CONTENTS

04 ESG assurance statement 08 About us 14 ESG performance highlights

06 Message from the executive 12 Focus on 2025 20 Feature:synergistic development of the whole industry chain to create new

quality productive forces in the traditional chinese medicine industry

E S G

Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

development and jointly painting innovation to jointly safeguard a regulations and laying a solid

an ecological home harmonious society foundation for sound operation

26 Responsibility case 50 Focus on innovation development 100 Responsibility case 122 Outlook for 2026

28 Strengthening climate governance 58 Deepening digital and intelligent 102 Strengthening the cornerstone of 124 Key performance table

transformation corporate governance

36 Improving environmental management 128 Index of indicators

62 Pursuing excellence in product quality 107 Honest and compliant business

40 Environmentally friendly operations operations 130 Feedback

76 Industry cooperation and win-win

112 Party's leadership 131 About this report

77 Upholding transparent procurement

114 Promoting responsible operation

81 Creating a harmonious workplace

118 Adhering to business ethics

93 Building harmonious communitiesChina Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT ESG assurance statement

ESG assurance statement

To: Stakeholders of China Resources Sanjiu Medical & Pharmaceutical Co. Ltd.. Statement on Independence and Verification Capability

China Quality Certification Centre Co. Ltd.(CQC) commissioned by China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. (hereinafter China Quality Certification Centre Co. Ltd.(CQC) is a third-party certification body with independent legal status possessing professional

referred to as CR Sanjiu) conducted the independent assurance of CR SANJIU 2025 SUSTAINABILITY AND ESG REPORT (hereinafter referred qualifications and experience in providing in this assurance process and possesses the technical capabilities and industry-specific

to as the ESG report). knowledge required to conduct ESG/ESG report assurance in compliance with the requirements of AA1000 Assurance Standard v3 for an

assurance provider. The assurance team is composed of experienced AA1000 Practicing Certified Sustainability Assurance Practitioners

CR Sanjiu was responsible for collecting summarizing analyzing and disclosing the information and data mentioned in the ESG report. CQC (PCSAP) CCAA (China Certification and Accreditation Association) registered quality environment energy occupational health and safety

implemented report verification within the scope specified in the agreement with CR Sanjiu. CR Sanjiu is the designated user of this statement. compliance anti-bribery and other management system auditors and APSCA (Association of Professional Social Compliance Auditors)

registered auditors.This statement was based on the assurance activities conducted on the ESG report prepared by CR Sanjiu with reference to the Guidelines for

Social Responsibility of Central Enterprises issued by the State-owned Assets Supervision and Administration Commission (SASAC) Shenzhen CQC ensured that there were no conflicts of interest with CR Sanjiu and its stakeholders during the assurance process of this report. All

Stock Exchange Self-Regulatory Guidelines No. 3 – Preparation of Sustainable Development Reports for Listed Companies Shenzhen Stock information in the ESG report was provided by CR Sanjiu. CQC and the personnel conducting this assurance of the ESG report were not

Exchange Self-Regulatory Guidelines No. 17 – Sustainable Development Reports for Listed Companies (Trial Implementation) and with involved in the preparation process of the ESG report.reference to the Global Reporting Initiative (GRI) Standards and the CASS-ESG 6.0 Pharmaceutical Manufacturing Guidelines by the Chinese

Academy of Social Sciences. It also references the ESG Reporting Indicator System for Central State-Owned Enterprises' Listed Companies by

SASAC. CR Sanjiu is responsible for the authenticity accuracy and completeness of the report content. Assurance Conclusions

The ESG report reflects the ESG performance of CR Sanjiu in 2025 which meets the requirements of AA1000 v3 and AA1000AP:

Scope of Assurance Assurance Methods

Inclusivity: CR Sanjiu has identified both internal and external stakeholders including government/regulatory agencies customers

The key data and information disclosed in the CR SANJIU 2025 The methods used in this assurance include but are not limited to: employees shareholders/executives/investors partners non-profit organizations peer enterprises and community members of the public.SUSTAINABILITY AND ESG REPORT. In the report preparation process the expectations and needs of stakeholders have been considered.a) Report review;

Materiality: Based on the analysis process of identifying dual importance issues by analyzing the standards and policy requirements of

b) Interviews； sustainable development management at home and abroad scientifically conducting industry benchmarking combining with the actual

c) Verification of documents records certificates bills and other situation and development strategy of the enterprise itself comprehensively considering resource market prices trend forecasts company

materials; costs in previous years and non-concession factors of benefits CR Sanjiu formed a list of ESG issues for this year and the importance ranking

Basis for Assurance of the issues is confirmed.d) Trusted information source verification;

AA1000 v3 Type 2 Moderate Assurance Responsiveness: CR Sanjiu has established a governance structure management system and processes as well as a communication

e) Verification against disclosure basis; mechanism with stakeholders capable of taking action to respond to the material issues of high importance and impact on CR Sanjiu and its

stakeholders.f) Recalculation/estimation; and

Impact: Through quantitative or qualitative methods or a combination of both CR Sanjiu has disclosed the main impacts on itself and its

g) Confirmation of statistical calculation/estimation processes. stakeholders in terms of ESG.Specific performance information: Based on the process and results of this assurance we have not found any deficiencies in the reliability

Limitations and quality of key data and information in the ESG report.T his assurance was conducted using sampling methods based on quantitative and qualitative risk analysis and the sampling scope was

limited to the data and information selected in the ESG report not fully tracing or independently recalculating all raw data of CR Sanjiu. Recommendations

T his assurance only covered interviews and/or document review with CR Sanjiu and did not involve external stakeholders. The specific opinions regarding the assurance of this report have been communicated to the management of CR Sanjiu in written form and

T he data and information audited/verified by a third party in the ESG report were not subject to repeated verification during this assurance will not be further elaborated in this section.process.S ome of the data and information in the ESG report cannot be compared and verified through independent sources. This assurance only

evaluated their reasonableness. President of CQC：

A ctivities outside the scope of information disclosure were not included in this assurance.March 16 2026

T he statement regarding the position viewpoints goals future development directions and commitments of CR Sanjiu was not included

in this assurance. Beijing China

04 05China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT Message from the executive

Message from the executive Party building leads and strengthens the foundation integra- foundation through superior seedling cultivation and full-process ting and empowering to promote development. We always traceability. Midstream we enhance quality and efficiency

adhere to the guidance of Party building guided by Xi Jinping's through intelligent manufacturing digital twins and cloud-

Thought on Socialism with Chinese Characteristics for a New Era based manufacturing models. Downstream we collaborate with

comprehensively implement the leadership of the Party in all medical institutions and research institutes to build an ecosystem

aspects of company management and promote the resonance integrating "production academia research medicine and

and deep integration of Party building work and business application" and lead the formulation of industry standards

development. Deepening the promotion of "learning education" facilitating the TCM industry's transition towards refined high-

and "agile action" has injected strong spiritual strength into quality development.consolidating the cornerstone of the company's high-quality

development. Deepening reform to stimulate vitality improving quality

and efficiency for a new landscape. We fully implement the

Setting a benchmark in green transformation and embarking reform tasks for state-owned enterprises continuously deepening

on a new journey of low-carbon development. We actively reforms and enhancing core functions. Centered on "technological

respond to the national "Dual Carbon" strategy aiming to become innovation industrial control and security support" we delve into

a green benchmark in the pharmaceutical industry by exploring reform initiatives driving development and implementing strategy

new pathways for the low-carbon transition of the traditional through reform. We have successfully completed the phased goals

Chinese medicine sector. The utilization rate of green electricity of the deepening and upgrading actions for SOE reforms and the

at production bases，including Guanlan CR Sanjiu (Zaozhuang) "Science and Technology Reform Action" being recognized as aand CR Sanjiu (Chenzhou) has continued to increase while "benchmark" for three consecutive years by the SASAC's Science

greenhouse gas emission intensity has steadily declined. The and Technology Reform program. We continuously improve

number of national-level green factories has grown to nine. We corporate governance fostering a new landscape for high-quality

extend our green philosophy throughout the entire industrial corporate development with greater governance efficiency and

chain by promoting ecological planting models for Chinese persistently enhancing our industry standing and brand influence.medicinal herbs constructing integrated "agrivoltaic" zero-carbon

demonstration projects and establishing a comprehensive green Advancing together for a win-win future upholding responsi-

low-carbon ecosystem covering everything from source planting bility and staying true to our mission. We continuously enhance

to terminal production. product quality and accessibility safeguarding public health

with safer higher-quality and more accessible pharmaceutical

Consolidating core business and empowering development products. We deeply integrate the inheritance and innovation of

through Innovation. Adhering to the dual-wheel drive strategy traditional Chinese medicine with rural revitalization carrying

of "Innovation + Brand" we benchmark against world-class out diverse public welfare initiatives to give back to society and

enterprises to optimize our business layout comprehensively improve people's livelihoods using our industrial strengths.expand our presence across the self-diagnosis and treatment Adhering to a people-oriented philosophy we effectively protect

field and precisely meet the public's full-cycle health needs from the legitimate rights and interests of our employees and build a

prevention and healthcare to treatment and rehabilitation. We broad platform for talent development enabling every dedicated

continue to increase R&D investment build an open innovation individual to showcase their talents and achieve their value.system and refine a series of innovation systems covering project

initiation process management incentives and "fault tolerance" Looking ahead to 2026 it will be the beginning year of the 15th

thereby stimulating innovation vitality and progressively Five-Year Plan. Standing at a new starting point for the high-quality

enhancing innovation value. Tasly has joined the CR Sanjiu family development of the pharmaceutical and health industry we will

empowering our core business and promoting the inheritance deeply implement the spirit of the Fourth Plenary Session of the

The year of 2025 marks the end of the 14th Five-Year Plan the 40th anniversary of the establishment of CR Sanjiu and a year of innovation and high-quality development of traditional Chinese 20th Central Committee of the Communist Party of China the

striving for the high-quality development of traditional Chinese medicine. As a state-owned enterprise deeply involved in the field medicine. important instructions given by General Secretary Xi Jinping to

of medicine and health we adhere to the mission of "caring for public health and creating a better life together" with CR Sanjiu the work of central enterprises closely follow the development

as the core body and collaborate with Tasly and Kunming Pharmaceutical Group to focus on the three core tracks of consumer Uniting the chain for synergy and enabling collective improve- wave of industry innovation and coordination serve the country's

health medical health and silver hair health and build a development pattern of mutual empowerment and collaborative ment. As a leading enterprise in the traditional Chinese medicine overarchingpriorities and deeply promote the "Health Priority

growth. We deeply integrate the concept of sustainable development into the full dimensions of enterprise management align industry chain we leverage "building alliances establishing Development Strategy" to take root. On the road to safeguarding

the direction under the guidance of Party building solidify the foundation in green transformation hone our strength in business platforms gathering talents and promoting cooperation" to public health we will work together with our partners to write a

deepening and unite our efforts in collaborative development. We fulfill our responsibility and mission of pharmaceutical drive quality and efficiency improvements across the entire TCM new chapter in the high-quality development of the traditional

enterprises with practical actions and contribute CR Sanjiu's strength forces to building a healthy China. industrial chain. Upstream we have established 50 standardized Chinese medicine industry!

planting bases for authentic medicinal herbs building a quality

The Chairman of China Resources Sanjiu Medical &Pharmaceutical Co. Ltd.

06 07China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT About us

About us Industry Chain Business Group - Kunming Pharmaceutical Group: CR Sanjiu and its subsidiary Kunming Pharmaceutical Group mutually empower and synergistically develop continuously focusing on the development of the Panax notoginseng industry， thebranding of "777" and "Kunzhongyao 1381" brands promoting Kunming Pharmaceutical Group to become a leading health stock in

the silver economy.Company profile

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. is a With the mission of "Caring for Public Health Creating a Better

large state-controlled pharmaceutical listed company mainly Life Together" the Company strengthens independent R&D

engaged in the research and development production sales and innovation enhances product quality control levels and

and related health services of pharmaceutical products. It was provides "safe high-quality efficient and environmentally

listed on the Shenzhen Stock Exchange on March 9 2000 (Stock friendly" pharmaceutical products and services to the public. It

Code: 000999) and officially joined China Resources Group in safeguards public health protects public interests and further

2008. builds an influential and sustainable corporate responsibility and

ESG brand.Key performance

Total assets Operating revenue "777" Panax Notoginseng Oral Series "1951" Medical Treatment Series "1381" Refined TCM Series

58804.6787 million RMB 31602.5776 million RMB

Total profit Total number of employees Industry Chain Business Group - Tasly Pharmaceutical Group: Focusing on four major therapeutic areas: cardio-cerebrovascular

4864.0792 digestive metabolism neuro-immunology and oncology it has formed a large product cluster represented by Compound Danshen million RMB 30304 Dripping Pills Yangxue Qingnao and Temozolomide providing urgently needed drugs that fill gaps in the Chinese market.

Brands and Products

CR Sanjiu's core business is positioned in the CHC

health consumer products and prescription drug

(Rx) sectors. The Company has a rich product line

and continuously enriches its varieties. CHC health

consumer products mainly cover categories such

as cold and flu gastrointestinal skin liver and

gallbladder pediatrics orthopedics gynecology

and cardio-cerebral health with core products

holding a high market share. Our prescription

drug portfolio covers therapeutic areas including

cardiovascular and cerebrovascular diseases

oncology digestive system disorders orthopedics

pediatrics and anti-infectives. Key products

include the Xuesaitong Panax notoginseng

series Shenfu Injection Tracer-use Mitoxantrone

Hydrochloride Injection Cinobufagin Tablets

and Injections Yixuesheng Capsules Yuxuebi

and Cefpirome Sulfate for Injection among

others enjoying a high reputation in the hospital

segment. TCM formula granules and Chinese

medicinal decoction pieces are dedicated to

creating "original quality and original taste" 999 Major Product Clusters

TCM formula granules and "Sanjiu Bencao Wu"

premium Chinese medicinal decoction pieces.

08 09China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT About us

CR Sanjiu possesses strong brand operation capabilities and health field focusing on the entire Panax notoginseng industry Organizational structure

has been listed multiple times on WPP's annual Top 100 Most chain it continuously enriches the "777" brand connotation

Valuable Chinese Brands list. The Company adopts a "1+N" and product portfolio expanding and strengthening the Panax China resources sanjiu medical &

brand strategy leveraging strong brand operation and resource notoginseng oral preparation category. The premium national pharmaceutical Co. Ltd.integration capabilities to build a multi-brand matrix. In the CHC medicine brand "Kunzhongyao 1381" carrying over 600 years of

field starting from the treatment of common family illnesses history is fully promoting its strategic upgrade. In the prescription

and health management it actively extends towards health drug field it owns innovation-driven pharmaceutical brands such

management and rehabilitation/chronic disease management. as "Tasly" continuously strengthening academic brand building

Based on the main "999" family essential brand it continuously through R&D innovation and combined in-hospital and out-of- Industrial Chain CHC Business RX Business

strengthens consumer-recognized pharmaceutical brands such hospital academic promotion. Business Group Group Group R&D Production and Functional Platforms

as "Tianhe" "Shunfeng" "Aonuo" and "Kangfute." In the silver

Innovative Drug Research Fuxi Laboratory

Institute Deep Blue Laboratory

Health Drug Research Institute Waterdrop Laboratory

Process Technology Research

Institute

Brand Generation and Planning Advanced Delivery

Technology Research Institute

Traditional Chinese Medicine

Resources Research Institute

National Enterprise Technology Center

National Key Laboratory for Modernization of Classical

Prescriptions in Traditional Chinese Medicine

National-Local Joint Engineering Research Center for

Key Technologies of Oral Traditional Chinese Medicine

Preparations

National Engineering Research Center for Traditional

Chinese Medicine

Key Laboratory for Traditional Chinese Medicine Quality

Research and Evaluation

Guangdong Lingnan Medicinal Resources and Modern

Traditional Chinese Medicine Manufacturing Innovation

Center

Guangdong Small Molecule Drug Innovation Center

Shenzhen Engineering Laboratory for Modernization of

Traditional Chinese Medicine and New Drug Creation

Shenzhen Key Laboratory for Quality Control of

Traditional Chinese Medicine

Shenzhen Engineering Technology Research and

Development Center for Traditional Chinese Medicine

Preparation Technology

Brand Blueprint

1011

Inspection Office

Discipline Inspection Commission Office

Audit Department

Party-Mass Work Department

Securities Affairs Department

Legal and Compliance Department

EHS Management Department

Strategy and Operations Department

Marketing Department

Investment Center

Intelligence and Digitalization Center

Guoyao Business Division

R&D Center Jilin Sanjiu Jinfukang Pharmaceutical Co. Ltd.Hangzhou China Resources Laotongjun Pharmaceutical Co. Ltd.Production Technology Center Guilin China Resources Tianhe Pharmaceutical Co. Ltd.Production Operations Center Liaoning China Resources Benxi Third Pharmaceutical Co. Ltd.Financial Management Center Guangdong China Resources Shunfeng Pharmaceutical Co. Ltd.China Resources Sanjiu (Zaozhuang) Pharmaceutical Co. Ltd.Human Resources Center

China Resources Sanjiu (Nanchang) Pharmaceutical Co. Ltd.Public Affairs Center China Resources Sanjiu (Chenzhou) Pharmaceutical Co. Ltd.China Resources Sanjiu (Huangshi) Pharmaceutical Co. Ltd.Guanlan Production Base

Innovative Prescription Drug Business Division Shenzhen Jiuxing Printing & Packaging Group Co. Ltd.Zhejiang China Resources Sanjiu Zhongyi Co. Ltd.Guoyao Business Division

Shenzhen China Resources Jiuxin Pharmaceutical Co. Ltd.Beijing China Resources Gaoke Natural Medicines Co. Ltd.China Resources Sanjiu (Ya'an) Pharmaceutical Co. Ltd.Health & Wellness (Shenghai) Business Division

Hefei China Resources Shenlu Pharmaceutical Co. Ltd.Professional Brand Business Division Anhui China Resources Jinchan Pharmaceutical Co. Ltd.Aonuo (China) Pharmaceutical Co. Ltd.OTC Business Division China Resources Sanjiu (Tangshan) Pharmaceutical Co. Ltd.

777 Business Division (China Resources Shenghuo)

Kunming Pharmaceutical Kunming Traditional Chinese Medicine 1381 Business Division

Group Co. Ltd. (600422.SH)

KPC1951 Business Division

Innovative Biologics Pipeline

Tasly Pharmaceutical Group (600535.SH) Specialized Pipeline for Innovative Chemical Drugs

Core Pipeline for Innovative Traditional Chinese MedicineChina Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT Focus on 2025

Focus on 2025

Capital market recognition Driving technological innovation Advancing in-depth development

Received the highest "A" grade in information Recognized as a "National High-Tech Enterprise" for the sixth consecutive S igned strategic cooperation agreement with Zhengzhou University jointly establishing the "Zhengzhou University - CR Sanjiu Innovative Drug

disclosure assessment by the Shenzhen Stock time Research Institute

Exchange for 11 consecutive years Selected for the Ministry of Industry and Information Technology's first batch H eld strategic cooperation signing ceremony with Baoding Municipal Government and China Resources Power for North

A warded multiple honors including "Investor of "Excellent-Level Intelligent Factory" projects China Production Base construction

Relations Management Shareholder Return Award" Participated research project Reducing Minor Stoppages of SGA40 Liquid S igned strategic cooperation agreement with Yunnan University of Chinese Medicine

and "Investor Relations Management Tianma Award Filling Machine won the International Gold Award at the 50th International C ollaborated with Nanjing Aierpu Regenerative Medicine to develop China's first self-developed HiCM-188 (iPSC-derived

R eceived multiple honors such as the 2024 "Golden Convention on Quality Control Circles (ICQCC) cardiomyocyte drug)

Information Disclosure Award" "Top 100 Most Participated smart park project "5G+AI Injecting New

Valuable Mainboard Listed Companies" and "2025 C ollaborated with Bright Gene Pharmaceutical on the BGM0504 injection project research and developmentMomentum into the Digital Transformation of the TCM

Capital Power Annual Selection Excellent Listed Industry" won the Bronze Award in the Benchmark S ubsidiary Kunming Pharmaceutical Group re-qualified as a General Contractor Enterprise for the Ministry of Commerce's

Company Award" Competition of the Ministry of Industry and Information Foreign Aid Material Projects

W on multiple major awards including "Investor Technology's "Blooming Cup" 5G Application Competition A warded First Prize in the "2025 State-Owned Enterprises Deepening Reform Practice Achievements

Relations Management Shareholder Return Award" Received the "2025 Digital and Intelligent Technology

"Investor Relations Management Tianma Award" Innovation Model (Case)" honor from Enterprise

"Outstanding Partner Award for Factory Exploration Management magazine

100" "10th Shuangpinhui Outstanding Partner" and

"5th Starsailor Conference Partner" Awarded the "2024 Science and Technology Innovation

Achievement Gold Award

Received honors such as "2024 Annual

Report Performance Briefing Best "Public Auxiliary IoT Group Control System" project officially Promoting sustainable development together

Practice" "2025 Listed Company launched

Board of Directors Best Practice Case"

and "2025 Listed Company Board

Office Best Practice Case" A warded an "A" rating by MSCI an "AA" rating by Wind

Selected for the "2025 Greater Bay R eceived honors including the "3rd Guoxin Cup ESG Excellence Central Enterprises Golden Bull Award" "ESG Golden Bull Award Central Enterprises Deepening product R&D

Area Listed Companies Corporate Top 50" and "Securities Star ESG New Benchmark Enterprise Award"

Governance TOP 20" L isted on "China Enterprise Supply Chain ESG Top 100 Index" (Jingniu Index) awarded "Jingniu · Supply Chain ESG Pioneer" "2025 China Supply

New product "999 Yiqi Qingfei Granules" officially launched and included in Chain ESG Management Demonstration Enterprise" and "2025 China Supplier ESG Rating Platform Initiating Unit"

the National Reimbursement Drug List C R Sanjiu 2024 Sustainability ESG Report was awarded the "Five-Star Top Tier" rating by the Chinese Academy of Social Sciences the "Excellence

Acquired exclusive rights for innovative drug Huakesi (Tilorist Tablets) in A+" rating in the Golden Bee Corporate Social Responsibility Report evaluation and "China Resources Group 2024 Annual ESG Sustainable

Advancing brand building Mainland China Development Bronze Award"

Domestic first generic "Selenium Disulfide Lotion" approved for market A warded the GoldenBee 2025 "Corporate Social Responsibility · Leading Enterprise" Award

Received the 2024 New Fortune Magazine Best Listed launch S elected for the China Environmental Protection Federation (CEPF) 2025 China Corporate

Company "Most Trendy National Brand Power" honor Classical famous prescription TCM compound preparation Banxia Baizhu ESG 100 Index

Won Securities Star's "2025 Capital Power Annual Tianma Granules approved for market launch R ecognized as a "2025 Responsible Practice Public Welfare Project"

Selection Excellence Brand Award "Sijunzi Granules" and "Shaoyao Gancao Granules" approved for market A warded First Prize in Enterprise Management magazine's "2025 Enterprise ESG Excellent

Selected for the SASAC's "Benchmarking World-Class launch in Macau Achievement (Case)"

Enterprises Value Creation Action Excellent Case Cefoxitin Sodium for Injection obtained marketing authorization in the UK S elected as an excellent case in the China Enterprise Supply Chain ESG Blue Book (2025)

"Xiao'er Anshen Buna Granules" selected for the third Ceftizoxime Sodium for Injection approved for market launch C R Sanjiu (Nanchang) received the Ministry of Industry and Information Technology's

batch of "Lingnan Famous Prescriptions

Fulvestrant Injection and Ertapenem Sodium for Injection approved "National Green Factory" honorary title

" Sanjiu Weitai" brand recognized as a "Guangdong

"Metronidazole Gel" approved for market launch S elected for the Sina Finance "2025 China Corporate ESG Top 100" listTime-Honored Brand

Ranked on the "2025 Asia Brands 500" "China Brand "Loxoprofen Sodium Gel Patch" approved for market launch

Internationalization Benchmark 100" and "Ipsos 2025 "Minoxidil Topical Solution" approved for market launch

China Brand Influence Index 29th Place" Pro-urokinase cerebral infarction indication approved

A warded the titles of "8th Vice President Unit of China Ceftriaxone Sodium API approved for market launch

Non-prescription Drugs Association" and "Executive

Director Unit of China Corporate Culture Research The introduction of the innovative glioblastoma drug dordaviprone is

Institute" currently undergoing Phase I clinical research

12 13China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT Sustainability management

ESG performance highlights Sustainability management

S

Social performance Sustainability and ESG concepts

CR Sanjiu is committed to sustainable development and ESG relationships with customers suppliers and employees. In

Environmental performance Proportion of Female Employees in Management management guided by the principle of "Creating Value for our production and operations we actively promote green

Positions: 44% Shareholders Providing Opportunities for Employees and and low-carbon practices aligning with the "Carbon Peak

Assuming Responsibility for Society." We have effectively and Carbon Neutrality" policies by implementing energy-

Total Environmental Protection Investment: 66.5718 Labor Contract Signing Rate: 100% integrated the concepts and goals of sustainable development saving and emission-reduction initiatives. Additionally we are million RMB into the overall development strategy of the pharmaceutical dedicated to charitable and public welfare endeavors such as

Employee Training Coverage Rate: 100% industry embedding it across all stages of the product lifecycle rural revitalization community development and emergency

Major Pollutant Discharge Compliance Rate: 100% including medicinal herb cultivation pharmaceutical R&D disaster relief. By coordinating our corporate activities with social

Fatalities from Safety Accidents: 0 and health consumption. While pursuing economic growth and environmental goals we strive to achieve harmonious and

Clean Energy Consumption: 10796.25 tons of we prioritize safeguarding the legitimate rights and interests sustainable development for both the Company and society.standard coal Participation in Formulating 1 International of shareholders and creditors and maintain fair and honest

Standard 13 National Standards

Comprehensive Energy Consumption: 131900 tons 4 Industry Standardsof standard coal

Number of Factories Recognized as Advanced-level Sustainability and ESG work implementation

Industrial Water Reuse Rate: 79.79% Smart Factories: 9 CR Sanjiu continuously enhances the sustainable development out its annual sustainable development and ESG initiatives closely

General Industrial Solid Waste Recycling Rate: Domestic and International Quality-related Standard and ESG implementation mechanism. Guided by the CR Group's integrating its business activities with sustainable development

98.96% "14th Five-Year Plan" for social responsibility the Company carries management to drive high-quality and sustainable growth.System Certifications Obtained: 24

Total Industrial Water Saved: 21892708 tons Charitable Donation Expenditure: Approximately

4.7044 million RMB Governance framework

Promoted Area of Medicinal Material Planting Bases: CR Sanjiu consistently enhances the sustainable development management system and optimizes its corporate governance structure.

444700 mu Self-built or Co-built Primary The Company has established a top-down sustainable development and ESG governance framework with clearly defined responsibilities

Processing Bases: 20 involving the Board of Directors the Management and the Sustainability Working Group. This collaborative structure drives the Company's sustainable development initiatives and elevates the level of ESG governance.Governance performance Board of Directors

Proportion of Female Directors: 18.18% Number of Shareholders' Meetings Held: 8， Management Team

number of Board Meetings Held: 15

Anti-Corruption Training Coverage Rate: 100% Public Affairs Center

Employee Ethics Training Coverage: 100%

Total Employee Training Hours for Anti-Corruption: 145606 hours

Sustainability Working Group

Received the Highest Rating 'A' in the Shenzhen Stock Exchange

Information Disclosure Assessment for Eleven Consecutive Years

Awarded "Best Practice for Annual Report Performance Briefing" Each Department Each Center Business Divisions Subordinate Business Units

by the China Association for Public Companies for Four Consecutive Years

14 15China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT Materiality management

Management guidelines Evaluation and assessment Materiality management

The Board of Directors of CR Sanjiu consistently strengthens CR Sanjiu encourages all subsidiaries to implement sustainable

the oversight of sustainable development and ESG matters development and ESG practices in alignment with their business

driving continuous improvements in the Company's sustainable development needs and resource capabilities. Each subsidiary CR Sanjiu rigorously adheres to the process of dual materiality assessment scientifically conducts stakeholder questionnaire surveys

development governance system and ensuring the integration of is urged to undertake or participate in relevant responsibility and identifies materiality issues to direct the sustainability management and information disclosure efforts thereby better fulfilling the

ESG considerations into the Company's major decision-making fulfillment projects based on its specific circumstances fostering expectations and demands of stakeholders.processes and business operations. deeper progress and impact in these initiatives.CR Sanjiu established the Management Measures for Social The Board of Directors has established a Compensation and Impact materiality assessment

Responsibility Work of CR Sanjiu which was revised in 2025 and Evaluation Committee responsible for researching formulating

officially took effect and was implemented thereafter. The policy and reviewing compensation policies and plans for the

applies to all centers departments divisions and business company's directors and senior management. The compensation

units within the Company. In alignment with these measures structure for senior management of China Resources Sanjiu Issue identification Issue survey

CR Sanjiu continuously refines its sustainable development consists of three components: base annual salary performance- By analyzing standards and policy requirements Conduct questionnaire surveys on material issues

indicator system and enhances performance management based annual salary and medium to long-term incentives. We for sustainable development management both for both internal and external stakeholders including

practice communication report compilation and dissemination have integrated sustainability performance indicators such domestically and internationally conducting scientific shareholders/investors employees customers

as well as evaluation and assessment within its sustainable as environmental performance anti-corruption efforts and industry benchmarking and integrating the actual government/regulators partners competitors media

development management framework. compliance operations into our current incentive remuneration situation and development strategy of the Company an non-governmental organizations and the general

policy. We conduct annual reviews and evaluations of our senior

By 2025 CR Sanjiu has prepared and published social responsi- issue database comprising 46 topics was established public in the communitymanagement's performance and disclose information on the

bility reports for 17 consecutive years with steady improvements remuneration of the Board of Directors and management in our

in both the "quality" and "quantity". Starting in 2022 CR Sanjiu annual report. For further details please refer to the CR Sanjiu

effectively integrated key ESG indicators with CSR indicators 2025 Annual Report.upgrading its original Social Responsibility Report to a Sustainable

Development Report. In 2023 the Sustainable Development

Report was further upgraded to a Sustainable Development and

Capacity building Issue prioritization Issue reviewESG report.CR Sanjiu organizes annual professional training sessions for Based on the survey results of the materiality issues The Company's management along with external

the management and all members of the Sustainability Working we prioritized the issues in terms of the "importance experts reviewed the results of the issue assessment

Statement of the board Group. These sessions aim to review the achievements of the to business development" and "importance to and finalized 28 materiality issues for key disclosure

The Board of Directors of CR Sanjiu holds the overall year's sustainable development and ESG management efforts

stakeholders within the report

responsibility for sustainable development and ESG-related share the latest trends in sustainable development and discuss

matters while the Company's management is tasked with industry best practices to enhance the Company's sustainable

managing the sustainable development and assessing the risks development and ESG management performance. Additionally

and opportunities associated with the Company's sustainable CR Sanjiu actively participates in domestic and international

development. Under the Board of Directors a Sustainability communication and exchange activities related to sustainable

Working Group has been established to implement and follow up development. The Company also collaborates with partners Financial materiality assessment

on tasks assigned by senior leadership. The Public Affairs Center and social responsibility/ESG research organizations to conduct

is responsible for the daily management and coordination of relevant training programs. Experts from CR Sanjiu's Finance Department assessed the financial impact of the issues based on the two dimensions of "continuity

sustainable development initiatives. Additionally each center of access to resources" and "dependence on relationships".department business division and subsidiary is responsible for

advancing and implementing sustainable development work at Key performance

the frontline of business operations. Identification of Considering the internal and external environments of the Company analyze whether the Company

the continuity of can sustainably secure relevant capital resources in the short medium and long term taking into

This report provides a detailed disclosure of the progress and During 2025 CR Sanjiu conducted access to resources account the impact of various ESG material issues.effectiveness of CR Sanjiu's sustainability and ESG initiatives

in 2025. Moving forward the Board will continue to refine and 65

optimize the Company's ESG governance framework. Analysis of the

dedicated training programs on sustainable dependence on

Analyze whether the Company can sustain positive relationships if it fails to adopt best practices for

relationships each material ESG issue.development amounting to

Risk and opportunity identification 3915.23

The Board of Directors operating within the framework of the

existing internal control and risk management system evaluates class hours with Considering the market price of resources trend forecasts the Company's costs in previous years

the risks and opportunities associated with the Company's Financial and non-revenue factors we assessed the impact on profits. The Finance Department experts

environmental social and governance (ESG) factors. It identifies 4513 materiality Sustainability Working Group management and Board of Directors at CR Sanjiu among others

oversees and manages issues and activities related to ESG analysis successively reviewed and ultimately confirmed the agreement. We identified a total of 28 materiality

governance to ensure the effective implementation of the participants involved. issues of which 9 issues have double materiality and 1 issue is deemed to have financial materiality.sustainable development strategy.

16 17China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT Stakeholder communication

CR Sanjiu Double Materiality Issues Analysis Stakeholder communication

9 Identify the key stakeholders of CR Sanjiu explain their expectations and demands and outline the communication channels and

1 responsible communication actions that CR Sanjiu takes to respond to their expectations.

67

4

5 2 Stakeholders Communication needs Communication Response

198

18 321 Daily communication Implement management requirements

25 13 14 15 Government/ Working meetings and project reporting Supporting rural revitalization

22 Regulatory E SG/Sustainable Development System Construction

16 System C reate jobs11 10

2627

17 Customer satisfaction survey S trengthen quality and safety supervision24 20 2328 C ustomer Relationship Management Expand the Health and Wellness Business12

Client P roduct quality and safety management I mprove customer satisfaction Actively handle customer complaints

C omplaints and Feedback Protecting employee rights

T raining activities C aring for employees' lives

Staff Performance feedback Promote career development

Improve the democratic communication mechanism

High Importance to the Company's Financial Performance High

Improved operating performance G uarantee reasonable investment returns

Multi-channel communication Improve the quality of information disclosure

Shareholders/ I mprove governance capabilities Maintaining investor relations

Serial Serial Hold an earnings briefingImportance Issue Importance Number Issue

Executives/

Number Investors Improve media communication channels

1 Product/Service Quality Management 16 Adhere to the Party's leadership

2 Product/Technology R&D and Innovation Protecting the rights and interests of Supplier Management Training C ompliance Management 17

Protect customers' legitimate rights and small and medium-sized investors Exchange and discussion meeting Anti-corruption3 interests Optimize workflow

18 Advocating for scientific and rational

Partners

Deepen project cooperation

Dual 4 Deepen digital transformation drug use

Importance

Issues 5 Protect employee rights 19 Advocating responsible marketing and consumption I mplementing "dual carbon targets" A ddressing climate change6 Occupational health and safety Green Operations Energy conservation and emission reduction

7 Waste/Emission Management 20 Promote career development Non-profit R aise environmental awareness E nvironmental protection

8 Addressing climate change Impact Improve environmental management organizations Environmental protection publicity and education

9 Anti-corruption and anti-bribery Materiality

21 system/environmental compliance

Issues management

Financial Forums and conferences P romote industry development

Materiality 10 Honest and compliant business 22 Energy conservationoperations Working group Discuss business opportunitiesIssues 23 Optimize resource utilization E xchange activities Conduct joint research and development

11 Strengthening risk management Peer companies24 Protecting biodiversity E xperience exchange and sharing

Participate in ESG industry exchanges

12 Strengthen the construction of a Impact 25 Promoting Supply Chain Accountabilitysustainable development system

Materiality 13 Intellectual Property Protection 26 Promote industry developmentIssues C ommunity communication C arry out community service activities

14 Upholding pharmaceutical ethics 27 Supporting rural revitalization Community S ocial welfare activities H ealth knowledge promotion

Implementing rural revitalization

15 Creating business value 28 Promote cooperation and exchange public

1819

High Impact on the Economy Society and the Environment HighChina Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT Feature:synergistic development of the whole industry chain to create new quality productive forces in the traditional chinese medicine industry

Feature: synergistic development of the whole As the core unit for the construction of the traditional Chinese medicine (TCM) industry chain within China Resources Group CR Sanjiu aligns closely with the national strategy of revitalizing and developing traditional Chinese medicine

industry chain to create new quality productive with high quality. Adopting a path of whole-industry-chain collaboration the Company systematically builds new quality

forces in the traditional chinese medicine industry productive forces in the TCM industry through source control intelligent manufacturing innovative R&D and industrial integration leading the modernization and upgrading of the sector.Laying a solid foundation: constructing a "national chessboard" layout for medicinal herbs Innovation and research: uncovering classics and filling market gaps

CR Sanjiu adheres to an innovation-driven strategy conducted by the First Teaching Hospital of Tianjin University

Understanding that "good herbs make good medicine" CR primary processing bases decoction piece processing bases increasing R&D investment and building a research system of Traditional Chinese Medicine and other institutions have

Sanjiu continues to increase investment in the medicinal herb and warehouse centers. By the project period the total area known as the "Six Institutes and Three Laboratories" which confirmed its effectiveness in alleviating symptoms such as

planting sector focusing on creating a national "chessboard" of medicinal herb planting bases exceeded 440000 mu includes the Institute of Traditional Chinese Medicine fatigue and shortness of breath in convalescent patients. The

layout for authentic medicinal herbs. The Company and five regional warehouse bases have been constructed and the Institute of Innovative Drug Research. On March launch of this product fills a gap in the market and marks

combines internal raw material needs with its strategy for in the Northeast Southwest Central China Northwest and 282025 at the First Traditional Chinese Medicine Industry the achievement of full-scenario coverage in CR Sanjiu's

large-scale products to comprehensively screen major South China. This realizes a nationwide network covering Interconnection Conference CR Sanjiu in collaboration respiratory product portfolio.authentic medicinal herbs such as Panax notoginseng wild the process from source to warehousing laying a solid with the team led by Mr. Zhang Boli an academician of the

chrysanthemum Isatis indigotica and Lonicera japonica. It material foundation for the high-quality development of the Chinese Academy of Engineering officially launched the

identifies core production areas and has established a "four- traditional Chinese medicine industry. first Category 3.2 new TCM drug—999 Yiqi Qingfei Granules.in-one" layout nationwide encompassing planting bases This drug is the first innovative TCM medicine officially

approved by the National Medical Products Administration

specifically for treating comprehensive symptoms during

the convalescent phase of respiratory infections. Adapted

from classical formulas such as Shengmai San and Pingwei

San its core effects are replenishing Qi and nourishing Yin

and strengthening the spleen and harmonizing the stomach.Forging excellent quality with end-to-end assurance from source to production Multi-center randomized double-blind clinical trials The launch ceremony of Yiqi Qingfei Granules

Cultivating fine varieties and standardized planting for source control

CR Sanjiu focuses on key varieties establishing a expanded to 440000 mu. The Company has also established

development model that integrates "breeding of improved national-level seed and seedling bases to ensure quality

varieties promotion of breeding establishment of bases from the source promoting understory ecological planting Stimulating systematic momentum: industry chain integration and value co-creation

base-specific products and products with market access." and courtyard planting models. This initiative has increased

The Company has successfully bred nine new medicinal farmers' per-mu income to nearly 3000 yuan benefiting

herb varieties including wild chrysanthemum and Gangmei 10447 farmers creating over 50000 jobs and generating Connecting whole-chain management and strengthening esg synergy

achieving a breakthrough from "no cultivation" to "improved an industrial output value exceeding 150 million yuan. This

varieties" for wild medicinal materials thereby mastering has achieved a win-win situation for ecological protection CR Sanjiu integrates ESG principles throughout the entire chain "traffic light" risk alert mechanism has been established

the "the core seed and seeding resources." At the same industrial efficiency and farmers' income growth. "from seed to end product." The Company has innovatively featuring 12 warning indicators to actively identify and

time the Company actively promotes the development of developed a "supplier tiered rating + targeted empowerment" address potential supply chain risks thereby fortifying supply

Good Agricultural Practices (GAP) for Dao-di herbs. It was system covering six key topics including environment and chain security. This approach drives the transformation of

among the first to pass GAP extension inspections in several labor to conduct ESG ratings and dynamic management of suppliers from "passive compliance" to "active value creation"

provinces including Guangdong Anhui and Sichuan it suppliers. By December 2025 comprehensive ratings had achieving deep synergy and sustainable development across

has now had 17 varieties pass the inspection. Through been completed for 12 core suppliers. Concurrently a dynamic all links of the industry chain.standardized management across the entire process—from

seed selection standardized planting to harvesting and Activating rural vitality and empowering people's livelihood

processing—the Company fundamentally ensures the stable

and reliable quality of medicinal materials.In recent years CR CR Sanjiu deeply integrates the traditional Chinese medicine models such as understory planting courtyard economy

Sanjiu has developed a standardized wild chrysanthemum industry chain into the national rural revitalization strategy. The and "agrivoltaic synergy" (combining medicinal planting with

planting industry in the Dabie Mountains region (Hubei Company has cumulatively established 440000 mu of Chinese photovoltaic power generation) have been actively promoted

Henan Anhui) covering Hong'an (Hubei) Jinzhai (Anhui) medicinal materials planting bases. Through models such as achieving a cumulative carbon emission reduction of over 1.86

and Xinyang (Henan) in cooperation with local farmers and "Company + Cooperative + Farmer" farmers are integrated into million tons. These initiatives not only ensure the supply of high-

cooperatives. Through models such as "contract farming" the standardized production system. The projects have developed quality medicinal materials but also transform the TCM industry

and "Company + Cooperative" the planting area has CR Sanjiu Wild Chrysanthemum Planting Base in Jinzhai Anhui six germplasm resource nurseries for medicinal plants collecting chain into a new driver for rural employment increased farmer

and protecting over 500 species. In terms of green development income and ecological environmental protection.

20 21China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT FeaFteuaretu: rsey:nseyrngeirsgtiics tdice vdelvoeplompemnte notf tohf et hweh wohleo ilned inudstursyt cryh acihna tino ctore carteea ntee wne qwu qaluitayl iptyr opdroudctuivceti vfoer fcoersc eins tinh et htrea tdriatdioitnioaln cahl icnheisne smee mdiecdinicei nined inudstursytr y

On September 25 2025 at the 2025 Hong Kong International effectively fostered industry-wide consensus on promoting

Promoting the essence of Chinese medicine: enhancing global brand influence with culture as the soul Traditional Chinese Medicine Conference held at the Hong traditional Chinese medicine culture but also established

Kong Convention and Exhibition Centre CR Sanjiu together a synergistic pathway between cultural dissemination

CR Sanjiu is committed to promoting the heritage of TCM upstream breeding and cultivation of genuine medicinal with Tasly Kunming Pharmaceutical Group Bauhinia Culture and industrial development in the field of TCM. During the

culture and brand internationalization. The Company has materials to midstream smart manufacturing plant Group and in collaboration with time-honored brands and conference the report Decoding Going Global: Research on

built a "1+N" brand architecture evolving from a single "999" construction and downstream international expansion and related institutions such as Yunnan Baiyao Pien Tze Huang Brand Building and International Communication Strategies

product to the 999 master brand covering multiple health cultural promotion. Classic products such as Compound and Tong Ren Tang jointly initiated the "TCM Culture Co- for TCM Culture was also released. It has established a

scenarios. Danshen Dripping Pills and Qizhi Weitong Granules were Construction Initiative." This initiative called on the entire systematic methodological framework to strengthen corporate

also showcased. This participation demonstrated the industry to "jointly protect cultural roots expand cultural brand building and overseas dissemination of traditional

From July 16 to 20 2025 at the third China International determination and capability of the central state-owned dissemination share cultural achievements and promote Chinese medicine while injecting cultural momentum into the

Supply Chain Expo held in Beijing CR Sanjiu representing the enterprise in leading the high-quality development of the cultural globalization." This distinctive event has not only high-quality global expansion of TCM.China Resources Group's "Healthy Living Chain" participated traditional Chinese medicine industry and serving global

with the theme of "Building a High-Quality Modern Chinese health while reinforcing its brand image of collaborative

Medicine Supply Chain." The Company systematically innovation across the industrial chain.presented a comprehensive industry chain landscape—from

The 2025 Hong Kong International Traditional Chinese Medicine Conference

China Resources Sanjiu Exhibits at the 3rd China International Supply Chain Expo Gaining broad recognition: setting industry benchmarks through excellent practice

CR Sanjiu's practice of creating new quality productivity for the Ministry of Industry and Information Technology's first

through whole-chain synergy has received high recognition batch of "Excellent-Level Intelligent Factories." Additionally

from the government industry and society. The Company's the project Construction and Demonstration Application of

supply chain ESG system was awarded the "China Enterprise the Theory and Technical System for Ecological Planting of

Supply Chain ESG Innovation Practice Award" and its projects Chinese Medicinal Herbs in which the Company participated

received honors such as the "Excellent Practice Case of won the Second Prize of the National Science and Technology

Rural Revitalization for Listed Companies" and the "Golden Progress Award. These accolades reflect CR Sanjiu's

Bee Corporate Social Responsibility · Leading Enterprise leading role in promoting the standardization greening

Award." In the field of intelligent manufacturing the Company intelligentization and sustainable development of the TCM

became the first pharmaceutical company to achieve a Level industry.

4 intelligent manufacturing maturity rating and was selected

22 23E

Adhering to the principles of green

development and jointly painting an

ecological home

National requirements

Green development is a defining feature of Chinese modernization.We firmly establish and practice the concept that green mountains

and clear waters are golden mountains and silver mountains. With

carbon peaking and carbon neutrality as the driving force we will work

together to promote carbon reduction pollution reduction ecological

improvement and growth build a solid ecological security barrier and

enhance the momentum of green development.——Suggestions for the 15th Five Year Plan

Our response

Guided by Xi Jinping Thought on Ecological Civilization CR Sanjiu

actively implements the national carbon peaking and carbon

neutrality goals integrates the concept of green development into Contribution to the United Nations Sustainable Development Goals

the entire production and operation process continuously promotes

energy conservation and emission reduction resource recycling and

environmental management system construction builds an efficient

clean and low-carbon green operation system and contributes CR

Sanjiu's strength to safeguarding green mountains and clear waters.Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Walking in step with energy efficiency and compliance safeguarding the long term

through operations

Focusing on environmental compliance and risk prevention the Base has simultaneously

advanced the automation upgrade of its wastewater station and the electronic

Responsibility case management of hazardous waste solidifying the baseline for green operations. The automation upgrade of the wastewater station addressed pain points such as equipment

aging and inadequate monitoring enabling linked management of wastewater and

exhaust gas early warning for excessive emissions and improving wastewater treatment

efficiency and precise control. This generates an annual benefit of RMB 130000 and

with plans to achieve self-operation and maintenance by 2027 it is expected to save Guanlan Base Industrial Wastewater

approximately RMB 600000 in management fees annually. The electronic management Treatment Automation Control System

Responsibility cases

of hazardous waste through whole-chain digital control achieves paperless traceability from weighing and coding to reporting

resulting in a win-win situation for ecological and environmental protection and management efficiency.Advancing innovation and demonstration together setting benchmarks across the industry

Advancing toward greener production parks with continuous low-carbon efforts

Green and low-carbon transformation cannot be achieved overnight. Guided by the concept of "whole-link low-carbon synergy" the

Production operations represent a core arena for enterprises to fulfill their ESG responsibilities

and a critical front in responding to the national carbon peaking and carbon neutrality Guanlan Base has broken through the limitations of single-link energy conservation constructing a model of comprehensive digital coverage

strategy. As the headquarters production unit of CR Sanjiu the Guanlan Base has consistently and forming a low-carbon operation model driven by both "technology and management." The project has a total cumulative investment

pursued green and low-carbon development as its core objective. Leveraging the advantages of RMB 6.39 million reduces carbon dioxide emissions by approximately 1196.4 tons annually and lowers energy consumption and

of intelligent manufacturing and digital technology it has been continuously advancing the maintenance costs by RMB 310000. The relevant experience has been extended to other factories such as Zaozhuang and Chenzhou as well

integrated innovation of green low-carbon and intelligent control—from high-efficiency as other business units within the Group.energy transformation to digital and intelligent environmental management and from single-

link energy conservation to whole-chain synergy. The goal is to create a more energy-efficient

environmentally friendly and sustainable production park for employees setting a green

development benchmark for the industry.Integrating green development with intelligent control to enhance efficiency in every

process

The park employs a dual-drive approach of "technological transformation + digital

management" deeply advancing the construction of high-efficiency air-conditioning rooms

and the establishment of IoT group control systems to reshape energy management models

with digital intelligence. Through innovation in the operation mode of air compressor systems

and the integration of intelligent controls over steam air compression and refrigeration station

indicators the high-efficiency air-conditioning rooms have achieved systematic energy savings

saving 1.2 million kWh of electricity annually with an energy-saving rate of 40%. The IoT group

control system constructed in three phases integrates the Internet of Things edge computing

and AI algorithms to form a "1+1+9" public auxiliary management model. This achieves full

coverage of group control for nine types of public auxiliary scenarios including compressed

air and central air conditioning. After optimization by intelligent control algorithms the air

compressor and air conditioning systems have achieved energy-saving rates of 15% and 15.28% Guanlan Base Carbon Asset Management Platform System Diagram

respectively truly enabling "one-screen overview and global optimization."

Thanks to its technological innovation and remarkable results the project has been recognized as a National Green Factory and has received

multiple honors including the Harvard Business Review's Annual Green Development Enterprise Award. It has also obtained two computer

software copyrights and participated in the drafting of the *Group Standard for Industrial Artificial Intelligence Algorithms*. It has become a

replicable "Green Factory" model for the pharmaceutical industry providing a practical pathway for low-carbon development in the sector.Future outlook

We will continue to advance the upgrading of the integrated green low-carbon and intelligent control project deepen the deployment of air-

conditioning Agents and the iteration of algorithms develop an appointment module for the electronic management of hazardous waste

and strive to build a near-zero-carbon park. In accordance with the strategic plan for the 15th Five-Year Plan period we will focus on safe and

green development as well as digital and intelligent transformation actively benchmark against world-class enterprises explore integrated

Guanlan Base High-Efficiency Refrigeration Station Configuration Diagram operation and management of "energy–environment–carbon" and steadily advance toward the goal of carbon peaking.

2627

26Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Strengthening climate governance

Climate risk assessment

The intensifying challenge of global warming and the cascading impacts of climate change are progressively transmitting from natural We have developed a comprehensive risk management plan for climate change covering all aspects of risk identification analysis and

ecosystems to economic and social spheres posing a direct threat to the human living environment and developmental security. Against management. To better understand the impact of policy change market changes and extreme weather events on the company's operations

this backdrop actively addressing climate change and advancing the green and low-carbon transition have become imperative paths for and to more readily respond to different scenarios the company drew on Shared Socioeconomic Pathways (SSPs) at the Intergovernmental

enterprises to achieve high-quality sustainable development. CR Sanjiu integrates the concept of green and low-carbon development Panel on Climate Change (IPCC) and public climate scenarios from International Energy Agency (IEA) and in line with the company's "dual-

throughout its entire production and operation process. Through measures such as technological innovation optimization of the energy carbon" agenda we selected two relevant scenarios: low-emission and high-emission scenarios to examine the impact of major physical risks

structure and improvement of production processes the Company solidly advances its multi-dimensional carbon reduction efforts. It also and transition risks on the company's operations. We used the IPCC SSP1-2.6 and SSP5-8.5 scenario models to evaluate potential physical risks

promotes the construction experience from the Guanlan near-zero carbon park project continuously building a sustainable green ecosystem. with the IEA 2050 Net Zero Emissions (NZE) and Stated Policies Scenario (STEPS).Addressing climate change Physical risk Transition risk

Resource and environmental issues are common problems facing Resources Sanjiu Carbon Emission Management Measures" and SSP1-2.6 SSP5-8.5 NZE STEPS

mankind and green development has become a globally accepted referring to the Science Based Targets initiative (SBTi) approach (Low-emission scenario) (Very high-emission scenario) (Net Zero Emissions by 2050 scenario) (Stated Policies Scenario)

norm. We actively respond to the climate change initiative of set greenhouse gas reduction targets for the 14th Five-Year Plan

the Paris Agreement effectively implement the national goals period. At the same time based on the TCFD framework we

of "carbon peaking and carbon neutrality" and improve our systematically identify risks and opportunities associated with This scenario sets up an This scenario mimics a This scenario assumes the possibility This scenario assumes the

carbon emission management system in accordance with the climate change improve risk management strategies standardize ideal scenario in which future in which economic and impacts of achieving global net- trends of energy demand

"Requirements and Guidelines for Carbon Emission Management data disclosure and comprehensively enhance our capacity and global CO2 emissions growth depends largely on zero greenhouse gas emissions by and supply without

Systems." We developed documents such as "China Resources response to climate change. reach net zero by energy-intensive industries 2050. Under this scenario countries considering the introduction

Sanjiu Carbon Peaking Medium- and Long-Term Plan" and "China around 2050. with virtually no policy will introduce stringent policies of any new policies or

constraints. increase the adoption of energy-saving measures.Governance technologies and reduce reliance on fossil energy.A strong governance framework and clear management responsibilities are key to an organization's ability to effectively address climate

change. We attach great importance to addressing the risks and opportunities associated with climate change and have established a

three-tier governance structure: Board of Directors—EHS Committee – EHS Management Department and other agencies businesses and Climate resilience assessment

subsidiaries.Physical Risks: The company's operations may be affected by frequent severe weather events and rising average temperatures.Strategy

Contextual drivers Potential Impacts

In addressing climate change risks we adhere to the principle of giving equal value to climate change mitigation and adaptation while

simultaneously enhancing the Company's short- medium- and long-term capabilities to respond to climate change. We also require our

businesses to develop action plans.Frequent extreme weather events: Heavy rainfall can Extreme rainfall events have become more frequent

lead to hazards such as surface water accumulation and intense increasing the likelihood of floods and

Optimize industrial structure and layout follow resource conservation and efficiency optimize energy management flooding and landslides which can adversely waterlogging especially in low-lying industrial areas.and energy use structure continue to develop and utilize renewable energy clarify energy and carbon reduction affect industry production and efficiency as well as This increases the risk of instability in the company's

targets take six major actions for carbon peaking build near zero / zero-carbon industrial parks professionally transportation and logistics. production operations and supply chain logistics as well

Mitigation develop the energy management system continuously improve energy systems improve energy information system as increases the risk of asset loss resulting in higher costs.architecture strengthen green and low-carbon capacity building incorporate energy management performance

into the performance evaluation of enterprises at all levels and energy management personnel and strengthen

accountability. Further explore effective measures to reduce energy consumption and greenhouse gas emissions.Strengthen monitoring of extreme weather rapidly obtain weather information establish and upgrade

communication systems with relevant government agencies strengthen inspection and maintenance of equipment Increasing average temperatures: With rising average

facilities and electrical equipment develop emergency plans form emergency teams and immediately implement temperatures businesses need to invest heavily to

Increasing average temperatures can increase

Adaptation emergency plans to minimize damage. Investigate and breed traditional Chinese herbal medicines with good ensure and maintain an appropriate level of production

plant operating costs such as increased electricity

consumption and infrastructure maintenance costs.environmental resilience and rich medicinal components and promote their cultivation; Build photovoltaic- and work.medicinal herb complementary projects plant medicinal plants in shaded areas under photovoltaic panels to reduce

the impact of high temperatures on plants.

28 29Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

The Company anticipates heavy rainfall and flood risks and has developed emergency plans including specialized flood control and CR Sanjiu 2025 Climate Change Risks and Response Strategies

lightning protection measures. At the same time the company is constantly improving the design of flood drains and improving the Time

construction of defences. The company has not yet faced significant compliance pressure and experienced few operational or supply Risk Type Risk description Response strategies horizon

disruptions due to severe weather. To meet future challenges the company will continue to improve its climate change response Due to the impact of global warming P rovide timely warnings of natural disasters

initiatives strengthen disaster early warning and response mechanisms and promote the use of sustainable procurement practices climate instability has increased with strengthen disaster prevention and response

to ensure its continued sustainable operations. Furthermore we will continue to assess key climate risks and opportunities upstream more frequent and intense extreme systems and establish coordinated emergency

of the value chain understand their critical impact on CR Sanjiu production and performance strengthen climate resilience in the weather events. Extreme weather response measures for polluted weather.industry value chain select and breed high-quality traditional Chinese medicinal herb varieties with strong environmental tolerance conditions can cause health problems acute risk injuries and disruptions in production Require all relevant units to prioritize disaster Long term

and rich medicinal components and promote their cultivation follow the principles of genuine herbal cultivation and germplasm and transportation which can affect prevention and response with enhanced

and seed-source conservation and ensure sufficient growth of herbal plantations for several years before harvest to assure adequate the company's normal operations and management focused on key areas including

medicinal components. cause changes in the value chain such buildings/structures new/renovation/expansion

as supply chain and business demand projects and warehousing/logistics to ensure

resulting in direct or indirect losses. effective disaster preparedness and avoidance.Transition Risks: Under the influence of low-carbon transition-related risks the company faces transition-related risks primarily due A nalyze artificial herb cultivation methods

to increased efforts in low-carbon practices across regions including tightening of low-carbon transition policies and development summarize and develop technical guidelines

and implementation of low-carbon technologies. promote cultivation of herbs in their authentic

Sustained high temperatures can environments and conservation of genetic

Physical reduce yields and complicate herb resources and select suitable sites for

Contextual drivers Potential impacts risk conservation potentially increasing

cultivation. Long term

procurement and labor costs. B uild a photovoltaic-medicinal plant

complementary project planting medicinal

plants in shady areas under photovoltaic panels

chronic to reduce the effect of intense heat on the plants.Low-carbon transition regulations and policies are When various carbon reduction laws and policies risk Encourage energy-saving retrofits of air

becoming increasingly stringent: With national carbon are proposed and enforced the company may incur conditioning systems such as the use of more

peaking and carbon neutrality goals carbon reduction increased operational costs in order to meet compliance energy-efficient permanent magnet synchronous

policies for the pharmaceutical industry are becoming requirements such as increased costs for purchasing As pharmaceutical production and variable frequency centrifugal water storage trading allowances as a result of its inclusion in the storage require low-temperature dual-condition units.increasingly stringent. conditions more energy will be Medium carbon trading program. consumed under warming scenarios E ncourage industrial construction of rooftop term

increasing operating costs. photovoltaic power generation projects.Installation of solar panels in the roof can reduce

the temperature in the factory building to some

extent.Risk of non-compliance arising Strengthen the study and analysis of laws

law risk from more stringent environmental regulations standards and policies and actively protection and carbon emission laws communicate and network with relevant Long term

Low-carbon technology development and Increased costs resulting from improvements in regulations standards and policies. government agencies.deployment: As the industry transitions to a low-carbon

mechanism the demand for equipment upgrades and energy-intensive equipment and the development of

The "dual carbon" program will directly

affect the company's environmental S trengthen study and research on relevant

the development and deployment of energy-efficient and technologies that reduce energy consumption and protection investment and indirectly policies and procedures maintain effective

carbon-reducing technologies increases. reduce emissions. affect its product portfolio production communication with government officials be

capacity and scale. To achieve the Paris familiar with state and local carbon trading

Agreement's greenhouse gas emissions strategies and conduct timely carbon trading.goals domestic and international

governments are progressively Promote the experience of CR Sanjiu Guanlan's

modifying carbon emissions trading near-zero carbon industrial park project across

To manage transition risks we proactively identify and monitor relevant policy requirements strengthen carbon emissions controls and policy risk control systems and controlling all businesses and encourage businesses to build Long termnear-zero/zero carbon industries.continue to develop and implement energy-efficient and carbon-reducing technologies. We improve production efficiency and energy carbon emissions. Expected increases Transition

efficiency by optimizing existing processes and implementing new production technologies; boost production energy efficiency through in greenhouse gas costs combined risk with the shrinking number of carbon Encourage eligible business units to collaborate

intelligent control equipment reduce electricity losses and retrofitting low-energy equipment; implement energy savings and carbon allowances issued by governments with specialized institutions to develop

reduction management through condensate recovery installation of piped heat exchangers air compressor waste heat recovery and will require the underlying key carbon demonstration projects for carbon sinks in medicinal herb cultivation and to conduct

boiler waste heat recovery ; more efficient use of excess energy at various levels; and build and optimize an energy data management emitting units to purchase more carbon

system to implement refine energy management. allowances or CCERs to meet their

research on corresponding carbon sink

obligations increasing operating costs. methodologies and standards.Strengthen carbon emissions management

training assign dedicated staff and be effective

Climate change risk list in developing carbon emissions management

Human With a shortage of skilled professionals plans managing carbon assets and trading

Based on climate change risk scenario analysis and using intuitive experience-based analysis method and based on past observed Resources the Company needs to invest more carbon.climate risks we fully considered factors such as industry trends market changes technological advances local policy guidelines risk people and money in reducing carbon

Long term

emissions. Establish a database of experts and collaborate

and geographies and extreme weather events. This designation is integrated with the company's overall risk management strategy with research institutes organizations and third-

to enhance the performance of climate change risk management across the entire value chain . The climate transition risks we face party institutions to conduct research on carbon

include physical risks and transition risks. The key climate transition risks and corresponding strategies are shown in the table below. reduction.

30 31Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Risk Type Risk description Response strategies Time Impact risk and opportunity managementhorizon

E ncourage participation in the formulation of

green manufacturing standards the application Climate change risk management

for green manufacturing-related patents and

the evaluation of green products and jointly

explore and research energy-saving and Drawing on COSO's internationally recognized risk management framework and combining it with operational needs we developed a top-

emission-reduction equipment with specialized down "three lines of defense" risk management framework which clearly defined the organizational structure and allocation of responsibilities

institutions and promote the upgrading of such

equipment. for climate change risk management. Based on documents such as the China Resources Sanjiu EHS Hazardous Source Management Measures

Vigorously promote intelligent manufacturing and the China Resources Sanjiu Environmental Risk Classification and Grading Evaluation Measures we established a standardized climate

Additional operating costs that may arise and through the integration of industrialization change risk management. The company conducts risk management through a "six-step approach" of risk identification risk assessment risk

technology from replacing and upgrading outdated and informatization equipment upgrading response risk monitoring risk evaluation and risk reporting and implements a structured management model of "first identification business

risk technologies that have significant and scientific scheduling realize continuous Long term

negative impacts on climate change. manufacturing of major product varieties further self-management and follow-up audit oversight."

improving production capacity and energy

efficiency.Continue to implement energy-saving

technological transformation. Promote the

application of new energy-saving technologies Opportunity management

processes and equipment improve relevant

incentive systems promote green technologies We identify opportunities for climate change from the perspectives of resource efficiency and energy substitution and analyze their impacts as

and products and support the development of

green and low-carbon industries. detailed in the table below.Encourage all businesses to actively practice

greening in the factory area build a "garden CR Sanjiu 2025 Climate Change Opportunities and Response Strategies

factory" and invite communities schools

and consumer groups to visit the factory

environment. Type of opportunity Opportunity description The Impact of opportunity Time horizon

Pharmaceutical manufacturers adopt green

packaging which requires packaging to meet reuse

reuse and recycling requirements; and promote Recycling and reuse of waste to further

Consumers' preference for green research and development of green packaging

market risk products can lead to changes in through the business unit - Jiuxing Printing.achieve waste reduction and resource Reduce operating costs. long

Long term

consumer preferences. P romote green and low-carbon transportation recovery.Transition by collaborating with logistics partners to

risk explore scientific dispatch methods optimize transport structures and reduce intermediate Resource efficiency Use the most efficient production Increase productivity and increase

links and inefficient shipments. Advocate for the

adoption of alternative clean energy sources technologies and methods. revenue.long

prioritize the replacement of fuel-powered

vehicles with new-energy vehicles cut fuel

consumption enhance logistics efficiency and

contribute to carbon reduction goals. Reusing greywater and reducing water consumption. Reduce operating costs. long

Stay informed of key investor concerns and

market trends. Guided by our mission of

"Caring for Public Health Creating a Better Life

Together" we go beyond providing high-quality To reduce the risk of future increases in

health products. We are committed to enhancing Clean energy and renewable energy

public health literacy shouldering broader social alternatives.fossil fuel prices reduce reliance on fossil By 2060

responsibilities and implementing the "Healthy fuels and reduce operating costs.China" strategy across multiple dimensions.Regularly identify climate-related risks and Energy substitution

opportunities and refine our response measures. This reduces the risk of greenhouse

We actively support the climate goals of the Promote experience in developing near- gas emissions thereby reducing their

Investors are increasingly concerned Paris Agreement thoroughly implement the zero/zero-carbon parks and explore CCER By 2060

about climate risk response measures national "dual carbon" targets and collaborate project development. sensitivity to changes in carbon trading

reputation taken by investee companies and non- with upstream and downstream partners to prices.risk compliance with industry requirements fulfill our shared responsibility for ecological and Long term

can damage a company's reputation in environmental protection.the investment market. Leverage occasions such as World Environment

Day Energy Conservation Awareness Week and

National Low-Carbon Day to conduct awareness

campaigns. We actively participate in relevant

promotional and training activities organized Carbon peaking initiative

by government departments and professional

associations. The Company also discloses

its climate change response information in a We actively implement national "carbon peaking and carbon neutrality efforts" strategies and have drafted laws such as the China Resources

timely manner through its official website and Sanjiu Energy Resource Conservation Management Measures and the China Resources Sanjiu Carbon Emission Management Measures to

platforms like Sina Finance and social media regulate and guide system-related energy consumption and carbon reduction implementations. We encourage all levels of our companies

showcasing CR Sanjiu's positive image in green

and low-carbon development. to incorporate carbon efficiency and carbon neutrality into all aspects of business development and production activities focusing on implementing the "Six Major Actions for Carbon Peaking" and taking more action to address energy conservation and carbon reduction.

32 33Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Green energy development and alternative uses

Actively promote the development replacement and deployment of green energy and coordinate the development and construction Case Study

of distributed photovoltaic projects by qualified businesses to improve renewable energy utilization rate. By 2025 we will continue

to promote renewable energy development and deployment through facilities such as Chenzhou Sanjiu Shenyang Sanjiu Kunming

Pharmaceutical Company China Resources Jinchan and Guanlan Base through energy storage contracts photovoltaic (PV) project(s) In June 2025 China Resources Sanjiu Zaozhuang

construction and grid connections. Currently photovoltaic (PV) project(s) at Chenzhou Sanjiu Shenyang Sanjiu and Guanlan Base Company hired a third-party verification body to perform a

have been completed while those at other facilities are under construction. comprehensive audit of the company’s product carbon

footprint (CFP) within its accounting boundary. The CFP audit

In 2025 CR Sanjiu's total renewable energy consumption reached 83.6827 million kWh of which 12.5813 million kWh was generated report was based on a full product life cycle which assessed

and consumed on-site. the environmental impact of the product throughout its

lifecycle and thus enabled corresponding measures to reduce

emissions. Through audit and statistical analysis four of

the company's products—Cold Relief Granules Isatis Root

Granules Children's Cold Granules and Cold and Fever Relief

Case Study Granules—met the requirements of ISO 14067:2018.Ganmaoling Granules Product Carbon Footprint Certificate

China Resources Benxi Sanjiu Pharmaceutical Co. Ltd. and China Resources Power have jointly developed a distributed

photovoltaic power generation project. The 1712.16kW distributed photovoltaic project was constructed using the roof of one color

steel-tile workshop three concrete roofs and two parking lots (newly constructed newly built PV carports). It is fully connected to

the grid and commissioned in 2025. By 2025 total energy generation reaches 1.79 million kWh of which 1.72 million kWh is self- Metrics and targets

generated and self-consumed achieving an autonomous energy efficiency of 95.81%. This saved 566 tonnes of conventional coal

and reduced carbon dioxide emissions by 1472 tonnes. In response to the country's "carbon peaking and carbon neutrality" strategy CR Sanjiu has established and routinely implements a

greenhouse gas inventory and verification methodology based on the Science Based Targets initiative (SBTi) approach and relevant

national local and industry regulations. For several consecutive years the company has conducted comprehensive carbon emissions

data inventory and verification and has built a traceable and verifiable carbon emissions data system. This provides robust data

support for phasing in emissions reduction targets monitoring the effectiveness of measures and transparent disclosure of climate

We will actively promote the innovative application of low-carbon zero-carbon and information ensuring that emissions reduction targets are anchored to scientific baselines actions are measurable and results are

negative-carbon technologies. traceable.This is achieved by continuously intensifying energy-saving and carbon reduction retrofits which include implementing energy-

efficient power system upgrades enhancing lighting and intelligent control systems upgrading waste heat recovery systems phasing Target Current developments

out obsolete production capacity optimizing process technologies and improving energy management measures. These efforts

collectively serve to effectively enhance our energy utilization efficiency. Between 2021 and 2025 the intensity of carbon dioxide emissions In 2025 greenhouse gas emission intensity was

will decrease by 2% per year. By 2025 this index will be 10% lower 0.1398 tCO2e/RMB10000 which is 39.27% lower

than the 2020 baseline of carbon dioxide emission intensity. than the 2025 target value.Case Study From 2021 to 2025 total energy consumption per additional Total energy consumption per 10000 yuan of

10000 yuan will decrease by 1.6% per year. By 2025 this index will value added in 2025 (at normal prices) is 0.1019

be 8% lower than the baseline of total energy consumption per (tons of standard coal/RMB10000) which is 7.2%

Kunming Pharmaceutical Group has upgraded the hardware and software of air-conditioning units in its oral product line. Through 10000 yuan of 2020 value added. lower than the 2025 target.key measures such as replacing valves and steam traps welding repairs partial replacement of damaged steam/condensate

pipelines of the air-conditioning units and optimization of the air-conditioning control mode it achieved energy savings and

consumption reduction. Important results: 8% reduction in single regenerative heating power saving 55200 kWh of electricity per By 2027 CR Sanjiu will further improve the management systems

year (equivalent to 30000 yuan) reducing daily steam discharge by 0.2 tons and saving 16000 yuan in annual heating costs. and mechanisms for energy conservation and environmental

protection as well as carbon peaking and carbon neutrality

advance green and low-carbon development make major The Company's energy consumption and

progress in energy structure adjustment gradually form emissions benchmark targets for 2025-2027 have

green production and lifestyle and fully complete the energy been successfully achieved.Accelerated development of the carbon asset management system conservation and emission reduction assessment targets for the

2025–2027 term assigned by the Company.

CR Sanjiu actively established and improved its carbon asset management system designed a systematic carbon emissions management

and comprehensively enhanced the company's carbon emissions management work. Companies in the carbon trading market have been

supervised to ensure compliance. Guanlan Base China Resources Jiuxin Jiuxing Printing and Tasly Modern Chinese Medicine completed The proportion of green factories will reach 45% by 2027-2028; and Currently there are 9 national-level green

the preparation and verification of carbon emissions reports in a timely manner and the quality of the data met the requirements. They also 60% by 2029-2030. factories 4 provincial-level green factories and 5

fulfilled their obligations on schedule by prioritizing the use of carbon allowances coupled with carbon trading. China Resources High-Tech was municipal-level green factories.removed from the list of key emission entities this year.

34 35Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Improving environmental management Environmental management partnership structure

We place a high value on ecology and environmental stewardship establishing a three-tier governance structure: Board of

CR Sanjiu strictly complies with the requirements of applicable laws and regulations such as the People's Republic of China Environmental Directors – EHS Committee – EHS Department and other departments business divisions and subsidiaries. By 2025 in line

Protection Law the People's Republic of China's Water Pollution Prevention and Control Law and the Republic of China's Environmental with the company's "One Body Two Wings" strategic plan we will optimize the EHS management model enhance the EHS

Impact Assessment Law. It actively implements the Building a Beautiful China strategy continually improves its environmental management Committee add appropriate staff from Tasly and Kunming Medical Group create integrated management.system establishes an effective full-service control system from source prevention to end-of-pipe treatment strengthens environmental

audits and early risk warning thereby laying a solid foundation for green development and supporting CR Sanjiu's high-quality sustainable

development. Environmental management policy

We continue to improve our environmental management system covering multiple aspects including EHS program building and

quality (including environmental protection) EHS committee management EHS culture building legal and regulatory identification

Improve the environmental management system and compliance management EHS risk source management risk classification and identification control energy conservation and environmental protection management pollutant prevention and control and project implementation management EHS

department "three simultaneities" management supervision and monitoring EHS demonstration base management carbon

We are committed to establishing a scientifically sound disaster emergencies coordinate regular emergency drills for emission management risk and incident management performance evaluation and more.systematic and effective environmental management system and environmental incidents enhance ecological and environmental

we encourage our companies to actively pursue certification of conservation efforts reduce environmental damage and pollution

environmental management and energy management practices. losses and improve our ability to prevent and respond to Environmental risk management

We strengthen emergency management for environmental environmental pollution incidents.We have developed and implemented relevant measures such as the "China Resources Sanjiu EHS Hazard Source

Management Measures" and the "China Resources Sanjiu Environmental Risk Classification and Grading Evaluation Measures"

to strengthen the management of key EHS hazard sources. We monitor each business unit on a monthly basis to ensure

accurate compliance with containment requirements assign top ten risk sources to the critical phase of monitoring based on

Key performance indicators risk classification management rules and regularly report on the status of our company's EHS risk source management. At the

same time we have combined "China Resources Sanjiu Pollutant Prevention and Control Management Measures" and "China

Resources Sanjiu Energy Conservation and Ecological Environment Protection Supervision and Management Measures" to

At the end of the Reporting Period monitor and regulate our subsidiaries in fulfilling their primary responsibilities front.

19 10 Improve emergency mechanisms

subsidiary companies have passed ISO 14001 certification subsidiary companies have passed ISO 50001 certification To improve environmental incident response performance we developed and implemented policies such as "China Resources

Sanjiu's Comprehensive Environmental Emergency Plan" and "Detailed Rules for EHSQ Incident Management at China

Resources Sanjiu." Our subsidiaries based on central office policies rules relevant policies standards and policy documents

including and in line with their own unique circumstances developed and submitted their own environmental emergency plans to local

ecological and environmental authorities. We conduct regular emergency drills training and investigations. By 2025 a total of

18 9 696 drills have been conducted with 18403 participants significantly improving the skills of the workforce.

of our facilities have achieved green facility certification at the state level 4 at the provincial level

and 5 at the municipal level EHS improvement project

We are implementing the EHS basic capacity enhancement project and have developed the "China Resources Sanjiu (Youyang)

Pollutant and greenhouse gas reduction targets for 2020–2025 Pharmaceutical Safety Improvement Support Program (2025)". The annual grant was completed on schedule and results

were achieved. Seven units have launched the digital platform for the dual prevention mechanism strengthening the EHS

have been achieved management foundation and improving the level of EHS management.

696 Conducted environmental protection training

emergency EHS drills were conducted in 2025.In 2025 senior managers and employees participated in China Resources Group's 2025 Environmental and Environmental

Protection Personnel Capacity Training and Certification Programme. Trainees were supervised to complete the training and

certification in a timely manner. There were 115 participants of whom 110 passed the examination and obtained qualification

certificates with a certification rate of 96.65%.

36 37Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Environmental audit Conduct publicity and education

To fully improve environmental management and prevent environmental risks we continuously improve our environmental audit To solidify the foundation of green development and build consensus on ecology and environmental sustainability among all

work develop and implement appropriate environmental audit policies conduct regular internal and external environmental employees we adhere closely to eco-culture building requirements aiming to actively instill environmental ideas in everyone with

audits strengthen construction environmental audit classify and coordinate environmental risk factors and use EHS information regular multi-sector environmental publicity and education. We innovate public outreach and education improve communication

management system to realize closed-loop tracking of corrective actions for hidden risks through the EHS information management and closely integrate environmental knowledge with practical action effectively promote environmental responsibility awareness and

system thereby we effectively improve the level of risk prevention. the work ethic of all employees promote the transformation of environmental knowledge into rational action responsibilities of.Establish environmental audit policies

Case study: china resources benxi sanjiu pharmaceutical co.ltd. conducts energy conservation and

To standardize environmental compliance evaluation and potential hazard investigation CR Sanjiu has formulated an emissions reduction training

environmental audit system and adheres to the CR Sanjiu EHS Supervision and Management Measures the CR Sanjiu EHS

Hazard Source Management Measures. It classifies and manages environmental risks in accordance with the Measures

for Classifying and Grading Environmental Risk Assessment Environmental Risk Classification and Grading Evaluation China Resources Benxi Sanjiu Pharmaceutical conducted low carbon practices and disseminated relevant national

Methodology. Additionally subsidiaries and business units have formulated supporting regulations including the EHS general knowledge training for its employees including energy policies and procedures and the company's specific energy

Management Compliance Evaluation System and the EHS Hidden Risk Investigation and Remediation System. consumption and emission reduction training achieving and low carbon initiatives.

100% employee coverage. This has allowed energy efficiency

and environmental education to reach every person

Internal environmental audits creating a new green and low carbon corporate culture

and continuously strengthening employees' knowledge

of environmental protection and carbon reduction. On

We conduct annual internal environmental audits covering 100% of our production-oriented subsidiaries by 2025. Regarding National Low Carbon Day the company showcased its

emergency management safe operation of environmental protection equipment and facilities solid waste management energy accomplishments in energy and low carbon performance

conservation and environmental qualification certificates and procedures 10 environmental hidden hazard inspections and in recent years covering aspects such as deploying new

enhances environmental hazard classification and control. We have designed specific environmental remediation measures and energy technologies and completing energy and emissions

warning training for businesses in the business units located in the regions covered by the third round fourth and fifth batches of reduction targets. At the same time all employees watched

Central Environmental Protection Inspections. We have statistically analyzed and guided enterprises on the use of environmental the 2025 National Low Carbon Day promotional video which

protection equipment and monitoring equipment to ensure the equipment is operating safely and stable. In 2025 the carbon popularized professional knowledge of energy efficiency and Energy Conservation Training at China Resources Benxi Sanyao

footprint has been included in internal environmental audits. The Compound Dexamethasone Acetate Cream manufactured

at the Guanlan plant has been awarded the ISO 14067:2018 product carbon footprint certification making it the first CR Sanjiu

product to receive this relevant international carbon footprint certification.External environmental audit

Case study: china resources shunfeng conducts energy conservation report week and low carbon day

In 2025 we conducted external environmental audits covering subsidiaries at all levels including commissioning third parties activities in 2025

to conduct environmental risk assessments and compliance evaluations providing support in the inspection of automatic

monitoring equipment and the management of environmental protection facilities government-led clean production

audits greenhouse gas emissions report verification organized by the competent ecological and environmental authorities From June 23 to June 29 2025 the company held 2025 Energy Awareness Week and National Low-Carbon Day activities

and online and offline environmental audits with environmental officials at all levels. At the end of Reporting Period 21 under the themes of " Energy Conservation and Efficiency Leading the Way and Innovating " and " Carbon Pioneers Green

subsidiaries enterprises have conducted cleaner production audits 15 of which are voluntary. Future" respectively creating a strong atmosphere of energy conservation and low-carbon practices and enhancing employees' awareness of ecological and environmental protection. Promotional posters and instructional videos were

displayed through the company's LED electronic displays employee rest areas employee canteens WeChat groups

Environmental protection management of construction projects and work groups to broadcast and raise

environmental awareness disseminate

environmental concepts improve energy

We have programs such as "China Resources Sanjiu Energy Conservation and Environmental Protection Monitoring and efficiency establish and champion the action

Control Measures" "China Resources Sanjiu Pollution Prevention and Control Management Measures" and "China Resources principle of "breathe together and strive

Sanjiu Construction ‘Three Simultaneities' Maintenance Measures" specifying that new specifying that new renovation and together." cultural economic green and low-

expansion projects must conduct environmental analysis risk assessment and environmental impact assessment and obtain EIA carbon chapter policies and lifestyles.approval. During project implementation we conduct "three simultaneities" monitoring strictly enforce the pollution prevention

and control measures outlined in the environmental impact assessment and approval documents and conduct completion

environmental protection acceptance and filing upon completion. We legally obtain all qualifications licenses and regulations

specified by the local authority ensuring that they are within their validity cycles. In 2025 we reviewed 11 environmental

engineering subprojects and other environmental protection projects covering new renovated and expanded projects. China Resources Shunfeng Industrial Park

38 39Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Environmentally friendly operations Promote green office practices

We actively promote green office practice and help our companies develop a positive corporate culture of resource and energy

efficiency. Through initiatives such as actively promoting paperless office operations strengthening office asset management and

The harmonious balance of nature is the life giving fertility and survival of countless life forms and is the foundation for the sustainable reducing office energy we guide employees to incorporate green and low-carbon concepts into their daily routines and lives.development of human civilization. We always hold nature in awe acutely mindful of our responsibility to protect the ecosystem follow eco-

friendly principles and through various measures such as optimizing resources reducing pollution and waste and conserving biodiversity. Promote paperless office practices. Actively promote information technology development develop OA programs Rmeet

videoconferencing and online training. Most office work can be completed with these systems greatly improving productivity.Optimize resource utilization Advocate for and promote paperless office processes within the company to reduce paper use and waste; office documents can be edited and emailed.We place a high value on resource management and are office practices which maximize the recycling of various resources. Strengthen office supplies management. Improve purchasing ordering and standardizing office supplies to extend their life. Do not use

committed to developing a production and operations model By 2025 the proportion of renewable energy in China Resources office supplies and equipment made of wood; encourage afforestation; actively carry out factory greening and build a "garden factory"

that is resource efficient and circular. This happens by promoting Sanjiu's total energy consumption increased to 8.19%. to provide employees with a healthy green work environment.waste recycling managing watersheds and promoting green

Reduce office energy consumption. Turn off computers printers fax machines etc. immediately after work to reduce electrical waste.Replace lighting in low-light areas such as corridors and hallways with low-energy lighting and have property managers turn them off

Circular economy immediately after work to save electricity.CR Sanjiu focuses on strengthening resource utilization throughout the production process and actively promotes circular economic

practices. For various manufacturing resources such as pharmaceutical herbal residues packaging waste and industrial wastewater it

maximizes resource value and reduces environmental impact through scientific measures such as legal cooperation contract recycling Key performance indicators

and recycling thus helping to create production and operations model based on resource recycling.Industrial wastewater reuse. The Company reuses treated compliant industrial wastewater for makeup water in exhaust gas treatment At the end of the Reporting Period

spray tower collects rainwater for irrigation in plant area reuses boiler condensate for boiler feedwater and uses wastewater generated by

the purified water production equipment for makeup water in circulating cooling tower and exhaust gas treatment spray tower thereby

maximizing water conservation. 20283 Environmental protection training reached

training participations in environmental protection 12071 people

108 287018 hours

Comprehensive utilization of Chinese medicinal herbal residues. Waste packaging is recycled and reused. China

After the production and supply of raw materials China Resources Resources Sanjiu Zaozhuang Company signed participations in environmental public welfare activities of environmental protection training

Benxi Sanjiu Pharmaceutical Company generates remaining a "Paper Box Turnover Box Recycling and Reuse

herbal residues (herbal dregs). In accordance with the relevant Agreement" with its suppliers which enables

provisions of the Civil Code of the People's Republic of China and turnover boxes containing medicine boxes to be

the Environmental Protection Law of the People's Republic of China recycled sorted and returned to suppliers for Rmeet has conducted more than Total meeting duration

an agreement was signed with the Xianwen Family Farm in Hailang post-use ensuring a green circular operation. This

Township Fushun County to use the residue to feed cattle and could save nearly 3200 traditional corrugated

sheep. In 2025 3804 tonnes of traditional Chinese medicine residues paper turnover boxes each year and generate the 32900 492000 hours

were processed in 2025. company 3200 yuan a year. video conferences

Water resources management Total participants reached 1212128

We have developed programs such as the China Resources Sanjiu Energy Conservation and Environmental Protection Monitoring and 467000 person-times cloud documents created

Control Measures and the China Resources Sanjiu Energy Natural Resources Conservation Management Measures. Each branch has

developed detailed manuals based on headquarters documents applicable laws policy standards and their own unique circumstances to

guide management of water and other resource conservation. We have improved watershed recycling rates through a number of measures

including reducing freshwater use regulating operational water use and promoting reclaimed water and cooling water recovery and reuse.We have set a target to reduce freshwater consumption per 10000 yuan of output value by 2% year-on-year using 2020 (2.4668 t/10000

yuan) as the baseline. In 2025 we routinely tested rainwater and groundwater and water quality met standards during the Reporting Period.

40 41Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Reduce pollution and waste discharges Disposal of expired medicines. All expired medicines and party with hazardous waste disposal credentials and technical

other waste chemicals are disposed of as hazardous waste capabilities sign a hazardous waste disposal contract and

We practice the concept of green development and are committed operations so as to minimize the negative environmental impact in accordance with applicable regulations. We select a third legally and compliantly dispose of expired chemicals.to managing and reducing wastewater waste gases industrial of our own operations.solid waste noise and new pollutants from production and

Case study:guanlan base establishes a comprehensive and advanced pollution prevention and

Governance control program

We strictly comply with the Environmental Protection Law of the People's Republic of China the Law on Air Pollution Prevention

and Control of the People's Republic of China and the Solid Waste Pollution Prevention and Control Law of the People's Republic of High-efficiency treatment plants for major pollutants are installed at the Guanlan facility. For wastewater treatment the

China. We developed the China Resources Sanjiu Pollution Prevention and Control Measures and the China Resources Sanjiu Energy wastewater treatment plant uses a combined "ABR anaerobic + aerobic contact oxidation" process which boasts high

Conservation and Local Environmental Protection Monitoring and Control Measures which are used to guide and regulate pollution efficiency and strong impact resistance. Key facilities include high-efficiency air suspension blowers dissolved air flotation

prevention and control work by headquarters and facilities at all levels including industrial solid waste noise and new pollutants and units and plate-and-frame filter presses allowing full automated control of the entire process. Effluent quality is monitored

avoid environmental pollution. in real-time by an in-depth online monitoring system which consistently meets standards without exceeding prescribed

emission limits. For emissions treatment a variety of processes including water filtration bio-trickling filtration activated

carbon adsorption and UV photolysis are used to treat volatile organic compounds (VOCs) and particulate manufacturing

Strategy emissions resulting in a multi-step cleaning process. All emissions outlets are equipped with online emission monitoring

equipment allowing for full control and 24/7 monitoring. Monitoring data showed that exhaust gas emission concentrations

In accordance with the requirements of the SASAC Notice on Accelerating Green Development of Central Enterprises and Promoting consistently meet national and local emission standard requirements.the Building of a Beautiful China and relevent work plans we have developed the CR Sanjiu Work Plan for Accelerating Green

Development and Promoting the Construction of a Beautiful China.Risks Opportunities and Potential Impacts Related to Pollution and Waste Prevention and Control

Hazard types and descriptions Potential economic impact Opportunity types and Potential economic Case study:enhancement of environmental protection systems and strict adherence to conservative descriptions impact practice standards

With increasingly stringent Market confidence is damaged Green and environmentally Increase operating

environmental regulations friendly products and income and profitability In 2025 all of China Resources Sanjiu's environmental protected facilities were functioning properly with all pollutants

companies may face penalties Brand value declines corporate images are likely to meeting emission standards and all emission indicators complying with national and industry standards. Specifically COD

or legal action for exceeding gain social popularity thus and ammonia nitrogen concentrations in the wastewater discharge met national standards. However some businesses

emissions standards increasing Revenues and profits decrease increasing market share. have experienced odor dispersion issues in their wastewater treatment plants. To address this all ponds in the wastewater

their costs. treatment plants were fully lined with reclaimed membranes and waste gases were collected via special pipes and

centrally treated with a biological deodorization process significantly reducing odor emissions. Moreover the existing VOCs

treatment facilities of some commercial companies in their laboratories using the photo-oxidation + activated carbon

process have suffered from fragile UV lamps and difficulties in detecting malfunctions in a timely manner. This affected

Impact risk and opportunity management the effectiveness of treatment and carried the risk of legal sanctions. The treatment process was upgraded to a two-stage

activated carbon adsorption which completely addressed these process deficiencies ensuring efficient treatment of gas

We perform pollution prevention and control activities in accordance with relevant regulations and documents such as the China wastes and reinforcing the plant's lean production and compliant process safeguards.Resources Sanjiu Pollutant Prevention and Control Management Measures and the China Resources Sanjiu Environmental Risk

Classification and Grading Assessment Measures strictly comply with various management requirements.Pollution prevention and control. Pollution prevention and reuse; qualified third-party facilities collect and dispose of non-

control. Headquarters and enterprises at all levels formulate recyclable industrial solid waste.self-monitoring plans at the beginning of each year. Some Metrics and targets

environmental protection sites are equipped with automated Hazardous waste management. In managing and managing

emission monitoring equipment with monitoring data uploaded hazardous waste we must strictly adhere to compliance

directly to the monitoring platform of the competent ecological requirements throughout the system : disposal must be done

We develop standard requirements for pollution prevention and control and establish and implement an emission control and

by facilities with a hazardous waste management license; the verification process based on state and local environmental protection regulations and emission standards for chemical plants. For and environmental authority. Environmental protection facilities several consecutive years we conducted comprehensive pollutant emissions estimation and monitoring including wastewater and

that do not have automatic monitoring equipment in their transfer process implements the electronic transfer manifest emissions and built a visible and verifiable emissions data management system to provide robust data support for science planning

emissions conduct self-monitoring according to a self-monitoring system to ensure full traceability; at the time of storage it

program. must be stored in designated facilities properly labeled and

implementation and quantitative control of emission reduction goals.administrative documentation established; in the disposal By 2025 China Resources Sanjiu(Not include Tasly) has achieved all our pollution reduction targets as detailed in the table below.Industrial Solid Waste Management. Common solid waste is system devolved entities are required to operate in accordance

divided into recyclable and non-recyclable materials. Recyclable with the terms of their respective license areas and are strictly

solid waste is sold to processing companies for processing and controlled to ensure compliance throughout the system .

42 43Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Setting and Achievement of Solid Waste Emission Targets of CR Sanjiu from 2020 to 2025 Year The rules for target-setting

No. Discharges 2020 2021 2022 2023 2024 2025 during the "14th Five-Year

Year The rules for target-setting Indicator Plan" period

No. Discharges 2020 2021 2022 2023 2024 2025 during the "14th Five-Year

Indicator Plan" period Actual value

0.16490.16030.16270.14510.12650.1398

(tCO e/10000 yuan)

Emissions(t) 9.50 3.50 2.66 4.70 3.47 1.25 2

CO2 emission Based on the adjusted 2020

Allowed

Target value (t) 9.31 9.12 10.1689 9.9525 9.7535 Based on 2020 reduce by 2% year- intensity Target value emission intensity (i.e. 0.2558

emissions 8. 0.2558 0.2507 0.2456 0.2405 0.2353 0.2302on-year (Kunming Pharmaceutical (Scopes 1 and (tCO2e/10000 yuan) tCO2e/10000 yuan) reduce by 2% 1. SO2 Corporation baseline value was 2)1 year-on-year.Whether the Target is incorporated in 2023).Yes Yes Yes Yes Yes Yes Whether the Target is

Achieved Yes Yes Yes Yes Yes YesAchieved

Emissions (t) 35.01 35.65 38.44 66.34 47.87 39.41 Notes:

1. Allowed emissions: the total annual allowable pollutant emissions quota granted by the competent ecological and environmental authority where the enterprise is

Allowed Allowed Allowed Allowed

Target value (t) 65.01 63.7098 From 2024 onward based on 2023 located.

2. NOX emissions emissions emissions emissions reduce by 2% year-on-year. 2.When there are changes in production scale number of enterprises included in statistics etc. target values may be adjusted accordingly.

Whether the Target is 3.In 2023 as Kunming Pharmaceutical Group was included in the statistical scope the target values of relevant indicators were adjusted accordingly.Yes Yes Yes Yes Yes Yes

Achieved 4. Tasly is a newly acquired entity during the reporting period. To ensure continuity and comparability of target management during the integration transition period we

will temporarily use the business scope before completion of the acquisition as the baseline. The statistical scope of the 2025 actual emissions values in this table does

PM emissions (t) 6.8796 1.4783 1.44 10.00 8.19 6.44 not yet include Tasly and remains consistent with the baseline-year statistical scope for targets.Allowed

Target value (t) 6.7420 6.6044 11.5742 11.3279 11.1013 Based on 2020 reduce by 2% year-

Particulate emissions on-year (Kunming Pharmaceutical

3.

Matter (PM) Corporation baseline value was During the Reporting Period in light of actual production and operational conditions we established annual or medium-term targets

Whether the Target is incorporated in 2023). for waste reduction and recycling based on intensity indicators. In 2025 no environmental violations occurred.Yes Yes Yes Yes Yes Yes

Achieved

Target Progress

Emissions (t) 377.8655 12.1292 11.23 8.87 5.8727 4.8717

Volatile 100% compliance rate for major pollutant emissions In 2025 the compliance rate for major pollutant emissions Allowed Allowed Allowed Allowed Beginning in 2024 the percentage Organic Target value (t) 8.69 8.5162

4. emissions emissions emissions emissions will decrease by 2% per year based was 100% with no cases of excessive pollutant discharge.

Compounds

on a 2023 baseline.(VOCs) Whether the Target is

Yes Yes Yes Yes Yes Yes

Achieved 100% lawful and compliant disposal of general industrial

In 2025 all general industrial solid waste and hazardous waste

solid waste and hazardous waste generated from production and operations were disposed of lawfully and in compliance with regulations.Emissions (t) 3.04 1.91 1.68 2.39 2.01 2.88

Allowed

Target value (t) 2.9792 2.9184 4.4390 4.3445 4.2576 Based on 2020 reduce by 2% year-

Based on 2020 as the baseline reduce hazardous waste In progress

Ammonia emissions on-year (Kunming Pharmaceutical emission intensity by 10% by 2030.

5.

nitrogen Corporation baseline value was

Whether the Target is incorporated in 2023).Yes Yes Yes Yes Yes Yes

Achieved

Total generation (t) 488.96 627.63 835.93 1252.35 1002.75 2303.70 Biodiversity conservation

All disposed All disposed All disposed All disposed All disposed All disposed

of legally of legally of legally of legally of legally of legally We attach great importance to biodiversity conservation and support and respond to the Kunming–Montreal Global Biodiversity Framework.Hazardous Target value (t) .

6. and in and in and in and in and in and in We have made a clear commitment to biodiversity protection and strictly comply with the Forest Law of the People's Republic of China the

waste

compliance compliance compliance compliance compliance compliance Regulations for the Implementation of the Forest Law of the People's Republic of China the Regulations of the People's Republic of China

on the Protection of Wild Plants the Wildlife Protection Law of the People's Republic of China the Regulations on Returning Farmland to

Whether the Target is

Yes Yes Yes Yes Yes Yes All general industrial solid waste

Achieved Forests the Regulations on the Protection and Administration of Wild Medicinal Material Resources the Convention on International Trade and hazardous waste must in Endangered Species of Wild Fauna and Flora (CITES) and the United Nations Convention on Biological Diversity as well as other relevant

Total production (t). 32214.45 36250.50 26094.72 134557.22 144237.22 185830.75 be disposed of legally and in laws regulations and international conventions. We uphold the authenticity of medicinal biological resources and the conservation of

compliance.germplasm and seed sources vigorously promote the development of artificial cultivation bases for traditional Chinese medicinal materials

All disposed All disposed All disposed All disposed All disposed All disposed

General of legally of legally of legally of legally of legally of legally establish forestry carbon sink demonstration projects for medicinal materials protect wild medicinal biological resources foster a new

Target value (t) .

7. industrial solid and in and in and in and in and in and in ecological model integrating forest and medicinal material cultivation advance biodiversity restoration and work together toward a vision of

waste compliance compliance compliance compliance compliance compliance harmonious coexistence between humanity and nature.Whether the Target is

Yes Yes Yes Yes Yes Yes

Achieved

1I n accordance with the "Guidelines for Greenhouse Gas Emission Accounting and Reporting of Industrial Enterprises in Other Sectors (Trial)" the Scope 1 and Scope

2 carbon dioxide emissions for CR Sanjiu Medical & Pharmaceutical Co. Ltd. in 2025 are calculated as follows: Scope 1 emissions are calculated as the product of

fossil fuel consumption carbon content carbon oxidation rate and molecular conversion factor. Scope 2 emissions are calculated as the product of purchased

electricity consumption and the corresponding grid emission factor.

44 45Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

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Impacts of China Resources Sanjiu's Production Operations and Products on Biodiversity and Corresponding Action Strategies Protection of authenticity and quality sources of raw materials

Influence Impacts of the company's production services

type and products on biodiversity Action strategies Through order-based procurement from genuine producing areas strict raw material quality audits and self-built or jointly

established cultivation bases we implement a rigorous procurement quality management system to ensure that all medicinal raw

materials are legally sourced compliant and of high quality at the source and to prevent medicinal materials of unknown origin

For Chinese medicinal materials procured from the market from entering the production process.we only purchase materials with clear legal and compliant

origins and require suppliers to reasonably develop medicinal

biological resources on the basis of conservation avoiding

biodiversity loss caused by excessive harvesting of wild

medicinal materials. Construction of medicinal material cultivation bases and germplasm conservation

We conduct research on seedling breeding and artificial Medicinal cultivation bases are selected based on suitability of

cultivation technologies for medicinal materials compile the ecological environment historical planting experience and

technical guidelines and vigorously promote the construction avoidance of protected areas. Through industry–university–research

The Company's products are primarily of artificial cultivation bases through self-built or jointly collaboration we establish seedling experimental areas strictly control

traditional Chinese patent medicines with raw established planting bases. We uphold the authenticity germplasm and seed quality at the technical source and prevent issues

materials consisting of medicinal biological of medicinal biological resources and the conservation of

germplasm and seed sources increase the proportion of raw such as germplasm degradation and invasive alien species. Through resources sourced from market procurement

and medicinal material cultivation bases. Where materials supplied by cultivation bases and promote the

the construction of demonstration cultivation bases establishment

Negative sustainable development of the traditional Chinese medicine and promotion of cultivation and origin-processing standards and

impact the origin of medicinal materials procured industry. joint base-building models we vigorously promote the development from the market is unclear some raw materials of medicinal planting demonstration bases. In authentic production

may originate from wild medicinal biological T he Company dynamically manages sustainability risks within regions such as Guangdong Jiangxi and Yunnan cultivation bases are

resources. The extent of wild harvesting may be business partners and the supply chain protects natural developed based on traditional planting experience. Organic fertilizers

uncertain potentially causing negative impacts resources and maintains ecosystem diversity strictly complies are prioritized to protect soil and vegetation. Ecological Cultivation of Panax notoginseng

on biodiversity. with national biodiversity conservation policies and prohibits

establishing operational sites conducting supply chain

activities or engaging in business activities in biodiversity

hotspots ecologically sensitive areas ecological protection Promoting sustainable development of raw materials

redline zones and internationally or nationally designated

important protected habitats.Relying on technical support from the Research Institute of Chinese Medicinal Resources the Medicinal Resource Center of the

W e strictly comply with national laws and regulations Pharmaceutical Business Division and affiliated cultivation enterprises we actively conduct research on germplasm resources

concerning endangered medicinal species and prohibit the cultivation technologies origin-processing methods and standards full-process traceability systems and comprehensive utilization

use of wild endangered medicinal species in pharmaceutical of medicinal resources. These efforts ensure medicinal quality maximize resource utilization maintain ecological balance prevent

production. ecological resource loss degradation and over-exploitation and guarantee the sustainable utilization of traditional Chinese

medicinal resources.Leveraging technical platforms such as the

Research Institute of Chinese Medicinal

Resources at the headquarters R&D center Establishment of forestry carbon sink demonstration projects for medicinal materials

the Medicinal Resource Center of the

Pharmaceutical Business Division and affiliated

medicinal material cultivation enterprises the Through artificial cultivation of medicinal plants and the development of medicinal-material forestry systems we reduce harvesting

Company actively researches seedling breeding In response to global warming and increasingly frequent of wild medicinal resources protect endangered wild medicinal species restore natural biodiversity and form a new ecological

and artificial cultivation technologies compiles extreme weather events such as heat drought and heavy model of artificial medicinal forests. This promotes sustainable development of medicinal materials while increasing potential

technical guidelines and vigorously promotes rainfall which pose survival risks to medicinal biological carbon assets. We will continue to promote the joint development of medicinal forestry carbon sink demonstration projects with

Positive the construction of artificial cultivation bases. resources due to environmental changes the Company will

impact By using medicinal materials with clear origins increase R&D investment select and cultivate high-quality

relevant organizations where conditions permit.and increasing the supply proportion from medicinal varieties with strong environmental tolerance and

cultivation bases we uphold the authenticity sufficient medicinal components and continue to uphold the

of medicinal biological resources and the authenticity of medicinal biological resources and germplasm conservation. Construction of medicinal–photovoltaic complementary zero-carbon demonstration projectsconservation of germplasm and seed sources

promote sustainable raw material development

reduce harvesting of wild medicinal biological By leveraging the differing light spectrum requirements of medicinal plant photosynthesis and photovoltaic power generation

resources prohibit the use of wild endangered electricity generation and planting can be realized simultaneously. As photovoltaic panels create shading effects different medicinal

medicinal species in pharmaceutical production varieties can be cultivated according to their light requirements and different photovoltaic module designs can be installed to

and contribute to biodiversity restoration. meet photosynthetic needs. At the same time qualified business units are encouraged to install photovoltaic systems in medicinal

planting bases and develop medicinal–photovoltaic complementary projects into zero-carbon demonstration projects.

46 47Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

S

Upholding integrity and driving innovation

to jointly safeguard a harmonious society

National requirements

Strengthen the principal role of enterprises in scientific and technological innovation promote the

concentration of innovation resources toward enterprises support enterprises in taking the lead in

forming innovation consortia and undertaking more national key science and technology projects

encourage enterprises to increase investment in basic research promote the deep integration of

innovation chains industrial chains capital chains and talent chains accelerate innovation in digital

and intelligent technologies such as artificial intelligence and achieve breakthroughs in fundamental

theories and core technologies.From the social perspective with the goal of continuously improving people's quality of life

implement a health-first development strategy promote the inheritance and innovation of traditional

Chinese medicine and advance the integration of traditional Chinese and Western medicine.—Proposal for the 15th Five-Year Plan

Our response Contribution to the United Nations Sustainable Development Goals

Closely aligning with the requirements of the 15th Five-Year Plan China Resources Sanjiu fully

integrates ESG principles into its corporate strategy and operations. We continuously strengthen

innovation capabilities advance digital transformation enhance R&D innovation in traditional Chinese

medicine and strategically develop innovative drugs and classical traditional Chinese medicine

prescriptions. On the social dimension we have established a Board-driven ESG governance closed

loop reinforced quality assurance and consumer rights protection throughout the entire lifecycle of

pharmaceuticals embedded ESG principles across the full traditional Chinese medicine supply chain

implemented distinctive public welfare projects supporting the Healthy China initiative and rural

revitalization and continuously improved employee development and care systems fulfilling the

social responsibilities of a central state-owned enterprise through concrete actions.

48 49Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

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ecological home harmonious society foundation for sound operation

On August 28 2025 the Consensus on Compliance in the Pharmaceutical Industry was officially released at an industry innovation conference

marking a milestone achievement. In collaboration with leading enterprises such as Sinopharm Holding and Shanghai Pharmaceuticals more

than one hundred frontline compliance challenges were analyzed to ensure the practicality and relevance of the Consensus.Responsibility case From consensus to implementation: advancing together

The Consensus on Compliance in the Pharmaceutical Industry progressed through five stages: "initiative proposal in-depth research

centralized drafting discussion and finalization and official release" achieving a transition from concept to substance. It has now entered

the implementation phase of "consensus decoding" and "capacity building" supported by the development of training courses risk

guidance and self-assessment tools to transform textual standards into practical enterprise capabilities. By unifying the "language of

compliance operations" the Consensus reduces compliance system construction costs for small and medium-sized enterprises shifts

from "costs of correction" to "costs of prevention" and enhances overall efficiency and safety across the industry chain. At the same time

it clearly conveys the industry's determination for self-reform helping restore industry reputation and rebuild public trust and providing

strong support for the Healthy China strategy.Innovative breakthroughs: opening a new chapter in ecosystem governance

By breaking through the traditional internalized model of compliance we innovatively propose a new paradigm of "value-chain

Building a new pharmaceutical distribution ecosystem on the foundation of collaborative governance." We advocate the evolution of compliance management from internal corporate control to ecosystem-wide

compliance coordination and mutual trust across the industrial chain. Through consensus standards and technological connectivity we aim to build a transparent traceable pharmaceutical distribution ecosystem with shared responsibility while addressing uneven industry

As a core member of China Resources' Greater Health segment CR Sanjiu has gained deep insight development. We also promote innovation in tools and mechanisms including formulating standardized recommendations for high-

into regulatory trends and sustainable development requirements in the pharmaceutical industry sensitivity scenarios such as CSO cooperation and academic promotion introducing independent third-party evaluation mechanisms

and has proactively initiated and led the Consensus on Compliance in the Pharmaceutical Industry and exploring intelligent compliance tools driven by big data and artificial intelligence thereby transforming compliance management

project. In collaboration with leading industry enterprises and professional institutions we have from labor-intensive to technology-driven models.shifted from "passive compliance" to "proactive governance" striving to build a pharmaceutical Empowering the industry and demonstrating long-term value

distribution ecosystem characterized by transparency mutual trust and shared responsibility.Through strengthened compliance capabilities we consolidate the foundation for industry Following its release the Consensus on Compliance in the Pharmaceutical Industry has established plans for supporting guideline

development and demonstrate the responsibility of central state-owned enterprises in serving the development case database construction and periodic revision mechanisms to ensure alignment with evolving policies and practices.modernization of national governance. CR Sanjiu will continue to invest resources deepen implementation and pursue higher-level objectives forming a virtuous cycle of

"greater participation greater benefit and stronger joint safeguarding." The core methodology of the Consensus holds reference value

Strategic commitment anchored in the broader landscape not only for the pharmaceutical industry but also for medical devices finance and other highly regulated industries. Its collaborative

model of "leading enterprises guiding multi-party co-creation and shared outcomes" can be replicated in other ESG areas such as green

This project actively responds to major national policies such as "deepening the reform of the supply chains and data security providing practical experience for industry governance.medical and healthcare system" and "strengthening anti-unfair competition" and precisely aligns

with the requirements of the Administrative Measures for Compliance Management of Central Future outlook

Enterprises. By translating macro-level principles into actionable standards in the distribution

sector the project supports the development of "world-class enterprises" through robust The Consensus on Compliance in the Pharmaceutical Industry project represents a model case of integrating national strategies Group

compliance risk management. By providing industry public goods and transforming corporate best planning industry needs and the Company's own strengths. It begins with compliance risk management but aims at long-term sustainable

practices into industry consensus CR Sanjiu has significantly enhanced its brand influence and value creation; rooted in risk management it injects "trust capital" and normative momentum into the industry. We will continue to take

rule-advocacy capacity in the pharmaceutical sector contributing to a more stable development compliance as our cornerstone and work with industry partners to build a healthier and more sustainable pharmaceutical distribution

environment for the Group's Greater Health business. ecosystem demonstrating the responsibility and commitment of central state-owned enterprises in the new era.Launch Ceremony of the Consensus on Compliance in the Pharmaceutical Industry

50 51Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

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Focus on innovation development

China Resources Sanjiu has upgraded its R&D strategy under the theme of "Integrated Innovation Smart Future" with the goal of becoming Innovation development-related risks opportunities and potential impacts

a leading innovator in China's pharmaceutical and healthcare sector through the integration of traditional Chinese and Western medicines

with digital and intelligent technologies. Focusing on the Company's core strategy we continue to increase innovation investment in core Potential Financial Potential Financial

pipelines build advanced technology platforms establish innovation organizations and talent teams aligned with strategic needs strengthen Risk Type and Description Impact Opportunity Type and Description Impact

coordination mechanisms and cultivate and develop new quality productive forces.Technical risk: Technical opportunity:

Pharmaceutical R&D cycles are Accelerated approval

Governance long investment is high and Loss of R&D Breakthroughs in the modernization

success rates are uncertain; investment of classical prescriptions and the

and market launch

establishment of international standards of new products

We continue to improve the "pyramid"-like structure of innovation with "focus on initiation strengthening management emphasis on breakthroughs in core for traditional Chinese medicine.monitoring implementation of incentives and promoting translation" as key steps. Relying on a three-tier "1+8+N" science and technology technologies are difficult.innovation model we optimize a "6E" management system based on project initiation planning implementation evaluation incentives

and auditing. We continue to improve project-driven decision-making and project-driven management increase incentives for innovation

and inject strong momentum into innovation and research and development. Policy risk: Policy opportunity:

Stricter regulatory standards

for traditional Chinese National support for inheritance and Shortened time to

Pyramid innovation system Positioning medicine adjustments in drug innovation of traditional Chinese Increased costs or market reduced

review and approval medical medicine and development of classical reduced revenue production costs

insurance reimbursement prescriptions; accelerated review and and increased

and centralized procurement approval; preferential medical insurance Innovation A Highland for Innovative Technologies

revenue

policies may restrict product policies for high-quality innovative drugs Center Leveraging the Influence of Sanjiu's Innovation

usage demand. and traditional Chinese medicine.Innovation An Open Innovation Organization

Organization Extensively Connecting with External Resources

Research Institutes + Laboratories The Vanguard of Innovation

Breaking through Key Focus Areas

Impact risk and opportunity management

Innovation Management System The Foundation of Innovation

Ensuring Its Sustainability

Guidance for the Implementation of Development of a Scientific and Technological Innovation PlatformCross-Strategic Cycle R&D Planning

Innovation Strategies

We partner with internal and external agencies to build a scientific and technological innovation platform closely aligned with the

strategic needs of the country. Our primary objectives are to develop drugs with outstanding clinical efficacy and safeguarding public

health. We focus on the modernization of traditional therapies as a key development to develop modern Chinese medicine and build a

critical technological innovation platform to support advanced development.Strategy On September 24 2025 CR Sanjiu together with more than 20 organizations including the China Pharmaceutical Industry Supervisory Board and the China Pharmaceutical Control and Regulatory Research Association jointly launched the "Beijing Future Pharmaceutical

Chain Research Center."

Innovation is not only our core value but also one of CR Sanjiu's core competencies. The company's vision is to become a leader in

pharmaceutical and healthcare innovation in China. We continue to increase R&D investment focus on core pipelines build advanced China Resource Sanjiu and Zhengzhou University have jointly established the "Zhengzhou University-China Resource Sanjiu Innovative

technology platforms establish innovation organizations and talent teams aligned with strategy and strengthen coordination mechanisms. Chemical Research Center." By focusing on common technologies and industry needs and applying Zhengzhou University’s research

We consolidate core capabilities including value assessment BD introduction clinical medicine project management resource integration interests in life sciences the company will collaborate on key research such as authentic drug development from Henan Province antiviral

and digital–intelligent applications thereby safeguarding the achievement of strategic objectives. drug research and development and drug safety evaluation.

52 53Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

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Cultivating innovative technical talent

We strengthen the recruitment and cultivation of high-tech innovation talents in R&D and intelligent manufacturing enhance the establishment

and management of talent pools and fully stimulate endogenous drivers of technological innovation through "building platforms improving

mechanisms and utilizing talent." We focus on production technology challenges and industry-leading technologies to enhance the core

competitiveness of marketed products.Organizational Talent cultivation Innovation culture Achieve r&d and innovation results in 2025

development and exchange development

In 2025 a new Oral Liquid Dosage In 2025 focusing on building the In 2025 the Production Technology

Form Technology Research Center innovative R&D talent pipeline the Center organized the 4th CR Sanjiu Classical prescription field Dermatology field

was established. Currently eight Company carried out systematic Process Technology Innovation Award

dosage form technology research technical exchanges talent selection to establish benchmarks for

centers have been built to provide inventory and targeted cultivation production technology innovation. Two new Category 3 traditional Chinese medicine products were approved namely Four new products were approved:

professional research platforms for strengthened R&D-related talent Together with the human resources Yiqi Qingfei Granules and Banxia Baizhu Tianma Decoction Granules. Five products Selenium Sulfide Lotion Minoxidil

technical personnel. At the same teams in the production system department the Company advanced are in the application stage and the cumulative number of applications and approvals Topical Solution Crisaborole Ointment

time intelligent manufacturing and realized sharing of internal and the development of supporting leads the industry. One Macau classical prescription product was approved—Shaoyao and Metronidazole Gel. These are

coordination groups and production– external knowledge technology systems for the Management Gancao Granules authorized to use the "Supervised by Macau" label. Yiqi Qingfei important products in the Company's

sales–R&D coordination groups and talent resources. We deepened Measures for Incentives for Technical Granules is CR Sanjiu's first Category 3.2 traditional Chinese medicine new drug and self-care portfolio and their approvals

were established to break cross- industry–university–research– Innovation Projects in the Production the first innovative traditional Chinese medicine formally approved by the National reflect the Company's continuous

department barriers and build an application collaboration and signed System of CR Sanjiu recognizing Medical Products Administration specifically for treating comprehensive symptoms improvement of business portfolio and

efficient collaborative R&D system. cooperation agreements with four and rewarding outstanding product during the recovery period of respiratory infections. expansion into the full self-care.research institutions including engineers innovative technical

universities drug regulatory projects and excellent technical sub-

authorities and equipment centers improving the innovation

enterprises to conduct joint research incentive system fully stimulating Gastrointestinal

in process technology and quality R&D personnel's innovative vitality Orthopedics field (hepatobiliary) field Anti-infection field

standards thereby improving R&D and fostering a talent development

personnel's professional capabilities atmosphere that values innovation

through project-based practice. and encourages exploration. One new product was approved: One new product was approved: Four new products were approved:

Loxoprofen Sodium Gel Patch the Lactulose Oral Solution approved Cefazoxime Sodium for Injection

Company's first approved gel patch by the National Medical Products Fulvestrant Injection Ertapenem

product enriching the orthopedics Administration used for the treatment Sodium for Injection and Cefpirome

Enriching technological innovation achievements pipeline and improving business of constipation and supporting Sulfate for Injection further portfolio to better meet patient intestinal health. strengthening the anti-infection

needs. pipeline and providing more

We continuously strengthen our proprietary innovation capabilities accelerate change and treatment options for patients.implementation of innovation successes accurately identify market opportunities arising

from consumption upgrade trends and deeply mine core consumer needs regarding product

functionality and usage scenarios. We promote breakthroughs in the initiation and approval of

new product R&Ds progressively enhance the industrialization process of scientific research

results and continue to enhance the competitiveness of our core products.Product development

The innovative traditional Chinese medicine drug Xiao'er Anshen Bunao Granules

was approved and successfully selected into the third batch of "Lingnan Famous

Prescriptions."

Technological advances

Address common problems among volatile oil varieties through technical advances

and develop important common engineering solutions. The combined approach

of "feed properties + equipment + technology + measurement" will ensure that the

volatile components of the product are essentially the same as those of the reference

sample obtained by hydrolysis. Promoting the development of international

standards for traditional Chinese medicine

54 55Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

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Key progress in consistency evaluation of generic drugs in 2025 Emphasis on technology ethics

We adhere to the principle of "technology for good ethics first" deeply integrating technology ethics into the entire process of pharmaceutical

Approved generic drug approvals R&D and technological innovation strictly safeguarding the bottom line of life and health effectively protecting the lawful rights and interests

of clinical trial subjects strictly complying with animal ethics standards and animal protection requirements and maintaining high ethical

Minoxidil Topical Solution Selenium Sulfide Lotion Crisaborole Ointment Metronidazole Gel Loxoprofen Sodium Gel Patch Lactulose standards and scientific conduct in all types of experiments to protect public health through responsible innovation.Oral Solution Ceftizoxime Sodium for Injection etc. were approved for marketing enriching product portfolios in dermatology

orthopedics gastrointestinal (hepatobiliary) and anti-infection fields continuously empowering business development.Drug clinical trial management Adherence to animal experiment ethics

CR Sanjiu has established a dedicated pharmacovigilance team The Company strictly complies with national laws

Submitted registration applications for clinical trial drugs and built a full-process control system to and regulations related to the management of

comprehensively protect the safety and rights of trial participants. laboratory animals and ensures that all animal

Luliconazole Cream Adapalene Gel Upadacitinib Sustained-release Tablets Hydrotalcite Suspension Polyethylene Glycol 4000 The Company has established a comprehensive pharmacovigilance experiments are conducted in a scientific lawful and

Powder (pediatric) Compound Polyethylene Glycol (3350) Electrolyte Oral Solution Desloratadine Oral Solution Desloratadine system formulated standardized operating procedures and clarified standardized manner. All animal experiments are

Tablets Calcitriol Soft Capsules Vancomycin Hydrochloride for Injection Ambroxol Hydrochloride Oral Solution etc. have been job responsibilities. At the protocol design stage risk assessments are entrusted to compliant suppliers holding laboratory

submitted for registration. Generic drug R&D is accelerating and gradually forming a pipeline output. conducted in advance and risks are minimized through scientifically animal use licenses. Entrusted research institutions

defined indicators and contingency plans. Trial execution procedures strictly comply with the Good Clinical Practice (GCP)

are strictly standardized to ensure the scientific integrity of research. the Declaration of Helsinki ICH guidelines and

The informed consent process is properly implemented to fully other medical ethics principles and relevant clinical

safeguard participants' right to be informed and their right to voluntary regulations ensuring that related research activities

participation. Serious adverse reactions are reported in a timely manner are conducted in qualified and compliant laboratory

Intellectual property protection as required and periodic safety data aggregation and analysis as well as animal facilities.dynamic risk control are carried out. Through rigorous and standardized

We strictly comply with the Trademark Law of the People's Republic of China and the Measures for the Administration of Intellectual management we safeguard the safety baseline of clinical trials.Property Certification and have formulated policy including the China Resources Sanjiu Brand and Authorization Management System

Basic Intellectual Property Management System of China Resources Sanjiu China Resources Sanjiu Patent Management Measures

China Resources Sanjiu Management Measures for Publication of Scientific Papers and Management Measures for Intellectual Property Kunming Pharmaceutical Group adheres to the principle of humane treatment of laboratory animals and strictly follows the "3R" principles

Rights Protection and Anti-counterfeiting. We have established an intellectual property management system centered on trademark of Reduction Replacement and Refinement. In accordance with relevant regulations it has established a systematic laboratory animal

rights and covering patents trade secrets copyrights and other dimensions and commit to respecting and protecting intellectual management mechanism set up a Laboratory Animal Management Committee and an Institutional Animal Care and Use Committee (IACUC)

property rights of both the Company and others. In 2025 the Company did not experience any major intellectual property infringement and continuously improved management policies and animal welfare ethics review documents. The Company clarifies the responsibilities

incidents that had significant impact. of various institutions and departments standardizes laboratory animal production use ethical review and harmless disposal of waste and

incorporates laboratory animal facilities into the quality management system to ensure compliant experimental conduct and protection of

animal welfare. In 2025 Kunming Pharmaceutical Group strengthened personnel ethical awareness through training on animal welfare ethics

and biosafety effectively implementing requirements related to animal welfare and humane treatment of laboratory animals.Establish a closed-loop management approach

We proactively implement intellectual property protection measures establish online and offline infringement monitoring systems Metrics and targets

launch patent proposal application and approval processes and scientific paper submission approval processes in the OA system

strengthen intellectual property management carry out multiple online and offline rights protection activities safeguard the Company's We have always placed R&D innovation at the core of corporate development. To effectively implement the Company's R&D innovation strategy

intellectual property rights and form a full-process closed-loop management mechanism for intellectual property protection. we have established indicators and targets for R&D innovation and regularly track and evaluate their completion.Target Progress

Raise awareness of intellectual property rights Build innovation highlands

CR Sanjiu together with more than 20 institutions including the China Pharmaceutical

strengthen innovation platform Enterprise Management Association and the China Society for Drug Regulation Studies jointly

construction and continue initiated the establishment of the "Beijing Future Pharmaceutical Industry Chain Research

We carried out intellectual property awareness activities on World Intellectual Property Day and incorporated intellectual property to develop national-level Institute."

training modules into 2025 legal compliance training and new employee training to enhance employee awareness and ensure effective and provincial-level research

protection of intellectual property. CR Sanjiu and Zhengzhou University jointly established the "Zhengzhou University–China platforms. Resources Sanjiu Innovative Drug Research Institute."

Strengthen intellectual property The Company participated in the development of 1 international standard 13 national

protection and continuously standards and 4 industry standards;

improve independent In 2025 CR Sanjiu obtained authorization for 211 patents (including 87 invention patents 71

innovation capabilities. utility model patents 50 design patents and 3 international invention patents).

56 57Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

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Deepening digital and intelligent transformation Impact risk and opportunity management

CR Sanjiu continues to enhance its digital and intelligent transformation. With meeting user and patient needs as the core the Company Promote digital transformation

promotes business growth efficiency improvement and brand development through digital empowerment and platform-based service

innovation and is committed to becoming a leading digital-intelligence enterprise in the pharmaceutical and healthcare industry. Aiming to become the digital standard in the pharmaceutical and healthcare industries we are fully promoting digital transformation and

aggressively integrating digital empowerment into key areas of business operations and management. Focused on user experience and value

creation we have developed digital development strategies and workflows in key areas such as marketing and finance clarifying the direction of

talent mobilization and organizational transformation requirements. Through technological innovation and data intelligence we drive business

Governance model development and improve management performance fueling new business growth and superior corporate development through digital transformation.CR Sanjiu has integrated digital transformation into its governance structure. With a governance approach that combines hierarchical Advancing digital empowerment

planning clear responsibilities and authorities organizational mechanisms and closed-loop monitoring and evaluation it lays a solid

foundation for the implementation of the "Digital Sanjiu" strategy. This ensures that digital transformation is aligned with the company's

development strategy and tightly integrated with business operations promoting standardized effective and sustainable digital With "user experience at the core promoting brand development and business growth through digital innovation

transformation development . and data intelligence and striving to become a digital benchmark enterprise in China's pharmaceutical and

Digital healthcare industry" the Company has redefined the core development direction of "people goods and

marketing channels" in the prevention–treatment–rehabilitation field. Key initiatives and digital capability accumulation

Strategy directions have been clarified across the entire user journey digital channels digital marketing digital products and data intelligence while organizational support and transformation directions have also been proposed to

achieve rapid growth of new businesses.We adhere to the "Digital Sanjiu" strategy actively implement digital transformation initiatives and proactively explore new scenarios and

new models for applying emerging technologies such as AI and IoT in the pharmaceutical field. Through measures including business

transformation and innovation and the implementation of an industrial digital ecosystem we aim to achieve the goal of supporting and

leading the Company's innovation-driven transformation and development through digitalization and intelligence. A digital strategy centered on "five transformations and eight scenarios" has been established. Digital construction

Financial tasks have been carried out and completed in key scenarios including treasury management business analysis

digitalization budget management and tax management. Tasks assigned by SASAC have been completed with high quality Risks opportunities and potential impacts related to digital and intelligent transformation financial management integration of newly acquired enterprises has been realized and financial operational

efficiency and data analysis capabilities have been improved.Risk type and description Potential financial impact Opportunity type and description

Potential financial

impact

Technical risk:

Advancing intelligent manufacturing

Rapid iteration of digital and Technical opportunity:

intelligent technologies; Shortened R&D

difficulty in implementing Loss of R&D AI and digital-intelligent technologies cycles reduced R&D To fully utilize the management of the entire TCM industry chain and promote the advanced intelligent and green development of the

intelligent manufacturing and investment empower innovative R&D of traditional costs and improved TCM industry we proposed the vision of "lead TCM intelligent manufacturing" and developed an eight-year intelligent manufacturing

R&D scenarios for traditional Chinese medicine and improve R&D R&D success rates strategy. Through key initiatives such as leading and technological innovation breakthroughs in key technologies industry development

Chinese medicine falling short efficiency. and transformation advanced systems and professional training we will explore new TCM artificial intelligence models build new TCM

of expectations. artificial intelligence models.Define the development path

Compliance risk: Policy opportunity:

Digital construction data The first phase The second phase The third phase

application and intelligent Strong national support for digital and Increased costs Access to policy

manufacturing failing to meet intelligent transformation of traditional for compliance funding support Chinese medicine and construction of Entitled "Standards and Titled "cooperation and Titled "collaboration and national requirements for rectification and and reduced

data security cybersecurity intelligent manufacturing demonstration

Regulations" aims to design collaboration" aims to establish promotion" aims to use

penalties transformation factories enabling access to policy and automate intelligent internal and external synergies knowledge or models to improve pharmaceutical regulation and investment costs manufacturing infrastructure. among production networks. business operations. By 2025 an

intelligent factory standards subsidies recognition and industry demonstration advantages. intelligent manufacturing system leading to compliance risks. will initially achieve ecosystem

communication prediction and

early warning capability.

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Digital and intelligent technology upgrades

Case:building a qualified enterprise for smart manufacturing

Production intelligent manufacturing upgrade

CR Sanjiu promotes digital-intelligent manufacturing operations by transforming business operational and management models

Benchmark intelligent manufacturing factories have been established to realize digital management across the full pharmaceutical exploring new business management models and advancing the construction of benchmark intelligent manufacturing factories.value chain covering raw materials production warehousing quality and equipment. Intelligent perception dynamic

optimization and scientific capacity allocation of production operations have been achieved enabling real-time monitoring of CR Sanjiu (Ya'an) has built a full industrial chain digital factory for traditional Chinese medicine and established a "1-system

production and equipment operation status. With digital technology empowerment key operational indicators of the benchmark 3-comprehensive quality management system" and a "digital EHS management model" under the 9S intelligent manufacturing

ointment workshop have been significantly improved. model. Product quality remains stable with a one-time product qualification rate of 100% and zero quality complaints. It was

selected as an excellent intelligent manufacturing scenario by MIIT and a typical case for quality improvement by MIIT.Digital-intelligent quality control Talent development

We continue to strengthen the cultivation of professional intelligent manufacturing teams leverage the coordination role of the Deep Blue

A digital quality control system centered on the QMS quality management system and LIMS laboratory information management Laboratory in intelligent manufacturing initiatives plan the construction of a unified production and manufacturing platform coordinate

system has been established to realize online closed-loop management of all quality elements and processes promoting deep intelligent manufacturing project management across factories nationwide build benchmark intelligent manufacturing factories and production

integration of quality data and business processes. The first fully automated unmanned testing equipment system in the traditional lines and establish intelligent laboratories. Through D-Plan learning activities professional seminars and specialized training courses we

Chinese medicine industry has been developed achieving full automation of weighing physicochemical pre-treatment pesticide enhance the knowledge and skills of professional talent.residue pre-treatment heat treatment testing and other processes. Quality testing efficiency increased by 6% information

transmission accuracy reached 100% and testing consumable usage decreased by 75%. At the same time paperless quality records

and reduced manual inspection operations have been realized significantly improving the intelligence level and operational

efficiency of quality control. Case:launch of public utility iot group control project

CR Sanjiu officially launched the "Public Utility IoT Group Control System Project" and jointly organized a training camp with

Digital-intelligent green production Mushroom IoT to promote the deep application of digital-intelligent technologies in pharmaceutical public utility energy systems supporting digital transformation and energy conservation and carbon reduction.An enterprise-level lean energy management platform (PMS) has been established deeply integrating advanced digital technologies The project supports the Company's intelligent manufacturing strategy by integrating IoT edge computing and AI algorithms

such as cloud computing big data IoT mobile communications and intelligent algorithms. Supported by this platform energy-saving to build a "one-screen overview" public utility IoT group control system enabling remote equipment control intelligent

technologies such as distributed photovoltaics chilled water storage magnetic levitation chillers and permanent magnet variable- fault prediction and whole-station energy conservation and carbon reduction continuously improving factory public utility

frequency equipment have been implemented. Combined with AI-enabled production operations overall energy consumption at the energy efficiency management. The training camp attracted more than 40 participants from relevant positions. Through a

Guanlan plant decreased by more than 20% and the plant was successfully recognized as a national-level green factory promoting combination of theoretical instruction and practical training core topics including industrial AI and digital-intelligent energy

green and low-carbon development of production through digital-intelligent upgrading. saving were covered building a professional talent reserve for project implementation.Honors Metrics and targets

CR Sanjiu anchors its "Digital Sanjiu" strategy and the development goal of "leading intelligent manufacturing of traditional Chinese

medicine" and scientifically establishes a systematic target indicator system around core areas of digital-intelligent transformation. Clear

indicators and targets guide the orderly advancement and effective implementation of digital transformation ensuring the Company's

Seven factories including China Resources Sanjiu gradual realization of the goal of becoming a leading digital-intelligence enterprise in the pharmaceutical and healthcare industry.CR Sanjiu was recognized as one of (Zaozhuang) China Resources Sanjiu (Chenzhou)

the first batch of "Outstanding-level China Resources Benxi Sanyao Aonuo Pharmaceutical

Intelligent Factories" by the Ministry of China Resources Sanjiu (Ya'an) Anhui China Resources Target Progress

Industry and Information Technology Jinchan and China Resources Jiuxin were recognized

(MIIT). as "Advanced-level Intelligent Factories." Upgrade the intelligent manufacturing system build Intelligent manufacturing factories including China Resources Sanjiu

an intelligent manufacturing system covering the (Zaozhuang) China Resources Sanjiu (Chenzhou) China Resources

entire traditional Chinese medicine value chain and Benxi Sanyao and China Resources Jinchan have been successively

The Company won the Bronze Award in The Company received the First Prize for create benchmark factories in the industry. recognized with honors such as MIIT and provincial/municipal intelligent

the benchmark competition of the 8th Practical Achievements in Deepening manufacturing excellent scenarios intelligent factories integration of

"Blooming Cup" 5G Application Collection Reform of State-owned Enterprises in 2025 informatization and industrialization excellence enterprises and digital

Competition organized by MIIT. from Enterprise Management magazine. transformation benchmark demonstration enterprises.Build a digital-intelligent professional talent pipeline Intelligent laboratories continue to be developed and D-Plan learning

and establish a composite digital-intelligent talent activities are conducted to enhance the knowledge and skills of

team to support strategic implementation. professional talent.

60 61Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Pursuing excellence in product quality Risks opportunities and potential impacts related to quality management

Risk type and description Potential financial Opportunity type and description Potential financial

CR Sanjiu is committed to promoting the heritage and innovation of traditional Chinese medicine enhancing China's Health system impact impact

improving people's well-being and improving their quality of life. Exploiting the opportunities created by the development of innovation

in the new era and addressing the quality and safety risks of chemicals and drugs have become important pillars for the high-quality and Reputational risk:

sustainable development of CR Sanjiu. Market opportunity:

Unstable quality at the source of

Chinese medicinal materials and Upgraded health consumption Increased compliance Increased brand

defects in suppliers' quality systems and increasing demand for quality costs; decline in

may lead to poor product quality medicines; building a high-quality

value and market

operating revenue confidence

Strengthen quality management consistency triggering quality

pharmaceutical brand to enhance

complaints and adverse events and product competitiveness customer

damaging brand reputation. stickiness and market share.Drug quality and safety are major livelihood and public safety issues bearing directly on people's health and social harmony and stability. CR

Sanjiu has always upheld the quality philosophy of "Integrity and sincerity craftsmanship in pharmaceuticals" established and improved its

quality management system exercised strict control over drug quality strengthened quality management across the entire production and

operation process and remained accountable for public health. Policy opportunity:

Compliance risk: Closely following national policy directions on drug quality supervision

Suppliers' failure to timely align with inheritance and innovation of

Governance the Company's quality standards or traditional Chinese medicine and

tightened industry quality supervision Increased supply chain security; improving Reduced legal and

causing upstream supply chain procurement costs the quality control system and compliance costs

We fully fulfill the principal responsibility for product quality and strictly comply with the Drug Administration Law of the People's Republic disruption may affect the supply of strengthening supplier collaborative

of China and the Implementing Regulations of the Drug Administration Law of the People's Republic of China ensuring product quality production materials and result in management to align with industry

throughout the entire production process and being accountable for customer health. Centered on the goal of "building an efficient and insufficient capacity. compliance requirements and obtain

controllable group-wide unified quality management system" we have established a quality management process of "corporate strategy policy support and market access

– quality policy – quality objectives – work indicators – assessment and evaluation." Benchmarking world-class quality management advantages.system improvement projects we continue to deepen the construction of a full product lifecycle quality management system and achieve

continuous quality improvement and enhancement..Strategy Impact risk and opportunity management

CR Sanjiu is steadily advancing on the path to becoming a leading enterprise in the industry benchmarking world-class enterprises and

improving its business layout with its core business expanding into the full spectrum of self-care. We conduct product quality control and with Improve the quality system

products delivering a positive experience and high-quality services meet the full-cycle and multi-level health needs of every family member—

from prevention health maintenance treatment to rehabilitation—thereby driving CR Sanjiu's innovation-driven development and high-quality We focus on continuously building a group-wide unified quality management system strengthening upstream control over Chinese medicinal

development. materials improving supplier audits and quality traceability mechanisms enhancing process standardization and quality consistency of

Chinese herbal pieces and Chinese herbal formula granules; strictly implementing the principal responsibility of traditional Chinese medicine

manufacturers strengthening post-marketing quality risk monitoring and reinforcing risk early warning and response in distribution and use to

ensure products are safe effective and quality-controllable.Key performance We implement the requirements of SASAC's Guidelines for Comprehensive Risk Management of Central Enterprises and the Ministry of Finance

and four other ministries' Basic Standards for Enterprise Internal Control and its supporting guidelines and in light of CR Sanjiu's actual

During the Reporting Period A total of conditions have established the China Resources Sanjiu Detailed Rules for Quality Risk Management to continuously promote quality risk

management in a deep and orderly manner and further enhance capabilities in risk identification analysis and response management. In 2025

24 5 57 the Company continued the group-level control model of the "Top 10 Annual Quality Risks" and implemented a "4+6+N" risk prevention and

control mechanism. . All risk control plans were completed 100% on schedule and overall risks were controllable.quality certifications were obtained by CR Sanjiu's operational sites GMP compliance checks

subsidiary manufacturing enterprises including have passed ISO 9001 were received and

FDA the EU and ISO 9001 certifications passed successfully

62 63Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Enhancing quality management Promote a quality culture

To further promote company-wide quality action fully implement the guiding principles of the 20th National Congress of the CPC and the

Second Third and Fourth Plenary Sessions of the 20th CPC Central Committee and relevant requirements including the CPC Central Committee

Quality management assessment and evaluation and the State Council's Outline for Building a Quality Powerhouse CR Sanjiu has built a quality culture led by leadership and participated in

by all employees continued to advance quality culture development carried out multiple forms of quality culture communication enhanced

In accordance with the Quality Policy and Objectives Management Policy headquarters coordinates the formulation of company-level the influence penetration and coverage of quality culture improved company-wide quality awareness and promoted high-quality corporate

quality objectives for the next year every fourth quarter and decomposes them level by level to subsidiaries departments and key development.positions ensuring "objectives assigned to positions and accountability assigned to individuals." In 2025 headquarters formulated

and issued annual quality objectives for each subsidiary across three dimensions deepening quality system construction preventing We further enhanced our political awareness following Secretary-General Xi Jinping's valuable explanations on productive renewable energy

quality risks and promoting quality management innovation"—achieving an organic alignment between strategic orientation and high-quality development and food and medicine safety guidelines. We actively carry out the decisions and activities of the Party Central

execution. Committee and National Council on rapidly building a welfare state and conscientiously fulfill our corporate responsibility for welfare firmly

instilling welfare first in all workers. To further strengthen all employees' awareness of quality risks CR Sanjiu conducts a series of quality-themed

training for all employees every year. During the reporting period subsidiaries carried out various activities including quality training regulatory

salons and thematic seminars ensuring employees master core skills and standard requirements for quality control thereby better fulfilling

quality requirements in daily work.Quality audits and corrective actions

In 2025 based on national regulatory directions regulatory priorities quality audit cycles and business needs we formulated the

2025 CR Sanjiu Quality Audit Plan. We continued to promote continuous improvement and enhancement of quality management

strengthen safeguards and prevent quality and safety risks. In 2025 CR Sanjiu completed quality audits of 46 production units In combination with CR Sanjiu's business characteristics and actual quality management conditions and with "Integrity

as planned. For weak links we organized certain production units to carry out special quality improvement actions on topics and sincerity craftsmanship in pharmaceuticals" as the guiding concept we implemented the quality policy of "customer

including effective operation of the quality management system contract manufacturing management plant facilities and first honesty and integrity improvement and innovation and excellent quality" and carried out the 2025 "Quality Month"

equipment management on-site management and validation and qualification to further improve quality management prevent activities..quality risks and support high-quality development.We organized quality-themed skills competitions such as thin-layer identification skills competitions internal trainer

selection and auditor selection to further improve quality skills and select and cultivate professional technical talent.Product quality sampling evaluation CR Sanjiu and its subsidiaries conduct quality-related training for suppliers each year based on supplier audit results

providing item-by-item defect analysis and corrective action explanations systematic training for weak modules and

Each year we organize sampling inspection and evaluation of products in market circulation. Internally preventive testing is used thematic training for suppliers on the newly issued national appendices for pharmaceutical excipients and pharmaceutical

to address newly emerging quality and safety issues further reducing quality risks. During the reporting period based on product packaging materials in 2025 helping suppliers improve their quality system construction in accordance with GMP appendix

risk assessments CR Sanjiu organized internal sampling evaluations for 16 product varieties and production units completed requirements and continuously improve.internal sampling evaluations for 134 product varieties. All evaluation results met quality standard requirements and product

quality and safety were reliable.Digital quality control

To align with the intelligent transformation trend of the traditional Chinese medicine industry CR Sanjiu has accelerated the

digitalization and intelligent upgrading of manufacturing. We widely promote the application of QMS and LIMS systems to realize

centralized management of quality data and real-time monitoring of key indicators significantly improving quality response efficiency

and the scientific basis of decision-making. At the same time we actively explore applications of new technologies such as AI-assisted

testing Process Analytical Technology (PAT) and traditional Chinese medicine fingerprinting advance the construction of smart

laboratories and promote a shift in quality control from "post-event inspection" to "process controllability and source prevention".Thin-layer identification quality-themed skills competition

64 65Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Metrics and targets Risks opportunities and potential impacts related to safeguarding customer rights

In line with regulatory requirements for pharmaceutical quality management and the deployment for building a quality powerhouse and to Risk type and description Potential financial Opportunity type and description Potential financial

effectively implement the Company's quality strategy CR Sanjiu has established quality-related indicators and targets and regularly tracks and impact impact

evaluates target completion. In 2025 there were no major liability accidents related to the safety and quality of products and services.Market opportunity:

Reputational risk: Market opportunity: Capturing

Target Progress Violations of the Advertising Law increasing consumer demand for Increased brand

Personal Information Protection Law Increased compliance service quality privacy protection and value and market

Improve a standardized quality system and promote Consumer Rights Protection Law etc. penalties rectification medication education under health recognition;

the implementation of multi-dimensional quality In 2025 a total of 24 domestic and international quality-related standard system certifications were obtained. in marketing promotion customer and legal costs consumption upgrading; enhancing expanded market system certifications.information management complaint customer satisfaction and brand loyalty share

Strengthen end-to-end risk prevention and control for handling or medication education. through high-quality omnichannel

quality and safety and promote full coverage of ISO In 2025 5 operational sites obtained ISO 9001 certification. services and responsible marketing..

9001 certification for manufacturing enterprises.

Reputational risk:

In 2025 CR Sanjiu completed quality audits of 46 production units as

Deepen multi-level quality management audits planned. Headquarters organized internal sampling evaluations for 16 Delayed after-sales response

strengthen product quality sampling evaluation and product varieties and production units completed internal sampling improper complaint handling Decline in sales;

compliance control. evaluations for 134 product varieties. All evaluation results met quality misleading marketing or privacy damage to brand

standard requirements and product quality risks were controllable. Policy opportunity: protection lapses may directly damage value

brand reputation and public trust and Aligning with national policies on

trigger negative public opinion. consumer protection compliant Reduced compliance

Delivering excellent service pharmaceutical marketing and risk costs; improved

data security supervision; improving

Technical risk: operational

service and compliance systems to

CR Sanjiu always places customer needs first and continuously invests effort in improving its customer service system. From optimizing efficiencyTechnical vulnerabilities or insufficient

consultation and inquiry processes to accelerating after-sales response times we strive for excellence in every detail steadily enhancing meet regulatory requirements and

customer satisfaction. The Company focuses on strengthening the supply capability of pharmaceuticals and health services and actively protection in customer information Potential penalties obtain compliance-based competitive

promotes the development of primary healthcare enabling more people to conveniently access high-quality medical services and systems e-commerce platforms or related to data advantages.contributing to the improvement of public health and wellbeing. customer service systems may result security

in data leakage or system interruption

Governance affecting customer service and

information security.We consistently comply with the Law of the People's Republic of China on the Protection of Consumer Rights and Interests and fully respect

and protect customers' lawful rights and interests. In daily operations we regard customer information security and privacy protection as top

priorities and work to establish a comprehensive protection system. We actively expand diversified communication channels ensuring that

every customer's voice is heard in a timely manner through hotlines email SMS and interactive communication via social media platforms.Impact risk and opportunity management

Information security system

CR Sanjiu has established a four-tier information security organizational structure. The Digital and Intelligent Leadership Committee serves as Customer privacy protection

the decision-making layer; the information security management teams at headquarters and each unit serve as the management layer; the

information security execution teams at headquarters and each unit serve as the execution layer; and the Digital and Intelligent Leadership

Committee simultaneously performs supervisory functions. This forms a closed-loop information security management mechanism with clear CR Sanjiu continuously improves its institutional framework. In accordance with the Cybersecurity Law Data Security Law and Personal

responsibilities and layered accountability. Information Protection Law the Company has formulated corepolicy including the CR Sanjiu Information Security Management Measures China Resources Sanjiu Data Security Management Measures and China Resources Sanjiu Data Backup and Disaster Recovery Management

Measures. In e-commerce scenarios supporting documents such as the China Resources Sanjiu Membership Rules and Privacy Authorization

Strategy Agreement and the China Resources Sanjiu Customer Service Center Management Manual standardize privacy protection operations in

membership information management customer consultation and order processing. Employee behavior in information processing storage

We are committed to building a comprehensive consumer complaint feedback mechanism to ensure that every customer request is properly and transfer is strictly regulated and unauthorized disclosure or tampering of customer information is strictly prohibited. A data security

handled. At the service level we pursue "five-heart" caring services—"reassurance sincerity attentiveness meticulousness and enthusiasm"— emergency response mechanism and information security liaison system have been established clearly defining graded reporting and

integrating care into every customer touchpoint. By continuously optimizing service processes and improving service quality we steadily handling procedures for security incidents. Data security audit rules are formulated full records are maintained for data access modification

enhance customer satisfaction and inject strong momentum into the continuous improvement of product quality and service standards. and deletion on e-commerce platforms and regular compliance self-inspections and risk assessments are conducted.

66 67Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

After-sales complaint handling New marketing models

The Company has formulated the Customer Complaint Management Operating Procedures to standardize complaint classification We gain insight into the fundamental needs of consumers and conduct innovative marketing activities across platforms and dimensions.complaint receipt procedures complaint investigation and handling and complaint response processes thereby improving complaint Through integrated online and offline marketing centered on holiday themes cross-industry collaborations and program IPs we enhance

handling effectiveness in a timely and effective manner. A 400-800-0999 customer service hotline has been established to ensure media communication efficiency increase customer engagement and continuously inject vitality into the Company's brand.complaints are properly handled while meeting customer consultation needs continuously improving the customer service system

and enhancing consumer satisfaction.Complaint Complaint Complaint Complaint Complaint

reception classification investigation handling follow-up 999 ganmaoling practicing health education social responsibility through creative marketing

CR Sanjiu Customer Complaint Redressal Procedures

In 2025 CR Sanjiu's e-commerce platform received 94 product and service complaints due to safety and health concerns. The 999 Ganmaoling under CR Sanjiu innovatively practices ESG

procedures for handling complaints are as follows: First in cases where misleading advertising results in inappropriate purchase or use responsible marketing. Centered on winter cold prevention

the advertisement is corrected and the refund is negotiated with customers taking into account their interests. Second for adverse health education and leveraging public scenarios such as

experiences experienced by customers appropriate refunds and compensation were based on photographs or videos of adverse commercial districts and subway stations the Company

symptoms provided by customers as well as hospital diagnosis certificates. The customer complaint department has a 100 % response customized caring and warming message copy alongside

rate an average response time of 1 to 3 days and a 100% resolution rate. surrounding advertisements without directly mentioning

celebrity names or the brand name.Promoting safe medication Through light and low-cost creative communication health

protection concepts were delivered in a friendly and engaging

We further strengthen safety signal detection adverse reaction monitoring revision of drug instructions and standardized management manner gaining wide positive feedback from consumers.of GAP labeling. Taking the opportunity of "March 15 International Consumer Rights Day" we carry out medication safety outreach

activities in communities and continuously disseminate drug safety knowledge to a broader range of stakeholders. This marketing campaign effectively strengthened 999

Ganmaoling's national brand image and goodwill integrated

health education into daily life enhanced public awareness

of winter cold prevention and represented a practical model

Implementing responsible marketing of integrating "creative marketing + health education + social

responsibility" within the pharmaceutical industry. 999 Ganmaoling Promotional Advertisement

We consistently uphold a consumer-first principle and actively practice responsible marketing and communication safeguarding

customers' right to be informed about product information and ensuring transparency. We also actively explore and establish new

marketing models and continuously expand diversified marketing channels.Metrics and targets

Responsible marketing and compliant communication CR Sanjiu consistently adheres to a customer-centric service philosophy. In line with regulatory requirements related to consumer rights

protection and to effectively implement the Company's excellent service development strategy we have systematically established indicators

CR Sanjiu continuously improves its responsible marketing management structure and responsibilities to ensure stable system operation. and targets related to service excellence built mechanisms for target tracking dynamic evaluation and closed-loop optimization ensured

The marketing management department organizes and leads daily responsible marketing activities while management supervises the effective implementation of service measures and continuously improved customer experience and service quality.implementation of responsible marketing.The Company expresses advertising content in a truthful lawful and healthy manner and strictly prohibits false or misleading promotion.We strictly comply with the Advertising Law of the People's Republic of China the Drug Administration Law of the People's Republic Target Progress

of China and the Provisions on the Administration of Drug Instructions and Labels and remain accountable to consumers. During the Complaint service response rate: 100%;

Reporting Period the Company issued the Responsible Marketing Policy clarifying responsible marketing requirements for internal and Establish an omnichannel high-efficiency customer

external personnel and realizing standardized management of responsible marketing. A responsible marketing review and supervision service system and continuously improve customer average response time: 1–3 days;

mechanism has been established. All marketing materials must be approved and marketing and sales behaviors are regularly inspected satisfaction and loyalty. resolution rate: 100%.to prevent misleading or concealed information.Through improving cybersecurity management technical and

The Company's audit department regularly conducts audits of e-commerce platform marketing and sales departments covering areas operational safeguard frameworks establishing data security

such as marketing expense management and sales conduct and requires rectification within specified time limits for identified issues. In

2025 a special audit was conducted on digital marketing business. Strictly implement data compliance requirements emergency response mechanisms and information security liaison

and achieve full-process security control of customer systems clarifying graded reporting and handling procedures for

To effectively implement responsible marketing practices regular media knowledge and responsible marketing training are conducted for privacy. security incidents and continuously strengthening information security

all marketing personnel. The Company has also established open complaint reporting channels and strictly implements investigation and risk prevention and control the Company experienced no data security

handling procedures for received feedback conducting periodic reviews to continuously improve responsible marketing management incidents and no customer privacy leakage events in 2025

mechanisms.

68 69Adhere to the principles of green and Upholding Integrity and Driving Adhering to Integrity and Clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT distance and jointly paint an ecological Innovation to Jointly Safeguard a Regulations and Laying a Solid

home National requirements Harmonious Society Foundation for Sound Operation

Ensure drug safety

Emergency response

An EHS Committee has been established to oversee emergency response efforts related to food and pharmaceutical safety

We continuously deepen and improve our product lifecycle management system aiming to "create an efficient and controllable quality incidents. The company has developed key system documents including the "Detailed Rules for EHS Incident Management

control model." From raw material management and drug production to warehousing and transportation and then to product traceability at China Resources Sanjiu" and the "Guidance on Comprehensive Emergency Response Plan for Food and Pharmaceutical

and pharmacovigilance we integrate risk management into every stage of the product lifecycle taking the quality of medicines (efficacy Safety Incidents at China Resources Sanjiu" thereby establishing a robust and standardized operational mechanism for

safety and quality) as the cornerstone of our company's survival and development and being responsible for public health. responding to food and pharmaceutical safety emergencies. These measures guide and standardize emergency response

procedures across all levels of the organization significantly enhancing the speed of response and the coordination and

effectiveness of incident management.Clear delineation of responsibilities between headquarters functional departments and subsidiary enterprises has been

defined promoting efficient cross-level collaboration. In the event of an incident an emergency response task force is

Source control promptly dispatched to the site to provide on-site guidance and support ensuring timely accurate and effective actions.Through systematic management and practical response drills the company continues to strengthen its capability in

The Company extends its quality control system deeply to the upstream of the industrial chain establishing national seed preventing and mitigating pharmaceutical safety risks. This proactive approach minimizes potential impacts on public

and seedling bases for Chinese medicinal materials and standardized planting bases for Chinese medicinal materials. It health and social reputation firmly safeguarding the safety of food and pharmaceutical products.strictly implements the inspection process for Chinese medicinal materials entering the factory conducts comprehensive

quality audits and dynamic risk management of material suppliers and regularly inspects their planting environment In 2025 the company reported no quality or safety incidents reflecting a stable and controllable overall quality and safety

production and processing and other core links to build a solid quality defense line for Chinese medicinal materials from the performance underscoring the effectiveness of its comprehensive risk prevention and control system.source. For key Chinese medicinal material varieties the Company simultaneously establishes planting bases in production

areas and fully promotes GAP standardized production. At the same time it builds a supply chain risk management

mechanism conducts regular supply risk assessments and early warnings identifies and prevents potential risks in advance

and comprehensively improves the resilience of the supply chain while effectively ensuring the stability and quality control Product recall

of raw material supply.The company has established the "China Resources Sanjiu Product Recall Management System" clarifying the handling

procedures after adverse drug events in accordance with the national "Drug Recall Management Measures." After

collecting relevant information the company and its subsidiaries promptly organize drug safety hazard investigations and

assessments determine the recall level formulate and implement recall plans and generate recall summary reports. All

Pharmaceutical production relevant investigations plans progress and handling are reported to the provincial drug regulatory authority as required.The recall summary report must explain the product shipments recall quantities and balance. Simultaneously the company

The Company continues to increase its R&D investment steadily promotes the upgrading of product quality standards thoroughly investigates the root causes of recall quality incidents formulates corrective and preventative measures tracks

and simultaneously improves internal control standards for materials and products; it is building a process technology their implementation and evaluates their effectiveness. The company and its subsidiaries regularly conduct simulated

innovation platform to empower product competitiveness through technology. At the same time it strictly implements recalls to ensure that actual recall work is carried out in accordance with regulations. Furthermore each subsidiary in

the primary responsibility of the drug marketing authorization holder for drug quality and safety organizes all subsidiaries accordance with the emergency management requirements for food and drug safety emergencies revises relevant systems

to fully implement relevant requirements strengthens quality supervision and management throughout the entire drug and procedures for product recall pharmacovigilance drug traceability and quality and safety incident management and

production process and effectively prevents quality and safety risks in the production process. simultaneously conducts emergency drills and simulated recall activities for food and drug quality and safety incidents. In

2025 the company did not experience any product quality-related recalls or any general or above-level food and drug quality

and safety incidents.Warehousing and logistics Pharmacovigilance

Promote the integrated development of transportation unify and centrally manage production logistics and sales logistics

establish a set of standardized transportation management processes and standards and ensure the quality and safety of Strictly adhering to relevant pharmacovigilance regulations a comprehensive pharmacovigilance system has been established

product transportation. covering the entire lifecycle of drugs from pre-market clinical trials to post-market use. This system encompasses the entire process of adverse reaction and drug-related issue detection monitoring evaluation identification assessment prevention and control

and is continuously optimized to ensure timely and effective management of drug safety risks and safeguard public medication

safety. A multi-channel adverse reaction information collection and feedback mechanism has been established utilizing channels

such as operating companies medical institutions customer service hotlines and academic literature to conduct proactive

post-marketing surveillance and collect serious adverse events during clinical trials as well as SUSAR reporting achieving

Drug traceability comprehensive collection of drug safety information throughout its entire lifecycle. An emergency response mechanism for drug

safety incidents has been established standardizing emergency response procedures to effectively prevent drug safety incidents

The Company has established ERP WMS TMS OMS and product traceability systems to achieve full-process traceability and minimize their harm to public health and safety. A pharmacovigilance audit and continuous improvement mechanism has

of warehousing and transportation ensuring that drug quality and risks are controllable during warehousing and been established conducting regular internal self-inspections and audits to assess the suitability adequacy and effectiveness

transportation. Simultaneously by adding automated equipment such as AGVs elevators and visual barcode scanners the of the system. Active cooperation with external regulatory bodies' GVP inspections is also undertaken; both internal and external

Company has achieved automation and intelligence in warehousing operations improving operational accuracy and drug inspection results for this year have met requirements ensuring the pharmacovigilance system's compliance and continuous

quality and safety. improvement.

70 71Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Promoting health accessibility

CR sanjiu rare and major disease drugs Disease area/indications/ therapeutic functions Marketing status

We remain committed to our original aspiration of safeguarding public health. By optimizing production processes and controlling costs

scientifically we ensure that safe and reliable health products and professional services are accessible to the public at affordable prices. Chest Stuffiness (due to qi deficiency and

Simultaneously we deepen collaboration with primary healthcare institutions through diversified initiatives such as medicine donations and Qishen Yiqi Dripping Pills blood stasis) Angina Pectoris of Coronary Marketed

medical skills training. These efforts help extend the reach of medical services fulfill our health responsibilities and social commitments and Heart Disease

expand health benefits to broader populations.Exogenous wind-cold internal damp

Huoxiang Zhengqi Dripping Pills stagnation: headache dizziness epigastric/Pharmaceutical R&D for rare and major diseases abdominal distension and pain vomiting Marketed

diarrhea gastrointestinal cold

Strengthening collaborative research and development and independent innovation the Company is advancing the development of ONC201

for the treatment of H3K27M-mutant diffuse midline glioma. The Company has obtained exclusive rights for the development production

and commercialization of this product in Greater China. The locally produced product has completed Phase I clinical trials in China and has Compound Danshen Dripping Pills (for Diabetic Diabetic Retinopathy Marketed

been included in the Key Product Service List of the CDE Greater Bay Area Sub-Center contributing to improving of rare disease prevention Retinopathy)

and treatment. In 2025 in collaborate with Nanjing Aierpu Regenerative Medicine we jointly developed HiCM-188 the world's first iPSC-

derived cardiomyocyte innovative drug to receive simultaneous clinical trial approval synchronously in China and the US. This addresses the Headache dizziness blurred vision irritability

unmet clinical need of severe chronic ischemic heart failure and the product has now entered Phase II clinical trials in China helping to solve Yangxue Qingnao Granules/Pills insomnia (due to blood deficiency and liver Marketed

clinical treatment challenges in the field of heart failure. The Company continues to advance the development of PXT3003 for the treatment hyperactivity)

of Charcot-Marie-Tooth disease type 1A (CMT1A) which is currently under review by the CDE (Center for Drug Evaluation). As the world's first

and only treatment for CMT1A PXT3003 can significantly improve the limitation of daily activities in CMT1A patients with a favorable safety

profile and is expected to fill the gap in this rare disease treatment area. Meanwhile CR Sanjiu is conducting drug R&D for major diseases PXT3003 Charcot-Marie-Tooth Disease Type 1A (CMT1A) In Research

such as stroke and malaria addressing gaps in disease treatment. At the end of the Reporting Period the Company had a total of 20 R&D

projects targeting 9 rare/major diseases (by indication) among which 10 products for 8 categories of rare/major diseases (by indication) have

been approved for marketing. CMI2402 Primary Biliary Cholangitis In Research

1 Major diseases refer to the 20 diseases that impose the heaviest burden of disability-adjusted life years globally.

New Artemisinin Derivative Formulations Malaria In Research

List of rare and major disease drugs from cr sanjiu KYAZ01-020 Stroke In Research

CR sanjiu rare and major disease drugs Disease area/indications/ therapeutic functions Marketing status

B2065 - Adipose-derived Mesenchymal Stem Cell

Injection Acute Ischemic Stroke In Research

Colchicine Tablets Familial Mediterranean fever Marketed TCM2008 - Qishen Yiqi Dripping Pills

(New Indication: Diabetic Nephropathy) Diabetic Nephropathy In Research

Xuesaitong Series Products Acute ischemic stroke Marketed

TCM2501 - Qihuang Yishen Granules Diabetic Nephropathy In Research

Puyuek (Recombinant Human Prourokinase) Stroke Marketed ONC 201 Capsules H3 K27M-mutant Diffuse Midline Glioma In Research

Artemisinin Its Derivatives (APIs and Preparations) Malaria Marketed iPSC-derived Cardiomyocyte Innovative Drug HiCM-188 Severe Chronic Ischemic Heart Failure In Research

TCM1408 - Changkang Granules Diarrhea-predominant Irritable Bowel Wakix (Pitolisant Hydrochloride Tablets) Narcolepsy Marketed Syndrome (IBS-D) In Research

Chest Stuffiness (due to qi stagnation and CMI1203-JS1-1-01 Moderate to Severe Depression In Research

Compound Danshen Dripping Pills blood stasis) Angina Pectoris of Coronary Marketed

Heart Disease

72 73Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Construction of a modern logistics system International business is steadily advancing

We are improving a specialized intelligent and lean modern logistics system to provide robust support for the safety stability and

accessibility of medicines from the supply end. We have established a decision-support system for warehouse network planning. Utilizing In 2025

scientific data models and algorithms and factoring in business scale delivery timelines and logistics costs it generates real-time

suggestions for optimal warehouse network layouts. Our nationwide warehouse network achieves full coverage effectively improving Sales of artemisinin-based preparations have achieved steady growth in over 30 malaria-endemic countries and regions

delivery speed and reducing logistics operational costs while meeting business demands. Warehouse functions are categorized based on including in Africa.product attributes and production-sales regions employing a "Central Warehouse + Regional Warehouse" operational model to enhance

coordination logistics efficiency and customer service. We are advancing integrated transportation management by centrally overseeing Cotexin (artemether-lumefantrine) a WHO-prequalified product has obtained marketing approval from local drug regulatory

both production and sales logistics. Standardized transportation management processes and diversified distribution models such as authorities in 15 countries including Ethiopia Tanzania Malawi Ghana Angola and Zimbabwe.full truckload less-than-truckload and express delivery to ensure product quality and safety during transit catering to various business

scenarios. We are deepening lean logistics initiatives implementing flexible billing models for third-party warehousing and exploring tiered Panax notoginseng (Sanqi) products have received marketing approval in Vietnam Myanmar Cambodia Mongolia Uzbekistan

pricing models to reduce storage costs. The development of smart logistics is underway. Systems like ERP WMS and TMS enable end-to- and Indonesia.end traceability providing data for operational optimization. Our self-managed warehouses are advancing automation; fully automated

unmanned receiving is already operational while automated equipment like AGVs and visual scanning systems are in testing and integration. Huxin Dan (Heart-protecting Pill) and Yangxue Qingnao Granules have obtained herbal preparation re-registration approval from

Future projects include automated truck loading continually enhancing the intelligence level of our logistics. the Nigerian drug regulatory authority (NAFDAC).Q ishen Yiqi Dripping Pills and their capsule formulation have received traditional medicine re-registration approval from the

Malaysian drug regulatory authority (NPRA).Fair and reasonable pricing H uxin Dan (Heart-protecting Pill) has obtained phytomedicine re-registration approval from the drug regulatory authority of the

Democratic Republic of the Congo.We strictly adhere to laws and regulations including the Anti-Monopoly Law of the People's Republic of China and the Guidance on

Strengthening Current Drug Price Management refraining from interfering with terminal drug prices to protect fair market competition.Pricing is determined for different products in accordance with the China Resources Sanjiu Marketing Department Product Price Adjustment

Management Rules ensuring patients have access to medicines at reasonable and fair prices. Furthermore in different national markets we

establish fair and flexible pricing mechanisms based on local economic conditions and the actual needs and payment capabilities of patients. Overseas expansion and assistance

We actively respond to national policies continuously promoting the inclusion of our products in the national medical insurance catalog

to benefit public welfare with more favorable drug prices. Some products are included in the national medical insurance reimbursement Kunming Pharmaceutical Group actively fulfills the international social responsibilities by conducting foreign aid training programs. These

list and centralized procurement programs and are subject to tiered pricing as per national regulations allowing patients to enjoy different programs have covered 226 participants from 26 countries across various professional fields including infectious disease prevention and

medical insurance reimbursement ratios for different drug categories. At the end of the Reporting Period the Company is steadily advancing control and traditional medicine. Both ongoing and planned projects have achieved a high level of fulfillment. We focus on promoting the

the online listing and hospital admission of products winning centralized procurement bids as provinces implement the procurement results dissemination of TCM culture and medical technologies to Belt and Road countries and nations like El Salvador. Through workshops on-

fulfilling the requirements for fair and transparent drug pricing through concrete actions. site practical training and other formats we empower local medical talent development and healthcare capacity building serving as a

bridge for cultural exchange and technical collaboration thereby fulfilling our responsibility in building a global community of health for

all. Concurrently we continue to expand our overseas market presence with a strategic focus on deepening our footprint in Africa. We are

establishing a diversified sales network through cooperation with local distributors establishing in-house sales teams setting up subsidiaries

Combating counterfeits and substandard drugs (e.g. a local pharmaceutical company in Tanzania) and developing cooperation models tailored for West Africa ensuring efficient product

distribution. We actively engage with public institutions in multiple African countries such as Ministries of Health and National Malaria

We support government authorities in strictly regulating counterfeit and substandard drugs protecting the legitimate rights and interests of Control Programs and participate in anti-malarial drug tenders issued by local governments and international organizations like the Global

consumers and patients in accordance with the law. Through platforms such as the "Aichuang Regulatory Code" and "Code for Assurance" Fund. In 2025 we secured a Global Fund procurement order for artemisinin-based anti-malarial drugs covering approximately 1.23 million

we have established a comprehensive product informatization traceability system ensuring the production and distribution path of drugs treatment courses. By supplying high-quality artemisinin-based anti-malarial drugs we support national malaria control programs provide

is queryable and traceable. We strengthen sampling inspections and verification during the design and usage of labels to reduce the risk of accessible and affordable medicines to people in high-burden regions and contribute to the development of global public health.counterfeit substandard or mislabeled drugs entering the pharmaceutical distribution system.Expansion in developing countries and emerging markets

Kunming Pharmaceutical Group plans to achieve market access and achieve scaled sales for its key products (such as the Xuesaitong series

and artemisinin-based products) in 3 to 5 core emerging market countries by 2027 including target markets such as Kyrgyzstan Uzbekistan

Zimbabwe and Nigeria. We continuously explore international business cooperation channels and models promote product approvals and

sales and increase our presence and market share in emerging markets to provide better more accessible pharmaceutical solutions for

patients globally. Additionally Tasly actively responds to the Belt and Road Initiative enhancing exchanges and collaborative development

with developing countries and emerging markets in areas like drug R&D and registration. It delivers high-quality traditional Chinese

medicine (TCM) products and health services to countries along the Belt and Road using TCM as a bridge to promote inclusive global health.Leveraging platforms such as the SCO Summit in Tianjin Tasly deepens cooperation with partner countries in traditional medicine research

talent cultivation and other areas promoting the international dissemination of TCM culture and health concepts and contributing to the Kunming Pharmaceutical Group's training program in Africa

health and well-being of people in Belt and Road partner countries.

74 75Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Industry cooperation and win-win Upholding transparent procurement

Suppliers are crucial strategic partners for the company's high-quality development. CR Sanjiu consistently adheres to a core philosophy of

Synergistic cooperation and development mutual benefit and win-win cooperation. We select partners based on scientific and rigorous criteria strictly follow the CR Sanjiu Supplier

Code of Conduct and have established management specifications such as the Supplier Quality Management Procedure. We encourage

suppliers to deeply implement sustainable development concepts thereby strengthening the foundation of the supply chain at its source

Upholding the principles of openness and win-win cooperation we actively build a diversified strategic cooperation system continuously and building a symbiotic and mutually beneficial supply chain ecosystem.deepen synergy and interaction with our partners and strive to promote the overall leapfrog development of the industry chain. By

collaborating with numerous partners and expanding the breadth and depth of our cooperation we strive to realize our shared vision of

mutual development and mutual benefit.Key performance

Developing university-enterprise cooperation Number of suppliers audited Number of potential suppliers rejected due to

non-compliance with sustainability requirements

Aligned with strategies for scientific innovation research

commercialization and talent cultivation CR Sanjiu and 1076 4

our subsidiary CR Shunfeng have established in-depth

collaborations with multiple universities including Zhengzhou

University Shenyang Pharmaceutical University and China Number of supplier partnerships terminated due to Percentage of suppliers who signed the Sunshine

Pharmaceutical University. Leveraging the universities' non-compliance with sustainability requirements Declaration

strengths in scientific research and talent in fields like life

sciences and pharmacy combined with the enterprise's 14 100%

industrial application capabilities we are building a university-

enterprise collaborative innovation ecosystem. Through

multi-level cooperation we deepen the co-cultivation

of talent fostering high-caliber professionals with both

theoretical foundation and practical experience. This drives

the industrialization of research outcomes helps establish a Supplier management

benchmark for university-enterprise collaborative innovation CR Sanjiu Signs a Strategic Cooperation Agreement

and supports national health strategies. with Zhengzhou University CR Sanjiu strictly adheres to the Supplier Quality Management Procedure assigning dedicated personnel to continuously collect and

review suppliers' EHS (Environment Health and Safety) management status and relevant certifications. We closely monitor regulatory

developments systematically gather and audit suppliers' safety environmental and occupational health management systems and

certifications. A dedicated role is established to consistently track changes in regulatory policies industry compliance violations and

significant supplier incidents ensuring suppliers continuously meet legal regulatory and the company's ESG standard requirements.Promoting industry advancement

We are committed to deep strategic collaboration with our partners regularly holding business negotiations industry forums and industry Supplier anti-corruption

summits to jointly discuss market and technological innovation achieve resource sharing and explore new paths for industrial development.Simultaneously we are building academic exchange platforms actively participating in industry activities implementing national policies We have developed and continuously improve our Supplier Code of Conduct requiring suppliers and other business partners to commit

and enhancing our industry influence. We proactively participate in and lead the formulation of industry standards focusing on product to compliance with integrity regulations. We require suppliers to establish anti-corruption policies and a compliance inspection system to

quality and production processes to improve the overall quality and operational efficiency of the industry and promote the innovative ensure the effectiveness of their anti-corruption mechanisms.development of the traditional Chinese medicine industry.Supplier performance evaluation

Key performance The Company implements tiered and categorized management based on the supplier management system. For suppliers of centrally

procured materials multi-dimensional performance evaluations are conducted quarterly. Led by the procurement department and

coordinated with production warehousing & logistics and quality management departments data is collected. Evaluation metrics cover

Participated in the formation of National Standards Industry Standards core elements such as quality qualification rate on-time delivery rate and service responsiveness. Supplier ratings are determined based

1 13 4 on evaluation results accompanied by differentiated incentives and corrective measures.

international Standard

76 77Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Mitigating supplier risks Ensuring supply and logistics quality

In an increasingly complex supply chain environment supplier risks can impact business operations at any time. We regard mitigating We actively advance the construction of a modern logistics system characterized by specialization scale and integration. We are committed

supplier risks as a crucial component of supply chain management. By establishing a comprehensive risk response mechanism and to meeting the pharmaceutical and medical needs of consumers and patients with high quality and efficiency ensuring medicines reach a

implementing precise effective measures we ensure the stability and security of the supply chain safeguarding the Company's sustainable broader population in a more timely manner.development.Supply chain risk monitoring Supply chain risk prevention Warehouse network planning

A "Core Material Supply Risk Level" monitoring indicator has been Through the continuous assessment and early warning of core We have established a decision-support system and scientific data models for warehouse network planning. Utilizing algorithms that

established. This metric gauges the number of core materials material supply risks we actively monitor the supply market for factor in business scale delivery timelines and logistics costs the system generates real-time recommendations for optimal warehouse

potentially facing supply shortages or abnormal price fluctuations the company's critical materials. Based on identified risks we network layouts.within the next 3-6 months. The risk level for each individual formulate short- medium- and long-term response measures

material is indicated by a traffic-light system: a yellow light signals coordinate resources to address supply challenges and establish

a potential general supply risk and a red light signals a potential channels to secure supply safety.significant supply risk. Warehouse categorization

Warehouses are categorized based on product attributes and production-sales regions. A "Central Warehouse + Regional Warehouse"

Supplier quality audits operational model is employed to achieve multi-warehouse synergy enhancing logistics operational capabilities and customer service levels.The Company and our subsidiaries conduct comprehensive quality evaluations of direct suppliers and material suppliers in accordance

with established procedures. Key evaluation dimensions include on-site audit scores and the rate of qualified supplied materials. At the

beginning of the year suppliers are dynamically assessed and rated based on their audit cycle scores and the qualified supply rate from the Integrated transport development

previous year. Differentiated audit and risk control strategies are then developed according to the rating results. During on-site audits of Tier-

1 suppliers CR Sanjiu concurrently extends the review to examine their management documentation implementation records and quality We implement unified and centralized management of production and sales logistics establishing standardized transportation

audit records concerning their own Tier-2 suppliers. Any identified issues are documented as audit deficiencies with follow-up for corrective management processes. The system supports various distribution modes including full truckload less-than-truckload and express

actions ensuring the compliance of Tier-2 suppliers' quality systems and product quality. In 2025 the company completed the scheduled delivery meeting the needs of different business scenarios and ensuring the quality and safety of product transportation.periodic audits of Tier-2 suppliers as planned. All audit conclusions were "Pass" with continuous tracking of subsequent corrective actions.Supplier product safety and quality training Lean logistics development

The Company and our subsidiaries conduct annual audits of all suppliers according to the annual audit plan. The audit team leader organizes We are transitioning third-party logistics warehousing services to a flexible billing model and exploring tiered pricing models to reduce

targeted training for key personnel of the audited suppliers focusing on deficiencies and weaknesses identified during the audit. The training storage costs. A fixed transport capacity pool model has been created establishing fixed round-trip transportation routes through network

outcomes have met expectations. During the Reporting Period the Company and our subsidiaries organized various supplier drills covering planning to achieve full truckloads. This improves transportation efficiency while reducing costs.over 6700 participants from supplier organizations and totaling more than 42000 person-hours. This ongoing effort continuously enhances

suppliers' compliance awareness and competency in product safety and quality management.Smart logistics development

Systems such as ERP and WMS are utilized to achieve end-to-end traceability of the logistics process providing data support for logistics

Case:cr sanjiu conducts specialized supplier compliance training operations and optimization. Our self-managed warehouses continue to advance automation; fully automated unmanned receiving has

been implemented and an automated truck loading project will be promoted in the future.In 2025 aligned with the GMP annex requirements for

pharmaceutical excipients and packaging materials

issued by the National Medical Products Administration Logistics emergency management

CR Sanjiu organized specialized video training on

quality management and compliance for suppliers of We have formulated regulations such as the CR Sanjiu Logistics Supplier Procurement Management Rules and established an emergency

pharmaceutical raw materials excipients and packaging logistics support mechanism for unexpected events. Guided by the Logistics Emergency Management Operational Guidelines we respond

materials. This initiative strengthened the suppliers' promptly to emergencies like pandemics and natural disasters to ensure the stable operation of logistics activities.understanding and implementation capabilities regarding

regulatory requirements and key quality control points.On-site View of the Specialized Compliance Video Training

78 79Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Creating a harmonious workplace

Win-win cooperation with suppliers CR Sanjiu adheres to a "people-oriented" development philosophy considering talent the cornerstone of the Company's high-quality

development. We are committed to fostering a respectful inclusive and collaborative work environment focusing on employees' growth

needs and their physical and mental well-being ensuring every contribution is seen and every dream can grow. In 2025 we conducted a

We highly value win-win cooperation with our suppliers. Through a series of effective systems and measures we continuously strengthen satisfaction survey focusing on dimensions such as employee care and health check-ups covering 100% of employees. The satisfaction rate

the capacity building of our supplier partners. We provide them with professional technical guidance to enhance their ability to fulfill regarding employee care initiatives reached 82.2%. To further enhance employee satisfaction CR Sanjiu has identified areas for improvement

responsibilities. By offering on-site technical guidance and information sharing to key raw and auxiliary material suppliers we continually and is continuously optimizing and tracking various management measures.bolster the sustainable development capabilities of the supply chain.Protecting employee rights and interests

Key performance We strictly comply with the requirements of relevant laws and regulations such as the Labor Law of the People's Republic of China and also

refer to international standards like conventions of the International Labour Organization (ILO) to regulate management in recruitment and

dismissal compensation and promotion working hours and leave thereby safeguarding the legitimate rights and interests of our employees.In 2025 the Company and our subsidiaries organized

various drills for suppliers totaling over

Supplier audit rectification

completion rate of 6700 Safeguarding fundamental rights

100 We strictly adhere to relevant national laws and regulations such as the Labor Law of the People's Republic of China and the Provisions on % participants the Prohibition of Child Labor legally and compliantly protecting employee rights. We sign formal labor contracts with employees establish

by 2025 reasonable working hours and leave systems and fully ensure that employees' legitimate rights are not infringed upon. Comprehensive compensation and employment policies are in place to ensure the compliance openness and transparency of recruitment and promotion

processes. In 2025 there were no incidents of discrimination employment of child labor or forced labor.The total number of trainees exceeded Upholding equal employment

42000 hours We consistently advocate for a diverse equal and people-oriented work atmosphere adhering to a zero-tolerance principle towards

discrimination and fostering an honest trusting diverse and inclusive work environment. In recruitment compensation training

promotion and other areas we do not discriminate against or treat employees unfairly based on religion race gender educational

background appearance age nationality etc. The Company also actively provides employment opportunities for disadvantaged

groups creating an equal inclusive and harmonious work environment.Strengthening democratic management

Case:strengthening quality through standards achieving synergistic wins:

cr shenlu conducts supplier training 5 We have improved the system for Workers' Congresses promoting the establishment of these congresses at all levels where applicable and have built a multi-level Workers' Congress system from the corporate headquarters to grassroots enterprises. In 2025 the Company's

Workers' Congress reviewed and approved significant matters concerning employees' vital interests such as adjustments to the enterprise

In August 2025 CR Shenlu hosted a communication conference for medicinal material suppliers under the theme annuity scheme and listened to and discussed the business operation report enabling employee representatives to deeply participate in the

"Pharmacopoeia as the Guideline Internal Control as the Safeguard; Win-Win Cooperation Shared Development." The Company's major decision-making processes.event focused on discussing core issues of medicinal material quality improvement and supply security. The training

systematically communicated the Company's latest raw material quality standards and quality management requirements

to suppliers. It deepened the shared awareness of quality control between the supply and demand sides effectively broke Ensuring unobstructed grievance channels

down information barriers to collaboration facilitated smoother and more efficient future cooperation strengthened The Company has established formal employee grievance channels ensuring they are unobstructed and that the reasonable demands of

the frontline defense for drug raw material quality and solidified the foundation for mutually beneficial supply chain complainants are effectively resolved while strictly maintaining the confidentiality of grievance information and its content. We provide

collaboration. employees with diverse and convenient communication platforms such as the "Sanjiu Forum" "Green Mailbox/ Discipline Inspection

Complaints" "Run Work" and the "Employee Voice Platform " for internal communication sharing views and handling complaints

fostering a positive and transparent corporate culture. The Company has established a Labor Dispute Mediation Committee and formulated

corresponding mediation procedures. Applicants can file a labor dispute mediation request and if it falls within the scope of mediation

and the other party is willing a mediator will conduct the mediation. The grievance handler should correct any non-compliant behavior

based on investigation findings and impose penalties such as warnings demerits or termination of labor contracts; illegal activities should

be transferred to judicial authorities. The grievance handling result should be promptly communicated to the complainant who may file

another appeal if dissatisfied with the outcome.

5 China Resource Shenlu

80 81Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Securing compensation and benefits Safeguarding employee safety

We have improved the compensation management system. For existing business we enhance workforce efficiency through various

management methods; for new business we provide high-stimulus incentives. This achieves consistency between "responsibility and We place high importance on employees' occupational health and safety consistently upholding a "people-oriented safety-first"

benefit capability and value and performance and reward" in employee compensation distribution. development philosophy. The life health and rights of our employees are prioritized in our operations and management. We fortify safety

defenses through systematic institutional development weave a tighter protection network with precise risk control foster a culture of

care through normalized health safeguards and solidify the foundation for the company's sustainable development with robust safety

management effectiveness.Perfecting the welfare system

We provide all employees (including full-time part-time and contractors) with a rich array of non-salary benefits. We insist on legally and

compliantly contributing to social insurance and housing provident fund for employees and have established an enterprise annuity scheme Governance

and purchased supplementary commercial insurance to provide more comprehensive security for employees' healthcare and retirement. CR

Sanjiu has issued policies such as the CR Sanjiu Employee Relations and Personnel Management Measures which stipulate that employees In accordance with the country's relevant safety management requirements and considering the characteristics of the pharmaceutical

with children born in compliance with laws and regulations are entitled to 10 days of annual parental leave until the child reaches three years industry we continuously optimize and improve our EHS management system. We have organized revisions to CR Sanjiu's environmental

of age. This series of policies covers all employees of CR Sanjiu including full-time part-time and contractors. health and safety management regulations the EHSQ incident management rules and the annual assessment implementation rules.EHS management system audits are conducted in conjunction with the annual safety inspection campaign.Key performance Strategy

The labor contract signing Trade union employee The total number The number of new employees

rate reached coverage reached of employees was We steadfastly adhere to the safety policy of "Safety First Prevention Foremost Comprehensive Management". We are committed to added during the year was

100 86 30304 2801 building a systematic and standardized occupational health and safety management system and fostering a healthy and safe work %. %. . . environment. By establishing and improving the safety responsibility system strengthening full participation and scientific management

the company continuously enhances safety production measures to ensure the effective execution of all safety management tasks.The proportion of Women accounted for Women accounted for Women held 50.85% of Women held Simultaneously the Company focuses on cultivating employees' awareness of safety and occupational health promoting a deeply

female managers 56.17% of junior 18.30% of senior management positions in 60.36% of ingrained safety culture. This aims to minimize safety risks to the greatest extent and provide solid assurance for the smooth conduct of

was 44%. management positions. management positions. revenue-generating functions. STEM-related positions. production and operational activities.

7.02% Employee safety-related risks opportunities and potential impacts

48.73% 2128 people hold master's degrees or above

19.54% Risk types and Potential financial Opportunity types and descriptions Potential financial descriptions impact impact

12450 undergraduate students Employee

Employee Education

Gender 9806 students had associate degrees Structure Policy Opportunities

Structure 32.36% 41.08% work-related injuries/occupational diseases;

5920 students had a high school education productivity losses due to work stoppages; Reduced risk of Safety Risks

or below Increased compliance

costs; medical and reduced production efficiency.compliance penalties

51.27% Failure to provide and costs associated

effective occupational compensation expenses Enhancing Occupational Health and Safety with workplace

health and safety for work-related injuries/ Management injuries/occupational

7.12% protection to employees occupational diseases; diseases; decreased 21.23% threatening their health productivity losses due to Improve the occupational health and safety losses from production

15535 male employees which may lead to legal work stoppages; reduced management system optimize protective interruptions; enhanced

6433 people were 29 years old or younger penalties. production efficiency. measures and elevate the level of employee corporate compliance Employee occupational health protection aligning image.

21711 people were aged 30-50 Age with compliance requirements of the Structure

14769 female employees pharmaceutical industry.

2160 people were 51 years of age or older

71.64%

82 83Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Impact risk and opportunity management Occupational health management

We have established a comprehensive systematic risk and hazard management system forming two robust lines of defense: "Prevention

at Source" and "Control during Process." This approach aims to control risks before they become hazards and eliminate hazards before Care and protection for special groups

they cause incidents thereby moving the safety production checkpoint forward. This solidifies a strong safety barrier for the company's

stable operation and high-quality development. We provide special care measures for female employees pregnant women new mothers and breastfeeding employees such as

ergonomic protective equipment adjusted work arrangements and designated rest areas. For employees with disabilities we assign

roles with simpler operational requirements and comprehensively install assistive facilities like handrails and ramps in living areas

Safety production management such as dormitories cafeterias and restrooms to eliminate potential safety barriers.Emergency management system

Occupational health training职业健康安全管理体系认证证书

Occupational Health And Safety Management System Certification

证书编号: 86124S0019R0M

Adhering to the principle of "Prevention First Combining Prevention with Emergency Response" and focusing on the construction 兹证明：

辽宁华润本溪三药有限公司

of the "One Plan Three Systems" framework we have built a systematic and complete emergency management system. We We regularly organize occupational health and 统一社会信用代码：912105007323055398

routinely conduct drills and emergency training as required by regulations effectively strengthening the emergency preparedness safety education and training. This helps employees 注册地址: 辽宁省本溪经济技术开发区医药园区 经营地址：辽宁省本溪经济技术开发区医药园区

of all personnel comprehensively fortifying their emergency awareness and tangibly enhancing the capability to prevent and proficiently master the operational standards for 符合职业健康管理体系符合标准：

GB/T 45001-2020/ISO 45001:2018

respond to incidents and emergencies. protective equipment clearly understand job- 认证范围：

related risks and emergency response procedures 药监局许可范围内的颗粒剂、硬胶囊剂、片剂的生产所涉及的职业健康安全管理活动

tangibly enhance their self-protection awareness

and capabilities and effectively reduce occupational 签发日期: 2024-03-01 到期时间: 2027-02-28

签发人：

health and safety risks. 领航盛达（北京）国际认证有限公司 北京市房山区书院南街 12号院 盖章：

3号楼3层331

Conducting hazard identification 网站：www.lhsdbj.cn 注: 本证书由领航盛达颁发，证书有效期以证书上二维码扫描查询内容为准，证书有效信息可在本机构网站（www.lhsdbj.cn）查询，证书信息亦可在国家认证认可监督管理委员会官方网站（www.cnca.gov.cn）查询。

We formulated the CR Sanjiu Work Safety Hazard Investigation and Management System actively urging all subsidiaries to carry

out hazard identification rectification and implementation. This effectively prevents and mitigates major safety risks and promptly

eliminates various potential accident hazards. Benxi Sanjiu Occupational Health CR Shunfeng Occupational Health

and Safety Management System and Safety Management System

Certificate Certificate

Diverse communication and training

We emphasize safety production culture development and the competency enhancement of all personnel. We conduct multi-level

regular education and training fostering a strong cultural atmosphere where everyone learns about safety pays attention to safety Metrics and targets

and values safety. This tangibly improves the safety awareness risk identification capabilities and emergency response skills of all

employees building a solid ideological and competency foundation for work safety. Adhering to the core principle of "People-oriented Safety First" and closely following occupational health and safety regulations

and industry management standards CR Sanjiu has established specific metrics and targets for employee safety to ensure the solid

implementation of related strategic plans. We sign EHS responsibility documents with our production subsidiaries set quantitative

occupational health and safety targets and regularly track and assess the completion status.Target Progress

Occupational Health & Safety 19 business units have obtained ISO 45001 certification.

100% declaration of occupational disease hazard items.

Zero new cases of occupational disease.Production Safety 100% coverage of safety education for all employees; 100% certification rate for special

operation posts.Specialized Work Safety Knowledge Training for CR Sanjiu Guanlan Base Holds a "I Report Hazards for Safety" Initiative Zero general or above-level accidents causing casualties.Laboratory Personnel Launch and Training Meeting

84 85Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Supporting employee development Talent inventory and demand forecasting

In 2025 the Company conducted a talent review for mid-level managerial staff comprehensively assessing the talent pool to provide strong

We uphold a talent philosophy of "Strengthening the Enterprise with Talent Achieving Mutual Development through Growth." We are support for talent reserves and corporate development strategy. Concurrently focusing on strategic directions such as smart manufacturing

committed to building unobstructed career development paths and a comprehensive skill enhancement system supporting employees upgrades and the silver health industry the Company utilized digital tools for systematic predictive analysis of campus recruitment needs.in improving their professional skills and overall competencies. We also guide employees in their personal career planning further Through industry-education integration and joint training programs we strengthened cooperation with key universities to pre-identify

unleashing their potential invigorating the organization and fostering a win-win situation for both employee career growth and the outstanding graduates in critical fields dynamically optimized recruitment strategies and provided forward-looking talent supply for the

company's operational development. Company's strategic transformation.Governance Talent pool development

The Company has established a categorized talent pool system for areas such as R&D technical skills major supervision finance and

The Human Resources Center is fully responsible for promoting and implementing talent cultivation and development. We have intelligent digitalization with a dynamic update mechanism. We focuse on strategically key talents including core R&D personnel skilled

established and enforce regulatory documents such as the CR Sanjiu Training and Development Management Regulations the CR technical experts digital backbone talent and young reserve cadres implementing differentiated development paths to provide a solid

Sanjiu Employee Promotion Management Measures for Headquarters and Guanlan Base and the CR Sanjiu Measures for Promoting the talent pipeline for executing corporate strategy.Flexibility of Cadre Appointments and Removals providing solid institutional safeguards for employees' career development.Clear promotion pathways

Strategy

Employees are provided with a dual-path promotion mechanism encompassing management tracks and professional/technical tracks.We continuously improve and optimize the system supporting innovative business strengthen the acquisition assessment and When management positions become vacant internal recruitment is prioritized to select and promote suitable candidates. Simultaneously

incentivization of core talent enhance the capabilities of the workforce and stimulate employee potential and value thereby providing the Company conducts unified assessments based on employees' competencies and performance facilitating promotions for outstanding

strong support for the company's high-quality development. individuals thereby offering clear growth paths for employees with different career aspirations.Employee safety-related risks opportunities and potential impacts Performance evaluation improvement

Risk types and Opportunity types and In 2025 CR Sanjiu optimized and revised the CR Sanjiu Employee Performance Management Regulations and established a closed-loop

descriptions Potential financial impact descriptions Potential financial impact "Evaluation-Feedback-Improvement" performance management mechanism covering 100% of employees. This provides guidance and

support for enhancing employees' professional competencies and career development.Reputational Opportunity

Operational Risk Well-defined career development

Insufficient career channels foster a positive corporate Improved operational Performance evaluation Performance feedback Performance improvement

development channels Increased recruitment costs. culture attracting more outstanding efficiency and profit

leading to attrition of talent to join proactively and margins.talent in key positions. enhancing the company's talent Differentiated management Direct supervisors provide Based on the evaluation results

competitiveness. is implemented according performance results to employees managers develop targeted

to the nature of positions through face-to-face or performance improvement

employingvarious performance onlinecommunication. The company plansfor employees setting clear

assessment methods such as has also established an employee improvement goals. They provide

objective-oriented Management performance appealmechanism. specific coaching and supportthrough

byObjectives (MBO) and 360-degree Employees who have concerns regular meetings or ad-hoc

evaluations to motivate employees regarding the assessment process or communication and monitor the

in achieving bothindividual and results mayfile an appeal to relevant achievement of thesegoals during the

team goals. departments such as their immediate improvement cycle.supervisor or the HumanResources

Impact risk and opportunity management department. Designated personnel

are responsible for reviewing

We continuously refine the talent recruitment and cultivation systems striving to build a high-quality workforce with a rational structure investigatinghandling and providing

excellent capabilities and vitality. This injects a continuous stream of talent impetus into the Company's sustainable development. feedback on the appeal.Performance Closed-Loop Management Mechanism

86 87Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Talent development system Continuously building the management talent pipeline

Fully leveraging its unique advantages in the pharmaceutical industry the Company has thoroughly executed the "Green Lotus Plan" Targeted at all employees including senior middle and frontline leaders (covering full-time part-time and contract staff) the company

under the "three types" of talents development plan providing targeted empowerment for core talent. Labor skills competitions are has conducted and completed various leadership training programs: the Flagship Program (for General Managers) the Advanced

continuously organized and cross-functional technical exchange platforms are established to promote learning and practice through Industrial Chain Talent Development Program (Phase III) (for Directors and Assistant General Managers) the Lighthouse Program (for

competition comprehensively enhancing employees' technical proficiency and innovative problem-solving capabilities. middle and senior managers) and the Forge Program (Phase IV) (for frontline production system managers) accelerating the selection

and development of outstanding young reserve leaders.CR Xuechuang: Deputy Class of Directly Managed Cadres of CR Group Continuously promoting the science and technology talent pipeline

C R Xuechuang: The Way of CR Manager Training Excellent Young Cadre Class CR Sanjiu Primarily targeting high-tech innovation talents in R&D and smart manufacturing the Company has launched initiatives like the R&D

Lighthouse Innovation Project Manager Transformation Camp and the Smart Manufacturing Talent Development D-Plan providing more learning

CR Sanjiu: Leader Program (general manager class) Program and development opportunities for our scientific and technical personnel.CR Sanjiu: Industrial Chain Senior Talent Development Class

Management Continuously strengthening professional skills talent development CHC Business Group Elite Talent Development Program

and operation The Company is committed to cultivating dedicated professionals with excellent skills innovative mindsets and a pursuit of excellence.talent Production System Elite Talent Development Program To achieve this it has implemented talent projects such as the Mangrove Plan (at CR Benxi Sanjiu CR Sanjiu (Huangshi) and Guanlan

development

programs H eadquarters Function Elite Talent Development Program

Base) and the Master Craftsman Program. We actively organize activities including but not limited to the CR Sanjiu Skills Cup Quality

Promotion Month and Focus Topic workshops.Various Business Division Elite Talent Development Programs

Various Business Division/Business Unit Pipeline Talent Development Programs

F rontline Manager Bootcamp / Sword Sharpening Program (Production System)

New Manager Bootcamp

Intelligent Manufacturing Plan D

Science and

technology

talent Metamorphosis Camp for R&D Innovation Project Managers

development CR Sanjiu Flagship Program Fifth Intensive Training and CR Sanjiu Advanced Industrial Chain Talent Graduation Ceremony Development Program Phase III

Digital Talent Development

R&D Professional Training

Functional Professional Training

Professional Production Professional Training

skills talent

development Marketing Professional Training

Grassroots Employee Job Training

Grassroots Employee Skill Competition

CR Sanjiu "Three Types" of Talents Development Plan CR Sanjiu Intelligent Manufacturing Plan D 14th Five-Year Summary Meeting

88 89Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

New employee development

CR Sanjiu hosted the CR Group "Future Star" Training Camp (Pharmaceutical Track) adopting a mentorship model. The program accelerates

new employees' integration into the CR culture through workplace fundamentals training including courses on Party education corporate Case:CR sanjiu conducts the forge program (phase iv) at guanlan base

culture business operations and workplace communication. On-the-job practical training is implemented to enhance their role-specific

competencies.From March to June 2025 the CR Sanjiu Human Resources Center conducted the Forge Program (Phase IV) training

project at the Headquarters. The program focused on enhancing the capabilities of frontline managers in the production

system delivering a series of empowerment trainings centered on three core themes: "Qualities of an Effective Manager"

"Operational Excellence Systems" and "Innovation Design and Smart Manufacturing." Thirty-seven frontline managers from

the production systems of 24 business units participated in and successfully completed the training. The program deeply

implemented a tripartite talent development model involving "trainees mentors and professional coaches". We also

organized benchmarking enterprise exchange activities allowing participants to gain immersive learning in the practical

applications of smart manufacturing. Through this multi-dimensional systematic empowerment the program enhanced

the comprehensive management acumen and professional competencies of CR Sanjiu's frontline production managers

helping the company build a frontline management team capable of keenly discerning trends making efficient and

scientific decisions and exercising excellent leadership in a complex future development environment.CR Group 2025 "Future Star" New Employee Training Camp

The deepening university-enterprise collaboration

The Company values lifelong learning for all employees (including full-time part-time and contractors) providing support for both degree

and non-degree educational development (professional degree programs and certifications). We actively create opportunities for advanced

academic studies. Focusing on the "recruitment" and "cultivation" of scientific and technological talent we have established collaborations

with universities like Fudan University and Northwest A&F University in fields such as biomedicine and are engaged in collaborative training

programs for master's and doctoral engineering students. This further deepens the co-cultivation of talent aiming to develop high-caliber

professionals with both solid theoretical foundations and rich practical experience.Case:CR sanjiu fosters fertile ground for growth empowering employee advancement

CR Sanjiu deeply cultivates the employee development dimension of its

ESG practices. Upholding a "people-oriented talent-driven enterprise" 2025 CR Sanjiu Forge Program Phase IV

philosophy it closely links employee growth with the company's high-quality

development. The company has established an integrated talent cultivation

system encompassing mentorship ("passing on helping guiding") dual-

path career progression R&D resource support and systematic capability

training earnestly fulfilling its responsibility for employee development. Metrics and targets

The growth journey of Zhang Yanbin a National Model Worker and Chief

Engineer of the R&D Center serves as a vivid testament to the system's CR Sanjiu closely aligns with the requirements of its high-quality development strategy and talent development plan. To ensure the Zhang Yanbin during an R&D experiment

effectiveness. Since joining the Company as a campus recruit supported solid implementation of all employee development initiatives we have established specific metrics and targets regularly tracking and

by this comprehensive talent cultivation system he has progressed from a novice in TCM R&D to a versatile core technical assessing their completion.expert. He has led the development and launch of several key products guided his team in overcoming technical challenges

for a novel COVID-19 rehabilitation treatment drug—filling a domestic industry gap—and actively taken on the role of

mentoring newcomers contributing to talent pipeline development. Target Progress

CR Sanjiu achieves a two-way empowerment: enhancing employees' personal value while strengthening the company's R&D

innovation capabilities. This not only cultivates a high-caliber professional workforce but also solidifies the talent foundation Employee Training & In 2025 the company continued to conduct diverse training programs. The total annual

for the enterprise's sustainable development. Development investment in various employee trainings reached RMB 21.9488 million.

90 91Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Caring for employees Building harmonious communities

We adhere to the corporate spirit of "Care Responsibility Excellence" continuously organizing and implementing various initiatives

under the employee care program fostering a "Happy Work Healthy Life" environment to strengthen employee cohesion and sense of

belonging. CR Sanjiu actively engages in social welfare initiatives responding to national strategies with concrete actions and contributing to rural

revitalization. Leveraging our strengths in the pharmaceutical and healthcare sector the Company proactively participates in social services

empowers community development and promotes local economic growth and social progress.Enriching employee life Supporting employees in need

We organize diverse activities in five categories: holiday care The trade union leads in establishing special files for employees

family care youth networking physical & mental wellness and facing difficulties strictly adhering to the principles of one file Fostering warm and caring communities

sports competitions. Employees are encouraged to participate per person and dynamic management. Through a closed-loop

based on their interests. These activities not only enrich mechanism involving regular visits by frontline supervisors and The Company places high importance on communication and interaction with neighboring communities focusing on establishing and

employees' personal lives but also promote communication verification by grassroots union groups the actual situations maintaining smooth communication channels. Utilizing platforms such as the Longhua District Guanhu Sub-district People's Congress we

mutual understanding and team cohesion. and support needs of these employees' families are accurately have carried out over 90 responsibility activities helping to resolve local traffic issues effectively reducing employee commute times and

identified. In 2025 the CR Sanjiu trade union visited offered facilitating travel for community residents.condolences and provided assistance to 316 employees in need

disbursing consolation funds totaling RMB 870200. Focusing on key areas like transportation optimization around the industrial park improvement of commercial amenities enhancement of

living and working environments industrial support R&D innovation and smart manufacturing the Company actively provides suggestions

and tracks the implementation progress of each proposal. By contributing to the improvement of the regional road network easing traffic

Caring for female employees Focusing on mental health circulation and enhancing community living and working conditions we empower high-quality regional economic development. These

efforts tangibly increase the sense of gain happiness and security among community residents fulfilling the Company's community

We thoughtfully care for female employees on maternity leave. We innovatively launched a "Theme Month" service model offering responsibility through practical action.Subsidies provided by the government to alleviate employers' dedicated consultation sessions monthly on topics frequently

financial pressure during maternity leave are fully disbursed to raised by employees. A sleep lecture was organized for all staff to

the employees themselves. In 2025 the Company supported alleviate workplace stress. A special event at CR Sanjiu (Zaozhuang)

85 employees in claiming maternity allowances totaling RMB was held to help frontline employees address psychological

3.11 million. The Company actively implements the parental concerns. A team of "CR Sanjiu Heartcare Ambassadors" was

leave policy granting 10 days of parental leave annually until the formed and systematically trained and the CR Sanjiu (Chenzhou)

child reaches three years of age. Additionally nursing rooms are Employee Care Service Station was established strengthening

provided offering a warm and private space for working mothers. grassroots mental health support capabilities. In 2025 12 one-on-

one on-site psychological counseling sessions were conducted

serving 72 employees comprehensively safeguarding their mental

well-being.Chairman of Longhua District CPPCC Conducts Research Inspection of Traffic at Guanlan High-Tech Park

CR Sanjiu Dragon Boat Festival Activity CR Sanjiu Family Open Day CR Sanjiu Youth Networking Activity

Practicing philanthropy and public welfare

Guided by our mission of " caring for public health and creating a better life together" CR Sanjiu consistently upholds and practices the

spirit of giving back to society. Since 2008 the Company has built the "999 Caring Angels" responsibility brand. For seventeen years we have

remained true to our philanthropic original aspiration spreading care and have become a pioneer in philanthropy within the pharmaceutical

industry. By connecting "corporate resources + external organizations + employee participation" we systematically implement a five-pronged

support model covering educational assistance industrial support and CR Hope Village projects. This integrates social responsibility deeply

with corporate development creating tangible public welfare practices with professionalism and warmth and solidifying our responsibility

brand. In 2025 the Company's charitable donation expenditure was approximately RMB 4.7044 million. Volunteer activities involved 239

CR Sanjiu Annual Health Check-up CR Sanjiu Badminton Competition CR Sanjiu Football Match participants contributing a total of 821 volunteer service hours.

92 93Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Co-creating prosperous and beautiful villages

Case:fulfilling responsibility with love spreading warmth with knowledge

CR Sanjiu actively responds to national strategic deployments unwaveringly implementing rural revitalization policies. The Company focuses

on the comprehensive development of local industries talent culture and ecology with industrial support and educational support projects

as key investment areas. We aim to achieve comprehensive rural revitalization through precise measures. We actively establish resource-

sharing platforms with various stakeholders fully integrating advantageous resources from all parties to contribute to industrial upgrading To practice ESG social responsibility and support rural education CR Sanjiu organized the "Pass on Love Pass on

talent cultivation cultural preservation and ecological protection in rural areas. Knowledge" used book donation drive around the 30th World Book Day. The activity collected over 3600 quality books of various genres. After sorting and packing the books were sent to the Jinzhai CR Hope Primary School and the Tonghua CR

Hope Village helping rural children broaden their horizons and ignite their dreams. This initiative aligns with CR Sanjiu's

corporate culture achieving the reuse of employees' idle book resources in a light-handed manner. It demonstrates the

Company's humanistic care and sense of responsibility serving as a vivid example of its deep commitment to ESG practices

Education revitalization and spreading social warmth.Education is a vital cornerstone for national rejuvenation and social progress a moral and political project benefiting both present and

future generations. For many years CR Sanjiu upholding a strong sense of social responsibility has actively engaged in rural education

helping to revitalize local education and talent through practical actions.Case:"unceasing steps love fills mountains and rivers" student aid activity

On October 27 2025 the "Unceasing Steps Love Fills Mountains and Rivers - 999 Healthy China Warm Action" student aid

activity organized by the OTC Business Unit of CR Sanjiu was successfully held in Alxa Inner Mongolia. Organized by CR

Case:CR sanjiu (ya'an) continuously carries out student aid activities Sanjiu co-organized by the Medical League and hosted by the Alxa League Education and Sports Bureau the program had

previously provided support to 6 schools in Gansu and this time extended benefits to 4 schools in Alxa Left Banner. During

the event CR Sanjiu and the Medical League presented donated supplies like stationery and teaching aids to the recipient

To support rural education CR Sanjiu (Ya'an) continuously conducts student aid activities. We have completed cultural schools. Attending leaders delivered speeches emphasizing the activity's significance in providing both material support

co-building projects for 8 Sanjiu Schools covering over 4000 teachers and students promoting CR culture in schools and and spiritual guidance for rural education. Through multidimensional public welfare actions including educational aid and

passing on the "red gene". In 2025 with the strong support of various teams the "999 Aonuo Hope Project Science and health care the company earnestly practices our corporate responsibility assisting the improvement of rural education and

Technology Innovation Laboratory" was established at the Sanjiu School in Yanchang Town Ya'an. This philanthropic the development of a Healthy China.donation practices the strategies of "Rejuvenating the Country through Science and Education" and "Healthy China"

helping to enhance the scientific literacy of youth and demonstrating corporate responsibility. It is a vivid example of the

Company's deep commitment to ESG practices and empowering rural education.Industrial revitalization

Based on our full industrial chain development strategy CR Sanjiu deeply integrates the development of the Chinese herbal medicine

industry with the rural revitalization strategy. Covering the entire chain from seed selection and breeding standardized cultivation to

fresh processing at the origin the company vigorously develops standardized cultivation through models like "contract farming" and

"company + cooperative + farmer" using a "demonstration base + radiating base" approach. This helps resolve rural employment

improves agricultural industry structure and aids rural revitalization.In 2025 CR Sanjiu established Chinese herbal medicine cultivation bases for 51 varieties across nearly 140 counties in 22 provinces

encompassing over 900 villages. The promoted cultivation area exceeded 447000 mu. CR Sanjiu built or co-built 20 origin processing

bases processing nearly 10000 tons of herbs. The initiatives involved over 50 local cooperatives and village collective companies

engaging thousands of farming households.Inauguration Ceremony of the 999 Aonuo Hope Project CR Sanjiu (Ya'an) Student Aid Activity

Science and Technology Innovation Laboratory Key performance

In 2025 CR Sanjiu promoted the establishment of 444700 mu of herbal medicine

planting bases constructed 20 self-built or jointly-built primary processing bases

Drove the development of over 50 local cooperatives and villagecommittee companies

94 95Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Case:revitalizing agriculture with artemisia industry linking farmers to prosperity Case: bringing warmhearted free clinics to islands collaborating for revitalization

The production base of CR Sanjiu Youyang Company under Kunming Pharmaceutical Group focuses on building the In August 2025 the "Island Health Walking Together" free clinic initiative organized by the OTC Business Unit of CR Sanjiu

Youyang artemisia brand. It co-established a high-quality seed breeding center with universities and research institutions brought together multiple parties to provide services such as health checks and medication education to over 150 residents

formed an industrial consortium and implemented the "company + cooperative + farmer" contract farming model. The in Yuhuan's Haishan Township and visited 5 elderly individuals living alone. Addressing the inconvenience of purchasing

stable annual cultivation area is approximately 20000 mu involving nearly 2000 farming households across 13 townships medicine CR Sanjiu pledged to donate automated medicine dispensers. By linking government and enterprise efforts we

providing employment for 190 people. This helps increase villagers' income and promotes local economic development help fill the shortcomings in rural health services and aids rural revitalization.demonstrating the leading role of the enterprise and achieving a win-win in both economic and social benefits.Case:revitalizing agriculture with artemisia industry linking farmers to prosperity

CR Sanjiu's Professional Brand Division joined hands

with the Bethune Foundation visited the revolutionary

old district in Tonghua. We invited 5 senior experts from

Beijing and Shanghai in fields like cardiovascular and

rheumatology-orthopedics to conduct multidisciplinary

free clinics and health education for patients benefiting

over 300 local villagers. The division also donated home

medicine kits precisely addressing the daily medication

needs of grassroots populations. This brings high-quality

medical resources to the rural frontline delivering

professional medical care to villagers.CR Sanjiu Youyang Company High-Quality Seed Breeding Center Senior Experts Providing On-site Health Consultations for

Residents at the CR Hope Town in Tonghua

Health support Consumption support

CR Sanjiu actively engages in rural health assistance continuously gathering resources from various sectors and building broad Conducting consumption support is a major decision and deployment by the CPC Central Committee and the State Council. It is an

consensus. By promoting the downward flow of high-quality medical resources it continuously improves the fairness and accessibility important measure for coordinating regular assistance and continuously consolidating and expanding the achievements in poverty

of health services enhances the level of primary healthcare services and solidifies the health foundation for rural revitalization. Since alleviation. In 2025 SASAC actively encouraged central enterprises to carry out consumption support initiatives like the "Gathering

2020 CR Sanjiu has continuously participated in the "China Resources Healthy Villages" public welfare project donating RMB 1.5 Strength Action" "Prosperous Agriculture Week" and "Spring Welcoming Action". Through methods like procurement assistance

million in cash and goods worth approximately RMB 800000 annually through the China Women's Development Foundation. As of strengthening foundations and empowerment and exchanges we supported the assisted counties. During the campaign period we

2025 it has cumulatively donated RMB 9 million in cash and goods worth RMB 4 million totaling RMB 13 million. organized the procurement of agricultural products over RMB 1.54 million. Throughout the year the total procurement of Chinese herbal

medicine agricultural products reached RMB 330 million.CR Sanjiu actively conducts rural health support initiatives continuously gathering strength from multiple parties and building broad

consensus. By promoting the high-quality medical resources we continuously improve the equity and accessibility of health services

enhances grassroots medical service capabilities and solidifies the health foundation for rural revitalization. Since 2020 CR Sanjiu has

continuously participated in the "CR Healthy Village" public welfare project. Annually we donate RMB 1.5 million in cash and materials

worth approximately RMB 800000 through the China Women's Development Foundation. By 2025 the cumulative donation reached

RMB 9 million in cash and RMB 4 million in materials totaling RMB 13 million.

96 97Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

G

Adhering to integrity and clear regulations

and laying a solid

foundation for sound operation

National requirements

During the 15th Five-Year Plan period enterprises should continuously

improve their corporate governance systems deeply understand the

fundamental role of corporate governance in ESG and strengthen

ESG risk and opportunity management. They should promote the

establishment and improvement of corporate governance mechanisms

that are legally defined transparent coordinated and effectively

balanced thereby improving corporate governance structures

enhancing disclosure quality and strengthening regulatory oversight.—National "15th Five-Year Plan" Recommendations

Our responses

CR Sanjiu continuously improves its corporate governance

structure establishing a sound modern corporate governance

mechanism with clearly defined responsibilities coordinated

operation and effective checks and balances. The Company Contribution to the united nations sustainable development goals

strictly adheres to laws regulations and market supervision

requirements strengthens comprehensive risk management and

internal control systems promotes ethical conduct and integrity

in business operations continuously improves the quality and

transparency of information disclosure and actively safeguards the

rights and interests of shareholders employees customers and

other stakeholders thereby driving the Company's high-quality and

sustainable development through high-level governance.

98 99Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Innovate investor relations communication to build long-term relationships based on two-way interaction and shared values

We have established a diversified collaborative and efficient two-way communication mechanism with investors. The 2024 Annual

Performance Briefing innovatively introduced a digital human avatar for the first time attracting over 130000 viewers. This initiative

Responsibility case has earned us the China Listed Companies Association's 'Best Practices in Annual Report Briefings' award for four consecutive years. In 2025 we co-hosted the Half-Year Results Briefing with our subsidiary companies Kunming Pharmaceutical Group and Tasly

Pharmaceutical Group. Through diverse formats—including earnings briefings conference calls online/offline research sessions

roadshows and reverse roadshows—we continuously expand communication channels and build a multifaceted investor engagement

platform. Our efforts have been recognized with multiple capital market accolades including the 'Best Practices in Investor Relations

Management' award and the 'Tianma Award for Investor Relations Excellence'.Future outlook

Through systematic practices we promote the deep integration of corporate governance and business development building a

"transparent stable and responsible" corporate image for the Company serving as a link between the Company and the capital

market and helping the Company achieve high-quality stable and sustainable development.Strengthen the foundation of governance and build an efficient operating mechanism of

the board of directors

CR Sanjiu dynamically tracks changes in the Company Law of the People's Republic of China

and regulatory policies advancing the systematic revision and formulation of the Company's

articles of association and related systems. It continuously strengthens the institutional

foundation of corporate governance. The Company consistently enhances the construction of

the Board of Directors by optimizing its composition and promoting the inclusion of employee

representatives. The Company emphasizes standardized management of Board meetings

refines the resolution follow-up mechanism and improves the reporting system for authorized

matters. Furthermore it strengthens communication with directors through multiple channels

fully supporting them in fulfilling their duties..Strictly adhere to the lifeline of information

disclosure and accurately convey corporate value.Strictly adhere to the lifeline of information disclosure and accurately convey corporate

value

We have established and improved rigorous information disclosure processes. Building upon

the lawful and compliant fulfillment of statutory disclosure obligations we actively advance

higher-quality and more comprehensive voluntary information disclosure enhancing the depth

and breadth of transparency. Thanks to its solid information disclosure work the Company

has received the highest rating of A (Excellent) in the Shenzhen Stock Exchange's information

disclosure assessment for 11 consecutive years.Promoting ESG management and enhancing sustainable development capabilities

we assist in building a top-down clearly defined sustainability ESG governance framework of

the Board of Directors the management and the working group introduce external professional

institutions to enhance the team's professional capabilities; and we continuously optimize the

quality of ESG information disclosure. In 2025 the Company's MSCI ESG rating jumped from

BB to A and the Wind ESG rating was upgraded to AA for the first time and it has won several

honors including the "Top 50 Central SOEs in the ESG Golden Bull Award" consolidating its

responsible image in the capital market.

100 101Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Strengthening the cornerstone of corporate

governance Shareholders and shareholders' meetings Directors and the board of directors

The convening and holding procedures of all previous The election and replacement of directors are carried

shareholders' meetings the qualifications of attendees out in strict accordance with the legal and the Articles of

CR Sanjiu strictly abides by the requirements of laws and regulations continuously strengthens its corporate governance mechanism and the voting procedures at shareholders' meetings have Association-stipulated procedures for director selection.improves its internal control system and compliance operation management system ensures the steady development and value creation complied with the provisions of the Company Law of the The Company's directors attend Board and shareholders'

of its business promotes the construction of a modern enterprise system with Chinese characteristics and Sanjiu characteristics adheres People's Republic of China the Rules for Shareholders' meetings with a diligent and responsible attitude and

to integrity in enterprise management coordinated operation and transparent management and helps the Company achieve high- Meetings of Listed Companies the Articles of Association correctly perform their duties in line with the provisions

quality development. and other relevant laws and regulations. The Company of the Articles of Association . The Company gives full

has provided online voting for the matters deliberated at play to the roles of the Board's specialized committees

shareholders' meetings to facilitate shareholders' exercise and independent directors ensuring the objectivity of

Continuously strengthen corporate governance of their rights. independent directors.We comply with relevant national laws and regulations continuously strengthen the corporate governance institutional framework and

enhance the level of scientific decision-making; we assist the Board of Directors in continuously optimizing its operational mechanisms and

improving operational efficiency; we effectively safeguard the legitimate rights and interests of all stakeholders foster a positive corporate

image and underpin the Company's steady and long-term development. The Board of Directors fully performs its role of "set strategy make decisions and prevent risks" and has established the Audit Committee

the Remuneration and Appraisal Committee the Strategic Investment Committee the Nomination Committee and the Independent

Directors' Special Meeting continuously enhancing governance effectiveness.Optimizing the governance structure The Company continues to optimize the structure of the Board. The Board members feature a balanced age distribution and diverse

We strictly adhere to the Company Law of the People's Republic of China the Securities Law of the People's Republic of China the Code professional backgrounds integrating multi-dimensional expertise in finance strategic planning human resource management and more.of Corporate Governance for Listed Companies and the Listing Rules among other relevant laws and regulations. We have revised the Focusing on the development of specialized committees the Company strictly standardizes the deliberation of proposals. The specialized

Articles of Association continuously optimized the corporate governance structure and steadily improved governance standards to drive committees provide professional advice for the Board's decision-making while the Board conducts scientific and rigorous analysis combined

higher quality and efficiency in the Company's operations. We strengthen the decision-making system refine authorization management with such advice before making decisions ensuring both the scientific nature and efficiency of its decisions.and establish a governance structure with clearly defined rights and responsibilities thereby comprehensively enhancing the Company's

operational efficiency.General Board Adhere to the principle of "optimized allocation + diversity" emphasizing professional alignment

Meeting diversity with the Company's development strategy and selecting directors comprehensively from perspectives such as gender age group and professional background.Party Committee Board of Directors Establish the Independent Directors' Special Meeting revise the Working System for Independent

Directors and the rules of procedure for specialized committees.Steer the direction Set strategy make Board

oversee the overall decisions and independence Regularly disclose the performance of independent directors through the Annual Report on

situation and ensure prevent risks

implementation Independent Directors' Performance.Board members possess relevant industry experience and professional knowledge balancing

Management Team professional leadership innovation drive and risk control capability to enhance the scientific rigor

Board and effectiveness of corporate governance.Plan operation ensure professionalism

implementation O rganize directors and senior management to actively participate in professional training

and strengthen

management promoting continuous improvement in theoretical knowledge and performance of duties.

102103

Specialized Meeting of

Independent Directors

Nomination Committee

Strategic Investment

Committee

Audit Committee

Remuneration and

Evaluation CommitteeAdhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Optimizing the equity structure

Key performance In accordance with the requirements of the Company Law of the People's Republic of China the Securities Law of the People's Republic of

China and other relevant laws regulations and normative documents we have established a clear balanced and rational equity structure.The Company has a total of There are The Company operates with independent business operations and autonomous management capabilities maintaining independence from

4 2 the actual controller and its related parties in terms of business assets finance personnel and organizational structure. Major decisions of independent directors female directors the Company are made by the shareholders' meeting in accordance with the law and the controlling shareholder exercises its shareholder

rights in a proper manner with no actions that harm the interests of the Company or its shareholders.accounting for representing

36.36% of the Board 18.18% of the Board Information disclosure and investor relations

We strictly comply with the Measures for the Administration of Information Disclosure by Listed Companies the Guidelines for Investor

In 2025 a total of Relations Management of Listed Companies and other relevant regulations. In 2025 we revised the Investor Relations Management

8 15 System the Information Disclosure Management System and the Insider Information and Insider Management System establishing a rigorous and well-defined information disclosure process and accountability framework to ensure the truthfulness accuracy and

shareholders' meetings Board meetings were held completeness of disclosed information while continuously strengthening insider information management and confidentiality. In

2025 the Company did not incur any penalties for violations of information disclosure regulations.

Among these On the basis of continuous lawful and compliant fulfillment of statutory information disclosure obligations we continuously explore

and develop voluntary information disclosure that is oriented toward investor needs and supports investors in making value judgments

6 8 and investment decisions increasing the depth and breadth of our disclosures. Regarding ESG issues of growing concern to investors we respond to the attention and expectations of various stakeholders through regular report releases "one-picture summaries" and

meetings of the Audit Committee meetings of the Remuneration and Evaluation Committee similar formats.We have developed a multi-tiered investor relations management system. We innovatively hold high-quality performance briefings

4 3 where the Chairman of the Board and the management team interact with investors industry analysts and media representatives

engaging in thorough communication on topics of concern such as the Company's operating results business development high-

meetings of the Strategic Investment Committee meetings of the Nomination Committee were convened quality and sustainable development and future growth plans. Adopting a multi-channel multi-angle and multi-level communication

strategy we use diverse methods and platforms—including performance conference calls brokerage strategy meetings investor

hotlines and the Shenzhen Stock Exchange's Interactive Easy platform—to build an efficient communication bridge with investors and

actively convey the Company's value.Honors and awards

Company official website and official WeChat

account Shareholders' meetings

2025 Best Practice Case for Listed 2025 Best Practice Case for Listed

Company Boards Company Board Offices

Periodic reports Performance briefings

by the China Association for Public Companies

Investor conference calls Roadshows and reverse roadshows

Diverse investor Platforms such as the Shenzhen Stock

Dedicated investor inquiry hotline

Further reading communication

Exchange's Interactive Easy

channels

Investor visit/research reception Financial media communications

For more information on the responsibilities of the Board and shareholders' meetings member details and specific remuneration

payments to directors and senior management please refer to the CR Sanjiu 2025 Annual Report.Online collective reception day for investors of

Domestic and foreign brokerage strategy meetings listed companies in the Shenzhen jurisdiction

104 105Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Key performance Honest and compliant business operations

In 2025 the Company released 2 periodic reports and 92 Attended multiple brokerage strategy meetings involving

interim announcements. hundreds of investors. CR Sanjiu strictly adheres to legal and regulatory requirements continuously strengthens its corporate governance mechanisms and improves its internal control systems and compliance operation management systems to ensure steady business development and

H eld 4 batches of performance conference calls for Participated in the collective reception day for listed sustained value creation. The Company is dedicated to building and refining a modern corporate system that reflects both Chinese

periodic and quarterly reports. companies in the Shenzhen jurisdiction once. characteristics and Sanjiu's unique attributes. Upholding integrity in corporate governance ensuring coordinated operations and

P articipated in over 90 online and offline research R esponded to more than 230 inquiries on Interactive Easy maintaining transparent management CR Sanjiu is committed to driving high-quality corporate development.visits and roadshow/reverse roadshow events. platform.Governance

CR Sanjiu has established a clearly defined and hierarchical internal control and risk governance structure. The Board of Directors as the highest

Honors and awards decision-making body is responsible for promoting the construction and implementation of the internal control and risk management system;

its Legal Construction and Risk Control Compliance Committee chaired by the Chairman coordinates internal control supervision and system

improvement. The Company has constructed a "three-line defense" risk management mechanism: business departments serve as the first

line of defense undertaking basic risk management responsibilities; the Legal and Compliance Department as the second line of defense led

Received the highest rating of "A" in the Shenzhen Won the China Association for Public Companies' by the Chief Compliance Officer is responsible for system coordination compliance review and risk response; and the Audit Department as

Stock Exchange's information disclosure "Best Practice for Annual Report Performance the third line of defense independently conducts internal control audits and supervisory evaluations. Furthermore the Legal and Compliance

assessment for eleven consecutive years Briefings" for four consecutive years Department has a complaint management function and promotes the extension of compliance management organizations to the grassroots

level establishing compliance ambassadors in each business unit and operational unit to ensure that risk control and compliance requirements

Awarded the China Association for Public CR Sanjiu was rated "Five-Star" social are implemented at the front line of business.Companies' "Best Practice for Investor responsibility report by the Chinese Academy

Relations Management of Listed Companies of Social Sciences for three consecutive years

2024" and received the "Five-Star Plus" rating for two consecutive years Board members Drives and guides the establishment improvement and effective

implementation of the risk control system.The Board

Case:innovatively hosting high-quality performance briefings The Legal Construction Promotes the development and supervision of the internal control

The management and Risk Control system of CR Sanjiu and drives the improvement of its internal control

level Compliance

Committee policies and systems.In March 2025 the Company held its 2024 annual performance During this briefing the scenario short film Friends produced

briefing themed "Starting with the End in Mind Forging by the Company embodied the corporate mission of "caring

Ahead with Determination. "The Chairman of the Board and for public health and creating a better life" delivering Relevant The Legal & Compliance Department is responsible for coordinating

the management team engaged in thorough exchanges with heartwarming stories to investors and the general public and The executive level departments organizing and facilitating the implementation of all specific tasks. The Audit

investors industry analysts and media representatives on enhancing the investor experience. Department is responsible for conducting internal audits and supervisory

the Company's operating results business development evaluations of the risk control systems of all subordinate units.and future plans. To facilitate participation by more retail

investors the Company has adopted a hybrid format CR Sanjiu Risk Control System

combining on-site communication with live streaming for

its annual performance briefings for four consecutive years

since 2021. Strategy

CR Sanjiu Earnings Presentation CR Sanjiu adheres to its mission of "Caring for Public Health and Creating a Better Life" and its vision of "Becoming a Leader in the Public

Pharmaceutical and Healthcare Industry." Guided by the principles of law-based governance and compliant operation the Company

continuously improves its internal control and compliance management system. The Company systematically promotes system construction

Steadiness creates value and process optimization formulating and implementing core systems such as the Compliance Management System and the Anti-Monopoly

Compliance Management Measures building an integrated management mechanism covering law compliance internal control and risk.In 2025 the Company continued to deepen its "Four Restructurings" consolidating its foundation and optimizing its business strengthening Through annual internal control self-assessments supervisory evaluations and special inspections the Company achieves full coverage of

R&D and innovation promoting mergers and acquisitions steadily advancing integration building a competitive advantage across the entire business processes and solidifies processes and improves management efficiency through its internal control and compliance platform (ICCP

industry chain achieving both quantitative and qualitative growth and steadily improving performance and capabilities thus completing system). Regarding risk management the Company has established a normalized risk assessment mechanism identifying a list of major risks

the "14th Five-Year Plan" targets ahead of schedule. In 2025 the Company achieved operating revenue of 31.603 billion yuan a year-on-year and developing response plans annually strengthening risk review in key areas such as procurement and marketing. Simultaneously through

increase of 14.43%. The Company achieved net cash flow from operating activities of 5.513 billion yuan a year-on-year increase of 25.23%. Net compliance training awareness month activities and the signing of business conduct codes the Company cultivates a compliance culture

profit attributable to shareholders of the listed company was 3.421 billion yuan a year-on-year increase of 1.58%. Net profit attributable to among all employees promoting the transformation of compliance management from control to empowerment supporting the Company's

shareholders of the listed company after deducting non-recurring gains and losses was 3.134 billion yuan a year-on-year increase of 0.52%. sound operation and sustainable development.

106 107Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Risk information

collection Risk information is collected through questionnaires.Comprehensive risk management system

The Company continuously promotes to deeply integrate risk internal control and legal and compliance measures adhering to a focus

on risk governance and a key emphasis on risk prevention. It has strengthened its institutional foundation in areas such as strategic risk

operational risk market risk financial risk and legal risk and continuously strengthened its risk and compliance management system.The Company regularly conducts major risk assessments and classifies and reports on major operational risks to ensure its sound

operation. In 2025 the Company did not experience any major operational risk issues. Risk identification Organize the collected risk information to form an annual risk list database.Risks and descriptions Potential financial impact Opportunities and descriptions Potential financial impact The top 25 risks assessed in the previous year along with newly added risks this year will form the scope

of this year's assessment. This assessment will be conducted by general managers and above from all

Compliance Risks May result in safety Governance opportunities Reduces violation risks and

Risk assessment headquarters centers and departments as well as general managers and above from business units incidents causing direct avoids potential fines and and operational units. Based on the scoring results the assessment results will be rated to preliminarily

Risks Comp liance Some economic losses including The Company continuously litigation costs. identify the Company's major annual risks. After confirmation with management the company has

enterprises have problems casualty compensation improves its legal affairs framework finalized its annual list of major risks.such as incomplete EHS equipment damage and issuing multiple policies to build a Enhances management

(Environment Health production interruptions. practical compliance management efficiency and reduces

and Safety) organizational system that effectively prevents legal operational disruption losses Based on the risk assessment results relevant departments will formulate risk response plans and

structure weak safety E xposure to regulatory risks. caused by non-compliance.management foundation penalties and increased Risk response

implement corrective measures. For identified major risks the Legal and Compliance Department will

Strengthens investor and follow up on the implementation of the risk response plans quarterly. Simultaneously the Company will and aging equipment and rectification costs.facilities which leads to partner confidence enhancing

conduct internal control checks or special audits on major risks depending on the actual situation.a continuous increase in corporate valuation.safety risks.Safety Risks Frequent incidents leading Brand opportunities E nhances brand premium

to direct economic losses capability and increases Sustainable development risk identification and management measures

Safety Risks There are and compensation. The Company continuously product market share.deficiencies in safety strengthens brand building and

risk identification and Regulatory penalties and intellectual property protection. R educes brand infringement Risk Response measures Results

hazard investigation and losses from production In 2025 the "999" and "Sanjiu" losses and lowers rights

management resulting in a suspension for trademarks were recognized as well- protection costs. Some enterprises have Provide support to enterprises with weak We launched an EHS capability enhancement

failure to effectively control rectification. known trademarks and the "Sanjiu" problems such as incomplete EHS management foundations and develop initiative and a dual prevention mechanism

safety risks. enterprise name received renowned I ncreases brand intangible

asset value and strengthens EHS (Environment Health and specific improvement action plans for key to deepen operation and maintenance designation with core product

investor confidence. Safety) organizational structure weak links. projects identified and categorized weak packaging and decoration protected weak safety management facilities equipment and operations in

by judicial decisions significantly foundation and aging We will continue to carry out basic capacity- factory areas and established a risk database.enhancing brand value and market equipment and facilities which building projects such as the construction of a

competitiveness. leads to a continuous increase dual prevention mechanism the improvement Complete the EHS training material

in safety risks. of emergency response capabilities and the development and application project and

establishment and application of EHS training launch the emergency response capability

Impact risk and opportunity management materials to solidify the foundation of EHS enhancement project.management.Optimize and improve the risk assessment process

Establish and improve a long-term mechanism for the management and control of major risks and efficiently advance the risk There are deficiencies in safety W e will continue to develop a digital platform The fourth phase of the construction of

assessment process. Conduct focused inspections of the sales operations of each business unit paying attention to regulatory hotspots risk identification and hazard for the dual prevention mechanism which the digital platform for the dual prevention

and risks such as employee conflicts of interest and bid-rigging in procurement. Regularly conduct internal control inspections or special investigation and management will enable unified filing of hazardous sources mechanism has been launched and the

audits of major risks and focus on inspecting the management of self-operated business procurement compliance and production resulting in a failure to effectively real-time tracking of hazard investigation seven planned implementation units have

operations of production units to effectively improve risk response capabilities. Conduct risk identification and assessment work annually control safety risks. and real-time feedback on risk control and completed their self-acceptance.to ensure timely detection of potential problems and swift implementation of control measures. management.

108 109Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Internal control management

We strictly adhere to the provisions of the Basic Norms for Enterprise Internal Control and its supporting guidelines updating and Case:conducting constitution publicity week and compliance publicity month

improving our internal control system to form a scientifically designed simple applicable and effectively operating internal control

system. We conduct regular annual internal control assessments and system optimization projects to ensure the effectiveness of the

internal control system's design and implementation achieving improved system completeness standardization process optimization

and full execution. We have established an internal control compliance platform (ICCP system) to gradually solidify internal control December 18th the Company organized activities for the

workflows and tool templates improving the quality and efficiency of internal control evaluation. 2025 Constitution Publicity Week and Compliance Publicity

Month under the theme of " Abiding by Laws and Regulations

Achieving Steady Progress and Long-Term Development."

These activities targeting employees of CR Sanjiu Kunming

Pharmaceutical and Tasly included distributing brochures

and legal booklets holding a quiz with prizes providing

Internal control assessment work legal compliance consultations conducting legal education Legal compliance training

and training and signing and training on the Group's Code

I nternal control self-assessment: In accordance with the relevant requirements of the State-owned Assets Supervision and of Conduct for Business Conduct. These efforts aimed to distributed during the training reached over 800 people

Administration Commission (SASAC a comprehensive internal control self-assessment was conducted achieving 100% coverage of safeguard the healthy development of CR Sanjiu. The brochures and the quiz with prizes saw over 1800 participants.all subsidiaries. The self-assessment scope included 12 key business processes such as procurement R&D investment and sales. In

2025 Kunming Pharmaceutical and its subsidiaries all conducted internal control self-assessments as required. Simultaneously for any

internal control deficiencies identified the responsible departments were actively organized to implement corrective measures.Metrics and targets

Internal control supervision and evaluation: In accordance with the relevant requirements of the State-owned Assets Supervision and

Administration Commission (SASAC) the Legal and Compliance Department carried out internal control supervision and evaluation CR Sanjiu adheres to the bottom line of honest and compliant operation closely follows the requirements of laws and regulations and

of its subsidiaries. The evaluation scope included important business processes such as procurement asset management sales and management requirements around core areas such as intellectual property procurement system investment and M&A compliance

contract management. A total of 38 subsidiaries were evaluated in 2025 and the evaluation scope met the SASAC's requirement of "full management and dispute resolution. We have established a tracking and evaluation mechanism to promote the implementation and

coverage in three years". effectiveness of compliance management with quantitative indicators and consolidate the compliance foundation for the Company's

sound operation.Target Progress

Intellectual property management Assist the investment center and R&D center in carrying out patent support work for specific projects;

Case:holding risk control and compliance training and risk control project kick-off meeting Explore and build a full-process intellectual property management model suitable for CR Sanjiu. Draft a classification method for the Company's invention patents

Procurement system upgrade

From April 24th to 25th 2025 the 2025 Risk Public disclosure rate = 98%; centralized

Control and Compliance Training Conference Strengthen the two-tiered management and execution organization system for procurement rate= 93%; e-procurement rate =

& Risk Control Kick-off Meeting of CR Sanjiu procurement and continuously improve the concentration of procurement. 98%.was held at its Shenzhen headquarters.Themed " Compliance as the Foundation Investment and m&a support Participated in 12 investment and M&A projects providing relevant legal support for these projects.Risk Control as the Shield Steady Progress Enhance professional capabilities to enable legal services to support investment

for the Future" the conference was attended and M&A throughout the entire process. Participate in the post-evaluation of the Company's

by over 110 people. The training covered investment projects in 2025.risk management the China Resources

CRCL system compliance management and Compliance management Exploring the implementation of the CRCL

integrity and compliance. It also analyzed Promote the upgrading and optimization of the Company's compliance system in the field of fair competition compliance

key points and cases related to the internal management system. management.control supervision and evaluation of central

enterprise groups. Through the training Dispute resolution

employees learned advanced risk control and Optimize the case management mechanism of "unified management classified

compliance concepts and case knowledge guidance and hierarchical responsibility"; strengthen the allocation of litigation Case success rate > 90%

further enhancing their practical abilities and resources and enhance risk prevention and control for important and major

laying a solid foundation for optimizing the cases; and carry out case-based management promotion work.Company's risk control work and achieving

higher goals. Intelligent digital applications Complete the construction of the contract

Risk Control and Compliance Training Meeting Objective: Digital and intelligent procurement: Build a unified procurement management system and continuously keep

management system (SRM); upgrade the contract system. upgrading.

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China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

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Party's leadership

Case:using party building to promote post -investment integration at tasly

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era CR Sanjiu closely aligns with the Company's

overall strategic development fully leveraging the core role of Party organizations in "setting the direction managing the overall situation

and ensuring implementation." Emphasis is placed on top-level design and overall planning effectively integrating Party building into Advancing the "Post-Investment Integration" Work at Tasly. Using the "Four Synchronizations and Four Alignments"

all aspects of corporate governance. Through forward-looking planning and systematic implementation the Company has achieved approach we are advancing key tasks of the "100-Day Integration One-Year Integration and Three-Year Integration" of

remarkable results in strengthening ideological and political guidance consolidating the organizational foundation promoting cultural Party building in a way that suits local conditions. On March 27th the handover day the Tasly Pharmaceutical Group Party

integration expanding publicity and uniting the efforts of mass organizations and the united front. This has powerfully promoted the Committee was established improving the Company's governance system incorporating Party building requirements into

deep integration of Party building and business providing a strong political and organizational guarantee for the Company's high-quality the Company's Articles of Association and strengthening the Party's overall leadership during the merger and acquisition

development. integration process; optimizing the Party organization structure reviewing and optimizing the structure of Tasly's 30 Party

organizations and continuously consolidating the foundation of Party building; strengthening the construction of Tasly's

Party and mass work teams and ensuring sufficient and capable Party affairs personnel; and incorporating the Tasly Party

Committee into the CR Sanjiu Party building assessment system to achieve joint assessment of Party building and business

operations focusing on promoting the efficient integration of Tasly's Party building and business. Meanwhile leveraging

the advantages of joint Party building the Party branch of CR Sanjiu Guanlan Base and the Party branch of Tasly Zhijiao

Political guidance Pharmaceutical jointly organized a year-long "joint construction" activity. Through methods such as "jointly learning

theoretical knowledge sharing activity venues sharing technical resources and jointly planning business development"

they continuously promoted "integration and vitality" with "Party building synergy" thus empowering the Company's high-

We earnestly implemented the "First Agenda" system conducting 10 study sessions throughout the year and developing 24 measures quality development.for implementation including in-depth study and dissemination of the spirit of the Fourth Plenary Session of the 20th CPC Central

Committee. We implemented the central group study system organizing 12 centralized study sessions and producing 10 special research

reports; we conducted a "July 1st" themed Party Day activity with the Party Secretary delivering a special Party lecture to unite our efforts.Organizational development

Regular Party building work meetings were held to promote the deep integration of Party building with production and operations.Throughout the year supervision was provided for the re-election and supplementation of 28 directly managed Party organizations and

guidance was given to 7 units to establish Party organizations. The "Strengthening Reform and Aiming for Targets" themed campaign

resulted in 86 measures using Party building to guide the post-investment integration of Tasly promoting the smooth transition of newly

acquired enterprises and steadily integrating them into the overall development of the Company. Party affairs training was conducted at

different levels to fully leverage the exemplary role of Party members.Cultural promotion

Strictly implement the main responsibility for ideology and improve the "three-review and three-proofreading" mechanism. Carry

out positive publicity around the central tasks formulate a cultural enhancement plan for 2025-2027 and promote the integration of

Kunming Pharmaceutical Group and Tasly Group 's culture; create a "1+X" Party building brand system and cultivate the "Three Lives

Nine Loves" Party building brand.The Power of Mass Organizations

We standardized efforts in union work held 103 staff congresses launched the CR Sanjiu "Skills Cup" labor competition implemented

96 "I Do Practical Things for the Masses" initiatives and carried out more than 30 care activities. Two employees were awarded the title of

"National Model Worker." We adhered to the principle of Party building leading Youth League building established 10 youth commando

teams and conducted the "Two Reds and Two Excellents" selection stimulating the vitality of mass organization cadres.Tasly "Party Building and Culture" Integration Work Conference

112 113Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Promoting responsible operation Awards and honors

CR Sanjiu always keeps original aspiration firmly in mind forging ahead with determination. Guided by the mission of "Caring for Public

Health and Creating a Better Life" we strive towards the goal of becoming a "leader in China's public health industry" serving every China Resources Sanjiu was named Became a standing director unit of

member of Chinese families and committed to becoming China's No. 1 pharmaceutical and healthcare brand. The Company continuously one of the "Top 100 Chinese Brands for the China Enterprise Culture Research

enhances employees' pride sense of belonging and cultural identity through diverse cultural activities ensuring that corporate care and Internationalization" Association

personal value resonate in unison. Simultaneously relying on its "1+N" brand strategy it innovatively utilizes AIGC technology to create

communication content to vividly convey the Company's brand philosophy and comprehensively showcase CR Sanjiu's brand image and

responsibility as a leader in the pharmaceutical and healthcare field.Corporate culture building

We continuously strengthen our corporate culture based on our cultural philosophy system. Our corporate culture development is guided by

the principles of "Care Responsibility and Excellence" deeply integrating cultural soft power into our corporate development strategy and Case:cultural resonance and the warmth of home: seamless integration of "small family" and

daily operations. The Company not only builds internal consensus through a clear mission vision and value system but also promotes the "large family"

implementation of our culture through an organizational atmosphere of "Sincerity Unity Openness and Progress." In practice the Company

emphasizes the transmission and resonance of our culture with stakeholders continuously carrying out impactful cultural projects.From July 31st to August 1st 2025 CR Sanjiu held an open day for employees and their families at its Guanlan base

2025 is the year for concluding the Company's 14th Five-Year Plan and planning the 15th Five-Year Plan. At this important juncture the in Shenzhen themed " Ao Nuo Together Protecting the Future of Bone Health." The event jointly organized by the

Company launched a three-year "Cultural Enhancement Campaign" to actively promote the upgrading and expansion of its corporate Company's labor union youth league and other departments attracted over 60 employee families from the Shenzhen

culture concepts. Simultaneously it actively promoted the integration of Kunming Pharmaceutical and Tasly's cultures achieving consistent headquarters. During the event family members gained a direct understanding of China Resources' spirit its revolutionary

implementation of China Resources culture and accelerating collaborative development. It continued to promote the special project of heritage development history the construction of its traditional Chinese medicine industry chain its long-term plans and

inheriting the red gene improved the management system and mechanism for corporate culture construction and strengthened the its mission and vision through vivid graphic displays. In front of the innovation laboratory and intelligent production line

dissemination of the group and company's corporate culture through new employee training specialized training and corporate culture family members experienced firsthand the Company's technological strength and innovative culture.self-inspection and rectification promoting consistent implementation. The Company organized a quiz activity commemorating the 80th

anniversary of the victory of the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War with 3164 The event featured family photo shoots and a fun-filled carnival along with interactive games such as "Medicine Weighing

employees participating. The average score ranked 9th and 10 employees ranked among the top 500 individually. Expert" and "Parent-Child Craft Workshop" integrating corporate elements into family fun and conveying health concepts

through games. This not only allowed family members to gain a deeper understanding of the Company's culture and

business but also strengthened employees' sense of belonging and pride in the Company demonstrating CR Sanjiu's

Corporate culture systematic investment in corporate culture and humanistic care in promoting its vision of "becoming a leader in the mass pharmaceutical and health industry. "

DNA Mission

MISSION

Persist in realizing the great rejuvenation of the Chinese nation Care for public health

Pursue creation of a happy life for the people Create a better life together

Strive for the economic prosperity for the country

Vision Value

VISION VALUE

Become a leader in the public Integrity Performance-Oriented

healthcare industry DNA People-Oriented Win-Win Collaboration

Atmosplere Spirit

Sincerity Solidarity Dedicate oneself of the cause of the country

Open-mindedness Proactivity ATMOSPLERE SPIRIT Be the pioneer in innovations

Forge ahead with perseverance

Fight for the better

CR Sanjiu 2025 Employee Family Open Day

Cultural Slogan

The Cultural Philosophy System of CR Sanjiu Care Responsibility E xcellence

114 115Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Building a responsible brand

We consistently place brand building at the core of our corporate strategy adhering to a consumer health-oriented approach and Case:dual venue collaboration revitalizes brand health market conveys warmth during the

systematically constructing and continuously implemeting our "1+N" brand strategy. This strategy centers on the well-known "999" coldest period of winter

brand extending to cover health needs across the entire life cycle including colds gastrointestinal issues dermatology orthopedics

pediatrics chronic diseases and traditional Chinese medicine wellness forming a clearly defined and synergistic brand matrix. Under

the guidance of the brand strategy the Company is not only committed to consolidating its leading position in the CHC (Consumer From December 17th to 18th 2025 during the China Sanjiu's innovative approach of conveying health concepts

Health) field with "999 Cold & Flu Spirit Cold" maintaining its leading position in the cold medicine category and "Piyanping" in the Resources Group Brand Day CR Sanjiu innovatively and practicing brand warmth through a market format.dermatology market but also deeply integrating brand building with social responsibility actively fulfilling our corporate mission of adopted a "dual-venue linkage" style focusing on The event not only comprehensively showcased the

"Caring for Public Health and Creating a Better Life." core brand values and simultaneously holding brand Company's brand connotation of "caring for public health"

day market activities at the group's main market and and its innovative vitality but also strengthened the

With "warmth and care" as our emotional core we closely link product services brand communication and social value creation its Shenzhen headquarters. At the China Resources emotional connection with consumers and stakeholders

through innovative responsible brand communication and robust public opinion management. This systematically enhances our Group Brand Day market the focus was on core brand through diverse communication methods. It successfully

brand influence competitiveness and credibility steadily moving towards our vision of "becoming a leader in the mass healthcare values showcasing the core product matrix of the three transformed brand culture into a tangible and interactive

industry." Through systematic brand building and responsible practices CR Sanjiu has not only improved its brand influence and major brands: 999 Tasly and Kunming Pharmaceutical warm experience achieving a dual enhancement of brand

market competitiveness but has also gradually constructed a responsible brand ecosystem based on "Care Responsibility and Group. On-site activities such as an intestinal maze value and public recognition.Excellence" and grounded in consumer trust. and interactive "Third Uncle" IP activities attracted

widespread participation effectively enhancing brand

affinity and memorability. Simultaneously the CR Sanjiu

headquarters brand market opened featuring " six

Deep integration of content Leveraging cutting-edge technologies distinctive stalls + immersive experiences" as its core

marketing and popular culture to lead communication trends highlights. It cleverly integrated cultural experiences such

as intangible cultural heritage lacquer fans rubbings

and DIY sachets deeply linking health knowledge

Innovative product placement in top-tier dramas such as Extensive use of AIGC technology to create advertising popularization with the brand's emotional message of "

"Folding Back" and variety shows such as "Infinite Beyond content enhancing creative efficiency and format warmth and care."

Class" has generated numerous trending topics on innovation; conducting content marketing on platforms

Weibo accumulating hundreds of millions of exposures such as Douyin with related videos for Cold & Flu Spirit At the event professional staff provided participants

and successfully inspiring user co-creation and emotional accumulating over 5 billion views effectively solidifying a with product knowledge explanations and hands-on

resonance. youthful and fashionable brand image. workshops. Leaders guests and media reporters visited

various booths to experience and interact with the

products gaining a detailed understanding of the brand CR Sanjiu's "Dual Venue Linkage" - Participating in the Group's

culture and product advantages. They highly praised CR Brand Day Market Event

Creating immersive offline Infusing public welfare attributes

experiences and fulfilling social responsibility

Key performance

Successfully held events such as the CR Sanjiu Brand Day Continuously carrying out public welfare activities such

dual-venue market allowing consumers to perceive the as "999 Health Day" to inject warm social value into the

brand's warmth and health philosophy through interactive brand and realize the unity of commercial brand and In 2025 the Company's overall public opinion situation was healthy and controllable with information primarily consisting of

activities such as intangible cultural heritage handicrafts and social responsibility brand. objective and neutral data accounting for approximately 99.16%.health games.Innovative and Responsible Brand Communication Awards and honors

"999" received a special course recording from the State-owned

We continuously build our public opinion management handle various risks in complex public opinion environments Assets Supervision and Administration Commission.system focusing on capacity building to create a favorable s a feg u a rd i n g t h e C o m pa n y ' s l o n g -te r m re p u tat i o n .public opinion environment for business development. We Simultaneously while continuously strengthening the Listed among the "2025 Asia's 500 Most Influential Brands"

actively improve our public opinion management mechanisms management of public opinion platforms we organize relevant

and organizational structure constructing a closed-loop training and simulation exercises to continuously improve all "Top 100 Chinese Brands for Internationalization"

management system covering the entire process from routine employees' awareness of public opinion risks and emergency

monitoring to crisis response. We strengthen our daily response capabilities fostering a culture of "reputation Ranked 29th in the "Ipsos 2025 China Brand Influence Index"

monitoring and early warning response capabilities to ensure management for all."

the Company can effectively prevent steadily respond to and

116 117Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Adhering to to business ethics

Governance Impact risk and opportunity management

C R S a n j i u d e e p l y i m p l e m e n t s t h e r e q u i r e m e n t s o f Law of the People's Republic of China among other applicable

comprehensively and strictly governing the Party and deeply laws and regulations. We adhere to the CR Sanjiu Code of Strengthen the institutional foundation

integrates business ethics governance into the Company's Business Conduct and consistently uphold the CR Sanjiu Clean

strategy and daily operations. The Audit Committee regularly Employment Regulations and the CR Sanjiu Five Commandments

reviews and supervises matters related to business ethics and for Compliance . Meanwhile we continuously refine the CR

reports to the Board of Directors. We have established the Sanjiu Provisional Measures for the Management of Conflicts of The Company has formulated and strictly We build a comprehensive supervision

CR Sanjiu Legal Construction and Risk Control Compliance Interestand the CR Sanjiu Measures for the Management of Anti- implemented core systems such as the CR system with intra-party supervision as the

Committee to implement the China Resources Group Code of Money Laundering effectively preventing any form of corruption Sanjiu Integrity Provisions and the CR Sanjiu mainstay and integrate the oversight forces of

Business Conduct regulating the recommended and prohibited embezzlement bribery fraud money laundering extortion Five Commandments for Compliance clearly discipline inspection inspection and auditing

behaviors in key management areas such as anti-monopoly anti- and unfair competition. We require suppliers to comply with the defining bribery and corruption as inviolable through mechanisms such as joint meetings

commercial bribery overseas compliance and business partners CR Sanjiu Supplier Code of Conduct commit to clean business red lines. information sharing and the transfer of clues.for all employees. We strictly comply with the Anti-Monopoly Law practices and undergo regular assessments of their business

of the People's Republic of China and the Anti-Money Laundering ethics performance.T he Company issued regulations such as the We have formulated and implemented

Strategy Working Methods of the "Comprehensive the CR Sanjiu Procurement Management

Supervision" System of CR Sanjiu and System requiring suppliers to sign a Letter

CR Sanjiu strictly adheres to its internal management systems. holding warning education conferences innovatively carrying the Management Rules for Party Conduct of Commitment to Integrity and Compliance

By streamlining the four-pronged reporting channel (letters out the "Everyone Speaks on Integrity" activity and improving and Integrity Supervisors of CR Sanjiu during the procurement process and

visits online and telephone) and rigorously investigating the regular and long-term integrity education mechanism we clarifying responsibilities procedures publishing the supplier blacklist rules

and punishing violations we strengthen the deterrent effect continuously strengthen the ideological bulwark of employees' and requirements and providing a solid through the Integrity Platform.of "not daring to be corrupt." We have carried out the "4+2" "not wanting to be corrupt" embedding integrity requirements institutional and organizational guarantee

reform of its disciplinary inspection institutions optimizing into the entire business process. for business ethics management.the supervisory structure; and issued 28 targeted disciplinary

inspection recommendations to address shortcomings improve CR Sanjiu focuses on key areas key tasks and key groups

systems and tighten the "cage against corruption". Through optimizes the "comprehensive supervision" mechanism and

continuously fosters a clean and honest corporate atmosphere.Business ethics-related risks opportunities and potential impacts:

Reputation Opportunities

Maintaining high standards of business ethics helps attract the trust of potential investors

win the trust of customers and enhance the Company's reputation.Reputational risks

Serious violations of business ethics may lead to legal problems reputational damage Opportunities and Policy Oppotunity

Risks and descriptions and loss of customers and investors. description Anti-bribery and anti-corruption efforts help companies establish sound internal Risks and Descriptions management systems and processes optimize internal management and improve

management efficiency and transparency.B rand value and market confidence damaged

Potential financial Failure to promptly detect and stop violations resulted in direct economic losses and

Brand value and market confidence growth

impact compliance fines.Potential financial Improve company operational efficiency and achieve significant cost savings through

impact process optimization while mitigating potential governance losses.

118 119Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Strengthen moral supervision Cultivating a culture of integrity

We will focus on key areas and key positions to implement precise supervision strengthen daily supervision of leading cadres and key In 2025 we organized multiple training and awareness campaigns on business ethics and anti-corruption for all company employees

personnel and move the supervision checkpoint forward through integrity talks and personal matters reporting (covering business (including interns part-time employees and contractors). These campaigns were conducted through various means including a

activities related transactions etc.). Compliance Awareness Month event promotional publications WeChat official account updates and offline specialized drills. Create

a clean and upright green business environment.I n 2025 CR Sanjiu routinely conduct business ethics and anti-corruption audits across all of the Company's subsidiaries to assess compliance with

the Code of Business Conduct and anti-corruption policies. Based on the audit findings we recommend corrective actions to address any identified By innovating methods we promoted integrity education to the core of people's minds and hearts and created the "Clean999" online

issues ensuring the effective implementation of business ethics principles including anti-corruption and anti-bribery measures. publicity platform publishing 71 articles on integrity news and knowledge throughout the year.Specialized supervision was strengthened in areas with high risks of corruption. In 2025 special inspections were organized on issues We innovatively launched the "Everyone Speaks on Integrity" series of activities adopting a "learning speaking and competition

such as violations of the spirit of the Eight-Point Regulation of the Central Committee and infrastructure projects and 18 clues to integrated" model to encourage employees to shift from "passively listening" to "actively speaking." In 2025 we collected 76 entries.problems were discovered.We standardized efforts in union work held 103 staff congresses launched the CR Sanjiu "Skills Cup" labor competition implemented

We will promote the extension of supervision to the grassroots level strengthen the grassroots team of Party conduct and integrity supervisors and 96 "I Do Practical Things for the Masses" initiatives and carried out more than 30 care activities. Two employees were awarded the

enhance front-line supervision capabilities by arranging for them to participate in special training and supervision inspections. title of "National Model Worker." We adhered to the principle of Party building leading Youth League building established 10 youth

commando teams and conducted the "Two Reds and Two Excellents" selection stimulating the vitality of mass organization cadres.Preventing unfair competition

The formulation of specific operational guidelines such as the Anti-Monopoly Compliance Management Measures the Anti-Monopoly

Compliance Guidelines and the Guidelines for Compliance of Concentration of Undertakings Declarations provides a complete

institutional basis and code of conduct for anti-monopoly compliance.The Anti-Monopoly Compliance Management System Organizational Structure establishes a clear "three-line defense" responsibility

and coordination mechanism from the Company headquarters to the business units clarifies the control boundaries between

the compliance management department and various business departments and ensures that management responsibilities are

implemented at each level and that horizontal coordination is effective."Compliance Ambassador" has been set up in each business unit and marketing business line. They are responsible for the promotion

review consultation and inspection feedback of anti-monopoly compliance in front-line business so as to ensure that compliance

requirements penetrate to the front end of the business and realize the implementation of risk prevention and control.Standardize the reporting procedure

Warning Education Conference Party Conduct and Integrity Building Work Conference

Establish and publicize diversified reporting S trictly implement the Detailed Rules for Handling

channels including dedicated telephone Reports and Accusations by the Discipline

numbers email addresses mailing addresses Inspection and Supervision Institutions of China

and an online "one-click reporting" platform to Resources inform you of the acceptance status Metrics and Targets

accept both real-name and anonymous reports. of real-name reports within 15 working days and

advocate giving priority to real-name reports. CR Sanjiu adheres to the business principles of upholding business ethics and promoting integrity. Focusing on core tasks such as

anti-corruption review and supervision and the cultivation of a culture of integrity it has scientifically formulated relevant indicators

and targets and established a dynamic tracking and effectiveness evaluation mechanism to guide the implementation of various

tasks related to business ethics construction with clear indicators.We strictly adhere to confidentiality regulations The Company's reporting email address CR999- Target Progress

protect whistleblower information establish and SJB-TS@999.com.cn and the Discipline Inspection

improve whistleblower protection systems ensure Commission's reporting email address cr999- Continuously enhance 2 corruption and bribery cases have been concluded.smooth channels for reporting and complaints jcb-ts@999.com.cn are publicly available. The the intensity of anti-

effectively safeguard the rights and interests of reporting platform "99 'Rules' 1" and the "Clean corruption review and 1 lawsuit concerning embezzlement commercial bribery etc.whistleblowers and conduct investigations in 999" WeChat official account and "Runwork supervision The incidence of corruption incidents was 0.006%.accordance with regulations such as the Rules for Runyue" account stipulate anonymous reporting

Supervision and Discipline Enforcement by the methods and strictly enforce the discipline of Throughout the year 883 anti-corruption education and awareness activities were held reaching 72803

Discipline Inspection Organs of the Communist handling letters and visits reports. Continuously person-times.Party of China to ensure the effectiveness and strengthen the

cultivation of a culture The total training time for anti-corruption among employees is 145606 hours.credibility of the reporting mechanism.of integrity The "Everyone Speaks on Integrity" event was held collecting 76 works and 71 articles were published

through the "Integrity 999" online platform.

120 121Adhering to the principles of green Upholding integrity and driving Adhering to integrity and clear

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT development and jointly painting an innovation to jointly safeguard a regulations and laying a solid

ecological home harmonious society foundation for sound operation

Outlook for 2026

2026 marks the start of the "15th Five-Year Plan" and is also a crucial year for thoroughly studying and implementing the spirit of the Improve our governance system and solidify the foundation of ESG values. We will set Party building as our guideline to upgrade ESG

Fourth Plenary Session of the 20th CPC Central Committee. CR Sanjiu standing at a new starting point for high-quality development in the governance optimize cross-departmental collaboration mechanisms refine the construction of ESG indicator control and information

pharmaceutical and healthcare industry will continue to implement ESG principles in operations fulfill our mission of serving the nation 's disclosure systems. We will continuously build a regular communication platform for stakeholders and promote the deep integration of ESG

major needs shoulder the responsibility of innovative development in the traditional Chinese medicine industry and further promote the concepts into the entire process of corporate operations and decision-making thereby consolidating the governance foundation for the

implementation of the " Health-first Development Strategy" continuously striving forward on the path of revitalizing traditional Chinese sustainable development of the Company.medicine and safeguarding people's well-being.The tide of the times surges forward and the blueprint for development inspires us to forge ahead. Standing at the new starting point of the

Focus on full-chain collaboration and activate the innovative momentum of traditional Chinese medicine. We will continue to "15th Five-Year Plan" we will be driven by the modernization and innovative research and development of traditional Chinese medicine

deepen the dual-engine approach of "innovation + brand" refine our product R&D and innovation capabilities and strictly adhere to the focusing on our core pharmaceutical and healthcare business. We will adhere to the "One body two wings" strategy to create a new

bottom line of drug quality and safety. We will proactively embrace the wave of digitalization accelerate the empowerment and upgrade of chapter fully integrate into the "Healthy China" strategy continuously promote the "AI+" intelligent and digital transformation strengthen

AI technology in all aspects of R&D and production and safeguard public health with high-quality traditional Chinese medicine products and supply chain collaboration and green operation and focus on optimizing organizational efficiency and upgrading the governance system.services thus building a solid line of defense for people's health. Upholding our original aspiration in pharmaceutical manufacturing and fulfilling our social responsibilities we will work hand in hand with

all sectors to build a healthy ecosystem safeguarding public health with compassionate and responsible practices and writing a higher-

Dedicate ourselves to low-carbon transformation and build an ecological pharmaceutical system. We will resolutely implement the quality development chapter in serving the national economy and people's livelihood.national "dual-carbon" strategy take green production as our guideline optimize the ecological planting model of medicinal herbs deepen

the construction of near-zero carbon emission parks reduce the carbon footprint of production through technological innovation and clean

energy and improve the mechanism for the resource utilization of waste so as to achieve a win-win situation for industrial development and

ecological protection.Focusing on improving people's livelihoods and deepening our social responsibility practices we will leverage the advantages of

the traditional Chinese medicine industry chain to support rural revitalization conduct training in medicinal herb cultivation techniques

expand sales channels for agricultural products and promote industrial efficiency and increased farmer income. We will also dedicate

ourselves to public health initiatives organizing expert teams to conduct science popularization and free clinics in communities donating

commonly used medicines and medical supplies and safeguarding people's well-being through diverse public welfare actions. This will

deepen collaboration between enterprises and communities and jointly build a healthy future.

122 123China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT Key performance table

Key performance table Indicators Unit 2025 2024 2023

—By age

29 years and under Person 6433 4684 5004

Economic performance

30-50 years old Person 21711 13735 13679

Indicators Unit 2025 2024 2023 51 years and older Person 2160 1612 1635

Total revenue RMB 10000 3160257.76 2761661.18 2473896.33 —By educational background

Total assets RMB 10000 5880467.87 4008197.23 4014845.59 Graduate and above Person 2128 1289 1048

Total profit RMB 10000 486407.92 459361.07 375445.32 Undergraduate Person 12450 8054 7404

Net profit attributable to shareholders of Junior college Person 9806 5641 6067

listed companies RMB 10000 342100.12 336788.90 285293.17 High school and below Person 5920 5047 5799

Total taxes RMB 10000 392000.00 289861.48 292896.93 Comprehensive employee turnover rate % 10.54 10.54 13.5

Total investment in R&D RMB 10000 173350.71 95297.63 88895.12 Number of ethnic minorities Person 2588 1846 810

Percentage of female managers % 44 36.7 35

Market performance Number of employees with disabilities Person 163 121 5

Employee satisfaction % 82.2 84.2 98.04

Indicators Unit 2025 2024 2023

Total annual training attendance Person-time 786835 308 876 306922

Pass rate of drug sampling tests % 100 100 100

Number of complaints received about Employee training coverage % 100 98.68 95.77

products and services Piece 151 117 198 Annual per capita training hours Hour 35.14 30.32 14.11

Complaint handling rate % 100 100 100 Annual investment in employee training RMB 10000 2194.88 1043.2 776

Product and service satisfaction % 99.8 100 100

Health checkup rate of all employees % 100 100 100

Responsible purchasing ratio % 100 100 100

Rate of suppliers passing quality environment Occupational health examination rate % 100 100 100

and occupational health and safety system % 100 100 100 Number of work-related deaths Person 0 0 0

certification

Number of deaths due to occupational diseases Person 0 0 0

Investment in helping employees in difficulty RMB 10000 87.02 78.915 21.12

Social performance Investment in production safety RMB 10000 6425.197 5831 4947

Number of full-time safety management personnel Person 216 229 339

Indicators Unit 2025 2024 2023 Employee safety training hours Class hours 355434 650100 566273

Labor contract signing rate % 100 100 100 Safety training hours of relevant parties Class hours 27647 34711 15819

Social insurance coverage rate % 100 100 100 EHS emergency drill attendance Person-time 18403 16687 16720

Number of paid vacation days per capita per year Day 7.2 8 7.9 Number of EHS emergency drills Person-time 696 617 465

Number of new employees Person 2801 2322 2286 Extraordinarily major accidents Item 0 0 0

Total number of employees Person 30304 20031 20318 Major accident Item 0 0 0

—By gender Serious accidents Item 0 0 0

Male employees Person 15535 10733 10894 General accidents Item 1 2 0

Female employees Person 14769 9298 9424 Number of fatal accidents Time 0 0 0

—By employment type Number of fatalities in safety accidents Person 0 0 0

Full-time employees Person 30304 20031 20318 Lost time rate of employees in million man-hours

Person/

million hours 0.29 0.52 0.12

Part-time employees Person 0 0 0 Lost workdays due to work-related injuries Day 642 187 168

124 125China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT Key performance table

Environmental performance Indicators Unit 2025 2024 2023

Total comprehensive energy consumption 10000 Tons of standard coal 13.19 8.0838 9.4754Indicators Unit 2025 2024 2023

Total Investment in Environmental Protection RMB 10000 6657.18 4234 4368 Comprehensive energy consumption per RMB 10000 of added Ton of standard value (comparable price) coal/RMB 10000 0.1019 0.0981 0.1100

Investment in Energy Saving RMB 10000 1254.35 663 562 Comprehensive energy consumption per RMB 10000 of Ton of standard

Number of people trained in environmental protection Person-time 20283 17380 14006 production value (comparable price) coal/RMB 10000

0.05540.04560.0497

Number of people covered by environmental protection training Person 12071 10942 8567 Comprehensive energy consumption per RMB 10000 of total Ton of standard

revenues coal/RMB 10000 0.0417 0.0293 0.0383

Environmental protection training hours Class hours 287018 273214 111723

Consumption of toxic and hazardous materials Ton 1181.199 1412.90 5421.11

Number of participations in environmental public welfare

activities Time 108 96 98 Consumption intensity of toxic and harmful materials Ton/RMB 10000 0.0004 0.0008 0.0028

Total wastewater emission 10000 tons 482.84 268.02 299.86 Total GHG emissions Ton of CO2 e 284864.38 222120.65 276450.88

Total emission of waste gas 10000 cubic meters 1082414.56 863248.98 765540.25 Scope 1 - direct GHG emissions Ton of CO2 e 61349.81 55312.19 58235.73

Total COD emission Ton 117.48 60.02 67.14 Scope 2 - Indirect Greenhouse Gas emissions Ton of CO2 223514.57 166808.46 218215.15

COD emission intensity Ton/RMB 10000 0.00004359 0.000034 0.000035 GHG emission per RMB 10000 of production value (comparable Ton of CO2 e/RMB

price) 10000 0.1398 0.1254 0.1450

Total ammonia nitrogen emissions Ton 5.00 2.01 2.39

Ammonia nitrogen emission intensity Ton/RMB 10000 0.000002 0.000001 0.000001 GHG emission per RMB 10000 of total revenues

Ton of CO2 e/RMB

100000.09010.08040.1117

Total NOX emission Ton 50.23 47.87 66.34 Total industrial water usage Ton 27436200.00 29929123.40 29444432.50

NOx emission intensity Ton/RMB 10000 0.000019 0.000027 0.000035 Industrial water intensity Ton/RMB 10000 10.1808 16.9010 15.4461

Total SO2 emission Ton 2.12 3.47 4.70 Freshwater usage in industry Ton 5543537 4224132 4971951

SO2 emission intensity Ton/RMB 10000 0.000001 0.000002 0.000002 Freshwater usage per RMB 10000 of industrial output value (at

comparable prices) Ton/RMB 10000 2.0570 2.3854 2.6082

Total emissions of particulate matter (PM) Ton 7.10 8.19 10.00

Industrial circulating water consumption Ton 21892708 25704991 24472481.50

Emission intensity of particulate matter (PM) Ton/RMB 10000 0.000003 0.000005 0.000005

Industrial water reuse rate % 79.79 85.89 83.11

Total emissions of volatile organic compounds (VOCs) Ton 15.13 5.87 8.87

Total industrial water savings Ton 21892708 25704991 24472481.50

Emission Intensity of Volatile Organic Compounds (VOCs) Ton/RMB 10000 0.000006 0.000003 0.000005

Office and domestic electricity consumption kWh 40751177.59 23125158.11 20791860.35

Total amount of medical waste (HW02) generated Ton 346.01 125.75 128.27

Office and domestic water consumption Ton 417975.07 372936.57 2629996.67

Total amount of waste pharmaceuticals (HW03) generated Ton 254.48 201.69 340.86

Office and domestic wastewater generation Ton 376177.56 326540.57 2488536.13

Total amount of other hazardous wastes generated Ton 2578.40 675.31 783.22

Office paper usage Piece 25974914 19882033.93 29917207

Total hazardous waste generation Ton 3178.89 1002.75 1252.35

Office waste disposal volume Ton 2984.19 2034.52 621.81

Intensity of hazardous waste generation Ton/RMB 10000 0.001180 0.000566 0.000657

Total packaging material usage by weight Ton 246775.77 71123 98047

Amount of hazardous waste disposal Ton 3199 1116.85 1171.47

Total amount of general industrial solid waste generated Ton 205317.80 144261.22 134557.22

General industrial solid waste generation intensity Ton/RMB 10000 0.0762 0.0815 0.0706 Governance performance

Comprehensive utilization of general industrial solid waste Ton 203213.30 139452.47 133831.03

Recycling rate of general industrial solid waste % 98.96 96.65 99.44 Indicators Unit 2025 2024 2023

Total industrial solid waste generation Ton 208496.69 145263.97 135809.57 Percentage of female directors on the Board of Directors % 18.18 18.18 18.18

Gasoline consumption Ton 80.12 50.08 59.61 Number of shareholders' meetings held Time 8 7 6

Diesel consumption Ton 154.14 167.40 171.72 Number of board of meetings held Time 15 24 13

Purchased electricity consumption 10000 kWh 34875 21660.55 23331.43 Issuance of regular reports Item 2 2 2

Purchased steam consumption Million kilojoules 1029434.60 536173.38 791759.19 Issuance of temporary announcements Item 92 131 67

Natural gas consumption 10000 standard m3 4063.99 2525.49 2647.83 Coverage of anti-corruption training % 100 100 100

Thermal energy consumption Million kilojoules 1029434.6 536173.38 791759.19 Hours of employee anti-corruption training Hour 145606 160500 53435

Ton of standard Convening of company warning and education conference Time 6 2 3Clean energy consumption coal 10796.25 5136.68 5788.57 Percentage of employees receiving ethics training % 100 100 100

126 127China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT Index of indicators

Index of indicators

Corresponding Indicators Reference Indicator System for ESG Special Corresponding Indicators

Reference Indicator

Report Catalog of China Corporate Social of China Corporate Social

System for ESG Special

Responsibility Reporting Reporting of Listed Report Catalog Responsibility Reporting Reporting of Listed

Guidelines (CASS-ESG 6.0) Companies Controlled by Guidelines (CASS-ESG 6.0) Companies Controlled by Central Enterprises Central Enterprises

ESG Assurance Statement A4 G4.2 Improve Corporate Governance G1.3.1-G1.3.2 G3.1-G3.3

Message from the Executive P2.1 Honest and Compliant Business S3.2.1-S3.2.2 G2.1-G2.2 G4.1-G4.2 Adhere to Integrity and Operations G5.1-G5.2

Feature: synergistic development of the whole industry chain Clear Regulations and

to create new quality productive forces in the traditional S2.1.15 Lay a Solid Foundation Adhere to the Party's Leadership -

chinese medicine industry for Sound Operation.Promote Responsible Operation G2.1.1-G2.1.8 G2.2.1-G2.2.3 S4.1

Company Profile P3.1

Adhere to Business Ethics G2.1.8-G2.2.3

About Us Brands and Products P3.3 G1.2

Outlook for 2026 A1

Organizational Structure P3.4

E1.1.1E1.1.2E1.2.2E1.3E1

Focus on 2025 A2 E1.1.7-E1.1.8 E2.1.2. .4.1E2.1.3E2.1.5E2.2.1E2.E2.2.1-E2.2.4 E2.2.8-E2.2.9 2.2E2.3E3.1.3E3 .1.4E3.1.Sustainability and ESG Concepts G1.1.7 G1.1 G1.3 Key Performance Table E3.1.1 E3.2.1-E3.2.2 S4.1.3-S4.1.7 6S1.1.2S1.2.2S1.2.4S1.3.S4.3.3-S4.3.6 G2.1.5-G2.1.7 3S1.3.4S1.5.3S1.5.1S2.1.Sustainability and ESG Work

Sustainability Implementation G1.1.1-G1.1.8 G1.1.10-G1.1.12

2S3.1.1 S4.1G3.2.1

Management Index of Indicators A3

Stakeholder Communication G1.3.1-G1.3.2 G3.1 G3.2 G3.3

Feedback A6

Materiality Issues Management G1.1.9

About this Report P1.1-1.2

Strengthening Climate Governance E1.1.1-E1.1.6 E1.1.11-E1.1.16 E1.1.19 E3.1-E3.4 E5.1

Protect the green

and strive for a better Improve Environmental E2.1.1-E2.1.9 E2.2.1 E2.2.3

future jointly create Management E2.2.5-E2.2.7 E2.4.1-2.4.4 E5.1-E5.6

an ecological home. E3.1.2-E3.1.5 E3.2.3-E3.2.4

Environmentally Friendly Operation E2.3.1-E2.3.5 E3.3.1-3.3.7 E1.1-E1.4 E2.1-E2.3 E4.1 E5.2 E5.3

Focus on Innovative Development S2.1.1-S2.1.13 S2.1.15 S2.3

Deepen Digital Transformation S2.2.1-S2.2.7 S4.4.1

Optimizing Services Protecting S1.2.7 S2.1.14 S3.3.15-S3.3.17

Upholding integrity Health S3.4.1-S3.4.4

S2.1-S2.2

and pursuing

innovation jointly Industry Cooperation and Win-Win S2.1.3 S2.3.3

safeguarding a

harmonious society. Practicing Transparent Procurement S3.1.1-S3.1.4

Creating a Harmonious Workplace S4.1.1-S4.1.12 S4.2.1-S4.2.6 S4.3.1-S4.3.6 S1.1-S1.3 S3.1-S3.2

Harmony and Beauty in the

Community S1.2.1-S1.2.7 S1.1.1-S1.1.5 S4.2-S4.4

128 129China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. 2025 SUSTAINABILITY AND ESG REPORT About this report

Feedback About this report

Dear reader

This report is the 17th annual sustainability and ESG report published by China Resources Sanjiu Medical & Pharmaceutical Co. Ltd.Thank you very much for taking the time to read this report. In order to gain a deeper understanding of your expectations and needs since 2009. The report themed "Striving Forward Now Healthy Future" reflects the Company's efforts and achievements in economic

regarding the sustainable development and ESG efforts of CR Sanjiu and to continuously improve the quality of our work we are conducting social environmental and governance aspects in 2025 responding to the expectations and concerns of stakeholders.this survey. We sincerely invite you to participate. Your opinions and insights are vital to us. We deeply appreciate your valuable feedback and

suggestions!

Time period Reference standards

1. Your identity in relation to CR Sanjiu:

This report covers the period from January 1 2025 to December This report was prepared with reference to the Guidelines for

□ Employee□ Consumer/Patient□ Partner□ Investor□ Regulator 31 2025 consistent with the annual report. Some content has Social Responsibility of Central Enterprises issued by the State-

been extended for better comparability and forward-looking owned Assets Supervision and Administration Commission

□ Other Government Department □ Media□ Other insights. (SASAC) the Shenzhen Stock Exchange Self-Regulatory Guidelines

2. Are you satisfied with the overall content of this year's report No. 3 – Preparation of Sustainable Development Reports for Listed Companies Shenzhen Stock Exchange Self-Regulatory Guidelines

□ Yes□ No□ Average Scope of the report No. 17 – Sustainable Development Reports for Listed Companies

(Trial Implementation) and with reference to the Global Reporting

3. Has the information you are concerned with been covered in this year's report This report covers China Resources Sanjiu Medical & Pharmaceutical Initiative (GRI) Standards and the CASS-ESG 6.0 Pharmaceutical

Co. Ltd. and its subsidiaries and affiliates. The subject disclosed in Manufacturing Guidelines by the Chinese Academy of Social

□ Yes□ No□ Average this report is consistent with the annual report. Sciences. It also references the ESG Reporting Indicator System for

Central State-Owned Enterprises' Listed Companies by SASAC.

4. W hat are your expectations or suggestions for next year's sustainable development report

□ Innovative report themes □ Innovative structure and approach Terminology

Preparation process

□ Broader application of sustainability standards□ Other (Please specify) For ease of expression and readability "China Resources Sanjiu

Medical & Pharmaceutical Co. Ltd." is referred to as "CR Sanjiu" "the

5. Do you have any suggestions or expectations for our sustainable development work The preparation process for this report follows the requirements of Company" or "we" in this report. the above standards including industry benchmarking surveys

□ Develop a long-term sustainability plan□ Strengthen the management of sustainability initiatives information collection review report writing management review

report rating and report assurance to ensure completeness

□ Broaden external communication efforts□ Plan new impactful public welfare projects Data explanation materiality authenticity and balance.□ Include sustainability-related performance in management assessments□ Other (Please specify) All data in this report comes from internal documents and

information systems of China Resources Sanjiu Pharmaceutical Co. How to access

Ltd.This report is available in both electronic and paper formats. You

can download and view it from the Social Responsibility section of

Report commitment the CR Sanjiu web operational site at https://www.999.com.cn.CR Sanjiu guarantees that the contents of this report are free from

You can communicate your feedback through the following channels. any false records misleading statements or material omissions

and takes full responsibility for the authenticity accuracy and

completeness of the content.CR Sanjiu Medical &Pharmaceutical Co. Ltd.Address: No. 1 Guanqing Road Guanhu Street Guanlan High-tech Zone Longhua District Shenzhen

Postcode: 518110

Fax: (86) 755-83350888

Telephone: (86) 755-83360999

Email: 000999@999.com.cn

Website: https://www.999.com.cn

130 131China Resources Sanjiu Medical & Pharmaceutical Co. Ltd.