalDiseases by Position Exposuretohelp improve working conditions.
We provide pre-job, on-the-job, andexit health checkups for employeesexposed to occupational hazards,with individual occupational healthrecords. Targeted control measuresare developed based on healthcheckup results.
In strict compliance with Chinese laws, such as the Law on Work Safetyand
Fire Control Law, the Company enforces accountability for work safety with the
Measures for the Management of Work Safetyand theThree-Year Action Plan forFundamental Work Safety Improvement (2024–2026). We have implemented adual-control mechanism combining risk classification and hazard identification tomaintain a safe workplace for employees.
Work safety
We have formed a work safety leadership team, a dual-prevention systembuilding task force, and an occupational health management arm.Strengthening organizational structure
We have signed the 2024 safety responsibility agreement with alldepartments, adopted a “dual responsibility per role” policy, andincorporated the number of work injuries, occupational diseases, andsafety accidents into management performance assessments.
Ensuring accountability
We have formulated theRisk Classification and Control Planand
Emergency Response Manual for Special Equipment Accidentsandhold regular hazard identification. Before holidays and during the SafetyMonth, we carry out work safety inspections and work safety compliancechecks.
Identifying risks and hazards
We organize at least one company-wide safety training session each yearto ensure all employees are equipped with safety knowledge and skills,which improve their safety awareness and emergency response.
Fostering a safety culture
We have formulated thePPE Management Policy, distributed protectivegear, and conducted regular inspections and maintenance of protectiveequipment.
Enhancing protection
RMB
1.9895
millionInvestment in employee workinjury insurance23,116
Total participantsinvolved in safety training
79,554
Total hours of safety training
In 2024
Emergency drills10,922
Total participants in safety drills
Work-related fatalities overthe past three years
%Work-related fatality rateover the past three years
Management channelManagement ladderMarketing ladder
Marketing managerKey account manager
ExpertSupport ladder
CommissionerSenior managerExpert
Technical ladderDeputy chief engineer
First level engineerSecond level engineer
Chief engineerMiddle managementGrassroots management
Staff
Professional channel
2024 Sustainability (ESG) Report
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Shouldering the new missions of the new era, Zhonghong Medicalleverages its strength to expand the accessibility of medicalproducts, promote industry cooperation and development andundertake social responsibilities of giving back to communitiesand contributing to harmonious community building. The Companytakes concrete actions to share development fruits with society anddrives high-quality sustainable development.
Contributions to UN SDGs
Social Contribution:
Sharing DevelopmentFruits
2024 Sustainability (ESG) Report
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Advocating the concept of inclusive health, Zhonghong Medical is poised to meet the protection needs of the medical industry andstrives to be the most all-round supplier of medical gloves in China. Taking into consideration the local economy, market, and medicallevels, the Company is committed to improving the accessibility and affordability of medical products. As a V-level customer rated byChina Export & Credit Insurance Corporation, we contribute more quality products and better services to the world.
In response to the China's bulk-buying policy, Zhonghong Medical with its excellent product quality and reasonable pricingstrategies, has been engaged in several bulk-buying projects nationwide and established cooperation with several new hospitals.To address the challenges brought by the elimination of price difference in national bidding and purchasing subsystems, weattract more potential customers through innovative products and services, further enhancing our product presence. In 2024,10 new products were launched, including food-contact nitrile gloves, sterile dispensing syringes, and precision filter light-proofinfusion sets, in an effort to benefit people around the globe with more innovative medical products.
Expanding our presence
+Countries and regions where our products are sold, including North America,Europe and Japan, etc.3,000
+Hospitals with newly established and stable cooperation in China (including national or provincial benchmark hospitals)approx
Overseas clients
In 2024
To improve supply stability, Zhonghong Medical, after long-term research and investigation, finally decided tobuild the glove production line in the Southeast Asia region.These projects will enhance our cooperation with localpartners and improve our position in the industry, while helping improve the local medical device industry andincreasing product accessibility in the world.
CaseImplementing overseas self-construction projects
Medical Accessibility
Product accessibility
Product portfolio
Health protectionMedical examinationglovesMedical surgicalglovesMedical radiationprotection glovesNon-medicalprotective glovesPolyisoprene glovesCondomsFinger cots……
Safe infusionInfusion setsSyringesIndwelling needlesBlood collection tubesNasal oxygen cannulaSterilized connectorsDisposable nebulizers……
Innovative incubation
Infusion pumpsSyringe pumpsEnteral nutrition pumpsMedical sensor consumablesand lead wiresDS50 Series workstationsDigital temperaturemanagement solutionsDisposable medical temperaturesensors……
Guilin Production Base
Shenzhen Production BaseJiujiang Production BaseYichun Production Base
Tangshan Production Base
Production Base
Hainan Company
Hong Kong Company
Dutch Company
American CompanyShanghai Company
Group Headquarters
Singaporean Company
Tunisia
KazakhstanThailand
Chile
The production base in Southeast Asia is under construction
2024 Sustainability (ESG) Report
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To satisfy the needs of specific groups and scenarios, Zhonghong Medical has developed several medical products that fill thetechnological void in China, offering safe, practical, and economical medical devices through its outstanding sci-tech innovationcapabilities.`
While ensuring product quality, Zhonghong Medical saves raw materials and reduces costs through automation and technologicaltransformation, which enhances the price competitiveness of our products to better meet the needs of customers in differentmarkets. Sales of gloves and condoms have achieved year-on-year growth. In light of overseas market conditions, per capitaincome, and healthcare levels, we have set differentiated and reasonable prices that align with local conditions. We submit bidsfor projects from local governments and with affordable product pricing, with an aim to enhance health awareness of people inemerging markets and developing countries. In 2024, protection gloves were sold in several markets, including North America,Europe, Asia, South America, Oceania, and Africa.
Focusing on specific needs
Reducing medical costs
The gloves use the industry's advanceddecomposition and detachment technologyof protein to fully reduce allergens and lowerrisks for people allergic to latex.
The gloves are made of ultra-softpolyisoprene, no natural rubber latex,suitable for people allergic to latex.
The gloves use the positive chargegeneration technology to protect healthcareprofessionals while reducing incisioninfections. They are suitable for high-risksurgeries susceptible to infection.
With a three-layer protection structure, iteffectively prevents HIV penetration andtransmission.
With high performance in radiationprotection, the gloves are suitable forradiation intervention and diagnosticprocedures, protecting healthcareprofessionals from radiation exposure.
Zhonghong Medical participates in various academic exchanges and industry forums, etc., where we share our successfulexperience and conduct in-depth discussions with scholars to help improve the industry's medical services. We push healthknowledge to the public through our official website, WeChat official account, and other media platforms, promoting standardizeduse of medical devices and health protection concepts.
Promoting health concepts
WeChat articles and
videos on WeChat Channels posted on average every monthCovering diverse health knowledge including the standardized use of medical devices, asthma prevention and treatment,nasal health, and allergy tips
In 2024
In March 2024, we attended the 2023 Congress of ChineseAssociation of Anesthesiologists to exchange with top domesticand international experts in anesthesiology
In September 2024, we joined the 29th Annual Meetingof Chinese Society of Anesthesiology to share academicachievements
In October 2024, we participated in the Medical Japan Tokyo todiscuss future trends in the healthcare industry with our peers
In August 2024, we participated in the 28th Operating RoomNursing Academic Conference of Chinese Nursing Association,responding to the new requirements from the Healthy Chinainitiative for the development of nursing
Medispo protein non-detectable
Medispo KBD glovesMedispo radiation protection gloves
Huadum high barrier CondomMedispo polyisoprene gloves
2024 Sustainability (ESG) Report
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Zhonghong Medical maintains close contact with well-known universities and research institutions in China and helps organizevarious academic exchange activities, building bridges for industry-university-research cooperation; we highly value thedevelopment of a digital ecosystem and actively establish digital connections with partners to achieve information sharingand deep business collaboration. Additionally, we participate in domestic and international exhibitions, positively contributingto technological innovation, industry standards, and market channels. We also assist in formulating and improving industrystandards to ensure the development of the industry in a standardized and orderly way.
We participated in 49 domestic and internationalexhibitions and academic conferences, reachingout 4,000+ customers.
We led the drafting of the industry standardTheQuota of Energy Consumption per Unit Productsfor Latex, which passed the review by the ChinaRubber Industry Association.
We launched the first 2024 Zhonghong MedicalProduct Promotion Conference, establishingcooperative relationships with multiple domesticand international business partners.
We participated in the formulation of therecommended national standardsNaturalRubber Latex Cleanroom Gloves, NitrileCleanroom Gloves, Single-use Rubber Glovesfor General Applicationsand the obligatorynational standardMedical gloves safetytechnology requirements.
China Rubber Industry AssociationStanding council memberChinese Chemical SocietyMember
Hebei Emergency Industry AllianceVice chairman memberSafety and Health Protection Products Committee of
China Textile Business Association
MemberMalaysian Rubber Glove Manufacturers Association
(MARGMA)
Member
Industry associationMembership
Open Cooperation
Charity
In February 2024, Zhonghong Medical supported morethan 40 representatives of 2024 college graduates fromLuannan, Tangshan, to carry out the practice themed"Young Geese Return to Build Luannan". Through on-sitevisits and introduction, they got to know the productionprocess of nitrile gloves and truly felt our boomingdevelopment and nice working environment. We hope toguide more young people to find a job in their hometown,thus contributing to the development of a young andprosperous city.
CaseZhonghong Medical supports 2024 college graduates from Luannan, Tangshan for themed practice
Zhonghong Medical continues to fulfill its social responsibilities through disaster relief and material donations, etc. We encourageemployees to actively participate in community volunteer activities, caring and helping community residents through practicalactions.
公益慈善The 49th ARAB HEALTH in January 2024
公益慈善China International Medical Equipment Fair (CMEF) in April 2024
MEDICA in Germany in November 2024RUSSIAN HEALTH CARE WEEK in December 2024
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Strong corporate governance is the core safeguard for sustainablecorporate development, and it is also a critical element in navigatingthe complexities of the market environment and earning stakeholdertrust. Zhonghong Medical upholds the bottom line of business ethicsand compliance, continuously enhancing governance mechanisms. Westrengthen internal controls and risk management, improve operationaltransparency and accountability, and also track and respond to stakeholderexpectations. These initiatives ensure the steady and high-quality growthof the Company.
Contributions to UN SDGs
Governance Improvement:
Laying a Solid Foundationof Development
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Zhonghong Medical strictly adheres to Chinese laws and regulations, including theCompany Law,Securities Law,Code ofCorporate Governance for Listed Companies, and theRules Governing the Listing of Shares on the ChiNext Market of ShenzhenStock Exchange. Accordingly, we build a transparent, responsible, and efficient governance mechanism to continuously enhancethe effectiveness of corporate governance.
Corporate Governance
Zhonghong Medical has established a management structure comprising the General Meeting of Shareholders, the Board ofDirectors, the Board of Supervisors, and the Management, in accordance with the Articles of Association,Rules of Procedure forthe General Meeting of Shareholders, andRules of Procedure for the Board of Directors. The General Meeting of Shareholdersis the highest authority of the Company, while the Board of Directors is the highest governance body, reporting regularly to theformer. The Board of Supervisors oversees the lawful operation of the Company and the performance of duties by management.Each body performs its respective functions and operates in a coordinated manner. The Board of Directors has establishedspecialized committees, including the Strategy and Sustainability Committee, the Remuneration Appraisal and NominationCommittee, and the Audit Committee, which are responsible for internal tasks related to sustainability management, evaluation,decision-making, and auditing of company development matters. During the reporting period, the Company revised and updatedtheArticles of Associationand its appendices, procedural rules for specialized committees and other regulations, in accordancewith theNo. 3 Guideline for the Supervision of Listed Companies—Cash Dividend Distribution of Listed Companies (Revised 2023).
Governance structure
Shareholders MeetingBoard of Supervisors
Board of Directors
The Management
Strategy and SustainableDevelopment Committee
Remuneration Appraisaland Nomination Committee
Board of Auditors
Zhonghong Medical governance structure
For more information about companygovernance and financial information,please read theZhonghong Medical AnnualReport 2024or visit our Company website:
https://www.zhonghongmedical.com/list-49-1.html
Further ReadingThe Board of Directors consists of nine members, including three independentdirectors and two female directors. The directors have extensive experiencein fields such as industry, finance, law, and corporate management, andpossess the necessary knowledge, skills, and qualities to perform theirduties. Their selection considers various factors, including age, gender,educational background, and professional experience, ensuring scientificdecision-making and governance. The Board of Directors and the NominationCommittee regularly review, evaluate, and report on the Board's independence.Independent directors issue special meeting review opinions on significantcompany matters and submit aPerformance Report. The number of Boardmembers, as well as their composition and qualifications, comply withlegal regulations and the requirements of theArticles of Association. Boardmembers attend Board meetings and General Meetings of Shareholders incompliance with regulations, regularly participate in training to learn about thelatest legal and regulatory requirements, exercise their powers lawfully, andmake prudent decisions.
Zhonghong Medical deeply implements the principle of governing the enterprise according to the law, and strictly adheres to therequirements of theCompany Law,theAnti-Monopoly Law, theAnti-Money Laundering Law, theAnti-Unfair Competition Law,and other relevant Chinese laws and regulations. The Company strengthens the synergistic role of compliance, auditing, and riskcontrol in governance to achieve deep integration of business development and compliance management.
Prudent Operations
Zhonghong Medical is committed to standardizedoperations and works to establish a sound internalmanagement systems related to information disclosure.The Company has revised and issued theInvestorRelations Management Systemand theInformationDisclosure Management System. We maintain opencommunication channels through online calls, emails,meetings, and the Shenzhen Stock Exchange's "EasyIR" platform. The Company also organizes offlineroadshows, investor meetings, and on-site visits,proactively releasing important information about theCompany's strategy, major issues, operational status, andfinancial performance. Following a long-term, stable, andtransparent profit distribution policy, we actively protectthe rights to information and returns for shareholders,especially minority shareholders.
Zhonghong Medical integrates legal compliance and risk prevention throughout its main line of production and operations, andreconstructs the risk and compliance management system, to promote high-quality corporate development.
Investor relations
Compliance, internal control, and risk management
We convened
Extraordinary and annual General Meetings of Shareholders,
Board meetings,and
Meetings of the Board of Supervisors.We convened
Strategy and Sustainability Committee meetings,
Remuneration Appraisal andNomination Committee meetings, and
Audit Committee meetings.All meetings were in compliance with theRules Governing the Listing of Shares on the ChiNextMarket of Shenzhen Stock Exchange and the rules of procedure within their scope of authority.
In 2024
In 2024We have published
reports, announcements,and other documents released on the Shenzhen StockExchange.
2024 Sustainability (ESG) Report
Compliance management
Risk management
Audit control
Compliance awareness and education
The Company tracks the latest legal and regulatory requirements, strictly conducts business within the scope definedby theArticles of Association, and registers accordingly to ensure that its operations always remain within the boundsof the law.In line with the principles of honesty, mutual benefits, and fair competition, the Company internalizes externalregulations, establishes clear boundaries and thresholds, aligns job responsibilities and review processes, and opposesany form of unfair competition or other violations. Throughout the year, there were no major legal compliance riskevents or significant lawsuits or administrative penalties resulting from unfair competition.We embed compliance requirements into process controls, supporting business decisions based on compliancereviews. We coordinate specialized support in specific areas such as legal affairs, tax, capital operations, and datacompliance to ensure that all necessary reviews are conducted. This ensures that the Company's decisions are legaland compliant, supporting lawful operations and rights protection.We continuously optimize compliance management assessments and evaluations, enforcing strict accountability andsupervision. We clarify the reporting and response requirements for legal compliance risk events and major compliancerisk events and strengthen compliance monitoring.
Focusing on key risks in compliance, investment, and operations, the Company has restructured our riskmanagement organizational framework and formulated five core risk management systems, including the
Comprehensive Risk Management SystemandCompliance Risk Management Guidelines, to solidify the top-leveldesign of risk management.The Company strengthens the risk management process and accountability mechanisms, standardizing pre-event,in-event, and post-event control mechanisms. We have established a "three-level, 28-category" risk database andreviewed, optimized, and re-engineered 82 processes covering key areas such as sales, procurement, expenses, andcontracts, thereby integrating risk management with business process workflows.The Company emphasizes closed-loop management of risk assessment, monitoring, early warning, and response.We optimize the monthly risk monitoring report mechanism and continuously enhance the Company's risk resilienceby expanding sales channels, extending production bases, strengthening quality management, and organizingcompliance risk training.The Company strengthens digital empowerment by integrating digital control measures into key processes, graduallyadvancing the graphical and visual representation of risk controls, thereby effectively enhancing the effectiveness ofrisk management.
The Board of Directors has established an Audit Committee to lead and supervise internal audit work, reviewingthe internal audit work reports and work plans each quarter. The Company has conducted seven internal auditprojects and undergone four external audits and inspections. We strictly implement the audit rectification system,emphasizing root cause management, increasing follow-up and supervision efforts, and incorporating rectificationresults into performance evaluations to continuously improve the effectiveness of addressing audit findings.The Company maintains an internal control mechanism where each party performs its duties, assumes itsresponsibilities, and provides mutual checks and balances. We increase testing efforts in key business areas andcritical processes. At least once a year, the Company conducts a self-evaluation of internal controls, issues anInternal Control Evaluation Report, and submits it to the Board and the Audit Committee for review.The Company regularly maintains internal control documentation and has revised theInternal Control ManagementManual (2024). We optimize control standards and procedures, improve operational efficiency, and strengthen cross-departmental compliance reviews to prevent and mitigate operational risks.
Each year, directors, supervisors, and senior management participate in compliance training organized by regulatorybodies. The Company organizes company-wide training on legal compliance management and the restructuringof the risk control and compliance system. External lawyers are invited to conduct legal education, organize legalseminars, and analyze typical cases, enhancing our risk control and compliance awareness and performancecapabilities.
Zhonghong Medical consistently implements the requirements of Chinese laws and regulations, such as theTrademark Lawand thePatent Law, respecting and protecting the intellectual property rights (IPRs) of others while ensuring that our own IPRsare properly managed and maintained. The Company standardizes the development of our IPR management system, promptlyregisters patents for latest research achievements, and ensures that the use of trademarks, fonts, software, and other elementscomplies with contractual authorization requirements. During the reporting period, WE did not encounter any major infringementor IPR disputes. Regular IPR training is conducted for employees, and warning emails are sent to regulate employee behavior andprevent infringement risks.
IPR protection
Hengbao Health passes the review of the GB/T 29490-2013 Intellectual Property ManagementSystem certification.
Patents obtained in total, including
Utility model patents
Design patents
In 2024
Invention patents
2024 Sustainability (ESG) Report
| 57 | 58 |
Integrity building is an essential element for a company to achieve coordinated, stable, and high-quality development. ZhonghongMedical strictly complies with anti-corruption and anti-commercial bribery laws and regulations. In accordance with theEmployeeCode of Professional Ethicsand theIntegrity Risk Prevention Manual, the Company enhances its management systems andpolicies related to integrity, prohibits employees from engaging in any form of bribery, and strengthens the constraints andsupervision of power implementation to prevent incidents of corruption, embezzlement, and bribery. An open reporting email andhotline are available, encouraging customers, employees, suppliers, and others to report misconducts to the Supervision Office viaemail, letter, or face-to-face meetings, ensuring the confidentiality and proper handling of whistleblowers and their reports.
Anti-corruption
Zhonghong Medical adheres to the principles of fairness and justice, regulating its business conduct according to codesof commercial ethics. The Company organizes a variety of integrity culture activities to ensure that the ethos of honesty,responsibility, and integrity supports the Company's steady and long-term development.Business Ethics
Zhonghong Medical strictly adheres to theLaw on Guarding State Secrets, Cybersecurity Law, Consumer Rights ProtectionLaw, and other relevant laws and regulations concerning information security and personal privacy protection. The Companyimplements itsNetwork and Information Security Management Regulationsand strengthens organizational leadership in networksecurity work. We also regularly organize inspections and evaluations, and have established a comprehensive accountabilitymechanism. Besides participating in cybersecurity drills, we regularly conduct security vulnerability scans and risk assessmentsof network equipment and systems, and continuously monitor the operational status of security devices such as firewalls andintrusion detection systems. The Company has developed an emergency response mechanism for security incidents, whichenables a regular backing up and storage of important data, with detailed data recovery plans in place. The Company strictlyprohibits sharing or transferring important business information and personal privacy data to other companies, organizations, orindividuals without regulatory approval and consumer consent. Through cybersecurity knowledge training, the Company promotesbasic network knowledge, virus prevention, and information confidentiality, enhancing employees' ability to identify, prevent, andhandle network security risks.
Zhonghong Medical places great emphasison building a culture of integrity. Externally,the Company establishes fair and positivecooperative relationships with partners,industry associations, and other externalorganizations, strengthening the preventionand control of integrity risks in key areas. Allpurchasers are required to sign theIntegrityCommitment Letter. Internally, the Companyfosters an atmosphere of integrity throughvarious means, such as sending internalemails and official notifications, distributingeducational materials on integrity, organizingintegrity warning education activities, andencouraging employees to sign integritycommitments and recite family values thatpromote integrity. These efforts continuouslyenhance employees' ability to identifycorruption risks and their awareness ofbusiness integrity.
Information security
Key Performance Table
RevenueRMB million2,456.6507
Total assetsRMB million7,230.3608Owner's equityRMB million5,620.6856Total profitRMB million-66.9034
Net profitRMB million-85.8304
Net profit attributable to shareholders of
the parent company
RMB million-87.1289
Total investment in environmental
protection
RMB million 10.0882Total GHG emissionstCO
e818,075.31Scope 1 GHG emissionstCO
e9,453.28Scope 2 GHG emissionstCO
e808,622.03GHG emission intensitytCO
e/RMB 10,0003.3300Total wastewater dischargedm
2,553,541.44Total industrial wastewaterm
2,330,200.54Total domestic wastewaterm
223,340.90
Total wasteton3,041.05Total hazardous wasteton1,276.65Intensity of hazardous wasteton/RMB 10,0000.0052Total non-hazardous wasteton1,764.40Intensity of of non-hazardous wasteton/RMB 10,0000.0072
Total energy consumptiontce247,903.11
Coal consumptionton1,619.48Gasoline consumptionL6,578.66
Economic
Environmental
Indicator
Indicator
2024
Unit2024
Unit
"Promoting Integrity in Family Values, Building Goodwill Families" integrity education activity
2024 Sustainability (ESG) Report
| 59 | 60 |
Diesel consumptionL59,997.43Natural gas consumptionm
346,615.00Consumption of coke oven gasm
6,026,192.00
Purchased electricityMWh363,324.69Steam consumptionton2,019,403.85Direct energy consumptiontce5,401.93Indirect energy consumptiontce242,501.18Energy intensitytce/RMB 10,0001.0091Clean energy usageMWh3,751.00Total water consumptionton2,541,786.74Domestic water consumptionton304,806.94Industrial water consumptionton2,236,979.80Water resource utilization intensityton/RMB 10,00010.3466
2024
Total employeesheadcount4,228
Maleheadcount1,443Femaleheadcount2,785< 30 years oldheadcount
30-50 years oldheadcount3,473
> 50 years oldheadcount
Social
IndicatorUnit
Employees from ethnic minoritiesheadcount173Investment in work-related injury
insurance for employees
RMB million1.9895Coverage rate of work-related injury
insurance
%
97.28
Work-related fatalities over the past
three years
headcount0
Work-related fatality rate over the past
three years
%
Employee training expenditure RMB 224,800
Employee training sessions time403
Total employees trainedheadcount2,826Employee training coverage rate%
66.84
Total hours of employee training hour13,219.80Total tax paymentRMB million46.7684Total suppliers-
Percentage of products that need to bewithdrawn and recalled due to health
and safety reasons
%
Customer complaint resolution rate%100R&D investment
RMB million 98.3142Proportion of total R&D investment to
main business revenue
%
4.00
R&D personnelheadcount516Proportion of R&D personnel%12.20Total invention patents-
Number of invention patent applications-
Number of authorized invention patents-
Number of valid patents-
20242024IndicatorIndicatorUnitUnit
Note: e Company pays work-related injury insurance for all employees, except for retired and rehired employees.
2024 Sustainability (ESG) Report
| 61 | 62 |
2024Total directorsheadcount9
Total female directorsheadcount2Total independent directorsheadcount3
Stock pledge ratio%0Shareholders' meetings heldtime4Announcements and reports, etc. released on the
exchanges
-
Amounts involved in data security incidentsRMB million0Number of major litigation, arbitration and other
risk events involved
-
Percentage of directors trained in anti-commercial
bribery and anti-corruption
%100
Percentage of management personnel trained in
anti-commercial bribery and anti-corruption
%100
Percentage of employees trained in ant-commercial bribery and anti-corruption
%100
Governance
IndicatorUnit
GRI Content IndexStatement of use
Zhonghong Medical has prepared this report in accordance with the GRI Standards for theperiod from January 1, 2024 to December 31, 2024.GRI 1 usedGRI 1: Foundation 2021
Page/remark
GRI 2：
Generaldisclosures 2021
2-1 Organizational details
2-2 Entities included in the organization’s sustainability reportingAbout This Report2-3 Reporting period, frequency and contact pointAbout This Report2-4 Restatements of information
No restatements of informationduring the reporting period2-5 External assurance
Lack of information/incomplete(No external assurance )2-6 Activities, value chain and other business relationships3-6、31-362-7 Employees39-402-8 Workers who are not employees39-402-9 Governance structure and composition552-10 Nomination and selection of the highest governance body
2-11 Chair of the highest governance body552-12 Role of the highest governance body in overseeing themanagement of impacts
2-13 Delegation of responsibility for managing impacts552-14 Role of the highest governance body in sustainability reporting
2-15 Con?icts of interest
SeeZhonghong Medical AnnualReport 2024 for details2-16 Communication of critical concerns552-17 Collective knowledge of the highest governance body552-18 Evaluation of the performance of the highest governance body
2-19 Remuneration policies552-20 Remuneration policies552-21 Annual total compensation ratio
Confidentiality restrictions (Trade secrets)2-22 Statement on sustainable development strategy22-23 Policy commitments19、39、552-24 Embedding policy commitments562-25 Processes to remediate negative impacts31-36、412-26 Mechanisms for seeking advice and raising concerns412-27 Compliance with laws and regulations56-58
GRI StandardDisclosures
Index2024
2024 Sustainability (ESG) Report
| 63 | 64 |
GRI 2：
Generaldisclosures 2021
2-28 Membership associations512-29 Approach to stakeholder engagement11-122-30 Collective bargaining agreements41GRI 3: Material Topics2021
3-1 Process to determine material topics10-113-2 List of material topics11EconomicGRI 205 Anti-corruption 2016
3-3 Management of material topics59205-1 Operations assessed for risks related to corruption59205-2 Communication and training about anti-corruptionpolicies and procedures
205-3 Confirmed incidents of corruption and actions taken
GRI 206 Anti-competitive Behavior
3-3 Management of material topics56206-1 Legal actions for anti-competitive behavior, anti-trust,and monopoly practices
EnvironmentalGRI 301 Materials2016
3-3 Management of material topics21301-1 Materials used by weight or volume21301-2 Recycled input materials used21301-3 Reclaimed products and their packaging materials21
GRI 302 Energy 2016
3-3 Management of material topics20302-1 Energy consumption within the organization20、60-61302-2 Energy consumption outside of the organization
Lack of information /incomplete(No data and will improve in the future)302-3 Energy intensity61302-4 Reduction of energy consumption20-21302-5 Reductions in energy requirements of products andservices
20-21
GRI 303: Water andEffluents 2018
3-3 Management of material topics21-23303-1 Interactions with water as a shared resource21-23303-2 Management of water discharge-related impacts22-23303-3 Water withdrawal21303-4 Water discharge22、60303-5 Water consumption21、61
GRI 305: Emissions2016
3-3 Management of material topics22305-1 Direct (Scope 1) GHG emissions23、60305-2 Energy indirect (Scope 2) GHG emissions23、60305-3 Other indirect (Scope 3) GHG emissions
Lack of information /incomplete (No data and will improve in the future)305-4 GHG emissions intensity23、60305-5 Reduction of GHG emissions
Lack of information /incomplete (No data and will improve in the future)305-6 Emissions of ozone-depleting substances (ODS)N/A (No ODS emissions)305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and othersignificant air emissions
SeeZhonghong Medical AnnualReport 2024 for details
GRI 306: Waste 2020
3-3 Management of material topics22306-1 Waste generation and significant waste-related impacts
306-2 Management of signi?cant waste-related impacts22306-3 Waste generated22、60306-4 Waste diverted from disposal22、60306-5 Waste directed to disposal22、60
GRI 308：
Supplier Environm
3-3 Management of material topics32308-1 New suppliers that were screened using environmentalcriteria
308-2 Negative environmental impacts in the supply chain andactions taken
32-34
Social
GRI 401:
Employment 2016
3-3 Management of material topics39401-1 New employee hires and employee turnover
Confidentiality restrictions(Due to confidentiality requirements,
disclosure is omitted)401-2 Benefits provided to full-time employees that are notprovided to temporary or part-time employees
401-3 Parental leave41
GRI 403：
Occupational Healthand Safety 2018
3-3 Management of material topics43403-1 Occupational health and safety management system
403-2 Hazard identification, risk assessment, and incidentinvestigation
43-44
403-3 Occupational health services43-44403-4 Worker participation, consultation, and communicationon occupational health and safety
43-44403-5 Worker training on occupational health and safety44403-6 Promotion of worker health43-44403-7 Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships
43-44403-8Workers covered by an occupational health and safetymanagement system
Page/remarkPage/remarkGRI StandardGRI StandardDisclosuresDisclosures
2024 Sustainability (ESG) Report
| 65 | 66 |
GRI 403：
OccupationalHealth and Safety2018
403-9 Work-related injuries44403-10 Work-related ill health43GRI 404：
Training andEducation 2016
3-3 Management of material topics42404-1 Average hours of training per year per employee62
404-2 Programs for upgrading employee skills andtransition assistance programs
42-43404-3 Percentage of employees receiving regularperformance and career development reviews
42-43
GRI 405：
Diversity andEqual Opportunity2016
3-3 Management of material topics39405-1 Diversity of governance bodies and employees39-40405-2 Ratio of basic salary and remuneration of womento men
Confidentiality restrictions (Trade secrets)GRI 406：
Non-discrimination 2016
3-3 Management of material topics40406-1 Incidents of discrimination and corrective actionstaken
No related casesGRI 408：ChildLabor2016
3-3 Management of material topics40408-1 Operations and suppliers at significant risk forincidents of child labor
No related casesGRI 409：Forced orCompulsory Labor2016
3-3 Management of material topics40409-1 Operations and suppliers at significant risk forincidents of forced or compulsory labor
No related casesGRI 413: LocalCommunities 2016
3-3 Management of material topics52413-1 Operations with local community engagement,impact assessments, and development programs
413-2 Operations with significant actual and potentialnegative impacts on local communities
GRI 414：
Local Communities2016
3-3 Management of material topics32414-1 New suppliers that were screened using social criteria
414-2 Negative social impacts in the supply chain andactions taken
32-34GRI 416：
Customer Health andSafety 2016
3-3 Management of material topics34416-1 Assessment of the health and safety impacts ofproduct and service categories
34-35416-2 Incidents of non-compliance concerning the healthand safety impacts of products and services
No related casesGRI 417：
Marketing andLabeling 2016
3-3 Management of material topics36417-1 Requirements for product and service informationand labeling
417-2 Incidents of non-compliance concerning productand service information and labeling
No related cases417-3 Incidents of non-compliance concerning marketingcommunications
No related casesGRI 418：
Customer Privacy 2016
3-3 Management of material topics36418-1Substantiated complaints concerning breachesof customer privacy and losses of customer data
No related cases
Content Index of the Self-Regulatory Guidelines No. 17 for Companies Listed onShenzhen Stock Exchange—Sustainability Report (For Trial Implementation)
TopicsCorresponding termsPage
Environmental
1Climate responseArticles 21 to 28232Pollutant dischargeArticle 30223Waste disposalArticle 3122
Ecosystem and biodiversity
protection
Article 32N/A
Environmental compliancemanagement
Article 3319
Energy utilizationArticle 3520-21
Water resources utilizationArticle 3621
Circular economyArticle 3721、24
Social
Rural vitalizationArticle 39N/A
Social contributionsArticle 4047-52
InnovationArticle 4213-16
Ethics of science andtechnology
Article 43N/A
Supply chain securityArticle 4531-34
Equal treatment of SMEsArticle 4655
Product and service safetyand quality
Article 4727-30、34-35
Data security and customer
privacy
Article 4836、59
EmployeesArticle 5039-44
Sustainability-relatedgovernance
Due diligenceArticle 5231-32、56-58
Stakeholder engagementArticle 5311-12
Anti-commercial bribery andanti-corruption
Article 5559
Fair competitionArticle 5656-57
DimensionNo.
Page/remarkGRI StandardDisclosures
2024 Sustainability (ESG) Report
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In 2024, Zhonghong Medical made solid progress in ESG management and received several authoritative ESG awards inrecognition of our outstanding performance. Looking forward, we will deepen our ESG strategy, align with UN SDGs, and explorepathways to high-quality development, steering the medical industry toward a more responsible future.We will leverage the leading role of innovation to invigorate the medical industry.In 2025, we will continue to build a full-value-chain digital management platform, enabling smart monitoring of productionprocesses and optimized resource allocation. Based on our R&D system formed by Beijing Research Institute, Shanghai ResearchInstitute (to be built), Yichun Research Institute, Shenzhen Research Institute, Guilin Research Institute, and Hainan Subsidiary, wewill focus on cutting-edge fields such as advanced materials and smart medical devices. We will also strengthen partnerships withuniversities, deepen industry-university-research-healthcare collaboration, and develop AI-assisted medical devices to acceleratethe commercialization of research outcomes.We will embrace a low-carbon transition to set a new industry benchmark.In 2025, we will deepen our dual-carbon practices by piloting assessments of climate-related risks and opportunities.Comprehensive energy-efficient upgrades will be rolled out at our five major production sites in Tangshan, Jiujiang, Yichun, Guilin,and Shenzhen. We will expand the use of renewable energy, enhance waste recycling, and strengthen pollutant management.These efforts are intended to promote green operations and minimize the lifecycle environmental impact of our products.
We will build a shared ecosystem and expand collaboration networksIn 2025, we will foster a harmonious and caring workplace to strengthen team cohesion. We will tighten suppliers’ ESGmanagement and build a more resilient and responsible supply chain. Deeper cooperation with domestic and internationalpartners will help us deliver high-quality medical products and services to a broader population. We will also contribute to socialcharity and community development as a responsible corporate citizen.We will cement our corporate foundation to support future growthIn 2025, we will refine our ESG management framework and system. This includes enhancing corporate governance structures,formulating a sustainability strategy, improving communication with investors, fostering a culture of internal control andcompliance, and reinforcing our risk management mechanisms. Upholding business ethics, we will elevate our corporategovernance.In 2025, a year when China concludes its 14th Five-Year Plan, Zhonghong Medical will remain steadfast in delivering ESGprinciples. Through innovation, green practices, governance reform, and cooperation, we will unlock new quality productive forcesand create lasting value for our shareholders, employees, customers, and society.
Outlook for 2025