2024 Sustainability and Environmental Social and Governance (ESG) Report

Message from the Chairman

In 2024 Walvax Biotechnology forged ahead with renewed for multiple consecutive years. To date we have launched We are driving a green transformation to build a cleaner

ambition and unwavering commitment. This year we actively 8 vaccine products with 14 specifications and an additional low-carbon production system. Walvax Biotechnology

embraced change and focused our efforts on building a mRNA vaccine targeting the Omicron XBB.1.5 variant has integrates green ecological principles and sustainability

dynamic customer- and market-oriented business framework. been approved for emergency use by Chinese national requirements into every aspect of its operations. We are

These strides marked a new chapter in our pursuit of high- authorities. These achievements reflect the Company's committed to building a company-wide EHS management

quality development. Throughout the year we remained enduring commitment to public health. In 2024 the Company system that spans all business units while proactively

committed to strengthening corporate governance protecting achieved new breakthroughs in several innovative blockbuster addressing the risks and opportunities brought by climate

the environment and fulfilling our social responsibilities. products and technologies. With continuous improvements in change. We are firmly advancing resource conservation

In doing so we continuously enhanced our capabilities in quality management Walvax Biotechnology is honored to be and environmental protection action plans. Through robust

governance innovation resilience competitiveness and value recognized among the Top 500 Private Enterprises in R&D environmental management systems and the implementation

creation. These efforts not only advanced the Company's Investment 2024 and the Top 10 Most Innovative Non-public of high-standard environmental practices we strive to

sustainable growth but also contributed to the broader goal of Enterprises in Yunnan Province 2024. In December 2024 the establish a production system that is clean low-carbon

sustainable economic and social development. Yunnan Vaccine Laboratory passed the acceptance inspection and climate-resilient. In 2024 the Company incorporated

and was officially inaugurated. It will serve as a key strategic energy management indicators and targets into its annual

Steady progress paves the way for long-term success platform for Walvax Biotechnology to advance vaccine R&D performance evaluations. With continued upgrades in

as transformation fuels the Company's enduring growth. and industrialization facilitate technology commercialization equipment and technology and more efficient production-sales

To better implement its development strategy for the new era power industrial growth and nurture talent. The laboratory coordination we achieved sustained reductions in energy

and respond more swiftly and effectively to customer needs will contribute to China's vaccine industry development and consumption water usage greenhouse gas emissions and

Walvax Biotechnology launched a transformation initiative in biosafety strategy supporting the nation's efforts to achieve hazardous waste discharge. Our efforts toward clean and

2024. Guided by this imperative for change the Company greater scientific independence and self-reliance. low-carbon production have begun to deliver tangible results.

restructured its organizational framework and management Looking ahead we will work hand in hand with partners

processes establishing a new business architecture centered Promoting health hand in hand we embrace a vibrant and across the industry chain to advance the green transition and

on business units (BUs) as the core operational entities. Each promising future. Walvax Biotechnology remains committed safeguard our shared planet.BU is now empowered to focus more sharply on its strategic to driving progress through technological innovation and

goals taking full charge of business planning and execution. building on a foundation of high-quality products. By fostering Moving forward Walvax Biotechnology will remain steadfast

This transformation has laid a solid organizational foundation local collaborations and making vaccines more accessible in embracing change. We will continue refining the R&D

for the Company's high-quality and sustainable growth. With and affordable we are bringing life-saving solutions to production and industrialization of our core proprietary

the support of the founding team the Board of Directors more people across the globe. As of the end of 2024 our products maintaining strategic focus and pursuing steady

appointed a new generation of executive leadership. This more products had reached 22 countries and regions with over progress. We are also committed to fulfilling the mission and

Staying true to its original aspiration and professional younger and international management team is 55 million doses supplied to developing nations. Notably our responsibilities entrusted to biopharmaceutical enterprises in

steadfastly embracing change Walvax now leading the Company through a strategic transformation— bivalent HPV vaccine received WHO prequalification and this era actively exploring new business areas and innovative

Biotechnology continues its journey to help anchored in integrity powered by innovation and committed achieved its first overseas market approval. We continue models and continuing our journey toward helping everyone

everyone live a healthy life. to long-term growth. Together we strive to build a new global to pursue the development of high-quality high-value and live a healthy life.benchmark for vaccine innovation and equitable access more accessible vaccines while actively advancing global

advancing public health for all. public health through public health education initiatives and

vaccine donation programs. At the same time we have fully

Driven by innovation we are accelerating the development implemented our "Ever-Thriving Walvax" talent development

of new quality productive forces. Guided by the belief system cultivating a diverse dynamic and innovation-driven

that "life is priceless and science is boundless" Walvax team of professionals. Together we are safeguarding health Li Yunchun

Biotechnology continues to invest heavily in R&D for new and life and journeying toward a vibrant and promising future Chairman of Walvax Biotechnology Co. Ltd.products and projects. We regard independent innovation for all.strategic acquisitions and deep integration across industry

academia and research as the driving force behind the

Company's growth and consistently foster new quality

productive forces. For years the Company has maintained

annual R&D investment at approximately 20% of its operating

revenue. Walvax Biotechnology has been listed among the

Top 10 manufacturers by value (excluding COVID-19) by WHO

01 022024 Sustainability and Environmental Social and Governance (ESG) Report

About Walvax Biotechnology Product Overview

Company Profile Non-Expanded Program on Immunization (Non-EPI) Vaccines

Launched in 2022 Launched in 2020 Launched in 2017

Indicated for females aged 9-30 years; Indicated for infants and children from Indicated for individuals over 2 years of

Founded in 2001 Walvax Biotechnology Co. Ltd. (hereafter for two consecutive years. Adhering to its development Prevents cervical cancer and related 6 weeks to 5 years of age (prior to 6th age with increased risk of pneumococcal

referred to as "Walvax Biotechnology") is a cutting-edge philosophy of "Rooted in Yunnan Based in China" the diseases caused by high-risk HPV types birthday); Prevents infectious diseases infection; Prevents pneumococcal

biopharmaceutical enterprise integrating R&D production and Company has built high-standard high-performance platforms 16 and 18 caused by 13 serotypes of Streptococcus diseases caused by 23 serotypes of

sales of human vaccines. The Company has established itself for translating technology into product. It has invested in the pneumoniae Streptococcus pneumoniae

as an industry leader in the biotechnology pharmaceutical construction of R&D centers in Kunming High-tech Industrial

sector particularly in novel vaccines. In 2010 the Company Development Zone and Shanghai Zhangjiang Hi-tech Park as

was successfully listed on the Shenzhen Stock Exchange well as a state-of-the-art vaccine production base in Yuxi State

(stock code: 300142) becoming the first enterprise from High-Tech Development Zone Yunnan. The Company is also

Yunnan Province to be listed on China's ChiNext board. advancing the construction of new vaccine industrial bases

in Beijing Guangzhou and other locations while planning

Guided by the purpose "Help Everyone Live a Healthy Life" global fill-finish bases. These efforts lay a solid foundation for

Walvax Biotechnology has steadily advanced over more than realizing the vision of "Made in China Supplied Globally."

two decades securing approval for 8 vaccine varieties across Bivalent Human Papillomavirus Vaccine 13-valent Pneumococcal Polysaccharide 23-valent Pneumococcal Polysaccharide

14 specifications. In December 2023 its mRNA vaccine Looking ahead Walvax Biotechnology will continue to Conjugate Vaccine Vaccine

targeting the Omicron XBB.1.5 variant received emergency advance along an innovation-driven path that integrates

use authorization making it the only company worldwide to independent R&D strategic mergers and acquisitions and

offer all three of the best-selling vaccine varieties: COVID-19 deep collaboration across industry academia and research. Launched in 2012 Launched in 2009 Launched in 2007

mRNA vaccine HPV vaccine and pneumococcal conjugate The Company remains committed to developing high-value Indicated for children over 2 years of age Indicated for children aged 3 months to Indicated for infants from 2 months of age

vaccine. The Company's products have reached 22 countries customer-oriented and internationally competitive vaccines and high-risk adults; Prevents meningitis 5 years; Prevents diseases caused by to children of 5 years; Prevents diseases

and regions and it has been recognized among the Top bringing the benefits of immunization to an ever-growing caused by corresponding Neisseria Neisseria meningitidis serogroups A and C caused by Haemophilus influenzae type bmeningitidis serogroups

10 manufacturers by value (excluding COVID-19) by WHO global population.

Products exported to Overseas business revenue in 2024 reached RMB This represents a Group ACYW135 Meningococcal Group A and Group C Meningococcal Haemophilus Influenzae Type b

Polysaccharide Vaccine Conjugate Vaccine Conjugate Vaccine

22 570 million 98%

Expanded Program on Immunization (EPI) Vaccines Emergency Use

countries and regions increase compared to 2023

Launched in 2017 Launched in 2012 Approved for emergency use in 2023

Indicated for children aged 3 months to 6 Indicated for children over 2 years of Indicated for individuals 18 years and

years; Prevents pertussis diphtheria and age and adults; Prevents epidemic older; Prevents COVID-19 infection

tetanus cerebrospinal meningitis caused by caused by prevalent strains such as

Neisseria meningitidis serogroups A and C Omicron XBB EG.5 etc.Diphtheria Tetanus and Acellular Group A and C Meningococcal SARS-CoV-2 mRNA Vaccine

Pertussis Combined Vaccine adsorbed Polysaccharide Vaccine (Omicron XBB.1.5)

03 042024 Sustainability and Environmental Social and Governance (ESG) Report

Key Figures of 2024

Total assets: Products exported to Walrinvax (HPV-2 Vaccine) Total employees: Annual increase in environmental

received WHO protection investment:

RMB 14.724 billion 22 countries and regions prequalification 1932 RMB 2.9732 million

and obtained its first overseas

registration and market access

Operating revenue: Annual exports to developing Overall service quality Proportion of female Greenhouse gas emission

countries and regions: Over satisfaction: executives: intensity:

RMB 2.821 billion 9 million doses 99.72% 43.24% 0.151 tons of CO2

equivalent/RMB 10000 revenue

Total tax contribution: Annual overseas business Annual product recall rate: Annual charitable Compliance rate for wastes

revenue reached donations: emissions:

RMB 139 million RMB 570 million 0% RMB 5.1069 million 100%

representing a 98% increase

from 2023

Index Inclusions

ChiNext 50 Index SZSE 200 Index Hang Seng Stock Connect Biotech 50 Index

Net profit attributable to shareholders Annual vaccine batch CSI Health Care 100 Index CSI 500 Index CSI Vaccine and Biotechnology Total

of the listed company: release: Return Index

CNI Health Care Sector Index Hang Seng China A Innovative Enterprises Index SSI A-share Large Cap IndexRMB 142 million 24.6392

million doses

Annual R&D investment: Vaccine delivery rate:

RMB 700 million 100%

05 062024 Sustainability and Environmental Social and Governance (ESG) Report

Honors & Memberships Sustainable Development Management

Corporate Honors in 2024

Award / Recognition Issuing Organization Sustainable Development Governance System

Exemplary Enterprise for Industry-University-Research Cooperation and China Industry-University-Research Institute

Innovation in China Collaboration Association

Top 50 Chinese Biopharmaceutical Companies by R&D Strength 2024 Organizing Committee of China Pharmaceutical R&D Walvax Biotechnology has fully integrated sustainable Group comprising personnel from various departments and and Innovation Summit development into its business strategy. The Company's subsidiaries is charged with implementing specific sustainable

Chinese Red Cross Dedication Medal Red Cross Society of China sustainable development management is aligned with its development tasks. These include developing specialized

corporate development strategy with continuous refinement plans aligned with the Company's overall strategy conducting

Best Practice Case in Sustainable Development for Listed Companies

2024 China Association for Public Companies of its governance system. A comprehensive top-down regular reviews of sustainable development indicators

management mechanism has been established involving compiling reports and gathering and submitting relevant

Top 10 Innovative Non-Public Enterprises in Yunnan Province 2024

(Ranked 2nd) the Board of Directors management functional departments information. The Company's Organizational Performance Yunnan Federation of Industry and Commerce and business units. To this end the Company has formulated Management Measures (Trial) incorporates assessment

Top 100 Non-Public Enterprises in Yunnan Province 2024 (Ranked 34th) the Walvax Biotechnology Sustainable Development criteria for ESG factors such as quality safety and the

Top 100 Yunnan Enterprises 2024 （Ranked 53rd） Management System and related policies. These documents environment. Quantitative indicators are used to measure the

define sustainable development concepts principles scope effectiveness of ESG strategies which are also integrated into

Top 100 High-Tech Enterprises in Yunnan Province 2024 (Ranked 25th) Yunnan Enterprise Confederation Yunnan

Entrepreneurs Association of authority and tasks providing institutional guidance the assessment framework for the remuneration system.Top 100 Manufacturing Enterprises in Yunnan Province 2024 (Ranked for the implementation supervision and development of

35th) sustainable development-related initiatives. This enhances the Members of the Sustainable Development Committee and ESG

Working Group possess extensive professional knowledge

Exemplary Employer Brand Management Award 2024 Yonyou / Dayee HR SPACE systematicity and effectiveness of the Company's sustainable

development management. and practical experience. During the reporting period the

Typical Case of Global Brand Innovation and Development 2024 Organizing Committee of Global Brand Innovation Company conducted thorough reviews and examinations of Development Think Tank Forum The Board of Directors serves as the principal body material issue assessments goal achievements and other

Consumer Satisfaction Brand for Brand Influence 2024 Organizing Committee of Brand Influence Development responsible for managing and making decisions on economic critical matters. Additionally two ESG-specific training sessions Conference and Results Release Event environmental and social issues. Its duties include evaluating were organized for all employees covering ESG trends rating

Top 20 Chinese Listed Pharmaceutical Companies by ESG Healthcare Executive the impacts risks and opportunities associated with the interpretations and implementation guidance. These efforts Competitiveness 2024 Company's sustainable development initiatives deliberating aim to enhance employees' understanding of the Company's

Five-Star Gold Award for Social Responsibility Among China's Listed Times Responsibility 40 Forum Think Tank on and deciding significant sustainability-related issues ESG strategies and ensure the effective implementation of Manufacturing Companies 2024 and ensuring the effectiveness of these decisions. Under ESG initiatives across the organization.Industry Association Memberships the Board a Sustainable Development Committee has

been established. Chaired by the Chairman this committee

Association Position is tasked with researching guiding and reviewing the

Company's sustainable development objectives policies

China Association for Vaccines Council Member and plans. Additionally it monitors the implementation of

key sustainable development initiatives assesses goal

China Society for the Study of the Private–Sector Economy Executive Council Member attainment and offers recommendations for improvement. At

China Industry-University-Research Institute Collaboration Association Vice President Unit the management level the President's Office and the ESG

Office are responsible for developing sustainable development

The Supply Chain Branch of the China Association for Vaccines Executive Council Member strategies coordinating action plans and overseeing the

achievement of related objectives. The ESG Working

The General Association of Dian Entrepreneurs Vice President Unit

Yunnan General Chamber of Commerce Executive Council Member

Yunnan Pharmaceutical Chamber of Commerce Vice President Council Member

Yunnan Young Entrepreneurs Chamber of Commerce Vice President Unit

Yunnan Pharmaceutical Industry Association Vice President Executive Council Member

Yunnan Provincial Intelligence and Digital Economy Association Vice President Unit

Yunnan Enterprise Technology Center Association Executive Council Member

Yunnan Microbiology Society Executive Council Member

Yunnan Biomedical and Health Industry Promotion Association Executive Council Member

New Medical Education Alliance in Yunnan Executive Council Member

07 082024 Sustainability and Environmental Social and Governance (ESG) Report

Stakeholder Management

Walvax Biotechnology's Sustainable Development Governance Structure Walvax Biotechnology maintains effective communication with stakeholders through a proactive and transparent approach.Stakeholders' concerns demands opinions and suggestions are integrated into the identification and response to sustainable

development risks and opportunities as well as the establishment of performance indicators and management mechanisms. The

objective is to address the expectations and requirements of various stakeholder groups.Decision-Making Level

Stakeholder Groups Expectations and Requirements Communication Methods and Channels

● Evaluate sustainable development-related impacts risks and opportunities facing

the Company

● Engage in the review and decision-making process for significant sustainable Board of ● Dedicated meetings and reportsDirectors

development matters ● Compliance with laws and regulations ● Policy consultation and feedback

● Provide comprehensive oversight of sustainable development issues and assume Sustainable ● Fulfillment of tax obligations ● Official site visits

responsibility for their effectiveness Development Government and Regulatory Bodies ● Committee Contribution to local development

● Regulatory compliance inspections

● Statutory information disclosure

Management Level

President's Office ● Annual general meetings

● Execute and monitor sustainable development strategies plans and objectives ● (including executives Sustainable and consistent returns ● Financial reports and announcements

● Assess the materiality of sustainable development issues and integrate responsible for various issues) ● Transparency in information ● Investor hotline services

them into operational considerations disclosure

● Identify and allocate the necessary costs and resources for detecting ESG Office

●

●

Shareholders and Investors Effective investor relations

Roadshows and reverse roadshows

mitigating managing and monitoring sustainable development-related (coordinates and advances management

● Performance briefings and investor

impacts risks and opportunities ESG initiatives) events

● Customer satisfaction surveys

Executive Level ● Assurance of product quality and ● ESG Working Groups Customer relationship management

● Manage various issues through designated channels and safety systems

●

develop targeted sustainable development plans Corporate Governance

● Environmental Health and Safety ● Enhanced customer service ● Customer audits and feedback

Working Group (EHS) Working Group

Implement specific sustainable development initiatives ● ● Product Safety and Quality Employee Responsibility Working Customers Guarantee of business continuity sessions● ●

● Conduct regular monitoring and reporting of sustainable Working Group Group ● Customer privacy protection ● Engagement through social media

development indicators ● Health Accessibility ● Information Security and Privacy platformsWorking Group Protection Working Group

● Adherence to ethical business

● Supply chain audits and capacity

practices building

● Implementation of responsible supply

● Open innovation initiatives

chain management

● Regular communication and dialogue

Partners ● Promotion of industry collaboration

●

and knowledge exchange Participation in industry conferences

In 2024 Walvax Biotechnology conducted a comprehensive analysis of key sustainability frameworks based on the

●

Company's vision. These include the IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Protection of employee rights and

●

and the Employee engagement activitiesInformation IFRS S2 Climate-related Disclosures Self-Regulatory Guidelines No. 17 for Companies Listed benefits

●●

on Shenzhen Stock Exchange—Sustainability Report (For Trial Implementation). The Company benchmarked its Commitment to occupational health Comprehensive training programs

●

practices against leading domestic and international ESG rating systems. Aligning with the United Nations Sustainable and safety Performance review and feedback

●

Development Goals (SDGs) and industry trends it initiated groundwork for developing a robust sustainable development Provision of training and development sessions

strategy and enhancing top-level design with the aim of boosting governance capabilities competitiveness innovation Employees opportunities

● Internal communication platforms

●

performance and resilience to risks. Promotion of diversity and equal ● Established grievance mechanisms

opportunities

● Efficient and sustainable resource

●

utilization Proactive climate change mitigation strategies

● Minimization of environmental

●

footprint Reduction of wastes emissions

●

Environment ● Leadership in industry-wide green

Active participation in biodiversity

development initiatives conservation efforts

● Commitment to product quality and ● Proactive media engagement

safety ● Transparent public disclosures

● Engagement in philanthropic and ● Implementation of community-focused

charitable activities projects

Public and Communities ● Fostering community relations and ● Organization of employee volunteer

development programs

09 102024 Sustainability and Environmental Social and Governance (ESG) Report

Materiality Assessment Risk and Opportunity Management

Walvax Biotechnology considers stakeholder concerns as a critical factor in formulating its sustainable development strategy. The Walvax Biotechnology strictly adheres to legal and regulatory requirements including the Company Law of the People's Republic

implementation of systematic materiality issue management forms the cornerstone of our sustainable development planning risk of China Securities Law of the People's Republic of China Basic Standard for Enterprise Internal Control and Guidelines for the

and opportunity management and information disclosure. The Company regularly conducts materiality analyses. In 2024 analytical Application of Enterprise Internal Control. With the management objective of "strengthening internal control preventing risks and

methods were refined in accordance with the latest disclosure standards including the GRI Standards for Sustainability Reporting promoting compliance" the Company has developed institutional guidelines such as the Walvax Biotechnology Risk Management

the IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and the Self-Regulatory Guidelines System and Walvax Biotechnology Internal Control Deficiency Identification Standards tailored to the specific characteristics of

No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For Trial Implementation). The Company the industry. A comprehensive work model centered on risk management and compliance management supervision has been

performed a comprehensive double materiality assessment across various stakeholder groups identifying and evaluating material established alongside a "three lines of defense" internal control and risk management implementation structure. These measures

issues from two perspectives: "impact materiality" (importance to impacts on economic environmental and social sustainability) are designed to enhance the management of sustainability impacts risks and opportunities ensuring the Company's stable

and "financial materiality" (importance to impacts on the Company's financial performance). This thorough review examines the operation.concerns of all parties and their financial implications for the Company. To better address stakeholder expectations and demands

rigorous management and disclosure practices were implemented for high-impact issues. The Board and Sustainable Development

Committee reviewed and endorsed the materiality matrix for the current year.Risk Management Structure

Identify general and industry-specific Conduct targeted surveys Perform internal management The Board of Directors holds ultimate responsibility for risk management. Their duties include approving the Company's risk

issues by referencing authoritative among key internal and external assessment and external expert management strategy determining overall risk levels sanctioning major risk response plans monitoring the effectiveness of

domestic and international stakeholder groups to develop evaluation for the screening and risk management practices and evaluating the management team's performance in this area. The Audit Committee operating

sustainability reporting guidelines the 2024 materiality matrix analysis results with final review under the Board reviews the effectiveness of risk identification assessment management and monitoring procedures. Specific

and standards mainstream ESG determining the material issues and validation by the Sustainable

rating systems and sustainability and their priorities for the current Development Committee. risk management responsibilities are delegated to other committees such as the Sustainable Development Committee within

issues of concern within the industry. year. their areas of expertise. The President's Office is responsible for executive management including formulating risk management

strategies objectives appetite and tolerance. It oversees the control of operational and business risks providing regular reports

to the Board on the Company's risk management status. An Internal Audit Department has been established to assess various

business and sustainability risks supervise the implementation of risk management systems and deliver annual reports to the Audit

Committee and executive management on key risk control efforts. The Compliance Office is tasked with identifying assessing and

managing compliance risks.High Product Quality

Research Ethics in and Safety

Science and Technology

Corporate Governance

Health Accessibility

First Line of Defense

Business Ethics and

Anti-corruption

The Company's business departments functioning as front-end units serve as the primary entities responsible for internal

Human Capital

Development control and risk management establishing and implementing the first line of defense.Information Security and Privacy Protection

Second Line of Defense

Climate Change

Mitigation

The Company's internal control and risk management functional units including Quality Compliance Safety Human

Digital Transformation Sustainable Supply Chain Resources and Finance departments act as support units for internal control and risk management establishing and

Customer Relationship Management implementing the second line of defense.Industrial Cooperation Occupational Health and

and Development Safety

Labor and Human Third Line of Defense

Rights Management Emissions

Diversity and Equal and Waste

Opportunity Management

The Company's internal audit unit and external auditors serve as assurance providers for internal control and risk

Resource Utilization and Water Resource Management

Circular Economy management implementing the third line of defense.Biodiversity

Conservation Rural Revitalization and

Social Contribution

Low Importance to Impacts on Economic Environmental and Social Sustainability High

1112

Importance to Impacts on the Company's Financial Performance2024 Sustainability and Environmental Social and Governance (ESG) Report

Strategy and Procedures Material Issues Impact Period Risks and Opportunities Impact Level

● Evolving external regulatory standards may result in

Walvax Biotechnology has established five key areas of focus for risk management: compliance assurance industry regulation regulatory penalties market access restrictions and Negative Impact: highly Short-term

risk orientation risk (deficiency) identification standards and internal control self-assessment. Risk management indicators are diminished market trust if the Company fails to adapt significant;medium-term effectively.integrated into the performance evaluation system. In response to changes in both internal and external environments the Company Product Quality long-term Positive Impact: highly

and Safety ● High-quality products can enhance customer trust expand significant

conducts comprehensive risk identification assessment and management. On an annual basis it employs a variety of methods market share and secure competitive advantages.including questionnaires expert consultations scenario analyses policy reviews and industry benchmarking. This approach allows

for a focused review of critical business areas key domains crucial operational aspects and international business activities. All

●

business departments are mobilized to review identify and assess specific business risks. By evaluating the potential impact and In the face of technological challenges market competition and internationalization R&D investments necessitate

likelihood of risks priorities for risk management efforts are determined resulting in the creation of a Risk Database and an Internal increased financial commitments with uncertain commercial

Control Database. The Company assesses risks (including sustainability-related risks and opportunities) that may significantly outcomes. Negative Impact: Short-term moderately significant;

impact its business model operations development strategy financial status and value chain in the short medium or long term. medium-term ● Research Ethics in Advancements in disruptive technologies such as mRNA long-term Positive Impact: highly Based on these assessments risk management policies and response measures are adjusted accordingly. Furthermore the Science and Technology gene editing synthetic biology and artificial intelligence significant

Company has implemented effective risk handling and emergency management mechanisms. For newly emerging significant risks can facilitate the development of vaccines with substantial

medical and social value which helps sustain long-term

lacking established response plans the President assembles a team to develop appropriate plans which are then submitted to the market competitiveness.Board for consideration.The Company actively promotes employee involvement in fostering a robust corporate risk management culture. Employees are ● As the domestic pharmaceutical industry undergoes

provided with tailored risk management training focusing on job functions and business characteristics. Departments are mandated structural transformation it faces increasingly complex policy market and technological risks. Vaccine demand is

to promptly study and analyze emerging regulations and policies engaging external experts for further interpretation and training Short-term becoming more susceptible to disease prevalence trends. Negative Impact: minimal;

when necessary. This approach ensures operational compliance and helps reduce risks to an acceptable level. Health medium-term Positive Impact: highly

Accessibility long-term

● Considerable unmet demand persists in the global vaccine

sector. Frequent national policies promoting innovation significant

and biopharmaceutical industry growth offer substantial

development potential.Risk Identification Risk Assessment Risk Control

● Instances of commercial bribery and corruption can

● Utilize a diverse range ● Evaluate risk probability ● Implement risk management potentially incur significant economic costs legal

ramifications operational risks and reputational damage to Negative Impact:

of methods including measures based on identified

Assess the severity of potential Short-term ● the Company. significant;questionnaires document risk levels and the Company's Business medium-term

risk impacts ● Robust anti-bribery and anti-corruption measures contribute Positive Impact: moderately reviews on-site inspections specific circumstances considering Ethics and Anti- long-termCorruption to the establishment of sound internal management systems significant

penetration testing and SWOT ● Calculate risk values to strategies such as risk avoidance and processes optimizing operations and enhancing

analysis determine risk levels transfer reduction and mitigation efficiency and transparency.of potential impact severity

● Evaluate the effectiveness of

●

existing control measures Conduct ongoing risk monitoring Inadequate employee training and development may lead ● to strategic and organizational change risks as well as

and early warning procedures increased employee turnover. Negative Impact:

Short-term moderately significant;

medium-term ● A comprehensive employee learning development and

Human Capital long-term talent nurturing system will underpin the achievement Positive Impact: highly

Development of company strategic objectives bolster brand and significant

market competitiveness and generate potential business

opportunities.Analysis of Material Issues' Impact Risks and Opportunities ● Multi-faceted risks encompass technological human Negative Impact: highly

Short-term management and operational aspects. Inadequate significant;

Information Security medium-term management of critical data and customer privacy may

Walvax Biotechnology places a strong emphasis on identifying and managing significant financial and non-financial risks that may and Privacy long-term result in data breaches leading to compliance issues Positive Impact: moderately

affect business strategy and objectives. The Company proactively incorporates major sustainability risks and opportunities into Protection reputational damage and erosion of customer trust.significant

the risk review and business planning processes. Through rigorous and independent procedural mechanisms risks are defined

and quantified accurately. This approach enables effective management or mitigation of risks while simultaneously identifying ● Climate change-induced extreme weather events and

opportunities for growth and transformation. natural disasters pose both physical and transition risks.Their unpredictability may lead to asset losses increased

costs due to supply chain disruptions and changes in

market conditions and disease patterns that may impact Negative Impact:

Medium-term

Climate Change product strategies. significant;long-term

Mitigation ● Possible solutions include identifying new business areas in Positive Impact: significant

climate change-related disease areas developing innovative

vaccine solutions. Enhanced energy management practices

will also ensure long-term stable power supply and yield

energy-saving benefits.Note: Impact levels are categorized as "minimal" "moderately significant" "significant" and "highly significant".

13 14Strengthening

Governance

for Sustainable

Growth

Operating revenue

RMB 2.821 billion

Anti-corruption training coverage:

100%

Number of significant information security

risk incidents:

02024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Guidance Through Party Building

Walvax Biotechnology deeply integrates Party-building with Celebration of the 103rd Anniversary of the CPC themed "Stay True to

its corporate philosophy of "Help everyone live a healthy the Original Aspiration and Embrace Reform"

life" guided by its mission to serve the country and society

through unwavering dedication. Through concrete actions

the Company demonstrates its profound respect for life and

continuously refines its "Wo·Health" Party-building brand.Focusing on six key areas—ideological development

organizational development institutional development

capacity building brand development and mass organization

development the Company closely aligns Party-building with Awarded the title of

its business operations elevating Party-building efforts to

new heights and contributing to its sustainable development Advanced Primary-

strategy. Level Party

Organization by the Kunming Deputy Secretary Li Yunchun leading all Party Themed Party lecture on "Fostering New Productive Forces to

members in reaffirming the Party oath Support High-Quality Corporate Development"

Ideological Development High-Tech Industrial Development Zone.We have thoroughly studied and implemented Xi Jinping

Thought on Socialism with Chinese Characteristics for a New Awarded the title of "Strong

Era along with the spirit of the 20th CPC National Congress

and the spirit of the 1st/2nd/3rd Plenary Session of the 20th Party-Building Strong

CPC Central Committee. In celebration of the Party's 103rd

anniversary we organized a variety of enriching activities. Development" Torch

In alignment with the Company's business characteristics Program Model Party

we held a themed Party lecture titled "Fostering New Quality

Productive Forces to Support High-Quality Corporate Organization by the Kunming

Development" which further enhanced the unity and solidarity High-Tech Industrial Development Zone. Recognition of Outstanding Party Members Party Workers

of our Party members. and Advanced Party Branches at Walvax Biotechnology for

Their Excellence in Leading Innovation and Excellence Choral performance "Towards Revival"

Organizational Development Institutional Development

Capability Building Brand Development

The Party Committee of Walvax Biotechnology consists of one We have established comprehensive standards and

General Party Branch and nine Party Branches. In 2024 the institutional mechanisms for Party building along with

Yunnan Vaccine Laboratory Party Branch was established a standardized management system for Party-related The "Smart Party Building" platform has been implemented We consistently refine the "Wo Health" Party-building brand

along with the formation of a trade union ensuring full documents. The Implementation Measures for the Selection to strengthen Party member management through digital shaping the spiritual ethos of Walvax employees through

coverage of primary-level Party organizations and enhancing of Outstanding Party Members (Trial) have been formulated solutions enhancing the efficiency of Party-building efforts. five dimensions: "Born in Health Learn for Health Think for

their effectiveness. and published and the Party and Mass Work Manual has The internal publication Walvaxer serves as a key medium Health Act on Health and Serve for Health." The construction

been upgraded. These efforts ensure that Party-building for promoting the Party's policies and the Company's of the Party Building Cultural Corridor was completed in 2024.activities are conducted in accordance with clear regulations development achievements while also highlighting exemplary

and standardized procedures thereby improving governance deeds of Party members and showcasing the role model of

effectiveness. Party organizations as strongholds of support. These efforts

help inspire and motivate employees.Mass Organization Development

Guided by the principle of "integrating Party-building with business operations and empowering employees" the Company has

reinforced efforts in mass organization development by hosting diverse cultural events such as tea culture workshop and World Book

Day activities. These initiatives enrich employees' cultural experience while fostering the inheritance and innovation of the corporate

culture. At the same time we actively explore innovative pathways for aligning Party-building with core business practices improve

communication channels for employee concerns and enhance employee cohesion and sense of belonging.

17 182024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Corporate Governance The General Meeting of Shareholders as the highest authority of the Company

primarily exercises decision-making and supervisory powers. It convenes the

shareholders' meetings in compliance with the Rules for the Shareholders' Meetings

Enhancing the Governance of Listed Companies the Articles of Association and the Rules of Procedure for

Shareholders' Meetings ensuring that all shareholders particularly minority and small

Framework General Meeting of shareholders are treated equally and can fully exercise their legal rights.Shareholders

Walvax Biotechnology strictly complies with the legal and Held passed

regulatory requirements of the Company Law of the People's

Republic of China the Securities Law of the People's Republic 2 shareholders' meetings throughout the year 17 resolutions

of China the Measures for the Administration of Stock

Exchanges the Code of Corporate Governance for Listed

Companies the Shenzhen Stock Exchange Growth Enterprise

Market (GEM) Listing Rules and the Shenzhen Stock The Board of Directors is accountable to the General Meeting of Shareholders and is

Exchange Self-Regulatory Guidelines No. 2 – Standardized responsible for making decisions on major corporate matters and business operations.Operations for Companies Listed on the Growth Enterprise It oversees five specialized committees: the Strategy Committee the Audit Committee

Market (GEM) as well as the Articles of Association and other the Nomination Committee the Remuneration and Evaluation Committee and the

internal corporate regulations. The Company has established Sustainable Development Committee. These committees provide professional advice

a stable corporate governance structure in which the General and recommendations to support the Board's decision-making. Among them the Audit

Meeting of Shareholders the Board of Directors the Board Committee Nomination Committee and Remuneration and Evaluation Committee

of Supervisors and the management team each fulfill their are primarily composed of independent directors who also serve as their respective

respective duties while maintaining a system of mutual checks chairs. The company continues to strengthen the supervisory and advisory roles of

and balances. external directors effectively enhancing the scientific rigor of board decision-making.The Company consistently improves and implements its

internal control systems clearly defining the rights and

responsibilities of shareholders directors supervisors and Held passed Board of Directors

senior management. It fully respects and safeguards the

legitimate rights and interests of its stakeholders including 9 board meetings throughout the year 46 resolutions

shareholders employees customers consumers suppliers

and creditors. At the same time the Company remains

committed to strengthening the standardized governance Held

of its subsidiaries ensuring robust risk management

and upholding the legitimate rights and interests of all 7 Audit Committee meetings 1 Strategy Committee meetingshareholders especially minority investors. For details on the

Company's governance structure governance mechanisms

shareholding structure and information about the controlling

shareholders and actual controllers please refer to the 2 Remuneration and 3 Nomination Sustainable Development Walvax Biotechnology Co. Ltd. 2024 Annual Report. 2

Evaluation Committee Committee meetings Committee meetings

meetings throughout the year

As the Company's supervisory body the Supervisory Board is accountable to the

General Meeting of Shareholders and is responsible for overseeing the Company's

financial affairs as well as ensuring the legality and compliance of the Board of

Directors and senior management in the performance of their duties. It plays a

key role in safeguarding the legitimate rights and interests of the Company and its

shareholders while promoting its healthy stable and sustainable development. As

Supervisory Board of the end of 2024 the Supervisory Board consists of three members including two

employee representative supervisors and two female supervisors.Held passed

5 Supervisory Board meetings throughout the year 19 resolutions

19 202024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Board Diversity and Effectiveness Driving Organizational Transformation

Walvax Biotechnology firmly believes that board diversity Audit Committee composed of three independent directors Amidst the complexities and fluctuations of the market coupled with the demands for high-quality development the drive for

strengthens the rigor and effectiveness of decision-making includes two accounting professionals. Several Board innovation and change has emerged as a unified consensus across the industry. To achieve long-term sustainable development

playing a vital role in advancing the Company's strategic members also bring valuable experience in risk management Walvax Biotechnology consistently strengthens its strategic and organizational capabilities through systematic transformation and

objectives and sustaining long-term development. The and prevention such as developing risk control frameworks optimization. Our focus spans multiple key areas including capital strategy planning strategic decision-making and positioning

nomination of Board members follows a rigorous selection addressing and mitigating significant risks and providing globalization strategy organizational transformation organizational capability development and leadership and cultural

process in accordance with the Rules of Procedure for the effective risk solutions. Their expertise strongly supports advancement. By driving strategic and managerial reforms the Company proactively addresses internal and external challenges

Nomination Committee of the Board of Directors and other the Company in identifying mitigating and resolving risks. steadily enhancing its core strategies talent pool and resource allocation. These efforts support Walvax Biotechnology in its pursuit

relevant regulations. Diversity is a key consideration in the The remuneration of board members is reviewed annually of becoming a globally leading enterprise.nomination review process where candidates are assessed by the General Meeting of Shareholders. In the event that

based on a comprehensive evaluation of their educational the Company or any individual's performance does not meet In 2024 the Company undertook an organizational transformation to support the implementation of its new development strategy

background industry experience professional expertise the required expectations or if any inappropriate conduct is for the current stage and to better respond to customer needs with greater agility. The organizational structure and management

specialized skills and work history. The selection process found the Company reserves the right to recover part or all of processes were restructured transitioning to a Business Unit (BU)-based model under which each BU functions as an operational

prioritizes candidates' strengths and the benefits of board the remuneration already paid or to withhold any outstanding unit bearing full responsibility for key performance indicators such as revenue profit and cost. This adjustment ensures the

diversity ensuring that the Board maintains a well-balanced remuneration. comprehensive implementation of operational responsibilities enables holistic business planning and development and strengthens

composition in terms of capabilities skills experience gender the organizational foundation for high-quality growth. With strong support from the Company's founding team the Board of Directors

age and cultural and educational backgrounds. This approach As part of its ongoing efforts to enhance corporate governance appointed a new management team to lead this transformation. Characterized by enhanced professionalism a younger profile and

enhances corporate governance and strengthens decision- Walvax Biotechnology actively promotes professional training a global vision the new team is positioned to drive the Company's strategic transformation and long-term growth.making effectiveness. for board members. Directors are encouraged to participate in

training sessions on internal policies codes of conduct and

The Company's Board of Directors currently consists of 11 relevant securities market laws and regulations to strengthen

members including 4 independent directors accounting their professional expertise and fulfill their duties more General Meeting of Shareholders

for more than one-third of the Board. Two of the directors effectively. During the reporting period Walvax Biotechnology

are women. The current Board consists of 11 members held two professional skill training sessions for the Board of Strategy Committee

with diverse professional backgrounds and expertise Directors covering topics including business ethics and anti- the Supervisory Board

in pharmaceutical chemistry biological sciences risk corruption risk mitigation of insider trading and related-party Audit Committee

management financial accounting law and finance. The transactions and information security and privacy protection.Nomination Committee Board of Directors

Remuneration and

Professional Capacity Evaluation Committee Board Office

Sustainable Development

Type Name Gender

Industry Risk Financial Operations Committee

Experience Management Accounting Law and PresidentManagement

Director Chairman of the

Board Li Yunchun Male √ √ R&D and Translational Strategic Operations

Center Department

Director Vice Chairman Huang Zhen Male √ √ Registration and Medical Financial Management

Center Department

Director Vice Chairman Dong Shaozhong Male √ √

Quality Management Center Human Resources Department

Director Jiang Runsheng Male √ √ Supply Chain Center Administrative Management Department

Employee Director Yao Wei Male √ √ Intelligent Information President Department

Director Fan Yongwu Male √ √ Legal Affairs Department

Audit and Supervision

Employee Director Yan Ting Female √ Department

Independent Director Zhao Jianmei Female √ √

Independent Director Zhu Jinyu Male √ √

Domestic International Bacterial Vaccine Recombinant

Independent Director Sun Ganghong Male √ √ Marketing BU Marketing BU BU Protein BU mRNA Vaccine BU New Business BU

Independent Director Zeng Lingbing Male √ √

Six Business Units

2122

Four Capability Platforms

Seven Functional Departments2024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Investor Rights Protection

Information Disclosure Investor Communication

Walvax Biotechnology strictly complies with the Securities The Company consistently refines internal policies such

Law of the People's Republic of China the Measures for as the Investor Relations Management System of Walvax

the Administration of Information Disclosure by Listed Biotechnology Co. Ltd. and the Investor Visit Reception

Companies the Provisions on the Registrat ion and Management System of Walvax Biotechnology Co. Ltd.Management of Insiders with Access to Insider Information and develops diverse communication channels to engage

of Listed Companies and other relevant laws regulations with investors. These channels include General Meetings of

and normative documents. The Company has established Shareholders investor site visits investor hotlines dedicated

the Information Disclosure Management System of Walvax email responses earnings briefings in-person investor

Biotechnology Co. Ltd. and its implementation rules to receptions and responding to investor inquiries via the irm.ensure that information disclosure is conducted in a truthful cninfo.com.cn platform. Through these initiatives we foster

accurate complete timely and fair manner. In 2024 the transparent and open communication with investors on

Company published a total of 124 announcements and corporate governance strategic development operational

designated Securities Times China Securities Journal performance financing plans and sustainability effectively

Shanghai Securities News Securities Daily and CNINFO as enhancing mutual interaction and trust between the Company Tax Management

its official information disclosure platforms. This ensures that and its investors. During the reporting period the Company

all shareholders have equal and timely access to company engaged with investors more than 3600 times through various Walvax Biotechnology strictly complies with the Enterprise Income Tax Law of the People's Republic of China and other relevant

information. During the reporting period there were no false channels. domestic laws and regulations as well as international tax rules. The Company has formulated the Tax Management Measures of

records misleading statements material omissions or other Walvax Biotechnology Co. Ltd. which cover tax declaration and payment tax risk management and tax document management

improper disclosures in the Company's information disclosure. The Company has established clear procedures for convening and continues to improve its tax management system and tax risk control mechanisms to ensure compliant tax reporting and

We also keep a close eye on the public sentiments and holding and conducting the General Meetings of Shareholders payment and maintain the compliance and soundness of tax administration. We are committed to responsible tax practices: we

market trading conditions to effectively protect the legitimate as well as for the voting process ensuring that investors do not shift the value we create to low-tax jurisdictions do not use tax planning structures lacking genuine commercial substance

rights and interests of investors. have the right to be informed and to participate in significant adhere to the arm's length principle in transfer pricing and refrain from using secrecy jurisdictions or "tax havens" for any form

corporate matters. We treat all shareholders equally. Small and of tax avoidance. As international business expands the Company further strengthened its tax compliance management in 2024

medium-sized shareholders may attend the General Meeting by conducting internal self-inspections and external audits optimizing tax planning and continuously enhancing its capability to

Investment Returns of Shareholders in person or vote online. For major matters address tax risks. During the reporting period Walvax Biotechnology did not encounter any significant tax compliance violations.that may impact their interests the company separately counts

and discloses their votes. The meeting agenda includes a

The Company is committed to providing shareholders with dedicated Q&A session for small and medium-sized investors

reasonable investment returns with cash dividends as a to actively voice their opinions and suggestions. The time and

key method of shareholder compensation. While adhering Digital Intelligence Transformationlocation of shareholder meetings are carefully selected to

to profit distribution principles and ensuring the Company's maximize participation and modern information technology is

stable operations and long-term growth we also enhance its leveraged to further expand shareholder engagement. When Walvax Biotechnology aims to achieve the seamless integration of informatization digitalization intelligence and networking across

investment value through measures such as share buybacks reviewing and deciding on profit distribution plans independent its business operations and management. We are accelerating the development of a data-driven digital management system and

and cancellations. Our goal is to establish a shareholder value directors diligently fulfill their duties by explicitly expressing establishing an intelligent manufacturing system with deep cross-platform and multi-system interactions. These efforts strongly

return mechanism that is long-term stable and sustainable. their consent. Relevant proposals are reviewed and approved advance the construction of Digital Walvax Intelligent Walvax and Smart Walvax. The Company has established an integrated

In 2024 the Company distributed a cash dividend of RMB by the Board of Directors and the Supervisory Board before information system encompassing marketing production and R&D. Driven by a technology-powered development strategy this

15.9935 million (tax inclusive). In the same year it also being submitted to the General Meeting of Shareholders for system enables seamless connectivity between business processes and data flows across the front-end mid-end and back-

completed the cancellation of 7.9999 million shares that had deliberation ensuring the protection of small and medium- end operations. In 2024 the Company further strengthened its IT architecture and enhanced the integration of industrialization

previously been repurchased through centralized bidding. sized shareholders' legitimate rights and interests. and digitalization across production units. We continued to refine our financial shared services ERP systems and operational

information systems driving improvements in overall business efficiency.Industrial Q Product quality process quality and EHS/ESG Quality

Upgrade sustainability

D P Efficiency of process technology equipment and A C Production facilities material inventory and human resources

Change

Management

F Effectiveness of production planning manufacturing Flexibility flexibility and workforce adaptability

B

S Speed of product development and translation and Speed responsiveness to market and service needs

"Listed Company Visit" Event by the Healthcare Committee of the China Association for Public Companies

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ra2024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Business Ethics and Anti-Corruption Walvax Biotechnology consistently enhances its business ethics governance framework which applies to all business units

functional modules and supply chain operations. This system incorporates a range of management policies operational procedures

implementation guidelines and processes. It clearly delineates responsibilities and accountability mechanisms extending

Walvax Biotechnology strictly adheres to international declarations and legal regulations including the United Nations Declaration requirements for anti-fraud anti-money laundering anti-corruption anti-bribery fair competition anti-monopoly and conflict of

Against Corruption and Bribery in International Commercial Transactions the CEPI Third-Party Code and various national laws interest to company directors all employees (including part-time staff) and all supply chain partners and collaborators. In 2024 the

such as the Criminal Law of the People's Republic of China the Company Law of the People's Republic of China the Anti- Company drafted the Walvax Biotechnology Co. Ltd. Disciplinary Measures for Violations. This document outlines that for confirmed

unfair Competition Law of the People's Republic of China the Anti-Monopoly Law of the People's Republic of China the Anti- unethical business conduct the Company will take decisive actions based on the severity of the offense. These actions may include

Money Laundering Law of the People's Republic of China the Drug Administration Law of the People's Republic of China and the job transfers position changes demotions rank reductions salary cuts or termination of employment contracts. Furthermore

Vaccine Administration Law of the People's Republic of China. The Company also complies with industry regulations including the directly responsible parties and key managers will be held accountable.Pharmaceutical Industry Compliance Management Regulations and Guidelines for Preventing Commercial Bribery in Pharmaceutical

Enterprises. Furthermore the Company upholds the ethical and compliance standards required by international partners such as the Walvax Biotechnology's Compliance and Business Ethics System

Bill & Melinda Gates Foundation (BMGF) and the Coalition for Epidemic Preparedness Innovations (CEPI). The Company remains

committed to continuously strengthening its compliance and business ethics governance framework enhancing its risk management

systems and maintaining robust internal auditing and whistleblowing mechanisms. Through stringent standards professional Walvax Biotechnology Values and Guidelines - Code of Prohibited Conduct

integrity and comprehensive management the Company safeguards its ethical business practices. During the reporting period

Walvax Biotechnology was not involved in any litigation related to corruption bribery or unfair competition. Walvax Biotechnology Co. Ltd. Code of Business Ethics

Walvax Biotechnology Co. Ltd. Employee Professional Ethics and Code of Conduct

Governance Walvax Biotechnology Co. Ltd. Implementation Rules for the Employee Code of Conduct

Walvax Biotechnology Co. Ltd. Anti-Fraud Anti-Money Laundering and Anti-Bribery Management System

Walvax Biotechnology regards compliance and business ethics as strategic issues and has incorporated them into the Board's Walvax Biotechnology Co. Ltd. Conflict of Interest Declaration System

oversight and management framework. The Board of Directors serves as the leadership and decision-making body for compliance

and business ethics management. Oversight is carried out by the Supervisory Board the Board's Audit Committee and the Audit Walvax Biotechnology Co. Ltd. Misconduct Reporting Mechanism and Handling Procedures

and Inspection Department with dedicated personnel ensuring full coverage. The CEO holds primary responsibility for implementing Walvax Biotechnology Co. Ltd. Whistleblower Protection Policy

business ethics and anti-corruption management overseeing risk assessments advancing key initiatives and driving continuous

improvements thereby strengthening the foundation for the Company's high-quality development. The Company integrates Walvax Biotechnology Co. Ltd. Disciplinary Measures for Violations

compliance and business ethics management assessments into its performance evaluation system. The evaluation scope Walvax Biotechnology Co. Ltd. Supplier Code of Conduct

encompasses the performance of directors supervisors senior management and risk management personnel as well as the risk

management effectiveness of business departments subsidiaries and overseas entities. Walvax Biotechnology Co. Ltd. Anti-Commercial Bribery Agreement (covering all employees and suppliers)

Compliance and Business Ethics Leadership Body

Strategy and Tactics

Board of Directors

As the core leadership body the Board of Directors oversees and drives management in developing and enhancing the Walvax Biotechnology maintains a "zero-tolerance" policy toward business ethics violations. The Company strictly adheres to its

Company's business ethics anti-corruption management systems internal controls and compliance culture. It is also code of business ethics formulates strategic plans and improvement initiatives for corporate compliance and ethics management

responsible for reviewing major compliance and business ethics matters including decisions on handling violations and and aligns with standards such as the ISO 37001 Anti-Bribery Management System. It continuously strengthens its compliance and

holds ultimate accountability for the effectiveness of management. ethics culture enhances control procedures and mechanisms monitors and optimizes the effectiveness of its management systems

and extends these requirements to the supply chain thereby building a comprehensive compliance and business ethics defense

Compliance and Business Ethics Oversight Bodies system.Supervisory Board Audit Committee of the Board of Directors and Audit and Inspection Department Business Ethics Training and Promotion

The Oversight Bodies actively align with the latest national and industry policies on compliance and business ethics. They

are responsible for providing management recommendations supervising policy implementation evaluating compliance and Walvax Biotechnology has institutionalized the development of a business ethics and anti-corruption culture. Through the

business ethics risks and managing daily whistleblowing operations. These efforts enhance the monitoring and enforcement establishment of Walvax Biotechnology Values and Guidelines - Code of Prohibited Conduct and Walvax Biotechnology Co. Ltd.of business ethics across the Company. The Audit and Inspection Department operates as an independent entity within the Employee Professional Ethics and Code of Conduct the Company clearly defines the business ethics standards that employees

Company responsible for overseeing routine audit and compliance activities. All staff in this department are dedicated full-

time professionals who do not engage directly in production or business operations. The department reports directly to the must follow. All employees are required to sign the Walvax Biotechnology Values and Guidelines Commitment Letter. Employees'

Audit Committee under the Board of Directors maintaining independence at the organizational operational and individual adherence to company values and their performance in professional ethics and conduct serve as crucial criteria for their

levels. This ensures that audit results remain impartial objective and accurate providing a fair reflection of the Company's performance evaluation promotion appointment and dismissal decisions.operational processes.Compliance and Business Ethics Implementation Bodies Average anti-corruption with Average anti-corruption with

training hours per director: training hours per employee:

Compliance Office; Functional Departments Business Units and Controlled Subsidiaries

The Compliance Office implements a comprehensive compliance management framework across eight key areas: anti- hours 100% hours 100%

bribery antitrust financial and tax compliance product marketing centralized procurement environmental health and 8 director coverage 8 employee coverage

safety adverse reaction reporting data protection and cybersecurity. This framework ensures full compliance coverage

across internal operations and throughout all stages of the supply chain and value chain.Note: These figures represent specialized training hours. The Company also conducts ongoing promotional activities and integrates anti-corruption

requirements into daily training to ensure comprehensive implementation.

25 262024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Walvax Biotechnology consistently organizes and conducts comprehensive business ethics and anti-corruption initiatives including Supply Chain Integrity Management Whistleblowing and Whistleblower Protection

promotional activities awareness campaigns and training sessions. These encompass a wide range of programs such as anti-

corruption training for directors compliance training for new employees integrity and compliance training for functional personnel The Company has implemented the Walvax Biotechnology Walvax Biotechnology maintains an uncompromising zero-

specialized compliance and business ethics training for auditors and targeted training for suppliers. The Company ensures Co. Ltd. Supplier Code of Conduct that clearly delineates tolerance stance towards corruption and unethical business

that Board members Supervisory Board members and senior management are promptly updated on the latest domestic and requirements for business ethics anti-corruption and anti- practices. The Company has formulated and rigorously

international anti-fraud anti-corruption anti-bribery and business ethics policies case analyses and the Company's implementation fraud practices. This code applies to all suppliers ensuring implements the Walvax Biotechnology Co. Ltd. Misconduct

status thereby equipping them to effectively address business ethics risks. All employees including part-time staff are required to 100% coverage. Suppliers are mandated to comply with Reporting Mechanism and Handling Procedures. This policy

participate in business ethics training at least once annually. The effectiveness of this training is verified through various assessment national and local laws regulations policies and industry actively encourages all stakeholders including employees

methods. In 2024 Walvax Biotechnology achieved 100% coverage of anti-corruption and business ethics training for Board standards and are explicitly prohibited from engaging in customers suppliers contractors business partners and any

members all employees (including part-time staff) key partners and critical suppliers through a multi-faceted approach including or tolerating any form of corruption fraud extortion or individuals with business relationships with the Company to

offline training online learning special lectures email communications and examinations. embezzlement. Furthermore the Company has established report actual or suspected business ethics violations. To facilitate

robust centralized procurement management measures reporting the Company offers multiple accessible channels

and process mechanisms. Internally potential conflicts of including complaint hotlines text messages WeChat email

interest are rigorously checked against procurement process and traditional mail. The Audit and Inspection Department is

regulations. Externally all suppliers and partners are required responsible for handling complaints and reports of employee

The Company provides all directors with at least one annual session on business ethics anti- to sign an Anti-Commercial Bribery Agreement and include misconduct conducting thorough investigations of disciplinary

Director corruption and risk management training. Directors are encouraged and supported to participate explicit business ethics standards and compliance clauses in cases and reporting findings directly to the President's Office

Business in courses and lectures organized by professional institutions to enhance their expertise and their contracts. This approach ensures that the Company's and the Board of Directors. In cases where violations of laws

Ethics compliance awareness. In September 2024 the Company organized a specialized training business ethics and anti-corruption policies have substantive or disciplinary regulations are confirmed the Company takes

Training session on anti-bribery and compliance risk identification and prevention for publicly listed binding force on the entire supply chain. appropriate action based on the severity of the situation.companies attended by all members of the Board of Directors. These actions may include job transfers position changes

Suppliers are expected to operate in strict compliance with all demotions rank reductions salary cuts termination of

applicable laws and regulations demonstrating their ability employment contracts and referral for judicial processing. As an

to address various business ethics risks. The Company additional measure to promote integrity the Company maintains

The Company employs diverse methods to promote business ethics and anti-corruption policies conducts annual assessments of suppliers' performance comprehensive employee integrity files. These files record any

and procedures including employee handbooks regulation issuances promotional materials in anti-corruption and other business ethics areas. These violations of laws regulations and company rules. Importantly

and online platforms. Aperiodic anti-corruption training activities are organized to enhance assessments strengthen the supervision and control of employees with records in these integrity files are ineligible for

compliance awareness and capabilities across the workforce. In 2024 a company-wide training business ethics issues in supplier cooperation processes employment or promotion to key positions within the Company.session on business ethics was conducted through a combination of online and offline channels. across all business departments. In 2024 the Company

provided comprehensive training on business conduct Walvax Biotechnology Reporting Channels

compliance requirements to its suppliers. This training covered and Contact Information

Employee critical topics such as anti-corruption laws and regulations

Business identification and prevention of corrupt practices internal Audit and Inspection Department 395 Kexin Road

Ethics control mechanisms compliance processes and reporting High-tech Zone Kunming Yunnan Province China

Training channels. During the reporting period Walvax Biotechnology's

procurement activities were free from any litigation cases +86 871-68312586

related to corruption or unfair competition.ynwsia@walvax.com

Anti-bribery and compliance risk identification Anti-Unfair Competition

and prevention training for publicly listed Training on commercial bribery risks and

companies responses in listed companies Walvax Biotechnology demonstrates strict adherence to the The Company has implemented the Walvax Biotechnology

Law of the People's Republic of China for Countering Unfair Co. Ltd. Whistleblower Protection Policy to safeguard

Competition Several Provisions on Prohibiting Infringements whistleblowers and witnesses. We are committed to maintaining

upon Trade Secrets and relevant anti-monopoly and fair strict confidentiality throughout the reporting and investigation

competition laws and regulations in all countries and regions process. This includes protecting personal information such

During procurement bidding processes Walvax Biotechnology actively promotes anti-fraud and where it operates. The Company is firmly committed to as names work units contact details and home addresses

Supplier anti-bribery principles. The Company emphasizes its business ethics policies during supplier ethical business practices pledging not to illegally collect of whistleblowers as well as the content of reports and their

Business interviews building a dual line of defense—both internal and external—for compliance and competitors' trade secrets or other confidential information. handling status at all stages of acceptance registration storage

Ethics ethical conduct. Together with our partners we are working to establish a clean and efficient Furthermore it refrains from engaging in illegal activities such and investigation. Reported leads and materials are handled by

Training supply chain. In 2024 a remote training session titled "Walvax Biotechnology Code of Business as price-fixing with industry peers that could disrupt market designated personnel and managed under strict confidentiality

Conduct Requirements" was delivered for suppliers. Additionally five on-site anti-fraud and anti- order. The Company's compliance and business ethics protocols. Access to this information is prohibited without explicit

bribery awareness sessions were conducted during procurement and bidding supervision. training system incorporates comprehensive content related to approval from the President or Chairman of the Board. While

anti-unfair competition. Compliance supervision departments ensuring whistleblower confidentiality we take a zero-tolerance

regularly conduct thorough anti-unfair competition reviews to approach to retaliatory actions. Personnel violating confidentiality

maintain a market environment of fair competition. In 2024 regulations or engaging in retaliation against whistleblowers face

Walvax Biotechnology was not involved in any violations of accountability based on the severity of their actions with severe

fair competition or anti-monopoly laws and regulations. consequences for those implementing such retaliation. This

approach ensures maximum protection for whistleblowers and

complainants. For verified reports that significantly contribute to

safeguarding the Company's interests both moral and material

rewards are provided to whistleblowers who actively provide

leads and assist in case investigations.

27 282024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Impact Risk and Opportunity Management

Walvax Biotechnology adheres to industry standards such as the Compliance Guidelines for Healthcare Companies to Prevent Supply Chain Business Ethics Audit

Commercial Bribery Risks. The Company strengthens its compliance and business ethics management system through annual risk

assessments. This process includes identifying and evaluating compliance and business ethics risks implementing corresponding

measures and conducting thorough reviews and audits of the internal control system's effectiveness and compliance. Findings are Walvax Biotechnology has implemented stringent supplier qualification requirements and conducts comprehensive audits of supply

reported directly to top management or the Audit Committee detailing relevant risks violations and countermeasures. chain partners' adherence to the code of conduct with a focus on business ethics and anti-corruption practices. When deemed

necessary the Company performs due diligence project audits and compliance checks on partners involved in collaborative

projects. Due diligence methodologies include but are not limited to public information verification questionnaire distribution on-

Compliance and Business Ethics site inspections and engagement of specialized investigation agencies. Walvax Biotechnology employs a combination of these

Risks Response Strategies methods for routine or high-risk due diligence tailored to specific business needs ensuring constant monitoring and control of

supply chain compliance and business ethics risks. The Company enforces a "zero-tolerance" policy towards supplier corruption

● Academic visit and ● Refine the business ethics risk identification and assessment mechanism conducting implementing a "one-strike" rule and strict procurement prohibitions. Suppliers found in severe violation are blacklisted and subject

exchange risks regular risk assessments across various business scenarios and updating the business to penalties in accordance with company policies thereby preventing improper illegal and fraudulent activities. During the reporting

ethics risk inventory. period integrity due diligence assessments based on compliance and business ethics standards were conducted on 78 suppliers.● Business reception risks These assessments revealed no high-risk behaviors warranting special attention or expanded audit scope.● Enhance employee compliance awareness and capacity to address commercial bribery

● Consulting service risks risks through intensified compliance and business ethics training robust whistleblowing

● Outsourcing service risks mechanisms and proactive communication with regulatory authorities.● Discount rebate and ● Develop and refine compliance review mechanisms to prevent commercial bribery risks

commission risks ensuring that compliance management bodies independently exercise review authority Indicators and Targets

and actively manage potential business ethics risks in operations.● Donation sponsorship and

funding risks ● Implement a monitoring mechanism for the compliance and business ethics

management system conducting regular evaluations of its effectiveness promptly

● Clinical research risks Indicator Target 2024 Achievement Statusimplementing improvement measures and adjusting management strategies to ensure

● Retail terminal sales risks the adaptability and effectiveness of the compliance and business ethics management Major corruption incidents Zero occurrence of major corruption incidents

system.Walvax Biotechnology Values and Guidelines

Commitment Letter signing rate 100% signing rate

Business ethics audit Ensure comprehensive coverage of all company operations every three years Target achieved

Corporate Business Ethics Audit Business ethics and anti-corruption training

coverage 100% coverage

Walvax Biotechnology maintains a rigorous approach to business ethics audits across all operational areas. The Audit and Effective report resolution rate 100% resolution rate for valid reports

Inspection Department annually develops targeted audit plans to assess the implementation of business ethics policies and evaluate

associated risks in various operational scenarios. To enhance the effectiveness of business ethics and anti-corruption audits the

Company has established the Walvax Biotechnology Co. Ltd. Internal Audit Quality Assessment Manual aligning with industry

standards such as the Professional Ethics Standards for Internal Auditors and the Internal Audit Quality Assessment Measures

(Trial). During the reporting period the Audit and Inspection Department completed 11 compliance and business ethics inspections

alongside 29 special audits. Each business unit was required to formulate and execute corrective measures in response to audit

recommendations. The Company ensures comprehensive coverage of all business areas through business ethics-related audits

conducted on a three-year cycle aimed at assessing and improving the efficacy of business ethics management practices. At the

close of 2024 an independent professional accounting firm was engaged to audit the Company's internal controls encompassing

aspects of business ethics anti-bribery measures fraud prevention and complaint reporting mechanisms.The Audit and Inspection Department leverages audit findings to formulate ongoing improvement strategies. It conducts regular

follow-ups on the implementation of corrective actions and reports progress and outcomes to the Audit Committee and Board

of Directors. This process ensures the robustness of the Company's business ethics anti-corruption policies and compliance

systems effectively mitigating business ethics risks. For matters involving misconduct reporting fraud money laundering bribery

and conflicts of interest across internal departments subsidiaries and significantly influenced associated companies the Audit and

Inspection Department adheres to the Company's established policies and procedures. These include the Walvax Biotechnology

Co. Ltd. Misconduct Reporting Mechanism and Handling Procedures Walvax Biotechnology Co. Ltd. Anti-Fraud Anti-Money

Laundering and Anti-Bribery Management System and Walvax Biotechnology Co. Ltd. Conflict of Interest Declaration System.

29 302024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Information Security and Privacy Protection Strategy and Tactics

Walvax Biotechnology recognizes the critical importance of information assets. Aligning with international standards such as ISO

Governance 27001 Information Security Management System and ISO 27701 Privacy Information Management System the Company has established a comprehensive information and data security framework in accordance with Multi-Level Protection Scheme (MLPS)

Level 3 standards. This framework encompasses management technological and operational aspects. At the management level

Walvax Biotechnology rigorously adheres to a comprehensive set of laws and regulations including the Cybersecurity Law of the Company has implemented a suite of information security policies and procedures including the Information Security Management

the People's Republic of China Data Security Law of the People's Republic of China Personal Information Protection Law of Measures Information Security and Privacy Protection Policy and Information System Emergency Response Plan. In addition the

the People's Republic of China and the World Health Organization (WHO) Guideline on Data Integrity: Guidance on Good Data Company has enhanced off-site disaster recovery protocols implemented personnel and material classification management and

and Record Management Practices. To ensure compliance and best practices the Company has developed and implemented established data export compliance self-assessment and reporting mechanisms. Employee behavior is strictly regulated to minimize

several internal policies such as the Walvax Biotechnology Co. Ltd. Information Security and Privacy Protection Policy Walvax the likelihood of information security risks. At the technical level a multi-faceted approach to security measures has been deployed

Biotechnology Co. Ltd. Information Security Management Measures and Walvax Biotechnology Co. Ltd. Personal Information and which includes network isolation transmission encryption tracking and early warning mechanisms and antivirus measures. This

Privacy Protection Management Measures. These policies address multiple facets of information security including data security results in a comprehensive multi-layered security protection network designed to safeguard information and data assets. At the

personal device security application security data integration security and IT infrastructure security. By embedding information operational level the Company has intensified information and data security training and awareness programs while conducting

security and privacy protection requirements into business processes the Company ensures comprehensive management of data regular audits to enhance overall information security standards.protection and information security across all operational areas. In 2024 it undertook a thorough revision of its information security

system culminating in the draft of Walvax Biotechnology Co. Ltd. Personal Information and Privacy Protection Management Information Access Control Data Export Control

Measures. This document establishes standards for information collection and processing sensitive information handling cross-

border data transmission and processor obligations.The Company promotes classification and hierarchical In strict compliance with legal requirements including the

Walvax Biotechnology improves its information security organizational structure by establishing an Information Security Management management of personnel and information assets. For Regulations on Promoting and Regulating the Cross-border

Committee directly led by the Chairman. This committee is tasked with core information security management responsibilities different categories and levels of classification differentiated Data Flow Measures for Security Assessment of Data Exports

including approving security measures making decisions on security policies supervising security practices and handling major protection measures are applied in accordance with relevant and Measures for Standard Contracts for Cross-border

information security incidents. The committee comprises senior management with general managers from each subsidiary serving management protocols. Following the principle of least Transfer of Personal Information the Company implemented

as committee members. In addition the Company has incorporated the information security reward and penalty mechanism into its privilege data access permissions are strictly controlled to a rigorous data export compliance self-assessment and

business management system. For comprehensive details on the Company's information security and privacy protection principles prevent unauthorized access to sensitive information. Key reporting process. We have instituted measures such as

management structure policies and protection systems please refer to the Walvax Biotechnology Co. Ltd. Information Security core systems are equipped with audit mechanisms that requiring employees to carry computers with no data when

and Privacy Protection Policy. ensure all operations are logged and traceable. In addition traveling internationally. Our approach includes strengthened

log audit systems and operation & maintenance audit systems preventive controls against cross-border data transmission

are in place to monitor and record access activities by security risks particularly those involving national security

Information Security Management Committee maintenance personnel in IT systems. concerns thus comprehensively safeguarding against data

export security risks.Establish strategic direction and key decisions for information security.Data Loss and Alteration Prevention Enhanced Technical Protection

Approve information security management policies procedures and objectives.Define information security standards and protocols for major security incidents. The Company has established the Walvax Biotechnology The Company has significantly upgraded our Green Shield

Monitor implementation of information security policies and evaluate the effectiveness of security management. Co. Ltd. Backup and Recovery Management Measures protection system fully transitioned to company-wide cloud

which outlines detailed requirements and procedures for data document usage and provided secure VPN accounts for

backup extraction and usage. Our application systems are all personnel. Comprehensive encryption and decryption

Information Security Management Office Audit and Inspection Department deployed locally and privately with regular full local backups management is rigorously applied to server and terminal data

of both systems and their generated data. To ensure business effectively mitigating risks of data theft or tampering during

Develop comprehensive information security and privacy Monitor and audit information security risks continuity we maintain two geographically dispersed data transmission. Over the past year we enhanced our technical

protection framework aligning with compliance requirements and (integrated into annual internal control centers in Kunming and Yuxi providing cross-city disaster protection measures 1410 times and successfully defended

business needs. Standardize operational mechanisms across all supervision and evaluation processes). recovery capabilities. This infrastructure ensures rapid data against 56592 network attacks ensuring secure data

organizational levels to ensure seamless functioning of security restoration in the event of loss or damage. Our backup transmission between terminals and servers. We keep refining

and privacy management systems. system incorporates deletion protection features to safeguard our audit tracking and early warning mechanisms employing

Conduct risk assessments and implement improvements for against accidental data deletion or modification. Additionally real-time monitoring of data access modification and deletion

information security and privacy protection. Ensure ongoing and we have implemented comprehensive emergency response to swiftly detect and address potential security vulnerabilities

effective operation of the security maintenance system. Report and recovery testing protocols to minimize potential losses. thereby bolstering our overall information security posture.directly to the Information Security Management Committee. Information Security Training and Advocacy

Functional Departments Business Units and Controlled Subsidiaries

The Company implements a comprehensive information security training program for all employees. These sessions are customized

to address the specific requirements of various roles ensuring that personnel are well-versed in the information security risks and

Ensure adherence to company-wide information security requirements. Implement information security and privacy protocols relevant to their positions. In 2024 the Company organized a total of four dedicated information security training sessions

protection measures at operational levels. covering topics such as international data export regulations and company-wide awareness of information security and privacy

Promptly report identified information security and privacy protection risks. Collaborate with management to enhance protection. These sessions achieved 100% coverage of employees across Walvax Biotechnology its subsidiaries and controlled

protective capabilities. affiliates. Information security has been integrated into the new employee orientation process. Furthermore the Company published

12 issues of information security bulletins to promote knowledge and raise awareness enhancing the entire workforce's capability to

identify and mitigate data security risks.

31 322024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Information Security Emergency Management Impact Risk and Opportunity Management

The Company has updated critical documents including the Walvax Biotechnology Co. Ltd. Emergency Plan Management Walvax Biotechnology has implemented a comprehensive information security risk assessment process. This holistic process

Measures and Walvax Biotechnology Co. Ltd. Information Security Incident Reporting and Handling Management System. Ongoing includes risk identification vulnerability identification risk evaluation and analysis risk treatment residual risk management and

improvements are being made to information security emergency plans and data breach response protocols. Regular cybersecurity risk control. By quantifying risk levels the Company can more accurately assess high-risk areas in information security and privacy

drills and recovery tests are conducted to reinforce emergency response mechanisms and procedures ensuring prompt and protection enabling the development of targeted countermeasures to ensure robust protection of corporate information and data.effective protection of the Company's information assets. In 2024 Walvax Biotechnology performed comprehensive data and The information security risk assessment team is composed of personnel from the Company's Intelligent Information Department

application recovery simulations for essential systems such as ERP OA and e-HR bolstering the resilience of data and system and relevant specialists. They employ a diverse range of assessment methods including questionnaires interviews automated

security. scanning tools manual inspections document reviews and penetration testing. This multi-faceted approach ensures a thorough

and professional evaluation. The Company conducts risk assessments at least once annually with additional updates prompted by

changes in information systems business operations or information security incidents. This practice ensures that the Company's

External Personnel Information Security Management information security risk management remains timely and effective.The Company has developed the Walvax Biotechnology Co. Ltd. External Personnel Access Information Security Management Information Security and Privacy Protection

Measures which delineates robust security protocols for external individuals accessing company information systems and physical Risk Analysis Response Strategies

resources. This document encompasses the definition and categorization of external personnel information access security

procedures server room access control measures and account and access permission management guidelines all designed to ● Policy risks (potential legal liabilities or ● Refine information security and privacy protection risk identification and

safeguard the Company's confidential information and technological assets. reputational damage resulting from non- assessment mechanisms maintaining an up-to-date risk inventory.compliance with relevant regulations) ● Align with the latest domestic and international information security and

Personal Information and Privacy Protection ● Technical risks (issues such as hardware/ privacy protection legal requirements establishing a comprehensive

software failures system vulnerabilities protection system across organizational managerial technical and

malicious code and viruses and cross- operational domains.While Walvax Biotechnology's core business of vaccine production involves minimal direct interaction with end-users and their border data flow challenges) ● Conduct regular proactive vulnerability assessments on business

personal data the Company has proactively established the Walvax Biotechnology Co. Ltd. Personal Information and Privacy ● Human risks (encompasses both accidental systems ensuring that each newly discovered high-risk issue is

Protection Management Measures. This framework creates a sophisticated privacy data management system that addresses errors and deliberate actions including addressed with appropriate active defense strategies thereby

various data categories. Through stringent access controls and enhanced data governance the Company ensures transparency in unauthorized access or misuse of systems) enhancing overall system resilience.the collection and utilization of product and service-related data. This approach reinforces stakeholders' rights to information choice

●●

and control over their personal data. Management and operational risks (includes Perform periodic audits of the information security management system

insufficient security policies organizational evaluating and improving risk control measures to actively manage

security management deficiencies and lack information security and privacy protection risks in business operations.Clinical Research Data Security and Privacy Protection of personnel security awareness)

Walvax Biotechnology strictly complies with the Provisions for Drug Registration the Declaration of Helsinki the

Personal Information Protection Law of the People's Republic of China and other relevant laws regulations and Walvax Biotechnology conducts regular internal and external information security audits including annual information security risk

guiding principles. All clinical trials are conducted by qualified research institutions and their affiliated trial sites. audits. These audits focus on five key areas: user access management system development system changes logical access and

Therefore during the clinical trial process the Company does not directly access or collect personal information of trial other general controls. The process involves reviewing historical risks and the status of their resolution identifying current risks and

participants; instead it uses subject data that has been encoded or de-identified. A series of measures have also been proposing avoidance and mitigation strategies. Additionally the Company engages independent third-party institutions annually to

implemented to safeguard the security of clinical trial data: audit its information systems and security policies. This external scrutiny enables comprehensive risk identification and assessment.Based on the audit findings the Company actively implements improvements and enhancements to strengthen its information data

During the clinical trial design phase the scope purpose and access permissions for data collection protection system.are clearly defined based on established Standard Operating Procedures (SOPs) ensuring that only

information directly relevant to the trial objectives is collected and unnecessary data is minimized.Informed consent forms are written in user-friendly language and clearly explain the type of information

to be collected how it will be used and the data protection measures in place ensuring participants

voluntarily join the study with full awareness. Anonymization and other technical safeguards are

employed to ensure the confidentiality of research data and protect the personal privacy of participants. Indicators and Targets

The Company has established sound regulations for the evaluation and management of electronic data

capture (EDC) system providers. Clinical trial data collection management and storage are conducted

using systems that meet national regulatory requirements and relevant industry standards in terms of

security and reliability. All clinical trial materials are managed exclusively by authorized personnel at trial Indicator Target 2024 Achievement Status

sites and securely stored in designated archives or cabinets. During data transmission and processing

validated encryption technologies and security measures are employed to rigorously prevent any risk of Information security training

coverage 100% coverage Target achieved

participant privacy breaches.Prevent the occurrence of major Zero incidents of major information security breaches in 2024 Target achieved

Before initiating any clinical trial confidentiality agreements and/or technical service contracts are signed information security risks

with all collaborating parties clearly defining confidentiality obligations and requirements. Throughout all

clinical trial projects no incidents of participant privacy breaches have occurred.

33 34Innovation-

Driven Health

Empowerment

Annual R&D investment:

RMB 700.4222 million

Annual vaccine batch release:

24.6392 million

doses with a 100% delivery rate

Annual product recall rate:

0%2024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Advancing Innovative Vaccine Development Establishing High-Level Research Platforms

Enhancing the Vaccine Innovation Pipeline

New quality productive forces are the driving force behind continuous innovation and organizational adaptability. Walvax In 2024 the Company embraced a transformative approach

Biotechnology guided by the principle that "life is priceless and technology is limitless" has progressively built a high-level open implementing a new business management structure centered on

scientific innovation ecosystem. This system has evolved through independent development strategic acquisitions and deep business units (BUs) supported by capability platforms and functional

integration of industry-academia-research collaborations. The Company has developed multiple pipelines of innovative vaccine departments. This restructuring aims to create a dynamic operational

products positioning innovation and synergistic collaboration across industry academia and research institutions as the core National Technology Innovation system that prioritizes customer needs and market demands. We

engines of corporate growth. By cultivating new quality productive forces the Company aims to contribute significantly to building a Demonstration Enterprise established four key innovative operational units: the Bacterial

global immune barrier. National Innovative-Oriented Vaccine BU Recombinant Protein BU mRNA Vaccine BU and

Pilot Enterprise New Business BU. Each unit is tasked with developing a suite of

vaccines in their respective fields leveraging cutting-edge scientific

National Enterprise Technology research platforms. This structure enables deeper insights into market

Governance Center demands and competitive landscapes facilitating more targeted

National High-Tech Enterprise product development and iteration strategies ultimately leading to

more diverse and strategically aligned vaccine R&D pipelines.To effectively implement its innovation strategy the Company has established a scientific and efficient R&D project decision-making Walvax Biotechnology remains committed to advancing innovative

and management system. The Board of Directors oversees innovation strategy decisions ensuring alignment with overall corporate Yunnan Vaccine Laboratory biological products addressing antimicrobial resistance and

objectives. A Scientific Committee has been formed to evaluate and approve projects. The Company operates through four business Yunnan Biological Vaccine researching vaccines for major infectious diseases. Our focus on

units: Bacterial Vaccine BU Recombinant Protein BU mRNA Vaccine BU and New Business BU. These units are efficiently Technology Innovation Center optimizing the vaccine innovation landscape is twofold. Firstly we

supported by key capability centers including the R&D and Transformation Center Registration and Medical Center and Quality

Yunnan Province High-Tech are enhancing our currently marketed products by developing higher-Management Center. This structure enables each business unit to manage the entire process from R&D to commercialization

ensuring efficiency quality and accelerated technology advancement product integration and iteration. Leading Enterprise

valent versions of pneumococcal polysaccharide conjugate vaccines

meningococcal vaccines and HPV vaccines while expanding their

Yunnan Province Manufacturing indicated populations. Secondly we are accelerating the R&D of

The Company has established comprehensive R&D project management practices in compliance with relevant domestic and Innovation Center groundbreaking vaccines with a particular emphasis on respiratory

international laws regulations technical guidelines industry standards and international benchmarks. These include the Drug syncytial virus vaccines shingles vaccines and mRNA COVID-19-

Administration Law of the People's Republic of China Vaccine Administration Law of the People's Republic of China and Provisions influenza combination vaccines. Concurrently we are leveraging

for Drug Registration. The management system covers the entire spectrum of scientific research from project initiation and planning Shanghai Zerun was recognized as a our marketed vaccine products and vaccine candidates in clinical

to change management execution monitoring results management and reward mechanisms. In 2024 the Company introduced development to expedite the development of combination vaccines for

exploratory project management measures to balance risk control and resource allocation while fostering efficiency and innovation Shanghai High-Tech Enterprise infants and young children aiming to provide superior more efficient

in research projects. Additionally the Company has implemented the Walvax Biotechnology Co. Ltd. Scientific Research Project Shanghai Science and Technology vaccine solutions for global public health.Funding Management Measures and Walvax Biotechnology Co. Ltd. R&D Project Investment Funding Management Measures to Little Giant (Cultivation) Enterprise

ensure compliance transparency and efficiency in R&D fund utilization.Shanghai Specialized Refined Bacterial Vaccine BU

Differentiated and Innovative The Bacterial Vaccine BU boasts state-of-the-art polysaccharide

(SRDI) Enterprise technology platforms carrier protein technology platforms and

Shanghai Enterprise Technology polysaccharide-protein conjugation technology systems. To date Scientific Committee

Center we have successfully developed and launched seven bacterial

vaccine products. These include the 13-valent pneumococcal

Bacterial Vaccine BU Recombinant Protein BU mRNA Vaccine BU New Business BU conjugate vaccine 23-valent pneumococcal polysaccharide vaccine

Haemophilus influenzae type b conjugate vaccine Group A and C

meningococcal conjugate vaccine Group ACYW135 meningococcal

R&D and Transformation Center Registration and Medical Center Top 10 po lysacchar ide vacc ine Group A and C men ingococca l Most Innovative Non-Quality Management Center Supply Chain Center polysaccharide vaccine and diphtheria tetanus and acellular

Public Enterprises in Yunnan Province 2024 pertussis combined vaccine (adsorbed). This comprehensive

portfolio addresses the prevention of multiple pathogens including

pneumococcus meningococcus and pertussis.Strategy and Approach The main clinical work for the full immunization phase

Recipient of of clinical trials for the Group ACYW135 meningococcal

polysaccharide conjugate vaccine was completed in 2024.Walvax Biotechnology employs a dual-driven strategy focusing on technology and market dynamics. The Company consistently 6 provincial-level scientific and maintains substantial R&D investments in new products and projects fostering industry-leading scientific innovation capabilities. We The Drug Clinical Trial Approval for the adsorbed tetanus

actively pursue a technology innovation system that is enterprise-driven market-oriented and deeply integrates industry academia technological innovation awards vaccine was received in November 2024.and research institutions. Our multifaceted approach balances in-house research collaborative development and strategic license-

in prioritizing the development of vaccines with high medical and social value that address urgent market needs. Our goal is The clinical trial application for the 20-valent pneumococcal

to cultivate an innovative product pipeline with significant technological and clinical advantages thereby nurturing new-quality polysaccharide conjugate vaccine was accepted on

productivity through both technological and institutional innovations to strengthen global health defenses. January 20 2025.

37 382024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Building a Dynamic Talent Ecosystem

Scientific research talent development is the cornerstone of technological innovation. Walvax Biotechnology continuously refines

its talent selection criteria recruiting outstanding R&D professionals who embody the Company's values demonstrate excellent

Recombinant Protein BU mRNA Vaccine BU qualities possess robust technical expertise and show high potential. The Company strengthens its innovation teams through

various approaches including full-time recruitment and flexible hiring models. It has also enhanced its management mechanisms

The Recombinant Protein BU has developed advanced The mRNA Vaccine BU has swiftly established an mRNA to foster the growth of scientific research talent. The Company intensifies efforts to attract and nurture high-caliber scientific and

technology platforms including Virus-Like Particle (VLP) technology platform through collaborative R&D. It has technological professionals regularly conducts on-the-job qualification and skills training encourages participation in external

preparation recombinant protein expression novel adjuvant successfully overcome key technical challenges in mRNA exchange programs and promotes the development of multidisciplinary researchers. Furthermore the Company has implemented

evaluation and innovative vaccine technology systems. design optimization in vivo delivery thermal stability large- long-term incentive plans for core talent to unleash the full potential of its scientific and technological workforce. With over two

This BU has independently developed and manufactured scale production and analytical evaluation. A comprehensive decades of development we have cultivated a talent pipeline of management and technical professionals who possess global

Walrinvax a bivalent human papillomavirus (HPV) vaccine system for R&D clinical trials and industrialization has been perspectives and deep expertise achieving a comprehensive talent ecosystem across the entire vaccine industry chain. In addition

which contributes significantly to accelerating the global implemented to rapidly introduce innovative vaccine products the Company has appointed several seasoned experts from the vaccine industry as consultants providing strong support for

cervical cancer elimination action plan. that meet market demands. ensuring the proper direction technical standards progress and quality of its vaccine R&D.In August 2024 Walrinvax received WHO Prequalification The collaboratively developed novel coronavirus variant

(WHO-PQ). Subsequently in October 2024 it obtained the mRNA vaccine (Omicron XBB.1.5) (code: RQ3033) branded

Product Marketing Authorization Certificate from Indonesia's as Walancorna is China's first COVID-19 mRNA vaccine Bachelor's Doctorate Above 40 Below 30

National Agency of Drug and Food Control (BPOM). These targeting XBB and other variants approved for emergency Degree 12 years years

milestones qualify the vaccine for procurement by UNICEF use. This approval is based on complete Phase III safety

and other UN agencies facilitating its entry into additional and efficacy data obtained through immunogenicity bridging 76 32 46

countries and regions thereby expanding its global reach clinical trials. Through the development and industrialization Education Age Total R&D

to benefit a broader population. Concurrently the Phase of COVID-19 vaccines Walvax Biotechnology has established Background DistributionPersonnel Master's 30–40

III clinical trial of the nonavalent HPV vaccine continues to an independent and controllable mRNA technology platform Degree years

progress bolstered by substantial support from international and R&D capability. In 2024 the Company worked with

organizations such as BMGF and PATH. its partners to advance the iterative upgrade of the novel 172 70 94

coronavirus variant mRNA vaccine and pursue its marketing

application in China and Indonesia.Fostering Synergy through Industry-Academia-Research-Application Collaboration

The Company actively participates

The Yunnan Vaccine Laboratory stands as a flagship project global perspective. It aspires to become a national center of i n indus t ry academic exchange

exemplifying Yunnan Province's commitment to innovation- excellence for vaccine R&D and industrialization technology events including the China Biological

driven development strategies and the pursuit of high-level innovation a wellspring of cutting-edge technology a catalyst Products Annual Conference (CBioPC)

scientific and technological self-reliance. Spearheaded by for translating research into practical applications a driver for China Vaccine Conference Vaccine

Walvax Biotechnology in partnership with relevant universities industrial development a magnet for high-caliber talent and Innovation Forum World National

disease control centers and enterprises in Yunnan Province an incubator for nurturing core professionals. The ultimate Nucleic Acid Vaccine Conference

this initiative represents a significant step towards advancing goal is to cultivate an industrial cluster of significant national and Internat ional Papi l lomavirus

frontier technologies in vaccine industry R&D. It aims to break importance. Conference. It remains closely attuned

through core technological barriers and establish high-end to and shares the latest global trends in

vaccine R&D platforms and public service infrastructure for In addition Walvax Biotechnology proactively combines vaccine development.the biopharmaceutical sector. The laboratory integrates the technological expertise from domestic and international Researcher Dong Shaozhong introduces mRNA platform technology.entire vaccine industry chain encompassing basic research enterprises universities and disease control centers to create

applied research clinical trials technology transformation a comprehensive innovation ecosystem. We collaborate with

industrial scaling-up and research in health economics. This prestigious institutions such as Tsinghua University Fudan

collaborative effort aims to drive high-quality development University Shanghai RNACure Biopharma Co. Ltd. and

within Yunnan's vaccine industry while extending its impact to Guangzhou Laboratory in groundbreaking vaccine technology

Southeast Asian Belt and Road Initiative (BRI) countries and R&D. Our research scope extends to broader fields and

other participating nations. cutting-edge technologies in vaccine development pioneering

new frontiers in innovative vaccines. Furthermore we

In December 2024 the laboratory successfully completed its maintain strategic partnerships with renowned international

preparatory phase assessment. Following official approval organizations including the Gates Foundation (GF) Coalition

procedures it has been formally inaugurated as the "Yunnan for Epidemic Preparedness Innovations (CEPI) and Program

Vaccine Laboratory." Looking ahead the laboratory will for Appropriate Technology in Health (PATH). We also

maintain its roots in Yunnan province while adopting a collaborate with the United Nations Children's Fund (UNICEF)

Global Alliance for Vaccines and Immunisation (Gavi) and

the Developing Countries Vaccine Manufacturers Network

(DCVMN). These collaborations aim to accelerate vaccine

R&D and facilitate WHO-PQ. Participation in the 23rd CBioPC

39 402024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Adhering to Research Ethics

Walvax Biotechnology adheres to the ethical principles of respect beneficence and justice for all trial participants. The Company Animal Ethics

strictly complies with relevant legal and regulatory requirements and ethical standards reinforcing management and oversight

through standardized processes to safeguard the safety rights and privacy of trial participants. During the reporting period the

Company remained fully compliant with no recorded violations of research ethics. Walvax Biotechnology strictly adheres to the Institutional Animal Care and Use Committee (IACUC) guidelines. Personnel

conducting animal experiments must be certified before performing any procedures. Before acquiring experimental animals the

Company submits an animal experiment ethics review form to the ethics committee and proceeds with animal experiments only

Protecting the Rights of Clinical Trial Participants after approval. The Company diligently follows the "3R Principles" (Reduction Replacement Refinement) to maximize animal

welfare protection. Moreover the Company has joined the "3Rs Working Group" of the Developing Countries Vaccine Manufacturers

Walvax Biotechnology places strong emphasis on ethical integrity in clinical trials with the rights and safety of participants being the Network (DCVMN) collaborating with global vaccine industry experts to explore alternative methods to animal testing in vaccine

Company's top priority. It strictly complies with applicable laws ethical principles and scientific standards including the Declaration product release testing.of Helsinki the International Ethical Guidelines for Health-Related Research Involving Humans and the Measures for Ethical

Review of Life Science and Medical Research Involving Human Beings. The Company has established a comprehensive framework

covering the development of clinical trial protocols informed consent documents and risk control plans. In addition a well-structured Shanghai Zerun conducts vaccine-related animal experiments through its dedicated laboratory animal center adhering

training system is in place to ensure that all clinical trials are conducted in full compliance with legal and ethical requirements strictly to animal welfare guidelines and ethics committee requirements. Each cage houses no more than five mice and

thereby safeguarding participant rights and safety. all experimental operators must be certified. New personnel undergo comprehensive training before assuming their

duties. The animal center's ethics committee provides vigilant oversight of daily welfare and ethical considerations in

Shanghai Zerun's animal experiments promptly issuing corrective recommendations when any issues are identified.In designing clinical trial protocols we prioritize participant safety rights and risk assessment from

the outset to ensure both scientific rigor and ethical integrity. During trials any necessary protocol

Protocol

Design amendments undergo thorough evaluation for their necessity rationality and potential impact on

participant safety. We promptly submit all modifications to the ethics committee for review strictly

adhering to regulatory guidelines.Biosafety

Walvax Biotechnology rigorously adheres to the Walvax

Our clinical trials adhere stringently to relevant laws regulations and ethical review procedures. No Biotechnology Co. Ltd. Biosafety Management Regulations

trial commences without ethics committee approval. Throughout the trial we submit any modifications

Ethical for Pathogenic Microorganism Laboratories. The Company

Review to critical documents including the protocol for ethical review before implementation. We promptly has established a Biosafety Committee and implemented

report safety events and implement recommended measures. Furthermore all trials undergo a designated accountabi l i ty system for pathogenic

continuous ethical oversight. microorganism laboratories. We have strengthened risk

assessment and prevention measures for activities involving

pathogenic microorganisms. Continuous biosafety training is

conducted through various formats including new employee

Right to Information and Voluntary Participation: We use only ethics committee-approved informed orientation annual refresher courses and specialized

consent forms. The consent process thoroughly explains the trial's nature purpose risks and benefits training by external experts all followed by comprehensive

allowing ample time for consideration. Participation is entirely voluntary with participants retaining the assessments. We also conduct regular on-site biosafety drills

right to withdraw unconditionally at any stage. to ensure the thorough implementation and enforcement

of biosafety management requirements. Furthermore the

Right to Privacy: We safeguard participants' privacy in strict compliance with regulatory standards. This Company has implemented biosafety management protocols

includes ensuring the lawful and compliant collection use and storage of personal information. For Staff conducts biosafety incident simulation exercisesfor suppliers ensuring regulatory compliance stringent full-

further details please refer to the "Information Security and Privacy Protection" section of this report.Participant process oversight and complete traceability. This guarantees

Protection Right to Life and Health: All clinical trial protocols undergo rigorous scientific validation and proceed that clinical trial drugs and biological samples are securely

only when benefits outweigh risks. We provide insurance coverage for all participants. For early-phase handled. In 2024 the Company reported no safety incidents

large-scale or high-risk trials we establish an independent Data and Safety Monitoring Board (DSMB) including any pathogenic microorganism leakage.to ensure comprehensive participant protection.Right to Medical Treatment: We collaborate exclusively with compliant trial sites and establish

expedited care agreements with reputable local hospitals before trial initiation. We develop

comprehensive emergency response plans and implement robust safety monitoring and evaluation

mechanisms to ensure prompt and appropriate management of any safety incidents.We have dedicated departments tasked with real-time safety monitoring and have established

Safety Event management systems that align with regulatory requirements. These teams conduct thorough analyses

Management of safety data and promptly report any risk events to regulatory authorities thereby safeguarding

participant safety and rights throughout the trial process.

41 422024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Intellectual Property Protection Impact Risk and Opportunity Management

Walvax Biotechnology strictly complies with the latest provisions of the Patent Law of the People's Republic of China the To effectively address various risks such as rapid technological advancements market competition clinical trial challenges

Trademark Law of the People's Republic of China the Copyright Law of the People's Republic of China and other relevant laws intellectual property concerns policy and regulatory changes and financial uncertainties Walvax Biotechnology has established

and regulations. The Company has formulated and implemented comprehensive guidelines including the Walvax Biotechnology a Scientific Committee. This committee strengthens the evaluation and approval process for R&D projects. The Company utilizes

Co. Ltd. Intellectual Property Management Specifications Walvax Biotechnology Co. Ltd. Patent Management Measures Walvax business units as operational entities to respond more agilely to market demands. Through cross-functional team collaboration

Biotechnology Co. Ltd. Copyright Management Measures and Walvax Biotechnology Co. Ltd. Guidelines for Legal Risk Control in R&D marketing procurement production and pharmacovigilance we ensure that risk management activities are integrated

and Review of Intellectual Property in External Publicity Materials. These guidelines encompass the acquisition management throughout the entire vaccine product development process. Throughout the lifecycle of R&D projects the Company closely

maintenance utilization and protection of intellectual property providing a robust institutional framework for the Company's monitors market trends technological advancements and policy developments. We continuously conduct risk identification

standardized management of intellectual property affairs. The Company has established a dedicated Legal Affairs Department at assessment and monitoring incorporating key business and priority area risks into our comprehensive Risk Database. We promptly

its headquarters to coordinate the Group's intellectual property matters. We have invested in the PatSnap global patent database adjust risk management strategies based on changes in internal and external environments establish risk warning mechanisms

and regularly conduct intellectual property protection training to ensure professional efficient and standardized intellectual property and implement risk reporting systems to ensure that all R&D activities remain within controllable parameters.management. While safeguarding its own intellectual property rights the Company also fully respects the intellectual property rights

of others strengthening patent risk control measures to avoid infringing on third-party intellectual property rights.R&D Risk Analysis Mitigation Strategies

The Company has launched a dedicated intellectual property course module on the "Knowledge ● Technical risks ● Enhance cross-functional risk assessments facilitating rapid information flow

Cloud - Walvax Academy" online learning platform. Professional intellectual property training courses between departments and enabling multi-perspective project reviews to promptly

● Clinical trial risks

are conducted regularly each year integrating online and offline formats to enhance employees' identify and address potential R&D risks.expertise in intellectual property matters. Furthermore the Company has developed the comprehensive ● Market competition risks

● Closely monitor market trends technological advancements and policy

Walvax Biotechnology Intellectual Property Handbook for disseminating and training on fundamental

● Internationalization developments. Adopt diversified technological approaches and continually iterate

intellectual property knowledge and regulatory standards thereby improving employees' awareness and challenges based on market demands to swiftly respond to market changes thereby reducing

understanding of intellectual property. In 2024 employee intellectual property training coverage achieved the risk of R&D innovation deviation.

100%. ● Policy risks

● Develop well-defined R&D risk response strategies for various levels of R&D risks

● Financial and funding ensuring risk avoidance mitigation or transfer. Formulate contingency plans to

risks ensure rapid response when risks materialize.● Intellectual property

● Conduct thorough patent infringement risk analysis on the technical content of R&D

risks projects. Implement a dedicated intellectual property legal risk review node in the

contract approval process to identify and mitigate intellectual property risks.New invention patents granted in China: New utility model patents granted in China: Valid granted patents:

5 13 112 Indicators and Targets

Indicators and Targets 2024 Achievement Status

Number of valid invention patents Valid utility model patents granted in Valid international patents granted:

granted in China: China: R&D personnel totaled 172 accounting for 8.90%

of the workforce. Annual R&D investment reached

Enhancing R&D innovation capabilities RMB 700.4222 million representing 24.82% of

54 36 22 operating revenue. Listed among the Top 500 Private Enterprises in R&D Investment 2024 Target achieved

Rising number of patent applications and

authorizations 18 newly granted patentsValid trademark registrations: Valid domestic trademark registrations: Valid overseas trademark registrations:

22218735

Note: The patent data is as of the end of March 2025.

43 442024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Prioritizing Quality Excellence R&D Quality Management

Walvax Biotechnology has implemented a comprehensive quality management system for R&D adhering to ISO 9001 GMP ICH

Q10 standards and relevant regulations. This system is documented in key publications including the Walvax Biotechnology Co.Governance Ltd. Quality Manual Walvax Biotechnology Co. Ltd. Standard Operating Procedure for Quality Management of R&D Project and

Walvax Biotechnology Co. Ltd. Standard Operating Procedure for CQA & CPP Research. These documents encompass various

aspects such as knowledge management project management quality control and assurance quality risk management data

Walvax Biotechnology upholds the quality management principle that "Life is paramount quality outweighs all; continuous integrity management outsourcing management and clinical management. The Company has also integrated digital management

improvement conscientious in any detail." We strictly comply with national and international regulations and standards including practices to ensure the authenticity compliance scientific validity and traceability of all R&D processes.the Drug Administration Law of the People's Republic of China Vaccine Administration Law of the People's Republic of China and

Good Manufacturing Practice of Medical Products. Furthermore we follow industry guidelines and standards issued by renowned

international organizations such as the International Council for Harmonisation of Technical Requirements for Pharmaceuticals for

Human Use (ICH) World Health Organization (WHO) Pharmaceutical Inspection Co-operation Scheme (PIC/S) European Union Walvax Biotechnology employs a problem-oriented approach to continually enhance and effectively operate its R&D

(EU) International Society for Pharmaceutical Engineering (ISPE) and International Organization for Standardization (ISO). To quality system. The Company implements a strategy of "detailed pre-planning and post-audit release" throughout

ensure compliance and maintain high-quality standards Walvax Biotechnology has developed a suite of internal management the research process. Quality audits and release procedures are executed at each critical stage to maintain

systems. These include the Walvax Biotechnology Quality Manual Walvax Biotechnology Production Quality Management research quality throughout project development.Guidelines and Quality Risk Management Inspection Guidelines (Trial) among other policy documents and procedural guidelines.These systems clearly define quality management requirements across the product lifecycle ensuring that all operations are

meticulously recorded and traceable thus maintaining consistent product quality. In 2024 the Company further strengthened

its regulatory compliance by monitoring industry guidance developing a Chinese Drug Regulatory List and implementing a Monthly quality analysis meetings are held to promptly resolve quality-related issues and ensure that all employees

vaccine regulatory management platform. The Company conducted thorough regulatory gap analyses and initiated Corrective and consistently prioritize quality in their daily work.Preventive Actions (CAPA) to address and effectively control all identified discrepancies. Walvax Biotechnology has established a

Quality Management Committee directly overseen by the Vice Chairman and created a Quality Management Center one of its four

core capability platforms. This center serves as the cornerstone for building a coordinated flexible and efficient quality management Annual training programs covering relevant policies regulations quality management and standard operating

system that spans all business lines alongside a comprehensive Total Quality Management (TQM) platform. To reinforce the procedures are organized for R&D personnel. These training sessions achieve 100% participation among research

importance of quality related responsibilities are incorporated into annual performance evaluations ensuring that products are safer staff ensuring experimental safety data reliability and regulatory compliance while equipping researchers to handle

more effective more controllable more accessible and more advanced. complex research tasks more effectively.Strategy and Approach

Case Quality Management Training at Shanghai Zerun

Lifecycle Quality Management In 2024 Shanghai Zerun's Quality Department organized 12 comprehensive quality management training sessions covering several

key areas. The Quality Department focused on the latest version of ICH Q9 Quality Risk Management and guidelines for analytical

Quality is central to Walvax Biotechnology's operations reflected in a high-standard quality management system that spans the method validation and verification. Internal auditor qualification standards and deviation change specifications were reinforced.entire lifecycle of its vaccine products. This comprehensive approach ensures the safety efficacy and quality control of all vaccine The R&D departments concentrated on pharmaceutical change essentials technical guidelines for non-clinical research of vaccine

products. The Company's product quality registration standards fully meet EU standardswith some indicators even exceeding them. adjuvants and technical guidelines for contamination control strategies and cleaning validation. The clinical team organized

Facility design and construction adhere to international pharmaceutical industry regulatory requirements set by ICH WHO and the learning sessions on Good Pharmacovigilance Practice and technical guidelines for vaccine clinical trials. By actively monitoring

European Medicines Agency (EMA) demonstrating the Company's dedication to safeguarding public health and safety through and incorporating the latest regulatory guidelines the company ensures that its R&D processes remain closely aligned with current

excellent and industry-leading product quality. regulatory requirements. This approach maintains relevance and guarantees high-quality steady progress in R&D activities.Quality Management System Covering

the Entire Vaccine Product Lifecycle

Yuxi Walvax the Company's primary

Vaccine R&D Technology Transfer Commercial Production Product Termination production base achieved

ISO 9001

Quality Management System

Document Management System Change Management System certification.Process Performance and Product Quality Monitoring System Management Review

Data Integrity Management System Pharmacovigilance Management System

Corrective/Preventive Action (CAPA) Failure Management System

45 462024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Clinical Trial Quality Management Quality Testing Management

Walvax Biotechnology applies the ICH Q10 Pharmaceutical Quality System to its clinical quality management practices. The To mitigate potential product safety and quality issues Walvax Biotechnology has implemented rigorous quality control measures

Company has established a dedicated clinical research quality management team and comprehensive clinical trial quality throughout all stages of vaccine product testing. These measures ensure effective quality control thereby strengthening the

management systems. These systems cover the entire process from clinical trial design to implementation results and reporting. foundation of product quality. Quality monitoring continues even during production halts for research purposes such as stability

Platform-based management systems for supplier management issue CAPA management and personnel training have been studies.implemented to ensure full compliance with regulatory requirements and industry standards. During the reporting period the

Company's Registration and Medical Center conducted 70 training sessions on regulations such as Good Clinical Practice of

Medical Products and Measures for Ethical Review of Life Science and Medical Research Involving Human Being. Internal Testing

To maintain the highest standards of quality and compliance all clinical trials are monitored by third-party entities. This ensures The Company's facilities equipment and testing methods for vaccine products have undergone thorough validation and

adherence to GCP and other legal requirements guarantees data reliability and protects subjects' rights. Third-party data verification. Walvax Biotechnology maintains a comprehensive document management and record control system that complies

management units are engaged to systematically verify clinical trial data ensuring data integrity. When necessary independent with Chinese GMP WHO GMP EU GMP ICH and other regulatory and industry standards. Every batch of vaccine products

third-party audits are commissioned to further safeguard project quality. The Clinical Research Quality Assurance and Quality including raw materials excipients intermediate products packaging materials and finished products is subjected to stringent

Control departments operating as independent units conduct risk-based quality activities throughout each clinical trial to ensure quality management testing throughout the entire process. Real-time trend analysis and data monitoring are conducted to

project quality. proactively prevent potential safety and quality issues. Products that pass internal testing are then sampled by the Medical Products

Administration of Yunnan Province and sent to the national laboratories (National Institutes for Food and Drug Control NIFDC) for

further testing. Only after obtaining the Lot Release Certificate can the vaccines be distributed. In 2024 the testing completion rate

reached 100% ensuring all hardware and methodologies meet the highest standards of efficacy and safety. For each vaccine batch

Production Quality Management the Company cross-validates internal test data with those from national laboratories for the same batch. This preventive comparison

enables timely adjustments to the quality testing system when needed ensuring its continued effectiveness.Walvax Biotechnology has implemented comprehensive procedures to ensure robust quality control throughout the production

process. These procedures encompass facility and equipment management material and product release quality assurance quality

control validation and verification and packaging and labeling. Key documents include Facility and Infrastructure Management External Testing

Control Procedures Equipment Management Control Procedures Material Management Control Procedures Production

Management Control Procedures and New Product and Process Industrialization Implementation Control Procedures.The national batch release authority meticulously reviews the production and testing records for each batch of finished products

and conducts sample testing. If the results meet the requirements a Biological Product Batch Release Certificate is issued. Upon

receiving this certificate the Company's Quality Department performs a comprehensive quality assessment of each batch. Final

release for market distribution is authorized only after approval by the Qualified Person (QP). For outsourced testing management

As part of the Digital Walvax strategy the Company is advancing the informatization digitalization Walvax Biotechnology has established standard operating procedures and signs contracts with third-party testing institutions. On-

Intelligent and intelligentization of manufacturing processes. This enables intelligent workshop control site audits are conducted to assess their quality management systems personnel equipment/instruments laboratory facilities data

Manufacturing transparent production processes digitally controlled manufacturing equipment and integrated integrity and computerized systems. This ensures that outsourced testing activities comply with Chinese GMP WHO GMP EU

for Quality production information systems. These improvements ensure controlled production operations GMP and other regulatory requirements.Enhancement maintain stable vaccine production processes and enable rapid identification of areas for

improvement and optimization of quality control strategies. Preventive Testing

For innovative products new processes and new equipment or in response to emerging quality and safety issues the Company

conducts thorough reviews and risk assessments from multiple perspectives. These include GMP compliance change management

maintenance/calibration and deviation handling. Identified potential quality risks undergo pre-validation and preventive testing with

Walvax Biotechnology places a strong emphasis on critical process parameter evaluation and

Process corresponding quality control plans developed. This comprehensive approach ensures stable operation of process equipment before has established rigorous internal quality standards. The Company is equipped with state-of-the-

Management production launch and effective control of critical quality attributes (CQAs).and Quality art internal testing instruments and employs a professional in-house testing team. Real-time

Control monitoring of production processes has been enhanced shifting from reactive to proactive quality

management ensuring consistent compliance with quality requirements for final products.Preventive Testing for Internal Quality Risks

Walvax Biotechnology annually develops a comprehensive validation plan that encompasses GMP facilities

production equipment testing instruments manufacturing processes cleaning methods testing procedures and

computer systems. This plan includes preventive testing and validation of Critical Process Parameters (CPPs) and

Critical Quality Attributes (CQAs) to proactively identify potential quality risks thereby ensuring vaccine safety efficacy

Distribution and Storage Management and quality stability. In 2024 Yuxi Walvax formulated the 2024 Re-validation Plan which guided the Risk Validation

Management Department in coordinating validation activities across various departments. Concurrently Yuxi Zerun

implemented re-validation of major production equipment and inspection instruments in accordance with their

Walvax Biotechnology has established a stringent distribution quality management system based on pharmaceutical and vaccine

Validation Master Plan.regulations and Good Supply Practice (GSP). The system has enhanced quality management across all distribution stages

including vaccine warehousing storage transportation and cold chain verification. A comprehensive vaccine traceability and The Company has established the Equipment Preventive Maintenance Management Procedure to standardize

control system has been implemented using advanced digital methods. The Company employs a hybrid model of in-house and maintenance practices. Tailored preventive maintenance plans for each piece of equipment are developed and

outsourced storage and distribution enhancing overall distribution capabilities. Regular quality audits of logistics service providers executed based on its purpose characteristics historical performance risk analysis and supplier recommendations to

are conducted to maintain high standards in vaccine distribution. mitigate quality risks. In 2024 the Company achieved a 100% completion rate for equipment preventive maintenance.

47 482024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Case Establishment of Walvax Biotechnology's Clinical Medical Expert Panel

Preventive Testing for External Quality Risks

To mitigate regulatory compliance risks the Company's Quality Management Center mandates all relevant subsidiaries In September 2024 the Pharmacovigilance Management Department within Walvax Biotechnology's Quality Management

to conduct thorough gap analyses against the latest regulations and implement targeted improvement measures. Center established a Clinical Medical Expert Panel. This initiative was undertaken to implement the Measures for Identification of

In 2024 the Company focused on eight key areas: sterile filtration sterilization processes supplier management Adverse Events Following Immunization and to provide enhanced professional medical guidance for diagnostic identification in

production process validation data integrity management review self-inspection and sampling management. pharmacovigilance and clinical trial operations. The primary goal is to improve the medical diagnostic identification of suspected

Accordingly the Company developed several guidelines including the Sterile Filtration Inspection Guidelines (Trial)) adverse events following immunization. The Clinical Medical Expert Panel comprises leading authorities from various clinical

Supplier Management Inspection Guidelines (Trial) Production Process Validation Inspection Guidelines (Trial) Data disciplines. Through their multi-dimensional in-depth analysis of vaccine product risks the panel significantly enhances the

Integrity Inspection Guidelines (Trial) and Self-Inspection Guidelines (Trial). These guidelines align with the latest efficiency and quality of medical diagnostic identification processes. This approach ensures swift responses to vaccine product

domestic and international requirements enhancing Walvax Biotechnology's Pharmaceutical Regulatory Map and safety issues while refining pharmacovigilance decision-making procedures resulting in more scientifically rigorous risk control

bolstering its defenses against regulatory compliance risks. decisions.The Company maintains vigilant monitoring of emerging external quality and safety issues. Upon identification of

any concerns immediate product quality and safety assurance measures are implemented. These include thorough

assessment and investigation risk evaluation and implementation of appropriate corrective and preventive actions Product Traceability

(CAPA) such as process improvements to effectively mitigate potential quality risks.

Walvax Biotechnology has implemented a comprehensive vaccine information traceability system. This system enables full-range

end-to-end product information traceability reinforcing the interconnection and sharing of traceability data. Consequently it promotes

integrated management of vaccine quality and safety continuously elevating the standards of vaccine quality and safety assurance.Pharmacovigilance

Comprehensive Electronic Traceability of Vaccines

Walvax Biotechnology headquarters and its subsidiaries have established dedicated pharmacovigilance departments. These

departments operate under the guidance of domestic and international pharmacovigilance-related laws regulations industry norms Yuxi Walvax has established Operating Procedures for the Use of the Code Assurance System implementing

and business guidelines including the Good Pharmacovigilance Practice Measures for the Reporting and Monitoring of Adverse the Ali Health Code Assurance System for electronic vaccine traceability. This system integrates with the national

Drug Reactions and ICH guidelines. The Company has formulated internal pharmacovigilance policies and established a global collaborative platform achieving traceability down to the smallest packaging unit of vaccines throughout the

pharmacovigilance system aligned with international standards. It continuously improves its pharmacovigilance management production and distribution processes. It also facilitates comprehensive flow information queries at every stage.framework and monitoring processes actively conducts both internal and external audits and ensures ongoing safety surveillance of Yuxi Zerun has developed an advanced drug traceability code system. Leveraging the nationwide National

marketed products. In addition we support developing countries in establishing vaccine safety monitoring systems. This includes the Medical Products Administration network platform this system enables product status inquiries traceability

global collection monitoring identification and evaluation of adverse events following immunization (AEFIs). These comprehensive and management. Every shipment return and related operation is recorded through scanning and uploading of

efforts aim to make vaccines safer more effective better controlled more accessible and more advanced. traceability codes. This allows for real-time monitoring of production operation inventory and distribution status for

each box case and batch of key pharmaceutical products.During the reporting period the pharmacovigilance department further refined its The Company adheres to the principle of "vigilance by all at all times comprehensive

Enhancement of system documentation covering policy documents personnel and resources quality monitoring timely assessment compliant reporting and reporting upon suspicion."

Pharmacovigilance

Management management monitoring and reporting risk management and outsourcing management. Processes such as the Collection and Handling Procedure for Suspected Adverse Events

System These efforts continued to improve the operational efficiency of the pharmacovigilance Following Immunization and the Management Procedure for Collection and Reporting of

system and ensured compliance across the entire vaccine lifecycle. Suspected Adverse Events Following Immunization were established. A standardized and

efficient channel for adverse event information collection was implemented supported

The Company implemented the Risk Signal Detection and Processing Management Adverse by a pharmacovigilance system and MedDRA dictionary for analysis evaluation and

Procedure. This procedure involves comprehensive safety monitoring through individual Reaction/Event monitoring. This approach enables proactive comprehensive and effective management

Strengthening of case report reviews regulatory vaccine safety information periodic safety reports Management of suspected adverse drug reactions during vaccine use. For overseas suspected

Pharmacovigilance cluster signal screening and case report summary analyses. Potential safety risks adverse events timely verification recording evaluation and reporting are conducted in

Risk Control are systematically identified tracked and analyzed. Regular reviews of safety data accordance with the Management Procedure for Handling and Reporting of Suspected

and updates to product risk management plans effectively safeguard consumer health Adverse Events Following Immunization Occurring Overseas. Targeted measures are

interests. taken for different levels of suspected adverse events addressing stakeholder concerns

while ensuring regulatory compliance.Annual training plans were developed covering pharmacovigilance regulations

documentation and skills. Basic pharmacovigilance knowledge was incorporated into

mandatory new employee training at headquarters utilizing the Company's online A comprehensive process for managing vaccine safety emergencies was developed

Continuous learning platform Walvax Academy. Training effectiveness assessments ensure quality

including the formation of an emergency response team and corresponding contingency

Improvement of and efficacy. The pharmacovigilance department achieved a 100% completion rate for Handling plans. Routine surveillance is maintained and in the event of a vaccine safety emergency

Training Quality its annual training plan with all participants meeting qualification standards. Additionally of Safety detailed investigations and active responses are initiated to minimize impact. Post-incident Emergencies

department personnel actively participated in professional training sessions public evaluations are promptly organized company-wide to assess the emergency response

courses and programs organized by government agencies and industry associations prevent similar occurrences and optimize handling procedures thereby safeguarding the

achieving a 100% participation rate. health and safety of vaccine recipients.

49 502024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Product Recall

Annual quality training plans are meticulously developed and rigorously implemented for

Walvax Biotechnology has implemented a comprehensive Product Recall Decision all employees ensuring comprehensive coverage at company department and position-

vaccine product recall system and mechanism in compliance Level I Recall / Level II Recall / Level III Recall specific levels. Employees undergo training and subsequent assessments to guarantee

with the Good Manufacturing Practice of Medical Products the effectiveness and empowerment of the training programs. Year-end reviews of training

and Provisions for Administration of Medical Device Recall. Develop Recall Plan activities are conducted to evaluate the operational efficiency of the training system

This system covers both marketed products and drugs facilitating continual improvement and optimization of the Company's training management.used in clinical trials. The Company has developed internal

management policies and standards including the Product Internal Implement Recall Quality

Shipment and Recall Management Control Procedure and the

If Destruction Training

Product Recall (Simulated Recall) Management Procedure. is Required:

The Company conducts regular simulated product recalls to If Not Destroy under

Approved Receipt and Handling of Recalled Products

Supervision of

ensure that any batch of products with quality issues or safety Drug Regulatory Department or

concerns can be promptly and effectively withdrawn from the Notary Institution

market when necessary thus safeguarding public health. Both Recall Summary Report

of the Company's primary vaccine production facilities Yuxi

Walvax and Yuxi Zerun have implemented electronic vaccine

traceability systems. These systems enable real-time monitoring Submit to Drug Regulatory Department for Review

of the distribution status for each box case and batch of and Evaluation

vaccines facilitating rapid tracing and recall if any issues are

identified. In October 2024 Yuxi Zerun conducted a simulated The Company is advancing the digitalization of quality training management by offering

domestic product recall exercise (Level II recall) achieving a Recall Closure product quality-related courses on the "Walvax Academy" online learning platform and

100% completion rate and timeliness rate. During the reporting implementing the Bopu Cloud training management system. These initiatives enhance

period no incidents necessitated the recall of sold or shipped personalized learning experiences and enable real-time monitoring and feedback on training

products due to safety or quality concerns. effectiveness.Quality Culture

Walvax Biotechnology embraces a quality culture founded on the principle of "All-Employee Participation Each with Their Own Impact Risk and Opportunity Management

Responsibilities." In compliance with pharmaceutical laws and regulations the Company has established comprehensive training

manuals and management procedures. A diverse and systematic quality training curriculum has been implemented to provide all Quality Risk Management System

employees with robust quality control and product safety training. The training encompasses a wide range of topics including drug

registration clinical trial protocol design quality management data management ethics review and protection of trial participants' Quality risk assessment and control form the cornerstone of effective quality management. Walvax Biotechnology adheres to

rights. This ensures that all employees are well-versed in the Company's quality management system operational requirements internationally recognized standards such as the ICH Q9 Quality Risk Management and the TRS 981 - Annex 2: WHO Guidelines

thereby enhancing quality risk awareness and management capabilities across the entire organization. on Quality Risk Management (2013). These external benchmarks are complemented by internal management policies including

Risk Management Control Procedures Quality Risk Management Specifications and Quality Risk Management Inspection

Total quality training hours in 2024: with The completion and qualification rate Guidelines (Trial). This comprehensive framework is applied throughout the product lifecycle from R&D through technology transfer

for quality-related training in 2024: commercial production and distribution to product phase-out ensuring proactive identification and management of potential quality

31562.6 hours 100% coverage of all issues. The Company employs a multi-faceted approach to risk management utilizing various control methods such as deviation 100% management change control quality audits adverse reaction monitoring product quality review analysis corrective and preventive employees in quality-related training action management and personnel training. To enhance risk identification and control the Company also leverages recognized

risk management tools including Failure Mode and Effects Analysis (FMEA) Fault Tree Analysis (FTA) and Hazard Analysis and

Critical Control Points (HACCP). To maintain vigilance and drive continuous improvement the Company conducts risk audits at least

Employees are strategically assigned to participate in legal and regulatory interpretation annually.sessions and professional skills training based on the relevance to their roles. These

are organized by industry-leading institutions such as the National Medical Products

Administration Institute of Executive Development National Institutes for Food and Drug Yuxi Walvax has diligently implemented the 2024 quality risk management plan completing departmental risk

External Control China Medicine Education Association and China Health Media Group. Post-training assessments and establishing corresponding control measures. To ensure timely updates of newly identified risks the

Quality participants are responsible for conducting company-wide knowledge transfer sessions and company developed a comprehensive Risk Registration Ledger. In 2024 this register documented 142 risk assessment

Training dissemination activities. reports spanning nine critical categories including production process contamination control data management quality

risk management and regulatory gap analysis. Notably all risk assessment results were deemed manageable.The Company regularly invites experts in drug quality management quality control equipment

and facilities biosafety and professors from domestic universities to conduct on-site training

fostering continuous learning and acquisition of cutting-edge knowledge among employees.Yuxi Zerun has fortified its risk management framework by establishing the Standard Operating Procedures for Quality

Risk Management and Quality Risk Management Tools Summary and Application Guide. To facilitate systematic risk

tracking and review the company implemented a Risk Assessment Ledger and Risk Registration Form. In 2024 this

Quality Quality awareness is seamlessly integrated into daily operations through various channels proactive approach led to the identification of 12 new risk points for which tailored control measures were promptly

Culture including quality meetings targeted activities internal communication platforms and

Promotion developed. These measures addressed key areas such as data integrity rectification self-prepared solution expiration informative quality promotion display boards. verification shared production line risk assessment environmental monitoring review and sterilizer validation.

51 522024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Quality Audits

To maintain the integrity of its quality system the Company conducts regular internal and external audits across all business lines.Initiation of Quality Risk Management Procedure The Quality Department spearheads internal audits while external audits encompass a range of assessments. These include GMP

compliance inspections by the National Medical Products Administration local regulatory authorities and WHO-PQ. Additionally

the Company undergoes audits from business partners during domestic and international collaborations. Throughout the reporting

period no critical deficiencies were identified and all corrective actions were implemented according to schedule.Public Production Vaccine ……

Utilities Processes Distribution Internal Quality Audits

The Company has established comprehensive internal audit criteria and evaluation standards. A quality audit is conducted at least

once annually across all business lines ensuring 100% coverage of operations and further enhancing the quality management

system. In 2024 these audits encompassed various aspects including organizational structure and personnel facility and equipment

Risk Assessment management materials and products qualification and validation processes document management production oversight

quality control and assurance outsourced production and testing data integrity management drug storage and distribution and

pharmacovigilance.Risk Sources Risk ToolsIdentification When audits reveal issues or deficiencies the Quality Management Center requires each business unit to identify associated

product or system risks develop risk inventories and implement control measures. Corrections and preventive actions (CAPA)

are executed following the Plan-Do-Check-Act (PDCA) model with all improvement measures tracked through the CAPA system.Risk Analysis Tools Furthermore the Company conducts GMP compliance audits on its subsidiaries providing feedback through internal inspection

finding notifications. For a detailed overview of supply chain quality audits please refer to the "Sustainable Supply Chain" section of

Assessment this report.Forms Risk Evaluation

Yuxi Walvax has implemented a Self-Inspection Management Control Procedure and formed a dedicated GMP self-

inspection team led by the quality manager. The team develops and executes an annual self-inspection plan. In 2024

Yuxi Walvax conducted one comprehensive self-inspection and five specialized self-inspections. All identified deficiencies

Risk Control were addressed through the CAPA system achieving a 100% completion rate for corrective actions.Root Causes Control Measures

External Quality Audits

Residual Risk Risk Reduction

The Company actively participates in external third-party quality audits including those conducted by domestic and international

Standards Risk Acceptance regulatory bodies and business partners to continuously enhance the integrity and effectiveness of its quality management system.In 2024 Yuxi Walvax and Yuxi Zerun underwent a total of 19 audits from regulatory agencies and independent third parties. These

audits included inspections by the National Medical Products Administration National Center for Vaccine Inspection Yunnan

Provincial Center for Vaccine Inspection Medical Products Administration of Yunnan Province as well as quality management

system certification audits and independent third-party GMP compliance inspections. In response to deficiencies identified during

these audits particularly those related to deviation and change management the Company compiled detailed reports including

Quality Risk Process Outcomes / Outputs Walvax Biotechnology's Compilation of Deviation Management Findings from External Inspections and Walvax Biotechnology's

Compilation of Change Management Findings from External Inspections. These documents facilitated targeted improvements in the

quality management system with a specific focus on deviation and change management processes. All corrective measures were

integrated into the CAPA system with dedicated personnel from the Quality Supervision Department meticulously tracking each

action item to ensure full implementation. Notably throughout the year the Company incurred no regulatory penalties during its

vaccine production and operation management processes.Risk Review

Events Review

5354

Risk Communication

Improvement Unacceptable Outcomes2024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Entity Inspected Inspection Type Inspecting Agency Number of Inspection Outcome Business Continuity ManagementInspections

China GMP Compliance Inspections National/Provincial Medical Products Administration 11 Passed Through years of strategic development Walvax Biotechnology has established a comprehensive business continuity management

Yuxi Walvax system that spans R&D procurement manufacturing logistics and storage. This system extends from suppliers through the

International GMP Compliance Overseas Medical Products

Inspections/Audits Administration 4 Passed Company to end customers. It incorporates measures for emergency management of unexpected events hazard identification and

remediation tracking and regular inspections. These efforts enhance the Company's business continuity management capabilities

China GMP Compliance Inspections National/Provincial Medical 2 Passed and its ability to respond effectively to emergencies ensuring business continuity and workplace safety. Detailed information on the Products Administration Company's resilient supply chain can be found in the "Sustainable Supply Chain" section of this report.Yuxi Zerun International GMP Compliance Overseas Medical Products

Inspections/Audits Administration 1 Passed

PQ inspections WHO 1 Passed

Indicators and Targets

Emergency Response and Mitigation Systems Indicators and Targets 2024 Achievement Status

Preventive maintenance plan completion rate: 100%

Walvax Biotechnology conducts regular reviews of its quality management system encompassing critical components such as raw

material supply equipment and facilities internal and external audits deviations and changes with the aim of continually enhancing Inspection plan completion rate: ≥98%

the system's effectiveness.Revalidation plan completion rate: 100%

At least one comprehensive self-inspection conducted annually

Deviation Management Correction and Prevention Target achieved

Deviation handling rate: 100%

The Company has implemented comprehensive guidelines Walvax Biotechnology has established the Product Quality Monitoring plan completion rate: 100%

including the Deviation Management Standards (Trial) and Review Management Procedure and Corrective and

Operating Procedures for Change Control. These protocols Preventive Action Operating Procedure to ensure the stability First-pass CAPA completion rate: ≥80%

ensure a comprehensive approach to deviation management and reliability of product manufacturing processes and

including thorough investigation assessment analysis workflows. These procedures also verify the applicability of Product release pass rate: 100%

correction and prevention with periodic implementation current quality standards for raw materials auxiliary materials

reviews. This approach is designed to mitigate risks and finished products. This enables prompt detection of

associated with reduced vaccine efficacy or potential adverse adverse trends and provides valuable guidance for product

reactions stemming from deviations. During the reporting and process control improvements. The Quality Management

period all deviations were managed according to established Center conducts biannual audits of change review analysis

procedures including reporting recording investigating reports submitted by various production units to ensure

evaluating and addressing. Effective corrective and ongoing compliance and improvement.preventive measures were implemented with no instances

of unexplained or recurring deviations. Furthermore the

Company conducts regular deviation reviews and analyses

to drive continuous improvement and risk control thereby

enhancing both production activities and the overall quality

management system.

55 562024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Professional Customer Service

Service Assurance

Building long-term trusting relationships with customers is a cornerstone of Walvax Biotechnology' sustainable growth. The Reception Provide multiple feedback channels including phone website and corporate email for customers

Company adheres to the principles of "sincere cooperation mutual trust reciprocal benefits and shared development" in its

customer service approach. With a customer-centric focus we have developed a synergistic system where market insights and Document specific customer suggestions or complaints using the STAR model (Situation Task

R&D efforts reinforce each other. The Company has implemented a standardized clear and efficient customer service management Recording Action Result)

system. Performance indicators related to customer service are integrated into employee evaluations to drive continuous

improvement in user experience. Respond immediately to customer complaints and collaborate to develop emergency handling

Assessment

The Company conducts annual customer satisfaction surveys to gather comprehensive feedback and suggestions continuously measures

improving service quality based on customer needs. In 2024 questionnaires were distributed to 211 customers including disease

control and prevention centers hospitals and health service centers. The survey covered aspects such as product quality Conduct thorough reviews and coordinate with relevant departments to investigate complaints Review

packaging delivery time and service quality. With a 100% response rate the results showed 100% satisfaction in product quality identifying preventive or corrective actions for similar incidents

packaging and delivery time (with no dissatisfaction reported) and an overall service quality satisfaction rate of 99.72%.Feedback Promptly communicate investigation findings and resolution outcomes to customers

Customer Complaint Investigation and Handling Procedure

On-time delivery rate for vaccine orders: Accurate delivery rate for vaccine orders: Economic contract fulfillment rate:

Responsible Marketing

100%100%100%

Walvax Biotechnology is committed to implementing a scientific and rigorous responsible marketing philosophy. The Company

complies with local laws and regulations including the Law of the People's Republic of China on Protection of Consumer Rights

Customer complaint response rate: Customer complaint resolution rate: Overall satisfaction with service quality: and Interests Law of the People's Republic of China for Countering Unfair Competition Advertising Law of the People's Republic

of China Vaccine Administration Law of the People's Republic of China and General Data Protection Regulation. Furthermore

100% 100% 99.72% the Company aligns its practices with international guidelines such as the WHO's Ethical Criteria for Medicinal Drug Promotion. To ensure responsible marketing we have established comprehensive company policies including the "Promotion Prohibition"

Responsible Marketing Policy and Fair Pricing Policy. The Company regularly updates its guidelines covering all marketing

activities encompassing the management of Marketing Department meetings and events regional market initiatives and

promotional material standards. These policies govern the marketing conduct of all employees including full-time part-time and

temporary staff. We are dedicated to conducting all sales and marketing activities in an ethical scientific and objective manner

pledging to avoid commercial bribery unfair competition or any other illegal practices in its sales efforts.Efficient Service Response Customer Complaint Handling

Rigorous and Accurate Marketing

Walvax Biotechnology is dedicated to providing meticulous Walvax Biotechnology places high value on customer

care to every vaccine recipient and fostering collaborative feedback and has developed an efficient operational and Walvax Biotechnology ensures accurate product information disclosure in accordance with applicable laws regulations industry

relationships with all partners. The Company has established feedback mechanism. The Company rigorously investigates standards and guidelines in each operating location. The Company adheres to internal guidelines such as the Guidelines and

a "3R" market service team structure comprising Solution handles tracks and supervises customer complaints. It Standards for Promotional Materials. In its marketing and promotional endeavors the Company strictly observes anti-unfair

Responsibility (SR) Account Responsibility (AR) and Fulfill conducts thorough analyses of customer feedback and competition and antitrust requirements. All referenced quoted or reprinted content must originate from published academic

Responsibility (FR). Additionally we have implemented 24/7 proactively implements improvements to enhance customer literature and third-party reports and is regularly updated to reflect new scientific evidence and approved documentation. When

multi-channel communication platforms and a comprehensive satisfaction continually. For local partners international sales promoting vaccines and providing usage recommendations the Company firmly prohibits exploiting users' fears for forced sales.customer support system that spans pre- during and after- agreements include comprehensive after-sales clauses False or misleading statements about product marketing are strictly forbidden as is exaggerated or false information. All promotional

sales processes. This enables the Company to deliver tailored covering product quality quantity expiration dates and materials adhere to the principles of accuracy clarity and transparency ensuring that stakeholders receive timely truthful rigorous

solutions and responsive support services to its customers. shipping details. Regarding complaints from overseas end- and compliant product and academic information.users (both individuals and governments) all international

sales agreements incorporate specific clauses on product The Company's vaccine packaging is designed to clearly communicate product information to diverse populations across different

quality complaint management. These clauses require countries. We rigorously follow government vaccination regulations in various nations and collaborate with medical professionals

distributors to promptly report all complaint details to the and health departments to develop evidence-based vaccination recommendations. We respect each individual's right to make

Company upon receipt enabling the Company to address informed decisions about vaccination. During the reporting period the Company did not recieve any complaints or legal proceedings

issues effectively and implement appropriate measures. regarding misleading or deceptive promotional information.

57 582024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Compliance Management Responsible Marketing Training

Walvax Biotechnology is committed to continually enhancing its responsible marketing compliance management system and Walvax Biotechnology implements a comprehensive annual responsible marketing training plan. Each year all employees participate

implementing systematic audit and control procedures. All marketing activities undergo rigorous internal review to ensure accuracy in at least one responsible marketing training session. These sessions cover pertinent laws and regulations company policies

and adherence to regulations. The Company has established a dedicated process for updating and filing promotional information. product knowledge promotional standards and compliant market promotion strategies. This approach ensures that every employee

Every marketing initiative including material content methods and channels must pass through a stringent review and supervision is well-versed in and strictly adheres to the Company's marketing advertising and sales protocols. For staff in marketing-related

process. Multiple departments with the Legal Department playing a key role conduct thorough reviews before any materials can positions the Company conducts specialized responsible marketing training sessions on a regular basis. To reinforce learning

be approved for use thereby ensuring content accuracy and compliance. External promotional materials require each department post-training assessments and periodic spot checks are implemented ensuring employees have a thorough grasp of the material

to complete a Review Opinion Collection Form prior to distribution. The Company strictly adheres to its Medical Marketing presented. The curriculum is continuously updated to reflect evolving market dynamics. In 2024 both the Domestic Marketing BU

Department's guidelines for meetings and event management reinforcing the scrutiny of academic conferences. Clear protocols and International Marketing BU proactively conducted responsible marketing training and policy dissemination sessions. These

are in place for employee interactions with external parties ensuring that responsible marketing promotional activities align with included in-depth interpretations of market regulation and compliance policies comprehensive vaccine product information and

legal requirements and ethical standards. Process audits and supervision have been intensified exemplified by the involvement introduction training bivalent HPV international market development training and anti-commercial bribery and risk prevention

of manager-level and above personnel in client communications. Written responses such as emails and messages are reviewed training for listed companies. These concerted efforts aim to guarantee compliance and legality throughout market development and

by responsible leaders and simultaneously copied to management for awareness and tracking of communication content thus sales processes.mitigating marketing vulnerabilities. Sales personnel performance evaluations now incorporate process assessments to guarantee

professional compliant and legal sales practices. During the reporting period the Company received no sales-related complaints.Responsible Marketing Audit Responsible marketing training coverage for Annual responsible marketing training sessions conducted by marketing personnel: Domestic Marketing BU and International Marketing BU:

Walvax Biotechnology places a strong emphasis on responsible marketing audits conducting at least one comprehensive audit sessions encompassing detailed project implementation

annually. The audit scope encompasses all sales operations and includes examining sales personnel's adherence to the Company's 100% 10

responsible marketing policies and systems the compliance of sales processes and contract signing marketing behaviors and guidelines responsible marketing requirements and management

expenses and the consistency of product packaging with official approvals. For any issues identified corrective measures are protocols for external marketing agencies.developed and implemented to ensure marketing promotional activities consistently meet business ethics requirements. In cases

of violations the Company disciplines offending personnel based on the nature and severity of the infraction. Furthermore the

Company extends its responsible marketing audits to cooperating third-party service providers and distributors. These audits assess Training sessions conducted by Guangzhou Walvax with total attendance nearly

factors such as business reputation any history of unfair competition incidents and adherence to our responsible marketing policies. (Domestic Marketing BU) for promotion teams:

This comprehensive approach ensures responsible marketing practices are maintained throughout the entire business chain.

200+ sessions 6000

59 602024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Sustainable Supply Chain

Supply Chain Management System Supplier Lifecycle Management

Walvax Biotechnology has implemented a comprehensive supply chain management system in compliance with relevant national

laws and regulations including the Law of the People's Republic of China on Invitation and Submission of Bids. The Company

has developed a suite of internal policies and implementation guidelines such as the Procurement Management System Supplier The Company maintains a transparent and open procurement policy primarily employing

Management Implementation Rules and Independent Bidding and Procurement Management Implementation Rules. In addition independent bidding and procurement methods complemented by various other procurement Selection

the Company has issued the Supplier Code of Conduct which applies to all suppliers within its global operations. The Company strategies. This approach ensures fairness impartiality and transparency throughout the and

is dedicated to fostering fair transparent and mutually beneficial relationships with its suppliers. The supplier management Admission procurement process thereby protecting suppliers' rights and interests.implementation rules govern the entire lifecycle of supplier relationships from selection and admission to evaluation maintenance A cross-functional evaluation team consisting of representatives from multiple departments

and exit. By treating SME partners equally the Company establishes a robust long-term communication framework with suppliers assesses potential suppliers. While product quality and service remain fundamental criteria the

through these guidelines. While placing product and service quality at the core the Company also closely monitors supplier team also considers suppliers' performance in areas such as human rights compliance ethical

performance in areas such as compliance and ethics environmental protection labor rights and occupational health and safety. conduct and environmental management.Through the development of a high-standard supply chain management system the Company seeks to safeguard the long-term

sustainable growth of both its own business and its supply chain partners.Supplier Classification: Suppliers are categorized into three tiers: qualified suppliers backup

suppliers and strategic partners. The Company implements comprehensive management

approaches tailored to each category including qualification reviews on-site audits remote

Total number of suppliers: with audits third-party audits and annual assessments. Annual evaluations are conducted

with classifications subject to dynamic adjustment based on factors such as the supplier's

486 474 located in China (including Hong geographical location procurement volume market competition material characteristics quality standards and ESG risk profile.

Kong Macao and Taiwan) Evaluation and

Management Regular Supplier Evaluation: Each year the Company establishes rigorous audit plans for all

admitted suppliers. These audits scrutinize suppliers' qualifications product and service quality

Number of suppliers with quality management system safety management capabilities environmental management practices and business ethics.

12 located overseas suppliers certification: The evaluation process employs various methods including document reviews questionnaires

sample quality assessments and on-site or remote audits. In situations where on-site audits are

185 impracticable due to force majeure the Company utilizes remote or third-party audits to maintain comprehensive oversight and mitigate supply chain risks thus ensuring a stable and reliable

supply chain. Identified issues are promptly communicated to suppliers following the audit with

Number of suppliers with occupational health and Number of suppliers with environmental management a requirement to develop and implement corrective action plans within specified timeframes.safety management system certification: system certification:

6171

If a supplier engages in non-compliant behavior fails to meet supply requirements or is unable

Exit to rectify identified deficiencies in accordance with audit standards the Company may disqualify

On-time payment rate for small and medium-sized Number of suppliers receiving ESG-related the supplier.enterprises: training annually:

100%31

61 622024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Sustainable Procurement

Walvax Biotechnology has established a Procurement Committee in accordance with its Procurement Management System to Supplier Quality Management

oversee and make decisions on significant supplier-related matters. The Company has also developed a comprehensive Supplier

Code of Conduct which addresses key areas such as compliance and business ethics quality management labor rights

occupational health and safety and environmental protection. On an annual basis the Company conducts a thorough assessment Walvax Biotechnology has implemented a comprehensive set of internal regulations and procedures for supplier

of potential risks in its supply chain including sustainability-related concerns. It continuously refines its management practices with management. These include the Supplier Management Implementation Rules Standard Operating Procedures for

a particular focus on quality risks while rigorously controlling ESG risks throughout the procurement process and supplier lifecycle. Supplier Management and Inspection Guidelines for Supplier Management. These documents clearly define critical

The implementation of sustainable supply chain initiatives is overseen by the Board's Sustainability Committee and is collaboratively aspects such as supplier qualification validity quality assessment methodologies and standards material quality issue

executed by relevant departments including procurement management and quality control across various operational sites to reporting annual evaluations and supplier audits. These measures enable effective evaluation of supplier quality

ensure strict adherence. status and provide standardized guidance for implementing a full lifecycle quality management system for suppliers.The Company mandates that all suppliers must be registered with relevant national authorities possess appropriate

Walvax Biotechnology is committed to upholding the Ten professional qualifications for their provided services or products and maintain a robust quality management system

Principles of the UN Global Compact and adhering to responsible compliant with current laws and regulations (e.g. certification systems equivalent to ISO or GMP standards). Walvax

supply chain management requirements. Guided by its Supplier enters into Quality Assurance Agreements with key strategic suppliers specifying requirements across six dimensions:

Code of Conduct the Company works closely with suppliers regulatory compliance quality standards logistics and transportation accompanying documentation batch

to build a reliable quality-assured and sustainable supply Walvax Biotechnology has joined requirements and service response. This multi-faceted approach reinforces supply chain quality management.chain. To enhance supplier capabilities the Company actively

promotes supplier development initiatives. In light of the the Supply Chain

distinctive characteristics of its various technology platforms

Walvax Biotechnology regularly invites suppliers to participate Branch of the China Supply Chain Quality Audits

in technical exchange sessions. These sessions allow suppliers Association for

to gain a thorough understanding of the Company's R&D and

production technologies quality standards and health safety and Vaccines where it serves In alignment with GMP system requirements and the Standard Operating Procedures for Supplier Management the

environmental requirements. Meanwhile the Company listens to Company' production entities develop annual supplier audit plans. These audits employ a variety of methods including

supplier feedback and offers tailored guidance working together as an Executive Council qualification assessments questionnaire surveys remote audits on-site inspections small sample quality evaluations

to leverage mutual strengths in addressing key challenges in Member and regular raw material quality checks to conduct comprehensive assessments of suppliers. Key suppliers undergo

production storage and logistics. Through multi-dimensional annual on-site audits or alternative forms of evaluation (remote audits third-party audits or questionnaire surveys)

dialogues the Company facilitates timely information exchange while major suppliers are subject to similar audits biennially. Dynamic audits are conducted in response to quality

on production needs product quality and policy interpretations issues or other anomalies. These audits encompass various aspects including quality management organizational

fostering mutual growth through open collaboration. structure and personnel facilities and equipment material management production processes quality control and

quality assurance. Each audit culminates in a detailed report. For suppliers with identified deficiencies a formal

process is initiated. They are required to complete a deficiency record form and submit a corrective action plan within

Risk Type Corresponding Measures seven days. This ensures that suppliers take prompt measures to address issues and meet compliance requirements

within a reasonable timeframe. Unqualified suppliers are removed from the approved list fostering a fair transparent

Standardize procurement procedures and minimize dispersed purchases within the same and high-quality supply chain.Management Risk product category to mitigate mismanagement risks associated with an excessive number of

suppliers.On-site Supplier Audit Process

Determine and control procurement costs through strategic negotiations and competitive bidding

Cost Risk processes. Avoid single-source procurement and high-cost situations to enhance company

efficiency and cost-effectiveness.Appoint Develop and Conduct the Prepare the Track and Supplier submits Verify completion

suppliers review the on-site audit audit report implement the corrective of supplier

Align practices with GMP system requirements and other relevant industry standards to establish audit plan corrective action report corrective

actions actions

quality agreements and maintain clear communication of quality requirements with suppliers.Quality Risk

Conduct regular qualification audits and on-site inspections of suppliers. Provide quality training

and facilitate technical cooperation and exchanges when necessary.Mandate all suppliers to sign an Anti-Commercial Bribery Agreement strengthen awareness Audit Type Number of Audits in 2024

Compliance and through ongoing education and training initiatives and conduct regular audits to ensure supplier

Ethical Risk compliance with the code of conduct. Perform due diligence project audits and compliance Remote audits 167 suppliers

checks on partners as required. Supplier Quality Audits

On-site audits 28 suppliers

Integrate sustainability requirements into the core of supply chain management. Clearly outline Third-party commissioned audits 9 suppliers

Environmental expectations for environmental management climate change response resource utilization

Health and Safety

and Labor Rights emission control prohibition of child labor and forced labor anti-discrimination practices and

Risks occupational health and safety in the Company's Supplier Code of Conduct. Actively promote

supplier compliance and encourage continuous improvement in these areas.

6364

Special Topic2024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Resilient Supply Chain

In 2024 Yuxi Walvax executed its audit plan with precision conducting annual evaluations of 103 suppliers

questionnaire surveys of 64 suppliers and on-site audits of 10 suppliers. The Company achieved a 100% pass Developing a resilient supply chain and safeguarding business continuity are paramount to the Company's sustainable supply

rate with all audited suppliers deemed compliant and effective maintaining their status as qualified suppliers. For chain strategy. We have implemented a sophisticated risk analysis model and assessment mechanism to conduct comprehensive

distributors the Company completed 8 on-site audits 3 remote audits and 21 document audits. evaluations of various supplier categories. This approach focuses on risk identification potential loss quantification and specific

mitigation strategies. By proactively refining our supply chain safeguards we effectively mitigate potential risks throughout the

supply network. In 2024 the Company maintained uninterrupted raw material supplies avoiding any production disruptions due to

Supply Chain Quality Training material shortages.In the realm of quality management the Company has established comprehensive supplier training management

protocols. The Quality Department working in tandem with relevant divisions develops annual training plans tailored Enhancing Supply Chain Contingency Plans Implementing Dual Sourcing Strategy

to various supplier categories. These initiatives aim to ensure suppliers gain a thorough understanding of the technical

specifications and quality standards required for the Company's R&D products. Leveraging supplier evaluation

outcomes and insights gleaned from audits the Company provides targeted guidance and recommendations thereby Our supply chain risk assessments are grounded in the To counteract upstream supply disruption risks stemming from

fostering holistic improvements in suppliers' quality management systems. When quality concerns emerge during criticality of materials to production processes and the climatic geographical or regulatory factors and to ensure

routine procurement processes the Company employs a continuous improvement methodology encompassing probability of supply interruptions. We develop tailored production continuity we adhere to principles of "compliance

"feedback - quality root cause analysis meetings - solution formulation - preventive measures implementation." This safeguarding strategies that consider the severity of impact stability timeliness cost-effectiveness and strategic

proactive approach engages suppliers in collaborative problem-solving for product quality and safety issues ultimately on production activities the likelihood of supply delays and importance." Our management policy mandates at least two

enhancing their product quality and technical service capabilities. Throughout the reporting period the Company's the detectability of such disruptions. High- and medium-risk suppliers for each material. We have diversified our key raw

supplier quality assurance training program successfully encompassed key suppliers across all categories. materials are subject to intensified monitoring to ensure timely material supplier base across different regions securing

availability for commercial production projects. a minimum of two domestic and international suppliers for

critical materials while also identifying backup suppliers. We

Case Walvax Biotechnology 2024 Online Supplier Training Conference have established preventive measures to mitigate supply

delays and over-dependence on single high-cost suppliers

thus further reducing production vulnerabilities in the supply

In December 2024 to reinforce the quality assurance and regulatory compliance of raw and auxiliary materials chain.supply the Company's Supply Chain Center in collaboration with the Audit and Inspection Department and Quality

Management Center organized the Walvax Biotechnology 2024 Online Supplier Training Conference for key material

suppliers. This conference grounded in the principles of the Vaccine Administration Law of the People's Republic of Maintaining Stable Partnerships Establishing Safety Stock Levels

China and GMP regulations offered comprehensive insights into supplier quality management protocols supplier

selection criteria and methodologies for supplier evaluation. The symposium delineated explicit quality responsibilities

and requirements for suppliers emphasizing the imperative to ensure document authenticity and legality maintain To hedge against price volatility and ensure superior after- We have implemented inventory management systems for

rigorous product quality control facilitate timely and precise supply and guarantee safe delivery. Furthermore the sales service we engage in annual agreements with suppliers production-critical materials including raw materials and

critical nature of prompt information exchange was underscored to maintain quality control throughout the entire supply based on long-term collaboration principles or establish key consumables featuring safety stock alert mechanisms.chain process. strategic alliances. This approach prioritizes the procurement These systems enable real-time monitoring and dynamic

of scarce materials and minimizes distribution risks. management of material inventory data. Our risk mitigation

strategies encompass early demand forecasting and strategic

stockpiling with particular emphasis on enhancing early

warning controls and increasing inventory levels for critical

materials.Timely Communication and Information Sharing Promoting Local Sourcing and Domestic

Substitution

We have establ ished mult i -channel communicat ion We conduct comprehensive assessments of import material

platforms with suppliers including email telephone video supply risks considering historical delivery performance

conferencing and in-person meetings. A Delivery Warning and inventory levels. We actively explore opportunities for

Notification protocol has been implemented initiating supplier domestic substitutes and local sourcing particularly for critical

engagement at least one month prior to contractual delivery materials evaluating technical specifications commercial

dates to assess readiness. We provide formal monthly written viability production capacity and accessibility to enhance

feedback to suppliers on delivery performance facilitating our supply chain resilience. During the reporting period Yuxi

continuous improvement in on-time delivery. Proactive Zerun Walvax Biotechnology' subsidiary achieved 100%

communication with suppliers addresses potential issues domestic substitution for single-use sterile storage bags

identified during monitoring such as supply shortfalls. We with ongoing initiatives to localize the sourcing of filters and

promptly arrange meetings with suppliers experiencing consumables.constraints to collaboratively develop solutions ensuring

optimal inventory management and supply stability.

6566

Special TopicCommunity

Co-development

Shared Health

Benefits

Products exported to

22 countries/regions

Annual exports to developing countries/regions:

exceeding

9 million doses

Annual charitable donations:

RMB 5.1069 million2024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Health Accessibility

Governance

The WHO recognizes immunization as one of the most effective and cost-efficient health interventions. Health accessibility is a

strategic priority for Walvax Biotechnology. The Company's Board of Directors bears ultimate responsibility for the concept goals

strategies structure and implementation of health accessibility initiatives. The Sustainable Development Committee operating

under the Board comprehensively oversees the advancement of health accessibility strategies while the Health Accessibility

Working Group is tasked with formulating and implementing action plans. The Company has also established key policies including The inaugural China Vaccine Conference was held

the Walvax Biotechnology Co. Ltd. Health Accessibility Policy Walvax Biotechnology Co. Ltd. Fair Pricing Policy and Walvax in Kunming where Li Yunchun Chairman of Walvax The Company was invited to attend the 11th Thai National

Biotechnology Co. Ltd. Statement on Addressing Antimicrobial Resistance. These policies integrate relevant requirements into Biotechnology delivered a keynote speech Vaccine Conference and participate in roundtable discussions

company operations aligning with the UN SDG of "Good Health and Well-being."

Hold ultimate responsibility for the Company's health accessibility concept goals strategies

Board of Directors

structure and implementation.Sustainable Development Review health accessibility strategies and goals approve implementation plans promote goal

Committee achievement and conduct regular reviews.Formulate execute evaluate and optimize health accessibility implementation plans

Health Accessibility coordinating across departments to advance health accessibility goals; Report progress and

Working Group achievements to the Sustainable Development Committee ensuring alignment with health

accessibility objectives.Strategy and Approach

Walvax Biotechnology is committed to the principle of "Help Everyone Live a Healthy Life" and consistently leverages innovation

as its driver and high-quality vaccine products as its foundation. It accelerates vaccine R&D processes while promoting local

cooperation enhancing product accessibility and affordability and strengthening public health capabilities in operational areas. The Company took part in organizing and attending global exhibitions held in Milan Italy and Riyadh Saudi Arabia

Through these efforts a more robust and sustainable business model has been in place to extend the benefits of vaccine products

to a broader population. The Company has developed a five-year health accessibility strategy. By fully utilizing our R&D and product

advantages through diversified business operations and continuous international expansion we aim to better serve global public

health initiatives and improve health accessibility worldwide.Annual overseas business revenue reached RMB 570 million representing a 98% increase from 2023 and

emerging as a new growth driver.Expanding Vaccine Coverage to More Developing Countries

Walvax Biotechnology continually expands its international market presence through direct operations and strategic licensing

partnerships. Our business now spans emerging markets and developing countries across Southeast Asia South Asia Central Products exported to a cumulative total of 22 countries/regions with registration processes ongoing in 19 countries

Asia Latin America and Africa consistently delivering high-quality cost-effective and accessible vaccine products to developing and 16 valid registration certificates (including all dosage forms); inaugural exports to Afghanistan and Burkina Faso.nations. In 2024 the Company maintained its focus on low- and middle-income countries in Asia Africa and Latin America. We

prioritized meeting public market demands for pneumococcal meningococcal and cervical cancer vaccines in these regions while

also addressing emergency procurement needs and private market opportunities. For countries seeking to develop local capabilities Cumulative exports to developing countries/regions surpassed 55 million doses with over 9 million doses exported

we offered technical cooperation services to support the in 2024 alone achieving a 100% vaccine delivery rate.establishment of self-reliant vaccine production facilities

collaboratively addressing disease-related challenges.Throughout 2024 the Company actively participated in

numerous international conferences and events organized PCV13 vaccine exported for the first time to Indonesia the Philippines and India; signed a PCV13 cooperation

by UN agencies including WHO UNICEF and PAHO agreement with Mexico marking our first contract in the Latin American market.demonstrating our commitment to providing affordable

high-quality vaccines to low- and middle-income countries.Furthermore the International Cooperation Division of the

Yunnan Provincial People's Government Foreign Affairs Office Successful commercial production of the bivalent HPV vaccine project continuing to secure bids for HPV vaccine

established a collaborative mechanism with the Company procurement in multiple domestic provinces; the bivalent HPV vaccine obtained WHO-PQ and achieved its overseas

aiming to leverage strong government-enterprise cooperation registration in Indonesia and Nepal laying the foundation for global promotion of our vaccine products.Partnership established with Mexican partner for PCV13

to promote our international market expansion. marking the first contract in the Latin American market.

69 702024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Enhancing Local Production Capabilities Updating the Vaccine Supply Chain

Localized production enables developing countries to establish self-sufficient vaccine industries. For years Walvax Biotechnology Walvax Biotechnology constantly improves its vaccine supply chain empowering local suppliers to enhance their capabilities in

has actively promoted local vaccine production fostering the development of regional vaccine industry chains and working to product transportation and storage. This approach ensures a compliant safe and efficient supply chain that guarantees vaccine

reduce vaccine costs for populations in emerging markets and developing countries. The Company has explored localization models safety and accessibility.with countries including Indonesia Morocco and Egypt offering tailored solutions. In 2024 several technology transfer projects

made significant progress such as the Indonesian and Moroccan PCV13 projects. These key projects involved localizing bulk filling The Company adopts a "trunk transportation + regional warehousing + regional distribution" logistics

and testing technologies with expert staff and project managers deployed for on-site guidance. Furthermore the Company engaged model. Each product is fully traceable via an electronic supervision code ensuring the timeliness and

in discussions with international organizations like PATH to promote vaccine localization in low- and middle-income countries aiming safety of vaccine delivery and achieving zero complaints related to supply chain security.to bolster their capacity to address public health challenges. In the Through the "regional warehousing + regional distribution" model branch distributors deliver

domestic vaccines from regional warehouses to counties and districts across the country. This expands

market delivery coverage and ensures timely vaccine access in remote areas thereby enhancing vaccine

accessibility.Case Empowering Egypt's Local Vaccine Production Capabilities The Company uses a comprehensive vaccine tracking system to achieve end-to-end visibility from

production to final delivery further enhancing vaccine safety.In November 2024 Walvax Biotechnology participated in the inaugural conference of the "Egyptian Vaccine Manufacturers Alliance"

signing memoranda of understanding with two Egyptian pharmaceutical companies for localized vaccine production. Leveraging

its extensive technology transfer expertise the Company will collaborate on advancing the local production of Group A and Group The Company defines transportation and storage protocols prior to shipment with real-time

C meningococcal conjugate vaccine PCV13 and bivalent HPV vaccine. It will assist in establishing production systems provide temperature monitoring throughout the process using advanced temperature recorders. During

technical innovation support offer guidance on production technology and quality control and deliver solutions for issues related In overseas supply and delivery while prioritizing product safety and efficacy we optimize the selection of export

to samples reagents equipment and raw materials. This partnership aims to equip local manufacturers with advanced vaccine ports airlines and routes to improve supply efficiency. Delivery solutions are refined to minimize

production technologies fostering Egypt's vaccine self-sufficiency and sustainable industrial growth. transportation costs and enhance supply chain reliability while maintaining optimal transport conditions.Advancing Post-Marketing Pharmacovigilance

Walvax Biotechnology has established a dedicated Vaccine Safety Committee to advance its life-cycle pharmacovigilance system.This system meticulously collects monitors identifies and evaluates adverse reactions following vaccination globally ensuring

vaccine safety throughout the product lifecycle. Recognizing the potential resource and technical limitations in developing countries

the Company collaborates closely with local partners on pharmacovigilance while expanding its international business. This

approach supports developing countries in establishing comprehensive pharmacovigilance systems ensuring thorough monitoring

The Company signed memorandums of understanding with two Egyptian pharmaceutical firms to advance local vaccine production and assessment of vaccine safety post-marketing in overseas countries. Consequently this allows for timely and appropriate

measures to address safety concerns safeguarding the health and safety of vaccinated populations.Before market launch distributors are required to complete a comprehensive Pharmacovigilance Service Provider

Questionnaire. A professional team conducts rigorous qualification audits of service providers focusing on their

Case Joint Establishment of an Innovative Vaccine Manufacturing Base in Southeast Asia capacity to conduct pharmacovigilance activities in terms of personnel equipment resources and management

systems. Identified issues are promptly addressed to ensure compliance with internal and local pharmacovigilance

standards. Safety Data Exchange Agreements (SDEAs) are signed with distributors to establish robust

Indonesia has been a key focus in Walvax Biotechnology's internationalization strategy for over a decade. Since 2021 the Company communication mechanisms and work systems between pharmacovigilance teams strengthening joint monitoring

has initiated localization projects with Indonesian pharmaceutical firms for PCV13 bivalent HPV vaccines etc. The technology efforts.transfer of polysaccharide/conjugate vaccine platforms and recombinant protein vaccine platforms has progressed steadily. This

collaboration supports Indonesia in developing an integrated platform for innovative vaccine R&D and production along with a

robust evaluation system. The goal is to create a global center for cutting-edge vaccine R&D and production enhance Indonesia's After the market launch dedicated pharmacovigilance officers are appointed to work with local partners.vaccine supply security and expand the reach of "Made in Indonesia" vaccines across ASEAN and Muslim countries thereby Throughout the product lifecycle these teams conduct continuous in-depth analysis evaluation and information

contributing to global health. In 2024 the Company successfully facilitated the technology transfer for PCV13 to its Indonesian exchange of collected safety data jointly enhancing risk control and ensuring all data and reports comply with

partner. This localized product not only received market approval in Indonesia but also obtained Halal certification from MUI a local and international pharmacovigilance standards. In 2024 we exchanged safety data 151 times with overseas

globally recognized authority in Halal certification. distribution partners with no new safety risk signals related to vaccine use detected demonstrating excellent safety

performance.The Company advances both internal and external pharmacovigilance audits and supports developing countries

in establishing robust vaccine safety monitoring systems. In 2024 comprehensive pharmacovigilance audits were

conducted on three overseas distributors covering organizational structure PV systems personnel qualifications

and PV policies and procedures. These audits meticulously evaluated the effectiveness of pharmacovigilance

systems and identified areas for improvement helping local companies develop mature pharmacovigilance

management systems and mechanisms. These efforts have contributed to assisting developing countries in

enhancing their post-marketing pharmacovigilance capabilities.

71 722024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Increasing Product Affordability Boosting Public Health Capabilities

In an effort to foster a fair and equitable marketing environment and extend the benefits of high-quality vaccine products to a wider Walvax Biotechnology consistently implements a range of initiatives including professional vaccine training public health education

population Walvax Biotechnology has developed the Walvax Biotechnology Co. Ltd. Fair Pricing Policy. In alignment with the World and charitable healthcare activities. The Company actively donates vaccines to developing countries and remote underdeveloped

Health Organization's guidelines on fair pricing the Company adopts a value-based and transparent pricing strategy that balances regions striving to enhance public health capabilities in areas where its vaccine products are utilized. For a comprehensive overview

product quality with affordability. Sustainable pricing models are explored across various markets with pricing policies extended to of our health-related charitable activities please refer to the "Heartwarming Charity" section.downstream distributors to ensure consistent implementation and improved product accessibility. Our comprehensive pricing model

takes into account global market demands considering factors such as vaccine research and production costs market supply and

demand dynamics and pricing of comparable vaccine products. We employ a tiered pricing strategy offering more favorable rates

to economically disadvantaged countries and populations thereby extending the benefits of vaccine innovation to underserved In partnership with the China Primary Health Care Foundation Walvax Biotechnology has established the "Live Healthy

regions. Detailed information on our fair pricing principles can be found in the Walvax Biotechnology Co. Ltd. Fair Pricing Policy and Public Welfare Fund." This initiative provides financial support and vaccine donations to remote areas with the aim of

the Walvax Biotechnology Co. Ltd. 2023 Sustainability & ESG and Social Responsibility Report. reducing the incidence and mortality rates of relevant diseases and improving overall health standards in rural regions.The "Live Healthy Public Welfare Fund" is dedicated to: 1) Supporting targeted vaccination programs enhancing medical

service capabilities and conducting scientific education and awareness campaigns; 2) Facilitating medical research

Domestic Market establishing scientific research projects disseminating research outcomes and organizing relevant academic exchanges;

3) Sponsoring training programs for specialized disease control management personnel and grassroots public health

In the domestic market the Company complies with relevant legal regulations ensuring fair and reasonable pricing for its high- workers; 4) Supporting the enhancement and improvement of service capabilities in medical institutions.quality vaccines with consistent pricing nationwide. Prices are publicly available and transparent across all regions accessible via

provincial-level platforms. We strive to balance scale and efficiency offering vaccine products at competitive prices. For successful

bid products we strictly adhere to regulations by promptly publishing information on the central government procurement website.As of the end of the reporting period two of our marketed vaccine products are included in the national immunization program

with procurement prices regulated and guided by the state provided free of charge to residents. In 2024 the procurement volume

for these two immunization program vaccines exceeded 7.5 million doses. Moreover we actively address the needs of specific Strengthening Healthcare Worker Training

populations by participating in various local welfare procurement projects and offering substantial corporate concessions. Currently

both our bivalent HPV vaccine and 23-valent pneumococcal vaccine have secured bids in multiple government procurement The Company tailors its training programs and communication efforts to meet local development needs. Our initiatives include

projects. Furthermore we monitor end-of-supply chain prices to prevent price gouging and welcome public scrutiny. delivering specialized training to disease control centers that utilize our vaccine products cultivating local talent in vaccine

production and quality control providing professional development opportunities for local vaccine industry professionals and

Our self-developed bivalent HPV vaccine was initially priced at RMB 329 per dose at launch. Compared to the imported bivalent conducting training and knowledge-sharing sessions for local agents. These efforts are aimed at elevating medical service standards

HPV vaccine already on the market this can result in savings of approximately RMB 812 for a complete 3-dose regimen. In 2024 in developing countries.the price of this vaccine in some regions was reduced by about 40.43% from our initial recommended price potentially saving

approximately RMB 399 for a complete 3-dose regimen. This allows more people to access equally safe and effective high-quality

vaccines at a lower cost.We have conducted comprehensive professional training on disease burden product usage and product data for

vaccine industry professionals in various countries including Indonesia Thailand the Philippines Belarus Egypt

Overseas Markets Chile Malaysia and Saudi Arabia. These programs are designed to enhance the expertise of relevant personnel.In overseas markets the Company adheres to local pricing regulations and tax policies and has established the Walvax

Biotechnology Co. Ltd. Overseas Sales Pricing Management Measures. We have developed accessible pricing strategies tailored As the sponsor of the post-market clinical trial for PCV13 in Indonesia we provide ongoing structured training

to the needs and economic development levels of different countries or regions. Our approach considers factors such as national on research protocols procedures operations and management. This training is targeted at on-site researchers

or regional economic development local vaccine production and supply public healthcare investment individual healthcare (medical professionals responsible for biological sample collection adverse reaction monitoring and case tracking)

costs vaccine procurement budgets and policies and the overall benefits of vaccines to populations and healthcare systems. We and local research partners (including research organizations and local agents). Our goal is to enhance the

implement differentiated pricing models and tiered strategies. While ensuring necessary profit margins product quality and stable capabilities of disease prevention and control personnel in Indonesia with a particular focus on Jakarta and Bali.supply we offer more favorable vaccine prices to economically disadvantaged countries and populations. For instance we provide

vaccines at lower prices to low-income African countries such as Mauritania and Burkina Faso compared to other international

markets.In 2024 we further strengthened our

The Company recognizes the vital role that centralized procurement plays in reducing costs improving vaccination coverage and collaboration with the Chinese Preventive

advancing public health. To this end we actively promote the inclusion of our vaccine products in local immunization programs. As of Med ic ine Assoc ia t i on . We jo in t l y

the reporting period's end our products have been successfully incorporated into the immunization programs of Morocco and Egypt. organized four leadership development

Concurrently we are expanding cooperation with other countries and regions strengthening vaccine product certifications and training sessions for district and county-

supplying vaccines through international organizations like PAHO and UNICEF. We are also working to reduce minimum purchase level disease control institutions at

quantity requirements for developing country customers aiming to make our vaccine products accessible to a broader range of our Innovation and Education Science

populations in need. Popularization Base benefiting nearly

500 participants. The comprehensive

curriculum covered various aspects

including public health policies vaccine

technologies and legal interpretations

aiming to deepen local understanding and

knowledge of relevant vaccine products.

73 742024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Public Education

The Company collaborates closely with local health institutions skills. In partnership with non-governmental organizations

to provide comprehensive vaccine education. Information we have developed tailored vaccine training programs for

is provided to recipients on how vaccines work differences specific demographic groups such as expectant mothers and

between various types of vaccines and potential side effects. individuals with chronic conditions. Through this multi-tiered

To broaden public reach we utilize diverse media platforms approach to vaccine education we strive to elevate society's

conduct vaccine knowledge seminars and organize forum overall understanding of vaccines and contribute to public

events. These initiatives aim to disseminate both fundamental health protection. During the reporting period we organized 16

vaccine information and cutting-edge epidemiological insights. national academic conferences 53 provincial-level academic

We regularly invite experts to address public concerns conferences and approximately 6000 other conferences

about vaccines thereby enhancing awareness of disease related to disease prevention and control. Additionally we

prevention and promoting individual health management conducted 120 consumer education events.Vaccine Donations

In 2020 the World Health Organization released the Global In response to the Healthy China Initiative 2030 and the

Strategy to Accelerate the Elimination of Cervical Cancer. Action Plan for Accelerating the Elimination of Cervical Cancer Impact Risk and Opportunity Management

That same year at the Gavi Pledging Meeting and the Global (2023-2030) the Company launched the "HPV Vaccine Public

Vaccine Summit Walvax Biotechnology made a solemn Welfare Donation Project" in 2024. This initiative involves Walvax Biotechnology consistently monitors domestic and international macroeconomic trends policy developments and industry

commitment: upon receiving WHO-PQ for its bivalent HPV developing a comprehensive and sustainable HPV vaccine updates. The Company maintains ongoing tracking and analysis of emerging technologies that could potentially influence vaccine

vaccine the Company would allocate more than half of its donation plan with the goal of donating over 160000 doses of industry development new product creation and iteration. By keeping pace with the latest product and technological advancements

production capacity to fulfill Gavi's procurement needs. Gavi is bivalent HPV vaccine to over 10 provinces and municipalities in the sector the Company has gradually established and improved its procedures for identifying assessing controlling monitoring

an international organization dedicated to improving access to across China including Henan Hubei Jiangxi Shandong and improving strategic risks. This approach enables us to clearly comprehend the risks and opportunities associated with health

vaccines for children in low-income countries. This commitment Shaanxi Sichuan Tianjin and Yunnan. The project aims to accessibility issues allowing us to continuously optimize promptly adjust and substantially enhance our risk control strategies and

aligns with Gavi's 5.0 strategic plan which aims to benefit 84 reduce the financial burden of cervical cancer vaccination for measures thereby ensuring the effectiveness and adaptability of our risk management efforts.million females aged 9-14 globally. In August 2024 our bivalent eligible women in these areas. Furthermore in collaboration

HPV vaccine received WHO-PQ marking a significant step with the Wu Lien-teh Public Foundation we initiated the "China

towards contributing to the global effort to eliminate cervical Low Health Resource Areas Cervical Cancer Elimination Analysis of Risks and Opportunities in Health Accessibility Issues Response Strategies

cancer. The Company is actively exploring international Demonstration Project". In 2024 Yuxi Zerun donated about

vaccine donation channels. In 2024 we participated in the 14000 doses of bivalent HPV vaccine to areas with limited Risks ● Vigilantly monitor policy developments regularly assess

bidding process for the Chinese government's vaccine aid health resources aiming to improve health standards in rural the impact of regulatory changes on company operations ● Policy risks (The domestic pharmaceutical industry is

project to Afghanistan and continue to monitor vaccine aid and areas. transitioning through industrial restructuring; regulatory and proactively foster collaborative relationships with

donation opportunities for other countries. changes may impact corporate R&D production and sales; regulatory authorities industry associations and

compliance challenges emerge in overseas markets) international organizations to ensure compliance while

Mitigating Antibiotic Resistance Risks advocating for supportive policies.● Market and technological r isks (Competit ive market

●

pressures R&D pipeline homogenization technological Maintain a dual-focus strategy on "technology & market" Walvax Biotechnology recognizes antimicrobial resistance by bacterial infections thereby significantly reducing the need

obsolescence etc.) aligning with the vaccine industry's future trajectory "from (AMR) as one of the major threats to global public health. for antibiotics in clinical settings. Our independently developed pediatric to adult prevention to treatment and population-

Multiple factors have contributed to the decreased sensitivity PCV13 has emerged as the world's second and China's first ● Natural risks (Vaccine demand fluctuations due to disease wide to personalized care." Implement a development

to antimicrobial drugs among patient populations presenting domestically developed product of its kind. Three years post- epidemic trends raw material supply chain vulnerabilities model that balances in-house research collaborative

significant challenges for clinical treatment. As a high- launch studies have demonstrated that this vaccine provides etc.) partnerships and strategic acquisitions concentrating

tech biopharmaceutical company specializing in the R&D robust long-term immunity across all age groups with a resources on accelerat ing key vaccine product

production and sale of human vaccines the Company low incidence of fever and an excellent safety profile. In our ● Management and operat ional r isks (Qual i ty control

advocates for the judicious and appropriate use of antibiotics investments in vaccine development at other laboratories we challenges supply chain disruptions cold chain transportation

development and fostering new quality productive forces.and other antimicrobial drugs. Our strategy consistently continue to prioritize strategies that minimize antibiotic use. issues talent acquisition and retention difficulties etc.) ● Steadily enhance business continuity planning and bolster

prioritizes vaccine categories that reduce antibiotic use while For more comprehensive information on our approach to AMR product safety and quality control systems. Evaluate

also focusing on the development of innovative vaccines. please refer to the Walvax Biotechnology Co. Ltd. Statement and refine risk control measures to improve the safety

We aim to serve human health with cutting-edge vaccine on Addressing Antimicrobial Resistance. Opportunities efficacy and quality assurance of our vaccine products

technologies and superior products while addressing the AMR ● Substantial unmet needs persist in the global vaccine sector; thereby strengthening market confidence.threat through groundbreaking solutions. Furthermore the Company has implemented a specialized government initiatives are actively promoting innovation and ●

AMR education and training program to enhance employee Actively explore innovative marketing approaches biopharmaceutical industry growth presenting significant

Bacterial vaccines are a cornerstone of Walvax Biotechnology's awareness of antibiotic resistance internally. Externally we enhance academic partnerships and improve post-expansion potential

product portfolio. Since its establishment the Company leverage various channels including official WeChat accounts tender and after-sales support. Capitalize on global

has maintained a dedicated focus on the discovery and websites academic conferences and vaccine recipient ● Breakthroughs in disruptive technologies such as mRNA market opportunities through flexible and effective

development of vaccines to combat infectious diseases. As education to bolster AMR awareness among vaccine users gene editing synthetic biology artificial intelligence and big strategies including tailored country-specific approaches

of the end of 2024 the Company has 7 approved bacterial and healthcare professionals. We also actively collaborate data are propelling high-quality industry development targeted coverage in key regions of core markets

vaccine products on the market including pneumococcal with governments regulatory bodies manufacturers and technology transfer initiatives and pursuit of international

meningococcal and Haemophilus influenzae type b vaccines. healthcare providers to forge joint commitments and implement certifications to expand our global footprint and better

These bacterial vaccines effectively prevent diseases caused collective actions in tackling AMR challenges. contribute to worldwide public health efforts.

75 762024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Indicators and Targets Case "Baby-Friendly Initiative - Discharge Health Guidance from Baby-Friendly Hospitals"

Project

Indicators and Targets 2024 Achievement Status Since 2023 Walvax Biotechnology has donated a total of RMB 5.45 million to the "Baby-Friendly Initiative - Discharge Health

Guidance from Baby-Friendly Hospitals" public welfare project jointly organized by the Chinese Preventive Medicine Association

Annua l expans ion in to one new low- or Target achieved. Exports successfully expanded into two new low- and and the Chinese Red Cross Foundation. This donation supports professional training for healthcare workers and health education

middle-income country for exports with active middle-income countries. We actively engaged in vaccine public procurement for inpatient mothers and their families. Through large-scale training sessions for Baby-Friendly Hospitals guided WeChat support

participation in public market procurement across programs in countries such as Egypt and Algeria. Overseas markets groups for mothers and expert health advice on immunization for infants the project aims to enhance maternal and child health

various nations maintained robust growth trajectories. services and increase families' awareness of crucial health practices. These efforts align with the Healthy China Initiative 2030.In 2024 the project successfully conducted 7 events focusing primarily on breastfeeding and immunization. These sessions

Target achieved. In 2024 three technology transfer projects were successfully shared best practices related to the "Baby-Friendly Initiative" and provided skill enhancement training for various levels of hospital

Proact ive promotion of local ized vaccine advanced. We collaborated on developing vaccine evaluation systems in China and Indonesia. The localized PCV13 product in Indonesia received personnel reaching over 1000 participants.production fostering local vaccine industry chain

development and facilitating vaccine industry market approval and secured MUI Halal certification. Additionally memoranda

advancements in developing countries/regions of understanding for local vaccine production were signed with two Egyptian pharmaceutical companies contributing to Egypt's vaccine self-sufficiency

and sustainable industry growth.Target achieved. Our two national immunization program vaccines are

procured through unified bidding by the national disease control system and

Ongoing enhancement of partnerships with are provided free of charge to residents. In 2024 the bid volume exceeded

developing country governments and global 7.5 million doses. Our self-developed bivalent HPV vaccine has won bids

health organizations with active involvement in multiple government welfare procurement projects supporting the Action

in multiple national immunization programs Plan for Accelerating the Elimination of Cervical Cancer (2023-2030). The

expanded immunization initiatives and other 13-valent pneumococcal conjugate vaccine has been included in Morocco's

heal th capaci ty development pro jects in Expanded Program on Immunization (EPI) and is being supplied steadily.developing nations For seven consecutive years we have consistently delivered Group A and

C meningococcal polysaccharide vaccines to Egyptian customers for their

National EPI.Target achieved. Our products have now reached 22 countries/regions. To bolster professional capabilities in maternal and child health services the project delivered a series of specialized

Accelerat ion of research and product ion PCV13 made its debut in Indonesia the Philippines and India. A landmark

capabilities for multiple high-impact products to PCV13 cooperation agreement was signed with Mexico marking our first training sessions for obstetrics and pediatrics staff. These covered breastfeeding techniques precautions common

ensure a consistent supply of high-quality cost- contract in the Latin American market. Notably the bivalent HPV vaccine issues and their solutions as well as immunization principles procedures and contraindications. By engaging

effective and sustainable vaccine varieties to Walrinvax obtained WHO-PQ in August 2024 paving the way for its entry authoritative experts and employing diverse teaching methods including case studies and simulations the project

low- and middle-income countries into the international market and extending its benefits to a broader global equipped healthcare providers with the skills to offer enhanced care to mothers and infants.population.To improve health literacy among families the project organized various educational activities for inpatient mothers

and their relatives. These included targeted lectures distribution of informative materials and personalized

consultations effectively communicating the importance and correct methods of breastfeeding and immunization to

Heartwarming Charity each family ensuring every infant can thrive with proper health knowledge.While pursuing its own growth Walvax Biotechnology

remains steadfast in its commitment to social responsibility.The Company proactively explores philanthropic models that

resonate with contemporary societal needs viewing each Total charitable donations: Case "Rose Action - Adolescent Health Education" Charitable Initiative

project as an opportunity for shared community development.We endeavor to extend warmth and care to those in need RMB million Since 2022 Walvax Biotechnology has been collaborating

safeguarding public health and well-being. In 2024 we 5.1069 with the China Women's Development Foundation to enhance

continued to advance our health education initiatives and cervical health awareness among adolescent girls and their

vaccine donation programs reinforcing our dedication to families aiming to advance cervical cancer prevention and

protecting public health. reduce its incidence. To date we have donated RMB 11.5

million to support the "Rose Action - Adolescent Health

Education Charitable Initiative" and the "Caring for Hospital

Nurses Charitable Initiative". In 2024 the project distributed

over 330000 "Rose Action" promotional manuals conducted

43 cervical health knowledge lectures for students and

distributed over 7000 "Rose Action" care packages for

educators.

77 78Empowering

People

Energizing the

Workplace

Total number of employees

1932

Proportion of female employees in senior

management

43.24%

Employee training coverage

100%2024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Inclusive and Diverse Diversity and equal opportunities

Workplace Total number of employees Walvax Biotechnology upholds the principles of diversity equity and inclusion (DEI) and fully respects the diversity and individuality

Walvax Biotechnology values the recruitment of diverse talent 1932 of its employees. The Company has formulated the Walvax Biotechnology Co. Ltd. Employee Diversity Policy and actively fosters

and is committed to building a high-caliber inclusive and diverse a diverse and inclusive corporate culture. Diversity-related training sessions are regularly conducted for all employees and DEI

professional workforce through an open and inclusive talent principles are embedded into recruitment employment management and training practices to ensure equal opportunities and Female

philosophy. The Company fosters a workplace environment employees broad career development platforms for every employee. The senior management team oversees the development of a diverse and

characterized by equality openness and harmony contributing inclusive culture as well as the performance of DEI-related initiatives. Diversity and inclusion indicators are integrated into internal 1070

to a positive and healthy organizational ecosystem. surveys and evaluations to facilitate targeted improvements in related practices. Number of

employees

Compliant Employment by gender Male employees

Walvax Biotechnology adheres to the principles of equality 862

respect fairness and justice in employment practices. The

Company strictly complies with international human rights Entry-level employees

standards including the International Bill of Human Rights Proportion of female employees Proportion of newly hired female employees Proportion of minority employees Senior

the International Labour Conventions the ILO Declaration on 1729 Number of management

Fundamental Principles and Rights at Work the UN Guiding employees by

3755.38%50.75%20.08%

Principles on Business and Human Rights and the Ten hierarchical

Principles of the United Nations Global Compact. It also abides level Middle

by relevant national laws and regulations such as the Labor management

Law of the People's Republic of China the Labor Contract Law 166 Proportion of employees with Proportion of female employees among Proportion of female employees in

of the People's Republic of China and the Law of the People's Employees disabilities the backup management talent middle management

Republic of China on the Protection of Labor Rights and aged 31-50 Employees aged

Interests. To ensure compliance and standardize employment

1044 51 and aboveprocedures the Company has developed internal policies Number of 0.1% 52.73% 53.01%

such as the Walvax Recruitment Management Measures 38employees

and the Walvax Labor Contract Administration Regulations. by age Employees

These policies regulate the entire recruitment and employment aged 30 and Proportion of female employees in Proportion of female employees in

process emphasizing capability-based candidate evaluation and below senior management STEM positions

job matching. Discrimination on the basis of gender educational 850

background age ethnicity family status religious belief or 43.24% 59.3%

cultural background is strictly prohibited. The Company forbids Overseas

child labor forced labor and all forms of employment that Chinese employees

violate laws or policies as well as any form of discrimination employees Number of

or harassment. Additionally it strictly prohibits the unlawful (including employees 4

employees from

collection of candidates' personal information thereby promoting Hong Kong by region

fair and equitable employment opportunities. Macao and Taiwan)

1928 Recruitment and Hiring

The Company regularly conducts strict audits on its recruitment

and hiring processes to ensure compliance with laws and Employees Employees with graduate/

regulations at every stage. We encourage employees to with bachelor's MBA degree or Walvax Biotechnology actively recruits and attracts talent from diverse backgrounds. All job postings are required to be based solely degree

report any actions that violate company policies or regulations above on job qualifications and competency requirements with strictly no discriminatory content of any kind. We encourage individuals Number of

through public channels. All reported violations will be carefully 760 from all walks of life—regardless of their education work experience nationality gender age marital or parental status ethnicity employees by 221

investigated and handled with seriousness by the Company. educational or religion—to apply and join our team. We evaluate candidates strictly according to the job requirements and competency criteria.When appropriate corrective actions will be taken which may level Employees with Through the implementation of efficient processes and mechanisms we ensure that candidates from diverse backgrounds are

include but are not limited to warnings reprimands formal associate degree treated fairly and impartially during the recruitment process avoiding any potential discrimination or bias. This helps create a diverse

disciplinary actions or termination of the employment contract. or below inclusive and equitable workplace environment for our employees. During the reporting period female employees accounted for

During the reporting period Walvax Biotechnology did not 55.38% of the workforce ethnic minority employees made up 20.08% and there were four foreign nationals employed. Overall the 951

experience any incidents involving child labor or forced labor. Company's workforce structure continues to demonstrate a trend toward greater diversity.Diversity Training and Activities

Number of employees recruited during Employee labor contract Social insurance Employee voluntary To support its internationalization strategy Walvax Biotechnology integrates the concept of diversity into its corporate culture. In

the reporting period signing rate coverage rate turnover rate alignment with the Walvax Biotechnology Co. Ltd. Employee Diversity Policy the Company organizes annual diversity training

programs covering all employees along with a series of initiatives including theme-based seminars on diversity mental health

67 100% 100% 7.24% lectures diversity workshops and offline events. These initiatives aim to help employees understand internalize and comply with relevant principles and policies while fostering cultural integration and promoting more effective team collaboration.

81 822024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Material and Welfare Support Human Rights Due Diligence Management

Walvax Biotechnology implements fair and equitable employee development programs ensuring transparency and fairness

throughout processes related to compensation training and promotion. The Company's management team embraces an open and Identification and Assessment Prevention of Human Mitigation and Performance Supervision

inclusive mindset values diverse perspectives and conducts performance evaluations and promotion decisions in an objective and of Human Rights Risks Rights Risks Remediation Measures and Feedback

unbiased manner preventing any form of discrimination or bias.Identify and assess Formulate and Perform regular Establish a feedback

The Company is committed to providing equal career development opportunities for female employees and to strengthening the human rights risks implement human risk assessments mechanism to follow

protection of women's labor rights. This includes ensuring equal pay for equal work and offering equitable access to training and in accordance rights policies business in operation work up on the effect of

promotion opportunities. The Company actively supports the advancement and skills development of female employees encourages with applicable ethics and the code of out action plans for measures for sustained

women to take on managerial roles and works to break the glass ceiling ensuring greater participation and development international standards conduct for suppliers improvement within optimization and

opportunities for women across all functions and management levels. In addition the Company strictly complies with the Special laws regulations and step up training to specified time according improvement; open

Provisions on Labor Protection for Female Employees providing paid leave for prenatal check-ups maternity leave paternity leave and certification prevent human rights to assessment results up smooth complaint

breastfeeding leave and parental leave. Facilities such as mother-and-baby rooms and dedicated refrigerators are available for requirements of human risks. and take mitigation and and appeal channels rights. remediation measures to identify and address

nursing mothers. The Company also regularly provides benefits for International Women's Day menstrual hygiene subsidies and targeting critical issues. human rights issues

customized health screening packages for female employees helping to safeguard their health and well-being. effectively.Training and Competence Development

Labor Rights

Walvax Biotechnology regularly organizes multiple training sessions concerning labor and human rights policies among all

employees to help employees gain more understanding of human rights and engage in good practices. Besides the Company

In line with the International Bill of Human Rights the ILO Conventions and the Guiding Principles on Business and Human assigns employees to receive human rights training sessions conducted by external organs on a regular basis.Rights of the United Nations the Company has developed the Walvax Biotechnology Statement of Human Rights the Recruitment

Management Measures of Walvax Biotechnology and the Management Measures of Walvax Biotechnology for Employee

Attendance and Leave. These documents have collectively constituted the risk assessment and prevention framework of human Case Training Session of Risk Control in Labor Relations Management for the Bacterial

rights to guard against human rights risks and safeguard labor rights in the core business activities effectively. Notably the Vaccine BU

Statement of Human Rights sets out no forced labor no child labor no freedom of association collective bargaining diversity

inclusion and anti-discrimination among other things. The Statement is applicable to all full-time and spare-time employees as well The key to corporate governance of human rights risks is building a compliant labor relations management system. In June 2024

as all suppliers subcontractors service providers customers and other partners that have business ties with us. Walvax Biotechnology concluded the Training Session of Risk Control in Labor Relations Management targeting managers and

above in the Bacterial Vaccine BU. The session interpreted the legal boundaries of the probation period in the labor contract

the attendance and leave compliance standard and the core modules of the standard-based personnel management process.Focusing on high-risk employment scenarios the session presented policy explanation and compliance guidance to promote the

full compliance of management practices with laws and regulations and establish a well-performing human rights risk prevention

system.Complaints against discrimination or

harassment in 2024

Case The Recombinant Protein BU Fortifies A Defense Line for Protection of Labor Rights

0

The Recombinant Protein BU strictly implements monthly risk reporting within the labor filing system to identify and track potential

employment-related risks establishing a closed-loop management mechanism that integrates monitoring early warning and

rectification. The Human Resources team actively participated in the Human Resources Compliance Practical Training organized

Major risk incidents related to labor by the High-tech Industrial Development Zone and simultaneously obtained qualifications as certified labor law supervisors through

and human rights in 2024 the labor union. By combining in-depth policy study with hands-on practice the Recombinant Protein BU has built a comprehensive

risk prevention and control framework that spans institutional design process execution and supervisory feedback significantly

0 enhancing the professionalism and effectiveness of labor rights protection.

Percentage of employees who return

to work after taking child care leave

100%

83 842024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Human Capital Development

Governance Strategy and Tactic

The Company has formulated and implemented a series Acknowledging that "the most competitive employees in their

of management measures and regulations including the positions are remarkable talents" Walvax Biotechnology

Training Management Measures of Walvax Biotechnology has developed the efficient and forward-looking talent

the Management Measures of Walvax Biotechnology development strategy and plan and deepened its tactic of

for Career Development (Trial) and the Performance training existing talents and introducing new talents to meet

Management Regulations of Walvax Biotechnology (Trial). the needs of inter-disciplinary and diversified talent teams

Effectively planning human resources these documents for effectively practicing the corporate strategy and boosting

enable employees to unleash their potential according to their business development.abilities and prevent organizational risks caused by the flow

or loss of key talents. Upholding the principle of "cultivating high-integrity high-

caliber high-drive and high-efficiency talents and promoting

The employee development strategy of Walvax Biotechnology the growth of all employees" the Company has established

is formulated by the Human Resource Department and Walvax College and guided by strategic goals developed

submitted to the Board of Directors for approval. The a scientific and well-structured talent management model.Company keeps refining the human resource management This includes a tiered and categorized training system a

system to ensure its alignment with the overall strategic sound and merit-based promotion mechanism and open

goals. The Remuneration and Evaluation Committee under internal communication channels. To this end the Company

the Board of Directors is responsible for formulating and fully implements the "Ever-Thriving Walvax" talent cultivation

Prevention of Human Rights Risks overseeing the remuneration policy and appraisal standard for system which is designed to develop key talent capable of

executive directors and senior executives. The Chief Officer supporting sustainable corporate growth and responding

of Human Resources is tasked with devising human resource flexibly to market demands. The system helps enhance

Issues of Concern Prevention or Mitigation Measures planning based on the overall corporate strategy of the talent depth and quality optimize the talent structure and

Company and providing support and suggestions for strategic strengthen the Company's overall competitiveness.Prohibition of ● Implement the Recruitment Management Measures and govern the employment process in decision-making from the human resource perspective.child labor and accordance with the local laws and regulations of operating sites strictly verify the authenticity The Human Resource Department is charged with working

protection of of applicants' identities and provide anonymous reporting channels to ensure all employees out and implementing human resource plans target plans

underage workers have reached the legal age for employment. policies and processes. All BUs have set out their own human

resource departments to perform specific human resource

tasks and bolster talent development.● Employees are free to sign and terminate labor contracts.Prohibition of ● Recruit sufficient employees catering to business development needs execute the

forced labor Management Measures for Employee Attendance and Leave allocate tasks properly through

workload saturation analysis and manage and track working hours.Received the 2024 Employer Brand Best Practice Award under

● Combat discrimination and harassment in any forms according to the diversity policy and the

Anti-discrimination Statement of Human Rights and strengthen publicity and training among all employees. the 2024 China Human Resources Venus Awards

and

anti-harassment ● Set a clear complaint reporting process and work out corrective or punitive measures to

impose strict legal penalties on verified violations.● Adopt the Statement of Human Rights allowing all employees to freely join the labor union and

participate in collective bargaining to protect their rights to know participate and supervise. Talent Attraction

Freedom of ● Sign collective labor contracts including wage-targeted collective contracts and collective

association contracts for the protection of female employees' rights. Under the guidance of the labor union Walvax Biotechnology adopts demand-oriented strategic talent pool planning. To this end the Company redoubles efforts to launch

and collective the Recombinant Protein BU has signed the collective consultation contract and the collective regular talent and organizational assessments according to its strategic blueprint and business development direction proactively

bargaining contract for the protection of the special rights and interests of female employees. design talent layout actively predict recruitment needs and comprehensively evaluate recruitment channels in terms of their

efficiency and costs. In the recruitment process we champion scientific planning targeted recruitment standard-based employment

● Develop and maintain a robust occupational health and safety management system conduct and fair appraisal to attract diversified talents. Our recruitment channels have been extended to university-enterprise cooperation

regular safety risk assessments and detections of occupational disease hazards organize programs internship programs campus recruitment social recruitment headhunting recruitment and internal referral to expand

Health and safety safety training and drills among all employees and foster a safe and healthy workplace. For talent reserves. Besides advanced information technology has been applied to enhance recruitment efficiency and job-matching

details please see the "Occupational Health and Safety" section hereof. accuracy. During the reporting period the Company pushed ahead with employer branding by promoting precise publicity across 48

universities and building its employer image from multiple dimensions. The recruitment achievement rate reached 91.43%.

85 862024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Employee Training

● The Company has established the Modern Biomedical Industry College jointly with Kunming Medical Guided by strategic objectives Walvax Biotechnology has established Walvax College as the core platform for building the "Ever-

University to cultivate high-quality innovative versatile and application-oriented talents through Thriving Walvax" talent cultivation system. This system features a "Learning Panorama Map" that systematically covers four key

deepening the integration between industry and education. In 2024 internal experts were assigned to training modules: onboarding for new employees general competencies professional expertise and leadership development. The

University- participate in discipline development curriculum planning and joint compilation of training materials

Enterprise program is supported by a dual-track mechanism that integrates the "4+1" training principles and the "2345" management model. It

Cooperation forming a talent development model more aligned with industry needs. is designed to enhance employees' professional capabilities and leadership skills in a structured and progressive manner thereby

Programs The Company has designated its experts to participate in professional master training and discipline strengthening the talent pipeline and improving overall talent quality and depth.●

program discussions and share practical experience at lectures in multiple universities such as Yunnan To maximize training effectiveness the Company employs a multi-dimensioned assessment and feedback mechanism for training

University and Kunming University of Science and Technology to broaden channels for attracting courses. Training outcomes are directly linked to the annual performance appraisal in accordance with the learning credit and

talents. training management measures and the learning performance of trainees is subject to annual assessment. What the Company

does is to foster a learning-oriented organization and provide high-caliber vigorous and efficient talents with moral integrity for

● The Company implements a diversified growth program for interns categorizing internships into management innovation and business growth. In addition training specialists have been appointed to gather feedback and assess

Internship

Programs cognition internships general internships and fixed-post internships. The program enhances workplace

training effect through questionnaires or other survey methods and constantly refine training courses according to the collected

exposure for interns while supporting talent development and reserve for the Company. insights."Ever-Thriving Walvax" Talent Cultivation System

● In the spring campus recruitment of 2024 the Company concluded offline Job briefing sessions at

a number of universities including Shenyang Pharmaceutical University Peking University China Onboarding General skills Professional skills Leadership

Campus Pharmaceutical University Fudan University and Sichuan University. training series training series training series Training Series

Recruitment

● The synergy of offline campus recruitment presentations and information delivery at third-party

Gurus Tailored training

recruitment platforms and employment websites of major universities has expanded our employer brand Senior

reach and attracted more fresh graduates to submit resumes. Experts/senior managementMentoring Advanced training experts

Emerging Leaders

Cadre employees Program

Onboarding Intermediate

Middle management

● The Company adheres to the principles of fairness impartiality and openness in recruitment with training training

Social Senior employees

Recruitment reasonable evaluation of position needs and development of annual recruitment plans to accurately Emerging Talent Program

identify and attract suitable talent. Onboarding Entry-level guidance training Entry-level employees Primary-level management

Talent training mechanism: talent criteria + talent selection + talent development + talent evaluation + talent incentives

Internal ● The Company has established a fair and transparent internal referral process encouraging employees Talent training platforms: internal trainer team + E-Learning platform + mentoring + independent knowledge base building +…

Referral to recommend outstanding candidates and thereby enriching the Company's talent pool."4+1" Principles: Defining a Unified Value Orientation

Case Employer Brand Building "Moral integrity" lays a strong ethical foundation; "high caliber" reinforces professional expertise; "high-drive" stimulates

innovation vitality; "high efficiency" enhances work performance. Together these four principles align with the core goal

of "growth for all employees" serving as a long-term driver of enhanced employee competitiveness.Since 2021 Walvax Biotechnology has been continuously strengthening its

employer branding efforts. During the reporting period the Company built a

multi-dimensional communication matrix centered on the main visual design

of "Around the Clock – My Life in Walvax" incorporating contemporary and

youth-oriented elements. The Company also developed the personified "2345" Model: Structuring the Training Implementation Framework

IP image "Dr. Walvax" and a set of workplace-themed emojis which were

promoted across universities to enhance emotional connection with young

talent. In addition the Employer Value Proposition (EVP) was further The model consists of two core training modules—shared values and shared energy field—supported by a three-tier

implemented and translated into a visual communication system. Through structure involving Walvax College Branch of Walvax college and functional departments/teams. A four-dimensional

formats such as horizontal scrolling graphics promotional brochures and a evaluation system covering virtue professionalism competence and performance ensures training effectiveness. Five

dedicated campus recruitment website employee value commitments were training formats—in-class learning reading sharing public speakingand debate paper writing and case study—provide

effectively visualized and conveyed. These efforts contributed to stronger employees with diverse and integrated learning experiences.brand recognition and emotional resonance among prospective talents "Dr. Walvax" IP Image

supporting the Company's talent attraction and reserve strategy.

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Case E-learning Platform of Walvax College Onboarding Training

The E-learning platform of Walvax College is open to the Headquarters of Walvax Biotechnology and its wholly-owned and holding Highlighting employee growth Walvax Biotechnology has customized training programs for new employees to meet their

subsidiaries. By integrating internal and external resources the platform has provided employees with an access to independent development needs throughout the growth cycle. The specific training sessions involve our corporate values and guidelines industry

learning knowledge accumulation and innovation. In 2024 the E-learning platform introduced engaging activities such as the online trends and corporate strategies product knowledge quality management cross-department process analysis as well as career

learning camp and the reading festival and launched the "Learning Consulting" and "Community Interaction" modules allowing planning paths. Additionally training sessions on GMP fundamentals aseptic operation procedures and safety management have

experience sharing and communication among employees. The platform upgrade has brought better interaction and more practical been designed especially for new employees in production positions. These systematic training programs help new employees fit

functions thus strengthening the learning-oriented organization capabilities of the Company. into their work environment easily perform their duties according to standards and collaborate effectively and grow continuously

in their roles. Furthermore we provide one-on-one mentoring throughout the probation period of new employees so that they can

integrate into the team smoothly.Total courses launched: Total views: Total learning hours:

1000+ 7933 110000+ Leadership Training

In line with organizational development needs Walvax Biotechnology continues to implement its talent succession program

integrating leadership competencies into the "1+3" job competency model to identify and develop high-potential managers.Respecting employees' personal aspirations the Company has built a business-aligned tiered leadership development system

that supports forward-looking leadership cultivation across senior management middle management frontline management and

reserve managerial talent providing employees with opportunities to step into leading roles. In 2024 targeted training was provided

for managers at different levels focusing on mindset behavioral patterns and leadership capabilities.Total investment in Total attendance of training Total employee training

employee training throughout the year hours Talent Sources Leader Development Training Directions Training Approaches

Paths

RMB 504100 172327 167469.3 hours

● Successor Development

Mental breakthrough Program/Leadership

Succession Plan

Senior Business thinking

Program (customized

Mature managers: training)

Employee training Annual training hours Management Strategic thinkingLeader of senior ● Course training +

coverage per employee Senior managers Leadership external exchanges

Management improvement and visits + experience

100% 86.7 hours exchanges

Emerging Leaders Business ● Training program of

Middle Program management emerging leaders

Management Middle Senior managers: Team leadership ● Capability identification

Female employees Female employee Management Leader of junior managers Interpersonal + course training

interaction + action learning +

100% Training 86.3 hours Average Change Adaptability

mentoring

coverage Male employees training hours Male employee

rate by Primary-level ● Online and offline 100% per employee 87.2 hours Management learning

gender by gender Emerging Talent Program Role transformation ● Management training

Primary-level Junior managers: Task management camp/MBA

Management Leader of individual Team management ● Course training as

Reserve Management Talent contributors Self-management the main + interactive

discussion + graduation

thesis

Mid-level Primary-level Management capability training is conducted in alignment with business areas with a focus on project management stakeholder

employees Senior employees employee Senior employee communication and related competencies.

100% Training 100% 88.8 hours Average 55.3 hours

coverage rate training hours

by employee per employee Case Successful Conclusion of EMBA/MBA Classes in Walvax College

category Frontline by employee Mid-level

employees category employee

To adapt to industry trends build strategic talent reserves and boost the standard-based intelligent and international development

100% 71.6 hours of the Company Walvax College concluded two EMBA/MBA classes in February 2024 with 177 trainees from the middle-level and

frontline management. Focusing our core business areas the classes introduced courses integrating business administration theory

with our corporate values to enhance the practical skills of trainees in standard-based and intelligent management and cross-

department collaboration. With graduation thesis trainees were guided to propose effective solutions to problems based on the job

duties and the strategy of the Company thus elevating their overall competence and problem-solving abilities.

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Case Training Camp for Improvement of Project Management Capacity Training on Professional Expertise

To step up the leadership and project management capabilities of To support the professional growth of employees Walvax Biotechnology develops annual professional expertise training plans

project managers the Company organized a two-month project for departments aligning with the development goals of the Company. These training plans cover multiple business links such as

management training camp in 2024. At the offline training sessions R&D clinical trial production quality EHS supply chain and marketing. Tailored to evolving business needs job requirements

experts were invited to deliver lectures on project management and competence models our training programs equip employees with the professional skills necessary to enhance their "tangible

systems overall planning risk control and organizational strengths" in career development. In addition departments allocate dedicated training funds in their respective annual budgets

coordination. Case study hands-on exercises and results-oriented enabling employees to participate in external professional expertise programs as needed.models were adopted to guide trainees to generate five major

deliverables namely project charter work breakdown structure

(WBS) schedule stakeholder register and risk register. Senior R&D employees

internal experts also shared hands-on experience strengthening

participants' ability to apply theoretical knowledge and solve real- The Stellar Training Program for R&D Talents (First Session) was launched with a focus on the "learning – thinking –

world problems. The program helped trainees gain a deeper practicing" development model. A variety of learning methods have been adopted including structured coursework Training Camp for Improvement of Project Management Capacity

understanding of the essential logic and practical methodology collective book reading mentoring department rotation and implementation of action-based learning. The program is

behind effective project execution. designed to support the development of a strong and sustainable talent pipeline within the R&D departments.Case Training on Product Management and Manager Competence

Production and quality control employees

In 2024 Walvax Biotechnology launched a dedicated training

program titled "Successful Product Managers" focusing on product New employees are required to complete both general knowledge and professional training sessions as specified

management and managerial competencies. The program aimed in the departmental training matrix within the first 20 days of employment. Assessments are administered upon

to systematically enhance the competitiveness and innovation completion of each module. Regular training on quality control and product safety is also provided for all employees.capacity of the product management team while strengthening For more details please refer to the "Innovation-Driven Health Empowerment / Product Quality and Safety" section of

business collaboration and the development of a robust product this report.management system. In collaboration with Changsha Hanrunpu

Enterprise Management Co. Ltd. the Company also introduced

a series of courses and reading activities under the theme "The Employees engaged in special operations

Gentleman's Character and Managerial Cultivation" designed to Training on Gentleman's Character and Managerial Cultivation

deepen ethical awareness and leadership development among In addition to internal training and assessment requirements outlined in the departmental training matrix employees

managers and to promote the integration of corporate values into engaged in special operations are required to undergo professional training at accredited third-party institutions in

everyday management practices. accordance with external training regulations. Certificate renewal is subject to periodic re-assessment in compliance

with the Management Regulations on Safety Technology Training and Assessments for Special Operations Personnel.Training on General Skills

Walvax Biotechnology places strong emphasis on enhancing scientific literacy in vaccines among all employees and continues to

strengthen its training system for general skills. Focusing on key areas such as vaccine R&D production and quality control the Joint Training with External Partners

Company regularly offers scientific knowledge and practical skill-building courses. In alignment with industry trends and regulatory

updates a hybrid learning approach has been adopted—integrating theoretical instruction case studies and simulation exercises— Walvax Biotechnology actively leverages high-quality external training resources to support employees in deepening their expertise

embedding scientific literacy into the Company's overall development framework of comprehensive skills for all employees. Since and advancing their professional capabilities. In 2024 we partnered with multiple external institutions to launch a range of training

its launch in 2020 Walvax College's Basic Training Program on Vaccine Scientific Literacy has been conducted in four sessions. programs providing strong support for employee development across various disciplines.The fourth session held in 2024 comprised 21 courses (48 class hours) covering essential topics including vaccine fundamentals

industry-specific knowledge and the Company's operational processes. The program is designed to help non-technical staff better

understand technical concepts and promote cross-functional collaboration. The Marketing Module of the First Session of the On-site practical training for middle-level and frontline managers were delivered in colaboration with Yunnan Chenwen

Advanced Training Program on Vaccine Scientific Literacy featured four key components: classroom lectures observation-based Technology Co. Ltd. to invite certified project management experts (PMI-PMP/PgMP/ACP) who have contributed to

learning knowledge assessments and practical exercises. In addition practical insights from frontline sales were introduced through national standard development.the integration of the "Shishuo Xinyu" initiative enhancing cross-departmental collaboration through a combined "theory + practice"

model.In partnership with Jiangsu Yunxuetang Network Technology Co. Ltd. the Emerging Talent Program–New Manager

Training Camp (First Session) and the Training Camp for Improvement of Project Management Capacity were

launched. These programs leveraged Yunxuetang's professional curriculum ecosystem to accelerate the growth of our

management talent.We also invited professors from Hunan University Southwest Forestry University and Kunming Medical University

to serve as instructors for the Training Program on Vaccine Scientific Literacy incorporating academic expertise to

enhance the specialization and credibility of the training curriculum.Basic Training Program on Vaccine Scientific Literacy by Walvax College

91 922024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Employee Development Overarching Remuneration and Benefit Packages

Career Development Remuneration Incentives

Walvax Biotechnology has established a structured remuneration system in accordance with its Remuneration Management

Anchored in the "Walvax Eight Competencies" Walvax Biotechnology has systematically defined talent criteria aligned with its Regulations based on the 3P principle (Position Performance and Person). The system applies to all employees—including non-

future strategic direction. Based on this framework the Company has established a tiered and role-specific "1+3" job competency management and non-sales personnel—and consists of both fixed and variable components. Variable income includes performance-

model which has been deeply integrated into performance management talent recruitment training and development processes— based pay bonuses and allowances which are closely linked to individual and organizational performance to maximize the

serving as a cornerstone for optimizing the overall talent management system. In line with the Management Measures for Career incentive function of the remuneration mechanism. For senior management compensation is determined based on their position

Development of Walvax Biotechnology the competency model and corporate values are embedded throughout the career responsibilities capabilities and prevailing market salary benchmarks. The variable portion of their compensation is further tied

development framework. This provides employees with clear structured career pathways enabling them to leverage their strengths to the Company's operational performance and individual appraisal results aligning their interests with the Company's long-term

and create greater value in their roles. growth. For general employees variable income is linked to the Company's performance departmental results and individual

In 2024 the Company continued to advance its dual career development pathways enabling employees to pursue growth and contributions. A dynamic adjustment mechanism is in place allowing compensation to increase or decrease in accordance with

promotion opportunities in both management and technical pathways thereby removing the "ceiling" that hinders employees' performance outcomes. This system ensures that all employees receive remuneration commensurate with their work results while

career advancement. A new job grading system aligned with the Company's strategic framework was successfully implemented supporting a decent work experience and high quality of life.to promote consistency in talent management philosophy and practices across the Headquarters and its subsidiaries. In addition We regularly monitor and assess market salary levels each year and develop salary adjustment plans according to the market

a series of enhancement initiatives targeting the core management team were carried out supporting the Company's goal of data collected and our operating performance to maintain competitive pay packages and attract more talents for our crucial and

cultivating a workforce that is more "professional young international and Walvax-featured." strategic positions. All employees and departments undergo regular performance appraisals in an objective manner. By referring to

the appraisal results we determine and adjust the salaries for all positions and design short-term and long-term incentive plans.Therefore all managers and primary-level employees including non-sales employees receive fair and competitive remuneration that

fully reflect their performance and contributions.Performance Feedback and Appeals

Team Intrinsic In accordance with the Performance Management Regulations of Walvax Biotechnology (Trial) the Company adheres to the

spirit motivation Belief

Professional

competence principles of fairness openness and impartiality in evaluating employee and departmental performance. We adopt a multi-

dimensional appraisal system that integrates self-evaluations assessments by direct supervisors and feedback from cross-

functional teams supported by multiple evaluation tools. The performance appraisal process is grounded in objective evidence

Senior managers Gurus and takes into account a balance of results and responsibilities behaviors and processes short- and long-term objectives as well

as internal and external benchmarks. This comprehensive and structured approach ensures that employees' contributions are

Middle-level managers Senior experts accurately recognized and fairly rewarded.The Company has established a robust performance communication and coaching mechanism ensuring employees receive timely

Frontline managers Cadre employees/experts continuous and constructive feedback throughout the entire appraisal cycle. This supports employees in aligning with organizational

goals and driving performance improvement. During the planning and implementation stages departments are required to set

transparent objectives and define measurable outcomes. Managers provide feedback through both formal and informal channels

Experienced employees offering guidance and actionable suggestions. The Company also reinforces the PDCA (Plan Do Check Improve) closed-loop control

of the overall performance management promoting accountability at all levels. The Human Resources Department is responsible for

Entry-level employees reviewing consolidating and communicating performance evaluation results as well as following up on identified issues to ensure

timely corrective actions. An appeal mechanism is in place for employees to raise concerns or disagreements regarding appraisal

outcomes thereby reinforcing procedural fairness and continuous improvement across the performance management system.Academic and Professional Credential Support

If employees have objections to their performance appraisal results or are unclear about specific details they may submit a

Walvax Biotechnology encourages and supports both full-time and part-time employees in pursuing academic degree enhancement Performance Appraisal Appeal Form to their direct supervisor or the Human Resources Department within three working days of

professional certifications and professional title attainment with the goal of continuously improving their professional competencies. receiving the results in accordance with the Company's Performance Appraisal Appeal and Feedback Procedures. Supervisors or

According to the Credit Management Measures and the Management Measures for Professional Titles of Walvax Biotechnology the Human Resources Department are required to handle the appeal and provide a formal response within seven working days.employees may earn credits through training participation title examinations and on-the-job academic programs. These credits are Upon conclusion of the appeal process the Human Resources Department will promptly record any necessary corrections and

incorporated into performance evaluations and considered as factors in promotion and salary adjustment decisions. Upon approval ensure they are applied to the final appraisal results. In 2024 the Company launched the President's Email Inbox which allows for

employees are eligible for expense reimbursement and paid training leave and may receive rewards for obtaining recognized anonymous or real-name submissions. Strict confidentiality protocols are enforced to protect employee information. These efforts

professional titles. These initiatives are designed to foster motivation for continuous self-development and encourage professional jointly contribute to a performance management system that ensures fair evaluations effective appeals and timely feedback.growth across all regular employees with 100% coverage. In addition the Company actively collaborates with higher education

institutions to support employees in obtaining advanced degrees and job-related qualifications further empowering their professional

development. Employee Stock Ownership

During the reporting period 1 employee in the R&D division was awarded the title of Senior Research Fellow (Full Professor Walvax Biotechnology launches stock ownership and stock option incentive plans targeting senior executives and core employees

Level); 10 employees were granted the title of Assistant Researcher (Intermediate Level); and 2 employees received Junior-Level to align their remuneration expectations with the long-term goals and interests of the Company. These plans help attract top talents

professional titles. Multiple professional certifications were also newly obtained including pressure vessel operation licenses. 6 and retain key employees and promote mutual development and benefits between the Company and its employees. In addition the

employees from the Bacterial Vaccine BU completed academic degree upgrades and applied for subsidies provided by the High-tech Company has formulated a development-adapted recall and adjustment policy for employees' performances. In the stock incentive

Industrial Development Zone. In the Recombinant Protein BU 34 employees passed the junior-level professional title evaluation in plan it is stipulated that if the assessment results suggest incentive targets fail to meet specified standards at the company level

pharmacy. 1 employee was financially supported to pursue a master's degree at Fudan University and core team members were or individual level the corresponding stock incentives will be recalled. For details on employee stock ownership please refer to the

encouraged to participate in intermediate- and senior-level title training programs organized by the Shanghai Municipality. 2024 Annual Report of Walvax Biotechnology Co. Ltd.

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Tra2024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Employee Benefits

The Company has developed an efficient benefit system for all employees. Apart from mandated basic benefits a wide range of

non-salary benefits have been provided to enhance employees' sense of belonging and happiness and foster a warm and happy

workplace.Basic benefits

Social insurance package housing provident fund and paid leaves (including sick leave work-related injury

leave marriage and funeral leave prenatal check-up leave maternity leave paternity leave breastfeeding

leave and annual leave)

Allowances

Housing allowance reimbursement of women's health fees travel allowance and employee canteen

"Walvax STYLE Reading" World Reading Day Activity

Employee health

Annual physical examination supplementary medical insurance (including accidental injury insurance

accidental medical insurance and major disease insurance) and reimbursement of vaccination fees

Vaccines (for employees their children and spouses as well as parents of both employees and their

spouses) and medical mutual aid

Holiday benefits

Physical or cash benefits for holidays (such as Women's Day benefits and reimbursement of women's health

fees)

Work pressure relief Employee badminton competition

Organize a variety of cultural and entertainment activities and establish the "Fitness Center" to encourage

physical exercise; provide psychological counseling services to guide employees to learn psychological self-

regulation

Care for special employee groups

Care for special employee groups such as pregnant women employees with disability and employees in

difficulty through various benefits and assistance initiatives to alleviate their difficulties with true and warm

efforts

Case "WALVAX STYLE" – Leisure & Wellness Experience for Employees

Tea culture learning activities

To enrich employees' daily experience and strengthen

their sense of belonging Walvax Biotechnology launched

the "WALVAX STYLE" brand series covering catering

entertainment sports arts and cultural activities. In 2024

the W COFFEE organized a variety of themed campaigns

tied to holidays and company culture such as "Back to

Work Day" "Crazy Thursday" "Women's Day Celebration"

seasonal product launches and the "W COFFEE

Anniversary". To meet employees' dining needs the Café

launched a new range of sandwiches burgers and cakes.It also developed a series of freshly made juice products

with distinctive flavors and healthy nutritional ingredients "WALVAX STYLE" Moments Walvax GYM

encouraging employees to maintain a proper balance

between work and rest and to better enjoy both work and Fun sports meet

life.

95 962024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Employee Communication and Engagement Impact Risk and Opportunity Management

Communication and Grievance Reporting Walvax Biotechnology places significant emphasis on human capital risk management. We precisely pinpoint key human capital risk

domains and with a strategic-goal-oriented approach persistently conduct the identification assessment response and monitoring

Walvax Biotechnology provides employees with smooth diversified communication channels and secure confidential grievance of human capital risks. Leveraging employee engagement surveys we consistently refine our human resources management

reporting mechanisms. These include the Workers' Congress communication and exchange meetings internal hotlines reporting strategies across the entire spectrum of talent acquisition development deployment and retention. This guarantees that human

mailboxes the President's email inbox an online feedback platform employee suggestion boxes rationalization proposal initiatives capital development risks remain firmly within the controllable scope enabling high-quality development to be realized by means of

and comprehensive evaluations of middle managers' adherence to corporate values and codes of conduct. The Company a top-notch talent workforce.continuously improves its reporting procedures and handling processes ensuring that all employee feedback is duly acknowledged

and responded to in a timely and effective manner.Analysis of Human Capital Risks Coping Strategies

A labor union has been established alongside the formulation of the

The Workers' Regulations of the Workers' Congress of Walvax Biotechnology Co. Quarterly / Semi- ●

Ltd. Regular workers' congresses and employee assemblies are held Risks of strategic and organizational

● Refine the mechanism for identifying and assessing human capital

Congress

to fully incorporate feedback from employees and the labor union. Annually / Annually transformation risks and keep the human capital risk inventory up-to-date on an

ongoing basis.● Scarcity of international-minded multi-

The inbox is personally managed by the President who independently skilled and highly-proficient talents ● Build a scientific human resources management system and implement

President's E-mail accesses and follows up on messages. All information from individuals Regular a demand-driven strategic talent pool plan. Regularly conduct talent

●

Inbox submitting opinions or suggestions is handled with strict confidentiality. Insufficient talent reserve for long-term and organizational evaluations in line with the Company's strategic plan

development and business development directions. Effectively manage risks through

●

Both online and offline suggestion boxes are available allowing Risks of diversity and inclusion avoidance mitigation or transfer.employees to submit feedback at any t ime. Anonymity and ● Inadequate training and development ● Define performance standards clearly beef up communication and

Employee Feedback confidentiality are strictly protected and all submissions are addressed Regular feedback and keep optimizing performance management tools and

Platform and responded to within a specified timeframe. The online platform ● Performance management risks processes.remains accessible 24/7 for continuous employee engagement.● Lack of competitiveness in

● Implement the talent development strategy of Internal Cultivation

The Company has established a formal accessible and confidential grievance reporting mechanism that covers all full-time ● salary and welfare or cost overruns and External Recruitment establish the "Ever-thriving Walvax" talent

and part-time employees. Employees are encouraged to promptly report any instance of unfair treatment to their immediate cultivation system and supply the Company with high-integrity high-

● Risks related to compliance

supervisors or the Human Resources Department. Designated personnel are responsible for receiving and handling grievance caliber high-drive and high-efficiency talents for its management

and whistleblowing reports. The Human Resources Department serves as the primary center for grievance management and in ● Risks in organizational culture innovation and business growth.collaboration with the Audit and Supervision Department is responsible for case acceptance investigation resolution and follow-up.● Risks of brain drain ● Build a job competency model with Walvax's Eight Competencies as

Upholding the principles of authenticity confidentiality and effectiveness we ensure that all legitimate reports are promptly accepted the core benchmark. Intensify talent assessment and talent succession

and independently investigated. Strict confidentiality is maintained regarding the identity of complainants and the content of their planning. Boost employee engagement by means such as employee

reports. We also take necessary measures to protect the safety and lawful rights of complainants. Any verified act of retaliation or engagement surveys thereby reducing organizational risks.information leakage will be dealt with seriously in accordance with relevant policies. In addition the Company regularly audits the

operation of its employee communication and feedback systems to ensure that communication channels remain unimpeded and that

employee concerns and grievances are effectively addressed.Employee Engagement Survey Indicators and Targets

The Company conducts regular employee engagement surveys focusing on three dimensions and eight behavioral indicators of

engagement along with four key drivers. These surveys comprehensively collect employees' opinions and suggestions. Based on

data analysis and employee feedback we constantly improve our management practices. Indicator Target 2024 Achievement Status

Management Enhancement Strategies Based on the 2024 Employee Engagement Survey Coverage rate of employee performance evaluation 100% among regular employees

Coverage rate of employee training 100% for all employees Target achieved

In 2024 the Company launched a strategic and organizational capacity building project which promoted a systematic

organizational upgrade through current-state diagnostics organizational restructuring and a series of transformative Frequency of performance management optimization At least once

initiatives.The President's E-mail Inbox was established to widely solicit feedback and suggestions from all Walvax employees

regarding the Company's steady operations and development. This initiative fosters a culture of broad participation in

corporate governance supervision and continuous improvement in management efficiency.A front-middle-back office structure was established as part of organizational transformation efforts aimed at enhancing

cross-functional collaboration reducing communication costs and improving work efficiency.Workload saturation analysis was carried out to enable balanced task allocation. A fast-response mechanism for employee

feedback was put in place allowing for timely adjustments to work arrangements and strengthening employees' sense of

involvement.In response to relatively low satisfaction with welfare benefits identified in the engagement survey the Global Business

Unit enhanced employee involvement in benefits design and introduced diversified delivery methods including physical/

non-physical/cash incentives. As a result welfare satisfaction increased by 12% year-on-year.

97 982024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Occupational Health and Safety Hazard We have established a systematic hazard identification and assessment mechanism. The results

Identification are directly applied to key decision-making processes including design optimization process

Walvax Biotechnology strictly complies with applicable laws and regulations including the Work Safety Law of the People's Republic and selection production layout and equipment procurement ensuring risk control is integrated

of China the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases the Provisions on the Assessment throughout the entire business chain.Supervision and Administration of Occupational Health in the Workplace the Regulations on the Safety Administration of Hazardous

Chemicals and the requirements of the ISO 45001 Management System. The Company has formulated a series of management

policies procedures and standard operating guidelines including the Walvax Biotechnology Work Safety Responsibility System

and the Walvax Biotechnology Safety Risk Classification and Control System which apply to all employees contractors and Hierarchical We classify health and safety risks into four levels—major relatively major moderate and

suppliers. Health and safety indicators are incorporated into the annual performance assessments of both senior executives and Management low—and implement tiered control measures accordingly. For major and relatively major risks

all employees contributing to a strong and accountable safety foundation. In line with the principle of "safety first prevention- of Health and we develop dedicated mitigation plans using diverse technical engineering and managerial

oriented and integrated governance" the Company has established the Safety Risk Evaluation Leadership Group responsible for Safety Risks approaches such as design optimization substitution risk transfer and isolation.the overall planning and oversight of safety risk prevention and control. Under this group a safety risk prevention and control task

team has been formed to implement a dual-prevention mechanism that integrates hierarchical safety risk management with the

identification and rectification of potential hazards. In addition the Company maintains Individual Occupational Health Monitoring

Files for all employees to strengthen occupational health and safety risk management. For contractors the Company enforces We conduct routine inspections to identify potential safety hazards. Once identified we take

strict occupational health risk control measures throughout the entire business process—from contractor selection contractual immediate corrective actions and implement real-time monitoring to ensure complete resolution.disclosure and entry requirements to training ongoing supervision and performance evaluation. During the reporting period During the reporting period we rectified 80 such hazards.

100% of employees in positions exposed to occupational hazards underwent health examinations. No new or suspected cases of

occupational diseases were reported.Occupational Health and Safety Targets 2024 Achievement Status Potential

Hazard

100% of employees receive pre-employment physical examinations Identification

Occupational 100% of in-service employees receive regular health check-ups and

Health Check-up 100% of employees undergo exit physical examinations Rectification

100% filing rate of individual occupational health monitoring files

Workplace 100% inspection coverage of workplaces with occupational hazard factors

Inspection 100% coverage of hazard warning signs in all workplaces; test result boards are prominently displayed in main production areas

100% distribution and usage rate of personal protective equipment (PPE) EHS Daily InspectionsProtective

Measures 100% coverage of safety management qualifications and hazardous chemical operation certificates across all R&D departments Target achieved

Occupational 0% incidence rate of occupational diseases in the workplace We have developed policies such as the Comprehensive Emergency Response Plan for

Disease 0 major personal or equipment safety incidents Production Safety Incidents and continue to improve contingency plans for various safety

Incidence Rate 0% incidence rate of acute poisoning accidents and public health emergencies. Regular emergency drills are carried out on scenarios

including fire safety hazardous substance spills as well as combating terrorism and preventing

0 fire or explosion accidents violence.

0 major safety accidents and 0 electric shock accidents

Production 0 electric shock accidents

Safety 0 poisoning accidents

0 biosafety incidents Emergency

0 work-related fatalities Management

for Health and

Safety

Investment in health and safety: The injury rate per million Shanghai Zerun has been certified under the

working hours:

Occupational

RMB 4.4947 million 0.44% ISO 45001 Fire Emergency DrillHealth and Safety Management System

Amount invested in work-related injury Coverage rate of work-related injury insurance

insurance: among employees: We foster a strong safety culture through initiatives such as Safety Production Month campaigns Health and safety knowledge competitions recognition of outstanding safety performers and regular

Safety Culture

RMB 1.3504 million 100% Development safety training. In 2024 health and safety training covered 100% of employees with 4547 total participants and 6413 cumulative training hours.

99 100Green

Development and

Environmental

Stewardship

Annual increase in environmental protection

investment:

RMB 2.9732 million

Greenhouse gas emission intensity:

0.151 tons of CO2 equivalent/RMB

10000 revenue

Compliance rate for wastes emissions:

100%2024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Environmental Management Enhancement Environmental Certification and Auditing

Walvax Biotechnology has implemented a comprehensive internal EHS audit mechanism that conducts regular environmental

Walvax Biotechnology rigorously complies with environmental Environmental Management Structure audits across all production units. These audits encompass a wide range of areas including EHS compliance pollution control

protection laws and regulations including the Law of the facility operations emissions of the three primary waste types waste storage and disposal procedures hazardous chemical

People's Republic of China on Environmental Protection

Law of the People's Republic of China on the Prevention Walvax Biotechnology integrates environmental management

management environmental risk assessments and emergency response planning and drills. The audit process is multi-faceted

and Control of Atmospheric Pollution Energy Conservation as a strategic priority at the Board level. The Board of

comprising headquarters-led evaluations cross-audits among subsidiaries and stringent monthly self-inspections that involve senior

Directors regularly assesses environment health safety (EHS) management participation. To ensure objectivity we also engage qualified third-party monitoring firms to conduct standardized self-Law of the People's Republic of China Law of the People's

Republic of China on Water Pollution Prevention and Control management implementation assuming ultimate responsibility

monitoring assessments. In addition to internal measures each operational base actively collaborates with regulatory agencies and

for climate and environmental management policies external stakeholders to facilitate various external environmental audits. This ensures the ongoing suitability and effectiveness of and Law of the People's Republic of China on the Prevention

and Control of Environmental Pollution by Solid Waste. objectives strategies structures and execution. The Board

our environmental management system. The Company employs a tiered approach to addressing audit findings setting correction

empowers the Sustainability Committee to comprehensively deadlines based on the severity of issues identified. Dedicated departments are tasked with tracking the implementation of The Company aligns its practices with standards such as

ISO 14001 Environmental Management System and ISO oversee climate and environmental issues including reviewing

improvements to ensure timely resolution. For pollution prevention facilities operated by third-party companies including online

environmental plans examining policy implementation monitoring equipment we conduct rigorous supervisory spot checks at least once a week. These inspections focus on the third-party 50001 Energy Management System to develop the Walvax

and monitoring progress towards goals. The EHS Working company's performance the accuracy and timeliness of record-keeping and the operational status of facilities. Detailed inspection Biotechnology Environmental Management Policy and

Group reporting to the Sustainability Committee tracks legal records are maintained and clear responsibilities and deadlines for improvements are established. During the reporting period Walvax Biotechnology Emergency Response Plan for Sudden

and regulatory developments formulates and implements 100% coverage of all production units was achieved through internal environmental audits and external inspections by third-party Environmental Incidents. We commit to environmental

EHS objectives and action plans. EHS departments are organizations. A total of 8 environmental audits were completed across all plant areas and 11 external environmental inspections objectives through signed responsibility agreements ensuring

established at headquarters and all production units with the were carried out by qualified third parties. All identified issues were rectified within the specified timeframes. Notably the subsidiary all operations adhere to applicable environmental regulations

Company's senior leadership taking primary responsibility for Shanghai Zerun successfully obtained ISO 14001 Environmental Management System certification.in our areas of operation while minimizing ecological

impact. During the reporting period the Company recorded environmental protection.no environmental pollution incidents no exceedances in Environmental Risk Prevention Control and Emergency ManagementThe EHS management system encompasses 100% of

environmental monitoring and received no environmental company operations. We conduct regular reviews and

administrative penalties. evaluations of the environmental management system's The Company continues to refine its environmental risk control mechanisms in alignment with ISO 14001 Environmental

performance incorporating it into overall performance Management System requirements. We conduct thorough environmental monitoring based on robust policies including the Walvax

appraisals. Violations of national laws regulations or our Biotechnology Online Monitoring Operation and Maintenance Management System and the Walvax Biotechnology Online Monitoring

Articles of Association resulting in significant decision-making Data Anomaly Handling Management System. These measures enable us to strengthen our assessment and control of various

errors major safety incidents or environmental accidents that environmental risk factors inherent in production and operations thereby enhancing our environmental risk prevention capabilities.Total environmental protection investment: cause substantial adverse effects or economic losses to the To ensure emergency preparedness the Company has developed an Emergency Response Plan for Sudden Environmental

Company are subject to performance deductions based on Incidents along with corresponding response cards. An emergency response team has been established and equipped with

RMB 2.9732 million severity. necessary materials and tools. Regular targeted environmental emergency training and drills are conducted to maintain operational readiness. During the reporting period 100% of the Company's environmental monitoring data met compliance standards and four

Environmental Management Objectives environmental emergency drills were conducted.Environmental protection training coverage: The Company systematically evaluates the environmental Environmental Protection Training and Promotion

impact of its operations establishes clear environmental

100% protection targets and regularly reviews goal attainment and The Company places strong emphasis on environmental protection training and awareness. Employees are engaged through progress aiming at enhancing its environmental performance various learning formats covering environmental laws regulations standards internal policies and implementation of environmental

through closed-loop management. management practices. In addition awareness of environmental protection is reinforced through campaigns and internal promotional

activities fostering a culture of environmental responsibility across the organization. The Company also actively participates in

Achievement of environmental management external training programs organized by the Department of Ecology and Environment of Yunnan Province. These include video

General or above-level environmental accidents: objectives: 100% training sessions on province-wide automated pollution source monitoring online training on key areas of soil pollution prevention

and control and dedicated environmental management training for industrial parks.

0 100% legal compliance in all operations with 0 major environmental pollution incidents or

complaints

100% coverage of environmental education and

training for all employees

Shanghai Zerun achieved 100% compliance rate for "three wastes" emissions

and boundary noise levels

ISO 14001 Annual growth rate of water and electricity Environmental expenditure below the increase in management

Management System certification expenses

Proactive adoption and development of

environmentally friendly technologies minimizing

potential environmental impacts throughout the

product lifecycle from R&D and procurement to

production distribution and end-use

Conducting training on Enterprise Environmental Arbor Day activity themed on "Building a Beautiful

Management and Requirements Countryside and Supporting Rural Revitalization"

103 1042024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Climate Change Mitigation

Climate Resilience

Walvax Biotechnology adheres to the framework recommendations outlined in the IFRS S2 Climate-related Disclosures and the Self- Walvax Biotechnology conducts comprehensive analyses of the risks and opportunities arising from climate change. The Company

Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For Trial Implementation). develops targeted response measures to ensure its climate management strategy aligns with policy trends market developments

The Company is committed to exploring innovative green and low-carbon development pathways offering solutions to address and customer needs thereby enhancing its resilience to climate risks.health needs arising from climate change and enhancing its capacity to respond effectively to climate risks.Category Risk/Opportunity Description Potential Financial Impact Response Measures

Governance

●

● Extreme weather events such as Closely monitor climate change trends

heavy rainfall heatwaves typhoons develop comprehensive emergency plans

The Company has integrated climate change considerations into its sustainable development governance structure. The Board's and floods resulting from climate for extreme weather events enhance

Sustainability Committee spearheads the management of climate change-related matters refining processes for identifying change may adversely affect emergency response capabilities and maintain strict EHS risk controls.assessing managing and disclosing climate risks and opportunities. Members of the EHS Working Group bring extensive company operations and supply

chain continuity. ● Incorporate regional climate risk assessments

professional knowledge and practical experience to the table enabling them to comprehensively and promptly identify climate Operating revenue?

● into site selection planning and design

change risks and opportunities formulate effective environmental protection policies and emission reduction plans and ensure their Stringent temperature control Acute Risks requirements for vaccine production Operating costs? processes for new projects.thorough implementation. storage and transportation pose Fixed asset value? ● Install off-grid lithium battery energy storage

Physical challenges as high temperatures systems to ensure emergency power

Risks and humidity fluctuations may supply for critical equipment during power

Decision-making Level compromise vaccine stability. fluctuations or abnormal situations.Additionally extreme weather events ● Implement safety stock strategies and

are likely to increase operational

Board of Directors and Sustainability Committee diversify suppliers to build a resilient supply costs. chain.Review ESG-related risk and opportunity assessments with a particular focus on climate change topics

●

Approve climate-related plans targets and response strategies while overseeing their implementation Sea level rise ● Chronic Risks Operating costs? Regularly assess and track changes in water

● Water resource scarcity resources and public utilities.Evaluate the effectiveness of climate change risk management and internal control systems

● Ongoing implementation of ● Closely monitor changes in international and

climate change mitigation domestic environmental and carbon-related

Management Level policies and regulations gradual policies mitigate risks through enhanced

Policy and advancement of carbon emissions management practices and ensure

ESG Office Regulatory trading mechanisms and more Operating costs?

regulatory compliance.Risks stringent environmental protection ● Achieve green and low-carbon development

Coordinate the development of climate change-related action strategies policies regulations and target indicators requirements are leading to by improving process equipment optimizing

increased constraints and costs for energy structure and enhancing production

Conduct thorough assessments and analyses of climate change risks and opportunities project development and operations. efficiency thereby bolstering energy security.Orchestrate and drive the implementation of climate change actions

●

Regularly compile track and report on climate change-related data and progress towards targets Monitor and assess the potential impact

Transition ● Long-term climate change is leading of climate change and natural disasters

Risks to shifts in public health landscapes on disease patterns. Focus on cutting-

potentially impacting vaccine edge technologies in the vaccine industry

Execution Level companies' product R&D directions strengthen feasibility studies on new

Market and and market strategies. Operating revenue? technology applications and foster industry

Technology ● Climate change is altering market collaborations to proactively address EHS Working Group Risks preferences in certain regions Operating costs? challenges brought by evolving disease

Ensure adherence to climate change-related action strategies policies regulations and target indicators increasing costs for low-carbon spectrums.transition particularly upfront ● Conduct thorough cost-benefit analyses and

Develop and implement specific plans to advance climate-related actions and support the realization of company-level expenses for green and low-carbon feasibility studies before implementing low-

climate strategies and plans technology adoption. carbon transition projects selecting the most

Conduct regular statistical compilation and reporting of relevant information and data viable solutions.● Identifying new business

opportunities in disease areas

●

Products and affected by climate change Develop and provide cutting-edge vaccine

Services developing innovative vaccine Operating revenue? products to address emerging health needs

Strategy and Approach solutions and expanding into while enhancing market competitiveness.emerging markets.Climate

Walvax Biotechnology is dedicated to integrating climate risk management into its overall risk management system. This ensures Opportunities ● Optimizing both energy structure and Explore emission reduction potential and ●

that addressing climate change issues is a fundamental consideration in its strategic decision-making processes. The Company Resource efficiency to achieve long-term stable minimize energy consumption costs through

has positioned green and low-carbon development as a core element of its sustainable development strategy integrating these Efficiency power supply and realize energy- Operating costs? the construction of proprietary photovoltaic facilities and implementation of robust energy

principles throughout the entire lifecycle of projects from initial planning and design through to construction and operation. This saving benefits. management systems.comprehensive approach serves to boost our climate adaptation capabilities.

105 1062024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Energy Management

Walvax Biotechnology strictly complies with relevant legislation including the Energy Conservation Law of the People's Republic of

●

China and the Law of the People's Republic of China on the Promotion of Clean Production. The Company has issued institutional Capitalize on Yunnan's abundant hydroelectric resources by prioritizing low-carbon locations during site selection

guidelines such as the Walvax Biotechnology Energy Conservation and Emission Reduction Management System and actively

promotes energy consumption and efficiency management in line with ISO 50001 Energy Management System standards. Source approximately 70% of electricity from hydropower

Employees are encouraged to adhere to clean production processes and energy control indicators and targets are integrated into ● Install large-capacity photovoltaic power stations on industrial park rooftops enabling self-

annual performance evaluations as part of our proactive approach to climate change mitigation. generation and self-consumption to boost economic benefits and energy security

Energy Structure ● Substantially increase the use of clean energy sources such as natural gas and electricity

Energy Management Strategy Optimization (leveraging Yunnan's high proportion of hydropower) to replace traditional energy sources

thereby expanding the share of clean energy usage. During the reporting period the

The Company has established a standardized energy management system and set up a dedicated equipment and energy Company successfully transitioned from coal-fired to electric boilers enhancing thermal

management team to enable refined management of energy indicators and continuously improve its overall energy management efficiency and energy conservation benefits.performance.● Streamline production management by strategically activating and deactivating HVAC for

clean areas steam generators and pharmaceutical water systems based on production

Energy Planning Management Energy-saving Strategy Formulation requirements; implement additional operational monitoring systems to regulate the

Develop and refine plans to maximize Enhance monitoring of energy-consuming activation and deactivation of refrigeration units and pumps based on chilled water pipeline

usage efficiency equipment to improve utilization efficiency temperatures minimizing energy consumption

Implement rational energy use planning Implement integrated management of ● Utilize HVAC systems for clean areas with real-time temperature and humidity monitoring

to reduce production costs energy supply and consumption for intelligently adjusting ventilation frequency and air volume; implement specialized gas

Conduct thorough bill verification to optimal usage monitoring systems to enhance equipment automation control strategies preventing

streamline expense payment and Conduct regular inspections to identify and Management unnecessary waste

settlement processes eliminate energy waste Energy

Conservation ● Implement upgrades to the Building Management System (BMS) and Environmental

Data Statistics and Analysis Compliance Management Monitoring System (EMS) within the pneumonia vaccine bulk production workshop

ensuring stable control and real-time monitoring of temperature humidity and pressure

Maintain detailed logbooks for energy Facilitate effective coordination with differentials through automated control and precision adjustments to reduce energy

consumption and metering instruments government departments and external consumption

Implement robust energy consumption entities

●

monitoring to ensure optimal equipment Ensure accurate and authentic reporting Conduct regular energy conservation training sessions for employees to improve overall

operation to energy consumption systems awareness and operational proficiency

Perform in-depth data analysis and Monitor regulatory and policy changes

evaluation to inform energy-saving providing timely support and guidance ● Implement large-capacity condensate treatment units to enhance industrial steam system

measures condensate collection treatment and reuse boosting energy utilization efficiency and

reducing carbon emissions

Energy Conservation and Emission Reduction Initiatives ● Install standalone off-grid lithium battery energy storage systems in key production buildings

within the industrial park featuring optimally designed capacity and operational control

strategies to achieve "valley charging and peak discharging" optimizing energy allocation

The Company has established and implemented carbon reduction targets continuously advancing energy conservation and and smoothing peak demand

emission reduction initiatives. It also encourages suppliers to align with its environmental policies fostering joint efforts to address Technical Energy ●

climate change. Establish regionalized centralized heating introducing an energy trusteeship management Conservation model that combines biomass and natural gas heating utilizing a dual-energy

complementary approach to supply steam for industrial park production improving energy

Case High-Temperature Condensate Recovery utilization efficiency and mitigating environmental impact

● Integrate heat recovery units into air conditioning systems to harness waste heat from

Yuxi Walvax has implemented an innovative condensate recovery system that collects and transports high-temperature condensate direct exhaust systems for heating or cooling fresh air reclaiming thermal energy or cooling

from the industrial park to the boiler room. After treatment to meet required standards it is repurposed as boiler make-up water. This capacity

project achieves thermal energy recovery from condensate and promotes circular use of boiler water significantly enhancing energy

utilization efficiency and reducing industrial water consumption. ● Foster green supply chain development by prioritizing energy-efficient equipment during the

Sustainable selection process

Annual condensate recovery and Boiler thermal efficiency Annual industrial steam CO2 emission Procurement

utilization: improvement: savings: reduction:

● Enhance digital and intelligent infrastructure implementing comprehensive vaccine

76000 tons 15% 5500 tons 1580 tons traceability and control systems throughout the entire process while optimizing strategies Green Logistics to reduce existing logistics-related carbon emissions

107108

Scope 3 Emissions Scope 1 and Scope 2 Emissions2024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Impact Risk and Opportunity Management Pollution Prevention and Ecosystem Protection

To address potential risks and opportunities arising from climate change Walvax Biotechnology has implemented a comprehensive

process and framework for managing climate-related risks and opportunities. This approach aims to identify analyze assess and Emissions and Waste Management

clearly understand the scope of climate change risks and opportunities enabling more effective screening and management of

significant climate-related issues thereby enhancing our climate resilience.Walvax Biotechnology strictly adheres to relevant regulations including the Regulations on Administration of Pollutant Discharge

Permits. Environmental protection requirements have been integrated into the Company's development strategy and corporate

governance processes. Systematic management measures have been formulated for exhaust gas wastewater and solid waste

Drawing on recommendations from frameworks such as the IFRS S2 Climate-related Disclosures

Identification of with continuous monitoring of the treatment and discharge of these waste types. Monitoring data are reported and disclosed via we identify a range of climate risks and opportunities. This includes transition risks such as policy

Climate Risks and the National Pollutant Source Monitoring Data Management and Sharing System. The Company is committed to establishing an

Opportunities and regulatory risks technology risks market risks and reputational risks as well as acute and industrial environment characterized by "no visible emissions no detectable odors no audible noise and no perceptible dust." For

chronic physical risks. detailed information on environmental protection permits pollutant emissions environmental emergency management and self-

monitoring plans please refer to the Walvax Biotechnology Co. Ltd. 2024 Annual Report and Walvax Biotechnology Environmental

We employ internal and external environmental research and risk management tools to assess the Management Policy.Materiality

Assessment of likelihood of risk occurrence the degree of potential impact and the level of financial implications.Climate Risks and This assessment helps us determine the most significant climate change risks and opportunities During the reporting period the Company experienced no major

Opportunities facing our organization. environmental incidents nor did it face any penalties or legal Compliance rate for wastes emissions:

action from environmental authorities. There were no instances

of excessive or illegal emissions of exhaust gases or wastewater

For identified significant climate change risks and opportunities we develop tailored response pollutants and no violations related to waste disposal. 100%

strategies managing them through a combination of avoidance mitigation and adaptation

Management of measures.Climate Risks and

Opportunities Various functional departments business divisions and subsidiaries within the Company

Indicator Target 2024 Achievement Status

conduct targeted risk management and response activities regularly monitoring and tracking the

implementation progress of these strategies. Sulfur dioxide emissions per RMB 10000 output value 1% reduction from previous year

Nitrogen oxides emissions per RMB 10000 output value 1% reduction from previous year

Particulate matter emissions per RMB 10000 output value 1% reduction from previous year

Indicators and Targets Chemical oxygen demand emissions per RMB 10000 output

value 0.5% reduction from previous year

Target achieved

Ammonia nitrogen emissions per RMB 10000 output value 0.5% reduction from previous year

Indicator Target 2024 Achievement Status

Compliant disposal rate of hazardous and non-hazardous waste 100% compliance

Greenhouse gas

emission intensity 8% reduction by 2025 7.3% reduction in annual comprehensive energy consumption Enhance the resource utilization of

(Scope 1 and compared to 2023 equivalent value of Yuxi Walvax the Company's primary production waste during the production process

Scope 2) baseline base compared to 2023

Waste generation to reduce waste generation per RMB

10000 of output value

Indicator Unit 2024 Indicator Unit 2024

Diesel Tons 87 Direct greenhouse gas emissions (Scope 1) Tons of CO2 equivalent 7643.23

Natural gas 10000 cubic meters 340.87 Indirect greenhouse gas emissions (Scope 2) Tons of CO equivalent 34859.04

Greenhouse Gas 2

Energy EmissionsPurchased electricity 10000 kWh 6496.28 Total greenhouse gas emissions Consumption (Scope 1 and Scope 2) Tons of CO2 equivalent 42502.27

Total energy consumption Tons of standard coal equivalent 12652.10 Greenhouse gas emission intensity Tons of CO2 equivalent/RMB 10000 revenue 0.151

Energy consumption intensity Tons of standard coal equivalent/RMB 10000 revenue 0.0448 Note:

1. Total energy consumption is calculated in accordance with GB/T 2589-2020 as specified by the State Administration for Market Regulation and the

Standardization Administration of China.

2. Greenhouse gas emissions reported here refer exclusively to carbon dioxide emissions excluding other greenhouse gases such as methane and nitrous oxide

from other emission sources. Scope 1 greenhouse gas emissions derived from fossil fuel combustion activities (including diesel gasoline and natural gas)

and industrial production processes are converted to standard coal units as per the General Rules for Calculation of the Comprehensive Energy Consumption.Scope 1 greenhouse gas emission factors are calculated with reference to the Environmental Key Performance Indicators Reporting Guidelines issued by the

National Development and Reform Commission. Scope 2 greenhouse gas emissions encompass those from purchased electricity and heat with electricity

emission factors referencing the Announcement on the Release of Carbon Dioxide Emission Factors for Electricity in 2022 (Announcement No. 33 of 2024)

109 jointly issued by the Ministry of Ecology and Environment and the National Bureau of Statistics.) 1102024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Wastewater Management

The Company's wastewater is primarily generated from domestic sewage discharges from the circulating cooling system and

effluents from research and production activities. It strictly complies with relevant laws and regulations including the Law of the Indicator Unit 2024

People's Republic of China on Water Pollution Prevention and Control Discharge Standard of Industrial Water Pollutants and

Discharge Standards of Water Pollutants for Pharmaceutical Industry Bio-pharmaceutical Category. The Company has also Total exhaust gas emissions Tons 24566.23

implemented a series of internal guidelines such as the Walvax Biotechnology Waste Liquid Disposal Standard Management - Volatile Organic Compounds (VOCs) emissions Tons 15.17

Procedure which regulate wastewater treatment procedures monitoring protocols and operational requirements.Our drainage system separates rainwater from sewage and clean water from wastewater. All biologically active - Nitrogen Oxides (NOx) emissions Tons 26.39

wastewater undergoes high-temperature inactivation (121°C for over 30 minutes) before being mixed with other - Sulfur Oxides (SO ) emissions Tons 21.08

production wastewater and domestic sewage. This ensures that all wastewater is collected through sealed pipelines x

and fully treated in septic tanks and wastewater treatment facilities meeting the Discharge Standards of Water - Particulate Matter (PM) emissions Tons 4.70

Pollutants for Pharmaceutical Industry Bio-pharmaceutical Category (GB21907-2008) before discharge into the

municipal sewage network. - Ammonia emissions Tons 0.12

We have implemented an online monitoring system for real-time wastewater discharge surveillance. The Company - Non-methane Hydrocarbons Tons 12.12

operates 3 discharge outlets: 1 main wastewater outlet and 2 rainwater outlets. Data from the main wastewater

outlet is linked to national provincial and municipal environmental protection departments enabling joint monitoring

of wastewater flow pH value chemical oxygen demand ammonia nitrogen and other discharge parameters.Waste Management

In 2024 Yuxi Walvax continued to enhance its investment in wastewater treatment facilities implementing advanced

MBR (Membrane Bioreactor) technology for further processing of aerobic tank effluent. This initiative not only ensured The Company generates a wide variety of waste including general production solid waste domestic waste laboratory effluents

compliance with discharge standards further reduced concentrations of pollutants such as ammonia nitrogen significantly waste organic solvents waste alcohol discarded hazardous chemicals spent activated carbon waste reagents biological waste

improving the overall effectiveness of wastewater treatment. A comprehensive upgrade of the existing wastewater treatment from R&D and testing as well as pharmaceutical waste and expired drugs. In strict compliance with relevant laws and regulations

system was undertaken including the addition of aerobic tank media and a full automation overhaul. These improvements such as the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste and the

boosted wastewater treatment capacity while simultaneously enhancing the industrial park's aesthetic appeal. The minimal Measures for the Administration of Hazardous Waste Transfer the Company has established internal protocols including the Walvax

odors generated by the wastewater treatment plant are naturally absorbed by surrounding vegetation further mitigating Biotechnology Hazardous Waste Management Procedure and the Waste Disposal Standard Operating Procedure. These guidelines

environmental impact. ensure comprehensive control of solid waste across the entire lifecycle covering generation storage transportation and final

disposal.The Company maintains dedicated hazardous waste storage facilities. Temporary storage of

hazardous waste strictly adheres to the Standard for Pollution Control on Hazardous Waste

Storage (GB18597-2023) and local regulations at each operational site. Specialized personnel are

responsible for managing hazardous waste.Pharmaceutical waste infectious hazardous waste organic solvent waste chemical reagent

Hazardous

Waste bottles waste filters from contaminated areas spent ion exchange resins and spent activated

Indicator Unit 2024 carbon undergo on-site disinfection or sterilization. These are then stored separately from other

hazardous waste in designated areas before being transferred to qualified disposal facilities.Total wastewater discharge Tons 279723.76

Annual self-audits of hazardous waste management are conducted to identify and catalog

Chemical oxygen demand Tons 7.71 hazardous waste. Timely disposal is arranged through certified contractors ensuring proper

treatment of all solid waste in the project area.Ammonia nitrogen discharge Tons 0.25

Exhaust Gas Management

The Company's air emissions primarily consist of volatile organic compounds (VOCs) sulfur oxides (SOx) nitrogen oxides (NOx) General production solid waste and packaging materials are collected and recycled as renewable

and particulate matter generated during R&D and production processes. The Company strictly complies with applicable laws resources by authorized waste collection stations. Waste from purified water preparation systems

and regulations including the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution Non- and spent filters from sterile areas are regularly collected and disposed of by municipal sanitation

the Emission Standard of Air Pollutants for the Pharmaceutical Industry and the Emission Control Standard of Volatile Organic hazardous departments.Compounds for Industrial Enterprises. To further reduce emissions beyond regulatory requirements the Company continues to Waste

optimize its environmental treatment processes and has installed a range of high-efficiency end-of-pipe control systems. These Domestic solid waste is uniformly collected and regularly disposed of by sanitation departments.include high-performance air filters UV photocatalytic oxidation units activated carbon adsorption systems and biological Waste oil from grease traps is periodically removed by qualified contractors while septic tank

deodorization equipment. All five air emission outlets have been designed and installed in accordance with national standards. sludge is regularly cleaned and disposed of by local sanitation authorities.Exhaust gases are treated through high-efficiency filtration before being released into the atmosphere. In addition real-time online

monitoring systems are in place to continuously track emissions and ensure full regulatory compliance.

111 1122024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Resource Utilization and Circular Economy

The Company adheres to the principles of reduction resource utilization and harmless treatment. We actively explore

green environmentally friendly technologies optimize production processes and prioritize the use of low/non-toxic

chemicals to reduce process steps and hazardous waste generation. The material warehousing process has been

optimized: after successful inspection and release approval materials are now stored in their original packaging. This Water Resource Management

eliminates the previous need to remove and repackage materials into logistics boxes enhancing operational efficiency and

minimizing environmental impact. Production–sales coordination has been strengthened to improve finished product yield Walvax Biotechnology rigorously complies with the water resource management requirements outlined in its Environmental

and minimize pharmaceutical waste contributing to a continued reduction in hazardous waste emissions. Management Policy. The Company regularly conducts water risk analyses and implement a series of water conservation

management and technical measures focused on improving water resource utilization efficiency. Efforts are also made to strengthen

employee awareness of water conservation with the overarching goal of maximizing water resource utilization and minimizing

environmental impact. During the reporting period no major water resource-related compliance incidents occurred at any of our

operating facilities.Improve resource utilization Promote circular economy Enhance supply chain

efficiency to reduce waste practices and increase waste management of hazardous Water Risk Management

generation at the source recycling rates waste

Walvax Biotechnology utilizes advanced online analysis tools such as the World Wide Fund for Nature's Water Risk Filter and the

World Resources Institute's Aqueduct Water Risk Atlas to assess water risks for its production units. Based on the assessment

Indicator Unit 2024 results targeted risk prevention and mitigation measures have been developed to safeguard business continuity. The evaluations

indicate that the Company's major production and operational sites with higher water consumption are located in regions classified

Non-hazardous waste generated Tons 1941.35 with low water resource risk.Non-hazardous waste recycled utilized and disposed Tons 1941.35

Assessment Process for Water Resource Risk

Hazardous waste generated Tons 338.92

- Medical waste (HW02) Tons 197.53 Establish water risk Conduct risk exposure Perform risk vulnerability Develop water risk Formulate response

indicator database assessment matrix strategies

- Pharmaceutical waste (HW03) Tons 77.33 assessment

- Other hazardous waste Tons 64.06

Hazardous waste recycled utilized and disposed Tons 338.92 Water Conservation Measures

Production Base Water Stress

Hazardous waste emission intensity Tons/RMB 10000 revenue 0.0012 Level Reclaimed water Rainwater Concentrated Condensate Other water-saving

reuse reuse water reuse water reuse technical modifications

Yuxi Walvax Low

Yuxi Zerun Low

Biodiversity Protection

Walvax Biotechnology strictly adheres to biodiversity protection-related laws regulations

and international conventions including the Forest Law of the People's Republic of China We employ a dual-circuit water supply system to prevent production and operational disruptions caused by water

the Wildlife Protection Law of the People's Republic of China and the United Nations supply interruptions.Convention on Biological Diversity. The Company conducts regular assessments of its

operational dependence on and impact to natural resources and integrates biodiversity

protection practices across the full project lifecycle—from planning and design to construction Our comprehensive interconnected pipeline network forms a closed loop across various parts of the water supply

and operation. Management requirements are clearly outlined in the Walvax Biotechnology system. This design minimizes the impact of maintenance-related water shutoffs significantly enhancing water

Environmental Protection Management System. At each critical stage including site selection supply stability in the park and effectively meeting the facility's water load requirements.construction implementation and project acceptance emphasis is placed on protecting

original vegetation and natural habitats within project development areas. A precautionary

strategy of "avoid reduce restore and offset" is adopted to minimize ecological disruption.Furthermore we strictly implement the "Three Simultaneities" system ensuring that We conduct regular inspections and maintenance activating and deactivating water equipment and systems as

environmental protection facilities for new renovated or expanded projects are designed needed based on production conditions to ensure that water supply can consistently support necessary production

constructed and commissioned simultaneously with the main project. This approach aims to operations.minimize the impact on surrounding land and biological habitats during construction.

113 1142024 Sustainability and Environmental Social and Governance (ESG) Report Strengthening Governance Innovation-Driven Health Community Co-development Empowering People Green Development and for Sustainable Growth Empowerment Shared Health Benefits Energizing the Workplace Environmental Stewardship

Water Resource Efficiency Improvement Indicator Unit 2024

Water conservation goal Total water withdrawal Tons 692940.39

Walvax Biotechnology incorporates industry best practices

into its business operations and services. The Company To progressively reduce - Tap water/Municipal water withdrawal Tons 692940.39

conduct comprehensive water balance analyses to design

and implement efficient water resource management municipal water withdrawal per - Surface water withdrawal Tons 0

measures aiming to achieve our water resource - Groundwater withdrawal Tons 0

management objectives. unit of revenue year-on-year

Total water discharge Tons 282373.85

- Municipal sewage network discharge Tons 282373.85

● We perform water balance analyses to measure and evaluate water supply usage and discharge

Water in our factory production processes. Based on these findings we develop targeted measures to - Surface water discharge Tons 0

Balance improve water resource utilization efficiency.Analysis - Other discharge methods Tons 0

Total water consumption Tons 410566.54

● We enhance precision control of water usage by selecting water-efficient facilities and devices

during project construction and operation thereby reducing water resource consumption. Recycled water volume Tons 87476

● We maintain detailed water usage records categorizing and classifying water consumption Water recycling rate % 11.21%

statistics to accurately monitor usage patterns and optimize water resource allocation and

Water utilization.Conservation

● We conduct regular comprehensive inspections renovations and repairs of pipelines. We also

prioritize the maintenance of water and special gas systems promptly addressing leakage issues

to prevent unnecessary waste.Green Packaging

● Where environmentally permissible we install rainwater reuse systems in our facilities. These

Rainwater

Reuse systems utilize clean rainwater for road cleaning landscaping and toilet flushing thereby The Company has established the Walvax Biotechnology Environmental Management Policy to define and enforce green

improving our overall water recycling rates. packaging requirements. Our ongoing efforts focus on improving the utilization efficiency of packaging materials contributing to the

development of a resource-conserving society. Throughout our packaging design production distribution transportation and sales

processes we prioritize the use of recyclable materials. While ensuring compliance with GMP requirements we aim to simplify

packaging as much as possible. Through internal circulation resource recovery and reuse initiatives we promote the reduction

● Condensate water reuse: We actively promote water recycling technology in our projects utilizing of packaging materials throughout the product lifecycle thereby minimizing our use of natural resources and our impact on the

condensate recovery units. All generated condensate is recovered treated to standard at the ecological environment.boiler room and reused. Our Yuxi Walvax park saves approximately 76000 tons of water annually

through this process.● Concentrated water reuse: We automatically recover a portion of concentrated water within our

purified water preparation system increasing the overall wastewater recovery rate to over 80%.● Reclaimed water reuse: We have established a reclaimed water treatment and reuse system.Water Treated wastewater is used for landscape irrigation achieving zero discharge of production

Recycling wastewater while reducing water resource consumption. Hot water after natural cooling is

expected to save 85000 tons of water annually when reused.Annual water savings through Overall wastewater Projected annual water savings

condensate water reuse: recovery rate: over from reusing naturally cooled

approximately hot water:

76000 tons 80% 85000 tons

● We organize underground water supply pipeline leak detections utilizing advanced technologies

such as micro-detection probes and small robots. These tools allow us to comprehensively

Risk

Inspection examine our entire underground pipeline network for wear and deterioration enabling prompt

identification and repair of leaks and severely worn sections thus reducing or preventing water

resource waste.

115 1162024 Sustainability and Environmental Social and Governance (ESG) Report

Key Performance Table

Indicator Unit 2022 2023 2024 Indicator Unit 2022 2023 2024

Total assets billion RMB 15.328 15.589 14.724 Customer complaint response rate % 100% 100% 100%

Operating revenue billion RMB 5.086 4.114 2.821 Customer complaint resolution rate % 100% 100% 100%

Net profit attributable to shareholders of the listed

company billion RMB 0.729 0.419 0.142 Annual product recall rate % 0% 0% 0%

Total tax payment billion RMB 1.072 0.297 0.139 Total number of countries and regions exported to No. 18 19 22

Annual R&D investment million RMB 1052.8096 910.6104 700.4222 Annual exports to developing countries and regions million doses 7.5 6+ 9+

R&D investment as a percentage of operating

income % 20.70% 22.14% 24.82%

Total cash donations for charity

throughout the year million RMB 7.05 9.1818 5.1069

Number of R&D personnel persons 179 216 172 Annual incremental environmental investment million RMB 10+ 2.1645 2.9732

Proportion of female directors % 18% 18% 18% General or above-level environmental incidents cases 0 0 0

Anti-corruption training coverage % 100% 100% 100% Total chemical oxygen demand emissions1 tons 4.12 5.83 7.71

Effective report resolution rate % 100% 100% 100% Total ammonia nitrogen emissions2 tons 0.22 0.26 0.25

Labor contract signing rate % 100% 100% 100% Total particulate matter emissions tons 3.91 2.92 4.70

Social insurance coverage rate % 100% 100% 100% Total nitrogen oxide (NOX) emissions tons 18.9 30.76 26.39

Number of employees recruited during the

reporting period persons 755 400 67 Total energy consumption tons of standard coal equivalent 13352.10 13466.91 12652.10

Total number of employees persons 2249 2388 1932 Energy consumption intensity tons of standard coal equivalent/RMB 10000 revenue 0.0263 0.0327 0.0448

Incidents of labor discrimination cases 0 0 0 Direct greenhouse gas emissions (Scope 1) tons of CO2 equivalent 11288.34 10331.04 7643.23

Training coverage rate % 100% 100% 100% Indirect greenhouse gas emissions (Scope 2) tons of CO2 equivalent 29888.4 35682.25 34859.04

Total employee training hours hours 897246.1 270079.9 167469.3 Total greenhouse gas emissions (Scope 1 and Scope 2) tons of CO2 equivalent 41176.74 46013.29 42502.27

Annual production safety incidents cases 0 0 0 Greenhouse gas emission intensity tons of CO2 equivalent/RMB 10000 revenue 0.081 0.112 0.151

Employee physical examination coverage rate % 100% 100% 100% Total water withdrawal tons 506360.9 713256.75 692940.39

Occupational disease incidence rate % 0% 0% 0% Recycled water volume tons / 61040 87476

Total number of suppliers companies 324 418 486 Water consumption intensity tons/RMB 10000 revenue 0.996 1.734 1.455

Number of suppliers certified to quality companies 113 146 185 Total volume of hazardous waste management systems discharged tons 421.602 356.62 338.92

Number of suppliers certified to occupational

health and safety management systems companies 39 51 61 Hazardous waste emission intensity tons/RMB 10000 revenue / 0.0009 0.0012

Number of suppliers certified to environmental

management systems companies 54 69 71

Notes 1 & 2: Due to increased production demand the total volume of wastewater discharged in 2024 increased resulting in a moderate rise in the total discharge

of chemical oxygen demand compared to 2023. However with the commissioning of a new wastewater treatment station equipped with ammonia nitrogen removal

processes the efficiency of ammonia nitrogen reduction was significantly improved leading to a decrease in total ammonia nitrogen discharge compared to 2023.

117 1182024 Sustainability and Environmental Social and Governance (ESG) Report

Index Table About This Report

Shenzhen Stock Exchange Sustainability Reporting GRI Standards 2021 This is the eighth Social Responsibility / ESG / Sustainability Report (hereinafter referred to as "this report") published by Walvax Reporting Framework Guidelines (Referenced Framework) Biotechnology Co. Ltd. (hereinafter referred to as "Walvax Biotechnology"). This report adopts an open and transparent approach

Message from the to disclosing the Company's sustainability philosophy management practices and key performance in order to effectively address

Chairman / 2-22/2-23 issues of concern to stakeholders.About Walvax

Biotechnology / 2-1/2-2/2-4/2-6/2-16/2-28/201-1

Reporting Scope Reporting Principles

Sustainable Development Article 12 Article 13 Article 14 Article 15 Article 17 2-12/2-13/2-14/2-16/2-19/2-22/2-29/

Management Article 18 Article 51 Article 52 Article 53 3-1/3-2/3-3 Organizational Scope: The scope of this report aligns with This report follows the principles of materiality quantification

that of the annual consolidated financial statements of the balance and consistency.Strengthening Governance for Sustainable Growth Company.Materiality: Walvax Biotechnology conducts materiality

Guidance Through Party

Building / — Time Range: This report covers the period from January assessments to identify and evaluate ESG issues that are

1 2024 to December 31 2024. Some information may be significant to our business operations and to both internal

Corporate Governance / 2-9/2-10/2-12/2-15/2-27/405-1 appropriately extended to previous or subsequent years and external stakeholders. The key material topics identified

where relevant. This is an annual report; the previous edition through this process are highlighted in this report. For more

Business Ethics and Anti-

corruption Article 11 Article 19 Article 54 Article 55 Article 56 2-27/3-2/205-1/205-2/205-3/206-1 was released in March 2024. details on the materiality assessment process and results

please refer to the "Materiality Assessment" section in this

Information security and

privacy protection Article 11 Article 19 Article 48 418-1 report.Basis of Preparation

Innovation-Driven Health Empowerment Balance: This report presents an objective and balanced

This report has been compiled according to the GRI view of the Company's ESG performance by disclosing both

R&D Innovation Article 11 Article 19 Article 41 Article 42 Article 43 2-6/2-27/416-1 Standards by the Global Sustainability Standards Board positive and negative information without bias. No significant

the Shenzhen Stock Exchange's Guideline No.17 on Self- negative events requiring disclosure were omitted during the

Regulation for Listed Companies — Sustainability Reporting

Product quality and safety Article 11 Article 19 Article 47 2-25/2-27/3-2/416-1/416-2/419-1 reporting period.(Trial) and the Guideline No. 3 on Self-Regulation for Listed

Professional Customer Companies — Preparation of Sustainability Reports (Trial) Quantification: ESG performance indicators are disclosed in

Service Article 44 Article 47 2-27/417-1/417-2/417-3/418-1 the European Sustainability Reporting Standards (ESRS) quantitative terms and measurable performance targets have

the national standard Guidance on Social Responsibility been set when appropriate. The methodologies assumptions

Sustainable supply chain Article 11 Article 19 Article 44 Article 45 Article 46 2-6/3-2/204/308-1/414-1/414-2

Reporting (GB/T36001-2015) and the United Nations measurement standards calculation tools and sources

Sustainable Development Goals (SDGs). of conversion factors used for key performance indicators

Community Co-development Shared Health Benefits are explained in the relevant sections of the report where

applicable.Health Accessibility Article 47 2-23/2-27/203-1/203-2 Source of Information

Consistency: The statistical methods and disclosure

Heartwarming Charity Article 38 Article 40 3-2/203-1/203-2/413-1/415-1 All data and information presented in this report are derived approaches for the same indicators remain consistent across

from the Company's official documents statistical reports reporting periods. Any changes to the statistical or disclosure

Empowering People Energizing the Workplace financial statements and sustainability-related data submitted methodologies are fully explained in the report's notes to

by various business units and consolidated and verified by the

Workplace Diversity and ensure meaningful analysis and evaluation by stakeholders.Inclusion Article 49 Article 50 2-7/401-1/405-1/406-1 Company's sustainability management department. Unless

otherwise specified all monetary figures in this report are

Human Capital

Development Article 11 Article 19 Article 50 401-2/404-1/404-2/404-3

denominated in RMB. Report Availability

Occupational Health and 403-1/403-2/403-3/403-4/403-5/403-6/ This report is available in both printed and PDF electronic

Safety Article 50 403-7/403-8/403-9/403-10 Assurance of Accuracy formats. The electronic version can be accessed on the official

website of Walvax Biotechnology at https://www.walvax.com.Green Development and Environmental Stewardship The Company assures that there are no false records To continuously improve our reporting practices we welcome

Environmental misleading statements or significant omissions in the your feedback and suggestions. If you have any questions or

Management Article 29 Article 33 3-2/2-27/307-1 contents of this report and is responsible for its truthfulness comments regarding this report please contact us via email

Enhancement accuracy and completeness. This report has been reviewed at ir@walvax.com or by phone at +86 871-68312779.and approved by the Board of Directors and is released to the

Article 11 Article 19 Article 20 Article 21 Article 22 201-2/302-1/302-3/302-4/302-5/305-1/

Climate Change Mitigation Article 23 Article 24 Article 25 Article 26 Article 27 public.Article 34 Article 35 305-2/305-4/305-5

Pollution Prevention and 2-27/304-3/305-7/306-1/306-2/306-3/ Definition of Terms

Ecosystem Protection Article 11 Article 19 Article 29 Article 30 Article 31 306-4/306-5/307-1

For ease of reference and reading "Walvax Biotechnology

Resource Utilization and

Circular Economy Article 34 Article 36 2-27/303-1/303-3/303-5

Co. Ltd." is also referred to in this report as "Walvax

Biotechnology" "the Company" or "we."

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