2023 Annual Environmental Social and
Governance Report
Shanghai Aohua Endoscopy Co.Ltd.2023 Annual Environmental Social and Governance Report 丨 CONTENTS
CONTENTS
010406081012
MESSAGE FROM WELCOME TO AOHUA 7 CORPORATE GOVERNANCE 16 FULFILLING PEOPLE-ORIENTED APPENDIX 45
THE MANAGEMENT TEAM 3 RESPONSIBILITIES 28 WIN-WIN FUTURE 39
About Aohua 8 Protection of investor rights 17
Early Cancer Prevention 29 Protecting Employee
Company Introduction 9 Protection of intellectual
Rights and Interests 40
property 19 Rural Support 31
Development History 10
Fostering Employee
Charitable Donation 32
Company Honors and Career Growth 41
Qualifications 11 Global Communication 33
Protecting Employee Health 42
Brand Strength 12
0205070911
ABOUT THE REPORT 4 SUSTAINABILITY INNOVATION AND ENTERPRISE 20 QUALITY UNBOUNDED POLLUTION REDUCTION
MANAGEMENT 13 PURSUING EXCELLENCE 34 AND CARBON REDUCTION 43
Research and
Stakeholders 14 Development Mission 21 Ensure Quality 35 Environmental
Management System 44
Materiality Assessment 15 Product Function Innovation 22 Enhance International Service
Quality 36
Expansion of Application Fields 24
Compliant and Efficient
Medical Design Innovation 26
Procurement 37
03
KEY PERFORMANCE REPORT
FOR 2023 52023 Annual Environmental Social and Governance Report 丨 MESSAGE FROM THE MANAGEMENT TEAM
MESSAGE FROM THE MANAGEMENT TEAM
Since its inception in 1994 Aohua Endoscopy has wit- This year the company has increased investment in overseas markets providing the world with superior concept deepen the organic integration of corporate
nessed the passage of thirty years in the blink of an eye. technical research and development focusing on clinical performance products that meet the needs of hospitals strategy and social responsibility promote the green and
Amidst the ebb and flow of light and shadow the spirit feedback to continuously improve production tech- at all levels and injecting Chinese strength into the high-quality development of enterprises work hand in
of Aohua remains steadfast unwavering and resolute nology and research innovation capabilities gradually accessibility of medical services and the development hand with shareholders governments employees sup-
progressing from adversity to breakthroughs steadily enhancing the core competitiveness and brand influence of cutting-edge diagnostic and treatment technologies pliers and partners customers and other stakeholders
advancing into vast territories both domestic and inter- of our products. In order to further meet the diversified globally. We adhere to the sustainable development con- to compose a green chapter together.national. Riding on the tide of China's rise we are com- demands of the market and expand our domestic market cept of "environmental protection health energy saving
mitted to pursuing the light always guided by our mis- share the company has embraced "innovation" as the and safety" seeking common growth of environmental
sion to make endoscopy diagnosis and treatment more keyword integrating innovation with professionalism and economic benefits making environmental protec-
efficient and intelligent. We remain focused innovative and successively launching a series of new products such tion and energy conservation an important part of the
and continuously learning starting from clinical practice as the AQ-200 Elite endoscopy system various types of company's sustainable development strategy taking ac-
grounding ourselves in technological innovation and fine endoscopes duodenoscopes optical magnification tive actions to create a low-carbon and environmentally
continuously enhancing product performance. endoscopes and bifocal endoscopes achieving product friendly production and operation model reducing the
diversification and providing doctors with more conven- impact of production and operation processes on the
The year 2023 presents both challenges and opportuni- ient and comprehensive endoscopy solutions playing environment attaching importance to the optimization
ties. The global situation is fraught with turbulence and an active role in optimizing and integrating medical of energy consumption structure actively using clean
regional conflicts persist. Simultaneously the global resources. This year as we deepen our core technology energy adopting new green transportation models
technological innovation has entered an unprecedent- we actively participate in industry exchanges strengthen advocating green office initiatives and creating a green
edly active period with breakthroughs in artificial intel- clinical transformation with endoscopy experts promote operation environment.ligence bringing expectations for further technological the advancement of clinical procedures and work with
advancements yet also heralding a future of increased governments and medical institutions at all levels to In the future we will continue to adhere to the vision of
uncertainty. Amidst this era of transformative change raise public awareness of early cancer screening further "becoming a globally influential endoscopy brand" and
our steadfast commitment to innovation resilience and achieving the goal of early diagnosis and treatment. use excellent business performance to repay sharehold-
courage in facing challenges remains unchanged. We ers and give back to society fulfilling the obligations of
seize opportunities push forward with unwavering de- As a participant in the field of medical and health we a listed company steadfastly. We will not forget our orig-
termination and promote the vigorous development of have always been concerned about the development inal intention shoulder corporate social responsibility
the company. of human health translating innovation into clinical di- and continue to adhere to the sustainable development
agnosis and treatment and looking globally to expand strategy promote and improve the ESG development
32023 Annual Environmental Social and Governance Report 丨 ABOUT THE REPORT
ABOUT THE REPORT
Report Introduction Writing Basis Scope of the Report Report AccessThe“2023 Environmental Social and Governance Re- This report is mainly prepared in accordance with the This report covers Shanghai Aohua Endoscopy Co. Ltd. This report is published in both Simplified Chinese andport” (hereinafter referred to as “this Report”) is the "Listing Rules of the Science and Technology Innovation its subsidiaries branches and directly affiliated insti- English versions. In case of any discrepancy in under-
first Environmental Social and Governance (ESG) report Board of the Shanghai Stock Exchange" and the Global tutions unless otherwise specified consistent with the standing the Simplified Chinese version shall prevail. To
issued by Shanghai Aohua Endoscopy Co. Ltd. aimed Reporting Initiative (GRI) Sustainability Reporting Stand- scope of the annual report. support environmental protection this report is released
at objectively and truthfully disclosing the company’s ards (GRI Standards) aiming to continuously enhance in electronic format and can be accessed and download-
management strategies practices and achievements the transparency of the company's sustainable develop- ed from the Shanghai Stock Exchange website (www.sse.in the field of sustainable development in environmen- ment-related information disclosure and respond to the Reporting Period com.cn).tal social and governance to shareholders investors concerns of various stakeholders about the company's
employees customers government partners and the ESG management and performance. Report Release Cycle: This report is an annual report. We welcome readers to contact us through the following
public. Reporting Period: From January 1 2023 to December 31 channels. Your opinions will help us further improve this
2023. To enhance the comparability and completeness report and enhance the ESG performance of the company.
of the report content some content appropriately traces
back to previous years.Telephone: 021-54303731
Email: ir@aohua.com
Address: No. 66 Lane 133 Guangzhong Road Minhang
Report Approval District Shanghai Aohua Endoscopy Building
Abbreviations
This report was approved for release by the Board of Report Disclosure
Directors of the company on April 29 2024. The Board
of Directors of the company commits to supervise the The data and cases in this report mainly come from the
Abbreviations Reference content of the report and ensure that there are no false company's official documents and statistical reports
records or misleading statements and takes responsibil- and have been reviewed by relevant departments. The
The company Aohua Endoscopy Aohua We Shanghai Aohua Endoscopy Co.Ltd. ity for the truthfulness accuracy and completeness of currency amounts mentioned in this report are denom-
the content. inated in RMB. Several numbers and percentage figures
in this report have been rounded so the total shown in
some tables may not necessarily be the sum of the afore-
mentioned numbers.
42023 Annual Environmental Social and Governance Report 丨 KEY PERFORMANCE REPORT FOR 2023
KEY PERFORMANCE REPORT FOR 2023
Economic indicators
During the reporting period the company actively ex- The operating income Net profit attributable to shareholders
panded its marketing network both domestically and of the listed company
internationally broadening its coverage of hospitals at 678.08 million yuan
all levels and comprehensively enhancing its brand influ- 57.85 million yuan
ence. Meanwhile the company further increased invest-
ment in research and development leveraging its oper-
ational advantages in research technology and quality
to continuously refine and upgrade products. This en- Year-on-year growth Year-on-year growth
sured the consistent delivery of satisfactory endoscopic
solutions to customers garnered increased recognition 52.29 167.04 %
from the clinical end and consequently achieved steady %
growth in the company's main business. This in turn
drove the healthy growth of various financial indicators.During the reporting period the company focused on its Research and Development Investment Net profit attributable to shareholders of the listed com- The company adheres to standardized governance and
core business with a direction of "specialization and in- pany excluding non-recurring gains and losses efficient communication aiming to create long-term and
novation" continuously enhancing product capabilities. 147.00 sustainable value for customers shareholders employ-million yuan
The company emphasized research and development 44.49 ees and society. Leveraging the continued efforts on million yuan
making sustained investments to strengthen endoscopic products like AQ-300 the company's brand influence is
technology research and promote product iteration and gradually enhancing driving steady growth in operating
upgrades to drive technological innovation. Since the income. Meanwhile net profit sales expenses manage-
launch of the AQ-300 series the company has contin- Year-on-year growth Year-on-year growth ment expenses and R&D expenses have all shown an
uously iterated the series based on clinical feedback
enriching the variety of compatible endoscopes and en- 52.26 % 361.42 increasing trend essentially matching the company's revenue growth trajectory.%
hancing product competitiveness and recognition.
52023 Annual Environmental Social and Governance Report 丨 KEY PERFORMANCE REPORT FOR 2023
Environmental Indicators
Water Consumption Water Consumption Intensity
11424.61 tons 16.85 tons/million RMB
Energy Consumption Energy Consumption Intensity
8774.41 GJ 12.94 GJ/million RMB
6WELCOME TO
AOHUA
In 1994 Aohua Endoscopy embarked on its journey growing against the wind. training plans and the implementation of digital and intelligent management mod-
As we witness the era we are also witnessed by it. els Aohua is striving to create a new highland for the development of the endoscopy
field.With self-reliance in technology as our proposition and innovation as our goal Ao-
hua has always focused on the field of endoscopy and is committed to promoting
the popularization and innovation of medical technology. Through continuous high
investment in research and development implementation of high-quality talentWELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
About Aohua
MISSION
Make endoscopy diagnosis and treatment more
efficient and intelligent
VISION
Become a global enterprise advancing endoscopic
care for all
VALUE
Customer First
Continuous innovation
Sustained Growth
Results-Oriented
8WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Company Introduction
Aohua Endoscopy Co. Ltd. is a high-tech enterprise that specializes in the R&D production
and sales of video endoscopic equipment.Our products which focus on endoscopy diagnosis and treatment include 4K UHD endos-
copy systems optical magnification endoscopes gastrointestinal endoscopes laryngo-
scopes and bronchoscopes. Our products are widely used in clinical departments such as
gastroenterology ENT pulmonology the emergency room and the ICU. Through long-term
technological innovation we have achieved breakthroughs in multiple key technologies
continuously promoting accurate diagnosis and cutting-edge scientific research.For more details please visit our official website and official WeChat platform.Official website: www.aohua.com
Facebook Twitter Youtube
9WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Development History
199420052010201320162017
Founding of Aohua in Shanghai Launched China’s 1st Launched VME-2800 Launched optical image Acquired an endoscopic accessories Acquired an endoscopic accessories
video endoscopy system adaptable to video enhancement technology - CBI manufacturer in Hangzhou manufacturer in Changzhou
bronchoscope and ENT endoscope
20182019202120222023
Launch full high definition endoscopy New Head Quarter in Shanghai Became a Public listed company Launch 4K ultra high definition Launched first ultra-thin endoscope
system AQ-200 SSE STAR A Stock 688212 endoscopy system AQ-300 with a distal tip
Setup a sales and service center in EU diameter of only 1.8mm
10WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Company Honors and Qualifications
National Level Qualifications Provincial Level Qualifications
High-Tech Enterprise (First recognized in 2008) Shanghai Municipal "Specialized Refined Unique and New" Small and Medium-sized Enterprise (First recognized in 2018)
National Specialized Refined Unique and New "Little Giant" Enterprise (First recognized in 2021) Shanghai Municipal Science and Technology Little Giant (First recognized in 2018)
National Intellectual Property Advantage Enterprise (First recognized in 2023) Shanghai Municipal Enterprise Technology Center (First recognized in 2022)
Shanghai Municipal Design Innovation Center (First recognized in 2022)
Shanghai Municipal Patent Work Demonstration Enterprise (First recognized in 2023)
2023 Shanghai Municipal Biomedical Digital Transformation Pioneer Enterprise
Deputy Director Unit of Shanghai Medical Device Industry Association
11WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Brand Strength Corporate Awards Industrial Design Awards
Shanghai Science and Technology Award - Technological Progress Award 2015 iF Design Award (ALD)
2019 Shanghai "Best Case of Enterprise Technological Innovation" Award (Shanghai Federation of Industry and Commerce) 2015 China Design Red Star Award (Carbon Dioxide Insuffla-
2020 National Federation of Industry and Commerce Innovative and Growth-Oriented Private Enterprises (Ranked 107th nation- tion Pump)
wide) (General Office of the All-China Federation of Industry and Commerce) 2016 Red Dot Award (AQ-200)
2021 Excellent Brand in the Chinese Medical Endoscope Industry (Organized by China Advanced Medical Equipment Conference 2016 Red Dot Award (AEP-200)
China Endoscopy Conference Committee Endoscopy Expert Committee) 2017 China Design Red Star Award (Endoscope Handle)
2023 China Endoscopy Annual Selection "Top Ten Endoscopy Brand Enterprises" (Organized by the China Endoscopy Conference 2018 Red Dot Award (Equine Airway Exercise Endoscopy)
Forging a High Ground in Medical Equipment Committee and the Endoscopy Expert Committee) 2019 Good Design Award (AQ-200)
Intellectual Property 2023 Global "Future Industry Star Contest" Future Industry Trend Award (Project Team) 2019 Good Design Award (FHD-GT200)
2020 iF Design Award (AC-1)
2020 iF Design Award (HD-GT1)
Product Awards 2020 China Design Red Star Award (Quick Sampler)
223 2021 iF Design Award (Mobile Bronchoscopy System)Shanghai Biomedical "New Excellent Medical Devices" Product Catalog (Endoscope LED Cold Light Source) 2021 Red Dot Award (AC-1)
Patents 2015 Shanghai High-tech Achievement Transformation Project (VME-98S Upper Digestive Tract Electronic Endoscope) 2021 Red Dot Award (AQ-300)
2016 Shanghai High-tech Achievement Transformation Project (VRL-Q30 Nasopharyngeal Electronic Endoscope) 2021 Red Dot Award (UHD)
2017 Shanghai Innovation Product Recommendation Catalog (AQ-100 Spectral Electronic Endoscope) 2021 Red Dot Award (ALD)
2019 Shanghai Innovation Product Recommendation Catalog (AQ-200 High-Definition Electronic Gastroscopy) 2023 iF Design Award (Aoxiaobao- INTELLIGENT ENDOSCOPY
2022 Shanghai Second Batch of Innovative Product Recommendation Catalog (AC-1 Integrated Endoscope System) ASSISTANCE SYSTEM)
2022 Excellent Domestic Medical Equipment List (AQ-100 Spectral Electronic Endoscope)
10 2023 Shanghai Design 100+ (AQ-300)2022 Excellent Domestic Medical Equipment List (AQ-200 High-Definition Electronic Gastroscopy)2023 Shanghai High-tech Achievement Transformation Project (HD-CL1I HDCL1L Electronic Colonoscope)
National and Provincial Enterprise Qualifications 2023 Shanghai High-tech Achievement Transformation Project (AQL-200L Endoscope LED Cold Light Source)
2023 Shanghai First Batch of Innovative Product Recommendation Catalog (AQ-300 Ultra-High Definition System)
35
Honorary Awards
12SUSTAINABILITY
MANAGEMENT
As a leading domestic medical device company we embrace the mission of "Make The Board of Directors of our company assumes the ultimate responsibility for
endoscopy diagnosis and treatment more efficient and intelligent" continuously Aohua Endoscopy's ESG management and reporting ensuring the effectiveness of
delving into the endoscopy industry and accumulating rich industry and technical ESG management through regular supervision and review. Our management team
experience. Building upon this foundation we integrate the concept of sustainable reports regularly to the Board of Directors on the implementation and progress of
development into our strategy and operations striving to promote both enterprise ESG-related work ensuring that the Board's ESG decisions are translated into spe-
development and contribute to social welfare. cific projects and implemented at the operational level by various key functional
departments.WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Stakeholders Stakeholders Expectations and Demands Communication and Response
Compliance operations Law-abiding operations
Economic development Compliant tax payment
Our key stakeholders include government and regulatory Government and regulatory bodies Environmental protection Environmental management system
agencies shareholders and investors customers suppli- Social responsibility Policy response
ers and partners employees communities and media.We consider the identification communication and
engagement of stakeholders as an integral part of our Governance structure Compliance governance
company's sustainable development strategy. Business performance Profit distributionShareholders and investors
Investor relations Information disclosure
Intellectual property rights Protection of intellectual property rights
By establishing efficient communication mechanisms
and diverse communication methods we maintain regu-
lar interaction and communication with all stakeholders. Product quality Quality and safety management system construction
We actively integrate the expectations and demands of Customers Quality service International service management
stakeholders into the company's development providing Innovative products Research and development innovation system
sustainable development impetus.Transparency Integrity closed-loop management
Supplier management Compliant and efficient procurement
Suppliers and partners
Risk control Diversified management measures
Win-win cooperation Industry exchange and cooperation
Rights protection Legal and compliant employment
Health and safety Safety management system construction
Employees
Talent acquisition and retention Performance setting and long-term incentives
Training and development Improvement of training system
Proactive information disclosure
Information disclosure
Media and public communication
Communities and media Public communication
Grassroots assistance
Social responsibility
Early cancer prevention and treatment
14WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Materiality Assessment
Based on the expectations of stakeholders business
scope and sustainability status and referencing sustain-
able development issues of excellent peer companies
along with the focus of the capital market the company
identified categorized and assessed the importance Risk Management Product Quality and Safety
of ESG substantive issues. Subsequently a substantive Intellectual Property Protection Research and Development
issue matrix was formed based on the importance of the Employee Rights and Benefits Innovation
issues to the company and to stakeholders. Supplier Management International Service Quality
Business Ethics Employee Health and Safety
Employee Training and Development Early Cancer Prevention
Green Operations Industry Development
Grassroots Support Investor Relations
Compliance Governance
Talent Acquisition and Retention
High Importance to the company Very High
15
High Importance to stakeholders Very HighCORPORATE
GOVERNANCE
In this rapidly changing global environment we remain steadfast in our commit-
ment to compliance with regulations and the establishment of sound governance
mechanisms to ensure alignment between our business activities and the overall
interests of society. By actively promoting sustainable development Aohua is striv-
ing to create a win-win future and looks forward to making positive contributions to
society and the environment.WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Protection of investor rights
Compliance Management Shareholders' Meeting Board of Directors Supervisory Board
The company has established the shareholders' meet- The company strictly follows the provisions and require- During the reporting period a total of 9 board meet- The company's supervisory board consists of three
ing the board of directors and the supervisory board ments of laws and regulations such as the Company ings were held. The company has set up nine directors supervisors. In 2023 a total of 8 supervisory board meet-
each performing its respective duties in corporate de- Law of the People's Republic of China the Rules of the including four independent directors accounting for ings were held with 29 items submitted for deliberation.cision-making coordinating operations and providing Shareholders' Meeting of Listed Companies the Articles 44.44% of the total number; one female director ac- The company strictly convenes supervisory board meet-
effective checks and balances. As of the end of the re- of Association and the Rules of Procedure for Sharehold- counting for 11.11% of the total number. The number ings in accordance with the provisions of the Company's
porting period the actual state of corporate governance ers' Meetings to standardize the convening holding and and composition of the board of directors comply with Articles of Association and the Rules of Procedure for the
complies with the requirements of laws and regulations voting procedures of shareholders' meetings. It treats legal requirements and the requirements of the Compa- Supervisory Board. The supervisors fulfill their duties
such as the Company Law of the People's Republic of all shareholders openly fairly and impartially pays at- ny's Articles of Association. The convening and holding conscientiously attend board meetings and sharehold-
China the Securities Law of the People's Republic of tention to and protects the rights and interests of share- procedures of the board of directors comply with the rel- ers' meetings supervise the legality and compliance
China and the Guidelines for Corporate Governance of holders and ensures that shareholders can fully enjoy evant requirements of the company's Rules of Procedure of the company's production and operation financial
Listed Companies. Meanwhile Aohua Endoscopy contin- all legitimate rights and interests stipulated by laws and for the Board of Directors. operations as well as the responsibilities of the board of
uously improves the company's governance structure regulations. directors and management effectively oversee related
establishes a sound internal control system and ensures Furthermore the board of directors has set up audit party transactions periodic reports restricted stock
the company's long-term stable development. During this reporting period the company convened a committees strategic committees compensation and incentives and the use of raised funds ensuring the le-
total of 5 shareholders' meetings which deliberated and assessment committees and nomination committees gality and compliance of the company's decision-making
adopted resolutions on important matters such as the providing consultation and advice for major decisions and operations.revision of the company's articles of association and re- of the board of directors ensuring that the board of
stricted stock incentive plans. directors plays an active role in decision-making and
supervision.During the reporting period the specialized
committees held the following meetings: Audit Commit-
tee (5 times) Compensation and Assessment Committee
(4 times) and Nomination Committee (1 time).
17WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Shareholder Returns
The company's profit distribution plan comprehensively
considers factors such as the industry characteristics de-
velopment stage capital needs and future development 2021 Cash Dividends 2023 Cash Dividends
plans of the company. While ensuring the company's
normal operation and long-term development it also 25.33 million yuan 40.21 million yuan
takes into account the immediate and long-term inter-
ests of the shareholders which is in line with the compa-
ny's operating and development situation. Note: The profit distribution plan for the year 2023 is subject to approval by the annual general meeting of shareholders in 2023.The relevant dividend distribution policy is stipulated
in the company's Articles of Association which clear-
ly defines the basic principles of shareholder returns
planning the specific content of shareholder returns
planning and the decision-making procedures for profit
distribution. The company strictly implements the profit
distribution plan stipulated in the Articles of Association
Performance briefing sessions were held
and adopts a continuous and stable profit distribution
policy. 3
Investor Relations
The company diligently fulfills its obligations for infor-
The reply rate on the e interactive platform
mation disclosure as a listed company to safeguard the
right to know of the broad investors. It has designated
a secretary of the board of directors specifically respon- 100 %
sible for information disclosure work coordinating the
company's relationship with investors receiving share-
holder visits answering investor inquiries strengthening
communication with investors addressing investor
concerns enhancing investor understanding and trust in
the company and fully respecting and safeguarding the
interests of the broad investors.
18WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Protection of intellectual property
Aohua Endoscopy regards innovation as its core com- The list of intellectual property rights obtained as of the end of the reporting period
petitive advantage and attaches great importance to the
protection and utilization of intellectual property rights
New additions for the current year Accumulated total
(IPR). The company strictly complies with the laws and
regulations such as the Patent Law of the People's Re-
public of China and the Trademark Law of the People's Number of applications (count) Number obtained (count) Number of applications (count) Number obtained (count)
Republic of China. A hierarchical IPR management organ-
izational structure has been established to plan imple- Invention patents 23 20 164 59
ment inspect and improve IPR management activities.Through system construction the company standardizes Utility model patents 11 9 101 98
IPR management practices encourages invention and
creation strengthens core competitiveness and provides Design patents 5 0 71 66
important support for technological innovation and sus-
tainable development.Software copyrights 0 0 13 13
In 2020 the company obtained its first Intellectual Prop-
Others 0 0 0 0
erty Management System certification and maintained
the validity of the certificate through certification reviews
during the reporting period. It has been honored with Total 39 29 349 236
titles such as "National Intellectual Property Advantage
Enterprise" and "Shanghai Patent Demonstration Unit." A
sound IPR risk prevention system has been established The number of invention The number of granted Cumulative intellectual Cumulative intellectual
with IPR risk identification mechanisms set at key points patent applications invention patents property applications property grants
in the entire lifecycle of products including R&D sales
and retirement effectively controlling the IPR risks of
company products. During the reporting period the 164 items 59 items 349 items 236 items
company did not experience any significant IPR disputes.
19INNOVATION AND
ENTERPRISE
Technological innovation is a vital engine driving advancements in healthcare. We endoscopy but also delving into frontier technologies such as artificial intelligence
firmly believe that by continuously integrating cutting-edge technology with medical and big data analytics. We are committed to contributing our efforts to the global
practices we can provide patients with safer and more effective treatment solutions. healthcare industry.In this era of rapid technological advancement we are not only actively exploring
breakthroughs performance enhancements and application diversity in the field ofWELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Research and Development Mission
Innovation Concept Research and Development Research Talents
and Mechanism Management
During the reporting period the company's business
In the path of technological innovation Aohua has always Throughout our growth journey research and devel- scale continued to grow steadily and the employee scale The total number of company employees
sought steady progress amidst change. Based on market opment have always been the core driving force of also continued to expand. As of the end of the reporting
competition we explore product differentiation advantag- enterprise development. Based on this the company period the total number of employees reached 1092
es through innovative thinking; based on clinical needs has cultivated a research and development team that an overall net increase of 227 people compared to the
1092
we actively seek more efficient and safe solutions. understands clinical practice excels in technical skills end of last year representing a 26.24% increase. Among
and is proficient in research. Currently we have formed them the company's research and development team
The innovation gene has been deeply embedded in the an efficient and innovative research and development further expanded reaching 233 at the end of the report- The overall growth compared to the end of last year
corporate DNA of Aohua. Through the integration of pro- system with complete functions and a sound structure. ing period accounting for 21.34% of the total number
duction learning research and medical care the estab- of company employees. The main members come from 26.24 %
lishment of key research and development centers and Research Organization: Shanghai Research Center - well-known universities or research institutes with
the construction of a high-level talent echelon Aohua has Endoscopy and Equipment Integrated Solutions Beijing professional backgrounds covering optics machinery
formed an innovation system that tightly revolves around Research Center - Image Processing Solutions Wuxi Re- automation electronics software medicine and other
clinical needs integrating optics mechanics electronics search Center - Clinical Innovation Solutions. endoscopic equipment-related fields. The total number of research and development personnel
and medicine. Every breakthrough in high-resolution im- Research Process: Strict adherence to medical device
age processing illumination imaging optics and high-pre- regulatory requirements and ISO quality system stand- To further establish and improve the company's long-
cision electromechanical drive embodies the utmost ards combined with the characteristics of endoscopic term incentive and restraint mechanism attract and 233
innovation of Aohua. A full range of endoscopic products products has established a research and development retain outstanding talents fully mobilize the enthusiasm
covering gastroenterology respiratory otolaryngology procedural system including the "Product Design and of the company's core team effectively integrate the
hepatobiliary surgery and urology will continue to propel Development Process". interests of shareholders company and core team indi- As a percentage of the total company workforce
the company towards the forefront of technological inno- Project Management: Based on clinical research strict viduals and make all parties focus on and promote the
vation. control over requirement management technical explo- company's long-term development. In order to maintain
ration product initiation and system engineering. the sustainable development career path of employees 21.34 %
Industrial Layout: With gastrointestinal endoscopy at all levels the company combines practical situations
diagnosis and treatment as the core actively expanding to reasonably plan position sequences.into respiratory otolaryngology and urology fields.
21WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Product Function Innovation
Launching 17 New Fine The 1.8mm ultra-fine endoscope marks a breakthrough product positioning including ultra-fine fine thera-
Endoscope Models from 3.6mm to 1.8mm overcoming natural material lim- peutic high-definition and high-definition therapeutic
itations and enhancing precise operational capabilities scopes it flexibly meets the diagnostic and therapeutic
When facing numerous pain points such as difficulty in unlocking endless possibilities. This not only showcases needs of various departments.entry limited selection and cumbersome operation in the company's innovative capacity but also represents
the clinical application of endoscopes it is the true es- a crucial step in bridging the gap between products and Enhanced image quality and extended visual capabilities
sence of innovation to address them with new technol- clinical applications. are achieved through multiple staining modes facilitat-
ogies and devices. On August 8 2023 Aohua Endoscopy ing multi-dimensional improvements in image quality.officially launched its new products for the year 2023! With a 61% larger forceps diameter ratio it offers a more
comfortable and worry-free diagnostic and therapeutic Empowered with robust functionalities it aids in diag-
experience breaking through conventional limitations nosis and treatment by capturing every detail thereby
and delivering a more efficient treatment experience. enhancing work efficiency and reducing operational
With comprehensive department coverage and precise fatigue.
22WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
AQ-200 Elite Innovative New ultra-slim scopes: Versatile applications across Powerful functionality for comprehensive perfor- The new system not only achieves seamless integration
Endoscopy Solutions multiple departments mance enhancements between endoscopes and platforms but also elevates
overall performance to a higher level opening up more
Innovation is a key driver of medical advancement. Bronchoscopes: Paired with new bronchoscopes the 1080P Full HD: The new AQ-200 Elite Innovative Endosco- possibilities for the medical field.Aohua focusing on "innovation" as its core value has system aids in early diagnosis and treatment of pulmo- py Solutions paired with gastroscopes achieves 1080P
officially launched the new AQ-200 Elite Innovative nary diseases. Full HD image quality enabling clear real-time visualiza-
Endoscopy Solutions integrating innovation with exper- tion and improving diagnostic efficiency.tise. The standout feature of the AQ-200 Elite Innovative Nasopharyngoscopes: Otolaryngology benefits from the
Endoscopy Solutions lies in its expanded compatibility expanded capabilities of the new AQ-200 Elite Innovative New spectral staining algorithm: Based on optical the-
range not only applicable in gastroenterology but also in Endoscopy Solutions. With the new nasopharyngoscope ory the new system extracts features through a novel
respiratory otolaryngology and hepatobiliary surgery. doctors can better observe lesions in the nasal cavity algorithm enhancing the visual differentiation between
and pharynx. normal tissue and lesions. With four staining modes
Gastroenterology: Matching multiple scopes (CBI-R CBI-D CBI-Q CBI-M) doctors can identify lesions
Percutaneous cholangioscopes: In hepatobiliary surgery more conveniently and accurately.Gastroscopes: With diagnostic and therapeutic capabili- the new AQ-200 Elite Innovative Endoscopy Solutions
ties gastroscopes play a crucial role in gastroenterology. perfectly integrates with new percutaneous cholangio-
Optical magnification endoscopes: Equipped with a new scopes aiding in the detection of biliary system issues.generation of optical magnification endoscopes capable
of magnifying irregular vascular structures and surface
microstructures of lesions without losing detail thereby
enhancing the accuracy of early gastric cancer screening.Duodenoscopes: For ERCP procedures duodenoscopes
offer robust support. The AQ-200 Elite system built on
technological innovation seamlessly integrates with du-
odenoscopes.
23WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Expansion of Application Fields guidance enabling doctors to solve problems swiftly and Secondly the new dual-focus endoscope features accurately. 3-window illumination with three window illumination
systems at the head end providing more uniform and ad-
Continuation of classics with outstanding perfor- equate illumination combined with a large field of view
mance.This dual-focus endoscope is also equipped with angle to better observe the inspection area achieving
numerous classic features of Aohua offering excellent "more even lighting brighter images." At the same time
UHD Series Dual Focus This dual-focus endoscope can be paired with the comprehensive performance comparable to imported this dual-focus endoscope not only delivers excellent
Endoscope company's independently developed 4K ultra-high-defi- endoscopes. Firstly with the assistance of optical stain- image presentation but also possesses outstanding
nition endoscope system AQ-300 breaking free from
ing CBI function the UHD series dual-focus endoscope manipulation technology. When endoscopists use the
Innovation has always been a crucial theme driving the shackles of endoscope pixel limits to present 4K ul- extracts features through a new algorithm further lower gastrointestinal endoscope the dual-focus endo-
progress in the field of high-end medical technology. tra-high-definition images. At a resolution of 3840*2160 increasing the visual differentiation between normal scope can achieve synchronous transmission adjustable
How to break through traditional industry constraints the dual-focus endoscope can produce real and effective tissues and lesions with four staining modes available - softness and hardness and flexible bending providing
and achieve breakthroughs in domestically-produced images with up to 5 million pixels while a wider color CBI-R CBI-D CBI-Q and CBI-M - providing endoscopists endoscopists with a more flexible and convenient endo-
high-performance medical equipment gamut enables endoscopists to see images with colors with higher clarity for observing gastric mucosal mi- scope operation mode.closer to what the human eye perceives reducing visual
crovessels and more details.errors.The launch of the UHD series dual-focus endoscope de-
veloped independently by Aohua Endoscopy is officially
announced compatible with the 4K ultra-high-definition One-touch switching for flexible focus adjustment.endoscope system AQ-300 presenting high-resolution In clinical applications the advantages of the dual-fo-
image quality. The release of this dual-focus endo- cus endoscope are prominent. Endoscopists can easily
scope once again demonstrates innovation in the field switch between detailed observation of mucosal details
of domestically-produced high-performance medical and overall assessment of distant situations with a
equipment heralding a new chapter in the localization simple button press. The uniqueness of the dual-focus
of Chinese national brands and further advancing the endoscope lies in its ability to provide a wider and more
development of digestive endoscopy in China. comprehensive range of image information allowing
doctors to more comprehensively assess disease condi-
tions and gain deeper insights into tissue status.Empowering clinical practice according to genuine
needs.The birth of domestically produced dual-focus
endoscopes not only represents technological innova- Early detection of lesions and treatment of gastrointes-
tion and progress but also reflects Aohua's ongoing com- tinal diseases are crucial especially in cases of tumors
mitment to being close to clinical practice and exploring enabling doctors to make diagnoses more quickly. For
real needs. In clinical operations how can a regular routine endoscopic diagnostic and therapeutic opera-
endoscope achieve clearer visualization To effortlessly tions such as polypectomy or submucosal injection the
present more clinical details the Aohua UHD series du- dual-focus endoscope can provide more accurate image
al-focus endoscopes have emerged.
24WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
UHD Series Duodenoscope
Aohua's new UHD series duodenoscope meets high
standards in product functionality and quality serving
the clinical setting better through several innovative
features. Given the challenges of ERCP procedures the Disposable distal cap Embedded wire in the elevator
new duodenoscope can be paired with the next-gen-
eration 4K ultra-high-definition endoscope system AQ-
As a disposable consumable the distal cap significantly reduces the risk of infection associated with reuse. The distal By reducing the contamination range while avoiding the
300 enabling doctors to observe and identify duodenal
cap is securely attached to the endoscope tip using a double-locking connection method preventing loosening. The risk of wire abrasion the embedded wire makes cleaning
conditions more clearly locate the papilla rapidly and
destructible detachment method is a new concept introduced by Aohua preventing reuse from the source and further and disinfection easier.perform subsequent operations efficiently with higher
blocking the risk of infection.pixel resolution.During ERCP procedures both physicians and patients
need exposure to radiation. A larger angulation of the
elevator enhances efficiency making it easier for doctors
to insert accessories accurately and reducing procedure
time. Additionally a wide field of view angle provides
doctors with a better observation perspective enabling
more precise treatment. An efficient and safe disinfection
method is crucial in clinical practice. Therefore Aohua
has achieved double innovation in manufacturing pro-
cesses and product design.
25WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Medical Design Innovation
EndoMate Wins Using clinical scenarios as a benchmark to create a
2023 iF Design Award new concept of medical aesthetics EndoMate is the
first endoscopy intelligent auxiliary diagnostic system
As one of the significant events in the global design com- introduced by Aohua Endoscopy. While "intelligent assis-
munity the 2023 iF Design Award ceremony was held in tance" technology is not a new topic mature intelligent
Germany on the evening of May 15th. Aohua Endoscopy's assistance products in the medical imaging field are still
intelligent auxiliary diagnostic system EndoMate was relatively rare. EndoMate with its minimalist and clean
honored with the iF Design Award for its product design design concept starts from the clinical usage scenario.and innovative features. Extensive use of white creates a sense of calmness to
alleviate patient anxiety during diagnosis and treatment.Black accents add a high-tech feel and enhance the
sense of hierarchy. By ingeniously combining function-
ality and artistry EndoMate seamlessly integrates into
medical spaces. Through meticulous deconstruction of physicians. Equipped with a quality control analysis implementation in medical institutions nationwide En-
it seamlessly connects medical technology equipment platform the assisting system can also time score and doMate is expected to empower Chinese endoscopists
and clinical environments creating a sense of boundless provide prompts for doctors' procedures assisting them and promote Chinese endoscopy on the global stage in
beauty. in improving procedural accuracy. the future.As the population afflicted with digestive tract diseases As a stable "trainer" EndoMate helps young endos-
continues to grow and medical visits become lengthier copists learn and train more efficiently through error
a significant amount of data accumulates in the process. correction quality control and other means. This accel-
EndoMate based on a computational model inspired erates the accumulation of experience which is often
by the structure of the human brain excels in uncov- time-consuming for young doctors due to factors such
ering the essence behind this wealth of data. Through as equipment limitations mentorship availability case
intelligent autonomous learning the assisting system volume and department size. The intelligentization of
continually evolves. Through extensive case studies and medical equipment aligns with the country's innovation
algorithm training EndoMate has attained high-precision development strategy. With the emergence of intelligent
lesion alert capabilities greatly alleviating the workload digestive endoscopy system solutions and their gradual
26WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
The AQ-300 was honored as
part of the "Shanghai Design
100+" for the year 2023
From a small item to an entire city design plays an in- tions' "Creative Cities Network" in 2021 Shanghai has been committed to empowering industrial innovation through
dispensable role. In October 2023 the AQ-300 4K Ultra design creating vibrant urban spaces optimizing public services enhancing people's quality of life and building the
HD Endoscopy System was selected for the 2022-2023 city's brand. The "Shanghai Design 100+" continuously selects showcases and promotes outstanding design projects
"Shanghai Design 100+" list showcasing Auscultation's from various industries based on these dimensions. This year it attracted 2542 excellent projects from 18 countries and
strong capabilities in product design. regions including China the United States France Italy and Spain.The "Shanghai Design 100+" is a platform for showcas- The AQ-300 4K Ultra HD Endoscopy System with its unique beauty in medical technology stood out in the "Empowering
ing exchanging and promoting outstanding design Industries" category of the "Shanghai Design 100+" selection elevating the comfortable diagnostic and treatment expe-
achievements worldwide. Since joining the United Na- rience to new heights.
27FULFILLING
RESPONSIBILITIES
In the past few decades China's healthcare industry has experienced rapid develop- The synergy of industry academia research and healthcare is the only way to
ment but we cannot ignore the challenges we currently face. With the exacerbation achieve high-quality development in the industry. Therefore Aohua actively collab-
of population aging and the increasing burden of chronic diseases providing more orates with hospitals and research institutions at home and abroad to explore new
efficient convenient and humane medical services is a problem we must face and models establish new scenarios and further help improve the endoscopic skills of
think about. grassroots doctors. By promoting the concept of early cancer screening and preven-
tion we aim to better meet the endoscopic diagnostic and treatment needs of the
entire society.WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Early Cancer Prevention
The inaugural "Aohua Cup" The significance of the competition lies not only in
CBI National Case Competition academic presentation but also in the progress of the
industry. The application of Aohua's new generation CBI
Jointly organized by the "Chinese Journal of Digestive spectral staining technology has revolutionary signifi-
Endoscopy" and Shanghai Aohua Endoscopy Co. Ltd. cance for endoscopic doctors. It can reveal early-stage
aims to provide a platform for young endoscopic doctors cancers enhance doctors' observational capabilities
to share clinical diagnostic experience and academic ex- and diagnostic accuracy and promote the overall level
changes. Through the collection selection and display of diagnosis and treatment of gastrointestinal diseases.of cases we hope to not only promote the standardized Behind the excellent staining function is also a reflection
application of diagnosis and treatment but also further of the growing domestic endoscopy industry.improve the clinical diagnosis and treatment level of
gastrointestinal diseases in China. In 2023 the final of The concept of screening for early-stage gastrointestinal
the first "Aohua Cup" CBI National Case Competition was cancers is gradually popularizing which can further drive
successfully held in Shanghai. the development of China's digestive endoscopy indus-
try. Therefore Aohua is committed to providing a perfect
platform for communication and exchanges to promote
the high-quality development of the national digestive
endoscopy industry.Aohua will invest fully in research and development
deepen clinical practice strengthen the integration of
medicine and engineering to enhance technological in-
novation and academic exploration and help Chinese di-
gestive endoscopy to reach new heights. Within a stand-
ardized training system domestic endoscopes focus on
improving the professional quality of endoscopic talents
forming an endoscopist training system that meets the
diagnosis and treatment needs of the people.
29WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Braving the New Heights of Digestive Diagnosis and Treatment
Our country is a high-incidence area for digestive tract tumors with gastric cancer esophageal cancer and colorectal cancer all ranking among the top ten tumors in terms of
incidence. Most patients with malignant digestive tract tumors are already in advanced stages at the time of diagnosis resulting in poor prognoses for late-stage digestive tract
cancers. The burden of disease is heavy and the prognosis for early and advanced tumors is vastly different. It can be said that the first step in cancer prevention and control is
early screening which involves screening asymptomatic individuals through routine tests examinations or physical check-ups. For a long time Aohua Endoscopy has cooperated
with hospitals to organize workshops and hands-on training courses on digestive endoscopy techniques delving into the construction of the discipline of digestive endoscopy and
providing valuable learning and exchange opportunities for endoscopists thus jointly promoting the prevention and control of early-stage digestive tract cancers.The First People's Hospital of Hangzhou Nanjing Drum Tower Hospital
The company collaborated with the First People's Hospital of Hangzhou to launch the "Early Detection and ESD The company collaborated with Nanjing Drum Tower Hospital to hold the "Aohua Academy Nanjing Drum Tower Hos-
High-level Training Program for Digestive Tract Early Cancer" program which included in-depth discussions and pital Digestive Endoscopy Techniques Hands-on Training Course." Under a standardized training system domestical-
analyses on lesion diagnosis early cancer of the digestive tract diagnosis of colorectal polyps clinical application ly produced endoscopes have always focused on improving the professional quality of digestive endoscopy person-
of digestive endoscopy ESD surgical techniques and case studies. Through practical experience participants ap- nel and forming an endoscopist training system that meets the needs of the people's medical treatment. Therefore
preciated the comfortable operability and high-definition imaging performance of Aohua products which can meet Aohua is committed to providing a perfect platform for communication and exchange to promote the high-quality
clinical diagnosis and treatment needs. development of digestive endoscopy across the country.
30WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Rural Support
To promote the overall high-quality development of di- Yunnan Province Lincang City Utilizing the Aohua AQ-300 in the endoscopy room they This grassroots assistance activity covered a wide range
gestive endoscopy diagnosis and treatment capabilities Yongde County Hospital of performed various new techniques such as "endoscopic of topics closely integrating with clinical work enhanc-
we aim to extend the achievements of advanced diges- gastric polypectomy endoscopic colon polypectomy ing connections and exchanges with grassroots medical
tive specialties to rural support and deliver digestive Traditional Chinese Medicine endoscopic mucosal resection of the colon" filling the institutions and playing an actively catalytic role in
endoscopy diagnosis and treatment technologies. gap in digestive endoscopy technology at grassroots hos- improving the diagnostic and treatment capabilities and
In September a national touring medical team consisting
pitals. This initiative enhanced the local medical staff's quality levels of endoscopy at grassroots hospitals.of digestive specialists policy researchers and officials
proficiency and provided targeted professional guidance
responsible for institutional reform along with the direc-
suggestions and advice. They also shared insights on
tor physician attending physician and chief nurse of the
discipline construction specialty development digestive
Lincang City Digestive Specialist Alliance conducted on-
endoscopy diagnosis and treatment and quality control
site guidance at grassroots hospitals' gastroenterology
addressing various difficult questions comprehensively
departments. They established remote medical consul-
and meticulously.tations and conducted on-site teaching.
31WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Charitable Donation
The gastrointestinal early cancer screening project is not equipment worth 3.4 million yuan to the Tongchuan City Early Cancer Screening Base through the Municipal Red Cross
only a concrete manifestation of the philosophy of "peo- to support its construction.ple first life first" but also a new starting point for the
development of gastrointestinal early cancer screening The donated medical equipment includes a set of high-definition electronic gastrointestinal endoscopy systems com-
work. In February 2023 the unveiling ceremony of the prising one endoscopic image processing center one endoscopic LED cold light source two high-definition electronic
Gastrointestinal Early Cancer Screening Base and Equip- gastroscopes two high-definition electronic colonoscopes one LCD monitor and one endoscopy-specific trolley with a
ment Donation Ceremony was held at the Tongchuan total value of 3.4 million yuan. The use of this equipment will play an important role in the early diagnosis and treatment
Cancer Prevention and Control Center in Shaanxi Prov- of gastrointestinal tumors maximizing cost savings improving diagnosis rates shortening diagnosis and treatment
ince at the South Hospital of the City People's Hospital. times and effectively enhancing the level of diagnosis and treatment of gastrointestinal diseases.Shanghai Aohua Endoscopy Co. Ltd. donated medical
32WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Global Communication
United Arab Emirates
North America Asia
Mongolia
Europe
United States DDW Turkey Uzbekistan
Ireland Africa
United States FIME Indonesia Kazakhstan
South America
Egypt Vietnam Korea
Ecuador
South Africa Thailand Malaysia
33QUALITY UNBOUNDED
PURSUING EXCELLENCE
The company maintains strict requirements for quality control. By introducing an Furthermore we integrate quality management throughout the entire product
intelligent supply chain management system we have achieved comprehensive lifecycle from product design and raw material selection to production packag-
monitoring and management of various aspects such as raw material procure- ing transportation and after-sales service always prioritizing customer needs
ment production processes and product quality inspection. This management and product safety. This rigorous quality control is not only a commitment to
model not only improves production efficiency and reduces costs but also en- our customers but also a fulfillment of our own mission.sures the stability and consistency of product quality.WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Ensure Quality
The company has always prioritized people-oriented in- The company places great emphasis on quality management. Having obtained certifications for quality management standardized production processes and release approval
itiatives actively pursuing standardized management as systems such as ISO 9001:2015 and ISO 13485:2016. It actively expands international business and continuously updates processes.its core and establishing sound operational guidelines. and refines the procedural documents and regulations within its quality management system. In addition to meeting
While striving for orderly efficient and healthy develop- the requirements of China's GMP the quality management system also complies with additional legal regulations in Shanghai Aohua Endoscopy Co. Ltd. conducts com-
ment it also pays attention to societal and human health countries such as the EU's MDR South Korea's KGMP and Brazil. This ensures the delivery of quality safe and effective prehensive inspections for endoscopic product perfor-
development aiming for win-win outcomes among the products to domestic customers while providing a guarantee for expansion into international markets. mance sealing and related imaging functions achieving
company employees customers and investors. a rate of up to
The company's quality management system comprises four levels of documents. Quality manual procedural docu-
Against the backdrop of a corporate culture emphasiz- ments regulations and records. Through refined process management the company has standardized 48 business pro- 100 %
ing Customer First Continuous Innovation Sustained cesses including resource management design and development production manufacturing feedback improvement
Growth and Results-Oriented the company has always etc. ensuring high-quality execution results. Over the years the company has actively employed the PDCA quality cycle Since its inception the company has established a prin-
adhered to the principle of "technological innovation to continuously improve business process management pursuing excellence. ciple of "providing knowledge skills dignity and devel-
sincere service." We seize opportunities presented by opment to employees; providing love service value and
new technological advancements in the industry rely on The company is committed to providing customers with high-quality products. It sets requirements for high relia- benefits to customers." With a commitment to strength-
state-of-the-art scientific production methods provide bility and maintainability in product design continuously innovating and optimizing throughout the design and devel- ening management and seeking truth and pragmatism it
high-quality services to our vast clientele and offer relia- opment stages iterating product designs and ensuring that only qualified products are delivered to customers through continuously recruits professional and technically adept
ble endoscopic solutions to our users. personnel pursuing excellence in quality and efficiency
The composition of Ausmed's quality management system and continuously learning technical standards and in-
dustry best practices to ensure that personnel possess
superb skills thereby improving product quality continu-
Description of the processes required for the quality
Decision-making level Quality manual management system and their interactions quality ously.policy and objectives.The company adheres to customer-oriented product
Procedure for the formation of documents describing
Management level Procedure documents and technology solutions with customer satisfaction
the implementation process.as the ultimate goal. In the process of development and
Operational/Regulatory
Operational level Work instruction manual growth the company will always advocate "innovation
/Policy documents consciousness service consciousness and quality con-
Execution level Record forms Record form sciousness" ensuring that the enterprise accumulates
positively in a virtuous cycle.
35WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Enhance International Service Quality
Aohua adheres to the enterprise vision of "Become a Improving User Service System providing the most important technical guarantee for the service engineers requiring them not only to complete
global enterprise advancing endoscopic care for all" Utilizing efficient after-sales management tools we mon- professionalism and effectiveness of the service. basic on-site service work but also to master sufficient
continuously expands its presence in the international itor the entire product lifecycle comprehensively includ- clinical knowledge industry background and technical
market and increases investment in international ser- ing complete product information user information and Continuous improvement of the training mechanism is principles to provide users with more professional and
vices to lay a solid foundation for market expansion. To maintenance records to provide effective data guidance the cornerstone of service team capability. Field service accurate services.meet the diverse needs of different regions the company for user service and timely inspections maintenance capabilities and experience are enhanced through on-
gradually establishes a regional service system formu- and spare parts support. Comprehensive maintenance site training and engineers are equipped with sufficient Performance management oriented towards "customer
lates service policies based on regional characteristics data reports also provide scientific and effective support product details and troubleshooting and repair capabil- satisfaction" defines the work guidelines of the user ser-
and adjusts service layouts to enhance market recogni- for product quality improvement. ities through workshop internships. At the same time vice team. We ensure responses within 24 hours and pro-
tion through tailored services. cross-departmental cooperative training is organized vide solutions within 72 hours for inquiries complaints
Enhancing Service Capability to comprehensively improve the professional skills of and suggestions from users worldwide.Strict Adherence to Laws and Regulations We establish a complementary user service system con-
We strictly adhere to ISO 13485:2016 ISO 9001:2015 MDR sisting of technical service centers authorized dealers
(EU Medical Device Regulations) quality system-related and authorized third-party repair stations according to
procedural documents and management specifications regional conditions to ensure that all users receive suf-
to establish basic user service systems and processes. ficient product service support. Regular quarterly repair
We complete customer consultations handle customer training is conducted to ensure that service organizations
service complaints adverse events and other post-mar- at all levels have sufficient repair capabilities and cover
ket regulatory control procedures as required. For the new product and skill promotion through online and
unique characteristics of international market service irregular on-site training.work the company has developed corresponding pol-
icies and processes tailored to each location to ensure Service Capability Enhancement
the compliance of the product after-sales process such We establish professional communication channels
as the "International User Service Operations Manage- between key departments such as R&D quality and
ment Specification" and the "International Quality Plan production. A dedicated technical support team is estab-
Process." lished to summarize and organize technical information
related to products into usable technical materials ser-
vice notices and guidance documents for the end-users
36WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Compliant and Efficient Procurement
Company's Operations in Compliance Efficient Procure- suspected illegal or irregular activities through compli- ous development through the construction of a resilient conduct quality system and product audits for long-
ment Risk Management and Win-Win Cooperation: ance hotlines report emails and other channels. This supply chain. term cooperative suppliers and conduct inspections for
comprehensive approach ensures effective supervision high-risk materials to ensure continuous material safety
Adherence to Compliance of corruption and bribery and ensures that employees Enhancing Supplier Management and improve supply quality. We also emphasize supplier
We consider fairness openness transparency integrity adhere to high ethical standards and principles of hones- To efficiently conduct procurement activities we have evaluation and assessment conducting annual evalu-
and honesty as fundamental principles of compliance ty and trustworthiness. Our compliance policies and sys- developed and published a "Supplier Management ations of suppliers based on multiple dimensions such
operations. We strictly adhere to relevant laws and reg- tems apply to all employees and after discovering viola- Procedure" to standardize management processes for as supply cost product quality and delivery timeliness.ulations such as the Civil Code of the People's Republic tions we implement punishment measures forming an supplier selection qualification certification monitoring If suppliers do not meet the company's cooperation
of China the Criminal Law of the People's Republic of effective closed-loop management from top to bottom. and development and supplier elimination. During the requirements or fail to meet relevant quality environ-
China and the Anti-Unfair Competition Law. We have es- supplier admission phase we organize relevant person- mental and safety management requirements we will
tablished and enhanced a compliance system including Advancing Efficient Procurement nel from the quality and R&D departments to conduct request them to make corrections based on evaluation
the establishment of an employee handbook to clarify While ensuring compliant procurement we have estab- preliminary evaluations of suppliers require all suppli- feedback otherwise we will consider terminating coop-
employees' business conduct guidelines and ethical lished a comprehensive procurement control system ers to sign a "Supplier Purchase Agreement" and key eration.standards prohibiting employees' unethical behavior. guided by the "Procurement Control Procedure" "Pro- suppliers to sign a "Quality Assurance Agreement" and
We have formulated a "Procurement Agreement - An- curement Management Specification" and "Supplier provide quality-related qualifications or certifications to On the basis of ensuring supply quality we also explicitly
ti-Commercial Bribery" to manage both employees and Management Specification" to standardize procurement ensure that the materials or services they provide meet require suppliers to fulfill their social responsibilities
suppliers in terms of professional ethics and business processes and ensure efficient procurement deci- our standards. Environmental protection and hazard- incorporating factors such as labor rights occupation-
conduct providing solid institutional guarantees for sion-making and execution processes. ous substance control are also important criteria in our al health and safety environmental protection and
the company's compliance management. Additionally preliminary evaluation of suppliers. Given equal condi- business ethics into the supplier's social responsibility
annual audits confirm the existence of any improper re- We recognize that building a high-quality sustainable tions we prefer suppliers with relevant environmental management system. We have signed "Material Suppli-
lationships or improper benefits between suppliers and and resilient supply chain is essential for robust business system certifications as alternative suppliers. During the er Environmental and Occupational Health and Safety
the company to prevent potential compliance operation- development. We have established a comprehensive reporting period all key material suppliers we used have Agreements" with key suppliers aiming to comprehen-
al risks. supplier management system and incorporated supplier obtained ISO 9001 ISO 13485 or ISO 14001 management sively improve the level of supply chain responsibility
environmental and social responsibility into manage- system certifications. and sustainable development capabilities.We explicitly advocate against bribery for both employ- ment requirements comprehensively enhancing supply
ees and suppliers set up anonymous reporting mailbox- chain risk response capabilities. We also strengthen After establishing a cooperative relationship with sup-
es and other complaint channels within the company communication with suppliers to achieve coordinated pliers we adopt a classification management principle
and encourage all employees and stakeholders to report development ensuring business stability and continu- and conduct regular inspections and visits to suppliers
37WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Supply Chain Risk Management Collaborative Development for Win-Win Cooperation Through collaborative development and win-win cooper-
Aohua Endoscopy places a high priority on supply sta- Aohua Endoscopy regards suppliers as important part- ation we are promoting the upgrading and development
bility and safety thoroughly identifying and managing ners and actively engages in in-depth communication of the industrial chain consolidating the foundation of
supply chain risks to continuously provide high-quality and cooperation with partners upstream and down- the industry. Aohua Endoscopy is committed to acceler-
products and services to society. To achieve this we stream in the industry chain driving the diversified ating the coordinated development of local supply chain
have established and continuously improved a supply production services and supply of domestic medical enterprises comprehensively.chain risk identification and management system con- equipment industry from raw materials to components
ducting effective monitoring and management of key and critical core parts. We periodically share industry
supply chain risk elements such as quality safety and knowledge and best practices with suppliers and hold
the environment. We conduct annual audits of suppliers consultations on production and quality issues in sup- Supplier Grading and Classification Management Framework
with supply quality and environmental issues and have plier processes to encourage suppliers to improve their
formulated a "Supplier Annual Audit Plan." own management and enhance the quality of material Supplier Classification Coverage rate Evaluation frequency
supply and services deepening cooperation with indus-
In response to recent global supply chain risks such as try partners and empowering industry development. A Category 100% Annual qualified supplier evaluation and on-site audit
production interruptions supply shortages and de-
clining transportation capacity we have systematically Furthermore we are committed to increasing the pro- Annual qualified supplier evaluation and based on the evalua-
B Category 100%
undertaken preventive monitoring and control meas- portion of localized procurement while ensuring the sta- tion results conduct on-site audits of suppliers as needed.ures. We have established a sound "Strategic Material bility efficiency and sustainability of the supply chain
Definition and Control" process to identify materials with driving the development of the local industrial chain. C Category 100% Annual qualified supplier evaluation
potential supply risks and promptly respond effective- Over the years there has been a limited number of man-
ly reducing the risk of potential supply interruptions. ufacturers in the domestic industrial chain capable of D Category 100% Annual qualified supplier evaluation
Additionally we have developed business continuity producing key components of high-end medical equip-
plans adjusting production plans in a timely manner ment and the technological reserves upstream and
through market dynamic analysis and insights to reduce downstream of the industrial chain are relatively limited
supply chain uncertainty and ensure stable production compared to developed countries. To break the dilemma
and timely delivery. Over the past three years through of backward technological reserves in the upstream of
various management measures such as optimizing logis- the medical device industrial chain Ausmed Endoscopy
tics management adopting diversified transportation based on its independent research and development ca-
schemes and shipping from multiple production bases pabilities has cooperated with domestic manufacturers
we have ensured the continuity of business operations for the key components or devices of products engaging
and supply stability guaranteeing stable business growth in joint innovation and has gradually realized localized
through our rapid response capabilities and risk insight. production and supply.
38PEOPLE-ORIENTED
WIN-WIN FUTURE
Aohua always adheres to a customer-oriented approach and places a strong em- We consider our employees as the most valuable asset of the company and are
phasis on human capital fostering a mutually beneficial future for employees the committed to creating a positive healthy and vibrant work environment. While
company and society. encouraging various training learning and networking activities we have also es-
tablished a robust promotion mechanism to provide solid support for employees'
career development planning. We aspire that in such an environment everyone can
continuously enhance their skills and capabilities maximizing their self-worth.WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Protecting Employee Rights and Interests
The company aims to motivate employees to grow to- Employee Rights Protection Talent Recruitment
gether with the company by comprehensively construct-
ing a position compensation system and establishing a The company strictly complies with labor-related laws The company has established a "Company Recruitment
sound medium- to long-term incentive mechanism. By and regulations continually refining the Employee Hand- Management System" to clarify personnel recruitment
reviewing various functional position systems and align- book which clearly defines guidelines for employee management and recruitment processes enhancing
ing them with the current compensation levels within hiring and departure attendance compensation safety recruitment efficiency. To meet the company's talent
the company benchmarking against market compen- regulations and other behavioral standards. We strictly needs and improve the talent selection mechanism we
sation for similar industry positions the company has prohibit the employment of child labor and forced labor conduct recruitment through various channels such as
established a position matrix and salary standards for implementing various measures during interviews and campus recruitment social recruitment and internal
various job levels that align with the company's medium- onboarding to prevent illegal employment practices. referrals.to long-term development goals.Regarding long-term incentives the company has im-
plemented an equity incentive plan to attract and retain
outstanding talent fully mobilizing the enthusiasm of
the company's core team. This plan effectively aligns the
interests of shareholders the company and individual
members of the core team encouraging everyone to fo-
cus on and drive the company's long-term development.Based on the company's strategic mid-to-long-term de-
velopment goals each organizational unit's strategic ob-
jectives are decoded layer by layer to maintain a high de-
gree of alignment between goals and action directions.To break the rigidity of performance goals and execution
the company conducts semi-annual reviews to set ad-
just and conduct performance discussions with employ-
ees achieving dynamic performance management.
40WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Fostering Employee Career Growth
Aohua Endoscopy adheres to the core value of "Sus- Furthermore we have established a dual-channel career
tained Growth" persistently driving company devel- development system for management and professional
opment through the enhancement of employee capa- technical sequences allowing employees to develop
bilities. While maintaining steady business growth we through multiple channels. This further unleashes corpo-
prioritize the growth of every employee and emphasize rate vitality and enhances organizational effectiveness.the construction of a talent pipeline. Focusing on both We actively guide employees to plan their career devel-
company and employee career development needs opment direction based on their own strengths and the
we have established a distinctive talent development continuous development needs of the company thereby
system at Olympus offering equal and open learning achieving their career development goals.and advancement opportunities for all employees. This
system aims to cultivate a professional workforce with
solid expertise refined management skills quantitative
thinking and decision-making abilities thereby promot-
ing the company's sustainable development. During the reporting period the total duration of em-
ployee training was as follows
Training and Development 7130.33 hours During the reporting period the list of training data for various types of employees
We encourage every Aohua employee to continuously
explore and diversify their efforts continuously self-im-
Category Training Coverage Ratio Average Training Duration
proving. We have built a comprehensive training system Employee coverage rate
providing employees with abundant learning resources Senior Managers 2% 25.57
and encouraging proactive knowledge and experience
sharing among teams to grow together. From new em- 60.07 % Segmented by Job Level Middle Managers 3% 22.71
ployee onboarding training to leadership training for
management teams we organize corresponding training Ordinary Employees 95% 10.14
courses in a tiered and graded manner to help employ- Average training duration per employee
Female Employees 37.5% 9.53
ees grow rapidly enhancing both employee and compa- 6.53 Segmented by Genderny competitiveness and innovation capabilities. hours Male Employees 62.5% 11.64
41WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Protecting Employee Health
We deeply understand that employee health is crucial establishing relevant systems and processes to ensure and occupational health training to enhance employees'
for the sustainable development of the company. There- proper operation. safety awareness. During the reporting period there were no work-related
fore we are committed to establishing and maintaining fatalities in the company
a safe and healthy working environment to ensure that The company's occupational health and safety manage- In 2023 a total of approximately 45 training sessions
employees can work in good conditions and prevent oc- ment system covers all employees striving to provide a were conducted including new employee three-level 0
cupational diseases and accidents. healthy and safe working environment for all employees. safety training occupational health training mechanical
We conduct regular monitoring of occupational hazards and electrical safety training and fire safety training.The company has established management systems and and take necessary measures to improve the working en- Putting people first and prioritizing employee safety
The total number of lost work hours due to work-related
procedures based on the ISO 45001/GB-T 45001 Occupa- vironment based on monitoring and assessment reports. the company has established a safety management
injuries during the reporting period
tional Health and Safety Management System clarifying We also conduct regular health checks on employees to organization to prevent production safety accidents. It
commitments to occupational health and safety and monitor their health status and provide various safety operates standardized safety production and has passed
the third-level safety production standardization certifi- 80 hours
cation. Additionally a dual prevention mechanism of risk
classification control and hidden danger investigation
and governance has been established and implemented. In 2023 a total of various safety training sessions were
The company fully implements the responsibility system conducted
for all employees' safety production and practices com-
prehensive employee safety management. In 2023 the 45 sessions
company did not experience any fatal accidents and the
total number of lost work hours due to work-related inju-
ries was 80 hours.
42POLLUTION REDUCTION
AND CARBON REDUCTION
Green development of the enterprise is our long-term goal and relentless pursuit.We firmly believe that only by protecting the environment can we achieve sustain-
able development of the enterprise and common prosperity of society. By actively
advocating the concept of green office and pollution reduction we are committed to
building a sustainable industrial ecosystem.WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
Environmental Management System
We are committed to establishing and maintaining an To further demonstrate our commitment to environmental management we have obtained ISO 14001 Environmental
environmental management system that complies with Management System certification. This certification signifies that our environmental management system meets inter-
national environmental laws and regulations to effec- national standards effectively identifies monitors and controls environmental risks and continuously improves our
tively manage and control the environmental impacts of environmental performance. Through ISO 14001 certification we not only enhance our management level but also
our business operations. We strictly adhere to laws and strengthen our sense of responsibility and sensitivity to environmental issues.regulations such as the Environmental Protection Law of
the People's Republic of China the Air Pollution Preven- We will continue to focus on the operation and continuous improvement of our environmental management system.tion and Control Law of the People's Republic of China Through various measures and practices we aim to continuously reduce our environmental impact promote the effi-
and the Shanghai Environmental Protection Regulations. cient use of resources and achieve a win-win situation for both economic and environmental benefits. We firmly believe
We continuously optimize and improve environmental that only by upholding the concept of sustainable development can we achieve our long-term business goals and con-
management policies procedures and practices to en- tribute more positive energy to society and the environment.sure that our business operations are conducted within
regulatory frameworks.
44WELCOME TO AOHUA 丨 SUSTAINABILITY MANAGEMENT 丨 CORPORATE GOVERNANCE 丨 INNOVATION AND ENTERPRISE 丨 FULFILLING RESPONSIBILITIES 丨 QUALITY UNBOUNDED PURSUING EXCELLENCE 丨 PEOPLE-ORIENTED WIN-WIN FUTURE 丨 POLLUTION REDUCTION AND CARBON REDUCTION 丨 APPENDIX
APPENDIX
"GRI Sustainability Reporting Standards" Indicator Index
Contents GRI Standard Disclosures Contents GRI Standard Disclosures Contents GRI Standard Disclosures
MESSAGE FROM
2-11 INNOVATION AND ENTERPRISE QUALITY UNBOUNDED PURSUING
THE MANAGEMENT TEAM EXCELLENCE
ABOUT THE REPORT 2-1 2-2 2-3
Research and Development Mission 3-3 Ensure Quality 3-3 416
Product Function Innovation 3-3
KEY PERFORMANCE REPORT FOR 2023 201 Enhance International Service Quality 3-3 416
Expansion of Application Fields 3-3 Compliant and Efficient Procurement 3-3 204 308 414
Medical Design Innovation 3-3
WELCOME TO AOHUA 2-6
PEOPLE-ORIENTED WIN-WIN FUTURE
2-92-122-132-142-162-29
SUSTAINABILITY MANAGEMENT FULFILLING RESPONSIBILITIES
3-1 3-2 3-3 Protecting Employee Rights and Interests 2-3 2-7 3-3 201 402 405
Fostering Employee Career Growth 3-3 401 404
CORPORATE GOVERNANCE Protecting Employee Health 3-3 403
Early Cancer Prevention 3-3 203
Rural Support 3-3 203 POLLUTION REDUCTION AND CARBON
Protection of investor rights 2-23 2-24 2-26 2-27 3-3 205 206 Charitable Donation 3-3 203 REDUCTION
Protection of intellectual property 3-3 Global Communication 3-3 203
Environmental Management System 3-3
45
