Changchun BCHT Biotechnology Co.Improving Quality and Efficacy Enhancing Value Return
Corporate Action Plan 2024
Changchun BCHT Biotechnology Co（Hereinafter as "the company" or “BCHT”）
in order to implement the "investor-centered " philosophy by listed companies and protectthe interests of all shareholders of the company articulates the “Improving Quality andEfficacy Enhancing Value Return” Corporate Action Plan 2024 to further optimize the
company’s management standardize its governance enhance its market competitiveness
and protect investors' rights and interests with active measures and better returns. This
Plan is based on the company’s confidence in current operational status and future
development prospects and is mainly covered in the field of focusing on the main business
which also promoting scientific and technological innovation and consolidating
communication with investors. The main measures are as follows:
1.Focusing on the main business development capturing more market share
with better recognition
The company always persist “Devote Biotech Today Create Health Tomorrow” as
the mission since its establishment in 2004. BCHT has been engaged in research and
development manufacturing and distribution of vaccines for human use. At present the
company has marketed includes Varicella Vaccine Live; Influenza Vaccine Live Nasal
Freeze-dried; Herpes Zoster Vaccine Live etc. Among these products the domestic
market share of Varicella Vaccine Live has been in a leading position for many years
which is one of the company’s main sources of revenue; Furthermore the Influenza
Vaccine Live Nasal Freeze-dried has been included in the WHO Global Pandemic
Influenza Action Plan and also is the only live attenuated influenza vaccine administered
by nasal spray in China which greatly improves the compliance of inoculators.In January 2023 the company's zoster vaccine marketing license application was
1approved which becoming the first zoster vaccine applicable to people over 40 years old
in China. Meanwhile this vaccine breaking the monopoly by imported vaccines in
domestic zoster prevention products filling the gap of domestic zoster vaccine market
and generating a new growth point of the company’s performance.The company has established a professional marketing management team and
extensive sales channels. At present the products from BCHT have covering 31 provinces
autonomous regions municipalities directly under the Central Government in China
except Hong Kong Macao and Taiwan and are exported to overseas countries.In 2024 the company will continue to focus on its main business in that to improve
continuously leading position in its product technology and market share also to promote
comprehensively the company's core competitiveness and industry recognition focus on
to reinforce promotion and education of vaccinees and increase the products market share.Specific measures are as follows:
The company will keep an eye on industry policy and market trends and timely adjust
sales strategies according to market changes. Meanwhile the company will rely on high-
quality varieties with obvious advantages continue to publicize product quality through
professional and efficient market services actively promote the public to prevent diseases.In accordance with the annual brand promotion plan through the community and new
media such as Douyin and Meituan BCHT will systematically carry out the publicity
work of disease and disease prevention knowledge focusing on the core advantages of
listed varieties. It will help the company to establish high quality brand concept in the
public consumption consciousness.In 2024 with the launch of the company's Herpes Zoster Vaccine Live the
company's products cover both children vaccine and adult vaccine. The company will
develop differentiated marketing strategies characterized by product features and
applicable demographics. In the tasks to consolidate the market position of existing
products the company will prioritize most of all to the promotion of zoster vaccine by
taking the first-mover advantage to increase the coverage of POV. From online marketing
aspect the company will improve constantly the digital reservation system making full
use of “online reservation+ offline vaccination”. The company will persistently explore
2publicity and drainage channels such as hospitals communities and elderly care
institutions to increase investment in science popularization education improve product
market penetration and strive to return investors with better performance.
2. Accelerate progress of research pipeline and achieve innovation-driven
development
Since its establishment the company has always adhered to the development concept
of "standardization innovation focus inclusiveness and sharing". After years of
accumulation the company has established a professional research and development
system and has a relatively complete biological vaccine laboratory and pilot workshop
which has strong research and development and industrialization capabilities in the
vaccine field. Besides that BCHT has been awarded as High-tech Enterprise by Jilin
Provincial Science and Technology Agency and approved the establishment of "Jilin
Province Vaccine Science and Technology Innovation Center"; which also has been
identified as "Changchun National Biological Industry Base Vaccine Engineering
Research Center" by Changchun National Biological Industry Base; Jilin Province
Development and Reform Commission approved the company to established "Jilin
Province Vaccine Engineering Research Center"; Moreover recognized as "Provincial
Enterprise Technology Center" by Jilin Provincial Department of Industry and
Information Technology.BCHT has established five core technology platforms: Virus culture scale-up
technology platform Formulation and adjuvant technology platform Genetic engineering
technology platform Bacterial vaccine technology platform and mRNA Vaccine
Technology Platform.On the basis of independent research and development the company attaches great
importance to the construction of innovation environment carries out various forms of
industry-university-research cooperation with domestic and foreign universities and
research and development institutions establishes close research cooperation relations. It
has established technical exchange and cooperation with Jilin University Institute of
Pathogen Biology Chinese Academy of Medical Sciences and other research institutes.In addition the introduction of technology from Intravacc NIH and other international
3partners has further improved the company's technical strength and scientific research
level.In 2024 while accelerate the project of Influenza vaccine nasal live (liquid) vaccine
and Absorbed DTaP combined vaccine (three components) the following projects will be
in safeguard to ensure progress:
Promote the registration of live attenuated nasal spray influenza vaccine series.Promote the clinical research of adsorbed acellular DTaP (three components)
combined vaccine project.The phase I clinical study of fully human monoclonal antibody against rabies virus
will be completed and phase II clinical trial will be conducted.Conduct phase I clinical trials on Rabies vaccine (MRC-5 cell) for human use and
fully human monoclonal antibody against tetanus.Besides that the company will complete preclinical studies of Influenza vaccine
(split virion BK-01 adjuvant) Recombinant herpes zoster vaccine HSV-2 mRNA vaccine（herpes simplex virus-2）and Hib vaccine to submit IND to NMPA.In addition the company will continue to promote the preclinical study of multiple
research and development projects such as RSV vaccine and antibody Alzheimer's
disease therapeutic vaccine to enhance constantly its core competitiveness.While continuing to dig deep in the field of vaccine research and development the
company continues to expand the boundaries of vaccine research and development adhere
to the characteristics of equal emphasis on research and development and production
based on innovative vaccines monoclonal antibodies and other company advantages toachieve the strategic layout of “production generation research and developmentgeneration reserve generation” to get better meet the market demand in the future.
3.Improve corporate governance and operational quality and efficiency
The company attaches great importance to the sound governance structure and the
effectiveness of the internal control system. In 2023 The Company has revised a total of
13 governance systems including the “Articles of Association” the “IndependentDirector Work System” the “Related Party Transaction System” and the “Raised FundsManagement System” in accordance with the relevant governance rules of the China
4Securities Regulatory Commission and the Shanghai Stock Exchange. The company
closely integrates the corporate development strategy with the practice of business
sustainability and attaches great importance to the guiding and promoting role of ESG in
corporate governance and production operations. In 2023 BCHT has released its first
environmental social and governance (ESG) report (the third corporate social
Responsibility report). In the future the company will continue to fulfill its corporate
social responsibility take into account the interests of shareholders employees customers
and other relevant parties in operation and management and promote the deep integration
of ESG concepts into corporate strategic decision-making daily functional management
and business operations. The same year the company won the "Top 50 Science and
Technology Leaders" award in the "First China New Cup ·ESG Golden Bull Award"
organized by China Securities Journal; In the Securities Market Weekly's "Crystal Ball
Award for Listed Companies 2023" the company won the "Most Socially Responsible
(ESG) Listed Company" award.
In 2024 the Company will strengthen the implementation and process supervision
of the new system the revised system and the important system by improving the
efficiency of operation. At the same time the company will formulate systematic publicity
and implementation plans according to the execution. The company will also
comprehensively review the original management system focusing on the level of internal
control system and the matching of information system. Through these measures the
company will provide rigorous and orderly system and process support for the operation
of the company. Further clarify the responsibilities and authority of relevant departments
form a benign internal drive for enterprise development and build a solid foundation for
the sustainable development of enterprises.Besides as “directors supervisors and senior managers” play a vital role in corporate
governance the Company will establish a continuous tracking and publicity mechanism
for regulatory regulations and developments in 2024 and actively organize directors
supervisors and senior managers to participate in various trainings held by CSRC
Shanghai Stock Exchange Pujiang Auditorium local securities regulatory Bureau and
other regulatory bodies to ensure that these key roles are familiar with the knowledge of
5the securities market. Keep abreast of relevant laws and regulations constantly improve
the awareness of risk and self-discipline and lead the company to sustainable high-quality
development.
4. Maintain steady performance growth and share the results of corporate
development with investors
The company firmly establishes the investor-based concept continuously focuses on
the main business consolidates the dominant position of the industry strives to improve
the company's performance and makes full use of cash dividends and other measures to
share the dividends of the company's development with all shareholders.The company achieved operating income of 1824.69 million yuan in 2023
compared with 1071.45 million yuan in the same period of last year that is an increase
of 753.24 million yuan grow by 70.30%;Also the net profit attributable to shareholders
of listed companies was 501.01 million yuan in 2023 compared with 181.54 million yuan
in the same period of last year it is an increase of 31.95 million yuan the rate of increase
is 175.98%;Then the net profit attributable to shareholders of listed companies after
deducting non-recurring gains and losses amounted to 493.36 million yuan compared to
166.75 million yuan in the same period of last year an increase of 326.60 million yuan
or 195.86%.Since its listing the company has carried out stable and sustainable cash dividends
and has paid cash dividends every year in strict accordance with the profit distribution
policy formulated in “the Articles of Association.” Up to now the company's total
accumulated cash dividends reached 103.21 million yuan of which the 2022 cash
dividend amount accounted for 34.11% of the company's net profit attributable to
shareholders of listed companies in the year.On March 18 2024 the Company held the 23rd meeting of the fifth Board ofDirectors and unanimously approved “the Motion on 2023 Annual Profit DistributionPlan”. In 2023 based on the total share capital the Company intends to pay cash dividends
of 1.5 yuan (including tax) for every 10 shares and cash dividends of 61926104.70 yuan
(including tax). The company's 2023 profit distribution plan has yet to be submitted to the
shareholders' meeting for consideration.
6In 2024 BCHT will formulate a scientific production plan to ensure the orderly
production and approval of vaccine products. Actively carry out the process optimization
and improvement of existing products strictly implement the product life cycle quality
management continue to promote the lean development of production quality and ensure
that products are stable timely and fully supplied to the market.The company will continue to balance the dynamic balance between performance
growth and shareholder returns according to its own development stage and the capital
needs of key research and construction projects. Besides that BCHT will also explore the
feasibility of medium-term cash dividends.adhere to the "long-term stable and sustainable" shareholder return mechanism and
share the company's development results with shareholders.
5. Strengthen communications with investors and improve the quality of
information disclosure
Since the listing of the Company the directors supervisors and senior management
have attached great importance to investor relations management ensuring that the
information disclosure is true accurate complete and timely and treating all shareholders
and potential investors of the company fairly. BCHT will always following the principles
of honesty high efficiency low consumption and interactive communication through
compliance and efficient means to promote the positive relationship between the company
and investors enhance investors' further understanding and familiarity with the company
under the premise of stable and good performance which also establish a stable and high-
quality investor base so as to obtain long-term market support. In 2023 the company
issued a total of 104 announcements and related disclosure documents including 13
announcements related to investor relations management accounting for 12.5% of the
total announcements in the year.The office of the Board of Directors is a specialized department for the company to
communicate with investors since listing through "SSE E Interactive" investor email
and the telephone of the office of the Board of Directors truthfully and sincerely reply to
investors' questions the response rate of investor questions is 100%. Based on this effort
the company establish a benign mechanism with investors.
7In terms of information disclosure through the comprehensive evaluation of the
Shanghai Stock Exchange the company's information disclosure work evaluation results
in the 2022-2023 year of information disclosure work evaluation of listed companies on
the Science and Technology innovation Board of the Shanghai Stock Exchange are A-
level. In addition the company also won the Jilin Provincial Securities Industry
Association "2023 Outstanding Practice of Investor Relations management Listed
Company in Jilin".In 2024 the Company will continue to strictly comply with laws regulations and
regulatory requirements and fulfill its information disclosure obligations truthfully
accurately completely timely and fairly including the following aspects:
a. The simplicity and clarity of information disclosure and its visualization
In 2024 BCHT will make full use of the online methods with greater coverage and
publicity influence take the company's website and public number as the publicity carrier
pass on the company's information to the majority of investors through multiple channels
and forms and constantly improve the transparency of the company's information
disclosure. Besides that during the company releases periodic reports the company will
also interpret the periodic reports in visual forms such as performance presentations and
graphic presentations and help investors understand the company's operating results more
intuitively and more simply and discover the company's value through visualization.b. Smooth communication channels for investors
The company plans to arrange a series of investor relations activities hold no less
than 4 performance presentations and the chairman/general manager will lead the team
to participate in investor interaction.In addition we will actively participate in the strategy meeting organized by the
organization invite investors to visit the company's vaccine production base offline more
than 10 times and have face-to-face communication with various investors to enhance
investors' understanding of the company's development strategy and business conditions.
6. Strengthen the responsibility of management and share the interests with
shareholders
The company formulated the "Executive Compensation and Assessment
8Management Measures” and combined with the initial equity incentive plan implemented
after listing formulated the "2022 Restricted Stock Incentive Plan Implementation
Assessment Management Measures" the relevant management measures stipulate that the
performance assessment of the company's senior management personnel and incentivize
business backbone should be combined with their own job responsibilities. Conduct
comprehensive evaluation on the company's overall development goals such as R&D
project progress sales customer development production plan product quality and
safety guarantee so as to effectively link the compensation and equity incentive
ownership of senior management personnel and business backbone to the company's
operating performance and ensure the company's healthy sustainable and stable
development.In 2023 based on the firm confidence in the company's future development prospects
and the high recognition of medium and long-term investment value in order to
effectively safeguard the interests of small and medium-sized investors and the stability
of the capital market boost the confidence of the majority of investors Mr. Kong Wei a
shareholder director and general manager who holds more than 5% of the Company's
shares increased his holdings of 187913 shares of the Company by centralized bidding
in April 2023 with an additional holding amount of 9990125.98 yuan. In October Mr.Kong Wei voluntarily issued the "Commitment Letter on not reducing the Company's
shares in the next six months" promising not to reduce all the shares of the Company held
by him in any way during the period from October 18 2023 to April 17 2024.In 2024 the company will strictly follow the requirements of relevant laws
regulations and normative documents strengthen the responsibility of the management
always adhere to the principle of good faith business improve the governance structure
with complete functions and mutual checks and balances establish a clear division of
responsibilities standardized and efficient work processes and procedures clarify the
responsibilities and objectives of all levels and departments and form a more perfect
corporate governance mechanism.It shall abide by the Company Law the Securities Law relevant laws and regulations
the rules and normative documents of the China Securities Regulatory Commission and
9the restrictive provisions on the transfer of shares in the rules of the stock exchange
strictly regulate the trading behavior of directors supervisors and high officials on the
company's stocks and put an end to violations such as short-term trading insider trading
and window period trading of the company's stocks.This action plan of “Improving Quality and Efficacy Enhancing Value Return” is
based on the current situation of the company and does not constitute a performance
commitment. In the future it may be affected by domestic and international market
environments policy adjustment and other factors with certain uncertainties. Investors
are advised to invest cautiously and be attention to investment risks.The Company will continue to evaluate the specific implementation of the corporate
action plan of “Improving Quality and Efficacy Enhancing Value Return” fulfill the
obligation of information disclosure in a timely manner actively practice the
responsibilities of listed companies and strive to actively repay the attention and trust of
investors with good performance and standardized corporate governance.Hereby notice.Changchun BCHT Biotechnology Co.Board of Directors
20-March-2024
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