Environmental
Social and Governance
(ESG) Report
Guangdong Marubi Biotechnology Co. Ltd.Tel: 020-66378685
Email: s ecurities@marubi.cn
Address: 6 /F South Tower Poly Granville
Building No. 11 Xiancun Road
Tianhe District Guangzhou
Postal Code: 510000About the Report Contents
Introduction Message from Chairman 02 26 Governance
This report is the 2nd ESG Report issued by Guangdong Marubi Biotechnology Co. Ltd. (hereinafter referred to as "Marubi" or the About Marubi 04 responsibility: Pursuit
"Company") to stakeholders. It aims to truly reflect the Company's efforts practice and performance in governance environmental Company and brand profile 04
social and other fields of responsibilities through objective standardized transparent and comprehensive information disclosure. of excellenceESG Management 11
This report mainly covers the period from January 1 2022 to December 31 2022 while some contents may extend to the previous
years or reflect the policies and practices of year 2023. Communication with stakeholders and analysis of Improving corporate governance 28
material topics 11 Strengthening risk compliance 30
Response to the Sustainable Development Goals Staying committed to business ethics 31
Report scope and boundaries (SDGs) of the United Nations 13 Protecting intellectual property with concerted effort 32
Keeping information secure proactively 33
Unless otherwise specified this report covers Marubi as well as its branches and subsidiaries. The "Marubi" and the "Company" Green Manufacturing: Exploring intelligent transformation 33
herein shall mean Guangdong Marubi Biotechnology Co. Ltd. as well as its branches and subsidiaries. Injecting New Momentum into the beauty
and health industry through Technologies 14
Committed to green manufacturing 14 36 Environment protection
Information description Focusing on recombinant collagen 21 responsibility: Green
The data used in this report come from public data of government departments internal statistical data administrative documents and low carbon
and reports of the Company third-party evaluations and interviews etc. Unless otherwise specified the monetary amounts shown in
this report are dominated in RMB. In case of any inconsistency with the data of the financial report the financial report shall prevail.Driving forward environment-friendly construction 38
This report is released after being reviewed by the Board of Directors. The Company and all its directors guarantee that there are no Conserving energy and reducing consumption for clean
false records misleading statements or major omissions herein and jointly and severally assume the liabilities for the authenticity production 38
accuracy and completeness of the contents hereof. Reducing cost and increasing efficiency to conserve
natural resources 41
Appendix 72 Promoting low-carbon development philosophy 43
Preparation basis
Key performance table 72
● China National Standard Social Responsibility Report Preparation Guide (GB/T 36001-2015) Indexes 74
Comments and feedback 78 44
● Chinese CSR Report Preparation Guide issued by the Chinese Academy of Social Sciences (CASS-ESG 5.0) Social responsibility:
● 2030 Sustainable Development Goals (SDGs) of the United Nations Continued growth
● GRI Standards of GRI (Global Reporting Initiative)
Pursuing innovation through unremitting R&D efforts 46
Keeping improving the product quality 55
Improving service with the customer-oriented
Preparation process philosophy 56
Building a harmonious workplace with the people-
This report is based on the Company's ESG practice and follows the process of "project approval - collection of materials - oriented philosophy 60
preparation and revision - review by senior management - review by the Board of Directors - disclosure to the public". Active Adhering to good health and safety practices 67
communications are carried out with relevant stakeholders in the process of project approval preparation and revision and other Working together and joining hands with partners 70
links to discuss the structure and contents of the report. Boosting community co-construction with a grateful
heart 71
Release form
This report is released in electronic form. You may visit the website of the Shanghai Stock Exchange or the Company’s website (www.marubi.cn) to view it. The Company plans to release it once a year. In the event of any discrepancy between the Chinese version
and the English version the Chinese version shall prevail. If you have any questions or suggestions about this report you may send
an email to securities@marubi.cn or call (020) 66378685.02 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 03
Message from
Chairman
With China's 14th Five-Year Plan for bio-economy Jointly building a green ecology
development the rapidly increasing demand of
consumers in "medicine" "food" "cosmetics" and We aim to build a "clean efficient low-carbon and Growth for the good "safety" has drawn more attention. Additionally circular" green enterprise and achieve sustainable
of all a number of major changes are brewing in and green development. At the environment aspect
bioengineering and biotechnology. We adhere to we implement lean production costs reducing
the strategy of "customer first excellent products and efficiency increasing; we actively develop
exploitation of market advantages and precise and apply green technologies and continue to
Courage makes us believe we can challenge operation" espouse the core business philosophy implement energy natural resources and emission
adversity of sustainable development and keep up with the management; we promote green operations and
times to deliver great performance in research and green development.Belief is what we developed with enduring development products brands and services.courage over time
We believe in the power of time the power Persistence in scientific and technological innovation Creating prosperity
of belief
We believe that technological innovation changes To integrate social responsibility into the development
the world. To control the discourse power of raw of our business is our commitment to the common
materials we lead the industry into the era of development and prosperity of the times. We believe
"Chinese ingredients". The "recombinant collagen" in the principle of integrity and always give back to
developed by us is the world's leading anti-aging society. At the society aspect we strive for excellence
ingredient which can rival the three leading anti- in products to win the trust of customers; we care
aging ingredients - Boswellin A-alcohol and about our employees and help them grow mature and
Peptide. It boasts "the 4th leading anti-aging succeed; we act for love actively participate in public
ingredient in the world". welfare and work together to achieve prosperity.Committed to efficient governance Growth for the good of all
In 2022 the 20th National Congress of the
Excellent governance is the cornerstone of a
Communist Party of China mapped out a The only way to achieve success is to keep forging
company's long-term sound operation and healthy
grand blueprint for building a socialist modern ahead and seek win-win cooperation. Believing in
development. At the governance aspect we
country in an all-round way and advancing long-termism we integrate the ESG management
continue to improve the corporate governance
the great rejuvenation of the Chinese nation model with company operations through actively
system maintain standard operation improve
on all fronts through a Chinese path to putting the idea of sustainable development
the internal control and compliance system and
modernization sounding a clarion call of the into practice. In the next 10 years we will invest
strictly observe business ethics. In particular we
times for a new journey. The Company has hundreds of millions of yuan to continuously drive
protect intellectual property rights actively promote
forged ahead with its original intention. Over the development of the industry firmly practice the
digital construction and improve overall values to
the past two decades we have focused on ESG concept to become an excellent enterprise
create a solid foundation for long-term and sound
the cosmetics industry to find create and with technological innovation as the focus the
development of the Company and safeguard
share beauty. We are always devoted to beauty and health of the people as the mission.shareholders’ rights and interests in the long run.becoming a world-class competitive brand.CEO of Marubi
Sun Huaiqing04 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 05
About Marubi
Company and brand profile Brand ecology
About Marubi
Ecological layout of the investment
Since its establishment in 2002 Guangdong Marubi Biotechnology the development of biotechnology such as genetic engineering industry of beauty and health
Co. Ltd. has been committed to the R&D production and sale of synthetic biology biological fermentation and plant extraction. In
cosmetics based on research on "skin science" and "biological 2022 the Company's own raw material factory and cosmetics testing
science" research. Its brands mainly cover the fields of anti- company were fully put into use achieving a complete scientific
aging functional skin care and make-up with differentiated brand research link from raw material research and production to product Marubi
positioning to meet the needs of consumers of different ages and development and efficacy evaluation providing strong support for
preferences. The Company's main brand "Marubi" has been focusing the closed-loop research and transformation of the Company's Focus on eye care
on the anti-aging segment with eye care at the core for 20 years. core raw materials and technologies in the future. This has laid a and engaged in anti-aging
Known as "Eye Care Master" it has become a leading domestic solid foundation for the Company to maintain its industry-leading research for 20 years
brand of high-end and medium-end positioning with a considerable technological advantage. The Company has also worked with a
market share through its dedicated R&D rigid quality control and number of domestic and foreign universities and R&D institutions to
continuous brand building and has been selected by media of the conduct multi-dimensional cooperation in research and innovation
industry as "TOP 1 anti-aging product" for eight consecutive years. and has taken the lead or participated in the compilation of national
industry and group standards and published academic papers on
The Company adheres to the principle that quality is the lifeline of domestic and foreign journals many times.an enterprise and has been recognized as a "high-tech enterprise"
for four consecutive sessions. With a construction area of 50000 The Company has built a multi-channel sales network covering
square meters and a self-sufficiency rate of 70%-80% its own 5C online platform e-commerce content e-commerce offline daily
factory was put into operation in 2014. The 5C factory has passed chemical specialty stores department store counters and beauty
the ISO 9001 quality management system certification the US salons. Following the principle of "using the best of the world to Passional
FDA GMPC certification and the EU's ISO 22716 (GMP) cosmetics make the best of China" the Company develops high-quality Lover
production certification qualification certificate of inspection and products based on the world's leading technologies takes the "long-
testing institutions (CMA) and other certificates. termism strategy" as the guiding direction focuses on the mission of Extremely minimalist
"technology-driven beauty and health" and adheres to the operation cutting-edge makeup foundation
The Company adheres to independent R&D. It is driven by joint combining "technology + brand + digital intelligence" aiming to build
R&D both at home and abroad. The Company focuses on skin a globally competitive company.anti-aging deeply cultivates beauty and health and pursues
Chunji
Food extract technology
suitable for sensitive skin06 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 07
Corporate culture
The name "Marubi" comes from a philosophical thinking of oriental
Origin of "Marubi" aesthetics – roundness is beauty. In Shuo Wen Jie Zi "Wan" means
"roundness" and "Wan Mei" (Marubi) means "roundness is beauty".Vision of Marubi Be a globally competitive company and make the world beautiful
Mission of Marubi Drive the beauty and health industry with technology and use the best
of the world to make the best of China
Eighteen views of Marubi View of View of
View of team behavior View of
talent growth
View of View of
development sale
Learn during the lifetime and Self-disciplined and
apply what we have learned committed to the society
View of View of
enterprise We are far from perfect service
Be grateful to the society but our pursuit of
and act for love perfection will never stopView of View of
View of learning value View of
life View of communication
responsibility View of ideal
We will always be with our
View of View of customers to go through View of Professional attentive View of
wealth cooperation careerthick and thin together and dedicated action08 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 09
Development history of the Company 2021:2015: Marubi released a kind of recombinant 2011: humanized collagen co-created with Jinan As a spokesperson of Marubi Tony University and the National Engineering
Marubi was awarded the title of high- Leung Chiu Wai performed "Eye" Research Center for Genetically
tech enterprise for the first time (won emotionally a three-minute phenomenal Engineered Drugs and applied it to 2002: this honor for four consecutive sessions) classic commercial which won a Marubi’s Recombinant Collagen seriesnumber of awards
The brand of Marubi was born upon the Marubi established its subsidiary in Tokyo
establishment of the Company and the
launch of production of the factory 2012: launched a Sino-Japanese dual-core R&D center and deployed a high-end line 2022:
Marubi completed the building of
2005: Marubi's third-generation Elastin Essential Digitization 1.0 and a digital middle Day & Night Eye Essence was released platform on all sides and achieved
for which it was the first time to propose the 2017: whole life cycle management including
The total sales volume of Marubi eye care concept of doing day and night skincare R&D procurement production supply
products exceeded one million units differently Marubi invested in Passional Lover
(achieved 100% shareholding in 2019) market and sales
2006:2013:
The brand Chunji came into being Marubi was named as "Eye Care Master" 2018:
positioned as "skin care products of
A fund of the global luxury group LVMH
natural ingredients" MARUBI TOKYO Japanese Sake Age
invested in Marubi
Renewal Fresh Serum the first high-
end line for imported Marubi Tokyo with
2007: 2014: the original packages was launched
Marubi created a classic with its first- The 5C center of nearly 50000 square
generation Elastin Essential Eye Essence meters in Guangzhou Science City 2019:
on the slogan "Bounce bounce bounce! officially replaced the old factory Marubi's A-shares were listed on the
Bounce off the crow's feet!" which was and was put into use including a main board of the Shanghai Stock
upgraded to the fifth generation in 2018 R&D center a manufacturing center Exchange becoming "the first eye
a training center an information cream stock in China"
center and an art center as well as
2008: the world's first-class workshops and manufacturing processes 2020:
with sophisticated production and
The "Better Care Fund" was officially
R&D facilities imported from Japan Marubi proposed the product concept of two-
established. Under this fund for every
Germany South Korea and other in-one skin care X instrument and launched
bottle of product sold RMB0.1 will
countries a two-in-one skin care X instrument with
be donated to public welfare from
black technology – Multiple Peptide Anti-
the income to support education in
Wrinkle Eye Cream marking the brand's
underdeveloped areas
further evolution towards rejuvenation and
scientific technology10 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 11
Qualifications and honors ESG Management
Core qualifications or honors
Communication with stakeholders and
● National High-Tech Enterprise ● Guangdong Innovative Small and Medium-sized Enterprise
● National Intellectual Property Demonstration Enterprise ● Special Prize of Scientific and Technological Progress Awards analysis of material topics
of Guangdong Cosmetics Society
● CMA Qualification Certification
● Postdoctoral Innovation Center of Huangpu District Guangzhou Marubi takes a positive attitude to check the impact of the Company's operation on various stakeholders establishes multiple
● Guangdong Bio-Skincare Engineering Technology effective communication and response channels and establishes close relations with stakeholders to achieve win-win situation.Research Center ● Guangzhou Green Factory
● Guangdong Enterprise Technology Center ● Guangzhou Cleaner Production Stakeholder Issues Communication and response
Enterprise
● Guangdong Excellent "Specialized and New" Small and
Medium-sized Enterprise ● China Patent Award - Three Excellence ● Operational compliance ● Institution inspection
Awards Government and regulatory ● Corporate governance ● Official correspondence
authorities ● Emission management ● Policy implementation
● Economic benefits ● Information disclosure
● Corporate governance ● General meeting of shareholders
Stockholders and investors ● Economic benefits ● Information disclosure
● R&D and innovation ● Roadshow
● Product quality and safety
● Quality management
● Service quality
Consumers ● Customer service
● Chemical safety
● Satisfaction survey
● Responsibility marketing
● Employees’ rights and benefits ● Internal communication platform
● Occupational health and safety ● Employee appraisal and
Employees
National Intellectual Property CMA Qualification Certification Guangzhou Green Factory ● Employee training and promotion
Demonstration Enterprise development ● Employee training
● Supply chain management
● Supplier management
Suppliers/distributors ● Anti-corruption
● Green procurement
● Raw material procurement
Cooperation organizations ● Product quality and safety ● Investigation and visit
(Public welfare organizations and ● Chemical safety ● Technical exchange
research institutions and so on) ● R&D and innovation ● Regular meeting
●
New Makeup Award 2022 Powerful Brand - Marubi New Makeup Award 2022 Innovative Brand - Chunji Industry cooperation ● Industry forum
Industry associations ● R&D and innovation
● Exchange and mutual visit
● Product quality and safety
● Community service
● Community activity
● R&D and innovation
Public and community ● Voluntary service
● Greenhouse gas emission
● Raw material procurement
Communication with Marubi’s stakeholders
Blue Rose Award 2022 Star Product - Marubi New Makeup Award Annual Popular Makeup -
Multiple Peptide Anti-wrinkle Eye Cream PL "Invisible Liquid Foundation"12 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 13
Response to the Sustainable Development
In order to continuously improve ESG management the Company identifies material issues and forms material issue library Goals (SDGs) of the United Nations
through three steps: issue identification issue ranking and material issue confirmation which will help the Company carry out ESG Marubi aims to become a globally competitive brand. The Company integrates ESG concepts into business operations to achieve
management construction information disclosure and continuous communication with stakeholders in the future. sustainable development management and actively responds to the SDGs.SDGs Marubi action in 2022 Corresponding chapter or section
Issue identification Issue ranking Material issue ● confirmation Care about the physical and mental health of employees carry out ● Adhering to good health and safety comprehensive occupational hazards monitoring every year and all
practices
employees take physical examination.● Identify and summarize ● Determine significance ● Recognize material issues
● To promote the education development Marubi has been giving supports
ESG-related issues by and impact of each issue that could significantly affect ● Boosting community co-construction to Chongqing University of Technology and educators in the long run and
referring to domestic and by taking into account the environment society and with a grateful hearthas donated RMB500000 as student grants.international standards and the experts’ comments economy according to analysis
macro policies and based on basis of survey of results and provide specific ● The company always advocates and adheres to gender equality
on industry focuses and stakeholders and internal & response to these issues in this employment diversity and other concepts and strives to create a fair ● Building a harmonious workplace
respectful and diverse working environment. Female employees account with the people-oriented philosophy
trade practices. external views. report. for 66.23%.● Conserving energy and reducing
● Improve the building of the factory sewage treatment station reduce
consumption for clean production
waste water discharge actively carry out water-saving projects and
● Reducing cost and increasing efficiency
improve the comprehensive utilization efficiency of water resources.Product quality and safety to conserve natural resources
R&D and innovation
Corporate governance ● Carry out the rooftop distributed photovoltaic power generation renovation ● Conserving energy and reducing
Emission management Chemical safety Service quality project to achieve energy saving and emission reduction. consumption for clean production
Environment management
Greenhouse gas emission
● Respect the employees’ rights and interests establish a comprehensive
Energy use salary and welfare system provide a diverse growth platform and provide ● Building a harmonious workplace
Raw material procurement employees with an inclusive and comfortable workplace environment. with the people-oriented philosophy
Environment policy Industry cooperation ● Forced labor and child labor are prohibited.Resource utilization
Supply chain management ●
Anti-corruption Emphasize investment in research and development establish a global
● Green manufacturing
open partnership system and engage in interdisciplinary practice and ● Pursuing innovation through
Risk and compliance make creative breakthroughs. unremitting R&D efforts
Responsibility marketing
● Adhere to the principle of open recruitment fair competition and merit-
Employee training ● Building a harmonious workplace based employment insist on equal employment and oppose all forms of
and development Occupational with the people-oriented philosophyemployment discrimination.Employees’ rights health and safety
and interests Intellectual property ● Emphasize interaction and communication with consumers carry out
● Improving service with the customer-
marketing activities in principle of responsibility and advocate rational
oriented philosophy
consumption and scientific skin care.Community service ● Working together and joining hands
● Follow the concept of green procurement purchase and use raw materials
with partners
with less impact on environment.● Explore synthetic biology and green manufacturing technology to pursue
green and low-carbon development. ● Green manufacturing
● Actively promote energy-saving technology transformation reduce emissions ● Conserving energy and reducing
of three wastes (i.e. waste gas waste water and waste solid) and integrate consumption for clean production
Impact on Marubi environmental protection concepts into daily operations.● Prohibit any form of corruption and bribery request all relevant parties to
Environment Corporate governance Society sign a commitment letter on integrity and self-discipline and strengthen the ● Staying committed to business ethics
Marubi materiality matrix promotion of integrity and self-discipline awareness.Marubi’s response to SDGs
Stakeholders’ concern14 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 15
With the continuous development of science and technology a number of major
changes are brewing in the field of bioengineering and biotechnology. With
the national policy of carbon neutrality and peak carbon dioxide emissions
the National Development and Reform Commission has clearly defined "bio-
manufacturing as a strategic key development direction of bio-economy". Marubi
strictly implements the guidelines of bio-economy of the National Development
Products using synthetic biology technology account for 27.5% covering Marubi's all star products including Recombinant
and Reform Commission and the strategic deployment of green bio-manufacturing
of the Ministry of Science and Technology continues to explore the application Collagen series Elastin series Polypeptide Protein series Multiple Peptide series Chocolate series as well as the Line Sculpting series
of biotechnology represented by synthetic biology and genetic engineering in Luxury series Soft and Smooth Skin series for beauty salons only.beauty and health industry. Through the mutual integration of industry-university-
research-medicine-inspection Marubi has conducted research on recombinant
collagen other green ingredients and technologies for several years and has
yielded fruitful results. The key ingredient "recombinant collagen" jointly developed
by Marubi and National Engineering Research Center for Genetically Engineered
Drugs has Chinese characteristics. Marubi overcomes the key technical obstacles
in this field and creates the recombinant collagen with triple helix structure which Technology exploration: CelCaper directional cryogenic
rivals the three leading anti-aging ingredients - Boswellin A-alcohol and Peptide
and has become "the 4th leading anti-aging ingredient in the world". The Company extraction technology
firmly believes that technological innovation changes the world. In the future the
Company will continue to deepen its research on recombinant collagen and other The extraction and preparation of active ingredients from animals Compared with traditional plant extraction technique CelCaper
technologies promote the improvement of the industry's green R&D ecology and and plants commonly used in cosmetics R&D mainly rely on solvent directional cryogenic extraction technology has the advantages of
promote the sustainable development of the environment. method ultrasonic-assisted extraction technique microwave-assisted high extraction efficiency short extraction time (in milliseconds) and
extraction technique high-pressure homogeneous extraction technique high extraction accuracy and almost no heat is generated during the
microjet extraction technique and so on which can help extract target extraction process. This technique can retain the most heat-sensitive
Committed to green ingredients to some extent but generally suffer from many drawbacks ingredients in plants while preserving their natural efficacy. Moreover such as low extraction efficiency high energy consumption local heating and cooling are not needed during the preparation process so
manufacturing overheating and difficulties in industrial scale-up. the energy consumption is significantly reduced. In addition ionic liquids can effectively replace traditional solvents such as ethanol and are
The Company's CelCaper directional cryogenic extraction technology natural in origin mild in nature and can be applied directly to the skin
Marubi is accelerating the construction of green manufacturing system in order is designed to replace traditional solvents with natural ionic liquids. and products. Therefore there is no need to set up complex purification
to realize the development and research of environment-friendly technologies. With high-pressure electric field cell wall-breaking technology the processes to post-treat traditional extraction solvents and remove
The Company actively takes measures to minimize the impact of production permeability of cell membranes and cell walls can be changed at low impurities thus avoiding the energy consumption and the generation of
on the environment and reduce energy consumption. At the same time the temperature to extract active substances from cells through specific ionic wastes and greatly reducing environmental pollution. The Company's
Company has conducted a lot of technology exploration and summarized a liquids effectively in a directional manner. This enhances the extraction exploration in this technical route provides the possibility to prepare
technology path based on synthetic biology genetic engineering and biological rate of target compounds. green mild highly active and high-tech active raw materials enriching
fermentation together with green manufacturing. and upgrading the means of extraction and R&D of biological raw
materials and forming an excellent extraction advantage.Notes: Synthetic biology
Synthetic biology refers to the use of engineering design concepts
to modify existing natural biological systems according to certain
laws and existing knowledge or to design and build new biological
components devices and systems to achieve the construction of
cell factories. The purpose is to serve humans. Synthetic biology
can be applied in vitro and in vivo. For application in vitro it
refers to manufacturing products by transforming the existing life
system through synthetic biology which are usually products with
high added value but featuring high chemical production costs
high carbon emissions or difficult to obtain in large quantities
through traditional methods. For application in vivo it refers to
microorganisms that exert effects in the human body acting as
medicine after engineering transformation.At present synthetic biology is developing rapidly and a number
of synthetic biology enterprises have emerged in fields such as
medical health chemical and new materials agriculture and mass
consumption. These enterprises respond to downstream demands
solve downstream pain points promote product industrialization
and rapidly expand application scenarios.into the beauty and health industry through Technologies
Injecting New Momentum
Green
manufacturing16 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 17
Case: Bombax malabaricum flower extract Ultrasonic-assisted water CelCaper directional cryogenic (alcohol) extraction extraction
As the city flower of Guangzhou bombax malabaricum flower has a long history
of cultivation in South China. It represents Guangzhou's prosperity and vitality and
●●
inspires people to serve the country. It is known as "Hero tree in South China the Kapok extract Low extraction rate when water is used High extraction rate with self-designed
most beautiful flower in Guangzhou". The Company actively responds to the call as the extraction solvent. ionic liquids for flavonoid.of the General Office of the People's Government of Guangdong Province on the ● Extraction solvent Limited production environment and
● Natural in origin mild and pollution-free.issuance of Implementation Plan for Promoting the High-quality Development of environmental pollution when ethanol is
the Cosmetics Industry in Guangdong Province Yuebanhan [2020] No. 330. In this used as an auxiliary extraction solvent.Implementation Plan government encourages enterprises to adopt modern science
and technology and take advantage of local traditional advantages and special plant
resources to manufacture cosmetics and accelerate the output and transformation
of scientific and technological achievements in the cosmetics industry. To achieve
this goal the Company is rooted in traditional plant resources and makes good use
of local advantages to research and develop bombax malabaricum flower extract ● Long extracting time and high energy ● Short extracting time high efficiency
independently (bombax malabaricum flower is rich in flavonoid which is a strong consumption. External heating is required. and low energy consumption. No heat is
antioxidant and can be used to prevent cell degradation and aging). The Company A lot of heat is generated during the generated and temperature does not rise
upgrades the extraction technique from traditional ultrasonic-assisted which can extracting process and thus cooling is during the extracting process and thus
greatly improve the extraction rate showing an increase of 56.8% in the flavonoid
Extracting process required. external cooling equipment is not required.content of bombax malabaricum flower extract.● Heat-sensitive ingredients are inactivated ● Heat-sensi t ive ingredients are not
after heating and ethanol removal is destroyed and the post-treatment is easy.required before application.● Determine flavonoid as the target ● Design the ionic liquid (consisting of 2 ● Dissolve the bombax malabaricum flower in the
ingredient according to the ingredient - 3 natural components) suitable for ionic liquid and break cell walls of the flower with
characteristics of bombax malabaricum dissolving out flavonoid according to the pulsed electric field (PEF). This step finished CelCaper directional cryogenic extraction technology has lower energy consumption less environmental pollution and
flower. the target ingredient. within 2 minutes generates no heat and keeps the higher extraction efficiency compared with the ultrasonic-assisted water (alcohol) extraction technique
active ingredient of flavonoid while greatly reducing
energy loss compared with the traditional ultrasonic
technology.
123
20
15
Extraction steps
10
Compared with the traditional process the 5
cryogenic extraction technology increases the 0
extraction efficiency of flavonoid from bombax
Ultrasonic-assisted CelCaper directional
malabaricum flower by 56.8% water (alcohol) cryogenic extraction
extraction
Technique name
54
● After fi ltering and treatment pack ● Dynamically extract the bombax malabaricum flower with broken cell walls. No external heating is
and store the extracted bombax required for this step thus keeping the heat-sensitive ingredients in the bombax malabaricum flower
malabaricum flower solution. to the greatest extent and minimizing energy consumption.Extracting rate (%)18 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 19
Ingredient discovery: Natural fermentation product -
Schizophyllan Polysaccharide (SPG)
Schizophyllum is a fungus used for food and medicine. It has sedative effect and can be used to improve immunity treat SPG features hydration and repairing with excellent moisturizing anti-allergy anti-inflammatory skin repair and anti-wrinkle effects.neurasthenia lethargy dizziness tinnitus sweating and alleviate sports fatigue. The Company adopts biological fermentation It can also improve cell vitality. In vivo and vitro tests SPG is proved to have better moisturizing repairing and anti-aging effects
technology to generate bioactive polysaccharides - SPG which is one of the main active substances fermented by Schizophyllum. than hyaluronic acid. As of the end of the reporting period SPG has achieved mass production.Its structure is mainly β-(1-3)-D glucan main chain combined with β-glucan of β-(1-6)-D glucose side chain.Schizophyllum SPG structure
The efficacy test report: After using the test sample for one week the skin water content
is increased by 23.38%; after using the test sample for 28 days the skin water content
is increased by 31.75%
Separation and identification of spawn Preparation of liquid spawn
01 ● Separate and identify the schizophyllum 02 ● Activate the spawn for axenic culture in
commune in a sterile environment to suitable conditions to obtain the strong
obtain the spawn for axenic culture. liquid spawn. Formula exploration: Optimization of preparation process
To achieve environmental sustainability the Company continues to promote formula upgrading while ensuring the improvement of
Fermentation in fermenter Extraction of SPG efficacy. In other words the Company optimizes the formula preparation process to reduce energy consumption and greenhouse
gas emissions.
03 ● Inoculate the liquid spawn in a fermenter ● Schizophyllum excretes SPG in the later and start fermentation by regulating the 04 stage of fermentation. Extract and purify Item type Optimization Achievement
dissolved oxygen in the fermenter stirring the fermentation liquid to obtain the
rate and other parameters. bioactive polysaccharides SPG.The material’s dissolution and dispersion
SPG preparation process The maximum temperature is are not affected and heat loss and
adjusted from 90°C - 95°C to energy consumption are reduced. As
85°C - 90°C when aqueous of the end of the reporting period the
Compared with the traditional plant extraction method biological
fermentation technology has the following advantages: Water agent type solution is heated. optimization has been applied to 135
products of water agent type.Technical advantages: Bacteria substrates products and the heat generated by fermentation are easy to diffuse
so that the fermentation can be carried out under homogeneous conditions. The extraction efficiency is high and the The cooling time is shortened so the
process is easy to control making it possible to extract target compounds in large volumes. Compared with traditional The minimum temperature is required chil led water and energy
planting the biological fermentation technology does not require agricultural land and fertilizers which can greatly adjusted from 35°C - 38°C to consumption are reduced. As of the end
decrease the use of cultivated land reduce soil pollution and protect the ecological environment. 38°C - 42°C when aqueous of the reporting period the optimization
Production process: It is easy to extract and refine the fermentation products in a short time without using organic Cream type solution is cooled. has been applied to 76 products of
reagents and physical processing thus greatly reducing wastes and achieving environmental protection during production. cream type.Product quality: The production efficiency is high in factory. It is easy to carry out automatic control and the product
Formula green upgrading
quality is stable.20 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 21
Green action: Sustainable development Focusing on recombinant collagen
As one of the leading listed companies in cosmetics industry in China the Company has implemented the green bio-manufacturing
which shows the Company’s responsibility. The Company continues to cooperate with the government enterprises and industry With the synthetic biology ground breaking advances have been made towards overcoming cognitive and technical limitations on
associations to promote the green and sustainable development of the industry. During the reporting period the Company led or recombinant collagen. As the 4th leading anti-aging ingredient recombinant collagen is becoming more and more popular because
participated in two provincial-level key green bio-manufacturing special projects held the synthetic biotechnology and green bio- of its promising and wide application prospects in many fields such as cosmetics medical treatment food and massive health. After
manufacturing forum and took the lead in drafting and releasing the Determination of Anti-Allergy in Cosmetics – Zebrafish Embryo years of research and development of the Company the recombinant collagen has become a major breakthrough in the global anti-
Method and the Evaluation of Antioxidant Activity in Cosmetics – Caenorhabditis Elegans Assay and other group standards (For aging technology because of its high activity high stability and high homology with the amino acid sequence of human collagen.more information about caenorhabditis elegans assay see the section Animal welfare).Key research and development programs of the Department of Science and Notes: Type I collagen and type III collagenCase: Technology of Guangdong Province - green bio-manufacturing projects
Collagen is a family of 28 subtypes of collagen which performs many important tasks in the human body including
The Company has launched the green bio-manufacturing projects from the key research and development programs of the
supporting the human body. About 70% of the proteins in human skin are collagen of which two types are widely
Department of Science and Technology of Guangdong Province which are Green Biomanufacturing Key Technology and
mentioned and used for important functions: Type I collagen and type III collagen. Type I collagen accounts for 80% of
Industrial Application for Advanced Cosmetic Ingredients and Green Biomanufacturing Key Technology and Industrial Application
the total collagen in the adult skin and supports the skin with tree-like fibers. Type III collagen is elastic with a network
for Recombinant Proteins Antibodies and Polypeptide Medicines respectively. The purpose is to study the transformation of raw
structure. After adulthood type I collagen and type III collagen start to lose and the ratio of the two types of collagen is out
material sources from plant extraction to microorganism preparation production through synthetic biotechnology and green bio-
of balance leading to skin aging. Therefore supplementing the skin with additional type I and type III collagen can keep
manufacturing technology with a focus on overcoming the difficulty in the green bio-manufacturing of major functional compounds.skin elastic to lessen wrinkles and slow skin aging.Green Biomanufacturing Key Technology and Industrial Application for Green Biomanufacturing Key Technology and Industrial Application for
Advanced Cosmetic Ingredients Kick-Off Meeting Recombinant Proteins Antibodies and Polypeptide Medicines Kick-Off
Meeting Type I collagen has strong supporting effect Type III collagen improves skin elasticity
Young skin Old skin
Case: Synthetic biology and green bio-manufacturing sub-forum
The 6th China (Baiyun Meiwan) International Summit Forum on
Cosmetics in 2022 is held in Guangzhou. The Company held
the sub-forum - synthetic biology and green bio-manufacturing
forum and invited many industry leading experts and corporate
R&D leaders to conduct academic exchanges and discussions
on cutting-edge green manufacturing technologies industry
trends and development. The Company aims to build an ● Collagen ● Fibroblast ● Collagen ● Fibroblast
innovation exchange platform centered on key technologies in
the synthetic biology field and promote innovative and high-
quality development in this field. Synthetic Biology and Green Bio-manufacturing Forum
Loss of collagen and skin support with age
In the future the Company will continue to focus on the biosynthesis process research and industrialization of functional proteins
active products and other bioactive substances that are useful for health and beauty and keep expanding business in the field of
beauty and health and provide greater support for the massive health industry.22 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 23
Notes: Recombinant collagen
● The recombinant col lagen
According to the preparation process collagen can be divided into recombinant collagen and animal-derived collagen has the amino acid sequence 01
among which animal-derived collagen is still the mainstream in the global collagen market. Due to the large molecular i d e n t i c a l t o t h e d o m a i n
mass of natural collagen with an average of more than 100000 Daltons (D) it is difficult for the human body to directly sequence of type I and type
absorb the natural collagen. However the extraction of uniform stable and highly active collagen from animals requires III collagens therefore having
high technical requirements. Moreover there are animal-derived sensitization and the residue of cytotoxic substances such higher safety.as acids alkalis and organic reagents during the extraction process which may impact the efficacy of collagen.The technical
With the breakthrough in genetic engineering technology recombinant collagen is of high stability high safety small molecular
mass and is easy to absorb. It has been gradually applied to end products in the fields of medical health and medical beauty. advancement of
Since it is difficult for the engineering cells prepared by gene recombination to form a complete triple-helical structure similar recombinant collagen
to that of natural collagen when fermenting representing and producing collagen and its analogues the biological activity
and structural optimization of recombinant collagen are still the focus of the industry's research and development. 02 03
● Through the unique patented ● With AlphaFold Google’s AI
Recombinant collagen technology Translation Suspension system about protein folding Technique and C-PRO Claspin it is found that "recombinant
Technique stability and activity collagen" has more triple-
Marubi’s self-developed recombinant collagen exhibits a triple helix structure highly similar to that of natural collagen with a 1:1 of recombinant collagen can be helical structures.ratio of chimeric amino acid sequences of type I and type III collagen functional structures which overcomes the difficulty that the improved and the stable triple-
two types of collagen cannot be absorbed simultaneously. The R&D and utilization of recombinant collagen shows the Company’s helical structure can be easily
continuous efforts to overcome difficulties in researching and developing recombinant collagen. formed.Case: The 3D epidermal model experiment shows the transdermal absorption of Marubi’s recombinant collagen
The 3D epidermal model is a 3D model in vitro constructed by using recombination in vitro technology. The model takes
keratinocytes as seed cells. This model has a complete epidermal stratified structure which is highly similar to human skin and
human epidermal lipid. The model can be used as a barrier and can be used as a substitute for human skin to test the sample’s
efficacy safety and absorbency. The experiment adopts the surface administration method. Apply the product containing
recombinant collagen (fluorescent labeling) evenly on the surface of the 3D skin model and check the penetration amount
(fluorescence intensity) and penetration depth (fluorescence distribution) of the recombinant collagen in the skin model at different
time points to test its transdermal absorbency.The result shows that the transdermal penetration of the recombinant collagen independently developed by the Company is detected
after 0.5 H 2 H 12 H and 24 H and the transdermal penetration of the recombinant collagen at any time point above is significantly
higher than that at the last time point. It indicates that the recombinant collagen has good penetration and the amount of penetration
increases with time.Recombinant type I and type III humanized collagen
Spatial structure of recombinant collagen synthesized by the Xiong Sheng chief scientist of Marubi recombinant collagen and
Company (predicted by AlphaFold) professor of Jinan University introduces the features of Marubi
recombinant collagen
3D skin model: Epikutis Human skin IOD (compared with the last time point)24 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 25
Ingredient promotion to drive the Case: The 2nd recombinant collagen anti-aging forum
development of the industry
The Company held the 2nd recombinant collagen anti-
The Company actively promotes the reform aging forum invited leading experts and scholars at home
and application of recombinant collagen and abroad to conduct in-depth discussions on difficulties in
in the daily chemical industry and works Marubi recombinant collagen series new
product launch the research and development of recombinant collagen to
together with China Anti-aging Promoting specify the direction of development and to give professional
Association and Guangdong Cosmetics October 8 2021 advice for newcomers who want to make efforts in the field of
Society to formulate five standards for
With the topic of "collagen" making you younger recombinant collagen. At the forum the Company announced the application of recombinant collagen."appraisal team" composed of 21 experts from the official establishment of an integrated collaborative platform The standards cover multiple application
famous universities at home and abroad was of "industry-university-medicine-research-inspection" for f ields and provide a good example in
invited to reveal the secret of anti-aging by recombinant collagen. By internally establishing a complete ensuring the industrial standardization of
"exploration" "creation" "construction" "secret system covering basic research application development recombinant collagen the improvement of medical testing pilot test and application promotion and
industry standards the promotion of brand revealing" and "interpretation". by externally leveraging the scientific research resources of The 2nd recombinant collagen anti-aging forum
development and the promotion of the rapid university-medicine-research-inspection the Company aims to
development of the entire industry. empower the entire industry chain of recombinant collagen.The Company also shares the latest research
results and applications of recombinant
collagen by holding forums and meetings to Against the backdrop of continuous iteration of recombinant collagen technology and growing demand for skin care the Company
promote industry technology upgrading and doubles its efforts to produce recombinant collagen. In the meantime the consumers are increasingly aware of recombinant
innovation: collagen’s skin benefits. What’s more the penetration rate of recombinant collagen is further increased. All these factors contribute
to the great prospects of the collagen market. In addition to industry exchanges the Company will continue to publicize and promote
the recombinant collagen and explain the efficacy for consumers. During the reporting period the Company released the Anti-aging
Skincare Trend White Book jointly with Tmall Innovation Center (TMIC) Mei Tmall and other organizations which deeply introduced
the recombinant collagen from three aspects including current development status and trend of the cosmetic and skincare
ingredient market advanced anti-aging demand and Chinese self-developed ingredient and technical development trend. Besides
the Company has released science popularization tweets about recombinant collagen through WeChat public accounts of Marubi
and other brands of Marubi further promoting popularization of recombinant collagen.
2021 Marubi biotechnology anti-
aging innovation forum
Case: The Great Chinese Ingredients
March 20 2021 October 15 2022
Released the "anti-aging secret" - recombinant Held the 2nd recombinant collagen anti-aging The Company initiates the "The Great Chinese Ingredients" IP project with Ocean Engine Harper's BAZAAR Chinese cosmetics
collagen of which the amino acid sequence in forum explored the transformation and industrial brands and more than 50 stars and experts. Relying on its strength in skin-care ingredients the Company helps consumers
the functional and structural domain is 100% application of biotechnology represented by discover great Chinese skin-care ingredients. Taking into account the features of the platform the Company visually communicated
similar to that of human body's collagen. genetic engineering and synthetic biology in the with its customers at different dimensions and levels to guide their mental cognition to spark discussion and to promote the overall
beauty and health industry and gave guidance understanding towards skincare ingredients.to beauty lovers and consumers on skin care
and injected new momentum into the beauty and
health industry in China.Significant
growth of brand
volume26 Guangdong Marubi Biotechnology Co. Ltd. 01 Environmental Social and Governance (ESG) Report 2022 27Governance responsibility:
Pursuit of
excellence
Marubi continues to improve the corporate governance level adhere to
standard operation strictly observe business ethics protect intellectual
property rights and improve its overall values creating a solid
foundation for long-term and sound development of the Company and
safeguarding shareholders’ rights and interests in the long run.Our actions:
● Optimize corporate governance improve information disclosure and
communication with investors
● Improve internal control compliance systems and strengthen construction
of business ethics
● Complete building of digitization 1.0 and create featured digital
transformation solutions28 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 29
Improving corporate governance About directors and the Board of Directors
The Board of Directors is the decision-making body of the Company and is responsible for and reports work to the general meeting
The Company continues to improve the corporate governance structure and enhance the regulated operation level in strict accordance of shareholders. The Board of Directors of the Company is composed of 9 directors including 3 independent directors. During the
with the Company Law of the People's Republic of China the Securities Law of the People's Republic of China the Trading Rules of reporting period the Company held 4 meetings of the Board of Directors and all directors attended the meeting. The directors of the
Shanghai Stock Exchange the Code of Corporate Governance of Listed Companies and other laws and regulations as well as the Company are able to perform their duties with loyalty care and due diligence. The procedures for convening and holding the meetings
requirements of China Securities Regulatory Commission ("CSRC") Shanghai Stock Exchange and other regulatory authorities. of the Board of Directors comply with the relevant provisions of the Company Law of the People's Republic of China the Articles of
Association and the Rules of Procedure for the Board of Directors of the Company.The Company has established a regulated and orderly corporate governance structure as required formulated corresponding
rules of procedure and clarified the duties and authorities procedures and obligations of the bodies at all levels in decision-making The Company's Board of Directors has the Strategy Committee Audit Committee Remuneration and Appraisal Committee and
supervision and implementation. With these efforts the Company has formed a governance mechanism featuring clear distribution Nomination Committee. Each committee has three members. The special committees have formulated the work rules and perform the
of powers and responsibilities scientific decision-making effective checks and balances as well as mutual coordination between the duties in accordance with the work rules.bodies at all levels with the aim of effectively safeguarding the legitimate rights and interests of the Company and shareholders.General meeting About supervisors and the Board of Supervisors
of shareholders The Board of Supervisors of the Company is composed of 3 supervisors including 1 staff representative supervisor. The Board of
Supervisors is the supervisory body of the Company supervises and checks the financial position and the performance of duties by the
directors general managers and other senior officers of the Company to safeguard the legitimate rights and interests of the Company
Board of Supervisors and shareholders. During the reporting period the Company held 3 meetings of the Board of Supervisors. The procedures for convening
and holding the meetings of the Board of Supervisors of the Company comply with the relevant provisions of the Company Law of the
People's Republic of China the Articles of Association and the Rules of Procedure for the Board of Supervisors of the Company.Board of Directors Office of the Board
of Directors Meeting Frequency of meeting Attendance rate
Meeting of the Board of Directors 4 100%
Meeting of the Board of Supervisors 3 100%
Strategy Committee Audit Committee Nomination Committee Remuneration and Appraisal Committee Meeting of the Strategy Committee 1 100%
Meeting of the Audit Committee 4 100%
ESG Implementation Audit Monitoring
Committee Department Meeting of the Nomination Committee 2 100%
Meeting of the Remuneration and
1100%
Senior management Appraisal Committee
Corporate governance structure Meetings of 2022
Governance mechanism Information disclosure management
The Company performs the information disclosure obligation in a true accurate complete timely and fair manner in strict accordance
About shareholders and the general meeting of shareholders with the relevant requirements of the applicable laws and regulations and of the Articles of Association and the Disclosure Management System of the Company. The Company stays committed to improving management level and quality of information disclosure and
According to the relevant laws regulations and the provisions and requirements of the Articles of Association the Company has formulated safeguarding rights and interests of investors. The Company has strictly observed insider trading rules formulated the System for
the Rules of Procedure for the General Meeting of Shareholders and established a relatively complete system for the general meeting of Registration and Management of Insiders Who Have Access to Insider Information. The Board of Directors is solely responsible for
shareholders. The general meeting of shareholders is composed of all shareholders and is the highest authority of the Company. During validity of insider information management. Moreover to avert reduce and standardize affiliated transactions the Company has
the reporting period the Company held an annual shareholders' general meeting and an extraordinary shareholders' general meeting. The formulated the Affiliated Transaction Management System stipulating review withdrawal and decision-making rules of affiliated
procedures for convening and holding the general meeting of shareholders comply with the relevant provisions of the Company Law of the transactions and guaranteeing fairness of the Company’s affiliated transaction decisions to all shareholders.People's Republic of China the Articles of Association and the Rules of Procedure for the General Meeting of Shareholders.Investor relations management
About the Company and controlling shareholders
Attaching great importance to the investor relations the Company has formulated the Investor Relations Management System and
With the independent and complete main business and the ability to conduct self-management the Company is independent of controlling proactively conducted communications in time. The Company has sent relevant information to the capital market and the investors
shareholders in respect of personnel assets business institutions and finance and can independently operate and bear responsibilities through multiple channels including performance presentation investor research investor hotline investor email and SSE
and risks. The controlling shareholders of the Company exercise and assume their rights and obligations according to law. E-interaction to safeguard the investors’ right to know.30 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 31
Staying committed to business ethics
Marubi stays committed to creating a healthy and clean work
environment and forbidding all forms of corruptions and bribes. Marubi’s red lines for honesty:
To push forward the Company’s anti-corruption and integrity
work and build a long-term supervision mechanism that no one ● Obtain improper individual ● Disclose the Company’s
has the audacity opportunity or desire to become corrupt the interests by fabricating or secret
Company has set up the Supervision Management System concealing facts ● Obtain interests through
Visit and exchange of investors the Honesty and Self-discipline System and the Complaint ● Ask for bribes internal and external
collusion
and Reporting Management System defined the "red line ● Abuse power for personal gains
for honesty" reinforced honesty management on suppliers ● Use an official seal without ● Obstruct or hinder audit and
investigation
distributors and other partners and set up a commercial fraud authorization or through fraud
complaint and reporting channel and handling mechanism.Honesty management
The daily anti-corruption of the Company is conducted through the combination of audit
and supervision. Any fraudulent practice clue found during an audit should be handed
over to the supervisory personnel for investigation. The supervisory personnel also should
view and register the fraudulent practice clue in time. With both the audit and supervision
efforts the Company has steadily advanced the work on honesty risk prevention and
control. During the reporting period the Company proactively promoted anti-corruption
management organized and required the staff to execute the Honesty and Self-discipline
Commitment of Staff the suppliers and distributors to execute the Honest Cooperation
Agreement and the bidders to execute the Honesty and Self-discipline Commitment for
Bidders and publicized the Honesty Statement on the construction project site to promote Plaque of Enterprise Anti-fraud Alliance
the business ethics. Moreover the Company has joined the Enterprise Anti-fraud Alliance
Performance presentation Live broadcasting of Zhangle made full use of the blacklist information sharing system of the Alliance and strengthened
Fortune Path of Huatai Securities
talent review and supplier introduction to keep out dishonest persons and organizations
and reduce risks of frauds.Strengthening risk compliance Whistleblowing
The Company provides whistleblowing channels such as hotline email WeChat public account and letters and publicizes honesty
through OA WeChat public account and its official website to inspire its staff clients suppliers and partners to report corruption
The Company has set up the Audit Monitoring Department which comes under management of the Board of Directors. With three under the real name or anonymously. Moreover the Company has formulated the Complaint and Reporting Management System
functions in total which are internal control audit and supervision the Department provides an all-around supervision management stating rights of whistleblowers e.g. petitioning for recusal result inquiry request for protection and obtaining rewards.system to the Company’s business at all levels. The Company has built an effective risk and internal control management system in
accordance with relevant laws regulations and internal requirements such as the Audit and Supervision System the Supervision Channels for accepting reports are managed by specific personnel. The Company keeps the information of the whistleblowers
Management System and the Internal Audit System. The Company reviews its internal control procedures every year and evaluates strictly confidential and protects their legitimate rights and interests according to law.their effectiveness to improve its internal control system and internal management level on an ongoing basis. During the reporting Reporting channels: During the reporting
period the Company has updated 820 internal control items (including appendixes). period
In accordance with the principles of objectivity policy and prevention orientation the Company has independently conducted ● Reporting hotline (Tel): 020-66378666 (Ext) 385
audit and supervision on operations and internal control of itself and its subsidiaries covering internal control external control No violations of discipline
● Reporting hotline (Mobile): 18602010151
communications and all business chains. The Company has made rectifications in time for issues detected (if any) during audit to occurred
●
promote its business toward high-quality development. Reporting email: complaint@marubi.cn
● WeChat official account: Honest Marubi
To reinforce risk management the Company has convened the "Audit Rectification Solution Closing Meeting 2021" the "Audit Issue
● Address: Audit Monitoring Department 7/F South
Rectification Management System Training Meeting" and the "Internal Control Management System and Manual Update Training Tower Poly Granville Building No. 11 Xiancun
Meeting 2022". Heads persons in charge and internal control coordinators of each department 104 persons in total attended such Road Tianhe District Guangzhou
meetings. The training themed "Internal Control Knowledge Sharing" and "Unauthorized Access to Confidential Information Case
Sharing" has been launched on the online learning platform of Marubi Academy and 323 persons attended the training.32 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 33
Honesty education Keeping information secure proactively
The Company continues to promote honesty and self-discipline awareness through posters OA columns and articles to strengthen
the professional ethics of the staff improve their awareness of honesty and cultivate a cultural atmosphere that honesty is honorable By referring to the ISO 27001 Information Security System and the Cobit5 Information Security System Marubi has set up an information
and corruption is shameful. security management system that meets the Company’s development needs industrial supervision requirements and national laws and
regulations. The Company has formulated an overall three-year plan for information security built a security service system according
to the cybersecurity protection system 2.0 continuously improved information security management system strengthened security
Case: Honesty training on the International Anti-Corruption Day awareness and security incident handling capacity of informatization personnel and deployed relevant security products and third-party
security services. Besides the Company has initiatively promoted training on network data security and personal information protection
through emails and online training to improve the staff’s network security awareness. During the reporting period the Company has
The Company initiatively responded to the call of the Enterprise Anti-fraud Alliance and conducted honesty training. On December finished network security risk evaluation and vulnerability scanning. No information security accident has occurred.
8 the Company provided training to its management and key positions (such as salesmen purchase personnel and construction
personnel) from key departments 44 persons attending the training offline and online. Through the training relevant theoretical
knowledge about honesty culture laws regulations hazards of frauds and the Company’s requirements for honesty were
interpreted in details. With these efforts a clean workplace environment was built and the awareness towards the honest culture Exploring intelligent transformation
was raised which could encourage the Company’s employees to actively standardize their behaviors at work in future.Marubi stays committed to continuously exploring diversified digital paths and promoting digital-based construction. The Company
has officially launched its digital transformation in 2020. Through unremitting efforts for three years the Company has completed
the construction of digitization 1.0 in 2022. The Company has built a middle platform which covers data assets accumulation data
visualization and active data pre-warning and has achieved whole life cycle management including R&D procurement production
supply market and sales with 12 internal systems released and 46 types of external data connected.By opening up channels between demand schedule production and procurement and inventory the Company greatly improves
marketing and production teams collaboration and provides flexibility to its supply chain. During the reporting period the Company
has achieved 45-day delivery time for key products and greatly improved the planning accuracy minimizing the inventory to the
historically low level. Through promoting longitudinal analysis of the front-end business the Company effectively grasps industrial
trends market trends and category opportunities and implements precise operation in combination with the consumer portrait.During the reporting period the Company promoted structured channels and commodities perfected new product development
procedures upgraded product formula methodology and promoted building of cloud warehouse.The Company is going to commence the building of a three-year digital transformation 2.0 from 2023 to further strengthen
application and transformation of the middle platform in each business sector. The Company is also going to gather user assets
through collecting and applying data assets to boost the high-quality development of the Company. During the reporting period the
Company has completed grading of integration of informatization and industrialization.Offline venue of honesty training
Data assets Data visualization Proactive data pre-warning
Protecting intellectual property with 5.2 billion data lines 535 data analysis pages 12 automatic pre-warning frameworks
concerted effort
Marubi has established a scientific systematic and regulated intellectual property management system and formulated the 7.40 TB data size 17277 analysis indexes 187 pre-warning indexes
Intellectual Property Management Measures and the Intellectual Property Reward Measures to boost the sustainable development
of the Company. In addition to protecting its own intellectual property rights the Company also respects other’s intellectual property
rights. Before making use of trademarks and the like the Company will conduct a patent inquiry and buy the copyright avoiding
infringements upon other’s rights. The Company also provides training to cultivate the awareness of protecting trade secrets. As 2219 data sets 740 data sets 1101 pre-warning pushes
of the end of the reporting period the Company has obtained the Intellectual Property Management System Certification and
been awarded as the "National Intellectual Property Demonstration Enterprise" the "National Enterprises with Intellectual Property
Advantage" the "Enterprises with Intellectual Property Advantage in the Development Zone" and the "Intellectual Property 2216 data workflows 2216 data workflows
Demonstration Enterprise in the Development Zone".
2022 digital performance34 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 35
Case: Simplifying and optimizing packing material management by using data model
The business units lacked unified and systematic management measures and the degree of association between new
and former packing material data was low making it impossible to reasonably classify these materials. Moreover packing
materials of the same size were developed repeatedly resulting in excessive SKUs or even waste. This lowers the
efficiency of procurement and production scheduling and increases the costs.As the digital transformation advances the Company launches the packing material standardization project to supplement
and complete basic data for packing material management standardize design of development procedure set up business
rules and reduce SKU quantity.In this process the Company determines packing material specifications and dimensions to be optimized and aggregated
Patent analysis Product registration Product market
analysis and defines packing material SKU to be removed by applying data modeling and combining actual conditions of business analysis
production and procurement. 1300 packing materials SKUs are removed in total greatly saving energy reducing waste
R&D Planning Sales Supply lowering cost and empowering and increasing efficiency of supply chain turnover and management.Case: Cloud warehouse system
To coordinate management over channels and commodities maintain market orders and improve market efficiency
Product delivery analysis Retail performance Production/inventory the Company has comprehensively promoted the construction of the cloud warehouse in 2021 and officially launched
the same in 2022. At present the cloud warehouse system has covered inventories of the Company’s daily chemicals
The middle platform manages data during the product life cycle from R&D through procurement and department store distributors in China connecting the production end to the retail end and putting the distributors’
production supply marketing and sales commodities under centralized management. Through the global inventory management concept channels and inventories
are shared scheduling and precise control are made under centralized management resource consumption is reduced
and efficiency is improved. In the future the cloud warehouse system will increasingly cover inventories of beauty salons
and e-commerce channels achieving commodity sharing and all-channel coverage.In the meantime the Company has established cooperation with the frontline logistics suppliers achieving the average
3-day transportation for the trunk line of the cloud warehouse T+2 service time for 80% delivery orders and direct
distribution to terminal stores from the cloud warehouse optimizing commodity validity period management and greatly
improving transportation efficiency.Packing material - Total Raw material - Total Scattering and radiation - Cream - Total inventory Packing material - Raw material - Stock Scattering and radiation- Cream - Stock in
inventory amount inventory amount Total inventory amount amount Stock in total in total Stock in total total
Inventory decreased to historically low level through digital management36 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 37
Environment
protection 02
responsibility:
Green and
low carbon
Marubi stays committed to building a green enterprise featuring
"cleanness high efficiency low carbon and recycling" and aims to
realize the sustainable and green growth. The Company regards energy
conservation consumption reduction and low carbon as its important
tasks for long-term growth. The Company has set up a well-established
environment management system executed lean production actively
developed and applied green technologies and continued to implement
energy natural resources and emission management to promote green
development of the Company.Our actions:
● Adhere to energy conservation technical transformation cost reduction
and efficiency increase
● Carry out clean production and set an example on green manufacturing
● Advocate green operation and build an environmentally-friendly
ecology38 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 39
Driving forward environment- Project Content Achievement
friendly construction
● Electricity is the main source of ● The installed capacity of the project
Marubi always follows the "four basic principles" to boost energy conservation energy for the Company. According is 660.06 kW. During the reporting
emission reduction consumption reduction and efficiency improvement in production to evaluation the Company boasts period the generating capacity
2
and operation through concept innovation technological innovation and process a roof space of about 7400 m for of the project was 655185 kWh
innovation. The Company has formulated the Management Manual of Quality Environmental investment photovoltaic power generation. which effectively reduces electricity
Rooftop distributed photovoltaic
Environment and Occupational Health and Safety to build a resource-conserving and Through the photovoltaic power consumption and indirect emission
environment-friendly society. As of the end of the reporting period the Company has 3.0007 power generation renovation generation renovation project the of carbon dioxide and reduces RMB million Company saves its investment in emission of carbon dioxide by 373.65 t
obtained the ISO 14001 Certification for Environmental Management Systems and project
electricity. every year.Clean Production Certification and also been awarded as the Guangzhou Green
Factory. The Security Department of the Company is responsible for checking and
supervising the environmental protection management and effectively implementing the
environmentally-friendly energy-saving and emission-reduction concepts and measures.● As the central air conditioners of the ● After renovation the automatic
No violations of environmental discipline occurred during the reporting period. Company adopt the traditional air closed loop control system is used
Before commencing new projects and reconstruction projects the Company will take conditioning mode all of units start and equipment is updated which
into account the impacts on the environment prepare an environment impact report in running after the air conditioner is saves electr ici ty stabi l izes the Energy conservation and
strict accordance with laws and regulations and propose scientific and reliable control powered on regardless of the indoor system and extends the service renovation project of inverter and outdoor temperature. This leads time of the equipment. As a result
plans and specific countermeasures for pollution sources generated during production
to energy waste and increased 255091.9 kWh of electricity is saved
to minimize the adverse environmental impacts. central air conditioner electricity consumption and cost. every year.Marubi's four basic environmentally-
friendly principles
● Change the sterilization mode of ● To improve efficiency and save water
Low energy consumption Low production some glass bottle packing materials and electricity. During the reporting
in product use resource demands from cleaning and drying to ozone. period 1376.70 m3 of water and
Sack filling optimizing project 39323.28 kWh of electricity were
saved.Harmfulless raw materials Low recycling cost
Energy conservation and technical
transformation project
Conserving energy and reducing
consumption for clean production Case: Renovation of AHU circulating system in purification system
Marubi practices green development concepts regards energy conservation
consumption reduction and low carbon as key tasks for the growth of the Company in To improve the disinfection effect in former clean production workshops ozone is used for disinfection during the non-production
the long run and adheres to green production and lean production by conducting all- time. After disinfection the deposited ozone needs to be diluted by circularly running the AHU of the purification system of the
around actions with respect to energy pollutant prevention and control and resource central air conditioner. The original system needs to be turned on by hands and the original constant-temperature and constant-
management to create a more sustainable future. humidity system needs to run for 24 H. After updating the control program of the constant-temperature and constant-humidity
system the Company implements interlock control of the ozonizer and the constant-temperature and constant-humidity system.Energy management With the design of independent control the ozonizer and the AHU can be started and shut down at fixed time respectively. After setting the system the sterilization and distinction function can be automatically started after work and automatically shut down after
The Company aims to reduce energy consumption and improve efficiency of energy reaching the specified time. The AHU can be automatically started before work to activate the production mode in the clean area.use through technical transformation. In the meantime the Company uses clean After renovation the running time is reduced the new system can save up to 60581 kWh of electricity consumed by the fan every
energy to conserve energy and reduce carbon emission. As of the end of the reporting month and up to 1185.92 kWh of electricity consumed by the ozonizer every month the operating environment is improved for the
period the Company has implemented the following energy conservation and technical staff the equipment loss is reduced and the equipment service life is extended.transformation projects which have positive and continuous environmental benefits:40 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 41
Case: Installation of energy- Waste management saving lighting fixture
Energy type Consumption in 2022 The Company’s waste solid is mainly divided into four types by nature including the
recyclable waste the non-recyclable waste the hazardous waste and the household During the reporting The Company ad jus ts the commodi ty s to rage and
management method by dividing the storage area on the waste. The responsibilities of each department related to waste management
period
4th and 5th floor of the warehouse into a non-operation and management procedures are clearly defined according to the Waste Control Purchased
area for storage and a manual commodity distribution 4707000 Procedures in which collection and disposal requirements for each waste type are
Hazardous waste
electricity
area. The non-operation area is unlit and the manual kWh stipulated. The hazardous waste is stored in a hazardous waste storage room in the
generated
commodity distribution area is lit by energy-saving lamps. factory and is disposed of by a qualified hazardous waste disposal organization.While ensuring the adequate light in the operation area 342 Besides the Company actively drives forward recycle and reuse of the waste and 1.52 t
unnecessary lamps are removed saving the 19206 kWh of promotes development of recycling economy. For example the sludge in the sewage
electricity every year.Photovoltaic station of the factory is recycled by a third-party organization and then is made into
power 655185 the new wall material through sintering; the Company uses recyclable cartons and
Transfer and disposal
generation in kWh containers in the workshop. During the reporting period 51 t sludge waste generated
the park from the sewage station of the factory was 100% recycled. 100 %
Making processed
Natural 228071 sludge into gas m3 environmentally-
friendly bricks
Installing energy-saving lamps in manual commodity distribution area Energy consumption
Pollution prevention and control Reducing cost and increasing efficiency to
Marubi commits to observing relevant laws and regulations on pollutant emission management by classifying and treating pollutants
in strict accordance with standards. By continuously improving the management on waste water waste gas and waste solid conserve natural resources
conducting daily monitoring and regular third-party monitoring and actively conducting process renovation equipment update
and waste recycling the Company reduces waste emissions and achieves goals of "energy conservation consumption reduction Marubi keeps an eye on the use of natural resources and commits to improving utilization of production resources. The Company practices
pollution reduction and efficiency increase". As of the end of the reporting period all environmental protection projects constructed lean management continues to improve processes during production and makes rational use of resources to improve resource utilization.and implemented by the Company have been stably operated.Waste gas management Water resources
By introducing advanced equipment and strengthening waste gas emission management waste gas discharged from the production The Company’s water consumption mainly includes the water for raw material washing water and cleaning water used in the
of the Company is reduced lessening impacts on the environment. The waste gas generated during daily operation is small in research development and production process. The water is from the municipal water utility. The Company actively carries out
amount so the Company adopts the waste gas and dust removal and treatment system as well as other pollutant prevention and water-saving projects and adopts flexible production to reduce water required for raw materials and improve the comprehensive
control measures to ensure that the waste gas emission complies with provisions. utilization efficiency of water resources.Waste water management Case: Emulsification process optimization and renovation project
The Company applies strict control classified management
and standard discharge of waste water. The Company has During the reporting period The emulsification process is the main production process of
formulated the Sewage Station Operation Instructions and the Company which has direct impacts on product quality
the Sewage Station Operation System and implemented 6S
management to regulate and guide the operation processes Production waste water Waste water emission
production water and energy consumption. The Company
intensity renovates the spray and cleaning devices of the boiler unit of the main unit tank of the sewage station and the sludge and adds a cooling system to improve the cleaning effect and
cultivation. Meanwhile the Company continued to improve 11125 t 0.06 reduce the cleaning of the boiler unit. Through the project 385 operation management of the sewage station. With these t/ t water is saved and product turnover and raw material waste Cleaning unitefforts the waste water can be discharged externally only after are reduced with about 5.12 t raw material saved.being treated by the sewage station and reaching the emission RMB10000 revenue.standard. The Company uses the front-end physico-chemical
and back-end biochemical methods to treat the waste water
significantly reducing the discharge of each type of waste water.42 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 43
During the reporting period Promoting low-carbon development philosophy
Production water consumption Water consumption intensity Marubi actively responds to the national energy conservation and emission reduction policy advocates green and healthy concepts
57190 0.33 and smart life and passes on the ideals of energy conservation and environment protection.t t/RMB10000 revenue.
Green office
To minimize carbon emission and impacts
on the environment the Company’s
Resource usage headquarters building under construction
Green office measures:
is designed according to the three-star
green building standard and the concept ● Use LED energy-saving lighting equipment
The Company treats production resources as the key environmental impact factor for the operation. The Company commits to of sponge city. The Company also ● Promote paperless office
reducing use of materials integrating the green and environment protection concept in the product design stage and phasing in the promotes green office encouraging its
low-carbon and environmentally-friendly materials. The Company takes into account recycling or exhibition value of a gift package at ● Provide the small-volume bottled water to guests and inspire staff to build a green workplace by starting
the time of design. During the reporting period the Company has taken measures below: the staff to use their own water cups to reduce the use of with small steps from themselves. disposable paper cups
● Recycle used batteries
Project Effect ● Set up a garbage classification leadership team formulate
garbage classification solution and management system
and put domestic garbage classification into place
● Environment protection tips and training
Add the microbiological detection method to screen
and verify feasible alcohol in advance and reduce the Reduce use of alcohol while ensuring the effect
disinfection of alcohol passing through the equipment
Optimize the production schedule to control the
Gradually reduce the cream loss rate
production process
Reduce the packing material purchase cost and Case: Event of "Garbage Sorting for a Better Home"
Cancel BOPP bag use on products
improve the production line environment
Use the buckle type packing box to pack the product Reduce consumption of packing tape The Company actively responds to the household garbage sorting work in Guangzhou through the following measures: driving
forward the orderly garbage sorting equipping garbage sorting and collection bins promoting the fixed-point garbage storage mode
Use the zipper type paper box as the packing box Reduce the tape consumption giving education and training on garbage sorting and guiding the staff in garbage classification and disposal.Simplify the sample product packing mode and remove Save packing material purchase cost and improve
the zip lock bag production efficiency
Lean production improvement solution
Before After
Garbage sorting training Garbage sorting bulletin board
Simplifying sample product packing Use of zipper case to reduce tape44 Guangdong Marubi Biotechnology Co. Ltd. 03 Environmental Social and Governance (ESG) Report 2022 45Social responsibility:
Continued
growth
Marubi sticks to the strategies of "customer first excellent products
exploitation of market advantages and precise operation" and commits
to responding to concerns and expectations of the staff suppliers and
customers. The Company attaches importance to R&D strictly controls
quality and pursues quality products to win customers’ trust. According to
the "human-oriented" principle the Company cares about its employees
and creates a systematic career development system providing a good
environment for employees’ growth. The Company cares about the society
takes actions with love and actively devotes itself to public welfare.Our actions:
● Deeply engaged in R&D to empower the industry with green biological
technology
● Continue to improve the quality management system to provide quality
products
● Provide professional service and perfect solutions to create a pleasant
consumption environment and user experience
● Safeguard the health rights and interests for the staff to pursue mutual
growth
● Establish strategic partnership with suppliers for win-win cooperation
● Boost community co-construction harmony and goodness46 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 47
Pursuing innovation through unremitting
R&D efforts
As the cosmetics market increasingly stresses the product
open innovative scientific
R&D effect and the brand stresses the quality itself the innovation truth-seeking green leading
concepts: ability as the core competitiveness becomes the cornerstone Areas of experts: Research directions:independent and high-tech for development and the engine for continuous breakthrough of
oriented the Company. In the last two decades Marubi has adhered to its ● Dermatology biochemistry bioscience ● Biology chemistry oralogy food medicine
original intentions focused on anti-aging effects deeply engaged materials science cytobiology molecular material etc.in research on beauty and health and embraced innovations biology organic chemistry fine chemical
with professional attitude devotions and concentrations. engineering pharmacy oral medicine food
science etc.R&D innovation
In terms of R&D management the Company continues to promote innovation and advance the project management system. By setting
complete clear demonstrated and evaluated project cycles divisions of work and goals the Company can learn the progress and
issues of the current project in time make correct decisions and make a summary of lessons learned during performing each project Product R&D Department
to provide reference to subsequent projects and continuously accrue organizational process assets for the department.R&D team
Tokyo Frontier Center Guangzhou R&D Center Shanghai Innovation
The Marubi R&D Center has a high-quality talent team systematic talent training system and an open and innovative research Center
platform. The Company has 93 R&D technicians 30% of which hold the master’s degree or above. The Company has set up
35 experimental platforms fully building a complete link of R&D modules covering "raw material development - raw material
production - formula development - evaluation and testing - intellectual property protection - launch of products onto the market -
Fundamental Technical Medical Testing Pilot Experiment Open Innovation Application
technical support - open innovation" in the cosmetic technique field. This provides a strong support to the closed-loop research and Research Center Support Center Center Center Center Development Center
transformation of core raw materials and technologies of the Company in the future.During the reporting period
"Elderly expert" from the International Experts registered in Guangzhou Qquality experts from the cosmetics
High-end Talent and Hong Kong Macao Science & Technology Expert Database field of Huangpu District as well
and Taiwan High-end Talent Exchange as Economic and Technological
Project of Guangdong 2 Development District Guangzhou1 7
Practice tutor of master candidates of Beijing Senior engineer of light industry Engineer of light industry engineering
Technology and Business University engineering
111
Assistant engineers of light industry
engineering
5 R&D platform
Efficacy Research Team 3 laboratories
Primary Care Team 3 laboratories
Formula System Team 3 laboratories
Open Innovation Team
Innovation & Research Team 2 laboratories
HR & Administration Team
Pilot Cosmetics Team 3 laboratories
Material Planning Team
Technical Service Team
Active Raw Material Team 3 laboratories
Quality Management Team
Efficacy Evaluation Team 3 laboratories
Analysis and Testing Team 3 laboratories
Technology Promotion Team
Regulation Management Team 2 laboratories
Intellectual Property Team
Health Product Team 3 laboratories
Active Material Team 3 laboratories
Skin Science Team 4 laboratories48 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 49
Guangzhou Marumed Research Co. Ltd. R&D incentive
To encourage R&D innovation the Company builds an innovative R&D mode to reward the employees who made inventions
published articles on a journal or filed individual patents. Through the multi-dimensional incentive system the Company motivates
The R&D Center of the Company has set up a cosmetic testing and evaluation laboratory in 2016 and in 2021 Guangzhou independent innovations of its employees and improves the overall R&D level.Marumed Research Co. Ltd was officially established. During the reporting period Marumed Research has obtained CMA
qualification from the national testing organization and has been approved to conduct registration and testing about cosmetic safety Besides the Company actively promotes "building power of product with techniques". During the reporting period the Company has
and stability as well as efficacy testing about soothing repairing anti-wrinkle anti-oxidation and suitability for sensitive skin. organized innovation and research exchanges across departments such as "Product and R&D Co-creation Exchange" and "R&D
Salon" greatly promoting deep integration between techniques and products and making the Company’s product development aligned
with the techniques and markets. Through these activities the Company has developed lots of quality products among which the
Marumed "Marubi Recombinant Collagen Cream" has been released to the market. This product innovatively breaks the boundary between "oil"
Research and "cream" providing the effects of moisturizing and repairing for skin.R&D salon
BIOST Pharmaceuticals (Guangzhou) Co. Ltd.In 2021 the Company established BIOST Pharmaceuticals (Guangzhou) Co. Ltd. aiming to realize production of self-developed
raw materials and to boost application of new biological materials in cosmetics food and other beauty and health fields. During the
reporting period the Company has obtained the cosmetic production license and implemented mass production of self-developed
raw material SPG in the BIOST factory.BIOST
Pharmaceuticals
Product co-creation exchange Marubi Recombinant Collagen Cream50 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 51
R&D
Case: Design and preparation of optimized protein raw material based on the achievements functionally active protein research platform
Marubi has deployed a "functionally active protein research platform". Through independent R&D industry-university-research
technical cooperation and other modes with genetic engineering technology as well as big data on structural biology and
● By the end of the reporting period the Company has bioinformatics the Company has designed and prepared humanized ECM functionally active proteins or high-value animal and
obtained 214 issued patents in total including vegetable proteins including recombinant collagen. Through technological upgrading the Company has also enhanced the
136 3 technological contents in raw materials and products effectively reduced the cost of raw materials comprehensively improved the patents for inventions. patents for skin care activity of its products while reducing the use of harmful chemical reagents. These efforts are conducive to building an
inventions have obtained the China Patent Award - environment-friendly society and realizing healthy and sustainable development.R&D investment Excellence Award and 1 patent has obtained the
Patent Award of Guangdong Province.RMB52.93 ● During the reporting period the Company has
million had 77 new patent applications and 69 new
authorizations. Marubi laboratory
● During the reporting period the
Company has led and participated
in drawing up 16 standards
● By the end of the reporting period the Company’s research including 1 industrial standard and
achievements in fields such as genetic engineering stem cell and 15 group standards. The Company
regenerative medicine natural phytochemistry biological fermentation has also actively participated in the
engineering and high polymer materials have been published on compilation of the Blue Book of the
domestic and overseas academic journals with nearly 30 academic Cosmetics Industry with the Social
papers 8 of which are published on the SCI. The total impact factor of Sciences Academic Press.these papers for SCI journals is nearly 50 (specifically 47.162) with
a value of 6 (specifically 5.895) each.● During the reporting period the Company has published 9 academic
papers including the High-voltage Pulse-assisted Extraction of Standard type Standard name
Flavonoids from Kapok Using Deep Eutectic Solvent Aqueous Solutions.This paper based on the CelCaper directional cryogenic extraction Group standard Leontopodium Alpinum Extract (Leontopodium Alpinum Group Standard)
technology was published on the RSC Advances the journal of the Group standard Determination of Anti-Allergy in Cosmetics – Zebrafish Embryo Method
Royal Society of Chemistry with an impact factor of 3.789 in 2022. The
Group standard Sapindus Mukorossi Extract
Company also published A Novel Delivery Vehicle for Copper Peptides
on the New Journal of Chemistry (NJC) the authoritative academic Group standard Human Body Test Method for Moisturizing and Oil-Controlling Efficacy of Cleansers
journal of the Royal Society of Chemistry with an impact factor of 3.925.Group standard Evaluation of Antioxidant Activity in Cosmetics – Caenorhabditis Elegans Assay
Group standard Cosmetic Raw Materials - Prinsepia Utilis Rogle Oil
Group standard Cosmetic Raw Materials - Recombinant Soluble Collagen
Group standard Skin Anti-aging Ingredients
Compilation of standards led by the Company during the reporting period52 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 53
Connect & Development Case: Marubi establishes a "graduate collaborative training base" with Jinan University
The Company has a mature "open innovation" system which is not limited within the boundaries of the Company. With "Connect and
Development" the Company aims to achieve both "independent R&D" and "joint R&D". By breaking the organizational and industrial The Company makes great efforts in talent cultivation with
boundaries the Company continuously collects evaluates and integrates advanced technical resources that can be applied to R&D Jinan University. During the reporting period the Company has
and products from external research institutions and establishes its institution library technology library and expert library based on established a full-time professional degree graduate collaborative
the chain of "university-research-medicine-inspection" forms an open innovation platform based on multiple subjects multiple fields training base with Jinan University to cultivate graduates integrate
and multiple dimensions and realizes the collision of interdisciplines and breakthrough. education with technology research and development and
industrial development accelerate the transformation of high-tech
As of the end of the reporting period the Company has established a global open partner system covering more than 29 domestic and scientific research achievements and cultivate innovative
and foreign universities well-known 3A hospitals scientific research institutes and other institutions and introduced 88 university talents with practical skills. The Company signs an agreement with
talents to work as interns at the R&D department and cooperated with over one hundred leading experts from more than 10 fields the College of Life Science and Technology Jinan University to
such as biology genetic engineering dermatology pharmacology phytochemistry material chemistry and testing. These experts jointly build a practice and training base outside college for college
students. Since 2017 Jinan University has regularly arranged
boast a wide range of expertise with the transformable technological achievements up to 196.students to undertake an internship at the Company's 5C factory
every year. As of the end of the reporting period 221 students Jinan University graduate training base inauguration ceremony
from Jinan University have worked at Marubi as interns.Some partners of the Company
Development with the industry
The Company actively participates in industry activities and exerts own advantages to promote the development of the cosmetics industry.Case: Cosmetics in South China go to the world - 2022 Beauty Huangpu Conference
As one of the representative companies
in the cosmetics industry in Huangpu
District the Company actively supports
the development of the cosmetics industry
in Huangpu District and participates in
the customization of "the first industry co-
brand star product - Beauty Huangpu
Cooperation projects: gift box" in Huangpu District to promote
the brand power and product power of
cosmetics companies and tell the story of
● Establish a "full-time professional degree graduate collaborative Establish an integrated collaborative platform of "industry- the cosmetics industry in Huangpu District. Beauty Huangpu Conference●
training base" with Jinan University university-medicine-research-inspection" for recombinant collagen
● Cooperate with South China University of Technology Harbin to promote the transformation of scientific research results
Institute of Technology (Shenzhen) Guangdong University of ● Strengthen cooperation on scientific research projects with 8 Newly joined industrial associations by
Technology and other universities on raw material research universities research institutes and hospitals such as Westlake the Company during the reporting period
and development and industrial application University Beijing Technology and Business University
● Reach a comprehensive strategic partnership with Guangzhou Guangdong-Hong Kong-Macao Greater Bay Area National ● Director unit of China Biotech Fermentation Industry ● Supervisory unit of Guangzhou Association for the
Quality Supervision and Testing Institute and international Nanotechnology Innovation Institute Guangdong-Hong Kong- Association Promotion of Technologically Advanced Small and Medium-
suppliers such as Lubrizol DSM Symrise Ashland and Macao Greater Bay Area Huangpu Institute of Materials
● Director unit of China Anti-aging Promoting Association sized Enterprises
United Laboratories ● Introduce 8 experts from universities research institutes and
● Member unit of China Health Care Association ● Member unit of Guangzhou Industrial Design Association
● Cooperate with international scientific research and testing hospitals to serve as academic leaders of new laboratories ● Specially engaged director unit of Guangdong Science
institutions such as Bureau Veritas (New York Laboratory) such as Synthetic Biology Laboratory Advanced Biointelligent
● Vice-chairman unit of Guangdong Medical Products
Administration Society and Technology
Laboratoire Dermscan Souken on product safety testing Manufacturing Laboratory and Microfluidic Technology ● Director unit of Detergent & Cosmetics
Laboratory and carry out scientific research work ● Member unit of Guangdong Cosmetic Quality
Management Association54 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 55
Chemical safety Adopting natural ingredients Keeping improving the product quality
The Company strictly abides by the Safety and Technical Standards for To cater to consumers’ needs for purity safety and technological
Cosmetics and other laws and regulations standardizes the selection of efficacy the Company provides a wide range of products for consumers Guided by the policy of "quality-first integrity-based leading the market and keeping improving" the Company strictly complies with Quality
chemical ingredients bans the use of prohibited ingredients and gradually to choose from. Natural ingredients are preferably selected over Management Standards for Cosmetics Production and other relevant laws and regulations and has established a quality management system
eliminates controversial ingredients through formula upgrading aiming synthetic ingredients according to ISO 16128-1/2 and raw materials through the entire life cycle of the product covering product development supplier selection material acceptance production sales management
to continuously improve the chemical safety of its products. During the must be organically certified by a qualified third party (such as COSMOS and product recall. The Company has passed the certification of ISO 22716 Good Manufacturing Practices for Cosmetics (GMP) the ISO 9001 Quality
reporting period the Company has examined all preservatives used in or ECOCERT). As of the end of the reporting period a total of 66 raw Management System and Intertek’s Good Manufacturing Practice Guidelines for Cosmetics. The Company regularly holds quality management
cosmetics. Based on the needs of the Company and by searching literature materials certified by COSMOS or ECOCERT have been used by the meetings checks the quality management system evaluates suppliers and checks the achievement of internal quality goal to ensure the effectiveness
and patents and cooperating with other companies in the industry Company. of the quality management system.the Company verified and tested more than 20 kinds of preservative
combinations to screen out controversial preservatives. New preservative The Company keeps the product quality under strict control. The production area includes the filling workshop ingredient workshop and emulsification
systems are preliminarily established including green preservative system workshop with a cleanliness degree up to level D according to GB 50457-2019 Code for Design of Pharmaceutical Industry Clean Room. In this
preservative free system and plant preservative system. way raw material preparation cream emulsification cream storage and product filling are carried out in a cleaner environment. For each product the
Company will conduct stability safety and other tests to ensure its quality. For a new product to be launched on the market the Company will conduct
Animal welfare authoritative and professional efficacy tests for different effects including "firming" "soothing" "anti-wrinkle" "whitening" and "suitable for sensitive
skin".The Company treats experimental animals friendly in accordance with the 3Rs (replacement reduction and refinement of experimental animals). Under the
same conditions the Company prioritizes alternative testing methods. For example the Company has introduced chorioallantoic membrane (CAM) experiment Chinese industry standard Marubi standard
caenorhabditis elegans assay zebrafish embryo method and cell model for safety and efficacy testing. These efforts can help reduce animal experiments.Heat-resistant 40°C with no abnormality after 24 hours 45°C with no abnormality after 24 hours
Case: CAM experiment
Cold-resistant -8°C with no abnormality after 24 hours -18°C with no abnormality after 24 hours
CAM experiment is an alternative method for eye stimulation. Due to
the complete clear and transparent characteristics of the CAM blood 2000 r/min with no stratification at room 3000 r/min with no stratification at 38℃ for
vessel system of the inoculated chicken embryo in the middle stage the Centrifugation (emulsion) temperature for 30 minutes 30 minutes
experiment directly applies a certain amount of the test substance onto
the CAM. After a period of time observe the changes of toxicity effect
indicators (such as bleeding cruor and melting in blood vessel). Give a Bacterial amount (cfu/g) ≤ 1000 < 50
score according to the different forms of cosmetics to evaluate the eye
stimulation that the test substance causes. During the reporting period
Total mold and yeast (cfu/g) ≤ 100 < 10
the Company has carried out CAM experiments for cosmetics and raw
materials for many times and conducted comparative analysis by using
other safety assessment methods to open up new ideas in product
Example of an embryo before and after contact with a certain raw material.safety assessment. Bleeding points appear which proves that the raw material is irritating The Company has formulated the Quality Complaint Management System. After receiving a product quality complaint the Company will follow up on
and deal with the complaint in a timely manner issue a Corrective and Preventive Measures Sheet and formulate and implement corrective measures
based on the investigation results. The Company has actively promoted the improvement of product quality organized quality training sessions for
more than 20 times and taken special actions such as on-site inspection and quality punishment for suppliers during the reporting period to improve
product quality.Case: Caenorhabditis elegans assay
In 2022
Caenorhabditis elegans is a model organism in anti-aging research
because of its fast reproduction easy cultivation and operation high
experimental stability and expansibility 60-80% of homology with human Qualification rate of cream Qualification rate of finished products
genes and no ethical issues in animal experiments. In view of the short
life cycle of caenorhabditis elegans easy cultivation and clear genome
sequence the lifespan of caenorhabditis elegans has become the core Comparison 99.6 % 99.9 %
indicator in anti-aging research. The Company uses caenorhabditis Recombinant collagen ****(p < 0.0001)
elegans in the safety and antioxidant test of cosmetics and raw
materials and checks the impact of the test sample on the life cycle of
caenorhabditis elegans to evaluate the anti-aging efficacy of the sample. Taking the data of Marubi's recombinant collagen as an example the rightward
shift of the caenorhabditis elegans survival curve reflects its anti-aging effect.56 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 57
Case: Strict control to extend product shelf life Upgrading of Multiple
Case: Peptide Anti-Wrinkle Eye Case: Delivery within 12 hours
Cream (Small Red Pen) during Double 11
The Company has taken strict measures to control microorganism and inspect raw materials which helps extend the shelf life of products.Marubi Multiple Peptide Anti-wrinkle Eye Cream is a two-in-one product During the reporting period the Company has taken measures to
which integrates eye cream and massager and equipped with batteries improve logistics efficiency such as the construction of cloud warehouse
Raw material selection Microbiological test Production process to ensure its high-frequency vibration. The original generation of Marubi optimization of the express delivery sheet review system and for raw materials Multiple Peptide Anti-wrinkle Eye Cream is designed with one battery. strengthening of the commodity inventory information synchronization.To meet consumers’ needs the second generation is designed with Therefore delivery within 24 hours throughout the year could be
Formulate standard raw material To reduce the risks of contamination Carry out the strictest microbial two batteries and improved efficacy which can increase the product’s possible. During Double 11 the Company adopted methods such ● ● ●
battery life and improve customer experience. as pre-packaging to improve delivery timeliness achieving 12-hour
introduction systems and implement caused by microbial reproduction control measures with ultraviolet delivery. The total number of orders was about 1.7 million of which the
str ict onboarding standards to no microbe shall be detected in the rays high temperature ozone and largest number of orders within one day was 200000.ensure that the raw materials used incoming raw materials. bactericide depending on time and
are of top quality in the industry and places and taking into account all
to find vendors supplying stable bulk dimensions ranging from human
volumes with minimum impurities Microbial contamination control from all equipment material regulation to
and the highest purity. links of production environment.Case: Transformation of purified water unit
Water resources are very important for cosmetic production. Due to the impact of the
environment and treatment process water may contain impurities and cannot be used
directly. In order to prepare water that meets the standards the Company has carried Multiple Peptide Anti-wrinkle The 2nd generation of Multiple Commodity packaging
out purified water treatment to control product quality. During the reporting period in Eye Cream user guide Peptide Anti-wrinkle Eye Cream
order to continuously improve the water quality for production and product quality the
Company has installed a first-level water pump at the outlet of the first-level water
storage tank added four RO membranes replaced the PLC automatic control system
and installed 304 stainless steel pipelines. In addition the Company has purchased Chitu "Star Customer
equipment to optimize the treatment process between the water tank and the water Service" evaluation criteria During the reporting
outlets. These efforts help reduce the rate of defective products and the amount of After period
waste disposal during production with both economic and environmental benefits.The Chitu "Star Customer Service" award is granted to 555 vendors from a
total of over 100000 e-commerce merchants registered on Chitu based on The Company won the honor of
the evaluation of various indexes of the before-sales customer service teams. Tmall Gold Medal Customer Service
Improving service with the customer- Winners are honored as the "Excellent Customer Service Team of the Year". The
and Chitu "Star Customer Service"
evaluation activity is based on the overall assessment of the customer service and Marubi official flagship store on
Tmall scored
teams in the same category and at the same level including the transformation
oriented philosophy rate of inquiries customer service satisfaction average response time Ali Want reply rate question-to-answer ratio as well as reception number and customer
service sales. 4.8
With the philosophy of "service first sales second" Marubi has established an efficient and diversified service feedback mechanism
and is committed to providing customers with high-quality service. Compared with 2021 the annual
sat isfact ion survey result has
Customer service achieved a significant improvement
with a year-on-year increase of
Marubi has formulated a set of standardized customer service procedures and has opened multiple communication channels including
400 national customer service hotline official WeChat account and official online mall customer service to ensure a timely response %
to customers. The Company has built a consultant customer service system to serve specific customer groups on each platform and 17.49
Marubi official
provided personalized services by distinguishing the portraits of the groups. The Company has also conducted customer service training flagship store
each month and formulated a sound incentive system to continuously improve employees’ professional and service capabilities. on Tmall scored Complaint settlement rate
4.8 and overall
Based on the customer feedback the Company regularly collects after-sales problems and customer evaluations and then experience for users is 5 stars
communicates product-related problems to relevant departments of the Company for product optimization. At the same time the 100 %
Company conducts in-depth product training for customer service staff in order to optimize the relevant process to improve customer
experience.58 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 59
Responsible marketing
The Company highly values the interaction and communication with consumers and carries out responsible marketing activities. The Company advocates rational consumption and scientific skin care provides high-quality products professional services
The Company attaches great importance to the authenticity and accuracy of product marketing and reviews the advertisements in and beauty solutions for consumers. In addition the Company is committed to creating a comfortable and pleasant consumption
accordance with the requirements of laws and regulations. If new laws and regulations are introduced the key points of these laws environment for customers through high-quality products professional interpretations considerate services and varied activities.and regulations will be summarized in written documents and be distributed to relevant departments of the Company for learning. At The Company introduces product functions and product tutorials through customer service on e-commerce platforms introduction
the same time the Company actively provides training on cosmetics laws and regulations as well as compliance to all employees at by hosts guide cards in packages public accounts and short videos. Offline salons and private sessions are held mainly to share
relevant departments dealers and stores. skin care skills skin first aid skills and promote new products. In addition the Company also attaches great importance to the
development of the industry actively empowers downstream partners in the industry and conducts trainings for dealers and stores
covering product introduction sales skills skin care skills etc.During the reporting period
Offline salons and private sessions held
12012
Covering members
329092
Key points of Live E-commerce Compliance Guidelines Training on Quality Management Standards for Cosmetics
summarized by the Company Production
Restaurant bar salon
Skin care salon
Training of laws and regulations Emails relating to new laws and regulations Marubi's big shot popularizes
products in live studio60 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 61
Building a harmonious workplace with the By gender By age By employee’s position
people-oriented philosophy
33.77%2.36%26.60%
Marubi adheres to the "people-oriented" philosophy and is committed to providing strong backup for its employees helping tap the 22.17%
potentials of employees and helping employee grow and succeed.
4.15%
6.98%
Gender equality and diversity in employment 41.32% 56.32%
66.23%40.09%
The Company strictly abides by the Labor Law of the People's Republic of China the Labor Contract Law of the People's Republic
of China and the Social Insurance Law of the People's Republic of China and other laws and regulations. It has formulated
the Employee Handbook and concluded labor contracts in accordance with the law aiming to continuously improve employee Male Female Over 50 years old 30 - 50 years old Production staff Technical staff
management and protect legitimate rights and interests of its employees. The Company adheres to the principle of open recruitment
fair competition and merit-based employment insists on gender equality in employment and prohibits any form of employment Under 30 years old Sales staff Finance staff
discrimination. Forced labor and child labor are prohibited. The Company always advocates and adheres to gender equality Administrative
employment diversity and other philosophies and strives to create a fair respectful and diverse working environment. personnel
During the reporting period Case: Enterprise-university cooperation to cultivate practical talents
The Company has employees from ethnic minorities employees with disabilities foreign employees
With a focus on industry growth the Company continuously
1060 43 4 3 cooperates with universities and has become the practice and training base for Jinan University Chongqing University of Technology and Guangdong Pharmaceutical University
employees etc. During the reporting period the Company has conducted
the enterprise-university cooperation project with Guangdong
Industry of Polytechnic to train practical students and help
middle management female employees accounting for them finish the internship. During the one-year internship
project the Company has provided the interns with the
186 125 67.20 opportunity of work shift among multiple posts including semi-% finished product production product quality control cosmetics
R&D and volunteer evaluation. Through this project the interns
can learn more about cosmetics besides the basic operation Enterprise-university cooperation
while the Company can expand the talent pool of the industry.senior management female employees accounting for
21 8 38.10% Employees’ rights and interests
To safeguard the employees’ rights and benefits and to create a standard talent management system Marubi has formulated
relevant management provisions such as the Performance Management System of Marubi the Salary Management System of
Proportion of local employment Marubi and the Benefits Management System of Marubi to improve the salary system and the democracy mechanism so as to
create a fair and harmonious working environment.
20.85% Remuneration and talent motivation
The Company provides competitive remuneration including the fixed base salary achievement incentive subsidy and welfare. With the
multi-channel remuneration system the Company attracts retains and motivates talents inspires the employees’ initiatives to share
interests and shoulder risks improves the Company’s competitiveness and achieves the goals of the overall development strategy.The employees’ remuneration follows basic rules of fairness competitiveness motivation acceptability adaptability and legality and
adheres to the principle of equal pay for equal work. In addition to being compliant with local provisions and being higher than the local
minimum wage the remuneration should also be determined according to the overall operation performance of the Company while
taking into account the Company’s business characteristics value evaluation external wage level and benchmark of the market.62 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 63
Employees’ benefits Talent development
Marubi proposes the life outlook of "learning by heart concentrating on work and living happily" and stays committed to legally Marubi appreciates cultivation growth and occupational development of the employee strives to build a "fair just objective and
reasonably and completely safeguarding rights and benefits of the employees. To build a warm and harmonious working qualified" promotion system and continues to improve the occupational development channel for the employees to promote overall
atmosphere and present the humanistic care to the employees the Company provides a variety of subsidies to them such as the development of the staff build a flat organization and achieve agile and efficient operation of the organization. During the reporting
traffic subsidy launch subsidy attendance bonus and travel subsidy besides the five insurances and housing provident fund as period the Company has optimized the human resource management strategies according to the talent review report in combination
required by law making each employee actually feel the warmth from the Company. The Company also witnesses and accompanies with the Company’s business development and the actual conditions of the organization forwarded structural integration and
the big moments of each employee sending blessings and gifts including birthday gifts health gifts gifts for babies wedding gifts optimization of departments and promoted talent cultivation and utilization. Meanwhile the Company stressed on the feelings and
and holiday gifts. Moreover to carry forward the culture of filial piety advocate respecting and loving the old and pass on filial piety
the Company sets up the filial piety salary system. According to the system the Company and employees will jointly contribute a mental health of the employees provided the communication channels for the employees and listened to and cared the employees in
sum of money to the filial piety salary which is then directly sent to the bank account of the employees’ relatives. As of the end of the time.reporting period the Company has cumulatively paid the filial piety wages up to RMB 3.4348 million.The Company insists on the values of "life-long learning and practice" and stays committed to creating a learning organization by
setting up a comprehensive online learning platform Marubi Academy to provide online and offline training and setting up a dual
system of internal and external lecturers. The Company sets up the three-level training system to support the Company’s strategy
Welfare of the Women’s Day the implementation business development and human capital appreciation.warm breakfast from the male Cultivation of middle-level managers: management experts
employee to the female employee
● Stay committed to cultivating the
management elites of different
specialties through educational
Cultivation of grassroots promotion improving the Cultivation of senior managers:
employees: talents with professional capacity of the middle- talents with coordinated
Welfare of the Dragon Boat execution abilities level staff and strengthening the management skills
Festival
● Stay committed to cultivating backbone force for the Company. ● Through the MBA courses of SUN
management trainees and high- YAT-SEN University cultivate
potential talents at grassroots level business partners that have far
and strengthening backbones for strategic vision recognize Marubi’s
the basic level of the Company. corporate culture and with overall
management capacity.Welfare of the Mid-Autumn Festival
Three-level training system of the Company
During the reporting period the Company has conducted the internal training and the new employee training. The internal training
includes the product training skill training sales training and other multi-dimensional business enabling training totaling 81
Democratic communication rounds and covering 2506 persons all the year around. The new employee training is a regular 2-day collective training for new
employees including factory visit corporate culture interpretation interpretation of occupational development path interpretation of
To safeguard the employees’ rights and benefits and expand remuneration and welfare system and interpretation of channel and business. 8 rounds of the new employee training were held all
the communication channels for employees the Company the year around covering 222 new employees.has formulated the Comments and Suggestions Collection
Handling and Feedback System of Marubi completing
the signing and approval of comments and suggestions
mechanism establishing collection channels and summarizing
information ledger. The established channels comprise
Enterprise WeChat Mini Program OA CEO mailbox etc.Besides the Company conducts the quarterly satisfaction
survey and makes rectification based on the issues raised by
the employees in the survey. During the reporting period the
survey results showed that the Q4 employee satisfaction was
higher than Q1 employee satisfaction at each survey dimension. Complaint box in Headquarters and Advice and Suggestion
e-commerce tea room (Enterprise WeChat mini program)
Internal training New staff training64 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 65
Case: Educational improvement support Employee care
Marubi truly cares for the employees ensures the balance of the employees’ work and life and attaches importance to the team
To promote active learning and lifelong learning ideas in the workplace and encourage employees to participate in the academic
building activities. The Company carries out team building from the department club and company level festival activities and
education and occupational training the Company selects the best training organizations and quality cooperation suppliers
family activities for employees giving the employees a warm feeling in their spare time.externally while learns the employees’ demands and solves actual issues internally providing full support to education promotion.The Company managed to encourage the grass-roots employees to actively upgrade their academic level. During the reporting
period 14 employees have upgraded their academic level. Case: Culture Festival
Since 2015 the Company has held the Enterprise Cultural Festival to the staff every year which consists of multiple activities such
as annual strategic presentation great cultural training debate competition sports meet annual commendation conference and
Case: EMBA training of SUN YAT-SEN University gala dinner. The Cultural Festival is an opportunity to praise the achievements of the staff for last year and also a stage for showing
themselves. During the Cultural Festival the friendship between the employees is deepened the employee’s sense of belonging is
The Company provides the key employee enhanced and the employees can further understand the Company’s strategy and enterprise culture. The Marubi Culture Festival
training with the aims to discover select has been held for eight years. The Marubi Culture Festival 2022 themed Growth for the good of all passed on the Company’s
and cultivate talents from senior managers values and core strategies united the force of employees and enhanced the core competitiveness of the Company through strategy
and technical elite teams. Further the presentation annual commendation conference and kick-off meeting.Company cultivates the selected talents
in a systematic and planned manner
boosting the conversion of business
management elites to comprehensive
operation management talents. Since
its launch in February 2022 the EMBA
training project of the SUN YAT-SEN
University has completed 7 sessions of EMBA course
face-to-face courses.Venue of culture festival Speech of Chairman
Case: Marubi Academy During the reporting
period
The Company sets up three colleges based on different learning demands of front middle
Total training time
and back platform personnel: including Brand Management College Operation College Case: Marubi’s 20th anniversary
and Retail College. Such colleges provide systematic learning courses respectively
targeting general knowledge and professional knowledge such as management 28522 H
operation skills products techniques and scientific principles. A total of 438 online To celebrate the 20th anniversary the
courses and 1118 sub-courses were offered as of the end of the reporting period. Company adopts a brilliant decoration
design of balloon arches colored flags
Average training time
and banners. Moreover a signature
27.5 wall is provided for signing by the staff H allowing them to fully participate in the
celebration. A birthday cake is cut and
distributed to the staff and fruit and
drinks are also provided at this joyous
Marubi Academy
moment.Signature wall66 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 67
Case: Badminton game Case: Caring about employees during Double 11
To build a healthy and upward corporate To prepare for Double 11 the Production Department and the Logistics Department usually work over time and other departments
culture enrich the spiritual and cultural also need to support the production and packing work. To appreciate their hard working and inspire them to work for Double 11 in
life for the employees and raise the better statess the Company provides welfare to the employees every day including fruit milk drinks and food.awareness of positively participating
in sports and exercise the Company
organizes and holds the First Badminton
G a m e o f M a r u b i 5 C C e n te r. 74
employees from 9 departments applies
for the Game (the participation rate of
each department is 75%) with 97 rounds
completed in total. The Badminton
Game marks the breakthrough of Marubi
5C Center further enriching the team
building activities for the employees
enhancing the enthusiasm of employees
for sports and improving the team Competition site
cohesiveness.Honoring employees working for 15 and 20 years for the Company
Case: Photographic activity Case: Caring about employees working at high temperatures in summer
To enrich the employee’s spiritual and cultural life and build a In the heat of summer the Company holds the "Cool Summer" Adhering to good health and safety practices
positive upward healthy and civilized factory the Company activity by providing refrigerators cool drinks and watermelon
organizes photographic activities themed sharing the beauty of to the warehouse employees to express the Company’s care Marubi always puts safety first promotes the physical and psychological health of the employees and builds a healthy and safe
the factory and finding the "wonderful" moments. and inspire them. working environment to make the Company continuously forward the sustainable development goals.Safety management
To strictly adhere to relevant laws and regulations and set up a complete occupational
health and safety management system the Company has formulated 26 safety During the reporting
management system documents including the Emergency Rescue Plan in Case of period
Accidents Caused by Precursor and Explosive Chemicals the Hazardous Chemicals
Safety Management Procedures the Emergency Preparedness and Response Control Work accidents
Procedures and the Pipeline Natural Gas and Bottled Gas Safety Management
Procedures. The Company has obtained the certification of ISO 45001 Occupational
Health and Safety Management System. By the end of the reporting period no major 0
safety accident has occurred.Competition site Cool summer The Company has formulated the Hazard Source Identification and Evaluation Control
Work-related fatalities
Procedures to strengthen safety risk management. The Company also conducts safety
risk evaluation every year and implements effective control measures according to the
evaluation results. In addition the Company conducts the monthly check the check 0
before holidays and other conventional safety checks to rectify all problems detected
and implement the work safety in an all-round way.68 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 69
Emergency measures for safety
Adhering to the principles of equal importance of prevention and emergency the Company has formulated the Emergency
Plan for Production Safety Accidents. The Company conducts safety drills every year which ensures effectiveness of the
emergency plan and the emergency equipment and helps continuously improve the fire safety awareness and fire emergency
Selection of activity process and Identification of hazard factors in activities capacity.service processes and services
● Production process and safety technology ● Management: production technology operating procedure skill
management training education and training control
● Operational activity of production personnel ● Quality of personnel: awareness operating procedures and
● Installation operation and maintenance of experience
equipment and facility ● Environmental conditions: environment and conditions of
● Hazardous factor in storage of toxic and production site
harmful materials ● Occupational health and fire control
Fire drill Firefighting competition
Hazardous chemicals
Determination of major hazardous Qualitative and quantitative evaluation of hazardous
factors factor The Hazardous Chemicals Safety Management Procedures and the Emergency Rescue Plan in Case of Accidents Caused by
● The Security Department summarizes risk ● Formulate hazard source (risk) identification evaluation and Precursor and Explosive Chemicals formulated by the Company specify strict measures and fixed procedures for procurement
control plans from each department defines risk control plan according to evaluation results mainly through transportation storage use and waste management with respect to hazardous chemicals effectively preventing environmental
the Company’s major hazard factors and inquiry exchange site observation and search of relevant safety accidents. The Company also provides training to the workers engaged in use of hazardous chemicals regularly carries out
establishes the list and control sheet of records. emergency drills by referring to the Emergency Plan for Production Safety Accidents thus effectively preventing and controlling risks
major hazard sources. of dangerous explosive chemicals and protecting the employees against injury.Safety risk identification
During the reporting
The Company’s control measures for major hazards are as follows: period
● Formulate goals indicators and management solutions Labor protection appliance
● Formulate management procedures expenditure
● Conduct training and education RMB Anti-theft drill for chemicals● Formulate emergency plan
● Reinforce supervision and check on site
● Maintain existing measures Occupational health
● Monitor major hazards and give instructions and provide 207000
service accordingly The Company stays committed to providing a safe working
environment to the employees and ensuring the employees’
mental and physical health through measures below: inviting
a professional third-party organization to supervise all
occupational health hazards of the Company providing the
employees with physical examination every year and carrying
out health monitoring and management for the specific
positions with occupational disease risks.Occupational health examination report70 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 71
Working together and joining hands with partners
Marubi highly values the cooperation with its suppliers. When selecting suppliers the Company insists on the primary principles of Boosting community co-construction with a
ensuring product quality and service quality supports local procurement and positively includes ESG considerations into the supplier
assessment range. Through working together and close communication with its suppliers the Company has established a long-term grateful heart
and stable cooperation with its suppliers for mutual improvement boosting the sustainable development of the Company in the future.Marubi cares for the society and adheres to the values of
"being grateful to the society and acting for love". Since its
Supply chain management establishment the Company has been committed to shoulder
its social responsibilities. In 2008 the Company set up the
Public donation in 2022
The Company has formulated the Supplier Management Manual specifying the whole life circle from introducing suppliers audit "Better Care Fund" with the aim to pass on love from aspects
procurement cooperation and evaluation management to elimination and guiding each internal department concerned to well of culture rural revitalization and education and make RMB500000
conduct supplier management. According to the open fair and just principles the Company implements transparent and digital contributes to the society as best as it can.procurement mechanism fully standardizes procurement processes with the SRM platform improves transparency of full life cycle
management procedures with respect to suppliers and establishes a win-win strategic partnership with suppliers.Case: Education aids to Chongqing University of Technology
Supplier development Introduction of suppliers
The Company has been giving supports to Chongqing University
of Technology since 2015 and has donated RMB500000
● Screen potential suppliers from the supply market ● Introduce suppliers which are qualified for the as student grants during the reporting period to improve the
and preliminarily evaluate potential suppliers in preliminary evaluation collect all necessary education development.terms of their region financial status professional documents and data initiate the supplier introducing
proficiency quality cost performance maintenance procedures and site review process and execute
and support cost credibility and compliance. the cooperation agreement.Case: Visiting veterans and senior party members
Supplier performance management Removal and blacklist of suppliers
As the Spring Festival is coming the
● Evaluate and analyze the supplier’s performance ● According to the performance evaluation results Company visits retired veterans and
during the term of the Contract (four dimensions: place more orders with the top suppliers provide senior party members to further learn
price quality delivery time and service) detect training to the suppliers below the average as well their thoughts physical health and living
unqualified suppliers in time and minimize risks of as remove and add the last supplier to the blacklist. conditions and sends cares gifts and
inferior suppliers. blessings from the Company.Supplier management of the Company
Supplier onboarding
When admitting new suppliers the Company takes into
account performance of the new suppliers in enterprise Visit of the Company’s party branch’s to Learning meritorious deeds● Labor management senior party member
social responsibility production environment and safety & ESG site review
● Work safety and health
environment protection besides their general qualifications and dimension for
product quality screening. The new suppliers can be included supplier: ● Environment protection
into the database only after they are reviewed and approved on
site and execute the honesty agreement. Case: Air China & Marubi: making up a beautiful life
Green procurement
● The supplier complying with the Nagoya Protocol Cooperating with Air China Guangdong
Marubi follows the concept of green procurement advocates is the first choice. Branch the Company holds the activity
the preemption and use of raw materials with less impact on ● The raw material complying with the Roundtable of Women’s Day for the beauty of female
environment gradually integrates the principle of sustainable Sustainable Palm Oil (RSPO) is the first choice. employees of Air China promotes the
development to supplier management and review continues to special Air China Discount Applet and ● The suppliers are inspired to use environmentally-
complete sustainable procurement procedures and improves provides the special skincare training friendly inks.the sustainable attribute of the whole industrial chain. As to interpret knowledge and skills about
● Pay close attention to biodiversity and use raw Venue of skincare training themed Women’s Day
required by the Company the supplier’s product should contain skincare and makeup.materials with less impacts on biodiversity.information about hazardous substance recyclable material
etc. To ensure the validity of green procurement the Company
implements environment audits and regular training.72 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 73
Appendix Society
Topic Indicator Unit 2021 2022
Total number of employees Person 1197 1060
Key performance table By genderMale Person 377 358
Female Person 820 702
Economy By educational background
College degree or below Person 779 707
Indicator Unit 2021 2022
Bachelor degree Person 351 299
Operating revenue 100 million yuan 17.87 17.32
Master degree or above Person 67 54
Net profit attributable to the parent company 100 million yuan 2.48 1.74
By age
Total assets 100 million yuan 37.62 40.91
Under 30 years old Person 539 438
Number of R&D personnel Person 97 93
30 - 50 years old Person 636 597
Proportion of R&D personnel % 8.10% 8.77%
Over 50 years old Person 22 25
Total R&D investment 10000 yuan 5048.82 5292.57 Employees Gender of the management layer
Tax amount 100 million yuan 2.53 2.63
Male Person 42 74
Note: For other financial data about Marubi in 2022 see Marubi Annual Report 2022.Female Person 59 133
Number of employees from ethnic
Environment Person —— 43minorities
Topic Indicator Unit 2021 2022 Number of people with disabilities Person —— 4
Renewable
Photovoltaic power generation kWh 690800 655185 Number of veterans and demobilized
energy Person —— 8soldiers
Purchased electricity kWh 4617846 4707000 Number of new employees Person —— 410
Natural gas m3 238997 228071 Number of local employment Person —— 221
Comprehensive energy
Tons of standard coal 830.43 829.29 Signing rate of labor contracts % 100% 100%
consumption
Energy use Coverage rate of social insurances % 100% 100%
Tons of standard coal/100 million
Energy intensity 46.47 47.88
yuan of revenue Coverage rate of labor union % 100% 100%
100 million yuan of revenue/tons of Training Total hours of employee training Hour 21432 28522
Energy efficiency 0.02 0.02
standard coal Number o f employment in jury
Piece 0 0
Total emission Tons of carbon dioxide equivalent 3106.26 3178.00 accidents
Greenhouse
Scope 1 Tons of carbon dioxide equivalent 497.59 493.60 Occupational safety Number of employment injuries Person 0 0gas
Scope 2 Tons of carbon dioxide equivalent 2608.67 2684.40 and health Number of accidents involving work- Piece 0 0
Total emission Ton 11493 11125 related fatalities
Waste water
Emission intensity Ton/10000 yuan of revenue 0.06 0.06 Number of work-related fatalities Person 0 0
Amount of water consumption Ton 54927 57190 Total number of suppliers - 218 172
Water
Intensity of water consumption Ton/10000 yuan of revenue 0.31 0.33 By region
resource
Water resource efficiency 10000 yuan of revenue/ton 3.25 3.03 Suppliers from Chinese Mainland - 210 167
Suppliers
Amount of generated Suppliers from Hong Kong Macao
Waste Ton —— 1.52 - 8 5
hazardous wastes and Taiwan and overseas suppliers
Total number of suppliers that have
Notes: 1. Since the subsidiary Guangzhou Marumed Research Co. Ltd. is officially put into operation in 2022 the statistical caliber - 218 172signed the Supplier Code of Conduct
of environmental data is the 5C factory and the Guangzhou Marumed Research Co. Ltd.
2. The main sources of greenhouse gas emission are natural gas and purchased electricity and the Company's photovoltaic Community Public donation 10000 yuan 307.25 50.00
power generation is not included in carbon emission.74 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 75
Indexes
GRI Standard Disclosure Corresponding chapter or section
GRI Content Index 3-1 Process to determine material topics Communication with stakeholders and analysis of material topics
GRI 3: Material Topics 2021
3-2 List of material topics Communication with stakeholders and analysis of material topics
Marubi has reported the information cited in this GRI Content Index for the period January 1
Statement of use 201-1 Direct economic value generated and distributed Key performance table
2022 to December 31 2022 with reference to the GRI Standards. GRI 201: Economic
Performance 2016 201-3 Defined benefit plan obligations and other Building a harmonious workplace with the
GRI 1 used GRI 1: Foundation 2021 retirement plans people-oriented philosophy
GRI 203: Indirect Economic 203-1 Infrastructure investments and services Boosting community co-construction with a Impacts 2016 supported grateful heart
GRI Standard Disclosure Corresponding chapter or section Communication with stakeholders and
3-3 Management of material topics analysis of material topics
2-1 Organizational details About Marubi Staying committed to business ethics
2-2 Entities included in the organization’s About the Report 205-1 Operations assessed for risks related to sustainability reporting GRI 205: Anti-corruption corruption Staying committed to business ethics
2-3 Reporting period frequency and contact point About the Report 2016
205-2 Communication and training about anti-2-4 Restatements of information Key performance table corruption policies and procedures Staying committed to business ethics
2-6 Activities value chain and other business About Marubirelationships Customer service 205-3 Confirmed incidents of corruption and actions taken Staying committed to business ethics
2-7 Employees Key performance table Conserving energy and reducing
302-1 Energy consumption within the organization consumption for clean production
2-9 Governance structure and composition Improving corporate governance Key performance table
2-10 Nomination and selection of the highest Improving corporate governance GRI 302: Energy 2016governance body 302-3 Energy intensity Key performance table
2-11 Chair of the highest governance body Improving corporate governance 302-4 Reduction of energy consumption Conserving energy and reducing consumption for clean production
2-12 Role of the highest governance body in
Communication with stakeholders and
overseeing the management of impacts analysis of material topics 303-1 Interactions with water as a shared resource
Reducing cost and increasing efficiency to
Improving corporate governance conserve natural resources
2-13 Delegation of responsibility for managing Improving corporate governance 303-2 Management of water discharge-related impacts
Conserving energy and reducing
impacts consumption for clean production
About the Report GRI 303: Water and Effluents Conserving energy and reducing
GRI 2: General Disclosures 2-14 Role of the highest governance body in Communication with stakeholders and 2018 303-4 Water discharge consumption for clean production
2021 sustainability reporting analysis of material topics Key performance table
Communication with stakeholders and Reducing cost and increasing efficiency to 2-16 Communication of critical concerns analysis of material topics 303-5 Water consumption conserve natural resources
Key performance table
2-22 Statement on sustainable development strategy Message from Chairman
Communication with stakeholders and
Staying committed to business ethics
2-23 Policy commitments Building a harmonious workplace with the 3-3 Management of material topics
analysis of material topics
Conserving energy and reducing
people-oriented philosophy consumption for clean production
Staying committed to business ethics
2-24 Embedding policy commitments Building a harmonious workplace with the 305-1 Direct (Scope 1) GHG emissions Key performance table GRI 305: Emissions 2016
people-oriented philosophy 305-2 Energy indirect (Scope 2) GHG emissions Key performance table
2-25 Processes to remediate negative impacts Staying committed to business ethics
305-4 GHG emissions intensity Key performance table
2-26 Mechanisms for seeking advice and raising concerns About the Report 305-5 Reduction of GHG emissions Conserving energy and reducing consumption for clean production
2-27 Compliance with laws and regulations See details in each chapter and section of the report 306-1 Waste generation and significant waste-related Conserving energy and reducing impacts consumption for clean production
2-28 Membership associations Pursuing innovation through unremitting R&D efforts
306-2 Management of significant waste-related impacts Conserving energy and reducing consumption for clean production
2-29 Approach to stakeholder engagement Communication with stakeholders and analysis of material topics GRI 306: Waste 2020 Conserving energy and reducing
306-3 Waste generated consumption for clean production
Key performance table
Conserving energy and reducing
306-4 Waste diverted from disposal consumption for clean production
Key performance table76 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 77
CASS-ESG 5.0 Indicator Index
GRI Standard Disclosure Corresponding chapter or section Contents CASS-ESG 5.0
Communication with stakeholders and About the Report P1.2-P1.3
analysis of material topics
GRI 308: Supplier 3-3 Management of material topics Working together and joining hands with Message from Chairman P2.1-P2.2
Environmental Assessment partners
2016 About Marubi P4.1-P4.3
New suppliers that were screened using Working together and joining hands with
environmental criteria partners Communication with stakeholders and G3.5-G3.6
analysis of material topics
Benefits provided to full-time employees
GRI 401: Employment Building a harmonious workplace with ESG Management
401-2 that are not provided to temporary or part- Response to the Sustainable Development
2016 the people-oriented philosophy ——
time employees Goals (SDGs) of the United Nations
GRI 402: Labor/
Minimum notice periods regarding Building a harmonious workplace with Green Manufacturing: Injecting Committed to green manufacturing V2.4
Management Relations 402-1
operational changes the people-oriented philosophy New Momentum into the beauty and
2016 health industry through Technologies Focusing on recombinant collagen V2.4
Occupational health and safety Adhering to good health and safety
403-1 Improving corporate governance G1.1-G1.2 G1.10 G3.6
management system practices
Hazard identification risk assessment and Adhering to good health and safety Strengthening risk compliance G1.3-G1.4
incident investigation practices Staying committed to business ethics G1.7
Adhering to good health and safety Governance responsibility: Pursuit
403-3 Occupational health services of excellence Protecting intellectual property with practices V2.2concerted effort
Worker training on occupational health and Adhering to good health and safety
safety practices Keeping information secure proactively S5.6
GRI 403: Occupational
Adhering to good health and safety Exploring intelligent transformation V2.2Health and Safety 2018 403-6 Promotion of worker health
practices Driving forward environment-friendly
Prevention and mitigation of occupational E1.1 E1.3 E1.5-E1.6
Adhering to good health and safety construction
403-7 health and safety impacts directly linked by
practices Conserving energy and reducing
business relationships Environment protection E2.1-E2.5 E3.1-E3.3 E3.5 E3.8 V4.3consumption for clean production
Adhering to good health and safety
403-9 Work-related injuries responsibility: Green and low
practices carbon Reducing cost and increasing efficiency to E2.6 E2.9-E2.11
Adhering to good health and safety conserve natural resources
403-10 Work-related ill health
practices Promoting low-carbon development
E1.7 E2.14
Average hours of training per year per Building a harmonious workplace with philosophy
GRI 404: Training and employee the people-oriented philosophy Pursuing innovation through unremitting
Education 2016 Programs for upgrading employee skills Building a harmonious workplace with V2.1-V2.4 V2.7-V2.8
404-2 R&D efforts
and transition assistance programs the people-oriented philosophy
Keeping improving the product quality S5.1-S5.2
Building a harmonious workplace with
GRI 405: Diversity and Diversity of governance bodies and
405-1 the people-oriented philosophy Improving service with the customer-
Equal Opportunity 2016 employees S5.3 S5.5 S5.7-S5.8
Key performance table oriented philosophy
Operations and suppliers at significant risk Building a harmonious workplace with
GRI 408: Child labor 2016 408-1 Building a harmonious workplace with the
for incidents of child labor the people-oriented philosophy Social responsibility: Continued S1.1-S1.4 S1.6-S1.7 S1.10 S2.2 S2.4people-oriented philosophy
growth
GRI 409: Forced or Operations and suppliers at significant risk Building a harmonious workplace with
409-1 Adhering to good health and safety
Compulsory Labor 2016 for incidents of forced or compulsory labor the people-oriented philosophy S3.1-S3.2 S3.4-S3.8 S3.11practices
Communication with stakeholders and
analysis of material topics Working together and joining hands with
3-3 Management of material topics S6.2partners
GRI 414: Supplier Social Working together and joining hands with
Assessment 2016 partners Boosting community co-construction with a V3.4 V3.6
New suppliers that were screened using Working together and joining hands with grateful heart
social criteria partners Key performance table A2
GRI 417: Marketing and Requirements for product and service Improving service with the customer-
Labeling 2016 information and labeling oriented philosophy Appendix Indexes A4
Comments and feedback A578 Guangdong Marubi Biotechnology Co. Ltd. Environmental Social and Governance (ESG) Report 2022 79
Comments and feedback
Thank you very much for reading the Environmental Social and Governance (ESG) Report
2022 Guangdong Marubi Biotechnology Co. Ltd. To continuously improve the Company’s ESG
management the report and the ESG capacity and level your comments and suggestions to this
report will be highly appreciated. We will take into account your comments and suggestions and
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2. Do you think this report comprehensively and accurately reflects the Company’s
significant impacts to the economy society and environment?
□ Very well □ Well □ Averagely □ Poorly
3. What do you think of the report's response and disclosure to stakeholders’ concerns?
□ Very well □ Well □ Averagely □ Poorly
4. Do you think this report clearly accurately and completely discloses information
indicators and data?
□ Very well □ Well □ Averagely □ Poorly
5. What do you think of the readability of this report? How about the main logical line
content design literal presentation and layout design?
□ Very well □ Well □ Averagely □ Poorly
6. What are your suggestions to our future ESG reports?
