For the Health For the Future
01 The Report at a Glance........402 Chairman’s Statement .........6
About Joincare ...... 8
3.1 Group Overview ...............................9
3.2 Organisational Structure ................12
3.3 Corporate Culture ...........................13
3.4 Key Performance ..........................13
3.5 Honours ..........................................14
Sustainability Management ....164.1 Sustainability Governance .............17
4.2 Sustainability Strategy ...................18
4.3 Impact, Risk and Opportunity
Management ...... 23
4.4 Support for United Nations
Sustainable Development Goals ...... 26
Responsible Governance ........305.1 Compliance Governance ................31
5.2 Carrying Forward the Party-Masses
Spirit ...... 34
5.3 Integrity and Business Ethics .........35
5.4 Information Security .....................39
Safeguarding Product Quality 40
6.1 Quality Management System .........41
6.2 Quality Risk Control ......................48
6.3 Quality Training for Employees .....52
6.4 Intellectual Property Rights
Protection ...... 54
6.5 Protection of Customer Rights and
Interests ...... 56
6.6 Supply Chain Management ............60
0807Access to Healthcare ...... 67
7.1 Focusing on R&D and Innovation .68
7.2 Paying Attention to Rare Diseases
Treatment ...... 75
7.3 Improving Product Availability ......76
7.4 Improving Product A?ordability ....79
7.5 Improving Healthcare ...................82
Talent Management ...... 89
8.1 Protection of Rights and Interests of
Employees ...... 90
8.2 Improving Talent Management ......94
8.3 Occupational Health and Safety ...106
Operating with GreenSustainability ...... 113
9.1 Environmental Management System .114
9.2 Addressing Climate Change ..........118
9.3 Energy Management ....................124
9.4 Emission Management .................126
9.5 Resource Utilisation Management 130
9.6 Biodiversity Conservation ...........132
Public Welfare and Charity ..133
10.1 Promoting Industry Development .134
10.2 Promoting Health-based Welfare
and Charity ...... 135
10.3 Engaging in Public Welfare .......140
Appendix ...... 142
11.1 Index of the Guidelines No. 14 of
Shanghai Stock Exchange for Self-Regu-lation of Listed Companies—Sustainabili-ty Report (Trial) ...... 142
11.2 Data List of Key Performance
Indicators ...... 143
01 The Report at a Glance
OverviewSince 2018, Joincare Pharmaceutical Group Industry Co., Ltd. (Stock Code: 600380) has consecutively issued corporate socialresponsibility (CSR) reports for seven years. Starting from this year, we have renamed the report as the "Sustainability Report",aiming to present comprehensively to the stakeholders the Group's commitments, measures and performance in the aspectsof fulfilling social responsibility, managing environmental sustainability and corporate governance from a more professionalperspective. The report covers the period from 1 January 2024 to 31 December 2024. In view of the continuity and comparabilityof certain data, some contents of this report may be extended or traced back to other periods where applicable.Scope of the ReportThe report covers Joincare and its wholly-owned subsidiaries and holding subsidiaries, which is consistent with the scope of theconsolidated nancial statements in the annual report.Preparation BasisThis report is prepared mainly in accordance with the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation ofListed Companies—Sustainability Report (Trial) and the Corporate Sustainability Disclosure Standards—Basic Standards (ForTrial Implementation), and meanwhile refers to the Environmental, Social and Governance Reporting Code published by theHong Kong Stock Exchange. To ensure the completeness, materiality, authenticity and balance of the content, the preparation ofthis report has gone through a systematic set of procedures, including identifying key stakeholders, identifying and prioritisingmaterial issues, determining the scope of this report, collecting relevant materials and data, reviewing the data and preparing thereport based on the information gathered.
DenitionsFor the sake of compendious expression and smooth reading, unless otherwise specified, “Joincare”, “the Group”, “Group”and “we” mentioned in this report all refer to Joincare Pharmaceutical Group Industry Co., Ltd. This report involves severalsubsidiaries of Joincare. Moreover, the full names and abbreviations of the subsidiaries used in the report are listed below:
Company NameAbbreviationShenzhen Haibin Pharmaceutical Co., Ltd.Haibin PharmaXinxiang Haibin Pharmaceutical Co., Ltd.Xinxiang HaibinShenzhen Taitai Pharmaceutical Co., Ltd.Taitai PharmaceuticalJiaozuo Joincare Bio Technological Co., Ltd.Jiaozuo JoincareJoincare Haibin Pharmaceutical Co., Ltd.Joincare HaibinShanghai Frontier Health Pharmaceutical Technology Co., Ltd. Shanghai Frontier
Livzon Pharmaceutical Group Inc. Livzon GroupSichuan Guangda Pharmaceutical Manufacturing Co., Ltd. Sichuan GuangdaShanghai Livzon Pharmaceutical Manufacturing Co., Ltd.Shanghai Livzon
2024 Sustainability Report 01 The Report at a Glance
Company NameAbbreviationLivzon Group Livzon Pharmaceutical FactoryLivzon Pharmaceutical FactoryLivzon Group Limin Pharmaceutical Manufacturing FactoryLivzon Limin
Zhuhai Livzon Diagnostics Inc.Livzon Diagnostics
LivzonBio, Inc.LivzonBioZhuhai Livzon Microsphere Technology Co., Ltd.Livzon MicrosphereLivzon Group Xinbeijiang Pharmaceutical Manufacturing Inc.Livzon Xinbeijiang
Gutian Fuxing Pharmaceutical Co., Ltd.Gutian FuxingJiaozuo Livzon Hecheng Pharmaceutical Manufacturing Co., Ltd.Jiaozuo HechengLivzon Group (Ningxia) Pharmaceutical Manufacturing Co., Ltd.Ningxia PharmaceuticalZhuhai FTZ Livzon Hecheng Pharmaceutical Manufacturing Co., Ltd.Livzon HechengLivzon Group Fuzhou Fuxing Pharmaceutical Co., Ltd.Fuzhou FuxingData Sources and Reliability StatementData and cases disclosed in this report are derived from official documents, statistical reports, relevant public informationand internal reporting documents. Joincare guarantees that this report does not contain any false representation or misleadingstatement and assumes liability for the authenticity, accuracy and completeness of this report.Conrmation and Approval of this Report
The contents of this report have been confirmed by the management and been approved by our Board of Directors on 24 April2025.Access and Response to the ReportThis report can be accessed or downloaded from the o?cial website of the Shanghai Stock Exchange (www.sse.com.cn) and ouro?cial webpage (www.joincare.com). Should you need to make further inquiries, comments or suggestions regarding this report,please contact us via fax (0755-86252165) or email (joincare@joincare.com).
Legal StatementThis report contains forward-looking statements regarding Joincare's future sustainability strategy, objectives, and plans. Thesestatements are grounded in the Group's current judgments and expectations. However, the actual outcomes may vary owing tosignificant uncertainties, such as fluctuations in the market environment, changes in policies, and technological advancements.The inclusion of a particular piece of information in this report should not be construed as a characterization of the signicanceor financial impact (or potential impact) of that information. To obtain a more comprehensive understanding of our financialperformance and operations, please refer to our annual report and the various announcements issued on the website of theShanghai Stock Exchange (www.sse.com.cn).This report is originally written in Chinese, and this English version is for stakeholders’ reference only. Should ambiguities arisebetween the two versions, the Chinese version shall prevail.
02 Chairman’s Statement
Dear stakeholders and friends,
Looking back on 2024, the pharmaceutical market has sustained its growth momentum, with drug innovation drivingtransformation. The R&D environment has been continuously optimised, and the regulatory framework has becomeincreasingly robust. In response to emerging industry trends and opportunities, we remain committed to our missionof “For the health, For the future”. By prioritising technological innovation and clinical needs, we are acceleratingour technological transformation to foster development and break new ground.The Group places paramount importance on sustainability, consistently ranking leading positions in multiple ESGratings. Notably, we maintained the MSCI ESG rating of “AA” and were included in the Sustainability Yearbook(China Edition) 2024 by S&P Global. We made our debut in the S&P Global Sustainability Yearbook 2025.Additionally, we were awarded a “B” rating in CDP’s Climate Change Questionnaire. These honours reflect bothdomestic and global capital markets’ recognition of our sustainable development management practices.Innovation as the Priority, Jointly Pursuing High-Quality DevelopmentThe Group prioritises technological innovation as the core driver of developing new quality productive forces.Dedicating substantial resources to innovative drug R&D, we aim to ceaselessly deliver high-quality pharmaceuticalproducts and health solutions. In 2024, multiple innovative drug R&D projects achieved significant milestones.Notably, the new anti-influenza drug Pixavir Marboxil Capsules successfully completed regulatory filing forproduction (i.e. NDA); the TSLP monoclonal antibody, an innovative GSNOR inhibitor, and a new dual-target drugMABA advanced to Phase II clinical trials; the Nav 1.8 inhibitor for analgesia and a PREP-targeted oral medicationreceived approvals for clinical trials. To date, Joincare has built a pipeline of over 20 innovative drugs spanningrespiratory, pain management, gastroenterology, assisted reproduction, and Psychiatry. The Company's innovation-driven strategy continues to advance steadily.The Group actively explores AI-powered applications to accelerate its digital and intelligent development. Byintegrating cutting-edge AI methodologies with molecular science, we enhance efficiency and quality acrosscritical R&D stages such as molecular discovery, pharmaceutical research and clinical trials. Upholding thequality management concept of high standards and stringent requirements, we apply intelligent manufacturingtechnologies in drug production by thoroughly integrating digital management with the lean manufacturing model.Moreover, we have established a robust intelligent manufacturing system and modern factory layout, forming anintelligent production network covering multiple provinces nationwide. Furthermore, AI applications extend tointernal operations, including marketing and sales. These e?orts continuously promote the Group’s high-quality andsustainable development.
Collaboration as the Cornerstone, Jointly Empowering Stakeholder Growth
The Group regards employees as the driving force and invaluable asset for corporate sustainability. We are dedicatedto safeguarding their rights and interests, unblocking communication channels, protecting their health and safety,and fostering a diverse, inclusive, and stable working environment. We actively support employee development by
2024 Sustainability Report 02 Chairman’s Statement
providing tailored training courses across all levels and roles, and implementing scientic remuneration and incentivemechanisms to enhance talent retention. We are committed to share corporate achievements with our employees.We actively collaborate with suppliers and uphold the supplier management philosophy of “Open Cooperation,Resource Sharing and Mutual Benefit”. Our Code of Conduct for Suppliers clearly outlines ESG requirements forsuppliers. We conduct regular supplier audits and assessments, and fully support their capacity building. We spare noe?ort to empower the development of suppliers through training, exchanges, and cooperation.Responsibility as the Foundation, Co-Creating a Sustainable FutureAs a responsible corporate citizen, the Group proactively fulfils our main responsibility in environmentalgovernance and climate change by assessing the climate-related risks facing our business and implementing targetedcountermeasures. We have established long-term carbon emission goals, strictly regulated our emission practices,and constantly improved energy and resource utilisation efficiency. To align with China’s 3060 Dual Carbon Goals(carbon peak by 2030 and carbon neutrality by 2060), we plan to achieve carbon peak emissions by 2028 and carbonneutrality across the entire value chain by 2055.The Group actively responds to the nation’s call to contribute to all-around rural vitalisation. We persistentlyimplement the “Access to Public Welfare for Chronic Diseases Prevention and Treatment Programme”(普惠慢病防治公益项目) across multiple regions, e?ectively alleviating the nancial burden of low-income families andpreventing poverty caused or exacerbated by illness. We systematically organise health-related and education-basedpublic welfare activities to disseminate knowledge of daily health. We also actively engage in community welfarecampaigns, and mobilise employees to participate in volunteer services, spreading care and kindness.Looking ahead to 2025, Joincare will remain committed to the concept of sustainable development, anchored by ourcore values of “Putting people first, Valuing workmanship and quality, Pursuing innovation and truth, Promotingcooperation and sharing”. Staying true to our founding aspirations, we will deepen our roots in the pharmaceuticalsector, uphold our societal responsibilities, and strive tirelessly for the advancement of human health.
Chairman: Zhu Baoguo
April 24, 2025
About Joincare
3.1 Group Overview
The Group has strong R&D capabilities and internationalized R&D concept in the elds of chemical pharmaceuticals, traditionalChinese medicine, biologics, diagnostic reagents, and healthcare products. In recent years, with innovation-driven as the coredevelopment strategy, the Group has efficiently established a highly promising R&D pipeline of innovative products focusingon important areas such as respiratory, pain management, gastroenterology, assisted reproduction, and neuropsychiatry. Thecontinued transformation and commercialization of these innovative products will further enhance the Group' s product portfolioand business layout, thereby strengthening its core competitiveness.
The business scope of Joincarecovers multiple areas
Chemicalpharmaceuticals
Biologics
Chemical active pharmaceuticalingredients (APIs) and intermediates
Traditional Chinesemedicine (TCM) drugs
Diagnostic reagents andequipment
Health careproducts
Table: Main Products of the GroupChemical Pharmaceuticals
1.Respiratory
壹丽安?(Ilaprazole Sodium forInjection)
壹丽安?(Ilaprazole Enteric-Coated Tablets)
丽珠得乐?
(Bismuth PotassiumCitrate Tablets)
丽珠维三联?(Bismuth Potassium Citrate Tablets/Tinidazole Tablets/Clarithromycin
Tablets)
贝依?(Leuprorelin AcetateMicrospheres for Injection)
丽申宝?(Urofollitropin for Injection)
健可妥?
(Tobramycin Inhalation
Solution)
丽舒同?(Levosalbutamol HydrochlorideNebuliser Solution)
雾舒?
(Budesonide Suspension forInhalation)
健可畅?(Salmeterol Xinafoate and FluticasonePropionate Powder for Inhalation)
丽福康?
(Voriconazole for Injection)
康尔汀?
(Perospirone Hydrochloride Tablets)
倍能?
(Meropenem for Injection)
瑞必乐?(Fluvoxamine Maleate Tablets)
2. Gastroenterology
3. Gonadotropic hormones4. Psychiatry5. Anti-infection
2024 Sustainability Report 03 About Joincare
Mycoplasma pneumoniae IgMAntibody Test (Colloidal goldmethod)Antinuclear Antibody TestKit (17) (Magnetic BarcodeImmunouorescence)
Diagnostic reagents and equipmentHealth care products and OTC
Cold medicineAnti-viral Granules
Anti-tumourShenqi Fuzheng Injection
Anti-tumour andcold medicine
TCM drugs
Chemical APIs andintermediates
Eagle’s AmericanGinseng Tea
Taitai Oral Liquid
Jingxin Oral Liquid
DexamethasoneAcetate AdhesiveTablets
安维泰?(Tocilizumab Injection)丽康乐?(Mouse Nerve GrowthFactor for Injection)
Biologics
PhenylalanineVancomycin HydrochlorideDaptomycinCeftriaxone7-ACAMeropenem TrihydrateMevastatinAcarbose
Veterinary drugsMilbemycin Oximeand Moxidectin
Drugs for humans
3.2 Organisational Structure
Shareholders’ Meeting
Remuneration Committee
Nomination CommitteeSustainable DevelopmentCommitteeAudit CommitteeCEO
Board of DirectorsBoard of Supervisors
O?ce of the Board
of Directors
Strategy and RiskManagement Committee
Organisational Structure of
Joincare
Sales Management CentreProduction Management CentreR&D Management CentreIntegrated Management CentreFinancial Management CentreRisk Management Department
2024 Sustainability Report 03 About Joincare
3.3 Corporate Culture
3.4 Key Performance
During the reporting period, Joincare achieved total revenues of RMB 15.619 billion, achieved net profits attributable to shareholders of thelisted company of RMB 1.387 billion, and achieved net prot attributable to shareholders of the listed company after extraordinary gain or lossof RMB 1.319 billion.At the same time, the Group has been actively undertaking corporate social responsibilities and constantly creating social value. In 2024, theGroup generated tax revenues for the government of RMB 1.982 billion, paid RMB 2.474 billion in salary to employees, distributed dividendsand paid interest worth RMB 1.501 billion to banks and other creditors, donated funds and goods totalling RMB 14.0428 million to society.
Mission
Vision
Core values
For the health, For the future
Diligently make high-
quality drugs andinnovative drugs
Putting people rstValuing workmanship andqualityPursuing innovation andtruthPromoting cooperation andsharing
Total revenuesRMB
15.619
billionSalarytoemployees
RMB
2.474
billion
Net prots attributable toshareholders of the listed companyRMB
1.387
billion
Donated funds and goods
RMB
14.0428
million
Tax revenues for the governmentRMB
1.982
billion
Since the establishment in 1992, Joincare hasconstantly been focusing on the field of healthcare,always staying true to its original aspiration in itsongoing inheritance and innovation. Gradually, wehave formed a corporate mission - “For the health,For the future”. Along this journey, we always act inthe interests of patients and focus on safeguardinghuman life and health. We take scientific andtechnological innovation as the strategic foundation,adhere to the innovation-driven strategy, and carefullyconceive a new vision of “Diligently make high-quality drugs and innovative drugs”. In addition,we actively and continuously contribute to buildinga community with a shared future for the public.Even while focusing on business development, wetake “Putting people first, Valuing workmanship andquality, Pursuing innovation and truth, Promotingcooperation and sharing” as core values. We considerthe quality of products, the training of talents, andthe strength of R&D of the utmost importance,thereby advocating the coexistence of the humanisticspirit and the scientific spirit, and actively assumingobligations and responsibilities for the developmentof human health.
3.5 Honours
Date of issueAwards & HonoursIssued by
January 2024Shenzhen Healthy Enterprises in 2023
Shenzhen Patriotic Health Campaign Committee,Public Hygiene and Health Commission ofShenzhen Municipality, Industry and InformationTechnology Bureau of Shenzhen Municipality,Ecology and Environment Bureau of ShenzhenMunicipality, Market Regulation Bureau ofShenzhen Municipality, Shenzhen Federation ofTrade Unions, Shenzhen Municipal Committee ofthe Communist Youth League of China, ShenzhenWomen's FederationMarch 2024
Special Contribution Award and China Red CrossFraternity Medal
Red Cross Society of ChinaMarch 2024
Renowned Enterprise's Sincere Care Warms BoméCounty, Good Medicines of Livzon Protect Health
People's Government of Bomê County, Tibet
Autonomous RegionMay 2024
Enterprise Donates Medicines to Protect Health,Chronic Diseases in Remote Areas Get Improved
People's Government of Tuoketuo County, Inner
Mongolia Autonomous RegionApril 2024
Care for Special Children and Practice the Spirit ofPublic Welfare
Jinsenianhua Special Children Intervention Center,
Nanshan District, ShenzhenJune 2024
"Green Channel" Enterprise in Nanshan District,Shenzhen
People's Government of Nanshan District,
ShenzhenJuly 2024
Ranked 47th in the Top 100 of China'sComprehensive Pharmaceutical R&D StrengthRanking in 2024
Yaozh.com, Organizing Committee of China
Pharmaceutical R&D ? Innovation Summit, China
Pharmaceutical IndustryJuly 2024
Ranked 25th in the Top 100 of China's ChemicalPharmaceutical R&D Strength Ranking in 2024
Yaozh.com, Organizing Committee of China
Pharmaceutical R&D ? Innovation Summit, China
Pharmaceutical IndustryJuly 2024
Selected for the Sustainability Yearbook (ChinaEdition) 2024
S&P GlobalJuly 2024
Renowned Enterprise's Loving Care WarmsPeople's Hearts, Good Medicines of Livzon EnsureHealth
Health Commission of Gêrzê County, Tibet
Autonomous RegionSeptember 2024
Ranked 83rd among the Top 100 ChinesePharmaceutical Industrial Enterprises in 2023
Organizing Committee of the National
Pharmaceutical Industry Information Annual
ConferenceSeptember 2024
Ranked 47th in the Top 100 of the ComprehensiveCompetitiveness of the Pharmaceutical Industry in2024
Organizing Committee of the Health Industry
Ecology ConferenceSeptember 2024
Ranked 463rd among the Top 500 PrivateManufacturing Enterprises in China in 2024
All-China Federation of Industry and CommerceOctober 2024
Ranked 47th among the Top 100 PrivateManufacturing Enterprises in Guangdong Provincein 2024
Guangdong Federation of Industry and Commerce
2024 Sustainability Report 03 About Joincare
Date of issueAwards & HonoursIssued byOctober 2024
Ranked 77th among the Top 100 Private Enterprisesin Guangdong Province in 2024
Guangdong Federation of Industry and CommerceOctober 2024Golden Information Disclosure Award in 2023China Securities JournalNovember 2024
Top 20 in Corporate Governance of ListedCompanies in the Greater Bay Area
Shenzhen Institute of Corporate GovernanceNovember 2024
Best Practice Case of the Board of Directors ofListed Companies in 2024
China Association for Public CompaniesNovember 2024
Excellent Case of Sustainable Development Practiceof Listed Companies in 2024
China Association for Public CompaniesNovember 2024
Industry Inuence Award in the 2024 Capital PowerAnnual Selection
StockstarNovember 2024
ESG "Golden Dawn Award" in 2024 of "SecuritiesMarket Weekly"
Securities Market WeeklyNovember 2024
The Great Love Knows No Bounds, Demonstratingthe Enterprise's Responsibility, EnthusiasticallyParticipating in Public Welfare to Boost RuralRevitalization
The Communist Party Committee of Sunan Yugur
Autonomous County, People's Government of
Sunan Yugur Autonomous CountyDecember 2024
Top 100 of the Second Guoxin Cup ESG GoldenBull Award
China Securities JournalDecember 2024
ESG Award of the Golden Quality Award ofShanghai Securities News in 2024
Shanghai Securities NewsDecember 2024"Value 100" of Yi Dong ESG+8 in 2024ValueOnline
ESG Rating Performance
RatingScore
MSCI ESG RatingAAS&P Global 2024 Corporate Sustainability Assessment (CSA)
Scored 67 in CSA and selected for the S&P Global
Sustainability Yearbook 2025CDP Climate Change QuestionnaireB
Wind ESG RatingACSI ESG RatingAAASNSI ESG RatingAA
SustainabilityManagement
Joincare rmly believes that sustainability management practices is crucial for the Group's growth. Focusing on four dimensions,governance, strategy, impacts, risks and opportunities management, metrics and targets, we have established an effectivesustainability governance framework, rened the processes for identifying, assessing, and managing sustainability-related risksand opportunities, and integrated sustainability metrics and targets into our daily business operations and management. All thesee?orts lay a solid foundation for the enterprise's long-term and high-quality development.
4.1 Sustainability Governance
E?ective sustainability governance system is a strong support for Joincare to implement sustainability strategy and achieve sustainability goals.The Group has established a sustainability management structure that consists of the Board of Directors, the Sustainable Development Committeeand the Sustainable Development Working Group. We continuously implement the Sustainable Development Management System of Joincare,which claries the duties and work scope of the management at all levels and standardises the division of labour among functional departments.By establishing an effective governance framework, improving information disclosure and data management, and strengthening ESG riskassessment and management, we can better incorporate sustainability-related impacts, risks, and opportunities into the company’s strategyimplementation, major transaction decisions, and risk management activities.
The Sustainable Development Committee is composed of three directors, includes one independentdirector, and is chaired by the chairman of the Board of Directors. The three directors respectivelypossess rich experience in corporate management within the pharmaceutical industry, greenproduction, supply chain management, as well as nancial compliance and risk management.The Sustainable Development Committee is responsible for identifying and managing sustainability-related impacts, risks, and opportunities, formulating and improving the Group's major ESGpolicies, guiding the business practices across various departments and subsidiaries. At the sametime, it regularly reports to the board of directors every year on the implementation of ESG policiesand action plans and the achievement of targets, forming a closed-loop management of concepts,goals, strategies, and business practices.The Sustainable Development Working Group, composed of core personnel from relevantbusinesses and key functions of the Group with professional expertise and extensive experience,operates under the guidance of the Sustainable Development Committee. It can e?ciently advanceESG-related work and implement risk control measures. This working group is primarily taskedwith tracking and coordinating the implementation of specific ESG tasks across all departments atthe Group headquarters and its subsidiaries. Additionally, it regularly organizes internal discussionsand meetings to review, discuss, and improve the existing ESG policies.ESG indicators have been incorporated into the individual performance assessment of all membersof our sustainable development working group.
Board of Directors is the highest decision-making body, which makes decisions on all major mattersrelating to sustainability and oversees sustainability-related impacts, risks, and opportunities.Board ofDirectors
SustainableDevelopmentWorking Group
SustainableDevelopmentCommittee
Joincare Sustainability Management Structure and Responsibility
4.2 Sustainability Strategy
Committed to promoting social development, Joincare puts great e?orts into the healthcare industry with innovation to help builda Healthy China and create a green, bright and prosperous future with stakeholders. Focusing on “health”, the Group aligns itssustainability concepts with its development strategy to guide its e?orts to promote sustainable development. We are committedto providing the whole society with high-quality, safe, accessible and affordable medical products and services to better meetthe clinical needs. In addition, we pay close attention to demands of internal and external stakeholders and constantly strengthenmanagement of areas in relation to sustainable development. We continuously empower our employees' growth, activelyundertake responsibility of environmental protection and dedicate to social welfare. These efforts are aimed to promote socialharmony and development.
4.2.1 Communication with Stakeholders
Joincare values the opinions of stakeholders. By establishing a regular and diversified mechanism to communicate withstakeholders, we constantly strengthen our relation with stakeholders. We promptly understand and respond to stakeholders’demands through various convenient channels, aiming to achieve positive interaction with stakeholders and create long-termvalue for stakeholders.
In addition, to improve the Group’s sustainability management, we pay close attention to sustainability cutting-edge trend,actively understand the hot topics and seize the opportunities in the capital market, and keep abreast of the latest regulatorydevelopments relating to sustainable development. We organise training on sustainability management every year. The training isaimed to strengthen management’s awareness of sustainable development and help them to understand and learn about excellentmanagement practice, thus improving our sustainability management performance.
2024 Sustainability Report 04 Sustainability Management
Table: Issues of concern to and communication methods with stakeholders
StakeholdersIssues of ConcernCommunication MethodsEmployees
? Occupational Health and Safety? Talent Attraction, Retention and
Development? Employees' Rights, Interests andTreatment
? Workers' congresses and labour union? Employees' satisfaction survey,occupational healthand safety training
? Platforms for feedback,Daily communication
Investors
? Risk Management? Business Ethics and Anti-Corruption? Product R&D and Technological
Innovation
? Shareholders' meeting? Regular releases of business information and data? Telephone, fax, email? Investor's survey, platforms for interactive
communication and exchange, and externalroadshows
? WeChat o?cial accountConsumers
? Product Quality and Safety? Circular Economy? Business Ethics and Anti-Corruption
? Product labelling and information disclosure
? Regular visits,consumers' satisfaction survey
? Handling of complaints and opinionsDistributors, suppliers
and partners
? Product Quality and Safety? Sustainable Supply Chain
Management
? Responsible Marketing
? Regular communication
? Working meetings and exchanges via telephone
and correspondence, company's website
Government and
regulators
? Product Quality and Safety? Responsible Marketing? Emission Management
? Government-enterprise symposiums
? Supervision and inspection
? Work reports and surveys
? On-site inspectionMedia
? Product R&D and Technological
Innovation? Industry Development and
Cooperation
? Business Ethics and Anti-Corruption
? Company’s website and WeChat o?cial account? Interactive communication platforms, special
reports, external roadshows
Pharmaceutical industry
associations/organisations
? Product R&D and Technological
Innovation? Intellectual Property Rights
Protection
? Emission Management
? Industry organisation meetings, experience sharing
sessions, site visits
Community/
The public
? Access to Healthcare? Charity? Emission Management
? Volunteering activities? Money and medicine donation, medicine
knowledge publicity
4.2.2 Materiality Assessment
The Group continuously conducts stakeholder survey and incorporates annual materiality assessment into the risk managementprocess. To fully understand the concerns and expectations of stakeholders, this year, we introduced the principle of “doublemateriality” into the materiality assessment and invited internal and external stakeholders to participate in questionnaire surveys.Through the surveys, we fully identified and evaluated the impact materiality and financial materiality of each issue, andresponded to each issue in this report based on the assessment result.We determine the material issues by following steps:
Identication of issuesBased on the 21 issues set in theGuidelines No. 14 of Shanghai StockExchange for Self-Regulation of ListedCompanies—Sustainability Report(Trial), and in combination with thecharacteristics of the pharmaceuticalindustry, the industry's developmentstage, the Group's own business modeland value chain, etc., 24 material issueswith the Group's business characteristicshave been formulated.
Research on issuesWe designed questionnaires for "ImpactMateriality Assessment" and "FinancialMateriality Assessment" and invitedvarious stakeholders to participate in theresearch. The research subjects coverthe company's directors, supervisors andsenior management, internal employees,suppliers, investors, consumers,government and regulators, and so on.
Assessment of issuesTaking into account both peerbenchmarking and the results ofstakeholder surveys, we conduct anassessment and analysis from twodimensions: the materiality of the issues'impacts on the economy, society, andthe environment, and the materiality ofthe issues to the company's finances.We identify issues that have financialmateriality, which are also called highlymaterial issues in the report, through thisprocess.
Review of issuesAccording to the results of materialityassessment, a matrix of material issuesand the focus areas of the report in 2024are determined. The results of materialityassessment are submitted to managementand disclosed in the report after reviewby management and approval by theBoard of Directors.
0201
0403
2024 Sustainability Report 04 Sustainability Management
Joincare’s Matrix of Material Issues in 2024Highly Material IssuesModerately Material IssuesGenerally Material Issues
1. Product R&D and Technological Innovation
2. Product Quality and Safety
3. Responsible Marketing
4. Intellectual Property Rights Protection
5. Corporate Governance and Compliance
Operations
6. Risk Management
7. Business Ethics and Anti-Corruption
8. Occupational Health and Safety
9. Talent Attraction, Retention and Development
10. Employees' Rights, Interests and Treatment
11. Customer Privacy and Data Security
12. Stakeholder Communication
13. Sustainable Supply Chain Management
14. Industry Development and Cooperation
15. Emission Management
16. Diversity, Equality and Inclusion
17. Access to Healthcare
18. Environmental compliance management
19. Charity
20.Energy Management
21.Water Resources Management
22.Circular Economy
23.Climate Change Tackling
24.Biodiversity
For the 5 issues that have financial materiality, we have further identified risks and opportunities associated with these issues,and assessed their potential impacts on corporate strategy, decision-making, financial position, operational performance, cashflows, and other aspects across short-term (0-3 years), medium-term (4-10 years), and long-term (over 10 years)
horizons.In corresponding sections of this report, we disclose methodologies and plans adopted by the Group to address the risks andopportunities associated with these issues, as well as the measures and actions taken to monitor, prevent, manage, control, andmitigate associated impacts.1 Considering the internal sustainability roadmaps and external macro policies, Joincare defines time horizons as short-term (0-3 years),medium-term (4-10 years), and long-term (over 10 years). This denition is aligned with our strategic planning and resource allocation plans.
Financial Materiality
Highly Material IssuesModerately Material IssuesGenerally Material IssuesImpact Materiality
Financial MaterialityIssues
Risks & ImpactsOpportunities & Impacts
TimeHorizon
CorrespondingSection
Product R&D andTechnologicalInnovation
The R&D process for innovative drugsis costly and lengthy, with high pressureon upfront investments in capital andhuman resources. Meanwhile, highrisks of R&D failure or industrialisationfailure may result in inability to delivernew products as planned.
Introducing new technologies, such asAI and big data, helps accelerate theR&D process and enhance innovatione?ciency. Upon successfuldevelopment of novel therapeutics,market reach can be expandedthrough technology licensing oroverseas factory construction, therebyachieving higher prot margins.
Short/Medium/Long-term
Access toHealthcare
Product Qualityand Safety
Quality issues in pharmaceuticalproducts directly impact patientsafety and health, and will lead tosubstantial nancial liabilities andreputational damage once they occur.Amid increasingly stringent regulatoryrequirements, enterprises must allocateadditional nancial and human resourcesto quality inspection.
High-quality products can strengthencorporate brand inuence andcustomer loyalty. Through rigorousquality control and managementsystems, enterprises can mitigatequality risks while enhancingproductivity.
Short/Medium/Long-term
SafeguardingProduct Quality
ResponsibleMarketing
Inadequate marketing strategies maylead to underperformance in sales, whileexcessive or non-compliant marketingpractices could trigger regulatoryscrutiny and penalties.
Compliant and transparent marketingcampaigns enable enterprises toestablish a positive brand image inthe short term while fostering salesgrowth over the long term.
Short/Medium/Long-term
SafeguardingProduct Quality
IntellectualProperty RightsProtection
Overseas patent applications andmaintenance incur signicant costsand carry risks of technology leakage.Failure to adequately protect intellectualproperty may result in technologyinfringement, thereby diminishingmarket competitiveness.
Robust intellectual propertyprotection can consolidate corecompetitiveness. Through patentportfolio management, enterprisescan protect innovation achievementsglobally and secure internationalmarket presence.
Medium/long-term
SafeguardingProduct Quality
CorporateGovernance andCompliance
Due to stringent regulation in thepharmaceutical industry, the compliancerisk is heightened. Non-compliantpractices, such as commercial bribery,trigger severe penalties, resulting inreputational damage, customer attrition,and even suspension of operations.
A robust compliance managementsystem can reduce compliance costs,upgrade the corporate credit rating,foster stakeholder condence, andmitigate legal and nancial risks.
Short/Medium/Long-term
ResponsibleGovernance
2024 Sustainability Report 04 Sustainability Management
4.3 Impact, Risk and Opportunity Management
Joincare has integrated the sustainability-related impact, risk, and opportunity management process into the internal managementprocess, forming a closed-loop mechanism spanning identification, assessment, prioritisation, control, and monitoring. In thisway, we ensure e?ective implementation and continuous advancement of sustainability goals.
Based on data collected on a dailybasis, we identify sustainability-relatedrisks and opportunities that impactour business operations and financialperformance.
Assess and analyse the developmentconditions, potential impacts, andprobability of occurrence for risksand opportunities, and prioritise themaccordingly.
Establish internal oversight and reportingmechanisms to periodically monitorsustainability management performanceand goal attainment.
Define sustainability managementtargets and monitoring metrics,formulate and implement risk andopportunity control measures.
Identication
Control
Assessment
Monitoring
4.3.1 Comprehensive Risk Management
The Group has established a well-developed risk management system. It has formulated and implemented the ComprehensiveRisk Management System, and established and improved the “Three Lines of Defense” framework for risk management andinternal control to regulate risk assessment and management process. We also set overall risk management goals to improveoverall risk prevention and control. The Board of Directors, as the highest decision-making body in comprehensive riskmanagement, takes charge of supervising risk management practices. The Strategy and Risk Management Committee takescharge of reviewing the e?ectiveness of overall risk identication, assessment, internal management and monitoring procedures.The management, as the execution body, takes charge of the effectiveness of comprehensive risk management to the Board ofDirectors. All functional departments play their roles in supporting the implementation of risk management procedure. TheRisk Management Department, as the leading management department of comprehensive risk management, takes charge ofconducting risk management under the guidance of the Strategy and Risk Management Committee.
Joincare’s “Three Lines of Defense” Framework
Through effective risk management processes, we aim to minimise the impact of adverse factors and safeguard the steadyand quality development of the Group. We continuously collect information, identify internal and external risks, formulatecomprehensive risk management strategies, implement actions to address risks, monitor risks and give relevant early warnings.We conduct regular risk reporting, monitor and evaluate the implementation and effect of risk management, and rectify issuesidentied. We review risk exposure encountered by the Company on an annual basis. Against nancial and non-nancial risks inmain business and other high-risk areas, we assess the internal controls and engage independent third-part agencies to conductexternal risk audit. We also conduct impairment testing of goodwill using sensitivity analysis. In addition, we actively carry outa variety of risk management training programs. Through online thematic courses, offline lectures, and other means, we fullypopularize and deepen the Company's risk management principles among all employees, comprehensively enhancing employees'awareness and response to risks.
Each of the subsidiaries and
departments
Risk Management DepartmentInternal Control Department
It is mainly responsible for thedaily work of risk identificationand assessment, risk preventionand control and internal controlwithin the scope of its businessresponsibilities.
It is mainly responsible for risk preventionand control during the pre-incident andongoing phases, as well as risk handlingin the post-incident phase. The RiskManagement Department directly reportsto the Strategy and Risk ManagementCommittee of the Board.
It is responsible for the supervision of theestablishment and implementation of riskcontrol, the authenticity and integrity of nancialinformation, integrity and anti-corruption,etc. The Internal Control Department directlyreports to the Audit Committee of the Boardand is independent from any departments of theCompany.
First LineSecond LineThird Line
2024 Sustainability Report 04 Sustainability Management
4.3.2 Emerging Risks
The Group has identied and assessed emerging social and environmental risks that might inuence the long-term developmentof the Group, and implemented e?ective responses in operation to prevent or mitigate such risks.
The United States is one of the important export markets forChinese pharmaceutical products. Changes in tariff policiesmay potentially restrict access to overseas markets, therebyundermining globalisation strategies and overseas revenuestreams of pharmaceutical enterprises.As the supply chain of the pharmaceutical industry is highlyglobalized, international market volatilities could precipitatesupply chain disruptions and unstable raw material supplies.Critical raw materials may become inaccessible from specificnations, leading to production interruptions.
The application of AI technology may change the R&D,production, and sales models of pharmaceutical enterprises. Forexample, AI can accelerate the drug research and developmentprocess and improve production e?ciency, but at the same time,it may also lead to a reduction in traditional R&D and productionpositions.The rapid popularization of AI technology subverts traditionalbusiness models, and pharmaceutical enterprises that do notadapt in a timely manner will face a survival crisis of weakenedcompetitiveness.AI technology will attract new market participants, which mayintensify market competition.The rapid iteration of AI technology potentially rendercorporations’ early-stage technologies obsolete quickly, therebyincreasing R&D costs.
Diversify market presence in multiple international markets toreduce reliance on a single market;Set up factories abroad to enhance our overseas productioncapacity;Formulate an alternative supplier system to maintain alternativesuppliers for raw materials and excipients as well as keyconsumables and ensure stable supply of materials;Closely monitor international policy changes and prepareresponses in advance.
Increase investment in AI technology, cooperate withtechnology companies, and develop new business models andproducts;Cultivate and introduce professional talents in the eld of AI toenhance the enterprise's technological innovation capabilities;Reasonably and efficiently utilize medical big data, etc., andformulate more targeted research and development directionsand market strategies.
The escalating global geopolitical tensions are poised to exert significant impacts on the international layout of the pharmaceuticalindustry. The uncertainty of the United States' tari? policies, especially those towards China, and the approval of the BIOSECURE Acthave amplied challenges for Chinese pharmaceutical enterprises in overseas R&D, commercialisation, and business expansion.
Currently, artificial intelligence (AI) technology has had a strong impact on traditional industries. The rapid popularization of AItechnology may lead to the subversion of the traditional business models in the pharmaceutical industry, posing risks to enterprises thatfail to adapt to technological changes in a timely manner.
Impact Description
Impact Description
Countermeasures
Countermeasures
Global geopolitical tension
Application of AI
Emerging Risks
4.4 Support for United Nations Sustainable
Development Goals
As a responsible corporate citizen, the Group strives to improve the sustainability management system, and actively engages ina wide range of areas such as pharmaceutical innovation, access to healthcare, environmental protection and rural revitalisation,aiming to support the achievement of United Nations sustainable development goals (SDGs) with our actions.
SDG1: No PovertyEnd poverty in all its forms everywhere.
SDG3: Good Health and Well-beingEnsure healthy lives and promote well-being for all at all ages.
SDG4: Quality EducationEnsure inclusive and equitable qualityeducation and promote lifelong learningopportunities for all.
Section
Section
Section
Public Welfare and Charity
Access to Healthcare
Talent Management
Examples of Our Actions
Examples of Our Actions
Examples of Our Actions
? We carried on the long-term “Access to Public Welfare for Chronic Diseases Prevention
and Treatment Programme” to donate drugs to patients with financial difficulties in remoteareas who su?er from chronic diseases.? We implemented the “Astragalus Root Industry Revitalisation” plan, supporting ruraleconomic development through industry assistance.
? Focus on unsatisfied clinical needs and continuously expand the R&D pipeline ofinnovative drugs.? We built a popular science new media platform matrix called “Respiratory Experts’ Views”
to promote knowledge on chronic respiratory disease and give treatment support for thepublic.? We provided training for local healthcare workers in developing countries, contributing to
improving the quality and capacity of health services.
? We cooperated with higher education institutions to deliver joint training programmes and
provided students with traineeship positions.? We tailored job-specic development training programmes according to the characteristicsand business needs of di?erent positions.? We encourage continuing education and support employees to obtain academic degree orprofessional certications.
2024 Sustainability Report 04 Sustainability Management
SDG6: Clean Water and sanitation
Ensure availability and sustainablemanagement of water and sanitation for all.
SDG7: A?ordable and Clean Energy
Ensure access to a?ordable, reliable,sustainable and modern energy for all.
SDG8: Decent Work and EconomicGrowth
Promote sustained, inclusive andsustainable economic growth, full andproductive employment and decent workfor all.
SDG5: Gender EqualityAchieve gender equality and empower allwomen and girls.
Section
Section
Section
Section
Operating with Green Sustainability
Operating with Green Sustainability
Talent ManagementPublic Welfare and Charity
Talent Management
Examples of Our Actions
Examples of Our Actions
Examples of Our Actions
Examples of Our Actions
? By installing online wastewater monitoring equipment at the effluent outlets of majorwastewater discharge plants and networking with regulatory authorities, we monitored andshared real-time discharge data of treated wastewater.? Through improving wastewater treatment processes and upgrading wastewater treatmentfacilities, we decreased wastewater discharge, increased wastewater utilisation, and reducedthe concentration of pollutants in wastewater.
? We took steady steps to develop the energy management system based on ISO 50001
standards.
? We took measures to improve energy use e?ciency for energy conservation and emission
reduction, increased the investment in green production projects and strived to build a low-carbon and energy-saving green production enterprise.
? We have formulated the Code of Labor Employment and Ethical Conduct to specifyprovisions on protecting labour rights as the prohibition on forced and child labour, equalremuneration, etc.? We strengthened education and training on protecting human rights, strictly reviewed theimplementation of human right policies, and actively take improvement actions.? We provided professional training for local managers through the “Astragalus RootIndustry Revitalisation” plan.
? We set a diversity target of “no less than 49% female employees by 2032”.? We provided various of material benefits and special care for female employees, such as maternityleaves, breastfeeding leaves and customised physical examination services.
SDG10: Reduced Inequalities
Reduce inequality within and amongcountries.
SectionAccess to HealthcareTalent Management
Examples of Our Actions? We adopted inter-country and intra-country equitable pricing policies based on product
a?ordability.? We were deeply committed to the development of healthcare and actively involved incapacity advancement initiatives for healthcare in developing countries.? We prohibited any forms of discrimination and prejudice, defined escalation processand disciplinary actions, and apply for social insurance subsidies for the employees withdisabilities.
SDG12: ResponsibleConsumption and ProductionEnsure sustainable consumption andproduction patterns.
SectionSafeguarding Product QualityOperating with Green SustainabilityExamples of Our Actions? We took product quality, safety, health, environmental protection and other elements intoaccount to minimise the negative impact that our products may have on the environment andsociety in the whole product life cycle.? We classified waste for treatment, and actively promoted waste reduction, recyclingand harmless disposal by introducing advanced environmental protection technology intoproduction, upgrading original production technology and formulations, and cooperatingwith third parties.
SDG13: Climate ActionTake urgent action to combat climate changeand its impacts.
SectionOperating with Green Sustainability
Examples of Our Actions? We developed the Climate Change Management System, set out the Group’s proceduresfor identifying and assessing climate-related risks and opportunities, as well as therequirements for implementing and monitoring the response measures.? We identied and assessed the climate-related risks and opportunities facing our businessand determined response measures to improve the overall ability to manage climate risks.? We set the carbon emission target from 2022 to 2025 and the target to achieving carbonpeaking by 2028 and carbon neutrality by 2055.
2024 Sustainability Report 04 Sustainability Management
SDG15: Life on LandProtect, restore and promote sustainableuse of terrestrial ecosystems, sustainablymanage forests, combat desertication,halt and reverse land degradation, and haltbiodiversity loss.
Section
Operating with Green SustainabilityExamples of Our Actions? We strictly comply with the laws and regulations related to biodiversity conservation.? We identified environmental risk factors and hidden hazards before building factories,met the “ecological red lines” requirements and avoided operating in areas of highbiodiversity value, such as those close to government-designated ecological reserves.
SDG16: Peace, Justice and StrongInstitutionsPromote peaceful and inclusive societiesfor sustainable development, provideaccess to justice for all and build effective,accountable and inclusive institutions at alllevels.
SectionResponsible GovernanceTalent ManagementExamples of Our Actions? We issued Anti-Corruption and Anti-Commercial Bribery System and the Anti-FraudSystem, strengthened audit and supervision, and conducted training on business ethicalstandards.? We require management, employees, and partners to comply with business ethics andclearly implement the anti-corruption management responsibility.? We have built a smooth and confidential grievance escalation and reporting proceduresfor employees to support them to timely complain or report the violation of labour rights andany dissatisfaction.
SDGs in this section
ResponsibleGovernance
Joincare is committed to creating social value through compliant and stable operations. We adhere to compliance, followthe Party leadership, and conduct business with integrity and self-discipline. We rmly resist unethical behaviors such ascommercial bribery and unfair competition, and strengthen business ethics training and the promotion of integrity culture.This e?orts a solid foundation for sustainable development and drives our business forward steadily.
5.1 Compliance Governance
Joincare strictly abides by relevant laws, regulations, and supervisory requirements, such as the Company Law of the People’s Republic of China(PRC), the Securities Law of the PRC, the Code of Corporate Governance for Listed Companies, and the Rules Governing the Listing of Stockson the Shanghai Stock Exchange. We conduct high-quality information disclosure, enhance investor management, and establish and improveinternal control mechanisms to ensure high-standard and standardized operations.
During the year, no disputesarose from the appropriation ofthe Group’s assets and damageto the interests of the Companyand its minority shareholderswere triggered by the Group’scontrolling shareholder, de factocontroller and other relatedparties.
disputes
5.1.1 Protection of Shareholders’ Rights and Interests
5.1.2 Performance of Duties of Directors and Supervisors
Joincare is committed to enhancing the governance of the Board of Directors by continuously optimizing its structure and promoting theprofessionalism and diversity of Board members. We have formulated the Board Diversity Policy to ensure that the Nomination Committeeselects Board members based on a series of professional criteria, including educational background, professional experience, skills, expertiseand tenure, as well as diversied factors such as gender, age, nationality, cultural background and ethnicity. Meanwhile, we disclose measurabletargets and relevant progress for the implementation of the Board's diversity-related policies on an annual basis.The number of members of the Board of Directors is nine (four independent directors in total). There are three female directors, accountingfor over 30% of the total. The Board of Directors has established the Audit Committee, the Remuneration Committee, the Strategy and RiskManagement Committee, the Nomination Committee and the Sustainable Development Committee. These committees assist the board in makinglegal, compliant, scientic, and accurate decisions, ensuring the e?ective operation of integrity and transparent corporate governance procedures.
2 Board members and the date of formal appointment:
Zhu Baoguo: December 1992; Liu Guangxia: July 1995; Qiu Qingfeng: August 2006; Lin Nanqi: December 2019; Xing Zhiwei: August 2024;Huo Jing: May 2019; Qin Yezhi: May 2020; Peng Juan: August 2021; Yin Xiaoxing: September 2023.
Joincare actively protects shareholder rights and interests by formulating relevant regulations,such as the Articles of Association and the Rules of Procedure for General Meetings andother relevant regulations to standardize the procedures for convening, holding and votingat general meetings to ensure equal treatment for all shareholders. To protect the rights of allshareholders, especially minority shareholders, and to ensure they can exercise their rightsto information and decision-making participation, we provide e?cient ways to participate incompany decisions, such as online voting.Joincare maintains its independence through its unique business operations and autonomousoperation capabilities. The Company and its controlling shareholder operate and accountindependently in terms of business operations, personnel allocation, asset management,institutional setup, and nancial management. The controlling shareholder exercises its rightsand assumes its obligations strictly in accordance with laws and regulations, without directlyor indirectly interfering in the Group’s decision-making processes or business activities bybypassing the general meetings. Additionally, we have established a long-term mechanismto prevent the controlling shareholder, de facto controller, and other related parties fromoccupying funds of the listed company and infringing on its interests. We have specificallyformulated the Policy for Preventing the Controlling Shareholder or the De Facto Controllerand Other Related Parties from Occupying Company Funds, and through systematicmanagement measures, we ensure the Company’s steady development.
Name of Directors
Expertise of the Board of DirectorsCorporateManagement
PharmaceuticalIndustry
Legal Compliance
FinancialManagement
Risk Management
SustainableDevelopment
Zhu BaoguoLiu GuangxiaLin NanqiQiu QingfengXing Zhiwei
Huo JingQin YezhiPeng JuanYin Xiaoxing
Members of the Board of Directors have backgrounds and expertise in the pharmaceuticals, corporate management, nance, accounting, law andmanufacturing. Based on their extensive industry experience, they can provide forward-looking strategic insights for the Group’s governance anddevelopment.
5.1.3 Disclosure Transparency
In strict accordance with relevant standards and guidelines of the China Securities Regulatory Commission (CSRC) and the Shanghai StockExchange (SSE), the Group has formulated the Management System for Information Disclosure Affairs and actively fulfill our informationdisclosure responsibilities. We closely focus on the needs of investors, adopt diversied means of information disclosure, strengthen voluntaryinformation disclosure, and make use of various channels such as the Group's official website, media reports, WeChat official account, etc., toenhance the timeliness and transparency of information disclosure, presenting the management status of the Group to investors in an all-roundmanner, and effectively guaranteeing that the majority of investors are able to obtain the relevant information in an equal, prompt and accuratemanner.
There are three supervisors in the Supervisory Committee of Joincare, includes one employee representative. The Supervisory Committeeperforms its duties in accordance with the law, supervises the performance of duties of the Group’s directors and senior management, regularlyinspects the Group’s financial position and performance, pays attention to the Group’s major investment projects, and fully safeguards theinterests of the Company and all shareholders.The Company’s directors, supervisors, and senior management actively engage in various training programs related to the standardized operationof listed companies. These include specialized training sessions and forums, professional courses on sustainable development, internal trainingand reading regulatory newsletters and enforcement briefings on listing rules issued by the Stock Exchanges , etc. This enables them to stayupdated on industry policy developments, listing regulatory information, ESG-related dynamics, and the company's code of business ethics,thereby continuously enhancing their ability to fulll their duties.
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2024 Sustainability Report 05 Responsible Governance
Overseas Roadshow Site
5.1.4 Investor Relations
Joincare has established a sound communication mechanism and formulated the Regulationson Investor Relations Management. We engage in comprehensive and multi-levelcommunication with investors through various channels to strengthen investor relationsmanagement. The Board of Directors designates specific departments and employees totake charge of information disclosure and investor relations, listen to investors' suggestionsand opinions, promptly respond to investor inquiries and achieve positive interaction withinvestors.This year, to further strengthen our relations with institutional investors, we held three onlineperformance briefings and one activity “Listed Companies Open Day”. Furthermore, weactively participated in the 2024 Listed Company Investors' Online Collective Reception Dayevent in Shenzhen, where we answered investors' questions on the operation of the Companyand other aspects in detail. We have also communicated with over 100 institutional investors,proactively showcasing our business conditions and investment value.
In 2024, we led and disclosed 199 documents in compliance with the information disclosureprinciple of authenticity, accuracy, integrity, timeliness and transparency, with a total Chinesecharacter count of 3.1122 million, outperforming 96% of our A-share listed peers. Ourinformation disclosure has been highly recognized by regulators and capital market.In 2024,Joincare was again rated “A” (Excellent) in the information disclosure assessment over listedcompanies organized by the SSE. It's the fourth year in a sequence we got this rating. We alsowon the award of the “Best Practices of the Office of the Board of Directors” in the “BestPractices of the O?ce of the Board of Directors” selection held by the China Association forPublic Companies (CAPCO).
Disclosures and FilingsPublished Online
To enhance our connection with minority investors, the O?ce of the Board of Directors designates personnel to provide Q&A for investors viaSSE e-interactive platform, answer their phone calls and reply to their emails. In 2024, we provided 95 Q&A for investors via SSE e-interactiveplatform, answered 296 phone calls from investors and published 16 articles on our WeChat official account. The concerns addressed includecorporate strategy, performance, operation status, key R&D project progress, IR events, and investment progress.In terms of international investor relations management, Joincare was invited by the SSE to participate in the GDR-issuing enterprise roadshowhosted by the SIX Swiss Exchange in Switzerland. During the event, Joincare introduced its innovation strategy, performance in the respiratorytherapy eld, and R&D pipelines to multiple European investment institutions. This enabled overseas investors to gain a deeper understanding ofthe Company’s strengths and potential, e?ectively enhancing its visibility and inuence.
Earnings Calls Held
Institutional Investors Engaged
+
Joincare's continuous e?orts in corporate governance, information disclosure, investor relations management, and market valuemanagement have been widely recognized by the capital markets and various sectors of society. In 2024, the Company receivedmultiple awards and honors in the eld of investor relations.
Best Practice Award for InvestorRelations Management
5th Panorama Investor Relations Gold Award
Outstanding IR Company Award
Outstanding IR Team AwardOutstanding ESG Value Communication Award
Excellence Practice Award for 2023 Annual Report
Performance Presentation of Listed Companies
5A rating in “2024 PerformanceAppraisal on Board Secretaries of
Listed Companies”
Golden Board Secretary
(20th session)
Tianma Award - Outstanding BoardSecretary for Investor Relations (15th
session)
2024 Best Practices ofthe O?ce of the Board ofDirectors
5.2 Carrying Forward the Party-Masses Spirit
Guided by the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, Joincare thoroughly implementsthe guiding principles of the 20th CPC National Congress and the 3rd Plenary Session of the 20th CPC Central Committee.Moreover, we resolutely support the establishment of both Comrade Xi Jinping’s core position on the Party Central Committeeand in the Party as a whole, and uphold the authority of the Party Central Committee and its centralized, unified leadership.Focusing on the central tasks and serving the overall interests, we highlight the role of “Party building engine” in all aspects.To reinforce the guidance of Party building theories, we stringently enforce the “first topic” principle (starting every importantParty member meeting with the learning of the Party or President’s instructions), and continuously practice the policy of “holdingParty branch general meetings, meetings of Party branch committees, Party group meetings, and Party lectures”. Also, weare strengthening the engagement between the Party and the people, and actively promoting the Party-masses culture, to helpinvigorate our market competitiveness. Through deepening Party discipline and regulations education, we strive to cultivate ahigh-caliber contingent of Party members characterized by loyalty, integrity, and responsibility.In 2024, driven by the dual engines of “innovation + quality”, we dedicated ourselves to advancing high-quality development. Byintegrating the Party-masses spirit into innovation-led development, we promote virtuous interactions between enterprises and thesociety. We actively encourage employees to participate in public welfare activities, and give back to the society, contributing tosocial harmony.
Case
Joincare contributed to classroom teaching reform
Joincare remains the commitment to supporting educational development and pursuing technological innovation.In December 2024, the General Party Branch Secretary of Joincare was appointed as the “Technology Mentor”by Shenzhen Songping Second Primary School, further strengthening corporate-school cooperation. We will fullyleverage our technological expertise to support the school’s classroom teaching reform, and spark students' interestin scientic and technological innovation.
2024 Sustainability Report 05 Responsible Governance
5.3 Integrity and Business Ethics
Joincare adheres to the principles of integrity and self-discipline and strictly abides by the Law of the PRC Against UnfairCompetition, the Interim Provisions on Prohibition of Commercial Bribery, the Criminal Law of the PRC and other relevant lawsand regulations. We continuously improve our integrity management system. The Audit Committee of the Board of Directorsplans and oversees the work related to business ethics, anti-corruption, and anti-unfair competition, and the Risk ManagementDepartment is responsible for the implementation to ensure legal and compliant operation. Meanwhile, we strengthen internalaudit and supervision, promote integrity culture through the clean culture training covering all employees. In 2024, there wereno violation cases of corruption, bribery, fraud, money laundering, conict of interest, Anti-unfair competition, customer privacydata breaches, discrimination or harassment in Joincare.
5.3.1 Enhancing Anti-corruption Mechanism
The Group is well aware of the importance of integrity management, so we manage business ethics and anti-corruption issues atthe level of the Board of Directors. In 2024, the Board approved the Anti-Corruption and Anti-Commercial Bribery System andthe Anti-Fraud System revised version, to further refine ethical standards and regulate the behavior of employees and partners.In addition, specic requirements have been set up for certain high-risk business segments, including the Financial ManagementSystem, the Outbound Investment Management System, the Management Measures for Material Procurement of Joincare, theImplementation Rules for Procurement Bid Evaluation of Joincare, the Implementation Rules for Bidding Management andother regulations to ensure legal and compliant operations. The systems mentioned above are applicable to all the employees ofJoincare (including but not limited to full-time and part-time employees, interns, contractors).
Case
Joincare invited an associate professor from Party school to give athematic seminarIn August 2024, Joincare organized a seminar themed on the guiding principles of the 3rd Plenary Session of the20th CPC Central Committee, featuring an associate professor from the Party School of Nanshan District PartyCommittee in Shenzhen. This activity reinforced our development orientation under Party leadership. Buildingon our practical experience in Party building, we aim to enhance employees’ comprehension of the Party’s latestpolicies, stimulate their innovation vitality and sense of responsibility in respective roles, and contribute to high-quality corporate development and steady socio-economic advancement.
We require all employees, management and partners to strictly implement the following measures and commit to ensuring the integrity of theirown behavior.
5.3.2 Internal Audit and Supervision
Joincare complies with the applicable laws and regulations, such as the Provisions of the National Audit O?ce on Internal Audit and the GuidingOpinions of the General Office of the State Council on Reforming and Perfecting the Comprehensive Supervision System for the Medical andHealth Industry, and formulates the Rules for Implementation of the Audit Committee, the Internal Control System, to regulate internal controlwork of the Group. We also continuously monitor changes in regulations, policies, and the development needs of the group, optimize existingsystems, and enhance their forward-looking and practical nature.The Group, on an annual basis, conduct overall audits on all subsidiaries, with the Annual Risk Management and Internal Control EvaluationReport issued, and develop special audit plans. For issues identified in the audit, we promptly propose rectification advice, require the auditedcompany to complete the rectification within 100 days and verify the rectification results, to ensure that issues are effectively resolved and amanagement closed-loop is established.We set up the Risk Management Department, which is independent from the Group's business operations, to conduct business ethics and anti-corruption audit on all subsidiaries. The Risk Management Department, under the guidance of the Audit Committee, formulates the annualaudit and supervision work plan and carries out audit work in accordance with the plan. The Risk Management Department is responsible forreviewing and supervising the implementation of policies such as the Anti-Corruption and Anti-Commercial Bribery System and the Anti-FraudSystem, and assessing the e?ectiveness of business ethics management measures. Employees of the Risk Management Department are full-timeemployees who are not directly involved in production and operation activities, and the audit results are reported directly to the Audit Committeeof the Board of Directors, which maintains independence at the organizational, operational and personal levels to ensure that the audit results areindependent, fair, objective and accurate.
? All employees receive training on the codeof conduct in relation to anti-corruption and anti-commercial bribery at the onboarding stage? Sign the Commitment Letter of Anti-commercial Bribery to clarify respectiveintegrity responsibility and forbid violations
EmployeesManagementSuppliers & partners
? Sign the Oath of Integrity for SeniorExecutives of the Company to ensure thatthey perform their duties with integrity andself-discipline
? All suppliers shall sign the Anti-
Commercial Bribery Agreement as anappendix to commit anti-corruption andanti-commercial bribery and promise notto violate business ethics during theperformance of the contract
2024 Sustainability Report 05 Responsible Governance
5.3.3 Whistleblower Protection
Joincare has formulated and publicized the Measures for the Management of Reporting and Complaining and the Reporting and WhistleblowerProtection Policy to continuously improve the mechanism of reports and protection of whistleblowers, which standardize the reporting processand clarify that all the employees, customers and suppliers of the Group have the right to report corruption, bribery, fraud and other misconducts,thus fully protecting the reporting rights of employees and partners.We have established various public reporting channels, including mail, telephone and email. The Group's Risk Management Department isresponsible for the acceptance of whistleblower reports, timely investigation and handling, and case summarizing and reporting. The case shallbe completed within 30 days from the date of acceptance, and the result shall be notified to the whistleblower. We strictly keep confidentialthe information on whistleblowers and the content of reports and complaints according to the requirements of the relevant policies. Weclassify the materials and records of reports as private and confidential, and keep them under the custody of designated personnel, therebyprotecting whistleblowers from the disclosure of reports and fully safeguarding reporters' legitimate rights and interests. Employees who violatecondentiality provisions, disclose whistleblowers' information or retaliate whistleblowers will be held legally liable upon verication.
In 2024, the Risk Management Department conducted audit on all subsidiaries as planned.The scope of the audits covered all businesses of the Group, including the management andimplementation of internal controls over subsidiaries’ business activities, particularly themanagement of engineering, financial and expense, human capital, procurement, inventory,quality, EHS, contract and other aspects. The audit work covers the whole internal controlprocess, from risk assessment and control activities to information communication andmonitoring. This comprehensive approach allows us to thoroughly review the operationalperformance of subsidiaries, assess and mitigate risks, and ensure operational compliance andinternal control e?ectiveness. Additionally, we actively engage external independent third-partyauditors to enhance the credibility and objectivity of audit outcomes.
Deciencies
No major audit deciencies
were identied in 2024.
Tel: 0755-86252316
0755-26980226
Internal email: SAMD@joincare.comExternal email: joincaresamd@163.com
Address: Joincare Pharmaceutical Group Building No.
17-2 Langshan Road, Nanshan District, Shenzhen,Guangdong
Human Resources Complaints and Reporting Mailbox:
hr.group@joincare.com
Joincare's Reporting and
Complaint Channels
5.3.4 Fostering Integrity Culture
Joincare fully recognizes the importance of integrity culture, and by combining the construction of integrity culture with the prevention andcontrol of business risks, we create a fair and open, integrity and transparency of the corporate culture, so that the concept of integrity is takingroot. We set out the requirements for business ethics in the Employee Manual to regulate the behavior of all employees. We promote the cultureof business ethics in the induction training of all new employees to raise their integrity awareness.In 2024, we provided all employees (including full-time, part-time and contractors) with on-line and off-line training on ethical standards,including requirements of the Anti-Corruption and Anti-Commercial Bribery System and the Anti-Fraud System, and requirements for integrity.This aims to raise employees' awareness of anti-corruption, anti-commercial bribery and antifraud to ensure the implementation of businessethics policies in the Group. Meanwhile, all directors, supervisors, and senior management of the Group have participated in several trainings onthe standardized operation of listed companies, including topics of compliance management, anti-commercial bribery, anti-monopoly, and riskmanagement. We also conduct anti-corruption training for suppliers to ensure they understand and adhere to business ethics requirements. Thisinitiative fosters sustainable business development within a culture of integrity, ensuring operations remain transparent and compliant.
Case
Directors, supervisors, and senior management of Joincareparticipated in anti-corruption and risk management trainingWe provide annual anti-corruption and risk management training for all directors, supervisors, and senior management to enhancetheir professional competence and integrity awareness. In 2024, all directors, supervisors, and senior management of Joincareparticipated in anti-corruption, compliance, and risk management training delivered by specialized institutions, achieving a 100%coverage rate.Additionally, our independent directors actively attended the special training course titled “Key Points and Recommendationsfor Anti-Fraud Duties of Independent Directors in Listed Companies” organized by the Shanghai Stock Exchange, achieving a100% training coverage rate. This training facilitated their accurate understanding of securities laws and regulations and relevantoperational rules, strengthened their capability in fullling anti-fraud duties, and satised their professional learning requirements.
During the year, business ethicstraining covered14,350
employees
Coverage rate
%
2024 Sustainability Report 05 Responsible Governance
5.4 Information Security
In order to enhance the e?ciency of business processes, the Group has continued to explore the in-depth integration of information technologywith daily business processes and operations management. In terms of office system applications, we use Customer Relationship Management(CRM) system, the System Applications and Products (SAP) system and the o?ce system Feishu to fully empower our daily operations throughdigitalization.We have established a comprehensive information security management system and formulated the Management System for the Security ofComputer Information System, the Management Requirements for IDC Data Centre Operation and Maintenance, the Backup System and theProcess of Reporting Suspicious Affairs of Information Security and other information security management systems and norms which areapplicable to the entire Group. Additionally, we have established an organizational structure for information security management in the Group,with the President as the highest person in charge of information security management. We ensure the stable operation of information systemsand protect information security and customer privacy through a comprehensive information security management system and processes.In daily operations and management, we actively protect the end computers against viruses by deploying the Endpoint Detection and Response(EDR) system. The next-generation firewall is deployed to conduct network penetration testing and in-depth inspection of system security andcarry out security assessment and vulnerability scanning. A security mechanism of the Intrusion Prevention System (IPS) is also in place, whichuses a variety of defensive techniques to stop intrusion when identifying security threats in real-time, with intrusion detection as the core. Inaddition, we perform a regular data backup and regularly inspect hardware equipment to ensure data security.To ensure adequate response to any sudden disaster events, the Group formulated the Emergency Plan for Network Server Systems and theDisaster Recovery Plan for Information Systems, which clarify the response mechanism, processing procedures and measures in case ofemergency. In addition, we conduct relevant emergency drills on a regular basis to verify the feasibility and integrity of emergency plans. Thesee?orts are aimed to ensure our information security and business continuity. We carry out all-in-one backup appliance test and data backup drillannually to verify the e?ectiveness of relevant emergency plans.We keep improving information security management capability and engages independent third-party agencies to annually audit informationsystems and information security policies to comprehensively investigate and identify potential risks. Furthermore, we make improvementsbased on the audit results to constantly perfect our information security risk management system. This year, the Group has not experienced anyinformation security or privacy breaches incidents.In addition, we pay a high emphasis on information security training. All our employees are required to participate in the training on informationsecurity and privacy protection. We organize information security training courses on a regular basis and incorporate them into our new employeeorientation training system. Meanwhile, we use online training to impart information security knowledge to our employees, covering topics suchas high-risk security threats and defense mechanisms, as well as key security precautions in daily operations and other related content. Duringthe National Cybersecurity Awareness Week, we delivered information security prevention knowledge to all employees via the Feishu, aimingto enhance their information security awareness and risk prevention capabilities. By the end of the reporting period, all employees of the Grouphave completed training sessions on data security and privacy protection.
Cybersecurity Awareness Training Series
Product quality is a cornerstone for Joincare’s steady progress. We work to provide premium products and services forcustomers and constantly improve the lifecycle quality management system, so as to realise strict control throughout theprocess from R&D to drug use by patients after marketing. We also strengthen the supply chain management to ensureraw material quality. In pursuit of responsible marketing, the Group promotes products in an accurate and honest manner,aiming to guarantee the development of public healthcare.To continuously improve the operation mechanism and enhance the quality control performance, we have set the overallquality goals for the Group and consistently monitor the progress towards these goals on an annual basis. The goalsinclude:
SDGs in this section
Market sampling pass rate reaches
%
Customer complaint rate is less than
%
Customer satisfaction rate is greater than
%
SafeguardingProduct Quality
6.1 Quality Management System
6.1.1 R&D Quality Management
In line with the requirements of ISO 9001, ICH Q10 and other systems, Joincare keeps optimising various processes of product R&D and dailyrecords management, thus improving the R&D quality management. Each R&D unit is required to designate special R&D quality assurance(“QA”) personnel to supervise the compliance from project initiations, R&D management, project operation, and technology transfer to routineinspection.In 2024, we improved our R&D quality management system in accordance with domestic and overseas laws and regulations and based on ourown R&D management characteristics. We have also formulated and refined various internal management documents. Thanks to those efforts,our R&D processes such as file management, lab management, instrument and device management, materials and reagent management, aswell as preparation research have been optimised. In addition, we strengthened on-site supervision and management of R&D activities. Fromthe dimensions of stability study, instrument and device management, electronic data management, reference substances and preparationsmanagement, and original records management, we carried out on-site supervision and inspection. This helped us identify deciencies in qualitymanagement processes, and make targeted rectifications, thus ensuring compliance with all relevant requirements. We also managed R&Ddeviations, abnormal lab data, and Out of Specication (OOS) results to ensure that R&D data is authentic, reliable, complete and traceable.The Group has set up the Department of Clinical Quality for quality control in stages of design, preparation, implementation, review, etc,. inclinic trial. The goal is to ensure that investigational medicinal products (IMP), biological sample management, clinical operations, clinicalquality control and other quality management related aspects are legal and compliant.
Basic Principles
RiskManagement
Whole-Process
ControlSocial Co-Governance
Prioritising the product quality management and adhering to thebasic principles of “risk management, whole-process control, andsocial co-governance”, Joincare has established and refined thelifecycle quality management system covering medicine R&D,production, sales and usage. In active response to regulatoryrequirements, the Group undertakes the responsibilities of drugmarketing authorisation holders (“Holder” or “MAH”) and strives too?er patients high-quality and reliable products.In 2024, the Group and its subsidiaries reviewed and optimised thequality management system for R&D, production, sales and use. Inthis regard, a number of documents have been newly formulated,including the Management Procedures for Chemistry, Manufacturingand Controls Changes of Innovative Drugs during Clinical Trials,the Management Measures of Plan Changes during Clinical Trials,the Entrusted Producer Assessment Procedures, and the Alert andAction Limits Management Procedures. Besides, the Group revisedsuch regulations as the Procedure for Administration of EntrustedDrug Production, the Procedure for Routine Supervision andAdministration of Entrusted Drug Production, the ManagementProcedures for Sample Retention, and the Management Procedurefor Entrusted Inspection. By doing so, we provide safe and reliableproducts of all kinds with tightened quality risk control.
Furthermore, the Group always prioritises the rights and interests of subjects. In strict compliance with the World Medical AssociationDeclaration of Helsinki and other laws and regulations as well as ethical and moral standards, Joincare conducts all clinical trials after obtainingthe approval from medical products regulators and passing the ethical review as required by regulations. When recruiting subjects, we specify theselection criteria to exclude applicants with specic safety risks. Before a subject is enrolled in a clinical trial, the researcher should fully informhim or her of key information such as clinical operations, potential safety risks of the drug and corresponding medical treatment, compensationfor trial-related injuries, privacy and information confidentiality. Besides, the subject must be given sufficient time to ponder over the aboveaspects. If the subject agrees to join the trial, we will require him or her to sign the Informed Consent, which claries the subject’s right to know,make free decisions, refuse or quit the trial. During the project supervision, clinical supervisors, quality controllers and audit staff are requiredto focus on the compliance in key processes including acquisition of ethical approval, signing of the Informed Consent, and records of consentdocumentation. With these e?orts, we aim to safeguard the legitimate rights and interests of subjects all round.We monitor adverse events in clinical trials in real time, devise corresponding contingency plans, and promptly report them to regulatoryauthorities. By insuring every subject, we limit clinical trial risks to a controllable level and address them in a standardised manner. By means ofanonymity, coding and dedicated management, we avoid the disclosure of the subject’s identity, disease condition, biological samples and otherinformation. This year, the Group continued to optimise the clinical trial management system in response to the UN SDGs framework, and wasnot involved in any ethical violations or regulatory penalties.
Design
The Department of Clinical Quality participates in the discussion and review of key documents of the clinicaltrial project, to ensure that the trial is scientic, reasonable and feasible from the perspective of design.Preparation
The Department of Clinical Quality develops the clinical monitoring plan, the project management plan andthe quality control plan and makes the project audit plan at the group level. This is to ensure that the clinicalmonitoring team, project management team, quality control team and group audit team perform their qualitymanagement functions e?ectively and to safeguard the quality of clinical trials.ImplementationThe Department of Clinical Quality oversees the relevant quality management activities. It is responsiblefor ensuring that clinical trial data is truthful, accurate and reliable, and that the maintenance of clinical trialdocuments, trial procedures, IMPs, biological samples, and other trial information are all compliant with therelevant requirements of the quality management specication for the clinical trials of medical products and thequality management system.Review
After the trial, the Department of Clinical Quality summarises quality issues of the project and the researchcentre taking into account the quality performance of research centres. It conrms the self-inspection plan withthe project team before locking the database of high-risk centres, making sure that the quality issues identiedbe resolved in accordance with the rectication plan.
2024 Sustainability Report 06 Safeguarding Product Quality
6.1.2 Production Quality Management
Joincare strictly abides by national laws and regulations and has established the production quality management system in accordance withthe Drug Administration Law of the PRC, the Provisions for the Supervision and Administration of Drug Manufacturing, and the GoodManufacturing Practice (“GMP”). In addition, we constantly improve the production quality management system to meet international standardsand urge subsidiaries to obtain international certications to deliver competitive products to global markets.
Inspections fromregulators
Registration and Certication
By the end of the reporting period, the overall registration and certication of Joincare’s APIs, formulations, and diagnostic reagents are shown asfollows:
Table: International certication of Joincare
APIs
varieties passed on-siteinternational inspections
valid international certicates obtained(including 6 FDA site-inspected products, 17 CEP certicates)
Formulations
varieties passed internationalcertication
valid international certicates obtained
In VitroDiagnostic
Reagents
varieties passed internationalcertication
valid international certicates obtained
International Certication
The Group cooperates with regulatory inspections and takes prompt actions to correctany quality management issues identified, so as to improve the quality managementperformance. In 2024, we received 105 inspections from regulators, and the inspectionresults all met the requirements, without any signicant or serious deciencies identied.
By the end of the reporting period, all the production lines and related products of the Group and its subsidiaries had compliedwith the GMP regulations. Joincare and multiple production subsidiaries had passed the quality management system certication.
Table: GMP compliance of production lines of Joincare
Table: Certication of the quality management system of Joincare
Company NameCertication
JoincareGB/T19001-2016/ISO 9001:2015；ISO/IEC 17025:2017；CNAS-CL01Joincare HaibinGB/T19001-2016/ISO 9001:2015Jiaozuo JoincareGB/T19001-2016/ISO 9001:2015Fuzhou FuxingGB/T19001-2016/ISO 9001:2015Ningxia PharmaceuticalGB/T19001-2016/ISO 9001:2015；ISO 22000:2018Livzon DiagnosticsGB/T42061-2022/ISO 13485:2016Shanghai FrontierGB/T19001-2016/ISO 9001:2015；CNAS - CL01:2018Haibin PharmaCNAS - CL01:2018
APIs
production lines of APIproducers complied withGMP regulations.
GMP Certication
Formulations
In VitroDiagnostic
Reagents
production lines of formulationproducers complied with GMP
regulations.
production lines of a vitro diagnosticreagent producer complied with GMP
regulations.
2024 Sustainability Report 06 Safeguarding Product Quality
Product Testing CapacityAll our production subsidiaries have set up various labs for the testing of drugs. These labs are equipped with high-precisiondevices such as high-resolution mass spectrometry, liquid chromatography triple quadrupole mass spectrometry, gaschromatography triple quadrupole mass spectrometry, inductively coupled plasma mass spectrometry, X-ray diffractometer,ion chromatograph, and high-performance liquid chromatograph. All these devices enable production subsidiaries to conductmany test projects independently. This can meet their needs for quick testing and the R&D testing of innovative products,ensuring product quality in a comprehensive manner. Meanwhile, our Analysis and Testing Centre conducts in-house testing oninnovative medicines and high-end complex preparations. The centre also supports the research and testing on the compatibilityof packaging materials, ensuring that the products meet the quality management requirements. In 2024, the Analysis and TestingCentre of the Group and the testing centre of Shanghai Frontier passed the lab certification of China National AccreditationService for Conformity Assessment (CNAS). This means that the testing centres of the Group and its production subsidiaries arefully capable of performing testing in accordance with ISO/IEC 17025.
Case
Research and testing on the APIs and formulations of the novel inuenzaantiviral Pixavir MarboxilIn 2024, Joincare fully supported the research and testing on the APIs and formulations of the novel influenzaantiviral Pixavir Marboxil, so as to achieve up-to-standard quality. The Group’s Analysis and Testing Centredeveloped a method of testing nitrosamine impurities in APIs with the liquid chromatography triple quadrupolemass spectrometry. We carefully designed the experimental process, repeatedly veried the accuracy and reliabilityof the method, and tested several batches of samples. Additionally, we developed and verified the quantitativemethod of measuring finished products and crystallised solid dispersions, and tested sample stability by usingthe X-ray diffractometer. Thanks to the rigorous and orderly testing, we completed relevant quality research onschedule. This laid a solid foundation for the subsequent new drug application and marketing of the APIs andformulations of Pixavir Marboxil.
Case
Jiaozuo Joincare improves its product quality testing capabilities
To meet national standards and customer needs, Jiaozuo Joincare focuses on building up its product testingcapabilities. It has set quality standards and test operation specications for all products and is equipped with high-precision equipment such as high-performance liquid chromatograph, gas chromatograph, particle size analyser,protein analyser, and specific surface area analyser. At Jiaozuo Joincare, a total of 4 products can be tested on allquality metrics. Jiaozuo Joincare has developed specific test operation specifications and conducts test control tofully improve its product testing capabilities. In 2024, Jiaozuo Joincare completed over 5,000 batches of full-scopequality tests and tested over 8,600 batches of raw materials used in the products.
The Group has been actively engaged in precautionary tests and the detailed investigation of possible impurities in product formulations andproduction processes. We identify potential product issue from the perspective of safety and quality and promptly optimise formulations, processes,packaging, storage and other production steps, so as to control potential product risks at their origin. Furthermore, we pay sustained attention to thelatest requirements for product quality in the industry and stakeholders’ expectations, and engage qualified third parties to perform quality tests whennecessary.
Case
Simulated precautionary test under transport scenariosShort-term deviations from the specied storage conditions during transport may a?ect product quality. To assess the potential impact ofshort-term deviations on our products, we carry out repeated simulated precautionary tests on various types of products. With reference tothe actual transportation conditions and the product quality, we designed more demanding testing conditions in 2024.Taking Acetylcysteine Solution for Inhalation as an example, the solution should be stored at room temperature in an airtight container.During the test, we simulated extreme transportation scenarios. Firstly, samples of the solution were placed at a low temperature of -20°Cto -10°C for 10 days, followed by a high temperature of 40°C for 2 days. The 12-day cycle ran twice. Subsequently, these samples weredivided into two groups. While one group was placed under long-term test conditions (30±2°C, RH65±5%) until expiry, the other wasstored under accelerated test conditions (40±2°C, RH75±5%) for 1 month and then under long-term test conditions until expiry. In thesimulated test, we paid close attention to the stability of the solution, deeply analysed the changes in the test data, and predicted potentialproduct quality risks. Accordingly, we gave detailed instructions to transport service providers. This ensures that product quality isn’tcompromised throughout the transport and guarantees product quality and safety.
Case
Taitai Pharmaceutical optimised product testing processes and facilitiesFollowing the GMP requirements, Taitai Pharmaceutical optimised testing processes and facilities in 2024. For the temperature-sensitiveLevosalbutamol Hydrochloride Nebuliser Solution, Taitai Pharmaceutical has delineated an exclusive area for sample management inthe finished product sampling room, where the temperature is strictly controlled below 25°C. Simulating the worst storage conditionsfor compliant sampling facilitates product quality traceability and ensures the medication safety for consumers. In terms of testingtechnology, Taitai Pharmaceutical has upgraded the standalone high-performance liquid chromatograph to a network-connected version.The online system can store massive chromatographic data, thus enhancing data management efficiency. As such, it becomes moreconvenient to compare data of different product batches during drug development. In addition, the online version allows for remotecontrol of instruments, which reduces errors of manual operations. The function of audit tracking can record the operation process anddata modication in detail to meet the regulatory requirements. All these improvements help guarantee the product quality from variousaspects.
2024 Sustainability Report 06 Safeguarding Product Quality
6.1.3 Operation Quality Management
In strict compliance with the Good Supply Practice (“GSP”), Joincare has formulated multiple management policies, including the ProcurementManagement Policy, the Sales Management Policy, the Product Acceptance Management Policy, the Product Storage Management Policy, the ProductDelivery Management Policy, and the Drug Traceability Management Policy. With these documents, we carry out comprehensive quality control in thedrug procurement, storage, sales, transportation and other processes. Through digital means of the “On-code” drug traceability information system, weensure that “each drug has a code, and both the drug and its code can be traced” and present the traceability data of drugs throughout the process in realtime.This year, we rened internal management documents. Along with production subsidiaries, we have activated the function of electronic drug inspectionreport on the “On-code” platform, enabling the online flow of and access to the report. Additionally, the SAP system has been optimised to enhancefunctions related to inventory data report, acceptance, and maintenance processes, thereby improving the e?ciency of drug traceability.With regard to the management of insert sheets and labels, the Group strictly controls the design, use and change of product inserts and labels inaccordance with related laws and regulations, as well as the Marketed Chemicals and Biologics Clinical Changes Technical Guidelines, the ChangeManagement Regulations and other internal management regulations. We continue to strengthen the internal risk management on medicine insert sheetsand labels, and standardise the process for any change. We demand that changes to package inserts and labels be initiated and designed by the holder.The design should be strictly reviewed and approved by the holder’s sales, production, quality control and other related departments, and changes toinformation on the safety and e?cacy of medicines should ultimately be approved by the National Medical Products Administration, so as to maintainthe objectivity, rationality and accuracy of drug information to the greatest extent possible.We classify changes according to their impact on and risk to drug safety, efficacy and clinical use. In the event of changes to drug safety informationor pharmacovigilance plans, our Pharmacovigilance Department will strictly manage the changes in accordance with the Procedures for Changes toInformation Related to Safety in Package Inserts. Relevant data about drug safety will be collected, reviewed and evaluated by the PharmacovigilanceDepartment, and then submitted to the Drug Safety Committee for review and conrmation, thus fully protecting patients’ medication safety.
6.1.4 Pharmacovigilance
Joincare strictly follows the requirements of the Good Pharmacovigilance Practices (“GVP”). With reference to the Guiding Principles forPharmacovigilance Inspection, we standardise the pharmacovigilance practices. We adopt the digital drug safety management system to ensure thesecurity of pharmacovigilance data. Its data statistics and analysis function provides a strong data support for pharmacovigilance and improves theeffectiveness of the Group’s pharmacovigilance practices. In 2024, we updated internal management policies and documents, including the QualityManagement System for Pharmacovigilance Practices, the Drug Safety Committee Management Procedures, and the Emergency Plan for Drug Safety(Mass Incident Investigation). This e?ort helped us standardise the operation of the pharmacovigilance system. Also, the new corporate collaboration andmanagement platform and the AI platform have made our pharmacovigilance practices more scientic and e?cient.The Group highlights the management of adverse drug reactions. In addition to collecting adverse events from the National Centre for ADR Monitoring,China, we seek feedback on adverse reactions from users through channels such as the 400 hotline, official website, pharmacovigilance email andextension, and sales feedback. We regularly collect information on adverse reactions to similar products through relevant professional websites orliterature searches. By doing so, we ensure that adverse reactions are comprehensively collected through multiple channels and reported to regulatoryauthorities in accordance with laws and regulations.In 2024, the Group actively conducted post-marketing clinical studies and collected information on adverse reactions. We observed the medicationeffects and possible adverse reactions more thoroughly with post-marketing clinical studies conducted in real-world drug application settings. Thisbroadened the sources of information on adverse reactions and helped us understand the safety characteristics of products in a more precise manner.Besides, we categorised, analysed and monitored the collected adverse events, regularly assessed the risks of product safety, and implemented controlmeasures to ensure the safety of medication for the public.
This year, we also conducted a number of internal pharmacovigilance training activities, helping new hires from thePharmacovigilance Department understand the latest regulatory requirements and the processes of collecting and reportingadverse drug events. By dening the roles and responsibilities of each department within the pharmacovigilance system, we workto raise employees’ management awareness on this front.Case
Meeting of the Drug Safety Committee
In March 2024, Joincare held the meeting of the Drug Safety Committee as scheduled. During the meeting, wereviewed the update on product safety information for the current year in all facets, covering all drug safety dataand changes in the reporting of adverse events. We also analysed and discussed the potential drug risks identifiedfrom clinical feedback, adverse reaction monitoring data, patient feedback and other channels. At the meeting, theCompany focused on the analysis of medical device vigilance risks, so as to achieve full control over the safety ofdrugs and medical devices.
6.2 Quality Risk Control
Joincare attaches great importance to product quality risk control. We have established the Regulations on Quality RiskManagement and the Regulations on Risk Management Plan with reference to the requirements of relevant laws and regulationsto standardise the processes of identication, analysis, evaluation, control and review of quality risks.
6.2.1 Quality Risk Management
The Group makes continuous efforts to enhance its risk management system covering R&D, production and operation, managequality risks throughout the product lifecycle, build up its quality risk management capabilities, and deliver high quality products.
2024 Sustainability Report 06 Safeguarding Product Quality
Product Recall
Product recall simulation is exercised every two years at Joincare to ensure the drugrecall process is e?ective. We also implement a product risk management scheme toensure that the risk management of post-marketing products is in line with relatedpharmacovigilance laws and that the products’ quality always serves their intendedpurposes and satisfies the registration requirements. We have developed the DrugRecall Management Procedures to guide the recall of products in case of qualityissues or other safety hazards. We also classify drug recalls into Level - I, -II and-III ones according to the severity of safety hazards, and have corresponding recallprocedures in place. Over the past ve years, there were no recall incidents relatedto our sold or shipped products for safety or health reasons. The total number ofproduct recalls was 0.
Case
Product recall simulation and drug safety emergency drill
Joincare organised product recall simulation in September 2024. Set at the Level-I, the exercise witnessed rapidresponse by all units within the specied time. This veried the e?ectiveness of our recall process in promptly andaccurately removing drugs with potential quality issues or other safety hazards from the market.Besides, we launched a drug safety emergency drill of major drug safety incidents (Level-II). Simulation of realscenarios enabled us to verify the feasibility of the Company’s processes in response to safety incidents. It alsocontributed to the collaboration among production, sales, logistics and other departments, thus helping us safeguarddrug safety and properly handle these incidents.
Joincare has developed policiesincluding the Risk Managementand the Data Integrity Assessmentpursuant to the GMP. Inprospective and retrospectivemanners, we identify risks inman’s work, machines, materials,rules, links, and tests withFMEA, HACCP, preliminaryhazard analysis, and other tools.Further, we conduct classiedrisk management and takecorresponding measures to mitigateor eliminate the risks.
By formulating and optimisingrelevant management documents,Joincare promptly handles qualitycomplaints and adverse reactionfeedback from users for post-marketing management. Besides,we organise and conduct post-marketing drug research, andcollect full lifecycle drug data.E?orts are also made to assessrisks, determine managementmeasures for risks identied, andcontinuously monitor potentialrisks.
R&DProductionOperation
On the premise of complying withrelevant laws and regulations,Joincare ensures its R&D quality byfollowing ICH guidelines such asthe pharmaceutical quality systemICH Q10 and adopting the QualityTarget Product Prole (QTPP), theFailure Mode and E?ects Analysis(FMEA), the Hazard Analysis andCritical Control Points (HACCP),and other risk management tools todetermine products’ critical qualityattributes (CQAs) and criticalprocess parameters (CPPs).
Product Recalls
Reported
External InspectionsCompleted in 2024
6.2.2 Quality Audit
In order to continuously improve the quality management system, the Group has madeperiodic quality audit plans covering all the producers, operators, and R&D institutions.Special audits are conducted following management demands and external regulatorychanges.We perform quality audits at least twice a year on our production subsidiaries with referenceto GMP regulations and the On-site Audit Management Procedures. In 2024, the Groupand its subsidiaries organised an audit team to conduct 50 quality audits on the productionsystem, packaging system, material system, equipment and facility system, quality assurancesystem, quality control system, environmental protection and occupational health and safetyof the subsidiaries and entrusted production enterprises. We also urged them to rectify thedeficiencies identified in the audits. With reference to the Procedures on Self-InspectionManagement and the Quality Management System Internal Audit Management Policy andOperating Procedures, we designated teams to carry out comprehensive self-inspection orinternal audit on the quality management system of R&D, production and sales.Meanwhile, the Group and each of its subsidiaries actively cooperated with the quality auditsby domestic and overseas regulators and customers, and analysed and promptly rectified thedeficiencies identified by external experts to enhance quality management continuously. In2024, Joincare passed a total of 139 external audits and inspections at the group level, whichincluded third-party audit (ISO 9001 annual audit), on-site inspection for drug re-registration,GMP compliance inspection, and supervisory inspection. As for deficiencies identifiedduring self-inspections and internal and external audits, the Group and subsidiaries promptlyconducted cause analysis and risk assessment by means of shbone diagram, fault tree, FMEAand other quality risk management tools. Furthermore, we devised corrective and preventivemeasures for these deciencies to enhance our quality management performance.
Internal Quality AuditsConducted in 2024 Groupledaudits across subsidiaries andcontract manufacturers
6.2.3 Responsible Product Design
As a key driver and beneciary of the green transition strategy, Joincare integrates green and low-carbon concepts into new product developmenttaking into account quality, safety, health, environmental protection and other elements throughout the product lifecycle. On the premise ofmeeting customer needs and providing premium products, we make every effort to minimise the negative impact that our products may haveon the environment and society in R&D, production, transportation, sale, use, disposal, etc. By implementing green supply chain management,we facilitate green manufacturing of factories along the supply chain. In this way, we promote the green performance throughout the chain in acoordinated manner, and help build a green, low-carbon and circular economy.
2024 Sustainability Report 06 Safeguarding Product Quality
R&D and designWe analyse and identify potential social and environmental risks that may arise throughout the lifecycle of our productsand seek to manage them at the source where possible. For example, we have recognised that choosing the wrong rawmaterials or ingredients for product development may cause serious damage to the environment. With this in mind,we have stepped up our efforts to monitor and study environmental impact factors of raw materials. We have set up adepartment to assess the potential environmental impact and other negative impacts of the raw materials used in ourproducts, and to promote the use of non-hazardous materials or minimise the use of hazardous materials.
Manufacturing
We have developed management policies such as the Control and Management of Environmental Factor Identicationand Evaluation. In accordance with these policies, we monitor energy and water consumption, emissions, wastedischarge and other environmental impacts during product manufacture. We assess the materiality of environmentalfactors in terms of producing frequency, toxicity, degree of mitigation, control measures and impact on stakeholders,and adjust product design or take relevant control measures based on the assessment results, so as to reduce thenegative impact of our products on the environment during their manufacture.
Transport and distributionFocusing on the harm that hazardous chemicals may cause to human health and the environment, we sort out, identifyand classify all chemicals involved in the transport and distribution of our products to reduce the use of hazardouschemicals wherever possible. We also implement strict rules for the storage, transport and use of necessary chemicalsto minimise the harm caused by hazardous chemicals during their lifecycle.
Product useWe analyse the environmental and social impacts of products during their use following the principle of productlifecycle management, to ensure that product design and materials selection do not violate environmental and sociallaws and regulations.
Recycling and disposalWe identify the elements of our products that may have negative impacts on the environment during product recyclingand disposal following the Control and Management of Environmental Factor Identification and Evaluation. On thisbasis, we seek to reduce the use of such elements in product design and develop standardised processing procedures forirreplaceable elements, to guide relevant parties on how to process them properly and minimise negative environmentalimpacts.
6.3 Quality Training for Employees
Joincare values training and education programmes on product quality. We have established the scheme to manage employee quality training inaccordance with GMP, GSP, GVP, CNAS and other specications. Quality training plans are developed every year for all employees to enhancetheir awareness and competence in this regard through quality-related short training sessions, fun games, online knowledge contests, operationalskills competitions and other diversified training forms. In 2024, Joincare conducted more than 730 training sessions on product quality andsafety, with an employee coverage rate of 100% and 47.37 hours of training per person.
Joincare and its subsidiaries carry out “Quality Month” events for all employees on an annual basis. Every month, we provide professionaland customised training courses for all personnel related to quality systems, covering quality control, as well as R&D, production, sales andpharmacovigilance management. In this way, we keep relevant personnel well informed of the changes in applicable laws and regulations andquality standards and improve their professional skills and competencies.To enhance employee awareness of product quality, we share knowledge on quality laws and regulations with employees every day, to help themgain legal knowledge about quality in their daily work. In addition, following the principle of practicality and necessity, the Group has issued theJoincare Compilation of Quality Laws and Regulations based on 20 common regulations and guidelines selected from MAH, GCP, GMP, GSP,GVP and other regulations. This compilation serves as a daily reference tool provided to all employees, supporting and encouraging them toconsult it promptly.
Training sessions onproduct quality and safetymore than
+
Employeecoverage rate of
%
Average QualityTraining Per Employee
47.37
hours
Case
The “Innovation Leads and Quality Comes First” event of JiaozuoJoincare during the “Quality Month”In September 2024, Jiaozuo Joincare carried out a varietyof interesting activities themed on “Innovation Leads andQuality Comes First”, including knowledge contest, funquiz, essay contest and creative video sharing. It aimedto guide employees to learn quality knowledge, enhancequality awareness, and combine quality managementwith practical production. Jiaozuo Joincare also arrangedgenerous rewards to encourage employees to participateand improve their knowledge and expertise of qualitymanagement.
The “Innovation Leads and Quality Comes First” event ofJiaozuo Joincare during the “Quality Month”
2024 Sustainability Report 06 Safeguarding Product Quality
Case
The 2024 “Quality Month” of Joincare
In September 2024, the Group carried out the annual “Quality Month” activity for all employees as usual, with the aim ofpracticing quality management and consolidating the quality culture. To this end, the headquarters delivered a series of activitiesjointly with multiple subsidiaries such as Taitai Pharmaceutical, Joincare Haibin, Haibin Pharma, Xinxiang Haibin, JiaozuoJoincare and Shanghai Frontier. These activities mainly included quality knowledge training, quality knowledge contests, and funactivities.In terms of quality knowledge, we conducted a total of 8 centralised training sessions, covering innovative drug R&D, APIR&D technology transfer, IND formulation quality research, quality management, cleaning validation, laboratory managementand so on. With 100% employee participation, the training enriched the professional knowledge for all staff. We also organisedknowledge competitions with questions revolving around R&D, production, sales and other business modules. By joining in theseactivities, employees became more familiar with quality-related regulations and theories.Various fun activities during the “Quality Month” created a working atmosphere in which all employees are constantly involved inquality management. Through these events, we increased employees’ sense of responsibility that quality management is essentialin all business areas, throughout the process and at all times. This reflected the Group’s remarkable achievements in building aquality culture and raising the quality management awareness.
“Quality Month” Events of Joincare in 2024
Case
Taitai Pharmaceutical carried out special training on GMP practicesTaitai Pharmaceutical focuses on reserving and training production qualitymanagement talents to meet the Group’s talent needs in rapid development. In2024, Taitai Pharmaceutical organised a total of 49 training sessions on GMPpractices in various production departments, the content of which coveredcontamination prevention, cross contamination control, confusion prevention,and error prevention. The training acquainted employees with operationalskills of each stage, thereby reducing quality issues due to improper operations.Through these efforts, employees thoroughly understood the importance ofdrug quality, ensuring the integration of quality awareness in every aspect ofproduction.
Taitai Pharmaceutical Carried out Special
Training on GMP practices
6.4 Intellectual Property Rights Protection
As part of the continuous efforts to build a system of intellectual property rights protection, Joincare strictly abides by laws and regulations suchas the Patent Law of the PRC, the Guidelines for Patent Examination, and the Measures for the Implementation of Early Resolution Mechanismsfor Drug Patent Disputes (for Trial Implementation). Joincare has formulated management documents such as the Policy on Emergency Plan forIntellectual Property and the Policy on Intellectual Property Education and Training to clarify the Group’s emergency plan for patent infringement andthe department responsible for training method of intellectual property. All these efforts aim to improve the management and operation of intellectualproperty, raise employees’ awareness of intellectual property protection, and fully respect others’ research and innovation achievements, so as to build anR&D innovation ecosystem featuring mutual benet and mutual trust.The Group continues to promote intellectual property protection, improve the intellectual property system, and accelerate the transformation of R&Dachievements within the Group. By registering patents, trademarks, copyrights and technical secrets, we aim to protect the Group’s intellectual property andoptimise strategies in this regard. In 2024, the Group registered trademarks for two marketed products of Salmeterol Xinafoate and Fluticasone PropionatePowder for Inhalation (健可畅?
), and Fluticasone Propionate Nebuliser Suspension (健可顺
?
). By the end of the reporting period, the Group had applied for125 patents for inhalation preparations, including 65 invention patents, 49 utility model patents, and 11 appearance design patents. Meanwhile, 99 patents weregranted, including 43 invention patents, 45 utility model patents and 11 appearance design patents.
Number of valid patents led
Valid Patents Filed
by the End of theReporting Period
Number of valid patents granted
1,113
Number of invention patents
Valid Patents Granted
by the End of theReporting Period
Number of registered trademarks
1,890
Number of domestictrademarks1,690
Number of overseastrademarks
Trademarks Registered
by the End of theReporting Period
Table: Joincare’s intellectual properties
Number of domestic invention patents
2024 Sustainability Report 06 Safeguarding Product Quality
At the same time, we make training plans every year to train employees on intellectual property knowledge and skills at various levels and stages. Thisprogram aims to provide general knowledge and professional skills training related to intellectual property protection. Through methods such as casestudies, interpretation of standards, and practical application exercises, we strengthen employees' awareness and professional capabilities in intellectualproperty protection. In the days ahead, we will continue to strengthen intellectual property protection with new technologies, play a demonstration role inintellectual property management, and implement the Group’s strategy of innovation-driven sustainable development, to contribute to the building of apowerful country in intellectual property.
Case
Training on the intellectual property rights of innovative drugsIn November 2024, the Group held 5 training sessions on intellectual property mining, patent writing, case analysis, policies andregulations, and other topics related to innovative drugs. In particular, the training on “Patent Mining during Pharmaceutical Researchon Innovative Drugs” delved into the judgement of creativity, and identication and di?erentiation of techniques during pharmaceuticaldevelopment. By analysing a great deal of real cases, the training helped R&D personnel master relevant regulatory requirements andenhanced their practical operations during patent mining. These training sessions assisted R&D teams to better understand and applyintellectual property regulations, thereby building up the Group’s competitiveness in the eld of innovative drugs.
Training on the Intellectual Property Rights of Innovative Drugs
Joincare tends to develop overseas markets with an open and inclusive attitude. In the future, when promoting our drugs and reagents on overseasmarkets, we will implement as far as possible the Doha Declaration on the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement andPublic Health. Where third parties invite us to provide our products for the least developed and low-income countries, we will license our product patentson appropriate terms and conditions.
6.5 Protection of Customer Rights and Interests
Adhering to the concept of responsible marketing, we deliver truthful and effective drug information to customers. We fullyrespect and understand users’ needs to enhance customer satisfaction and improve the Group’s service quality in multipledimensions.
6.5.1 Responsible Marketing
Joincare strictly abides by the Advertising Law of the PRC, the Against Unfair Competition Law of the PRC, the PersonalInformation Protection Law of the PRC, the Measures for Examination and Administration of Advertisements of Drugs, MedicalDevices, Healthcare Products and Formula Foods for Special Medical Purposes, and the relevant laws and regulations of theplaces where the Group operates. We commit to provide accurate and truthful product information in the process of publicityand marketing. We have formulated the Responsible Marketing Policy to specify requirements for all employees (including full-time, part-time and temporary employees) of the Group when conducting marketing campaigns. These include requirementson compliance with industry laws and regulations and marketing, ads and sales rules applicable to us, accurate disclosure ofinformation, protection of customer privacy, and fulfilment of environmental protection and social responsibility. Meanwhile,we have developed the Code of Conduct for Sales Personnel of Joincare and other internal policies to regulate the marketingbehaviours of relevant personnel.
The Code of Conduct for Sales Personnel of Joincare is summarised as follows:
???
????
Strictly abide by national laws and regulations.Strictly comply with the relevant provisions of the Good Supply Practice.Be honest and trustworthy in business activities, and uphold fairness in competition. In businessactivities, it is strictly prohibited to interfere with or affect the rational clinical use of drugs byexaggerating the efficacy of products, making false and misleading statements, concealing adversedrug reactions and other means.The interests of enterprises and others shall not be harmed in business activities; the Group’sbusiness secrets and customer privacy shall be protected.Illegal activities such as commercial bribery shall not be conducted for sales.Timely report adverse clinic reactions of drugs (if any) to the Group.Malicious transregional sales are not allowed to a?ect the order of the sales market.
2024 Sustainability Report 06 Safeguarding Product Quality
Responsible Marketing AuditJoincare continues to improve its responsible marketing audit system and standardise the management of marketing activitiesapproval process. In the design, production and distribution of our product information and promotional plans, all marketingmaterials are subject to the approval by authorised management personnel. Besides, we provide professional and timelymarketing compliance consulting channels for employees. We also work with regulators and the media to review the complianceof all our marketing materials in the process of brand promotion and building, so as to ensure that promotional materials complywith laws and regulations.Materialproduction
Produce publicity materials in strict accordance with the Measures for the Examination of Drug Advertisements
Review by relevant
departments
Review by the Business Department, Legal Department and Internal Control Department to ensure that publicitymaterials comply with relevant policies and regulations of the Group
Review byregulators
Submit advertising materials to relevant regulators to obtain approval after review
Review by mediaCarry out the second round of review by targeted mediaAdvertisementdistribution
Distribute publicity materials in compliance with laws and regulations and according to marketing plans
Compliance Review Process for Joincare’s Marketing Campaigns
We have set out the requirements for our responsible marketing audit in the Responsible Marketing Policy and established thereview and monitoring mechanism for responsible marketing materials. We regularly review marketing activities and materials,including but not limited to marketing activity plans, promotional materials and sales documents, aiming to ensure that marketingactivity is true, accurate and legal, free from false advertising and misleading information, and compliant with the requirementsof the Group’s Responsible Marketing Policy. In addition, the Group Risk Management Department conducts regular internalaudits on the implementation of the Responsible Marketing Policy to ensure that all marketing activities meet the requirements ofthe policy.Responsible Marketing TrainingThe Group provides regular responsible marketing training for all employees. Meanwhile, the marketing personnel will receiveadditional professional training on a regular basis, which covers marketing rules and policies, product knowledge, laws andregulations, compliance risks, sales techniques, etc. The training, which takes the form of field exercises, scenario simulations,case studies and interpretation of laws and regulations, helps to ensure that employees understand and comply with our marketingand advertising policies, avoid exaggerated, misleading or false advertising, and provide consumers with truthful and trustworthyproduct information.
In 2024, Joincare constantly carried out responsible marketing training, covering all employees in marketing positions, with atotal training time of 17,206 hours.
Case
Cultural building of responsible marketing at Joincare
This year, Joincare’s Healthcare Product Division launched diversied training activities of responsible marketing, such as onlinelive streaming, on-site lectures, recorded videos, and practices and exercises. The training content included marketing managementpolicies, product knowledge, sales skills, business negotiation, project implementation, and user expansion skills. Based on theonline knowledge library, we introduced the training event of “Online Enhancement Camp for Lecturers”, enabling us to organiseresponsible marketing courses, practices and exams in a more exible and e?cient manner.With a focus on the building of a compliance culture, the Prescription Medicine Division formulated and optimised a seriesof management documents, such as the Prescription Medicine Compliance Management Policy and the Service ProviderManagement Policy. The division also strengthened the compliance assessment and knowledge training for sales sta?. Meanwhile,we carried out 50 unaccounted visits and compliance training events for partners in 18 provincial administrative regions across thecountry, with a view to intensifying partner selection and risk control.In 2024, Joincare delivered tiered training with varying frequency and focus for all marketing employees. Specifically, theHealthcare Product Division conducted 119 training sessions for 1,981 participants cumulatively, and the Prescription MedicineDivision conducted 26 training sessions.
Joincare’s Responsible Marketing Training
2024 Sustainability Report 06 Safeguarding Product Quality
6.5.2 Customer Satisfaction
The Group conducts quarterly surveys of online and offline customers regardingtheir satisfaction with the efficacy of our products, the service provided by ourcustomer service/in-store sta?, product safety and packaging, and their willingnessto recommend our products to others. The aim is to understand customers’ attitudesto, views of, and suggestions for our products and services, so as to improve ourproduct quality and service processes according to customer feedback. By fullymeeting customer needs, we strive to improve our service quality and increasecustomer satisfaction.
In 2024, Joincare’s annualcustomer satisfaction ratereached
%.
Customer Communication and Complaints
We focus on building a multi-channel platform for communicating and interacting with customers, to understand their opinionsin time and meet their needs and expectations. Customers can make complaints on our o?cial platform or by calling our hotline.Our after-sales personnel will handle customer complaints and provide customers with reasonable solutions after understandingtheir needs. We also monitor the progress of the implementation of the solutions to ensure that customers’ reasonablerequirements are met. In addition, we regularly collect and summarise issues that customers frequently complain about, andorganise operations, product, logistics and other departments to take targeted corrective action for better customer experience.To improve the skills of customer service staff, we provide them with quarterly training on customer communication andcomplaint handling. In 2024, we conducted a number of customer service training sessions on themes including empathy,products, conversion rate and intelligent customer service assistance.
Customer Privacy Protection
We abide by the Civil Code of the PRC, the Personal Information Protection Law of the PRC, and other laws and regulationson the protection of personal information. We have built a management system for customer privacy security risks to protectcustomer privacy. Where reasonable, we adhere to the principle of “Data minimisation” to minimise the collection of customerinformation and other personal information, and allow customers to change their personal information by calling or emailingus. For highly condential information, we sign condentiality agreements with relevant parties and take necessary measures toensure information security.
In 2024, the Group did not have anyviolation of customers' privacy orbreaches of customers' private data.
6.6 Supply Chain Management
To ensure the stability and sustainability of the supply chain, Joincare actively cooperates with suppliers to build a harmoniousand win-win partnership. In strict compliance with relevant laws and regulations such as the Bidding Law of the PRC, wecontinue to improve the internal policies including the Procurement Control and Management Procedures, the SupplierManagement System, and the Material Supplier Selection Instruction to standardise procurement and supplier management.We have formulated and released the Code of Conduct for Suppliers to specify the main principles for suppliers in businessethics, labour rights and human rights, health and safety, environmental protection and green development. Besides, ourpurchasing practices are continuously reviewed to ensure that our suppliers operate in alignment with our Code of Conduct forSuppliers to avoid potential conicts with ESG requirements.
6.6.1 Supplier On-Boarding Management
We set strict standards for supplier on-boarding in consideration of fair bidding, quality priority and diversifiedprocurement. Potential suppliers are evaluated on the quality control, supply stability, environmental and risk controland other aspects through various forms such as desk assessment and product testing to verify their qualifications andcapabilities. On even ground, we give preference to suppliers who have been certied to ISO 9001, ISO 14001, ISO 45001,and ISO 50001, or who have obtained other EHS-related certications such as green factory, clean production review, andsafety production standardisation. Suppliers included in the list of qualied suppliers shall sign the Procurement Contractand the Quality Assurance Agreement and return the Supplier Questionnaire Survey and the Supplier EHS QuestionnaireSurvey, which define their responsibilities of quality assurance and EHS management in the supply process, and theircommitment to a stable and safe supply of production materials.
Southern China 35.7%
Eastern China 35.9%
Northern China 8.2%
Central China 13.8%Northeast China 1.1%
Overseas 0.3%Southwest China 1.7%Northwest China 3.3%
GeographicalDistribution ofSuppliers
Geographical Di?ribution of Suppliers
2024 Sustainability Report 06 Safeguarding Product Quality
6.6.2 Supplier Classication and Risk Control
To assess and manage suppliers, we rst identify, assess and manage supply chain risks, including environmental, social and governance (ESG)impacts and business relevance aspects. We evaluate the ESG impact of suppliers by assessing their country-specic risk, sector-specic risk andcommodity-specic risk, and identify our signicant suppliers and signicant indirect suppliers.
Details of Joincare’s signicant suppliers
Dimensions of Supply ChainRisks Assessment of Joincare
Enterprisequalication
Enterprisenancial status
Enterprise businessenvironment
Impact ofenvironment and
other EHS
Impact of majorunexpected events
Impact ofinternational nanceand exchange ratesImpact of unusualclimate
Impact of socialevents
Impact of festivalsImpact of businessethics
Impact of workers’human rights
Enterprise productquality and service
International tradeenvironment and
impact
Impact of nationalenvironmentalprotection regulationsand policies
Total number of Tier-1 suppliers4,186
Total number of signicant suppliers in Tier-1
Total number of signicant indirect suppliers
Total number of signicant suppliers
The risk level of suppliers is initially determined according to the type of materials they supply. We implement hierarchicalmanagement on suppliers and the existing suppliers are rated at three levels, namely H (high risk)/M (medium risk)/L (low risk).We comprehensively consider suppliers’ product quality risk, consumption of materials, the impact of materials on productquality, and the risk factors involved above every year, and re-evaluate their risk level based on their annual quality reviewreports.
H (High-risk materials)Materials that directly affect theintrinsic quality of medicines, suchas APIs for medicine production.
M (Medium-risk materials)Materials that indirectly affectthe intrinsic quality of medicines,such as excipients for medicineproduction, packaging materials indirect contact with medicines, andkey consumables for preparations.
L (Low-risk materials)Materials that a?ect theexternal quality or other qualitycharacteristics of products, such aspacking materials.
To ensure production stability and product quality and safety throughout the production process, we have developedcomprehensive and systematic risk mitigation process and contingency plans based on our own supply chain and businesses.In procurement, we continue to improve our existing dual sourcing policy and have formulated relevant systems for alternativesuppliers. We have alternative suppliers for raw materials and excipients as well as key consumables to minimise the supplyrisks resulted from the material shortage of suppliers. In production, we conduct research on preparations, establish productionbase for APIs, actively develop the API production process and strive for the integrated production of “APIs-preparationsvertical integration” to steadily improve our production capacity for major raw materials. At the same time, the Group’smultiple manufacturing sites across the country can back up each other, with the ability to provide production support in case ofemergencies.We pay close attention to inventory levels in day-to-day operation. The following risk management measures are taken to ensurethe production stability from the source. Manufacturing subsidiaries are also taking proactive measures to address supply chainstability risks.
Planning for alternative suppliersand developing suppliers in advanceto avoid single sourcing.Signing strategic cooperationagreements with key materialsuppliers to ensure stable supplyof materials.
Adopting the safe inventory strategyand dynamically managing inventorylevels for materials supplied by high-risk suppliers, to maintain an optimalinventory level to meet six months to ayear’s production requirements.
2024 Sustainability Report 06 Safeguarding Product Quality
Company NameResponse Measures
Joincare Haibin
Joincare Haibin implements diversified supply strategies and actively responds to supply chainrisks:
? The company ensures that its main raw materials and packaging materials are purchased frommultiple suppliers, and production consumables are chosen from a number of qualified suppliers,in order to avoid supply shortage and enhance stability. In 2024, the company engaged several newsuppliers. When existing suppliers experienced short-term supply shortage due to force majeure, thenew suppliers would be able to provide sufficient supply in a timely manner. This practice preventedproduction interruption and reduced the risk of supply disruption of raw materials and excipients aswell as packaging materials by approximately 40%.
? The company plans to introduce domestic suppliers for exclusive imported materials, striving tomitigate risks such as delayed delivery due to the change of the international pattern or suppliers' ownreasons. In 2024, the company developed domestic suppliers. After several rounds of strict selectionand quality assessment, Joincare Haibin selected those with excellent qualifications and strongtechnical strengths to enrich the supply source. This helped mitigate the overseas supply risks causedby international trade friction.
TaitaiPharmaceutical
Taitai Pharmaceutical has reviewed past cooperation patterns with suppliers and devisedfeasible solutions to mitigate supply risks. These solutions aim to address material shortages,supply interruptions, delays in delivery and other potential risks to supply chain stability:
? The company regularly checks its inventory, establishes the minimum inventory alert line, and makes
preparations for material purchase in advance.
? The company regularly conducts desk assessment or on-site audit of suppliers’ qualifications andproduction sites to understand their latest operating status, and timely assists suppliers to solvedi?culties in production.
? The company establishes long-term cooperation with suppliers and signs annual procurementagreements to ensure that suppliers deliver according to requirements and to reduce the risk of supplyinterruption.In 2024, Taitai Pharmaceutical further introduced 12 qualified suppliers to phase in the dual-supplier mechanism for all raw materials, excipients and key consumables. This effort ensuredthe stable supply of raw materials along the production line and avoided production stagnationdue to raw material shortage. As a result, the company firmly guaranteed the continuity ofproduction and reinforced resistance to risks during procurement.
Xinxiang Haibin
To effectively prevent problems such as lack of products and supply shortage of qualifiedsuppliers, Xinxiang Haibin has taken the following measures:
? For each type of key raw material, the company ensures that there are 3 or more qualied suppliers tokeep the supply chain safe and stable.? The company predicts the market supply and demand according to the annual cyclical supply ofproducts, and prepares certain safety stock of materials in short supply in advance to deal with theuncertainty caused by market changes.
? The company continues to find and develop new qualified suppliers, ensure multi-regional,
multichannel and diversified management of qualified suppliers, so as to cope with risks brought bychanges of government policies and uncertain market supply and demand.
6.6.3 Supplier Audit and Evaluation
Joincare has formulated the On-site Audit Management Procedures, the SupplierQuality Review Management, the Material Supplier Quality Audit Procedures,among others, which require periodical reviews of supplier’s qualification,production site, process technology and production facilities, warehousemanagement, quality management system, environmental protection andoccupational health and safety management. This year, we further revised ourSupplier Management Procedures to set stricter management requirements forthose involved in the Group’s supplier audits, and to clarify the approval processof suppliers. In addition, we continue to strengthen the management of significantindirect suppliers, conducting on-site audits of the manufacturers of key productspurchased from distributors (the significant indirect suppliers of the Group). Wealso inspect the production facilities and management of the upstream supply chainto ensure that signicant indirect suppliers are qualied.We determine the audit frequency and form according to the risk classification ofsuppliers. In case of any management or quality deficiencies during the audit, wewill inform them through quality feedback notice. The results are consolidatedin the Supplier Quality Audit Report as the requirements for suppliers to makerectications and improvement. We also follow up on the rectications of suppliersin a timely manner, collect rectification reports, and help them to improve qualitymanagement. In 2024, we audited a total of 654 tier-1 suppliers in accordance withthe annual supplier audit plan and conducted on-site audits to 11 signicant indirectsuppliers.
Table: Supplier audit frequency and form of Joincare
Supplier ClassicationAudit Frequency and Form
H (High-risk materials)One on-site audit every 3 yearsM (Medium-risk materials)
One desk audit on quality every 3 years, and on-site audit
when necessary
L (Low-risk materials)Qualication information updateIn addition to the supplier audit, we evaluate suppliers every year to get a timely and comprehensive understanding ofsupplier management. According to the Supplier Annual Evaluation Form, we give suppliers a letter grade of A, B, C, andD by assessing their product quality, product delivery accuracy, product delivery timeliness and service satisfaction. Amongthem, level C suppliers are required to make rectifications within a time limit, during which we will reduce the quantity wepurchase from them accordingly. These suppliers will be re-evaluated and reclassified after rectifications. Level D representsunqualified. We will immediately end the cooperation with suppliers rated level D and revoke their supply qualifications forthree years. The distribution of procurement shares in the next year is largely determined by the annual comprehensive supplierevaluation. Depending on business conditions and the results of the annual comprehensive supplier evaluation in the previousyear, subsidiaries of the Group will make appropriate adjustments to the procurement ratio of the current year. In 2024, theGroup conducted an annual comprehensive evaluation of 412 significant suppliers, either through desk assessments or on-siteassessments.
Audited tier-1 suppliers
On-Site Audits of KeyTier-2 Suppliers
2024 Sustainability Report 06 Safeguarding Product Quality
6.6.4 Supplier ESG Management
Joincare keeps a close eye on suppliers’ sustainable development management and performance to systematically monitors theirESG management. The Sustainability Committee of the Board of Directors, as the highest decision-making body, is responsiblefor overseeing the implementation of supplier ESG programmes. At the same time, we have clarified the environmental, socialand governance requirements for suppliers in the Code of Conduct for Suppliers, and increased our focus on suppliers’ ESGmanagement performance when onboarding, auditing and evaluating them.We conduct an EHS survey and score on suppliers as part of the on-boarding process, and take the score as one of the factorsfor supplier admission. In the early stage of cooperation, we organise suppliers to learn the specic requirements of the Group’sCode of Conduct for Suppliers, guide them towards more sustainable production and operations, and encourage them to obtainmanagement system certications such as ISO 14001 and ISO 45001 to mitigate ESG risks in the supply chain. By the end of thereporting period, the Group and subsidiaries had 651 suppliers that obtained certication for environmental management systemsand 564 suppliers that obtained certication for occupational health and safety management systems.We fully review suppliers’ ESG management and implementation of the Code of Conduct for Suppliers during supplier auditsand evaluations, and share ESG-related regulations and regulatory trends with suppliers during on-site audits. Suppliers that arefound to be in breach of the Group’s ESG requirements during the audit and assessment will be excluded from contracting ifthey cannot achieve minimum ESG requirements within a specied timeframe. To supervise supplier EHS management, we haveformulated the Supplier EHS Audit Management Procedure to clarify the EHS audit and relevant management requirements forsuppliers. Supplier EHS audit includes safety, environmental protection and other fields, covering toxic and harmful emissionindicators such as particulate matter, sulphide, VOCs emission, to review the supplier’s management of indirect discharge ofwater pollutants, air pollutant emissions, noise and other emissions. We organise the EHS audit for suppliers every year, theresults of which will be considered as an important factor for the next annual purchase share assessment. This can urge suppliersto promote their EHS management.Procurement staff are also organised to learn about the supplier ESG management. This enables them to familiarise their roleswith our supplier ESG programmes. Besides, we organise relevant training to help procurement staff better understand supplierESG management, so that they can ensure strict compliance with the supplier ESG management standards in their daily work,thereby contributing to building a sustainable supply chain.Company NameSupplier EHS Audit
Xinxiang Haibin
Xinxiang Haibin has incorporated EHS audits into the annual supplier audit plan. The audits cover staffoccupational health and safety management, wastewater pre-treatment, waste gas treatment, and solid wastetreatment. At the same time, Xinxiang Haibin focuses on the supplier’s treatment of toxic and harmfulemissions, reviewing its VOC emissions, exhaust gas and other indicators.
Jiaozuo Joincare
Jiaozuo Joincare carries out on-site supplier audit in accordance with ESG standards. The companyconducts supplier EHS audits by checking written documents and records, operation of environmentalprotection facilities during production, and compliance with operation norms for employee safety. Forsuppliers not certified by the ISO 14001 and ISO 45001 systems, Jiaozuo Joincare provides professionalguidance and assistance to advance their efforts for sustainable development. By doing so, the companyaligns their production activities with the demanding requirements in terms of environmental protection,health and safety.
Livzon Group
Livzon Group, a holding subsidiary of Joincare, has incorporated EHS audits on suppliers into the annualsupplier audit plan. The audit covers environmental and safety indicators, such as energy conservation andemission reduction, compliance with pollutant discharge standards, compliance with solid waste collectionand disposal regulations, and ISO system certification. In addition, Livzon Group closely monitors theharmful emissions of suppliers, including sulfur dioxide emissions and hazardous waste treatment indicatorsinto the scope of audits.
6.6.5 Supplier Capacity Building
We provide multiple channels including training, exchanges, and collaboration to help our suppliers build their capacity. Toensure the safety and reliability of our products, we carry out training on quality assurance covering all high-risk suppliers at leastannually. During training, we emphasise the Group’s quality standards and requirements to suppliers, help them analyse existingareas of improvement, provide guidance on environmental protection, technical improvement and other aspects, and encouragethem to develop and implement relevant measures. In addition, we will further summarise the quality problems found in supplieraudits and annual evaluations, and conduct special training and communication for suppliers to improve training efficiency. In2024, the Group conducted training on quality assurance for all high-risk suppliers.
Case
Joincare’s subsidiaries conducted supplier training? In 2024, Joincare Haibin provided quality enhancement training for all high-risk material suppliers,communicating the Group’s quality management goals to suppliers, and helping them better understand the keypoints of quality and EHS management.? In 2024, Haibin Pharma provided 18 quality training sessions for suppliers, communicating the Group’s qualitymanagement requirements to suppliers, and strengthening their awareness of quality management.? In 2024, Jiaozuo Joincare launched a series of systematic and targeted quality training activities for raw materialsuppliers, mainly centring on three topics of “How to promote 5s management”, “ISO9001 quality managementsystem standards”, and “How to carry out on-site QA management”. These activities aimed to maintain quality andstable raw material supply, thus laying a solid foundation for product quality. The company also actively supportssuppliers in improving their own supplier management level, and helps them stay complaint with regulatoryrequirements and build robust supplier management processes to ensure the quality and safety of materials from thesource.
2024 Sustainability Report 06 Safeguarding Product Quality
Based in the healthcare industry, Joincare firmly implements the core innovation-driven strategy. With the protection of patients’ interestsas our fundamental goal, we work hard to address unmet clinical needs. We deeply explore the diversified application of AI technology inpharmaceutical sector, and continue to introduce better medical products and healthcare solutions through continuous innovation and scientificand technological efforts. Meanwhile, we endeavour to improve the accessibility and affordability of high-quality pharmaceutical products andservices. We are making continuous efforts to expand our overseas business, contributing to improving the quality and capacity of healthcareservices in low-and middle-income countries and regions, and facilitating the improvement of human health by working with stakeholders.The Board of Directors of Joincare, as the highest organ represent for Access to Healthcare issues, is responsible for understanding andmonitoring the management of the Group’s Access to Healthcare issues through the Sustainable Development Committee. The SustainableDevelopment Committee is responsible for regularly reviewing the Group’s strategies, policies and performance on Access to Healthcare issues,overseeing and reporting the progress to the Board of Directors, and urging the Group to improve access to healthcare.
SDGs in this section
Access toHealthcare
7.1 Focusing on R&D and Innovation
Focusing on the development of innovative medicines, the Group actively seeks cutting-edge technologies and development opportunities athome and abroad. We practise the R&D mode that integrates independent R&D, license-in and cooperative development, and focus on keytreatment elds, including respiratory diseases, digestive system diseases, assisted reproduction, psychiatric disorders, tumour immunity and painmanagement. Moreover, we continuously expand the product line and R&D pipeline in areas where we have an advantage.We have a multi-level R&D mechanism and an experienced R&D team for independent R&D. To promote independent R&D, we continueto invest more and strengthen the construction of innovative technology platforms for inhalation administration, antibody, sustained-releasemicrospheres, and complex injection, and expand the R&D of other high-end formulations with market potential and new drug delivery devices.By the end of the reporting period, the Group had made landmark progress in many high-barrier complex formulations, obtaining a number ofapprovals for production or clinical trials.In terms of cooperative innovation, we introduce new technologies and products through cooperative development, technology transfer, patentlicensing and other ways. Based on this, we can rapidly promote the subsequent pharmaceutical, clinical and non-clinical research and study onindustrial transformation of new products. We also work with rst-tier top R&D teams in China to enhance product development in areas wherewe have an advantage and speed up the transition to an innovative pharmaceutical enterprise.In addition, the Group actively explores the application of new technologies in pharmaceutical manufacturing. We have established long-termcooperative relations with well-known universities, scientic research institutions, and laboratories both domestically and abroad. Based on this,we create an enterprise technology innovation network with coordinated efforts of enterprises, universities, and research institutions. We nowhave three state-level R&D technology centres and a number of provincial and municipal innovation carriers. In the field of innovative drugR&D, we adopt the world's leading AI models, comprehensively improving R&D efficiency in aspects such as target identification, moleculardesign, and molecular screening, shortening the R&D cycle, and accelerating the process of bringing innovative drugs to market. We have alsocompleted the deployment and application of the DeepSeek-R1 671B, becoming one of the rst pharmaceutical enterprises in China to introducean AI model with hundreds of billions of parameters into its core business. In the area of synthetic biology pharmaceuticals, we have establishedR&D platforms including an AI computing platform, a synthetic biology component library, a high-throughput automated breeding platform, aswell as platforms for industrial verication and scaling-up, forming an AI-driven system for the design and screening of industrial strains.By the end of the reporting period, the Group’s R&D team had been growing continuously, with 1,670 R&D personnel. We also havecontinuously increased investment in R&D. This year, the total R&D expenditures amounted to RMB 1,532 million, accounting for 9.81% of thetotal audited revenues of the year.
Number and Proportion of R&D Personnel of Joincare in2020-2024
12.49%
2020
12.20%
2021
12.16%
2022
12.11%
2023
11.63%
20241,5571,6151,7171,7401,670
Number of R&D personnel (persons)
Joincare’s R&D Expenditures and Proportion of Its TotalRevenues in 2020-2024
9.32%
1,260.53
2020
11.63%
1,849.82
2021
10.26%
1,758.66
2022
9.80%
1,631.86
2023
9.81%
1,532.00
2024
Amount of R&D expendirures(RMB in 1 milion)
2024 Sustainability Report 07 Access to Healthcare
Table: Major R&D/registration progress of Joincare in 2024
DateMajor R&D/Registration Progress
January 2024Clinical trial approval notice obtained for JKN2306 (Nav1.8 Inhibitor)January 2024Lay out two respiratory biological agents, namely TSLP monoclonal antibody and IL-4R monoclonal antibodyJanuary 2024Compound Ipratropium Bromide Solution for Inhalation approved for drug registration in the PhilippinesFebruary 2024Clinical approval notice obtained for Semaglutide Injection (for indications for weight loss)February 2024Clinical approval notice obtained for JP-1366 Tablets (P-CAB)
March 2024
Lay out the oral drug for COPD, PREP inhibitor, enriching the pipeline of drugs under research in the field of respiratorydiseases.May 2024Approval for drug registration obtained for Fluticasone Propionate Nebuliser SuspensionJune 2024Approval for drug registration obtained for Salmeterol Xinafoate and Fluticasone Propionate Powder for InhalationJune 2024Application for drug registration submitted for Polymyxin B InjectionJune 2024Registration and marketing authorisation applications for Semaglutide Injection (for hypoglycemic indications) acceptedJuly 2024JKN2401 (TSLP monoclonal antibody) entered Phase II clinical trialAugust 2024Application for drug registration submitted for Pixavir Marboxil CapsulesAugust 2024Clinic trial approval obtained for Polymyxin E Sodium Methanesulfonate InjectionSeptember 2024Lay out the new generation of inhaled corticosteroids (ICS)October 2024The rst subject has been enrolled in Phase II clinical trial for the GSNOR inhibitorOctober 2024Leuprorelin Acetate Microspheres for Injection passed the consistency evaluationOctober 2024Approval for drug registration obtained for Voriconazole Dry SuspensionNovember 2024The rst subject has been enrolled in Phase II clinical trial for the MABA dual-target projectNovember 2024Application for drug registration submitted for Meloxicam Nanocrystal InjectionNovember 2024Lay out PDE4 inhibitors to further enrich the products under research for asthma and COPDDecember 2024New drug clinical trial (IDN) approval obtained for JKN2403 Tablets (PREP Inhibitor)December 2024
Lay out β-lactamase inhibitors, which can be used in combination with meropenem to treat hospital-acquired pneumonia/ventilator-associated pneumonia.
7.1.1 Diversied Product Development
Committed to Respiratory HealthChronic respiratory diseases are a major category of diseases represented by chronic obstructive pulmonary diseases (COPD),asthma, etc., featuring a high prevalence rate, high disability rate, high mortality rate, and high disease burden. Adhering tothe original aspiration of “joining us in respiratory care”, Joincare continues to improve the market presence of respiratorydisease medicines, to support domestic respiratory disease treatment. After years of steady development, . our existing productsand products under R&D cover all types of drugs for inhalation therapy for COPD and asthma, providing more effective andsafe drugs for patients with COPD and asthma. By the end of the reporting period, the Group had 10 varieties of inhalationformulations in 14 specications on the market.In 2024, Joincare achieved a strategic breakthrough in the R&D for respiratory system diseases, laying out more than 20 R&Dpipelines, including over 10 Class 1 innovative drugs. In the field of respiratory diseases, Joincare's innovative products havecovered all dosage forms such as inhalation, oral administration, and injection, forming a powerful product matrix for respiratorydiseases. This year, the Fluticasone Propionate Nebuliser Suspension and the Salmeterol Xinafoate and Fluticasone PropionatePowder for Inhalation were approved for marketing. The new influenza drug Pixavir Marboxil Capsule completed Phase IIIclinical trial and an application for production was submitted. The injection of JKN2401 (TSLP monoclonal antibody), a newdrug for treating COPD; JKN2305 (GSNOR) Capsules, an oral new drug for asthma; and the inhalation preparation of JKN2304(MABA dual-target), a new drug for treating COPD, all smoothly entered Phase II clinical trial. A number of Class 1 innovativedrugs have made phased progress.
Case
JKN2304, an FIC drug of Joincare, o?cially enters Phase II clinical trial
In November 2024, JKN2304, a novel MABA dual-target drug of Joincare for the treatment of chronic obstructivepulmonary disease (COPD), observed good safety in the Phase I clinical trial, and officially entered the Phase IIclinical trial with the rst patient enrolled, marking a robust step toward commercialisation.This First-in-Class (FIC) drug has a unique “dual-target” mechanism of action, enabling an innovative designthat simultaneously acts on both LABA and LAMA targets on one molecule, providing a new way of thinkingto address the current challenges in COPD treatment. The dual-target mechanism has successfully avoided thepotential limitations and side-effect risks of single-agent therapy, and the synergy of “dual-target” can achieve adual improvement in COPD symptoms and lung function, greatly improving the efficacy and patients’ adherenceto treatments. Besides, the drug o?ers both quick and long-lasting benets, and is expected to complement or evenreplace existing treatment options. In terms of safety, this drug significantly reduces the likelihood of side effectson the central nervous system, providing COPD patients with more efficient, convenient, and safe new treatmentoptions.
2024 Sustainability Report 07 Access to Healthcare
Case
Marketing application accelerated for Pixavir Marboxil, an innovativeanti-inuenza drug of JoincareIn December 2024, a notice from the Chinese Pharmacopoeia Commission was received, approving the registrationof the generic name of Joincare’s innovative anti-inuenza drug. The formal name approved is “Pixavir Marboxil”.This hints that the drug will soon be o?cially launched. Pixavir Marboxil, a Class 1 innovative anti-inuenza drug,is a novel cap-dependent endonuclease (CEN) inhibitor that effectively blocks replication and transmission of thevirus. The drug can effectively inhibit both influenza A and B viruses. In April 2024, the drug reached the primaryendpoint for Phase III clinical trial. In August 2024, the drug registration application was submitted and accepted bythe National Medical Products Administration.Compared with Baloxavir Marboxil, a mainstream anti-influenza drug on the market, Pixavir Marboxil acts fasterand shows higher efficacy and safety in relieving the symptoms of and cure influenza B infection and adolescentinfluenza infection during its Phase III clinical trial. It also shows lower overall resistance rate. Compared withanother mainstream drug Oseltamivir with a recommended dosage of twice a day, Pixavir Marboxil can inhibit viruslonger with only a single oral dose required for the entire duration of the treatment, which significantly improvesclinical adherence, and simplies treatment while demonstrating high clinical value.
Case
健可畅
?, a powder for inhalation of Joincare, was approved formarketingIn June 2024, Salmeterol Xinafoate and Fluticasone Propionate Powder for Inhalation (“健可畅
?”) of Joincarewas granted the marketing approval, becoming the first powder for inhalation to be launched in China since thepublication of the Guideline for Bioequivalence Study on Genetic Drugs of Orally Inhaled Drug Products in 2020.It is also the first domestic generic drug of Seretide? of GlaxoSmithKline. Salmeterol Xinafoate and FluticasonePropionate Powder for Inhalation, a mix of bronchodilator and corticosteroid for combination therapy, is animportant product for the treatment of asthma and COPD. Among the various inhalation formulations, powders areof the highest technological complexity. The particle engineering, process development, process scale-up, and drugdelivery devices are all challenging. Factors such as intensity, timing, temperature and humidity may affect the airmovement pattern of drug particles during inhalation and in turn the distribution of drugs in the lungs, ultimatelyaffecting the clinical effect. So the replication of dry powders for inhalation is an industry recognised challenge.With Joincare’s Salmeterol Xinafoate and Fluticasone Propionate Powder for Inhalation approved to be marketed, itis expected to break the monopoly of branded drug research in China and provide patients with more drug options.
R&D E?orts in Bio-PharmaOver the years, LivzonBio, a subsidiary of Joincare, has kept exploring biomedicine. It has built well-developed R&D and production technologyplatforms for antibody medicines and fusion protein medicines. Focusing on the development of products related to autoimmune disease,reproduction, and communicable disease prevention, LivzonBio has carried out and promoted a number of R&D projects for innovative vaccines,monoclonal antibodies, and recombinant protein drugs.LivzonBio speeds up the approval of new products through independent R&D, license-in, strategic cooperation, and other ways. Relying onthe well-developed R&D and industrialisation conditions of recombinant protein drugs, LivzonBio continuously enriches the pipelines ofproducts under research and improves the commercialisation of products. This year, LivzonBio made progressive efforts in R&D and went all-out to advance a number of key projects. Among them, the critical Phase III clinical trial of Recombinant Anti-human IL-17A/F HumanisedMonoclonal Antibody Injection were accelerated, successfully completing the enrolments for the Phase III clinical trial of ankylosing spondylitisand psoriasis. The Phase III clinical trial of Recombinant Human Follicle Stimulating Hormone were prioritised, with the pharmacological, non-clinical and clinical similarity studies completed, and the enrolment for Phase III clinical trial successfully completed, reaching the major e?cacyendpoint. In January 2025, the BLA marketing application was filed. Meanwhile, LivzonBio introduced quadrivalent recombinant influenzavaccines (RIVs) to strengthen the iteration of the vaccine R&D platform.Development of Sustained-Release Microspheres for InjectionMicrospheres are microspherical polymers prepared with high molecular materials with a particle size of 1-250 μm and containing one ormore drugs. Microsphere formulations are superior to traditional injection formulations in long acting and high bioavailability. They havespecific tropism to target organs and can greatly simplify drug administration and improve patients' adherence to treatments, with outstandingclinical advantages. Livzon Microsphere, a subsidiary of Joincare, focuses on the R&D of anti-tumour, endocrine-regulating, and antipsychoticmicrosphere formulations, which are advantaged for their long-acting and sustained-release mechanism. The company has an in-depth study oflong-acting formulation technology with independent intellectual property rights (IIPR).This year, the new drug application of Aripiprazole Microspheres for Injection of Livzon Microsphere was steadily advanced, successfullypassing the on-site verification of drug registration and the clinical registration verification by four centres, with supplementary informationsubmitted on time. In September 2024, approval was obtained for adding Endometriosis Endometriotic as an indication for use for TriptorelinAcetate Microspheres for Injection (1-month sustained release). In 2024, Phase III clinical trial on this drug for adding central precocious puberty(CPP) as in indication for use were conducted, which is expected to make new breakthroughs in this eld. Leuprorelin Acetate Microspheres forInjection (Three-month sustained-release) is being tested for bioequivalence (BE). Leuprorelin Acetate Microspheres for Injection has passed theconsistency evaluation, becoming the first long-acting, sustained-release formulation of gonadotropin-releasing hormone (GnRH) in the worldapproved for bioequivalence (BE) studies in accordance with the U.S. FDA guidelines for individual agents.Care about Mental DisordersMental illnesses severely impact the lives of hundreds of millions of people globally. They not only cause great harm to the physical and mentalhealth of patients but also impose a heavy burden on families and society. Livzon Group, Joincare’s holding subsidiary, has been activelydeploying in the field of mental illnesses for many years and has launched multiple marketed and pipeline products targeting mental diseases.In November 2024, Livzon's Lurasidone Hydrochloride Tablets were approved for marketing. Lurasidone is a new-type atypical antipsychoticdrug that has been approved in China for the treatment of schizophrenia. It has relatively weak extrapyramidal reactions, is less likely to causeadverse reactions such as weight gain, hyperlipidemia, and hyperprolactinemia, and has good tolerability. In addition, in July 2024, Livzon alsointroduced the innovative drug NS-041 intended for the treatment of epilepsy and depression. Currently, this project has completed Phase Iclinical trial and is preparing for Phase II clinical trial. Moreover, since patients with mental illnesses generally have poor medication compliance,long-acting formulations can improve long-term treatment compliance, enhance patient functionality, and reduce the risk of recurrence. Livzonhas deployed multiple complex long-acting formulations in the field of mental and neurological disorders. Several of these products are in thereview process for marketing approval or the late stage of clinical trials and are expected to be launched in the next two years.
2024 Sustainability Report 07 Access to Healthcare
7.1.2 Explore the Application of AI Technology
Joincare is committed to deeply exploring the application potential of AI technology. By using cutting-edge methods integrating AI new qualitytechnology and molecular science, the vertical AI tools have signicantly improved the R&D e?ciency of key links such as molecular modellingfor drug discovery, drug safety and effectiveness prediction, pharmaceutical process development, drug clinical research, as well as datamanagement and analysis, and reduced research risks. Drug R&D is usually a long-term, costly and high-risk process. The use of AI is expectedto effectively reduce R&D costs and cycles, and bring better drugs to patients faster. In addition, we integrate patients’ drug costs as a keyconsideration at the beginning of process development, laying the foundation for new products to benet more patients.We have applied AI tools throughout the process of synthetic biology R&D, including project initiation research, data analysis, and experimentalverification, significantly improving efficiency and quality. During the research phase of the project, we use AI tools to efficiently collect,accurately screen, and intelligently read and summarise a large amount of data, saving significant time for subsequent analysis and validation.In the structural prediction phase, AI tools enable short-term, low-cost prediction of complex protein structures. With AI tools and the toolsfor structure comparison based on deep learning, we can quickly target candidates in the protein structure database with AI prediction, greatlyreducing trial and error costs, improving R&D success rate, and e?ectively shortening the project cycle. In the future, the Group will continue toexplore AI technology and enhance R&D and innovation ability to drive the pharmaceutical industry’s high-quality development.
Case
Joincare’s research on application of AIDD for drug discovery in theeld of COPD
In 2024, the Group conducted a research on the application of AI-powered drug discovery (AIDD) for drug discovery in the eldof COPD. The results show that AIDD has certain advantages in the construction of candidate compound libraries through skeletalediting. AIDD skeletal editing tools significantly improve the efficiency and success rate of drug discovery through innovativemolecular editing technologies, and the resulting molecules are more diverse and novel than those by articial designs, providingstrong support for new drug R&D.
7.1.3 External Cooperation and Recognition
While strengthening independent innovation, the Group makes continuous efforts in cooperative development and license-in of products incore elds. By leveraging global superior resources and cutting-edge technologies, we enhanced the Group's commercialization and integrationcapabilities. This year, we have made phased progress in business development, introducing a number of innovative drugs and continuouslyexpanding indications such as those related to the respiratory system and pain relief.
Case
Joincare collaborates with Bayer to develop a FIC drug to ll thetreatment gaps in ChinaIn March 2024, Joincare signed an exclusive license agreement for the development, commercialisation and production ofa small molecule inhibitor in China with Bayer AG, a German company. This small molecule compound, an oral COPDdrug that effectively prevents the production of inflammatory mediators in COPD by inhibiting the activity of prolylendopeptidase (PREP), is a highly innovative FIC drug. In December 2024, Joincare successfully obtained the approvalfor clinical trial of the drug. In January 2025, the drug o?cially entered the phase of “Phase I Bridging Study on HealthySubjects”, marking a signicant step from R&D to clinical transformation.Based on previous studies, this PREP-targeted oral COPD drug has completed Phase I clinical trial in Europe, whichshowed good safety and tolerance and provided important support for subsequent trials. Meanwhile, preclinical dataindicate that the drug has no less potential for e?cacy than the high-side-e?ect oral COPD drugs currently on the marketoverseas but not in China, while showing significantly better safety than that of the latter. If successfully developed andlaunched, the new drug will become the first PREP inhibitor going to market in the world and the first approved oralCOPD drug in China. This drug is intended to meet the unmet critical needs by providing new treatment options for relateddiseases. It is expected to fill the treatment gap in the domestic market and provide patients with more efficient and safetreatment options. The launch of the drug will also signicantly improve the treatment e?ect on associated diseases, thusimproving the life quality of patients.
Case
Livzon Pharma and NeuShen Therapeutics cooperate in developing aBIC drug for mental illnessIn July 2024, Livzon Pharmaceutical Factory, a wholly-controlled subsidiary of Joincare’s holding subsidiary LivzonGroup, entered into an exclusive license agreement for NS-041 for Greater China with NeuShen Therapeutics (Shanghai)Co., Ltd. (“NeuShen Therapeutics”). The two parties will work closely together on this basis to accelerate the marketingapplication for NS-041.NS-041 is a highly selective KCNQ2/3 activator targeted for the treatment of neuropsychiatric diseases such as epilepsyand depression. NS-041 shows good and differentiated preclinical efficacy and safety based on its data, with potential tobecome a BIC drug. In November 2024, the drug successfully completed a randomised, double-blind, placebo-controlled,Phase I clinical research in China and was about to enter Phase II clinical trial to explore its safety and e?cacy for patientswith diseases such as focal epilepsy.The potassium channel KCNQ2/3 is considered to be one of the key targets for the development of next-generationantiepilepsy drugs, and its novel mechanism of action is expected to fill the gap in current therapies. The potentialindications for this target can also extend to a variety of emotional disorders to compensate for the unmet clinical needswith existing drugs, such as slow onset of action and insufficient efficacy. The drug candidates of the same target inthe global market are currently in the clinical research phase and have obtained positive data on epilepsy and severedepression.
2024 Sustainability Report 07 Access to Healthcare
In 2024, Joincare and its subsidiaries gained many external honours and recognition. The Group continuously won the titles of “Top100 Enterprises in China’s Pharmaceutical Industry”, “China’s Top 500 Manufacturing Private Enterprises”, “Top 100 ManufacturingPrivate Enterprises in Guangdong Province”, and “Top 100 Private Enterprises in Guangdong Province”. In addition, as the world’srst inhalation formulation for the treatment of bronchiectasis and the China’s rst inhaled antibiotic,健可妥?, a modied new drugdeveloped independently by Joincare, was invited to represent the innovative drugs of Guangdong Province to participate in the “2024China Brand Day” and the “Exhibition of Achievements in the Integrated Development of Industry and Science and Technology” inGuangdong Province, showcasing the Group’s remarkable achievements in the R&D of inhalation formulations.
7.2 Paying Attention to Rare Diseases Treatment
Rare diseases, also known as “orphan diseases”, are featured by unknown causes and extremely low incidence rates. High treatmentcosts for rare diseases result from their low market demand, di?culties in R&D and lack of experience in clinical medication, and eventhere is no medicine for some rare diseases. Under the guidance of relevant policies such as the “Healthy China 2030” Planning Outlineand the Guidelines for Diagnosis and Treatment of Rare Diseases, we, based on our own scientic platform and capabilities, undertakecorporate social responsibility actively by continuously investing in research on rare diseases, and focusing on improving the currentsituation of diagnosis and treatment of rare diseases, thus making contributions to building a Healthy China.Idiopathic Pulmonary Fibrosis
Idiopathic Pulmonary Fibrosis (“IPF”) is a cryptogenic, chronic, progressive, and interstitial pneumonia. This disease usually affectsmiddle-aged and aged people and has cardinal symptoms, including progressively increased dyspnea with restrictive ventilationdysfunction and ventilation dysfunction. Besides, it is featured by rapid progress, poor prognosis and no proven effective treatmentto date. It’s proved that traditional hormone therapy or anticoagulant therapy is unable to alleviate the disease progression of IPF, andit has strong side effects or the risk of aggravating complications. Therefore, it is not recommended for the treatment of IPF. Due tothe limitations of existing drugs, Joincare developed the modified new drug XYP-001, which is a new mechanism/target drug in IPFindication development area. If it is launched, it will be a new and more secure drug alternative for IPF patients.
Case
Joincare introduces a new small-molecule glucocorticoid drug
The lives of a large number of patients in China are affected by respiratory inflammatory diseases. And glucocorticoids,as endogenous anti-inflammatory small molecules, can act on glucocorticoid receptors (GR), inhibit the expression ofinflammatory factors by regulating the transcription of genes related to inflammation, and inhibit the proliferation ofimmune cells. In October 2024, Joincare introduced and announced the launch of a new small-molecule glucocorticoiddrug. Targeting respiratory diseases such as COPD, bronchial asthma, and rhinitis, the drug can activate the activity ofspecific receptors, and effectively improve efficacy and reduce toxic side-reactions. It is expected to be a new therapyoption for patients with COPD, bronchial asthma, and rhinitis. Data shows that this drug has shown more than three timesthe efficacy of the existing clinically used glucocorticoids in mice OVA asthma models, and has the potential to becomea Best-in-Class (BIC) drug. It marks the important progress made by Chinese enterprises in the global R&D of new-generation glucocorticoids.
Malignant HyperthermiaMalignant Hyperthermia (“MH”), a rare clinical hereditary disease that can cause perioperative death due to conventional anaesthesia, hasan extremely low incidence rate and an extremely high mortality rate. Dantrolene Sodium for Injection is the only specific medicine forthe treatment of the disease. Due to the high challenge in R&D and low-profit margin, no enterprise in China had been engaged in R&Dand production of the drug for a long time. Joincare’s holding subsidiary Livzon Group began to plan the R&D of the medicine in the earlydays. After over a decade of arduous exploration, it obtained the medicine registration certificate in October 2020, and thus became the firstenterprise in China to successfully produce generic Dantrolene Sodium for Injection, bringing good news to the vast number of MH patients andanaesthetists in China. By the end of the reporting period, a total of 121 hospitals across China have included Livzon Group's Dantrolene Sodiumfor Injection in their drug reserves, covering approximately 53% of provincial-level administrative regions.Systemic juvenile idiopathic arthritisSystemic juvenile idiopathic arthritis (“sJIA”) is a rare chronic systemic disease that mainly featured by arthralgia lasting 6 weeks or more andaccompanied by damage to other tissues and organs. At present, the incidence rate in China is about 0.01%. Tocilizumab Injection (“安维泰?”),a Recombinant Humanised Monoclonal Antibody targeting Interleukin-6 Receptor (IL-6R) developed by LivzonBio, a subsidiary of Joincare,was approved for additional indications in sJIA and cytokine release syndrome (CRS) in May 2023. Tocilizumab Injection is the only biologicsapproved for sJIA indications in China, and also the drug for the treatment of sJIA active systemic symptoms or active sJIA with failed rst-linetreatment, as recommended by domestic and overseas denitive guides. Characterised by fast onset and sustained e?cacy, it can rapidly improvethe disease activity index of child-patients, timely control the conditions, help them catch up on growth and reduce damage to the joint structure,providing a new targeted option for the treatment of child-patients with sJIA.
7.3 Improving Product Availability
To improve our product availability and make more safe and effective products available to global patients, Joincare expands the productionand marketing of vaccines, patent medicines, generics, APIs, and IVD (In-Vitro Diagnostics) reagents and devices overseas mainly via directoperation and authorising local distributors. So far, our products have been approved for registration in major pharmaceutical markets andemerging markets in multiple countries and areas across Asia, Europe, North America and Africa.
In 2024, our revenues generated fromoverseas businesses reached RMB
2,641.26
million.
Joincare’s Main Business Revenue Overseas and Proportion of Its Total Revenues in2020-2024Main business revenue overseas(RMB in 1 millon)
19.79%
2020
16.17%
2021
16.68%
2022
15.52%
2023
16.91%
20242,660.47 2,571.58 2,841.96 2,583.65 2,641.26
Ratio of overseas businessrevenue to total revenue (%)
2024 Sustainability Report 07 Access to Healthcare
Advancing Global Healthcare StrategyInternationalisation is the long-term strategy of Joincare’s development. The Group practices the global layout strategy in multiple dimensionssuch as license-in of products, license-out of technologies and IPs, and overseas capital market exchanges. Business expansion plans for overseasmarkets including low- and middle-income countries also have been formulated to enhance the global presence. In the process of license-in, weactively seek overseas high-quality pharmaceutical targets and pipeline products to enrich the Group’s product pipeline reserves in respiratory,digestive tract, mental, assisted reproduction and other advantageous treatment fields. The products successfully licensed in from overseasmarkets include Pixavir Marboxil, a new influenza drug, PREP inhibitor, an oral COPD drug, potassium-competitive acid blocker (P-CAB),an innovative drug in the field of digestive tract, and others. Meanwhile, we are committed to promoting the technology licensing of high-endcomplex preparations in emerging markets, so that more patients in low- and middle-income countries can access high-quality drugs.While consolidating the existing market, the Group actively explores the opportunities for cooperation with large multinational corporations(MNCs), and quickly reaches overseas markets with the help of world-leading partners. We also promote international cooperation and externallicensing and authorisation of innovative products and pipelines, and we conduct discussions on cooperation with multiple parties around theworld. Among them, we are discussing the license-out of the modied new drug Tobramycin Inhalation Solution with customers in European andSoutheast Asia.We pay close attention to the policies and opportunities for innovative development in the capital market, and actively use the capital market tosupport our strategic development and business layout. In 2024, we signed a USD 100 million loan agreement with the International FinanceCorporation (IFC), a member of the World Bank Group. We continue to enhance the building of overseas business development teams andpromote overseas transactions. We carry out on-site exchanges with investors to elaborate on the Group’s innovation strategy, international layoutand key products to overseas institutional investors. These e?orts have further boosted the Group’s international presence, laying a foundation forthe subsequent development of overseas markets and channels.Accelerating Overseas Business Expansion
We proceed with the work of admittance, product registration, and promotion for products such as inhalation formulations, assisted reproduction,gastroenterology, and anti-infection overseas. This year, many of the Group's inhalation formulations were produced in developing countries suchas Malaysia and the Philippines, and started registration application in the Netherlands, Germany, Italy and other EU countries. Our inhalationformulations have quality and technical advantages in the Philippines and Malaysia, and are expected to benet 0.5% to 3% of local patients withCOPD, ensuring drug quality and supply stability. In January 2024, the Compound Ipratropium Bromide Solution for Inhalation was approvedfor drug registration and granted the registration approval in the Philippines. In February 2024, the Levosalbutamol Hydrochloride NebuliserSolution was granted the registration approval in Macao SAR.By the end of the reporting period, we had also achieved many advancements in fields other than inhalation formulations. This includesmarketing approval obtained from the US FDA for Cetrorelix Acetate Powder for Injection, registration certificate obtained from the Ministryof Health of the Russian Federation for Anti-viral Granules, a flagship product in the TCM sector, and cooperative projects planned forSemaglutide and Tocilizumab Injection in Latin America, the Middle East, Asia, Africa and Latin America. Other highlights include registrationcerticate obtained for Meropenem for Injection in Honduras and Bolivia, and registration applications submitted in Peru, Venezuela, Namibia,Turkmenistan, Cameroon and other countries which are pending approval. In terms of international certification, we vigorously promote theoverseas medium- and high-end GMP certication - PIC/S GMP certication for our products, and have completed the on-site inspection of GMPcertication for member states under the Pharmaceutical Inspection Cooperation Scheme (PIC/S), opening up a convenient channel for productsto enter the global market.
Case
Joincare has accelerated the business expansion for inhalationformulations in Southeast Asia, Europe and the United StatesIn January 2024, Joincare obtained the registration approval for Compound Ipratropium Bromide Solution for Inhalation in thePhilippines, which set a good beginning for other products to enter the global market. The Philippine FDA plans to conductGMP certification on-site inspection on the Company's inhalation formulation workshops. In the same year, Malaysia officiallyscheduled for PIC/S GMP certication on-site inspection for Compound Ipratropium Bromide Solution for Inhalation. Passing thehigh-standard PIC/S inspection will push the Group's production quality management to a new level.In 2024, to further explore the global market, we fully completed stability studies for several inhaled liquid preparations to testtheir stability in overseas climate zones. The preparations involved include the Tobramycin Inhalation Solution, the IpratropiumBromide Solution for Inhalation, the Budesonide Suspension for Inhalation and the Salmeterol Xinafoate and FluticasonePropionate Powder for Inhalation. The studies were steadily advanced according to di?erent standards and guidelines in overseascountries. In 2024, we set up subsidiaries in the Philippines and the Netherlands to secure business development in key regionalmarkets. The Philippine subsidiary obtained the drug business license and submitted GMP on-site inspection applicationsfor multiple inhalation preparation workshops to the Philippine FDA. The Dutch subsidiary completed the quality systemconstruction, submitted the application for production permit and import permit to the Medicines Evaluation Board (MEB) of theNetherlands, and obtained MEB-granted EU registration declaration schedule for target types.
Case
Anti-virus Granules, a TCM preparation of Livzon Group, obtained theregistration certicate in RussiaLivzon Group has accelerated the expansion of its overseas layout for traditional Chinese medicine (TCM) preparations. InApril 2024, it successfully obtained the EAC Certicate of State Registration issued by the Russian authorities for the Anti-viralGranules in the countries of the Eurasian Economic Union. The Anti-viral Granules are mainly used to clear heat and dampness,cool the blood and detoxify. They are indicated for wind-heat cold, upper respiratory tract infections, and inuenza. In the future,this product can freely circulate and be sold within the customs territory of the five member countries of the Eurasian EconomicUnion (Russia, Kazakhstan, Belarus, Kyrgyzstan, and Armenia).
Case
Livzon Group's Tocilizumab Injection has been launched in Brazil togain a market share in the Latin American marketBrazil is a major emerging pharma market in the world, taking a more than half share in the Latin American pharma market, with aleading pharma regulatory environment. Joincare’s holding subsidiary Livzon Group partners with a world-leading pharmaceuticalMNC to register Tocilizumab Injection in Brazil. When launched upon approval, the product will benefit patients in Brazil,improving the accessibility of the biopharmaceutical in Brazil, laying the foundation for the promotion and popularisation ofbiopharmaceutical products in Latin America, and enabling more patients to benet from advanced biopharmaceutical technology.
2024 Sustainability Report 07 Access to Healthcare
In terms of APIs and intermediates, we accelerate the development of overseas API business, and step up e?orts to develop the market for high-end antibiotic APIs. For our key product, 7-ACA, we actively expand the domestic and overseas markets to maintain its market share advantage.Meropenem Trihydrate and Imipenem-Cilastatin Sodium have been successfully registered in Russia. E?orts are continued to tackle the technicalbottlenecks in the production of the starting material demeclocycline hydrochloride (DH) to meet the di?erentiated needs of customers around theworld. In 2024, the product was registered globally, breaking the market pattern dominated by high-price foreign suppliers, gaining about a 60%market share, delivering a?ordable quality APIs to users around the world.To promote the industry chain integration, the Group leverages the strategic advantage of “APIs-preparations vertical integration” to globaliseand integrate the core supply chain while expanding the business map. This year, the Group entered into strategic cooperation with PT KALBEFARMA, TBK., a large pharmaceutical enterprise in Southeast Asia, to build an API factory in Indonesia. The future products are expected tobe sold to Europe and the United States, while meeting the market demands in Southeast Asia, to further improve the global accessibility of theGroup's high-quality products.
7.4 Improving Product A?ordability
The cost of medicines accounts for the majority of the medication-related financial burden. Joincare is committed to alleviating the financialburden on patients by adopting inter-country and intra-country tiered pricing based on a?ordability, aiming to provide high-quality medicines tomore patients at a?ordable prices.
Domestic MarketRespond to the National Centralized Drug ProcurementThe Group has actively responded to the national centralized procurement policy and deeply participated in it, demonstrating a high sense ofsocial responsibility and forward-looking strategic vision. We not only help the country achieve the goals of medical cost control and improvingthe e?ciency of medical insurance fund utilization, but also bring tangible benets to a large number of patients. Patients can obtain high-qualitydrugs at a lower cost, which greatly reduces their economic burden and improves the accessibility of drugs.Joincare has always regarded fullling the corporate mission as the core driving force for its development. Against the backdrop of the nationalcentralized procurement policy, we deeply understand that this is not only an opportunity to shoulder social responsibilities but also a newopportunity for the enterprise's own development. Since the implementation of the centralized procurement policy, the Group, relying on itsstrong R&D capabilities and production capacity, has included many of its products in the scope of centralized procurement applications.Through centralized procurement, we have further expanded our market coverage and served more patients. While promoting our ownsustainable development, we have also injected new vitality into the medical and health undertakings and continuously contributed to theachievement of national goals.
Products Selected in the National Centralized Drug Procurement
ProductBatch No. of the procurementBudesonide Suspension for InhalationThe 5th BatchCompound Ipratropium Bromide Solution for InhalationThe 5th BatchIpratropium Bromide Solution for InhalationThe 5th Batch
ProductBatch No. of the procurementTinidazole TabletsThe 5th BatchMeropenem for InjectionThe 7th BatchTerbutaline Sulfate Solution for Nebulization InhalationThe 7th BatchVoriconazole for InjectionThe 8th BatchSodium Cefodizime for InjectionThe 8th BatchLevalbuterol Hydrochloride Solution for NebulizationInhalation
The 9th Batch
Admission to the National Reimbursement Drug ListThe Group actively responds to admission to the medical insurance list. In 2024, in the new version of the National Medicine List for BasicMedical Insurance, Work Injury Insurance and Maternity Insurance (“National Reimbursement Drug List”) published by the National HealthcareSecurity Administration, Joincare had 215 products included, among which 94 were Class A and 121 were Class B. For the products includedin the National Reimbursement Drug List, we strictly follow the regulations and publicly list the medical insurance payment standards on themedical price inquiry platforms of local Healthcare Security Administration to ensure that the drug pricing is reasonable and transparent.
Key Products in National Reimbursement Drug ListMedical Insurance Payment StandardTobramycin Inhalation Solution (“健可妥?”): As a modied innovative medicine developedindependently by Joincare,健可妥? is the only approved inhalation formulation in the worldfor the treatment of bronchiectasis accompanied with pseudomonas aeruginosa infection. It wasapproved for marketing in October 2022, breaking the dilemma that no atomised antibiotics areavailable for patients with bronchiectasis in China. As a key item under the National Key NewDrug Creation Programme,健可妥? o?ers the benets of low-dose local administration, highconcentration, non-ototoxicity and non-nephrotoxicity, and low medicine resistance. It is saferfor both childhood and elderly patients and represents a signicant breakthrough in the eld ofrespiratory system diseases.
RMB 253.60(5ml:300mg/piece)
Ilaprazole Sodium for Injection (“壹丽安?”):
壹丽安?, a patented new drug of Joincare’sholding subsidiary Livzon Group, was incorporated into the NRDL in 2019. In 2023,壹丽安?was once again included in the NRDL as a drug used for patients with peptic ulcer, and it alsoreceived approval for a new indication "prevention of severe stress-induced ulcer bleeding". Themedical insurance payment for this drug was reduced from RMB 71/piece to RMB 63/piece,which expands the application range of the product, meets clinical needs, and further alleviatesthe economic burden on patients.
RMB 63.00
(10mg/piece)
Triptorelin Acetate Microspheres for Injection (“维宝宁?”): It is a modied new drug developedby Livzon Microsphere, a subsidiary of Joincare and was approved for marketing in May 2023.It is indicated for the treatment of locally advanced or metastatic prostate cancer. Compared withthe Triptorelin Acetate Injection,维宝宁? o?ers signicant advantages such as a longer durationof action and fewer doses required. The medical insurance payment is RMB 1,000 per bottle,representing a price reduction of approximately 20% compared to the imported formulationsalready on the market.
RMB 1,000.00(3.75mg/bottle)
2024 Sustainability Report 07 Access to Healthcare
Overseas MarketWhen entering overseas markets, Joincare comprehensively considers the local economy, healthcare level, and price benchmarking to o?erequitable pricing in line with the current regional development, avoiding an increase in the nancial burden of patients. After an adequateassessment of local per capita income and analysis of local patients' a?ordability, di?erential and tiered pricing strategies are implementedfor different markets. Joincare also positively goes for the bidding of local governments during product promotion in developingcountries overseas so that affordable medicines and services would be offered locally. By the end of the reporting period, the Group andits subsidiaries had adopted equitable pricing policies for 28 products in South Asia, Southeast Asia, Eastern Europe, Central Asia, SouthAmerica and Africa to match the local income level.Taking into account the affordability, Joincare’s holding subsidiary Livzon Group also adopts equitable pricing policies, in a bid to promotepricing transparency in both developed and emerging markets. For formulations, Livzon Group strictly adheres to the local government'spharmaceutical pricing policies in developing countries. The generic drugs are usually priced at 60-70% of the price of the original drugs. ForAPIs, Livzon Group reduces intermediary channels by selling APIs directly to the end formulation factories. This approach enables accurateknowledge of the purchasing prices of end customers, thereby enhancing pricing transparency and reducing local pharmaceutical supply costs.Table: Livzon Group’s pricing policies and implementationBusinessPricing policiesPricing
APIs
? Continuously reduce the production costs of APIs.Sell APIs and intermediates in emerging markets/developing countries at prices lower than those indeveloped countries to reduce the medication costs forthe target market countries.? Adhere to the principle of fair pricing for bothdomestic and overseas markets. For domestic strategicpartners, by signing an annual supply agreement,certain price discounts will be given according to thepurchase quantity.
? Carry out commercial cooperation with about morethan 50 customers in India, supplying 20 kinds of APIsand intermediates. Among them, the selling price ofintermediates is approximately 5%-10% lower thanthat in developed countries, and the selling price ofAPIs is about 20%-30% lower than that in developedcountries.? Some high-end antibiotic products have a largedemand in overseas markets. The average sellingprices in regions such as South America, SoutheastAsia, and Africa are approximately 15%-30% lowerthan those in developed countries.
Formulations
? Formulate reasonable prices that are in line with thelocal development level, and provide formulated drugsin the markets of Asia, Africa, and Latin America,which are cheaper than the on-patent formulations andcan achieve similar therapeutic e?ects.
? For regions such as South Asia, Southeast Asia,Eastern Europe, Central Asia, South America, andAfrica, price policies for formulated drugs that arecheaper than the on-patent formulations and canachieve similar therapeutic e?ects have been providedor formulated.Reagents
? Conduct thorough research on the terminal sellingprices of products, and formulate more preferentialproduct prices in less developed countries and low-income countries.
? Actively inquire about the prices of multipletransportation companies, seek freight services withthe best quotations, and provide customers withtransportation methods that are low in cost and high incost-e?ectiveness.
7.5 Improving Healthcare
In recent years, the global population has been increasing, leading to a growing demand for medical services. The issues of uneven distributionof medical resources and imbalanced development of medical technology have become increasingly prominent. As a result, many patientsin developing countries still lack access to timely, effective, and affordable healthcare. Joincare adheres to the corporate mission of "For thehealth, For the future," and fully leverages our own strengths to continuously popularise knowledge of chronic diseases and eliminate theindiscrimination use of antibiotics. We also actively involve in capacity advancement initiatives in developing countries and contribute to globalhealth development.
7.5.1 Popularising Knowledge of Chronic Disease
Respiratory disease is China's third most common chronic disease after cardiovascular disease and diabetes. Recently, the incidence of asthma,COPD and other respiratory diseases in China have kept rising. According to the statistics, China has nearly 45.7 million adult and 15 millionchildhood patients with asthma and 100 million patients with COPD. However, the awareness rate of COPD is way below the target set by theHealthy China initiative 2019-2030. In order to strengthen the prevention and treatment system for chronic respiratory diseases, the NationalHealth Commission of the PRC o?cially included COPD in the basic public health service program in 2024. This marks that the prevention andtreatment of respiratory diseases in China has entered a new stage.Joincare actively responds to the national strategy. We establish an "online + o?ine" science popularization network, including organising onlinelive-broadcasting via new media, publishing academic papers, supporting academic research, and holding and participating in o?ine academicpromotion activities. With various measures, Joincare endeavours to educate the public about chronic respiratory diseases such as asthma andCOPD, and encourages people potentially su?ering from these diseases to take regular pulmonary function tests, e?ectively contributing to theprevention and treatment goals of respiratory diseases set by the "Healthy China 2030" initiative.
2024 Sustainability Report 07 Access to Healthcare
Case
“Respiratory Experts’ Views” public welfare activities series
Joincare focuses on respiratory diseases. We build a popularscience new media platform matrix called “RespiratoryExperts’ Views”. Through new media channels such asWeChat official account, Douyin, and Weibo, we promoteknowledge on chronic respiratory disease and give treatmentsupport.
? During the “World Asthma Day” activities in 2024, the“Respiratory Experts’ Views” platform joined hands with 18core hospitals across the country to live stream on asthmain 13 sessions. Professor Chen Yuzhi from the Children'sHospital affiliated to the Capital Institute of Pediatricsworked with 27 first-line experts across the countryanswered questions for the public from the perspectivesof asthma medication, asthma management, and asthmamisunderstandings, thereby strengthening asthma education.? During the “World Bronchiectasis Day” activities in 2024,
the “Respiratory Experts' Views” platform collaboratedwith the China Bronchiectasis Registry and ResearchCollaboration (BE-China) to launch a series of publicwelfare and educational campaigns themed of “UnderstandBronchiectasis, Enjoy A Healthy and Happy Life”.Meanwhile, the special bronchiectasis-themed live streamingmonth activity was launched. Professor Guan Weijiefrom the First Affiliated Hospital of Guangzhou MedicalUniversity led 57 experts from 32 core and tertiary hospitalsacross the country to carry out knowledge popularisationon diseases, providing detailed explanations on thepathogenesis, diagnosis methods and the latest treatmentprogress of bronchiectasis.? During the “World COPD Day” activities in 2024, the“Respiratory Experts’ Views” platform live streamed onCOPD in 35 sessions with the theme of “Understanding YourLung Function”. Meanwhile, Professor Wang Wei from theRespiratory Doctors Association of the Chinese MedicalDoctor Association launched a COPD live-streaming monthactivity. A total of 70 front-line experts from 62 tertiaryhospitals participated in the live streaming, calling for publicattention to lung health.By the end of the reporting period, the “Respiratory Experts’Views” platform had assembled over 5,000 respiratoryexperts, hosted over 500 educational live broadcasts onrespiratory diseases, involving over 1,000 experts and over30 million views, and attracted over 5 million followers.In 2024, a total of 334 educational live broadcasts weredelivered.
7.5.2 Addressing Antibiotic Resistance
The Group acknowledges that antibiotic resistance has become a global public health risk theme, threatening human health. We take measures toaddress antibiotic resistance mainly from the following three aspects:
Moreover, Joincare takes an active part in a number of academic conferences and has in-depth exchanges with clinical experts in infection,respiratory, blood, ICU, organ transplantation, skin, obstetrics, and gynaecology and scholars engaged in basic research of microbiology. Throughthese e?orts, we aim to promote development and innovation in the eld of medicine to ensure that all people can live a healthy life.
Responsible productionDuring the production of antibiotics, we strictly control the discharge of wastewater, waste gas and waste residue to preventantibiotics from entering the natural environment. We also rene the production process to improve the production e?ciency ofantibiotics and reduce waste generation.
Responsible useIn strict accordance with the Management Policy for Clinical Use of Antimicrobial Medicines, Joincare strictly regulates theclinical use of antibiotics and strengthens the management of its anti-infection product portfolio. Based on the classication ofantibiotics for clinical use, we actively cooperate with medical institutions to handle antibiotic abuse, enforce the principles of“non-limited use”, “limited use”, and “special use”, and promote the management of physicians’ prescription rights and controlof medicine-resistance bacteria. Training lessons and lectures on optimising medicine-resistance bacteria treatment schemes aregiven to improve the clinical e?cacy of antibiotics and e?ectively prevent misuse.
Responsible R&DWe continue to carry out R&D to limit or prevent antibiotic resistance, explore the mechanism of resistance throughcooperation with third parties, and study new ways of drug administration by taking the advantage of fewer dosage of inhalationformulations to ensure reasonable drug administration. Meanwhile, we are conducting post-marketing studies on TobramycinInhalation Solution, which shows a low risk of resistance based on its resistance indicators in Phase III clinical trial.
2024 Sustainability Report 07 Access to Healthcare
Case
Joincare’s novel beta-lactamase inhibitor for injection enables upgradedinfection treatmentIn 2024, Joincare focused its efforts on the development of China’s first and world’s only new beta-lactamase inhibitor forinjection for joint administration with Meropenem, which is expected to provide a revolutionary treatment option for the globalresponse to antibiotic resistance. Meropenem, a representative of carbapenem antibiotics, has been described as “one of the lastlines of defense of antibiotics” for its high-efficiency broad-spectrum antimicrobial properties. However, bacteria are resistantto Meropenem by mechanisms such as producing beta-lactamases, thus impeding the efficacy. The new beta-lactamase inhibitorfor injection developed by Joincare can accurately inhibit bacterial resistance enzymes, and effectively restore the efficacy ofantibiotics. It acts locally when injected, signicantly reducing the risk of systemic side e?ects (e.g., gastrointestinal discomfort,and allergic reactions) and providing patients with safer and more e?cient treatment options.
Case
Livzon Group introduced the innovative antifungal drug SG1001In recent years, the global concern of antifungal resistance has become increasingly prominent. In 2024, Livzon Group introducedthe innovative Class 1 antifungal drug SG1001, and was exclusively licensed to conduct R&D, production and commercialisationof all the possible formulations against all indications in antifungal treatment and other fields in Greater China. SG1001 is aselective inhibitor of fungal dihydroorotate dehydrogenase (DHODH), with a mechanism of action that is distinct from commonantifungal agents such as polyene, azole and echinocandin, showing signicant antibacterial activity against aspergillus (includingaspergillus fumigatus), scedosporium spp., penicillium, trichoderma, and talaromyces marneffei. By the end of the reportingperiod, the project had started clinical trials, which is expected to provide new solutions to address infections caused by drug-resistant fungi.
Case
Study progress on drug resistance of Gram-Negative Bacteria (GNB)
The drug resistance of GNB still poses a tough challenge. According to the study, all top five clinical strain infections in Chinaare GNB infections. Polymyxin, one of the most important drugs in the treatment of multidrug-resistant (MDR) GNB infections,is effective against various GNB including Escherichia coli thanks to its low resistance rate and strong antibacterial activity. Itis called the last line of defence for MDR GNB infections, against which antibiotics such as β-lactams, aminoglycosides andquinolones are ineffective. The Livzon Group is developing polymyxin products. By the end of the reporting period, LivzonGroup’s API polymyxin E sodium methanesulfonate had obtained the notice of approval for APIs in China and the European CEPand passed the US FDA review.
7.5.3 Involvement in Capacity Advancement Initiatives
Joincare is deeply committed to the development of healthcare in low- and middile-income countries. In line with our international strategies, we are actively involvedin capacity advancement initiatives for healthcare in low- and middile-income countries and work closely with local partners to collectively improving the quality andcapacity of health services in those regions.Training local healthcare workersWhile expanding our formulation business in developing countries, the Group actively provides training for local healthcare workers to improvelocal medical service standards. While we exported Meropenem for Injection to developing countries such as the Philippines, Ukraine, Vietnam,Pakistan, Peru, and Chile, we provided registration and promotion training for local contacts and assisted our partners in conducting productusage and related training for local healthcare workers. Also, Joincare’s holding subsidiary Livzon Group is actively engaged in overseasacademic promotion and training activities. Livzon Group provides detailed product usage instructions and shares clinical experience withhealthcare workers in developing countries, so as to ensure the safe and e?ective use of our products for local patients.
Case
Livzon Group provides academic training for healthcare workers inIndonesiaIn 2024, Livzon Group and local partners jointly organised four academic training and exchanges in Indonesia. In August 2024,Livzon Group and its partners participated in the 9th fertility and endocrinology congress in Semarang, Indonesia, which attractedaround 500 Indonesian reproductive experts. During the event, both sides invited well-known Chinese reproductive experts tointroduce recombinant human chorionic gonadotropin products and share their clinical experience. This event received positivefeedback from Indonesian reproductive experts, and e?ectively promoted the awareness and application level of this drug amonglocal medical sta?.
Case
Livzon Group provides academic training for healthcare workers inUzbekistan
Livzon Group actively helps Uzbek medical staff to improve their professional skills in the field of assisted reproduction. InMay 2024, Livzon Group organised Chinese experts with rich clinical experience to participate in the Uzbekistan ReproductiveMedicine Conference. There, they shared the experience of assisted reproductive technology and the utilisation of relatedmedications in China. The experts shared intricate cases of using assisted reproductive products in China, answered questionsfrom local doctors, and received positive feedback from Uzbek experts. In September of the same year, Livzon Group, togetherwith its partners, invited 9 Uzbek reproductive experts to visit 2 leading hospitals of assisted reproductive technology in Chinaand exchange ideas with the hospitals' doctors. The Uzbek experts organised a sharing meeting after returning home, providingin-depth training for 70 assisted reproductive doctors, which strongly promoted the improvement of local assisted reproductivetechnology.
2024 Sustainability Report 07 Access to Healthcare
Assistance to local manufacturers to improve manufacturing qualityAs an APIs supplier, Joincare, together with its holding subsidiary Livzon Pharmaceutical Group, shares its research results with less developedcountries and regions overseas and proceeds technology transfer. We improve the capability of local manufacturers to ensure that they canachieve international drug manufacturing quality standards. By building API plants in Indonesia and introducing advanced production equipmentand processes, we encourage local manufacturers to upgrade their production processes and technology applications. High-quality API productionalso helps local pharmaceutical companies produce more competitive drugs, improve drug accessibility, and meet the medical needs of localresidents.
Case
Joincare sets up a joint venture factory in JakartaPT Livzon Pharma Indonesia is a strategic joint venture between PT KALBE FARMA, TBK. (“Kalbe”) and our subsidiaryLivzon Group. The company has been active in manufacturing operations in Indonesia since its establishment in July 2024. It iscommitted to improving Indonesia’s pharmaceutical industry through localised API manufacturing. The company strictly followsthe principle of global sustainable development. It focuses on responsible procurement and environmental management in theproduction process, and actively participates in community activities to improve healthcare services for the Indonesian people.Livzon Group’s technical expertise and Kalbe’s extensive market knowledge in Indonesia provide strong support for thedevelopment of the joint venture. In terms of production standards, PT Livzon Pharma Indonesia is established in accordancewith CMP standards and has obtained the PIC/S certification. This is a solid guarantee for the production of high-quality drugs.With the gradual realisation of localised supply, the establishment of the joint venture is expected to reduce local production costs,accelerate market response, and effectively reduce Indonesia’s dependence on imported drugs. In addition, the joint venture haspromoted the transfer of local technology and the enhancement of local research and development capabilities. The introduction ofadvanced technologies and concepts has helped to achieve the goal of improving local pharmaceutical production and propellingthe Indonesian pharmaceutical industry to new heights.
Case
Joincare subsidiary Livzon Group explores localised production overseas
South Asia is currently one of the fastest growing pharmaceutical markets. Bangladesh is leading the way and is considered to bean emerging generic drug hub in the region. Our subsidiary, Livzon Group, has established a partnership with a leading producerof reproductive products in Bangladesh. Following the memorandum of understanding on strategic cooperation and localisedproduction cooperation of biologics signed with the company in 2023, a formal cooperation agreement was inked in 2024, that ledthe commencement of localised production of Recombinant Human Choriogonadotropin alfa for Injection in Bangladesh, markingthe beginning of the strategic localised production cooperation.If all goes well, Recombinant Human Choriogonadotropin alfa for Injection will be available in Bangladesh in the future, andmore than 3 million local patients in need of assisted reproduction will have better treatment options.
Supporting local pharmacovigilancePharmacovigilance work in developing countries started relatively late and progress has been slow, leaving a number ofproblems to be solved. We have distributors in Macao and the Philippines for drugs including the Compound IpratropiumBromide Solution for Inhalation, Levosalbutamol Hydrochloride Nebuliser Solution, and Budesonide Suspension for Inhalation.To ensure the safe use of drugs in local areas, we have signed pharmacovigilance work agreements with overseas distributorsand partners, and established the communication mechanism and work process for the pharmacovigilance teams of both sides.Our Pharmacovigilance Department is responsible for processing individual safety reports from local sites, conducting dataevaluation, and reporting to domestic and foreign regulatory authorities. At the same time, through our agents, we investigate andmonitor the use of our drugs overseas, conduct business training for local sta?, receive regular adverse event reports, and help toimprove the local pharmacovigilance system for these drugs.Upon launching the product Recombinant Human Choriogonadotropin alfa for Injection in Indonesia, our subsidiary LivzonGroup took the opportunity to partner with local companies and governments to improve local pharmacovigilance. Since thelaunch of the product, Livzon Group has made great efforts to identify, evaluate, analyse and prevent adverse drug reactions orany other issues that may be related to the drug. This is to ensure the scientific and rational use of the drug, effectively preventlocal people from substandard or unqualied drugs, and protect the safety of drug use in local places.Improving local healthcare capacity
While actively expanding its global business, the Group pays close attention to the local healthcare and communicates with localmedical personnel as necessary, contributing to the improvement of regional healthcare capacity.Our subsidiary, Livzon Group, invited domestic medical experts to visit some cities in Pakistan (Islamabad, Peshawar, Karachi,Lahore, and Faisalabad) to train Pakistani medical experts and medical personnel on medical knowledge and products. Theyintroduced Chinese research achievements in the field of reproductive health to local obstetricians and gynecologists, sharedthe established experience in technology application, and demonstrated the latest scientic and technological innovations in theindustry. These efforts helped to promote new ideas and technologies in the field of reproductive health in Pakistan, improvinglocal medical expertise and drug use.
2024 Sustainability Report 07 Access to Healthcare
TalentManagement
In keeping with its core values of “putting people first”, Joincare always regards employees as a valuable asset and the drivingforce for its sustainable development. We are fully committed to protecting the rights and interests of our employees, listening totheir suggestions and fostering a diverse, respectful, and inclusive working environment. We place particular emphasis on talentmanagement, continuously introducing talents and optimising training and compensation and benets systems to attract, developand deploy talent in a scientific and rational way. Meanwhile, we take occupational health and safety very seriously and areworking hard to protect employees’ well-being, strengthen our work safety defences, and build a healthy business.
SDGs in this section
8.1 Protection of Rights and Interests of Employees
8.1.1 Employment Compliance
We comply with the Labour Law of the People’s Republic of China, the Labour Contract Law of the People’s Republic of China, the Provisionson the Prohibition of Child Labour and other laws and regulations. We have formulated the Code of Labour Employment and EthicalConduct
(the “Code of Employment”). The Code of Employment applies to all employees (including full-time, part-time and temporaryemployees) of the Group and its subsidiaries, as well as all suppliers, contractors, service providers, customers and other partners in collaborationwith the Group. It is designed for the ongoing regulation of our employment management. With zero tolerance for any form of discrimination, wehave dened procedures for reporting discrimination and harassment, as well as sanctions and corrective measures in the Code of Employment(as detailed in Articles 5, 6 and 8 of Chapter III Employment Management in the Code of Employment).Meanwhile, we keep improving HR policies and regulations such as the Human Resources Management Regulations, the Training ManagementSystem, the Attendance Management System, and the Employee Handbook. We sign contracts with employees under the principle of freewill, setting out the rights and obligations of both the Group and the employee, and we insist on employment in accordance with the law andregulations. During the year, there were no discrimination or harassment incidents at Joincare.
8.1.2 Human Rights Protection
The Group has always respected human rights and labor rights, and has developed and published on the o?cial website the Code of Employment,a company-specific and company-wide human rights policy covering the practices set out in the International Labour Organization (ILO) coreconventions and the Universal Declaration of Human Rights of the United Nations. This Code has specied such provisions on protecting humanrights as the prohibition on forced and child labour, anti-discrimination, anti-harassment, equal remuneration, freedom of association, the right tocollective bargaining , and occupational safety and health. (Please refer to “II. Recruitment and Employment” and “III. Labor Management” inthe Code of Employment).We have established a formal human rights grievance mechanism in accordance with the Employee Grievance Management System. Allemployees and relevant personnel of the Group can report potential human right risks or identied human rights issues via the hotline publishedon the official website, and we also commit to strictly protecting the personal information of the complainants. Those in violation of theprovisions on protecting human rights will be investigated immediately. We will also take the necessary actions to protect the legitimate rightsand interests of the reporter. Once veried, those who violate the Code of Employment will be punished appropriately, including but not limitedto the termination of labour contracts and business contracts. Those whose acts are suspected of constituting crimes will be transferred tojudiciary authorities for handling.To effectively implement the Group’s human rights policies, we have established a systematic human rights due diligence process, coveringhuman rights risk assessment, annual audit and reporting, and the formulation and implementation of mitigation and remedial measures. Weconduct human rights due diligence annually and submit the findings, together with mitigation and remedial measures, to the SustainableDevelopment Committee under the Board of Directors for approval and to have the committee determine the response measures for the nextyear. During the year, Joincare completed investigations into human rights management issues and implemented corrective actions based on thendings. According to the ndings of human rights due diligence, our human rights risks mainly stem from anti-discrimination, anti-harassment,and the working environment. We have taken prompt action to address identied human rights risks. For example, we provide targeted training toensure that employees’ concerns are fully acknowledged and addressed.
Total Employees14,350
3 Joincare Pharmaceutical Group Industry Co., Ltd. Code of Labor Employment and Ethical Conduct: https://en.joincare.com/news/178.html.
The Group always regards high-quality talents as the core strength for corporate development. Committed tosafeguarding the legitimate rights and interests of employees, we improve the employment management andeliminate any form of prejudice, discrimination or harassment to create a workplace with diversity and equity. Bythe end of the reporting period, Joincare has 14,350 employees in total.
2024 Sustainability Report 08 Talent Management
8.1.3 Diversity and Inclusion
We have always adhered to the core values of diversity, equality, and inclusion, fully respecting the individual differences and diversity of ouremployees. We continue to improve our diversity system, formulate and implement the Diversity, Equity, and Inclusion Policy, specifyingthat the Sustainable Development Committee of the Board is responsible for reviewing the policy, and overseeing diversity performance andprogress for target of the Group. We always adhere to the recruitment principles of fairness, impartiality and transparency. We conduct selection,assessment and promotion based on the job requirements and the capabilities of candidates. We will not treat candidates di?erently due to factorssuch as gender, age, ethnicity, race, nationality, religious belief, etc. and we eliminate all forms of discrimination and prejudice to provide equaldevelopment opportunities for every employee. Moreover, in our benefits policies, we strive to meet the special needs of different employeegroups to ensure that every employee enjoys equal treatment and benefits. Additionally, we place great emphasis on creating a diverse andinclusive cultural atmosphere. All employees are required to complete trainings related to diversity, equality, and inclusion every year, coveringtopics such as diversity, inclusiveness, bias-free behavior, and anti-discrimination. We also incorporate diversity-related content into the trainingsfor new employees to cultivate their awareness of diversity.We attach importance to the feelings and experiences of our employees in terms of diversity and inclusion, and have specically included issuesrelated to diversity and inclusion in our employee satisfaction surveys in order to keep abreast of the needs of our employees and to continuouslyadjust and optimize our diversity and inclusion policies and measures. At the same time, we firmly oppose all forms of discrimination andharassment. We have established sound mechanisms against discrimination and harassment and regularly organise relevant training sessions toenhance employees’ awareness of self-protection and rights-protection.
Case
Management diversity trainingIn October 2024, Livzon Group, a holding subsidiary of Joincare, conducted an online “Management Diversity” training for allmanagement members. The training covered the DEI concept, the impact of diverse cultures, and management diversity in corporategovernance. The training helped our management to better understand the importance of diversity in a company, to improve theirability to address the challenge of diversity and to implement the concept of diversity in their operational and management practices.
Based on business development requirements, the Group has set a quantiable diversity goal of “no less than 49% female employees by 2032”.The Group also strengthens the collection, statistics and disclosure of diversity indicators ensure the orderly progress of diversity-relatedinitiatives.
In terms of material benefits to facilitate diversity, we provide female employees with paid marriage, maternity, breastfeeding and other leavesstipulated by the national law. We also o?er exclusive medical check-up services to all female employees to enable them to detect potential healthproblems in a timely manner and take appropriate precautions and treatments. Meanwhile, we have fully-equipped lactation facilities to supportfemale employees who return to work after childbirth, and provide paid paternity leave for male employees. In addition, we apply for socialinsurance subsidies for on-the-job employment for employees with disabilities to provide them and their families with more nancial support andto eliminate their worries as much as possible. We also actively carry out diverse cultural exchange activities in combination with employees’backgrounds in terms of region, ethnicity and religion to promote mutual assistance among di?erent ethnic groups.
Female employees percentage
46.2
%
Female representation in management
37.0
%Female employees
6,632
Case
Female employee care
We regularly carry out care and support activities for female employees.Our trade union provides gifts and consolation money to all femaleemployees who get married or have children. In 2024, we extendedour care to 40 female employees, fostering a good relationship withemployees and increasing employees’ sense of happiness and belonging.
Case
Care extending activities on International Women’s Day
On the occasion of International Women’s Day in March 2024, theGroup presented all female employees with festival gift packagesincluding flowers, exquisite pastries, coffee and holiday blessings. Thisis to show respect and care for our female employees and to create asupportive work environment for women.
Case
Ethnic minority employee activities
In 2024, the Group organises ethnic minority employees to activelyparticipate in various cultural activities, such as the “Ethnic UnityCup” badminton friendship match in Shenzhen and the “All EthnicGroups Work Together as One Family to Realise the Chinese Dream”celebration in Shenzhen, the annual “Ethnic Groups Unite for a BetterFuture of Nanshan” showcase of young people's innovation andentrepreneurship achievements from various ethnic groups in NanshanDistrict, and the Literary and Artistic Performance of Shenzhen UnitedFront Work Department. These activities fully demonstrated the Group’srespect for and protection of ethnic minority cultures, and effectivelypromoted ethnic unity and cultural exchanges.
Ethnic Minority Employee Activities
Festival Gift Packages of the International Women’s Day
Female Employee Care
2024 Sustainability Report 08 Talent Management
8.1.4 Sta? Communication
The Group respects employees’ comments and suggestions, and is constantly improving its employee communication and reporting channels.This year, we collected employee comments and complaints through the HR Department’s dedicated reporting email hr.group@joincare.com.This supports all employees in promptly reporting or complaining about violations of the Code of Employment, breaches of employee rights,and other incidents causing dissatisfaction. Upon receiving employee comments or reporting emails, we archive them and conduct a preliminaryassessment of the issues. For issues requiring further investigation, we initiate an investigation process and coordinate with relevant departmentsfor resolution. During the investigation, we will maintain communication with the employees involved and keep them promptly informed of theprogress and results.To protect the rights of complainants, we have formulated and implemented the Measures for the Management of Complaining and Reporting.We maintain the confidentiality of complainants’ identities and the content of complaints and prohibit any form of retaliation. Any retaliationonce found will be dealt with seriously in accordancewith the Group's internal relevantregulations and the relevant laws and regulations. Wealso provide psychological support and legal advice to complainants to help them cope with the psychological stress arising during the complaintprocess and to protect their physical and mental health.
The information onwhistleblowers and complainantsas well as the content of reportsand complaints should be strictlycondential. The materials andrecords of reports should beincorporated into condentialdocument management. Thesettled cases should be led.
Receiving reports and complaintsand verifying with relevantpersonnel, such as whistleblowersand complainants, should beconducted in a condentialway, without the identity of thepersonnel being disclosed.
Any personal information,including identity and rewardscannot be disclosed without theexpress consent of whistleblowersand complainants.
We regularly conduct satisfaction surveys for all employees of the Group and its subsidiaries on an annual basis, which coversmultiple dimensions, including employees’ work satisfaction , the purpose of work, sense of well-being, and work-rated stresslevels. We fully respect employees’ opinions and feedback and promptly take measures for improvement, continuously enhancingemployee satisfaction and engagement.Case
Employee engagement survey at Joincare
In 2024, Joincare conducted an employee engagement survey for all employees. 100% of our employees participated in the survey,and the overall engagement score was 90%. The survey helped us to identify that our employees’ main concerns were aboutemployee care, welfare and benefits, after-work activities and training. To address these concerns, we have taken steps such asdeveloping mental health and career development care plans, organising diverse team-building and club activities, enriching onlinecourses and running professional skills seminars. We will continue to rene these measures based on feedback from our employeesto increase their satisfaction and happiness at work, and work with them to create a better working environment.
Protection Measures for Complainants
Trade Union ManagementWe have always regarded the trade union as an important link between management and employees. We holds regular employees’ congresses tomaintain close communication with them, ensure their full participation in the decision-making processes of the important matters of the Group,and continuously strengthen the connection between the enterprise and its employees. To better leverage the important role of the trade union inemployee care, we invite professional psychological consultants to hold lectures to alleviate the stress of employees in both work and life, and tohelp them regulate their emotions and relax.
Case
Employee engagement survey at Livzon GroupIn 2024, Livzon Group, a holding subsidiary of Joincare, hired a third-party institution to conduct an employee engagementsurvey using the influence model of the Gallup system from 16 dimensions, including organisational support, work-life balance,career development opportunities, diversity and inclusion, performance management, and employer branding. The aim is totrack employee satisfaction. The survey covered all employees of Livzon Group. The response rate was 100%, and the overallengagement score was 80%, about 5 percentage points higher than that of the previous year. The result exceeds the nationalaverage by 7 percentage points and the pharmaceutical industry level by 3 percentage points respectively.
Employees Covered bythe Group's IndependentTrade Union
%
8.2 Improving Talent Management
The Group highlights talent cultivation. With a formal talent pipeline development strategy, we recruit talents based on scientific forecast ofhiring needs. We actively broaden channels for talent introduction and implement more humanized talent retention measures in an e?ort to retainoutstanding talents. Meanwhile, we provide training courses that meet the developmental needs of employees at di?erent levels and in di?erentpositions, and continuously build a learning-oriented enterprise. We also keep optimizing the salaries and benefits system to share the fruits ofcorporate development with our employees.
2024 Sustainability Report 08 Talent Management
8.2.1 Talent Attraction and Retention
We continuously optimize our talent acquisition strategy based on the group's strategic positioning, business development needs, and the currentstatus of our talent pool. By deeply insighting into industry trends and market dynamics, we accurately predict the talent requirements forkey positions. This year, we actively carried out talent employment by experienced hire recruiting and campus recruiting, employing variousrecruitment channels such as online recruitment, internal recommendation, headhunting, and cooperation with governmental agencies tostrengthen the group's talent reserve. We are committed to attracting high-quality talents who align with the company's long-term developmentgoals to drive continuous business growth. We place special emphasis on the recruitment of top-notch talents, strengthening cooperation withrenowned domestic and international universities and research institutions to bring in excellent R&D talents and provide strong support for thetransformation of technological achievements.In addition, we actively promote the construction of a digital and intelligent talentpool. Leveraging the Feishu platform, we have established a talent pool managementsystem to centrally store candidate information. The system automatically screens andmatches candidates based on job requirements and intelligently recommends talentswith high potential that meet the criteria according to multi-dimensional data such as jobrequirements, skill tags, and work experience. This greatly improves the efficiency oftalent screening and matching.University-Enterprise Cooperation
We have established long-term cooperative relationships with top domestic universities, research institutions, and vocational colleges in theareas of talent cultivation, skills training, and job recommendations. We sign internship agreements with students from relevant majors, providecustomized internship platforms, and o?er employment opportunities to outstanding interns. This year, we signed cooperation agreements withwell-known institutions such as Guangdong University of Technology, Shenzhen University, and Henan Vocational College of Agriculture.We have carried out a series of internship programs through models such as "dual-mentor apprenticeship" and alternating work and study toenhance the vocational skills of students on campus. At the same time, we provide interns with comprehensive benets, including salaries, mealallowances, accommodation arrangements, and health check-ups, and o?er priority conversion opportunities to students who perform excellentlyduring the internship period.
New Employees3,105
Case
University-enterprise internship cooperation
Taitai Pharmaceutical: This year, Taitai Pharmaceutical signed an agreement with Shenzhen University to establish a joint training
base for pharmacy graduates. The project covers multiple fields including technology, production, and quality management,providing a practical platform for pharmacy graduates and promoting industry-academia-research cooperation. TaitaiPharmaceutical has also partnered with Hunan Food and Drug Vocational College and Guangxi Health Science College to establishtraining bases to cultivate skilled talent in pharmaceutical production. This initiative is part of the company’s efforts to steadilybuild a comprehensive and multi-level talent cultivation ecosystem.Joincare Haibin: This year, Joincare Haibin signed a cooperation agreement with Guangdong University of Technology for the joint
cultivation of undergraduate students. The project covers various areas such as internships, curriculum development, and researchprojects. This initiative not only helps students apply their theoretical knowledge to practice and enhance their professional skills,but also creates a long-term talent pipeline for the company and expands its talent pool.
Talent RetentionTo reduce employee turnover and maintain a stable talent pool, we provide comprehensive onboarding training for new employees to helpthem understand the corporate culture and become familiar with job requirements, so that they can integrate into the work environment assoon as possible. We implement a fair and transparent performance evaluation and promotion system, ensuring that every employee hasequal opportunities for development and fostering a positive and upward work atmosphere. We offer a variety of training and developmentopportunities for employees, encouraging them to continuously improve themselves and helping them clarify their career direction and enhancetheir professional competitiveness. At the same time, we strive to create a workplace culture of "happy working and happy living", regularlyorganise team-building activities to enhance team cohesion, and comprehensively improve employees' sense of happiness and belonging. Inaddition, we regularly conduct performance communication with employees, give positive feedback to those who perform well, and hold annualexcellence evaluation activities to award certificates of honor and commendations to outstanding employees and individuals or teams withoutstanding contributions, thereby enhancing employees' job satisfaction and sense of achievement.
Total Training Hours Delivered
1,345,002
hours
Turnover Rate Down to
% in 2024 (vs. 12% in 2023)
No Major Layoffs or M&A Impacting Employeesin the Past 3 Years
8.2.2 Training and Development
With a strong focus on internal talent development, Joincare continues to build comprehensive and diversied employee training system. Usinginternal and external resources, we have precisely developed training content for online and offline learning, catering to the diverse needs ofemployees at di?erent levels and positions. We are also working to continuously innovate training forms to ensure that our training programmesare closely align with our strategic and business needs, as well as developments in our business and the industry. At the same time, we collectfeedback on the training through a variety of means, including questionnaire surveys and face-to-face interviews, and continually optimise thetraining content based on this feedback to ensure training quality. This year, we upgraded our IT-based training management system, addingfunctional modules such as annual training management, document management, external training management, and examination management.The system automatically generates monthly training schedules based on each department’s annual training plans and clarify the trainingarrangements for employees to ensure timely attendance.
Training per Employee
94.7
hours
On-boarding Training
We have carefully developed a systematic training program for new hires and recent graduates. Through a six-month tracking and nurturingperiod, combined with approaches such as course study, mentor guidance, practical exercises, and sharing and communication, we help newemployees deeply understand the company’s core values, master job skills, quickly adapt to the work environment, and integrate into the teamas soon as possible. During this period, we regularly hold face-to-face communications with new employees to promptly understand their workperformance and growth needs, and provide feedback based on the assessment results. We offer early confirmation opportunities or salaryadjustments for outstanding employees, ensuring that every new employee receives full support and care during the probation period. We alsocontinue to follow employees’ development after the probationary period, providing them with career planning suggestions clarifying their careergoals.
2024 Sustainability Report 08 Talent Management
Job-specic Development Training
We tailor job-specific development training programmes for our employees according to the characteristics and expertise requirements ofdi?erent positions. For special operation sta?, we organise learning of relevant laws and regulations, standard operating procedures and technicalrequirements and carry out professional qualification training. These staff are only allowed to work with professional qualifications. For R&Dstaff, we offer training courses on project management, experimental technology, literature sourcing, and academic writing. We mobilize ourproduction and quality control sta? to learn about the knowledge related to equipment operation and quality standards. For sales sta?, we delivertraining on product knowledge, marketing compliance and sales skills enhancement. For safety management staff, we train them in the laws,regulations and policies applicable to our industry, first aid, and work safety. Meeting the growth needs of employees in various positions, ourtailored training comprehensively enhances employees’ professional competencies, and provides strong talent support for the e?cient and stableoperation of all business segments.
Case
“Dream & Future” Campus Recruitment Training CampThis year, we continued to host the “Dream & Future” freshgraduates training, aiming to develop future managementtalent in line with our needs. A total of 64 new employeeshired through campus recruitment were arranged for twodays of training at the Group’s headquarters. They learnedabout the Group’s history and culture, organisational structureand business processes, as well as professional ethics andworkplace etiquette. They also engaged in activities such assimulation exercises, case analysis, role playing, and team-building exercises. This has helped them quickly understandour corporate culture and strengthened their sense of identityand belonging. Additionally, we assigned a career mentorto each new employee to provide them with personalisedwork guidance and career development advice based on theirperformance. These efforts have helped them improve theirprofessional skills and laid a solid foundation for their futurecareer development.
Case
Training for employees in production positions
This year, Joincare Haibin conducted a series of trainingsessions for cleanroom operators in key areas such ascleanroom operation specications, microbial control, andequipment maintenance. The training combined theoreticalinstruction with hands-on operations to ensure that eachoperator masters the requirements of cleanroom operationand strictly adheres to the operating standards. The aim isto e?ectively prevent potential contamination risks duringproduction and to establish a comprehensive qualityassurance system for cleanroom operations, ensuringsteady improvement in product quality.
“Dream & Future” Campus Recruitment Training Camp
Training for Employees in Production Positions
Promotion and Job Transfer MechanismsWe are committed to providing employees with broad career development opportunities. We continuously optimize the dual-promotionmechanism ( “Professional” and “Management) to help employees choose suitable career paths based on their interests, abilities, and growthaspirations. We continue to combine "step-by-step promotion" with "exceptional promotion," o?ering rapid development channels for employeeswho have outstanding performance, make significant contributions, or possess special talents, thereby stimulating the vitality of our talentpool. At the same time, we further clarify the career development paths for each job series, providing more cross-departmental and diversifieddevelopment opportunities for administrative and technical series, and more challenging innovative project positions for the R&D series, helpingemployees in di?erent positions achieve their career goals.We regularly post internal recruitment information, encouraging employees to participate in internal competitions based on their personal careerplans, and providing job adaptability counseling. Relying on our rich training resources, we help employees quickly adapt to new positions.At the same time, we implement a exible internal transfer mechanism, regularly assessing the work performance and professional capabilitiesof employees who wish to transfer. We offer cross-departmental and cross-functional transfer opportunities for those who are willing andqualied, breaking down job limitations, unleashing employees' development potential, and enhancing the organization's vitality and innovationcapabilities.
Case
Training for employees in quality control positionsThis year, Jiaozuo Joincare organised its employees from the Quality Management Department for training on pharmaceuticalquality control techniques and quality control measures in the pharmaceutica industry. They studied relevant laws, regulations,and industry requirements for pharmaceutical quality management, with a focus on key quality inspection techniques suchas calibration and recalibration of reference substances. The aim is to effectively enhance employees’ professional skills inpharmaceutical quality control and to ensure that products meet and exceed industry standards.
Case
Training for employees in safety management positions
This year, Xinxiang Haibin provided safety training for itsemployees in safety management positions. The trainingcovered work safety laws and regulations, knowledgeof hazardous chemicals, dual prevention systems, theorganization and implementation of accident emergency plans,as well as fire safety knowledge. Key safety managementaspects such as the handling of production equipment failures,safety instrumentation systems, and abnormal situationhandling were emphasized. Employees participated in on-site simulation drills. These measures are aimed at effectivelyenhancing their safety awareness and emergency responsecapabilities, and safeguarding the company’s work safety.Training for Employees in Safety Management Positions
2024 Sustainability Report 08 Talent Management
Succession Planning and Leadership DevelopmentWe continue to implement succession plans for the employees in our key departments and positions. According to the plans, we assessemployees’ professional backgrounds, work experience and development aspirations, and identify potential successors based on the assessmentresults. This year, 10% of the potential successors identified through the assessment were successfully promoted to key positions, effectivelyenriching the talent pipeline. Employees who excel in professional skills, comprehensive capabilities and other aspects are given opportunitiesfor promotion and salary increases, relentlessly consolidating our talent team. At the same time, we focus on the comprehensive skill and qualitydevelopment of management personnel by regularly inviting internal and external lecturers to conduct management training. The training contentcovers leadership development, team building, communication skills, decision-making skills, and more, and includes case studies of leadingindustry companies and typical domestic and international cases. This approach helps us to continuously improve management and leadershipskills and build a structurally sound, highly competent and innovative talent team. This is a solid guarantee for the Company to gain advantagesin the erce market competition and to achieve its strategic goals.We have established a comprehensive and hierarchical management and leadership development training system, covering employees from entrylevel to senior management:
Entry levelSpecifically designed for new employees to helpthem quickly adapt to the work environment,clarify career development paths, and masteressential knowledge, the programmesinclude lecture on workplace qualitiesimprovementfor new employees,job simulation exercises, andone-on-one mentoring plans.
Executive level
Focused on improving staff’s execution efficiencyand strengthening their ability to guide subordinates,
the training includes a series of courses on
production, R&D, supply chain, talent
cultivation, and marketing.
Junior management
Dedicated to developing employees’execution and leadership qualitiesand teaching basic leadership theoriesand practical skills, the programmes includetraining on e?cient management communication andmanagement sand table simulation exercises.
Middle and seniormanagement
Aimed at forging an outstandingleadership style, strategic vision, andorganisational coordination abilities among middleand senior management, the programmes includedigital transformation strategy seminars and cross-cultural leadership training.
Case
Training for mid-to- senior management of JoincareIn 2024, the Group included management training in its annual priorities and dened “improving decision-making capabilities andoptimising management e?ciency” as the core objectives. Over 30 management training sessions were conducted, covering legalcompliance, financial control, the application of AI tools, team management innovation and other modules. More than 120 mid-to-senior managers received training for a total duration of 650 hours. We also organised internal exams and other assessments,which effectively enhanced their management and decision-making skills, creating a virtuous cycle that “training drives systemoptimisation and system evolution supports capability building”.
Case
Management training of Taitai PharmaceuticalIn 2024, Taitai Pharmaceutical organised over40 management training sessions for managers,covering key areas of company management suchas pharmaceutical regulations, quality managementand organisational management. 48 managersreceived training for a total duration of 1,888 hours.The training effectively improved their professionalknowledge, business and management skills.Approximately 10% of the participants were promotedafter the training.
Case
Special training to middle management of Xinxiang Haibin
In 2024, Xinxiang Haibin invited external instructorsto conduct special training for its middle management.The training focused on goal management,communication management and team cooperation,and addressed operational and management issuesfacing the company. 40 middle managers participatedin the training, and each of them received 16 hours oftraining. Typical cases were discussed and analysed,and simulation and team-building exercises throughteamwork and interaction were conducted to enhancemanagement skills and support the stable operation ofthe company.
Management Training of Taitai Pharmaceutical
Management Trainings of Xinxiang Haibin
2024 Sustainability Report 08 Talent Management
University-Enterprise Cooperative Training
We are committed to lifelong learning and have launched joint training programmes with several renowned universities and educationalinstitutions to share resources and complement each other, thereby enhancing our scientific research and innovation capabilities. This year,we ran joint doctoral training programmes with China Pharmaceutical University, Shanghai Jiao Tong University, Jinan University, and otherinstitutions. These programmes aim to develop interdisciplinary talents with in-depth expertise and rich practical experience by combiningtheoretical research with practical applications. This initiative further promotes our technological innovation and transformation of scientificresearch achievements in the pharmaceutical field. We also invited pharmaceutical experts and scholars from universities to introduce frontierresearch achievements and provide professional and technical training. This has broadened the horizons of our employees and enhanced theirtechnological innovation capabilities.
Case
Joint postdoctoral programme between Joincare and Shanghai Jiao TongUniversitySince 2021 when Shanghai Frontier and Shanghai Jiao Tong University (SJTU) jointly launched the postdoctoral programme, wehave continuously strengthened the development of our corporate postdoctoral workstation. The workstation focuses on molecularevaluation in the early stages of innovative drug development. This year, our rst postdoctoral researcher trained jointly with SJTUsuccessfully completed the programme. The researcher’s research achievements gained strong support from the Shanghai HaiboProgramme (Innovative Drugs) Fund, and the published paper was indexed in the Science Citation Index (SCI). The researcher alsosubmitted research achievements for patent application, making significant contributions to promoting the transformation of ourscientic research achievements and enhancing our R&D capabilities.
Case
Enterprise-independent assessment of vocational skill levelsThis year, Jiaozuo Joincare and Xinxiang Haibin obtained the qualification to autonomously conduct vocational skill levelcertification. Following the relevant national standards and taking into account our production needs and technical positioncharacteristics, they organised the certification of vocational skill levels for technicians. A total of 188 electricians, instrumenttechnicians, fitters, chemical inspectors and other technicians received certificates of senior, intermediate and junior vocationalqualications. This initiative has laid a solid foundation for talent development and accelerated the construction of a highly skilledtalent team.
Support for Degree Programmes and CerticationsWe advocate lifelong learning for our employees and actively support all employees of the group (including part-time and contractors)in obtaining academic degrees or professional qualification certificates for their positions. We assist employees in applying for relevantqualifications or national professional title recognition. We encourage and support employees to enhance their academic qualifications andprofessional capabilities through self-study exams, distance education, on-the-job postgraduate studies, and other pathways. We provide benetssuch as tuition reimbursement, exam leave, and class attendance leave for this purpose. Meanwhile, in accordance with local talent policies, weactively help employees apply for high-caliber talent, skilled craftsman, and innovative team certifications, assisting them in enjoying relevantgovernment benets.
8.2.3 Compensation and Employee Benets
The Group strictly complies with laws and regulations related to compensation and benefits, optimizes and implements internal systems andpolicies such as the Salary Management System and the Performance Management System, and continuously improves the performanceevaluation and feedback mechanisms. We provide employees with remuneration and benefits that are both fair and competitive in the market.We adhere to the remuneration management philosophy of " the consistency between responsibility and benet, the consistency between abilityand value, and the consistency between performance and earnings." We implement a compensation mechanism that consists of xed and variablecomponents for all employees (including non-o?cer and non-sales employees). The variable income is linked to individual performance and theGroup's performance, which fully leverages employees' initiative and e?ectively demonstrates the motivational power of remuneration.Performance Appraisals and Feedback Process
Adhering to the principles of fairness, impartiality, and transparency, we continue to optimise our performance appraisal and feedbackmechanisms. We are seeking diversified performance appraisal methods based on the characteristics of our departments and positions. Forindividual performance appraisal, we continue to use multi-dimensional assessments such as KPIs (Key Performance Indicators), OKRs(Objectives and Key Results), 360-degree feedback, and agile dialogues. The appraisal content covers performance achievement, teamwork,innovation capability, and personal development. We set work objectives for employees, quantitatively assess their work results, continuouslytrack their work progress, and conduct scientic and comprehensive performance reviews based on feedback from their peers and managers. Forteam performance appraisal, we have developed targeted assessment standards based on the functions and business characteristics of differentdepartments. We conduct quantitative assessments of key performance outcomes such as technological innovation projects, the number ofclinical and production approvals obtained, and annual sales. In addition, we have integrated sustainability indicators into employee performanceappraisal, which represent compliance with the Code of Employment, employee compliance with regulations, occupational health and safety,environmental protection, employment risk management, etc. These are also linked to employee salary to constantly improve our overallmanagement performance.Our performance appraisal covers all employees of the Group. We set team performance targets for each department and subsidiary based onthe Group’s annual business goals. These team targets are then broken down into individual targets, to provide a comprehensive measure ofindividual achievement and contribution to the team, ensuring that individual performance is closely linked to team targets. At the same time, weplace great emphasis on performance communication. Team leaders hold regular performance communication meetings with their members toprovide timely performance feedback and encourage the implementation of improvement actions. These efforts help to further enhance overallteam performance.
Case
Academic and qualication improvement programme at Livzon Group
In 2024, Livzon Group, a holding subsidiary of Joincare, formulated the Administrative Regulations on Employee Learning and Growth.This is to support its employees in applying for academic improvement programmes or obtain professional qualification certificates thatmeet job requirements. Livzon Group encouraged its employees to improve their academic qualications and certications through self-taught examinations, correspondence courses, distance learning, on-the-job postgraduate studies, and professional title evaluations. Duringthe reporting period, Livzon Group supported its employees in pursuing academic improvement at 18 higher education institutions and inapplying for 8 skill certicates. A total of 25 employees achieved academic improvement, and 407 employees obtained vocational skill orqualication certicates.
2024 Sustainability Report 08 Talent Management
Long-term Incentive MechanismsTo further improve the Group’s long-term incentive mechanisms and fully motivate core employees, Joincare has formulated various long-termincentive plans for directors, senior management, middle management and core technicians. The interests of shareholders, the Group and coreteam members are thus united, helping motivate the initiative and creativity of core employees and build a working environment with sharedresponsibilities and values. Since the end of 2014, we have successively launched the 2015 restricted share incentive scheme and 2018 shareoptions incentive scheme and 2022 share options incentive scheme and the 2019-2028 Medium to Long-term Business Partner Share OwnershipScheme to improve the long-term incentive mechanisms for employees. Up to now, the 2015 restricted share incentive scheme was completed in2019, and the 2018 share options incentive scheme was completed in 2022.The progress of our two existing Employee Share Ownership Plan/Share Options Incentive Scheme in 2024 is shown as follows:
? We developed the Medium to Long-term Business Partner Share Ownership Scheme (Draft) at the end of 2019. The plan benefits seniormanagement and core personnel engaged in R&D, production, sales, and management with outstanding performance during assessment orsignicant impacts on the future performance. The validity period of the plan is from 2019 to 2028. The First, Second and Third Phase OwnershipSchemes were approved on the General Meeting in June 2021 , May 2022 and October 2023 respectively.? In August 2024, the lock-up period for the first phase of our share ownership scheme expired. The first phase of the scheme included 2,430.8thousand shares with a total amount of RMB 31,038.3 thousand for 41 participants.? In September 2022, the Board of Directors deliberated and approved the 2022 Share Options Incentive Scheme (Draft), proposed to grant
55.00 million stock options to the incentive recipients, of which 49.50 million stock options, or 90.00% of the total number of stock options to be
granted under the Plan, are to be granted for the first time, and 5.50 million stock options, or 10.00% of the total number of stock options to begranted under the Plan, are to be granted as a set-aside. The beneciaries of the Incentive Scheme include directors, senior management, middlemanagement, core technicians, and those recognised by the Board of Directors as deserving incentives, with meet performance evaluation goalsas the vesting condition.? On September 5, 2022, the Board of Directors deliberated and approved the 2022 Share Options Incentive Scheme (Draft),granting 49.45 million stock options to 423 incentive recipients with September 5, 2022 as the first grant date. On August 11,2023, the Board of Directors of convened a meeting to consider and approve the Proposal for Granting Reserved Stock Options,determining August 11, 2023 as the reserved grant date for granting 5.5 million stock options to 149 incentive recipients. Thebeneficiaries of the Incentive Scheme include directors, senior management, middle management, core technicians, and thoserecognised by the Board of Directors as deserving incentives, with meet performance evaluation goals as the vesting condition.In addition, Joincare’s holding subsidiary Livzon Group also implemented the following Employee Share Ownership Plan/Share OptionsIncentive Scheme :
? In November 2023, Livzon Group approved the Third Phase of Ownership Schemes of the Medium and Longterm Business PartnerShareholding Plan through the shareholders' meeting. A total of 84 persons participated in this shareholding plan, including 8 directors (excludingindependent directors), supervisors and senior management and 76 other employees.? In October 2022, Livzon Group approved the 2022 Share Options Incentive Scheme by the general meeting. The Scheme granted incentivesto 1,026 employees in the rst vesting period, including 8 directors (excluding independent directors) and senior management, and 1,018 otheremployees. The rst vesting period was completed in November 2022.? In October 2023, the Board of Directors of Livzon Group considered and approved the Proposal on Matters Related to the Proposed ReservedGrants under the 2022 Stock Option Incentive Plan, which determined the reserved grant date to be October 30, 2023, and granted 2,000,000stock options to 243 incentive recipients.
Employee Benets System
In order to continuously enhance employee welfare, we keep rening our employee benets system. We ensure that all employees are entitled toall statutory holidays and pay for pension, medical insurance, unemployment insurance, work injury insurance, maternity insurance, and housingprovident funds for all employees.We have established an employee benefits system that covers three main pillars: health support, family and personal support, and work-life balance. We provide a broad range of material non-pay benefits (including full-time, part-time, and contractors), such as occupationalhealth check-ups, transportation allowances, welfare dormitories, and gyms. Meanwhile, according to employees' needs, we have introducedflexible work arrangements such as working from home, offering more choices for those who really need them. In addition, we have created acomfortable working environment for employees, setting up relaxation areas such as cafes and activity parks in the office area, providing freeco?ee and half - price afternoon tea. We distribute employee welfare packages during major traditional festivals every year, and give consolationmoney to employees in special di?culties, conveying the group's care and warmth. We also regularly hold a variety of employee activities suchas reading clubs, sports competitions, ethnic minority cultural performances, and annual parties, committed to enriching employees' leisuretime, enhancing employee cohesion, and improving employee well-being. As of the end of the reporting period, the groups paid a total of RMB2,454.68 million in salaries, bonuses, allowances, subsidies, welfare expenses, housing provident fund, and social insurance premiums for allemployees.Table: Joincare Employee Benets System
Employee canteenDormitoriesGovernment-run talent apartmentsHousing subsidies for talentsLiving allowance for talents introducedSupport for advanced studies under master's and doctoralprogramsCommuter allowanceGifts for traditional holidaysCash gifts for birthday, wedding and maternityFuneral and retirement solatia
Family and personal support
GymBreakout/refreshment areasTeam buildingAnnual partiesAssociationsLibrary
Work-life balance
Annual health checkups for employeesOccupational health check-upsHealth check-ups for femalesPsychological counsellingAccident insuranceHeatstroke prevention allowance
Health support
2024 Sustainability Report 08 Talent Management
CafesActivity Parks
Free Gym AccessEmployee Birthday Party
Activities in Womens’ DayReading Clubs
Annual PartiesEthnic Minority Activities
8.3 Occupational Health and Safety
The Group upholds the safety management policy of “Safety First, Prevention First, Integrated Management” and advocates the “Putting PeopleFirst” safety concept. We strictly abide by the laws and regulations regarding occupational health and safety, such as the Law of the PRC on WorkSafety and the Law of the PRC on the Prevention and Treatment of Occupational Diseases. In accordance with the requirements of the ISO45001Occupational Health and Safety Management System, we continuously improve and strictly implement internal systems and policies such as theOccupational Health Management System and Operating Procedures, the Monitoring and Evaluation System for Occupational Hazard Factorsfor Diseases at the Workplace, and the Management Procedures for Identification and Evaluation of Hazards Sources. We accurately identify,analyze, and control potential occupational hazards in the production process. Every year, we set the Group's occupational health and safetyobjectives, and we continuously carry out health and safety management to ensure the health and safety of employees.
Joincare’sOccupational Healthand Safety Goals in
2024
Fire safetyNo work safety accidents
Occupational healthNo new cases of occupational diseases
Lean management objectives
We continue the construction of the EHS system, complete internaland external audits and management reviews within this year. Weimprove the emergency system and conduct planned emergencydrills. We also add safety sessions in our on-boarding training forall new employees, and offer special safety training for specificemployees.We conduct internal audits, external audits, and management reviews of the EHS system annually. Each production subsidiaryalso carries out relevant audit work as planned. We continuously improve the EHS management system to ensure the effectiveoperation of safety, environmental protection, occupational health, fire prevention, and other preventive and managementmeasures during production operations.
EHS Internal AuditDocument reviewOn-site audits
New, reconstruction andexpansion projects review
We review EHS-relateddocuments and ledgers andsupervise the performance ofEHS targets. of EHS targets.
We check potential hazardsin production sites, andverify whether on-site safetycontrols are effective, and safeprotective articles are in placeto reduce potential accidents.to reduce potential accidents.
We propose suggestions for new,
reconstruction and expansion
projects from the perspective
of EHS to improve safety
management throughout each
project.
2024 Sustainability Report 08 Talent Management
The Group's EHS Management Committee, as the highest decision - making body for EHS management, is composed of the Group's directorsand senior executives, production heads, and EHS heads. It is responsible for formulating the Group's overall EHS development plan andoccupational health and safety policy. The general managers of Joincare and its subsidiaries are the primary persons in charge of EHS work,responsible for supervising and promoting the implementation of the enterprise's EHS management work. The Group's prioritization andintegration of occupational health and safety management work this year are as follows:
Overview of the Group’s Occupational Health and Safety Action PlansPrioritisation and Integration in 2024? We establish annual safe production goals and work plans.? We increase safety investments, especially in automated facilities, to reinforce our safety foundation.? We implement a safe production responsibility system for all employees.? We improve the emergency system and conduct emergency drills.? We provide more safety educational training to raise employees’ awareness of safe production.? We continue to build the EHS management system and refine our management regulations to ensureproduction compliance in programmes.? We strengthen risk management, and standardise the management of special operations and strictlycontrol operation approvals.? We enhance safety management of contractors, with all contractors signing safety managementagreements to improve the management quality of external construction crews.
We continuously increases investments in occupational health and safety. We upgrade work safety technology and equipment, and carry outsafety training, safety emergency drills and other activities. This year, we invested about RMB 60,270.1 thousand in occupational health andsafety, and the coverage rate of employees’ work injury insurance has reached 100%. The expense breakdown is as follows:
Table: Breakdown of occupational health and safety expenses
(1)Work safety expensesRMB 46,279.2 thousandIn which: Expenses of safety training and educationRMB 944 thousandExpenses of safety emergency drillsRMB 886.5 thousand
(2)Occupational health expensesRMB 13,990.9 thousandIn which: Total expense of employees’ work injury insuranceRMB 6,362.1 thousand
8.3.1 Occupational Health
The Group continues to improve and strictly follow management policies such as the Occupational Health Management System and OperatingProcedures, the Monitoring and Evaluation System for Occupational Hazard Factors in the Workplace, and the Regulation on the Managementof Hazard Identication and Evaluation. We make every e?ort to avoid occupational health risks in work and production processes and activelycarry out external certification work. This year, Joincare and all its production subsidiaries have passed the GB/T45001-2020/ISO45001:2018Occupational Health and Safety Management System certication.This year, we have continued to optimize employee occupational health protection. We have set up special funds for purposes such as improvingthe working environment, monitoring occupational health, and purchasing labor protective equipment. We regularly maintain and service safetyprotection facilities to ensure that they are ready for use at any time. During the reporting period, there were no new cases of occupationaldiseases, suspected occupational diseases, or occupational contraindications at Joincare.
? Healthier and more harmless processes, equipment, materials, etc. are preferred to minimise the impact of hazards onemployees.? We engage qualified service providers to carry out regular testing for potential occupational health hazard factors; conductoccupational disease hazard evaluation in accordance with the Regulations on the Management of Occupational Health in theWorkplace.
? We equip employees exposed to occupational hazards with labour protection articles and rst aid supplies.? We set up warning signs in places where occupational disease hazards may be involved.? We maintain, overhaul and upgrade protective facilities against occupational diseases.
We arrange regular occupational health examinations for employees in positions exposed to occupational disease hazards:
? Pre-job examination: We organise pre-job occupational health examination for employees who are about to engage in operationsexposed to occupational hazards and operations with special health requirements.? On-job examination: We organise regular on-job occupational health examination for employees who are exposed tooccupational hazards.? After-job examination: Employees are required to undergo health examination before they change posts or leave current poststhat are exposed to occupational hazards.
Joincare’s Safeguards for Occupational Health and Safety
Safeguarding occupational health of special posts
Occupational health monitoring
Occupational hazards check-ups
2024 Sustainability Report 08 Talent Management
Case
Weeklong publicity campaign on the Law of the PRC on the Preventionand Treatment of Occupational Diseases at Jiaozuo Joincare
In May 2024, Jiaozuo Joincare launched a weeklong publicity campaign on theLaw of the PRC on the Prevention and Treatment of Occupational Diseasesin the theme of “Prevention Comes First in Protecting Occupational Health”.Over 500 brochures promoting the law were distributed to frontline employees,and more than 10 online and offline training sessions on occupational diseaseprevention were held. These activities popularised the harm of and response tooccupational diseases, increased employees’ awareness and ability to protectthemselves, and successfully developed an occupational health mindset amongemployees.
Case
Occupational hazard assessment at Haibin PharmaIn June 2024, Haibin Pharma commissioned a third-party institution to conduct an annual occupational hazard assessment at thecompany and issue the assessment results report. This was to comply with the requirement of national occupational health laws andregulations that regular assessments of the status of occupational hazard should be conducted. All the company’s production andbusiness premises were assessed, such as factory workshops, crude product synthesis areas, solvent storage areas, wastewater treatmentstations and exhaust gas treatment stations. The assessment indicators included the overall layout of production and business premises,production processes and equipment layout, occupational hazard factors, occupational disease prevention facilities, emergency rescuefacilities and personal protective equipment. The results of the assessment showed that the concentration (intensity) of the occupationalhazard factors in all positions and job types in the company met the requirements of the occupational exposure limits.
Training Sessions on OccupationalDisease Prevention at Jiaozuo Joincare
8.3.2 Work Safety
The Group implements the work safety policy of "safety awareness, legal compliance and continuous improvement." We optimize and implementmanagement systems such as the Safety Management System Operation Control Management and the Operation Assessment System forDual Prevention Systems and continuously improve the work safety management system. We conduct work safety risk assessments annually,analyze the applicability of existing risk control measures, and make adjustments according to business needs and production conditions.We have established and improved a risk-grading control mechanism at the company level, workshop level, and position level, clarifying theresponsibilities of safety management personnel at each level and position. This year, we have established a work safety management system foroperations, formulated work safety management measures for various operations, managed operations according to their levels, required step-by-step approval, and required safety and production management personnel to conduct on-site supervision. We have upgraded protective measuresat the operation site and continuously strengthened work safety.
Changed by externalexperts upon an evolutionof subsidiaries' EHS Team
An EHS Change AssessmentTeam has been established toevaluate relevant workshopsor departmentsChanged by external expertsLevel 1 Major Changes
Level 2 Process Changes
Level 3 Workshop Changes
At Joincare, we conduct regular internal audits of the safety system and organise safety education and training for employees toeffectively ensure a stable environment for work safety within the Group. According to the characteristics of the positions, wearrange for new employees, those transferred to new positions, and those returning to work to participate in pre-job training. Weaim to achieve full coverage of vocational qualication certicates for special operation personnel. Moreover, we require relevantposition holders, not just special operation personnel, to complete safety management training and special equipment operationtraining before obtaining certicates and taking up their posts. This year, no safety accidents occurred in the Group, achieving thegoal of “zero safety accidents”.
Safety Inspection
This year, Joincare and its subsidiaries carried out 1,486 safety inspections, including routine safety inspection, monthly andquarterly safety inspections, special inspections for hazardous chemicals, special Inspection of special equipment, inspection byexternal experts, special seasona safety inspection and other internal inspections. To ensure safety production, we spared moreefforts in safety inspection, including inspection for lightning protection, safety inspection for electric fire facilities, specialequipment inspection, re alarm system maintenance and other safety rectications.
Case
Comprehensive inspection of work safety at Xinxiang HaibinIn 2024, Xinxiang Haibin conducted a comprehensive worksafety inspection covering its equipment and facilities, electricalmanagement, work environment, hazardous chemicals and anti-static measures. The aim was to strictly implement technicalprocedures for work safety and standards, enforce safetymanagement regulations, address prominent safety managementissues and weaknesses, thoroughly investigate and rectify hiddenhazards, and e?ectively prevent work safety accidents.
Comprehensive Inspection ofWork Safety at Xinxiang Haibin
Emergency Plans and Drills
Joincare and its subsidiaries have continuously optimized emergency response plans for internal safety incidents and contractorsafety incidents, covering overall emergency, specialised emergency, and on-site handling scenarios. All plans have beenreviewed and published within the Group. In 2024, the Group and its subsidiaries conducted 199 emergency drills, furtherrening and supplementing the emergency response plans based on the drill results.
2024 Sustainability Report 08 Talent Management
CaseEmergency drill for re accident of the distillation tower at Xinxiang HaibinIn June 2024, Xinxiang Haibin organised the emergency drill forfire accident of the distillation tower, simulating a sudden fire inthe distillation equipment. Ten emergency response teams wereformed, consisting of department heads and production workshopoperators. During the drill, the rescue team acted swiftly, thefirefighters skilfully operated fire hydrants and fire monitors,and all departments worked closely together. The drill plan wasexecuted effectively, and the accident was handled appropriately,significantly improving the company’s fire emergency responsecapabilities.
Case
Emergency drill for hazardous chemical leakage at Haibin Pharma
In 2024, Haibin Pharma conducted a comprehensive emergencydrill for hazardous chemical leakage in the workshop synthesisarea, simulating a fire caused by leakage from reaction kettlebottom valves. The company-level emergency response plan wasimmediately activated. The drill included emergency disposal ofchemical leaks, first aid and transfer of burn victims, emergencyevacuation, emergency transfer of on-site hazardous chemicals, andre and environmental emergency response. Emergency equipmentsuch as mobile foam trucks, foam fire hydrants, wheeled fireextinguishers, outdoor re hydrants, leak-proof adsorption blankets,and portable gas detectors were used. This drill helped relevantemployees better understand their work safety responsibilities andeffectively familiarise themselves with and improve their ability touse emergency equipment.
Emergency Drill for Fire Accident of the
Distillation Tower
Emergency Drill for Hazardous
Chemical Leakage
Safety Culture Cultivation
Joincare strictly complies with relevant national laws and regulations, and formulates an annual training plan in accordancewith the requirements of the emergency management authorities. This year’s EHS training covered various topics, includingsafety orientation for new employees, specialised operation, safe production responsibility system, accident case study, safetymanagement - team safety, occupational health and safety, dual-prevention system, laws and regulations on safe production,fire safety, and emergency drills. As the end of reporting period, our EHS trainings lasted for a total of 240,252 hours withapproximately 18.08 hours per employee, successfully achieving the goal of “Safety orientation for all new employees andspecialised safety training for specic employees.”In 2024, the Group and its subsidiaries launched “Safety Month” campaigns. By participating in various activities such as themedpublicity and education, warning education on production accidents, safety training, emergency drills, and safety inspection, ouremployees became more aware of safety at work. They got motivated to create a safety culture with joint e?orts.
Case
Fire safety training of Taitai PharmaceuticalIn August 2024, Taitai Pharmaceutical organised fire safetytraining for all its employees, which included fire safety lawsand regulations, knowledge of fire prevention in public places,use of firefighting equipment and response to public safetyemergencies. This training increased employees’ fire safetyawareness and developed their sense of responsibility for firesafety.
Case
“Work Safety Month” activities of Haibin PharmaDuring the 23rd national Work Safety Month in June 2024,Haibin Pharma organised a variety of activities, includingwork safety knowledge training, analysis of typical accidentsand emergency rescue cases, learning of CPR and otherfirst aid knowledge, online safety quizzes, and safety skillscompetitions. These activities created an atmosphere of“everyone talks about safety, and everyone knows how torespond to emergencies”, and improved employees’ ability tohandle work safety emergencies.
Case
Xinxiang Haibin participated in a safety emergency response skills
competitionIn September 2024, Xinxiang Haibin participated in thesafety emergency response skills competition in the themeof “On - the - Job Training and Technical Competition”organised by Xinxiang Emergency Management Bureau.After theoretical tests and three practical tests, the XinxiangHaibin team won the second prize. The award is a successfultest of the company’s emergency response capabilities and theeffectiveness of its daily work safety emergency management,and has earned the company a good reputation in the industry.
Fire Safety Training
“Work Safety Month” Activities
Xinxiang Haibin Team Won theSecond Prize in the Competition
2024 Sustainability Report 08 Talent Management
Joincare adheres to the principle of green development. While strictly following the environmental compliance requirements, wedeeply integrate the concept of “green and low-carbon” into all aspects of our operations and management. We actively advocatethe use of clean energy, practice low-carbon operation modes, strengthen resource conservation actions, and reduce wasteemissions, to improve our environmental management performance in a comprehensive manner. The goal is to better contributeto the national goals of “carbon peaking” and “carbon neutrality” and the harmonious coexistence between man and nature.
SDGs in this section
Operatingwith GreenSustainability
9.1 Environmental Management System
Joincare strictly abides by laws and regulations regarding environmental protection, including the Environmental ProtectionLaw of the PRC, the Law of the PRC on the Prevention and Control of Atmospheric Pollution, the Energy Conservation Law ofthe PRC, and the Administrative Measures for Hazardous Waste. Active e?orts are made to optimise the internal environmentalmanagement system.We have developed the EHS Management Policy to regulate the management requirements in key areas such as the three types ofwastes (wastewater, waste gas, and solid waste), energy, chemicals, and water resources for the Group and its subsidiaries. Withthis policy in place, we aim to improve our environmental management practices. We have also introduced and kept improvingthe Safety and Environmental Management Manual, General Requirements for the EHS Management System, and Requirementsfor Identication and Assessment of Environmental Factors. These are part of our e?orts to improve our capability of managingenvironmental issues and take on our environmental responsibility pragmatically. In 2024, no major environmental pollutionaccidents and no administrative punishments occurred at any production subsidiaries of Joincare.In terms of environmental pollution prevention and control, we have developed and implemented the “three simultaneous” policy,requiring each production subsidiary to ensure the pollution prevention and control facilities should be designed, constructedand put into use simultaneously with the project’s main work. Meanwhile, we regularly maintain pollution abatement equipmentand invest increasingly more in equipment and facilities upgrading and transformation of production processes and technologiesto ensure their normal, stable and e?cient operation. Also, we regularly provide training for employees on energy conservationand consumption reduction, water usage reduction, waste reduction, etc. This is aimed at optimizing employees' behaviors inenergy and water resource usage, improving water efficiency, and enhancing the performance in energy management and wastemanagement.In addition, the Group continues to improve the environmental management system. We devote down-to-earth efforts toenvironmental management, proactively promote cleaner production and green factory certication. By the end of the reportingperiod, Joincare and 100% of its production subsidiaries were accredited to the ISO 14001 environmental management system.Among all production subsidiaries of the Group, 15 were passed the clean production review, 6 were accredited as the nationalgreen factory, 1 as the provincial green factory, and 6 production subsidiaries completed HAZOP analysis.
Table: Expenditures of Joincare in environmental protection in 2024
CategoryAmount (RMB 10,000)Technical upgradation of environmental protection equipment2,001.57
Environmental protection operation and maintenance8,064.97
2024 Sustainability Report 09 Operating with Green Sustainability
9.1.1 Policies and Targets
Joincare adheres to the environmental management policy focused on “pollution prevention, legal compliance and continuousimprovement”. Based on the environmental management status and performance, the Group has set five-year targets of energysaving and emission reduction, with 2020 as the baseline year, and keeps monitoring the progress for the targets. All productionsubsidiaries are required to rene their management of energy and natural resources and propel energy conservation and emissionreduction at every link of production and operation to achieve environmental management targets together with the Group.Table: Energy conservation and emission reduction targets of Joincare
ItemIndicatorFinal Target by 2025
WaterWater consumption per unit production (RMB 10,000)Down 5% from 2020ElectricityElectricity consumption per unit production (RMB 10,000)Down 5% from 2020Chemical oxygen demandEmission per unit production (RMB 10,000)Down 5% from 2020Sulfur dioxideEmission per unit production (RMB 10,000)Down 10% from 2020Disposal volume of hazardous wasteDisposal volume per unit production (RMB 10,000)Down 2% from 2020To constantly enhance the environmental management level and performance, the Group sets annual targets for environmentalcompliance in operation and urges production subsidiaries to meet the required standard in terms of compliance with thestandards three dimensions for wastewater and gas emissions, the occurrence of major pollution accidents, and annualenvironmental penalties.Table: Targets of environmental compliance in the operation of Joincare in 2024
IndicatorAnnual TargetsAchievements
Compliant wastewater/gas emissions100%AchievedCompliant hazardous waste disposal100%AchievedNumber of major pollution accidents0AchievedNumber of environmental penalties in the year0Achieved
9.1.2 Management Structure
To enhance the EHS management level, Joincare continuously improves the EHS management structure to dene responsibilitiesand ensure their performance according to the EHS Management Policy. As the highest responsible body, the SustainableDevelopment Committee of the Board of Directors is responsible for formulating EHS-related strategies and policies, such asthose on environmental management and resource utilisation, regularly reviewing the Group’s performance in environmentalmanagement performance, and reporting EHS issues to the Board of Directors.
? The EHS Management Committee coordinates the overallEHS management of the Group.
? The Sustainable Development Committee of the Boardof Directors is responsible for formulating EHS-relatedstrategies & policies and reporting the relevant issues to theBoard of Directors.
? The EHS Department of the Group supervises and manages
the implementation of EHS work in each productionsubsidiary.? Each Functional Department of the Group is responsible forits own EHS work.? Each production subsidiary of the Group is responsible forits own EHS work and reports to the Group regularly.
EHS Management Committee
EHS Department of the Group
Functional Departments
of the Group
Production subsidiariesof the Group
EHS Management Structure
Production subsidiaries of the Group have also developed a standardised EHS management system. As the first responsibleperson for EHS, the general manager is in charge of the overall environmental protection work; as the directly responsiblepersons, supervisors or department managers are in charge of the preparation of EHS initiatives, ling to the EHS Department ofthe Group, and supervision of the implementation of specic initiatives; and the employees of the subsidiaries cooperate with theGroup’s EHS policy and their EHS responsible persons in EHS management.Joincare actively fulfils the responsibilities of carbon emission reduction management. The EHS Department is responsible forsetting carbon emission reduction targets for the Group and its subsidiaries, reporting them to the Sustainable DevelopmentCommittee of the Board of Directors for approval, and following up on the quarterly achievement of the Group’s carbonemission targets. The general manager of each subsidiary, as the first person in charge of carbon emission, is responsible forscheduling carbon emission targets based on the actual situation of the company, working out e?ective carbon emission reductionmeasures, designating relevant responsible persons, and reporting the target achievement to the EHS Department of the Groupon a quarterly basis. ESG indicators have been added to the individual performance assessment of all Sustainable DevelopmentWorking Group members (including executive management) since 1 January 2022, with a weight of 10% in the total performancesystem. A corresponding percentage of the management's annual performance bonus will be reduced due to decliningperformance of ESG indicators. ESG indicators and their weights are as follows:
Sustainable Development Committeeof the Board of Directors
2024 Sustainability Report 09 Operating with Green Sustainability
Table: Weight of ESG indicators in the assessment of Sustainable Development Working Group
(1) Energy conservation and emission reduction targets3%
(2) Carbon emission targets3%
(3) ESG rating objectives4%Total weight of ESG indicators10%
9.1.3 EHS Audit
Internal AuditJoincare strictly implements internal audit procedures in accordance with the Group EHS Internal Audit Management Procedure,to make sure that its EHS management is effective. At the beginning of the year, the EHS Department of the Group works withthe audit team on an annual internal audit plan based on vulnerabilities found in past internal audits and corrective actions takenby subsidiaries. The EHS Department conducts EHS audits on all subsidiaries at least twice a year, and makes timely summariesand prepares internal audit reports of subsidiaries after the audit. Subsequently, the EHS Department urges the rectification ofunqualified items by the subsidiaries, compiles a group audit report every six months and submits them to the management forreview. Corresponding production subsidiaries shall rectify unqualified items found in the internal audit under the guidance ofthe Management Regulations on Corrective and Preventive Measures. In 2024, the Group and its subsidiaries conducted 30 EHS
internal audits. All unqualied items found in the annual EHS internal audit were rectied with a coverage rate of 100%.Production subsidiaries of the Group consciously and regularly inspect the stability of pollutant control equipment, the disposalmethod of solid waste and the launch of emergency drills, and rectify the unqualied items in a timely manner, to rmly ensurethe compliance of EHS management and the e?ective operation of the Group’s EHS management system.External AuditJoincare conducts an external audit of EHS annually and engages qualified third-party certification agencies to audit andsupervise production subsidiaries that have obtained ISO 14001, ISO 45001 and ISO 50001 certifications. During the course,we carry out energy audit, waste audit and water use assessment, continuously tap into energy saving, water conservation andresource consumption reduction, and strengthen management requirements of all kinds. Besides, we review the energy usewithin the ISO systems. Based on the analysis of energy use and energy consumption, Joincare identifies the overall energyuse by category. We refine the management of facilities and equipment with a huge impact on this front, identify and prioritiseopportunities for better energy performance, and devise targeted improvement measures. In 2024, we rectied all the unqualieditems found and passed the external audit.
9.2 Addressing Climate Change
Climate change is a grave challenge facing all mankind. The warming trend of the climate system has continued in recent years.As extreme weather events, rising sea levels and other climate problems become more severe, there is an urgent need to addressclimate change. In line with international trends, Joincare is committed to reducing the impact of climate change on humanhealth and business operations. While intensifying e?orts to manage and address climate risks, we are working hard to seize thegreen development opportunities brought by climate change, to support the country’s achievement of carbon peaking and carbonneutrality.Referring to the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, we manage and disclose ourclimate-related information along four dimensions: governance, strategy, risk management, and metrics and targets. Since 2023,we have responded to the CDP climate change questionnaire for two consecutive years based on the management practices of theGroup. Moving forward, we will continue to disclose detailed climate-related information by responding to the questionnaire.
9.2.1
GovernanceRelying on the sustainable development governance system, the Group has established a climate governance framework toimplement climate change management from top management to frontline employees. As the highest management body,the Sustainability Committee of the Board of Directors is responsible for developing and improving climate strategies,reviewing climate risk management policies, assessing climate-related targets and progress against them, and monitoring theimplementation of measures to address climate change.We have set up a climate change response team at the Group level. The team conducts in-depth research and analysis of thedevelopment status of the Group and all the production subsidiaries, accurately identies signicant climate-related risks facingthe Group, and develops strategies accordingly. It reports annually to the Sustainability Committee of the Board of Directors.The EHS Department leads our implementation of climate change tasks, including making the list of climate risks, identifyingand assessing climate-related risks, analysing and listing potential climate-related development opportunities, and determiningaddressing measures and targets based on discussions with other business units and the climate risk scores.We have developed and published the Climate Change Management System. It sets out the Group’s procedures for identifyingand assessing climate-related risks and opportunities, and the requirements for implementing and monitoring the responsemeasures. This helps to strengthen our climate change management. This year, all our subsidiaries engaged professional third-party companies in their carbon accounting, allowing us to comprehensively review the carbon management performance andactively promote the carbon emissions reduction e?orts of the Group.
9.2.2 Strategy
Assessment of Climate-Related Risks and Opportunities
We have incorporated the issue of climate change response into the decision-making process of our corporate strategies, and stayfocused on the impact of climate change on the Group’s production and operations in the short, medium and long term. Duringthe year, we invited our production subsidiaries to participate in our climate risk assessment. We reviewed the climate-relatedrisks closely linked to our business and formulated targeted responses to improve the Group’s overall ability to respond to climaterisks.
2024 Sustainability Report 09 Operating with Green Sustainability
Table: Climate risk identication and countermeasures
CategoryImpactRisk AssessmentCountermeasures
Physicalrisks - acuterisks
Typhoon
Climate change causes frequent andstronger typhoons (e.g., once-in-50-year, once-in-100-year strongtyphoons or super typhoons), resultingin unceasing strong winds and heavyrainfalls. These extreme weatherevents may interrupt electricitytransmission in plants, resulting inwater and power outages or damagedequipment, which will reduceproductivity and threaten the safety ofan enterprise’s properties.
Severity of impact:
relatively lowPossibility:
possibleTimeframe: short-term
?The Group pays close attention to climatechange trends, formulates contingency plans forextreme weather according to the circumstances,and carries out emergency training.?The Group has set up a special action team fortyphoon disaster weather to ensure emergencymaterial reserves. The team checks the localdrainpipe system to guarantee an e?ectiveresponse to ooding caused by heavy rains.?We pay close attention to geo-climaticinformation and cover all our operations with the“property all risks” insurance.
?Xinxiang Haibin and Jiaozuo Joincare haveestablished special teams for ood responses andParty member taskforce and purchased adequatematerials, reinforcing ood response capabilities.Rainstorm(ood)
Climate change has been increasingthe number of rainstorm days andthe intensity of precipitation in mostregions across China. The situationresults in ooding due to the risingwater volume and water level inrivers, lakes and coasts. It also causesinundation of land and houses inplants due to untimely drainage.
Severity of impact:
relatively lowPossibility:
possibleTimeframe: short-term
Physicalrisks -chronic risks
Meantemperaturerise
Warming climate will elevate China’sdaily maximum and minimumtemperatures. More frequentextremely scorching weather willharm the health of employeeswho work in high temperaturesenvironment.
Severity of impact:
relatively lowPossibility:
likelyTimeframe:
medium-term
?The Group has taken e?ective measures toprevent heat-related illness. We provide heatstrokeprevention grants for employees working in thesummer and provide intensive protection foremployees working in high temperatures and onhot days.?We install air-conditioners in the workshopand insulate the roof and walls with materials offavourable thermal insulation properties.
Transitionrisks - policyand legalrisks
Carbonpricingand carbontrading
Carbon trading requires enterprisesthat emit more than their quotas topurchase additional quotas from thetrading market, while those that emitless than their quotas can sell theirsurplus. Emissions beyond the quotamay increase operating costs or bringpenalties to the enterprise.
Severity of impact:
mediumPossibility:
probableTimeframe:
medium-term
?The Group is actively adjusting its business andproduct structure and gradually reducing the use ofenergy-intensive and highly polluting productiontechnologies and equipment. Sustained e?orts arebeing made to try eco-friendly technologies andmaterials, so as to limit our carbon emissions.
?The Group pays constant attention to the trendsand changes of the carbon trading market. Wepromptly adjust the corporate operating strategy,establish carbon accounting systems, set carbonemission targets, and strengthen the managementof carbon quotas.
4 Timeframes (time over which a risk is expected to materialise): short-term (0-3 years), medium-term (4-10 years), and long-term (morethan 10 years)Possibility (the likelihood that a risk is to materialise): basically certain, probable, likely, possible, unlikely, and very unlikelySeverity of impact (the severity of a risk’s impact on business performance): high, relatively high, medium, relatively low, and low
CategoryImpactRisk AssessmentCountermeasures
Transitionrisks - policyand legalrisks
Climate andenvironmentalpolicies
Regulatory requirements forenvironmental protection arebecoming more stringent. Besides,more national and local policies havebeen issued, driving up enterprises’costs in protecting the environment.Enterprises that fail to meet the newenvironmental standards may faceadministrative penalties.
Severity of impact:
mediumPossibility:
likelyTimeframe:
medium-term
We continuously monitor national and localclimate and environmental policies to align ouroperations with relevant requirements.We further communication and cooperation withenvironmental authorities, taking the initiative toplay a part in policy formulation and stay readyto act accordingly.We have established an early warningmechanism for environmental compliance risks.Should any possible non-compliance against thelatest environmental standards be identied, wewill take active measures to align us with therelevant environmental regulations.
Transitionrisks -market risks
Increasedcost of rawmaterials
Climate change results in higher costsof raw materials, packaging materials,and energy consumption (e.g. waterand electricity) for pharmaceuticalproduction, and increasing logisticscosts, which threatens the stability ofthe supply chain.
Severity of impact:
relatively highPossibility: likelyTimeframe:
medium-term
The Group has maintained alternative suppliersof raw materials, key consumables and othermaterials. The Group has also signed strategiccooperation agreements with suppliers of keymaterials, and made plans to incorporate newsuppliers. These measures are taken to ensure astable and consistent supply.
Transitionrisks -technologyrisks
Low-carbontechnologytransformation
Low-carbon technology entailssignicant upfront investment inR&D and equipment upgrades. Thedevelopment of low-carbon equipmentand production technologies is fraughtwith uncertainty. Investments innew technologies may fail due toimmature technology and low marketrecognition.
Severity of impact:
relatively lowPossibility:
possibleTimeframe:
medium-term
When investing in new technologies orintroducing new equipment, the Groupwill conduct su?cient project research andfeasibility studies to fully assess the paybackperiod and project feasibility. We will selectthe most appropriate and mature technology toreduce the risk of investment failure.
Transitionrisks -reputationrisks
Stakeholderconcerns
As the public pays more attentionto environmental protection issues,an enterprise’s failure to respond toclimate change will a?ect the publicopinion of it and damage its reputationin the market.
Severity of impact:
relatively lowPossibility:
possibleTimeframe:
medium-term
The Group has set carbon emission targets anddiscloses information on climate change in itscorporate social responsibility reports and theCDP climate change questionnaire.We have ramped up communication withstakeholders to respond promptly to theirconcerns about our environmental performance.
2024 Sustainability Report 09 Operating with Green Sustainability
Climate change brings not only risks but also opportunities to our business. We keep abreast of national and international climatechange policy developments and have asked our production subsidiaries to identify and assess climate-related opportunities interms of resource utilisation, clean energy substitution and market demand.Table: Climate opportunity identication and countermeasures
OpportunityImpactOpportunity AssessmentMeasures to Seize Opportunity
Higherresourceutilisation rate
? Lower energy and resourceconsumption can reduce emissionsand operating costs.? By adopting more e?cientproduction technologies, companiescan increase their productioncapacity and revenue while usingresources more e?ciently.
Severity of impact:
mediumPossibility:
likelyTimeframe: medium-term
? The Group actively engages in energy conservationand emission reduction projects and increasesinvestments in green production projects to continuouslyimprove energy and resource e?ciency, reducecosts, and increase e?ciency through technologytransformation and equipment upgrading.
Increasedproportion ofclean energy
? Increasing the proportion of cleanenergy can e?ectively reduce carbonemissions and help achieve theGroup’s emissions reduction targets.? Replacing fossil fuels with cleanenergy can help companies bettermanage the risk of rising fossil fuelprices in the future.
Severity of impact:
mediumPossibility:
possibleTimeframe: medium-term
? The Group plans to accelerate the construction ofphotovoltaic power generation projects and graduallyincrease the installed photovoltaic capacity and annualphotovoltaic power generation.? The Group has initiated photovoltaic projects in thequalied plants of all our subsidiaries, to continuouslyimprove self-su?ciency in clean energy.
New marketdemands
? Climate change may lead to morechances for human infections andoutbreaks of inuenza, as well asincreased risk of respiratory diseases,creating new market demands forpharmaceutical companies.
Severity of impact:
relatively highPossibility:
probableTimeframe: medium-term
? We closely track market demands and have developeda number of new medicines for respiratory diseases suchas asthma, COPD and bronchiectasis.? We participate in public health promotion andeducation activities to raise public awareness of climatechange-related diseases.
5 Timeframes (time over which a risk is expected to materialise): short-term (0-3 years), medium-term (4-10 years), and long-term (more than 10years)Possibility (the likelihood that a risk is to materialise): basically certain, probable, likely, possible, unlikely, and very unlikelySeverity of impact (the severity of a risk’s impact on business performance): high, relatively high, medium, relatively low, and low
Climate Scenario AnalysisRecognising the importance of climate scenario analysis for climate risk assessment and management, the Group uses thefollowing scenarios as one of the reference factors in assessing climate risks and opportunities. The aim is to better predict thepotential impact of climate risks under low and high emissions scenarios, raise business resilience, and identify solutions toreduce emissions.Low emissions scenarios:
? SSP 1-2.6: In this scenario, a sustainable society consuming mostly clean energy, countries have realised theseriousness of climate change, intensified climate action, and adopted stronger climate policies to reduce carbonemissions and limit global warming to well below 2°C. At the same time, continued technological progress and increasedawareness are driving a global transition to low-carbon and low-energy practices and more climate-friendly modes ofproduction and consumption. Global CO
emissions have declined significantly, but at a slower pace, to reach net-zeroemissions after 2050.? IEA NZE 2050: In this scenario, the entire world is committed to achieving the goal of net-zero emissions by 2050.Governments and industries have taken positive climate action by developing and implementing a range of new climatepolicies. These policies have spurred the widespread deployment of clean energy and improved energy efficiency.Technological innovation and increased public awareness have facilitated the transition to a low-carbon economy anddriven positive corporate action to reduce emissions. The goal of net zero emissions will be achieved by 2050.High emissions scenarios:
? SSP 5-8.5: In this scenario, the emissions path remains unchanged. The focus is on the climate impacts of physical riskfactors, and countries have not adopted strong climate policies. Global temperatures are projected to rise by more than
2.5°C by 2055, which could lead to rising sea levels, changes in weather patterns, and more intense and frequent extreme
weather events.? IEA STEPS: This scenario reflects the global energy and climate development path based on current policies. In thisscenario, governments promote the optimisation of the energy mix and the development of clean energy technologies inaccordance with existing policy frameworks and plans. Global CO2 emissions are reduced in this scenario, and there is a50% chance of limiting the global average temperature increase to 2.4°C by 2100.Case
The climate scenario analysis of Livzon GroupIn 2024, Livzon Group conducted a comprehensive assessment of the climate change risks (including physicaland transition risks) and opportunities for business operations. By means of climate scenario analysis, LivzonGroup assessed the adaptability of various stakeholders along the value chain to different climate scenarios, themateriality of climate-related risks, and the impact on Livzon Group of potential opportunities during the transitionto a low-carbon future. In the scenario analysis, Livzon Group also identified significant uncertainties, includingconcerns on policy continuity, risks of delays in technological breakthrough, obstacles to global cooperation,geopolitical conflicts, and shifts in public awareness. While improving the energy utilisation across the board,Livzon Group will continue to raise the proportion of renewable energy use and reduce carbon emissions.
2024 Sustainability Report 09 Operating with Green Sustainability
9.2.3 Risk Management
To proactively respond to the risks and opportunities brought by climate change, the Group has established a robust climate riskmanagement system. We identify climate risks and opportunities each year, formulate scientific climate change response plans,and regularly report progress to the Sustainable Development Committee of the Board of Directors, which ensures that climate-related risks are e?ectively managed.Our climate risk management steps:
Step 1:
Making a list ofpotential climate risks
The EHS departments of our subsidiaries collect peer reports, industry research reports, mediareports, relevant policies enacted by regulators and other external information and data. Basedon this information as well as stakeholder surveys and internet searches, they draw up a list ofpotential climate risks faced by their companies. In the process, other relevant business divisionswill support the EHS departments by collecting, summarizing and sharing information on climaterisks faced by their departments.Step 2:
Determiningassessment criteria
?For each identied climate risk, assess from the following four dimensions:
(1) Time over which a risk is expected to materialise
(2) The likelihood that a risk is to materialise
(3) The severity of a risk’ impact on the subsidiaries’ nancial plans
(4) The severity of a risk’ impact on the subsidiaries’ corporate strategies
Step 3:
Scoring by the
management
? The EHS departments assess and score each risk identied in the 4 dimensions in Step 2. Basedon their scores, the risks are ranked from the highest to the lowest and a list of risks by severity iscreated. The list is submitted to the heads of the relevant business divisions for initial approval andthen to the general managers of the subsidiaries for final approval. Once approved, it becomes thenal annual list of risks of the subsidiaries.Step 4:
Determining responsemeasures
? The EHS departments determine response measures and set targets based on the risk scores anddiscussions with other relevant business divisions. They then hammer out action plans to respondto climate risks, which will be implemented by the relevant business divisions after approval by thegeneral managers.
Step 5:
Overseeing andreporting
? The relevant business divisions report to their general managers on the implementation of theaction plans every six months and adapt them in good time to their actual situation.? The subsidiaries prepare annual reports on climate risk management every year. After approvalby the general managers, the reports are submitted to the Corporate Social Responsibility WorkingGroup for review and then to the Sustainable Development Committee of the Board of Directors fornal approval.
9.2.4 Metrics and Targets
The Group’s GHG emissions mainly come from fuel combustion, electricity and purchased steam consumed in production andoperation. GHG emissions and energy use of Joincare in 2024 are as follows:
Table: GHG emissions and energy use of Joincare in 2024
IndicatorUnitTotal
Direct GHG emissions (Scope 1)Tonne of CO
equivalents 197,854.4Indirect GHG emissions (Scope 2)Tonne of CO
equivalents 828,817.7Total GHG emissionsTonne of CO
equivalents1,026,672.1The Group deliberated and approved the Proposal on Adding Carbon Emission Targets to Joincare’s Environmental Managementin 2022. According to the proposal, we set the carbon emission target of Joincare from 2022 to 2025 and commit to achievingcarbon peaking by 2028 and carbon neutrality by 2055 (Scope 1 and Scope 2
). In 2024, we took multiple measures to meetour carbon emission targets, including closely monitoring our progress towards our annual targets, constantly promoting greenproduction, and diligently exploring the potential in energy management.Table: Carbon emission targets of Joincare from 2022 to 2025YearItemIndicatorTargets
2022Carbon emissionEmission per unit production (RMB 10,000)Down 2% from 20212023Carbon emissionEmission per unit production (RMB 10,000)Down 4% from 20212024Carbon emissionEmission per unit production (RMB 10,000)Down 6% from 20212025Carbon emissionEmission per unit production (RMB 10,000)Down 8% from 2021
9.3 Energy Management
The Group takes steady steps to develop the energy management system in strict accordance with laws and regulations suchas the Energy Conservation Law of the PRC and the Law of the PRC on Promoting Clean Production, based on ISO 50001standards. The production subsidiaries of the Group have established an energy management system based on their actualities.They identify their energy availability through on-site investigation, data verication and energy data analysis, fully exploit theirenergy-saving potential, and formulate practical measures for e?cient and orderly energy management.
6 Scope 1 greenhouse gas (“GHG”) emissions are mainly derived from direct GHG emissions from the consumption of fossil fuels in thecompany's operations/production processes (e.g. gasoline, diesel, natural gas, etc.). Scope 2 GHG emissions are mainly derived from indirectGHG emissions from purchased electricity and steam consumed by the company's operations/production processes.
2024 Sustainability Report 09 Operating with Green Sustainability
Table: Energy system accreditations of Joincare’s production subsidiaries
Company NameEnergy System AccreditationName of the Energy System
Jiaozuo JoincareAccreditedISO 50001:2018 / RB/T114-2014Xinxiang HaibinAccreditedISO 50001:2018 / RB/T114-2014Haibin PharmaAccreditedISO 50001:2018 / RB/T114-2014Fuzhou FuxingAccreditedISO 50001:2018 / RB/T114-2014Livzon HechengAccreditedGB/ T23331-2020/ RB/T 114-2014We incorporate the energy management concept into the work processes. In production, we take measures to improve energyuse e?ciency for energy conservation and emission reduction. We also increase the investment in green production projects andstrive to build a low-carbon and energy-saving green production enterprise.Table: Green production projects of Joincare in 2024Company NameProject NameInvestment AmountResult
Jiaozuo Joincare
Anaerobic biogasreuse
RMB 1.79 million
Jiaozuo Joincare completed the biogas reuse project with a capacity of 4,000 m?/d.In this project, biogas produced in the anaerobic section of the industrial wastewaterworkshop is purified and used as fuel for RTO regenerative incinerators, meetingthe fuel needs of the two RTO incinerators of Joincare and Jiaozuo Livzon. An RTOconsumes approximately 365,000 m? of natural gas annually. The remaining part, afterheating hot water, is used to replace steam, saving 3,759.5 m? of steam per year.Installation of heatexchangers onblowers
RMB 66 thousand
Jiaozuo Joincare completed the project of installing heat exchangers on blowers. Heatat the outlet of aeration blowers is transferred through the heat exchanger to the high-concentration wastewater collected by the anaerobic system. As a result, the wastewateris heated up through a heat exchange with the hot air at the blower outlet. Whileincreasing the treatment capacity and efficiency of CASS tanks, the project reducessteam consumption. After being put into operation, the project has cut down the steamvolume used to heat the anaerobic system by 180 tonnes annually.NingxiaPharmaceutical
Energy savingproject of the hotwater system in theworkshop
RMB 1.53 millionwas invested by thethird party
Ningxia Pharmaceutical installed waste heat recovery units to recover heat generatedby air compressors in operation. Heat recovered as such is used for the water heatingsystem in workshops. Replacing the original method of steam heating, the project savesabout 6,000 tonnes of steam per year.
Livzon Hecheng
Photovoltaic powergeneration
RMB 1.8 million
Livzon Hecheng launched a photovoltaic power generation project. Adoptingmonocrystalline silicon solar cells as the device for photovoltaic power conversion,the project installs photovoltaic facilities on the rooftop of the parking lot and thewarehouse. Access systems are congured according to the site planning. Financed andconstructed by Livzon Hecheng, the project is expected to generate 500,000 kWh ofelectricity annually upon completion.Sichuan Guangda
Photovoltaic powergeneration
RMB 6 million wasinvested by the thirdparty
Sichuan Guangda pushed forward a photovoltaic power generation project to installphotovoltaic facilities on the rooftop of the vehicle shed and buildings at the plant.Financed and constructed by a third party with rate preferences for Sichuan Guangda,the project is expected to generate 2.17 million kWh of electricity annually uponcompletion.
9.4 Emission Management
Joincare abides by national and local laws and regulations such as the Law of the People’s Republic of China on Environmental ImpactAssessment, the Law of the People’s Republic of China on Prevention and Control of Soil Contamination, the Law of the People’s Republicof China on the Prevention and Control of Air Pollution and the Regulations on the Safety Management of Hazardous Chemicals. We strictlycontrol emissions and perform our environmental protection responsibilities. We have formulated policies such as the Safety and EnvironmentalManagement Manual and the Environmental Protection Management Assessment System in light of our own operating conditions. We alsorevised our environmental management policies in 2024, including the Hazardous Waste Management Policy, the VOCs Collection andTreatment Management System, and the Management Policy for Production Wastewater Discharge. In these policies, clear requirements areprovided concerning the classification method, monitoring method, disposal process and emission standard of all emissions. This ensures thatemission management is based on unied systems and standards.In addition, we conduct lifecycle management for the pollutant emission. All production subsidiaries of the Group have applied for a sewagedischarge permit in accordance with the law on the unified national platform. After obtaining the permit, they discharge in strict accordancewith the requirements within the validity period and firmly ensure the compliance of pollutant emission. Furthermore, we have formulated aself-monitoring plan in line with the environmental impact assessment requirements and sewage discharge permits. We hire qualified third-party testing agencies to monitor our waste gas, wastewater and noise regularly. Based on the monitoring results, we conduct self-inspectionand correction of non-standard behaviours, and strive to minimise the negative impact of our production on the environment, as part of ourenvironmental protection e?orts.
9.4.1 Waste Gas Management
Joincare devotes ongoing efforts to the management of waste gas emissions in accordance with laws and regulations, including the Law of thePRC on the Prevention and Control of Air Pollution. We have formulated and implemented waste gas management policies such as the VOCsCollection and Treatment Management System, the Boiler Waste Gas Emission Management System, and the Standard Operating Procedures forHigh-concentration Waste Gas Treatment Systems. The policies require all production subsidiaries to standardise the management process andensure the waste gas emission is up to standard. The production subsidiaries of the Group strictly implement waste gas management and takee?ective measures to minimise the impact of waste gas emissions on the environment based on their actualities.Digital Monitoring and ManualDetection of Waste Gas
Daily Detection and Feedback ofWaste Gas Concentration
Strengthening of WasteGas ManagementThe production subsidiaries haveinstalled online monitoring equipmentfor organised waste gas emissions anddetection equipment for fugitive wastegas emissions for teal-time monitoringof the waste gas pollution factors. Datais uploaded to the national automaticmonitoring and basic database systemfor key pollution sources in real-time.The production subsidiaries conductmanual detection of organised andfugitive waste gas emissions eachquarter pursuant to the requirementsof the waste discharge permit and theirself-monitoring plans. This practiceaims to advance efficient managementof the emissions.
In the daily inspection of environmentalprotection, the production subsidiariescheck the concentration detectionof environmental pollutants in theirproduction areas, the concentrationdetection of environmental pollutantsin key areas, the leakage problems inthe production areas, and the operatingstatus of the waste gas collectionand treatment facilities. In addition,they report the concentration ofenvironmental pollutants withinthe scope of their factories to theproduction units, demand that theitems that do not meet the requirementsbe corrected in a timely manner,and record the items that violate theenvironmental management policy andpunish those responsible.
The production subsidiaries conductprofessional and technical trainingfor waste gas management personnelto enhance their professional ability.The subsidiaries also acquire real-time updates on the progress ofeach production step by consistentlystrengthening communication betweenthe waste gas treatment departmentsand the production departments.
2024 Sustainability Report 09 Operating with Green Sustainability
To reduce harmful emissions from our operations, we carry out group-wide projects of emissions management improvement every year. EachJoincare’s production subsidiary continues to increase its investments in waste gas management and has achieved e?ective management of wastegas emissions by upgrading waste gas treatment equipment and process.Table: Major waste gas management and improvement projects of Joincare in 2024Company NameProject NameResult
Xinxiang Haibin
Inspection andmaintenance of the RTOsystem
Xinxiang Haibin inspected and maintained the RTO system. By replacing the ceramicregenerator and pall ring, the project enhanced the system performance. Upon completion,the average VOC emissions decreased by more than 60%, reducing the VOC content in thewaste gas.Membrane recovery
Xinxiang Haibin invested in a membrane recovery project that is expected to recycle 1,000tonnes of ethyl acetate (EA) per year, hugely reducing the concentration of organic solventsin waste gas emissions.Replacement with athree-in-one treatmentdevice
Xinxiang Haibin replaced the flat centrifuge with a three-in-one device and delineated aclosed treatment room to lessen the open operations and reduce the fugitive VOC emissionsfrom the workshop.Taitai Pharmaceutical
Upgrade of waste gastreatment facilities
Taitai Pharmaceutical introduced a one-stage activated carbon treatment cycle after theoriginal quality control waste gas treatment facility. By replacing the UV photodissolverof the injection moulding waste gas treatment facility with two-stage activated carbon, theproject greatly enhanced the treatment e?ciency.
Fuzhou Fuxing
Equipment upgrading andtechnical transformation
Fuzhou Fuxing constructed a low-temperature refrigeration system to recover the tail gas oforganic solvents in the workshop for low-temperature water recycling, reducing the amountof organic solvent tail gas discharged into the RTO. Through technical means such as low-temperature cooling and increasing the heat transfer area, while reducing the amount of tailgas, it can also save the usage amount of solvents, saving approximately RMB 3.5 millionin solvent costs every year.Gutian Fuxing
Upgrade of waste gastreatment facilities
Gutian Fuxing improved the waste gas treatment technique by means of adding proceduresand replacing facilities and equipment, further enhancing the waste gas treatment e?ciencyand e?ectively reducing pollutant emissions.
9.4.2 Wastewater Management
Joincare abides by laws and regulations such as the Water Law of the PRC and the Water Pollution Prevention and Control Lawof the PRC, and has established the wastewater management system and a series of standard operating procedures. By installingonline wastewater monitoring equipment at the effluent outlets of major wastewater discharge plants and networking withregulatory authorities, we monitor and share real-time chemical oxygen demand (COD), ammonia nitrogen, total nitrogen, totalphosphorus and other discharge data of treated wastewater, and urge all the production subsidiaries to meet the set standards forwastewater treatment and discharge.We regularly inspect and maintain the wastewater treatment and monitoring equipment to ensure the stable and e?cient operationof the wastewater treatment system. The production subsidiaries of the Group also upgrade the processes and equipment thatproduce wastewater and strive to reduce the discharge of wastewater. At the same time, we conduct regular training for operatorsof the wastewater treatment system and at the sewage stations to improve their management awareness and professional skillsand to ensure that wastewater management runs smoothly.To reduce the environmental impact of wastewater from our operations, we carry out group-wide wastewater managementimprovement projects every year. We decrease wastewater discharge, increase wastewater utilisation, and reduce theconcentration of pollutants in wastewater by improving wastewater treatment processes and upgrading wastewater treatmentfacilities. In this way, we continue to explore the potential for better wastewater management. At the same time, we continue totrack and review the progress of wastewater management improvement projects and the e?ectiveness of treatment to ensure thatour e?orts to reduce and manage wastewater emissions are fruitful.Table: Major wastewater management and enhancement projects of Joincare in 2024
Company NameProject NameResult
Jiaozuo Joincare
Maintenanceand renovationof wastewatertreatment facilities
Jiaozuo Joincare invested in the maintenance and renovation of wastewater treatmentfacilities. By renovating aeration plates, pipelines, sludge dischargers, reflux pumpsand other worn-out facilities in the wastewater workshop, Jiaozuo Joincare ensured atimely sludge discharge and a smooth wastewater reux, thus boosting the e?ciency ofwastewater treatment.Xinxiang Haibin
Renovation ofthe biochemicalwastewatertreatment system
Xinxiang Haibin invested to renovate the biochemical wastewater treatment system.By replacing the original aeration head and pipeline with a cyclone aerator, the projectincreased the oxygen dissolved in the aeration tank, thus enhancing the COD treatmente?ciency.
LivzonXinbeijiang
Construction of newsewage treatmentfacilities
The production of tobramycin consumes a large amount of water, elevating theammonia nitrogen concentration of the influent into the sewage station by 70 mg/L onaverage. In 2024, Livzon Xinbeijiang newly built two tanks for nitrogen and phosphorusremoval. The project aimed to optimise the wastewater denitrification effect and raisethe efficiency of ammonia nitrogen treatment, making sure that the ammonia nitrogencontent meets relevant standards after wastewater treatment.
Jiaozuo Hecheng
Improvementof wastewatertreatment processes
Jiaozuo Hecheng tackled the wastewater treatment technique, reducing the emission offluoride ions in the wastewater. This not only decreased the content of fluoride ions inthe workshop wastewater but also reduced the monthly consumption of quicklime by
16.5 tons and polyaluminium chloride by 60 tons. It generates an economic benefit of
approximately RMB 30,000 per month.
2024 Sustainability Report 09 Operating with Green Sustainability
9.4.3 Solid Waste Management
Joincare collects, stores, transports and disposes of wastes in strict accordance with the standards and regulations such as theCatalogue of Classified Management of Discharge Permits for Stationary Pollution Sources and the Standard for PollutionControl on the Non-hazardous Industrial Solid Waste Storage and Disposal Facility. Therefore, legal compliance is ensured insolid waste treatment. For hazardous waste, under the manifest system for transfer of hazardous waste, we transfer all such wastewe produce to qualied companies for rule-based disposal. And we deliver non-hazardous waste to qualied entities with whomwe have signed contracts for safe disposal.Adhering to the circular economy concept, we strictly control the discharge of solid waste in waste generation, reduction, reuseand harmless disposal links, with the aim of reducing our impact on the environment. The Group has set solid waste disposaltargets, which have been allocated to all subsidiaries. The subsidiaries are required to achieve a compliant disposal rate of 100%.In 2024, all subsidiaries achieved their solid waste disposal targets.To reduce waste discharge from our operations, we carry out group-wide waste management improvement projects every year.We classify waste to improve treatment e?ciency, introduce advanced environmental protection technology into production, andupgrade original production technology and formulations. We are monitoring the operation and treatment effects of solid wastemanagement improvement projects to ensure that our e?orts to reduce waste discharge are e?ective.Table: Major solid waste management and improvement projects of Joincare in 2024Company NameProject NameResult
Xinxiang Haibin
Intelligent hazardouswaste managementsystem
Xinxiang Haibin invested to install a set of intelligent hazardous waste managementsystem. By technical means of electronic weighbridges, labels and managementledgers, the system allowed for the intelligent management of the generation,storage, discharge, disposal of hazardous wastes. As such, Xinxiang Haibin achievedintelligent hazardous waste management from the source with a higher e?ciency.Hazardous wastereduction
To reduce hazardous waste, Xinxiang Haibin treated the wastewater separately.Part of the wastewater went directly to the evaporation boiler for evaporation andconcentration, and was then mixed for targeted treatment. The process reduced thehazardous waste by 40%, equivalent to more than 500 tonnes over 2023.
Fuzhou FuxingAlumina recycling
Fuzhou Fuxing carried out the alumina recycling project through experimentalcooperation with a third party. In this project, waste alumina is processed intoaluminum sulfate for use as a water treatment flocculant. This project is currentlyunderway. Once completed, it will reduce the amount of hazardous waste to bedisposed of by Fuzhou Fuxing and save disposal costs at the same time.
9.4.4 Noise Management
Joincare strictly abides by the Environmental Noise Pollution Prevention and Control Law of the PRC, Environmental NoiseEmission Standards for Industrial Enterprises Boundary, and other relevant laws and regulations. We equip the productionsubsidiaries with noise detectors and test the noise at the plant boundary every month to ensure that the noise during daytime/night is lower than the national emission limits. The production subsidiaries also actively optimise their production equipment,and try to reduce the impact of production noise on the environment by adding soundproof houses and nitrogen generatormu?ers.
Case
Noise control at workshops by Xinxiang Haibin
In 2024, Xinxiang Haibin invested RMB 300,000 toprohibit noise transmission by building soundproof panelsand rooms and eliminating noise from large refrigerationmachines at the production workshop. These effortshelped Xinxiang Haibin meet the noise control standardsfor workshops.
Noise reduction of large refrigeration machines
by Xinxiang Haibin
9.5 Resource Utilisation Management
Adhering to the concept of sustainable development in the whole process of production and operations, Joincare consistentlystrengthens resource use management and practices the concept of green development. We abide by the Water Law of the PRC,the Circular Economy Promotion Law of the PRC, and other relevant laws and regulations. We have implemented stringentmanagement requirements for water resources and materials. We also promote standardised and systematic managementmeasures, and work hard to improve resource utilisation rate in production and operations.
9.5.1 Water Resources Management
At Joincare, we attach great importance to water management. To conserve water and reduce water consumption, we implementa strict water management policy and carry out group-wide water management improvement projects. All our productionsubsidiaries are actively introducing and using advanced technologies and processes to conserve water and improve wateruse efficiency. We are strengthening the maintenance of various water-consuming equipment and facilities, investing in waterresource recycling projects, and promoting the recycling of reclaimed water and cooling water. These e?orts aim to reduce freshwater consumption and improve the reuse rate of water resources.
2024 Sustainability Report 09 Operating with Green Sustainability
Table: Major water-saving projects of Joincare in 2024Company NameProject NameResult
Jiaozuo Joincare
Recycling andutilisation of reclaimedwater
After repeated testing, analysis, and experimental verification, Jiaozuo Joincaresucceeded in recycling the water from the level-3 sedimentation tanks in the industrialwastewater workshops and the pickling wastewater from the rening plants. Throughcombined treatment, including classified collection, sedimentation and filtration,composite filtration, thorough removal of contaminants and secondary treatmentwith reverse osmosis membranes, the wastewater meets the standard for reuse. Afterbeing put into operation, the project recycles about 1,600 m? of water from the level-3sedimentation tanks and 1,400 m? of pickling wastewater per day, reducing the dailywastewater volume by about 3,000 m?.Xinxiang Haibin
Steam condensatereuse
Xinxiang Haibin launched a steam condensate reuse project, using steam condensatefor domestic use and irrigation. This saves 10,000 tonnes of water every year.
Fuzhou Fuxing
Utilisation ofreclaimed waterfrom vancomycinchromatography
Fuzhou Fuxing uses the ammonia washing water reclaimed through chromatographyfor acid washing of some decalcification columns and adsorption columns, while thereclaimed water has been used for ammonia washing. After the completion of thisproject, it can save an average of 80 tons of water per day.Recycling andutilisation of heavywater
Fuzhou Fuxing implemented a project to recycle the heavy water from waterproduction for preparing the chemicals to be used for wastewater treatment at sewagestations. The project is expected to recycle 100 tonnes of heavy water every day uponcompletion.
9.5.2 Material Utilisation Management
Following the “3R principles” of Reduce, Reuse and Recycle, Joincare makes every e?ort to implement the recycling policy andadvance a circular economy. We optimise the layout of the storage area for better material management. The packaging materialsand excipients are stored and managed by zone, layer and category to save storage space and prevent material loss during storage.We optimise the material transportation route to improve the utilisation of elevators and the efficiency of internal materialtransportation. All these practices help prohibit resource loss during transportation. To improve the product packaging designand product specifications, we have been recycling consumables such as corner strips and packing belts used for packaging thenished products to raise resource utilisation.
9.6 Biodiversity Conservation
Joincare pays great attention to the impact of its operations on biodiversity. We comply with the Law of the PRC on Preventionand Control of Soil Contamination, the Forestry Law of the PRC, the Law of the PRC on the Protection of Wildlife, theRegulations on Conversion of Farmland to Forests, the Opinions on Further Strengthening Biodiversity Protection, and otherrelevant laws and regulations. We also actively implement the UN Convention on Biological Diversity and promote biodiversityin many ways.We would identify environmental risk factors and hidden hazards before building factories. We meet the “ecological red lines”requirements and avoid operating in areas of high biodiversity value, such as those close to government-designated ecologicalreserves. At the same time, we encourage our production subsidiaries to conduct biodiversity assessments relevant to theiroperations to help protect endangered species and promote ecosystem balance. During the year, Joincare had no productionfacilities or operational sites located within ecological reserves or areas of high biodiversity value. None of the Group’sproduction activities, products or services had a signicant impact on ecosystem and biodiversity.
Case
Environmental protection practices in product packaging materials byJoincare
Joincare continues to optimise the product packaging design. To meet the market demand, we have unveiled moreenvironmentally friendly products:
? Taitai Pharmaceutical: Taitai Pharmaceutical has established company-wide standards for the selection ofpackaging materials by grade. According to the standards, metal products (with a recycling rate of more than 95%)and corrugated cardboard (with 100% FSC certication) are used to pack basic structural parts. The recycled EPEand high-density honeycomb paper are used as cushioning materials. Besides, the two thermoplastics for innerpackaging, i.e. biaxially oriented polypropylene (BOPP) and low-density polyethylene (LDPE), have been certiedto Global Recycled Standards (GRS).? Joincare Haibin: The package of Budesonide Suspension for Inhalation is designed with a collapsible colourbox, which significantly reduces the space for transportation and storage and lowers carbon emissions duringtransportation. The use of FSC-certified packaging materials ensures the sustainability of forest resources.Meanwhile, the product has obtained the Product Carbon Footprint Certicate.? Haibin Pharma: By optimising the specication of infusion bottles from 15 ml to 10 ml, Haibin Pharma reducesthe consumption of glass raw materials by 29.61 tonnes per year. The product packaging materials mainly includecorrugated paper, white cardboard, halo-butyl rubber closures and infusion bottles made of middle borosilicateglass. All of these are recyclable with a 100% usage of green materials.
2024 Sustainability Report 09 Operating with Green Sustainability
Joincare is committed to the role as a responsible corporate citizen. By virtue of our business and technical advantages, the Groupintegrates various resources into charitable and public welfare projects. As part of our contributions to society, we participate inindustry exchanges, support rural revitalisation, and facilitate community-level health activities.
SDGs in this section
Public Welfareand Charity
10.1 Promoting Industry Development
Joincare aims to become a pioneer in the healthcare industry. We actively participate in exchanges and cooperation with industryassociations and societies on cutting-edge industry technologies and trends, to promote the sustainable development of theindustry through joint e?orts.Table: Associations joined by Joincare
No.Associations
1Medical and Chemicals Technical Options Committee (MCTOC)2Guangdong Pharmaceutical Profession Association3Guangdong Bio-Pharmaceutical Innovation Technology Association4Shenzhen Biomedical Industry Alliance5Shenzhen Life Science and Biotechnology Association6China Pharmaceutical Industry Association
Professional Committee of Drug Manufacturing Quality Authorised Person of Guangdong PharmaceuticalAssociation8China Nutrition and Health Food Association9China Health Care Association10Guangdong Food Safety Society11Guangdong IP Protection Association12Guangdong Forensic Science Association13Shenzhen Forensic Science Association14Shenzhen Biomedical Industry and Education AllianceThe processes of R&D, production, and quality control of inhalation preparations, which are high-end dosage forms, haverelatively large difference from those of regular oral or injectable formulations. Dr. Jin Fang, General Manager of ShanghaiFrontier, a holding subsidiary of Joincare, as a member of the Chinese Pharmacopoeia Commission, takes the lead in theresearch project of formulating and revising national drug standards, namely “Revision of General Rules for 0111 InhalationPreparations”. She has participated in drafting multiple versions (the 2000 edition, the 2010 edition, the 2015 edition, andthe 2020 edition) of the general rules for inhalation preparations and related testing methods in the Chinese PharmacopoeiaCommission. Moreover, he has completed research projects organized by the Chinese Pharmacopoeia Commission, such as“Research on the Classication, Naming and Quality of Inhalation Preparations” and “Research on the Determination Method ofthe Inhalation E?cacy of Inhalants”, contributing to the continuous improvement of inhalation-related standards and regulations.Meanwhile, Joincare has participated in the compilation of the “On-site Inspection Guide for Inhalation Preparations”, which isled by the Guangzhou Institute of Respiratory Health and approved by the Centre for Food and Drug Inspection of the NationalMedical Products Administration. This effectively helps on-site inspectors better identify the risk control points of inhalationpreparations, improve the quality of on-site inspections, and comprehensively ensure the quality and safety of inhalationpreparations.
2024 Sustainability Report 10 Public Welfare and Charity
10.2 Promoting Health-based Welfare and Charity
Rooted in the healthcare industry, Joincare continues to do its part in inclusive chronic disease prevention and treatment,industrial assistance, and community health, striving to build a healthy and harmonious society. In 2024, Joincare donated aboutRMB 14.043 million to public welfare projects, including cash of nearly RMB 11.957 million and goods worth about RMB 2.086million.
10.2.1 Rural Revitalisation
Chronic Disease Prevention and TreatmentIn response to the national strategy of rural revitalisation and commonprosperity, Joincare, joined hands with the Group’s holding subsidiaryLivzon Group to carry on the long-term drug donation programme -“Access to Public Welfare for Chronic Diseases Prevention and TreatmentProgramme”. We provided long-term assistance to patients with financialdifficulties in remote areas who suffer from chronic diseases, such ashypertension, hyperlipidemia, cardiocerebral diseases and gastric diseases.We donated five drugs for treating chronic diseases, including PravastatinCapsules (普伐他汀钠胶囊), Amlodipine Besylate Capsules (苯磺酸氨氯地平胶囊), Valsartan Capsules (缬沙坦胶囊), Isosorbide MononitrateTablets (单硝酸异山梨酯片) and Bismuth Potassium Citrate Tablets (枸橼酸铋钾片), to reduce the medical burden of chronic diseases on poorfamilies and prevent patients from sinking back into poverty due to illness.Since late 2018 onwards, we have carried out the “Access to Public Welfare for Chronic Diseases Prevention and TreatmentProgramme” successively in areas including Chaotian District, Guangyuan City; Songpan County, Aba Zang Qiang AutonomousPrefecture; Jinkouhe District, Jiange and Pingwu Counties, Leshan City, Sichuan Province; Hunyuan, Guangling and LingqiuCounties, Datong City, Shanxi Province; Dongxiang, Tianzhu, Linze, Shandan, Huining and Su’nan Counties, Gansu Province;Xianghai National Nature Reserve, Jilin Province; Macun District, Jiaozuo City, Henan Province; Huangshan District,Huangshan City, Anhui Province; Suining County, Hunan Province; Fenyi County, Jiangxi Province; Jiangshan City, ZhejiangProvince; Chayu, Bomi, and Gerze Counties, Tibet Autonomous Region; Kashgar, Xinjiang Uygur Autonomous Region BaarinLeft Banner and Togtoh County, Inner Mongolia Autonomous Region; and Ziyuan County, Guangxi Zhuang AutonomousRegion. These are part of our efforts to benefit the public, protect the health of rural residents, revitalise rural areas, and build abeautiful and healthy China.
Including Cash of nearlyRMB
11.957
Million
Goods Worth aboutRMB
2.086
Million.
In 2024, Joincare Donated aboutRMB
14.043
Million
Donations for Rural Revitalisation
By the end of the reporting period, we had signed 31 agreements on the “Access to Public Welfare for Chronic DiseasesPrevention and Treatment Programme”, which covers 9 provinces and 4 autonomous regions, including 27 remote areas in needof aid, and benefiting 30,409 low-income patients with chronic diseases. In 2024, we donated RMB 1 million worth of chronicdisease medicines to low-income patients in each of the following regions:
Industry-based AssistanceThe Group provides industry-based assistance to empower the sustainable development of the rural economy using its industrialadvantages. Following the “Astragalus Root (黃芪) Industry Revitalisation” plan and by improving the model of “Company +Base” and “Company + Professional Cooperative”, Joincare’s holding subsidiary Livzon Group works to make the astragalusroot industry a pillar industry for rural revitalisation with reference to the local conditions.
Case
Voluntary medical services and drug donations for chronic diseasesTo raise public awareness of chronic diseases and improve prevention and treatment e?orts, as well as to solve medicine accessdifficulties at the grassroots level, the “Rural Revitalisation: Public Welfare for Chronic Diseases Prevention by Joincare andLivzon Group” and the Programme of Voluntary Medical Services and Drug Donations for Chronic Diseases in Jiangshan Citywas launched in the Xunli Village Hall, Nianbadu Town, Jiangshan City in May 2024. During the programme, we donated RMB1 million worth of medicines for cardiovascular, hypertension, hyperlipidemia, gastric diseases and other chronic diseases topeople nearby the Jiangshanxueling Nature Reserve. By providing voluntary medical services to local chronic disease patientsand villagers, we played a part in preventing and treating chronic diseases in remote areas.
In January 2024, the Group donated RMB 1 million worth of medicines to Bomi County, Tibet Autonomous Region;In May 2024, the Group donated RMB 1 million worth of medicines to Jiangshan City, Zhejiang Province;In July 2024, the Group donated RMB 1 million worth of medicines to Gerze County, Tibet Autonomous Region;In October 2024, the Group donated RMB 1 million worth of medicines to Shandan County, Gansu Province;In November 2024, the Group donated RMB 1 million worth of medicines to Su’nan County, Gansu Province.
Voluntary Medical Services and Drug Donations for Chronic Diseases
2024 Sustainability Report 10 Public Welfare and Charity
Case
Industry-based assistance to promote the development of the astragalusroot industry by Livzon Group
Since 2017, Datong Livzon Qiyuan Medicine Co., Ltd. (“Datong Livzon”) , a subsidiary of Livzon Group, hasbeen providing industry-based assistance to develop the astragalus root industry. Datong Livzon has independentlyor jointly constructed more than 20,000 mu of astragalus root planting bases over the past eight years. DatongLivzon regularly provides on-site technical guidance and GAP training to base managers and large-scale growersevery year. The company also conducts practical training on the traceability of Chinese herbal medicine. By theend of 2024, all bases had been included into the company’s GAP production management traceability system forChinese herbal medicines to share advanced technological resources with the company.This year, astragalus root bases of Datong Livzon planted about 1,000 mu of astragalus root, harvested about 3,500mu, and yielded about 709 tonnes of fresh astragalus root. In addition, Datong Livzon and the village committeeof Mazhuang Village, Guan’er Township, Hunyuan County, Datong City jointly launched the “Co-constructionbetween County and Corporate” project to build an astragalus root processing workshop in the local area. Havingbeen put into operation in 2023, the workshop provided employment opportunities to 120 local farmers in 2024.
10.2.2 Community Health
As an e?ort to continuously promote public welfare science popularization, we invite experts to host science popularization livebroadcasts and deliver public welfare lectures via Douyin, Weibo, WeChat and other media channels. By doing so, we aim toenhance the engagement and accessibility of publicity activities on health knowledge, thus working to popularise general healthknowledge and raise public awareness on this front.Popularization of Health Knowledge about Respiratory DiseasesNovember 20th, 2024 marked the 23rd World COPD Day, with the theme of “Know Your Lung Function”. Joincareactively responded to the call of the Global Initiative for Chronic Obstructive Lung Disease (GOLD) and the NationalHealth Commission. Relying on the “Respiratory Experts’ Views” platform, a series of wonderful and fruitful sciencepopularization and publicity activities were carried out. We extensively collaborated with nearly a hundred authoritativeexperts in the field of respiratory diseases across the country and launched the COPD Live Streaming Month event. Whileenhancing public awareness, we have also successfully popularized relevant content such as the pathogenesis of COPD, theidentication of early symptoms, treatment methods, and patients’ daily self-management, increasing the public’s attentionto this disease. The successful holding of this World COPD Day event fully demonstrates the powerful inuence and appealof the “Respiratory Experts’ Views” platform in the science popularization and publicity of respiratory system diseases. Ithas made positive contributions to enhancing the public's awareness of respiratory health and promoting the prevention andtreatment of COPD.
Poster for Word COPD Day
Popularization of Oral Health KnowledgeAt the 17th World Oral Health Day on 20 March 2024,we actively responded to the call of the World DentalFederation (FDI) and the Chinese StomatologicalAssociation. Specifically, in cooperation with 90 doctorsat home and abroad, we organised an enterprise self-mediamatrix to conduct knowledge publicity on platforms suchas Douyin, Weibo and WeChat. A total of 106 educationalvideos on oral health were released, accumulating morethan 150 million views across the network and reaching15 million oral ulcer patients. As a result, we significantlyincreased the public attention to and awareness of oralhealth, and effectively popularised knowledge on oralhealth maintenance.
Popularization of Oral Health Knowledge
Dissemination of Healthcare ConceptsIn 2024, we developed a cross-border partnership with gaga?,a well-known casual dining chain brand, to spotlight the workpressure and mental state of employed persons. We releasedco-branded Eagle’s American Ginseng products, placedadvertisements on Xiaohongshu, and encouraged users topost their product experiences, so as to disseminate healthcareconcepts. Related advertisements and postings harvestedfavourable achievements with over 30 million views.
Promotion Postings
Series of Science Popularization about Melasma
Popularization Video on Melasma of Women
From September to November 2024, we joined handswith Xinhuanet to invite experts and scholars fromthe College of Pharmaceutical Sciences, ZhejiangUniversity and Hangzhou Third People’s Hospital tolaunch a seminar on “2024 Chinese Women’s MelasmaRemoval Research Report”. The seminar aimed to helpChinese women solve melasma problems with scientificguidance. At the same time, we collaborated with 16scholars and doctors active in Douyin to post serialeducational videos on melasma, explaining the causes,traits, and internal and external treatment options for theissue. Viewed by more than 50 million women affectedby melasma, these videos advanced melasma educationand promoted inner nourishment with TCM.
2024 Sustainability Report 10 Public Welfare and Charity
Experts’ View on MenopauseMenopause is an unavoidable physiological stage for women. Tothis end, we cooperated with more than 60 nationally renownedexperts and scholars in gynaecology, endocrinology, psychology,nutrition, sports rehabilitation and other professions to deliver morethan 40 educational live broadcasts on WeChat official account,WeChat video account, Douyin, Xiaohongshu and other platforms.These e?orts helped us attract more than 300,000 subscribers acrossthe network. Besides, we held 3 offline public welfare lecturesto provide women with scientific and effective knowledge onmenopausal healthcare and psychological adjustment, which werewidely welcomed by women of the appropriate age.
Lecture of Experts’ View on Menopause
Case
Voluntary medical services and education activities for respiratory diseases
Joincare continued to join hands with major hospitals across the country to provide offline voluntary medical services andconduct patient education activities on respiratory diseases. By doing so, Joincare provided patients with free medicalconsultation and health education, thus raising public health awareness and popularising disease prevention and treatmentknowledge. At the event, a team of experts patiently offered free medical services to patients, carefully inquired about theirmedical histories and symptoms, thoroughly provided detailed physical checkups, and expertly gave professional diagnosis andtreatment advice. Meanwhile, Joincare carried out diversied diagnostic and therapeutic activities on site, including pulmonaryfunction tests, CT report interpretation, e?ective sputum evacuation, and respiratory rehabilitation training. In 2024, a total of 275hospitals participated in World Asthma Day, more than 300 hospitals participated in World Bronchiectasis Day, and 328 hospitalsparticipated in World COPD Day events, respectively, altogether serving 18,060 patients.
Voluntary Medical Services on World COPD Day
10.3 Engaging in Public Welfare
We act in line with the corporate culture of “Caring and Helping People, Pragmatic Public Welfare”. We continue to give full playto the advantages of the volunteer service team and call on more employees to join it. We carry out volunteer services in a varietyof areas such as community volunteer work, public welfare blood donation, and biodiversity conservation to spread care andkindness.
Case
Caring for children with autismIn April 2024, the Group’s volunteer serviceteam visited the Golden Rehabilitation Centrefor Children with Autism in Nanshan District,Shenzhen City. The team learnt in detail aboutthe rehabilitation of autistic children in the centre,interacted with them through caring games, andbrought the children gifts to convey warmth andcare. They also called on the society to delivermore caring and support to autistic children.
Case
Caring for the elderly group
Nowadays, the elderly’s health and well-beinghave gained increasing attention. The Group’svolunteer service team participated in theactivities organised by the local community tocare for the elderly population for many times,bringing fresh fruits and vegetables, healthcareproducts and other supplies to the aged group, andcreating a joy atmosphere by chatting and playingchess with them. While providing companionshipand assistance to the elderly, the team promotedthe spirit of respecting and caring for the seniorpopulation for building a harmonious community.
Community Welfare
Caring Activity
Bringing Supplies to the Elderly Group at the Community
2024 Sustainability Report 10 Public Welfare and Charity
Biodiversity ConservationWith a strong sense of social responsibility, Joincare takes the initiative to provide nancial support to the Paradise InternationalFoundation and other social welfare organisations. It serves as one of our rm strides towards biodiversity conservation. Lookingahead, we will increase our investment and unite more forces to facilitate the protection of diversified biological resources onearth.
Case:
Blood donation by employeesIn 2024, the Group involved employees in agroup blood donation activity at Yantian Haibin.We conveyed health guidelines before blooddonation, offered employees sugar water andpastries for energy replenishment, and measuredblood pressure after the donation. The Groupencouraged employees to actively participatein the activity while safeguarding their physicalhealth, which reflected our sense of socialresponsibility and contribution to medicalemergency care.
Blood Donation Activity at Yantian Haibin
Volunteer Activities
Case:
Support for the Paradise International Foundation
The Paradise International Foundation is a non-profit environmental protection organisation focusing on naturereserves. The Foundation manages five reserves with a total area of 422 square kilometres in four provinces ofSichuan, Hubei, Anhui and Zhejiang. In 2024, the Group donated RMB 1 million to the Paradise InternationalFoundation. In support of the procurement of necessary field gear and geographic information equipment, thedonation facilitated ecological conservation activities such as wildlife surveys and re protection and forest patrolsin reserves such as Laohegou in Sichuan Province and Taiyangping in Hubei Province.
11 Appendix
11.1 Index of the Guidelines No. 14 of Shanghai Stock
Exchange for Self-Regulation of Listed Companies—Sustainability Report (Trial)
TopicArticleSection in the report
Climate change tacklingArticle 21-289.2 Addressing Climate ChangePollutant dischargeArticle 309.4 Emission ManagementWaste disposalArticle 319.4 Emission ManagementEcosystem and biodiversity protectionArticle 329.6 Biodiversity ConservationEnvironmental compliance managementArticle 339.1 Environmental Management SystemEnergy usageArticle 359.3 Energy ManagementUsage of water resourcesArticle 369.5 Resource Utilisation ManagementCircular economyArticle 379.5 Resource Utilisation ManagementRural revitalizationArticle 3910.2 Promoting Health-Based Welfare and CharityContributions to the societyArticle 4010 Public Welfare and CharityInnovation-drivenArticle 427.1 Focusing on R&D and InnovationEthics of science and technologyArticle 436.1 Quality Management SystemSupply chain securityArticle 456.6 Supply Chain ManagementEqual treatment to small and medium-sized enterprisesArticle 46
Since the Group does not fall within the scope of themandatory disclosure entities listed in Article 46, noresponse is provided this year.Safety and quality of products and servicesArticle 4706 Safeguarding Product QualityData security and customer privacy protectionArticle 485.4 Information SecurityEmployeesArticle 5008 Talent ManagementDue diligenceArticle 528.1 Protection of Rights and Interests of EmployeesCommunications with stakeholdersArticle 534.2 Sustainability StrategyAnti-commercial bribery and anti-corruptionArticle 555.3 Integrity and Business EthicsAnti-unfair competitionArticle 565.3 Integrity and Business Ethics
2024 Sustainability Report 11 Appendix
11.2 Data List of Key Performance Indicators
Scope of environmental data disclosure: the manufacturing enterprises of Joincare.
Disclosure of major pollutants/emissions and related emission data according to the production characteristics of enterprises.
Among other hazardous waste, high-level radioactive waste is included. This year, the amount of high-level radioactive waste is zero.10 The intensity in 2024 was calculated based on RMB 10,000 of output value.
Sustainability indicatorUnit2022202320241 Environmental
1.1. Emissions
Waste Water EmissionTonne11,110,513.912,092,149.012,154,327.4Chemical Oxygen Demand (COD
Cr)Tonne1,029.4995.21,070.4Ammonia NitrogenTonne101.1113.6112.9VOCsTonne55.169.087.9NOX
Tonne107.290.1147.3SO
Tonne33.534.684.8ParticulatesTonne19.216.015.9Hazardous and Non-hazardous WasteHazardous WasteTonne6,410.16,884.25,968.3Divided by Category
Pharmaceutical Wastes and MedicineWastes
Tonne3,352.93,792.23,247.6Other Hazardous Wastes
Tonne3,057.13,092.02,720.7Divided by ProcessingMethod
Total Hazardous Waste Recycled/Reused
Tonne/742.2727.1Total Hazardous Waste DisposedTonne/6,141.95,965.5Intensity of Hazardous Waste
Tonne /RMB 10,0000.0030.0030.003Industrial WasteTonne151,323.1141,539.1141,807.0Industrial Waste (Recyclable)Tonne/48,400.033,598.9Industrial Waste (Non-Recyclable)Tonne/93,139.1108,208.1Intensity of Industrial Waste
Tonne /RMB 10,0000.080.070.08
Greenhouse Gas EmissionsTotal Greenhouse Gas EmissionsCO
equivalent (in tonnes)1,037,613.6 1,033,000.91,026,672.1Intensity of Greenhouse Gas Emissions
CO
equivalent (in tonnes)/RMB 10,000
0.52 0.51 0.60
Sustainability indicatorUnit202220232024Direct Greenhouse Gas Emissions (Scope 1)
CO
equivalent (in tonnes)202,473.9 162,677.0 197,854.4Indirect Greenhouse Gas Emissions (Scope 2)
CO
equivalent (in tonnes)835,139.7 870,323.9 828,817.7
1.2 Use of Resource
Total Energy ConsumptionGasolineLitre251,528.5387,425.5260,932.4DieselLitre196,825.5261,122.8235,846.7CoalTonne88,244.266,894.583,607.5Natural Gas10,000 cubic meters858.31,093.9887.5Liqueed Petroleum GasTonne6.83.70.6Purchased SteamTonne932,444.11,605,949.6973,876.7Purchased ElectricityMWh959,454.9989,071.41,000,133.8Biomass FuelsTonne/1,004.03,668.3Direct Energy ConsumptionMWh611,129.2506,554.7 601,772.7Indirect Energy ConsumptionMWh1,682,747.51,787,199.0 1,762,987.5Renewable Energy ConsumptionMWh1,320.85,708.2 17,809.1Non-renewable Energy ConsumptionMWh2,292,555.92,288,045.4 2,346,951.1Total Energy ConsumptionMWh2,293,876.72,293,753.6 2,364,760.2Intensity of Total Energy Consumption
MWh/RMB 10,0001.11.1 1.4Water Consumption
Total Water Consumption10,000 tonnes1,300.41,426.51,388.6Intensity of Total Water Consumption
Tonne /RMB 10,0006.57.18.1Recycled Water Volume10,000 tonnes13.89.211.0
Packaging Material UsedPackaging Material UsedTonne14,570.69,236.314,133.1Intensity of Packaging Material Used
Tonne/RMB 10,0000.00730.00460.0083
Scope 1 greenhouse gas (“GHG”) emissions are mainly derived from direct GHG emissions from the consumption of fossil fuels in the company'soperations/production processes (e.g. gasoline, diesel, natural gas, etc.), and the formula used is: CO
emissions from fossil fuel combustion = fuelconsumption × low level heat generation × carbon content per unit of calorific value × fuel carbon oxidation rate × 44/12. The emission factor and thecalculation refer to the Guidelines for Accounting and Reporting of Greenhouse Gas Emissions from Non-Industrial Enterprises (Trial) (工业其他行业企业温室气体排放核算方法与报告指南（试行）).
Scope 2 GHG emissions are mainly derived from indirect GHG emissions from purchased electricity and steam consumed by the company's operations/production processes, calculated with reference to the document “Appendix 2: Reporting Guidance on Environmental KPIs” of the Hong Kong StockExchange. In 2022, the power emission factor adopts the grid emission factor 0.5810 tCO
/MWh in the Corporate Greenhouse Gas Emission AccountingMethodology and Reporting Guide for Power Generation Facilities (企业温室气体排放核算方法与报告指南发电设施) (Huan Ban Qi Hou [2021]No. 9). In 2023, the power emission factor adopts the grid emission factor 0.5703 tCO
/MWh in the Notice on the Management of Greenhouse EmissionReporting for Rnterprises in the Power Generation Industry from 2023 to 2025 (关于做好2023—2025年部分重点行业企业温室气体排放报告与核查工作的通知). In 2024, the power emission factor adopts the grid emission factor 0.5366 tCO
/MWh in the Announcement on the Release of the 2022Carbon Dioxide Emission Factor for Electricity (关于发布2022年电力二氧化碳排放因子的公告).
2024 Sustainability Report 11 Appendix
Sustainability indicatorUnit202220232024
2. Social Responsibility
2.1 Employment
Number of Employees: By Gender, Age Group, Geographical Region and Job LevelNumber of EmployeesPerson14,11614,36514,350Gender
MalePerson7,5317,7887,718FemalePerson6,5856,5776,632Age
30 and belowPerson5,0264,9004,67831-49Person8,2048,5368,59050 and abovePerson8869291,082Geographical Region
Chinese MainlandPerson14,09714,34814,339Hong Kong, Macao and Taiwan, ChinaPerson652ForeignersPerson13129
Job Level
President and Vice President (ExecutiveManagement)
Person/1216General Manager Level and above (SeniorManagement)
Person/107119Director LevelPerson/252264Manager LevelPerson/1,1431,185Other EmployeesPerson/12,86312,782Diversity of EmployeesNumber of Women in Executive ManagementPerson/24Share of Women in Executive Positions%26.716.725.0Number of Women in Senior Management Person/3134Share of Women in Senior Management Positions%/29.028.6Share of Women in Management Positions%34.235.437.0Share of Women in Management Positions in Revenue-generatingFunctions
%28.827.531.6Share of Women in STEM-related Positions%55.553.751.9Number of Ethnic Minority Employees
Person784789807Hiring
Total Number of New Employee HiresPerson4,3513,9993,105
13 The largest three ethnic minorities of Joincare’s workforce are Hui (1.79%), Zhuang (1.25%) and Miao (0.48%), and the shares of Hui,Zhuang and Miao in the management are 0.32%, 0.76% and 0.06%.
Sustainability indicatorUnit202220232024
Number of New Employee Hires by Gender and Age Group
Gender
MalePerson2,3262,3711,734FemalePerson2,0251,6281,371Age
30 and belowPerson2,6642,4341,87431-49Person1,6641,5461,22150 and abovePerson231910Percentage of Open Positions Filled by Internal Candidates (InternalHires)
%14.418.928.2Percentage of Internal Hires by Gender and Age GroupGender
Male%54.155.757.8Female%45.944.342.2Age
30 and below%27.934.136.731-49%70.562.858.550 and above%1.63.14.8
Years Employed by the Company
Average Years Employed by the Company for Male EmployeesYear/Person8.27.48.5Average Years Employed by the Company for Female EmployeesYear/Person6.46.36.7Group’s Turnover Rate
Overall Employee Turnover Rate%121210Including: Active Employee Turnover Rate%121210Employee Turnover Rate by Gender, Age GroupGender
Male%101110Female%111410Age
30 and below%13161431-49%910750 and above%643Employee Engagement SurveyEmployee Engagement%879090
14 In order to better demonstrate the Group’s human resource management and ensure the consistency of the calculation of internal managementand external disclosure, the calculation of the turnover rate directly adopted the methodology used by the Group’s human resources management,i.e. the number of employee resigned was equal to the number of permanent employees who voluntarily resign.
2024 Sustainability Report 11 Appendix
Sustainability indicatorUnit202220232024
2.2 Health and Safety
Number of Work-related Injuries
Number of Work-related FatalitiesPerson000Days Lost due to Work-related InjuriesDay21498781.5Lost-Time Injury Frequency Rate (LTIFR)
Number of Injuries/Million Hours Worked
0.250.160.37
Number of Work-related Fatalities for ContractorsPerson000Days Lost due to Work-related Injuries - ContractorsDay000Lost-Time Injury Frequency Rate (LTIFR) - Contractors
Number of Injuries/Million Hours ofWorks
2.3 Training and Development
Total Training Percentage for Employees%/10099Total Training Hours for EmployeesHour895,409975,8341,345,002Training Hours for Male EmployeesHour474,502531,945728,915Training Hours for Female EmployeesHour420,908443,889616,087Average Training Hours per EmployeeHour/Person63.467.994.7Average Training Hours per Employee by Gender and Age GroupGender
MaleHour/Person63.068.395.4FemaleHour/Person63.967.593.8Age
30 and belowHour/Person63.385.2123.731-49Hour/Person63.758.579.150 and aboveHour/Person61.663.591.9Average Training Hours of Employees in Management TrainingHour/Person/19.019.6Average Training Hours of Employees in Leadership TrainingHour/Person/27.323.1Percentage of Successful Succession/Promotion to ManagementPositions
%/14.515.2Average Amount Spent per Employee on TrainingRMB/Person323.7406.9336.2
Sustainability indicatorUnit202220232024
2.4 Product Responsibility
Percentage of Total Products Sold or Shipped Subject to Recalls for Safety and Health ReasonsPercentage of Such Products to Total Products Sold /Shipped%000Number of Products and Service Related Complaints ReceivedProduct-related ComplaintsTime92147108Medication Queries
Time20175,221
2.5 Business Ethics
Number of Brought and Concluded Legal Cases Regarding CorruptPractices
Case000Number of Breaches on Conicts of InterestCase000Number of Breaches on Money Lanudering or Insider trading Case000Number of Breaches on Customer Privacy Data Case000Number of Breaches on Discrimination or Harassment Case000
2.6 Public Welfare Projects
Financial DonationRMB 10,000569.91,976.2 1,195.7Value of Donated GoodsRMB 10,000641.8 622.3208.6Investment in Rural RevitalizationRMB 10,000/
196.1
222.3
15 The purpose of medication querie is to ensure that patients can use medications safely and e?ectively, while improving their satisfaction withmedication use and their quality of life. In 2024, the Group adjusted and optimized the statistical caliber for medication queries.
2024 Sustainability Report 11 Appendix