About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
About this Report 03 Appendix
Chairman's Statement 05 9.1 Index of the Guidelines No. 14 of Shanghai Stock Exchange for 153
About Us 07 Self-Regulation of Listed Companies—Sustainability Report (Trial)
9.2 Data List of Key Performance Indicators 155
9.3 Assurance Statement 163
01 Sustainability Management 13 03 Innovation-Driven 37 05 Supply Chain Security 73 07 Access to Healthcare 109
Development
1.1 Sustainability Governance 15 3.1 Governance 39 5.1 Supplier Admission Management 75 7.1 Improving Product Accessibility 111
1.2 Sustainability Strategy 16 3.2 Strategy 40 5.2 Supplier Classification and Risk Management 75 7.2 Improving Product Affordability 113
1.3 Impact Risk and Opportunity Management 19 3.3 Impact Risk and Opportunity Management 41 5.3 Supplier Audit and Evaluation 78 7.3 Improving Healthcare Standards 116
1.4 Supporting the United Nations Sustainable 22 3.4 Metrics and Targets 41 5.4 Supplier ESG Management 80 7.4 Promoting Industry Development 122
Development Goals 3.5 Our Management Practices 43 5.5 Supplier Capability Building 82 7.5 Rural Revitalization 123
7.6 Social Contributions 124
02 Corporate Governance 25 04 Product and Service Safety 51 06 Employees 83 08 Green Operations 125
& Quality
2.1 Standardized Governance 27 4.1 Governance 53 6.1 Employee Rights and Interests 85 8.1 Environmental Compliance Management 127
2.2 Carrying Forward the Party-Masses Spirit 30 4.2 Strategy 55 6.2 Talent Management 89 8.2 Addressing Climate Change 131
2.3 Business Conduct 31 4.3 Impact Risk and Opportunity Management 56 6.3 Occupational Health and Safety 99 8.3 Energy Utilization 141
2.4 Data Security and Customer Privacy Protection 36 4.4 Metrics and Targets 56 8.4 Pollutant Emission 144
4.5 Our Management Practices 57 8.5 Waste Management 148
8.6 Water Resource Utilization 150
8.7 Circular Economy 151
8.8 Ecosystem and Biodiversity Protection 152
01 2025 Sustainability Report 02About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
About this Report
Overview Full Name Abbreviation
Livzon Group Limin Pharmaceutical Manufacturing Factory Livzon Limin
The Joincare 2025 Sustainability Report (hereinafter referred to as "this Report") is the ninth sustainability report issued by Zhuhai Livzon Diagnostics Inc. Livzon Diagnostics
Joincare Pharmaceutical Group Industry Co. Ltd. (reports from 2017-2023 were titled Corporate Social Responsibility Reports). It
aims to provide stakeholders with a comprehensive overview of the Group's commitments initiatives and performance in social LivzonBio Inc. LivzonBio
responsibility environmental sustainability management and corporate governance from a more professional perspective. Zhuhai Livzon Microsphere Technology Co. Ltd. Livzon Microsphere
Livzon Group Xinbeijiang Pharmaceutical Manufacturing Inc. Livzon Xinbeijiang
The report covers the period from 1 January 2025 to 31 December 2025. 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. Gutian Fuxing Pharmaceutical Co. Ltd. Gutian Fuxing
Jiaozuo Livzon Hecheng Pharmaceutical Manufacturing Co. Ltd. Jiaozuo Hecheng
Scope of the Report Livzon Group Ningxia Pharmaceutical Manufacturing Co. Ltd. Ningxia Pharmaceutical
Zhuhai FTZ Livzon Hecheng Pharmaceutical Manufacturing Co. Ltd. Livzon Hecheng
The report covers Joincare and its wholly-owned subsidiaries and holding subsidiaries which is consistent with the scope of the Livzon Group Fuzhou Fuxing Pharmaceutical Co. Ltd. Fuzhou Fuxing
consolidated financial statements in the annual report.Reporting Basis Data Sources and Reliability Statement
The Report is prepared primarily in accordance with the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Data and cases disclosed in this report are derived from official documents statistical reports relevant public information and internal
Companies—Sustainability Report (Trial) and the Basic Rules for Corporate Sustainability Disclosure (Trial) while also referencing the reporting documents. Joincare guarantees that this report does not contain any false representation or misleading statement and
Environmental Social and Governance Reporting Code issued by the Hong Kong Stock Exchange (HKEX). assumes liability for the authenticity accuracy and completeness of this report.The content of the Report is compiled through a systematic process to ensure its integrity materiality authenticity and balance. The
specific process includes identifying key stakeholders identifying and prioritizing material issues determining the reporting boundaries Confirmation and Approval
collecting relevant materials and data reviewing the data and compiling the Report based on the gathered information.The Report has been confirmed by the management and was reviewed and approved by the Board of Directors on April 24 2026.Definitions
Access and Response
For ease of expression and reading unless otherwise specified terms such as "Joincare" "the Group" or "we" in this Report refer
to Joincare Pharmaceutical Group Industry Co. Ltd. and its wholly-owned and holding subsidiaries. This Report involves multiple This report can be accessed or downloaded from the official website of the Shanghai Stock Exchange (www.sse.com.cn) and our
subsidiaries of Joincare. For brevity their abbreviations are used as follows: 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).Full Name Abbreviation
Shenzhen Haibin Pharmaceutical Co. Ltd. Haibin Pharma Legal Statement
Xinxiang Haibin Pharmaceutical Co. Ltd. Xinxiang Haibin
This report contains forward-looking statements regarding Joincare's future sustainability strategy objectives and plans. These
Shenzhen Taitai Pharmaceutical Co. Ltd. Taitai Pharmaceutical statements are grounded in the Group's current judgments and expectations. However the actual outcomes may vary owing to
Jiaozuo Joincare Bio Technological Co. Ltd. Jiaozuo Joincare significant uncertainties such as fluctuations in the market environment changes in policies and technological advancements.Joincare Haibin Pharmaceutical Co. Ltd. Joincare Haibin The inclusion of a particular piece of information in this report should not be construed as a characterization of the significance
Livzon Pharmaceutical Group Inc. Livzon Group 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
Sichuan Guangda Pharmaceutical Manufacturing Co. Ltd. Sichuan Guangda
Shanghai Stock Exchange (www.sse.com.cn).Shanghai Livzon Pharmaceutical Manufacturing Co. Ltd. Shanghai Livzon
Livzon Group Livzon Pharmaceutical Factory Livzon Pharmaceutical Factory 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.
03 2025 Sustainability Report 04About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
Chairman's Statement
Dear stakeholders and all friends who follow and support Joincare
2025 marks a pivotal year for Joincare as we comprehensively deepen our strategy of "innovation-driven and AI-empowered"
development and it is a significant milestone in our unwavering commitment to integrating sustainability into our corporate growth. The Group actively practices its core value of "people-oriented" committed to comprehensively safeguarding employees' legitimate
Facing industry trends such as the continuous growth of the pharmaceutical market AI technology leading transformation and rights and interests and actively creating a diverse equal and inclusive working environment. We prioritize listening to employees'
increasingly diversified patient needs we uphold our mission of "For the Health For the Future." We persist in R&D innovation voices and responding to their concerns. We continuously optimize promotion mechanisms steadily improve our salary and welfare
focus on clinical demands diligently implement energy conservation and emission reduction and contribute to the "Healthy China system support employee growth strengthen talent retention and share the fruits of corporate development with all employees.Initiative" and the "Dual Carbon Strategy." Concurrently we attach great importance to occupational health and safety management vigorously protecting employee health
and safety to achieve the goal of "zero safety accidents."
This year we achieved outstanding results in multiple Environmental Social and Governance (ESG) ratings successfully selected
for the S&P Global Sustainability Yearbook 2026 (Global Edition) and receiving a "B" rating in CDP's Climate Change Questionnaire Quality Assurance Responsibility for the Future
demonstrating widespread recognition of the Group's sustainability achievements. The Group places high importance on product quality and safety having established a full lifecycle quality management system
covering key aspects such as R&D production operations pharmacovigilance product recalls and quality audits. Within the year
Innovation-Driven AI-Empowered
we initially established a quality management system covering the entire clinical trial process and continuously strengthened
The Group regards R&D innovation as the core driving force for fostering new productive drivers deeply cultivating key therapeutic production quality management. As of the end of the Reporting Period the production lines and related products of the Group and
areas such as respiratory pain management digestive assisted reproduction and mental health diseases. We continuously its subsidiaries all comply with Good Manufacturing Practice (GMP) of Medical Products and the Group headquarters and several
expand our product lines in advantageous areas and our innovative drug R&D pipeline. In 2025 several of our innovative drug production subsidiaries have passed quality management system certifications. Concurrently we continue to promote responsible
projects achieved significant breakthroughs: the new influenza drug Pixavir Marboxil Capsules ( 壹 立 康 ) and the improved new marketing practices having newly established a Compliance Department dedicated to supervising and regulating sales behavior to
drug Aripiprazole Microsphere for Injection from Joincare's controlling subsidiary Livzon Microsphere were approved for market ensure the legality and compliance of marketing activities.launch. Multiple innovative drugs for chronic obstructive pulmonary disease (COPD) treatment under development such as
TSLP monoclonal antibody injection entered Phase III clinical trials PREP inhibitors and MABA Inhalation Solution successfully The Group unswervingly fulfills its corporate citizenship responsibilities adhering to the environmental management policy of
entered Phase II clinical trials and several Class 1 innovative drugs also made phased progress. Concurrently we continue to "pollution prevention compliance with regulations and continuous improvement." We continuously strengthen energy water
promote overseas access product registration and promotion of products such as inhaled preparations assisted reproduction resources and emissions management and follow the "3R" principle of Reduce Reuse Recycle deeply practicing the concept of a
gastrointestinal and anti-infectives steadily advancing our internationalization strategy. circular economy and comprehensively promoting the construction of a resource recycling system. We also align with international
trends strengthening climate risk management and response while striving to seize green development opportunities brought
The Group is committed to deeply exploring the application potential of artificial intelligence technology. Within the year we by climate change committed to reducing the impact of climate change on corporate operations. In terms of social responsibility
deployed AI models in R&D to systematically integrate AI technology into the entire process from early exploration to preclinical we have built an online and offline respiratory disease science popularization network effectively enhancing public awareness of
research. In production AI technology is applied to predict production rhythms and optimize resource allocation decisions chronic diseases such as asthma and COPD and actively carrying out rural assistance and community volunteer activities serving
accurately achieving advance stocking and enhancing supply stability. On the client side we have created AI intelligent agents for society to the best of our ability.prescription drugs which identify health risks through AI models and have already served nearly 100000 patients.Looking ahead to 2026 Joincare will continue to uphold its core values of "Putting people first Valuing workmanship and quality
Synergistic Supply Chain Value Co-creation Pursuing innovation and truth Promoting cooperation and sharing." We will safeguard life and health through innovation give back
to society's expectations with responsibility and fulfill our sustainability commitments through action working hand in hand with all
Adhering to the principles of integrity mutual trust and win-win cooperation the Group systematically conducts supplier tiered parties to create a sustainable future.management and risk control. We incorporate Environmental Social and Governance (ESG) impacts and business relevance
into supplier evaluations clearly defining ESG requirements for suppliers in the "Supplier Code of Conduct." Through training
communication and collaboration we support supplier capacity building through multiple channels working together to build a
safe stable and sustainable supply chain.Chairman: Zhu Baoguo
April 24 2026
05 2025 Sustainability Report 06About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
About Us
APIs and Intermediates
Group Overview Human Use: 7-ACA Meropenem Trihydrate Daptomycin Dalbavancin Vancomycin Mevastatin Acarbose Mycophenolic Acid
Veterinary Use: Milbemycin Oxime and Moxidectin
Joincare has deep roots in the pharmaceutical and healthcare sector having established a full-industry-chain business portfolio
encompassing chemical pharmaceuticals and Active Pharmaceutical Ingredients (API) traditional Chinese medicine biologics
diagnostic reagents and healthcare products. Traditional Chinese Medicine
The Group has accumulated solid R&D capabilities across all major core business segments and adheres to an international R&D Antineoplastic Drugs Cold & Flu Medications
vision. In recent years we have unswervingly implemented the core strategy of "innovation-driven" focusing on therapeutic
areas with urgent clinical needs such as respiratory pain management digestive assisted reproduction and mental health
diseases building an efficient and promising R&D pipeline. With the transformation and implementation of relevant innovative Shenqi Fuzheng Injection Anti-viral Granules
achievements the Group's product structure and business layout continue to optimize supporting the steady enhancement of core
competitiveness.Diagnostic Reagents and Devices
Group's Main Representative Products
Chemical Pharmaceuticals Mycoplasma pneumoniae IgM Antinuclear Antibody Test Kit
Antibody Detection Reagent (Magnetic Bar Code Immunofluo-
(Colloidal Gold Method) rescent Luminescence Method)
Respiratory
健可妥 (Tobramycin Inhalation
壹立康 (Pixavir Marboxil Capsules)
Solution) Biological Products
Gastroenterology Gonadotropin
丽康乐 (Mouse Nerve Growth
Atvtia (Tocilizumab Injection)
壹丽安 (Ilaprazole Enteric-coated 贝依 (Leuprorelin Acetate Factor for Injection)Tablets) Microspheres for Injection）
壹丽安 (Ilaprazole Sodium for 丽申宝 (Urofollitropin for
Injection) Injection) Health Care Products and Over-the-Counter Drugs (OTC)
Psychiatry Anti-infection
阿丽唯 (Aripiprazole Microspheres Jingxin Oral Liquid Eagle's American Ginseng Tea
倍能 (Meropenem for Injection)
for Injection)
瑞必乐 (Fluvoxamine Maleate 丽福康 (Voriconazole for
Tablets) Injection) Taitai Honghua Taoren Oral Liquid Yike Tie
07 2025 Sustainability Report 08About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
Organizational Structure Key Performance
Strategy and Risk Management
Committee
During the Reporting Period Joincare achieved operating revenue of RMB15.216 billion; net profit attributable to shareholders
of the listed company was RMB1.336 billion; and net profit attributable to shareholders of the listed company after deducting
Shareholders' Meeting Remuneration Committee non-recurring gains and losses was RMB 1.307 billion.Concurrently the Group actively undertakes social responsibilities and continuously creates value for society. In 2025 Joincare
Board of Directors Office Board of Directors Nomination Committee generated RMB 1.815 billion in tax revenue for the government paid RMB 2.503 billion in employee salaries distributed
dividends and paid interest to creditors such as banks totaling RMB 1.083 billion and donated funds and goods to society
totaling RMB 38.4108 million.CEO Sustainability Committee
Total revenues Net profits attributable to Tax contributions
Audit Committee shareholders of the listed company
RMB 15.216 billion RMB 1.336 billion RMB 1.815 billion
Financial Integrated R&D Production Sales Risk Salary paid to employees Donated funds and goods
Management Management Management Management Management Management RMB 2.503 billion RMB 38.4108 million
Center Center Center Center Center Department
Corporate Culture
Since its establishment in 1992 Joincare has consistently focused on the grand health sector staying true to its original aspirations
amidst continuous inheritance and innovation gradually forming its corporate mission of "For the Health For the Future." Over
the years we have prioritized patient interests centered on safeguarding human life and health taken technological innovation
as our strategic cornerstone adhered to an innovation-driven development strategy meticulously crafted the corporate vision of
"Dedicating Ourselves to Producing Quality and Innovative Medicines" and actively and continuously contributed to building a
community with a shared future for mankind. While focusing on our own business we uphold the core values of "Putting people
first Valuing workmanship and quality Pursuing innovation and truth Promoting cooperation and sharing" emphasizing product
quality talent cultivation and the enhancement of our R&D capabilities. We consistently advocate for the coexistence of humanistic
and scientific spirits actively undertaking obligations and responsibilities for the development of human health.Mission Vision Core Values
For the Health For the Future Diligently make high-quality drugs Putting people first
and innovative drugs Valuing workmanship and quality
Pursuing innovation and truth
Promoting cooperation and sharing
09 2025 Sustainability Report 10About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
Honors
March 2025 November 2025
2025 Greater Bay Area Listed Company Board
Guangdong Pharmaceutical Industry Best Practice in Listed Company Board of
Sustainability Yearbook 2025 (Global Edition) Governance TOP 20
Association — Council Member Unit Directors
S&P Global Shenzhen Corporate Governance Research
Guangdong Pharmaceutical Industry Association China Listed Companies Association
Association
May 2025 20th China Economic Forum & 2025 Greater Bay Area Science Technology and Financial Innovation
Development Conference — Selected Capital Innovation Case in the "14th Five-Year Plan" Financial Innovation
Guangdong Key Trademark Protection List — Guangdong Key Trademark Protection List — Outstanding Cases
Jingxin Taitai Securities Times
Trademark Protection Committee Guangdong Trademark Protection Committee Guangdong
Trademark Association Trademark Association December 2025
Guangdong Key Trademark Protection List —
Eagle Brand
2025 Best Practice in Listed Company Board of
Trademark Protection Committee Guangdong 2025 Yidong "Value 100" Directors Office
Trademark Association Yidong & Value Online
China Listed Companies Association
July 2025 September 2025 19th China Listed Company Value Selection — Top 50 New Quality Productive Forces Award
Securities Times
Top 100 Pharmaceutical Industrial Enterprises 2024 Advanced Enterprise in Pharmaceutical
in China 2024 — Ranked 86th Industry Statistics
Ministry of Industry and Information Technology Guangdong Pharmaceutical Industry Association
February 2026
October 2025
Sustainability Yearbook 2026 (Global Edition)
2025 Top 100 Private Enterprises in 2025 Top 100 Private Manufacturing S&P Global
Guangdong — Ranked 86th Enterprises in Guangdong — Ranked 51st
Guangdong Federation of Enterprises & Guangdong Guangdong Federation of Enterprises & Guangdong
Entrepreneurs Association Entrepreneurs Association
2024 Technology Innovation Leading Enterprise ESG Rating Performance
CNR.cn
November 2025 ESG Ratings Rating Results
2024 Listed Company Reputation Rankings — 2025 S&P Global Corporate Sustainability Assessment (CSA) Scored 72
2025 Best Practice Case for Sustainable
Most Growth-Oriented Listed Company in the
Development of Listed Companies CDP Climate Change Questionnaire B
Health Sector
China Listed Companies Association
Daily Economic News Wind ESG Ratings AA
CSI ESG Ratings AA
SNSI ESG Ratings AA
11 2025 Sustainability Report 12About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
PART
01
Sustainability Management
Joincare firmly believes that practicing sustainability is of great
significance to the Group's development. We focus on four
dimensions: governance strategy impact risk and opportunity
management and metrics and targets to build an effective
sustainability governance framework improve the identification
assessment and management processes for sustainable
development-related risks and opportunities and deeply integrate
sustainability indicators and goals into daily business operations
management thereby laying a solid foundation for achieving long-
term high-quality development.
13 2025 Sustainability Report 14About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
1.1 Sustainability Governance 1.2 Sustainability Strategy
An effective sustainability governance system is a key support for Joincare to implement its sustainability strategy and achieve its Joincare is committed to contributing to social development. With innovation as its driving force the company has long been deeply
sustainability goals. The Group has established a multi-tiered sustainability governance framework comprising the Board of Directors engaged in the healthcare industry and actively contributes to the Healthy China initiative working with all stakeholders to build
the Board's Sustainability Committee and the executive-level Sustainability Working Group. We continuously implement the Joincare a greener better future of high-quality development. We deeply integrate sustainability into the Group's development strategy
Sustainable Development Management System clarify management responsibilities and scope of work at all levels and standardize formulate and implement strategies with health at the core steadily advance various tasks and are committed to providing society
the division of labor among various functional departments. By building an effective governance framework improving information with high-quality safe accessible and affordable medical products and services that effectively address clinical needs. Concurrently
disclosure and data management and strengthening ESG risk assessment and management we better integrate sustainable we pay close attention to the expectations of internal and external stakeholders continuously optimize sustainability management
development-related impacts risks and opportunities into consideration during corporate strategy implementation major empower employee growth internally and actively undertake environmental responsibilities and engage in public welfare externally
transaction decisions and risk management processes. contributing to social harmony and progress.Joincare Sustainability Management Structure and Responsibilities 1.2.1 Communication with Stakeholders
The Board of Directors is the highest decision-making body responsible for making decisions on all major
Board of sustainable development-related matters and overseeing sustainable development-related impacts The Group highly values feedback from our stakeholders. We have established regular and diversified communication mechanisms
Directors risks and opportunities. to continuously strengthen our engagement with them. Through a variety of accessible channels we stay informed of the issues
that concern our stakeholders and proactively respond to their expectations. By fostering constructive interactions we aim to create
The Sustainability Committee consists of three directors (including one independent director) with the sustainable long-term value for all stakeholders.Chairman serving as the committee chair. The three members of the Sustainability Committee each
possess extensive experience in pharmaceutical industry corporate management green production
supply chain management and financial compliance and risk management. Issues of Concerns to and Communication Methods with Stakeholders
Board-level
Sustainability The Sustainability Committee is responsible for identifying and managing sustainability-related impacts Stakeholders Issues of Concern Communication Methods
Committee risks and opportunities formulating and improving the Group's major ESG policies guiding the business Workers Congress and labor Union
practices of various departments and subsidiaries and regularly reporting the implementation of ESG Employees' satisfaction survey occupational health
policies and action plans as well as the achievement of performance targets to the Board of Directors Employees Employee and safety training
annually forming a closed-loop management of concepts goals strategies and business practices. Platforms for feedback Daily communication
Shareholders' meeting
Regular releases of business information and data
Under the Sustainability Committee an executive-level Sustainability Committee has been established with Corporate Governance & Risk Management Telephone fax email
the Group President serving as the leader responsible for overall oversight of ESG-related issues and other Investors Innovation-Driven Development Investor's survey platforms for interactive
senior executives serving as deputy leaders to assist in supervision. The committee members include core communication and exchange and external roadshows
personnel from the Group's relevant businesses and important functional areas possessing professional WeChat official account
knowledge skills and extensive experience enabling them to efficiently advance ESG-related work and Product labelling and information disclosure
implement risk control measures under the guidance of the Board-level Sustainability Committee. Product and Service Safety & Quality
Consumers Regular visits consumers' satisfaction surveyExecutive-level Circular Economy
The executive-level Sustainability Committee is primarily responsible for tracking and coordinating the Handling of complaints and opinions
Sustainability
implementation of various specific ESG tasks by departments at the Group headquarters and its subsidiaries Regular communicationCommittee Distributors suppliers and Product and Service Safety & Qualityregularly organizing internal discussions and meetings and reviewing and discussing existing ESG policies for partners
Working meetings and exchanges via telephone and corre-
Supply Chain Security
improvement. spondence company's website
Government-enterprise symposiumsThe Group has incorporated key ESG indicators into the annual individual performance appraisal system for Product and Service Safety & QualityGovernment and Supervision and inspection
all members of the executive-level Sustainability Committee (including senior management) strengthening Pollutant Emissionsregulators Work reports and surveys
management's accountability for sustainability goals through a remuneration linkage mechanism. Waste Management On-site inspection
Company's website and WeChat official accountInnovation-Driven Development
Media Interactive communication platforms special reports exter-
Furthermore to enhance the Group's sustainability management level we closely monitor cutting-edge sustainability trends Corporate Governance & Risk Management nal roadshows
actively seize sustainability hotspots and opportunities in the capital market and promptly grasp the latest requirements Pharmaceutical industry Innovation-Driven Development Industry organization meetings experience sharing sessions
from regulatory bodies regarding sustainability. We organize annual training sessions related to sustainability management associations/organizations Intellectual Property Rights Protection site visits
to strengthen management's awareness of sustainability across the Group understand and learn excellent sustainability Access to Healthcare Volunteering activities
management practices thereby improving our sustainability management performance. Community/The public Social Contribution Money and medicine donation medicine knowledge publicity
15 2025 Sustainability Report 16About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
1.2.2 Due Diligence
Joincare's Matrix of Material Issues in 2025
The Group has successively conducted due diligence on sustainable development-related negative impacts and risks for various Highly Impact Material Issues Moderately Impact Material Issues Generally Impact Material Issues
topics clarifying relevant responsible parties and investigation scope. Through established procedures we identify potential related
risks and negative impacts and take corresponding countermeasures based on actual conditions to ensure effective control of 1
relevant risks. This year led by the Group's Human Resources Department we continued to conduct annual human rights due 2
diligence covering all Group employees and significant suppliers. For details please refer to Section "6.1.2 Protection of Human
3
Rights" in this Report.
5
64
1.2.3 Materiality Assessment
11
8
The Group has integrated the annual materiality assessment into its enterprise risk management process. We apply the principle 79
of double materiality conducting materiality assessments or reviewing analysis results annually through desktop research expert 1016
reviews and other methods. We regularly invite internal and external stakeholders to participate in surveys to fully identify and assess 17
19151312
the impact materiality and financial materiality of each issue and respond to each issue in focus in the annual sustainability report. 18 14
20
Our materiality assessment process has been verified by the third-party assurance provider and the main steps are listed below:
21
22
01 Issue Identification 02 23Research on issues
Based on the 21 issues set in the Guidelines No. 14 of We designed questionnaires for "Impact Materiality Financial Materiality
Shanghai Stock Exchange for Self-Regulation of Listed Assessment" and "Financial Materiality Assessment" and
Companies—Sustainability Report (Trial) and in com- invited various stakeholders to participate in the research
bination with the characteristics of the pharmaceutical in 2024&2025. The research subjects cover the company's
Highly Impact Material Issues Moderately Impact Material Issues Generally Impact Material Issues
industry the industry's development stage the Group's directors supervisors and senior management internal
own business model and value chain etc. 23 material is- employees suppliers investors consumers government
1 Product and Service Safety & 4 Intellectual Property Rights 11 Access to Healthcare 18 Circular Economy
sues with the Group's business characteristics have been and regulators and so on.
1 2 Quality Protection 12 Waste Management 19 Rural Revitalizationformulated .
3 Innovation-Driven Development 5 Employees 13 Pollutant Emissions 20 Water Utilization
Climate Change Response 6 Protection of Data Security and 14 Stakeholder Communication 21 Technology Ethics
03 Customer Privacy
15 Environmental Compliance 22 Ecosystem and Biodiversity
Assessment of issues 04 Review of issues 7 Corporate Governance & Risk Management Protection
Management 16 Social Contribution 23 Due Diligence
8 Anti-Bribery and Anti-Corruption 17 Energy Utilization
Based on adjusted issue list taking into account both peer According to the results of materiality assessment a matrix 9 Anti-Unfair Competition
benchmarking and the results of stakeholder surveys we of material issues and the focus areas of the report in 2025
10 Supply Chain Security
conduct an assessment and analysis from two dimensions: are determined. The results of materiality assessment are
the materiality of the issues' impacts on the economy submitted to management and disclosed in the report
society and the environment and the materiality of the after review by management and approval by the Board of Based on the assessment the three issues of product and service safety & quality innovation-driven development and climate
issues to the company's finances. Issues with impact Directors. change response have been identified as financial material. We further identify related risks and opportunities assessing the
materiality and financial materiality were identified potential impact of these risks and opportunities on the company's strategy decisions financial position operating results cash
respectively. flow and other factors in the short term (0-3 years) medium term (4-10 years) and long term (over 10 years)2. Concurrently in the
corresponding chapters of this report we will disclose the methods adopted and plans formulated by the Group to address risks and
opportunities related to each issue as well as the measures and actions taken by the Group to monitor prevent manage control
and mitigate relevant impacts.
1 As Joincare is not among the mandatory disclosure entities specified under Article 46 of the Guidelines No. 14 of Shanghai Stock Exchange for 2 Taking into account both its internal sustainability roadmap and the broader external policy environment Joincare defines its time horizons
Self-Regulation of Listed Companies—Sustainability Report (Trial) the issue of equal treatment of small and medium-sized enterprises (SMEs) as short-term (0–3 years) medium-term (4–10 years) and long-term (over 10 years) with these definitions aligned with the Company's
has not been included in our materiality issues list. strategic planning and resource allocation plans.
17 2025 Sustainability Report 18
Impact MaterialityAbout this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
1.3 Impact Risk and Opportunity Management
Joincare has integrated the sustainability-related impact risk and opportunity management process into the internal Joincare Risk Management Process
management process forming a closed-loop mechanism spanning identification assessment prioritization control and
monitoring. In this way we ensure effective implementation and continuous advancement of sustainability goals.Risk Identification Risk Assessment Risk Control Risk Monitoring
1.3.1 Comprehensive Risk Management Establish risk identification Utilize a combination of Set management objectives Establish internal supervision
standards and identify qualitative and quantitative and monitoring indicators and reporting mechanisms
The Group has established a well-developed risk management system. It has formulated and implemented the Comprehensive potential risks affecting methods to assess and for significant risks and regularly monitor the
Risk Management System and established and improved the "Three Lines of Defense" framework for risk management the Group's business analyze the conditions for formulate and implement achievement of objectives;
and internal control to regulate risk assessment and management process. We also set overall risk management goals to operations and financials risk formation potential risk response plans and evaluate the effectiveness of
improve overall risk prevention and control. The Board of Directors as the highest decision-making body in comprehensive based on information magnitude (high/medium/ mitigation measures. Fully risk management processes
risk management takes charge of supervising risk management practices. The Strategy and Risk Management Committee collected daily. low) likelihood of incorporate identified through internal and external
takes charge of reviewing the effectiveness of overall risk identification assessment internal management and monitoring occurrence (high/medium/ risk criteria during the audits and continuously
procedures. The management as the execution body takes charge of the effectiveness of comprehensive risk management low) and prioritize risks. development of new improve the risk management
to the Board of Directors. All functional departments play their roles in supporting the implementation of risk management products and services. system.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.Based on the above risk management process this year we identified the following two risks and formulated corresponding
Joincare's "Three Lines of Defense" Management Framework mitigation actions:
03
Responsible for the supervision of the establishment and implementation Risk Description Impact Assessment Mitigation Actions
of risk control the authenticity and integrity of financial information Strengthen project initiation norms and risk
R&D Risk: High investment high risk and
integrity and anti-corruption etc. The Internal Control Department directly Potential Magnitude: prevention and control establish a full-process
long cycle for new drug R&D increased
Third Line reports to the Audit Committee of the Board and is independent from any High risk management system for projects; improve
listing review requirements in recent
Internal Control departments of the Company. the R&D innovation system introduce high-
years; post-market promotion affected Likelihood of
Department
02 end talents and carry out overseas cooperation by regulations policies market and Occurrence: Medium and introduction; pay attention to emerging
competition potentially leading to lower-
Mainly responsible for risk prevention and control during the pre- technologies and unmet clinical needs and than-expected revenue.incident and ongoing phases as well as risk handling in the post- proactively deploy frontier research.Second Line
Risk Management Department incident phase. The Risk Management Department directly reports to Quality Control Risk: The quality of Improve the comprehensive quality
the Strategy and Risk Management Committee of the Board. pharmaceutical products concerns life and management system establish an information
01 health regulation is becoming increasingly Potential Magnitude: system and full-process SOPs; strengthen
First Line stringent and drug production involves High new product process engineering control
Each of the subsidiaries and Mainly responsible for the daily work of risk identification and numerous links such as raw materials and risk management; promote the excellent
department assessment risk prevention and control and internal control processes equipment environment
Likelihood of performance management model introduce
within the scope of its business responsibilities. storage and transportation placing Occurrence: Low international advanced concepts and
significant responsibility on manufacturing enhance the international level of the quality
enterprises. management system.We formulate effective risk management processes committed to minimizing the impact of adverse factors and ensuring
the Group's stable and high-quality development. We continuously collect information identify internal and external risks of
the company formulate comprehensive risk management strategies implement risk response measures and monitor and Furthermore we insist on providing specialized risk management training and the latest compliance guidelines to all directors
warn against risks. We regularly conduct risk reports supervise and evaluate the implementation and effectiveness of risk (including independent and non-independent directors) annually to continuously strengthen the Board's risk management
management and improve identified issues. Annually we review the company's risk exposures conduct internal control capabilities with a training coverage rate of 100% in 2025. The Group also conducts diverse risk management training for
evaluations for financial and non-financial risks in the company's main businesses and high-risk areas and when necessary all employees through online thematic courses offline lectures and other forms to fully disseminate the Group's risk
engage independent third-party institutions to conduct external risk audits. Risk management implementation and audit management systems processes and principles to employees comprehensively enhancing their risk awareness and response
results will be incorporated into the performance appraisals of managers and employees at all levels. capabilities.
19 2025 Sustainability Report 20About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
1.3.2 Emerging Risks 1.4 Supporting the United Nations Sustainable
Development Goals
The Group has identified and assessed emerging risks in social and environmental aspects that may affect the Group's long-
term future development and has taken effective actions during operations to prevent and mitigate relevant risks. As a responsible corporate citizen the Group continuously improves its sustainable development management system and
actively engages in various fields such as pharmaceutical innovation access to healthcare environmental protection and rural
revitalization fully supporting the achievement of the United Nations Sustainable Development Goals (SDGs) through concrete
actions.Emerging Risk Impacts Mitigating Actions
SDG1: Section: Access to Healthcare
No Poverty
Geopolitical Risks The United States is one of China's Actively explore multiple
Examples of Our Actions
Global geopolitical tensions important export markets for
international markets to reduce
pharmaceutical products. Changes reliance on a single market;
will significantly impact the End poverty in all its forms
We carried on the long-term "Access to Public Welfare for Chronic Diseases Prevention and
in trade policies may lead to
international layout of the Establish overseas factories to everywhere
Treatment Program" to donate drugs to patients with financial difficulties in remote areas who
restricted access to overseas markets
pharmaceutical industry. In April enhance overseas production
suffer from chronic diseases.affecting pharmaceutical companies' capacity;
2025 the U.S. Department of internationalization strategies and We promoted the development of standardized cultivation bases for traditional Chinese
Commerce initiated a national overseas business revenue; Formulate a backup supplier medicinal herbs in rural regions to boost local economic growth via industrial support.security investigation into imported system setting up alternative
Due to the highly globalized supply
pharmaceuticals under Section 232 suppliers for raw and auxiliary chain of the pharmaceutical industry
of the Trade Expansion Act covering materials key consumables and SDG3: Section: Innovation-driven Development Access to Healthcareinternational market uncertainties may
finished drugs generic drugs other materials to ensure stable Good Health and also lead to supply chain disruptions supply;
active pharmaceutical ingredients Well-beingand unstable raw material supply. Examples of Our Actions
(APIs) and key components posing Pharmaceutical companies may be Timely monitor changes in
international policies and prepare Ensure healthy lives and pro-
Focus on unsatisfied clinical needs and continuously expand the R&D pipeline of innovative
a direct challenge to the global unable to import key raw materials from
in advance. mote well-being for all at all drugs.business expansion of Chinese certain countries leading to production ages
pharmaceutical companies. interruptions. 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.We provided training for local healthcare workers in developing countries contributing to
AI Technology Application Risks Regulatory policy uncertainties may lead improving the quality and capacity of health services.In 2025 AI in pharmaceuticals to the inability to recover R&D resources
invested in the early stages; Establish communication transitioned from the concept mechanisms with major SDG4: Section: Employees
verification phase to the clinical Intellectual property ownership disputes regulatory bodies to clarify AI Quality Education
application phase with specific over AI algorithm-generated results are algorithm validation requirements Examples of Our Actions
regulatory requirements rapidly becoming increasingly prominent and and data submission standards; We cooperated with higher education institutions to deliver joint training programs and
being implemented. In July 2025 companies and AI technology providers Ensure inclusive and equitable provided students with traineeship positions.Cultivate and introduce
the European Commission and may have disagreements over benefit quality education and pro-
PIC/S simultaneously released the distribution;
professional talents in the AI mote lifelong learning oppor- We tailored position-specific development training programs according to the characteristics
field to enhance the company's tunities for all and business needs of different positions.draft of GMP Annex 22: Artificial Cross-border transfer of patient data is technological innovation
Intelligence indicating that the strictly restricted by privacy regulations We encourage continuing education and support employees to obtain academic degrees or capabilities and reduce reliance
application of AI technology in the in various countries and algorithmic bias professional certifications.on AI technology providers;
pharmaceutical industry will face may lead to deviations in drug efficacy for
dual compliance requirements specific populations;
Reasonably and efficiently utilize
medical big data and other SDG5: Section: Employees
from general regulations and The rapid popularization of AI technology resources to formulate more Gender Equality
GMP regulations in the future disrupts traditional business models and Examples of Our Actionstargeted R&D directions and
bringing new risks and challenges pharmaceutical companies that fail to market strategies. We set a diversity target of "no less than 49% female employees by 2032".to pharmaceutical companies' AI adapt in time will face a survival crisis due Achieve gender equality and We provided various material benefits and special care for female employees such as
management. to weakened competitiveness. empower all women and girls maternity leaves breastfeeding leaves and customized physical examination services.
21 2025 Sustainability Report 22About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
SDG6: Section: Green Operations 对应章节 SDG13: Section: Green Operations
Clean Water and Climate Action
Sanitation Examples of Our Actions Examples of Our Actions
By installing online wastewater monitoring equipment at the effluent outlets of major We developed the Climate Change Management System set out the Group's proce-
Ensure availability and sus- wastewater discharge plants and networking with regulatory authorities we monitored and Take urgent action to combat dures for identifying and assessing climate-related risks and opportunities as well as the
tainable management of water shared real-time discharge data of treated wastewater. climate change and its im- requirements for implementing and monitoring the response measures.and sanitation for all. pacts
Through improving wastewater treatment processes and upgrading wastewater treatment
We identified and assessed the climate-related risks and opportunities facing our
facilities we decreased wastewater discharge increased wastewater utilization and reduced
the concentration of pollutants in wastewater. business and determined response measures to improve the overall ability to manage
climate risks.SDG7: Section: Green Operations
Affordable and We set the 2030 carbon emission target.Clean Energy Examples of Our Actions
We took steady steps to develop the energy management system based on ISO 50001
Ensure access to affordable SDG15: Section: Green Operations
standards.reliable sustainable and mod- Life on Land
ern energy for all We took measures to improve energy use efficiency for energy conservation and emission Examples of Our Actions
reduction increased the investment in green production projects and strived to build a low- We strictly comply with the laws and regulations related to biodiversity conservation.carbon and energy-saving green production enterprise. Protect restore and promote We identified environmental risk factors and hidden hazards before building factories met
sustainable use of terrestrial the "ecological red lines" requirements and avoided operating in areas of high biodiversity
SDG8: Section: Employees Access to Healthcare ecosystems sustainably manage value such as those close to government-designated ecological reserves.Decent Work and forests combat desertification
Economic Growth Examples of Our Actions halt and reverse land degrada-
Promote sustained inclusive We have formulated the Code of Labor Employment and Ethical Conduct to specify
tion and halt biodiversity loss.and sustainable economic provisions on protecting labor rights as the prohibition on forced and child labor equal
growth full and productive remuneration etc. SDG16: Section: Corporate Governance Employees
employment and decent work We strengthened education and training on protecting human rights strictly reviewed the Peace Justice and
Strong Institutions Examples of Our Actionsfor all implementation of human right policies and actively took improvement actions.We issued Anti-Corruption and Anti-Commercial Bribery System and the Anti-Fraud System
Promote peaceful and inclusive
SDG10: Section: Employees Access to Healthcare strengthened audit and supervision and conducted training on business ethical standards.societies for sustainable de-
Reduced In- We require management employees and partners to comply with business ethics and
velopment provide access to
equalities Examples of Our Actions clearly implement the anti-corruption management responsibility.justice for all and build effective
We prohibited any forms of discrimination and prejudice defined an escalation process and
Reduce inequality within and accountable and inclusive insti- We have built a smooth and confidential grievance escalation and reporting procedures for
disciplinary actions.among countries tutions at all levels employees to enable them to promptly raise complaints or report violations of labor rights and
We adopted inter-country and intra-country equitable pricing policies based on product other grievances.affordability.We were deeply committed to the development of healthcare and actively involved in SDG17: Section: Supply Chain Security
capacity advancement initiatives for healthcare in developing countries. Partnerships for
the Goals Examples of Our Actions
SDG12: Section: Product and Service Safety & Quality Supply Chain Security Green Formulated and issued the Supplier Code of Conduct specifying the fundamental principles
Strengthen the means of
Responsible that suppliers are expected to follow regarding business ethics labor rights and human rights Operations implementation and revital-
Consumption and health and safety as well as environmental protection and green development.Production Examples of Our Actions
ize the global partnership for
Encouraged suppliers to enhance their capabilities supporting their comprehensive
We took product quality safety health environmental protection and other elements into sustainable development development through multiple channels such as training exchanges and collaboration.Ensure sustainable consump- account to minimize the negative impact that our products may have on the environment and
tion and production patterns. society in the whole product life cycle.We classified waste for treatment and actively promoted waste reduction recycling and
harmless disposal by introducing advanced environmental protection technology into
production upgrading original production technology and formulations and cooperating with
third parties.
23 2025 Sustainability Report 24About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
PART
02
Corporate Governance
Joincare adheres to the philosophy of compliant operation and steady development actively
practices corporate social responsibility and is committed to creating long-term social value. We
firmly uphold the bottom line of compliance insist on Party building leadership regulate various
business operations with integrity and self-discipline as the standard and resolutely eliminate
behaviors that violate business ethics such as commercial bribery and unfair competition.By continuously strengthening business ethics training and building a culture of integrity we
continuously solidify the foundation for the company's sustainable development safeguarding
the steady and long-term progress of our business.SDGs in this section
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2.1 Standardized Governance Members of the Board of Directors have backgrounds and expertise in pharmaceuticals corporate management finance accounting law and manufacturing possessing the professional knowledge and skills required to perform their duties
Joincare strictly abides by relevant laws regulations and supervisory requirements such as the Company Law of the People's and providing effective decision-making support for the Company's strategic planning with their diverse backgrounds and
Republic of China (PRC) the Securities Law of the PRC the Code of Corporate Governance for Listed Companies and the Rules perspectives.Governing the Listing of Stocks on the Shanghai Stock Exchange . We improve our internal management system continuously
enhance the quality of information disclosure actively interact with investors and effectively safeguard investors' rights and
interests. Expertise of the Board of DirectorsName of Direc-
tors
2.1.1 Protection of Shareholders' Rights and Interests Corporate Pharmaceuti- Legal Compli- Financial Risk Manage-Management cal Industry ance Management ment Sustainability
Joincare continuously improves its corporate governance mechanisms to protect shareholders' rights and interests. In 2025 Zhu Baoguo ? ? ?
Joincare revised several core systems including the Articles of Association and Rules of Procedure for Shareholders' Meetings Liu Guangxia ?
further clarifying the boundaries of powers and responsibilities for the Board of Directors and Shareholders' Meetings. It also
clarified the core powers of the Audit Committee in financial supervision review of related-party transactions and supervision of Lin Nanqi ? ? ?
the performance of duties by directors and senior executives. The entire process of convening holding and voting at Shareholders' Qiu Qingfeng ? ? ?
Meetings was standardized to ensure legal and compliant meeting procedures and fair and just voting results actively responding Xing Zhiwei ? ? ?
to new situations in the capital market and new regulatory requirements. To ensure that all shareholders especially small and
Qin Yezhi ?
medium shareholders can exercise their due right to know and participate in decision-making we utilize information technology
means such as online voting to provide shareholders with convenient and efficient ways to participate in company decisions. Peng Juan ?
Yin Xiaoxing ?
Concurrently Joincare consistently maintains the independence of its operations achieving complete independent operation
and accounting from its controlling shareholder and actual controller in key dimensions such as business operations personnel Shen Xiaoxu ? ?
allocation asset ownership organizational structure and financial management. The Group's controlling shareholder strictly Yang Ying ?
adheres to laws and regulations in exercising rights and fulfilling obligations and there are no instances of direct or indirect
interference in the Group's decision-making and business activities beyond the Shareholders' Meeting. We have established a long-
term mechanism to prevent controlling shareholders or actual controllers and other related parties from misappropriating funds The Company's directors and senior management actively engage in various training programs related to the standardized
of the listed company or infringing upon its interests having formulated the Policy for Preventing the Controlling Shareholder or operation of listed companies. These include specialized training sessions and forums professional courses on sustainability
the De Facto Controller and Other Related Parties from Occupying Company Funds ensuring the company's stable development internal training and reading regulatory newsletters and enforcement briefings on listing rules issued by the Stock Exchanges
through systematic management. 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.This year the Group has not experienced any disputes arising from the misappropriation of company assets or infringement of
the interests of the company and small and medium shareholders by controlling shareholders actual controllers or other related
parties nor has it received any relevant regulatory inquiries or penalties demonstrating significant achievements in protecting 2.1.3 Disclosure Transparency
shareholders' rights and interests
In strict accordance with relevant standards and guidelines of the China Securities Regulatory Commission (CSRC) and the
2.1.2 Performance of Duties of Directors 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
Joincare is committed to enhancing the governance of the Board of Directors by continuously optimizing its structure and of information disclosure strengthen voluntary information disclosure and make use of various channels such as the Group's
promoting the professionalism and diversity of Board members. We have formulated the Board Diversity Policy to ensure that official website media reports WeChat official account etc. to enhance the timeliness and transparency of information
the Nomination Committee selects Board members based on a series of professional criteria including educational background disclosure presenting the management status of the Group to investors in an all-round manner and effectively guaranteeing
professional experience skills expertise and tenure as well as diversified factors such as gender age nationality cultural that the majority of investors are able to obtain the relevant information in an equal prompt and accurate manner.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. In 2025 we filed and disclosed 171 documents in compliance with the information disclosure principle of authenticity
accuracy integrity timeliness and transparency with a total Chinese character count of 2.948 million. Our information
The number of members of the Board of Directors3 is ten (four independent directors included). There are four female directors disclosure has been highly recognized by regulators and capital market. In 2025 Joincare was again rated "A" (Excellent) in
accounting for 40% of the total. In 2025 the Company appointed an employee director further optimizing the Board structure and the information disclosure assessment over listed companies organized by the SSE. It's the fifth year in a sequence we got this
stakeholder governance mechanism. This strengthened the institutionalized channels for employee participation in corporate rating and has received the highest honor of the award of the "Best Practices of the Office of the Board of Directors" selection
governance effectively integrating employee voices into major corporate decision-making processes thereby enhancing held by the China Association for Public Companies (CAPCO) for two consecutive years.employee rights protection labor compliance and human capital management standards. The Board of Directors has established
the Audit Committee the Remuneration Committee the Strategy and Risk Management Committee the Nomination Committee 3 Board members and the date of formal appointment: Zhu Baoguo: December 1992; Liu Guangxia: July 1995; Qiu Qingfeng: August 2006; Lin
and the Sustainability Committee. These committees assist the board in making legal compliant sound and accurate decisions Nanqi: December 2019; Xing Zhiwei: August 2024; Qin Yezhi: May 2020; Peng Juan: August 2021; Yin Xiaoxing: September 2023; Shen Xiaoxu: May
ensuring the effective operation of integrity and transparent corporate governance procedures. 2025; Yang Ying: November 2025.
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2.1.4 Investor Relations Management 2.2 Carrying Forward the Party-Masses Spirit
Joincare following the relevant requirements of the Guidelines for Investor Relations Management of Listed Companies has
formulated the Investor Relations Management Measures established a mature communication mechanism and conducts Joincare adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era thoroughly
all-round communication and exchanges with investors through multiple channels. With the core objective of "deepening implements the decisions and deployments of the Party Central Committee on strengthening Party building in non-public
value communication and consolidating investor trust" we have built a multi-dimensional three-dimensional investor enterprises closely focuses on the Company's central development tasks and solidly advances various Party building
communication system comprehensively improving the sophistication of investor relations management and effectively initiatives. We strengthen political guidance strictly implement the "First Agenda" system and organize Party members to
safeguarding the right to know right to participate and right to express of small and medium investors. deeply study the Party's innovative theories and the spirit of the latest meetings through "Three Meetings and One Lesson"
special Party lectures and other formats consolidating ideological foundations.During the year we continuously strengthened two-way communication with investors holding a total of 3 results briefings
each attended by the Chairman and President together with the Chief Financial Officer Board Secretary and independent In 2025 the Group focused on deepening the integration of Party building with business operations incorporating Party
directors with a 100% management attendance rate. Centered on market focal points such as the Company's operating organization activities into production and operations technological breakthroughs and social responsibility practices.results strategic plans R&D progress and ESG practices we engaged in in-depth exchanges with investors to tangibly enhance Through establishing Party member responsibility zones and forming vanguard teams we guided Party members to play an
transparency and build closer relationships with small and medium investors. The Group also actively conducted investor exemplary role in key positions and public welfare actions. Simultaneously we actively explored forms of co-operative Party
engagement activities in various forms. In 2025 we held multiple activities including specific-target research visits results building proactively linking with community school and other grassroots Party organizations to carry out collaborative
interpretation conference calls and "Listed Companies Open Day" events receiving over 300 representatives of domestic and practices of resource sharing joint activity hosting and jointly promoting development. This enriched the cultural
overseas institutional and individual investors and comprehensively demonstrating the Company's value and development connotations of Party-mass relations enhanced the cohesion and social influence of the Party organizations and injected solid
potential. "red momentum" into the Company's high-quality development.In terms of small and medium investor relations management we have built a full-channel response mechanism combining
"official platforms + new media + direct communication" to enhance service quality and efficiency. Case
Small and Medium Investor Communication "Passionate Volunteers Relay of Love" — Public Welfare Blood Donation Drive
In 2025 the Group's Party organizations actively responded to the
social call and organized the "Passionate Volunteers Relay of Love"
Efficient operation of the "SSE e-Interaction" platform with dedicated staff available for real-time responses voluntary blood donation public welfare activity. Party members took
handled 154 investor inquiries during the year covering all types of concerns including operating data business the lead registered voluntarily and actively encouraged their colleagues
layout and shareholders' rights. to participate enthusiastically. On the day of the event Party member
volunteers provided full assistance and orderly guidance creating a warm
and vibrant atmosphere. This public welfare action effectively alleviated
Smooth telephone communication channels with a dedicated investor hotline staffed during all working hours the demand for clinical blood supplies demonstrating the exemplary spirit
on business days cumulatively answered a total of 303 calls during the year providing professional answers to of selfless dedication and service to society embodied by Party members Voluntary Blood Donation Public Welfare Activity
personalized questions and ensuring barrier-free communication. from Joincare.Case
Building a new media communication matrix for investor relations: leveraging the WeChat Official Account
platform innovatively using infographics and other formats to publish articles covering results interpretation ESG "Party Building Collaboration Nurturing Talent" — Songping School Research Base Inauguration
achievements investor education and other content improving the readability and reach of information.Joincare upholds the principle of Party building-led school-enterprise
collaboration and continuously explores new pathways for resource
sharing and joint talent development. In 2025 the Group and Songping
During the year Joincare's School in Nanshan District Shenzhen successfully held the inauguration
investor relations management ceremony of the "Research and Practice Education Base" collaboration.achieved significant results. Award Name The Group's Party organization representative attended the event
Through standardized efficient marking the establishment of a normalized educational cooperation
communication services and mechanism between the two parties under the framework of co-
solid measures to protect small Best Practice Award for Investor Relations Management operative Party building. In the future the base will leverage Joincare's Inauguration Ceremony of the Base
and medium investors the Selected for the Best Practice Cases in Investor Relations Management of resources to provide a practical platform for enrolled students promoting
Company won wide recognition Chinese Listed Companies 2025 compendium collaborative school-enterprise talent development. This is an important
from the capital market. achievement of Joincare's efforts to deeply integrate Party building with
5A rating in "2025 Performance Appraisal on Board Secretaries of Listed social responsibility and a vivid example of empowering educational
Companies" development and achieving collaborative talent cultivation.
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2.3 Business Conduct
Joincare upholds the philosophy of integrity and self-discipline strictly complying with laws and regulations including the Anti-Unfair 2.3.2 Anti-Unfair Competition
Competition Law of the People's Republic of China the Interim Provisions on Prohibiting Commercial Bribery and the Criminal
Law of the People's Republic of China. We continuously improve our integrity management system; the Group's Board of Directors
Audit Committee is responsible for overseeing integrity management work encompassing business ethics anti-corruption and anti- The Group insists on operating in accordance with laws and regulations strictly complying with the Anti-Unfair Competition
unfair competition while the Risk Management Department is responsible for assisting with implementation ensuring lawful and Law of the People's Republic of China the Anti-Monopoly Law and other laws and regulations. We have established a
compliant business operations. We also strengthen audit oversight of internal management and enhance the Group's atmosphere comprehensive anti-unfair competition management system covering dimensions such as the prevention of false advertising
of integrity through integrity culture advocacy covering all employees. During the year Joincare had no cases of corruption bribery control of monopolistic behavior and protection of trade secrets clearly prohibiting false or misleading commercial
fraud money laundering conflicts of interest unfair competition customer privacy breaches discrimination or harassment. advertising abuse of dominant market position bid-rigging and other behaviors. The Group ensures the effective operation
of the management system and genuinely fulfils its corporate responsibility for a fair and competitive environment through
improved internal control processes compliance training and strengthened supervision and inspection.
2.3.1 Anti-Commercial Bribery and Anti-Corruption
In 2025 the Group had no litigation cases arising from unfair competition conduct and did not receive any relevant major
administrative penalties.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. The Board approved the revised version of the Anti-Corruption and Anti-Commercial Bribery System
and the Anti-Fraud System 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 2.3.3 AI Applications and Technology Ethics
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 To improve business process efficiency the Group continuously explores the deep integration of information technology with
not limited to full-time and part-time employees interns contractors). daily business processes and operations management. In terms of office system applications we use information systems such as
We require all employees management and partners to strictly implement the following measures and commit to ensuring the Customer Relationship Management (CRM) systems Enterprise Management Solutions (SAP) systems and the "Feishu" office system
integrity of their own behavior. In light of the established policies and business ethics training initiatives we have concluded that the to fully enable daily operations through digital means.Group's exposure to commercial bribery and corruption risks is low.During the year we continued to explore AI technology applications achieving intelligent empowerment from R&D and production
through to marketing and finance through a "deep full-scenario penetration + systematic efficient integration" model. Using
Feishu as the collaborative platform the Group integrated AI large models with business systems to build an "AI-driven ecological
All employees receive training on the code of conduct in relation to anti-corruption and collaboration system" improving operational efficiency compliance control and business response speed. For AI applications in
anti-commercial bribery at the onboarding stage pharmaceutical R&D please refer to Section 3.5.2 "Exploring AI Technology Applications" of this Report.Employees Sign the Commitment Letter of Anti-commercial Bribery to clarify respective integrity
responsibility and forbid violations
Case
Sign the Oath of Integrity for Senior Executives of the Company to ensure that they AI-Assisted Drug Registration and Filing Process Efficiency — Pharma Intelligent Review Platform
perform their duties with integrity and self-discipline
Management To address challenges including low efficiency in manual review of drug registration documents inconsistent standards
and version confusion we built the "Pharma Intelligent Review Platform" integrating AI automated review online
collaborative writing and Chinese-English comparative translation functions. Based on Electronic Common Technical
All suppliers shall sign the Anti-Commercial Bribery Agreement as an appendix to Document (eCTD) standards and internal standardized processes the platform enables real-time compliance risk
commit anti-corruption and anti-commercial bribery and promise not to violate prompts supports multi-person collaborative editing and unified version management and integrates an AI translation
business ethics during the performance of the contract engine to improve registration document quality and international filing efficiency driving intelligent and standardized Suppliers & partners pharmaceutical R&D development.
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Case We have established a Risk Management Department that is independent of the Group's business operations responsible for
conducting business ethics and anti-corruption audits across all Group businesses. Under the guidance of the Board's Audit
AI-Assisted Reimbursement Receipt Audit — Business-Finance Integrated Reimbursement Platform Committee the Risk Management Department formulates and implements annual audit and supervision plans reviews and
supervises the implementation of policies such as the Anti-Corruption and Anti-Commercial Bribery System and the Anti-Fraud
To address issues in traditional financial reimbursement processes including long compliance review cycles for receipts System at each company assesses the Group's business ethics and corruption risk levels and evaluates the effectiveness of business
cumbersome rejections and inefficient cross-departmental collaboration Joincare built a "Business-Finance Integrated ethics management measures. All members of the Risk Management Department are full-time staff who do not directly participate
Platform" integrating three core capabilities: OCR receipt recognition AI compliance review and process automation. in production and business operations; their audit results are reported directly to the Board's Audit Committee and they maintain
Employees can conveniently submit reimbursement requests by voice or photo; the system automatically identifies and a high degree of independence in terms of organizational structure business operations and personal performance of duties to
structures invoice information. Based on pre-set financial rules the AI engine conducts real-time intelligent review of invoice ensure the independence impartiality and objectivity of the audit work.authenticity expense reasonableness and budget matching providing instant feedback. Reimbursement data is seamlessly
connected with ERP systems and budget management systems achieving full-process online processing automation and In 2025 the Risk Management Department conducted comprehensive audits of all the Group's subsidiaries in strict accordance
end-to-end traceability from application and approval through to bookkeeping significantly improving financial processing with the annual plan covering all business segments. The audit content covered the design and implementation of internal
efficiency and compliance levels. controls in key areas of subsidiaries' operations including engineering management financial and expense management
personnel management procurement management inventory management quality management EHS (Environment Health
& Safety) management and contract management. The audit work went deep into the entire processes of each internal control
Joincare keeps pace with AI technology development trends and holds AI competitions to stimulate company-wide innovation module systematically examining subsidiaries' operational management from risk identification and assessment the design and
promoting the integration of AI tools with actual work scenarios to boost work efficiency. During the year we held the inaugural "AI implementation of control activities through to information communication mechanisms and continuous monitoring systems
Efficiency Pioneer Competition" attracting over 500 employee participants who submitted 112 innovative cases covering multiple assessing and identifying risks and effectively safeguarding the compliance and internal control effectiveness of the Group's overall
fields including R&D production marketing and finance genuinely embedding AI capabilities such as OCR recognition large operations. To enhance the professionalism and credibility of the audit work we also actively invited external independent third-
model parsing and automated processes into real work scenarios. The competition was evaluated by a panel of senior executives party audit firms to participate in relevant work further enhancing the objectivity and authority of audit results. During the year no
and external experts along dimensions including practicality efficiency improvement effect and innovation. Multiple outstanding material audit deficiencies were identified.projects were selected such as the "AI Business-Finance Made Easy" project which significantly reduced reimbursement rejection
rates and achieved approximately 4771 hours of saved review time throughout the year. Through incentive mechanisms such as The Group's annual comprehensive audits of all subsidiaries result in an Annual Risk Management and Internal Control Assessment
bonuses and promotion credit points we strive to create an atmosphere where "everyone can use AI and everyone can create Report and a targeted audit plan is formulated. For issues identified during audits we promptly put forward rectification
value". recommendations requiring audited entities to complete rectifications within 100 days and conducting follow-up verification of
rectification results to ensure that audit issues are genuinely resolved and managed on a closed-loop basis.As a responsible pharmaceutical enterprise the Group fully recognizes the tremendous potential of artificial intelligence in
healthcare strictly complies with applicable national laws regulations and industry-specific ethical guidelines for science and Joincare has formulated and publicly released the Measures for the Management of Reporting and Complaining and the Reporting
technology. The Group has formulated Responsible Artificial Intelligence (AI) Use Policy and consistently grounds its AI applications and Whistleblower Protection Policy continuously improving the reporting management and whistleblower protection mechanism
on a solid foundation of scientific ethics. We adhere to the safe and prudent application of AI technologies supplementing critical standardizing reporting procedures and clearly stating that all employees customers and suppliers of the Group have the right
decision-making processes with necessary human oversight. We conduct regular safety assessments and continuous monitoring of to report and file complaints regarding corrupt practices fraud and other illegal or non-compliant behaviors or to contest any AI
all AI systems to promptly detect and rectify model performance drift thereby mitigating algorithmic bias risks. Meanwhile we clearly decision or outcome fully safeguarding the reporting rights of employees and business partners.label AI-generated content and automated decision-making processes to ensure full transparency and controllability throughout
the application of AI technologies. At the technical application level we currently refrain from using sensitive AI functions such as We have established multiple publicly accessible reporting channels including correspondence telephone and email. The Group's
facial recognition and surveillance analytics. Should such technologies be adopted in the future we will implement hierarchical Risk Management Department is responsible for receiving reports promptly investigating and handling them and compiling and
authorization and access control mechanisms to ensure their use complies with legal regulatory and ethical standards. reporting them upward completing the process within 30 days of receipt and notifying the reporter of the outcome. We strictly
maintain confidentiality of the personal information of reporters and the content of their reports in accordance with system
Furthermore the Group systematically measures and quantifies the impacts of AI tools on environmental and social dimensions requirements. We classify reporting materials and records as confidential documents managed by dedicated staff ensuring that
of sustainable development. We actively advocate for integrating green development concepts into AI technology applications reporters are not subject to retaliation due to information leaks and fully safeguarding the legitimate rights and interests of reporters.and operational processes calling upon partners to collectively reduce the carbon footprint of AI infrastructure through algorithm If any employee is found to have violated confidentiality provisions leaked reporter information or retaliated against a reporter they
optimization efficient computing resource allocation and the use of clean energy. We also provide comprehensive AI application will be held legally accountable.and safety training to all employees to ensure that Responsible AI practices are embedded throughout the entire lifecycle from
development to deployment. We are committed to driving technology for social good and ultimately achieving the alignment of Joincare's Reporting and Complaint Channels
commercial value with social responsibility.Tel: 0755-86252316 / 0755-26980226
2.3.4 Audit and Reporting
Internal email: SAMD@joincare.com External email: joincaresamd@163.com
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 Address: Joincare Pharmaceutical Group Building No. 17-2 Langshan Road Nanshan District Shenzhen
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 rigorously advance the Group's internal control and internal audit work Guangdong
in accordance with system requirements and continuously optimize the system architecture in line with policy developments and
business progress continuously improving governance effectiveness and risk prevention and control capabilities. Human Resources Complaints and Reporting Mailbox: hr.group@joincare.com
33 2025 Sustainability Report 34About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
2.3.5 Promoting an Integrity Culture 2.4 Data Security and Customer Privacy Protection
Joincare continuously strengthens the building of an integrity culture deeply integrating the integrity philosophy into the operational Joincare has established a comprehensive information security management system formulating group-wide information security
risk prevention and control system and is committed to creating a corporate cultural atmosphere of fairness openness integrity management policies and standards including the Information Security and Privacy Protection Policy Management System for the
and transparency. We have explicitly incorporated business ethics-related requirements into the Employee Handbook as the basic Security of Computer Information System the Management Requirements for IDC Data Center Operation and Maintenance the
code of conduct for all employees and have specially set up a business ethics advocacy session in new employee onboarding Backup System and the Process of Reporting Suspicious Affairs of Information Security. We have established a Group information
training to reinforce employees' awareness of integrity and compliance concepts. security management organizational structure with the CEO serving as the highest responsible person for information security
management. We have also established a Chief Information Officer (CIO) to comprehensively oversee information security
In 2025 through a combination of online and offline training we conducted annual business ethics training for all employees management data governance and IT construction work. The CIO has extensive experience in the field of information security
(including full-time part-time and contract employees) focusing on key content such as the requirements of the Anti-Corruption strategy ensuring the efficient and stable operation of the Group's information security system. Our information security and
and Anti-Commercial Bribery System and the Anti-Fraud System and employee integrity regulations. The training explained these technology team members also hold certifications including Microsoft Certified Systems Engineer (MCSE) Microsoft Certified IT
system requirements in detail to improve employees' understanding of anti-corruption anti-commercial bribery and anti-fraud Professional (MCITP) and Cisco Certified Network Associate (CCNA). Drawing on their deep expertise in large-scale enterprise-level
requirements ensuring that the Group's business ethics-related policies are effectively implemented in daily work. Meanwhile network architecture design secure communications and system stability operations and maintenance the team has built a multi-
all directors and senior management of the Group participated multiple times in training on standardized operations for listed dimensional defense system providing security stability and reliability for the Group's information assets and network environment.companies covering key topics such as compliance management anti-commercial bribery anti-monopoly and risk management
continuously improving the compliance performance capability of senior management. We also extended integrity requirements We conduct annual information security vulnerability scans and analyses. In daily operations the Group has deployed an Endpoint
to the supply chain organizing anti-corruption thematic training for suppliers to help them fully understand and comply with the Detection and Response (EDR) system to fully resist virus attacks on endpoint computers; built a next-generation firewall and
Group's standards and requirements on business ethics jointly maintaining a clean fair and trustworthy business ecosystem. conducted network penetration tests to deeply examine system security simultaneously performing security assessments and
During the year the coverage rate of business ethics training stands at 100% across the Board of Directors senior management and vulnerability scanning; and built an Intrusion Prevention System (IPS) security mechanism centered on intrusion detection using
all employees. multiple defense technologies to accurately identify security threats in real time and promptly terminate intrusion activities. In
addition we regularly perform data backup tasks and conduct regular inspections of hardware equipment to effectively ensure data
security.Total number and percentage of directors management and employees who have
received anti-commercial bribery and anti-corruption training We have formulated information security-related business continuity plans. To effectively respond to unexpected disaster events
the Group has formulated and implemented the Emergency Plan for Network Server Systems and the Disaster Recovery Plan for
Information Systems clearly defining response mechanisms handling processes and countermeasures in the event of emergencies.Category Number of Persons (persons) Training Coverage Percentage We regularly organize relevant emergency drills to test the feasibility and completeness of emergency plans further reinforcing
information security barriers and ensuring business continuity. We also conduct annual backup device tests and simultaneous data
Directors Joincare:10; Livzon Group:11 100% disaster recovery drills to verify the actual effectiveness of relevant emergency plans.Management 1566 100% The Group continuously improves its information security management level engaging third-party independent institutions each
year to conduct annual audits of the Group's information systems and information security policies ensuring that privacy protection
policies operate effectively. The Group also conducts information security internal audits covering modules such as information
Employees 12009 100% security management systems IT infrastructure and process operating environments ensuring the effective operation of the
information security management system. We protect the identity disease biological sample and other information of trial subjects
from disclosure through measures such as anonymization coding and dedicated management. During the year the Group had no
information security or privacy breach incidents.Case In addition Joincare has established a process for employees to report information security-related incidents vulnerabilities or
suspicious activities covering suspicious matters detection internal reporting incident assessment response feedback and
Directors and Senior Management of Joincare Participate in Anti-Corruption and Risk Management Training communication. The Group has formulated detailed guidelines for information security reporting. If employees discover any
suspicious activities vulnerabilities threats or violations related to information security they should immediately record the relevant
Joincare consistently provides all directors and senior management with specialized annual training on anti-corruption details — including the time location persons involved and incident description — and report the details to the information
and risk management continuously strengthening their compliance awareness and risk management capabilities. In security team through email internal reporting systems or other designated channels. The information security team is responsible
2025 all directors and senior management of the Group participated in thematic training provided by external professional for assessing and investigating suspicious incidents and taking appropriate measures to handle them which may include patching
institutions and senior legal experts. The training content covered core topics including business ethics and anti-corruption vulnerabilities upgrading security measures initiating security incident response plans and taking legal action. Progress and
compliance prevention of performance-related risks in the new regulatory environment and compliance responsibilities in outcomes of the handling are fed back to the reporter.ESG governance with a training coverage rate of 100%. In addition by regularly pushing out brief regulatory updates and case
analyses we help management acquire key compliance knowledge strengthen risk awareness and continuously reinforce In terms of information security and privacy protection training we require all Group employees to participate in information security
the integrity of professional conduct. and privacy protection training. We regularly organize information security training courses and incorporate them into the new
employee onboarding training system; we also use online training formats to impart information security knowledge to employees
covering high-risk information security risks and defensive measures and key security precautions in daily work. During the National
Cybersecurity Awareness Week we push information security prevention knowledge through the Feishu platform committed to
improving all employees' information security awareness and risk prevention capabilities. As of the end of the Reporting Period data
security and privacy protection training has covered all employees.
35 2025 Sustainability Report 36About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
PART
03
Innovation-Driven
Development
Joincare is deeply rooted in the healthcare industry resolutely implementing the core strategy of
"innovation-driven and AI-empowered." We prioritize patient interests focus on unmet clinical
needs and develop a rich and well-structured pipeline of innovative drugs. We extensively
explore the diverse applications of AI technology in the pharmaceutical field driving continuous
innovation and technological empowerment to deliver higher-quality pharmaceutical products
and health solutions.SDGs in this section
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3.1 Governance 3.2 Strategy
A sound governance structure is the cornerstone for the Group to ensure the implementation of its innovation strategy and improve The Group fully identifies risks and opportunities related to the innovation-driven development issue assessing their potential impact on
R&D efficiency. Joincare has established and continuously improved a three-tier R&D innovation governance structure of "Decision- the Group's business and finances in the short medium and long term4.Making — Management — Execution" ensuring that the R&D strategy is deeply aligned with both commercial value and patient
needs.Risk Type Business Impact Financial Impact Time Horizon
Long R&D cycles and May cause delays in the R&D Long-term occupation of R&D capital;
Medium to Long
Decision-Making Tier high costs for innova- pipeline and missed market may reduce the efficiency of the Term
tive drugs opportunities company's use of funds
The Board of Directors as the highest responsible body for R&D governance is responsible for regularly reviewing R&D May result in the inability to re- May cause prior investment to be
strategy annual R&D investment and major project decisions overseeing the setting of management targets and tracking Termination of innova- coup invested resources affecting non-capitalizable placing short-term Short Term
target progress. Members include independent directors with pharmaceutical R&D backgrounds covering fields such as tive drug R&D projects the product pipeline development pressure on cash flow
clinical research and pharmacy.Opportunity Type & Impact
The adoption of AI technologies can accelerate the R&D process and improve innovation efficiency. Following the successful
Management Tier development of innovative drugs the Company can further expand market reach and generate higher profits through technology
licensing and other commercialization models.The R&D Management Team under the leadership of Joincare's CEO is responsible for coordinating R&D resource allocation AI-enabled R&D: In specific R&D projects we leveraged AI-driven molecular design as a foundation and refined the process
and promptly organizing the resolution of major project issues. Management conducts quarterly "Go/No Go" and priority with wet-lab data. Ultimately the target molecule derived through traditional rational medicinal chemistry design achieved the
assessments of projects under development with a focus on scientific validity druggability and commercial value to optimize best in vivo activity results significantly improving both R&D efficiency and the quality of outcomes.resource allocation efficiency. Commercialization of innovative drugs: Pixavir Marboxil Capsules ( 壹立康 ) an innovative drug were launched on De-
cember 11 coinciding with the peak winter influenza season. Strong market demand created favorable conditions for product
promotion and commercialization.Execution Tier
Based on systematic assessment of risks and opportunities we dynamically optimize strategic planning and decision-making
Project Teams: A dual-track system of "Project Leader (Clinical Center Director) + Project Manager" is implemented with mechanisms promoting the coordinated development of R&D and commercial value. We have established a full-process decision-
each key project staffed by a cross-disciplinary team (including pharmacy non-clinical and clinical research) responsible making system oriented towards "clinical value + commercial potential" implementing "Go/No Go" assessments at key nodes such
for daily operations and progress management. as target selection and clinical advancement providing technical support to optimize resource allocation and improve R&D success
rates. For opportunities such as AI enablement and overseas expansion we strengthen cross-departmental collaboration to rapidly
Technology Platforms: Two core technology platforms — inhalation drug delivery and AI drug design — provide technical convert technology and select external partnering opportunities. In the face of risks such as long R&D cycles and high costs we adopt
support for projects under development. a model combining in-house R&D with collaborative development to diversify risks and ensure R&D continuity.In line with the Group's strategy we anticipate the following trends in financial position operating results and cash flows over the
short medium and long term:
Joincare has established a comprehensive information reporting mechanism to ensure efficient transmission of R&D developments
and precise implementation of decisions. The Execution Tier submits weekly project progress reports to the Management Tier Short Medium Long
including key data and risk alerts ensuring project indicators are traceable and controllable. The Management Tier provides real- Term Term Term
time special reports to company directors and senior management every two months on the implementation of R&D strategy
covering major milestones such as clinical approval notices received and completion of Phase III clinical trials comprehensively R&D investment continues to Core R&D pipelines enter the Technology barriers and market
ensuring that the Decision-Making Tier has timely and accurate knowledge of overall R&D developments. increase with phased pressure on commercialization phase a multi- share are progressively solidified
cash flow but operating results will product matrix is formed and domestic and overseas markets grow
gradually improve as innovative innovative drugs become the core in synergy R&D and revenue form a
drugs such as Pixavir Marboxil revenue engine. virtuous cycle achieving long-term
Capsules are brought to market. stable development.
4 The time horizons are defined consistently with those set out in the "Sustainability Management" chapter namely short-term (0–3 years)
medium-term (4–10 years) and long-term (over 10 years). These definitions are aligned with the Company's strategic planning and resource
allocation plans.
39 2025 Sustainability Report 40About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
3.3 Impact Risk and Opportunity Management
The Group has established an identification assessment and management mechanism for impacts risks and opportunities
related to the innovation-driven development issue and has incorporated this into internal management processes. Table: Key R&D or Registration Milestones for Joincare in 2025
Identify risks and opportunities through internal reviews and external research: internally reviewing potential Date Key R&D or Registration Milestone
Identification & risks throughout the R&D process and externally tracking developments such as technology iterations policy January 2025 FIC COPD oral drug PREP inhibitor commenced Phase I bridging study in healthy subjects
Assessment orientations and market demand. Assess the probability of risks and opportunities and their impact on R&D
progress costs and commercial value from two dimensions: likelihood and magnitude of impact. May 2025 Aripiprazole Microspheres for Injection approved for market launch
June 2025 Pixavir Marboxil Dry Suspension (paediatric formulation) received Clinical Trial Approval Notice
Rank based on comprehensive consideration of strategic alignment and impact weight: on the risk side prioritize July 2025 Lecankitug Injection (IL-17A/F) Phase III clinical trial achieved primary endpoint
handling core matters with both high likelihood and high impact (e.g. clinical data failing to meet expectations); on the
Prioritization
opportunity side prioritize implementing matters that align with the Group's core tracks and have short conversion July 2025 New polymyxin B derivative (BRII-693) added to pipeline enriching the anti-infective R&D portfolio
cycles (e.g. AI R&D technology applications). August 2025 JP-1366 tablets submitted for production approval
August 2025 Novel β-lactamase inhibitor injection formally entered Phase I clinical trial
Establish a process of daily monitoring by project teams weekly reviews by project management and
quarterly reviews by the Decision-Making Tier. Project teams track risk and opportunity developments November 2025 FIC COPD oral drug PREP inhibitor completed first patient enrolment in Phase II clinical trial
Monitoring &
in real time with immediate reporting of major matters; develop specialized contingency plans for
Management Pixavir Marboxil Dry Suspension (pediatric formulation) completed first patient enrolment in Phase
high-priority matters clearly defining responsible departments and response measures to ensure rapid November 2025 III clinical trial
response.December 2025 DPP-1 inhibitor added to pipeline formally entering the Preclinical Candidate (PCC) stage
Process Incorporate the above management processes into internal processes such as R&D decision-making December 2025 Influenza innovative drug Pixavir Marboxil Capsules approved for market launch
Integration & budget management and cross-departmental collaboration combining them with "Go/No Go" Lecankitug Injection (IL-17A/F) submitted for production approval and included in priority review in
Adjustment assessments and R&D investment allocation. December 2025 January 2026
December 2025 TSLP monoclonal antibody completed Phase III clinical trial registration
3.4 Metrics and Targets
In addition we also regard the
scale of the R&D team and R&D 2021-2025 Number and Proportion of R&D Personnel
The Group focuses on the core objectives of driving the R&D and market launch of innovative drugs formulating corresponding investment as important indicators
monitoring indicators and progress tracking mechanisms to ensure the effective implementation of the innovation-driven for measuring the management 12.16 12.11
strategy. % %performance of the innovation- 12.20% 11.63% 11.50%
driven agenda. As of the end of 1615 1717 1740 1670
the Reporting Period the Group's 1561
Metrics & Targets 2025 Achievement Status R&D team has grown steadily with
R&D personnel reaching 1561.Target achieved. During the year the Group had 2 innovative drug approved
Maintain a certain number of innovative Simultaneously we have continued
for market launch 1 innovative drug filed for production approval 5 innovative
drug submissions for clinical trial to increase investment in the R&D
drugs entered Phase III clinical trials 10 innovative drugs entered Phase II
applications or approved market launches field; R&D investment for the year
clinical trials and 4 innovative drugs received clinical trial approvals. Key R&D
each year was RMB1.429 billion representing
or registration progress is detailed in the table below. 9.39% of the total audited revenue
for the year. 2021 2022 2023 2024 2025
41 2025 Sustainability Report 42About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
3.5 Our Management Practices
Joincare focuses on innovative drug R&D actively exploring frontier technologies and development opportunities both 2025 Joincare's new influenza drug Pixavir Marboxil Capsules ( 壹 立 康 ) received approval for market launch; the pediatric
domestically and internationally. Through an R&D model combining in-house R&D external in-licensing and collaborative influenza drug Pixavir Marboxil Dry Suspension entered Phase III clinical trial. Multiple innovative drug candidates for the
development we deeply cultivate key therapeutic areas including respiratory diseases pain management gastroenterology treatment of COPD have achieved significant progress including: the TSLP monoclonal antibody advancing to Phase III clinical
assisted reproduction and psychiatric disorders continuously expanding our portfolio in advantaged areas and our innovative trials; the MABA inhalation solution and the first-in-class (FIC) PREP inhibitor oral tablet progressing smoothly through Phase II
drug R&D pipeline. clinical development; and several Class 1 innovative drugs attaining milestone achievements.We actively explore the application of AI technology in pharmaceutical development adopting globally leading AI models to
comprehensively improve R&D efficiency in areas including target identification molecular design and molecular screening
shortening R&D cycles and accelerating the market launch process for innovative drugs. By integrating machine learning Case
and generative AI we have achieved a substantive transition in the R&D paradigm from "experience-driven" to "data-driven"
significantly improving the accessibility of innovative drugs. Joincare's Anti-Influenza Category 1 Innovative Drug Pixavir Marboxil Capsules Approved for Market
Launch
3.5.1 Multi-Domain Product Development Influenza is a major threat to global public health. According to the WHO seasonal influenza causes 3 to 5 million severe
cases and 290000 to 650000 deaths globally each year. In China influenza leads to over 2 million acute respiratory
infection hospitalizations annually approximately 90000 of which are directly related to influenza virus with an
Committed to Respiratory Health economic burden exceeding RMB 60 billion.In December 2025 the innovative drug Pixavir Marboxil Capsules ( 壹 立 康 ) developed by Joincare received formal
approval for market launch providing a new solution for influenza A and B patients who are adolescents aged 12 and
Chronic respiratory diseases including chronic obstructive pulmonary disease (COPD) asthma and other conditions are a above and adults. Pixavir Marboxil Capsules is a Category 1 innovative anti-influenza drug and a novel cap-dependent
major category of diseases characterized by high prevalence high disability rates high mortality and a high disease burden. endonuclease inhibitor characterized by rapid onset long-lasting virus suppression good tolerability and oral
With "Joining us in respiratory care" as its starting point Joincare continuously improves its respiratory medication market administration unaffected by food able to simultaneously and effectively suppress both Influenza A and B viruses.positioning to support the treatment of respiratory diseases domestically. After years of steady development our existing and Phase III clinical trial data showed that Pixavir Marboxil Capsules also demonstrated faster virus suppression and
pipeline products now cover all categories of inhalation therapy drugs for COPD and asthma providing more high-quality and higher symptom improvement rates in adolescents aged 12–17 with a good safety profile. Pixavir Marboxil Capsules
safe medication options for COPD and asthma patients. As of the end of the Reporting Period the Group has 10 varieties with provides long-lasting virus suppression and treatment can be achieved with a single oral dose throughout the course
14 specifications of inhalation formulation products on the market. significantly improving clinical compliance reducing the burden of medication on patients and providing a smoother
treatment process for primary care settings and peak consultation scenarios.The Group has achieved a strategic breakthrough in building an R&D team ladder in the respiratory disease field with over
20 R&D pipelines including over 10 Category 1 innovative drugs. In the respiratory innovation product area full formulation Furthermore targeting children as a high-risk group for influenza Joincare's Pixavir Marboxil Dry Suspension has
coverage of inhalation oral and injection forms has been achieved forming a powerful respiratory disease product matrix. In received approval to advance to Phase III clinical trials. The child-friendly formulation and single-dose administration
are expected to effectively address the challenges of administering medication to young patients and their poor
compliance with the potential to realize "family-wide applicability" in prevention and control scenarios in the future.
43 2025 Sustainability Report 44About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
Deepening Biopharmaceuticals
Case
Joincare's FIC Innovative Drug MABA Inhalation Solution Successfully Advances Phase II Clinical Trial Over the years the Group's subsidiary LivzonBio a dedicated player in the biopharmaceutical field has built mature R&D and
manufacturing technology platforms for antibody drugs and fusion protein drugs. It also focuses on product development
In 2025 Joincare's innovative drug MABA Inhalation Solution for COPD successfully advanced its Phase II clinical trial. This in areas such as autoimmune diseases reproductive health and infectious disease prevention carrying out and advancing
FIC drug has a unique "dual-target" mechanism of action achieving the innovative design of simultaneously acting on two multiple innovative vaccine monoclonal antibody and recombinant protein drug R&D projects.major targets — the M3 receptor and the β2 receptor — in a single molecule providing a completely new solution to current
COPD treatment challenges. The dual-target mechanism successfully avoids the efficacy limitations and potential side effect LivzonBio has accelerated the initiation of new product projects through in-house R&D external in-licensing and strategic
risks that may be faced with monotherapy and can achieve dual improvement of COPD disease symptoms and lung function alliances. Relying on its comprehensive recombinant protein drug research development and industrialization capabilities it
through the synergistic effect of "dual targets" significantly enhancing treatment efficacy and patient treatment compliance. continuously enriches the company's in-development product pipeline and improves the commercialization capability of its
Simultaneously this drug has the dual therapeutic advantage of both rapid onset and long-lasting effect and is expected to products. During the year LivzonBio was actively progressive at the R&D stage fully advancing multiple key projects. Among
be a powerful complement or even replacement for existing treatment regimens. In terms of safety this drug can significantly these the psoriasis indication for the IL-17A/F dual-target inhibitor Lecankitug was submitted for production approval and
reduce the possibility of side effects on the central nervous system bringing COPD patients a new treatment option that is granted priority review by the National Medical Products Administration's Center for Drug Evaluation (CDE); the ankylosing
more effective convenient and safer. spondylitis indication has completed the Phase III clinical trial; and the BIC-potential quadrivalent recombinant protein
influenza vaccine LZSN2401 has completed the Phase I clinical trial subject dosing.Case
Case LivzonBio's BIC Drug — Quadrivalent Recombinant Protein Influenza Vaccine Completes Phase I Clinical Trial
Subject Dosing
Joincare's Best-in-Class (BIC) Next-Generation Glucocorticoid (ICS) Inhalation Formulation Investigational New
Drug (IND) Approved Influenza is a seasonally prevalent disease that poses a significant health threat to the elderly population and traditional split
vaccines have limited protective efficacy for immunocompromised populations such as the elderly making the development
A large number of patients in China are affected by inflammatory respiratory diseases and glucocorticoids as endogenous of more effective vaccine technologies urgent.anti-inflammatory small molecules can act on glucocorticoid receptors (GR) to regulate the transcription of genes related
to inflammation to inhibit the expression of inflammatory factors and suppress immune cell proliferation. Joincare's IND The quadrivalent recombinant protein influenza vaccine LZSN2401 independently developed by LivzonBio is the world's
application for its next-generation small-molecule ICS formulation was approved in March 2026. Targeting respiratory first quadrivalent recombinant protein influenza vaccine containing an adjuvant. It adopts a dual approach of "recombinant
diseases such as COPD bronchial asthma and rhinitis this drug can activate specific receptor activity to effectively improve protein technology + innovative adjuvant" to overcome the limitation of traditional vaccines in generating insufficient
efficacy and reduce toxic side effects and is expected to become a new treatment option for COPD bronchial asthma and immune responses in vulnerable populations and has the potential to become a BIC drug domestically. In October 2025 this
rhinitis patients. Data shows that in mouse OVA asthma models this drug demonstrated efficacy more than 3 times higher vaccine completed the dosing of all subjects in the Phase I clinical trial. Initial follow-up observations show that the vaccine
than currently available glucocorticoids in clinical use with the potential to become a BIC drug marking an important has a good safety profile with no serious adverse reactions and is expected to provide influenza immunization for high-risk
advance by a Chinese enterprise in global next-generation glucocorticoid R&D. groups such as the elderly with stronger protective efficacy and better safety.Case
Case LivzonBio's Lecankitug — Psoriasis Indication Granted CDE Priority Review
Joincare Launches Next-Generation DPP-1 Inhibitor R&D Project Psoriasis is a global skin disease with approximately 7 million patients in China and a heavy disease burden. Traditional
Bronchiectasis is a disease area with insufficient clinical attention but a heavy disease burden. Currently treatment options therapies have limited efficacy for approximately 40% of patients and the overall utilization rate of biological agents remains
for bronchiectasis are limited globally; while the patient population is relatively large there is a lack of mechanistic drugs that below 10%.can effectively halt disease progression. Lecankitug independently developed by LivzonBio became the first China-developed IL-17A/F dual-target inhibitor and the
Building on its mature R&D system accumulated over a long period in the respiratory drug field Joincare has formally second such candidate globally to enter this stage of development. Its pivotal Phase III study is the first and only superiority
included the DPP-1 target in its core innovation pipeline. As a key initiating enzyme for neutrophil activation continuous study in China's psoriasis treatment field using an active drug (Secukinumab) as a comparator and the only study with
activation of DPP-1 leads to excessive release of neutrophil elastase (NE) which in turn destroys airway tissue and causes PASI100 (100% lesion clearance) as the primary efficacy endpoint. Data shows that this drug demonstrates significant
irreversible bronchiectasis. According to the latest international research DPP-1 inhibitors are expected to become the "first advantages in speed of onset short-term and long-term lesion clearance rates and other aspects with a more convenient
class of causative therapy" for bronchiectasis; the world's first drug of the same mechanism has received FDA approval for dosing regimen that can significantly improve patient compliance. In January 2026 the product's psoriasis indication has
market launch this year which can inhibit disease progression at the causative level and alleviate patient symptoms bringing been submitted for production approval and granted CDE priority review and the ankylosing spondylitis indication has
new treatment options to patients. completed Phase III clinical trials. As the only originator product within this target class domestically to have obtained this
expedited qualification Lecankitug is expected to redefine the treatment standard for moderate-to-severe psoriasis and
provide better options for patients who have long lacked ideal treatment regimens.
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Positioning in Sustained-Release Microspheres 3.5.2 Exploring AI Technology Applications
Microspheres are small spherical polymers with a particle size in the range of 1–250 μm prepared from polymer materials Traditional drug R&D has core pain points of long cycles high costs and low success rates; from target discovery and compound
encapsulating one or more drugs. Compared with traditional injectable formulations microsphere formulations have specific screening through to clinical trials each stage requires large investments of manpower and time and is prone to R&D direction
targeting towards the target organ with advantages such as a long sustained drug release time and high bioavailability errors caused by limitations in information and experience. Currently AI technology centered on machine learning and deep
which can significantly improve the convenience and compliance of patient medication representing outstanding clinical learning is bringing tremendous changes to various fields. AI technology has deeply penetrated the entire drug R&D chain and is
advantages. The Group's subsidiary Livzon Microsphere focuses on three major areas — anti-tumour endocrine regulation and rapidly iterating empowering key decisions at each stage effectively compressing R&D cycles reducing trial-and-error costs and
anti-psychiatric disease — fully utilizing the long-acting and sustained-release characteristics of microsphere formulations to significantly improving the overall efficiency and success probability of new drug R&D.conduct in-depth research into long-acting formulation technologies with independent intellectual property rights.Joincare is committed to deeply exploring the application potential of AI technology. In the project research phase we use AI agents
During the year Livzon Microsphere's improved new drug Aripiprazole Microspheres for Injection received approval for market to rapidly collect precisely screen and intelligently read and synthesize large volumes of literature patents and clinical data from
launch in May and was successfully included in the National Medical Insurance Drug List and the Guidelines for Prevention and multiple sources laying a reliable foundation for subsequent validation and analysis work. In the virtual screening stage we use AI
Treatment of Schizophrenia in China (2025 Edition) . Triptorelin Acetate Microspheres for Injection's endometriosis indication models to efficiently screen for sets of candidate molecules with potential biological activity. We use AI models to conduct structure-
was included in the medical insurance reimbursement scope and successfully renewed; Phase III clinical trial enrolment for the activity relationship analyses to clarify the direction for optimizing molecular structure modifications enabling precise optimization
central precocious puberty indication was also completed with new breakthroughs expected in this field. In 2026 the clinical of candidate molecules; use deep learning models based on retrosynthesis analysis to design efficient low-cost and easy-to-
trial application for Brexpiprazole Microspheres for Injection for the treatment of schizophrenia was submitted in January and operate synthesis routes for optimized candidate molecules significantly reducing experimental costs; and use AI models to predict
following acceptance by the NMPA was approved in March. the absorption distribution metabolism excretion and toxicity profile of molecules eliminating druggability risks in advance and
screening for high-quality molecules with clinical translation potential. In the future the Group will continue to explore AI technology
improve R&D innovation capabilities and support the high-quality development of the pharmaceutical industry.Focused on Psychiatric Disorders
Psychiatric diseases severely affect the lives of hundreds of millions of people worldwide causing not only great harm to patients'
physical and mental health but also imposing a heavy burden on families and society. Joincare's controlling subsidiary Livzon Case
Group has actively positioned itself in the psychiatric disease field launching multiple marketed products and investigational drugs
targeting psychiatric diseases over the years. Among these Aripiprazole Microspheres for Injection developed by Livzon Group Joincare Uses AI to Support the Discovery of Lead Compounds in the COPD Field
received formal approval for market launch in 2025. As a long-acting formulation this drug reduces administration frequency
through sustained-release technology and can effectively improve the pain point of poor medication compliance in schizophrenia In 2025 in its research on COPD drugs Joincare integrated and applied multiple artificial intelligence technologies including
patients. Compared with traditional oral drugs long-acting microspheres can maintain a more stable blood drug concentration molecular generative models quantitative structure-activity relationship (QSAR) models ADMET property prediction models
significantly reducing the risk of relapse. In addition Livzon Group introduced NS-041 a Category 1 innovative drug intended for the and AI-driven synthesis route design providing precise compound screening strategies and druggability optimization
treatment of epilepsy and depression; the Phase II clinical trial of NS-041 tablets for the epilepsy indication has been initiated with directions for the full drug R&D process. This significantly compressed the R&D cycle and experimental trial-and-error costs
the first subject enrolled in July 2025; patient enrollment is progressing smoothly. The depression indication received clinical trial and lead compounds with druggability potential were obtained in just 6 months.approval in December 2025 allowing direct progression to Phase II clinical trial.Case
Livzon Group's BIC Drug NS-041 — R&D Progress for Two Indications Proceeds Smoothly
KCNQ2/3 potassium ion channels are frontier targets for treating central nervous system diseases such as epilepsy and
depression; however next-generation targeted drugs remain an unmet global need. Facing this major unmet clinical need
NS-041 independently developed by Livzon Group is the only KCNQ2/3-targeted innovative drug in China simultaneously
conducting clinical research for both epilepsy and depression indications. This drug demonstrated advantages in preclinical
studies including high target selectivity low off-target risk and no dependency tendency and avoids potential ocular toxicity
issues seen with similar compounds aiming to provide a safer and more precise treatment option from the ground up.In 2025 the epilepsy indication of Category 1 innovative drug NS-041 entered Phase II clinical trial and the depression
indication also received approval to conduct Phase II clinical trial. The advancement of this project represents Livzon Group's
innovative positioning in the field of neurological diseases; by tackling frontier targets it provides new possibilities for
hundreds of millions of related patients globally to potentially obtain better therapies in the future.
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3.5.3 External Collaboration and Recognition 3.5.4 Focus on Rare Diseases
While strengthening independent innovation the Group continuously deepens collaborative development and in-licensing of Rare diseases also known as "orphan diseases" have unclear exact causes and very low incidence rates. Because the market
key varieties in core fields. By connecting with global advantaged resources and frontier technologies it strengthens the Group's demand for treatment drugs is low while R&D difficulty is high and clinical medication experience is lacking rare diseases typically
commercialization and integration capabilities. During the year we made phased progress in business development in-licensing have extremely high treatment costs or are even untreatable. As a responsible pharmaceutical enterprise guided by relevant
multiple innovative drugs and continuously expanding indications in respiratory diseases pain management and other areas. policies such as the "Healthy China 2030" Planning Outline and the Rare Disease Diagnosis and Treatment Guidelines Joincare
fully leverages its scientific research platforms and capability advantages to actively engage in rare disease research committed to
improving the diagnosis and treatment situation for rare diseases in China and supporting the construction of Healthy China.Case
Joincare's FIC PREP Inhibitor Completes First Patient Enrolment in Phase II Clinical Trial Malignant Hyperthermia
The PREP inhibitor is a globally first-in-class mechanism drug that effectively blocks the production of COPD inflammatory
mediators by inhibiting PREP activity. In November 2025 the PREP inhibitor jointly developed by Joincare and Bayer AG Malignant Hyperthermia (MH) is a rare hereditary disease clinically that can cause perioperative death from routine anesthetic drugs
of Germany officially launched Phase IIa clinical trials with the first COPD patient successfully enrolled marking another with a very low incidence but a very high mortality rate. In October 2020 Livzon Group a controlling subsidiary of Joincare obtained
breakthrough by Chinese innovative drugs in the respiratory field. the registration approval for Dantrolene Sodium for Injection the only specific drug for treating MH becoming the first company
in China to successfully produce a generic version of Dantrolene Sodium for Injection. During the year Livzon Group continued to
Based on prior research this PREP-target oral COPD drug has already completed Phase I clinical trials in Europe with results promote the accessibility of this drug in Macao SAR of China Pakistan Chile and other countries and regions. In the Macao SAR of
showing good safety and tolerability providing important support for subsequent trials. Simultaneously preclinical data China this drug has been included in the reserve system of the only public hospital in the region achieving full regional coverage. In
indicates that the drug's efficacy potential is no less than that of currently innovative oral COPD drugs already marketed Pakistan it has entered one of the largest local hospitals. In Chile Livzon Group is working with local partners to submit a registration
overseas but not yet approved in China and its safety is significantly superior. If development is successful and market application to the drug regulatory authorities helping the drug to enter important local medical institutions in the future and
approval is obtained this new drug would become the world's first marketed PREP inhibitor and is also expected to become improving local response capabilities for malignant hyperthermia.the first approved oral COPD treatment drug in China. This drug targets important treatment needs that remain unmet
clinically aiming to provide a completely new treatment option for related diseases potentially filling the treatment gap in
the domestic market and providing patients with a more effective and safer treatment regimen. Systemic Juvenile Idiopathic Arthritis
Systemic juvenile idiopathic arthritis (sJIA) is a rare chronic systemic disease primarily characterized by joint swelling and pain lasting
6 weeks or more accompanied by damage to other tissues and organs with a current incidence rate in China of approximately 1 in
10000. Tocilizumab Injection (Atvtia) developed by LivzonBio a subsidiary of Joincare received approval for two new indications
of sJIA and cytokine release syndrome (CRS) in May 2023. It is the only biological agent approved for the sJIA indication domestically
and the drug recommended by authoritative domestic and international guidelines for treating children with active systemic
symptoms of sJIA or active sJIA who have not responded to initial treatment. This drug has the characteristics of rapid onset and
sustained efficacy improvement can rapidly improve the disease activity of affected children and promptly control the condition
and also helps children catch up on growth and reduces joint structural damage providing a new targeted treatment option for
children with sJIA.
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PART
04
Product and Service Safety & Quality
Product quality is the cornerstone of Joincare's stable operations. The Group's pursuit of product
quality and safety is reflected in every stage of the product lifecycle — from R&D to post-market
patient use. The Group continuously optimizes supply chain management to ensure reliable raw
materials. In addition the Group adheres to responsible marketing promoting products in a
compliant and honest manner to safeguard the health rights and interests of the public.SDGs in this section
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4.1 Governance
Joincare has established a multi-level quality governance system covering the full chain of R&D manufacturing and In addition the Group has established a standardized quality management information reporting system which dynamically
commercial operations forming a pharmaceutical quality governance structure with clear responsibilities independent monitors quality management and control activities through periodic reporting on quality-related matters and analysis of key
performance of duties and coordinated efficiency. The Decision-Making Tier defines product strategy and oversees the quality indicators.setting and progress tracking of management targets. The Management Tier coordinates the construction and supervisory
implementation of quality systems. The Execution Tier implements all quality activities to ensure the entire process is under
control. Through clear delineation of responsibilities and professional specialization the Group continuously improves its
quality management capabilities to safeguard public medication safety.Management regularly submits dedicated work reports to the Company's Board of Directors
and CEO systematically reflecting the operational status of the quality management system
Decision-Making Tier Reporting Cycle ensuring that the Company's core leadership can monitor quality risk dynamics in real time and
and Parties providing strategic guidance on significant matters.The Board of Directors is the highest responsible body for product quality. The company's directors and CEO regularly
review product strategy and supervise the setting and progress tracking of management targets ensuring that the quality
management department operates independently and provides necessary resource support. Members include directors
with work experience in pharmaceutical-related fields who are familiar with the laws and regulations governing drug
supervision and administration ensuring that pharmaceutical quality always meets national regulatory requirements and
patient safety needs. Covers product manufacturing and release status regulatory inspection results market
sampling inspection data deviation investigations change management OOS/OOT analyses
Core Reporting and other relevant matters; with a key focus on critical risk information including product
Content quality customer complaints and adverse drug reactions.Management Tier
The Management is responsible for establishing and operating the quality management system setting up
departments including the Quality Management Department Production Management Center R&D QA Department and
Pharmacovigilance Department to conduct core work such as internal audits deviation investigations OOS/OOT (Out- Quality management work reports are drafted by the Quality Management Department
of-Specification/Out-of-Trend) analyses non-conforming product management and product recalls comprehensively
ensuring that product quality is lawful and compliant throughout the entire lifecycle. reviewed jointly by the Quality Management Department and the Manufacturing Management
Center approved by the Head of Quality and then reviewed by the Company's responsible
Approval person who provides guidance and signs off on the quality work brief for confirmation.Process
Execution Tier
Each project team is equipped with dedicated quality management personnel responsible for implementing daily Periodic reviews are conducted on product quality complaints (covering issue descriptions
quality management work conducting inspections and testing regular reporting trend analyses and internal self-checks remediation measures and closure timelines); statistical analyses are performed on deviations
in accordance with Standard Operating Procedures (SOPs) forming full-process closed-loop management. The Quality
Management Department implements unified quality auditing and supervisory management over external partners such as changes and OOS/OOT findings to identify latent trends; quality trend analyses and stability
suppliers and contract manufacturers. Data Analysis and assessments of intermediate and finished products are simultaneously conducted; and supplier
Application change and material quality complaint data are evaluated to support continuous improvement
and supply chain quality management.The Group has clearly defined qualifications and capability standards for all quality-related positions ensuring that each
key position has the requisite educational background pharmaceutical professional background and practical experience.All quality management personnel possess the regulatory knowledge professional technical capability and practical
management experience required to perform their duties laying a solid foundation for quality management through
professional competency.
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4.2 Strategy 4.3 Impact Risk and Opportunity Management
Joincare is well aware of the importance of product quality to internal and external stakeholders. Product quality is the core link Joincare places great importance on product quality risk management. Referencing the technical guidelines under the ICH
between enterprises and internal and external stakeholders and it is also the primary prerequisite for pharmaceutical companies to system such as the Technical Guidelines for Drug Master File Changes of Approved Chemical Drugs Technical Requirements for
practice ESG responsibilities and protect public health. High-quality drugs can guarantee clinical efficacy effectively avoid risks such Pharmaceutical Studies of Chemical Drug Inhaled Liquid Formulations ICH Q9 Quality Risk Management and ICH Q10 Quality
as adverse reactions and treatment failures caused by omissions in quality control effectively help improve public health literacy Systems the Group has formulated internal systems including the Quality Risk Management Procedure Change Management
and level and protect social and public health safety. The Group actively identifies risks and opportunities related to product quality Procedure Deviation Management Procedure Product Quality Review Management Procedure and Self-Inspection Management
and issues and assesses their possible impact on the Group's business and finance in the short medium and long term5. Procedure to regulate the identification analysis assessment control and review processes for quality risks.Risk/Opportunity Type Business Impact Financial Impact Time Horizon
Deeply explore potential quality issues through data analysis regular audits and self-inspections and
May result in product recalls production May trigger compensation costs fines Identification
quality risk early warning and use professional tools such as Failure Mode and Effects Analysis (FMEA) Risk
shutdowns and remediation affecting & Assessment Ranking and Filtering (RRF) Preliminary Hazard Analysis (PHA) and risk rating to identify risks in people
Quality incident risk normal production and market supply and litigation expenses increasing Short to Long machinery materials methods environment and measurement aspects of the production process.and damaging customer trust and brand operating costs and affecting Term
reputation profitability
Classify quality risks into four levels — high medium low and minor — based on assessment results
As domestic and international drug Requires greater resources to be Tiered and formulate corresponding risk control measures for different levels to effectively ensure the safety regulatory standards continue to be Management efficacy and quality controllability of products.Regulatory compliance upgraded companies need to con- invested in equipment upgrades personnel training audit rectification Medium to pressure tinuously update quality systems and
strengthen inspection capabilities and and other activities increasing capital
Long Term
expenditure and operating costs Incorporate quality system elements such as deviations and changes into dynamic adjustments to ensure data management the Group's overall quality risk remains under control; promptly handle quality complaints and adverse
Control & reaction reports from users following product market launch; organize post-marketing studies to collect
Opportunity Type & Impact Communication data across all post-launch stages; carry out risk assessments and formulate management measures for
High-quality products contribute to enhancing corporate brand influence and customer loyalty. Through rigorous quality control identified risks continuously monitoring potential risks.and management systems quality risks can be effectively mitigated and production efficiency improved thereby generating
higher profitability: Incorporate the above management processes into internal processes such as product strategy budget
Quality-Driven Brand Value: Consistently high-quality output reinforces the Company's professional image builds consum- management and cross-departmental coordination; strengthen the dynamic review mechanism for
er trust and supports the positioning of premium products. Process risk management clarifying differentiated review cycles for risk assessments in different categories International Certification Advantage: Underpinned by stringent quality controls the Company is well-positioned to suc- Integration & such as product CQA/CPP equipment and co-line production ensuring risk control measures remain
cessfully obtain international certifications such as GMP FDA EMA and PIC/S providing the requisite credentials for products Improvement continuously applicable and effective; continuously improve the risk management system covering R&D
entering overseas markets and expanding international market opportunities. manufacturing and commercial operations modules implementing comprehensive management of
quality risks throughout the product lifecycle.Based on systematic assessment of quality risks and opportunities the Group continuously optimizes strategic decision-making
mechanisms driving deep integration of quality and commercial value. The Group has formulated and implemented internal
systems such as the Quality Risk Management Procedure building a quality management system focused on R&D manufacturing
and commercial operations. 4.4 Metrics and Targets
In line with the Group's strategy the Group anticipates the following trends in financial position operating results and cash flows
over the short medium and long term: Joincare sets overall quality targets for the Group and conducts annual tracking and assessment of target achievement to
continuously optimize operational mechanisms and improve quality monitoring levels.Short Medium Long
Term Term Term Metrics & Targets 2025 Achievement Status
Increase investment in quality Promote the internationalization Build sustainable competitiveness
system building improve laboratory of quality standards to support centered on quality to achieve a Market random inspection pass rate of 100%
capabilities and data integrity the registration filing and overseas virtuous cycle of "high quality high Customer complaint rate less than 1%
management and ensure compliant promotion of key products. efficiency high returns" supporting Customer satisfaction greater than 90% All targets achieved. Joincare will continue to deepen its full-
operations. the long-term healthy development Individual case adverse reaction report submission process quality management system driving continuous
of the enterprise. compliance rate of 100% iterative improvement in quality management capabilities. Safety summary report submission compliance rate of
100%
5 The time horizons are defined consistently with those set out in the "Sustainability Management" chapter namely short-term (0–3 years)
medium-term (4–10 years) and long-term (over 10 years). These definitions are aligned with the Company's strategic planning and resource
allocation plans.
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4.5 Our Management Practices
Joincare has built a quality management system covering the entire lifecycle encompassing key aspects including R&D and the full-lifecycle management of reference standards and various materials from procurement through to use was detailed with
manufacturing commercial operations pharmacovigilance product recall and quality auditing. Through systematic product clear requirements for managing validity periods and retest periods.liability design and employee quality training the Group strengthens company-wide quality awareness and compliance
capability. Simultaneously the Group places importance on intellectual property protection and the safeguarding of customer In terms of compliance and technical standard improvement the Group strictly followed the requirements of the Chinese
rights actively fulfilling the primary responsibility of the Marketing Authorization Holder (MAH). Pharmacopoeia 2025 Edition optimized data processing and stability study management procedures and continuously solidified
the data integrity management system. It also standardized analytical method development processes and quality standard
establishment principles strengthened the clinical sample release review mechanism and ensured effective control at key stages.
4.5.1 Quality System Management This system upgrade covered all elements of "people machines materials methods and environment" and full-process data
management providing a solid foundation for the continued stability and controllability of R&D quality.The Group has established a Clinical R&D Center forming specialized departments related to clinical trials including the Clinical
Joincare places great importance on product quality management. Adhering to the basic principles of "risk management Medicine Department Clinical Pharmacology Department Project Management Department Pharmacovigilance Department and
full-process control and social co-governance" the Group has established and continuously optimizes a full-lifecycle quality Clinical Quality Department. Clear responsibilities have been defined for each department and position and qualified professionals
management system covering pharmaceutical R&D manufacturing sales and use. It proactively responds to regulatory have been assigned conducting clinical trial-related work in compliance with laws and regulations related to clinical trials. The
requirements and fulfils its responsibilities as the MAH committed to providing patients with high-quality and trustworthy products. Group is committed to ensuring that clinical trial data is authentic complete and traceable. All clinical trials are registered on the
In 2025 the Group and its subsidiaries continued to review and optimize the quality management systems for R&D manufacturing Drug Clinical Trial Registration and Information Disclosure Platform under the Center for Drug Evaluation of the NMPA and clinical
commercial operations and use with a focus on completing the Group-level quality management system construction. The Group trial progress and results are tracked and published on the above platform. In addition for major clinical trial achievements and
continued to promote the implementation of systems newly added in 2024 including procedures such as the Pharmaceutical progress we will publish these through authoritative domestic and international academic conferences forums and journals
Change Management during Innovative Drug Clinical Trials Clinical Trial Protocol Change Management Contract Manufacturer actively accepting scrutiny from the industry and society.Assessment Management Procedure and Warning Limit and Action Limit Management Procedure; added management standards The Group always places the rights and interests of trial participants in the highest position strictly adhering to the Declaration of
such as Group Quality Policy and Target Management Group Quality System Structure and Management Responsibilities Innovative Helsinki of the World Medical Association the Good Clinical Practice Guidelines for Pharmaceutical Clinical Trials and relevant laws
Drug Name and Code Management Procedure and R&D Materials Management; and revised systems such as the Organizational regulations and ethical standards. All clinical trials are conducted after obtaining approval from drug regulatory authorities and
Structure Management Procedure Product Quality Review Management Procedure Drug Market Release Management Procedure passing ethically required review processes. During the participant recruitment phase the Group has clearly formulated inclusion
and Corrective and Preventive Action Control Procedure building strong institutional safeguards for product quality and safety and and exclusion criteria to ensure diversity in the participant population across dimensions such as gender and age and to exclude
driving the Group's quality management system to operate in a more standardized and efficient manner. individuals with specific safety risks. Prior to their participation in clinical trials investigators must fully inform participants of key
information including the experimental operating procedures potential safety risks of the investigational drug and corresponding
medical management measures compensation plans for trial-related harm and privacy and information confidentiality measures
In 2025 the Group continued to improve and optimize the quality management and and must give participants sufficient time to consider. If participants agree to participate in the trial the Group will require them to
systems for R&D manufacturing commercial operations and use with a total of 391 sign an Informed Consent Form clearly informing participants that they have the right to know and the freedom of choice and may documents revised refuse or withdraw from the trial at any time. During the project supervision process clinical monitoring quality control and audit
296 new documents added personnel must pay close attention to the compliance of operations such as ethics approval informed consent form signing and
informed consent process recording building a comprehensive barrier to protect the legitimate rights and interests of participants.Meanwhile we provide necessary supportive services for specific populations to participate in clinical trials including medical visit
guidance transportation subsidies and medication collection to enhance their convenience and accessibility in participation.
4.5.1.1 R&D Quality Management
The Group strictly follows procedures such as the Drug Clinical Trial Adverse Event Monitoring and Reporting Management
Procedure and the Individual Safety Case Report Handling Procedure for Drug Clinical Trials to monitor adverse events in clinical
Joincare referring to the requirements of systems such as ISO 9001 and ICH Q10 continuously optimizes the processes throughout trials in real time formulates emergency response plans promptly reports to regulatory authorities and purchases insurance for
product R&D and daily record management continuously improving its R&D quality management system. Each R&D unit is equipped every participant to ensure that clinical trial risks are controllable and managed according to standard. Through measures such as
with dedicated R&D Quality Assurance (QA) personnel to strictly control work at each stage including product project initiation R&D anonymization coding and dedicated management the Group strictly protects participants' identity disease information biological
management project operations technology transfer and daily supervisory inspections. samples and other data from disclosure. During the year the Group continuously optimized its clinical trial management system
under the framework of the UN SDGs with no ethical violation incidents or regulatory penalties occurring.In 2025 combining the latest domestic and international regulatory requirements with actual R&D management practices the Group
systematically optimized its R&D quality management system comprehensively completing the revision and addition of system
documents to strengthen quality management across the full R&D process at the institutional level. In terms of system and process
building the organizational structure was optimized and processes for technology transfer external communication and training
management were improved strengthening qualification review and process management of outsourced research partners. In
terms of laboratory and material control equipment computer room and technical service management procedures were revised
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4.5.1.2 Manufacturing Quality Management
Joincare strictly complies with national laws and regulations establishing a comprehensive manufacturing quality management
system in accordance with the Drug Administration Law of the People's Republic of China the Drug Production Supervision and Table: Joincare Group Quality Management System Certification Status
Administration Measures and the Good Manufacturing Practice (GMP) for Pharmaceutical Products. It continuously optimizes the
manufacturing quality management system construction in accordance with international standards promoting its subsidiaries to Certification Type
undertake international standard certification committed to creating products with high competitiveness in international markets.
7 subsidiaries certified to GB/T 19001-2016 / ISO 9001:2015
The Group actively cooperates with external regulatory inspections and timely rectifies quality management issues identified
continuously improving quality management levels. In 2025 the Group accepted a total of 97 external regulatory inspections with all 1 subsidiary certified to ISO 22000:2018
inspection results indicating compliance and no major or critical deficiencies identified. 2 subsidiaries certified to ISO 13485:2016
1 subsidiary certified to ISO/IEC 17025:2017
Registrations and Certifications
1 subsidiary accredited to CNAS-CL01
As of the end of the Reporting Period the production lines and related products of the Group and its subsidiaries comply with
GMP regulations; the Group's headquarters and multiple manufacturing subsidiaries have passed quality management system Product Testing Capabilities
certifications.All of Joincare's manufacturing subsidiaries are equipped with various laboratories capable of meeting the testing requirements
Table: Joincare Group Global Certification Status for the drugs they manufacture. The laboratories are equipped with high-precision instruments such as liquid chromatography
high-resolution mass spectrometers triple-quadrupole liquid chromatography-mass spectrometers triple-quadrupole gas
chromatography-mass spectrometers inductively coupled plasma mass spectrometers X-ray diffractometers ion chromatographs
Item Status as of End of Reporting Period and high-performance liquid chromatographs. These support the manufacturing subsidiaries in independently completing multiple
testing tasks meeting the analytical needs of rapid product inspection and innovative drug R&D processes comprehensively
safeguarding product quality and safety. The Group's Analytical Testing Center provides testing for innovative drugs and high-
15 varieties passed international certification on-site inspections end complex formulations within the Group and supports compatibility studies and testing for product packaging materials
Active ensuring that all product test results fully comply with quality management requirements. The Group's Analytical Testing Center has
Pharmaceutical 44 varieties holding international certification certificates within validity period (of successfully passed accreditation by the China National Accreditation Service for Conformity Assessment (CNAS) signifying that the
Ingredients
International (APIs) which 6 varieties with FDA on-site inspection 17 varieties with Certificate of Group and its subordinate manufacturing subsidiaries' testing centers have the technical capability to conduct testing in accordance with the ISO/IEC 17025 system.Certification Suitability to Monographs of the European Pharmacopoeia)
Certificates
Case
8 varieties passed international certification
Formulations Joincare Successfully Overcomes Acarbose Nitrosamine Impurity Detection Challenge Technical
34 varieties holding international certification certificates within validity period Breakthrough Safeguards Drug Safety
Joincare views technical capabilities as an important responsibility for safeguarding drug safety and driving innovation. In
2025 when undertaking the nitrosamine impurity detection task for the subsidiary's acarbose project the Group's Analytical
Testing Center proactively tackled the challenge in the face of widespread failures by external institutions. Based on its
Table: Joincare Group Production Line GMP Compliance Status advanced analytical platform the team systematically conducted methodological research and ultimately established a
dedicated sensitive and stable detection protocol. This breakthrough not only resolved the project registration risk but also
Item Status as of End of Reporting Period demonstrated the Group's transformation from "compliant testing" to "technical leadership" committed to resolving quality
challenges in frontier R&D. This internally-developed technical capability provides solid support for new drug development
Active Pharmaceutical Ingredients 82 production lines compliant with GMP regulations assisting in the efficient safe and reliable launch of products genuinely fulfilling the quality commitments to patients and
business partners.GMP Certification Formulations 65 production lines compliant with GMP regulations
In Vitro Diagnostic Reagents 7 production lines compliant with GMP regulations
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Case 4.5.1.3 Commercial Operations Quality Management
Joincare Haibin's Quality Control Capability Improvement
Joincare strictly complies with the Good Supply Practice (GSP) In 2025 multiple key traceability validation
In 2025 Joincare Haibin continued to optimize its quality management capabilities. Two new walk-in constant temperature for pharmaceutical operations and has established a series of indicators of the Group were successfully met
and humidity chamber systems were activated at Joincare Haibin strongly supporting long-term stability studies and quality management systems including the Procurement Management effectively safeguarding the traceability and
traceability work for products. For multiple formulation types including sprays tablets capsules dry suspensions and Policy Sales Management Policy Product Receipt Management compliance of drugs in the distribution process:
injections Joincare Haibin added detection items for key quality attributes such as fine particle dose dissolution and crystal Policy Product Storage Management Policy Product Outbound
form. Simultaneously a focus was placed on advancing dissolution profile research and in vitro consistency evaluation for dry First-tier distributor effective registration rate Management Policy and Drug Traceability Management Policy
powder inhalers; through systematic comparison and simulation of clinical use conditions product efficacy consistency and reachedimplementing comprehensive quality control over all aspects of
medication safety were effectively ensured providing reliable data support for R&D and manufacturing. pharmaceutical procurement storage sales and transportation. 100 %
Through digital means of the "On-code"( 码上放心 )drug traceability Manufacturer outbound validation rate was
information system we ensure that "each drug has a code and both
The Group also actively conducts preventive testing and conducts in-depth research on potential impurities that may arise from the drug and its code can be traced" and present the traceability 99.34 %
product formulations and manufacturing processes. From both safety and quality perspectives the Group identifies emerging data of drugs throughout the process in real time. At the same First-tier distributor inbound validation rate
product issues and promptly optimizes production elements such as formulations processes packaging and storage to timely time the Group's Quality Management Department Storage and reached
control potential product risks at the source. The Group continuously monitors the latest industry requirements regarding product Transportation Department and Sales Department work in close 99.92 %
quality and stakeholder expectations and will engage qualified third-party institutions for quality testing when necessary. coordination to continuously monitor the full process of barcode
scanning for drug inbound and outbound operations and to track
barcode processing activities across upstream and downstream
Case enterprises.Joincare Builds Quality Foundation Through Preventive Testing The Group has continued to leverage the electronic drug inspection report function on the "On-code" platform in conjunction with
all manufacturing enterprises enabling the online circulation and retrieval of drug inspection reports. In parallel the Group has
In response to increasingly stringent regulatory requirements for drug polymorph control Joincare has moved beyond optimized the inventory management data reporting functions as well as the goods receipt inspection and maintenance process
reactive testing to proactively establish cutting-edge analytical capabilities. For the Pixavir Marboxil dry suspension (pediatric modules within its SAP system thereby improving the efficiency of drug traceability operations.formulation) project the Group's Analytical Testing Center took the lead in developing and validating X-ray Powder Diffraction
(XRPD) and polymorph quantification methods to ensure control of critical quality attributes. Building on this foundation the In terms of package insert and labelling management the Group strictly manages the design use and revision of product package
Analytical Testing Center successfully obtained CNAS accreditation for "Pixavir Marboxil Capsules Polymorph Content Testing" inserts and labels in accordance with laws and regulations and internal management procedures such as the Technical Guidelines
becoming one of the few laboratories in China with this qualification. This breakthrough enables the Group to issue polymorph for Clinical Changes of Marketed Chemical Drugs and Biological Products and the Change Management Procedure. The Group
data with legal validity and international mutual recognition advancing from "meeting standards" to "supporting standard- continuously strengthens internal risk management of drug package inserts and labels standardizing the entire process of their
setting." By proactively addressing industry-wide challenges Joincare has established a technical advantage for quality design use and revision. All revisions are uniformly initiated by the MAH for sample design and design drafts must be strictly
assurance throughout the entire lifecycle of innovative drugs ensuring quality leadership across the full product lifecycle. reviewed and approved by the MAH's sales manufacturing and quality departments and other relevant departments. For revisions
involving drug use safety and efficacy information approval from the national drug regulatory authority is required to maximize the
objectivity scientific validity and accuracy of drug information.The Group classifies changes based on their level of impact and risk level on the drug's safety efficacy and safe and effective clinical
Case use. If a change involves drug safety information or pharmacovigilance plan items the Pharmacovigilance Department will strictly
manage the change in accordance with the Drug Package Insert Safety Information Change Procedure conducting collection review
Jiaozuo Joincare Enhances Testing Capabilities and Strengthens Quality Control and assessment of drug safety data and submitting to the Drug Safety Committee for review and confirmation making every effort
Jiaozuo Joincare has established comprehensive quality standards and testing operating procedures for all products to ensure patient medication safety.in accordance with national regulations pharmacopoeias of various countries and customer requirements. The facility
currently possesses full-item testing capabilities for 7-aminocephalosporanic acid (7-ACA) deacetyl-7-aminocephalosporanic
acid (D-7ACA) demeclocycline hydrochloride (DH) 4-acetoxyazetidinone (4AA) and mycophenolic acid (MC). In 2025 Jiaozuo Case
Joincare completed a total of 6894 batches of full-item testing for core products along with 7990 batches of raw and auxiliary
material inspections and supporting stability studies. Taitai Pharmaceutical Supplements and Improves Package Insert and Labelling Information
In response to equipment changes for D-7ACA production Jiaozuo Joincare conducted process validation with a focus on In 2025 in accordance with the requirements of regulations issued by the NMPA including the Drug Administration Law of
testing product uniformity to ensure quality stability. Meanwhile in response to stakeholder concerns Jiaozuo Joincare the PRC the Special Provisions for Traditional Chinese Medicine Registration Administration and the Technical Guidelines
engaged third-party institutions to conduct specialized monitoring of protein residues in 7-ACA elemental residues in for Revising Safety Information in Package Inserts for Marketed Traditional Chinese Medicines (Trial) Taitai Pharmaceutical
D-7ACA and aflatoxin residues in DH. Additionally Jiaozuo Joincare introduced third-party authoritative testing institutions supplemented and improved the "Adverse Reactions" "Contraindications" and "Precautions" sections of the package inserts
to conduct comprehensive compliance monitoring of process water used in production ensuring compliance with both and labels for Jingxin Oral Solution and Taita Menstrual Pain Relief Oral Solution further improving the scientific quality and
production requirements and national standards. transparency of product information. This helps to guide rational clinical drug use and protect patient medication safety.
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4.5.1.4 Pharmacovigilance
Joincare strictly follows the requirements of GVP establishing a Drug Safety Committee chaired by CEO with members including the devices. These training sessions effectively help newly onboarded employees in the Pharmacovigilance Department to keep up with the
heads of pharmacovigilance clinical medicine quality management registration formulation medical and marketing departments. latest regulatory developments become familiar with the company's adverse event collection assessment and reporting processes
The Drug Safety Committee has formulated clear working procedures and is responsible for major risk assessment emergency and clearly understand the responsibilities of each relevant department in the system.response to urgent or major drug safety incidents risk control decisions and other key pharmacovigilance matters.In 2025 the Group conducted 2 special pharmacovigilance system training sessions for new employees and organized 1 general
The Group conducts pharmacovigilance activities in a standardized manner with reference to the Pharmacovigilance Inspection pharmacovigilance training for all employees further strengthening company-wide awareness of the importance of pharmacovigilance
Guidance Principles and has established a pharmacovigilance system that meets relevant laws and regulatory requirements and and consolidating the foundation of medication safety responsibility.the needs of the Company's development strategy. In 2025 the Group updated operating procedures and documents such as the
Risk Management Plan Management Procedure Drug Safety Signal Detection Management Procedure Individual Safety Case Report 4.5.1.5 Product Recall
Handling Procedure for Drug Clinical Trials and Development Safety Update Report Management Procedure further standardizing
the operation of the pharmacovigilance system. The Group continues to apply its digital drug safety management system which
has achieved automatic identification and prioritization of drug safety signals significantly improving the timeliness and accuracy To ensure the effectiveness of the drug recall management system Joincare has established a simulated recall mechanism conducting
of signal detection and enhancing the efficiency of the Group's pharmacovigilance work. Simultaneously the Group continuously simulated recall drills every two years implementing drug risk management plans to ensure that post-marketing risk management
optimizes its enterprise collaboration platform and intelligent AI tools effectively improving the scientific quality and overall efficiency activities for drugs comply with relevant pharmacovigilance regulations and that product quality meets intended use and registration
of pharmacovigilance work providing strong support for safeguarding patient medication safety and the Company's compliant requirements. The Group has formulated the Drug Recall Management Procedure to guide product recall work when quality issues or
operations. other safety hazards are identified in drugs; and has classified drug recalls into three levels — Level 1 Level 2 and Level 3 — based on
the severity of drug safety hazards activating the corresponding recall procedure according to the real-time situation. Over the past six
years Joincare has had no incidents requiring the recall of sold or shipped products for safety or health reasons with a total product
recall count of 0.Case
Drug Safety Committee Meeting Case
In 2025 the Group continued to hold routine Drug Safety Committee meetings comprehensively reviewing annual product safety Haibin Pharma Improves Recall Mechanism and Strengthens Emergency Response System
data conducting in-depth analysis and assessment of potential drug risk signals identified and focusing attention on the adverse
event monitoring status of medical devices held by the Company comprehensively ensuring the safety management of drugs and In 2025 Haibin Pharma revised its Product Recall procedure further clarifying the responsibilities for recall adding requirements
medical devices. for reporting to the company's person in charge and prior communication with regulatory authorities enhancing the
standardization and transparency of the recall process. Simultaneously Haibin Pharma updated its Emergency Plan for Major
Product Safety Incidents formulating the 2025 Company Drug Safety Incident Emergency Drill Plan in accordance with the Drug
The Group places great importance on product adverse reaction management. In addition to collecting adverse events through the Administration Law and relevant contingency plans; through conducting emergency drills and simulated recalls it continuously
National Adverse Drug Reaction Monitoring Center the Group has opened up multiple additional channels specifically for collecting improved its collaborative response and emergency handling capabilities.adverse reaction information including a 400 hotline the official Joincare website dedicated pharmacovigilance email addresses
and extensions sales feedback and QR codes printed on package inserts. Simultaneously the Group regularly searches relevant In 2025 Haibin Pharma conducted Level 1 simulated recall drills for Meropenem for Injection targeting both the international
professional websites or reviews literature to collect adverse reaction information on similar products ensuring comprehensive market and the domestic market respectively including cross-border recalls for export batches and domestic recalls for domestic
collection of product adverse reactions and reporting to regulatory authorities as required by law. batches. Both drills were completed on schedule; the recalled quantities were accurate the processes were smooth and system
records were complete effectively validating the high efficiency traceability and cross-border collaboration capability of the
In 2025 the Group continued to actively advance post-marketing clinical studies and proactively conduct adverse reaction information Company's recall mechanism indicating that the existing system can respond rapidly and reliably to actual recall needs.collection. Through post-marketing clinical studies in actual drug use scenarios the Group more comprehensively and deeply observes
the use effects of drugs and possible adverse reactions that may occur further expanding the sources of adverse reaction information
collection and helping to more comprehensively understand the safety profile of products. The Group classifies collected adverse
events conducts scientific and objective assessments of the expectedness seriousness and causality between the drug and suspected Case
adverse reactions and promptly reports to regulatory authorities in strict accordance with regulatory requirements. Simultaneously the
Group conducts signal analysis on all adverse events regularly assesses the safety profile of products and promptly takes risk control Taitai Pharmaceutical Drug Simulated Recall Drill Comprehensively Validates Emergency System Effectiveness
measures to effectively safeguard public medication safety.From June to July 2025 Taitai Pharmaceutical organized a drug simulated recall drill in accordance with regulations such as
The Group actively participates in industry exchanges proactively benchmarks against regulatory requirements and industry best the Good Manufacturing Practice for Pharmaceutical Products and the Drug Recall Management Measures. The drill was led by
practices and continuously improves professional pharmacovigilance capabilities. In 2025 the Group participated in the GVP the quality responsible person with a special team established jointly by manufacturing sales storage and transportation and
online training organized by the Senior Training College of the NMPA conducting in-depth study of the latest regulatory policies and other departments with clear division of responsibilities. The drill completed notification and filing for customers user units and
implementation key points. regulatory authorities within 72 hours via email and telephone with regular progress tracking and ultimately confirmed that all
products had been sold out with no inventory available for recall and accurate production and sales data. This drill effectively
The Company organized multiple internal pharmacovigilance thematic training sessions covering core knowledge areas including validated the efficiency of the recall process in terms of instruction transmission information traceability cross-departmental
MedDRA coding adverse event causality assessment risk management plan writing and Development Safety Update Report (DSUR) collaboration and regulatory interface further strengthening the Company's emergency response capability for product safety.preparation encompassing fundamental theory regulatory requirements and practical operational skills with systematic review
incorporating the Pharmacovigilance Inspection Guidance Principles and key points for monitoring adverse events from medical
63 2025 Sustainability Report 64About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
4.5.1.6 Quality Auditing 4.5.1.7 Product Liability Design
To continuously optimize the Group's quality system construction the Group regularly formulates quality audit plans covering As an important driver and beneficiary of the green transformation strategy Joincare ensures that green and low-carbon concepts
all manufacturing commercial operations and R&D companies; and conducts special audits based on management needs and are deeply integrated into new product development comprehensively considering quality safety health and environmental
external regulatory trends. protection elements throughout the product lifecycle. The Group strives to minimize the negative impact of products on the
environment and society throughout all stages of R&D manufacturing transportation sales use and disposal while meeting
The Group conducts quality audits of manufacturing companies at least twice a year with reference to GMP regulations and the customer needs and providing high-quality products. Through implementing green supply chain management the Group assists
Supplier Quality Assessment Procedure. The Group conducts quality audits of contract manufacturers of high-risk products (such upstream and downstream supply chain factories in implementing green manufacturing achieving coordinated improvement of the
as sterile formulations) at least twice a year and once a year for contract manufacturers of non-sterile formulations. For issues green level across the full supply chain and contributing to the construction of a green low-carbon and circular economic system.identified the Quality Management Department Initiates Corrective and Preventive Action (CAPA) processes and tracks rectification
progress through regular reporting mechanisms to ensure closed-loop resolution and continuous improvement.In 2025 the Group jointly organized audit teams with subsidiaries to conduct a total of over 30 quality audits of subsidiaries and
contract manufacturers covering modules including production systems packaging systems material systems equipment and R&D and Design Phase Manufacturing Phase
facilities systems quality assurance systems quality control systems environmental protection and occupational health and
safety and supervised contract manufacturers in rectifying deficiency items identified during audits. The Group also organized self- The Group analyzes and identifies potential social and The Group has formulated and implemented management
inspection or internal audit teams in accordance with the Self-Inspection Management Procedure and the Quality Management environmental risks throughout the entire product lifecycle documents such as Environmental Factor Identification
System Internal Audit Management Policy and Operating Procedure to conduct comprehensive self-inspection or internal audit managing these as strictly as possible from the source. For and Evaluation Control Management identifying energy
activities of the R&D manufacturing and sales quality management systems. example the Group identified that inappropriate selection of and water resource consumption emissions waste and
Simultaneously the Group and its subsidiaries actively cooperated with quality audits from domestic and international regulatory raw materials and ingredients during product development other environmental impact factors involved in the product
authorities and customers analyzed deficiency items raised by external experts and promptly carried out rectifications continuously may cause serious harm to the environment. Therefore manufacturing process. Importance assessments are
optimizing quality management levels. In 2025 the Group conducted a total of 89 external audit inspections including third-party the Group has strengthened its attention to and review conducted around their generation frequency toxicity degree
audits (ISO 9001 annual audits) drug re-registration on-site inspections GMP conformity inspections and supervision inspections of environmental impact factors of raw materials having of mitigation control measures and impact on stakeholders
with all inspection results indicating pass. For deficiency items identified during self-inspections and internal and external audits the relevant departments assess the potential environmental with product design plans adjusted or corresponding control
Group and its subsidiaries use quality risk management tools such as fishbone diagrams fault trees and FMEA to promptly carry out pollution and other negative impacts of product raw mechanisms established based on assessment results to
root cause analyses and risk assessments and formulate corrective and preventive measures for deficiency items to improve quality materials and advocating the use of non-toxic materials or reduce the negative impact of products on the environment
management capabilities. minimizing the proportion of toxic materials used. during the manufacturing stage.The Group also implements strict quality management over external partners. The Quality Management Department leads external
quality audits of material suppliers contract manufacturers and service providers and jointly conducts regular supervision of their
manufacturing management laboratory controls and materials management with the Production Management Center. Product
Product Use Phase Transportation and Distribution Phase
quality-related complaints are handled uniformly by the Quality Management Department; the Prescription Drug Business Division
is responsible for after-sales service customer feedback collection and satisfaction surveys forming an external quality supervision
mechanism that is coordinated internally and externally and responds in a timely manner. The Group analyzes the environmental and social impacts The Group focuses on potential harm that hazardous
of the product use phase based on lifecycle management chemicals may cause to human health and the environment
principles ensuring that product design and material sorting identifying and classifying all chemicals involved in
selection do not violate any environmental and social laws the product transportation and distribution phase minimizing
and regulations. the use of hazardous chemicals as much as possible. For
necessary chemicals the Group has also established strict
chemical storage transportation and use regulations to
minimize the hazard risks of hazardous chemicals throughout
the product lifecycle.Recycling and Disposal Phase:
The Group identifies elements in the product recycling and disposal phase that may have negative environmental impacts
through the Environmental Factor Identification and Evaluation Control Management document advocates minimizing the
use of such elements in the design phase and formulates standard handling procedures for irreplaceable elements guiding
relevant parties to properly handle them and minimizing negative environmental impacts.
65 2025 Sustainability Report 66About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
4.5.2 Employee Quality Training Case
Joincare places great importance on product quality training and advocacy establishing employee quality training management Jiaozuo Joincare Conducts GMP Practical Skills Training
procedures based on standards such as GMP GSP GVP and CNAS and formulating annual quality training plans covering all
Jiaozuo Joincare strictly follows GMP regulations to build a quality training system covering all employees and formulates
employees. The Human Resources Department is responsible for organizing and supervising employee education and training and
annual special training plans. Jiaozuo Joincare promotes a training model integrating tiered instruction practical exercises
establishing health files. The Quality Management Department is responsible for maintaining the roster of quality-related personnel
digital tool application and assessment feedback simultaneously carrying out quality culture activities to continuously
dynamically updating personnel information tracking the implementation of training plans and establishing training archives. The
strengthen employees' quality awareness. In 2025 Jiaozuo Joincare organized over 590 quality and safety training sessions
Group incorporates the implementation of annual training and the completion of training for key position personnel into quality
achieving 100% employee participation with a total accumulated training duration of over 572 credit hours effectively
management work reports ensuring continuous improvement and effective traceability. In addition the Group improves employees'
ensuring the standardized and efficient operation of the quality management system.product quality management capabilities and awareness through diverse training formats such as quality micro-courses fun sports
competitions online knowledge competitions and operational skills competitions. In 2025 Joincare continuously conducted
product quality and safety-related training sessions with employee coverage reaching 100%.Case
The Group and its subsidiaries hold annual Quality Month activities for all employees; conduct multiple specialized customized
training sessions monthly for all personnel under the quality system covering quality management R&D management 2025 Joincare "Quality Month" Activity
manufacturing management sales management and pharmacovigilance management; and add relevant law and regulation
training and assessments quarterly to strengthen relevant employees' understanding of changes in external regulations and quality In 2025 to strengthen company-wide quality awareness the Group conducted its annual "Quality Month" activity for all
standards and improve employees' professional skills and quality. employees as usual. In September under the theme of "Full Chain Quality Manufacturing·Intelligent Innovation for the
Future — Building a New Drug Quality Integration Ecosystem" Joincare organized a series of quality special activities for all
employees at the Group's headquarters and its 6 subsidiaries.To promote the accumulation of daily quality culture and internal knowledge sharing Joincare has built a quality management
training platform that centrally collects excellent daily training videos typical case studies and other learning materials from The activities included six major sections: "Knowledge Training" "Daily Practice" "Quality Knowledge Challenge
subsidiaries uploading them to the platform for sharing and learning by all Group employees. Competition" "Compliance at Every Stage Quality is Visible" "Quality Story Exchange" and "Fun Quiz" aimed at deepening
employees' understanding of compliance requirements strengthening quality responsibility awareness and driving the
In 2025 the Group actively participated in multiple external professional training sessions organized by drug regulatory authorities integration of quality management strategy into every business aspect. Simultaneously this activity actively explored the
and certification bodies covering areas such as GSP implementation MAH contract manufacturing supervision qualified person integration path of AI technology with the pharmaceutical field empowering quality management and pharmaceutical
performance of duties internal auditor qualifications and improvement of enterprise management representative capabilities innovation through digital means consolidating the compliance foundation and supporting the Group in achieving high-
simultaneously strengthening quality environmental and occupational health and safety management system capability building quality development.and genuinely fulfilling the enterprise's primary quality responsibility.Case
Xinxiang Haibin Actively Participates in "Full Chain Quality Manufacturing·Intelligent Innovation for the
Future" Quality Month
In 2025 Xinxiang Haibin systematically conducted company-level and department-level training in accordance with its annual
training plan and through diverse formats such as daily regulatory knowledge sharing continuously improved employees'
professional capabilities and compliance awareness in product quality management. Under the Group's unified deployment
Xinxiang Haibin actively participated in the Quality Month activity themed "Full Chain Quality Manufacturing·Intelligent
Innovation for the Future — Building a New Drug Quality Integration Ecosystem" organizing employees to deeply study
full-chain content covering quality management R&D manufacturing sales and pharmacovigilance and participate
in interactive learning such as "Daily Practice" further strengthening company-wide quality awareness and the
conscientiousness of standardized operations laying a solid foundation for effectively preventing and controlling quality risks
and consolidating the Company's overall quality management system.Joincare "Quality Month" Activity
67 2025 Sustainability Report 68About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
4.5.3 Intellectual Property Protection 4.5.4 Customer Rights Protection
Joincare attaches great importance to the protection of intellectual property rights continuously improving its intellectual property Joincare upholds the philosophy of responsible marketing to convey truthful and effective pharmaceutical information to
protection management system construction strictly complying with laws and regulations such as the Patent Law of the PRC the customers fully respecting and understanding user needs to improve customer satisfaction and elevate the Group's service quality
Patent Examination Guidelines and the Implementation Measures for the Early Resolution Mechanism for Drug Patent Disputes (Trial). level across multiple dimensions.The Group has formulated and implemented management documents such as the Intellectual Property Emergency Plan Policy and
the Intellectual Property Education and Training Policy clearly defining the response mechanism for patent infringement training
responsible departments and implementation methods genuinely improving the Group's intellectual property management and 4.5.4.1 Responsible Marketing
operational level and strengthening employees' intellectual property protection awareness. The Group always respects others'
innovations and is committed to creating a mutually beneficial and trustworthy R&D innovation ecosystem.The Group continuously improves its intellectual property system construction actively promoting the conversion and application The Group strictly complies with laws and regulations including the Advertising Law of the PRC the Anti-Unfair Competition Law of
of R&D achievements. Through diverse protection methods including patents trademarks copyrights and trade secret protection it the PRC the Personal Information Protection Law of the PRC the Measures for the Review and Administration of Advertisements
continuously optimizes and improves the Group's intellectual property protection strategy. As of the end of the Reporting Period for for Drugs Medical Devices Health Foods and Foods for Special Medical Purposes and relevant laws and regulations in the regions
inhalation formulation products the Group has applied for 131 related patents including 71 invention patents 49 utility model patents where it operates committing to providing accurate product information that is consistent with actual conditions during market
and 11 design patents. A total of 106 patents have been granted including 47 invention patents 48 utility model patents and 11 design promotion and marketing activities. The Group has formulated and publicly released the Responsible Marketing Policy clearly
patents. defining requirements for all Group employees (including full-time part-time and temporary employees) in conducting marketing
activities including complying with industry laws and regulations adhering to the Company's relevant marketing advertising and
Joincare's Intellectual Property Holdings sales systems accurately disclosing information protecting customer privacy and fulfilling environmental protection and social
responsibilities. Simultaneously the Group has formulated internal systems such as the Joincare Sales Personnel Code of Conduct
to regulate the marketing conduct of relevant employees. In 2025 the Group continued to optimize the Joincare Prescription Drug
Number of valid patent applications as of 31 December 2025 Number of valid patent grants as of 31 December 2025 Compliance Management Policy committed to building a full-process compliant operations system clearly defining the compliance
415 1143 obligations and management principles for all departments of the Business Division all employees and business partners regulating marketing conduct through institutional standards and adhering to the philosophy of responsible marketing.
Of which: number of invention patents 355 Of which: number of invention patents 630
Number of valid patents during the Reporting Of which: invention patent Of which: invention patent
Period applications grants The Code of Conduct for Sales Personnel of Joincare is summarized as follows
96 71 53 Strictly abide by national laws and regulations.
Strictly abide by the relevant provisions of Good Drug Business Practice.The Group formulates annual intellectual property training plans each year conducting phased popularization advocacy and professional Be honest and trustworthy in business activities and uphold fairness in competition. In business activities it
skills training for employees at different positions and levels. Content covers typical case analyses regulatory standards interpretations is strictly prohibited to interfere with or affect the rational clinical use of drugs by exaggerating the efficacy of
and practical operations genuinely improving company-wide intellectual property protection awareness and practical capabilities. The products making false and misleading statements concealing adverse drug reactions and other means.Group will continue to explore the application of new technologies such as artificial intelligence and big data in intellectual property
management improving patent layout risk early warning and result conversion efficiency. Simultaneously the Group deeply integrates The interests of enterprises and others shall not be harmed in business activities; the Group's business secrets and
intellectual property work into R&D and business processes actively responding to the national strategy for building a strong intellectual customer privacy shall be protected.property nation and driving the Group's high-quality sustainable development through continued innovation.Illegal activities such as commercial bribery shall not be conducted for sales.Case 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.AI Empowers Intellectual Property Training
In 2025 the Group used AI video production technology for intellectual property training launching an "Intellectual Property
Classroom" column that achieves online teaching through a combination of videos and literature. Employees can learn
intellectual property-related knowledge at anytime and anywhere without time restrictions improving the flexibility and
expanding the coverage of training. In 2025 the Group continued to advance responsible marketing practices strengthening risk prevention and compliance management.The Group optimized the approval and workflow processes for key business of each Business Division driving the shift of risk control to
the front end. In addition the Group established a new Joincare Business Division Compliance Department to specifically supervise and
Joincare takes an inclusive and open approach to exploring overseas markets. When promoting pharmaceuticals and reagents standardize sales conduct and ensure that marketing activities are lawful and compliant.to overseas markets in the future the Group will consider conditionally implementing the Doha Declaration on the Trade-Related
Aspects of Intellectual Property Rights (TRIPS) Agreement and Public Health. If suitable third parties make a request the Group In 2025 the Group had no non-compliance incidents related to product information and labelling nor any violations related to
will consider providing drugs developed by the Company to least developed countries and low-income countries through patent marketing and promotion. In 2025 the amount of losses caused to the Group by legal proceedings related to false marketing and
licensing under appropriate terms and conditions. promotion was RMB 0.
69 2025 Sustainability Report 70About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
Responsible Marketing Audit Business Division to receive compliance training and pass assessments and to sign anti-commercial bribery commitment letters; it
clearly advocates the requirements for responsible marketing and conducts multiple special training sessions covering compliant
Joincare continuously improves its responsible marketing audit system strictly regulating the approval processes for marketing promotion employee conduct standards and academic exchange guidelines ensuring all employees complete study and
activities requiring all marketing materials to be approved by company-authorized management personnel. The Group has formulated assessments to reinforce the compliance firewall for marketing. In addition the Group organized 2 drug and health food advertising
the Responsible Marketing Policy clearly defining Group marketing audit requirements and establishing a responsible marketing regulation training sessions for employees of the Joincare Health Care Business Division putting forward over 100 reasonable
materials review and supervision mechanism. The Group exercises control at every stage of product information and product suggestions and solutions genuinely improving the regulatory awareness and practical capabilities of the marketing team.promotion program design production and placement and regularly reviews marketing activities and related materials (including
planning programs promotional content and sales documents among others) to ensure they are truthful accurate and lawful and
contain no false or misleading information. Simultaneously the Risk Management Department regularly conducts internal audits to Case
assess policy implementation status ensuring that all marketing activities genuinely follow responsible marketing principles. Joincare Responsible Marketing Training
The Group strictly regulates responsible marketing review work complying with regulatory systems such as the Interim Measures for In 2025 Joincare conducted tiered training for all marketing personnel at different frequencies and with different focuses
the Review and Administration of Advertisements for Drugs Medical Devices Health Foods and Foods for Special Medical Purposes with a cumulative 1104 training participants and a training coverage rate of 100%. In 2025 the Group adopted diversified
requiring all external promotional content for health foods and drugs to be strictly submitted to the corresponding competent formats including online live streaming on-site instruction recorded playback learning and practical hands-on teaching to
authorities for approval. The Group closely tracks industry policy developments to promptly provide directional references for product conduct special responsible marketing training sessions with training content covering marketing team building product
planning and efficiently obtains authoritative advertising approval documents. The Group has also established a professional and knowledge brand promotion sales management and business skills. Simultaneously leveraging the knowledge base of
efficient marketing compliance consultation channel to provide timely support for employees. The Group actively collaborates the online platform and opening special courses such as "Online Instructor Improvement Training" the Group promoted
with external regulatory authorities and media to jointly review the compliance of materials used in brand promotion ensuring that the implementation of responsible marketing-related training practical exercises and assessments in a more flexible and
promotional content is lawful and standardized. efficient manner comprehensively improving company-wide compliance marketing awareness and professional capabilities.Compliance Review Process for Joincare's Marketing Campaigns
Material Review by relevant Review by Review Advertisement 4.5.4.2 Customer Satisfaction
production departments regulators by media distribution
Joincare attentively listens to the voice of customers and maintains close contact with customers through multiple channels.Produce publicity Review by the Business Submit advertising Carry out the second Distribute publicity The Group conducts quarterly satisfaction surveys for both online and offline customers collecting customer evaluations and
materials in strict Department Legal materials to relevant round of review by materials in suggestions on products and services across multiple dimensions including product efficacy satisfaction customer service and
accordance with Department and Internal regulators to obtain targeted media compliance with sales staff service satisfaction product safety satisfaction packaging satisfaction and willingness to recommend to others. Based on
the Measures for the Control Department to approval after review laws and regulations survey feedback the Company continuously optimizes product quality and service processes adhering to a customer needs-driven
Examination of Drug ensure that publicity and according to approach and continuously improving service experience and customer satisfaction. In 2025 Joincare's overall annual customer
Advertisements materials comply with marketing plans satisfaction rate reached over 97%.relevant policies and
regulations of the Group Customer Communication and Complaints
In 2025 the Group completed a total of 264 advertising approval tasks throughout the year effectively safeguarding the lawfulness The Group is committed to building diversified and efficient customer communication channels to promptly understand customer voices
and compliance of marketing promotion. In addition the Group conducted special annual internal audits with a core focus on key and respond to their needs and expectations. Through platforms such as the official website and official hotline complaint channels
areas such as anti-commercial bribery and business compliance with a focus on regulating employees' marketing conduct and the are established; dedicated after-sales personnel handle customer feedback provide reasonable solutions after fully understanding the
boundaries of interaction with healthcare professionals to eliminate non-compliant promotion. situation and follow up on handling progress throughout the entire process ensuring that customers' reasonable demands are effectively
resolved. Simultaneously the Group regularly sorts through high-frequency issues and coordinates with operations product logistics and
Responsible Marketing Training other relevant departments to drive targeted optimization and leverages AI technology to analyze problem root causes precisely locating
specific customer service personnel and service scenarios to continuously optimize service processes and quality.The Group regularly provides responsible marketing training for all employees and regularly conducts additional professional To strengthen the professional capabilities of the customer service team Joincare regularly organizes customer service personnel to
training for all marketing position employees covering areas including marketing regulations product knowledge laws and participate in customer service-related thematic training. In 2025 a total of 12 customer service training sessions were organized covering
regulations compliance risk and sales skills. Through training formats such as on-site exercises scenario simulations case analyses areas including platform rules product knowledge AI tool operations quality inspection processes customer service work order system
and regulatory interpretations the Group ensures that employees deeply understand and comply with the Group's marketing and operations invoice issuance processes and service quality improvement comprehensively improving the service quality and response
promotional systems avoiding exaggerated deceptive or false advertising and providing consumers with truthful and reliable efficiency of frontline personnel.product information.Joincare ensures that all employees accurately understand and effectively implement responsible marketing requirements through Customer Privacy Protection
annual compliance training and strict accountability mechanisms. Simultaneously the Group establishes internal review and
continuous improvement mechanisms and relying on digital management tools enables the compliance management system to Joincare strictly complies with laws and regulations such as the Civil Code of the PRC and the Personal Information Protection Law of
respond promptly to regulatory changes and business development needs effectively ensuring that the Company always operates the PRC establishing a comprehensive customer privacy and security risk management system to effectively safeguard the security
lawfully compliantly and with integrity. of customers' personal information. In terms of data collection the Group adheres to the principle of "minimum necessary" only
collecting personal data within a defined and limited scope and supporting customers in correcting their personal data at any time
Joincare is committed to strengthening company-wide compliance awareness and building a compliance training system covering through channels such as telephone and email. For scenarios involving sensitive or highly confidential information the Group signs
the full business chain. In 2025 Joincare continued to conduct responsible marketing training with 100% coverage of marketing confidentiality agreements with relevant partners and adopts necessary technical and management measures to ensure the security
position employees with the Health Products Business Division conducting 147 training sessions and the Prescription Drug and controllability of information throughout its entire lifecycle. In 2025 the Group had no incidents of infringement of customer privacy
Business Division conducting 141 training sessions. The Group requires all newly onboarded employees in the Prescription Drug rights or leakage of customer privacy data.
71 2025 Sustainability Report 72About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
PART
05
Supply Chain Security
Joincare values its long-term collaborative relationships with suppliers adhering to the
principles of integrity mutual trust and shared success to jointly build a stable and sustainable
supply chain. We strictly comply with the Tendering and Bidding Law of the People's Republic
of China and other relevant laws and regulations and continuously improve internal systems
such as the Procurement Control Management Procedure Supplier Management System and
Material Supplier Selection Operating Procedure to standardize procurement and supplier
management and clearly require suppliers to comply with the Group's standards of product and
service quality.SDGs in this section
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Geographical Distribution of Suppliers Dimensions of Supply Chain Risks Assessment of Joincare
We have formulated and issued the Supplier
Code of Conduct setting out the key principles 1.92% 0.30% Impact of Enterprise Enterprise financial Enterprise business Enterprise product
that suppliers should follow in areas including environment and
3.99% qualification status environment quality and servicebusiness ethics labor rights and human other EHS
rights health and safety and environmental 1.18%
protection and green development. At the Impact of national International Impact of international
same time we continuously review the 12.74% Impact of unusual Impact of major environmental protection trade environment finance and exchange
Group's procurement operations to ensure climate unexpected eventsregulations and policies and impact rates
that our selected suppliers comply with the
requirements of the Supplier Code of Conduct 8.68% 35.70%
in their business activities thereby avoiding 1%
potential ESG risks. Impact of social Impact of business Impact of workers' Impact of festivals
events ethics human rights
35.49%
Southern China Eastern China Northern China Central China Details of Joincare's significant suppliers
Northeast China Northwest China Southwest Overseas
Total number of unique Total number of unique Tier-1 Total number of unique significant
suppliers suppliers suppliers in Tier-1
5.1 Supplier Admission Management 3964 2977 366
Total number of unique significant Total number of unique Total number of unique significant suppliers
suppliers in non-Tier-1 significant suppliers supported with development measures
We uphold the principles of fair competitive bidding quality-first and diversified procurement methods and have established 177 543 9
a rigorous supplier admission mechanism. Employing diverse approaches including written surveys and product testing we
conduct comprehensive assessments of potential suppliers across dimensions such as quality control capability supply stability
and environmental and risk management to gain a thorough understanding of their qualifications and capabilities. Under equal We determine the initial risk rating of suppliers based on the category of materials supplied. Existing suppliers are classified into
conditions we give priority to suppliers that have obtained relevant management system certifications such as ISO 9001 ISO three tiers — H M and L — and managed accordingly. Each year we conduct a comprehensive assessment of suppliers' product
14001 and ISO 45001 as well as other EHS-related certifications (e.g. Green Factory Cleaner Production Audit Work Safety quality risks material usage volumes the degree of material impact on product quality and the risk factors covered under the above
Standardization). Suppliers admitted to the qualified list are required to sign the Procurement Contract and the Supplier Quality risk assessment dimensions. Combined with the suppliers' annual quality review reports we re-evaluate and adjust their risk ratings.Assurance Agreement and to complete the Supplier Questionnaire the Supplier EHS Questionnaire and the Anti-Commercial
Bribery Agreement clearly setting out the quality assurance and environmental health and safety management responsibilities they
bear in the course of supply and committing to ensuring the stability and safety of material supply. For key materials we require H (High-risk materials) M (Medium-risk materials) L (Low-risk materials)
suppliers to provide third-party inspection reports and stability test data to ensure reliable performance consistent quality and
compliance with production and safety requirements.Materials with a direct impact on Materials with an indirect impact Materials impacting extrinsic quality
intrinsic drug quality such as Active on intrinsic drug quality such as or other quality attributes such as
Pharmaceutical Ingredients (APIs) excipients primar y packaging secondary packaging materials (outer
5.2 Supplier Classification and Risk Management used in pharmaceutical production materials (in direct contact with the packaging) etc.drug) and critical consumables used
in formulation/preparation
During the supplier evaluation and management stage we prioritize comprehensive identification assessment and management
of supply chain risks with assessment dimensions covering ESG impacts and business relevance. Regarding suppliers' ESG impact To safeguard production stability and product quality safety we have developed a comprehensive and systematic risk mitigation plan
we conduct assessments at three levels — country risk sector-specific risk and commodity-specific risk — to identify our significant and contingency arrangements across all stages of product manufacturing tailored to our supply chain and business conditions. In
suppliers and significant indirect suppliers. the procurement stage we have established and continuously refined a dual-sourcing scheme formulating policies on alternative
suppliers and designating alternative suppliers for raw and auxiliary materials key consumables and other materials to mitigate
supply disruption risks as much as possible. In the manufacturing stage while conducting formulation research we have established
active pharmaceutical ingredient (API) production bases actively developing API production processes to enhance our self-production
capability for key raw materials with the aim of achieving integrated "API + formulation" production. In addition the Group's multiple
production facilities distributed across the country can serve as backup plants for each other providing production support in the event
of an emergency.
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We continuously monitor inventory levels of production materials and have formulated the following risk response measures to Company Details
safeguard production stability from the source. Each production subsidiary also actively takes measures to address supply chain
stability risks: Xinxiang Haibin has adopted the following measures to effectively prevent product stockouts and short-
ages of qualified suppliers:
Sign strategic cooperation Formulate supplier For materials supplied by high- For key raw materials ensure a minimum of three qualified suppliers to maintain safe and stable supply
agreements with significant supplementation plans develop risk suppliers adopt a safety stock channels;
material suppliers to ensure stable and lay out suppliers in advance strategy and dynamically manage
Xinxiang Haibin Based on the cyclical market supply conditions of products each year make advance judgements on material supply and avoid sole-source supply inventory to ensure a reasonable market supply and demand and maintain a certain safety stock for scarce materials in advance to ad-
wherever possible stock level sufficient to meet six dress uncertainties arising from market changes;
months to one year of production Continuously seek out and develop new qualified suppliers to ensure diversification across multiple re-
needs. gions channels and sources addressing uncertainty risks arising from government policies and market
supply-demand dynamics.Company Details
Haibin Pharma actively promotes localized procurement formulating systems such as Supplier Selec-
tion Evaluation and Maintenance and Supplier Audit Management Procedure clearly prioritizing manu-
Joincare Haibin implements a diversified sourcing strategy to actively address supply chain stability facturers as suppliers to shorten the supply chain and improve response efficiency:
risks:
For starting materials raw and auxiliary materials inner packaging materials and intermediates that have Key raw materials auxiliary materials and packaging materials are sourced from multiple suppliers; Haibin Pharma cleanliness requirements for production Haibin Pharma strictly prohibits bulk-broken procurement from
production consumables maintain multiple qualified suppliers to choose from avoiding supply shortages distributors to ensure traceability of sources and controllability of quality;
and ensuring stable supply. When an existing supplier experiences short-term supply shortfalls due to
force majeure we require new suppliers to replenish sources in a timely manner to ensure uninterrupted While ensuring quality Haibin Pharma comprehensively considers price service and timeliness of
production continuously reducing the risk of supply interruption for raw materials auxiliary materials delivery when selecting suppliers in a scientific and efficient manner ensuring supply chain stability and
Joincare Haibin
and packaging materials. safety.For exclusively imported materials domestic suppliers are added to mitigate stability risks arising from
changes in the international situation or supplier-specific reasons causing delayed delivery. In 2025
we continued to develop domestic suppliers and following multiple rounds of screening and rigorous
quality assessments selected domestic suppliers with excellent qualifications and strong technical
capabilities to diversify supply sources and reduce the supply risk posed by overseas suppliers due to
international trade friction. 5.3 Supplier Audit and Evaluation
Taitai Pharmaceutical continuously reviews past cooperation models with suppliers and builds feasi-
ble schemes to mitigate supply risks addressing potential supply chain stability risks such as material Referencing the responsible supply chain management principles of the Pharmaceutical Supply Chain Initiative (PSCI Principles) and
shortages supply scarcity and delayed delivery: industry practices Joincare has formulated and implemented systems including the On-site Audit Management Procedure Supplier
Regularly review inventory status establish minimum inventory alert thresholds and make advance Quality Review Management Material Supplier Quality Audit Procedure and Supplier Management Procedure. In accordance
preparations for material procurement; with requirements we regularly conduct on-site reviews and desk assessments of suppliers' qualifications production premises
Regularly conduct written or on-site reviews of supplier qualifications and production premises to under- process technology and production facilities warehousing management quality management systems environmental protection
Taitai stand the latest operational status of suppliers and promptly assist them in resolving production difficul- and occupational health and safety management and clearly set out work requirements for the Group's supplier auditors to
Pharmaceutical ties; continuously improve the standardization level of supplier management. In addition where necessary we engage third-party
Establish long-term cooperation relationships with suppliers and sign annual procurement agreements professional organizations to conduct on-site audits of suppliers. We continuously strengthen management of key indirect suppliers
to ensure that suppliers deliver goods as required and reduce the risk of supply interruptions. by conducting on-site audits of the manufacturers of key products procured from distributors (i.e. the Group's significant indirect
suppliers) comprehensively inspecting production equipment and quality management conditions upstream in the supply chain
In 2025 Taitai Pharmaceutical continued to advance supply chain optimization striving to achieve du- to ensure that all capabilities of significant indirect suppliers meet our requirements. During the Reporting Year we further improved
al-supplier coverage for all raw materials auxiliary materials and key consumables so as to effectively the Supplier Management Procedure adding EHS-related content to the supplier questionnaire explicitly requiring suppliers to
ensure a stable supply of raw materials required for production lines and significantly reduce the risk of establish an EHS management system commensurate with their business operations to ensure they have basic management
production stoppages caused by a single supplier's supply disruption or material shortages. capabilities in the areas of environmental protection occupational health and safe production and to continuously fulfil their
corresponding responsibilities.
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We determine the frequency and form of supplier audits based on the risk category of the supplier. For management or quality
deficiencies identified during supplier audits we notify the supplier by means of a quality feedback notice and compile the audit 5.4 Supplier ESG Management
results into a Supplier Quality Audit Report requiring suppliers to implement rectifications item by item. We also continuously track
the progress of supplier deficiency rectification collecting rectification reports in a timely manner to drive suppliers to genuinely
improve their quality management. In 2025 in accordance with the annual supplier audit plan we conducted audits of a total of 562
Joincare adheres to responsible procurement continuously improving its supply chain ESG management system and
Tier-1 suppliers and on-site audits of 16 significant indirect suppliers.closely monitoring suppliers' sustainable development management capabilities and performance. The Board of Directors'
Sustainability Committee serves as the highest decision-making body responsible for overseeing the implementation
Joincare Supplier Audit Frequency and Form of the Group's supplier ESG management. In addition we have explicitly set out requirements for suppliers in terms of
environmental social and governance matters in the Supplier Code of Conduct and continuously strengthen the assessment
Supplier Classification Audit Frequency and Form and management of suppliers' ESG performance across the stages of admission review on-site audit and annual evaluation.H (High-risk materials) One on-site audit every 3 years At the supplier admission stage we investigate and score their EHS management and use the EHS score as one of the
important reference criteria for admission to the qualified supplier list. At the start of cooperation we organize suppliers to
M (Medium-risk materials) One desk audit on quality every 3 years and on-site audit when necessary study the specific requirements of the Group's Supplier Code of Conduct guiding them to conduct production and operations
in a more sustainable manner encouraging suppliers to obtain management system certifications such as ISO 14001 and ISO
L (Low-risk materials) Qualification information update 45001 and regularly verifying the validity of such certifications so as to reduce supply chain ESG risks. As at the end of the
Reporting Period a total of 779 suppliers of the Group and its subsidiaries had obtained environmental management system
certification and a total of 692 suppliers had obtained occupational health and safety management system certification.We also conduct an annual comprehensive supplier evaluation scoring suppliers in accordance with the Annual Supplier Evaluation
Form across dimensions including product quality delivery accuracy delivery timeliness and supplier service. The results of the annual At the supplier audit and evaluation stage we thoroughly review suppliers' ESG management and their implementation of
evaluation are classified into four grades: A B C and D. Among these Class C suppliers are required to undertake rectification within the Supplier Code of Conduct and share relevant ESG regulations and regulatory developments with suppliers during on-
a specified period; during the rectification period we reduce procurement volumes accordingly and reassess their qualification grade site audits. Suppliers found to have violated the Group's ESG standards during audits or evaluations who fail to carry out
after rectification is completed. Class D suppliers are classified as unqualified suppliers with cooperation terminated immediately rectification within our required timeframe will have their cooperation qualifications cancelled. In addition with respect to
and their supply qualifications cancelled for three years. The annual evaluation results serve as an important basis for the allocation supplier EHS management we have formulated the Supplier EHS Audit Management Procedure clearly setting out the content
of procurement volumes in the following year. Each subsidiary also adjusts its procurement proportions for the current year in a and management requirements for EHS audits of suppliers. Supplier EHS audits cover areas such as safety and environmental
reasonable manner based on its own operational needs and the results of the previous year's evaluation. In 2025 the Group conducted protection with content encompassing toxic and hazardous emission indicators such as particulate matter sulphide and VOCs
annual comprehensive assessment of a total of 191 unique significant suppliers via desk assessments/on-site assessments. None of emissions to review suppliers' management of indirect water pollutant discharge air pollutant discharge and environmental
these unique significant suppliers were assessed with substantial actual/potential negative impacts. noise. We organize annual supplier EHS audits and use the results as an important basis for the assessment of procurement
volumes in the following year thereby driving suppliers to improve their EHS management.We also actively organize employees in procurement-related positions to study the Group's supplier ESG management systems
Company Details gaining an in-depth understanding of the Group's ESG management requirements for suppliers across the three dimensions of
environmental social and governance. The relevant training has significantly enhanced procurement employees' awareness
In 2025 Joincare Haibin conducted quarterly evaluations of Tier-1 and Tier-2 material suppliers. Using of supplier ESG management and helps them incorporate sustainable supply chain management requirements into their daily
the Material Supplier Quarterly Scorecard and the Material and Supplier Evaluation Standards suppliers work implementing and effectively enforcing the various standards of supplier ESG management.Joincare Haibin
were assessed and scored on whether their supplied materials continuously meet the Group's require-
ments.In 2025 Jiaozuo Joincare optimized the annual comprehensive supplier evaluation mechanism by
introducing Feishu multi-dimensional tables and AI tools setting up standardized ledgers to integrate
feedback from procurement inspection and usage stages. The AI tool automatically scores based on
Jiaozuo Joincare preset rules and generates quarterly and annual evaluation reports as the basis for supplier classifica-
tion. Evaluation results are communicated to suppliers via automated email with copies sent to quality
and supply department heads to promptly drive rectification effectively improving evaluation and
management efficiency and ensuring stable supply chain operations.In 2025 Haibin Pharma conducted comprehensive evaluations of high-risk and medium-risk material
suppliers through a combination of on-site audits and written audits. The audit covered multiple dimen-
Haibin Pharma sions including the production quality management system and ESG indicators with a focus on identi-
fying potential compliance and operational risks and driving suppliers to continuously improve in areas
such as quality control sustainable development and social responsibility.
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Company Name Supplier EHS Audit 5.5 Supplier Capability Building
Joincare encourages suppliers to strengthen capability building and through training exchanges and collaboration helps suppliers
achieve comprehensive development through multiple channels. To ensure that our products are sourced safely and reliably we
Xinxiang Haibin has incorporated EHS audits into the annual supplier audit plan. The audits cover staff conduct at least one quality training per year covering all high-risk suppliers communicating the Group's quality standards and
occupational health and safety management wastewater pre-treatment waste gas treatment and solid
Xinxiang Haibin requirements to suppliers helping them analyzes existing areas for quality improvement and providing guidance on environmental
waste treatment. At the same time Xinxiang Haibin focuses on the supplier's treatment of toxic and protection and technology upgrading encouraging suppliers to formulate improvement plans and drive the implementation of related
harmful emissions reviewing its VOC emissions exhaust gas and other indicators. initiatives. We summarize quality issues identified during supplier audits and annual evaluations in a timely manner conducting
targeted training and communication sessions with suppliers to improve training efficiency. In addition we provide suppliers with
industry ESG benchmark data and in conjunction with remote and on-site support assist them in effectively implementing corrective
and improvement measures. Joincare has formulated an in-depth technical support plan instilling quality management approaches
such as 5S site management to genuinely enhance suppliers' overall capabilities and ESG performance. In 2025 the Group's supplier
quality training covered all high-risk suppliers.Jiaozuo Joincare carries out on-site supplier audits 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 Case
suppliers not certified by the ISO 14001 and ISO 45001 systems Jiaozuo Joincare provides professional
guidance and assistance to advance their sustainability efforts. By doing so the company aligns their Supplier Training Initiatives Across Joincare Subsidiaries
production activities with the demanding requirements in terms of EHS.Jiaozuo Joincare
During the Reporting Year Jiaozuo Joincare required suppliers to prioritize the use of new-energy vehi- In 2025 Joincare Haibin conducted quality improvement training for high-risk material suppliers communicating the Group's
cles for transportation; where this is not feasible vehicles meeting China VI emission standards or above quality management objectives to suppliers and strengthening their understanding of key quality management and EHS
must be used reducing emissions of nitrogen oxides particulate matter and other pollutants at the management points.source. Jiaozuo Joincare has strengthened low-emission requirements by establishing penalty mea-
sures for non-compliance building a full-chain traceable green supply chain management and control In 2025 Haibin Pharma conducted a total of 13 supplier quality training sessions communicating the Group's quality
system. management requirements to suppliers and strengthening quality management awareness to ensure that products are
sourced safely and reliably. In addition Haibin Pharma supports suppliers in enhancing their sustainable development
capabilities through approaches such as dispatching personnel to conduct on-site coaching for example conducting on-
site coaching for the anhydrous sodium carbonate (sterile grade) supplier on aseptic operating standards and following up
In supplier audits Haibin Pharma focuses on the certification and practical implementation of suppliers' on rectification and implementation.environmental and occupational health and safety management systems and conducts on-site inspec-
tions of key areas such as fixed pollution source emission management exhaust gas treatment facility In 2025 Jiaozuo Joincare conducted a series of systematic and targeted quality training activities for raw material
operations and waste disposal ensuring that suppliers comply with environmental regulations and EHS suppliers with training content centered on three themes: "New Employee Induction Quality Awareness Training" "5S
Haibin Pharma management requirements in their production and business operations. Management Training" and "Supplier Management Training" primarily covering Class A significant material and Class
During the Reporting Year Haibin Pharma strengthened environmental health and safety manage- B general material suppliers. Through case sharing interactive sessions and hands-on guidance the training helped
ment for suppliers by signing the EHS Notice Letter with significant suppliers clearly setting out the EHS suppliers gain a deep understanding of the importance of quality awareness master 5S site management methods and
standards they must observe in the course of production and business operations further standardizing clarify their responsibilities and requirements within the supply chain. Through two-way communication and experience
suppliers' principal responsibilities and promoting sustainable supply chain development. sharing the initiative not only enhanced suppliers' quality and EHS management capabilities but also strengthened the
collaborative partnership between us and our suppliers.Livzon Group a controlling 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 conser-
vation and emission reduction compliance with pollutant discharge standards compliance with solid
Livzon Group
waste collection 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.Jiaozuo Joincare Supplier Training
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PART
06
Employees
Joincare practices the core value of "people-centeredness" viewing talent as the key
resource and fundamental driving force for the Group's long-term sustainability. We are
committed to comprehensively safeguarding employees' legitimate rights and interests
actively creating a diverse equal and inclusive working environment and placing
great emphasis on listening to employees' voices and responding to their concerns. In
terms of talent management we systematically advance the construction of systems for
talent introduction development and incentivization continuously improving training
mechanisms and remuneration and benefits systems to fully leverage talent. At the
same time we attach great importance to occupational health and safety continuously
strengthening safe production management and health protection measures to create a
healthy safe and sustainable working environment.SDGs in this section
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6.1 Employee Rights and Interests
The Group has always regarded high-quality talent as the core competitiveness driving enterprise development and is committed to and the assessments did not identify any significant human rights-related issues. We also always remain vigilant about human
safeguarding employees' legitimate rights and interests improving employment management systems eliminating all forms of bias rights issues regularly conducting targeted training and keeping communication channels open to ensure that employees'
discrimination and harassment and creating a diverse and equal working atmosphere. As at the end of the Reporting Period the grievances receive adequate attention and response. In addition the Group has established an independent human rights
Group's total number of employees in service was 13575. grievance channel; all employees and related parties may report potential human rights risks or identified human rights issues
through the grievance hotline published on the company's official website. We strictly enforce the Whistleblower Protection
System to provide comprehensive protection for good-faith reporters and for verified violations we take measures including
6.1.1 Compliant Employment termination of employment contracts or referral to judicial authorities. At the same time to mitigate the negative impact
of such incidents on affected parties the Group also provides them with necessary assistance. For common grievances fed
back by employees through multiple channels the Group has established a rapid response and closed-loop management
We strictly comply with laws and regulations including the Labor Law of the People's Republic of China the Labor Contract Law mechanism driving targeted improvement plans to genuinely respond to employees' concerns and effectively improve
of the People's Republic of China and the Regulations on the Prohibition of Child Labor and have formulated the Code of Labor employee satisfaction and sense of belonging.Employment and Ethical Conduct 6 (the Code of Employment) which applies to all employees of the Group and its subsidiaries
(including full-time part-time and temporary employees) as well as all suppliers contractors service providers customers and
other partners with business dealings with the Group to continuously standardize employment management. We are committed 6.1.3 Diversity and Inclusion
to eliminating all forms of discriminatory behavior and the Code of Employment sets out in detail the reporting process for
discrimination and harassment incidents as well as disciplinary and corrective measures (please refer to Articles 5 6 and 8 of
Section III "Labor Management" of the Code of Employment). The Group is consistently committed to creating a diverse equal and inclusive workplace ecosystem viewing diversity and inclusion
We also continuously optimize human resources management systems and procedures including the Human Resources as core elements driving organizational innovation and sustainability. We have formulated and implemented the Diversity Equity
Management Procedure Training Management System Attendance and Leave Management System and Employee Handbook. and Inclusion Policy clearly specifying that the Board of Directors' Sustainability Committee is responsible for reviewing the policy
We sign labor contracts with employees on a voluntary basis clearly setting out the rights and obligations of both the Group and overseeing the Group's diversity performance and progress towards targets. We consistently adhere to the principles of fairness
and employees and consistently comply with laws and regulations in all aspects of employment. During the Reporting Year no impartiality and openness in recruitment and make selections assessments and promotions based on job requirements and
discrimination or harassment incidents occurred within the Group. candidate capabilities without differential treatment based on gender age ethnicity race nationality or religious belief eliminating
all forms of discrimination and bias and providing equal development opportunities for every employee.
6.1.2 Protecting Human Rights To deepen the implementation of these principles the Group has incorporated diversity equity and inclusion training into the
mandatory annual curriculum for all employees. Training content focuses on core topics such as eliminating unconscious bias cross-
cultural collaboration and communication and workplace anti-discrimination and anti-harassment adopting innovative immersive
The Group strictly adheres to the UN Universal Declaration of Human Rights and the core conventions of the International Labor teaching approaches such as case studies and scenario simulations to guide employees to actively practice inclusive values. At the
Organization (ILO) deeply integrating human rights protection and labor rights safeguarding throughout the entire value chain same time the Group has added a module on diversity values in new employee orientation using system interpretation and cultural
of corporate operations and supply chain management. We have formulated and publicly released the Code of Employment sharing to help new employees establish an equal and respectful understanding of the workplace from day one quickly integrating
clearly committing to the elimination of forced labor prohibition of child labor opposition to all forms of workplace into the inclusive cultural atmosphere. This training achieves full coverage from frontline employees to senior management
discrimination and harassment equal pay for equal work freedom of association equal consultation occupational safety ensuring that diversity and inclusion values permeate all levels of the organization.and health and other human rights protection clauses (please refer to Section II "Recruitment and Employment" and Section
III "Labor Management" of the Code of Employment) safeguarding employees' legitimate rights to freedom of association Based on actual business development needs the Group has set a quantitative diversity target of "no less than 49% female
and equal pay for equal work. The Group's Code of Employment and related commitments apply not only to all the Group's employees by 2032" and continues to strengthen the collection statistics and disclosure of workforce diversity indicators to ensure
business operation locations and all employees but also strengthen the management of human rights-related issues among that diversity-related efforts proceed in an orderly manner. As at the end of the Reporting Period the Group had a total of 6147
upstream and downstream suppliers and partners through the Code of Conduct for Suppliers. At the same time we regularly female employees accounting for 45.3% of all Group employees with female employees in management positions accounting for
conduct dedicated anti-discrimination and anti-harassment training for all employees strengthening awareness of employee 38.1%.rights protection and understanding of workplace conduct norms. In terms of material benefits promoting diversity we provide female employees with paid marriage leave maternity leave nursing
The Group has established a full-process human rights due diligence mechanism covering risk identification assessment leave and other statutory leaves and offer exclusive health check-up services for all female employees to enable timely identification
mitigation monitoring and reporting. In 2025 we conducted human rights due diligence targeting all employees of the of potential health issues so that corresponding preventive and treatment measures can be taken. At the same time we provide
Group and significant suppliers achieving 100% coverage of due diligence focusing on core dimensions such as labor child lactation rooms to support female employees returning to work after childbirth and offer paternity leave for male employees.labor freedom of association collective bargaining and workplace discrimination. The investigation found no human rights-
related risks; the relevant findings and improvement plans have been submitted to the Board of Directors' Sustainability
Committee for review. At the same time we conduct human rights assessments across all the Group's business operations
6 Code of Labor Employment and Ethical Conduct: https://www.joincare.com/news/402.html.
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Case The Group maintains a "zero-tolerance" principle on retaliation and strictly protects grievant information. The grievant protection
mechanism is a core component of the Group's Code of Employment aimed at continuously building and maintaining a working
International Women's Day Care Initiative environment of mutual trust and respect through fair and transparent procedures. Any retaliatory behavior found will be dealt with
seriously in accordance with the Group's internal regulations and relevant national laws and regulations. In addition we provide
In March 2025 on the occasion of Interna- psychological support and legal advisory services to complainants to help them cope with the psychological stress arising from the
tional Women's Day the Group launched a grievance process safeguarding the mental and physical health of complainants.care initiative delivering customized gifts
including flowers delicate snacks and
coffee to all female employees so that
they could feel respected and cared for as Protection Measures for Complainants
part of our commitment to creating a good
working atmosphere that respects and The information on whistleblowers and complainants as well as the content of reports and complaints should
cares for women. be strictly confidential. The materials and records of reports should be incorporated into confidential document
management. The settled cases should be filed.Women's Day Activity Receiving reports and complaints and verifying with relevant personnel such as whistleblowers and complainants
should be conducted in a confidential way without the identity of the personnel being disclosed.Any personal information including identity and rewards cannot be disclosed without the express consent of
whistleblowers and complainants.Case
Ethnic Minority Cultural Activities
We regularly conduct satisfaction surveys for all employees of the Group and its subsidiaries on an annual basis which cover
In 2025 the Group organized ethnic minority multiple dimensions including employees' work satisfaction sense of well-being and work-rated stress levels. We fully respect
employees to actively participate in various employees' opinions and feedback and promptly take measures for improvement continuously enhancing employee satisfaction
cultural activities including the "Ethnic and engagement.Integration Unity and Mutual Inclusion"
Xili Sub-district Exhibition for Inter-Ethnic We conduct regular employee satisfaction surveys each year targeting all employees of the Group and its subsidiaries covering
Community Building and the "Celebrating multiple dimensions including employee satisfaction with work the purpose of work sense of happiness and stress levels. We fully
the 15th National Games Ethnic Unity as respect employees' opinions and feedback and take timely improvement measures to continuously enhance employee satisfaction
One Family" 2025 Shenzhen "Liu·Shen" and engagement.Joyful Walking Event allowing ethnic
minority employees to experience the Case
charm of diverse cultures and forge a sense
of cohesion and ethnic solidarity through Ethnic Minority Cultural Activity Joincare Employee Satisfaction Survey
shared participation and enjoyment.In 2025 we systematically conducted an employee engagement and satisfaction survey covering the Group and its
subsidiaries achieving 100% employee participation with an employee satisfaction rate of 90%. The survey covered multiple
dimensions including employee job satisfaction sense of purpose happiness and stress. We conducted structured analysis
of the survey data and formulated targeted improvement plans based on the results driving dedicated improvement
6.1.4 Listening and Communication initiatives and regularly updating employees on progress. Through the "survey – analysis – improvement – feedback" closed-
loop management mechanism the Group continuously translates employee opinions into management practice to enhance
organizational effectiveness and employee job satisfaction.To genuinely fulfil the Group's human rights responsibilities the Group has established a safe confidential and effective employee
grievance and reporting mechanism committed to safeguarding the legitimate rights and interests of all employees (including full-
time part-time and contract workers). We have set up a dedicated HR department grievance mailbox (hr.group@joincare.com) and
an integrity reporting hotline to ensure channels remain open. We have established a standardized employee grievance closed-loop Employee Trade Union Management
management mechanism: an assessment is initiated within 24 hours of receiving a grievance an independent investigation team
conducts verification and feedback on the handling decision is provided to the grievant within a specified timeframe ultimately
completing systematic filing and implementation tracking to form a fully traceable management closed loop genuinely safeguarding We have always regarded employee trade unions as an important communication channel between management and frontline
employee rights and interests. employees. We regularly organize employee representative conferences to maintain close communication with employees enabling
them to fully participate in decision-making on important Group matters and continuously strengthening the connection between
the enterprise and its employees. To better leverage the important role of trade unions in employee care work we invite professional
psychological counsellors to give lectures alleviating the stress that employees experience at work and in life and helping them
regulate their emotions and relax. During the Reporting Year 100% of the Group's employees were represented by the independent
trade union.
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6.2 Talent Management
The Group attaches great importance to building a talent pipeline has formulated a talent development strategy scientifically Talent Retention
forecasts talent needs actively develops the talent pool and builds talent reserves to support the Group's high-quality development.We actively broaden talent introduction channels and implement more employee-oriented talent retention measures striving to
retain outstanding talent. At the same time we provide employees at different levels and in different positions with training courses The Group has established a structured communication mechanism conducting regular interviews at key touchpoints including
suited to their development needs continuously building a learning organization. We also continuously optimize the remuneration onboarding probation and performance evaluations to gain timely understanding of employees' dynamics and development
and benefits system to share the fruits of the Group's development with employees. needs. For high-performing and high-potential employees managers conduct full-process tracking and personalized
communication providing clear growth paths. At the same time the Group strictly implements a 100% exit interview system
using in-depth attribution analysis of reasons for departure to feed insights back into the iterative optimization of departmental
6.2.1 Talent Introduction and Retention management practices forming a management closed loop for preventing talent attrition.
In day-to-day management we have strengthened the culture of face-to-face communication encouraging managers to proactively
Based on the Group's strategic positioning business development needs and current talent landscape we continuously optimize identify and intervene in potential resignation risks through regular team meetings and one-on-one conversations. In addition
our talent introduction strategy. By gaining in-depth insight into industry development trends and market dynamics we accurately through a multidimensional recognition system (e.g. annual awards instant project rewards) and rich physical and mental
judge the talent gap in key positions. During the Reporting Year we coordinated and advanced diversified recruitment initiatives health activities (e.g. health lectures sports competitions) the Group continuously improves employees' sense of professional
including social recruitment and campus recruitment integrating multiple channel resources such as online recruitment internal achievement sense of belonging and overall wellbeing. This comprehensive system of "early prevention – mid-term intervention –
referrals headhunter partnerships and government agency connections to strengthen talent reserves and attract high-quality talent post-event review" is designed to fundamentally enhance employee engagement and organizational identity providing stable talent
aligned with the Group's long-term development goals providing strong momentum for sustained business growth. assurance for sustainable business development. The Group's voluntary employee turnover rate for the Reporting Year was 10%.We attach great importance to the introduction of high-end talent and continue to deepen cooperation with renowned domestic and Over the past three years the Group has not experienced any major layoffs or any major merger or acquisition events affecting
overseas universities and research institutions to target and introduce outstanding R&D personnel providing solid talent support employees.for the efficient transformation of scientific and technological achievements. In addition we actively promote the deployment of
AI technology in recruitment screening using AI to deconstruct core position requirements and conduct intelligent analysis and
matching of candidate CVs significantly improving the efficiency and precision of talent screening. During the Reporting Year the
Group introduced a total of 2155 new employees. 6.2.2 Training and Development
University-Enterprise Cooperation
The Group has always regarded talent cultivation as a core pillar of sustainable development. During the Reporting Year we further
deepened the training management system solidifying the three-tier responsibility mechanism of "Group – department – position"
To attract high-quality students and strengthen the Group's talent pipeline in 2025 we actively responded to the national call to and advancing the iterative upgrading of the training system and curriculum system guided by strategy implementation and business
"deepen the integration of industry and education" adhering to the principle of "collaborative talent cultivation mutual benefits and development precisely meeting the demands of industry transformation and the Group's digital and intelligent transformation.shared success" to engage in deep strategic cooperation with a number of domestic research institutions and universities and build We upgraded the core of the training management system adopting an Online-Merge-Offline (OMO) model to achieve closed-
a seamless "campus-to-enterprise" talent cultivation and deployment system. loop management of the full training process optimizing the digital training platform by adding functions such as automated plan
delivery to improve operational efficiency and continuing the "feedback – optimization – iteration" mechanism to ensure training
During the Reporting Year we signed cooperation agreements with universities including Guangdong University of Technology quality. At the same time in curriculum system upgrading we focused on two core areas: following up on the 2025 edition of the
Shenzhen University and Henan Agricultural Vocational College and carried out a series of internship projects through models such Chinese Pharmacopoeia and international GMP standards to update relevant courses and reshape new employee orientation to
as "dual-mentor apprenticeships" and work-study rotation enhancing the vocational skills of current students. At the same time we reinforce quality foundations; and introducing AI tool application courses and driving the deep integration of AI technology with
provide interns with comprehensive benefits including remuneration meal subsidies accommodation arrangements and health business scenarios through practical activities incorporating innovative achievements into assessments to advance digital and
check-ups and offer priority permanent employment opportunities for students who perform excellently during their internship. intelligent transformation.The company has established a system for return interviews and training for employees returning from maternity and sick leave
Case strengthening post-return position competency and professional confidence through customized transition enablement. The
retirement support mechanism has also been improved with trade unions specifically coordinating the distribution of retirement
University-Industry Cooperation Internship program gifts to empower employees to achieve a smooth transition from workplace to social life.Taitai Pharmaceutical established a strategic partnership with Hunan Food and Drug Vocational College officially inaugurated
as a "University-Enterprise Cooperation Practice Base" and innovatively created a dual-track cultivation model of "project- As at the end of the Reporting Period the total training hours of all employees amounted to 1254403 hours; average training hours
based practical training + apprenticeship-style mentoring" driving precise alignment of university program curricula with per employee were 92.4 hours.enterprise position skill requirements. During the Reporting Year the base cumulatively accepted 67 interns; through
systematic cultivation including position-based practical operations skills training and career planning guidance a total
of 10 outstanding students successfully passed assessments and were officially recruited effectively achieving the talent
conversion goal of "starting studies means starting a career; graduating means finding a job".
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On-boarding Training Case
The Group has built a full-cycle new employee cultivation system centered on "accelerating integration and enabling growth" Job-specific Development Training
systematically helping new employees complete their role transition through customized training dynamic assessments R&D positions: AI tool application course series introduced focusing on cultivating R&D personnel's AI thinking and practical
mentorship coaching and other diverse initiatives; at the same time implementing differentiated strategies for all new employees skills. Courses cover structured prompt engineering AI-assisted drug molecule design clinical trial data analysis and prediction
and fresh graduates building a talent cultivation ecosystem of precise enablement and strengthening the foundation of the Group's and intelligent retrieval and interpretation of scientific literature. Through a combination of theory and position-specific scenario
talent pipeline. practice these courses promote the deep integration of AI technology throughout the entire drug R&D process.Production positions: Follow-up on the 2025 edition of the Chinese Pharmacopoeia international GMP (Good Manufacturing
Case Practice) and other latest regulatory standards with a comprehensive update of relevant courses. Training adopts modular teaching combining "theory + practical operations + case studies" with a focus on strengthening core capabilities such as quality
On-boarding Training control throughout the pharmaceutical production process standard equipment operation deviation management and safe
production ensuring compliance of production activities and stability of product quality.During the Reporting Year we continued to implement a standardized and refined three-stage tracking cultivation system
Quality positions: High-frequency high-intensity dedicated training sessions covering in-depth interpretation of regulatory
for newly onboard employees comprehensively empowering employee growth. We implement one-on-one customized
developments execution of quality standards systems and strict implementation and optimisation of SOPs (Standard Operating
onboarding training for new employees closely aligned with core position requirements and using a combined "theory
Procedures). The aim is to build a full-employee full-process full-chain compliance culture and consolidate the quality system.instruction + practical exercises" model to help new employees rapidly build a solid position competency foundation. At the
same time we have established a dynamic tracking assessment mechanism during the probation period implementing Management positions: Dedicated competency enhancement projects designed for managers at different levels covering but
monthly tracking and quantitative evaluation promptly feeding back staged growth advice to ensure that the cultivation not limited to strategic thinking team building and motivation effective communication project management cost control and
process is controllable and growth paths are clear. In addition we have implemented a long-term mentorship support post- management innovation in the context of digital and intelligent transformation helping managers achieve the transformation
confirmation assigning dedicated mentors to employees and conducting one-on-one coaching over 6–12 months providing from capable practitioners to outstanding leaders.both support for tackling specialist challenges and targeted career development planning to help employees grow.Case
Case
AI Application Training
Dedicated Training Camp for Fresh Graduates
During the Reporting Year we systematically conducted cutting-edge AI tool
In 2025 the Group continued to advance the dedicated training camp project for fresh graduates focusing on three application training with a focus on enhancing overall digital literacy and
core objectives: enterprise culture and system understanding workplace role transition and professional competency innovative efficiency. Courses covered operational skills for tools such as
enhancement building a multi-faceted composite cultivation model of "offline intensive training + outdoor development Gemini ChatGPT and DeepSeek along with structured prompt engineering
+ online learning + one-on-one coaching". Through systematic cultivation this helps fresh graduates gain an in-depth and through cross-departmental practical case teaching in areas such as
understanding of the Group's core values and business strategy quickly integrate into the organizational atmosphere and R&D data analysis production process optimisation and quality control early
smoothly complete the transition from campus to workplace. warning the training focused on cultivating employees' mindset of using AI
technology to identify business pain points and solve real problems driving
the deep integration of artificial intelligence with core business scenarios. AI Application Training
Job-specific Development Training
Case
Based on the business characteristics and professional knowledge requirements of different positions we tailor job- specific Xinxiang Haibin Compliance Position Training
development training plans for employees implementing systematic and differentiated training projects targeting key positions in
R&D production quality and management aimed at precisely enhancing employees' professional skills and compliance awareness During the Reporting Year Xinxiang Haibin conducted dedicated compliance
and driving the Group's high-quality development. position training continuously fostering a company-wide compliance culture
through high-frequency high-intensity dedicated training and consolidating
the foundations of corporate compliance governance. The quality department
organised 12 department-level training sessions throughout the year of which
7 involved regulatory interpretation and Standard Operating Procedure (SOP)
document execution training accounting for 58.3%. This high-weighting
compliance training strategy greatly strengthened the quality team's
awareness of laws and regulations and professional performance capability Xinxiang Haibin Compliance Position Training
building a solid compliance defence line for the company's product quality.
91 2025 Sustainability Report 92About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
Promotion and Job Transfer Mechanism
To activate internal talent vitality and optimize human resource allocation we adhere to the principle of "equal opportunity internal
priority" for talent mobility establishing and continuously improving internal job transfer and promotion mechanisms covering During the Reporting Year the total hours of management and leadership development training for the Group amounted to
various job levels to build clear and diverse career development pathways for employees. We have established a dual-track career approximately 66394 hours with 4697 employees participating. In addition all potential successors identified through evaluation
development system featuring "Professional" and "Management" tracks in parallel clarifying competency standards and promotion during the Reporting Year participated in relevant training.requirements for each job level and career stream as well as advancement pathways for each stream: the Administrative stream
emphasizes cross-departmental comprehensive experience the Technical stream focuses on deep professional breakthroughs and
the R&D stream leverages innovative projects to expand frontier capabilities encouraging cross-boundary development for versatile
talents. Case
Regarding promotion mechanisms we adhere to the principle of combining "step-by-step advancement" with "exceptional
promotion" ensuring both the stability of talent development and fast-track channels for outstanding performers. For excellent Taitai Pharmaceutical Middle and Senior Management Training
managers and core talents who have demonstrated outstanding performance and made significant contributions in critical During the Reporting Year Taitai Pharmaceutical provided in-
technology breakthroughs and major project execution we break through job level and tenure constraints to grant exceptional depth training for middle and senior management focusing
promotions effectively motivating employees' entrepreneurial spirit and enabling a cohort of high-quality talents to stand out. on regulations team building and lean management with
Meanwhile the Group supports employees in cross-departmental and cross-functional transfers facilitating rapid integration into annual training reaching 120 credit hours and covering over
new positions through regular internal job postings and comprehensive "Assessment—Coaching—Training" support throughout 500 participants successfully leading to the promotion of
the process. A regular job transfer assessment mechanism provides cross-departmental and cross-functional development 2 attendees. For frontline management teams through
opportunities for qualified and willing employees. These institutionalized internal mobility channels aim to break down career weekly high-frequency topical training core practical
barriers unlock employee potential thereby enhancing the organization's overall vitality and innovation resilience and building core capabilities in pharmaceutical production such as GMP
human capital for sustainable development. compliance and deviation management (CAPA) were
continuously strengthened effectively enhancing the
professional leadership and compliance execution capability
Succession Planning and Leadership Development of teams at all levels and laying a solid talent foundation
for the organization's excellent operations and sustainable Taitai Pharmaceutical Middle and Senior Management Training
development.To build a sustainable talent pipeline and support the achievement of strategic goals the Group has established a systematic phased
employee leadership development system with precise planning and enablement targeting core capability needs at different career
stages.We have established a comprehensive and hierarchical management and leadership development training system covering
employees from entry level to senior management Case
Xinxiang Haibin Leadership Training
Entry level Executive level Junior management Middle and senior management In April 2025 Xinxiang Haibin held a dedicated seminar
on "Team Leadership and Execution Enhancement". The
Specifically designed Focused on improving Dedicated to cultivating Aimed at developing program targeted practical management challenges in
for new employees to employees' high- new managers' team the strategic thinking strategy implementation adopting a case-study discussion
support them in smoothly performance execution management and basic organizational model to provide 6 credit hours of intensive enablement to
completing the transition capability in specialist leadership capabilities. management and 47 managers focusing on forging their core capabilities of
from campus to workplace positions and initial Through programs such as change leadership of team coordination and efficient execution injecting core
rapidly establishing a sense coaching skills. A series of "manager role awareness" core managers. Through momentum for the organization's long-term resilience.of organizational belonging specialist skills process training and cross-regional workshops on strategic
and professional identity. standards and tool learning exchanges decoding and advanced
Through fresh graduate application training is their practical skills in studies on upward and
training camp courses conducted around key personnel management downward management
and team integration business chains including task allocation their capabilities in Xinxiang Haibin Leadership Training
development programs R&D production supply performance feedback strategic planning
it helps them understand chain and marketing and team motivation are business innovation
the Group's culture clarify ensuring effective systematically enhanced. and organizational
their growth paths and implementation and development are
lay the foundation for their continuous optimization of comprehensively
careers. business standards. enhanced.
93 2025 Sustainability Report 94About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
University-Enterprise Cooperative Training 6.2.3 Compensation and Employee Benefits
To practice the strategy of "strengthening the enterprise through talent" during the Reporting Year the Group continued to deepen The Group strictly complies with laws and regulations related to remuneration and benefits and continuously improves and
the integration of industry and education actively building a diversified external cooperation training system. Through establishing implements internal systems and policies such as the Salary Management System and the Performance Management System. It
strategic partnerships with universities vocational colleges and national institutions we have built a multi-faceted enablement also continues to refine its performance evaluation and feedback mechanisms. In determining and adjusting compensation the
platform covering specialist skills compliance management safe production and teamwork providing employees with cutting- Group takes into comprehensive consideration job value employees' capabilities and performance while appropriately referencing
edge subject information and systematically enhancing employees' overall competencies and vocational skills laying a solid talent the cost of living of employees and their families as well as relevant external benchmarks so as to continuously enhance the
foundation for the Group's sustainable development. reasonableness of its remuneration protection and provide employees with remuneration and benefits that are both fair and market-
competitive (for details please refer to the "Benefits System" section of this chapter). We adhere to the remuneration management
philosophy of "the consistency between responsibility and benefit the consistency between ability and value and the consistency
Case between performance and earnings" implementing a remuneration structure consisting of fixed income and variable income for
all employees (including employees in non-management positions and non-sales positions) where variable income is linked to
Group University-Enterprise Cooperative Projects individual performance and Group performance to fully leverage employees' initiative and genuinely demonstrate the motivational
Taitai Pharmaceutical: Taitai Pharmaceutical jointly established an industry academy with partner universities effectiveness of remuneration.incorporating core skills such as Good Manufacturing Practice (GMP) into customised teaching systems and conducting
targeted employee training. Training focuses on practical needs of production positions strengthening the precise alignment Performance Appraisals and Feedback Process
of skills with positions. During the Reporting Year a cumulative total of over 1500 frontline production employees were
trained effectively enhancing the position competency of frontline employees and consolidating the standardised operations
foundation of the production stage. The Group adheres to the principle of "performance-oriented with attention to growth" continuously optimizing a scientific and
fair performance management system deeply aligning with sustainability goals and exploring diversified appraisal pathways
Haibin Pharma: Haibin Pharma actively participated in dedicated advanced study training organised by the National in combination with business characteristics to drive synergistic development of the organization and individuals. Individual
Advanced Study Academy of NMPA the Chinese Pharmacopoeia Commission and other units covering cutting-edge performance appraisals are primarily led by Key Performance Indicators (KPIs) supplemented by methods such as Objectives and
industry topics including but not limited to pharmacopoeia interpretation and pharmaceutical overseas expansion. Training Key Results (OKRs) and 360-degree feedback with appraisal dimensions covering core areas such as performance achievement
focuses on key position work needs helping training participants strengthen compliance knowledge and international effectiveness of AI tool application work attitude and personal learning and development. Team performance appraisals customize
business knowledge and enhancing the compliance management capability and international business expansion capability standards based on each department's functional attributes and business priorities conducting quantitative assessments of key
of key position teams. performance outcomes such as progress of technology innovation projects number of clinical and production approvals obtained
and annual sales. Core ESG indicators such as energy conservation and emission reduction and occupational health and safety are
Jiaozuo Joincare: Jiaozuo Joincare in partnership with a professional organization conducted a Red Cross first aid responder systematically incorporated into the appraisal scope focusing primarily on management and relevant functional departments with
system training providing emergency rescue skills teaching to corporate safety management personnel. During the Reporting plans to progressively increase indicator weightings year by year to strengthen their guiding effect. In addition we actively explore AI-
Year 40 safety management personnel were organised to participate in training; all participants passed assessments and assisted appraisal models using precise data tracking and objective analysis to provide support for performance evaluation further
obtained certification effectively enhancing the Group's emergency response capability for sudden safety incidents. improving the scientific rigour and impartiality of appraisal results.We conduct performance appraisals twice a year covering all Group employees building a cascading transmission system
of "organizational goals – team goals – individual goals" ensuring that individual performance is closely linked to team and
Support for Degree Programs and Certifications organizational goals by breaking down team goals into individual goals. In terms of the feedback mechanism we further strengthen the developmental function of performance management establishing a normalized performance communication and feedback
mechanism that requires team leaders to regularly conduct one-on-one performance coaching interviews with employees tracking
The Group has always supported lifelong learning and career development for all employees formulating and implementing the the progress of goal advancement throughout the process accurately feeding back performance appraisal results and collaborating
Management Regulations for In-Service Academic Advancement Education for Employees covering all employees (including full- with employees to formulate personalized improvement plans effectively driving continuous improvement of individual and
time part-time and contractors) encouraging employees to obtain degrees professional qualifications and national titles suited to organizational capabilities and providing solid support for the Group's long-term value creation.their positions. Through diverse initiatives such as skills certification support and title application guidance the Group continuously
improves the employee career development support system to help employees enhance their capabilities and achieve long-term
growth. Long-Term Incentive Mechanisms
Joincare has actively established a long-term Business Partner Shareholding Plan based on the principle of "shared benefits shared
Case risks" aiming to drive core management and technical teams to transition from "managers" to "partners." The Company has
consecutively implemented three phases of the shareholding plan with the fund scale steadily increasing from RMB 31.0382 million
Enterprise Independent Vocational Skills Grade Assessment to RMB 115 million cumulatively covering over 160 core talents across the entire value chain including R&D manufacturing sales and
management.Jiaozuo Joincare actively responded to national guidance for building a skilled talent workforce and in accordance with
national vocational skills standards systematically built a closed-loop vocational skills development system encompassing This incentive system is deeply tied to long-term strategic performance. The extraction of incentive funds rigorously references the
"precise assessment targeted enhancement and authoritative certification". During the Reporting Year 60 senior worker compound annual growth rate (CAGR) of net profit attributable to shareholders during the 2019–2028 assessment period. No allocation
grade assessments were completed covering 5 fitters 1 instrument maintenance worker 18 electricians and 36 chemical will be made if the growth rate falls below 15% or if quarter-on-quarter performance declines ensuring that incentive amounts are
inspectors. commensurate with the Company's actual value growth. Furthermore the plan incorporates strict risk constraint mechanisms
including clawback provisions for violations of laws regulations or actions detrimental to the Company's interests. Through the dual
management approach of "positive incentives and reverse constraints" organizational resilience and governance effectiveness are
strengthened.
95 2025 Sustainability Report 96About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
Benefits System Table: Joincare Employee Benefits System
To continuously improve employee wellbeing we continuously optimize the employee benefits system ensuring employees enjoy all
statutory holidays and making contributions for all employees to pension insurance medical insurance unemployment insurance Annual health checkups for Health check-ups for females Accident insurance
work-related injury insurance maternity insurance and housing provident funds. At the same time we provide all eligible employees Health employeessupport
with paid prenatal leave including maternity leave of no less than 14 weeks paternity leave nursing leave and other leaves with leave
duration and arrangements strictly in compliance with national and local relevant policies. Occupational health check-ups Psychological counselling Heatstroke prevention allowance
We have built an employee benefits system encompassing three pillars of health support family and personal support and work-life Employee canteen Living allowance for talents Gifts for traditional holidays
balance providing all employees (including full-time part-time and contract workers) with a wide range of non-cash material benefits Family and introduced
including occupational health check-ups transportation subsidies welfare accommodation and gym facilities. At the same time based personal support Dormitories Cash gifts for birthday wedding
on employee needs flexible working arrangements such as remote working are implemented to provide more options for employees Support for advanced and maternity
who genuinely need them. During the Reporting Year the Group systematically added and improved multiple employee benefits guided Government-run talent studies under master's and
by the principle of inclusion and tailored employee care including providing female employees with comprehensive support through apartments doctoral programs Funeral and retirement allowances
diversified health and wellness benefits health lectures and festival gifts; providing lactation rooms and other facilities for nursing Housing subsidies for talents
employees offering a private and comfortable nursing space; opening dedicated food counters in the canteen to respect the dietary Commuter allowance
habits of ethnic minority employees; and actively developing suitable positions and assisting employees with disabilities in accessing
government subsidy policies. At the same time we comprehensively upgraded the employee commercial insurance plan enhancing
the level of accident and medical protection and building a more resilient employee care and risk protection system. By the end of the Gym Team building Associations
Reporting Period the total remuneration paid by the Group to all employees including wages bonuses allowances subsidies welfare Work-life balance
expenses housing provident fund and social insurance premiums was RMB 2502.89 million. Breakout/refreshment areas Annual parties Library
Cafes Free Gym Access Women's Day Activities
Activity Parks Employee Birthday Parties Ethnic Minority Activities
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6.3 Occupational Health and Safety
The Group adheres to the safety management policy of "safety first prevention first integrated management" actively advocates a The Group's EHS Management Committee serves as the highest decision-making body for EHS management comprising Group
people-centered safety philosophy and strictly complies with laws and regulations related to occupational health and safety such directors and senior executives production heads and EHS heads and is responsible for formulating the Group's overall EHS
as the Work Safety Law of the People's Republic of China and the Law of the People's Republic of China on Prevention and Control development plan and occupational health and safety policy. The General Managers of Joincare and each subsidiary serve as the
of Occupational Diseases. Referencing the requirements of the ISO 45001 occupational health and safety management system we primary responsible persons for EHS work responsible for supervising and advancing the implementation of EHS management.continuously improve and strictly enforce internal systems and policies such as the Occupational Health and Safety Management During the Reporting Year the Group's prioritization and integration of occupational health and safety management work is as
System the Risk Classification Management and Hidden Danger Investigation and Management System and the Accident and follows:
Incident Reporting and Investigation Management System using these systems as a framework to systematically advance the precise
identification classified management and dynamic investigation of potential hazard factors in the production process setting
quantitative occupational health and safety targets each year and relying on closed-loop system management to continuously track
progress genuinely safeguarding employee health and safety. Overview of the Group's Occupational Health and Safety Action Plans Prioritization and Integration
At the same time we continue to increase investment in occupational health and safety advancing technical improvements to safe in 2025
production and upgrades to safety production equipment and actively carrying out safety training emergency drills and other
activities. Each subsidiary further strengthens the construction of dual preventive mechanisms for risk classification management Formulate annual work safety targets and work plans;
and hidden danger investigation and governance using information technology to achieve "self-identification and self-control" of
risks and "self-investigation and self-correction" of hidden dangers organizing Hazard and Operability (HAZOP) studies safety status Increase safety investment especially in automated facilities to strengthen safety foundations;
assessments and occupational disease hazard factor testing improving safe operating procedures and the company-wide safety
responsibility system implementing safety performance assessments and driving the continuous and effective operation of the
occupational health and safety management system. Implement the company-wide work safety responsibility system;
Improve the emergency system and conduct emergency drills;
Overview of the Group' s Occupational Health and Safety Action Plans Prioritisation and Integration in 2025 Improve safety publicity and education efforts enhancing employees' work safety awareness;
Fire safety Target: No production accidents of any kind including general work safety accidents
Continuously advance EHS management system construction improve management systems and ensure compliant
Occupational Health Target: No new cases of occupational disease project production;
Lean Management Targets: Continue EHS system building complete annual internal and external audits and Strengthen risk management standardize special operations management and strictly enforce operations approval;
management reviews; improve the emergency system and carry out emergency drills as planned; conduct induction safety
education and training for all newly onboarded employees and conduct dedicated safety training for specific employees Strengthen contractor safety management — all contractors sign safety management agreements — to enhance the
safety management level for external construction.We conduct annual EHS system internal audits external audits and management reviews; each production subsidiary also carries
out related audit work as planned continuously improving the EHS management system and ensuring that prevention and We continue to increase investment in occupational health and safety advancing technical improvements to safe production and
management measures for safety occupational health fire prevention and other areas during production operations are effectively upgrades to safety production equipment and actively carrying out safety training emergency drills and other activities. During the
implemented. Reporting Year the Group invested a total of RMB51.28 million in occupational health and safety with 100% of employees covered by
work-related injury insurance. The breakdown of expenditure is as follows:
EHS Internal Audit
Breakdown of occupational health and safety expenses
Document Review On-site Audits New reconstruction and expansion projects review
Work safety expenses Occupational health expenses
We review EHS-related We check potential hazards We propose suggestions for new
documents and ledgers and in production sites and verify reconstruction and expansion RMB 44.119 million RMB 7.1631 million
supervise the performance of EHS whether on-site safety controls projects from the perspective of which:
targets. are effective and safe protective of EHS to improve safety Expenses of safety training and Expenses of safety emergency Total expense of employees' work
equipment are in place to reduce management throughout each education drills injury insurance
potential accidents. project. RMB 1.2579 million RMB 2.3983 million RMB 6.5585 million
99 2025 Sustainability Report 100About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
6.3.1 Occupational Health
The Group continuously improves and strictly enforces management systems including the Occupational Health Management System Case
and Operating Procedures the Workplace Occupational Disease Hazard Factor Monitoring and Assessment System and the Hazard
Source Identification and Assessment Management Procedure making every effort to avoid occupational health risks during work and Jiaozuo Joincare Occupational Disease Prevention Law Awareness Week Activity
production processes and actively carrying out external certification work. During the Reporting Year Joincare and all its production
subsidiaries passed the GB/T45001-2020/ISO45001:2018 occupational health and safety management system certification. From April to May 2025 Jiaozuo Joincare held an Occupational Disease Prevention Law Awareness Week activity themed
"Caring for Workers' Mental Health" strengthening employees' self-protection awareness and the implementation of
During the Reporting Year we continued to optimize the employee occupational health protection system setting up dedicated funds the enterprise's principal responsibilities through approaches such as regulatory dissemination and workplace hazard
for purposes such as improving the work environment occupational health monitoring and procurement of personal labor protection knowledge lectures. We also used this opportunity to complete full-coverage monitoring at 172 workplace occupational
equipment and regularly maintaining safety protection facilities to ensure they can be deployed at any time. Building on this we hazard monitoring points with all results meeting exposure limit requirements; testing results were publicized in prominent
further strengthened full-process occupational health management coordinating each subsidiary in conducting annual workplace locations in each workshop followed by online reporting and approval from the competent authority. In addition by revising
occupational disease hazard factor testing and online reporting organizing health check-ups for all employees and dedicated health operating procedures for occupational disease hazard positions and implementing engineering control measures for hazard
check-ups for positions with occupational disease hazards improving occupational health monitoring records and occupational health factors such as dust toxic substances and noise a full-chain occupational health management model of "publicity – testing –
management systems incorporating occupational health training into the annual company-wide safety training plan and establishing health check-ups – protection" was built.emergency response plans and drill mechanisms for occupational disease hazard accidents strengthening occupational health
protection for employees. During the Reporting Period the Group recorded no new occupational disease or suspected occupational
disease cases.Joincare Occupational Health and Safety Protection Measures
Healthier and more harmless processes equipment materials etc. are preferred to minimise the
impact of hazards on employees.Occupational
hazards check-ups 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.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
Occupational requirements. Occupational Disease Prevention Law Awareness Week Activity
health monitoring
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.We equip employees exposed to occupational hazards with labor protection articles and first aid
Safeguarding supplies.occupational
health of special We set up warning signs in places where occupational disease hazards may be involved.posts
We maintain overhaul and upgrade protective facilities against occupational diseases.
101 2025 Sustainability Report 102About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
Case 6.3.2 Production Safety
Taitai Pharmaceutical: Precise Position Hazard Prevention and Equipment Upgrade Noise Reduction
Renovation The Group adheres to the work safety policy of "safety awareness legal compliance and continuous improvement" implementing
core systems such as the Operation Assessment System for Dual Prevention Systems and the Special Operations Safety Management
During the Reporting Year Taitai Pharmaceutical focused on precise occupational health protection for employees strictly System to consolidate the work safety management framework. Through annual routine safety risk identification and assessment
implementing pre-employment occupational hazard notification and dedicated training for new employees to ensure we dynamically update risk management lists strengthen the three-level management mechanism at the company level workshop
they master position hazard prevention and control key points before starting work. Annual occupational hazard factor level and position level organize annual updates to the dual prevention system clarify responsibilities at each level and build
periodic testing and website reporting were completed as required and health check-ups were organised for employees in a company-wide work safety responsibility system. During the Reporting Year we strengthened the full-process management of
positions with hazard factor exposure with comprehensive employee health files established. To address the problem of operations safety strictly enforcing the approval process for eight categories of special operations including hot work and lifting
noise exceeding standards caused by ageing roof fans in production workshops a dedicated upgrade and renovation project and implementing full-cycle management requirements. At the same time we established a multi-dimensional hidden danger
was implemented; after renovation equipment noise was reduced by approximately 15 decibels significantly improving investigation and governance system routinely conducting various safety inspections introducing information technology tools
the operating environment and effectively reducing noise-related health hazards to employees achieving synergistic to build a closed-loop management platform and improve rectification quality and efficiency. We implemented monthly/quarterly
advancement of occupational health protection and production equipment optimisation. quantitative safety performance assessments linking core indicators to departmental and management personnel performance
and implementing accountability.Level 1 Major Changes Level 2 Process Changes Level 3 Workshop Changes
Changed by external experts Changed by external experts upon an An EHS Change Assessment Team has
evolution of subsidiaries' EHS Team been established to evaluate relevant
workshops or departments
At the same time we advanced safety culture building and capability enhancement carrying out dedicated activities such as "Work
Safety Month" and "Fire Prevention Month" implementing a tiered safety education and training plan achieving full certification
coverage for special operations personnel with employee training hours far exceeding national standards. During the Reporting Year
some of the Group's subsidiaries introduced third-party safety consulting carried out professional work such as HAZOP analysis and
improved emergency training materials and extreme weather prevention and control measures ensuring safety and compliance
Precise Position Hazard Prevention and Equipment Upgrade Noise Reduction Renovation across the entire production process. During the Reporting Period the Group successfully completed all annual occupational health
and safety target indicators with no production accidents of any kind including general work safety accidents achieving the target of
"zero safety accidents" and providing a solid guarantee for the Group's normal production and business operations.Case
Xinxiang Haibin Institutionalized Occupational Health Management and Full-Cycle File Management
During the Reporting Year Xinxiang Haibin advanced occupational health management with "system implementation + full-
cycle management" as the core strengthening daily protection supervision through establishing a comprehensive reward-
penalty linkage mechanism and adding gate access control systems that require employees to wear hard hats for recognition
before entering production areas using rigid constraints to encourage employees to form good protection habits. At the
basic management level a third-party organization was invited to complete the annual company-wide occupational disease
hazard factor testing; all testing indicators met national occupational exposure limit requirements and annual updates and
improvements to occupational health monitoring files for all employees were simultaneously completed achieving full-cycle
closed-loop management of "daily supervision – professional testing – file traceability" to provide continuous protection for
employees' occupational health.
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Safety Inspections Case
During the Reporting Year the Group and each subsidiary continuously improved the safety inspection system building a three- Haibin Pharma Hazardous Chemical Leak and Fire Comprehensive Emergency Drill
level coordinated inspection network of "company – workshop – team" routinely conducting multiple types of inspections including During the Reporting Year Haibin Pharma organized a comprehensive emergency drill for hazardous chemical leaks and
daily patrols monthly/quarterly inspections hazardous chemicals dedicated inspections special equipment dedicated inspections fires with the key person-in-charge of the company serving as the overall commander. The drill covered all key process
seasonal inspections and holiday dedicated inspections while also introducing external expert in-depth diagnostics and proactively stages including hazardous chemical leak handling response to escalating emergencies firefighting hazardous chemical
cooperating with government department external inspections forming an internal-external linkage risk investigation mechanism. transfer personnel evacuation and security medical rescue and accident wastewater environmental collection. During the
During inspections we rely on information technology tools such as "WeAnQuan" and Feishu multi-dimensional tables to achieve full- drill multiple emergency equipment items were activated including mobile foam vehicles foam fire hydrants leak-proof
process automated tracking of hidden danger investigation and rectification strictly enforcing the "five fixed principles" for closed-loop absorption blankets and portable gas detectors. Through high-specification full-process practical drills emergency team
management. Throughout 2025 Joincare and its subsidiaries cumulatively conducted 1142 safety inspections investigating a total of members further familiarized themselves with emergency handling processes and emergency equipment use significantly
8953 various safety hidden dangers achieving a 100% rectification rate for overdue items with all non-overdue hidden dangers subject enhancing the team's coordinated emergency response capability.
to effective protection measures and control. At the same time we continue to increase safety investment advancing the upgrading of
technical protection measures to ensure the continued stability of the work safety situation.Case
Xinxiang Haibin AI-Enabled Safety Inspections
During the Reporting Year Xinxiang Haibin innovatively introduced AI
technology to assist in hidden danger investigation and in-depth analysis
building a high-frequency multi-dimensional safety inspection network.Using AI enablement to carry out various inspections safety hidden dangers
were investigated and a 100% on-time rectification rate was achieved.The company actively promoted the coordination of internal and external Hazardous Chemical Leak and Fire Comprehensive Emergency Drill
supervision proactively cooperating with government inspections and
using external specialist resources to identify and rectify hidden dangers
significantly improving the systematicity foresight and efficiency of safety Xinxiang Haibin AI-Enabled Safety Inspections Case
management.Xinxiang Haibin Fire Rescue and Evacuation Comprehensive Emergency Drill
In June 2025 Xinxiang Haibin organized a comprehensive emergency drill for fire rescue and evacuation in the sterile workshop
Emergency Plans and Drills recovery area with the company's General Manager serving as the overall commander and 11 professional emergency rescue
teams participating in the drill. This drill simulated the scenario of an explosion fire caused by acetone vapor flash ignition from a
Joincare and its subsidiaries continuously optimize emergency plans for sudden safety accidents and contractor safety accidents membrane system leak in the workshop's solvent recovery area covering all key process stages including on-site initial handling
covering scenarios including comprehensive emergencies dedicated emergencies and on-site handling and continuously optimize activation of the company-level emergency plan firefighting reinforcement casualty rescue zoned personnel evacuation multi-
the emergency management system while maintaining routine upkeep of plans ensuring emergency management compliance level on-site security equipment emergency repair fire water management and environmental monitoring. Multiple emergency
and control. In 2025 the Group and its subsidiaries conducted 155 various emergency drills covering key scenarios such as fires equipment items including fire trucks mobile foam vehicles gas detectors and chemical protective suits were activated
hazardous chemical leaks electric shocks and emergency evacuations with a cumulative total of 3720 person-participations and during the drill; each team coordinated closely and operated in a standardized manner. Through full-process practical drills
further optimized plans and emergency handling processes based on drill results. At the same time subsidiaries have also established the emergency team's rapid response and coordinated handling capabilities were effectively strengthened comprehensively
multi-category emergency materials reserve systems and regularly conduct inventory checks and maintenance to ensure emergency enhancing the company's overall emergency response level for hazardous chemical fire accidents.response capability.Fire Rescue and Evacuation Comprehensive Emergency Drill
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Safety Culture Cultivation
The Group strictly complies with relevant national laws and regulations formulating annual training plans in accordance with
emergency management department requirements. During the Reporting Year key training initiatives included three-level safety Case
induction training for new employees dedicated special operations training dual prevention system training and hazardous chemical Xinxiang Haibin Safety Month and Digital EHS Training
safety management training along with standardized pre-entry safety training for construction contractors covering core content
such as company safety systems risk notification and protection measures. Digital training approaches were introduced with some During the Reporting Year Xinxiang Haibin launched an EHS training mini-program issuing 12 tiered assessment tasks
subsidiaries launching EHS training mini programs for tiered assessment. As at the end of the Reporting Period total EHS training monthly achieving precise training and assessment of employees and management levels. During Safety Month the
hours amounted to 43490 hours with average training hours per employee of 12.5 hours successfully completing the target of "Safety company used this mini-program to organize knowledge competitions improving training engagement and participation
orientation for all new employees and specialized safety training for specific employees." through on-site timed answering to advance to finals and on-site final competition formats and simultaneously carried out
In 2025 the Group and each subsidiary conducted Safety Month activities closely aligned with the theme "Everyone Talks activities such as inter-departmental mutual hidden danger inspections and fire skills competitions effectively consolidating
Safety Everyone Masters Emergency Response — Finding Safety Hazards Around You" comprehensively enhancing employee the safety management foundation.safety awareness and promoting safety culture building through diverse approaches including themed publicity and
education safety knowledge competitions hidden danger investigation and governance emergency drills and safety skills
competitions.Case
Taitai Pharmaceutical Specialized Safety Training on Special Operations Standards
In August 2025 Taitai Pharmaceutical organised dedicated safety training on special operations standards with 19
participants covering department heads and key position operators. The training closely focused on high-risk special
operations stages such as hot work operations temporary power use and work at heights systematically interpreting key
updates to the latest safety management systems and technical standards conducting in-depth analysis combined with
typical industry accident cases and simultaneously incorporating on-site practical guidance with a focus on strengthening Xinxiang Haibin Safety Month and Digital EHS Training
key content such as operations approval processes risk identification safety protection and emergency handling. Through a
combination of theoretical instruction and accident case warnings participants further consolidated their awareness of safety
red lines and mastered core requirements for risk prevention and control effectively enhancing the level of standardised Case
operation for special operations. The training comprehensively strengthened management personnel's safety performance Joincare Haibin: Breaking the Shadow of Drugs Holding the Bottom Line — Special Training on Safe
capability and employees' on-site safety execution genuinely building the company's work safety defence line and providing Management of Drug Precursor Chemicals
solid assurance for the continued safe and stable operation of the company's production and business.In June 2025 Joincare Haibin specially invited a police officer from the public security bureau to deliver a lecture conducting
specialized safety management training on drug precursor chemicals with personnel from positions involved in managing and
using drug precursor chemicals participating. Through case analysis and regulatory interpretation participants systematically
mastered drug identification skills and key points of enterprise drug control management clarifying the boundaries of position-
level drug prevention responsibilities. The training adopted a "using cases to explain the law" format enhancing the impact of
warning education and facilitating the shift of employees from "passive awareness" to "proactive prevention". Interactive Q&A
sessions resolved difficulties in actual enterprise management laying a cognitive foundation for building a "drug-free enterprise"
defense line. This further strengthened the full-process safety management capability for drug precursor chemicals providing
strong assurance for consolidating the defense line for work safety and drug control compliance.Dedicated Safety Training on Special Operations Standards Joincare Haibin Special Training on Safe Management of Drug Precursor Chemicals
107 2025 Sustainability Report 108About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
PART
07
Access to Healthcare
Joincare places great emphasis on the accessibility and affordability of pharmaceutical
products and health services steadily advancing its internationalization strategy working
to improve healthcare standards in low- and middle-income countries and regions
and continuously fulfilling its corporate social responsibilities contributing to the
advancement of global health equity and sustainable development.The Board of Directors of Joincare as the highest governing body for Access to Healthcare
issues is responsible for understanding and monitoring the management of the Group's
Access to Healthcare issues through the Sustainability Committee. The Sustainability
Committee is responsible for regularly reviewing the Group's strategies policies and
performance on Access to Healthcare issues overseeing and reporting the progress to the
Board of Directors and urging the Group to improve access to healthcare.SDGs in this section
1099 2025 Sustainability Report 110About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
7.1 Improving Product Accessibility
The Group is committed to improving medicine accessibility aiming to benefit more patients globally with safe and effective Accelerating Overseas Business Development
products. We actively expand our overseas presence in vaccine patented drugs generic drugs API diagnostic reagent and device
manufacturing and sales broadening channels through direct operations and authorising local distributors and have completed Joincare pays close attention to overseas markets and accelerates overseas business development. We continuously advance
product registration in key pharmaceutical markets and emerging markets across multiple countries and regions in Asia Europe access product registration and promotion of inhalation formulations assisted reproduction gastrointestinal and anti-
North America Africa and elsewhere. In 2025 the Group's overseas primary business revenue was 2767.51 million yuan. infective products overseas. Multiple inhalation formulation products of the Group are preparing for registration filing in
developing countries such as Malaysia and the Philippines as well as EU member states including the Netherlands Germany
and Italy; the two flagship products of Budesonide Suspension for Inhalation and Levosalbutamol Hydrochloride Nebuliser
Solution together completed 6 batches of export to the Macao region.
2021-2025 Overseas Principal Business Revenue of Joincare and Its Percentage of Total Revenue Furthermore the API segment of Livzon Group a controlling subsidiary of the Group has obtained a total of 34 international
certification certificates while the formulations segment has obtained 2 international certification certificates. Multiple
18.19% products have been launched in overseas markets with the Group's emerging market footprint spanning more than 50
countries. The Group has also obtained a GMP certificate issued by Malaysia's National Pharmaceutical Regulatory Agency
16.68% (NPRA) under the Pharmaceutical Inspection Co-operation Scheme (PIC/S). In terms of industrial chain integration the Group
16.17% has fully leveraged the strategic advantage of its "API-to-formulation integration" model to expand its business footprint
15.52% 16.91% while strengthening the global layout and integration capabilities of its core supply chain. The Group is steadily advancing
the construction of an API manufacturing facility in Indonesia in collaboration with leading Southeast Asian pharmaceutical
enterprise PT KALBE FARMA TBK. with products expected to be marketed to Europe and the Americas while also serving the
Southeast Asian market thereby further enhancing the global accessibility of the Group's high-quality products. In addition
2571.58 2841.96 2583.65 2641.26 2767.51 Livzon Group proposes to acquire more than 60% of the equity interest in Imexpharm Corporation (IMP) a Vietnamese listed
company which will help improve the Group's responsiveness and product accessibility in the Southeast Asian market.Case
2021 2022 2023 2024 2025 Joincare Inhalation Formulations Accelerate Southeast Asian Market Expansion
Overseas Principal Business Revenue (RMB million) Overseas Revenue as a Percentage of Total Revenue In November 2025 Joincare Haibin's inhalation suspension (hormonal) and inhalation solution production lines passed
the PIC/S GMP compliance inspection by Malaysia's NPRA and successfully obtained a GMP certificate marking that the
Group's production and quality management system meets international standards. This helps advance the registration and
commercial launch of the Group's inhalation formulation products in Malaysia and other PIC/S member countries laying a
Advancing the Internationalization Strategy solid foundation for expanding into the Southeast Asian market.At the same time the company reached a deep cooperation agreement with PT KALBE FARMA a major Southeast Asian
The Group continues to advance its internationalization strategy deepening its global footprint through multi-dimensional initiatives pharmaceutical enterprise with PT KALBE FARMA responsible for the registration and promotion of budesonide inhalation
and actively fulfilling its social responsibility with respect to global health accessibility. We actively introduce overseas innovative suspension in the Indonesian market accelerating the benefits of high-quality medicines for Southeast Asian patients.products and have successfully introduced drugs including Pixavir Marboxil Capsules PREP inhibitors and potassium-competitive
acid blockers (P-CABs) as innovative drugs in the gastrointestinal field enriching the product pipeline in our advantageous fields of
respiratory and gastrointestinal health. We also pay special attention to medicine accessibility in low- and middle-income countries and
are committed to advancing the technology licensing and overseas expansion of high-end complex formulations so that high-quality
medicines can benefit a broader patient population fulfilling our responsibility for global health equity.At the same time the Group continuously strengthens cooperation with international partners actively expanding partnerships
with multinational pharmaceutical enterprises leveraging their networks to accelerate overseas market coverage and continuously
advancing the out-licensing of innovative products with the aim of achieving broader clinical value and international cooperation
outcomes thereby playing a more active and sustainable role in the global pharmaceutical industry chain.
111 2025 Sustainability Report 112About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
7.2 Improving Product Affordability
Joincare is deeply aware that pharmaceutical costs are an important component of the economic burden of disease. Both Admission to the National Reimbursement Drug List
domestically and across different countries we adopt fair pricing policies based on product affordability to provide reasonably
priced high-quality medicines to more people in need committed to reducing patients' economic burden. In 2025 Joincare had a total of 218 products included in the new edition of the National Basic Medical Insurance Work-Related
Injury Insurance and Maternity Insurance Drug Catalogue (the "National Reimbursement Drug List ") released by the National
Healthcare Security Administration comprising 94 Class A products and 124 Class B products. For products included in the National
Domestic Market Reimbursement Drug List we strictly comply with requirements by publicly listing the medical insurance reimbursement standards
on the pharmaceutical pricing enquiry platforms of local medical insurance bureaus ensuring that drug pricing is reasonable and
transparent.Actively Responding to National Centralized Drug Procurement
Key Products in National Reimbursement Drug List Medical Insurance Reimbursement Standard
The Group deeply recognizes that the national centralized drug procurement policy presents both an opportunity to fulfil social Tobramycin Inhalation Solution ( 健可妥 ): As a modified innovative
responsibility and a new opportunity for the Group's own development. Leveraging our strong R&D capabilities and production medicine developed independently by Joincare 健可妥 is the only
capacity we have included many of our products in centralized drug procurement applications transforming policy opportunities approved inhalation formulation in the world for the treatment of
into practical benefits for the public and development momentum. While helping the country control healthcare costs and improve bronchiectasis accompanied with pseudomonas aeruginosa infection. It
the efficiency of medical insurance fund utilization we have significantly reduced patients' medication costs and improved medicine was approved for marketing in October 2022 breaking the dilemma that no
accessibility. Through the centralized drug procurement channels the Group has further expanded market coverage and the atomised antibiotics are available for patients with bronchiectasis in China. RMB253.60 (5ml:300mg/piece)
population served continuously injecting vitality into the advancement of healthcare. As a key item under the National Key New Drug Creation Program 健可妥
offers the benefits of low-dose local administration high concentration
non-ototoxicity and non-nephrotoxicity and low medicine resistance. It is
Key Products Won Under National Centralized Drug Procurement 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
Product Name Batch of the Procurement of Joincare's controlling subsidiary Livzon Group was incorporated into
Budesonide Inhalation Suspension The 5th Batch 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 bleeding and it also received RMB52.60 (10mg/piece)
Compound Ipratropium Bromide Inhalation Solution The 5th Batch approval for a new indication "prevention of severe stress-induced ulcer
bleeding" which expands the application range of the product meets
Ipratropium Bromide Inhalation Solution The 5th Batch clinical needs and further alleviates the economic burden on patients.Tinidazole Tablets The 5th Batch
Triptorelin Acetate Microspheres for Injection ( 维宝宁 ): It is a modified new
Meropenem for Injection The 7th Batch 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
Terbutaline Sulphate Nebulisation Solution The 7th Batch advanced or metastatic prostate cancer and endometriosis (Stage I to IV).Voriconazole for Injection The 8th Batch Compared with the Triptorelin Acetate Injection 维宝宁 offers significant RMB1000.00 (3.75mg/bottle)
advantages such as a longer duration of action and fewer doses required.Cefodizime Sodium for Injection The 8th Batch The medical insurance reimbursement is RMB 1000 per bottle representing
a price reduction of approximately 20% compared to the imported
Levalbuterol Hydrochloride Nebulisation Solution The 9th Batch formulations already on the market.Formoterol Inhalation Solution The 11th Batch Aripiprazole Microsphere for Injection ( 阿丽唯 ): 阿丽唯 an improved
Fluvoxamine Maleate Tablets The 11th Batch new drug developed by Livzon Microsphere a subsidiary of Joincare was
approved for launch in May 2025 indicated for the treatment of schizophrenia
in adults. 阿丽唯 has successfully broken the import monopoly offering
RMB850.00 (350mg/piece)
significant economic advantages compared to the market weighted price
of long-acting paliperidone injectable formulations with the per-unit price
reduced from RMB 2200 to RMB 850 a reduction of over 61% and currently
has the lowest medical insurance standard among similar drugs.
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Overseas Markets 7.3 Improving Healthcare Standards
When developing and expanding overseas markets the Group has taken into account local economic development and healthcare Against the backdrop of growing global healthcare demand problems of uneven distribution of medical resources and imbalanced
levels as well as the pricing of comparable products in order to set reasonable prices in line with regional development conditions and technological development remain prominent particularly in many developing countries where patients still struggle to access
avoid adding to patients' economic burden. We fully assess per capita income levels in each region analyze the affordability of local timely effective and affordable medical services. Facing this global challenge Joincare actively leverages its professional expertise
patients and on this basis implement differentiated tiered pricing strategies across different markets. At the same time during the in the pharmaceutical and health field committed to promoting improvements in public health. We continuously strengthen public
promotion of products in developing countries overseas we actively participate in local government tenders committed to providing health awareness through practical actions such as disseminating knowledge on chronic disease prevention and advocating the
affordable medicines and services locally. rational use of antibiotics; at the same time we proactively participate in and support healthcare capacity building programs in
Livzon Group a controlling subsidiary of Joincare consistently applies fair pricing policies based on product affordability and is developing countries contributing solid strength to advancing global health equity and sustainability.committed to improving pricing transparency for its products in both developed and emerging markets. For formulation products
Livzon Group strictly follows local government pharmaceutical pricing policies in developing countries; the generic drugs sold are
typically priced at 60%–70% of originator drugs. For API products Livzon Group reduces intermediate channels by selling directly 7.3.1 Involvement in Capacity Advancement Initiatives
to formulation manufacturers gaining accurate knowledge of terminal customer procurement prices thereby improving pricing
transparency while reducing local drug supply costs.Joincare closely follows the development of healthcare in low- and middle-income countries and based on the Group's
Livzon Group Pricing Policies and Implementation by Business Segment internationalization strategy actively participates in healthcare service capacity advancement programs in low- and middle-income
countries working hand in hand with local partners to help low- and middle-income countries improve their healthcare service levels.Business Pricing policies Pricing
Providing Training for Local Healthcare Workers
Carry out commercial cooperation with about
more than 50 customers in India supplying 20 While steadily expanding the formulation market in developing countries the Group has always regarded improving local medical
Continuously reduce the production costs of APIs. kinds of APIs and intermediates. Among them the capabilities as an important responsibility. We export high-quality medicines such as Meropenem for Injection to the Philippines
Sell APIs and intermediates in emerging markets/ selling price of intermediates is approximately 5%- Ukraine Vietnam Pakistan Peru Chile and other countries and systematically carry out product registration clinical promotion
developing countries at prices lower than those 10% lower than that in developed countries and and safe use training assisting partners in conducting in-depth instruction and hands-on guidance for local healthcare workers. In
in developed countries to reduce the medication the selling price of APIs is about 20%-30% lower addition Livzon Group a controlling subsidiary of Joincare actively organizes overseas academic exchanges and training activities
costs for the target market countries. than that in developed countries.APIs sharing product clinical application experience and practical skills with healthcare workers in developing countries helping local
Adhere to the principle of fair pricing for both Implement differentiated pricing strategies for medical personnel improve their professional competency and thereby ensuring that medicines can safely and effectively benefit
domestic and overseas markets. For domestic certain premium antibiotic segments. For certain more patients genuinely supporting the continuous improvement of local healthcare service systems.strategic partners by signing an annual supply premium antibiotic product lines a differentiated
agreement certain price discounts will be given pricing strategy has been implemented with prices
according to the purchase quantity. in non-regulated markets for certain products
being 23%–40% lower than those in regulated
markets. Case
Livzon Group Provides Academic Training for Indonesian Healthcare Workers
Formulate reasonable prices that are in line For regions such as South Asia Southeast Asia
with the local development level and provide Eastern Europe Central Asia South America and During the Reporting Year Livzon Group in partnership with local Indonesian partners systematically advanced product
formulated drugs in the markets of Asia Africa Africa price policies for formulated drugs that awareness and standardized clinical application of Ilaprazole Sodium for Injection. Through a combination of online and
Formulations
and Latin America which are cheaper than the are cheaper than the on-patent formulations and offline approaches Livzon Group conducted over 20 professional training sessions at major city hospitals in Jakarta Bandung
on-patent formulations and can achieve similar can achieve similar therapeutic effects have been Surabaya and Semarang covering the drug's clinical characteristics therapeutic advantages and standardized operations
therapeutic effects. provided or formulated. cumulatively reaching over 1000 local doctors and nurses. Through a series of professional training and enablement
activities Livzon Group effectively improved local healthcare workers' level of awareness and application capability regarding
innovative treatment approaches not only laying a solid clinical foundation for the product's differentiated positioning
Actively inquire about the prices of multiple and long-term development in Indonesia's premium hospital market but also genuinely enhancing local diagnostic and Conduct thorough research on the terminal selling
transportation companies seek freight services treatment capabilities for gastrointestinal diseases from the perspective of medical capacity building enabling more patients
prices of products and formulate more preferential
Reagents with the best quotations and provide customers to benefit from standardized and advanced treatment approaches.product prices in less developed countries and
with transportation methods that are low in cost
low-income countries.and high in cost-effectiveness.
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Helping Improve Local Production Capabilities
As an important supplier of APIs Joincare and its controlling subsidiary Livzon Group continuously work to advance production Case
capacity building and technology sharing in less developed countries and regions overseas assisting in improving the manufacturing
capabilities of local producers so that they meet applicable international pharmaceutical manufacturing standards. By investing Livzon Group Conducts Localized Production Cooperation in Bangladesh
in and building an API factory in Indonesia with introduction of advanced production equipment and management experience
this effectively drives systematic upgrades in local production processes and technology applications not only enhancing local Joincare's subsidiary Livzon Group conducts localized production cooperation in Bangladesh through technology transfer
producers' capability to supply high-quality APIs but also supporting downstream pharmaceutical enterprises in producing more contributing to the enhancement of local pharmaceutical manufacturing capabilities and improving drug accessibility. In
competitive drugs thereby gradually improving regional medicine accessibility to better meet local residents' medical needs. response to the long-standing reliance on imports and treatment gaps in the local reproductive health sector Livzon Group
officially signed a cooperation agreement in 2024 with a leading local reproductive health company in Bangladesh to initiate
localized production of Recombinant Human Chorionic Gonadotropin for Injection. Centered on technology transfer this
cooperation drives the transition of this drug from import dependence to local self-sufficiency. It is expected to fill treatment
Case gaps in Bangladesh's reproductive health sector directly benefiting over 3 million patients. Through supply chain localization
the initiative will reduce drug prices and enhance the accessibility and affordability of high-quality biologics in the region.Joincare Establishes a Joint Venture Factory in Jakarta
PT Livzon Pharma Indonesia is a strategic joint venture between PT KALBE FARMA TBK. (Kalbe) and Livzon Group a
controlling subsidiary of Joincare. Since its establishment in July 2024 it has actively carried out production operations in
Indonesia committed to comprehensively enhancing the development level of Indonesia's pharmaceutical industry through Supporting Local Pharmacovigilance
localized API production. The joint venture strictly adheres to global sustainable development principles paying attention
to responsible procurement and environmental management during the production process and actively participating in
community activities taking concrete action to improve healthcare services and quality for the Indonesian people. Pharmacovigilance efforts in developing countries have started relatively late and progress has been slow facing a series of
issues requiring urgent resolution. Joincare's Tobramycin Inhalation Solution is currently advancing drug registration work in the
The company draws on its own technical expertise deeply integrated with Kalbe's extensive market knowledge accumulated Philippines. Since the commencement of registration we have jointly established a communication mechanism and working
in Indonesia providing strong support for the joint venture's development. In terms of production standards PT Livzon system for both parties' pharmacovigilance teams with local pharmacovigilance personnel carrying out monitoring identification
Pharma Indonesia is built in accordance with GMP standards providing a solid guarantee for producing high-quality drugs. assessment and prevention activities for adverse reactions and other potential drug-related issues following product launch to
As localized supply is progressively realized the establishment of the joint venture is expected to reduce local production ensure the scientific and rational clinical use of this product after launch in the Philippines safeguard clinical medication safety
costs improve market response speed and effectively reduce Indonesia's dependence on imported drugs. In addition the improve patients' physical condition and enhance patients' quality of life. At the same time we use agents to research and monitor
joint venture promotes local technology transfer and the enhancement of R&D capabilities and by introducing advanced the overseas use of regulated medicines provide business training to local staff regularly receive adverse event reports and assist in
technology and concepts ultimately achieves the goal of raising the level of local pharmaceutical production helping improving the local pharmacovigilance system for these medicines.Indonesia's pharmaceutical industry move to a higher level.Case
Livzon Group Enhances Antibiotic Accessibility in Emerging Markets Through High-Quality API Supply
In many emerging markets and developing countries the supply of high-end antibiotics has long depended on
imported expensive sterile APIs from Europe directly driving up end-user drug prices and potentially affecting supply
stability. Livzon Group attaches great importance to this situation and has established a high-end antibiotic sterile API
lyophilization production line that meets international high standards. During the Reporting Year the Company secured
initial orders from customers in South America. By providing high-quality and more cost-competitive APIs Livzon assists
local partners in reducing production costs thereby improving the affordability and accessibility of critical antibiotics in
these regions.
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7.3.2 Addressing Antibiotic Resistance 7.3.3 Popularizing Health Knowledge
Antibiotic resistance has become one of the major global public health risks posing serious threats to human health. Joincare Respiratory diseases are China's third most prevalent chronic disease category after cardiovascular diseases and diabetes. In recent
deeply recognizes the challenges and issues of antibiotic resistance and primarily takes measures from the following three aspects years the incidence of respiratory diseases such as asthma and chronic obstructive pulmonary disease (COPD) has continued to rise
to address it: domestically. Epidemiological surveys show that adult asthma patients in China have reached 45.7 million child asthma patients 15
million and the COPD patient population exceeds 100 million. We actively respond to the requirements of the "Healthy China 2030"
Responsible production: During the production of antibiotics we strictly control the discharge of wastewater waste gas and strategy systematically building an online and offline respiratory disease health education network. Through diverse approaches
waste residue to prevent antibiotics from entering the natural environment. We also refine the production process to improve the such as new media health live streams publishing authoritative academic content supporting cutting-edge clinical research and
production efficiency of antibiotics and reduce waste generation. organizing professional academic activities we effectively improve public awareness of chronic diseases such as asthma and COPD
promote early lung function screening for high-risk populations and take practical action to support the achievement of national
Responsible use: We place great emphasis on the rational clinical use of antibiotics and strictly comply with the Management respiratory disease prevention and control goals.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" Case
and promote the management of physicians' prescription rights and control of medicine-resistance bacteria. Training lessons and
lectures on optimizing medicine-resistance bacteria treatment schemes are given to improve the clinical efficacy of antibiotics "Respiratory Experts' Views" Series Public Interest Activities
and effectively prevent misuse.Joincare focuses on respiratory diseases and carries out the "Respiratory Experts' Views" series of public interest activities building
Responsible R&D: We continue to carry out R&D to limit or prevent antibiotic resistance explore the mechanism of resistance a health awareness-oriented new media platform. Through new media channels such as WeChat Official Account Douyin and
through cooperation with third parties and study new ways of drug administration by taking the advantage of fewer dosage of Weibo the platform invites well-known experts and scholars from top-tier hospitals to serve as speakers providing the general
inhalation formulations to ensure reasonable drug administration. Meanwhile we are conducting post-marketing studies on public with a chronic respiratory disease health awareness education platform and authoritative disease information platform.Tobramycin Inhalation Solution which shows a low risk of resistance based on its resistance indicators in Phase III clinical trial.During the Reporting Year as part of the "Respiratory Experts' Views" series of public interest projects we held diverse popular
science activities during World COPD Day World Asthma Day and Bronchiectasis Day cumulatively conducting over 500
During the Reporting Year we advanced antibiotic resistance research through a combination of "internal R&D breakthroughs + activities. Reaching deep into communities healthcare institutions and public venues and through approaches such as expert
external resource collaboration" progressively building a mature and diversified anti-resistance drug pipeline to fill gaps in the free clinics patient education and interactive experiences we brought disease prevention and control knowledge to the public
relevant field providing innovative solutions to the global antibiotic resistance challenge. effectively improving public awareness of respiratory diseases and self-management capabilities demonstrating the enterprise's
sense of responsibility as a "guardian of respiratory health" through public interest practice and injecting powerful momentum
into the building of social consensus for "early screening and treatment scientific lung protection".Case During "World Asthma Day" 2025 "Respiratory Experts' Views" focused on "Extending the Benefits of Inhalation Treatment
to All Asthma Patients" conducting a series of health awareness lectures and health awareness live streams in over 200 cities
Joincare Novel Beta-Lactamase Inhibitor Injection Advances Infection Treatment across the country spreading asthma health management and first aid knowledge through interactive activities such as
During the Reporting Year the novel beta-lactamase inhibitor injection that we are fully developing — China's first and health awareness Q&A reaching millions of members of the public.the world's only formulation for use in combination with meropenem — has entered Phase I clinical trials. Meropenem During "World Bronchiectasis Day" 2025 "Respiratory Experts' Views" partnered with 247 top-tier hospitals across the country
as a representative carbapenem antibiotic is widely regarded as "one of the last lines of antibiotic defense" due to its to conduct health awareness activities providing detailed introductions to the pathogenesis diagnostic methods and latest
highly efficient and broad-spectrum antibacterial properties. However bacteria have developed resistance to it through treatment advances for bronchiectasis.mechanisms such as producing beta-lactamases reducing its efficacy. The novel beta-lactamase inhibitor injection During "World COPD Day" 2025 "Respiratory Experts' Views" participated in the "2025 World COPD Day health awareness
developed by Joincare can precisely inhibit the enzyme activity of resistant bacteria effectively restoring antibiotic Conference" jointly organized by the Guangzhou National Laboratory and the Guangdong Society for Respiratory Health
efficacy and through the injection format with localized action significantly reduces the risk of systemic side effects inviting multiple authoritative respiratory experts to discuss key topics including popularization of lung function testing
from traditional systemic administration (such as gastrointestinal discomfort and allergic reactions) providing patients optimization of COPD diagnosis and treatment innovation in non-pharmacological treatment and winter protection.with safer and more effective treatment options.As at the end of the Reporting Period we had conducted over 300 "Respiratory Experts' Views" health awareness live streams
covering over 230 top-tier hospitals in 26 provinces across the country with over 360 experts from departments including
Case respiratory medicine critical care infectious diseases surgery geriatrics and tuberculosis invited to participate. At the same time in partnership with both doctors and patients we advanced the establishment of respiratory disease patient communities
jointly building over 100 patient communities covering over 20000 patients with over 30 top-tier hospitals across the country
Joincare and Partners Jointly Accelerate Development and Commercialisation of Novel Polymyxin deeply participating in co-management initially forming a collaborative management model of "patient mutual assistance
(BRII-693) medical staff guidance and brand empowerment" genuinely improving patients' self-health management capabilities.
BRII-693 is an investigational novel synthetic lipopeptide for treating critically ill patients with multi-drug resistant and
extensively drug-resistant (MDR/XDR) Gram-negative bacterial infections particularly infections caused by carbapenem-
resistant Acinetobacter baumannii (CRAB) Pseudomonas aeruginosa (CRPA) and Enterobacteriaceae (CRE). BRII-693 was
developed through iterative structural modifications to the polymyxin scaffold designed to enhance antibacterial potency
while reducing the toxic effects commonly associated with older polymyxin formulations such as nephrotoxicity and
neurotoxicity. During the Reporting Year we signed an intellectual property licensing and technology transfer agreement
with Brii Biosciences obtaining exclusive rights to research develop and commercialize BRII-693 in Greater China jointly
providing critical care medicines for Chinese patients facing life-threatening infections."Respiratory Experts' Views" Series Public Interest Activities
119 2025 Sustainability Report 120About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
Case 7.4 Promoting Industry Development
Joincare Participates in Nanshan Popular Science Conference
During the Reporting Year Joincare was invited to participate in the Nanshan Joincare is committed to being a pioneer in the health industry actively participating in industry association exchange and cooperation
Popular Science Conference themed "Healthy Bay Area Intelligently Empowering activities jointly exploring cutting-edge industry technologies and trends and working together to promote the sustainable
the Future". The conference was jointly organized by the Guangzhou National development of the industry.Laboratory and the Guangdong Society for Respiratory Health and hosted by
institutions including the National Center for Respiratory Medicine. It brought
together cutting-edge scientific research and medical resources in the field
popularizing knowledge on respiratory disease prevention and treatment through Nanshan Popular Science Conference Joincare's Participation in Associations
approaches including academician and expert sharing scenario-based experiences
and interactive workshops improving public health awareness and self-health
management capabilities. No. Associations
1 Guangdong Pharmaceutical Profession Association
In addition we also focus on daily health management topics such as oral health wellness and women's health continuously 2 Guangdong Bio-Pharmaceutical Innovation Technology Association
conducting public interest popular science activities. Through new media channels such as Douyin Weibo and WeChat we carry out
expert popular science live streams and organize public interest lectures increasing the appeal and broad reach of health knowledge 3 Shenzhen Biomedical Industry Alliance
popularization committed to spreading health knowledge and enhancing public health awareness.
4 Shenzhen Life Science and Biotechnology Association
Case 5 China Pharmaceutical Industry Association
"World Oral Health Day" Health Awareness Activity 6 Professional Committee of Drug Manufacturing Quality Authorised Person of Guangdong Pharmaceutical Association
On 20 March 2025 the 19th World Oral Health Day we invited six experienced domestic dental doctors to form a popular science 7 China Nutrition and Health Food Association
team systematically delivering oral health knowledge through vivid and easy-to-understand video explanations and graphic 8 China Health Care Association
analyses precisely reaching over 20 million oral health audiences. We pay great attention to the spectrum from alleviating
immediate oral pain to conveying long-term health concepts and will continue to respond to the oral health public interest 9 Guangdong Food Safety Society
appeal in future enabling more Chinese people to be free from oral problems and realize the vision of "healthy mouth healthy
mind and body". 10 Guangdong IP Protection Association
11 Guangdong Forensic Science Association
Case 12 Shenzhen Forensic Science Association
"Pigmentation Removal Experts' Views" Health Awareness Program 13 Shenzhen Biomedical Industry and Education Alliance
In May 2025 we partnered with multiple experts from Beijing Tongren Hospital
Affiliated to Capital Medical University and Hangzhou First People's Hospital
to participate in the "Pigmentation Removal Experts' Views" popular science The Group continues to deepen industry exchange and academic development in the fields of respiratory medicine and critical care.program initiated by Xinhua Net providing in-depth explanations on how to Throughout the year we participated in 9 key domestic academic conferences including the Chinese Medical Association Annual
scientifically remove chloasma offering women effective pigmentation removal Conference on Respiratory Diseases the Chinese Medical Association Annual Conference on Respiratory Critical Care and the China
knowledge from a professional perspective. The total views of this activity's videos Medical Education Association Chronic Airways Conference as well as 2 international conferences including the World Bronchiectasis
exceeded 860000 successfully advancing health awareness on chloasma issues "Pigmentation Removal Experts' Conference and the European Respiratory Annual Conference. Centered on cutting-edge topics such as the application of inhaled
and promoting the concept of internal regulation in Traditional Chinese Medicine. Views" Health Awareness Program antibiotics advances in influenza diagnosis and treatment and bronchiectasis management we conducted multi-level exchanges with
domestic and overseas experts and clinicians systematically introducing the Group's products and latest R&D advances.Case Livzon Group a controlling subsidiary of Joincare actively builds a multi-party collaborative professional exchange platform and carries
out systematic medical capacity building projects extending the benefits of scientific advances and standardized treatment to a broader
"Menopause Experts' Views" Health Awareness Program population. For example in international academic exchange Livzon Group supported the "NCCN China-International Dialogue" online
high-level academic conference inviting authoritative international experts and leading domestic center experts to engage in in-depth
In May 2025 we partnered with multiple well-known national experts and scholars dialogue achieving "two-way empowerment" between China and overseas academia promoting the formation of consensus on
in gynecology endocrinology psychology nutrition and exercise rehabilitation localized NCCN guideline practice and the clinical standardization process. In domestic academic promotion Livzon Group co-hosted
to conduct Health Awareness live streams on WeChat Official Account video a special symposium at the 28th CSCO Annual Conference focusing on the scientific advances in domestic GnRH agonist microspheres
accounts Douyin Xiaohongshu and other platforms engaging in in-depth passing the consistency evaluation strengthening clinical confidence in high-quality domestic drugs and providing professional support
discussions on physical and mental health during menopause and Traditional for improving the accessibility of affordable treatment options. In overseas medical capacity building Livzon Group in partnership with
Chinese Medicine conditioning approaches with cumulative views exceeding local Indonesian partners conducted over 20 professional training sessions in major cities including Jakarta and Bandung through
2 million effectively providing women with scientific and effective menopause "Menopause Experts' Views" Health a combination of online and offline approaches cumulatively reaching over 1000 local healthcare workers genuinely improving
health maintenance knowledge and psychological regulation methods. Awareness Program local diagnostic and treatment capabilities for gastrointestinal diseases and enabling more patients to benefit from standardized and
advanced treatment approaches.
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7.5 Rural Revitalization
Joincare actively responds to the national call continuously advancing rural revitalization and focusing on two main themes of Through the above base construction Livzon Group attracts local farmers to participate in planting through land leasing labor
chronic disease prevention and treatment and industrial revitalization. We routinely conduct drug donations for chronic disease employment and order-based procurement driving the transformation of traditional farmers into industrial workers and building
prevention and treatment and leverage our own industrial advantages to invest in industrial assistance to support the sustainability stable income channels while jointly building standardized origin washing and processing workshops in Hunan Hubei Sichuan
of rural economies drive agricultural modernization and farmers' income growth and stimulate the endogenous development and other regions unifying processing standards and building a complete "planting-processing" industrial chain helping to improve
momentum of rural areas. rural industries' ability to capture value and withstand risks. In addition Livzon Group relieves the pressure of wild medicinal material
harvesting through large-scale and standardized artificial planting building a virtuous cycle of wild resource protection and rural
industrial development achieving multiple shared wins of farmer income growth rural industry strengthening and ecological
Chronic Disease Prevention and Treatment protection.To help achieve the national rural revitalization and common prosperity strategy Joincare together with its controlling subsidiary
Livzon Group continuously advances a long-term drug donation program — the "Access to Public Welfare for Chronic Diseases
Prevention and Treatment Program"— providing long-term assistance to economically disadvantaged patients in remote ar- 7.6 Social Contributions
eas suffering from chronic diseases such as hypertension hyperlipidemia cardiovascular and cerebrovascular diseases and
gastric diseases. Through donating five types of chronic disease treatment drugs — including pravastatin sodium capsules am-
lodipine besylate capsules valsartan capsules isosorbide mononitrate tablets and bismuth potassium citrate tablets/granules We adhere to the corporate culture of "Caring and Helping People Pragmatic Public Welfare" continuously building long-term
— we take concrete action to alleviate the economic burden on low-income families from long-term medication for chronic mechanisms and encouraging employees to actively participate in volunteer services carrying out diverse volunteer service work
diseases preventing patients from "falling into poverty due to illness or returning to poverty due to illness." such as community support and blood donation genuinely fulfilling social responsibilities and conveying humanistic care and
warmth.From the end of 2018 to the present we have successfully carried out the "Access to Public Welfare for Chronic Diseases Prevention
and Treatment Program" in areas including Chaotian District of Guangyuan City in Sichuan Province Songpan County in Ngawa
Tibetan and Qiang Autonomous Prefecture Jinganghe District of Leshan City Jiange County Pingwu County and Tongjing County; Community Welfare
Hunyuan County Guangling County Lingqiu County Fangshan County and Shilou County of Datong City in Shanxi Province;
Dongxiang County Tianzhu County Linze County Shandan County Huining County Sunan County Suzhou District and Weiyuan
County in Gansu Province; Xianghai National Nature Reserve in Jilin Province; Macun District and Hua County of Jiaozuo City in In May 2025 we established a normalized school-enterprise docking mechanism with a local primary school organizing employee
Henan Province; Huangshan District of Huangshan City in Anhui Province; Suining County in Hunan Province; Fenyi County in Jiangxi volunteers to invite primary school students to visit and experience the enterprise driving precise alignment of the Group's resources
Province; Jiangshan City in Zhejiang Province; Rongjiang County in Guizhou Province; Neiqiu County in Hebei Province; Xianfeng with community education needs building a platform for community-enterprise co-construction practice genuinely fulfilling
County in Hubei Province; Chayu County Bomi County Gaize County and Nyingchi City in the Tibet Autonomous Region; Kashgar corporate social responsibility and enhancing the public interest influence in the local community.City in Xinjiang Uyghur Autonomous Region; Balinzuo Banner and Togtoh County in Inner Mongolia; and Ziyuan County in Guangxi In June 2025 we organized ethnic minority employees of the Group to participate in activities including the "Ethnic Integration
Zhuang Autonomous Region among other areas. We take practical action to extend health benefits to the public protect the health Heart in Heart — Mutual Inclusion" Community Work Building Exhibition and the "Celebrating the 15th National Games Ethnic Unity
of rural residents and use the strength of the enterprise to revitalize beautiful rural areas and build a beautiful and healthy China. as One Family" Walking Event allowing employees to experience the charm of diverse cultures through shared participation and
enjoyment effectively forging a strong sense of community of the Chinese nation and consolidating the powerful centripetal force of
As of the end of the Reporting Period the project has covered 37 remote areas requiring assistance across 12 provinces and 4 ethnic unity.autonomous regions nationwide helping 48234 low-income chronic disease
patients. In 2025 we donated chronic disease treatment medications to
patients in need in the following areas: Rong'jiang County Guizhou Province; Volunteer Activities
Neiqiu County Hebei Province; Linzhi City Tibet Autonomous Region;
Fangshan County Shanxi Province; Shilou County Shanxi Province; Shandan
County Gansu Province; Xianfeng County Hubei Province; Tongjiang County In September 2025 the Group actively organized employees to carry out voluntary blood donation public interest activities.Sichuan Province; Hua County Henan Province; Suzhou District Gansu Employees enthusiastically participated and contributed their love practicing social responsibility through concrete action
Province; and Weiyuan County Gansu Province. effectively conveying the enterprise's positive energy and promoting the civilized custom of selfless dedication and caring for society Donation Ceremony
demonstrating the enterprise's sense of responsibility and humanistic care.Industry-based Assistance Emergency Donations
We fully leverage our own industrial resources and professional expertise deeply integrating industrial assistance into the rural In November 2025 a Grade 5 fire broke out at Wang Fuk Court in Tai Po Hong Kong drawing widespread concern from all sectors of
revitalization strategy to help support rural economic development in a sustainable manner. Livzon Group a controlling subsidiary society. Joincare and its controlling subsidiary Livzon Group responded with urgency and deep concern jointly donating a total of
of Joincare focuses on the traditional Chinese medicine (TCM) material industry driving the construction of standardized local bases HKD 20 million to the Hong Kong Red Cross to support emergency relief transitional resettlement and post-disaster reconstruction
and fulfilling corporate assistance responsibilities. Relying on the "company + supplier + planting cooperative/large-scale planter" co- for affected residents standing side by side with the people of Hong Kong in overcoming this difficult time.construction base model Livzon Group continues to advance standardized planting of TCM materials. To date more than 16000 mu
of various standardized planting bases have been newly built or jointly built covering 217 mu of forsythia and 30 mu of rehmannia
demonstration planting bases in the authentic production areas of Linfen Shanxi as well as 3 isatis root bases (totalling 9600 mu)
3 rehmannia bases (totalling 850 mu) 3 sweet flag bases (totalling 2100 mu) and completion of base layouts for multiple varieties
including agastache turmeric anemarrhena and saposhnikovia.
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PART
08
Green Operations
Joincare has always held firm to its green development mission using compliance with
environmental regulatory requirements as the fundamental baseline and penetrating green
low-carbon concepts into every aspect of operations management. We actively promote
clean energy substitution practice low-carbon operations strengthen resource conservation
and strictly control pollutant and waste emissions comprehensively improving the level of
refined environmental management within the enterprise and contributing to the harmonious
coexistence of humans and nature and the building of a green ecological development model.SDGs in this section
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8.1 Environmental Compliance Management
Joincare strictly complies with laws and regulations related to environmental protection such as the Ecological and Environmental 8.1.1 Policy and Targets
Code of the People's Republic of China Environmental Protection Law of the People's Republic of China the Energy Conservation
Law of the People's Republic of China the Air Pollution Prevention and Control Law of the People's Republic of China Law of the
People's Republic of China on Prevention and Control of Environmental Pollution by Solid Waste and the Water Law of the People's Joincare adheres to the environmental management policy of "pollution prevention legal compliance and continuous
Republic of China and actively promotes the construction of internal environmental management systems. Improvement". This year based on an evaluation of the completion of its energy conservation and emissions reduction targets
for the period 2021–2025 and taking into comprehensive consideration factors including its own business development industry
We have formulated the EHS Management Policy to standardize management requirements for the Group and all its subsidiaries in trends and the external environment Joincare has updated its environmental performance assessment criteria using 2025 as the
key areas such as "three wastes" (wastewater exhaust gas and solid waste) energy chemicals and water resources continuously base year to set energy conservation and emissions reduction targets for 2030. We require all production subsidiaries to implement
improving our environmental management practices. We have issued and continuously updated core management systems refined management of energy and natural resources embedding the philosophy of energy conservation and emissions reduction
including the Safety and Environmental Management Manual General Requirements for the EHS Management System and into every aspect of production and operations so as to collectively drive the achievement of these targets.Requirements for Identification and Assessment of Environmental Factors building a full-process environmental management
system and enhancing the operational effectiveness of the Group's environmental management system. At the same time through Joincare Energy Conservation and Emission Reduction Targets
conducting environmental incident risk assessments establishing risk prevention management mechanisms and improving
emergency response plans for sudden environmental incidents we have comprehensively built the environmental safety defense
line. In 2025 no major environmental pollution incidents occurred across Joincare's production subsidiaries and no environmental Indicator Final Target by 2030
administrative penalty events occurred. Comprehensive energy consumption per unit production (RMB10000) Down 5% from 2025
In the area of environmental pollution prevention the Group has formulated and implements the "Three Simultaneities" policy Water consumption per unit production (RMB10000) Down 5% from 2025
requiring each production subsidiary to ensure that pollution prevention and control facilities for construction projects are designed
constructed and commissioned simultaneously with the main project. We have established a full lifecycle management mechanism Air pollutant emission per unit production (RMB10000) Down 8% from 2025
for pollution treatment facilities regularly conducting facility inspections maintenance and calibration to ensure stable and Disposal volume of non-hazardous waste per unit production (RMB10000) Down 5% from 2025
compliant facility operations. We continue to increase investment in environmental protection technology upgrades advancing
the upgrading of pollution treatment facilities and the clean renovation of production processes to improve pollutant emission
reduction efficiency. In addition we regularly conduct dedicated training for all employees on topics such as energy consumption
reduction efficient water resource utilization and waste reduction and resource recovery guiding employees to optimize energy To continuously improve the enterprise's environmental management level and performance the Group has established annual
and water resource utilization efficiency and improve energy management and standardized waste management performance. environmental compliance targets supervising each production subsidiary's compliant discharge from four dimensions: wastewater
and exhaust gas discharge compliance hazardous waste compliant disposal rate occurrence of major environmental pollution
In terms of environmental management system building the Group proactively advances environmental management system and incidents and environmental penalties during the year.Green Factory certification to drive the implementation of environmental management work. As at the end of the Reporting Period
the Group headquarters and all production subsidiaries have passed the ISO 14001 environmental management system certification
with a 100% certification rate. In addition among all the Group's production enterprises 6 have obtained "National Green Factory" Targets of environmental compliance in the operation of Joincare in 2025
certification 1 has obtained "Provincial Green Factory" certification and 6 have conducted HAZOP (Hazard and Operability) analyses
for their higher-risk production lines. Indicator Annual Targets Achievements
Compliant rate of wastewater and exhaust gas emissions 100% Achieved
2025 Joincare Environmental Protection Investment Expenditure Compliant hazardous waste disposal 100% Achieved
Number of major pollution accidents 0 Achieved
Expenditure Category Amount (RMB10000)
Number of environmental penalties in the year 0 Achieved
Environmental protection equipment and technology
2966.6
upgrade investment
Environmental protection operations and maintenance
9200.6
investment
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8.1.2 Management Structure 8.1.3 EHS Audits
To enhance the EHS management level Joincare continuously improves the EHS management structure to define responsibilities Internal Audit
and ensure their performance according to the EHS Management Policy . As the highest responsible body the Sustainability
Committee of the Board of Directors is responsible for formulating EHS-related strategies and policies such as those on
environmental management and resource utilization regularly reviewing the Group's performance in environmental management Joincare strictly implements internal audit procedures in accordance with the Group EHS Internal Audit Management Procedure
performance and reporting EHS issues to the Board of Directors. 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
EHS Management Structure 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
The Sustainability Committee of the Board of Directors is Sustainability Committee review. Corresponding production subsidiaries shall rectify unqualified items found in the internal audit under the guidance of the
responsible for formulating EHS-related strategies & policies and of the Board of Directors Management Regulations on Corrective and Preventive Measures. In 2025 the Group headquarters and its subsidiaries conducted a
reporting the relevant issues to the Board of Directors. total of 34 EHS internal audits; all non-conformances identified in EHS internal audits throughout the year have been rectified with a
100% rectification completion rate.
The EHS Management Committee coordinates the overall EHS EHS Management
management of the Group Committee Each of the Group's production subsidiaries proactively fulfils their principal environmental safety responsibilities regularly
conducting self-inspection and self-correction work with a focus on verifying the stability of pollutant treatment equipment disposal
methods for solid waste and execution of emergency drills. Any non-conformances identified during verification are immediately
The EHS Department of the Group supervises and manages EHS Department of the rectified strictly ensuring EHS execution compliance and building the grassroots defense line for the effective operation of the
the implementation of EHS work in each production subsidiary Group Group's EHS management system.External Audit
Each Functional Department of the Group is responsible
for its own EHS work Functional Departments of Production subsidiaries of
the Group the Group
Each production subsidiary of the Group is responsible for Joincare conducts an EHS external audit annually and engages qualified third-party certification agencies to audit and supervise
its own EHS work and reports to the Group regularly 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 identify opportunities for improving energy performance water efficiency
and waste performance and strengthen management requirements of all kinds. Besides we review the energy use within the ISO
Production subsidiaries of the Group have also developed a standardized EHS management system. As the first responsible systems. Based on the evaluation of energy use and energy consumption Joincare identifies the overall energy use by category. We
person for EHS the general manager is in charge of the overall environmental protection work; as the directly responsible persons refine the management of facilities and equipment with a huge impact on this front identify and prioritize opportunities for better
supervisors or department managers are in charge of the preparation of EHS initiatives filing to the EHS Department of the Group energy performance and devise targeted improvement measures. In 2025 all non-conformances identified during the audit process
and supervision of the implementation of specific initiatives; and the employees of the subsidiaries cooperate with the Group's EHS have been rectified and successfully passed the external audit.policies 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 Sustainability 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 executive-level Sustainability Committee members since 1
January 2022 with a weight of 10% in the total performance system. ESG indicators and their weights are as follows:
Weight of ESG indicators in the assessment of executive-level Sustainability Committee
Energy conservation and Carbon emission ESG rating Total weight of ESG
emission reduction targets targets objectives indicators
3%3%4%10%
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8.2 Addressing Climate Change 8.2.2 Strategy
Climate change is a serious challenge facing all humanity which will have significant impacts on external stakeholders of enterprises. Climate Scenario Analysis
If enterprises fail to effectively address climate change resource consumption and environmental burden will worsen. High-carbon
production processes continuously discharge greenhouse gases exacerbating global warming and energy consumption; frequent
extreme weather events lead to facility damage and energy interruptions and are more likely to trigger production accidents The Group is deeply aware of the importance of climate scenario analysis for climate risk assessment and management and uses
and pollutant leaks damaging the ecological environment. Conversely if enterprises actively implement low-carbon transition the following scenarios as one of the reference factors for climate risk and opportunity assessment to better predict the potential
environmental pressure can be reduced. Clean energy substitution will reduce carbon emission intensity and slow climate warming; climate risk impacts under low-emission and high-emission scenarios improve business resilience and formulate emission
green processes can reduce the generation of emissions and lower environmental risks. reduction pathways. During the Reporting Year we focused on assessing the severity and time horizon of physical risk impacts under
different scenarios; assessment results are detailed in the "Table: Climate Risk Identification and Response Situation".Joincare actively adapts to international trends strengthening climate risk management and response while working to seize green
development opportunities created by climate change committed to reducing the impact of climate change on human health and
enterprise operations and helping achieve the country's carbon peak and carbon neutrality targets. Following the recommendations
of the Task Force on Climate-related Financial Disclosures (TCFD) we manage and disclose climate-related matters from four Low- SSP 1-2.6: In this scenario a sustainable society consuming mostly clean energy countries have realised
dimensions: governance strategy risk management and metrics and targets. Since 2023 we have responded in detail to the CDP Emission the seriousness of climate change intensified climate action and adopted stronger climate policies to
climate change questionnaire based on the Group's climate management situation for three consecutive years and plan to continue Scenarios reduce carbon emissions and limit global warming to well below 2 ° C. At the same time continued tech-
responding in future years. nological 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 CO2 emissions have
declined significantly but at a slower pace to reach net-zero emissions after 2050.
8.2.1 Governance 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
The Group relies on its sustainable development governance system to build a climate governance structure consisting of the Board and improved energy efficiency. Technological innovation and increased public awareness have facilitated
of Directors' Sustainability Committee the Sustainability Working Group and the EHS department advancing climate change the transition to a low-carbon economy and driven positive corporate action to reduce emissions. The goal
management work in an orderly manner from the top down. of net zero emissions will be achieved by 2050.Comprises three directors (including one independent director) with the Chairman serving
as the Chair of the Committee. Receives at least one annual briefing from the Excecutive-level High- SSP 5-8.5: In this scenario the emissions path remains unchanged. The focus is on the climate impacts
Board Level —Board- Sustainability Committee on climate-related issues. Emissions of physical risk factors and countries have not adopted strong climate policies. Global temperatures are
level Sustainability scenarios projected to rise by more than 2.5° C by 2055 which could lead to rising sea levels changes in weather pat-
Committee As the highest management body is responsible for formulating and improving climate terns and more intense and frequent extreme weather events.strategy reviewing climate risk management policies reviewing climate-related targets and
their progress and overseeing the implementation of climate change response actions. 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
The Group CEO serves as the leader responsible for overall oversight; other senior management clean energy technologies in accordance with existing policy frameworks and plans. Global CO2 emissions
personnel serve as deputy leaders to assist with oversight.Executive Level — are reduced in this scenario and there is a 50% chance of limiting the global average temperature increase
Executive-level to 2.4° C by 2100.Responsible for conducting in-depth research and analysis on the Group's and each production
Sustainability
subsidiary's development status accurately identifying major climate-related risks for the
Committee
Group formulating corresponding response strategies and reporting to the Board-level In light of the above climate scenarios for Joincare under low-emission scenarios the acceleration of global low-carbon transition
Sustainability Committee annually. and continuous tightening of environmental protection policies will mean the Group faces higher transition risks requiring greater
investment in clean energy substitution low-carbon production technology upgrades and production process renovation while
Leads climate change-related implementation work including compiling climate risk lists also needing to quickly adapt to policy changes and industry low-carbon standards. Under high-emission scenarios rising global
Primary Responsible identifying and assessing climate-related risks analyzing and listing climate-related potential temperatures leading to increasingly frequent extreme weather events will mean the Group faces higher physical risks; extreme
Department — EHS development opportunities; jointly discusses with other business departments to formulate weather may cause damage to production plants and production equipment failures leading to production stoppages and may also
Department response measures and set targets based on assessed climate risk scores. disrupt supply chain stability affecting raw material supply and product delivery. In response we continue to strengthen climate
risk forecasting continuously explore the formulation of transition plans proactively transition towards low-emission development
models balancing risk prevention and opportunity identification and achieving synergistic advancement of green development and
business improvement.
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Climate-Related Risk and Opportunity Assessment
The Group incorporates addressing climate change into decision-making considerations for the company's strategy continuously monitoring the impact of climate change on the Group's production operations in the short medium and long term. We invite each of the Group's production
subsidiaries to participate in climate risk and opportunity assessment work systematically identifying and refining climate-related risks and opportunities closely related to the Group's own operations and upstream and downstream value chain from day-to-day work and formulating targeted
response measures. Climate risk and opportunity assessment results are reviewed annually to improve the Group's overall climate change response capability.Climate Risk Identification and Response Situation7
Risk Category Business and Financial Impact Risk Assessment Risk Response Measures
Climate change causes high-intensity typhoons to occur more frequent-
ly (e.g. once-in-50-year or once-in-100-year severe typhoons or super Likelihood: Approximately Likely Closely monitor climate change trends formulate extreme weather
Physical Risk — Acute typhoons) bringing sustained strong winds and torrential rain that can
Typhoons Low-emission scenario: Severity of impact: Medium; Time horizon: Short-term emergency plans based on actual conditions and conduct emergen-
Risk affect power transmission to plants leading to water and power outages or
equipment damage reducing enterprise production capacity and threat- High-emission scenario: Severity of impact: Medium; Time horizon: Short-term
cy training;
ening enterprise property safety. Establish typhoon disaster weather response task forces ensure
emergency supplies reserves inspect drainage systems in the
relevant areas and ensure effective response to flooding caused by
heavy rain;
Continuously monitor geographic and climate information and take
out all-risk property insurance for all operating locations;
Climate change is causing the number of heavy rainfall days and rainfall
intensity to increase across most of China causing rivers lakes and coastal Xinxiang Haibin and Jiaozuo Joincare have established flood Likelihood: Approximately Likely
Physical Risk — Acute waters to increase in volume and water levels to rise and overflow or due response task forces and party member emergency teams and
Heavy Rain (Flooding) Low-emission scenario: Severity of impact: Medium; Time horizon: Short-term
Risk to inadequate drainage causing plant sites buildings and other facilities to procured adequate flood prevention materials to enhance flood
become waterlogged or flooded leading to production stoppages equip- High-emission scenario: Severity of impact: High; Time horizon: Medium-term response capabilities.ment damage or inventory losses.Effective cooling and heat stroke prevention measures have been
Under the influence of climate warming both daily maximum and mini- implemented with heat allowances issued to on-duty employees in
mum temperatures in China will rise with increasing frequency of extreme Likelihood: Likely summer and enhanced labor protection work for high-temperature
Physical Risk — Chronic Rising Average Tempera- high-temperature weather. Sustained work in high-temperature environ- Low-emission scenario: Severity of impact: Low; Time horizon: Short-term operations and high-temperature weather;
Risk tures ments will have negative impacts on employees' physical health while
plant air conditioning and refrigeration equipment will be placed under High-emission scenario: Severity of impact: Low; Time horizon: Short-term
Air conditioning has been installed in workshops and insulating
greater load leading to higher energy costs. materials with good thermal insulation properties are used for roof
and wall insulation treatment.
7 Time horizons (time over which a risk is expected to materialize): short-term (0-3 years) medium-term (4-10 years) and long-term (more than
10 years)
Likelihood (the likelihood that a risk is to materialize): basically certain very likely likely approximately likely unlikely and very unlikely
Severity of impact (the severity of a risk's impact on business performance): high medium-high medium medium-low and low
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Risk Category Business and Financial Impact Risk Assessment Risk Response Measures
Gradually reduce the use of high energy-consuming and high-
polluting production technologies and equipment explore the
Current regulations: Carbon trading requires enterprises whose carbon application of environmentally friendly technologies and reduce
emissions exceed allocations to purchase additional allocations on the Severity of impact: Medium the Group's own carbon emissions. During the Reporting Year the
Carbon Pricing and Carbon carbon market and conversely they may sell surplus allocations. Group's environmental protection equipment and technology
Likelihood: Very Likely
Trading Exceeding allocations may lead to increased enterprise operating costs. upgrade investment was RMB 29.666 million;
Over the past three years the Group has spent approximately RMB 560000 Time horizon: Short-term Continuously monitor carbon market dynamics and related
on purchasing carbon allocations. changes adjust operating strategies in a timely manner establish
a carbon emission accounting system set carbon emission targets
Transition Risk — Policy & and strengthen carbon allocation management.Regulations Continuously monitor national and local climate and environmental
policies to ensure operations comply with relevant policy
Emerging regulation and legal risk: Environmental protection-related requirements;
regulatory requirements are becoming increasingly stringent with national Severity of impact: Medium Strengthen communication and cooperation with government
Climate and Environmental and local governments successively introducing related policies causing environmental protection departments proactively participate in
Likelihood: Likely
Policies enterprises to face new environmental protection costs. If enterprises the policy formulation process and prepare responses in advance;
fail to meet new environmental standards they may face administrative Time horizon: Medium-term Establish an environmental compliance risk early warning
penalties. mechanism; if it is assessed that new environmental standards
may not be met actively take rectification measures to ensure
compliance with relevant regulations.Climate change causes the prices of raw and auxiliary materials required for Severity of impact: Medium-High Designate alternative suppliers for raw and auxiliary materials
Transition Risk — Market pharmaceutical production packaging material prices and energy prices key consumables and other materials; sign strategic cooperation
Rising Raw Material Prices Likelihood: Likely
Risk such as water and electricity to rise while logistics costs also increase agreements with key material suppliers; formulate supplier
which may affect supply chain stability. Time horizon: Medium-term supplementation plans to ensure stable material supply.Low-carbon technology may require substantial upfront investment for When investing in new technology or introducing new
R&D and equipment upgrades while the development of low-carbon Severity of impact: Medium-Low equipment conduct thorough project investigation and feasibility
Transition Risk — Low-Carbon Technology
equipment and production technology involves uncertainty. New Likelihood: Approximately Likely demonstration comprehensively assess the investment return
Technology Risk Transition
technology investment may fail due to immature technology or low market Time horizon: Medium-term period and feasibility select the most suitable mature technology
acceptance increasing sunk costs. and reduce the risk of investment failure.Carbon emission targets have been set and climate-related
Public concern about environmental topics continues to rise; failure Severity of impact: Medium-Low information is disclosed in the sustainability report and CDP climate
Transition Risk — to actively address climate change will affect the enterprise's overall change questionnaire;
Stakeholder Concerns Likelihood: Approximately Likely
Reputational Risk evaluation in the market causing reputational damage and in serious Communication with stakeholders has been strengthened to
cases may lead to a decline in product sales. Time horizon: Medium-term ensure timely response to stakeholders' concerns about the Group's
environmental performance.
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While bringing risks climate change also creates new opportunities for our business development. We closely monitor 8.2.3 Impact Risk and Opportunity Management
developments in domestic and overseas climate-related policies inviting each production subsidiary to identify and assess climate-
related opportunities from three dimensions: resource use efficiency clean energy substitution and market demand.To actively address the risks and opportunities brought by climate change the Group has incorporated climate risks and
8 opportunities into the comprehensive risk management process conducting annual climate risk and opportunity identification Climate opportunity identification and countermeasures formulating scientific climate change response plans and regularly reporting progress to the Board of Directors' Sustainability
Committee to ensure climate-related risks are effectively managed.Opportunity Impact Opportunity Assessment Measures to Seize Opportunity Our specific climate risk and opportunity management steps are as follows:
The Group actively engages in Lower energy and resource Step 1
energy conservation and emission The EHS departments of our subsidiaries collect peer reports industry research reports media
consumption can reduce
reduction projects and increases Making a list of reports relevant policies enacted by regulators and other external information and data. Based on
emissions and operating costs.Higher investments in green production potential climate risks this information as well as stakeholder surveys and internet searches they draw up a list of potential By adopting more efficient Severity of impact: medium
resource projects to continuously improve and opportunities climate risks and opportunities faced by their companies. In the process other relevant business
production technologies Likelihood: likely
utilization energy and resource efficiency divisions will support the EHS departments by collecting summarizing and sharing information on
companies can increase their
rate Time horizon: medium-term reduce costs and increase climate risks and opportunities faced by their departments.production capacity and
efficiency through technology
revenue while using resources
transformation and equipment Step 2
more efficiently. For each identified climate risk/opportunity assess from the following four dimensions:
upgrading. Determining (1) Expected time of occurrence (2) Likelihood of occurrence
assessment criteria (3) The severity of impact on the subsidiaries' (4) The severity of impact on the
financial plans subsidiaries' corporate strategies
The Group plans to accelerate the
construction of photovoltaic power Increasing the proportion of
generation projects and gradually
clean energy can effectively
increase the installed photovoltaic Step 3
reduce carbon emissions The EHS departments assess and score each risk/opportunity identified in the 4 dimensions in Step 2.Increased Severity of impact: medium capacity and annual photovoltaic and help achieve the Group's Scoring by the Based on their scores the risks and opportunities are ranked from the highest to the lowest and a list
proportion power generation.emissions reduction targets. Likelihood: approximately likely management by severity is created. The list is submitted to the heads of the relevant business divisions for initial
of clean The Group has initiated Replacing fossil fuels with clean approval and then to the general managers of the subsidiaries for final approval. Once approved it
energy Time horizon: medium-term photovoltaic projects in the
energy can help companies becomes the final annual list of risks and opportunities of the subsidiaries.qualified plants of all our
better manage the risk of rising
subsidiaries to continuously
fossil fuel prices in the future.improve self-sufficiency in clean Step 4 The EHS departments determine response measures and set targets based on the scores and
energy.Determining discussions with other relevant business divisions. They then hammer out action plans to respond
response measures to climate risks which will be implemented by the relevant business divisions after approval by the
general managers.We closely track market demands
Climate change may lead and have developed a number
to more chances for human of new medicines for respiratory
Severity of impact: medium-high Step 5New infections and outbreaks of diseases such as asthma COPD The relevant business divisions report to their general managers on the implementation of the
market influenza as well as increased Likelihood: very likely and bronchiectasis. Overseeing and action plans every six months and adapt them in good time to their actual situation.demands risk of respiratory diseases Time horizon: medium-term We participate in public health reporting The subsidiaries prepare annual reports on climate risks and opportunities management every
creating new market demands promotion and education activities year. After approval by the general managers the reports are submitted to the Executive-level
for pharmaceutical companies. to raise public awareness of climate Sustainability Committee for review and then to the Sustainability Committee of the Board of
change-related diseases. Directors for final approval.
8 Time horizons (time over which an opportunity is expected to materialize): short-term (0-3 years) medium-term (4-10 years) and long-term (more than
10 years)
Likelihood (the likelihood that an opportunity is to materialize): basically certain very likely likely approximately likely unlikely and very unlikely
Severity of impact (the severity of an opportunity's impact on business performance): high medium-high medium medium-low and low
137 2025 Sustainability Report 138About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
8.2.4 Metrics and Targets
The Group's Scope 1 and Scope 2 greenhouse gas emissions primarily originate from fuel combustion electricity consumption During the Reporting Year after comprehensively evaluating the achievement of the 2022–2025 carbon emission targets and factors
and purchased steam consumption during production and operations. In 2025 Joincare conducted its first greenhouse gas (GHG) such as the Group's own business development and industry trends we used 2025 as the base year to set 2030 carbon emission
inventory covering the full value chain; the GHG emission situation is as follows: targets and planned the Group's low-carbon transition plan around these targets. Over the next five years for Scope 1 and Scope
2 emissions we will continue advancing energy efficiency improvements and clean energy substitution in production and R&D
processes; for Scope 3 emissions we intend to collaborate with key suppliers to promote green procurement programs and optimize
GHG emissions of Joincare in 2025 logistics systems to reduce carbon emissions from product transportation.In advancing this transition we attach great importance to engagement with all stakeholders. At the value chain level we build green
partnerships through supplier training and customer engagement; at the industry level we actively participate in pharmaceutical
Indicator Unit Total industry association exchanges to contribute to the development of industry low-carbon standards and best practices; at the
public level we maintain communication with government agencies and social organizations to support environmental policy
Scope 1 GHG emissions 9 Tonne of CO2 equivalents 219583.0 development and respond to societal expectations for green development. Upon evaluation the Group's transition plan does
not involve risks that may cause significant negative social impacts and fully considers the positive implications for employees
communities and other stakeholders.Scope 2 GHG emissions-market-based 10 Tonne of CO2 equivalents 732725.0
Scope 2 GHG emissions-location-based 11 Tonne of CO2 equivalents 816865.1 Carbon emission targets of Joincare for 2030
Scope 3 GHG emissions 12 Tonne of CO2 equivalents 756590.8 Indicator Final Target by 2030
Total GHG emissions 13 Tonne of CO2 equivalents 1708898.8 GHG emissions (Scope1+Scope2) per unit production (RMB 10000) Down 5% from 2025
The Group deliberated and approved the Proposal on Adding Carbon Emission Targets to Joincare's Environmental Management In addition Fuzhou Fuxing a subsidiary of Livzon Group (a controlling subsidiary of Joincare) has set a short-term science-based
in 2022. According to the proposal we set the carbon emission target of Joincare from 2022 to 2025 and strive to achieve carbon target which after review by the Science Based Targets initiative (SBTi) was formally made public in December 2025. Fuzhou Fuxing
peaking by 2028 and carbon neutrality by 2055 (Scope 1 and Scope 2) through approaches including emission reduction and carbon commits to using 2023 as the base year reducing absolute Scope 1 and Scope 2 greenhouse gas emissions by 63.0% by 2035 and
offsetting. absolute Scope 3 greenhouse gas emissions from purchased goods and services (Category 1) and fuel and energy-related activities
(Category 3) by 37.5%. In future we will continue to explore the setting of science-based targets and strive to progressively expand
the target coverage.
9 Scope 1 greenhouse gas emissions include combustion emissions from stationary and mobile sources process emissions and fugitive emissions.
Emission factors and calculation methodologies are referenced from the 2006 IPCC Guidelines for National Greenhouse Gas Inventories GB/T
2589 General Rules for Calculation of Comprehensive Energy Consumption and the Guidelines for Accounting and Reporting of Greenhouse Gas
Emissions by Enterprises in Other Industrial Sectors (Trial). The Global Warming Potential (GWP) values for greenhouse gases are sourced from the
IPCC Sixth Assessment Report (2023). In 2025 the Group conducted a greenhouse gas inventory during which the emission sources and greenhouse
gas types covered under Scope 1 were expanded.
10 Scope 2 greenhouse gas emissions primarily arise from indirect greenhouse gas emissions associated with purchased electricity and steam
consumed during the Group's operations and production processes. The calculation methodology references ISO 14064-1. In 2025 the electricity
emission factor applied to the Group's market-based Scope 2 emissions is 0.6096 tCO2/MWh sourced from the Announcement on the Release of the
2023 Electricity Carbon Dioxide Emission Factors.
11 The electricity emission factor applied to the Group's 2025 location-based Scope 2 emissions is 0.5306 tCO2/MWh sourced from the Announcement
on the Release of the 2023 Electricity Carbon Dioxide Emission Factors.
12 Scope 3 greenhouse gas emissions are classified into 15 categories in accordance with the GHG Protocol Corporate Value Chain (Scope 3)
Accounting and Reporting Standard (2011). Category 14 is not applicable to the Group at this time. For the emissions breakdown by Scope 3
category please refer to "9.2 Data List of Key Performance Indicators."
13 Total GHG emissions include Scope 1 Scope 2 (market-based) and Scope 3 emissions.
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8.3 Energy Utilization
2025 Joincare Green Production Projects
The Group strictly complies with laws and regulations such as the Energy Conservation Law of the People's Republic of China and Company Project Name Investment Amount Outcomes
the Cleaner Production Promotion Law of the People's Republic of China referencing energy management system standards such
as ISO 50001 and continuously strengthens energy management system building. Haibin Pharma partnered with a third party to advance
the construction of an energy storage station project with
both parties agreeing on a 10-year cooperation period and
Energy System Certification Status of Joincare Production Subsidiaries Energy Storage Third-party funded: splitting energy savings revenue. The project was completed Haibin Pharma
Station Project RMB1.2 million and officially commissioned in October 2025 with an
installed capacity of 0.625MW/1.305MWh expected to save
approximately RMB 750000 in electricity costs for Haibin
Company Name Energy System Accreditation Name of the Energy System Pharma.Jiaozuo Joincare Accredited ISO 50001:2018 / RB/T114-2014 Jiaozuo Joincare replaced 3 multi-stage centrifugal aeration
Industrial fans that had been operating for 15 years with declining
Wastewater efficiency with 2 magnetic levitation centrifugal blowers. The
Xinxiang Haibin Accredited ISO 50001:2018 / RB/T114-2014 Workshop new equipment fully meets production process requirements;
Jiaozuo
Ageing Fan RMB550000 after commissioning annual electricity savings can reach
Joincare
Replacement 840000 kWh and annual electricity cost savings of RMB 420000.Haibin Pharma Accredited ISO 50001:2018 / RB/T114-2014 and Upgrade Equipped with PLC and remote monitoring systems it achieves
Project automated operation and real-time monitoring effectively
Joincare Haibin Accredited ISO 50001:2018 / RB/T114-2014 reducing labor costs.Livzon Xinbeijiang carried out energy efficiency upgrade
Fuzhou Fuxing Accredited ISO 50001:2018 / RB/T114-2014 renovation of the existing air compressor system using high-
Air Compressor
efficiency compressor units and intelligent control systems
Energy-Saving
RMB2.58 million to optimise operating modes. The project is planned to be
Livzon Hecheng Accredited GB/T23331-2020/ RB/T114-2014 Renovation completed in 2026; the renovated equipment system can
Project
operate stably for 30 years with an estimated annual electricity
saving of 2.1 million kWh.Livzon
Xinbeijiang
Joincare's production subsidiaries build energy management systems based on their actual production situations determining Livzon Xinbeijiang implemented a technical renovation of the
achievable energy utilization levels through on-site surveys document reviews energy audits and energy data analysis MVR Feed MVR feed system optimising the heat exchange process to
fully identifying enterprises' energy conservation potential and formulating practical energy conservation technologies and System increase the temperature of the feed dilute sugar water from
management measures to ensure efficient and orderly progress of energy management work. We fully integrate the concept of Technical RMB30000 its original level to 70° C thereby reducing the demand for
energy management into the full process of production operations adopting multiple measures to improve energy use efficiency Renovation fresh steam during system operation and reducing natural gas
advancing energy conservation and emission reduction and energy efficiency improvement while also actively increasing Project consumption. After implementation the project saves 33000
investment in green production project to build green production enterprises. cubic metres of natural gas annually.While advancing energy conservation renovations and optimizing energy consumption we also actively plan clean energy utilization
focusing on advancing photovoltaic power generation project construction fully tapping renewable energy potential further
broadening pathways for energy conservation and consumption reduction and helping the Group achieve a low-carbon transition.In 2025 Joincare invested a total of approximately RMB 6.6 million in distributed photovoltaic project construction with annual cost
savings of approximately RMB 2.2 million (excluding cost savings from third-party-funded projects).
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2025 Joincare Distributed Photovoltaic Projects 8.4 Pollutant Emissions
Company Outcomes Joincare strictly complies with national and local environmental protection laws and regulations such as the Environmental Impact
Assessment Law of the People's Republic of China the Soil Pollution Prevention and Control Law of the People's Republic of China
Jiaozuo Joincare utilised 6830 m2 of plant rooftops and unused land to build a 1.172 MWp distributed and the Air Pollution Prevention and Control Law of the People's Republic of China standardizing emission behavior. In combination
photovoltaic power station. The project adopts a self-generation self-use model with annual power with actual production and operations we have formulated systems including the Safety and Environmental Management Manual
Jiaozuo Joincare
generation of 1.289 million kWh capable of reducing carbon emissions by 684 tonnes and annual and the Environmental Protection Management Assessment System and during the Reporting Year revised and improved core
electricity cost savings of RMB 758000. environmental protection management systems including the Wastewater Discharge Assessment System and the Hazardous Waste
Management System refining emission classification and grading standards full-element monitoring technical requirements
compliant disposal processes and pollutant discharge standards promoting the systematic standardized and regulated
Taitai Pharmaceutical advanced the construction of a distributed photovoltaic project for the management of emission management.formulation building was connected to the grid at the end of September 2025 with all generated
Taitai
electricity consumed on site. As at the end of the Reporting Period 140000 kWh of power had been The Group has built a full lifecycle management system for pollutant emissions. Each production subsidiary completes the
Pharmaceutical
generated capable of reducing carbon emissions by 74 tonnes and saving approximately RMB 6000 in declaration and obtaining of pollutant discharge permits on the national unified platform in accordance with the law and within the
carbon allocation costs. validity period of the permit strictly enforces discharge permit control requirements to ensure pollutant discharge is compliant. At
the same time we formulate self-monitoring plans in accordance with environmental assessment documents and discharge permit
requirements regularly commissioning qualified third-party testing institutions to conduct dedicated monitoring of pollutants
Joincare Haibin utilised existing idle plant rooftops to build a 5383.8 m2 distributed photovoltaic power such as exhaust gases wastewater and noise. Combined with monitoring data we implement self-inspection and self-correction
generation project with a total installed capacity of 1256.22 kWp. The project was completed and of emission behavior precisely managing emission risks minimizing the impact of production and business operations on the
commissioned in October 2025 adopting an on-site generation and self-consumption model. As at the
Joincare Haibin ecological environment and fully implementing principal environmental protection responsibilities.end of the Reporting Period an estimated 220000 kWh of power had been generated; annual power
generation is estimated at 1.2 million kWh capable of reducing carbon emissions by 637 tonnes and
saving RMB 1.242 million in electricity costs annually.Xinxiang Haibin advanced photovoltaic power generation project construction. The project adopts a
Xinxiang Haibin self-generation self-use model with annual power generation of approximately 263000 kWh capable of
reducing carbon emissions by 140 tonnes and annual electricity cost savings of over RMB 200000.Livzon Hecheng advanced the construction of a photovoltaic power generation project. The project has
an expected operational lifespan of 25 years with an estimated annual power generation of 500000
Livzon Hecheng kWh equivalent to a reduction in carbon emissions of approximately 265 tonnes per year. All electricity
generated will be used exclusively by the Company which will benefit from a reduction in electricity
tariffs. The estimated investment payback period is 3.5 years.Livzon Diagnostics advanced the construction of a photovoltaic power generation project. The project
has an expected operational lifespan of 15 years with an estimated annual power generation of
approximately 460000 kWh equivalent to a reduction in carbon emissions of approximately 244 tonnes
Livzon Diagnostics
per year. The project operates under a "self-generation and self-consumption with surplus electricity fed
to the grid" model with the self-consumed portion benefiting from an approximately 50% reduction in
electricity tariffs. The estimated investment payback period is 5 years.In addition building on the promotion of internal renewable energy independent application we proactively expanded external green
electricity procurement channels confirming green electricity consumption through the purchase of Renewable Energy Certificates
(RECs) effectively optimizing the energy consumption structure and compensating for gaps in independent renewable energy supply.Among these Joincare Haibin completed REC procurement in July 2025 purchasing a total of 16105 RECs equivalent to recognized
consumption of 16105 MWh of green electricity. Jiaozuo Joincare completed REC procurement in December 2025 purchasing a total
of 187844 RECs equivalent to recognized consumption of 187844 MWh of green electricity. Both subsidiaries have obtained official
certification credentials for their respective RECs and the relevant credentials have been transacted on China's Green Electricity
Certificate Trading Platform fully ensuring the authenticity and compliance of the Group's green electricity consumption.
143 2025 Sustainability Report 144About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
8.4.1 Exhaust Gas Management 2025 Joincare Key Exhaust Gas Management Improvement Projects
Joincare strictly complies with laws and regulations such as the Air Pollution Prevention and Control Law of the People's Republic Company Project Name Investment Amount Outcomes
of China continuously strengthening full-process management and control of exhaust gas emissions. We have formulated and
implemented dedicated management systems such as the VOCs Collection and Treatment Management System the Boiler Exhaust Joincare Haibin upgraded its wastewater station and
Gas Emission Management System and the High-Concentration Exhaust Gas Treatment System Standard Operating Procedure production exhaust gas treatment facilities. After upgrading
clarifying full-chain management requirements for exhaust gas collection treatment and discharge for each production subsidiary Wastewater production exhaust gas treatment adopts a "spray tower +
standardizing the operation and maintenance process of pollution treatment facilities and ensuring stable and compliant exhaust Station and demister + first-stage activated carbon box + second-stage
gas discharge. Each production subsidiary in combination with actual production situations takes targeted combinations of Production activated carbon box" process and wastewater station
measures including exhaust gas source reduction efficient in-process collection and in-depth end-of-pipe treatment to precisely Joincare Exhaust RMB148000 exhaust gas treatment adopts a "spray tower + activated
reduce the impact of exhaust gas emissions on the ecological environment. Haibin Gas Facility carbon box + UV photolysis equipment" process which can
Upgrade significantly improve exhaust gas purification efficiency
Project and strengthen characteristic pollutant adsorption and
degradation ensuring stable and compliant exhaust gas
Installe online monitoring equipment for organised waste gas emissions and detection discharge.equipment for fugitive waste gas emissions for teal-time monitoring of the waste gas pollution Jiaozuo Joincare uses an RTO (Regenerative Thermal
factors. Data is uploaded to the national automatic monitoring and basic database system for
Digital Monitoring and Oxidiser) as the core equipment applying regenerative key pollution sources in real-time.Manual Detection of Industrial incineration technology with an intelligent control system
Waste Gas Wastewater suitable for treating complex pollutants. Exhaust gas
Conduct manual detection of organised and fugitive waste gas emissions each quarter Treatment treatment efficiency reaches above 98%. After project
pursuant to the requirements of the waste discharge permit and their self-monitoring plans. Jiaozuo Workshop implementation non-methane total hydrocarbon
This practice aims to advance efficient management of the emissions. RMB5.35 millionJoincare Exhaust Gas concentrations are stably reduced to below 20 mg/m3
Optimisation with annual emission reductions of 4.46 tonnes meeting
and Treatment Class A enterprise environmental management and control
In the daily inspection of environmental protection check the concentration detection Project requirements; at the same time desulphurised biogas is
of environmental pollutants in their production areas the concentration detection of used as fuel with annual cost savings of approximately RMB
Daily Detection and environmental pollutants in key areas the leakage problems in the production areas and the
350000.
Feedback of Waste Gas operating status of the waste gas collection and treatment facilities. RTO
Concentration Report the concentration of environmental pollutants within the scope of their factories to the Inspection and Xinxiang Haibin carried out inspection and maintenance
production units demand that the items that do not meet the requirements be corrected in a Maintenance of the RTO regenerative thermal oxidiser and replaced
timely manner and record the items that violate the environmental management policy and and High- activated carbon and carbon fibre adsorbent materials in
punish those responsible. Concentration the high-concentration exhaust gas system restoring and Xinxiang
Exhaust RMB850000 improving equipment operating efficiency and adsorption
Haibin
Gas System purification capability improving high-concentration
Adsorbent organic exhaust gas purification efficiency achieving
Cconduct professional and technical training for waste gas management personnel to Material ultra-low emission of exhaust gas and reducing pollutant
enhance their professional ability. Replacement emission intensity.Project
Strengthening of Waste
Gas Management Acquire real-time updates on the progress of each production step by consistently Ningxia Pharmaceutical upgraded and retrofitted its tail
strengthening communication between the waste gas treatment departments and the gas treatment facilities for refining processes to strengthen
production departments. Tail Gas exhaust emission control and improve resource recycling
Specific investment
Treatment efficiency. By adding a combined condensation and
Ningxia amount cannot be
Project for activated carbon adsorption recovery system the project
Pharma separately accounted
To reduce harmful emissions from our operations we carry out group-wide projects of emissions management improvement every Refining effectively increased solvent recovery rates and reduced for
year. Each Joincare's production subsidiary continues to increase its investments in waste gas management and has achieved Processes waste gas emissions. Upon completion of the project the
effective management of waste gas emissions by upgrading waste gas treatment equipment and process. annual consumption of butyl acetate was reduced by 364.5
tonnes resulting in cost savings of RMB 355000.
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8.4.2 Wastewater Management 8.5 Waste Management
Joincare strictly complies with laws and regulations such as the Water Law of the People's Republic of China and the Water Pollution Joincare strictly complies with regulatory standards including the Classification Management Directory for Emission Permits of
Prevention and Control Law of the People's Republic of China building a full-process wastewater management system and formulating Stationary Pollution Sources and the Pollution Control Standard for Storage and Landfill of General Industrial Solid Waste building a
comprehensive standard operating procedures for all stages of wastewater treatment. For key discharge subsidiaries we have full-process waste management and control system to ensure all stages of waste classified collection standardized storage directional
standardly deployed online monitoring systems at wastewater discharge outlets achieving connectivity and linkage with government transfer and compliant disposal are controllable ensuring waste disposal compliance. For hazardous waste we strictly implement the
regulatory platforms real-time monitoring and uploading of data on characteristic pollutant indicators such as chemical oxygen hazardous waste transfer manifest system entrusting all disposal to units with the appropriate qualifications. For non-hazardous waste
demand (COD) ammonia nitrogen total nitrogen and total phosphorus in treated wastewater strengthening the management and based on its utilization attributes disposal agreements are signed with qualified units for resource utilization or safe disposal.control of the wastewater discharge process and ensuring stable and compliant wastewater discharge from each production subsidiary.The Group advances solid waste management across the full chain of source waste reduction in-process resource recovery and reuse
We have established a full lifecycle operation and maintenance mechanism for wastewater treatment and monitoring equipment and end-of-pipe harmless disposal improving the circular utilization rate of waste and reducing the waste from own operations sent to
regularly conducting equipment inspections calibration and maintenance to ensure efficient and stable operation of the wastewater landfill. We have formulated solid waste disposal targets explicitly requiring each subsidiary to achieve a 100% compliant disposal rate.treatment system. Each production subsidiary actively advances clean production process renovations and product water equipment In 2025 each subsidiary successfully achieved their solid waste disposal targets.upgrades to reduce wastewater volume and pollutant concentrations from the source. At the same time we regularly organize
dedicated technical training for wastewater treatment system and sewage station operators improving position personnel's
environmental protection management awareness and professional operation and maintenance capabilities comprehensively Joincare Waste Management Principles
ensuring standardized and orderly progress of wastewater management work.To reduce the environmental impact of wastewater generated during operations we carry out group-wide wastewater management
enhancement initiatives every year. These efforts include upgrading wastewater treatment processes and renewing related equipment Control waste generation from production sources optimize production processes and reasonably plan
to reduce discharge volumes increase the utilization of treated wastewater lower pollutant concentrations and continuously explore Reduce material use to reduce the total volume of all types of waste generated reducing waste treatment pressure
further opportunities for improvement in wastewater management. and environmental impact from the root cause.
2025 Joincare Key Wastewater Management Improvement Projects
Company Project Name Investment Amount Outcomes For recyclable waste generated in the production process where compliant with pharmaceutical industry
Jiaozuo Joincare introduced an automated dosing preparation system Reuse requirements and quality standards treat and recycle for repeated use to improve resource utilization
in the dissolved air flotation dosing stage equipping 3 dissolved air efficiency.Dissolved flotation units with independent dosing pumps and separate pipelines
Air Flotation replacing the original shared design. After implementation the
Jiaozuo Dosing precision and stability of reagent dosing were significantly improved
Joincare System RMB300000 the fluctuation range of dissolved air flotation effluent quality was Automation reduced by more than 50% and key indicators stably meet compliance For waste that cannot be directly reused but has recyclable value collect by category and hand over to
Upgrade standards. Annual labor cost savings of RMB 140000 and reagent
Project cost savings of RMB 20000 can be achieved totaling annual savings Recycle qualified units for processing to achieve resource regeneration and utilization promoting the transformation
of RMB 160000 while improving the intelligent management level of of waste towards resource recovery.wastewater treatment and reducing the risk of operational errors.Xinxiang Haibin introduced magnetic levitation fans to upgrade
the aeration system of the wastewater treatment facility improving
dissolved oxygen concentration in the aeration tank and enhancing
the degradation efficiency of activated sludge improving wastewater For waste that does not have conditions for reuse or recycling extract available energy or materials through
Xinxiang Magnetic treatment load and purification capability. After implementation key
Recover
compliant processes to maximize the potential value of waste and reduce resource waste.Haibin Levitation Fan RMB220000 pollutant indicators of wastewater discharge were stably reduced Project effectively managing environmental compliance risks; equipment
energy efficiency was significantly improved annual electricity
cost savings were RMB 290000 carbon emission reductions were
21.6 tonnes achieving synergistic benefits of improved wastewater
treatment efficiency and energy conservation and carbon reduction. For waste with no utilization value and which cannot be resource-recovered harmlessly treat in strict
Dispose accordance with national environmental protection regulations and industry standards ensuring no pollution
Jiaozuo Synthesis used an existing acetone column in the workshop to the ecological environment and ensuring full process compliance of disposal.to distil crude product mother liquor high-COD wastewater achieving
High-COD Specific investment partial solvent recovery. Personnel were systematically trained before
Jiaozuo Wastewater amount cannot be the project's trial run; during the early trial run period distillation
Synthesis Solvent separately accounted column temperatures were optimized multiple times to ensure Recovery for recovered solvent quality can enter the recovery distillation system for Project secondary distillation without affecting the original system solvents. In
actual operation tests approximately 15% of residual solvents can be
recovered.
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8.6 Water Resource Utilization
To reduce waste generation during operations we carry out group-wide waste management enhancement projects every year. We The Group strictly complies with relevant laws and regulations such as the Water Law of the People's Republic of China improving water
classify and treat waste to improve processing efficiency and consistently invest in technological and process innovation by introducing resource management requirements implementing standardized and systematic management initiatives and striving to improve
advanced environmental technologies at the production stage and upgrading existing production technologies and formulations to water resource use efficiency across production operations and other aspects.minimize waste.Adhering to the concept of "Prioritizing water conservation promoting recycling and ensuring compliance management" the
Group implements water conservation actions practices strict water resource management systems and advances water resource
management improvement projects across the entire Group. Each production subsidiary supported by technology upgrades
2025 Joincare Key Solid Waste Management Improvement Projects introduces advanced water conservation technologies and processes strengthens source management and control for water
conservation replaces ageing leaking facilities and high water-consuming equipment and promotes water-saving fixtures; builds a
digital water resource monitoring system achieving real-time monitoring of water use and discharge and data traceability through
intelligent metering instruments; at the same time strengthens maintenance of water-consuming equipment and continuously
advances reclaimed water and cooling water recovery and utilization projects improving the water recycling rate and reducing fresh
Company Project Name Investment Amount Outcomes water consumption. Some subsidiaries have incorporated water conservation indicators into performance assessments establishing
closed-loop management mechanisms to ensure water resource management is compliant and efficient.In addition to accurately understand the current water resource utilization situation each production subsidiary actively conducts
Each batch of 4000 L of Jiaozuo Joincare's wastewater water use assessments and water balance tests. In April 2025 Joincare Haibin signed a water balance test contract with a professional
originally contained approximately 760 grams of ruthenium
Ruthenium water treatment service company completed the water balance test work and issued a Water Balance Test Report; in July of the
trichloride. Wastewater is now concentrated to 200 L before
Jiaozuo Trichloride same year it completed "key water use unit water balance test result filing". Through conducting water balance tests Joincare Haibin
RMB268000 recovery processing capable of recovering approximately
Joincare Recovery conducted a systematic review of its full process of water use and discharge accurately identified weaknesses in water resource
570 grams of ruthenium trichloride. Based on a market
Project utilization and provided scientific data support for subsequent optimization of water resource allocation and deepening of water
average price of RMB 65/gram this saves approximately conservation renovation.RMB 35500 per batch.
2025 Joincare Key Solid Waste Management Improvement Projects
Company Project Name Investment Amount Outcomes
Waste Alumina Fuzhou Fuxing built dedicated alumina recycling and
Xinxiang Haibin achieved resource-based reuse of F12
Recycling synthesis facilities using high-temperature hydrothermal
Specific investment supernatant through process optimization reducing
to Produce reaction technology to convert waste alumina generated in Existing equipment
amount cannot be F12 Supernatant freshwater supplementation. After operational verification
Fuzhou Fuxing Aluminium the production process into aluminium sulphate flocculant repurposed with no
separately accounted Reuse Project the project saves over 2000 tonnes of fresh water annually
Sulphate with utilization value directly applied to the plant's water additional investment
for effectively improving water recycling rate and reducing water
Flocculant treatment system achieving source reduction of hazardous
resource consumption intensity.Project waste and resource circulation. Xinxiang
Haibin Xinxiang Haibin built a condensate water recovery system
Distillation collecting and treating distillation column process condensate
Column water before reuse as a substitute for freshwater consumption
Condensate RMB95000 achieving cascaded utilization of water resources. After
Water Reuse commissioning the project saves over 15000 tonnes of fresh
Hazardous Livzon Pharmaceutical Factory built a hazardous waste Project water annually significantly improving water recycling rate and
Waste electronic information management platform achieving
Specific investment reducing water consumption per unit of product.Livzon Electronic full-process closed-loop monitoring from hazardous waste
amount cannot be
Pharmaceutical Information entry into storage temporary storage transfer to final
separately accounted Purified Water Livzon Limin used concentrated water generated by the
Factory Platform disposal significantly enhancing the real-time capability
for Machine Specific investment purified water machine as a substitute for tap water in cooling
Construction and traceability of waste management and providing data Livzon Concentrated amount cannot be the water-ring vacuum pump achieving circular utilization
Project support for waste reduction. Limin Water Recycling separately accounted for of purified water machine concentrated water and further
Project reducing freshwater consumption.
149 2025 Sustainability Report 150About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
8.7 Circular Economy 8.8 Ecosystem and Biodiversity Protection
Joincare adheres to the Circular Economy Promotion Law of the People's Republic of China and other relevant laws and regulations Joincare places great importance on the impact of its activities on biodiversity and strictly complies with relevant laws regulations
consistently integrating sustainable development principles into all aspects of production and operations while continuously and policy provisions such as the Soil Pollution Prevention and Control Law of the People's Republic of China the Forestry Law of the
strengthening resource utilization management. We adhere to the "3R Principle" (Reducing Reusing and Recycling) deeply implement People's Republic of China the Wildlife Protection Law of the People's Republic of China the Regulations on Returning Farmland to
the concept of a circular economy comprehensively advance the construction of a resource recycling system and aim to enhance Forests and the Opinions on Further Strengthening Biodiversity Protection actively fulfilling its obligations under the United Nations
recovery rates. Given that pharmaceutical waste management must strictly comply with drug safety regulations and industry standards Convention on Biological Diversity and taking multiple approaches to promote biodiversity protection.the Group currently prioritizes internal system development with quantitative targets to be progressively explored in the future.In terms of material management optimization we scientifically plan warehouse layouts and implement standardized storage
management of packaging materials and auxiliary materials by zone layer and category effectively improving warehouse space
utilization and reducing material losses and resource waste in the storage stage. At the same time we optimize material transportation Joincare's Commitments on Protecting Biodiversity and Forest Resources:
routes within plants and improve the utilization efficiency of transportation equipment significantly improving internal material
turnover efficiency and reducing energy and resource consumption during transportation. In the process of product packaging design Require value chain related parties to strictly fulfil biodiversity protection responsibilities avoid operational activities
and specification optimization we promote the resource-based circular reuse of consumables such as packaging strips and strapping near sites containing globally or nationally important biodiversity and jointly protect ecologically sensitive areas.tapes for finished products further improving resource use efficiency and strengthening the maximization of material full lifecycle value.Conduct biodiversity risk assessments identify potential risks in operations and value chain stages apply the
mitigation hierarchy for biodiversity impacts potentially arising from operations and value chain activities prioritizing
Case avoidance measures and implementing mitigation restoration and compensation actions when avoidance is not
possible to minimize negative impacts to the greatest possible extent.Joincare Product Packaging Material Environmental Practices
Joincare continuously optimizes product packaging design launching more environmentally friendly products while meeting Actively communicate with stakeholders on biodiversity protection-related work proactively share protection
market needs: measures and progress and listen to reasonable opinions and suggestions.Taitai Pharmaceutical: The company has established packaging classification material selection standards covering
all of the company's products requiring basic structural components to use metal products (recycling rate greater than
95%) and corrugated cardboard (100% FSC certified); buffer materials to use recyclable EPE foam (EPE) and high-density Prohibit all illegal deforestation not engage in any forest-destroying activities and uphold the bottom line of forest
honeycomb paper products; inner packaging to use polypropylene (BOPP) and low-density polyethylene (LDPE) materials resource protection.both of which have passed Global Recycled Standard (GRS) certification.The above commitments have been reviewed and approved by the Board of Directors' Sustainability Committee and
Joincare Haibin: The budesonide inhalation suspension color carton incorporates a foldable design concept greatly are applicable to Joincare Pharmaceutical Group Industry Co. Ltd. headquarters and its wholly-owned and controlled
reducing transportation and storage space and lowering carbon emissions during transportation; FSC-certified packaging subsidiaries; at the same time we hope all suppliers and partners related to the Group's value chain will actively
materials are used to ensure sustainable utilization of forest resources. At the same time this product has obtained a respond to the commitments.product carbon footprint certificate.Haibin Pharma: By optimizing the packaging bottle specifications for injections changing the packaging bottle
specification from 15 ml to 10 ml 29.61 tonnes of glass raw materials can be reduced in consumption annually. The
product's packaging materials mainly include corrugated paper white card paper halogenated butyl rubber stoppers and Before plant construction we actively carry out environmental risk factor identification and hidden danger investigation work strictly
medium borosilicate glass tube injection vials all using green and recyclable materials with a green material usage rate of comply with ecological red line requirements and avoid conducting business near nationally designated ecological protection
100%. areas and other areas of high biodiversity value. At the same time we encourage each production subsidiary to conduct biodiversity
assessments related to their business helping protect endangered species and promoting ecosystem balance. During the Reporting
Year Joincare had no production plants or operating locations in ecological protection areas or areas of high biodiversity value. None of
the Group's production activities products or services caused any significant impact on ecosystems or biodiversity.
151 2025 Sustainability Report 152About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
9 Appendix
9.1 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 Topic Article Section in the report
1 Sustainability Management 7.6 Social Contributions
Contributions to society Article 40
Sustainability information disclosure 9.2 Data List of Key Performance Indicators
framework Article 11-19 3 Innovation-Driven Development
4 Product and Service Safety & Quality Innovation-driven Article 42 3 Innovation-Driven Development
8.2 Addressing Climate Change Ethics of science and technology Article 43 2.3.3 AI Applications and Technology Ethics
Climate change tackling Article 21-28
9.2 Data List of Key Performance Indicators Supply chain security Article 45 5 Supply Chain Security
8.4 Pollutant Emissions
Pollutant discharge Article 30 The Group does not fall under the mandatory
9.2 Data List of Key Performance Indicators Equal treatment to small and medium-
sized enterprises Article 46
disclosure subjects listed in Article 46 of the
Guidelines; no disclosure is required for the
Reporting Year.
8.5 Waste Management
Waste disposal Article 31
9.2 Data List of Key Performance Indicators Safety and quality of products and
services Article 47 4 Product and Service Safety & Quality
Ecosystem and biodiversity protection Article 32 8.8 Ecosystem and Biodiversity Protection Data security and customer privacy Article 48 2.4 Data Security and Customer Privacy Pro-protection tection
Environmental compliance management Article 33 8.1 Environmental Compliance Management
6 Employees
Employees Article 50
8.3 Energy Utilization 9.2 Data List of Key Performance Indicators
Energy usage Article 35
9.2 Data List of Key Performance Indicators
Due diligence Article 52 1.2.2 Due Diligence
8.6 Water Resource Utilization
Usage of water resources Article 36 Communications with stakeholders Article 53 1.2.1 Communication with Stakeholders
9.2 Data List of Key Performance Indicators Anti-commercial bribery and anti-
corruption Article 55 2.3.1 Anti-Commercial Bribery and Anti-Corruption
8.7 Circular Economy
Circular economy Article 37 Anti-unfair competition Article 56 2.3.2 Anti-Unfair Competition
9.2 Data List of Key Performance Indicators
7.5 Rural Revitalization
Rural revitalization Article 39
9.2 Data List of Key Performance Indicators
153 2025 Sustainability Report 154About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
9.2 Data List of Key Performance Indicators
Sustainability indicator Unit 2023 2024 2025 Sustainability indicator Unit 2023 2024 2025
1 Environmental 14 General Industrial Waste Tonne 141539.1 141807.0 122765.3
1.1 Emissions 15 Recycled/Reused Tonne 48400.0 33598.9 31014.7
Wastewater Discharge Tonne 12092149.0 12154327.4 12157136.4 Landfilled Tonne 0/ / 44219.4
Chemical Oxygen Demand (CODCr) Tonne 995.2 1070.4 1173.5 Divided by Incineration With Energy
Disposal Tonne / / 40620.9 Recovery
Ammonia Nitrogen Tonne 113.6 112.9 110.8 Method
Incineration Without
Tonne / / 6896.4
VOCs Tonne 69.0 87.9 93.8 Energy Recovery
NOX Tonne 90.1 147.3 132.6 Otherwise disposed Tonne / / 13.9
SO Tonne 34.6 84.8 81.7 Intensity of General Industrial Waste Tonne /RMB 10000 0.07 0.08 0.082
Particulates Tonne 16.0 15.9 14.6 Greenhouse Gas Emissions
16
Hazardous and Non-hazardous Waste Generated Total Greenhouse Gas Emissions (Scope1+ CO2 equivalent (in tonnes) 1033000.9 1026672.1 952308.0
Market-based Scope2)
Hazardous Waste Tonne 6884.2 5968.3 16578.3 Intensity of Greenhouse Gas Emissions CO2 equivalent (in
0.50.60.6
(Scope1+ Market-based Scope2) tonnes)/RMB 10000
Pharmaceutical Wastes Tonne 3792.2 3247.6 13263.6
Divided by Scope 1 Greenhouse Gas Emissions CO2 equivalent (in tonnes) 162677.0 197854.4 219583.0
Category
Other Hazardous Wastes Tonne 3092.0 2720.7 3314.8 Scope 2 Greenhouse Gas Emissions –
CO2 equivalent (in tonnes) 870323.9 828817.7 732725.0
Market-based
Recycled/Reused Tonne 742.2 727.1 1846.8
Scope 2 Greenhouse Gas Emissions –
Landfilled Tonne / / 24.7 CO2 equivalent (in tonnes) / / 816865.1Location-based
Divided by
Disposal Incineration With Energy
Method Tonne / / 2920.1 Recovery Scope 3 Greenhouse Gas Emissions CO2 equivalent (in tonnes) / / 756590.8
Incineration Without
Tonne / / 11786.7 Category 1 Purchased goods and services CO2equivalent (in tonnes) / / 244603.4
Energy Recovery
Category 2 Capital goods CO2 equivalent (in tonnes) / / 6824.2
Intensity of Hazardous Waste Tonne /RMB 10000 0.003 0.003 0.010
14 Scope of environmental data disclosure: the headquarters and production enterprises of Joincare. The intensity in 2025 was calculated based on 16 For details on the statistical scope and accounting methodology of greenhouse gas emissions please refer to the footnotes in Section 8.2.4
RMB 10000 of output value. "Metrics and Targets" under Section 8.2 "Addressing Climate Change".
15 Disclosure of major pollutants/emissions and related emission data according to the production characteristics of enterprises. During the Reporting
Period the Group was not subject to any material administrative penalties or criminal liability arising from pollutant emissions and no material
deficiencies were identified in its environmental monitoring programs or risk management measures.
155 2025 Sustainability Report 156About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
Sustainability indicator Unit 2023 2024 2025 Sustainability indicator Unit 2023 2024 2025
Category 3 Fuel- and energy-related activities CO2 equivalent (in tonnes) / / 227814.2 Renewable Energy
Category 4 Upstream transportation and 17
CO2 equivalent (in tonnes) / / 13121.0 Green Electricity MWh / / 251274.7
distribution
Biomass Fuels Tonne 1004.0 3668.3 3965.0
Category 5 Waste generated in operations CO2 equivalent (in tonnes) / / 19502.8
Renewable Energy Consumption MWh 5708.2 17809.1 283536.6
Category 6 Business travel CO2 equivalent (in tonnes) / / 3226.2
Energy Consumption
Category 7 Employee commuting CO2 equivalent (in tonnes) / / 51420.1
Direct Energy Consumption Tons of Coal Equivalent 62255.6 73957.9 68284.6
Category 8 Upstream leased assets CO2 equivalent (in tonnes) / / 507.7
Indirect Energy Consumption Tons of Coal Equivalent 219646.8 216671.2 219682.7
Category 9 Downstream transportation and
CO2 equivalent (in tonnes) / / 173.3
distribution Total Energy Consumption Tons of Coal Equivalent 281902.4 290629.1 287967.3
Category 10 Processing of sold products CO2 equivalent (in tonnes) / / 67324.2 Tons of Coal Equivalent /
Intensity of Total Energy Consumption 0.1 0.2 0.2
RMB 10000
Category 11 Use of sold products CO2 equivalent (in tonnes) / / 4619.2
Water Consumption
Category 12 End-of-life treatment of sold
CO2 equivalent (in tonnes) / / 24994.8
products Total Water Withdrawal 10000 tonnes 1426.5 1388.6 1378.3
Category 13 Downstream leased assets CO2 equivalent (in tonnes) / / 318.1 Intensity of Total Water Withdrawal Tonne /RMB 10000 7.1 8.1 8.7
Category 15 Investments CO2 equivalent (in tonnes) / / 92141.6 Total Net Water Consumption 10000 tonnes 217.3 173.1 162.6
1.2 Resource Use Recycled Water Volume 10000 tonnes 9.2 11.0 15.7
Total Energy Consumption Packaging Material Used
Non-renewable Energy Renewable Packaging Material Used Tonne / / 7909.4
Gasoline Litre 387425.5 260932.4 334582.9 Non-renewable Packaging Material Used Tonne / / 8662.8
Diesel Litre 261122.8 235846.7 242232.2 Proportion of Renewable Packaging Materi-
%//47.7
al Used
Coal Tonne 66894.5 83607.5 74079.6
Total Packaging Material Used Tonne 9236.3 14133.1 16572.2
Natural Gas 10000 cubic meters 1093.9 887.5 795.0
Intensity of Packaging Material Used Tonne/RMB 10000 0.005 0.008 0.010
Liquefied Petroleum Gas Tonne 3.7 0.6 0.4
Purchased Steam Tonne 1605949.6 973876.7 1015365.6
Purchased Electricity MWh 989071.4 1000133.8 751661.1 17 Green electricity encompasses the solar power self-generated and self-consumed through the Group's own photovoltaic (PV) installations
as well as solar and wind power procured through other means such as green electricity certificates and third-party-invested photovoltaic
Non-renewable Energy Consumption MWh 2288045.4 2346951.1 2059565.9 projects.
157 2025 Sustainability Report 158About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
Sustainability indicator Unit 2023 2024 2025 Sustainability indicator Unit 2023 2024 2025
2. Social Responsibility Share of Women in STEM-related Positions % 53.7 51.9 52.8
2.1 Employment Number of Ethnic Minority Employees 18 Person 789 807 702
Number of Employees: By Gender Age Group Geographical Region and Job Level Hiring
Number of Employees Person 14365 14350 13575 Total Number of New Employee Hires Person 3999 3105 2155
Male Person 7788 7718 7428 Number of New Employee Hires by Gender and Age Group
Gender
Female Person 6577 6632 6147 Male Person 2371 1734 1302
Gender
30 and below Person 4900 4678 4126 Female Person 1628 1371 853
Age 31-49 Person 8536 8590 8433 30 and below Person 2434 1874 1287
50 and above Person 929 1082 1016 Age 31-49 Person 1546 1221 862
Chinese Mainland Person 14348 14339 13552 50 and above Person 19 10 6
Geographical Hong Kong Macao and Percentage of Open Positions Filled by
Region Taiwan China Person 5 2 3 Internal Candidates (Internal Hires) % 18.9 28.2 36.4
Foreigners Person 12 9 20 Percentage of Internal Hires by Gender and Age Group
President and Vice Presi- Male % 55.7 57.8 60.1
dent (Executive Manage- Person 12 16 15 Gender
ment) Female % 44.3 42.2 39.9
General Manager Level
and above (Senior Man- Person 107 119 118 30 and below % 34.1 36.7 35.0
Job Level agement) Age 31-49 % 62.8 58.5 61.6
Director Level Person 252 264 265
50 and above % 3.1 4.8 3.4
Manager Level Person 1143 1185 1183
Group's Turnover Rate 19
Other Employees Person 12863 12782 12009
Overall Employee Turnover Rate % 12 10 10
Diversity of Employees
Including: Voluntary Employee Turnover Rate % 12 10 10
Number of Women in Executive Management Person 2 4 4
Employee Turnover Rate by Gender Age Group
Share of Women in Executive Positions % 16.7 25.0 21.4
Male % 11 10 9
Number of Women in Senior Management Person 31 34 30 Gender
Female % 14 10 10
Share of Women in Senior Management
Positions % 29.0 28.6 25.4
18 Among ethnic minority employees at Joincare the top three ethnic groups are Hui (1.83%) Zhuang (1.01%) and Tujia (0.49%). Among
Share of Women in Management Positions % 35.4 37.0 38.1 management the proportions of Hui Zhuang and Tujia are 0.64% 0.64% and 0.45% respectively.Share of Women in Management Posi- 19 To better reflect the actual situation of the Group's human resource management and ensure consistency between internal management
tions in Revenue-generating Functions % 27.5 31.6 33.7 and external disclosure the turnover rate calculation directly adopts the methodology used by the Group's human resource management
whereby employee turnover is defined as voluntary resignations of regular employees.
159 2025 Sustainability Report 160About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
Sustainability indicator Unit 2023 2024 2025 Sustainability indicator Unit 2023 2024 2025
30 and below % 16 14 14 Average Training Hours of Employees in
Management Training Hour/Person 19.0 19.6 15.5
Age 31-49 % 10 7 8
Average Training Hours of Employees in
Leadership Training Hour/Person 27.3 23.1 7.850 and above % 4 3 2
Employee Engagement Survey Average Amount Spent per Employee on
Training RMB/Person 406.9 336.2 597.8
Employee Engagement % 90 90 90 2.4 Product Responsibility
2.2 Health and Safety Percentage of Total Products Sold or Shipped Subject to Recalls for Safety and Health Reasons
Number of Work-related Injuries Percentage of Such Products to Total % 0 0 0
Number of Work-related Fatalities - Products Sold /Shipped
Employees Person 0 0 0
Number of Products-and-service-related Complaints Received
Days Lost due to Work-related Injuries -
Employees Day 98 781.5 505 Product-related Complaints Time 147 108 50
Lost-Time Injury Frequency Rate (LTIFR) - Number of Injuries/Mil-
Employees lion Hours Worked 0.16 0.37 0.44 Medication Queries 20 Time 17 5221 52143
Number of Work-related Fatalities -
Contractors Person 0 0 0 2.5 Business Ethics
Days Lost due to Work-related Injuries - Number of Brought and Concluded Legal
Contractors Day 0 0 0 Cases Regarding Corrupt Practices
Case 0 0 0
Lost-Time Injury Frequency Rate (LTIFR) - Number of Injuries/
Contractors Million Hours of 0 0 0
Number of Breaches on Conflicts of Interest Case 0 0 0
Works
2.3 Training and Development Number of Breaches on Money Launder-
ing or Insider trading Case 0 0 0
Total Training Percentage for Employees % 100 99 100 Number of Breaches on Customer Privacy
Data Case 0 0 0
Total Training Hours for Employees Hour 975834 1345002 1254403
Number of Breaches on Discrimination or
Training Hours for Male Employees Hour 531945 728915 686241 Harassment Case 0 0 0
Training Hours for Female Employees Hour 443889 616087 568162 2.6 Public Welfare Projects
Average Training Hours per Employee Hour/Person 67.9 94.7 92.4 Resource Contributed to the Focus Areas
Average Training Hours per Employee by Gender and Age Group Financial Donation RMB 10000 1976.2 1195.7 3457.4
Male Hour/Person 68.3 95.4 92.4 Value of Donated Goods RMB 10000 622.3 208.6 383.6
Gender
Female Hour/Person 67.5 93.8 92.4 Investment in Rural Revitalization RMB 10000 196.1 222.3 301.7
30 and below Hour/Person 85.2 123.7 125.0
20
Age 31-49 Hour/Person 58.5 79.1 75.9 The purpose of medication consultation is to ensure that patients can use medications safely and effectively while improving patient
medication satisfaction and quality of life. Beginning in 2024 the Group adjusted and optimized the statistical methodology for medication
50 and above Hour/Person 63.5 91.9 96.7 consultation tracking. In 2025 due to increased sales and market attention for certain products consultation volumes across both online and
offline channels—including expert free clinics and health education livestreams—have significantly increased.
161 2025 Sustainability Report 162About this Report Chairman's Statement About Us Sustainability Management Corporate Governance Innovation-Driven Development Product and Service Safety & Quality Supply Chain Security Employees Access to Healthcare Green Operations Appendix
9.3 Assurance Statement
Statement No: SRA 842370
Methodology Statement No: SRA 842370
Our work was designed to gather evidence on which to base our conclusion. We undertook the following activities:
A top level review of issues raised by external parties that could be relevant to Joincare’ policies to provide a check on the
appropriateness of statements made in the Report. We considered Joincare has provided sufficient evidence that its self-declaration of compliance with the Guidelines No. 14 of
INDEPENDENT ASSURANCE OPINION STATEMENT Discussion with staff on Joincare’ approach to stakeholder engagement. We had no direct contact with external stakeholders Shanghai Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report (Trial) Corporate Sustainability Disclosure during this assurance process. Standards – Basic Standards (Trial) and has taken into account the HKEX Environmental Social and Governance Reporting Code
Interview with staff involved in ESG management report preparation and provision of report information.and the Report is considered acceptable in meeting the principles as set out in AA1000AP (2018).Review of key organizational developments.Statement No: SRA 842370 Review of supporting evidence for claims made in the Report and
An assessment of Joincare’ reporting and management processes concerning reporting against the principles of Inclusivity Assurance Level
Joincare Pharmaceutical Group Industry Co. Ltd. Materiality Responsiveness and Impact as described in the AA1000AP (2018). The Type 2 Moderate Level of Assurance provided in our review is defined by the scope and methodology described in this statement.
2025 Sustainability Report Conclusions A review of the Report issued by Joincare against the AA1000AS V3 principles of Inclusivity Materiality Responsiveness and Impact
as well as the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report (Trial) Responsibilities
Corporate Sustainability Disclosure Standards – Basic Standards (Trial) is set out below: It is the responsibility of Joincare’ senior management to ensure that the information being presented in the Report is accurate. Our
The British Standards Institution is independent of Joincare Pharmaceutical Group Industry Co. Ltd. and its subsidiaries (hereinafter Based on the procedures performed and evidence obtained we believe that data and information stated in the Reporting responsibility is to provide an independent assurance opinion statement to stakeholders giving our professional opinion based on the
Organization’s Report is correctly presented and that Inclusivity Materiality Responsiveness and Impact based on AA1000 criteria are scope and methodology described. referred to as “Joincare” collectively in this statement) and has no financial interest in the operation of Joincare other than for the
assessment and assurance of Joincare 2025 Sustainability Report (the “Report”). correctly addressed.This independent assurance opinion statement is prepared on the basis of review by the British Standards Institution of the Report Although BSI reviews all 2025 Environmental Social and Governance (ESG) data indicators within our Sustainability Data Ability and Independence
presented by Joincare. The review does not extend beyond such information and is solely based on it. In performing such review the Transparency Index (“SDTI”) as part of our assurance process specific attention and further review was paid to the following data The assurance team was composed of Lead Assuror and Assuror who are experienced in the industrial sector and trained in a range
British Standards Institution has assumed that all such information is complete and adequate. points: of sustainability environmental and social standards including GRI Series Standards AA1000 HKEX Environmental Social and
Chapter Indicator Details Governance Reporting Code ISO 14064 ISO 14001 ISO 50001 ISO 45001 ISO 9001 etc. 1 Sustainability Management Stakeholder Identification and Communication Materiality Assessment Process and Results
Scope British Standards Institution is a leading global standards and assessment body founded in 1901. The assurance is carried out in line 5 Supply Chain Security Total number of unique suppliers with the BSI Fair Trading Code of Practice.The scope of engagement agreed upon with Joincare includes the following: 5 Supply Chain Security Number of unique significant suppliers
1． The assurance scope is consistent with the description of the Report. The Report is prepared in accordance with the Guidelines 5 Supply Chain Security Number of unique significant suppliers supported with development measures
No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report (Trial) Corporate Sustainability 5 Supply Chain Security Number of unique significant suppliers assessed via desk assessments/on-site assessments
Disclosure Standards – Basic Standards (Trial) with reference to the Recommendations of the HKEX Environmental Social and 5 Supply Chain Security Number of unique significant suppliers assessed with substantial actual/potential negative impacts
Governance Reporting Code. 8 Green Operations 9 Appendix Scope 1 Greenhouse Gas Emissions
2 In accordance with Type 2 Moderate Level of Assurance as defined in the AA1000 Assurance Standard V3 (“AA1000AS V3”) BSI 8 Green Operations 9 Appendix Scope 2 Greenhouse Gas Emissions – Market-Based ．
evaluates the nature and extent of Joincare’ adherence to the four reporting principles of Inclusivity Materiality Responsiveness 8 Green Operations 9 Appendix Scope 2 Greenhouse Gas Emissions – Location-Based 8 Green Operations 9 Appendix Scope 3 Greenhouse Gas Emissions
and Impact in preparing the Report. The reliability of specified sustainability performance information and data disclosed in the 9 Appendix Scope 3 Category 1: Purchased Goods and Services
Report has also been evaluated. 9 Appendix Scope 3 Category 2: Capital Goods
9 Appendix Scope 3 Category 3: Fuel and Energy-Related Activities
Opinion Statement 9 Appendix Scope 3 Category 4: Upstream Transportation and Distribution
We conclude that the Report provides a fair view of Joincare’ sustainability plan and performance in the reporting year. The Report 9 Appendix Scope 3 Category 5: Waste Generated in Operations
subject to assurance is free from material misstatement based upon evaluation within the limitations of the scope of the assurance the 9 Appendix Scope 3 Category 6: Business Travel
information and data provided by Joincare and the samples taken. Based on our work carried out during the assurance process we 9 Appendix Scope 3 Category 7: Employee Commuting
believe that data and information stated in the Reporting Organization’s Report is correctly presented and that Inclusivity Materiality 9 Appendix Scope 3 Category 8: Upstream Leased Assets
Responsiveness and Impact based on AA1000 criteria are correctly addressed. We believe that the environmental social and 9 Appendix Scope 3 Category 9: Downstream Transportation and Distribution
governance general disclosures and key performance indicators are fairly represented in the Report in which Joincare’ efforts to pursue 9 Appendix Scope 3 Category 10: Processing of Sold Products 9 Appendix Scope 3 Category 11: Use of Sold Products
sustainable development are recognized by its stakeholders. 9 Appendix Scope 3 Category 12: End-of-Life Treatment of Sold Products
Our work was carried out by a team of sustainability report assurors in accordance with the AA1000AS V3. We planned and performed 9 Appendix Scope 3 Category 13: Downstream Leased Assets
this part of our work to obtain the necessary information and explanations. We consider that the Joincare company’s report complies 9 Appendix Scope 3 Category 15: Investments
with the Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 14 – Sustainability Reports (Trial) Corporate 9 Appendix Non-Renewable Energy Consumption
Sustainability Disclosure Standards – Basic Standards (Trial) and that the report may be considered to comply with the principles set 9 Appendix Renewable Energy Consumption Fo r and on behalf of BSI: Verifier of the Report:
o u t in th e A A 1 0 0 0 A c c o u n ta b il it y P r in c ip l es (2 0 1 8 ) ( ‘A A 1000AP (2018)’). 9 Appendix Hazardous Waste – Recycled / Reused
9 Appendix Hazardous Waste – Landfilled 9 Appendix Hazardous Waste – Incinerated with Energy Recovery
9 Appendix Hazardous Waste – Incinerated without Energy Recovery
9 Appendix General Industrial Waste –Recycled / Reused
9 Appendix General Industrial Waste – Landfilled
9 Appendix General Industrial Waste – Incinerated with Energy Recovery
9 Appendix General Industrial Waste – Incinerated without Energy Recovery Michael Lam Senior Vice President APAC Assurance Team Leader: P engyu Chen9 Appendix General Industrial Waste – Other Disposal
9 Appendix Total Water Withdrawal
9 Appendix Wastewater Discharge
9 Appendix Total Net Water Consumption
9 Appendix Number of Work-Related Fatalities - Employees
9 Appendix Number of Work-Related Fatalities - Contractors
9 Appendix Lost-Time Injury Frequency Rate (LTIFR) - Employees
Issue Date: 2026-04-15 Effective Date: 2026-04-15 9 Appendix Lost-Time Injury Frequency Rate (LTIFR) - Contractors
Issue Date: 2026-04-15 Effective Date: 2026-04-15
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