For the Health For the FutureCONTENTS

01 The Report at a Glance........ 4

02 Chairman’s Statement ......... 6

03 About Joincare ......................... 8 04 S.. 16

3.1 Group Overview ................................. 17

3.2 Organisational Structure ................ 12 4.. 18

3.3 Corporate Culture ........................... unity

Management ......................................... 23

3.4 Key Performance .......................... 13

4.4 Support for United Nations

3.5 Honours ........................................ 14

Sustainable Development Goals .......... 26

05 Responsible Governance ........ 30 06 Safeguarding Product Quality 40

5.1 Compliance Governance ................ 31 6.1 .. 41

5.2 Carrying Forward the Party-Masses 6.2 Quality .. 48

Spirit ............................................. 34

6.3 Quality Training for Employees ..... 52

5.3 Integrity and Business Ethics ......... 35

6.4 Intellectual Property Rights

5.4 Information Security ..................... 39 .. 54

6.5 Protection of Customer Rights and

Interests .......................................... 56

6.6 Supply Chain Management ............ 6007 Acce.. 89

7.1 Focusing on R&D and Innovation . 68 8.1 Protection of Rights and Interests of

Employees .......................................... 90

7.2 Paying Attention to Rare Diseases

Treatment .......................................... 94

7.3 Improving Product Availability ...... 76 8.3 Occupational Health and Safety ... 106

7.4 Improving Product Affordability .... 79

7.5 Improving Healthcare ................... 82

Operating with Green

09 Sustainability ..........................113 10. 133

9.1 Environmental Management System .114 10.1 Promoting Industry Development .134

9.2 Addressing Climate Change ..........118 10.2 Plfare

and Charity ....................................... 135

9.3 Energy Management .................... 124

10.3 Engaging in Public Welfare ....... 140

9.4 Emission Management ................. 126

9.5 Resource Utilisation Management 130

9.6 Biodiversity Conservation ........... 132

11 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 .......................................lance

01 The Report at a Glance

Overview

Since 2018 Joincare Pharmaceutical Group Industry Co. Ltd. (Stock Code: 600380) has consecutively issued corporate social

responsibility (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 aspects

of fulfilling social responsibility managing environmental sustainability and corporate governance from a more professional

perspective. The report covers the period from 1 January 2024 to 31 December 2024. In view of the continuity and comparability

of certain data some contents of this report may be extended or traced back to other periods where applicable.Scope of the Report

The report covers Joincare and its wholly-owned subsidiaries and holding subsidiaries which is consistent with the scope of the

consolidated financial statements in the annual report.Preparation Basis

This report is prepared mainly in accordance with the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of

Listed Companies—Sustainability Report (Trial) and the Corporate Sustainability Disclosure Standards—Basic Standards (For

Trial Implementation) and meanwhile refers to the Environmental Social and Governance Reporting Code published by the

Hong Kong Stock Exchange. To ensure the completeness materiality authenticity and balance of the content the preparation of

this report has gone through a systematic set of procedures including identifying key stakeholders identifying and prioritising

material issues determining the scope of this report collecting relevant materials and data reviewing the data and preparing the

report based on the information gathered.Definitions

For 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 several

subsidiaries of Joincare. Moreover the full names and abbreviations of the subsidiaries used in the report are listed below:

Company Name Abbreviation

Shenzhen Haibin Pharmaceutical Co. Ltd. Haibin Pharma

Xinxiang Haibin Pharmaceutical Co. Ltd. Xinxiang Haibin

Shenzhen Taitai Pharmaceutical Co. Ltd. Taitai Pharmaceutical

Jiaozuo Joincare Bio Technological Co. Ltd. Jiaozuo Joincare

Joincare Haibin Pharmaceutical Co. Ltd. Joincare Haibin

Shanghai Frontier Health Pharmaceutical Technology Co. Ltd. Shanghai Frontier

Livzon Pharmaceutical Group Inc. Livzon Group

Sichuan Guangda Pharmaceutical Manufacturing Co. Ltd. Sichuan Guangda

Shanghai Livzon Pharmaceutical Manufacturing Co. Ltd. Shanghai Livzon

4Company Name Abbreviation

Livzon Group Livzon Pharmaceutical Factory Livzon Pharmaceutical Factory

Livzon Group Limin Pharmaceutical Manufacturing Factory Livzon Limin

Zhuhai Livzon Diagnostics Inc. Livzon Diagnostics

LivzonBio Inc. LivzonBio

Zhuhai Livzon Microsphere Technology Co. Ltd. Livzon Microsphere

Livzon Group Xinbeijiang Pharmaceutical Manufacturing Inc. Livzon Xinbeijiang

Gutian Fuxing Pharmaceutical Co. Ltd. Gutian Fuxing

Jiaozuo Livzon Hecheng Pharmaceutical Manufacturing Co. Ltd. Jiaozuo Hecheng

Livzon Group (Ningxia) Pharmaceutical Manufacturing Co. Ltd. Ningxia Pharmaceutical

Zhuhai FTZ Livzon Hecheng Pharmaceutical Manufacturing Co. Ltd. Livzon Hecheng

Livzon Group Fuzhou Fuxing Pharmaceutical Co. Ltd. Fuzhou Fuxing

Data Sources and Reliability Statement

Data and cases disclosed in this report are derived from official documents statistical reports relevant public information

and internal reporting documents. Joincare guarantees that this report does not contain any false representation or misleading

statement and assumes liability for the authenticity accuracy and completeness of this report.Confirmation 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 April

2025.

Access and Response to the Report

This report can be accessed or downloaded from the official website of the Shanghai Stock Exchange (www.sse.com.cn) and our

official 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 Statement

This report contains forward-looking statements regarding Joincare's future sustainability strategy objectives and plans. These

statements are grounded in the Group's current judgments and expectations. However the actual outcomes may vary owing to

significant 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 significance

or financial impact (or potential impact) of that information. To obtain a more comprehensive understanding of our financial

performance and operations please refer to our annual report and the various announcements issued on the website of the

Shanghai Stock Exchange (www.sse.com.cn).This report is originally written in Chinese and this English version is for stakeholders’ reference only. Should ambiguities arise

between the two versions the Chinese version shall prevail.

52024 Sustainability Report 02 Chairman’s Statement

02 Chairman’s Statement

Dear stakeholders and friends

Looking back on 2024 the pharmaceutical market has sustained its growth momentum with drug innovation driving

transformation. The R&D environment has been continuously optimised and the regulatory framework has become

increasingly robust. In response to emerging industry trends and opportunities we remain committed to our mission

of “For the health For the future”. By prioritising technological innovation and clinical needs we are accelerating

our technological transformation to foster development and break new ground.The Group places paramount importance on sustainability consistently ranking leading positions in multiple ESG

ratings. 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 both

domestic and global capital markets’ recognition of our sustainable development management practices.Innovation as the Priority Jointly Pursuing High-Quality Development

The 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 pharmaceutical

products 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 for

production (i.e. NDA); the TSLP monoclonal antibody an innovative GSNOR inhibitor and a new dual-target drug

MABA advanced to Phase II clinical trials; the Nav 1.8 inhibitor for analgesia and a PREP-targeted oral medication

received approvals for clinical trials. To date Joincare has built a pipeline of over 20 innovative drugs spanning

respiratory 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. By

integrating cutting-edge AI methodologies with molecular science we enhance efficiency and quality across

critical R&D stages such as molecular discovery pharmaceutical research and clinical trials. Upholding the

quality management concept of high standards and stringent requirements we apply intelligent manufacturing

technologies 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 an

intelligent production network covering multiple provinces nationwide. Furthermore AI applications extend to

internal operations including marketing and sales. These efforts continuously promote the Group’s high-quality and

sustainable 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 dedicated

to 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

6providing tailored training courses across all levels and roles and implementing scientific remuneration and incentive

mechanisms 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 CooperationResource Sharing and Mutual Benefit”. Our Code of Conduct for Suppliers clearly outlines ESG requirements for

suppliers. We conduct regular supplier audits and assessments and fully support their capacity building. We spare no

effort to empower the development of suppliers through training exchanges and cooperation.Responsibility as the Foundation Co-Creating a Sustainable Future

As a responsible corporate citizen the Group proactively fulfils our main responsibility in environmental

governance and climate change by assessing the climate-related risks facing our business and implementing targeted

countermeasures. 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 carbon

neutrality across the entire value chain by 2055.The Group actively responds to the nation’s call to contribute to all-around rural vitalisation. We persistently

implement 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 effectively alleviating the financial burden of low-income families and

preventing poverty caused or exacerbated by illness. We systematically organise health-related and education-based

public welfare activities to disseminate knowledge of daily health. We also actively engage in community welfare

campaigns 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 pharmaceutical

sector uphold our societal responsibilities and strive tirelessly for the advancement of human health.Chairman: Zhu Baoguo

April 24 2025

703

About Joincare3.1 Group Overview

Chemical Health care The business scope of Joincare

pharmaceuticals products

covers multiple areas

Diagnostic reagents and

equipment

Biologics

Traditional Chinese

Chemical active pharmaceutical medicine (TCM) drugs

ingredients (APIs) and intermediates

The Group has strong R&D capabilities and internationalized R&D concept in the fields of chemical pharmaceuticals traditional

Chinese medicine biologics diagnostic reagents and healthcare products. In recent years with innovation-driven as the core

development strategy the Group has efficiently established a highly promising R&D pipeline of innovative products focusing

on important areas such as respiratory pain management gastroenterology assisted reproduction and neuropsychiatry. The

continued transformation and commercialization of these innovative products will further enhance the Group' s product portfolio

and business layout thereby strengthening its core competitiveness.

92024 Sustainability Report 03 About Joincare

Table: Main Products of the Group

Chemical Pharmaceuticals

1.Respiratory

健可妥丽舒同雾舒健可畅

(Tobramycin Inhalation (Levosalbutamol Hydrochloride (Budesonide Suspension for (Salmeterol Xinafoate and Fluticasone

Solution) Nebuliser Solution) Inhalation) Propionate Powder for Inhalation)

2. Gastroenterology

壹丽安壹丽安丽珠得乐丽珠维三联

(Bismuth Potassium (Bismuth Potassium Citrate Tablets/

(Ilaprazole Sodium for (Ilaprazole Enteric-

Citrate Tablets) Tinidazole Tablets/Clarithromycin

Injection) Coated Tablets)

Tablets)

3. Gonadotropic hormones 4. Psychiatry 5. Anti-infection

贝依瑞必乐丽福康

(Leuprorelin Acetate (Fluvoxamine Maleate Tablets) (Voriconazole for Injection)

Microspheres for Injection)丽申宝康尔汀倍能

(Urofollitropin for Injection) (Perospirone Hydrochloride Tablets) (Meropenem for Injection)

10Drugs for humans Veterinary drugs

Chemical APIs and 7-ACA Phenylalanine Milbemycin Oxime

intermediates Meropenem Trihydrate Vancomycin Hydrochloride and Moxidectin

Mevastatin Daptomycin

Acarbose Ceftriaxone

TCM drugs

Cold medicine Anti-tumour

Anti-tumour and Anti-viral Granules Shenqi Fuzheng Injection

cold medicine

Diagnostic reagents and equipment Health care products and OTC

Mycoplasma pneumoniae IgM

Antibody Test (Colloidal gold Taitai Oral Liquid

method)

Antinuclear Antibody Test

Kit (17) (Magnetic Barcode

Immunofluorescence) Jingxin Oral Liquid

Biologics

Eagle’s American

Ginseng Tea安维泰

(Tocilizumab Injection)

Dexamethasone

丽康乐 Acetate Adhesive

(Mouse Nerve Growth Tablets

Factor for Injection)

112024 Sustainability Report 03 About Joincare

3.2 Organisational Structure

Organisational Structure of

Joincare

Shareholders’ Meeting

Strategy and Risk

Management Committee

Board of Supervisors

Remuneration Committee

Board of Directors Nomination Committee

Office of the Board Sustainable Development

of Directors Committee

Audit Committee

CEO

12

Risk Management Department

Sales Management Centre

Production Management Centre

R&D Management Centre

Integrated Management Centre

Financial Management Centre3.3 Corporate Culture

Since the establishment in 1992 Joincare has

constantly been focusing on the field of healthcare

always staying true to its original aspiration in its

ongoing inheritance and innovation. Gradually wehave formed a corporate mission - “For the healthFor the future”. Along this journey we always act in

the interests of patients and focus on safeguarding Mission

human life and health. We take scientific and

technological innovation as the strategic foundation

adhere to the innovation-driven strategy and carefully For the health For the futureconceive a new vision of “Diligently make high-quality drugs and innovative drugs”. In addition

we actively and continuously contribute to building

a community with a shared future for the public.Even while focusing on business development wetake “Putting people first Valuing workmanship and Core valuesquality Pursuing innovation and truth Promoting Vision Putting people firstcooperation and sharing” as core values. We consider Valuing workmanship and

the quality of products the training of talents and qualityDiligently make high-

the strength of R&D of the utmost importance Pursuing innovation and truth

thereby advocating the coexistence of the humanistic quality drugs and Promoting cooperation and

spirit and the scientific spirit and actively assuming innovative drugs sharing

obligations and responsibilities for the development

of human health.

3.4 Key Performance

During the reporting period Joincare achieved total revenues of RMB 15.619 billion achieved net profits attributable to shareholders of the

listed company of RMB 1.387 billion and achieved net profit attributable to shareholders of the listed company after extraordinary gain or loss

of RMB 1.319 billion.At the same time the Group has been actively undertaking corporate social responsibilities and constantly creating social value. In 2024 the

Group generated tax revenues for the government of RMB 1.982 billion paid RMB 2.474 billion in salary to employees distributed dividends

and paid interest worth RMB 1.501 billion to banks and other creditors donated funds and goods totalling RMB 14.0428 million to society.Net profits attributable to

Total revenues shareholders of the listed company Tax revenues for the government

RMB 15.619 billion RMB 1.387 billion RMB 1.982 billion

Salary to employees Donated funds and goods

RMB 2.474 billion RMB 14.0428 million

132024 Sustainability Report 03 About Joincare

3.5 Honours

Date of issue Awards & Honours Issued by

Shenzhen Patriotic Health Campaign Committee

Public Hygiene and Health Commission of

Shenzhen Municipality Industry and Information

Technology Bureau of Shenzhen Municipality

Ecology and Environment Bureau of Shenzhen

January 2024 Shenzhen Healthy Enterprises in 2023

Municipality Market Regulation Bureau of

Shenzhen Municipality Shenzhen Federation of

Trade Unions Shenzhen Municipal Committee of

the Communist Youth League of China Shenzhen

Women's Federation

Special Contribution Award and China Red Cross

March 2024 Red Cross Society of China

Fraternity Medal

Renowned Enterprise's Sincere Care Warms Bomé People's Government of Bomê County Tibet

March 2024

County Good Medicines of Livzon Protect Health Autonomous Region

Enterprise Donates Medicines to Protect Health People's Government of Tuoketuo County Inner

May 2024

Chronic Diseases in Remote Areas Get Improved Mongolia Autonomous Region

Care for Special Children and Practice the Spirit of Jinsenianhua Special Children Intervention Center

April 2024

Public Welfare Nanshan District Shenzhen

"Green Channel" Enterprise in Nanshan District People's Government of Nanshan District

June 2024

Shenzhen Shenzhen

Ranked 47th in the Top 100 of China's Yaozh.com Organizing Committee of China

July 2024 Comprehensive Pharmaceutical R&D Strength Pharmaceutical R&D * Innovation Summit China

Ranking in 2024 Pharmaceutical Industry

Yaozh.com Organizing Committee of China

Ranked 25th in the Top 100 of China's Chemical

July 2024 Pharmaceutical R&D * Innovation Summit China

Pharmaceutical R&D Strength Ranking in 2024

Pharmaceutical Industry

Selected for the Sustainability Yearbook (China

July 2024 S&P Global

Edition) 2024

Renowned Enterprise's Loving Care Warms

Health Commission of Gêrzê County Tibet

July 2024 People's Hearts Good Medicines of Livzon Ensure

Autonomous Region

Health

Organizing Committee of the National

Ranked 83rd among the Top 100 Chinese

September 2024 Pharmaceutical Industry Information Annual

Pharmaceutical Industrial Enterprises in 2023

Conference

Ranked 47th in the Top 100 of the Comprehensive

Organizing Committee of the Health Industry

September 2024 Competitiveness of the Pharmaceutical Industry in

Ecology Conference

2024

Ranked 463rd among the Top 500 Private

September 2024 All-China Federation of Industry and Commerce

Manufacturing Enterprises in China in 2024

Ranked 47th among the Top 100 Private

October 2024 Manufacturing Enterprises in Guangdong Province Guangdong Federation of Industry and Commerce

in 2024

14Date of issue Awards & Honours Issued by

Ranked 77th among the Top 100 Private Enterprises

October 2024 Guangdong Federation of Industry and Commerce

in Guangdong Province in 2024

October 2024 Golden Information Disclosure Award in 2023 China Securities Journal

Top 20 in Corporate Governance of Listed

November 2024 Shenzhen Institute of Corporate Governance

Companies in the Greater Bay Area

Best Practice Case of the Board of Directors of

November 2024 China Association for Public Companies

Listed Companies in 2024

Excellent Case of Sustainable Development Practice

November 2024 China Association for Public Companies

of Listed Companies in 2024

Industry Influence Award in the 2024 Capital Power

November 2024 Stockstar

Annual Selection

ESG "Golden Dawn Award" in 2024 of "Securities

November 2024 Securities Market Weekly

Market Weekly"

The Great Love Knows No Bounds Demonstrating

The Communist Party Committee of Sunan Yugur

the Enterprise's Responsibility Enthusiastically

November 2024 Autonomous County People's Government of

Participating in Public Welfare to Boost Rural

Sunan Yugur Autonomous County

Revitalization

Top 100 of the Second Guoxin Cup ESG Golden

December 2024 China Securities Journal

Bull Award

ESG Award of the Golden Quality Award of

December 2024 Shanghai Securities News

Shanghai Securities News in 2024

December 2024 "Value 100" of Yi Dong ESG+8 in 2024 ValueOnline

ESG Rating Performance

Rating Score

MSCI ESG Rating AA

Scored 67 in CSA and selected for the S&P Global

S&P Global 2024 Corporate Sustainability Assessment (CSA)

Sustainability Yearbook 2025

CDP Climate Change Questionnaire B

Wind ESG Rating A

CSI ESG Rating AAA

SNSI ESG Rating AA

1504

Sustainability

Management

Joincare firmly 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 effective

sustainability governance framework refined the processes for identifying assessing and managing sustainability-related risks

and opportunities and integrated sustainability metrics and targets into our daily business operations and management. All these

efforts lay a solid foundation for the enterprise's long-term and high-quality development.4.1 Sustainability Governance

Effective 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 Committee

and the Sustainable Development Working Group. We continuously implement the Sustainable Development Management System of Joincare

which clarifies 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 risk

assessment and management we can better incorporate sustainability-related impacts risks and opportunities into the company’s strategy

implementation major transaction decisions and risk management activities.Board of Directors is the highest decision-making body which makes decisions on all major matters

Board of relating to sustainability and oversees sustainability-related impacts risks and opportunities.Directors

The Sustainable Development Committee is composed of three directors includes one independent

director and is chaired by the chairman of the Board of Directors. The three directors respectively

possess rich experience in corporate management within the pharmaceutical industry green

production supply chain management as well as financial compliance and risk management.Sustainable The Sustainable Development Committee is responsible for identifying and managing sustainability-

related impacts risks and opportunities formulating and improving the Group's major ESG

Development policies guiding the business practices across various departments and subsidiaries. At the same

Committee time it regularly reports to the board of directors every year on the implementation of ESG policies

and 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 relevant

businesses and key functions of the Group with professional expertise and extensive experience

operates under the guidance of the Sustainable Development Committee. It can efficiently advance

Sustainable ESG-related work and implement risk control measures. This working group is primarily tasked

Development with tracking and coordinating the implementation of specific ESG tasks across all departments at the Group headquarters and its subsidiaries. Additionally it regularly organizes internal discussions

Working Group and meetings to review discuss and improve the existing ESG policies.ESG indicators have been incorporated into the individual performance assessment of all members

of our sustainable development working group.Joincare Sustainability Management Structure and Responsibility

172024 Sustainability Report 04 Sustainability Management

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 regulatory

developments relating to sustainable development. We organise training on sustainability management every year. The training is

aimed to strengthen management’s awareness of sustainable development and help them to understand and learn about excellent

management practice thus improving our sustainability management performance.

4.2 Sustainability Strategy

Committed to promoting social development Joincare puts great efforts into the healthcare industry with innovation to help build

a Healthy China and create a green bright and prosperous future with stakeholders. Focusing on “health” the Group aligns its

sustainability concepts with its development strategy to guide its efforts to promote sustainable development. We are committed

to providing the whole society with high-quality safe accessible and affordable medical products and services to better meet

the clinical needs. In addition we pay close attention to demands of internal and external stakeholders and constantly strengthen

management of areas in relation to sustainable development. We continuously empower our employees' growth actively

undertake responsibility of environmental protection and dedicate to social welfare. These efforts are aimed to promote social

harmony and development.

4.2.1 Communication with Stakeholders

Joincare values the opinions of stakeholders. By establishing a regular and diversified mechanism to communicate with

stakeholders 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-term

value for stakeholders.

18Table: Issues of concern to and communication methods with stakeholders

Stakeholders Issues of Concern Communication Methods

* Occupational Health and Safety

* Workers' congresses and labour union

* Talent Attraction Retention and

* Employees' satisfaction surveyoccupational health

Employees Development

and safety training

* Employees' Rights Interests and

* Platforms for feedbackDaily communication

Treatment

* Shareholders' meeting

* Regular releases of business information and data

* Risk Management

* Telephone fax email

* Business Ethics and Anti-Corruption

Investors * Investor's survey platforms for interactive

* Product R&D and Technological

communication and exchange and external

Innovation

roadshows

* WeChat official account

* Product Quality and Safety * Product labelling and information disclosure

Consumers * Circular Economy * Regular visitsconsumers' satisfaction survey

* Business Ethics and Anti-Corruption * Handling of complaints and opinions

* Product Quality and Safety

* Regular communication

Distributors suppliers * Sustainable Supply Chain

* Working meetings and exchanges via telephone

and partners Management

and correspondence company's website

* Responsible Marketing

* Government-enterprise symposiums

* Product Quality and Safety

Government and * Supervision and inspection

* Responsible Marketing

regulators * Work reports and surveys

* Emission Management

* On-site inspection

* Product R&D and Technological

Innovation * Company’s website and WeChat official account

Media * Industry Development and * Interactive communication platforms special

Cooperation reports external roadshows

* Business Ethics and Anti-Corruption

* Product R&D and Technological

Pharmaceutical industry Innovation

* Industry organisation meetings experience sharing

associations/ * Intellectual Property Rights

sessions site visits

organisations Protection

* Emission Management

* Access to Healthcare * Volunteering activities

Community/

* Charity * Money and medicine donation medicine

The public

* Emission Management knowledge publicity

192024 Sustainability Report 04 Sustainability Management

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 and

responded to each issue in this report based on the assessment result.We determine the material issues by following steps:

Identification of issues Research on issues

Based on the 21 issues set in the We designed questionnaires for "Impact

Guidelines No. 14 of Shanghai Stock Materiality Assessment" and "Financial

Exchange for Self-Regulation of Listed Materiality Assessment" and invited

Companies—Sustainability Report various stakeholders to participate in the

(Trial) and in combination with the research. The research subjects cover

characteristics of the pharmaceutical the company's directors supervisors and

industry the industry's development 01 02 senior management internal employees

stage the Group's own business model suppl iers investors consumers

and value chain etc. 24 material issues government and regulators and so on.with the Group's business characteristics

have been formulated.

0403

Review of issues Assessment of issues

According to the results of materiality Ta k i n g i n t o a c c o u n t b o t h p e e r

assessment a matrix of material issues benchmarking and the resul ts of

and the focus areas of the report in 2024 stakeholder surveys we conduct an

are determined. The results of materiality assessment and analysis from two

assessment are submitted to management dimensions: the materiality of the issues'

and disclosed in the report after review impacts on the economy society and

by management and approval by the the environment and the materiality of

Board of Directors. the issues to the company's finances.We identify issues that have financial

materiality which are also called highly

material issues in the report through this

process.

202 Highly Material Issues

31

10 6 4 Moderately Material Issues

1295

118

14 Generally Material Issues

137

16

17

19

15

18

2221

20

23

24

Financial Materiality

Joincare’s Matrix of Material Issues in 2024

Highly Material Issues Moderately Material Issues Generally Material Issues

1. Product R&D and Technological Innovation 6. Risk Management 19. Charity

2. Product Quality and Safety 7. Business Ethics and Anti-Corruption 20.Energy Management

3. Responsible Marketing 8. Occupational Health and Safety 21.Water Resources Management

4. Intellectual Property Rights Protection 9. Talent Attraction Retention and Development 22.Circular Economy

5. Corporate Governance and Compliance 10. Employees' Rights Interests and Treatment 23.Climate Change Tackling

Operations 11. Customer Privacy and Data Security 24.Biodiversity

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

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 cash

flows and other aspects across short-term (0-3 years) medium-term (4-10 years) and long-term (over 10 years)1 horizons.In corresponding sections of this report we disclose methodologies and plans adopted by the Group to address the risks and

opportunities associated with these issues as well as the measures and actions taken to monitor prevent manage control and

mitigate 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 definition is aligned with our strategic planning and resource allocation plans.

21

Impact Materiality2024 Sustainability Report 04 Sustainability Management

Financial Materiality Time Corresponding

Risks & Impacts Opportunities & Impacts

Issues Horizon Section

The R&D process for innovative drugs Introducing new technologies such as

is costly and lengthy with high pressure AI and big data helps accelerate the

on upfront investments in capital and R&D process and enhance innovation

Product R&D and human resources. Meanwhile high efficiency. Upon successful Short/

Access to

Technological risks of R&D failure or industrialisation development of novel therapeutics Medium/

Healthcare

Innovation failure may result in inability to deliver market reach can be expanded Long-term

new products as planned. through technology licensing or

overseas factory construction thereby

achieving higher profit margins.Quality issues in pharmaceutical High-quality products can strengthen

products directly impact patient corporate brand influence and

safety and health and will lead to customer loyalty. Through rigorous

substantial financial liabilities and quality control and management Short/

Product Quality Safeguarding

reputational damage once they occur. systems enterprises can mitigate Medium/

and Safety Product Quality

Amid increasingly stringent regulatory quality risks while enhancing Long-term

requirements enterprises must allocate productivity.additional financial and human resources

to quality inspection.Inadequate marketing strategies may Compliant and transparent marketing

lead to underperformance in sales while campaigns enable enterprises to Short/

Responsible Safeguarding

excessive or non-compliant marketing establish a positive brand image in Medium/

Marketing Product Quality

practices could trigger regulatory the short term while fostering sales Long-term

scrutiny and penalties. growth over the long term.Overseas patent applications and Robust intellectual property

maintenance incur significant costs protection can consolidate core

Intellectual and carry risks of technology leakage. competitiveness. Through patent

Medium/ Safeguarding

Property Rights Failure to adequately protect intellectual portfolio management enterprises

long-term Product Quality

Protection property may result in technology can protect innovation achievements

infringement thereby diminishing globally and secure international

market competitiveness. market presence.Due to stringent regulation in the A robust compliance management

pharmaceutical industry the compliance system can reduce compliance costs

Corporate risk is heightened. Non-compliant upgrade the corporate credit rating Short/

Responsible

Governance and practices such as commercial bribery foster stakeholder confidence and Medium/

Governance

Compliance trigger severe penalties resulting in mitigate legal and financial risks. Long-term

reputational damage customer attrition

and even suspension of operations.

224.3 Impact Risk and Opportunity Management

Joincare has integrated the sustainability-related impact risk and opportunity management process into the internal management

process forming a closed-loop mechanism spanning identification assessment prioritisation control and monitoring. In this

way we ensure effective implementation and continuous advancement of sustainability goals.Identification Assessment

Based on data collected on a daily Assess and analyse the development

basis we identify sustainability-related conditions potential impacts and

risks and opportunities that impact probability of occurrence for risks

our business operations and financial and opportunities and prioritise them

performance. accordingly.Monitoring Control

Establish internal oversight and reporting Define sustainability management

mechanisms to periodically monitor targets and moni tor ing metr ics

sustainability management performance formulate and implement risk and

and goal attainment. opportunity control measures.

4.3.1 Comprehensive Risk Management

The Group has established a well-developed risk management system. It has formulated and implemented the Comprehensive

Risk Management System and established and improved the “Three Lines of Defense” framework for risk management and

internal control to regulate risk assessment and management process. We also set overall risk management goals to improve

overall risk prevention and control. The Board of Directors as the highest decision-making body in comprehensive risk

management takes charge of supervising risk management practices. The Strategy and Risk Management Committee takes

charge of reviewing the effectiveness of overall risk identification assessment internal management and monitoring procedures.The management as the execution body takes charge of the effectiveness of comprehensive risk management to the Board of

Directors. All functional departments play their roles in supporting the implementation of risk management procedure. The

Risk Management Department as the leading management department of comprehensive risk management takes charge of

conducting risk management under the guidance of the Strategy and Risk Management Committee.

232024 Sustainability Report 04 Sustainability Management

Joincare’s “Three Lines of Defense” Framework

First Line Second Line Third Line

Each of the subsidiaries and

Risk Management Department Internal Control Department

departments

It is mainly responsible for the It is mainly responsible for risk prevention It is responsible for the supervision of the

daily work of risk identification and control during the pre-incident and establishment and implementation of risk

and assessment risk prevention ongoing phases as well as risk handling control the authenticity and integrity of financial

and control and internal control in the post-incident phase. The Risk information integrity and anti-corruption

within the scope of its business Management Department directly reports etc. The Internal Control Department directly

responsibilities. to the Strategy and Risk Management reports to the Audit Committee of the Board

Committee of the Board. and is independent from any departments of the

Company.Through effective risk management processes we aim to minimise the impact of adverse factors and safeguard the steady

and quality development of the Group. We continuously collect information identify internal and external risks formulate

comprehensive 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 issues

identified. We review risk exposure encountered by the Company on an annual basis. Against financial and non-financial risks in

main business and other high-risk areas we assess the internal controls and engage independent third-part agencies to conduct

external risk audit. We also conduct impairment testing of goodwill using sensitivity analysis. In addition we actively carry out

a variety of risk management training programs. Through online thematic courses offline lectures and other means we fully

popularize and deepen the Company's risk management principles among all employees comprehensively enhancing employees'

awareness and response to risks.

244.3.2 Emerging Risks

The Group has identified and assessed emerging social and environmental risks that might influence the long-term development

of the Group and implemented effective responses in operation to prevent or mitigate such risks.Emerging Risks

Global geopolitical tension

The escalating global geopolitical tensions are poised to exert significant impacts on the international layout of the pharmaceutical

industry. The uncertainty of the United States' tariff policies especially those towards China and the approval of the BIOSECURE Act

have amplified challenges for Chinese pharmaceutical enterprises in overseas R&D commercialisation and business expansion.Impact Description Countermeasures

The United States is one of the important export markets for Diversify market presence in multiple international markets to

Chinese pharmaceutical products. Changes in tariff policies reduce reliance on a single market;

may potentially restrict access to overseas markets thereby

undermining globalisation strategies and overseas revenue Set up factories abroad to enhance our overseas production

streams of pharmaceutical enterprises. capacity;

As the supply chain of the pharmaceutical industry is highly Formulate an alternative supplier system to maintain alternative

globalized international market volatilities could precipitate suppliers for raw materials and excipients as well as key

supply chain disruptions and unstable raw material supplies. consumables and ensure stable supply of materials;

Critical raw materials may become inaccessible from specific Closely monitor international policy changes and prepare

nations leading to production interruptions. responses in advance.Application of AI

Currently artificial intelligence (AI) technology has had a strong impact on traditional industries. The rapid popularization of AI

technology may lead to the subversion of the traditional business models in the pharmaceutical industry posing risks to enterprises that

fail to adapt to technological changes in a timely manner.Impact Description Countermeasures

The application of AI technology may change the R&D Increase investment in AI technology cooperate with

production and sales models of pharmaceutical enterprises. For technology companies and develop new business models and

example AI can accelerate the drug research and development products;

process and improve production efficiency but at the same time

it may also lead to a reduction in traditional R&D and production Cultivate and introduce professional talents in the field of AI to

positions. enhance the enterprise's technological innovation capabilities;

The rapid popularization of AI technology subverts traditional Reasonably and efficiently utilize medical big data etc. and

business models and pharmaceutical enterprises that do not formulate more targeted research and development directions

adapt in a timely manner will face a survival crisis of weakened and market strategies.competitiveness.AI technology will attract new market participants which may

intensify market competition.The rapid iteration of AI technology potentially render

corporations’ early-stage technologies obsolete quickly thereby

increasing R&D costs.

252024 Sustainability Report 04 Sustainability Management

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 in

a 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.Section

Public Welfare and Charity

Examples of Our Actions* We carried on the long-term “Access to Public Welfare for Chronic Diseases Preventionand Treatment Programme” to donate drugs to patients with financial difficulties in remote

SDG1: No Poverty areas who suffer from chronic diseases.End poverty in all its forms everywhere. * We implemented the “Astragalus Root Industry Revitalisation” plan supporting rural

economic development through industry assistance.Section

Access to Healthcare

Examples of Our Actions

* Focus on unsatisfied clinical needs and continuously expand the R&D pipeline of

innovative drugs.SDG3: Good Health and Well-being * 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 the

public.Ensure healthy lives and promote well- * We provided training for local healthcare workers in developing countries contributing to

being for all at all ages. improving the quality and capacity of health services.Section

Talent Management

Examples of Our Actions

* We cooperated with higher education institutions to deliver joint training programmes and

provided students with traineeship positions.SDG4: Quality Education * We tailored job-specific development training programmes according to the characteristics

Ensure inclusive and equitable quality and business needs of different positions.education and promote lifelong learning * We encourage continuing education and support employees to obtain academic degree or

opportunities for all. professional certifications.

26Section

Talent Management

Examples of Our Actions

* 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 maternity

SDG5: Gender Equality leaves breastfeeding leaves and customised physical examination services.Achieve gender equality and empower all

women and girls.Section

Operating with Green Sustainability

Examples of Our Actions

* By installing online wastewater monitoring equipment at the effluent outlets of major

wastewater discharge plants and networking with regulatory authorities we monitored and

SDG6: Clean Water and sanitation shared real-time discharge data of treated wastewater.Ensure avai lab i l i ty and sus ta inable * Through improving wastewater treatment processes and upgrading wastewater treatment

management of water and sanitation for all. facilities we decreased wastewater discharge increased wastewater utilisation and reduced

the concentration of pollutants in wastewater.Section

Operating with Green Sustainability

Examples of Our Actions

* We took steady steps to develop the energy management system based on ISO 50001

standards.SDG7: Affordable and Clean Energy * We took measures to improve energy use efficiency for energy conservation and emission

reduction increased the investment in green production projects and strived to build a low-

Ensure access to affordable reliable carbon and energy-saving green production enterprise.sustainable and modern energy for all.Section

Talent Management

Public Welfare and Charity

Examples of Our Actions

* We have formulated the Code of Labor Employment and Ethical Conduct to specify

SDG8: Decent Work and Economic provisions on protecting labour rights as the prohibition on forced and child labour equal

Growth remuneration etc.Promote sustained inclusive and * We strengthened education and training on protecting human rights strictly reviewed the

sustainable economic growth full and implementation of human right policies and actively take improvement actions.productive employment and decent work * We provided professional training for local managers through the “Astragalus Rootfor all. Industry Revitalisation” plan.

272024 Sustainability Report 04 Sustainability Management

Section

Access to Healthcare

Talent Management

Examples of Our Actions

* We adopted inter-country and intra-country equitable pricing policies based on product

affordability.SDG10: Reduced Inequalities * We were deeply committed to the development of healthcare and actively involved in

capacity advancement initiatives for healthcare in developing countries.Reduce inequality within and among

countries. * We prohibited any forms of discrimination and prejudice defined escalation process

and disciplinary actions and apply for social insurance subsidies for the employees with

disabilities.Section

Safeguarding Product Quality

Operating with Green Sustainability

Examples of Our Actions

* We took product quality safety health environmental protection and other elements into

account to minimise the negative impact that our products may have on the environment and

SDG12: Responsible

society in the whole product life cycle.Consumption and Production * We classified waste for treatment and actively promoted waste reduction recycling

Ensure sustainable consumption and and harmless disposal by introducing advanced environmental protection technology into

production patterns. production upgrading original production technology and formulations and cooperating

with third parties.Section

Operating with Green Sustainability

Examples of Our Actions

* We developed the Climate Change Management System set out the Group’s procedures

for identifying and assessing climate-related risks and opportunities as well as the

requirements for implementing and monitoring the response measures.SDG13: Climate Action * We identified and assessed the climate-related risks and opportunities facing our business

Take urgent action to combat climate change and determined response measures to improve the overall ability to manage climate risks.and its impacts. * We set the carbon emission target from 2022 to 2025 and the target to achieving carbon

peaking by 2028 and carbon neutrality by 2055.

28Section

Operating with Green Sustainability

Examples of Our Actions

SDG15: Life on Land * We strictly comply with the laws and regulations related to biodiversity conservation.* We identified environmental risk factors and hidden hazards before building factories

Protect restore and promote sustainable met the “ecological red lines” requirements and avoided operating in areas of high

use of terrestrial ecosystems sustainably

biodiversity value such as those close to government-designated ecological reserves.manage forests combat desertification

halt and reverse land degradation and halt

biodiversity loss.Section

Responsible Governance

Talent Management

Examples of Our Actions

* We issued Anti-Corruption and Anti-Commercial Bribery System and the Anti-Fraud

SDG16: Peace Justice and Strong System strengthened audit and supervision and conducted training on business ethical

Institutions standards.Promote peaceful and inclusive societies * We require management employees and partners to comply with business ethics and

for sustainable development provide clearly implement the anti-corruption management responsibility.access to justice for all and build effective * We have built a smooth and confidential grievance escalation and reporting procedures

accountable and inclusive institutions at all for employees to support them to timely complain or report the violation of labour rights and

levels.any dissatisfaction.

2905

Responsible

Governance

SDGs in this section

Joincare is committed to creating social value through compliant and stable operations. We adhere to compliance follow

the Party leadership and conduct business with integrity and self-discipline. We firmly resist unethical behaviors such as

commercial bribery and unfair competition and strengthen business ethics training and the promotion of integrity culture.This efforts 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 Stocks

on the Shanghai Stock Exchange. We conduct high-quality information disclosure enhance investor management and establish and improve

internal control mechanisms to ensure high-standard and standardized operations.

5.1.1 Protection of Shareholders’ Rights and Interests

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 and During the year no disputes

other relevant regulations to standardize the procedures for convening holding and voting arose from the appropriation of

at general meetings to ensure equal treatment for all shareholders. To protect the rights of all the Group’s assets and damage

shareholders especially minority shareholders and to ensure they can exercise their rights

to the interests of the Company

to information and decision-making participation we provide efficient ways to participate in

company decisions such as online voting. and its minority shareholders

were triggered by the Group’s

Joincare maintains its independence through its unique business operations and autonomous controlling shareholder de facto

operation capabilities. The Company and its controlling shareholder operate and account

controller and other related

independently in terms of business operations personnel allocation asset management

parties.institutional setup and financial management. The controlling shareholder exercises its rights

and assumes its obligations strictly in accordance with laws and regulations without directly

or indirectly interfering in the Group’s decision-making processes or business activities by

bypassing the general meetings. Additionally we have established a long-term mechanism

to prevent the controlling shareholder de facto controller and other related parties from 0

occupying funds of the listed company and infringing on its interests. We have specifically disputes

formulated the Policy for Preventing the Controlling Shareholder or the De Facto Controller

and Other Related Parties from Occupying Company Funds and through systematic

management measures we ensure the Company’s steady development.

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 the

professionalism and diversity of Board members. We have formulated the Board Diversity Policy to ensure that the Nomination Committee

selects Board members based on a series of professional criteria including educational background professional experience skills expertise

and tenure as well as diversified factors such as gender age nationality cultural background and ethnicity. Meanwhile we disclose measurable

targets 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 accounting

for over 30% of the total. The Board of Directors has established the Audit Committee the Remuneration Committee the Strategy and Risk

Management Committee the Nomination Committee and the Sustainable Development Committee. These committees assist the board in making

legal compliant scientific and accurate decisions ensuring the effective 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.

312024 Sustainability Report 05 Responsible Governance

Members of the Board of Directors have backgrounds and expertise in the pharmaceuticals corporate management finance accounting law and

manufacturing. Based on their extensive industry experience they can provide forward-looking strategic insights for the Group’s governance and

development.Expertise of the Board of Directors

Name of Directors Corporate Pharmaceutical Financial Sustainable

Legal Compliance Risk Management

Management Industry Management Development

Zhu Baoguo √ √ √

Liu Guangxia √

Lin Nanqi √ √ √

Qiu Qingfeng √ √

Xing Zhiwei √ √

Huo Jing √ √

Qin Yezhi √

Peng Juan √

Yin Xiaoxing √

There are three supervisors in the Supervisory Committee of Joincare includes one employee representative. The Supervisory Committee

performs its duties in accordance with the law supervises the performance of duties of the Group’s directors and senior management regularly

inspects the Group’s financial position and performance pays attention to the Group’s major investment projects and fully safeguards the

interests of the Company and all shareholders.The Company’s directors supervisors and senior management actively engage in various training programs related to the standardized operation

of listed companies. These include specialized training sessions and forums professional courses on sustainable development internal training

and reading regulatory newsletters and enforcement briefings on listing rules issued by the Stock Exchanges etc. This enables them to stay

updated on industry policy developments listing regulatory information ESG-related dynamics and the company's code of business ethics

thereby continuously enhancing their ability to fulfill their duties.

5.1.3 Disclosure Transparency

In strict accordance with relevant standards and guidelines of the China Securities Regulatory Commission (CSRC) and the Shanghai Stock

Exchange (SSE) the Group has formulated the Management System for Information Disclosure Affairs and actively fulfill our information

disclosure responsibilities. We closely focus on the needs of investors adopt diversified means of information disclosure strengthen voluntary

information disclosure and make use of various channels such as the Group's official website media reports WeChat official account etc. to

enhance the timeliness and transparency of information disclosure presenting the management status of the Group to investors in an all-round

manner and effectively guaranteeing that the majority of investors are able to obtain the relevant information in an equal prompt and accurate

manner.

32In 2024 we filed and disclosed 199 documents in compliance with the information disclosure

principle of authenticity accuracy integrity timeliness and transparency with a total Chinese

character count of 3.1122 million outperforming 96% of our A-share listed peers. Our Disclosures and Filings

information disclosure has been highly recognized by regulators and capital market.In 2024 Published Online

Joincare was again rated “A” (Excellent) in the information disclosure assessment over listed 199

companies organized by the SSE. It's the fourth year in a sequence we got this rating. We also

won the award of the “Best Practices of the Office of the Board of Directors” in the “BestPractices of the Office of the Board of Directors” selection held by the China Association for

Public Companies (CAPCO).

5.1.4 Investor Relations

Joincare has established a sound communication mechanism and formulated the Regulations

on Investor Relations Management. We engage in comprehensive and multi-level

communication with investors through various channels to strengthen investor relations Earnings Calls Held

management. The Board of Directors designates specific departments and employees to

take charge of information disclosure and investor relations listen to investors' suggestions 3

and opinions promptly respond to investor inquiries and achieve positive interaction with

investors. Institutional Investors Engaged

This year to further strengthen our relations with institutional investors we held three online +

performance briefings and one activity “Listed Companies Open Day”. Furthermore we 100

actively participated in the 2024 Listed Company Investors' Online Collective Reception Day

event in Shenzhen where we answered investors' questions on the operation of the Company

and other aspects in detail. We have also communicated with over 100 institutional investors

proactively showcasing our business conditions and investment value.To enhance our connection with minority investors the Office of the Board of Directors designates personnel to provide Q&A for investors via

SSE e-interactive platform answer their phone calls and reply to their emails. In 2024 we provided 95 Q&A for investors via SSE e-interactive

platform answered 296 phone calls from investors and published 16 articles on our WeChat official account. The concerns addressed include

corporate 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 roadshow

hosted by the SIX Swiss Exchange in Switzerland. During the event Joincare introduced its innovation strategy performance in the respiratory

therapy field and R&D pipelines to multiple European investment institutions. This enabled overseas investors to gain a deeper understanding of

the Company’s strengths and potential effectively enhancing its visibility and influence.Overseas Roadshow Site

332024 Sustainability Report 05 Responsible Governance

Joincare's continuous efforts in corporate governance information disclosure investor relations management and market value

management have been widely recognized by the capital markets and various sectors of society. In 2024 the Company received

multiple awards and honors in the field of investor relations.Best Practice Award for Investor Excellence Practice Award for 2023 Annual Report

Relations Management Performance Presentation of Listed Companies

5A rating in “2024 Performance 5th Panorama Investor Relations Gold AwardAppraisal on Board Secretaries of Outstanding IR Company AwardListed Companies” Outstanding IR Team Award

Outstanding ESG Value Communication Award

Tianma Award - Outstanding Board 2024 Best Practices of

Golden Board Secretary

Secretary for Investor Relations (15th the Office of the Board of

(20th session)

session) Directors

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 implements

the 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 Committee

and 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 we

are strengthening the engagement between the Party and the people and actively promoting the Party-masses culture to help

invigorate our market competitiveness. Through deepening Party discipline and regulations education we strive to cultivate a

high-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. By

integrating the Party-masses ?spirit into innovation-led development we promote virtuous interactions between enterprises and the

society. We actively encourage employees to participate in public welfare activities and give back to the society contributing to

social 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 fully

leverage our technological expertise to support the school’s classroom teaching reform and spark students' interest

in scientific and technological innovation.

34Case

Joincare invited an associate professor from Party school to give a

thematic seminar

In August 2024 Joincare organized a seminar themed on the guiding principles of the 3rd Plenary Session of the

20th CPC Central Committee featuring an associate professor from the Party School of Nanshan District Party

Committee in Shenzhen. This activity reinforced our development orientation under Party leadership. Building

on our practical experience in Party building we aim to enhance employees’ comprehension of the Party’s latest

policies stimulate their innovation vitality and sense of responsibility in respective roles and contribute to high-

quality corporate development and steady socio-economic advancement.

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 Unfair

Competition the Interim Provisions on Prohibition of Commercial Bribery the Criminal Law of the PRC and other relevant laws

and regulations. We continuously improve our integrity management system. The Audit Committee of the Board of Directors

plans and oversees the work related to business ethics anti-corruption and anti-unfair competition and the Risk Management

Department is responsible for the implementation to ensure legal and compliant operation. Meanwhile we strengthen internal

audit and supervision promote integrity culture through the clean culture training covering all employees. In 2024 there were

no violation cases of corruption bribery fraud money laundering conflict of interest Anti-unfair competition customer privacy

data 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 at

the level of the Board of Directors. In 2024 the Board approved the Anti-Corruption and Anti-Commercial Bribery System and

the Anti-Fraud System revised version to further refine ethical standards and regulate the behavior of employees and partners.In addition specific requirements have been set up for certain high-risk business segments including the Financial Management

System the Outbound Investment Management System the Management Measures for Material Procurement of Joincare the

Implementation Rules for Procurement Bid Evaluation of Joincare the Implementation Rules for Bidding Management and

other regulations to ensure legal and compliant operations. The systems mentioned above are applicable to all the employees of

Joincare (including but not limited to full-time and part-time employees interns contractors).

352024 Sustainability Report 05 Responsible Governance

We require all employees management and partners to strictly implement the following measures and commit to ensuring the integrity of their

own behavior.Employees Management Suppliers & partners

* All employees receive training on the code * Sign the Oath of Integrity for Senior * Al l suppl ie rs sha l l s ign the Ant i -

of conduct in relation to anti-corruption and anti- Executives of the Company to ensure that Commercial Bribery Agreement as an

commercial bribery at the onboarding stage they perform their duties with integrity and appendix to commit anti-corruption and

self-discipline anti-commercial bribery and promise not

* Sign the Commitment Letter of Anti-

to violate business ethics during the

commercial Bribery to clarify respective

performance of the contract

integrity responsibility and forbid violations

5.3.2 Internal Audit and Supervision

Joincare complies with the applicable laws and regulations such as the Provisions of the National Audit Office on Internal Audit and the Guiding

Opinions of the General Office of the State Council on Reforming and Perfecting the Comprehensive Supervision System for the Medical and

Health Industry and formulates the Rules for Implementation of the Audit Committee the Internal Control System to regulate internal control

work of the Group. We also continuously monitor changes in regulations policies and the development needs of the group optimize existing

systems 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 Evaluation

Report issued and develop special audit plans. For issues identified in the audit we promptly propose rectification advice require the audited

company to complete the rectification within 100 days and verify the rectification results to ensure that issues are effectively resolved and a

management 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 annual

audit and supervision work plan and carries out audit work in accordance with the plan. The Risk Management Department is responsible for

reviewing and supervising the implementation of policies such as the Anti-Corruption and Anti-Commercial Bribery System and the Anti-Fraud

System and assessing the effectiveness of business ethics management measures. Employees of the Risk Management Department are full-time

employees who are not directly involved in production and operation activities and the audit results are reported directly to the Audit Committee

of the Board of Directors which maintains independence at the organizational operational and personal levels to ensure that the audit results are

independent fair objective and accurate.

36In 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 and No major audit deficiencies

implementation of internal controls over subsidiaries’ business activities particularly the were identified in 2024.management of engineering financial and expense human capital procurement inventory

quality EHS contract and other aspects. The audit work covers the whole internal control

process from risk assessment and control activities to information communication and

monitoring. This comprehensive approach allows us to thoroughly review the operational

performance of subsidiaries assess and mitigate risks and ensure operational compliance and 0

internal control effectiveness. Additionally we actively engage external independent third-party Deficiencies

auditors to enhance the credibility and objectivity of audit outcomes.

5.3.3 Whistleblower Protection

Joincare has formulated and publicized the Measures for the Management of Reporting and Complaining and the Reporting and Whistleblower

Protection Policy to continuously improve the mechanism of reports and protection of whistleblowers which standardize the reporting process

and 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 is

responsible for the acceptance of whistleblower reports timely investigation and handling and case summarizing and reporting. The case shall

be completed within 30 days from the date of acceptance and the result shall be notified to the whistleblower. We strictly keep confidential

the information on whistleblowers and the content of reports and complaints according to the requirements of the relevant policies. We

classify the materials and records of reports as private and confidential and keep them under the custody of designated personnel thereby

protecting whistleblowers from the disclosure of reports and fully safeguarding reporters' legitimate rights and interests. Employees who violate

confidentiality provisions disclose whistleblowers' information or retaliate whistleblowers will be held legally liable upon verification.Tel: 0755-86252316

0755-26980226

Internal email: SAMD@joincare.com

External email: joincaresamd@163.com

Address: Joincare Pharmaceutical Group Building No.

17-2 Langshan Road Nanshan District Shenzhen

Guangdong

Human Resources Complaints and Reporting Mailbox:

Joincare's Reporting and hr.group@joincare.com

Complaint Channels

372024 Sustainability Report 05 Responsible Governance

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 and

control of business risks we create a fair and open integrity and transparency of the corporate culture so that the concept of integrity is taking

root. We set out the requirements for business ethics in the Employee Manual to regulate the behavior of all employees. We promote the culture

of 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 business

ethics policies in the Group. Meanwhile all directors supervisors and senior management of the Group have participated in several trainings on

the standardized operation of listed companies including topics of compliance management anti-commercial bribery anti-monopoly and risk

management. We also conduct anti-corruption training for suppliers to ensure they understand and adhere to business ethics requirements. This

initiative fosters sustainable business development within a culture of integrity ensuring operations remain transparent and compliant.During the year business ethics Coverage rate

training covered 100

14350 % employees

Case

Directors supervisors and senior management of Joincare

participated in anti-corruption and risk management training

We provide annual anti-corruption and risk management training for all directors supervisors and senior management to enhance

their professional competence and integrity awareness. In 2024 all directors supervisors and senior management of Joincare

participated 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 a

100% training coverage rate. This training facilitated their accurate understanding of securities laws and regulations and relevant

operational rules strengthened their capability in fulfilling anti-fraud duties and satisfied their professional learning requirements.

385.4 Information Security

In order to enhance the efficiency of business processes the Group has continued to explore the in-depth integration of information technology

with 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 office system Feishu to fully empower our daily operations through

digitalization.We have established a comprehensive information security management system and formulated the Management System for the Security of

Computer Information System the Management Requirements for IDC Data Centre Operation and Maintenance the Backup System and the

Process of Reporting Suspicious Affairs of Information Security and other information security management systems and norms which are

applicable 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 systems

and 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 and

carry out security assessment and vulnerability scanning. A security mechanism of the Intrusion Prevention System (IPS) is also in place which

uses a variety of defensive techniques to stop intrusion when identifying security threats in real-time with intrusion detection as the core. In

addition 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 the

Disaster Recovery Plan for Information Systems which clarify the response mechanism processing procedures and measures in case of

emergency. In addition we conduct relevant emergency drills on a regular basis to verify the feasibility and integrity of emergency plans. These

efforts are aimed to ensure our information security and business continuity. We carry out all-in-one backup appliance test and data backup drill

annually to verify the effectiveness of relevant emergency plans.We keep improving information security management capability and engages independent third-party agencies to annually audit information

systems and information security policies to comprehensively investigate and identify potential risks. Furthermore we make improvements

based on the audit results to constantly perfect our information security risk management system. This year the Group has not experienced any

information 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 information

security and privacy protection. We organize information security training courses on a regular basis and incorporate them into our new employee

orientation training system. Meanwhile we use online training to impart information security knowledge to our employees covering topics such

as high-risk security threats and defense mechanisms as well as key security precautions in daily operations and other related content. During

the National Cybersecurity Awareness Week we delivered information security prevention knowledge to all employees via the Feishu aiming

to enhance their information security awareness and risk prevention capabilities. By the end of the reporting period all employees of the Group

have completed training sessions on data security and privacy protection.Cybersecurity Awareness Training Series

3906

Safeguarding

Product Quality

SDGs in this section

Product quality is a cornerstone for Joincare’s steady progress. We work to provide premium products and services for

customers and constantly improve the lifecycle quality management system so as to realise strict control throughout the

process from R&D to drug use by patients after marketing. We also strengthen the supply chain management to ensure

raw 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 overall

quality goals for the Group and consistently monitor the progress towards these goals on an annual basis. The goals

include:

Market sampling pass rate reaches Customer complaint rate is less than Customer satisfaction rate is greater than

100 % 1% 90%6.1 Quality Management System

Prioritising the product quality management and adhering to thebasic principles of “risk management whole-process control andsocial co-governance” Joincare has established and refined the

lifecycle quality management system covering medicine R&D

production sales and usage. In active response to regulatory

requirements the Group undertakes the responsibilities of drug Basic Principles

marketing authorisation holders (“Holder” or “MAH”) and strives to

offer patients high-quality and reliable products.In 2024 the Group and its subsidiaries reviewed and optimised the

quality management system for R&D production sales and use. In

this regard a number of documents have been newly formulated

including the Management Procedures for Chemistry Manufacturing Risk Whole-

and Controls Changes of Innovative Drugs during Clinical Trials Management Process

the Management Measures of Plan Changes during Clinical Trials

the Entrusted Producer Assessment Procedures and the Alert and

Action Limits Management Procedures. Besides the Group revised

such regulations as the Procedure for Administration of Entrusted

Drug Production the Procedure for Routine Supervision and

Administration of Entrusted Drug Production the Management ControlSocial Co-

Procedures for Sample Retention and the Management Procedure Governance

for Entrusted Inspection. By doing so we provide safe and reliable

products of all kinds with tightened quality risk control.

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 daily

records 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 routine

inspection.In 2024 we improved our R&D quality management system in accordance with domestic and overseas laws and regulations and based on our

own 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 as

well as preparation research have been optimised. In addition we strengthened on-site supervision and management of R&D activities. From

the dimensions of stability study instrument and device management electronic data management reference substances and preparations

management and original records management we carried out on-site supervision and inspection. This helped us identify deficiencies in quality

management processes and make targeted rectifications thus ensuring compliance with all relevant requirements. We also managed R&D

deviations abnormal lab data and Out of Specification (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. in

clinic trial. The goal is to ensure that investigational medicinal products (IMP) biological sample management clinical operations clinical

quality control and other quality management related aspects are legal and compliant.

412024 Sustainability Report 06 Safeguarding Product Quality

Design

The Department of Clinical Quality participates in the discussion and review of key documents of the clinical

trial project to ensure that the trial is scientific reasonable and feasible from the perspective of design.Preparation

The Department of Clinical Quality develops the clinical monitoring plan the project management plan and

the quality control plan and makes the project audit plan at the group level. This is to ensure that the clinical

monitoring team project management team quality control team and group audit team perform their quality

management functions effectively and to safeguard the quality of clinical trials.Implementation

The Department of Clinical Quality oversees the relevant quality management activities. It is responsible

for ensuring that clinical trial data is truthful accurate and reliable and that the maintenance of clinical trial

documents trial procedures IMPs biological samples and other trial information are all compliant with the

relevant requirements of the quality management specification for the clinical trials of medical products and the

quality management system.Review

After the trial the Department of Clinical Quality summarises quality issues of the project and the research

centre taking into account the quality performance of research centres. It confirms the self-inspection plan with

the project team before locking the database of high-risk centres making sure that the quality issues identified

be resolved in accordance with the rectification plan.Furthermore the Group always prioritises the rights and interests of subjects. In strict compliance with the World Medical Association

Declaration of Helsinki and other laws and regulations as well as ethical and moral standards Joincare conducts all clinical trials after obtaining

the approval from medical products regulators and passing the ethical review as required by regulations. When recruiting subjects we specify the

selection criteria to exclude applicants with specific safety risks. Before a subject is enrolled in a clinical trial the researcher should fully inform

him or her of key information such as clinical operations potential safety risks of the drug and corresponding medical treatment compensation

for trial-related injuries privacy and information confidentiality. Besides the subject must be given sufficient time to ponder over the above

aspects. If the subject agrees to join the trial we will require him or her to sign the Informed Consent which clarifies 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 required

to focus on the compliance in key processes including acquisition of ethical approval signing of the Informed Consent and records of consent

documentation. With these efforts 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 regulatory

authorities. By insuring every subject we limit clinical trial risks to a controllable level and address them in a standardised manner. By means of

anonymity coding and dedicated management we avoid the disclosure of the subject’s identity disease condition biological samples and other

information. This year the Group continued to optimise the clinical trial management system in response to the UN SDGs framework and was

not involved in any ethical violations or regulatory penalties.

426.1.2 Production Quality Management

Joincare strictly abides by national laws and regulations and has established the production quality management system in accordance with

the Drug Administration Law of the PRC the Provisions for the Supervision and Administration of Drug Manufacturing and the Good

Manufacturing Practice (“GMP”). In addition we constantly improve the production quality management system to meet international standards

and urge subsidiaries to obtain international certifications to deliver competitive products to global markets.The Group cooperates with regulatory inspections and takes prompt actions to correct

any quality management issues identified so as to improve the quality management Inspections from

performance. In 2024 we received 105 inspections from regulators and the inspection

regulators

results all met the requirements without any significant or serious deficiencies identified.

105

Registration and Certification

By the end of the reporting period the overall registration and certification of Joincare’s APIs formulations and diagnostic reagents are shown as

follows:

Table: International certification of Joincare

International Certification

1640

APIs varieties passed on-site valid international certificates obtained

international inspections (including 6 FDA site-inspected products 17 CEP certificates)

Formulations 5 25

varieties passed international valid international certificates obtained

certification

In Vitro

Diagnostic 10 8

Reagents varieties passed international valid international certificates obtained

certification

432024 Sustainability Report 06 Safeguarding Product Quality

By the end of the reporting period all the production lines and related products of the Group and its subsidiaries had complied

with the GMP regulations. Joincare and multiple production subsidiaries had passed the quality management system certification.Table: GMP compliance of production lines of Joincare

GMP Certification

In Vitro

APIs Formulations Diagnostic

Reagents

88722

production lines of API production lines of formulation production lines of a vitro diagnostic

producers complied with producers complied with GMP reagent producer complied with GMP

GMP regulations. regulations. regulations.Table: Certification of the quality management system of Joincare

Company Name Certification

Joincare GB/T19001-2016/ISO 9001:2015 ；ISO/IEC 17025:2017 ；CNAS-CL01

Joincare Haibin GB/T19001-2016/ISO 9001:2015

Jiaozuo Joincare GB/T19001-2016/ISO 9001:2015

Fuzhou Fuxing GB/T19001-2016/ISO 9001:2015

Ningxia Pharmaceutical GB/T19001-2016/ISO 9001:2015 ；ISO 22000:2018

Livzon Diagnostics GB/T42061-2022/ISO 13485:2016

Shanghai Frontier GB/T19001-2016/ISO 9001:2015 ；CNAS - CL01:2018

Haibin Pharma CNAS - CL01:2018

44Product Testing Capacity

All our production subsidiaries have set up various labs for the testing of drugs. These labs are equipped with high-precision

devices such as high-resolution mass spectrometry liquid chromatography triple quadrupole mass spectrometry gas

chromatography 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 conduct

many 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 on

innovative medicines and high-end complex preparations. The centre also supports the research and testing on the compatibility

of packaging materials ensuring that the products meet the quality management requirements. In 2024 the Analysis and Testing

Centre of the Group and the testing centre of Shanghai Frontier passed the lab certification of China National Accreditation

Service for Conformity Assessment (CNAS). This means that the testing centres of the Group and its production subsidiaries are

fully capable of performing testing in accordance with ISO/IEC 17025.Case Research and testing on the APIs and formulations of the novel influenza

antiviral Pixavir Marboxil

In 2024 Joincare fully supported the research and testing on the APIs and formulations of the novel influenza

antiviral Pixavir Marboxil so as to achieve up-to-standard quality. The Group’s Analysis and Testing Centre

developed a method of testing nitrosamine impurities in APIs with the liquid chromatography triple quadrupole

mass spectrometry. We carefully designed the experimental process repeatedly verified the accuracy and reliability

of the method and tested several batches of samples. Additionally we developed and verified the quantitative

method of measuring finished products and crystallised solid dispersions and tested sample stability by using

the X-ray diffractometer. Thanks to the rigorous and orderly testing we completed relevant quality research on

schedule. This laid a solid foundation for the subsequent new drug application and marketing of the APIs and

formulations 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 testing

capabilities. It has set quality standards and test operation specifications 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 all

quality metrics. Jiaozuo Joincare has developed specific test operation specifications and conducts test control to

fully improve its product testing capabilities. In 2024 Jiaozuo Joincare completed over 5000 batches of full-scope

quality tests and tested over 8600 batches of raw materials used in the products.

452024 Sustainability Report 06 Safeguarding Product Quality

The Group has been actively engaged in precautionary tests and the detailed investigation of possible impurities in product formulations and

production 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 the

latest requirements for product quality in the industry and stakeholders’ expectations and engage qualified third parties to perform quality tests when

necessary.Case Simulated precautionary test under transport scenarios

Short-term deviations from the specified storage conditions during transport may affect product quality. To assess the potential impact of

short-term deviations on our products we carry out repeated simulated precautionary tests on various types of products. With reference to

the 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°C

to -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 were

divided into two groups. While one group was placed under long-term test conditions (30±2°C RH65±5%) until expiry the other was

stored under accelerated test conditions (40±2°C RH75±5%) for 1 month and then under long-term test conditions until expiry. In the

simulated test we paid close attention to the stability of the solution deeply analysed the changes in the test data and predicted potential

product quality risks. Accordingly we gave detailed instructions to transport service providers. This ensures that product quality isn’t

compromised throughout the transport and guarantees product quality and safety.Case Taitai Pharmaceutical optimised product testing processes and facilities

Following the GMP requirements Taitai Pharmaceutical optimised testing processes and facilities in 2024. For the temperature-sensitive

Levosalbutamol Hydrochloride Nebuliser Solution Taitai Pharmaceutical has delineated an exclusive area for sample management in

the finished product sampling room where the temperature is strictly controlled below 25°C. Simulating the worst storage conditions

for compliant sampling facilitates product quality traceability and ensures the medication safety for consumers. In terms of testing

technology 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 more

convenient to compare data of different product batches during drug development. In addition the online version allows for remote

control of instruments which reduces errors of manual operations. The function of audit tracking can record the operation process and

data modification in detail to meet the regulatory requirements. All these improvements help guarantee the product quality from various

aspects.

466.1.3 Operation Quality Management

In strict compliance with the Good Supply Practice (“GSP”) Joincare has formulated multiple management policies including the Procurement

Management Policy the Sales Management Policy the Product Acceptance Management Policy the Product Storage Management Policy the Product

Delivery Management Policy and the Drug Traceability Management Policy. With these documents we carry out comprehensive quality control in the

drug procurement storage sales transportation and other processes. Through digital means of the “On-code” drug traceability information system we

ensure 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 real

time.This year we refined internal management documents. Along with production subsidiaries we have activated the function of electronic drug inspection

report on the “On-code” platform enabling the online flow of and access to the report. Additionally the SAP system has been optimised to enhance

functions related to inventory data report acceptance and maintenance processes thereby improving the efficiency 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 in

accordance with related laws and regulations as well as the Marketed Chemicals and Biologics Clinical Changes Technical Guidelines the Change

Management Regulations and other internal management regulations. We continue to strengthen the internal risk management on medicine insert sheets

and 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 to

information on the safety and efficacy of medicines should ultimately be approved by the National Medical Products Administration so as to maintain

the 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 information

or pharmacovigilance plans our Pharmacovigilance Department will strictly manage the changes in accordance with the Procedures for Changes to

Information Related to Safety in Package Inserts. Relevant data about drug safety will be collected reviewed and evaluated by the Pharmacovigilance

Department and then submitted to the Drug Safety Committee for review and confirmation 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 for

Pharmacovigilance Inspection we standardise the pharmacovigilance practices. We adopt the digital drug safety management system to ensure the

security of pharmacovigilance data. Its data statistics and analysis function provides a strong data support for pharmacovigilance and improves the

effectiveness of the Group’s pharmacovigilance practices. In 2024 we updated internal management policies and documents including the Quality

Management System for Pharmacovigilance Practices the Drug Safety Committee Management Procedures and the Emergency Plan for Drug Safety

(Mass Incident Investigation). This effort helped us standardise the operation of the pharmacovigilance system. Also the new corporate collaboration and

management platform and the AI platform have made our pharmacovigilance practices more scientific and efficient.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 and

extension and sales feedback. We regularly collect information on adverse reactions to similar products through relevant professional websites or

literature searches. By doing so we ensure that adverse reactions are comprehensively collected through multiple channels and reported to regulatory

authorities 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 medication

effects and possible adverse reactions more thoroughly with post-marketing clinical studies conducted in real-world drug application settings. This

broadened 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 control

measures to ensure the safety of medication for the public.

472024 Sustainability Report 06 Safeguarding Product Quality

This year we also conducted a number of internal pharmacovigilance training activities helping new hires from the

Pharmacovigilance Department understand the latest regulatory requirements and the processes of collecting and reporting

adverse drug events. By defining the roles and responsibilities of each department within the pharmacovigilance system we work

to 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 we

reviewed the update on product safety information for the current year in all facets covering all drug safety data

and changes in the reporting of adverse events. We also analysed and discussed the potential drug risks identified

from clinical feedback adverse reaction monitoring data patient feedback and other channels. At the meeting the

Company focused on the analysis of medical device vigilance risks so as to achieve full control over the safety of

drugs and medical devices.

6.2 Quality Risk Control

Joincare attaches great importance to product quality risk control. We have established the Regulations on Quality Risk

Management and the Regulations on Risk Management Plan with reference to the requirements of relevant laws and regulations

to standardise the processes of identification 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 manage

quality risks throughout the product lifecycle build up its quality risk management capabilities and deliver high quality products.

48R&D Production Operation

On the premise of complying with Joincare has developed policies By formulating and optimising

relevant laws and regulations including the Risk Management relevant management documents

Joincare ensures its R&D quality by and the Data Integrity Assessment Joincare promptly handles quality

following ICH guidelines such as pursuant to the GMP. In complaints and adverse reaction

the pharmaceutical quality system prospective and retrospective feedback from users for post-

ICH Q10 and adopting the Quality manners we identify risks in marketing management. Besides

Target Product Profile (QTPP) the man’s work machines materials we organise and conduct post-

Failure Mode and Effects Analysis rules links and tests with marketing drug research and

(FMEA) the Hazard Analysis and FMEA HACCP preliminary collect full lifecycle drug data.

Critical Control Points (HACCP) hazard analysis and other tools. Efforts are also made to assess

and other risk management tools to Further we conduct classified risks determine management

determine products’ critical quality risk management and take measures for risks identified and

attributes (CQAs) and critical corresponding measures to mitigate continuously monitor potential

process parameters (CPPs). or eliminate the risks. risks.Product Recall

Product recall simulation is exercised every two years at Joincare to ensure the drug

recall process is effective. We also implement a product risk management scheme to

ensure that the risk management of post-marketing products is in line with related

pharmacovigilance laws and that the products’ quality always serves their intended

purposes and satisfies the registration requirements. We have developed the Drug Product Recalls

Recall Management Procedures to guide the recall of products in case of quality Reported

issues 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 recall 0

procedures in place. Over the past five years there were no recall incidents related

to our sold or shipped products for safety or health reasons. The total number of

product 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 rapid

response by all units within the specified time. This verified the effectiveness of our recall process in promptly and

accurately 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 real

scenarios enabled us to verify the feasibility of the Company’s processes in response to safety incidents. It also

contributed to the collaboration among production sales logistics and other departments thus helping us safeguard

drug safety and properly handle these incidents.

492024 Sustainability Report 06 Safeguarding Product Quality

6.2.2 Quality Audit

In order to continuously improve the quality management system the Group has made

periodic quality audit plans covering all the producers operators and R&D institutions.Special audits are conducted following management demands and external regulatory

changes.We perform quality audits at least twice a year on our production subsidiaries with reference Internal Quality Audits

to GMP regulations and the On-site Audit Management Procedures. In 2024 the Group

and its subsidiaries organised an audit team to conduct 50 quality audits on the production Conducted in 2024 Groupled

system packaging system material system equipment and facility system quality assurance audits across subsidiaries and

system quality control system environmental protection and occupational health and safety contract manufacturers

of the subsidiaries and entrusted production enterprises. We also urged them to rectify the

deficiencies identified in the audits. With reference to the Procedures on Self-Inspection

Management and the Quality Management System Internal Audit Management Policy and 50

Operating Procedures we designated teams to carry out comprehensive self-inspection or

internal 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 audits

by domestic and overseas regulators and customers and analysed and promptly rectified the External Inspections

deficiencies identified by external experts to enhance quality management continuously. In Completed in 2024

2024 Joincare passed a total of 139 external audits and inspections at the group level which

included third-party audit (ISO 9001 annual audit) on-site inspection for drug re-registration

GMP compliance inspection and supervisory inspection. As for deficiencies identified 139

during self-inspections and internal and external audits the Group and subsidiaries promptly

conducted cause analysis and risk assessment by means of fishbone diagram fault tree FMEA

and other quality risk management tools. Furthermore we devised corrective and preventive

measures for these deficiencies to enhance our quality management performance.

6.2.3 Responsible Product Design

As a key driver and beneficiary of the green transition strategy Joincare integrates green and low-carbon concepts into new product development

taking into account quality safety health environmental protection and other elements throughout the product lifecycle. On the premise of

meeting customer needs and providing premium products we make every effort to minimise the negative impact that our products may have

on 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 a

coordinated manner and help build a green low-carbon and circular economy.

50R&D and design

We analyse and identify potential social and environmental risks that may arise throughout the lifecycle of our products

and seek to manage them at the source where possible. For example we have recognised that choosing the wrong raw

materials 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 a

department to assess the potential environmental impact and other negative impacts of the raw materials used in our

products 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 Identification

and Evaluation. In accordance with these policies we monitor energy and water consumption emissions waste

discharge and other environmental impacts during product manufacture. We assess the materiality of environmental

factors 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 the

negative impact of our products on the environment during their manufacture.Transport and distribution

Focusing on the harm that hazardous chemicals may cause to human health and the environment we sort out identify

and classify all chemicals involved in the transport and distribution of our products to reduce the use of hazardous

chemicals wherever possible. We also implement strict rules for the storage transport and use of necessary chemicals

to minimise the harm caused by hazardous chemicals during their lifecycle.Product use

We analyse the environmental and social impacts of products during their use following the principle of product

lifecycle management to ensure that product design and materials selection do not violate environmental and social

laws and regulations.Recycling and disposal

We identify the elements of our products that may have negative impacts on the environment during product recycling

and disposal following the Control and Management of Environmental Factor Identification and Evaluation. On this

basis we seek to reduce the use of such elements in product design and develop standardised processing procedures for

irreplaceable elements to guide relevant parties on how to process them properly and minimise negative environmental

impacts.

512024 Sustainability Report 06 Safeguarding Product Quality

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 in

accordance with GMP GSP GVP CNAS and other specifications. Quality training plans are developed every year for all employees to enhance

their awareness and competence in this regard through quality-related short training sessions fun games online knowledge contests operational

skills competitions and other diversified training forms. In 2024 Joincare conducted more than 730 training sessions on product quality and

safety with an employee coverage rate of 100% and 47.37 hours of training per person.Training sessions on Employee Average Quality

product quality and safety coverage rate of Training Per Employee

more than 100% 47.37 730+ hours

Joincare and its subsidiaries carry out “Quality Month” events for all employees on an annual basis. Every month we provide professional

and customised training courses for all personnel related to quality systems covering quality control as well as R&D production sales and

pharmacovigilance management. In this way we keep relevant personnel well informed of the changes in applicable laws and regulations and

quality 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 them

gain legal knowledge about quality in their daily work. In addition following the principle of practicality and necessity the Group has issued the

Joincare 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 to

consult it promptly.Case The “Innovation Leads and Quality Comes First” event of Jiaozuo

Joincare 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 fun

quiz essay contest and creative video sharing. It aimed

to guide employees to learn quality knowledge enhance

quality awareness and combine quality management

with practical production. Jiaozuo Joincare also arranged

generous rewards to encourage employees to participate

and improve their knowledge and expertise of quality

management.The “Innovation Leads and Quality Comes First” event of

Jiaozuo Joincare during the “Quality Month”

52Case 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 of

practicing quality management and consolidating the quality culture. To this end the headquarters delivered a series of activities

jointly with multiple subsidiaries such as Taitai Pharmaceutical Joincare Haibin Haibin Pharma Xinxiang Haibin Jiaozuo

Joincare and Shanghai Frontier. These activities mainly included quality knowledge training quality knowledge contests and fun

activities.In terms of quality knowledge we conducted a total of 8 centralised training sessions covering innovative drug R&D API

R&D technology transfer IND formulation quality research quality management cleaning validation laboratory management

and so on. With 100% employee participation the training enriched the professional knowledge for all staff. We also organised

knowledge competitions with questions revolving around R&D production sales and other business modules. By joining in these

activities 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 in

quality management. Through these events we increased employees’ sense of responsibility that quality management is essential

in all business areas throughout the process and at all times. This reflected the Group’s remarkable achievements in building a

quality culture and raising the quality management awareness.“Quality Month” Events of Joincare in 2024

Case Taitai Pharmaceutical carried out special training on GMP practices

Taitai Pharmaceutical focuses on reserving and training production quality

management talents to meet the Group’s talent needs in rapid development. In

2024 Taitai Pharmaceutical organised a total of 49 training sessions on GMP

practices in various production departments the content of which covered

contamination prevention cross contamination control confusion prevention

and error prevention. The training acquainted employees with operational

skills of each stage thereby reducing quality issues due to improper operations.Through these efforts employees thoroughly understood the importance of

drug quality ensuring the integration of quality awareness in every aspect of Taitai Pharmaceutical Carried out Special

production. Training on GMP practices

532024 Sustainability Report 06 Safeguarding Product Quality

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 such

as the Patent Law of the PRC the Guidelines for Patent Examination and the Measures for the Implementation of Early Resolution Mechanisms

for Drug Patent Disputes (for Trial Implementation). Joincare has formulated management documents such as the Policy on Emergency Plan for

Intellectual Property and the Policy on Intellectual Property Education and Training to clarify the Group’s emergency plan for patent infringement and

the department responsible for training method of intellectual property. All these efforts aim to improve the management and operation of intellectual

property raise employees’ awareness of intellectual property protection and fully respect others’ research and innovation achievements so as to build an

R&D innovation ecosystem featuring mutual benefit and mutual trust.The Group continues to promote intellectual property protection improve the intellectual property system and accelerate the transformation of R&D

achievements within the Group. By registering patents trademarks copyrights and technical secrets we aim to protect the Group’s intellectual property and

optimise strategies in this regard. In 2024 the Group registered trademarks for two marketed products of Salmeterol Xinafoate and Fluticasone Propionate

Powder for Inhalation (健 可 畅) and Fluticasone Propionate Nebuliser Suspension (健 可 顺). By the end of the reporting period the Group had applied for

125 patents for inhalation preparations including 65 invention patents 49 utility model patents and 11 appearance design patents. Meanwhile 99 patents were

granted including 43 invention patents 45 utility model patents and 11 appearance design patents.Table: Joincare’s intellectual properties

Number of valid patents filed Valid Patents Filed Number of domestic invention patents

805 by the End of the 440

Reporting Period

Number of valid patents granted Valid Patents Granted Number of invention patents

1113 by the End of the

Reporting Period 566

Trademarks Registered Number of domestic Number of overseas Number of registered trademarks

trademarks trademarks

1890 by the End of the

Reporting Period 1690 200

54At the same time we make training plans every year to train employees on intellectual property knowledge and skills at various levels and stages. This

program aims to provide general knowledge and professional skills training related to intellectual property protection. Through methods such as case

studies interpretation of standards and practical application exercises we strengthen employees' awareness and professional capabilities in intellectual

property protection. In the days ahead we will continue to strengthen intellectual property protection with new technologies play a demonstration role in

intellectual property management and implement the Group’s strategy of innovation-driven sustainable development to contribute to the building of a

powerful country in intellectual property.Case Training on the intellectual property rights of innovative drugs

In 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 identification and differentiation of techniques during pharmaceutical

development. By analysing a great deal of real cases the training helped R&D personnel master relevant regulatory requirements and

enhanced their practical operations during patent mining. These training sessions assisted R&D teams to better understand and apply

intellectual property regulations thereby building up the Group’s competitiveness in the field 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 overseas

markets we will implement as far as possible the Doha Declaration on the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement and

Public Health. Where third parties invite us to provide our products for the least developed and low-income countries we will license our product patents

on appropriate terms and conditions.

552024 Sustainability Report 06 Safeguarding Product Quality

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 fully

respect and understand users’ needs to enhance customer satisfaction and improve the Group’s service quality in multiple

dimensions.

6.5.1 Responsible Marketing

Joincare strictly abides by the Advertising Law of the PRC the Against Unfair Competition Law of the PRC the Personal

Information Protection Law of the PRC the Measures for Examination and Administration of Advertisements of Drugs Medical

Devices Healthcare Products and Formula Foods for Special Medical Purposes and the relevant laws and regulations of the

places where the Group operates. We commit to provide accurate and truthful product information in the process of publicity

and 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 requirements

on compliance with industry laws and regulations and marketing ads and sales rules applicable to us accurate disclosure of

information 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 marketing

behaviours 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 business

activities it is strictly prohibited to interfere with or affect the rational clinical use of drugs by

exaggerating the efficacy of products making false and misleading statements concealing adverse

drug reactions and other means.* The interests of enterprises and others shall not be harmed in business activities; the Group’s

business 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 affect the order of the sales market.

56Responsible Marketing Audit

Joincare continues to improve its responsible marketing audit system and standardise the management of marketing activities

approval process. In the design production and distribution of our product information and promotional plans all marketing

materials are subject to the approval by authorised management personnel. Besides we provide professional and timely

marketing compliance consulting channels for employees. We also work with regulators and the media to review the compliance

of all our marketing materials in the process of brand promotion and building so as to ensure that promotional materials comply

with laws and regulations.Compliance Review Process for Joincare’s Marketing Campaigns

Material Produce publicity materials in strict accordance with the Measures for the Examination of Drug Advertisements

production

Review by relevant Review by the Business Department Legal Department and Internal Control Department to ensure that publicity

departments materials comply with relevant policies and regulations of the Group

Review by

Submit advertising materials to relevant regulators to obtain approval after review

regulators

Review by media Carry out the second round of review by targeted media

Advertisement Distribute publicity materials in compliance with laws and regulations and according to marketing plans

distribution

We have set out the requirements for our responsible marketing audit in the Responsible Marketing Policy and established the

review 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 marketing

activity is true accurate and legal free from false advertising and misleading information and compliant with the requirements

of the Group’s Responsible Marketing Policy. In addition the Group Risk Management Department conducts regular internal

audits on the implementation of the Responsible Marketing Policy to ensure that all marketing activities meet the requirements of

the policy.Responsible Marketing Training

The Group provides regular responsible marketing training for all employees. Meanwhile the marketing personnel will receive

additional professional training on a regular basis which covers marketing rules and policies product knowledge laws and

regulations 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 marketing

and advertising policies avoid exaggerated misleading or false advertising and provide consumers with truthful and trustworthy

product information.

572024 Sustainability Report 06 Safeguarding Product Quality

In 2024 Joincare constantly carried out responsible marketing training covering all employees in marketing positions with a

total training time of 17206 hours.Case Cultural building of responsible marketing at Joincare

This year Joincare’s Healthcare Product Division launched diversified training activities of responsible marketing such as online

live streaming on-site lectures recorded videos and practices and exercises. The training content included marketing management

policies product knowledge sales skills business negotiation project implementation and user expansion skills. Based on the

online knowledge library we introduced the training event of “Online Enhancement Camp for Lecturers” enabling us to organise

responsible marketing courses practices and exams in a more flexible and efficient manner.With a focus on the building of a compliance culture the Prescription Medicine Division formulated and optimised a series

of management documents such as the Prescription Medicine Compliance Management Policy and the Service Provider

Management Policy. The division also strengthened the compliance assessment and knowledge training for sales staff. Meanwhile

we carried out 50 unaccounted visits and compliance training events for partners in 18 provincial administrative regions across the

country 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 the

Healthcare Product Division conducted 119 training sessions for 1981 participants cumulatively and the Prescription Medicine

Division conducted 26 training sessions.Joincare’s Responsible Marketing Training

586.5.2 Customer Satisfaction

The Group conducts quarterly surveys of online and offline customers regarding

their satisfaction with the efficacy of our products the service provided by our

customer service/in-store staff product safety and packaging and their willingness In 2024 Joincare’s annual

to recommend our products to others. The aim is to understand customers’ attitudes customer satisfaction rate

to views of and suggestions for our products and services so as to improve our 92

product quality and service processes according to customer feedback. By fully reached %.meeting customer needs we strive to improve our service quality and increase

customer satisfaction.Customer Communication and Complaints

We focus on building a multi-channel platform for communicating and interacting with customers to understand their opinions

in time and meet their needs and expectations. Customers can make complaints on our official platform or by calling our hotline.Our after-sales personnel will handle customer complaints and provide customers with reasonable solutions after understanding

their needs. We also monitor the progress of the implementation of the solutions to ensure that customers’ reasonable

requirements are met. In addition we regularly collect and summarise issues that customers frequently complain about and

organise 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 and

complaint 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 regulations

on the protection of personal information. We have built a management system for customer privacy security risks to protect

customer privacy. Where reasonable we adhere to the principle of “Data minimisation” to minimise the collection of customer

information and other personal information and allow customers to change their personal information by calling or emailing

us. For highly confidential information we sign confidentiality agreements with relevant parties and take necessary measures to

ensure information security.In 2024 the Group did not have any

violation of customers' privacy or

breaches of customers' private data.

592024 Sustainability Report 06 Safeguarding Product Quality

6.6 Supply Chain Management

To ensure the stability and sustainability of the supply chain Joincare actively cooperates with suppliers to build a harmonious

and win-win partnership. In strict compliance with relevant laws and regulations such as the Bidding Law of the PRC we

continue to improve the internal policies including the Procurement Control and Management Procedures the Supplier

Management 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 business

ethics labour rights and human rights health and safety environmental protection and green development. Besides our

purchasing practices are continuously reviewed to ensure that our suppliers operate in alignment with our Code of Conduct for

Suppliers to avoid potential conflicts with ESG requirements.Northwest China 3.3% Southwest China 1.7%

Northeast China 1.1% Overseas 0.3%

Central China 13.8%

Southern China 35.7%

Geographical

Northern China 8.2% Distribution of

Suppliers

Eastern China 35.9%

Geographical Distribution of Suppliers

6.6.1 Supplier On-Boarding Management

We set strict standards for supplier on-boarding in consideration of fair bidding quality priority and diversified

procurement. Potential suppliers are evaluated on the quality control supply stability environmental and risk control

and other aspects through various forms such as desk assessment and product testing to verify their qualifications and

capabilities. On even ground we give preference to suppliers who have been certified to ISO 9001 ISO 14001 ISO 45001

and ISO 50001 or who have obtained other EHS-related certifications such as green factory clean production review and

safety production standardisation. Suppliers included in the list of qualified suppliers shall sign the Procurement Contract

and the Quality Assurance Agreement and return the Supplier Questionnaire Survey and the Supplier EHS Questionnaire

Survey which define their responsibilities of quality assurance and EHS management in the supply process and their

commitment to a stable and safe supply of production materials.

606.6.2 Supplier Classification and Risk Control

To assess and manage suppliers we first 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-specific risk sector-specific risk and

commodity-specific risk and identify our significant suppliers and significant indirect suppliers.Enterprise Enterprise product

financial status quality and service

Impact of

Enterprise Enterprise business

environment and

qualification environment

other EHS

International trade Impact of

environment and international finance

impact and exchange rates

Impact of national

Impact of unusual environmental Impact of social

climate protection regulations events

and policies

Impact of major Impact of workers’

unexpected events human rights

Impact of business Impact of festivals

ethics

Dimensions of Supply Chain

Risks Assessment of Joincare

Details of Joincare’s significant suppliers

Total number of significant suppliers in Tier-1

Total number of Tier-1 suppliers Total number of significant suppliers 531

4186849

Total number of significant indirect suppliers

318

612024 Sustainability Report 06 Safeguarding Product Quality

The risk level of suppliers is initially determined according to the type of materials they supply. We implement hierarchical

management 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 product

quality and the risk factors involved above every year and re-evaluate their risk level based on their annual quality review

reports.H (High-risk materials) M (Medium-risk materials) L (Low-risk materials)

Materials that directly affect the Materials that indirectly affect Materials that affect the

intrinsic quality of medicines such the intrinsic quality of medicines external quality or other quality

as APIs for medicine production. such as excipients for medicine characteristics of products such as

production packaging materials in packing materials.direct contact with medicines and

key consumables for preparations.To ensure production stability and product quality and safety throughout the production process we have developed

comprehensive 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 alternative

suppliers. We have alternative suppliers for raw materials and excipients as well as key consumables to minimise the supply

risks 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’s

multiple manufacturing sites across the country can back up each other with the ability to provide production support in case of

emergencies.We pay close attention to inventory levels in day-to-day operation. The following risk management measures are taken to ensure

the production stability from the source. Manufacturing subsidiaries are also taking proactive measures to address supply chain

stability risks.Signing strategic cooperation Planning for alternative suppliers Adopting the safe inventory strategy

agreements with key material and developing suppliers in advance and dynamically managing inventory

suppliers to ensure stable supply to avoid single sourcing. levels for materials supplied by high-

of materials. risk suppliers to maintain an optimal

inventory level to meet six months to a

year’s production requirements.

62Company Name Response Measures

Joincare Haibin implements diversified supply strategies and actively responds to supply chain

risks:

* The company ensures that its main raw materials and packaging materials are purchased from

multiple 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 new

suppliers. When existing suppliers experienced short-term supply shortage due to force majeure the

new suppliers would be able to provide sufficient supply in a timely manner. This practice prevented

Joincare Haibin production interruption and reduced the risk of supply disruption of raw materials and excipients as

well as packaging materials by approximately 40%.* The company plans to introduce domestic suppliers for exclusive imported materials striving to

mitigate risks such as delayed delivery due to the change of the international pattern or suppliers' own

reasons. In 2024 the company developed domestic suppliers. After several rounds of strict selection

and quality assessment Joincare Haibin selected those with excellent qualifications and strong

technical strengths to enrich the supply source. This helped mitigate the overseas supply risks caused

by international trade friction.Taitai Pharmaceutical has reviewed past cooperation patterns with suppliers and devised

feasible 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 and

production sites to understand their latest operating status and timely assists suppliers to solve

Taitai difficulties in production.Pharmaceutical * The company establishes long-term cooperation with suppliers and signs annual procurement

agreements to ensure that suppliers deliver according to requirements and to reduce the risk of supply

interruption.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 ensured

the stable supply of raw materials along the production line and avoided production stagnation

due to raw material shortage. As a result the company firmly guaranteed the continuity of

production and reinforced resistance to risks during procurement.To effectively prevent problems such as lack of products and supply shortage of qualified

suppliers Xinxiang Haibin has taken the following measures:

* For each type of key raw material the company ensures that there are 3 or more qualified suppliers to

keep the supply chain safe and stable.Xinxiang Haibin * The company predicts the market supply and demand according to the annual cyclical supply of

products and prepares certain safety stock of materials in short supply in advance to deal with the

uncertainty 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 by

changes of government policies and uncertain market supply and demand.

632024 Sustainability Report 06 Safeguarding Product Quality

6.6.3 Supplier Audit and Evaluation

Joincare has formulated the On-site Audit Management Procedures the Supplier

Quality 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 warehouse

management quality management system environmental protection and

occupational health and safety management. This year we further revised our

Supplier Management Procedures to set stricter management requirements for

those involved in the Group’s supplier audits and to clarify the approval process

of suppliers. In addition we continue to strengthen the management of significant

indirect suppliers conducting on-site audits of the manufacturers of key products Audited tier-1 suppliers

purchased from distributors (the significant indirect suppliers of the Group). We

also inspect the production facilities and management of the upstream supply chain 654

to ensure that significant indirect suppliers are qualified.We determine the audit frequency and form according to the risk classification of

suppliers. In case of any management or quality deficiencies during the audit we

On-Site Audits of Key

will inform them through quality feedback notice. The results are consolidated

in the Supplier Quality Audit Report as the requirements for suppliers to make Tier-2 Suppliers

rectifications and improvement. We also follow up on the rectifications of suppliers

in a timely manner collect rectification reports and help them to improve quality 11

management. In 2024 we audited a total of 654 tier-1 suppliers in accordance with

the annual supplier audit plan and conducted on-site audits to 11 significant indirect

suppliers.Table: Supplier audit frequency and form of Joincare

Supplier Classification Audit Frequency and Form

H (High-risk materials) One on-site audit every 3 years

One desk audit on quality every 3 years and on-site audit

M (Medium-risk materials)

when necessary

L (Low-risk materials) Qualification information update

In addition to the supplier audit we evaluate suppliers every year to get a timely and comprehensive understanding of

supplier management. According to the Supplier Annual Evaluation Form we give suppliers a letter grade of A B C and

D by assessing their product quality product delivery accuracy product delivery timeliness and service satisfaction. Among

them level C suppliers are required to make rectifications within a time limit during which we will reduce the quantity we

purchase from them accordingly. These suppliers will be re-evaluated and reclassified after rectifications. Level D represents

unqualified. We will immediately end the cooperation with suppliers rated level D and revoke their supply qualifications for

three years. The distribution of procurement shares in the next year is largely determined by the annual comprehensive supplier

evaluation. Depending on business conditions and the results of the annual comprehensive supplier evaluation in the previous

year subsidiaries of the Group will make appropriate adjustments to the procurement ratio of the current year. In 2024 the

Group conducted an annual comprehensive evaluation of 412 significant suppliers either through desk assessments or on-site

assessments.

646.6.4 Supplier ESG Management

Joincare keeps a close eye on suppliers’ sustainable development management and performance to systematically monitors their

ESG management. The Sustainability Committee of the Board of Directors as the highest decision-making body is responsible

for overseeing the implementation of supplier ESG programmes. At the same time we have clarified the environmental social

and governance requirements for suppliers in the Code of Conduct for Suppliers and increased our focus on suppliers’ ESG

management 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 factors

for supplier admission. In the early stage of cooperation we organise suppliers to learn the specific requirements of the Group’s

Code of Conduct for Suppliers guide them towards more sustainable production and operations and encourage them to obtain

management system certifications such as ISO 14001 and ISO 45001 to mitigate ESG risks in the supply chain. By the end of the

reporting period the Group and subsidiaries had 651 suppliers that obtained certification for environmental management systems

and 564 suppliers that obtained certification for occupational health and safety management systems.We fully review suppliers’ ESG management and implementation of the Code of Conduct for Suppliers during supplier audits

and evaluations and share ESG-related regulations and regulatory trends with suppliers during on-site audits. Suppliers that are

found to be in breach of the Group’s ESG requirements during the audit and assessment will be excluded from contracting if

they cannot achieve minimum ESG requirements within a specified timeframe. To supervise supplier EHS management we have

formulated the Supplier EHS Audit Management Procedure to clarify the EHS audit and relevant management requirements for

suppliers. Supplier EHS audit includes safety environmental protection and other fields covering toxic and harmful emission

indicators such as particulate matter sulphide VOCs emission to review the supplier’s management of indirect discharge of

water pollutants air pollutant emissions noise and other emissions. We organise the EHS audit for suppliers every year the

results of which will be considered as an important factor for the next annual purchase share assessment. This can urge suppliers

to promote their EHS management.Procurement staff are also organised to learn about the supplier ESG management. This enables them to familiarise their roles

with our supplier ESG programmes. Besides we organise relevant training to help procurement staff better understand supplier

ESG 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 Name Supplier EHS Audit

Xinxiang Haibin has incorporated EHS audits into the annual supplier audit plan. The audits cover staff

occupational health and safety management wastewater pre-treatment waste gas treatment and solid waste

Xinxiang Haibin

treatment. At the same time Xinxiang Haibin focuses on the supplier’s treatment of toxic and harmful

emissions reviewing its VOC emissions exhaust gas and other indicators.Jiaozuo Joincare carries out on-site supplier audit in accordance with ESG standards. The company

conducts supplier EHS audits by checking written documents and records operation of environmental

protection facilities during production and compliance with operation norms for employee safety. For

Jiaozuo Joincare suppliers not certified by the ISO 14001 and ISO 45001 systems Jiaozuo Joincare provides professional

guidance and assistance to advance their efforts for sustainable development. By doing so the company

aligns their production activities with the demanding requirements in terms of environmental protection

health and safety.Livzon Group a holding subsidiary of Joincare has incorporated EHS audits on suppliers into the annual

supplier audit plan. The audit covers environmental and safety indicators such as energy conservation and

emission reduction compliance with pollutant discharge standards compliance with solid waste collection

Livzon Group

and disposal regulations and ISO system certification. In addition Livzon Group closely monitors the

harmful emissions of suppliers including sulfur dioxide emissions and hazardous waste treatment indicators

into the scope of audits.

652024 Sustainability Report 06 Safeguarding Product Quality

6.6.5 Supplier Capacity Building

We provide multiple channels including training exchanges and collaboration to help our suppliers build their capacity. To

ensure the safety and reliability of our products we carry out training on quality assurance covering all high-risk suppliers at least

annually. During training we emphasise the Group’s quality standards and requirements to suppliers help them analyse existing

areas of improvement provide guidance on environmental protection technical improvement and other aspects and encourage

them to develop and implement relevant measures. In addition we will further summarise the quality problems found in supplier

audits and annual evaluations and conduct special training and communication for suppliers to improve training efficiency. In

2024 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 key

points of quality and EHS management.* In 2024 Haibin Pharma provided 18 quality training sessions for suppliers communicating the Group’s quality

management 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 material

suppliers 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 and

stable raw material supply thus laying a solid foundation for product quality. The company also actively supports

suppliers in improving their own supplier management level and helps them stay complaint with regulatory

requirements and build robust supplier management processes to ensure the quality and safety of materials from the

source.

6607

Access to

Healthcare

SDGs in this section

Based in the healthcare industry Joincare firmly implements the core innovation-driven strategy. With the protection of patients’ interests

as our fundamental goal we work hard to address unmet clinical needs. We deeply explore the diversified application of AI technology in

pharmaceutical sector and continue to introduce better medical products and healthcare solutions through continuous innovation and scientific

and technological efforts. Meanwhile we endeavour to improve the accessibility and affordability of high-quality pharmaceutical products and

services. We are making continuous efforts to expand our overseas business contributing to improving the quality and capacity of healthcare

services 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 and

monitoring the management of the Group’s Access to Healthcare issues through the Sustainable Development Committee. The Sustainable

Development 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.2024 Sustainability Report 07 Access to Healthcare

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 at

home and abroad. We practise the R&D mode that integrates independent R&D license-in and cooperative development and focus on key

treatment fields including respiratory diseases digestive system diseases assisted reproduction psychiatric disorders tumour immunity and pain

management. 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 continue

to invest more and strengthen the construction of innovative technology platforms for inhalation administration antibody sustained-release

microspheres 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 of

approvals for production or clinical trials.In terms of cooperative innovation we introduce new technologies and products through cooperative development technology transfer patent

licensing and other ways. Based on this we can rapidly promote the subsequent pharmaceutical clinical and non-clinical research and study on

industrial transformation of new products. We also work with first-tier top R&D teams in China to enhance product development in areas where

we 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-term

cooperative relations with well-known universities scientific 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 now

have three state-level R&D technology centres and a number of provincial and municipal innovation carriers. In the field of innovative drug

R&D we adopt the world's leading AI models comprehensively improving R&D efficiency in aspects such as target identification molecular

design and molecular screening shortening the R&D cycle and accelerating the process of bringing innovative drugs to market. We have also

completed the deployment and application of the DeepSeek-R1 671B becoming one of the first pharmaceutical enterprises in China to introduce

an AI model with hundreds of billions of parameters into its core business. In the area of synthetic biology pharmaceuticals we have established

R&D platforms including an AI computing platform a synthetic biology component library a high-throughput automated breeding platform as

well as platforms for industrial verification 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 1670 R&D personnel. We also have

continuously increased investment in R&D. This year the total R&D expenditures amounted to RMB 1532 million accounting for 9.81% of the

total audited revenues of the year.Number and Proportion of R&D Personnel of Joincare in Joincare’s R&D Expenditures and Proportion of Its Total

2020-2024 Revenues in 2020-2024

Number of R&D personnel (persons) Amount of R&D expendirures

(RMB in 1 milion)

12.11%11.63%11.63%

12.49%12.20%12.16%10.26%9.80%9.81%

9.32%

155716151717174016701260.531849.821758.661631.861532.00

2020202120222023202420202021202220232024

68Table: Major R&D/registration progress of Joincare in 2024

Date Major R&D/Registration Progress

January 2024 Clinical trial approval notice obtained for JKN2306 (Nav1.8 Inhibitor)

January 2024 Lay out two respiratory biological agents namely TSLP monoclonal antibody and IL-4R monoclonal antibody

January 2024 Compound Ipratropium Bromide Solution for Inhalation approved for drug registration in the Philippines

February 2024 Clinical approval notice obtained for Semaglutide Injection (for indications for weight loss)

February 2024 Clinical approval notice obtained for JP-1366 Tablets (P-CAB)

Lay out the oral drug for COPD PREP inhibitor enriching the pipeline of drugs under research in the field of respiratory

March 2024

diseases.May 2024 Approval for drug registration obtained for Fluticasone Propionate Nebuliser Suspension

June 2024 Approval for drug registration obtained for Salmeterol Xinafoate and Fluticasone Propionate Powder for Inhalation

June 2024 Application for drug registration submitted for Polymyxin B Injection

June 2024 Registration and marketing authorisation applications for Semaglutide Injection (for hypoglycemic indications) accepted

July 2024 JKN2401 (TSLP monoclonal antibody) entered Phase II clinical trial

August 2024 Application for drug registration submitted for Pixavir Marboxil Capsules

August 2024 Clinic trial approval obtained for Polymyxin E Sodium Methanesulfonate Injection

September 2024 Lay out the new generation of inhaled corticosteroids (ICS)

October 2024 The first subject has been enrolled in Phase II clinical trial for the GSNOR inhibitor

October 2024 Leuprorelin Acetate Microspheres for Injection passed the consistency evaluation

October 2024 Approval for drug registration obtained for Voriconazole Dry Suspension

November 2024 The first subject has been enrolled in Phase II clinical trial for the MABA dual-target project

November 2024 Application for drug registration submitted for Meloxicam Nanocrystal Injection

November 2024 Lay out PDE4 inhibitors to further enrich the products under research for asthma and COPD

December 2024 New drug clinical trial (IDN) approval obtained for JKN2403 Tablets (PREP Inhibitor)

Lay out β-lactamase inhibitors which can be used in combination with meropenem to treat hospital-acquired pneumonia/

December 2024

ventilator-associated pneumonia.

692024 Sustainability Report 07 Access to Healthcare

7.1.1 Diversified Product Development

Committed to Respiratory Health

Chronic 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 to

the original aspiration of “joining us in respiratory care” Joincare continues to improve the market presence of respiratory

disease medicines to support domestic respiratory disease treatment. After years of steady development . our existing products

and products under R&D cover all types of drugs for inhalation therapy for COPD and asthma providing more effective and

safe drugs for patients with COPD and asthma. By the end of the reporting period the Group had 10 varieties of inhalation

formulations in 14 specifications on the market.In 2024 Joincare achieved a strategic breakthrough in the R&D for respiratory system diseases laying out more than 20 R&D

pipelines including over 10 Class 1 innovative drugs. In the field of respiratory diseases Joincare's innovative products have

covered all dosage forms such as inhalation oral administration and injection forming a powerful product matrix for respiratory

diseases. This year the Fluticasone Propionate Nebuliser Suspension and the Salmeterol Xinafoate and Fluticasone Propionate

Powder for Inhalation were approved for marketing. The new influenza drug Pixavir Marboxil Capsule completed Phase III

clinical trial and an application for production was submitted. The injection of JKN2401 (TSLP monoclonal antibody) a new

drug 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 innovative

drugs have made phased progress.Case JKN2304 an FIC drug of Joincare officially enters Phase II clinical trial

In November 2024 JKN2304 a novel MABA dual-target drug of Joincare for the treatment of chronic obstructive

pulmonary disease (COPD) observed good safety in the Phase I clinical trial and officially entered the Phase II

clinical trial with the first 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 design

that simultaneously acts on both LABA and LAMA targets on one molecule providing a new way of thinking

to address the current challenges in COPD treatment. The dual-target mechanism has successfully avoided the

potential limitations and side-effect risks of single-agent therapy and the synergy of “dual-target” can achieve a

dual improvement in COPD symptoms and lung function greatly improving the efficacy and patients’ adherence

to treatments. Besides the drug offers both quick and long-lasting benefits and is expected to complement or even

replace existing treatment options. In terms of safety this drug significantly reduces the likelihood of side effects

on the central nervous system providing COPD patients with more efficient convenient and safe new treatment

options.

70Case Marketing application accelerated for Pixavir Marboxil an innovative

anti-influenza drug of Joincare

In December 2024 a notice from the Chinese Pharmacopoeia Commission was received approving the registration

of the generic name of Joincare’s innovative anti-influenza drug. The formal name approved is “Pixavir Marboxil”.This hints that the drug will soon be officially launched. Pixavir Marboxil a Class 1 innovative anti-influenza drug

is a novel cap-dependent endonuclease (CEN) inhibitor that effectively blocks replication and transmission of the

virus. The drug can effectively inhibit both influenza A and B viruses. In April 2024 the drug reached the primary

endpoint for Phase III clinical trial. In August 2024 the drug registration application was submitted and accepted by

the National Medical Products Administration.Compared with Baloxavir Marboxil a mainstream anti-influenza drug on the market Pixavir Marboxil acts faster

and shows higher efficacy and safety in relieving the symptoms of and cure influenza B infection and adolescent

influenza infection during its Phase III clinical trial. It also shows lower overall resistance rate. Compared with

another mainstream drug Oseltamivir with a recommended dosage of twice a day Pixavir Marboxil can inhibit virus

longer with only a single oral dose required for the entire duration of the treatment which significantly improves

clinical adherence and simplifies treatment while demonstrating high clinical value.Case 健可畅 a powder for inhalation of Joincare was approved for

marketing

In June 2024 Salmeterol Xinafoate and Fluticasone Propionate Powder for Inhalation (“健 可 畅 ”) of Joincare

was granted the marketing approval becoming the first powder for inhalation to be launched in China since the

publication 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 Fluticasone

Propionate Powder for Inhalation a mix of bronchodilator and corticosteroid for combination therapy is an

important product for the treatment of asthma and COPD. Among the various inhalation formulations powders are

of the highest technological complexity. The particle engineering process development process scale-up and drug

delivery devices are all challenging. Factors such as intensity timing temperature and humidity may affect the air

movement pattern of drug particles during inhalation and in turn the distribution of drugs in the lungs ultimately

affecting 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 it

is expected to break the monopoly of branded drug research in China and provide patients with more drug options.

712024 Sustainability Report 07 Access to Healthcare

R&D Efforts in Bio-Pharma

Over the years LivzonBio a subsidiary of Joincare has kept exploring biomedicine. It has built well-developed R&D and production technology

platforms 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 on

the well-developed R&D and industrialisation conditions of recombinant protein drugs LivzonBio continuously enriches the pipelines of

products 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 Humanised

Monoclonal Antibody Injection were accelerated successfully completing the enrolments for the Phase III clinical trial of ankylosing spondylitis

and 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 efficacy

endpoint. In January 2025 the BLA marketing application was filed. Meanwhile LivzonBio introduced quadrivalent recombinant influenza

vaccines (RIVs) to strengthen the iteration of the vaccine R&D platform.Development of Sustained-Release Microspheres for Injection

Microspheres are microspherical polymers prepared with high molecular materials with a particle size of 1-250 μm and containing one or

more drugs. Microsphere formulations are superior to traditional injection formulations in long acting and high bioavailability. They have

specific tropism to target organs and can greatly simplify drug administration and improve patients' adherence to treatments with outstanding

clinical advantages. Livzon Microsphere a subsidiary of Joincare focuses on the R&D of anti-tumour endocrine-regulating and antipsychotic

microsphere formulations which are advantaged for their long-acting and sustained-release mechanism. The company has an in-depth study of

long-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 successfully

passing the on-site verification of drug registration and the clinical registration verification by four centres with supplementary information

submitted on time. In September 2024 approval was obtained for adding Endometriosis Endometriotic as an indication for use for Triptorelin

Acetate 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 field. Leuprorelin Acetate Microspheres for

Injection (Three-month sustained-release) is being tested for bioequivalence (BE). Leuprorelin Acetate Microspheres for Injection has passed the

consistency evaluation becoming the first long-acting sustained-release formulation of gonadotropin-releasing hormone (GnRH) in the world

approved for bioequivalence (BE) studies in accordance with the U.S. FDA guidelines for individual agents.Care about Mental Disorders

Mental illnesses severely impact the lives of hundreds of millions of people globally. They not only cause great harm to the physical and mental

health of patients but also impose a heavy burden on families and society. Livzon Group Joincare’s holding subsidiary has been actively

deploying 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 antipsychotic

drug that has been approved in China for the treatment of schizophrenia. It has relatively weak extrapyramidal reactions is less likely to cause

adverse reactions such as weight gain hyperlipidemia and hyperprolactinemia and has good tolerability. In addition in July 2024 Livzon also

introduced the innovative drug NS-041 intended for the treatment of epilepsy and depression. Currently this project has completed Phase I

clinical 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. Livzon

has deployed multiple complex long-acting formulations in the field of mental and neurological disorders. Several of these products are in the

review process for marketing approval or the late stage of clinical trials and are expected to be launched in the next two years.

727.1.2 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 quality

technology and molecular science the vertical AI tools have significantly improved the R&D efficiency of key links such as molecular modelling

for drug discovery drug safety and effectiveness prediction pharmaceutical process development drug clinical research as well as data

management and analysis and reduced research risks. Drug R&D is usually a long-term costly and high-risk process. The use of AI is expected

to effectively reduce R&D costs and cycles and bring better drugs to patients faster. In addition we integrate patients’ drug costs as a key

consideration at the beginning of process development laying the foundation for new products to benefit more patients.We have applied AI tools throughout the process of synthetic biology R&D including project initiation research data analysis and experimental

verification 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 tools

for structure comparison based on deep learning we can quickly target candidates in the protein structure database with AI prediction greatly

reducing trial and error costs improving R&D success rate and effectively shortening the project cycle. In the future the Group will continue to

explore 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 the

field of COPD

In 2024 the Group conducted a research on the application of AI-powered drug discovery (AIDD) for drug discovery in the field

of COPD. The results show that AIDD has certain advantages in the construction of candidate compound libraries through skeletal

editing. AIDD skeletal editing tools significantly improve the efficiency and success rate of drug discovery through innovative

molecular editing technologies and the resulting molecules are more diverse and novel than those by artificial designs providing

strong 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 in

core fields. By leveraging global superior resources and cutting-edge technologies we enhanced the Group's commercialization and integration

capabilities. This year we have made phased progress in business development introducing a number of innovative drugs and continuously

expanding indications such as those related to the respiratory system and pain relief.

732024 Sustainability Report 07 Access to Healthcare

Case Joincare collaborates with Bayer to develop a FIC drug to fill the

treatment gaps in China

In March 2024 Joincare signed an exclusive license agreement for the development commercialisation and production of

a small molecule inhibitor in China with Bayer AG a German company. This small molecule compound an oral COPD

drug that effectively prevents the production of inflammatory mediators in COPD by inhibiting the activity of prolyl

endopeptidase (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 officially entered the phase of “Phase I Bridging Study on HealthySubjects” marking a significant 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 which

showed good safety and tolerance and provided important support for subsequent trials. Meanwhile preclinical data

indicate that the drug has no less potential for efficacy than the high-side-effect oral COPD drugs currently on the market

overseas but not in China while showing significantly better safety than that of the latter. If successfully developed and

launched the new drug will become the first PREP inhibitor going to market in the world and the first approved oral

COPD drug in China. This drug is intended to meet the unmet critical needs by providing new treatment options for related

diseases. It is expected to fill the treatment gap in the domestic market and provide patients with more efficient and safe

treatment options. The launch of the drug will also significantly improve the treatment effect on associated diseases thus

improving the life quality of patients.Case Livzon Pharma and NeuShen Therapeutics cooperate in developing a

BIC drug for mental illness

In July 2024 Livzon Pharmaceutical Factory a wholly-controlled subsidiary of Joincare’s holding subsidiary Livzon

Group 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 marketing

application for NS-041.NS-041 is a highly selective KCNQ2/3 activator targeted for the treatment of neuropsychiatric diseases such as epilepsy

and depression. NS-041 shows good and differentiated preclinical efficacy and safety based on its data with potential to

become 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 efficacy for patients

with diseases such as focal epilepsy.The potassium channel KCNQ2/3 is considered to be one of the key targets for the development of next-generation

antiepilepsy drugs and its novel mechanism of action is expected to fill the gap in current therapies. The potential

indications for this target can also extend to a variety of emotional disorders to compensate for the unmet clinical needs

with existing drugs such as slow onset of action and insufficient efficacy. The drug candidates of the same target in

the global market are currently in the clinical research phase and have obtained positive data on epilepsy and severe

depression.

74Case 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 of

inflammatory factors by regulating the transcription of genes related to inflammation and inhibit the proliferation of

immune cells. In October 2024 Joincare introduced and announced the launch of a new small-molecule glucocorticoid

drug. Targeting respiratory diseases such as COPD bronchial asthma and rhinitis the drug can activate the activity of

specific receptors and effectively improve efficacy and reduce toxic side-reactions. It is expected to be a new therapy

option for patients with COPD bronchial asthma and rhinitis. Data shows that this drug has shown more than three times

the efficacy of the existing clinically used glucocorticoids in mice OVA asthma models and has the potential to become

a Best-in-Class (BIC) drug. It marks the important progress made by Chinese enterprises in the global R&D of new-

generation glucocorticoids.In 2024 Joincare and its subsidiaries gained many external honours and recognition. The Group continuously won the titles of “Top

100 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’s

first inhalation formulation for the treatment of bronchiectasis and the China’s first inhaled antibiotic 健 可 妥 a modified 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” in

Guangdong 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 treatment

costs for rare diseases result from their low market demand difficulties in R&D and lack of experience in clinical medication and even

there is no medicine for some rare diseases. Under the guidance of relevant policies such as the “Healthy China 2030” Planning Outline

and the Guidelines for Diagnosis and Treatment of Rare Diseases we based on our own scientific platform and capabilities undertake

corporate social responsibility actively by continuously investing in research on rare diseases and focusing on improving the current

situation 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 affects

middle-aged and aged people and has cardinal symptoms including progressively increased dyspnea with restrictive ventilation

dysfunction and ventilation dysfunction. Besides it is featured by rapid progress poor prognosis and no proven effective treatment

to date. It’s proved that traditional hormone therapy or anticoagulant therapy is unable to alleviate the disease progression of IPF and

it has strong side effects or the risk of aggravating complications. Therefore it is not recommended for the treatment of IPF. Due to

the limitations of existing drugs Joincare developed the modified new drug XYP-001 which is a new mechanism/target drug in IPF

indication development area. If it is launched it will be a new and more secure drug alternative for IPF patients.

752024 Sustainability Report 07 Access to Healthcare

Malignant Hyperthermia

Malignant Hyperthermia (“MH”) a rare clinical hereditary disease that can cause perioperative death due to conventional anaesthesia has

an extremely low incidence rate and an extremely high mortality rate. Dantrolene Sodium for Injection is the only specific medicine for

the 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&D

and 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 early

days. After over a decade of arduous exploration it obtained the medicine registration certificate in October 2020 and thus became the first

enterprise in China to successfully produce generic Dantrolene Sodium for Injection bringing good news to the vast number of MH patients and

anaesthetists in China. By the end of the reporting period a total of 121 hospitals across China have included Livzon Group's Dantrolene Sodium

for Injection in their drug reserves covering approximately 53% of provincial-level administrative regions.Systemic juvenile idiopathic arthritis

Systemic juvenile idiopathic arthritis (“sJIA”) is a rare chronic systemic disease that mainly featured by arthralgia lasting 6 weeks or more and

accompanied 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 biologics

approved for sJIA indications in China and also the drug for the treatment of sJIA active systemic symptoms or active sJIA with failed first-line

treatment as recommended by domestic and overseas definitive guides. Characterised by fast onset and sustained efficacy it can rapidly improve

the 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 production

and marketing of vaccines patent medicines generics APIs and IVD (In-Vitro Diagnostics) reagents and devices overseas mainly via direct

operation and authorising local distributors. So far our products have been approved for registration in major pharmaceutical markets and

emerging markets in multiple countries and areas across Asia Europe North America and Africa.Joincare’s Main Business Revenue Overseas and Proportion of Its Total Revenues in

Main business revenue overseas Ratio of overseas business

(RMB in 1 millon) revenue to total revenue (%)

19.79%

16.17%16.68%15.52%16.91%

In 2024 our revenues generated from

overseas businesses reached RMB

2660.472571.582841.962583.652641.26

2641.26 million. 2020 2021 2022 2023 2024

76Advancing Global Healthcare Strategy

Internationalisation is the long-term strategy of Joincare’s development. The Group practices the global layout strategy in multiple dimensions

such as license-in of products license-out of technologies and IPs and overseas capital market exchanges. Business expansion plans for overseas

markets including low- and middle-income countries also have been formulated to enhance the global presence. In the process of license-in we

actively 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 overseas

markets 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-end

complex 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 external

licensing and authorisation of innovative products and pipelines and we conduct discussions on cooperation with multiple parties around the

world. Among them we are discussing the license-out of the modified new drug Tobramycin Inhalation Solution with customers in European and

Southeast Asia.We pay close attention to the policies and opportunities for innovative development in the capital market and actively use the capital market to

support our strategic development and business layout. In 2024 we signed a USD 100 million loan agreement with the International Finance

Corporation (IFC) a member of the World Bank Group. We continue to enhance the building of overseas business development teams and

promote overseas transactions. We carry out on-site exchanges with investors to elaborate on the Group’s innovation strategy international layout

and key products to overseas institutional investors. These efforts have further boosted the Group’s international presence laying a foundation for

the 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 such

as Malaysia and the Philippines and started registration application in the Netherlands Germany Italy and other EU countries. Our inhalation

formulations have quality and technical advantages in the Philippines and Malaysia and are expected to benefit 0.5% to 3% of local patients with

COPD ensuring drug quality and supply stability. In January 2024 the Compound Ipratropium Bromide Solution for Inhalation was approved

for drug registration and granted the registration approval in the Philippines. In February 2024 the Levosalbutamol Hydrochloride Nebuliser

Solution 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 includes

marketing approval obtained from the US FDA for Cetrorelix Acetate Powder for Injection registration certificate obtained from the Ministry

of Health of the Russian Federation for Anti-viral Granules a flagship product in the TCM sector and cooperative projects planned for

Semaglutide and Tocilizumab Injection in Latin America the Middle East Asia Africa and Latin America. Other highlights include registration

certificate 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 the

overseas medium- and high-end GMP certification - PIC/S GMP certification for our products and have completed the on-site inspection of GMP

certification for member states under the Pharmaceutical Inspection Cooperation Scheme (PIC/S) opening up a convenient channel for products

to enter the global market.

772024 Sustainability Report 07 Access to Healthcare

Case Joincare has accelerated the business expansion for inhalation

formulations in Southeast Asia Europe and the United States

In January 2024 Joincare obtained the registration approval for Compound Ipratropium Bromide Solution for Inhalation in the

Philippines which set a good beginning for other products to enter the global market. The Philippine FDA plans to conduct

GMP certification on-site inspection on the Company's inhalation formulation workshops. In the same year Malaysia officially

scheduled for PIC/S GMP certification on-site inspection for Compound Ipratropium Bromide Solution for Inhalation. Passing the

high-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 test

their stability in overseas climate zones. The preparations involved include the Tobramycin Inhalation Solution the Ipratropium

Bromide Solution for Inhalation the Budesonide Suspension for Inhalation and the Salmeterol Xinafoate and Fluticasone

Propionate Powder for Inhalation. The studies were steadily advanced according to different standards and guidelines in overseas

countries. In 2024 we set up subsidiaries in the Philippines and the Netherlands to secure business development in key regional

markets. The Philippine subsidiary obtained the drug business license and submitted GMP on-site inspection applications

for multiple inhalation preparation workshops to the Philippine FDA. The Dutch subsidiary completed the quality system

construction submitted the application for production permit and import permit to the Medicines Evaluation Board (MEB) of the

Netherlands and obtained MEB-granted EU registration declaration schedule for target types.Case Anti-virus Granules a TCM preparation of Livzon Group obtained the

registration certificate in Russia

Livzon Group has accelerated the expansion of its overseas layout for traditional Chinese medicine (TCM) preparations. In

April 2024 it successfully obtained the EAC Certificate of State Registration issued by the Russian authorities for the Anti-viral

Granules 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 influenza. In the future

this product can freely circulate and be sold within the customs territory of the five member countries of the Eurasian Economic

Union (Russia Kazakhstan Belarus Kyrgyzstan and Armenia).Case Livzon Group's Tocilizumab Injection has been launched in Brazil to

gain a market share in the Latin American market

Brazil is a major emerging pharma market in the world taking a more than half share in the Latin American pharma market with a

leading pharma regulatory environment. Joincare’s holding subsidiary Livzon Group partners with a world-leading pharmaceutical

MNC 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 of

biopharmaceutical products in Latin America and enabling more patients to benefit from advanced biopharmaceutical technology.

78In terms of APIs and intermediates we accelerate the development of overseas API business and step up efforts 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. Efforts are continued to tackle the technical

bottlenecks in the production of the starting material demeclocycline hydrochloride (DH) to meet the differentiated needs of customers around the

world. In 2024 the product was registered globally breaking the market pattern dominated by high-price foreign suppliers gaining about a 60%

market share delivering affordable 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 globalise

and integrate the core supply chain while expanding the business map. This year the Group entered into strategic cooperation with PT KALBE

FARMA TBK. a large pharmaceutical enterprise in Southeast Asia to build an API factory in Indonesia. The future products are expected to

be sold to Europe and the United States while meeting the market demands in Southeast Asia to further improve the global accessibility of the

Group's high-quality products.

7.4 Improving Product Affordability

The cost of medicines accounts for the majority of the medication-related financial burden. Joincare is committed to alleviating the financial

burden on patients by adopting inter-country and intra-country tiered pricing based on affordability aiming to provide high-quality medicines to

more patients at affordable prices.Domestic Market

Respond to the National Centralized Drug Procurement

The Group has actively responded to the national centralized procurement policy and deeply participated in it demonstrating a high sense of

social responsibility and forward-looking strategic vision. We not only help the country achieve the goals of medical cost control and improving

the efficiency of medical insurance fund utilization but also bring tangible benefits to a large number of patients. Patients can obtain high-quality

drugs at a lower cost which greatly reduces their economic burden and improves the accessibility of drugs.Joincare has always regarded fulfilling the corporate mission as the core driving force for its development. Against the backdrop of the national

centralized procurement policy we deeply understand that this is not only an opportunity to shoulder social responsibilities but also a new

opportunity for the enterprise's own development. Since the implementation of the centralized procurement policy the Group relying on its

strong 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 own

sustainable development we have also injected new vitality into the medical and health undertakings and continuously contributed to the

achievement of national goals.Products Selected in the National Centralized Drug Procurement

Product Batch No. of the procurement

Budesonide Suspension for Inhalation The 5th Batch

Compound Ipratropium Bromide Solution for Inhalation The 5th Batch

Ipratropium Bromide Solution for Inhalation The 5th Batch

792024 Sustainability Report 07 Access to Healthcare

Product Batch No. of the procurement

Tinidazole Tablets The 5th Batch

Meropenem for Injection The 7th Batch

Terbutaline Sulfate Solution for Nebulization Inhalation The 7th Batch

Voriconazole for Injection The 8th Batch

Sodium Cefodizime for Injection The 8th Batch

Levalbuterol Hydrochloride Solution for Nebulization

The 9th Batch

Inhalation

Admission to the National Reimbursement Drug List

The Group actively responds to admission to the medical insurance list. In 2024 in the new version of the National Medicine List for Basic

Medical Insurance Work Injury Insurance and Maternity Insurance (“National Reimbursement Drug List”) published by the National Healthcare

Security Administration Joincare had 215 products included among which 94 were Class A and 121 were Class B. For the products included

in the National Reimbursement Drug List we strictly follow the regulations and publicly list the medical insurance payment standards on the

medical price inquiry platforms of local Healthcare Security Administration to ensure that the drug pricing is reasonable and transparent.Key Products in National Reimbursement Drug List Medical Insurance Payment Standard

Tobramycin Inhalation Solution (“ 健可妥 ”): As a modified innovative medicine developed

independently by Joincare 健可妥 is the only approved inhalation formulation in the world

for the treatment of bronchiectasis accompanied with pseudomonas aeruginosa infection. It was

approved for marketing in October 2022 breaking the dilemma that no atomised antibiotics are RMB 253.60

available for patients with bronchiectasis in China. As a key item under the National Key New

Drug Creation Programme 健可妥 offers the benefits of low-dose local administration high (5ml:300mg/piece)

concentration non-ototoxicity and non-nephrotoxicity and low medicine resistance. It is safer

for both childhood and elderly patients and represents a significant breakthrough in the field of

respiratory system diseases.Ilaprazole Sodium for Injection (“ 壹丽安 ”): 壹丽安 a patented new drug of Joincare’s

holding 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 also RMB 63.00

received approval for a new indication "prevention of severe stress-induced ulcer bleeding". The

medical insurance payment for this drug was reduced from RMB 71/piece to RMB 63/piece (10mg/piece)

which expands the application range of the product meets clinical needs and further alleviates

the economic burden on patients.Triptorelin Acetate Microspheres for Injection (“ 维宝宁 ”): It is a modified new drug developed

by 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 with RMB 1000.00

the Triptorelin Acetate Injection 维宝宁 offers significant advantages such as a longer duration

of action and fewer doses required. The medical insurance payment is RMB 1000 per bottle (3.75mg/bottle)

representing a price reduction of approximately 20% compared to the imported formulations

already on the market.

80Overseas Market

When entering overseas markets Joincare comprehensively considers the local economy healthcare level and price benchmarking to offer

equitable pricing in line with the current regional development avoiding an increase in the financial burden of patients. After an adequate

assessment of local per capita income and analysis of local patients' affordability differential and tiered pricing strategies are implemented

for different markets. Joincare also positively goes for the bidding of local governments during product promotion in developing

countries overseas so that affordable medicines and services would be offered locally. By the end of the reporting period the Group and

its subsidiaries had adopted equitable pricing policies for 28 products in South Asia Southeast Asia Eastern Europe Central Asia South

America 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 promote

pricing transparency in both developed and emerging markets. For formulations Livzon Group strictly adheres to the local government's

pharmaceutical pricing policies in developing countries. The generic drugs are usually priced at 60-70% of the price of the original drugs. For

APIs Livzon Group reduces intermediary channels by selling APIs directly to the end formulation factories. This approach enables accurate

knowledge of the purchasing prices of end customers thereby enhancing pricing transparency and reducing local pharmaceutical supply costs.Table: Livzon Group’s pricing policies and implementation

Business Pricing policies Pricing

* Carry out commercial cooperation with about more

* Continuously reduce the production costs of APIs. than 50 customers in India supplying 20 kinds of APIs

Sell APIs and intermediates in emerging markets/ and intermediates. Among them the selling price of

developing countries at prices lower than those in intermediates is approximately 5%-10% lower than

developed countries to reduce the medication costs for that in developed countries and the selling price of

the target market countries. APIs is about 20%-30% lower than that in developed

APIs countries.* Adhere to the principle of fair pricing for both

domestic and overseas markets. For domestic strategic * Some high-end antibiotic products have a large

partners by signing an annual supply agreement demand in overseas markets. The average selling

certain price discounts will be given according to the prices in regions such as South America Southeast

purchase quantity. Asia and Africa are approximately 15%-30% lower

than those in developed countries.* For regions such as South Asia Southeast Asia

* Formulate reasonable prices that are in line with the

Eastern Europe Central Asia South America and

local development level and provide formulated drugs

Africa price policies for formulated drugs that are

Formulations in the markets of Asia Africa and Latin America

cheaper than the on-patent formulations and can

which are cheaper than the on-patent formulations and

achieve similar therapeutic effects have been provided

can achieve similar therapeutic effects.or formulated.* Actively inquire about the prices of multiple

* Conduct thorough research on the terminal selling

transportation companies seek freight services with

prices of products and formulate more preferential

Reagents the best quotations and provide customers with

product prices in less developed countries and low-

transportation methods that are low in cost and high in

income countries.cost-effectiveness.

812024 Sustainability Report 07 Access to Healthcare

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 distribution

of medical resources and imbalanced development of medical technology have become increasingly prominent. As a result many patients

in developing countries still lack access to timely effective and affordable healthcare. Joincare adheres to the corporate mission of "For the

health For the future" and fully leverages our own strengths to continuously popularise knowledge of chronic diseases and eliminate the

indiscrimination use of antibiotics. We also actively involve in capacity advancement initiatives in developing countries and contribute to global

health 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 million

childhood patients with asthma and 100 million patients with COPD. However the awareness rate of COPD is way below the target set by the

Healthy China initiative 2019-2030. In order to strengthen the prevention and treatment system for chronic respiratory diseases the National

Health Commission of the PRC officially included COPD in the basic public health service program in 2024. This marks that the prevention and

treatment of respiratory diseases in China has entered a new stage.Joincare actively responds to the national strategy. We establish an "online + offline" science popularization network including organising online

live-broadcasting via new media publishing academic papers supporting academic research and holding and participating in offline academic

promotion activities. With various measures Joincare endeavours to educate the public about chronic respiratory diseases such as asthma and

COPD and encourages people potentially suffering from these diseases to take regular pulmonary function tests effectively contributing to the

prevention and treatment goals of respiratory diseases set by the "Healthy China 2030" initiative.

82Case “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 as

WeChat official account Douyin and Weibo we promote

knowledge on chronic respiratory disease and give treatment

support.* During the “World Asthma Day” activities in 2024 the

“Respiratory Experts’ Views” platform joined hands with 18

core hospitals across the country to live stream on asthma

in 13 sessions. Professor Chen Yuzhi from the Children's

Hospital affiliated to the Capital Institute of Pediatrics

worked with 27 first-line experts across the country

answered questions for the public from the perspectives

of asthma medication asthma management and asthma

misunderstandings thereby strengthening asthma education.* During the “World Bronchiectasis Day” activities in 2024

the “Respiratory Experts' Views” platform collaborated

with the China Bronchiectasis Registry and Research

Collaboration (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 streaming

month activity was launched. Professor Guan Weijie

from the First Affiliated Hospital of Guangzhou Medical

University led 57 experts from 32 core and tertiary hospitals

across the country to carry out knowledge popularisation

on diseases providing detailed explanations on the

pathogenesis diagnosis methods and the latest treatment

progress 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 the

Respiratory Doctors Association of the Chinese Medical

Doctor Association launched a COPD live-streaming month

activity. A total of 70 front-line experts from 62 tertiary

hospitals participated in the live streaming calling for public

attention to lung health.By the end of the reporting period the “Respiratory Experts’Views” platform had assembled over 5000 respiratory

experts hosted over 500 educational live broadcasts on

respiratory diseases involving over 1000 experts and over

30 million views and attracted over 5 million followers.

In 2024 a total of 334 educational live broadcasts were

delivered.

832024 Sustainability Report 07 Access to Healthcare

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 to

address antibiotic resistance mainly from the following three aspects:

Responsible production

During the production of antibiotics we strictly control the discharge of wastewater waste gas and waste residue to prevent

antibiotics from entering the natural environment. We also refine the production process to improve the production efficiency of

antibiotics and reduce waste generation.Responsible use

In strict accordance with the Management Policy for Clinical Use of Antimicrobial Medicines Joincare strictly regulates the

clinical use of antibiotics and strengthens the management of its anti-infection product portfolio. Based on the classification of

antibiotics 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 control

of medicine-resistance bacteria. Training lessons and lectures on optimising medicine-resistance bacteria treatment schemes are

given to improve the clinical efficacy of antibiotics and effectively prevent misuse.Responsible R&D

We continue to carry out R&D to limit or prevent antibiotic resistance explore the mechanism of resistance through

cooperation with third parties and study new ways of drug administration by taking the advantage of fewer dosage of inhalation

formulations to ensure reasonable drug administration. Meanwhile we are conducting post-marketing studies on Tobramycin

Inhalation Solution which shows a low risk of resistance based on its resistance indicators in Phase III clinical trial.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. Through

these efforts we aim to promote development and innovation in the field of medicine to ensure that all people can live a healthy life.

84Case Joincare’s novel beta-lactamase inhibitor for injection enables upgraded

infection treatment

In 2024 Joincare focused its efforts on the development of China’s first and world’s only new beta-lactamase inhibitor for

injection 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 resistant

to Meropenem by mechanisms such as producing beta-lactamases thus impeding the efficacy. The new beta-lactamase inhibitor

for injection developed by Joincare can accurately inhibit bacterial resistance enzymes and effectively restore the efficacy of

antibiotics. It acts locally when injected significantly reducing the risk of systemic side effects (e.g. gastrointestinal discomfort

and allergic reactions) and providing patients with safer and more efficient treatment options.Case Livzon Group introduced the innovative antifungal drug SG1001

In recent years the global concern of antifungal resistance has become increasingly prominent. In 2024 Livzon Group introduced

the innovative Class 1 antifungal drug SG1001 and was exclusively licensed to conduct R&D production and commercialisation

of all the possible formulations against all indications in antifungal treatment and other fields in Greater China. SG1001 is a

selective inhibitor of fungal dihydroorotate dehydrogenase (DHODH) with a mechanism of action that is distinct from common

antifungal agents such as polyene azole and echinocandin showing significant antibacterial activity against aspergillus (including

aspergillus fumigatus) scedosporium spp. penicillium trichoderma and talaromyces marneffei. By the end of the reporting

period 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 China

are 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. It

is called the last line of defence for MDR GNB infections against which antibiotics such as β-lactams aminoglycosides and

quinolones are ineffective. The Livzon Group is developing polymyxin products. By the end of the reporting period Livzon

Group’s API polymyxin E sodium methanesulfonate had obtained the notice of approval for APIs in China and the European CEP

and passed the US FDA review.

852024 Sustainability Report 07 Access to Healthcare

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 involved

in capacity advancement initiatives for healthcare in low- and middile-income countries and work closely with local partners to collectively improving the quality and

capacity of health services in those regions.Training local healthcare workers

While expanding our formulation business in developing countries the Group actively provides training for local healthcare workers to improve

local 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 product

usage and related training for local healthcare workers. Also Joincare’s holding subsidiary Livzon Group is actively engaged in overseas

academic promotion and training activities. Livzon Group provides detailed product usage instructions and shares clinical experience with

healthcare workers in developing countries so as to ensure the safe and effective use of our products for local patients.Case Livzon Group provides academic training for healthcare workers in

Indonesia

In 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 attracted

around 500 Indonesian reproductive experts. During the event both sides invited well-known Chinese reproductive experts to

introduce recombinant human chorionic gonadotropin products and share their clinical experience. This event received positive

feedback from Indonesian reproductive experts and effectively promoted the awareness and application level of this drug among

local medical staff.Case Livzon Group provides academic training for healthcare workers in

Uzbekistan

Livzon Group actively helps Uzbek medical staff to improve their professional skills in the field of assisted reproduction. In

May 2024 Livzon Group organised Chinese experts with rich clinical experience to participate in the Uzbekistan Reproductive

Medicine Conference. There they shared the experience of assisted reproductive technology and the utilisation of related

medications in China. The experts shared intricate cases of using assisted reproductive products in China answered questions

from local doctors and received positive feedback from Uzbek experts. In September of the same year Livzon Group together

with its partners invited 9 Uzbek reproductive experts to visit 2 leading hospitals of assisted reproductive technology in China

and exchange ideas with the hospitals' doctors. The Uzbek experts organised a sharing meeting after returning home providing

in-depth training for 70 assisted reproductive doctors which strongly promoted the improvement of local assisted reproductive

technology.

86Assistance to local manufacturers to improve manufacturing quality

As an APIs supplier Joincare together with its holding subsidiary Livzon Pharmaceutical Group shares its research results with less developed

countries and regions overseas and proceeds technology transfer. We improve the capability of local manufacturers to ensure that they can

achieve international drug manufacturing quality standards. By building API plants in Indonesia and introducing advanced production equipment

and processes we encourage local manufacturers to upgrade their production processes and technology applications. High-quality API production

also helps local pharmaceutical companies produce more competitive drugs improve drug accessibility and meet the medical needs of local

residents.Case Joincare sets up a joint venture factory in Jakarta

PT Livzon Pharma Indonesia is a strategic joint venture between PT KALBE FARMA TBK. (“Kalbe”) and our subsidiary

Livzon Group. The company has been active in manufacturing operations in Indonesia since its establishment in July 2024. It is

committed to improving Indonesia’s pharmaceutical industry through localised API manufacturing. The company strictly follows

the principle of global sustainable development. It focuses on responsible procurement and environmental management in the

production 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 the

development of the joint venture. In terms of production standards PT Livzon Pharma Indonesia is established in accordance

with 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 has

promoted the transfer of local technology and the enhancement of local research and development capabilities. The introduction of

advanced technologies and concepts has helped to achieve the goal of improving local pharmaceutical production and propelling

the 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 be

an emerging generic drug hub in the region. Our subsidiary Livzon Group has established a partnership with a leading producer

of reproductive products in Bangladesh. Following the memorandum of understanding on strategic cooperation and localised

production cooperation of biologics signed with the company in 2023 a formal cooperation agreement was inked in 2024 that led

the commencement of localised production of Recombinant Human Choriogonadotropin alfa for Injection in Bangladesh marking

the 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 and

more than 3 million local patients in need of assisted reproduction will have better treatment options.

872024 Sustainability Report 07 Access to Healthcare

Supporting local pharmacovigilance

Pharmacovigilance work in developing countries started relatively late and progress has been slow leaving a number of

problems to be solved. We have distributors in Macao and the Philippines for drugs including the Compound Ipratropium

Bromide 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 distributors

and 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 data

evaluation and reporting to domestic and foreign regulatory authorities. At the same time through our agents we investigate and

monitor the use of our drugs overseas conduct business training for local staff receive regular adverse event reports and help to

improve the local pharmacovigilance system for these drugs.Upon launching the product Recombinant Human Choriogonadotropin alfa for Injection in Indonesia our subsidiary Livzon

Group took the opportunity to partner with local companies and governments to improve local pharmacovigilance. Since the

launch of the product Livzon Group has made great efforts to identify evaluate analyse and prevent adverse drug reactions or

any other issues that may be related to the drug. This is to ensure the scientific and rational use of the drug effectively prevent

local people from substandard or unqualified 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 local

medical 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. They

introduced Chinese research achievements in the field of reproductive health to local obstetricians and gynecologists shared

the established experience in technology application and demonstrated the latest scientific and technological innovations in the

industry. These efforts helped to promote new ideas and technologies in the field of reproductive health in Pakistan improving

local medical expertise and drug use.

8808

Talent

Management

SDGs in this section

In keeping with its core values of “putting people first” Joincare always regards employees as a valuable asset and the driving

force for its sustainable development. We are fully committed to protecting the rights and interests of our employees listening to

their suggestions and fostering a diverse respectful and inclusive working environment. We place particular emphasis on talent

management continuously introducing talents and optimising training and compensation and benefits systems to attract develop

and deploy talent in a scientific and rational way. Meanwhile we take occupational health and safety very seriously and are

working hard to protect employees’ well-being strengthen our work safety defences and build a healthy business.2024 Sustainability Report 08 Talent Management

8.1 Protection of Rights and Interests of Employees

The Group always regards high-quality talents as the core strength for corporate development. Committed to Total Employees

safeguarding the legitimate rights and interests of employees we improve the employment management and

eliminate any form of prejudice discrimination or harassment to create a workplace with diversity and equity. By 14350

the end of the reporting period Joincare has 14350 employees in total.

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 Provisions

on the Prohibition of Child Labour and other laws and regulations. We have formulated the Code of Labour Employment and Ethical

Conduct3(the “Code of Employment”). The Code of Employment applies to all employees (including full-time part-time and temporary

employees) of the Group and its subsidiaries as well as all suppliers contractors service providers customers and other partners in collaboration

with the Group. It is designed for the ongoing regulation of our employment management. With zero tolerance for any form of discrimination we

have defined 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 Management

System the Attendance Management System and the Employee Handbook. We sign contracts with employees under the principle of free

will setting out the rights and obligations of both the Group and the employee and we insist on employment in accordance with the law and

regulations. 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 official 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) core

conventions and the Universal Declaration of Human Rights of the United Nations. This Code has specified such provisions on protecting human

rights as the prohibition on forced and child labour anti-discrimination anti-harassment equal remuneration freedom of association the right to

collective bargaining and occupational safety and health. (Please refer to “II. Recruitment and Employment” and “III. Labor Management” in

the Code of Employment).We have established a formal human rights grievance mechanism in accordance with the Employee Grievance Management System. All

employees and relevant personnel of the Group can report potential human right risks or identified human rights issues via the hotline published

on the official website and we also commit to strictly protecting the personal information of the complainants. Those in violation of the

provisions on protecting human rights will be investigated immediately. We will also take the necessary actions to protect the legitimate rights

and interests of the reporter. Once verified those who violate the Code of Employment will be punished appropriately including but not limited

to the termination of labour contracts and business contracts. Those whose acts are suspected of constituting crimes will be transferred to

judiciary authorities for handling.To effectively implement the Group’s human rights policies we have established a systematic human rights due diligence process covering

human rights risk assessment annual audit and reporting and the formulation and implementation of mitigation and remedial measures. We

conduct human rights due diligence annually and submit the findings together with mitigation and remedial measures to the Sustainable

Development Committee under the Board of Directors for approval and to have the committee determine the response measures for the next

year. During the year Joincare completed investigations into human rights management issues and implemented corrective actions based on the

findings. According to the findings 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 identified human rights risks. For example we provide targeted training to

ensure that employees’ concerns are fully acknowledged and addressed.

3 Joincare Pharmaceutical Group Industry Co. Ltd. Code of Labor Employment and Ethical Conduct: https://en.joincare.com/news/178.html.

908.1.3 Diversity and Inclusion

We have always adhered to the core values of diversity equality and inclusion fully respecting the individual differences and diversity of our

employees. We continue to improve our diversity system formulate and implement the Diversity Equity and Inclusion Policy specifying

that the Sustainable Development Committee of the Board is responsible for reviewing the policy and overseeing diversity performance and

progress 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 differently due to factors

such as gender age ethnicity race nationality religious belief etc. and we eliminate all forms of discrimination and prejudice to provide equal

development opportunities for every employee. Moreover in our benefits policies we strive to meet the special needs of different employee

groups to ensure that every employee enjoys equal treatment and benefits. Additionally we place great emphasis on creating a diverse and

inclusive cultural atmosphere. All employees are required to complete trainings related to diversity equality and inclusion every year covering

topics such as diversity inclusiveness bias-free behavior and anti-discrimination. We also incorporate diversity-related content into the trainings

for 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 specifically included issues

related to diversity and inclusion in our employee satisfaction surveys in order to keep abreast of the needs of our employees and to continuously

adjust and optimize our diversity and inclusion policies and measures. At the same time we firmly oppose all forms of discrimination and

harassment. We have established sound mechanisms against discrimination and harassment and regularly organise relevant training sessions to

enhance employees’ awareness of self-protection and rights-protection.Case

Management diversity training

In October 2024 Livzon Group a holding subsidiary of Joincare conducted an online “Management Diversity” training for all

management members. The training covered the DEI concept the impact of diverse cultures and management diversity in corporate

governance. The training helped our management to better understand the importance of diversity in a company to improve their

ability 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 quantifiable 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-related

initiatives.Female employees Female employees percentage Female representation in management

663246.2%37.0%

In terms of material benefits to facilitate diversity we provide female employees with paid marriage maternity breastfeeding and other leaves

stipulated by the national law. We also offer exclusive medical check-up services to all female employees to enable them to detect potential health

problems in a timely manner and take appropriate precautions and treatments. Meanwhile we have fully-equipped lactation facilities to support

female employees who return to work after childbirth and provide paid paternity leave for male employees. In addition we apply for social

insurance subsidies for on-the-job employment for employees with disabilities to provide them and their families with more financial support and

to 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 different ethnic groups.

912024 Sustainability Report 08 Talent Management

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 female

employees who get married or have children. In 2024 we extended

our care to 40 female employees fostering a good relationship with

employees and increasing employees’ sense of happiness and belonging.Female Employee Care

Case Care extending activities on International Women’s Day

On the occasion of International Women’s Day in March 2024 the

Group presented all female employees with festival gift packages

including flowers exquisite pastries coffee and holiday blessings. This

is to show respect and care for our female employees and to create a

supportive work environment for women.Festival Gift Packages of the International Women’s Day

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 and

entrepreneurship achievements from various ethnic groups in Nanshan

District and the Literary and Artistic Performance of Shenzhen United

Front Work Department. These activities fully demonstrated the Group’s

respect for and protection of ethnic minority cultures and effectively Ethnic Minority Employee Activities

promoted ethnic unity and cultural exchanges.

928.1.4 Staff 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 preliminary

assessment of the issues. For issues requiring further investigation we initiate an investigation process and coordinate with relevant departments

for resolution. During the investigation we will maintain communication with the employees involved and keep them promptly informed of the

progress 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 retaliation

once found will be dealt with seriously in accordance with the Group's internal relevant regulations and the relevant laws and regulations. We

also provide psychological support and legal advice to complainants to help them cope with the psychological stress arising during the complaint

process and to protect their physical and mental health.Protection Measures for Complainants

The information on Receiving reports and complaints Any personal information

whistleblowers and complainants and verifying with relevant including identity and rewards

as well as the content of reports personnel such as whistleblowers cannot be disclosed without the

and complaints should be strictly and complainants should be express consent of whistleblowers

confidential. The materials and conducted in a confidential and complainants.records of reports should be way without the identity of the

incorporated into confidential personnel being disclosed.document management. The

settled cases should be filed.We regularly conduct satisfaction surveys for all employees of the Group and its subsidiaries on an annual basis which covers

multiple dimensions including employees’ work satisfaction the purpose of work sense of well-being and work-rated stress

levels. We fully respect employees’ opinions and feedback and promptly take measures for improvement continuously enhancing

employee 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 about

employee care welfare and benefits after-work activities and training. To address these concerns we have taken steps such as

developing mental health and career development care plans organising diverse team-building and club activities enriching online

courses and running professional skills seminars. We will continue to refine these measures based on feedback from our employees

to increase their satisfaction and happiness at work and work with them to create a better working environment.

932024 Sustainability Report 08 Talent Management

Case Employee engagement survey at Livzon Group

In 2024 Livzon Group a holding subsidiary of Joincare hired a third-party institution to conduct an employee engagement

survey 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 to

track employee satisfaction. The survey covered all employees of Livzon Group. The response rate was 100% and the overall

engagement score was 80% about 5 percentage points higher than that of the previous year. The result exceeds the national

average by 7 percentage points and the pharmaceutical industry level by 3 percentage points respectively.Trade Union Management

We have always regarded the trade union as an important link between management and employees. We holds regular employees’ congresses to

maintain 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 in

employee care we invite professional psychological consultants to hold lectures to alleviate the stress of employees in both work and life and to

help them regulate their emotions and relax.Employees Covered by

the Group's Independent

Trade Union

100%

8.2 Improving Talent Management

The Group highlights talent cultivation. With a formal talent pipeline development strategy we recruit talents based on scientific forecast of

hiring needs. We actively broaden channels for talent introduction and implement more humanized talent retention measures in an effort to retain

outstanding talents. Meanwhile we provide training courses that meet the developmental needs of employees at different levels and in different

positions and continuously build a learning-oriented enterprise. We also keep optimizing the salaries and benefits system to share the fruits of

corporate development with our employees.

948.2.1 Talent Attraction and Retention

We continuously optimize our talent acquisition strategy based on the group's strategic positioning business development needs and the current

status of our talent pool. By deeply insighting into industry trends and market dynamics we accurately predict the talent requirements for

key positions. This year we actively carried out talent employment by experienced hire recruiting and campus recruiting employing various

recruitment channels such as online recruitment internal recommendation headhunting and cooperation with governmental agencies to

strengthen the group's talent reserve. We are committed to attracting high-quality talents who align with the company's long-term development

goals to drive continuous business growth. We place special emphasis on the recruitment of top-notch talents strengthening cooperation with

renowned domestic and international universities and research institutions to bring in excellent R&D talents and provide strong support for the

transformation of technological achievements.In addition we actively promote the construction of a digital and intelligent talent

pool. Leveraging the Feishu platform we have established a talent pool management

system to centrally store candidate information. The system automatically screens and New Employees

matches candidates based on job requirements and intelligently recommends talents

with high potential that meet the criteria according to multi-dimensional data such as job 3105

requirements skill tags and work experience. This greatly improves the efficiency of

talent screening and matching.University-Enterprise Cooperation

We have established long-term cooperative relationships with top domestic universities research institutions and vocational colleges in the

areas of talent cultivation skills training and job recommendations. We sign internship agreements with students from relevant majors provide

customized internship platforms and offer employment opportunities to outstanding interns. This year we signed cooperation agreements with

well-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 to

enhance the vocational skills of students on campus. At the same time we provide interns with comprehensive benefits including salaries meal

allowances accommodation arrangements and health check-ups and offer priority conversion opportunities to students who perform excellently

during the internship period.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. Taitai

Pharmaceutical has also partnered with Hunan Food and Drug Vocational College and Guangxi Health Science College to establish

training bases to cultivate skilled talent in pharmaceutical production. This initiative is part of the company’s efforts to steadily

build 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 research

projects. 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.

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Talent Retention

To reduce employee turnover and maintain a stable talent pool we provide comprehensive onboarding training for new employees to help

them understand the corporate culture and become familiar with job requirements so that they can integrate into the work environment as

soon as possible. We implement a fair and transparent performance evaluation and promotion system ensuring that every employee has

equal opportunities for development and fostering a positive and upward work atmosphere. We offer a variety of training and development

opportunities for employees encouraging them to continuously improve themselves and helping them clarify their career direction and enhance

their professional competitiveness. At the same time we strive to create a workplace culture of "happy working and happy living" regularly

organise team-building activities to enhance team cohesion and comprehensively improve employees' sense of happiness and belonging. In

addition we regularly conduct performance communication with employees give positive feedback to those who perform well and hold annual

excellence evaluation activities to award certificates of honor and commendations to outstanding employees and individuals or teams with

outstanding contributions thereby enhancing employees' job satisfaction and sense of achievement.Turnover Rate Down to No Major Layoffs or M&A Impacting Employees

10 in the Past 3 Years% in 2024 (vs. 12% in 2023)

8.2.2 Training and Development

With a strong focus on internal talent development Joincare continues to build comprehensive and diversified employee training system. Using

internal and external resources we have precisely developed training content for online and offline learning catering to the diverse needs of

employees at different levels and positions. We are also working to continuously innovate training forms to ensure that our training programmes

are closely align with our strategic and business needs as well as developments in our business and the industry. At the same time we collect

feedback on the training through a variety of means including questionnaire surveys and face-to-face interviews and continually optimise the

training content based on this feedback to ensure training quality. This year we upgraded our IT-based training management system adding

functional 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 training

arrangements for employees to ensure timely attendance.Total Training Hours Delivered Training per Employee

1345002 hours 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 nurturing

period combined with approaches such as course study mentor guidance practical exercises and sharing and communication we help new

employees deeply understand the company’s core values master job skills quickly adapt to the work environment and integrate into the team

as soon as possible. During this period we regularly hold face-to-face communications with new employees to promptly understand their work

performance and growth needs and provide feedback based on the assessment results. We offer early confirmation opportunities or salary

adjustments for outstanding employees ensuring that every new employee receives full support and care during the probation period. We also

continue to follow employees’ development after the probationary period providing them with career planning suggestions clarifying their career

goals.

96Case “Dream & Future” Campus Recruitment Training Camp

This year we continued to host the “Dream & Future” fresh

graduates training aiming to develop future management

talent in line with our needs. A total of 64 new employees

hired through campus recruitment were arranged for two

days of training at the Group’s headquarters. They learned

about the Group’s history and culture organisational structure

and business processes as well as professional ethics and

workplace etiquette. They also engaged in activities such as

simulation exercises case analysis role playing and team-

building exercises. This has helped them quickly understand

our corporate culture and strengthened their sense of identity

and belonging. Additionally we assigned a career mentor “Dream & Future” Campus Recruitment Training Camp

to each new employee to provide them with personalised

work guidance and career development advice based on their

performance. These efforts have helped them improve their

professional skills and laid a solid foundation for their future

career development.Job-specific Development Training

We tailor job-specific development training programmes for our employees according to the characteristics and expertise requirements of

different positions. For special operation staff we organise learning of relevant laws and regulations standard operating procedures and technical

requirements and carry out professional qualification training. These staff are only allowed to work with professional qualifications. For R&D

staff we offer training courses on project management experimental technology literature sourcing and academic writing. We mobilize our

production and quality control staff to learn about the knowledge related to equipment operation and quality standards. For sales staff we deliver

training 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 our

tailored training comprehensively enhances employees’ professional competencies and provides strong talent support for the efficient and stable

operation of all business segments.Case Training for employees in production positions

This year Joincare Haibin conducted a series of training

sessions for cleanroom operators in key areas such as

cleanroom operation specifications microbial control and

equipment maintenance. The training combined theoretical

instruction with hands-on operations to ensure that each

operator masters the requirements of cleanroom operation

and strictly adheres to the operating standards. The aim is

to effectively prevent potential contamination risks during

production and to establish a comprehensive quality

assurance system for cleanroom operations ensuring

steady improvement in product quality.Training for Employees in Production Positions

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Case Training for employees in quality control positions

This year Jiaozuo Joincare organised its employees from the Quality Management Department for training on pharmaceutical

quality 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 such

as calibration and recalibration of reference substances. The aim is to effectively enhance employees’ professional skills in

pharmaceutical 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 its

employees in safety management positions. The training

covered work safety laws and regulations knowledge

of hazardous chemicals dual prevention systems the

organization and implementation of accident emergency plans

as well as fire safety knowledge. Key safety management

aspects such as the handling of production equipment failures

safety instrumentation systems and abnormal situation

handling were emphasized. Employees participated in on-

site simulation drills. These measures are aimed at effectively

enhancing their safety awareness and emergency response

capabilities and safeguarding the company’s work safety. Training for Employees in Safety Management Positions

Promotion and Job Transfer Mechanisms

We are committed to providing employees with broad career development opportunities. We continuously optimize the dual-promotion

mechanism ( “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" offering rapid development channels for employees

who have outstanding performance make significant contributions or possess special talents thereby stimulating the vitality of our talent

pool. At the same time we further clarify the career development paths for each job series providing more cross-departmental and diversified

development opportunities for administrative and technical series and more challenging innovative project positions for the R&D series helping

employees in different positions achieve their career goals.We regularly post internal recruitment information encouraging employees to participate in internal competitions based on their personal career

plans 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 flexible internal transfer mechanism regularly assessing the work performance and professional capabilities

of employees who wish to transfer. We offer cross-departmental and cross-functional transfer opportunities for those who are willing and

qualified breaking down job limitations unleashing employees' development potential and enhancing the organization's vitality and innovation

capabilities.

98Succession Planning and Leadership Development

We continue to implement succession plans for the employees in our key departments and positions. According to the plans we assess

employees’ professional backgrounds work experience and development aspirations and identify potential successors based on the assessment

results. This year 10% of the potential successors identified through the assessment were successfully promoted to key positions effectively

enriching the talent pipeline. Employees who excel in professional skills comprehensive capabilities and other aspects are given opportunities

for promotion and salary increases relentlessly consolidating our talent team. At the same time we focus on the comprehensive skill and quality

development of management personnel by regularly inviting internal and external lecturers to conduct management training. The training content

covers leadership development team building communication skills decision-making skills and more and includes case studies of leading

industry companies and typical domestic and international cases. This approach helps us to continuously improve management and leadership

skills and build a structurally sound highly competent and innovative talent team. This is a solid guarantee for the Company to gain advantages

in the fierce market competition and to achieve its strategic goals.We have established a comprehensive and hierarchical management and leadership development training system covering employees from entry

level to senior management:

Entry level Executive level

Specifically designed for new employees to help Focused on improving staff’s execution efficiency

them quickly adapt to the work environment and strengthening their ability to guide subordinates

clarify career development paths and master the training includes a series of courses on

essential knowledge the programmes production R&D supply chain talent

include lecture on workplace qualities cultivation and marketing.improvement for new employees

job simulation exercises and

one-on-one mentoring plans.Junior management Middle and senior

management

Dedicated to developing employees’

execution and leadership qualities A i m e d a t f o rg i n g a n o u t s t a n d i n g

and teaching basic leadership theories l eadersh ip s ty le s t ra teg ic v i s ion and

and practical skills the programmes include organisational coordination abilities among middle

training on efficient management communication and and senior management the programmes include

management sand table simulation exercises. digital transformation strategy seminars and cross-

cultural leadership training.

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Case Training for mid-to- senior management of JoincareIn 2024 the Group included management training in its annual priorities and defined “improving decision-making capabilities andoptimising management efficiency” as the core objectives. Over 30 management training sessions were conducted covering legal

compliance 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 assessmentswhich 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 Pharmaceutical

In 2024 Taitai Pharmaceutical organised over

40 management training sessions for managers

covering key areas of company management such

as pharmaceutical regulations quality management

and organisational management. 48 managers

received training for a total duration of 1888 hours.The training effectively improved their professional

knowledge business and management ski l ls .Approximately 10% of the participants were promoted

after the training.Management Training of Taitai Pharmaceutical

Case Special training to middle management of Xinxiang Haibin

In 2024 Xinxiang Haibin invited external instructors

to conduct special training for its middle management.T h e t r a i n i n g f o c u s e d o n g o a l m a n a g e m e n t

communication management and team cooperation

and addressed operational and management issues

facing the company. 40 middle managers participated

in the training and each of them received 16 hours of

training. Typical cases were discussed and analysed

and simulation and team-building exercises through

teamwork and interaction were conducted to enhance

management skills and support the stable operation of

Management Trainings of Xinxiang Haibin

the company.

100University-Enterprise Cooperative Training

We are committed to lifelong learning and have launched joint training programmes with several renowned universities and educational

institutions 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 other

institutions. These programmes aim to develop interdisciplinary talents with in-depth expertise and rich practical experience by combining

theoretical research with practical applications. This initiative further promotes our technological innovation and transformation of scientific

research achievements in the pharmaceutical field. We also invited pharmaceutical experts and scholars from universities to introduce frontier

research achievements and provide professional and technical training. This has broadened the horizons of our employees and enhanced their

technological innovation capabilities.Case Joint postdoctoral programme between Joincare and Shanghai Jiao Tong

University

Since 2021 when Shanghai Frontier and Shanghai Jiao Tong University (SJTU) jointly launched the postdoctoral programme we

have continuously strengthened the development of our corporate postdoctoral workstation. The workstation focuses on molecular

evaluation in the early stages of innovative drug development. This year our first postdoctoral researcher trained jointly with SJTU

successfully completed the programme. The researcher’s research achievements gained strong support from the Shanghai Haibo

Programme (Innovative Drugs) Fund and the published paper was indexed in the Science Citation Index (SCI). The researcher also

submitted research achievements for patent application making significant contributions to promoting the transformation of our

scientific research achievements and enhancing our R&D capabilities.Support for Degree Programmes and Certifications

We 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 relevant

qualifications or national professional title recognition. We encourage and support employees to enhance their academic qualifications and

professional capabilities through self-study exams distance education on-the-job postgraduate studies and other pathways. We provide benefits

such as tuition reimbursement exam leave and class attendance leave for this purpose. Meanwhile in accordance with local talent policies we

actively help employees apply for high-caliber talent skilled craftsman and innovative team certifications assisting them in enjoying relevant

government benefits.Case Enterprise-independent assessment of vocational skill levels

This year Jiaozuo Joincare and Xinxiang Haibin obtained the qualification to autonomously conduct vocational skill level

certification. Following the relevant national standards and taking into account our production needs and technical position

characteristics they organised the certification of vocational skill levels for technicians. A total of 188 electricians instrument

technicians fitters chemical inspectors and other technicians received certificates of senior intermediate and junior vocational

qualifications. This initiative has laid a solid foundation for talent development and accelerated the construction of a highly skilled

talent team.

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Case Academic and qualification 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 that

meet job requirements. Livzon Group encouraged its employees to improve their academic qualifications and certifications through self-

taught examinations correspondence courses distance learning on-the-job postgraduate studies and professional title evaluations. During

the reporting period Livzon Group supported its employees in pursuing academic improvement at 18 higher education institutions and in

applying for 8 skill certificates. A total of 25 employees achieved academic improvement and 407 employees obtained vocational skill or

qualification certificates.

8.2.3 Compensation and Employee Benefits

The Group strictly complies with laws and regulations related to compensation and benefits optimizes and implements internal systems and

policies such as the Salary Management System and the Performance Management System and continuously improves the performance

evaluation 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 benefit the consistency between ability

and value and the consistency between performance and earnings." We implement a compensation mechanism that consists of fixed and variable

components for all employees (including non-officer and non-sales employees). The variable income is linked to individual performance and the

Group's performance which fully leverages employees' initiative and effectively 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 feedback

mechanisms. We are seeking diversified performance appraisal methods based on the characteristics of our departments and positions. For

individual 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 continuously

track their work progress and conduct scientific and comprehensive performance reviews based on feedback from their peers and managers. For

team performance appraisal we have developed targeted assessment standards based on the functions and business characteristics of different

departments. We conduct quantitative assessments of key performance outcomes such as technological innovation projects the number of

clinical and production approvals obtained and annual sales. In addition we have integrated sustainability indicators into employee performance

appraisal 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 overall

management performance.Our performance appraisal covers all employees of the Group. We set team performance targets for each department and subsidiary based on

the Group’s annual business goals. These team targets are then broken down into individual targets to provide a comprehensive measure of

individual achievement and contribution to the team ensuring that individual performance is closely linked to team targets. At the same time we

place great emphasis on performance communication. Team leaders hold regular performance communication meetings with their members to

provide timely performance feedback and encourage the implementation of improvement actions. These efforts help to further enhance overall

team performance.

102Long-term Incentive Mechanisms

To further improve the Group’s long-term incentive mechanisms and fully motivate core employees Joincare has formulated various long-term

incentive plans for directors senior management middle management and core technicians. The interests of shareholders the Group and core

team members are thus united helping motivate the initiative and creativity of core employees and build a working environment with shared

responsibilities and values. Since the end of 2014 we have successively launched the 2015 restricted share incentive scheme and 2018 share

options incentive scheme and 2022 share options incentive scheme and the 2019-2028 Medium to Long-term Business Partner Share Ownership

Scheme to improve the long-term incentive mechanisms for employees. Up to now the 2015 restricted share incentive scheme was completed in

2019 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 senior

management and core personnel engaged in R&D production sales and management with outstanding performance during assessment or

significant impacts on the future performance. The validity period of the plan is from 2019 to 2028. The First Second and Third Phase Ownership

Schemes 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 2430.8

thousand shares with a total amount of RMB 31038.3 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 be

granted under the Plan are to be granted as a set-aside. The beneficiaries of the Incentive Scheme include directors senior management middle

management core technicians and those recognised by the Board of Directors as deserving incentives with meet performance evaluation goals

as 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. The

beneficiaries of the Incentive Scheme include directors senior management middle management core technicians and those

recognised 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 Options

Incentive Scheme :

* In November 2023 Livzon Group approved the Third Phase of Ownership Schemes of the Medium and Longterm Business Partner

Shareholding Plan through the shareholders' meeting. A total of 84 persons participated in this shareholding plan including 8 directors (excluding

independent 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 incentives

to 1026 employees in the first vesting period including 8 directors (excluding independent directors) and senior management and 1018 other

employees. The first 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 Reserved

Grants under the 2022 Stock Option Incentive Plan which determined the reserved grant date to be October 30 2023 and granted 2000000

stock options to 243 incentive recipients.

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Employee Benefits System

In order to continuously enhance employee welfare we keep refining our employee benefits system. We ensure that all employees are entitled to

all statutory holidays and pay for pension medical insurance unemployment insurance work injury insurance maternity insurance and housing

provident 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 occupational

health check-ups transportation allowances welfare dormitories and gyms. Meanwhile according to employees' needs we have introduced

flexible work arrangements such as working from home offering more choices for those who really need them. In addition we have created a

comfortable working environment for employees setting up relaxation areas such as cafes and activity parks in the office area providing free

coffee and half - price afternoon tea. We distribute employee welfare packages during major traditional festivals every year and give consolation

money to employees in special difficulties conveying the group's care and warmth. We also regularly hold a variety of employee activities such

as reading clubs sports competitions ethnic minority cultural performances and annual parties committed to enriching employees' leisure

time enhancing employee cohesion and improving employee well-being. As of the end of the reporting period the groups paid a total of RMB

2454.68 million in salaries bonuses allowances subsidies welfare expenses housing provident fund and social insurance premiums for all

employees.Table: Joincare Employee Benefits System

Health support

Family and personal support

Annual health checkups for employees

Occupational health check-ups Employee canteen

Dormitories

Health check-ups for females

Government-run talent apartments

Psychological counselling

Housing subsidies for talents

Accident insurance Living allowance for talents introduced

Heatstroke prevention allowance Support for advanced studies under master's and doctoral

programs

Commuter allowance

Gifts for traditional holidays

Cash gifts for birthday wedding and maternity

Funeral and retirement solatia

Work-life balance

Gym

Breakout/refreshment areas

Team building

Annual parties

Associations

Library

104Cafes Activity Parks

Free Gym Access Employee Birthday Party

Activities in Womens’ Day Reading Clubs

Annual Parties Ethnic Minority Activities

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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 Work

Safety and the Law of the PRC on the Prevention and Treatment of Occupational Diseases. In accordance with the requirements of the ISO45001

Occupational Health and Safety Management System we continuously improve and strictly implement internal systems and policies such as the

Occupational Health Management System and Operating Procedures the Monitoring and Evaluation System for Occupational Hazard Factors

for 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 safety

objectives and we continuously carry out health and safety management to ensure the health and safety of employees.Fire safety

No work safety accidents

Occupational health

Joincare’s No new cases of occupational diseases

Occupational Health

and Safety Goals in Lean management objectives

2024 We continue the construction of the EHS system complete internal

and external audits and management reviews within this year. We

improve the emergency system and conduct planned emergency

drills. We also add safety sessions in our on-boarding training for

all new employees and offer special safety training for specific

employees.We conduct internal audits external audits and management reviews of the EHS system annually. Each production subsidiary

also carries out relevant audit work as planned. We continuously improve the EHS management system to ensure the effective

operation of safety environmental protection occupational health fire prevention and other preventive and management

measures during production operations.EHS Internal Audit

Document review On-site audits New reconstruction and expansion projects review

We review EHS-related We check potential hazards We propose suggestions for new

documents and ledgers and i n p r o d u c t i o n s i t e s a n d reconstruction and expansion

supervise the performance of verify whether on-site safety projects from the perspective

EHS targets. of EHS targets. controls are effective and safe o f E H S t o i m p r o v e s a f e t y

protective articles are in place management throughout each

to reduce potential accidents. project.to reduce potential accidents.

106The Group's EHS Management Committee as the highest decision - making body for EHS management is composed of the Group's directors

and senior executives production heads and EHS heads. It is responsible for formulating the Group's overall EHS development plan and

occupational 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 and

integration of occupational health and safety management work this year are as follows:

Overview of the Group’s Occupational Health and Safety Action Plans

Prioritisation 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 ensure

production compliance in programmes.* We strengthen risk management and standardise the management of special operations and strictly

control operation approvals.* We enhance safety management of contractors with all contractors signing safety management

agreements 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 out

safety training safety emergency drills and other activities. This year we invested about RMB 60270.1 thousand in occupational health and

safety 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 expenses RMB 46279.2 thousand

In which: Expenses of safety training and education RMB 944 thousand

Expenses of safety emergency drills RMB 886.5 thousand

(2)Occupational health expenses RMB 13990.9 thousand

In which: Total expense of employees’ work injury insurance RMB 6362.1 thousand

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8.3.1 Occupational Health

The Group continues to improve and strictly follow management policies such as the Occupational Health Management System and Operating

Procedures the Monitoring and Evaluation System for Occupational Hazard Factors in the Workplace and the Regulation on the Management

of Hazard Identification and Evaluation. We make every effort to avoid occupational health risks in work and production processes and actively

carry out external certification work. This year Joincare and all its production subsidiaries have passed the GB/T45001-2020/ISO45001:2018

Occupational Health and Safety Management System certification.This year we have continued to optimize employee occupational health protection. We have set up special funds for purposes such as improving

the working environment monitoring occupational health and purchasing labor protective equipment. We regularly maintain and service safety

protection facilities to ensure that they are ready for use at any time. During the reporting period there were no new cases of occupational

diseases suspected occupational diseases or occupational contraindications at Joincare.Joincare’s Safeguards for Occupational Health and Safety

Occupational hazards check-ups

* Healthier and more harmless processes equipment materials etc. are preferred to minimise the impact of hazards on

employees.* We engage qualified service providers to carry out regular testing for potential occupational health hazard factors; conduct

occupational disease hazard evaluation in accordance with the Regulations on the Management of Occupational Health in the

Workplace.Occupational health monitoring

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 operations

exposed 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 to

occupational hazards.* After-job examination: Employees are required to undergo health examination before they change posts or leave current posts

that are exposed to occupational hazards.Safeguarding occupational health of special posts

* We equip employees exposed to occupational hazards with labour protection articles and first 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.

108Case Weeklong publicity campaign on the Law of the PRC on the Prevention

and Treatment of Occupational Diseases at Jiaozuo Joincare

In May 2024 Jiaozuo Joincare launched a weeklong publicity campaign on the

Law of the PRC on the Prevention and Treatment of Occupational Diseases

in 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 disease

prevention were held. These activities popularised the harm of and response to

occupational diseases increased employees’ awareness and ability to protect

themselves and successfully developed an occupational health mindset among

employees. Training Sessions on Occupational

Disease Prevention at Jiaozuo Joincare

Case Occupational hazard assessment at Haibin Pharma

In June 2024 Haibin Pharma commissioned a third-party institution to conduct an annual occupational hazard assessment at the

company and issue the assessment results report. This was to comply with the requirement of national occupational health laws and

regulations that regular assessments of the status of occupational hazard should be conducted. All the company’s production and

business premises were assessed such as factory workshops crude product synthesis areas solvent storage areas wastewater treatment

stations 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 rescue

facilities and personal protective equipment. The results of the assessment showed that the concentration (intensity) of the occupational

hazard factors in all positions and job types in the company met the requirements of the occupational exposure limits.

8.3.2 Work Safety

The Group implements the work safety policy of "safety awareness legal compliance and continuous improvement." We optimize and implement

management systems such as the Safety Management System Operation Control Management and the Operation Assessment System for

Dual 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 the

responsibilities of safety management personnel at each level and position. This year we have established a work safety management system for

operations 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 measures

at the operation site and continuously strengthened work safety.Level 2 Process Changes An EHS Change Assessment

Changed by external experts Team has been established to

Changed by external evaluate relevant workshops

experts upon an evolution or departments

of subsidiaries' EHS Team

Level 1 Major Changes Level 3 Workshop Changes

1092024 Sustainability Report 08 Talent Management

At Joincare we conduct regular internal audits of the safety system and organise safety education and training for employees to

effectively ensure a stable environment for work safety within the Group. According to the characteristics of the positions we

arrange for new employees those transferred to new positions and those returning to work to participate in pre-job training. We

aim to achieve full coverage of vocational qualification certificates for special operation personnel. Moreover we require relevant

position holders not just special operation personnel to complete safety management training and special equipment operation

training before obtaining certificates and taking up their posts. This year no safety accidents occurred in the Group achieving the

goal of “zero safety accidents”.Safety Inspection

This year Joincare and its subsidiaries carried out 1486 safety inspections including routine safety inspection monthly and

quarterly safety inspections special inspections for hazardous chemicals special Inspection of special equipment inspection by

external experts special seasona safety inspection and other internal inspections. To ensure safety production we spared more

efforts in safety inspection including inspection for lightning protection safety inspection for electric fire facilities special

equipment inspection fire alarm system maintenance and other safety rectifications.Case Comprehensive inspection of work safety at Xinxiang Haibin

In 2024 Xinxiang Haibin conducted a comprehensive work

safety inspection covering its equipment and facilities electrical

management work environment hazardous chemicals and anti-

static measures. The aim was to strictly implement technical

procedures for work safety and standards enforce safety

management regulations address prominent safety management

issues and weaknesses thoroughly investigate and rectify hidden

hazards and effectively prevent work safety accidents. Comprehensive Inspection of

Work Safety at Xinxiang Haibin

Emergency Plans and Drills

Joincare and its subsidiaries have continuously optimized emergency response plans for internal safety incidents and contractor

safety incidents covering overall emergency specialised emergency and on-site handling scenarios. All plans have been

reviewed and published within the Group. In 2024 the Group and its subsidiaries conducted 199 emergency drills further

refining and supplementing the emergency response plans based on the drill results.

110Case Emergency drill for fire accident of the distillation tower at Xinxiang Haibin

In June 2024 Xinxiang Haibin organised the emergency drill for

fire accident of the distillation tower simulating a sudden fire in

the distillation equipment. Ten emergency response teams were

formed consisting of department heads and production workshop

operators. During the drill the rescue team acted swiftly the

firefighters skilfully operated fire hydrants and fire monitors

and all departments worked closely together. The drill plan was

Emergency Drill for Fire Accident of the

executed effectively and the accident was handled appropriately

Distillation Tower

significantly improving the company’s fire emergency response

capabilities.Case Emergency drill for hazardous chemical leakage at Haibin Pharma

In 2024 Haibin Pharma conducted a comprehensive emergency

drill for hazardous chemical leakage in the workshop synthesis

area simulating a fire caused by leakage from reaction kettle

bottom valves. The company-level emergency response plan was

immediately activated. The drill included emergency disposal of

chemical leaks first aid and transfer of burn victims emergency

evacuation emergency transfer of on-site hazardous chemicals and

fire and environmental emergency response. Emergency equipment

such as mobile foam trucks foam fire hydrants wheeled fire

extinguishers outdoor fire hydrants leak-proof adsorption blankets Emergency Drill for Hazardous

and portable gas detectors were used. This drill helped relevant Chemical Leakage

employees better understand their work safety responsibilities and

effectively familiarise themselves with and improve their ability to

use emergency equipment.Safety Culture Cultivation

Joincare strictly complies with relevant national laws and regulations and formulates an annual training plan in accordance

with the requirements of the emergency management authorities. This year’s EHS training covered various topics including

safety orientation for new employees specialised operation safe production responsibility system accident case study safety

management - 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 240252 hours withapproximately 18.08 hours per employee successfully achieving the goal of “Safety orientation for all new employees andspecialised safety training for specific employees.”

In 2024 the Group and its subsidiaries launched “Safety Month” campaigns. By participating in various activities such as themed

publicity and education warning education on production accidents safety training emergency drills and safety inspection our

employees became more aware of safety at work. They got motivated to create a safety culture with joint efforts.

1112024 Sustainability Report 08 Talent Management

Case Fire safety training of Taitai Pharmaceutical

In August 2024 Taitai Pharmaceutical organised fire safety

training for all its employees which included fire safety laws

and regulations knowledge of fire prevention in public places

use of firefighting equipment and response to public safety

emergencies. This training increased employees’ fire safety

awareness and developed their sense of responsibility for fire

safety.Fire Safety Training

Case “Work Safety Month” activities of Haibin Pharma

During the 23rd national Work Safety Month in June 2024

Haibin Pharma organised a variety of activities including

work safety knowledge training analysis of typical accidents

and emergency rescue cases learning of CPR and other

first aid knowledge online safety quizzes and safety skills

competitions. These activities created an atmosphere of“everyone talks about safety and everyone knows how torespond to emergencies” and improved employees’ ability to

handle work safety emergencies. “Work Safety Month” Activities

Case Xinxiang Haibin participated in a safety emergency response skills

competition

In September 2024 Xinxiang Haibin participated in the

safety emergency response skills competition in the theme

of “On - the - Job Training and Technical Competition”

organised by Xinxiang Emergency Management Bureau.After theoretical tests and three practical tests the Xinxiang

Haibin team won the second prize. The award is a successful

test of the company’s emergency response capabilities and the

effectiveness of its daily work safety emergency management

and has earned the company a good reputation in the industry. Xinxiang Haibin Team Won the

Second Prize in the Competition

11209

Operating

with Green

Sustainability

SDGs in this section

Joincare adheres to the principle of green development. While strictly following the environmental compliance requirements we

deeply integrate the concept of “green and low-carbon” into all aspects of our operations and management. We actively advocate

the use of clean energy practice low-carbon operation modes strengthen resource conservation actions and reduce waste

emissions to improve our environmental management performance in a comprehensive manner. The goal is to better contribute

to the national goals of “carbon peaking” and “carbon neutrality” and the harmonious coexistence between man and nature.2024 Sustainability Report 09 Operating with Green Sustainability

9.1 Environmental Management System

Joincare strictly abides by laws and regulations regarding environmental protection including the Environmental Protection

Law of the PRC the Law of the PRC on the Prevention and Control of Atmospheric Pollution the Energy Conservation Law of

the PRC and the Administrative Measures for Hazardous Waste. Active efforts are made to optimise the internal environmental

management system.We have developed the EHS Management Policy to regulate the management requirements in key areas such as the three types of

wastes (wastewater waste gas and solid waste) energy chemicals and water resources for the Group and its subsidiaries. With

this policy in place we aim to improve our environmental management practices. We have also introduced and kept improving

the Safety and Environmental Management Manual General Requirements for the EHS Management System and Requirements

for Identification and Assessment of Environmental Factors. These are part of our efforts to improve our capability of managing

environmental issues and take on our environmental responsibility pragmatically. In 2024 no major environmental pollution

accidents 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 constructed

and put into use simultaneously with the project’s main work. Meanwhile we regularly maintain pollution abatement equipment

and invest increasingly more in equipment and facilities upgrading and transformation of production processes and technologies

to ensure their normal stable and efficient operation. Also we regularly provide training for employees on energy conservation

and consumption reduction water usage reduction waste reduction etc. This is aimed at optimizing employees' behaviors in

energy and water resource usage improving water efficiency and enhancing the performance in energy management and waste

management.In addition the Group continues to improve the environmental management system. We devote down-to-earth efforts to

environmental management proactively promote cleaner production and green factory certification. By the end of the reporting

period 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 national

green factory 1 as the provincial green factory and 6 production subsidiaries completed HAZOP analysis.Table: Expenditures of Joincare in environmental protection in 2024

Category Amount (RMB 10000)

Technical upgradation of environmental protection equipment 2001.57

Environmental protection operation and maintenance 8064.97

1149.1.1 Policies and TargetsJoincare 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 energy

saving and emission reduction with 2020 as the baseline year and keeps monitoring the progress for the targets. All production

subsidiaries are required to refine their management of energy and natural resources and propel energy conservation and emission

reduction 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

Item Indicator Final Target by 2025

Water Water consumption per unit production (RMB 10000) Down 5% from 2020

Electricity Electricity consumption per unit production (RMB 10000) Down 5% from 2020

Chemical oxygen demand Emission per unit production (RMB 10000) Down 5% from 2020

Sulfur dioxide Emission per unit production (RMB 10000) Down 10% from 2020

Disposal volume of hazardous waste Disposal volume per unit production (RMB 10000) Down 2% from 2020

To constantly enhance the environmental management level and performance the Group sets annual targets for environmental

compliance in operation and urges production subsidiaries to meet the required standard in terms of compliance with the

standards three dimensions for wastewater and gas emissions the occurrence of major pollution accidents and annual

environmental penalties.Table: Targets of environmental compliance in the operation of Joincare in 2024

Indicator Annual Targets Achievements

Compliant wastewater/gas emissions 100% Achieved

Compliant hazardous waste disposal 100% Achieved

Number of major pollution accidents 0 Achieved

Number of environmental penalties in the year 0 Achieved

1152024 Sustainability Report 09 Operating with Green Sustainability

9.1.2 Management Structure

To enhance the EHS management level Joincare continuously improves the EHS management structure to define responsibilities

and ensure their performance according to the EHS Management Policy. As the highest responsible body the Sustainable

Development Committee of the Board of Directors is responsible for formulating EHS-related strategies and policies such as

those on environmental management and resource utilisation regularly reviewing the Group’s performance in environmental

management performance and reporting EHS issues to the Board of Directors.* The Sustainable Development Committee of the Board

of Directors is responsible for formulating EHS-related Sustainable Development Committee

strategies & policies and reporting the relevant issues to the of the Board of Directors

Board of Directors.* The EHS Management Committee coordinates the overall

EHS Management Committee

EHS management of the Group.* The EHS Department of the Group supervises and manages

the implementation of EHS work in each production EHS Department of the Group

subsidiary.* Each Functional Department of the Group is responsible for

its own EHS work. Functional Departments Production subsidiaries

* Each production subsidiary of the Group is responsible for of the Group of the Group

its own EHS work and reports to the Group regularly.EHS Management Structure

Production subsidiaries of the Group have also developed a standardised EHS management system. As the first responsible

person for EHS the general manager is in charge of the overall environmental protection work; as the directly responsible

persons supervisors or department managers are in charge of the preparation of EHS initiatives filing to the EHS Department of

the Group and supervision of the implementation of specific initiatives; and the employees of the subsidiaries cooperate with the

Group’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 for

setting carbon emission reduction targets for the Group and its subsidiaries reporting them to the Sustainable Development

Committee of the Board of Directors for approval and following up on the quarterly achievement of the Group’s carbon

emission targets. The general manager of each subsidiary as the first person in charge of carbon emission is responsible for

scheduling carbon emission targets based on the actual situation of the company working out effective carbon emission reduction

measures designating relevant responsible persons and reporting the target achievement to the EHS Department of the Group

on a quarterly basis. ESG indicators have been added to the individual performance assessment of all Sustainable Development

Working Group members (including executive management) since 1 January 2022 with a weight of 10% in the total performance

system. A corresponding percentage of the management's annual performance bonus will be reduced due to declining

performance of ESG indicators. ESG indicators and their weights are as follows:

116Table: Weight of ESG indicators in the assessment of Sustainable Development Working Group

(1) Energy conservation and emission reduction targets 3%

(2) Carbon emission targets 3%

(3) ESG rating objectives 4%

Total weight of ESG indicators 10%

9.1.3 EHS Audit

Internal Audit

Joincare 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 with

the audit team on an annual internal audit plan based on vulnerabilities found in past internal audits and corrective actions taken

by subsidiaries. The EHS Department conducts EHS audits on all subsidiaries at least twice a year and makes timely summaries

and prepares internal audit reports of subsidiaries after the audit. Subsequently the EHS Department urges the rectification of

unqualified items by the subsidiaries compiles a group audit report every six months and submits them to the management for

review. Corresponding production subsidiaries shall rectify unqualified items found in the internal audit under the guidance of

the Management Regulations on Corrective and Preventive Measures. In 2024 the Group and its subsidiaries conducted 30 EHS

internal audits. All unqualified items found in the annual EHS internal audit were rectified with a coverage rate of 100%.Production subsidiaries of the Group consciously and regularly inspect the stability of pollutant control equipment the disposal

method of solid waste and the launch of emergency drills and rectify the unqualified items in a timely manner to firmly ensure

the compliance of EHS management and the effective operation of the Group’s EHS management system.External Audit

Joincare conducts an external audit of EHS annually and engages qualified third-party certification agencies to audit and

supervise 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 and

resource consumption reduction and strengthen management requirements of all kinds. Besides we review the energy use

within the ISO systems. Based on the analysis of energy use and energy consumption Joincare identifies the overall energy

use by category. We refine the management of facilities and equipment with a huge impact on this front identify and prioritise

opportunities for better energy performance and devise targeted improvement measures. In 2024 we rectified all the unqualified

items found and passed the external audit.

1172024 Sustainability Report 09 Operating with Green Sustainability

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 address

climate change. In line with international trends Joincare is committed to reducing the impact of climate change on human

health and business operations. While intensifying efforts to manage and address climate risks we are working hard to seize the

green development opportunities brought by climate change to support the country’s achievement of carbon peaking and carbon

neutrality.Referring to the Task Force on Climate-related Financial Disclosures (TCFD) recommendations we manage and disclose our

climate-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 the

Group. Moving forward we will continue to disclose detailed climate-related information by responding to the questionnaire.

9.2.1 Governance

Relying on the sustainable development governance system the Group has established a climate governance framework to

implement 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 the

implementation 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 the

development status of the Group and all the production subsidiaries accurately identifies significant climate-related risks facing

the 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 identifying

and assessing climate-related risks analysing and listing potential climate-related development opportunities and determining

addressing 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 identifying

and assessing climate-related risks and opportunities and the requirements for implementing and monitoring the response

measures. 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 and

actively promote the carbon emissions reduction efforts 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 stay

focused on the impact of climate change on the Group’s production and operations in the short medium and long term. During

the year we invited our production subsidiaries to participate in our climate risk assessment. We reviewed the climate-related

risks closely linked to our business and formulated targeted responses to improve the Group’s overall ability to respond to climate

risks.

118Table: Climate risk identification and countermeasures4

Category Impact Risk Assessment Countermeasures

Climate change causes frequent and

stronger typhoons (e.g. once-in- * The Group pays close attention to climate

50-year once-in-100-year strong Severity of impact: change trends formulates contingency plans for

typhoons or super typhoons) resulting relatively low extreme weather according to the circumstances

in unceasing strong winds and heavy and carries out emergency training.rainfalls. These extreme weather Possibility:

Typhoon

events may interrupt electricity possible * The Group has set up a special action team for

transmission in plants resulting in

water and power outages or damaged Timeframe: short-

typhoon disaster weather to ensure emergency

material reserves. The team checks the local

Physical equipment which will reduce

term

drainpipe system to guarantee an effective

risks - acute productivity and threaten the safety of response to flooding caused by heavy rains.risks an enterprise’s properties.Climate change has been increasing * We pay close attention to geo-climatic

the number of rainstorm days and Severity of impact: information and cover all our operations with the

the intensity of precipitation in most relatively low “property all risks” insurance.regions across China. The situation

Rainstorm Possibility:

results in flooding due to the rising * Xinxiang Haibin and Jiaozuo Joincare have

(flood) possible

water volume and water level in established special teams for flood responses and

rivers lakes and coasts. It also causes Timeframe: short- Party member taskforce and purchased adequate

inundation of land and houses in term materials reinforcing flood response capabilities.plants due to untimely drainage.* The Group has taken effective measures to

Warming climate will elevate China’s Severity of impact: prevent heat-related illness. We provide heatstroke

daily maximum and minimum relatively low prevention grants for employees working in the

Physical Mean temperatures. More frequent summer and provide intensive protection for

Possibility:

risks - temperature extremely scorching weather will employees working in high temperatures and on

likely

chronic risks rise harm the health of employees hot days.who work in high temperatures Timeframe: * We install air-conditioners in the workshop

environment. medium-term and insulate the roof and walls with materials of

favourable thermal insulation properties.* The Group is actively adjusting its business and

product structure and gradually reducing the use of

Carbon trading requires enterprises energy-intensive and highly polluting production Severity of impact:

that emit more than their quotas to technologies and equipment. Sustained efforts are medium

Transition Carbon purchase additional quotas from the being made to try eco-friendly technologies and

risks - policy pricing trading market while those that emit Possibility: materials so as to limit our carbon emissions.and legal and carbon less than their quotas can sell their probable * The Group pays constant attention to the trends

risks trading surplus. Emissions beyond the quota

may increase operating costs or bring Timeframe: and changes of the carbon trading market. We

penalties to the enterprise. medium-term promptly adjust the corporate operating strategy

establish carbon accounting systems set carbon

emission targets and strengthen the management

of 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 (more

than 10 years)

Possibility (the likelihood that a risk is to materialise): basically certain probable likely possible unlikely and very unlikely

Severity of impact (the severity of a risk’s impact on business performance): high relatively high medium relatively low and low

1192024 Sustainability Report 09 Operating with Green Sustainability

Category Impact Risk Assessment Countermeasures

We continuously monitor national and local

climate and environmental policies to align our

operations with relevant requirements.Regulatory requirements for

environmental protection are Severity of impact: We further communication and cooperation with

becoming more stringent. Besides medium environmental authorities taking the initiative to

Transition

Climate and more national and local policies have play a part in policy formulation and stay ready

risks - policy Possibility:

environmental been issued driving up enterprises’ to act accordingly.and legal likely

policies costs in protecting the environment.risks

Enterprises that fail to meet the new We have established an early warning Timeframe:

environmental standards may face mechanism for environmental compliance risks. medium-term

administrative penalties. Should any possible non-compliance against the

latest environmental standards be identified we

will take active measures to align us with the

relevant environmental regulations.Severity of impact:

Climate change results in higher costs relatively high The Group has maintained alternative suppliers

of raw materials packaging materials of raw materials key consumables and other

Transition Increased and energy consumption (e.g. water Possibility: likely materials. The Group has also signed strategic

risks - cost of raw and electricity) for pharmaceutical cooperation agreements with suppliers of key

market risks materials production and increasing logistics Timeframe: materials and made plans to incorporate new

costs which threatens the stability of medium-term suppliers. These measures are taken to ensure a

the supply chain. stable and consistent supply.Low-carbon technology entails

significant upfront investment in Severity of impact: When investing in new technologies or

Transition Low-carbon

R&D and equipment upgrades. The relatively low introducing new equipment the Group

technology development of low-carbon equipment will conduct sufficient project research and risks - Possibility:

transformation and production technologies is fraught feasibility studies to fully assess the payback technology possible

with uncertainty. Investments in period and project feasibility. We will select

risks

new technologies may fail due to Timeframe: the most appropriate and mature technology to

immature technology and low market medium-term reduce the risk of investment failure.recognition.As the public pays more attention Severity of impact: The Group has set carbon emission targets and

to environmental protection issues relatively low discloses information on climate change in its

Transition an enterprise’s failure to respond to corporate social responsibility reports and the

risks - Stakeholder climate change will affect the public Possibility: CDP climate change questionnaire.reputation concerns opinion of it and damage its reputation possible

risks in the market. We have ramped up communication with

Timeframe: stakeholders to respond promptly to their

medium-term concerns about our environmental performance.

120Climate change brings not only risks but also opportunities to our business. We keep abreast of national and international climate

change policy developments and have asked our production subsidiaries to identify and assess climate-related opportunities in

terms of resource utilisation clean energy substitution and market demand.Table: Climate opportunity identification and countermeasures5

Opportunity Impact Opportunity Assessment Measures to Seize Opportunity

* Lower energy and resource

consumption can reduce emissions Severity of impact: * The Group actively engages in energy conservation

and operating costs. medium and emission reduction projects and increases

Higher

resource * By adopting more efficient

investments in green production projects to continuously

Possibility:

utilisation rate production technologies companies

improve energy and resource efficiency reduce

likely

can increase their production costs and increase efficiency through technology

capacity and revenue while using Timeframe: medium-term transformation and equipment upgrading.resources more efficiently.* Increasing the proportion of clean

* The Group plans to accelerate the construction of

energy can effectively reduce carbon Severity of impact: photovoltaic power generation projects and gradually

emissions and help achieve the medium

Increased increase the installed photovoltaic capacity and annual Group’s emissions reduction targets.proportion of Possibility: photovoltaic power generation.clean energy * Replacing fossil fuels with clean possible * The Group has initiated photovoltaic projects in the

energy can help companies better

manage the risk of rising fossil fuel Timeframe: medium-term

qualified plants of all our subsidiaries to continuously

improve self-sufficiency in clean energy.prices in the future.* Climate change may lead to more Severity of impact: * We closely track market demands and have developed

chances for human infections and relatively high a number of new medicines for respiratory diseases such

New market outbreaks of influenza as well as as asthma COPD and bronchiectasis.Possibility:

demands increased risk of respiratory diseases

probable * We participate in public health promotion and

creating new market demands for education activities to raise public awareness of climate

pharmaceutical companies. Timeframe: medium-term change-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 10

years)

Possibility (the likelihood that a risk is to materialise): basically certain probable likely possible unlikely and very unlikely

Severity of impact (the severity of a risk’s impact on business performance): high relatively high medium relatively low and low

1212024 Sustainability Report 09 Operating with Green Sustainability

Climate Scenario Analysis

Recognising the importance of climate scenario analysis for climate risk assessment and management the Group uses the

following scenarios as one of the reference factors in assessing climate risks and opportunities. The aim is to better predict the

potential impact of climate risks under low and high emissions scenarios raise business resilience and identify solutions to

reduce emissions.Low emissions scenarios:

* SSP 1-2.6: In this scenario a sustainable society consuming mostly clean energy countries have realised the

seriousness of climate change intensified climate action and adopted stronger climate policies to reduce carbon

emissions and limit global warming to well below 2°C. At the same time continued technological progress and increased

awareness are driving a global transition to low-carbon and low-energy practices and more climate-friendly modes of

production and consumption. Global CO emissions have declined significantly but at a slower pace to reach net-zero

emissions 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 climate

policies. 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 and

driven 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 risk

factors 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 this

scenario governments promote the optimisation of the energy mix and the development of clean energy technologies in

accordance with existing policy frameworks and plans. Global CO2 emissions are reduced in this scenario and there is a

50% chance of limiting the global average temperature increase to 2.4°C by 2100.

Case The climate scenario analysis of Livzon Group

In 2024 Livzon Group conducted a comprehensive assessment of the climate change risks (including physical

and transition risks) and opportunities for business operations. By means of climate scenario analysis Livzon

Group assessed the adaptability of various stakeholders along the value chain to different climate scenarios the

materiality of climate-related risks and the impact on Livzon Group of potential opportunities during the transition

to a low-carbon future. In the scenario analysis Livzon Group also identified significant uncertainties including

concerns 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.

1229.2.3 Risk Management

To proactively respond to the risks and opportunities brought by climate change the Group has established a robust climate risk

management 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 effectively managed.Our climate risk management steps:

The EHS departments of our subsidiaries collect peer reports industry research reports media

Step 1: reports relevant policies enacted by regulators and other external information and data. Based

on this information as well as stakeholder surveys and internet searches they draw up a list of

Making a list of potential climate risks faced by their companies. In the process other relevant business divisions

potential climate risks will support the EHS departments by collecting summarizing and sharing information on climate

risks faced by their departments.*For each identified climate risk assess from the following four dimensions:

Step 2: (1) Time over which a risk is expected to materialise

Determining (2) The likelihood that a risk is to materialise

assessment criteria (3) The severity of a risk’ impact on the subsidiaries’ financial plans

(4) The severity of a risk’ impact on the subsidiaries’ corporate strategies

* The EHS departments assess and score each risk identified in the 4 dimensions in Step 2. Based

Step 3: on their scores the risks are ranked from the highest to the lowest and a list of risks by severity is

Scoring by the created. The list is submitted to the heads of the relevant business divisions for initial approval and

management then to the general managers of the subsidiaries for final approval. Once approved it becomes the

final annual list of risks of the subsidiaries.Step 4: * The EHS departments determine response measures and set targets based on the risk scores and

discussions with other relevant business divisions. They then hammer out action plans to respond

Determining response to climate risks which will be implemented by the relevant business divisions after approval by the

measures general managers.* The relevant business divisions report to their general managers on the implementation of the

action plans every six months and adapt them in good time to their actual situation.Step 5:

* The subsidiaries prepare annual reports on climate risk management every year. After approval

Overseeing and

by the general managers the reports are submitted to the Corporate Social Responsibility Working

reporting

Group for review and then to the Sustainable Development Committee of the Board of Directors for

final approval.

1232024 Sustainability Report 09 Operating with Green Sustainability

9.2.4 Metrics and Targets

The Group’s GHG emissions mainly come from fuel combustion electricity and purchased steam consumed in production and

operation. GHG emissions and energy use of Joincare in 2024 are as follows:

Table: GHG emissions and energy use of Joincare in 2024

Indicator Unit Total

Direct GHG emissions (Scope 1) Tonne of CO equivalents 197854.4

2

Indirect GHG emissions (Scope 2) Tonne of CO equivalents 828817.7

2

Total GHG emissions Tonne of CO equivalents 1026672.1

2

The Group deliberated and approved the Proposal on Adding Carbon Emission Targets to Joincare’s Environmental Management

in 2022. According to the proposal we set the carbon emission target of Joincare from 2022 to 2025 and commit to achieving

carbon peaking by 2028 and carbon neutrality by 2055 (Scope 1 and Scope 26). In 2024 we took multiple measures to meet

our carbon emission targets including closely monitoring our progress towards our annual targets constantly promoting green

production and diligently exploring the potential in energy management.Table: Carbon emission targets of Joincare from 2022 to 2025

Year Item Indicator Targets

2022 Carbon emission Emission per unit production (RMB 10000) Down 2% from 2021

2023 Carbon emission Emission per unit production (RMB 10000) Down 4% from 2021

2024 Carbon emission Emission per unit production (RMB 10000) Down 6% from 2021

2025 Carbon emission Emission per unit production (RMB 10000) 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 such

as the Energy Conservation Law of the PRC and the Law of the PRC on Promoting Clean Production based on ISO 50001

standards. 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 verification and energy data analysis fully exploit their

energy-saving potential and formulate practical measures for efficient 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 the

company's operations/production processes (e.g. gasoline diesel natural gas etc.). Scope 2 GHG emissions are mainly derived from indirect

GHG emissions from purchased electricity and steam consumed by the company's operations/production processes.

124Table: Energy system accreditations of Joincare’s production subsidiaries

Company Name Energy System Accreditation Name of the Energy System

Jiaozuo Joincare Accredited ISO 50001:2018 / RB/T114-2014

Xinxiang Haibin Accredited ISO 50001:2018 / RB/T114-2014

Haibin Pharma Accredited ISO 50001:2018 / RB/T114-2014

Fuzhou Fuxing Accredited ISO 50001:2018 / RB/T114-2014

Livzon Hecheng Accredited GB/ T23331-2020/ RB/T 114-2014

We incorporate the energy management concept into the work processes. In production we take measures to improve energy

use efficiency for energy conservation and emission reduction. We also increase the investment in green production projects and

strive to build a low-carbon and energy-saving green production enterprise.Table: Green production projects of Joincare in 2024

Company Name Project Name Investment Amount Result

Jiaozuo Joincare completed the biogas reuse project with a capacity of 4000 m3/d.In this project biogas produced in the anaerobic section of the industrial wastewater

Anaerobic biogas workshop is purified and used as fuel for RTO regenerative incinerators meeting

RMB 1.79 million

reuse the fuel needs of the two RTO incinerators of Joincare and Jiaozuo Livzon. An RTO

consumes approximately 365000 m3 of natural gas annually. The remaining part after

heating hot water is used to replace steam saving 3759.5 m3 of steam per year.Jiaozuo Joincare Jiaozuo Joincare completed the project of installing heat exchangers on blowers. Heat

at the outlet of aeration blowers is transferred through the heat exchanger to the high-

Installation of heat concentration wastewater collected by the anaerobic system. As a result the wastewater

exchangers on RMB 66 thousand is heated up through a heat exchange with the hot air at the blower outlet. While

blowers increasing the treatment capacity and efficiency of CASS tanks the project reduces

steam consumption. After being put into operation the project has cut down the steam

volume used to heat the anaerobic system by 180 tonnes annually.Energy saving Ningxia Pharmaceutical installed waste heat recovery units to recover heat generated

RMB 1.53 million

Ningxia project of the hot by air compressors in operation. Heat recovered as such is used for the water heating

was invested by the

Pharmaceutical water system in the system in workshops. Replacing the original method of steam heating the project saves

third party

workshop about 6000 tonnes of steam per year.Livzon Hecheng launched a photovoltaic power generation project. Adopting

monocrystalline silicon solar cells as the device for photovoltaic power conversion

Photovoltaic power the project installs photovoltaic facilities on the rooftop of the parking lot and the

Livzon Hecheng RMB 1.8 million

generation warehouse. Access systems are configured according to the site planning. Financed and

constructed by Livzon Hecheng the project is expected to generate 500000 kWh of

electricity annually upon completion.Sichuan Guangda pushed forward a photovoltaic power generation project to install

RMB 6 million was photovoltaic facilities on the rooftop of the vehicle shed and buildings at the plant.Photovoltaic power

Sichuan Guangda invested by the third Financed and constructed by a third party with rate preferences for Sichuan Guangda

generation

party the project is expected to generate 2.17 million kWh of electricity annually upon

completion.

1252024 Sustainability Report 09 Operating with Green Sustainability

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 Impact

Assessment the Law of the People’s Republic of China on Prevention and Control of Soil Contamination the Law of the People’s Republic

of China on the Prevention and Control of Air Pollution and the Regulations on the Safety Management of Hazardous Chemicals. We strictly

control emissions and perform our environmental protection responsibilities. We have formulated policies such as the Safety and Environmental

Management Manual and the Environmental Protection Management Assessment System in light of our own operating conditions. We also

revised our environmental management policies in 2024 including the Hazardous Waste Management Policy the VOCs Collection and

Treatment Management System and the Management Policy for Production Wastewater Discharge. In these policies clear requirements are

provided concerning the classification method monitoring method disposal process and emission standard of all emissions. This ensures that

emission management is based on unified systems and standards.In addition we conduct lifecycle management for the pollutant emission. All production subsidiaries of the Group have applied for a sewage

discharge permit in accordance with the law on the unified national platform. After obtaining the permit they discharge in strict accordance

with the requirements within the validity period and firmly ensure the compliance of pollutant emission. Furthermore we have formulated a

self-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-inspection

and correction of non-standard behaviours and strive to minimise the negative impact of our production on the environment as part of our

environmental protection efforts.

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 the

PRC on the Prevention and Control of Air Pollution. We have formulated and implemented waste gas management policies such as the VOCs

Collection and Treatment Management System the Boiler Waste Gas Emission Management System and the Standard Operating Procedures for

High-concentration Waste Gas Treatment Systems. The policies require all production subsidiaries to standardise the management process and

ensure the waste gas emission is up to standard. The production subsidiaries of the Group strictly implement waste gas management and take

effective measures to minimise the impact of waste gas emissions on the environment based on their actualities.Digital Monitoring and Manual Daily Detection and Feedback of Strengthening of Waste

Detection of Waste Gas Waste Gas Concentration Gas Management

The production subsidiaries have In the daily inspection of environmental The production subsidiaries conduct

installed online monitoring equipment protection the production subsidiaries professional and technical training

for organised waste gas emissions and check the concentration detection for waste gas management personnel

detection equipment for fugitive waste of environmental pollutants in their to enhance their professional ability.gas emissions for teal-time monitoring production areas the concentration The subsidiaries also acquire real-

of the waste gas pollution factors. Data detection of environmental pollutants t ime upda tes on the p rogress o f

is uploaded to the national automatic in key areas the leakage problems in each production step by consistently

monitoring and basic database system the production areas and the operating strengthening communication between

for key pollution sources in real-time. status of the waste gas col lect ion the waste gas treatment departments

and treatment facilities. In addition and the production departments.The production subsidiaries conduct they repor t the concent ra t ion of

manual detection of organised and environmenta l pol lu tants wi th in

fugitive waste gas emissions each the scope of their factories to the

quarter pursuant to the requirements production units demand that the

of the waste discharge permit and their items that do not meet the requirements

self-monitoring plans. This practice be corrected in a t imely manner

aims to advance efficient management and record the items that violate the

of the emissions. environmental management policy and

punish those responsible.

126To reduce harmful emissions from our operations we carry out group-wide projects of emissions management improvement every year. Each

Joincare’s production subsidiary continues to increase its investments in waste gas management and has achieved effective management of waste

gas emissions by upgrading waste gas treatment equipment and process.Table: Major waste gas management and improvement projects of Joincare in 2024

Company Name Project Name Result

Xinxiang Haibin inspected and maintained the RTO system. By replacing the ceramic

Inspection and

regenerator and pall ring the project enhanced the system performance. Upon completion

maintenance of the RTO

the average VOC emissions decreased by more than 60% reducing the VOC content in the

system

waste gas.Xinxiang Haibin invested in a membrane recovery project that is expected to recycle 1000

Xinxiang Haibin

Membrane recovery tonnes of ethyl acetate (EA) per year hugely reducing the concentration of organic solvents

in waste gas emissions.Replacement with a Xinxiang Haibin replaced the flat centrifuge with a three-in-one device and delineated a

three-in-one treatment closed treatment room to lessen the open operations and reduce the fugitive VOC emissions

device from the workshop.Taitai Pharmaceutical introduced a one-stage activated carbon treatment cycle after the

Upgrade of waste gas original quality control waste gas treatment facility. By replacing the UV photodissolver

Taitai Pharmaceutical

treatment facilities of the injection moulding waste gas treatment facility with two-stage activated carbon the

project greatly enhanced the treatment efficiency.Fuzhou Fuxing constructed a low-temperature refrigeration system to recover the tail gas of

organic solvents in the workshop for low-temperature water recycling reducing the amount

Equipment upgrading and of organic solvent tail gas discharged into the RTO. Through technical means such as low-

Fuzhou Fuxing

technical transformation temperature cooling and increasing the heat transfer area while reducing the amount of tail

gas it can also save the usage amount of solvents saving approximately RMB 3.5 million

in solvent costs every year.Gutian Fuxing improved the waste gas treatment technique by means of adding procedures

Upgrade of waste gas

Gutian Fuxing and replacing facilities and equipment further enhancing the waste gas treatment efficiency

treatment facilities

and effectively reducing pollutant emissions.

1272024 Sustainability Report 09 Operating with Green Sustainability

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 Law

of the PRC and has established the wastewater management system and a series of standard operating procedures. By installing

online wastewater monitoring equipment at the effluent outlets of major wastewater discharge plants and networking with

regulatory authorities we monitor and share real-time chemical oxygen demand (COD) ammonia nitrogen total nitrogen total

phosphorus and other discharge data of treated wastewater and urge all the production subsidiaries to meet the set standards for

wastewater treatment and discharge.We regularly inspect and maintain the wastewater treatment and monitoring equipment to ensure the stable and efficient operation

of the wastewater treatment system. The production subsidiaries of the Group also upgrade the processes and equipment that

produce wastewater and strive to reduce the discharge of wastewater. At the same time we conduct regular training for operators

of the wastewater treatment system and at the sewage stations to improve their management awareness and professional skills

and to ensure that wastewater management runs smoothly.To reduce the environmental impact of wastewater from our operations we carry out group-wide wastewater management

improvement projects every year. We decrease wastewater discharge increase wastewater utilisation and reduce the

concentration of pollutants in wastewater by improving wastewater treatment processes and upgrading wastewater treatment

facilities. In this way we continue to explore the potential for better wastewater management. At the same time we continue to

track and review the progress of wastewater management improvement projects and the effectiveness of treatment to ensure that

our efforts to reduce and manage wastewater emissions are fruitful.Table: Major wastewater management and enhancement projects of Joincare in 2024

Company Name Project Name Result

Jiaozuo Joincare invested in the maintenance and renovation of wastewater treatment

Maintenance

facilities. By renovating aeration plates pipelines sludge dischargers reflux pumps

and renovation

Jiaozuo Joincare and other worn-out facilities in the wastewater workshop Jiaozuo Joincare ensured a

of wastewater

timely sludge discharge and a smooth wastewater reflux thus boosting the efficiency of

treatment facilities

wastewater treatment.Renovation of Xinxiang Haibin invested to renovate the biochemical wastewater treatment system.the biochemical By replacing the original aeration head and pipeline with a cyclone aerator the project

Xinxiang Haibin

wastewater increased the oxygen dissolved in the aeration tank thus enhancing the COD treatment

treatment system efficiency.The production of tobramycin consumes a large amount of water elevating the

ammonia nitrogen concentration of the influent into the sewage station by 70 mg/L on

Construction of new

Livzon average. In 2024 Livzon Xinbeijiang newly built two tanks for nitrogen and phosphorus

sewage treatment

Xinbeijiang removal. The project aimed to optimise the wastewater denitrification effect and raise

facilities

the efficiency of ammonia nitrogen treatment making sure that the ammonia nitrogen

content meets relevant standards after wastewater treatment.Jiaozuo Hecheng tackled the wastewater treatment technique reducing the emission of

Improvement fluoride ions in the wastewater. This not only decreased the content of fluoride ions in

Jiaozuo Hecheng of wastewater the workshop wastewater but also reduced the monthly consumption of quicklime by

treatment processes 16.5 tons and polyaluminium chloride by 60 tons. It generates an economic benefit of

approximately RMB 30000 per month.

1289.4.3 Solid Waste Management

Joincare collects stores transports and disposes of wastes in strict accordance with the standards and regulations such as the

Catalogue of Classified Management of Discharge Permits for Stationary Pollution Sources and the Standard for Pollution

Control on the Non-hazardous Industrial Solid Waste Storage and Disposal Facility. Therefore legal compliance is ensured in

solid waste treatment. For hazardous waste under the manifest system for transfer of hazardous waste we transfer all such waste

we produce to qualified companies for rule-based disposal. And we deliver non-hazardous waste to qualified entities with whom

we have signed contracts for safe disposal.Adhering to the circular economy concept we strictly control the discharge of solid waste in waste generation reduction reuse

and harmless disposal links with the aim of reducing our impact on the environment. The Group has set solid waste disposal

targets 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 efficiency introduce advanced environmental protection technology into production and

upgrade original production technology and formulations. We are monitoring the operation and treatment effects of solid waste

management improvement projects to ensure that our efforts to reduce waste discharge are effective.Table: Major solid waste management and improvement projects of Joincare in 2024

Company Name Project Name Result

Xinxiang Haibin invested to install a set of intelligent hazardous waste management

Intelligent hazardous system. By technical means of electronic weighbridges labels and management

waste management ledgers the system allowed for the intelligent management of the generation

system storage discharge disposal of hazardous wastes. As such Xinxiang Haibin achieved

Xinxiang Haibin intelligent hazardous waste management from the source with a higher efficiency.To reduce hazardous waste Xinxiang Haibin treated the wastewater separately.Hazardous waste Part of the wastewater went directly to the evaporation boiler for evaporation and

reduction concentration and was then mixed for targeted treatment. The process reduced the

hazardous waste by 40% equivalent to more than 500 tonnes over 2023.Fuzhou Fuxing carried out the alumina recycling project through experimental

cooperation with a third party. In this project waste alumina is processed into

Fuzhou Fuxing Alumina recycling aluminum sulfate for use as a water treatment flocculant. This project is currently

underway. Once completed it will reduce the amount of hazardous waste to be

disposed of by Fuzhou Fuxing and save disposal costs at the same time.

1292024 Sustainability Report 09 Operating with Green Sustainability

9.4.4 Noise Management

Joincare strictly abides by the Environmental Noise Pollution Prevention and Control Law of the PRC Environmental Noise

Emission Standards for Industrial Enterprises Boundary and other relevant laws and regulations. We equip the production

subsidiaries 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 generator

mufflers.Case Noise control at workshops by Xinxiang Haibin

In 2024 Xinxiang Haibin invested RMB 300000 to

prohibit noise transmission by building soundproof panels

and rooms and eliminating noise from large refrigeration

machines at the production workshop. These efforts

helped Xinxiang Haibin meet the noise control standards

for 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 consistently

strengthens 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 stringent

management requirements for water resources and materials. We also promote standardised and systematic management

measures 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 implement

a strict water management policy and carry out group-wide water management improvement projects. All our production

subsidiaries are actively introducing and using advanced technologies and processes to conserve water and improve water

use efficiency. We are strengthening the maintenance of various water-consuming equipment and facilities investing in water

resource recycling projects and promoting the recycling of reclaimed water and cooling water. These efforts aim to reduce fresh

water consumption and improve the reuse rate of water resources.

130Table: Major water-saving projects of Joincare in 2024

Company Name Project Name Result

After repeated testing analysis and experimental verification Jiaozuo Joincare

succeeded in recycling the water from the level-3 sedimentation tanks in the industrial

wastewater workshops and the pickling wastewater from the refining plants. Through

Recycling and combined treatment including classified collection sedimentation and filtration

Jiaozuo Joincare utilisation of reclaimed composite filtration thorough removal of contaminants and secondary treatment

water with reverse osmosis membranes the wastewater meets the standard for reuse. After

being put into operation the project recycles about 1600 m3 of water from the level-3

sedimentation tanks and 1400 m3 of pickling wastewater per day reducing the daily

wastewater volume by about 3000 m3.Steam condensate Xinxiang Haibin launched a steam condensate reuse project using steam condensate

Xinxiang Haibin

reuse for domestic use and irrigation. This saves 10000 tonnes of water every year.Utilisation of Fuzhou Fuxing uses the ammonia washing water reclaimed through chromatography

reclaimed water for acid washing of some decalcification columns and adsorption columns while the

from vancomycin reclaimed water has been used for ammonia washing. After the completion of this

chromatography project it can save an average of 80 tons of water per day.Fuzhou Fuxing

Fuzhou Fuxing implemented a project to recycle the heavy water from water

Recycling and

production for preparing the chemicals to be used for wastewater treatment at sewage

utilisation of heavy

stations. The project is expected to recycle 100 tonnes of heavy water every day upon

water

completion.

9.5.2 Material Utilisation Management

Following the “3R principles” of Reduce Reuse and Recycle Joincare makes every effort to implement the recycling policy and

advance a circular economy. We optimise the layout of the storage area for better material management. The packaging materials

and 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 material

transportation. All these practices help prohibit resource loss during transportation. To improve the product packaging design

and product specifications we have been recycling consumables such as corner strips and packing belts used for packaging the

finished products to raise resource utilisation.

1312024 Sustainability Report 09 Operating with Green Sustainability

Case Environmental protection practices in product packaging materials by

Joincare

Joincare continues to optimise the product packaging design. To meet the market demand we have unveiled more

environmentally friendly products:

* Taitai Pharmaceutical: Taitai Pharmaceutical has established company-wide standards for the selection of

packaging materials by grade. According to the standards metal products (with a recycling rate of more than 95%)

and corrugated cardboard (with 100% FSC certification) are used to pack basic structural parts. The recycled EPE

and high-density honeycomb paper are used as cushioning materials. Besides the two thermoplastics for inner

packaging i.e. biaxially oriented polypropylene (BOPP) and low-density polyethylene (LDPE) have been certified

to Global Recycled Standards (GRS).* Joincare Haibin: The package of Budesonide Suspension for Inhalation is designed with a collapsible colour

box which significantly reduces the space for transportation and storage and lowers carbon emissions during

transportation. The use of FSC-certified packaging materials ensures the sustainability of forest resources.Meanwhile the product has obtained the Product Carbon Footprint Certificate.* Haibin Pharma: By optimising the specification of infusion bottles from 15 ml to 10 ml Haibin Pharma reduces

the consumption of glass raw materials by 29.61 tonnes per year. The product packaging materials mainly include

corrugated paper white cardboard halo-butyl rubber closures and infusion bottles made of middle borosilicate

glass. All of these are recyclable with a 100% usage of green materials.

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 Prevention

and Control of Soil Contamination the Forestry Law of the PRC the Law of the PRC on the Protection of Wildlife the

Regulations on Conversion of Farmland to Forests the Opinions on Further Strengthening Biodiversity Protection and other

relevant laws and regulations. We also actively implement the UN Convention on Biological Diversity and promote biodiversity

in 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 ecological

reserves. At the same time we encourage our production subsidiaries to conduct biodiversity assessments relevant to their

operations to help protect endangered species and promote ecosystem balance. During the year Joincare had no production

facilities or operational sites located within ecological reserves or areas of high biodiversity value. None of the Group’s

production activities products or services had a significant impact on ecosystem and biodiversity.

13210

Public Welfare

and Charity

SDGs in this section

Joincare is committed to the role as a responsible corporate citizen. By virtue of our business and technical advantages the Group

integrates various resources into charitable and public welfare projects. As part of our contributions to society we participate in

industry exchanges support rural revitalisation and facilitate community-level health activities.2024 Sustainability Report 10 Public Welfare and Charity

10.1 Promoting Industry Development

Joincare aims to become a pioneer in the healthcare industry. We actively participate in exchanges and cooperation with industry

associations and societies on cutting-edge industry technologies and trends to promote the sustainable development of the

industry through joint efforts.Table: Associations joined by Joincare

No. Associations

1 Medical and Chemicals Technical Options Committee (MCTOC)

2 Guangdong Pharmaceutical Profession Association

3 Guangdong Bio-Pharmaceutical Innovation Technology Association

4 Shenzhen Biomedical Industry Alliance

5 Shenzhen Life Science and Biotechnology Association

6 China Pharmaceutical Industry Association

Professional Committee of Drug Manufacturing Quality Authorised Person of Guangdong Pharmaceutical

7

Association

8 China Nutrition and Health Food Association

9 China Health Care Association

10 Guangdong Food Safety Society

11 Guangdong IP Protection Association

12 Guangdong Forensic Science Association

13 Shenzhen Forensic Science Association

14 Shenzhen Biomedical Industry and Education Alliance

The processes of R&D production and quality control of inhalation preparations which are high-end dosage forms have

relatively large difference from those of regular oral or injectable formulations. Dr. Jin Fang General Manager of Shanghai

Frontier 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 and

the 2020 edition) of the general rules for inhalation preparations and related testing methods in the Chinese Pharmacopoeia

Commission. Moreover he has completed research projects organized by the Chinese Pharmacopoeia Commission such as

“Research on the Classification Naming and Quality of Inhalation Preparations” and “Research on the Determination Method ofthe Inhalation Efficacy 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 is

led by the Guangzhou Institute of Respiratory Health and approved by the Centre for Food and Drug Inspection of the National

Medical Products Administration. This effectively helps on-site inspectors better identify the risk control points of inhalation

preparations improve the quality of on-site inspections and comprehensively ensure the quality and safety of inhalation

preparations.

13410.2 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 about

RMB 14.043 million to public welfare projects including cash of nearly RMB 11.957 million and goods worth about RMB 2.086

million.Goods Worth about

RMB 2.086 Million.Including Cash of nearly

In 2024 Joincare Donated about 11.957

RMB 14.043

RMB Million

Million

10.2.1 Rural Revitalisation

Chronic Disease Prevention and Treatment

In response to the national strategy of rural revitalisation and common

prosperity Joincare joined hands with the Group’s holding subsidiary

Livzon 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 financial

difficulties in remote areas who suffer from chronic diseases such as

hypertension hyperlipidemia cardiocerebral diseases and gastric diseases.We donated five drugs for treating chronic diseases including Pravastatin

Capsules (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 Mononitrate

Tablets (单硝酸异山梨酯片 ) and Bismuth Potassium Citrate Tablets (枸 Donations for Rural Revitalisation

橼 酸 铋 钾 片 ) to reduce the medical burden of chronic diseases on poor

families 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 Autonomous

Prefecture; Jinkouhe District Jiange and Pingwu Counties Leshan City Sichuan Province; Hunyuan Guangling and Lingqiu

Counties 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 Zhejiang

Province; Chayu Bomi and Gerze Counties Tibet Autonomous Region; Kashgar Xinjiang Uygur Autonomous Region Baarin

Left Banner and Togtoh County Inner Mongolia Autonomous Region; and Ziyuan County Guangxi Zhuang Autonomous

Region. These are part of our efforts to benefit the public protect the health of rural residents revitalise rural areas and build a

beautiful and healthy China.

1352024 Sustainability Report 10 Public Welfare and CharityBy 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 need

of aid and benefiting 30409 low-income patients with chronic diseases. In 2024 we donated RMB 1 million worth of chronic

disease medicines to low-income patients in each of the following regions:

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.Case Voluntary medical services and drug donations for chronic diseases

To raise public awareness of chronic diseases and improve prevention and treatment efforts 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 City

was launched in the Xunli Village Hall Nianbadu Town Jiangshan City in May 2024. During the programme we donated RMB

1 million worth of medicines for cardiovascular hypertension hyperlipidemia gastric diseases and other chronic diseases to

people nearby the Jiangshanxueling Nature Reserve. By providing voluntary medical services to local chronic disease patients

and villagers we played a part in preventing and treating chronic diseases in remote areas.Voluntary Medical Services and Drug Donations for Chronic Diseases

Industry-based Assistance

The Group provides industry-based assistance to empower the sustainable development of the rural economy using its industrial

advantages. 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 astragalus

root industry a pillar industry for rural revitalisation with reference to the local conditions.

136Case Industry-based assistance to promote the development of the astragalus

root industry by Livzon Group

Since 2017 Datong Livzon Qiyuan Medicine Co. Ltd. (“Datong Livzon”) a subsidiary of Livzon Group has

been providing industry-based assistance to develop the astragalus root industry. Datong Livzon has independently

or jointly constructed more than 20000 mu of astragalus root planting bases over the past eight years. Datong

Livzon regularly provides on-site technical guidance and GAP training to base managers and large-scale growers

every year. The company also conducts practical training on the traceability of Chinese herbal medicine. By the

end of 2024 all bases had been included into the company’s GAP production management traceability system for

Chinese herbal medicines to share advanced technological resources with the company.This year astragalus root bases of Datong Livzon planted about 1000 mu of astragalus root harvested about 3500

mu 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. Having

been put into operation in 2023 the workshop provided employment opportunities to 120 local farmers in 2024.

10.2.2 Community Health

As an effort to continuously promote public welfare science popularization we invite experts to host science popularization live

broadcasts and deliver public welfare lectures via Douyin Weibo WeChat and other media channels. By doing so we aim to

enhance the engagement and accessibility of publicity activities on health knowledge thus working to popularise general health

knowledge and raise public awareness on this front.Popularization of Health Knowledge about Respiratory Diseases

November 20th 2024 marked the 23rd World COPD Day with the theme of “Know Your Lung Function”. Joincare

actively responded to the call of the Global Initiative for Chronic Obstructive Lung Disease (GOLD) and the National

Health Commission. Relying on the “Respiratory Experts’ Views” platform a series of wonderful and fruitful science

popularization and publicity activities were carried out. We extensively collaborated with nearly a hundred authoritative

experts in the field of respiratory diseases across the country and launched the COPD Live Streaming Month event. While

enhancing public awareness we have also successfully popularized relevant content such as the pathogenesis of COPD the

identification of early symptoms treatment methods and patients’ daily self-management increasing the public’s attention

to this disease. The successful holding of this World COPD Day event fully demonstrates the powerful influence and appeal

of the “Respiratory Experts’ Views” platform in the science popularization and publicity of respiratory system diseases. It

has made positive contributions to enhancing the public's awareness of respiratory health and promoting the prevention and

treatment of COPD.Poster for Word COPD Day

1372024 Sustainability Report 10 Public Welfare and Charity

Popularization of Oral Health Knowledge

At the 17th World Oral Health Day on 20 March 2024

we actively responded to the call of the World Dental

Federation (FDI) and the Chinese Stomatological

Association. Specifically in cooperation with 90 doctors

at home and abroad we organised an enterprise self-media

matrix to conduct knowledge publicity on platforms such

as Douyin Weibo and WeChat. A total of 106 educational

videos on oral health were released accumulating more

than 150 million views across the network and reaching

15 million oral ulcer patients. As a result we significantly

increased the public attention to and awareness of oral Popularization of Oral Health Knowledge

health and effectively popularised knowledge on oral

health maintenance.Dissemination of Healthcare Concepts

In 2024 we developed a cross-border partnership with gaga

a well-known casual dining chain brand to spotlight the work

pressure and mental state of employed persons. We released

co-branded Eagle’s American Ginseng products placed

advertisements on Xiaohongshu and encouraged users to

post their product experiences so as to disseminate healthcare

concepts. Related advertisements and postings harvested

favourable achievements with over 30 million views.Promotion Postings

Series of Science Popularization about Melasma

From September to November 2024 we joined hands

with Xinhuanet to invite experts and scholars from

the College of Pharmaceutical Sciences Zhejiang

University and Hangzhou Third People’s Hospital tolaunch a seminar on “2024 Chinese Women’s MelasmaRemoval Research Report”. The seminar aimed to help

Chinese women solve melasma problems with scientific

guidance. At the same time we collaborated with 16

scholars and doctors active in Douyin to post serial

educational videos on melasma explaining the causes

traits and internal and external treatment options for the

issue. Viewed by more than 50 million women affected Popularization Video on Melasma of Women

by melasma these videos advanced melasma education

and promoted inner nourishment with TCM.

138Experts’ View on Menopause

Menopause is an unavoidable physiological stage for women. To

this end we cooperated with more than 60 nationally renowned

experts and scholars in gynaecology endocrinology psychology

nutrition sports rehabilitation and other professions to deliver more

than 40 educational live broadcasts on WeChat official account

WeChat video account Douyin Xiaohongshu and other platforms.These efforts helped us attract more than 300000 subscribers across

the network. Besides we held 3 offline public welfare lectures

to provide women with scientific and effective knowledge on

menopausal healthcare and psychological adjustment which were

widely 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 and

conduct patient education activities on respiratory diseases. By doing so Joincare provided patients with free medical

consultation and health education thus raising public health awareness and popularising disease prevention and treatment

knowledge. At the event a team of experts patiently offered free medical services to patients carefully inquired about their

medical histories and symptoms thoroughly provided detailed physical checkups and expertly gave professional diagnosis and

treatment advice. Meanwhile Joincare carried out diversified diagnostic and therapeutic activities on site including pulmonary

function tests CT report interpretation effective sputum evacuation and respiratory rehabilitation training. In 2024 a total of 275

hospitals participated in World Asthma Day more than 300 hospitals participated in World Bronchiectasis Day and 328 hospitals

participated in World COPD Day events respectively altogether serving 18060 patients.Voluntary Medical Services on World COPD Day

1392024 Sustainability Report 10 Public Welfare and Charity

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 play

to the advantages of the volunteer service team and call on more employees to join it. We carry out volunteer services in a variety

of areas such as community volunteer work public welfare blood donation and biodiversity conservation to spread care and

kindness.Community Welfare

Case Caring for children with autism

In April 2024 the Group’s volunteer service

team visited the Golden Rehabilitation Centre

for Children with Autism in Nanshan District

Shenzhen City. The team learnt in detail about

the rehabilitation of autistic children in the centre

interacted with them through caring games and

brought the children gifts to convey warmth and

care. They also called on the society to deliver

more caring and support to autistic children.Caring Activity

Case Caring for the elderly group

Nowadays the elderly’s health and well-being

have gained increasing attention. The Group’s

volunteer service team participated in the

activities organised by the local community to

care for the elderly population for many times

bringing fresh fruits and vegetables healthcare

products and other supplies to the aged group and

creating a joy atmosphere by chatting and playing

chess with them. While providing companionship

and assistance to the elderly the team promoted

the spirit of respecting and caring for the senior

population for building a harmonious community.Bringing Supplies to the Elderly Group at the Community

140Volunteer Activities

Case: Blood donation by employees

In 2024 the Group involved employees in a

group blood donation activity at Yantian Haibin.We conveyed health guidelines before blood

donation offered employees sugar water and

pastries for energy replenishment and measured

blood pressure after the donation. The Group

encouraged employees to actively participate

in the activity while safeguarding their physical

health which reflected our sense of social

responsibility and contribution to medical

emergency care.Blood Donation Activity at Yantian Haibin

Biodiversity Conservation

With a strong sense of social responsibility Joincare takes the initiative to provide financial support to the Paradise International

Foundation and other social welfare organisations. It serves as one of our firm strides towards biodiversity conservation. Looking

ahead we will increase our investment and unite more forces to facilitate the protection of diversified biological resources on

earth.Case: Support for the Paradise International Foundation

The Paradise International Foundation is a non-profit environmental protection organisation focusing on nature

reserves. The Foundation manages five reserves with a total area of 422 square kilometres in four provinces of

Sichuan Hubei Anhui and Zhejiang. In 2024 the Group donated RMB 1 million to the Paradise International

Foundation. In support of the procurement of necessary field gear and geographic information equipment the

donation facilitated ecological conservation activities such as wildlife surveys and fire protection and forest patrols

in reserves such as Laohegou in Sichuan Province and Taiyangping in Hubei Province.

1412024 Sustainability Report 11 Appendix

11 Appendix

11.1 Index of the Guidelines No. 14 of Shanghai Stock

Exchange for Self-Regulation of Listed Companies—

Sustainability Report (Trial)

Topic Article Section in the report

Climate change tackling Article 21-28 9.2 Addressing Climate Change

Pollutant discharge Article 30 9.4 Emission Management

Waste disposal Article 31 9.4 Emission Management

Ecosystem and biodiversity protection Article 32 9.6 Biodiversity Conservation

Environmental compliance management Article 33 9.1 Environmental Management System

Energy usage Article 35 9.3 Energy Management

Usage of water resources Article 36 9.5 Resource Utilisation Management

Circular economy Article 37 9.5 Resource Utilisation Management

Rural revitalization Article 39 10.2 Promoting Health-Based Welfare and Charity

Contributions to the society Article 40 10 Public Welfare and Charity

Innovation-driven Article 42 7.1 Focusing on R&D and Innovation

Ethics of science and technology Article 43 6.1 Quality Management System

Supply chain security Article 45 6.6 Supply Chain Management

Since the Group does not fall within the scope of the

Equal treatment to small and medium-sized enterprises Article 46 mandatory disclosure entities listed in Article 46 no

response is provided this year.Safety and quality of products and services Article 47 06 Safeguarding Product Quality

Data security and customer privacy protection Article 48 5.4 Information Security

Employees Article 50 08 Talent Management

Due diligence Article 52 8.1 Protection of Rights and Interests of Employees

Communications with stakeholders Article 53 4.2 Sustainability Strategy

Anti-commercial bribery and anti-corruption Article 55 5.3 Integrity and Business Ethics

Anti-unfair competition Article 56 5.3 Integrity and Business Ethics

14211.2 Data List of Key Performance Indicators

Sustainability indicator Unit 2022 2023 2024

1 Environmental7

1.1. Emissions8

Waste Water Emission Tonne 11110513.9 12092149.0 12154327.4

Chemical Oxygen Demand (COD ) Tonne 1029.4 995.2 1070.4

Cr

Ammonia Nitrogen Tonne 101.1 113.6 112.9

VOCs Tonne 55.1 69.0 87.9

NO Tonne 107.2 90.1 147.3

X

SO Tonne 33.5 34.6 84.8

2

Particulates Tonne 19.2 16.0 15.9

Hazardous and Non-hazardous Waste

Hazardous Waste Tonne 6410.1 6884.2 5968.3

Pharmaceutical Wastes and Medicine

Tonne 3352.9 3792.2 3247.6

Divided by Category Wastes

Other Hazardous Wastes9 Tonne 3057.1 3092.0 2720.7

Total Hazardous Waste Recycled/

Divided by Processing Tonne / 742.2 727.1 Reused

Method

Total Hazardous Waste Disposed Tonne / 6141.9 5965.5

Intensity of Hazardous Waste10 Tonne /RMB 10000 0.003 0.003 0.003

Industrial Waste Tonne 151323.1 141539.1 141807.0

Industrial Waste (Recyclable) Tonne / 48400.0 33598.9

Industrial Waste (Non-Recyclable) Tonne / 93139.1 108208.1

Intensity of Industrial Waste10 Tonne /RMB 10000 0.08 0.07 0.08

Greenhouse Gas Emissions

Total Greenhouse Gas Emissions CO equivalent (in tonnes) 1037613.6 1033000.9 1026672.1

2

CO equivalent (in tonnes)/

Intensity of Greenhouse Gas Emissions10 2 0.52 0.51 0.60

RMB 10000

7 Scope of environmental data disclosure: the manufacturing enterprises of Joincare.

8 Disclosure of major pollutants/emissions and related emission data according to the production characteristics of enterprises.

9 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 10000 of output value.

1432024 Sustainability Report 11 Appendix

Sustainability indicator Unit 2022 2023 2024

Direct Greenhouse Gas Emissions (Scope 1)11 CO equivalent (in tonnes) 202473.9 162677.0 197854.4

2

Indirect Greenhouse Gas Emissions (Scope 2)12 CO equivalent (in tonnes) 835139.7 870323.9 828817.7

2

1.2 Use of Resource

Total Energy Consumption

Gasoline Litre 251528.5 387425.5 260932.4

Diesel Litre 196825.5 261122.8 235846.7

Coal Tonne 88244.2 66894.5 83607.5

Natural Gas 10000 cubic meters 858.3 1093.9 887.5

Liquefied Petroleum Gas Tonne 6.8 3.7 0.6

Purchased Steam Tonne 932444.1 1605949.6 973876.7

Purchased Electricity MWh 959454.9 989071.4 1000133.8

Biomass Fuels Tonne / 1004.0 3668.3

Direct Energy Consumption MWh 611129.2 506554.7 601772.7

Indirect Energy Consumption MWh 1682747.5 1787199.0 1762987.5

Renewable Energy Consumption MWh 1320.8 5708.2 17809.1

Non-renewable Energy Consumption MWh 2292555.9 2288045.4 2346951.1

Total Energy Consumption MWh 2293876.7 2293753.6 2364760.2

Intensity of Total Energy Consumption10 MWh/RMB 10000 1.1 1.1 1.4

Water Consumption

Total Water Consumption 10000 tonnes 1300.4 1426.5 1388.6

Intensity of Total Water Consumption10 Tonne /RMB 10000 6.5 7.1 8.1

Recycled Water Volume 10000 tonnes 13.8 9.2 11.0

Packaging Material Used

Packaging Material Used Tonne 14570.6 9236.3 14133.1

Intensity of Packaging Material Used10 Tonne/RMB 10000 0.0073 0.0046 0.0083

11 Scope 1 greenhouse gas (“GHG”) emissions are mainly derived from direct GHG emissions from the consumption of fossil fuels in the company's

operations/production processes (e.g. gasoline diesel natural gas etc.) and the formula used is: CO2 emissions from fossil fuel combustion = fuel

consumption × low level heat generation × carbon content per unit of calorific value × fuel carbon oxidation rate × 44/12. The emission factor and the

calculation 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）).

12 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 Stock

Exchange. In 2022 the power emission factor adopts the grid emission factor 0.5810 tCO2/MWh in the Corporate Greenhouse Gas Emission Accounting

Methodology 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 tCO2/MWh in the Notice on the Management of Greenhouse Emission

Reporting 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 tCO2/MWh in the Announcement on the Release of the 2022

Carbon Dioxide Emission Factor for Electricity ( 关于发布 2022 年电力二氧化碳排放因子的公告 ).

144Sustainability indicator Unit 2022 2023 2024

2. Social Responsibility

2.1 Employment

Number of Employees: By Gender Age Group Geographical Region and Job Level

Number of Employees Person 14116 14365 14350

Male Person 7531 7788 7718

Gender

Female Person 6585 6577 6632

30 and below Person 5026 4900 4678

Age 31-49 Person 8204 8536 8590

50 and above Person 886 929 1082

Chinese Mainland Person 14097 14348 14339

Geographical Region Hong Kong Macao and Taiwan China Person 6 5 2

Foreigners Person 13 12 9

President and Vice President (Executive

Person / 12 16

Management)

General Manager Level and above (Senior

Person / 107 119

Management)

Job Level

Director Level Person / 252 264

Manager Level Person / 1143 1185

Other Employees Person / 12863 12782

Diversity of Employees

Number of Women in Executive Management Person / 2 4

Share of Women in Executive Positions % 26.7 16.7 25.0

Number of Women in Senior Management Person / 31 34

Share of Women in Senior Management Positions % / 29.0 28.6

Share of Women in Management Positions % 34.2 35.4 37.0

Share of Women in Management Positions in Revenue-generating

%28.827.531.6

Functions

Share of Women in STEM-related Positions % 55.5 53.7 51.9

Number of Ethnic Minority Employees13 Person 784 789 807

Hiring

Total Number of New Employee Hires Person 4351 3999 3105

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%.

1452024 Sustainability Report 11 Appendix

Sustainability indicator Unit 2022 2023 2024

Number of New Employee Hires by Gender and Age Group

Male Person 2326 2371 1734

Gender

Female Person 2025 1628 1371

30 and below Person 2664 2434 1874

Age 31-49 Person 1664 1546 1221

50 and above Person 23 19 10

Percentage of Open Positions Filled by Internal Candidates (Internal

%14.418.928.2

Hires)

Percentage of Internal Hires by Gender and Age Group

Male % 54.1 55.7 57.8

Gender

Female % 45.9 44.3 42.2

30 and below % 27.9 34.1 36.7

Age 31-49 % 70.5 62.8 58.5

50 and above % 1.6 3.1 4.8

Years Employed by the Company

Average Years Employed by the Company for Male Employees Year/Person 8.2 7.4 8.5

Average Years Employed by the Company for Female Employees Year/Person 6.4 6.3 6.7

Group’s Turnover Rate14

Overall Employee Turnover Rate % 12 12 10

Including: Active Employee Turnover Rate % 12 12 10

Employee Turnover Rate by Gender Age Group

Male % 10 11 10

Gender

Female % 11 14 10

30 and below % 13 16 14

Age 31-49 % 9 10 7

50 and above % 6 4 3

Employee Engagement Survey

Employee Engagement % 87 90 90

14 In order to better demonstrate the Group’s human resource management and ensure the consistency of the calculation of internal management

and 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.

146Sustainability indicator Unit 2022 2023 2024

2.2 Health and Safety

Number of Work-related Injuries

Number of Work-related Fatalities Person 0 0 0

Days Lost due to Work-related Injuries Day 214 98 781.5

Number of Injuries/

Lost-Time Injury Frequency Rate (LTIFR) 0.25 0.16 0.37

Million Hours Worked

Number of Work-related Fatalities for Contractors Person 0 0 0

Days Lost due to Work-related Injuries - Contractors Day 0 0 0

Number of Injuries/

Lost-Time Injury Frequency Rate (LTIFR) - Contractors 0 0 0

Million Hours ofWorks

2.3 Training and Development

Total Training Percentage for Employees % / 100 99

Total Training Hours for Employees Hour 895409 975834 1345002

Training Hours for Male Employees Hour 474502 531945 728915

Training Hours for Female Employees Hour 420908 443889 616087

Average Training Hours per Employee Hour/Person 63.4 67.9 94.7

Average Training Hours per Employee by Gender and Age Group

Male Hour/Person 63.0 68.3 95.4

Gender

Female Hour/Person 63.9 67.5 93.8

30 and below Hour/Person 63.3 85.2 123.7

Age 31-49 Hour/Person 63.7 58.5 79.1

50 and above Hour/Person 61.6 63.5 91.9

Average Training Hours of Employees in Management Training Hour/Person / 19.0 19.6

Average Training Hours of Employees in Leadership Training Hour/Person / 27.3 23.1

Percentage of Successful Succession/Promotion to Management

%/14.515.2

Positions

Average Amount Spent per Employee on Training RMB/Person 323.7 406.9 336.2

1472024 Sustainability Report 11 Appendix

Sustainability indicator Unit 2022 2023 2024

2.4 Product Responsibility

Percentage of Total Products Sold or Shipped Subject to Recalls for Safety and Health Reasons

Percentage of Such Products to Total Products Sold /Shipped % 0 0 0

Number of Products and Service Related Complaints Received

Product-related Complaints Time 92 147 108

Medication Queries15 Time 20 17 5221

2.5 Business Ethics

Number of Brought and Concluded Legal Cases Regarding Corrupt

Case 0 0 0

Practices

Number of Breaches on Conflicts of Interest Case 0 0 0

Number of Breaches on Money Lanudering or Insider trading Case 0 0 0

Number of Breaches on Customer Privacy Data Case 0 0 0

Number of Breaches on Discrimination or Harassment Case 0 0 0

2.6 Public Welfare Projects

Financial Donation RMB 10000 569.9 1976.2 1195.7

Value of Donated Goods RMB 10000 641.8 622.3 208.6

Investment in Rural Revitalization RMB 10000 / 196.1 222.3

15 The purpose of medication querie is to ensure that patients can use medications safely and effectively while improving their satisfaction with

medication use and their quality of life. In 2024 the Group adjusted and optimized the statistical caliber for medication queries.

148