Stock Code: 300957

云南贝泰妮生物科技集团股份有限公司2024

地址：云南省昆明市高新区科医路53号

电话：0871-68281899 Sustainability &

邮编：650106

电邮：ir@winona.cn Environmental Social and

Governance (ESG) ReportCONTENTS

Low Carbon and Circular Economy: Technological Precision:

Protecting a Green and Diverse Building a Skin Health

Ecosystem Ecosystem

About This Report 01 Green Packaging 43 Focus on Research and 71

Development

Message from the Chairman 03 Low Carbon Products 49

Product Quality 77

About Botanee 06 Green Procurement 51

Chemical Safety and Ingredient 80

[Spotlight] From Snow Mountains 15 Green Operations 54 Transparency

to Consumers: The ESG Journey of

Prinsepia utilis Royle Biodiversity Conservation 58 Customer Service 83

Sustainability Management 21 Climate Action 66 Skin Health Ecosystem Creation 91

Integrity and Transparency: Diversity and Equality: Gratitude & Goodwill:

Reinforcing the Foundation for Moving Forward Together in Unity Co-Creating and Sharing Value

Appendices Solid Business

Appendix 1: Table of Key Performance 131 Corporate Governance 31 Employee Rights and Care 99 Intangible Cultural Heritage Protection 118

Indicators

Risk Management and Internal Control 34 Employee Training and Development 106 Health Accessibility 122

Appendix 2: GRI Standards Index Table 138

Fair Business Environment 37 Employee Safety and Health 111 Rural Revitalization 125

Reader Feedback 142

Charity Influence 127Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

The report is published in Chinese and English. Should there be any discrepancies between the two versions the Chinese

About This Report version shall prevail.Stakeholders and the public’s suggestions and comments on this report are much appreciated. For any inquiries or

suggestions please contact our Board Secretary’s Office via the following means.This is the fourth sustainability & environmental social and governance (ESG) report released by Yunnan Botanee Bio-

Technology Group Co. Ltd. (hereinafter referred to as “Botanee” “the Company” or “we”) which demonstrates our

initiatives and performance in sustainability management in 2024. Address: No. 53 Keyi Road Kunming High-tech Industrial Tel.: 021-62321125

Development Zone Kunming Yunnan Province

Zip code: 650106 Email: ir@botanee.com

Reporting Boundary Basis for Compilation

The time frame of this report is from January 1 2024 This report is compiled by referring to the Rules

to December 31 2024 (hereinafter referred to as the Governing the Listing of Stocks on Shenzhen Stock

“current year” or “Reporting Period”). Some parts of this Exchange (revised in January 2022) the Self-regulatory

report extend beyond 2024 and into 2025 aiming to Guideline No. 1 for Companies Listed on the Shenzhen

provide readers with a broader perspective. Social data Stock Exchange – the Standardized Operation of

(such as employees intellectual property rights etc.) and Companies Listed on the Main Board the Self-Regulatory

financial data (such as operating income tax payments Guidelines No. 17 for Companies Listed on Shenzhen

etc.) disclosed in this report cover Botanee its wholly- Stock Exchange—Sustainabil ity Report (For Trial

owned subsidiaries and its holding subsidiaries. Due to Implementation) the Self-Regulatory Guidance No. 3 for

gradual improvements in environmental data collection Companies Listed on the ChiNext Market of Shenzhen

mechanism the scope of environmental data disclosed Stock Exchange—Preparation of Sustainability Report

for the Reporting Period covers our office areas the Global Reporting Initiative (GRI) Standards the

warehouses specialty stores medical aesthetics centers United Nations Sustainable Development Goals (SDGs)

self-owned production bases and the manufacturing and more.bases of some of our core suppliers. For detailsplease refer to “Appendix 1: Table of Key PerformanceIndicators”.Information Sources Access to the Report

Unless otherwise specified the information and You may visit the website of Botanee (https://www.data cited in this report come from Botanee’s official botanee.com.cn) or the Shenzhen Stock Exchange

documents statistical reports financial reports and (http://www.szse.cn) or www.cninfo.com.cn to read or

relevant public documents. Botanee promises there download this report.are no false records misleading statements or major

omissions in this report and the Board of Directors is

responsible for the authenticity and accuracy of the

content herein. All monetary amounts in this report are

presented in CNY.

01 02Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Message from the Chairman At the international cosmetics competition COSMETOPIADS & INPD we won the “2024 INPD AWARDS - Raw Materials”. Botanee Research Institute stood out among research institutes from 14 countries and represented China in receiving the

“2024 COSMETOPIADS - Public Research Excellence” award.Practicing green ideas by building green supply chains

We are firmly committed to building an environmentally friendly enterprise that upholds green and low carbon

Only by exploring new frontiers can we venture far. In 2024 we development. Endeavors are made to create a health ecosystem through green circular low-carbon manufacturing

continued to move forward steadily breaking new ground in scientific practices and operations. We have established a green supply chain management system and an energy target

research and making bold strides in brand development leaving behind management system following the principle of low-carbon-driven product lifecycle. During the Reporting Period we

a heartfelt and resolute trail of progress. During the Reporting Period continued to optimize environmental performance around energy targets and officially put into use our solar photovoltaic

Winona officially launched its 2.0 strategy with the “Red Book 3.0” panels. For our core products we implemented a series of packaging innovation and upgrade initiatives and continuously

making a refreshed debut. The brand philosophy was comprehensively promoted the “Save the Earth: Recycle and Be Rewarded” and the “Oasis Protection Action” empty bottle recycling

upgraded to “dedicated to sensitive skin”. We continued to focus on programs encouraging more consumers to participate in recycling empty bottles and packaging.our star product strategy delving deep into user needs and awareness

and meeting the diversified needs of sensitive skin in sun protection Over the past year Botanee continued its long-term commitment to protecting Haba Snow Mountain Nature Reserve and

whitening anti-aging and other comprehensive skincare areas. the habitat of Rhinopithecus bieti. In cooperation with partners we launched a series of biodiversity-focused initiatives

such as the “Collaborative Biodiversity Conservation Action” conducting in-depth research on Yunnan’s specialty plants

while actively safeguarding the planet’s biodiversity and fostering harmony between humanity and nature.Spread goodwill and making contributions

We have carried out the “Winona Sunshine Program” for the ninth consecutive year providing free medical services and

educational activities in regions with strong ultraviolet radiation including Inner Mongolia Qinghai Yunnan and Tibet.This year we visited Altay Xinjiang which has more than 3000 hours of sunshine annually to promote scientific skincare

Taking concrete actions to fulfill social responsibilities and proper sun protection awareness among local residents. In addition projects such as the “Botanee First Aid Stations”

“Botanee Hope Public Baths” and “Baby Project” for children with atopic dermatitis (AD) are helping more people move

We integrate sustainable development and corporate social responsibility into our business operations releasing towards the goals of health and beauty.ESG reports for four consecutive years since our IPO. In 2024 Botanee was named among the “2024 Top 100 ListedCompanies with ESG Best Practices in China” and rated AA by Wind. Additionally we were rated AA by Sino-Securities In the field of intangible cultural heritage (ICH) preservation we have integrated Yunnan’s local heritage into our products

Index on the “ESG Excellence List of Major Consumer Sector Companies Listed on the A-Share Market” and ranked first and launched multi-channel campaigns to promote ICH awareness. We actively participate in efforts to protect and pass

in the household and personal product sector. down ICH culture. One of our key initiatives is the “Winona Women Care Alliance” which focuses on advocating for the

fair development rights of female weavers of Yunnan’s ICH traditions. We provide skills training and support to help more

To further deepen our efforts across multiple dimensions and explore more values “beyond business” we aligned with the people discover the rich craft of traditional Yunnan weaving. This initiative has been warmly received and appreciated

UN’s SDGs to formulate the strategic direction of sustainable development. We identified 2030 Sustainable Development by consumers. We remain committed to supporting disadvantaged groups through a variety of efforts including rural

Management Goals and will gradually develop corresponding action plans. In addition to understand the concerns of revitalization youth education and development aid. In 2024 Botanee contributed a total value of over CNY 21.32 million

stakeholders we conducted annual reviews and updates on material ESG topics incorporating financial materiality (including funding and supplies donations) to charitable causes.considerations.With the sails raised for greater ambitions we look ahead to 2025 and will remain committed to building a multi-brand

Breaking new ground through technological innovation matrix centered around creating China’s skin health ecosystem. We aim to establish a new benchmark in skin health and

usher in a new era of skin wellness. Botanee will continue on a path of sustainable high-quality development remaining

We always adhere to the principle of balancing botanical science with integration of industry academia research and steadfast in our vision to “bring health and beauty to everyone” with a mission to “create China’s skin health ecosystem”

medicine. By the end of 2024 Botanee Yunnan Characteristic Plant Extraction Laboratory that we took a lead in building unfolding a new chapter of sustainable innovation in China’s beauty industry and moving together toward a greener and

entered a new phase of development. In December a new laboratory with a gross floor area of nearly 5000 square more inclusive future.meters was successfully completed in Kunming Yunnan. It is the first provincial-level laboratory in China dedicated to the

research and development of specialty plants. As of the end of 2024 Botanee has successfully registered and obtained

approval for 12 new cosmetic ingredients including Ludwigia adscendens Salvia plebeia Erigeron breviscapus Taxus

wallighiana mairei seed oil and Meconopsis racemosa. Through leading botanical science we are contributing solidly to Guo Zhenyu

building the “Green Valley of Beauty in China”. Chairman and President of Botanee

April 2025

At the origin of raw materials we continue to refine our efforts in exploring specialty plant resources in Yunnan such

as Prinsepia utilis Royle Camellia reticulata (Yunnan camellia) and Ludwigia adscendens. These efforts not only protect

biodiversity but also promote sustainable regional economic development achieving a balance between ecological

conservation and economic growth. In addition we focus on developing high value-added specialty botanical healthcare

products creating a product and enterprise cluster centered around efficacious cosmetics functional foods and

pharmaceuticals while also maintaining ecological balance for biodiversity.

03 04Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

About Botanee

Board Statement Company Overview

Established in 2010 Botanee is a leading group company in the big health industry dedicated to skin health in the

Internet+ era. It integrates R&D production and marketing aiming to build a sustainable ecosystem for skin health and

The Board of Directors attaches great importance to sustainability management boost the development of China’s skin care industry. The Company was listed on the Shenzhen Stock Exchange’s ChiNext

and has built an effective mechanism for this purpose in accordance with the Code Board on March 25 2021 with a stock code of 300957.of Corporate Governance for Listed Companies released by the China Securities

Regulatory Commission. We exert continued efforts to improve our sustainability Botanee has been identified as a national high-tech enterprise and a national technology innovation demonstration

governance structure enhance the Board of Directors’ supervision and participation enterprise. Our Research and Development Center combines academic research with industry innovation and healthcare.in sustainability-related topics and actively take sustainability management into It integrates cutting-edge technologies from botany biology dermatology and more to probe into effective active

account in our decision-making and business practices to foster stable long-term ingredients in specialty plants in Yunnan and develop a range of patented technologies for next generation skincare

corporate development. products. Since its inception our skincare brand Winona enjoys wide recognition from consumers and skincare

professionals for the effectiveness and safety of its products. It applies a number of patented technologies adopts

As the decision-making body for Botanee’s operations the Board of Directors dermatological level mild formulas and abides by Good Manufacturing Practices (GMPC) widely recognized by the United

assumes overall responsibility for the Company’s environmental social and States and the European Union.governance strategies and reporting. It authorizes the Strategy Committee to

supervise and manage sustainability-related topics who coordinates the day-to-day Following the strategy of enhancing foundation through offline pharmaceutical channels and achieving full online

efforts in these topics through the Board Secretary’s Office. coverage and by leveraging the internet and new technologies such as AI we have created a new retail system with

omnichannel capabilities and successfully realized online-merge-offline (OMO) marketing. This makes Botanee a leading

The Board of Directors takes seriously the significant impact that ESG risks may have company in China’s big health industry in terms of Internet+.on the Company. It improves sustainability management on a regular basis through

identifying ESG risks analyzing macro policies and hot spots and benchmarking with With outstanding R&D capabilities and differentiated operating mode Botanee driven by years of professional dedication

leading companies in the industry. Interviews surveys and expert assessments are to skincare embraces the internet with an open mindset and strives to create a bright future for skin health.performed to determine the materiality of ESG topics thereby ranking their priority

and clarifying the focuses of Botanee’s sustainable development.Corporate Culture

During the Reporting Period the Board of Directors reviewed the materiality of ESG

topics and the sustainability report for 2024. This report provides detailed disclosure

of above mentioned environmental social and governance-related topics which

were deliberated and approved by the Board of Directors on April 23 2025.Our vision Our mission Our core values

To bring health and To create China’s skin Pursuit of Excellence Simplicity

beauty to everyone health ecosystem and Transparency

Result Orientation Diligence and

Dedication

Gratitude and Goodwill Integrity

and Pragmatism

05 06Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Main Business and Brands In recent years Botanee is present in large shopping centers across the country having become a showcase of Chinese

brand retail.As a professional cosmetics manufacturer we provide professional mild skincare products based on plant-derived active

ingredients under the core brand Winona and specialize in addressing sensitive skin concerns. In terms of product sales we

deeply integrate online channels with offline channels. Our product portfolio includes skincare products such as creams toners

masks serums and lotions as well as makeup products such as sunscreens BB creams and makeup removers. We also offer

medical products for the protection and care of barrier damaged skin after minimally invasive procedures such as hyaluronic

acid-based biofilms and hyaluronic acid-based dressings.Botanee's Brand Matrix

Winona store at Kunming Winona store at West Lake Intime Winona store in Haikou

Winona Winona Baby Changshui International Airport Department Store Hangzhou International Duty Free City

A dermatological-grade skincare brand that protects Building on the legacy of the parent brand “Winona” this Opened in June 2021 Opened in December 2021 Opened in October 2022

sensitive skin with professional expertise based on professional baby and child skincare brand is developed in

professional dermatology dedicated to the research collaboration with pediatric dermatology experts focusing

and development of Yunnan specialty plants and on effective skincare for infants and children specifically

empowered by technology and evidence-based targeting the eczema segment. Based on dermatological

support. It offers professional precise and safe expertise and clinical experience it offers an ingredient-

skincare solutions with effective results. streamlined solution with exclusive patented plant-based

formulas for infants and young children’s skin care.Winona store at Nanjing Central Winona store in Henan Winona store at Shanghai The

AOXMED Beforteen Plaza Sanmenxia Place

Created for professional beauty this brand focuses Beforteen collaborates with a team of dermatology Opened in January 2023 Opened in May 2024 Opened in June 2024

on skin rejuvenation bridging medical aesthetics with experts to conduct case studies on over one million

home beauty. It offers highly effective and safe in- cases. Combining AI-assisted consultations it provides a

clinic device-based treatments combined with home- personalized comprehensive acne treatment solution foruse medical-grade sequential skincare. At the same users based on their different acne types including “Foodtime it promotes mindful youthfulness advocating for + Medicine + Makeup” in an innovative and integrated

the right philosophy to combat skin aging and achieve approach.comprehensive anti-aging for both body and mind.Pure & Mild Za Winona store at Kunshan Winona store at Taian Wuyue Winona store at Guangdong

Qingyang Wanda Plaza Plaza Maoming Aegean Place

With 23 years of brand history it is specifically designed Focusing on the skin characteristics of Asian women

for Chinese women. Pure & Mild carefully selects rare it creates functional base makeup products providing Opened in June 2024 Opened in June 2024 Opened in June 2024

plants from around the world combining cutting-edge consumers with multi-functional easy-to-use and cost-

skincare technology and active ingredients to offer effective makeup solutions. Positioned as an international

gentle and long-lasting plant-based skincare solutions multi-functional light makeup brand it allows users to

that bring youthful vitality to the skin. The core products effortlessly enjoy a beautiful everyday look. The core

of the “Pure & Mild” brand include toners lotions and products of the “Za” brand include primers sunscreens

face creams. and compact powders with the flagship product the

primer being a bestseller internationally for 21 years.Za store at New Century Za store at NCDS Fuling Pure & Mild store at CBEST

Center Handan Hebei District Chongqing Shapingba District Chongqing

Clinmate

Integrating software hardware products and services Opened in December 2022 Scheduled to open in May 2025 Opened in

May 2023

Clinmate is committed to building a smart ecology for skin

diagnosis and treatment.

07 08Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Milestones of the Year

MayWinona’s “May 25National Skincare Day”

public welfare action

Botanee Group co-initiated began again Botanee Group’s

the PCHi Sustainable ESG performance

March Beauty Initiative July was rated AA by

Botanee Group Wind and AA by Winona won thewas honored Sino-Securities “TMall Beautywith the Index Awards” for seven“National May 1 consecutive yearsLabor Medal” with a Yunnan

Winona officially Winona successfully Botanee won the Intangible Cultural

announced the hosted the 5th 2024 Science and Heritage Grand

2.0 upgrade China Sensitive Skin Technology Award - Show lighting up

strategy and Summit Forum First Prize of National the 2024 TMall

launched the Red Business Science and Beauty Awards

Book 3.0 version Technology Progress

Award by China

General Chamber of

Commerce

Botanee sponsored

students from the Hope

High School Project

for three consecutive

years who successfully

April Botanee Group graduated and entered At the 2024 CHEO was included in their dream institutions Conference Botanee

"2024 Forbes Winona released the

China Top 50 Botanee Group White Paper on the

Brands Selection" showcased multiple Trends of China’s Retail

AOXMED debuted at brands at the 8th Pharmacy Functional

the AI Women Elites China-South Asia Botanee Group June Skincare Products

Forum Exposition (CSAE)officially started

the Collaborative

Biodiversity

Conservation

Action Botanee presented new

research results on "Four-

in-One" whitening at the

Asian Dermatological

Congress (ADC)

August

09 10Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Key Figures for 2024

Beforteen promoted

its graded acne

treatment concept at Operations

the First National Acne November

Academic Conference Achieved CNY 5735.87 million ofoperating revenue a year-on-year growth of 3.87% in 2024

Created CNY 503.1 million of net profit attributable to shareholders of the parent company in 2024

Botanee Group was

awarded the 5th

Quality Award of the Paid CNY 679.45 million of taxes a year-on-year growth of 3.24%Botanee Group was

People’s Government named one of the

September of Yunnan Province Top 50 Most Valuable Invested CNY 336.73 million in R&D accounting for 5.87% of our operating revenue in 2024

ChiNext-listed

Companies Ranked No.1 in China for sales volume of functional skincare products; stood as the only Chinese brand among the

The Winona Sunshine top 10 beauty and cosmetics brands on Tmall Double 11 for 8 consecutive years from 2017 to 2024

Program entered its

9th year delivering Winona presented its 37.79 million registered members across all platforms (Winona and Winona Baby) love and protection in

Altay new scientific research findings at the 19th 36.5% overall repurchase rate (Winona and Winona Baby)

Annual Meeting of

China Dermatologist

Association & National

Congress of Cosmetic

Dermatology

Environment

2.06 tCO2e/CNY 1 million in revenue 0.59 tce/CNY 1 million in revenue

Greenhouse gas emission density (by revenue) Comprehensive energy consumption density (by revenue)

in 2024 in 2024

0.022 thousand m3/CNY 1 million in revenue 2.12 tons/CNY 1 million in revenue

Operational water consumption density (by revenue) Packaging materials consumption intensity (by revenue)

in 2024 in 2024

Botanee Group

participated in the 2670753 valid empty bottles recycled 8 times the amount recycled in 2023

Tengchong Scientists

Botanee Group presented its Forum and delivered

October core brands at the 2024 China

the Research Report

Association of Fragrance Flavor and on Specialty Plant

Cosmetic Industries Annual Meeting Application of the Group Society

Cumulative patents granted: 281 Consumer satisfaction scores: 93.63

Botanee made plant-based

ingredient breakthroughs In 2024 the Group continuously invested CNY 21.32 million in public welfare supporting 38 projects and directly benefiting

Botanee Group won two by having its 12 new nearly people.international awards at the cosmetic ingredient filings 260000

2024 COSMETOPIADS & INPD approved

In 2024 3956 employees in the Group Proportion of female managers: 53.40%

December

Ethnic minority employees accounted for approximately 9.02% of the Group’s total workforce in 2024

Botanee was selected

in the first batch of the In 2024 the Group had 435 R&D personnel accounting for 11.00% of total employees

Botanee Group was awarded China Famous Consumerthe “First Yunling Philanthropy Products List Among them 40.46% hold a master's degree or higher and 3.68% hold a doctoral degreeAward: Donator Enterprise”

20 “Botanee Hope Public Baths” completed to date A total of 364188 hours of was conducted by the Group

1112“Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

External Recognition 2024 Sustainability Practice Model among Listed Companies 2024 Intangible Cultural Heritage Renewal - Brand

with Outstanding Contribution in Promotion

China Association for Public Companies

Weibo

Science and Technology Award - First 2024 Responsibility Fulfillment Model

Prize of National Business Science and

National Technology – ESG Disclosure Pioneer of the YearNational May 1 Labor Medal Technology Progress Award

Innovation Demonstration

All-China Federation China General Chamber of Commerce The Paper

Enterprise of Trade Unions Included among the first China

Famous Consumer Products

Ministry of Industry and

Information Technology of the Ministry of Industry and Information Technology

People’s Republic of China of the People’s Republic of China

2024 Forbes China Brand Value 2024 Good Company Top 50 –

Series Selection – Top 50 Brands Innovative Development Award

Selection

Jiemian News

Forbes

5th People’s Government of Yunan

Province Quality Award

Corporate Social Responsibility

People’s Government of Yunan Province Forum – Green Development Model 2024 Green Development Model

people.cn The Beijing News Zero Carbon Research

Institute

Manufacturing Single-

Item Champion

Enterprise of Yunnan

Province

Department of Industry and

Information Technology of Social Responsibility Fulfillment 2024 Lanjinger V Award – ESG

Yunnan Province Model among National Brands Value Enterprise of the Year

news.cn lanjinger.com

First Prize of Yunnan Provincial Patent 2024 Top 100 Listed Companies China Cosmetic Industry Top 100Award for “Sunscreen Stabilization with ESG Best Practices inCompound Sunscreen Spray Preparation China: AA Rating

Cosmetics Industry Annual Conferenceand Preparation Method” Wind ESG

Department of Human Resources and Social

Security of Yunnan Province and Yunnan

Administration for Market Regulation

2024 INPD AWARDS-The 18th “Top 50 Most Raw Materials and“First Yunling Philanthropy Award – Donator Enterprise” COSMETOPIADS-Public

Rated “A” for information disclosure Valuable ChiNext-listedDepartment of Civil Affairs of Yunnan Province and Companies” Research Excellence (Botanee)

Shenzhen Stock Exchange Department of Human Resources and Social Security of Yunnan Province Securities Times 2024 COSMETOPIADS & INPD

Ranked first in the Household and

Personal Products Rankings on the 2024“ESG Excellence List of Major Consumer China Cosmetics Industry BrandSector Companies Listed on the A-ShareMarket” with an AA rating China Association of Fragrance Flavor and Cosmetic Industries Annual Meeting

Sino-Securities Index

13 14Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

[Spotlight] From Snow Mountains 2 Power of Innovation: Breakthroughs in Active

to Consumers: The ESG Journey of Ingredient Development from Prinsepia utilis Royle

Prinsepia utilis Royle Prinsepia utilis Royle harvested from the foot of Haba Snow Mountain contains unique active compounds gifted by nature. To better serve human skin care with this precious gift Botanee’s R&D team employed cutting-edge technologies

At the Prinsepia utilis Royle planting demonstration base located at an altitude of 3000 meters at the foot of Haba throughout raw material development formulation and screening stages embedding ESG principles into the process. This

Snow Mountain in Yunnan a Prinsepia utilis Royle tree is thriving - growing from a small seedling into a flowering led to highly efficient extraction and in-depth development of the active ingredients of Prinsepia utilis Royle representing

plant. By next spring its fruits will emerge on the branches and ready for harvest in a few months. a perfect transformation from nature to technological innovation.This seemingly ordinary plant is about to embark on an extraordinary journey eventually becoming the star

ingredient in Winona Special Care Cream. The powerful restorative Prinsepia utilis Royle oil derived from it will Prinsepia utilis Royle oil

help protect every inch of sensitive skin. Throughout this journey - from planting and harvesting to production

transportation and ultimately consumption - every step reflects the concept of green development forming a During the raw material development phase the R&D team

skincare industry chain that is both responsible and heartfelt. used subcritical low-temperature cold pressing technology and

six ultra-refinement processes to extract pure natural and safe

Prinsepia utilis Royle oil from Prinsepia utilis Royle kernels. This

process not only preserved the oil’s active ingredients to the

1 The Cradle of Seeds: The Prinsepia utilis Royle Planting greatest extent but also reduced unpleasant odor molecules Demonstration Base at the Foot of Haba Snow Mountain by over 40% compared to similar products. Research confirmed that Prinsepia utilis Royle oil has excellent skin barrier repair

Haba Snow Mountain lies in the “Vertical Canyon in Southwestern China” and “Three Parallel Rivers of Yunnan effects. Compared with conventional ceramides and commonProtected Areas” World Heritage Site for Nature. It is a key distribution area for endemic species in northwestern plant oils ceramides derived from Prinsepia utilis Royle oil

Yunnan and one of China’s critical regions for biodiversity conservation. At the foot of Haba Snow Mountain in showed significantly superior performance in barrier recovery.Shangri-La Yunnan Province sits Botanee’s Prinsepia utilis Royle planting demonstration base at an altitude of 3000

meters. This base is the natural habitat of Prinsepia utilis Royle and a core planting area reserved by Botanee for Polysaccharides from Prinsepia utilis Royle

biodiversity conservation and sustainability promotion. It represents the first step in our ESG journey and the starting

point of Prinsepia utilis Royle’s journey to the world.Beyond oil extraction the R&D team further explored the valueHere we adhere to the concept of “wild world- of the residual kernel powder after oil pressing. Using layeredsimulated planting" strictly following natural temperature control technology and a combination of high-

laws in plantation management and avoiding the temperature quick extraction layered purification and low-

use of pesticides fertilizers and other materials temperature freshness locking the team successfully extracted

that may negatively impact the ecosystem. polysaccharides from Prinsepia utilis Royle with a total

The running of this planting base has not only polysaccharides content exceeding 30%. Experimental data

protected the surrounding ecological environment demonstrated the strong soothing and restorative potential of

but also enabled full control over the industry polysaccharides from Prinsepia utilis Royle.chain - from seed selection and planting to

processing - thereby ensuring a sustainable These breakthrough achievements marked a new milestone

supply of key ingredients for Prinsepia utilis Royle- for Botanee in raw material innovation and active ingredient

based products and demonstrating our strong development injecting robust momentum into transforming

commitment to environmental protection and Prinsepia utilis Royle from a natural resource into a functional

sustainable resource use. skincare ingredient.Key Progress during the Reporting Period Key Progress during the Reporting Period

In 2024 we completed a comprehensive upgrade of the Prinsepia utilis Royle planting base further optimizing The second-generation Winona Sensitiveness Relieving Moisturizing Tolerance-Extreme Cream was upgraded

the planting environment and the management model. Given the long propagation cycle and difficulty in selecting to Version 2.0 with polysaccharides from Prinsepia utilis Royle replacing the previous Prinsepia utilis Royle oil

quality seeds for Prinsepia utilis Royle we introduced over 600 high-quality seedlings sourced from various regions as the core ingredient. These polysaccharides have been shown to upregulate CLDN-5 gene expression and

in Yunnan and established 13 germplasm resource banks in different locations. These efforts not only enriched the downregulate substance P expression delivering enhanced skin-repairing and soothing effects. At the same time

genetic diversity of Prinsepia utilis Royle but also laid a solid foundation for future scientific research and industrial Winona upgraded its formulation technology. The newly developed retention technology enhances the product’s

applications. targeting ability and efficacy.

15 16Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

3 A Green Industry Chain: Low-Carbon Commitment Green Packaging: The Environmental Mission of Prinsepia from Laboratory to Store 4utilis Royle-Based Products

As Prinsepia utilis Royle moves from the laboratory to the market Botanee incorporates carbon reduction practices In the final packaging process of Prinsepia utilis Royle- Key Progress during the Reporting Period

and efficient energy use throughout every stage. We are committed to minimizing environmental impact while based products Botanee remains committed to the

ensuring product quality. integration of sustainability and innovation. By combining

the natural properties of Prinsepia utilis Royle with The second-generation Winona Special Care

sustainable packaging design we not only carry forward Cream with Prinsepia utilis Royle as the core

its ecological significance but also allow every consumer to ingredient incorporates sustainable design

Manufacturing Retail operations feel the sense of responsibility behind this gift from nature concepts into its packaging. The upgraded

outer packaging offers a more premium texture

The new base of our new central factory which LED energy-saving l ighting and intel l igent completing the closed loop of the green value chain. while the inner cartridge continues the vacuum

was officially put into operation in 2023 is built temperature control systems have been installed Botanee’s series of initiatives in packaging design and freshness-locking concept. The new refillable

with low carbon and environmentally friendly in stores. Compared with traditional lighting recycling include: cartridge design reduces packaging waste

materials and equipped with a photovoltaic LED fixtures reduce energy consumption by and cuts plastic usage by 39% compared tosystem. It is there that the remarkable “Chinese approximately 40% and have a longer service the former version offering consumers moreingredient” is carefully refined further enhancing life. The intelligent temperature control system sustainable choices.the green performance of our products. in stores dynamically adjusts indoor temperature

and humidity based on customer traffic and In packaging design and development we continuously

outdoor weather conditions. innovate to achieve green packaging through advanced

processes. In 2024 we replaced lithographic printing

in logistics packaging with eco-friendly water-based

printing which has been applied to over 2 million cartons

significantly reducing resource consumption during the

printing process.The logistics network has been optimized by establishing core warehouses

effectively shortening the distance between warehouse transfers.Polypropylene (PP) turnover boxes have been promoted to replace single-use

corrugated cartons enabling circular use of materials. New energy vehicles In packaging reduction we have explored ways to

have been introduced for goods transfer and all fuel-powered forklifts have eliminate unnecessary or replaceable packaging elements

been replaced with electric models. such as using QR codes instead of paper instructions and

optimizing their integration with product packaging.Warehousing and transportation

We have partially replaced traditional plastic cushioning

with degradable materials (100% degradable molded pulp).From raw material sourcing to product delivery We offer refill packs to encourage reuse and provide more

Botanee has built a low-carbon and highly efficient sustainable options for consumers.green industry chain through a series of innovative

initiatives and rigorous management practices.This adds even more green value to the entire

journey of Prinsepia utilis Royle from a gift of

nature to a premium skincare ingredient. We emphasize ease of recycling in packaging design. For example we are gradually transitioning from standard

cardboard to lower carbon footprint more recyclable white cardboard. In terms of craftsmanship we have replaced

traditional film coating with transfer aluminum technology making the packaging easier to recycle and process. To

promote circular resource use we continuously promote the “Save the Earth: Recycle and Be Rewarded” empty bottle

recycling program encouraging consumers to actively participate in packaging recycling and support resource reuse

together.

17 18Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Alkekengi officinarum

5 From Prinsepia utilis Royle to Natural Beauty - Botanee’s ESG Commitment and Biodiversity Paris yunnanensis

Conservation

Through green practices spanning the entire process from raw materials to packaging Botanee Prinsepia utilis Royle

not only transforms Prinsepia utilis Royle into a star skincare ingredient but also turns this gift

from nature into a responsibility and commitment to protecting the planet.The story of Prinsepia utilis Royle is only the beginning. Rooted in the rich natural resources of

Yunnan Botanee is committed to sustainable development and the harmony between people and

nature. Based on five core specialty plants in Yunnan namely Prinsepia utilis Royle Portulaca

oleracea (common purslane) Alkekengi officinarum Paris yunnanensis (Yunnan manyleaf paris

rhizome) and Camellia reticulata (Yunnan camellia) Botanee continues to explore the potential

value of local native plants in this biodiversity treasure trove. These are transformed into

efficacious skincare ingredients to deliver high-quality product experiences to consumers while

preserving ecological balance in the region. Looking ahead Botanee will continue to uphold the

philosophy of “nature-inspired science-driven” taking concrete action to protect our planet and

offering consumers more care and comfort derived from nature.Camellia

reticulata

Portulaca

oleracea

19 20Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Sustainability Management Philosophy Pillar Strategic initiatives and management goals Material topics SDGs

Integrity and 1. Establish a scientifically effective sustainable governance Corporate governance

Transparency: system and a comprehensive management framework Sustainability management

Guided by the vision “to bring health and beauty to everyone” we incorporate sustainability into our business philosophy. Reinforcing the integrating the concept of sustainable development Fair business environment

We strive to create an honest and trustworthy business ecosystem explore technology-enabled skincare build a diverse Foundation for into corporate decision-making to ensure the effective Solid Business Risk management and

and inclusive workplace prioritize talent development and take practical actions to promote biodiversity conservation implementation of the Company’s sustainability strategy. internal control

and rural revitalization. Solid efforts are exerted to strike a balance between economic value and social value. 2. Incorporate ESG risk management into the overall risk

management framework identifying and managing various

ESG risks to prevent them.Philosophy and Strategic Direction 3. Build a responsible supply chain requiring suppliers to sign the Supplier Code of Business Ethics and adhere

of Sustainability Development to regulations regarding human rights business ethics

environmental and social responsibilities.Low Carbon 4. Establish a carbon inventory management system and Green packaging

Awareness Green and Circular gradually build a product carbon footprint assessment Low carbon products

building technology Economy: platform; encourage key suppliers to provide detailed

Protecting Green procurementSustainable Sustainable carbon emission data and continuously reduce the product’s Green operations

advocacy products a Green environmental footprint throughout its entire life cycle.and Diverse Climate action

Ecosystem 5. Significantly increase the use of clean energy in

production and transportation by installing distributed Conserve biodiversity

photovoltaic power generation units at central factories and

All for the health

Integrity and and beauty of Responsibility increasing the proportion of new energy vehicles in logistics.transparency humans and driven 6. Establish an innovation mechanism for green packaging

Sustainable nature Sustainable and design promote product packaging reduction plastic

governance marketing reduction and the use of recyclable materials; replace

plastic packaging with eco-friendly and recyclable materials

such as glass and PCR while also increasing the use of

Value sharing alternative packaging and bottle recycling.Sustainable impact 7. Support sustainable forest management with the goal

of achieving a 98% application rate for FSC-certified paper

products by the end of 2030.

8. Ensure that over 85% of plastic packaging is reusable or

recyclable by the end of 2030.

9. Implement green packaging design by adjusting printing

processes promoting the use of watermarks instead of

Strategic Initiatives and Management offset printing and using eco-friendly inks such as water-

Goals for Sustainability based and soy-based inks to reduce VOC emissions and minimize environmental impact.

10. Increase the proportion of sustainable ingredients inGuided by the vision of “all for the health and beauty of humans products continue prioritizing the purchase of sustainableand nature” the Company has established a comprehensive palm oil and encourage upstream raw material suppliers tosustainability system based on five strategic pillars: “Integrity and obtain certification from the Roundtable on Sustainable PalmTransparency: Reinforcing the Foundation for Solid Business” “Low Oil (RSPO).Carbon and Circular Economy: Protecting a Green and Diverse 11. Develop a biodiversity protection plan aligning withEcosystem” “Technological Precision: Building a Skin Health the Kunming-Montreal Global Biodiversity Framework toEcosystem” “Diversity and Equality: Moving Forward Together in carry out biodiversity protection; conduct comprehensiveUnity” and “Gratitude & Goodwill: Co-Creating and Sharing Value”. biodiversity risk and opportunity assessments for production

In alignment with key ESG topics in the industry and the United and operational sites as well as products achieving scientific protection of mountain resources and collaborative

Nations Sustainable Development Goals (SDGs) the Company development of the specialty plant industry before 2030.has formulated its strategic initiatives and management goals for

sustainability for 2030.

2122

All for the health and beauty of humans and natureYunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Philosophy Pillar Strategic initiatives and management goals Material topics SDGs Sustainability Governance Structure

Technological 12. Focus on research and development innovation as Focus on research and

Precision: the core driver and competitive advantage continually development Overall Structure

Building a increasing investment in R&D cultivating scientific talent Product quality

Skin Health and building innovation platforms.Ecosystem Chemical safety and

13. Strengthen fundamental research and independent R&D ingredient transparency

of functional cosmetic plant ingredients creating a standard Customer service

sample system for Yunnan-specific plant ingredients used in Health ecosystem Board of Directors and Strategy Committee

functional cosmetics. creation

14. Strengthen cosmetic safety management by streamlining Highest ESG governance bodies

formulations and maximizing the natural properties of

botanical ingredients thereby minimizing the use of non-

essential chemical ingredients and strictly monitoring the

presence of risk-associated ingredients not intentionally Board Secretary’s Office

added.

15. Increase product ingredient transparency by establishing ESG responsibility department

a Botanee Concerned Cosmetic Ingredient List for all

products and continuously engage in various forms of

consumer education to ensure consumers fully understand

the product ingredients and their potential effects.Primary-level Party

Heads/liaisons of departments organizations/labor unions and

and subsidiaries women’s federations

Diversity 16. Foster a diverse equitable and inclusive work Employee rights and care

and Equality: environment and bui ld a comprehensive talent Employee training and ESG execution team ESG execution team

Moving development and training system to ensure every development

Forward

Together in employee is respected empowered and provided with Employee safety and

Unity the opportunity to reach their full potential. health

Responsibilities

01

Gratitude 17. Actively assume social responsibility with cumulative Health accessibility

and Goodwill: public welfare investment exceeding CNY 100 million from Public welfare The Board of Directors and Strategy Committee (highest ESG governance bodies): As the highest ESG

Co-Creating 2021 to 2030 volunteer service hours totaling over 10000 decision-making bodies they are responsible for setting and reviewing the Company’s ESG strategy

and Sharing hours and a cumulative number of direct beneficiaries ensuring its alignment between ESG goals and the overall sustainability strategy and prioritizing ESG topics -

Value reaching 1 million people. especially material ESG topics - during the decision-making process.

18. Driven by the mission “to create China’s skin healthecosystem” continuously invest in health accessibility public 02

welfare projects supporting more people in need to achieve

health and beauty. Board Secretary’s Office (ESG responsibility department): It is responsible for ESG disclosure and overall

19. Fund and initiate a biodiversity collaboration action plan management ensuring the compliance of ESG operations with domestic and international regulatory

continuously supporting the construction of the biodiversity requirements coordinating cross-departmental efforts supporting working groups and overseeing ESG

protection ecosystem the integration and localization of information disclosure to ensure transparency in implementing ESG goals across all business units.biodiversity information disclosure standards social research

and communication on biodiversity protection and frontier 03

exploration actions for biodiversity conservation. Heads/liaisons of departments and subsidiaries (ESG execution team): All departments and subsidiaries are

20. Take the inheritance of cultural diversity as an important required to establish an ESG-related framework clarify their ESG execution responsibilities and regularly

social responsibility of Botanee strengthen the promotion report on implementation progress.of China’s intangible cultural heritage (ICH) by creating

sustainable marketing scenarios and bring Yunnan’s ICH to 04

the world stage; establish multiple public welfare projects to

build bridges for the inheritance of ICH expand the group Primary-level Party organizations/labor unions and women’s federations (ESG execution team): They are

of ICH inheritors and protect and pass on the beauty of responsible for enhancing employees’ environmental awareness promoting social responsibility fostering

cultural diversity. a culture of diversity and inclusion within the Company organizing ESG-related employee training and

volunteer activities to strengthen employees’ sense of environmental and social responsibility and promoting

eco-consciousness throughout the product life cycle.

2324

All for the health and beauty of humans and natureYunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Cross-Departmental Working Mechanism Stakeholder Engagement

To ensure efficient collaboration we have established cross-departmental working groups for key ESG topics. These

groups integrate expertise and resources from various departments to promote information sharing and coordinated Botanee offers diverse mechanisms for communication with stakeholders maintains close contact with them and

action enabling a more holistic approach to cross-functional challenges. We have a two-tier cross-departmental communicates with them through various channels and methods including daily communication meetings regular

mechanism consisting of committees and working groups. information disclosure etc. actively responding to stakeholder concerns.They are composed of senior management members. Examples include the Compliance

Committees Committee (with the Chairman and all senior executives as its members) and the Stakeholders Expectations and concerns Botanee’s responses

Information Security Committee (with executives at the president level as its members).· M edical insurance and holiday care packages

· Remuneration and welfare Establish labor union and organize union activities

They are composed of executives at the vice president level. Examples include · · Health and safety

the Green Supply Chain Working Group the Social Responsibility Working Group Working · C omprehensive training system and career groups Communication and feedback development platform

and the Employee Well-being and Diversity Working Group. · channels · R egular health check-ups and safety and first aid Employees · F air promotion and training

development opportunities · D iverse employee activities and open

communication channels

Case Green Supply Chain Working Group

· E nsure the stability of product supply and product

· S afe and healthy products quality

The Green Supply Chain Working Group focuses on building a sustainable green supply chain system. Through Consumers/ · C ustomer satisfaction · S trengthen product quality management and continuously optimize products

cross-departmental collaboration the group drives progress in environmental protection social responsibility customers · R esponsible marketing · C onduct customer satisfaction survey

and supply chain management across the Company. Its work spans the entire product lifecycle—from R&D to

procurement production and logistics. Group members include representatives from procurement packaging · S ign regulated contracts and implement them with

production and logistics departments. Core responsibilities cover raw material traceability procurement of integrity

environmentally friendly materials green logistics optimization carbon footprint accounting and emission · T ransparency · A dopt open procurement processes and improve

reduction target setting. The Group’s key achievements during the Reporting Period are as follows: · G reen supply chain supplier management

Suppliers · E nhance business exchanges and cooperation for

common development

Raw materials Environmental packaging design

· S trengthen compliance management in operations

· L egal and compliant operations

Suppliers were required to provide traceable Packaging optimization was carried out for 60 · H ire local talents to promote local employment

Law-abiding tax payment

certification information especially in the products reducing plastic usage in packaging · · A ccept supervision and assessmentRegulatory

supply chain management of key raw by 22 tons compared to 2023. · C ontributions to the economyauthorities · P romote high-quality development of regional

materials such as palm oil . During the economy

Reporting Period 11 new suppliers obtained · R eject unfair business practices and vicious

RSPO certification / RSPO trade license. · K eeping promises competition

· T ransparency · E xchange experience to promote common

· P romoting industry developmentPartners development · S eek technological innovations and develop

industry standards

· I mprove corporate competitiveness and profitability

Logistics Carbon footprint assessment · S ound corporate governance · M anage biodiversity risks and opportunities

· R eturns and growth

Centralized warehouse management was The carbon footprint across the entire value · C ontinuously create returns for shareholdersInvestors Risk control

implemented and the use of used relatively chain of the Company was monitored · · D isclose information in a timely manner and carry out investor communications activities

intact cardboard boxes for shipping was and carbon footprint verification for core

piloted. Preliminary statistics show the reuse products was conducted. Additionally some

100000 47000 Focus on community development and actively of boxes saving square products optimized packaging and supply · S upport for social development · organize activities

meters of paper. chain management resulting in a significant · C are for vulnerable groups · C arry forward local specialty culture

reduction of 237.7 kgCO2e per 10000 Public interest · R ural revitalization

organizations and · D onate money and provide volunteer servicesproducts in carbon emissions.communities · T alent nurturing · H ire local talents and increase local procurement

25 26Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Materiality Assessment Step 3: Analyzed and reviewed topics of impact materiality and financial materiality

We conduct regular multidimensional reviews of material ESG topics based on our business development industry Impact materiality: Taking into account opinions from the management and stakeholder requirements we

characteristics compliance requirements investor concerns related international standards stakeholder concerns and ranked the materiality of identified ESG topics. We allocated weights to each topic based on its risk level

so on. In 2024 we maintained close communication with stakeholders through various channels (such as interviews and integrated “materiality to stakeholders” and “materiality to Botanee” dimensions to form a materiality

questionnaires and meetings). With the assistance of ESG consultants we systematically assessed and reviewed the matrix. The screening and analysis results were reviewed by internal managers and external experts.materiality of sustainability topics for the year to provide a reference for ESG management and information disclosure.Upon review and assessment the “Risk Management and Internal Control” topic was newly added this year along with Financial materiality: We initially identified five topics of financial materiality. They are not only relevant to

the inclusion of financial materiality assessment. the Company’s ESG practices but also linked to its long-term financial health and market competitiveness.Steps for materiality analysis Step 4: Responded to and disclosed material topics

Assessment process For material topics we formulated and implemented action plans presented them to the Board of

Directors and the Strategy Committee for review and confirmation and provided key responses and

Step 1: Identified material topics and created a material topic library disclosures in this report.Based on national policies business development disclosure standards capital markets and benchmarking

with peers as well as the existing list of material topics we identified material topics for the year and

compiled a library of material topics. 2024 Materiality Matrix of Botanee

National policies: We closely followed national macro policies studied national and provincial policies and

regulations and analyzed sustainability trends in the cosmetics industry based on industrial policies and Product quality

regulations.Business development: Based on the Company’s mission vision and business development situation we Focus on research and development

comprehensively examined material ESG topics and updated them to ensure they reflect our strategic

goals and adapt to market changes and business needs. Customer service

Disclosure standards: We referred to a range of standards such as the GRI Standards the Self- Chemical safety and ingredient transparency

Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report Green packaging

(For Trial Implementation) the International Sustainability Standards Board’s (ISSB) IFRS S2 Climate- Green procurement Green operations

related Disclosure (IFRS S2) and the Guidelines on Corporate Social Responsibility Reporting for Chinese Low carbon products

Enterprises (CASS-ESG5.0) to ensure compliance with the latest sustainability management standards Employee training and development Social

and requirements for information disclosure. Climate action Conserve biodiversity

Capital markets: We collected ESG ratings and index evaluation requirements such as those of MSCI in Employee safety and health Environmental

capital markets and updated the material topic library in relation to capital market ratings. Fair business environment Employee rights and care

Benchmarking with peers: We benchmarked against excellent domestic and international peers’ Health accessibility

Skin health ecosystem creation Governance

disclosures on sustainable development to identify key material topics in the cosmetics industry and Sustainability management Corporate governance

methods of stakeholder engagement.Risk management and internal control

Public welfare

Step 2: Engaged with stakeholders

Based on the assessment dimensions mentioned above we identified 20 material topics that had

substantive impacts on Botanee including 5 environmental topics 11 social topics and 4 governance

topics. Through daily communication with stakeholders we conducted interviews meetings or conference

calls to understand core topics of concern to stakeholders and facilitate the assessment and review of Materiality to Botanee

material topics for the year. We invited internal and external stakeholders to evaluate the materiality of

different sustainability topics from their perspectives through an online questionnaire and express their Highly material Moderately material Generally

opinions on Botanee’s current sustainable development strategy performance reporting methods and material

disclosure quality. Product quality Green packaging Skin health ecosystem Health accessibility Public welfare

Customer service Employee rights creation Risk management and

Our stakeholder survey for 2023 covered Botanee’s directors senior management members key Focus on research and and care Employee safety and internal control

management personnel employees consumers/customers distributors investors suppliers media development Conserve health Fair business

government and regulatory authorities public interest and charitable organizations and communities. In Chemical safety and biodiversity Corporate governance environment

2024 we invited internal stakeholders to conduct a qualitative assessment of financial materiality. ingredient transparency Employee training Low carbon products Climate action

Green operations and development Sustainability

Green procurement management

2728

Materiality to stakeholdersIntegrity and

Transparency:

Reinforcing the

01 Foundation for Solid Business

Botanee adheres to the core values of integrity and pragmatism

and uses them as behavioral norms for management. We

require all employees to uphold fundamental standards of

integrity establish a solid compliance foundation for sustainable

development and work with partners to create a compliant and

trustworthy business environment. Together we boost a fair

just honest and transparent business ecosystem to safeguard

sustainable corporate development.Corporate Governance

Risk Management and Internal Control

Fair Business EnvironmentYunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Corporate Governance

Category Gender Term of Service

Philosophy

Following the goal of ensuring sustainable and healthy development of the Company Botanee has developed a 3 3 1

professional regulated and transparent governance structure that provides organizational support for the development 6 6 7

of the Company through mutual supervision and restraint among investors the Board of Directors the Board of

Supervisors and managers.Director Independent director Male Female 3–5 years 1–3 years

Strategy Less than 1 year

Botanee strictly complies with relevant regulations of the China Securities Regulatory Commission and other regulatory

authorities including the Company Law of the People’s Republic of China the Securities Law of the People’s Republic of

China the Code of Corporate Governance for Listed Companies in China and the Rules Governing the Listing of Shares

on the ChiNext Market of Shenzhen Stock Exchange. We effectively implement internal governance systems such as

our Articles of Association and adopt a regulated corporate governance structure established in light of our actual The General Meeting of Shareholders exercises decision-making rights on major issues such as the

manufacturing and operations that features clarified responsibilities and authorities in decision-making execution and General Company’s operating policies fundraising investment and profit distribution in accordance with

supervision. Meeting of

Shareholders laws and regulations including the Company Law of the People's Republic of China the Articles of

Association and the Rules of Procedure for the General Meeting of Shareholders.Management Practices

The Board of Directors operates in strict accordance with the Company Law of the People's

Republic of China the Articles of Association and the Rules of Procedure for the Board of Directors.Governance Structure It exercises management rights and is accountable to the General Meeting of Shareholders. There

are four specialized committees under it namely the Strategy Committee the Remuneration and

Board of

Directors Appraisal Committee the Nomination Committee and the Audit Committee. Independent directors General are professionals with expertise in finance law management and other fields. They strictly abide

Meeting of by the requirements of the Working System for Independent Directors safeguard the interests of

Shareholders the Company and independently and objectively fulfill their responsibilities based on sufficient

access to information on important issues.Board of

Supervisors The Company has a total of three supervisors including one employee representative supervisor.The Board of Supervisors is accountable to the General Meeting of Shareholders and exercises

Board of

Supervisors its powers according to the law including financial inspection of the Company supervision of Board of the actions of directors and senior management in performing their duties and safeguarding the

Directors interests of the Company shareholders and employees.Strategy Remuneration and Appraisal Nomination Audit Compliance Committee Committee Committee Committee Committee

In 2024 the Company convened:

When selecting director candidates the Nomination Committee takes into consideration many factors including (but not

limited to) gender professional background industry experience and term of service in the light of Botanee’s business General Meetings With proposals Board of Directors With resolutions Board of Supervisors With resolutions

model and specific needs. As of the end of the Reporting Period the Board of Directors consisted of nine directors of Shareholders reviewed totaling meetings reviewed totaling meetings reviewed totaling

including six directors (with two females) and three independent directors (with one female). Female directors accounted

for over 33% of the Board. 2 20 3 34 3 20

31 32Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Board Training on ESG Awareness Risk Management and

Botanee keeps strengthening the ESG governance capabilities of the Board by regularly organizing professional training Internal Control

sessions. The training focuses on ESG development trends regulatory updates and evolving market ESG expectations.To comply with regulatory requirements the Company arranges for Board members to participate in specialized training Philosophy

sessions organized by regulatory authorities. These sessions cover key topics such as updates on stock exchange rules

interpretation of ESG-related regulations and ESG essentials in corporate governance.Botanee upholds the philosophy of “Integrity inBusiness and Compliance First” establishing a robust

Information Disclosure risk prevention and control system to ensure stable

operations.While earnestly implementing our business strategies and continuously

improving operational management we fulfill our obligations for information As of December 31 2024 a total of

disclosure as a listed company and safeguard the legitimate rights and Strategy

interests of shareholders. Endeavors are made to ensure that investors

especially small and medium-sized investors enjoy their legal rights to access 60 announcements (including We build a comprehensive compliance management

information about Botanee receive asset returns participate in decision- numbered filings) had been disclosed. system through the “four pillars” of organizational

making on important issues choose managers and more. Botanee adheres system pol icy system operat ional system and

to the principles of truthfulness accuracy completeness timeliness and cultural atmosphere. Additionally we integrate ESG

compliance in information disclosure. risk management into the overall risk management

framework to enhance the Company’s resilience.Investor Relations

Botanee attaches great importance to investor relations and executes a complete system for investor relations Management Practices

management. We actively engage in communication with investors in a fair transparent and equitable manner. Through

various channels we enhance communication with investors improve the transparency of corporate governance actively Compliance and Internal Control

listen to their opinions and suggestions and maintain healthy two-way communication interactions with the capitalmarket. Botanee remains committed to compliant business practices clearly placing “improving the compliance system andstrengthening the development support for the Company” as one of the core operational objectives for 2024 establishing

the “four pillars” of compliance management system.Information Investor

Disclosure on Relations Investor

irm.cninfo. Interaction Relations

com.cn Channels Activities Policy system Operational system

A multi-tiered system A dedicated compliance

of compliance team in place to

management policies embed compliance

In 2024 the Company received 274 In addition to the Company’s Institutional roadshows: The Company participated management into

investor inquiries on the Shenzhen official website our investor in 113 broker roadshows and reverse roadshows in the Company’s daily

S t o c k E x c h a n g e ’ s i n v e s t o r relations team expanded Beijing Shanghai Shenzhen Hong Kong Macau and operations

relations interaction platform (irm. online service channels this Singapore as well as 14 domestic and international Organizational Compliance

cninfo.com.cn) a 35% increase year by launching Botanee’s investment strategy conferences covering 340 system culture

compared to the previous year WeChat official account and financial institutions. An organizational A company-

ranking first among 14 comparable mini program for investor system led by the wide compliance

companies in the beauty and relations. A total of 37 posts Capital market activities: In 2024 the Company Board Compliance training program

personal care sector. We have were published throughout organized 5 capital market events including 3 Committee implementeddedicated personnel for investor the year providing investors online performance presentations and 2 “Investors and centered to foster acommunication and responded to with more convenient and into Listed Companies” events. The performance around the Chief strong culture of

a total of 256 inquiries throughout d iverse ways to access presentations were conducted via live streaming Compliance Officer compliance

the year with an average response information. in the form of interactive Q&A making it easier for (CCO)

rate of more than once per day investors to understand the Company’s performance Compliance

reflecting the Company’s strong and development strategy. In field surveys investors

commitment to addressing and were invited to our production bases and research Management

responding to investor concerns and development centers for a better understanding System

promptly. of our operations.

33 34Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

To establish and improve the compliance risk management system Botanee has developed a multi-tiered compliance

governance structure. The Board of Directors as the ultimate responsible body and the Compliance Committee as the

highest management body work in coordination with legal compliance finance auditing human resources technology

quality safety and operations management departments forming a comprehensive mechanism for the identification

early warning review and resolution of compliance risks.● As the highest compliance management body of Botanee the Compliance Committee

is established with the approval of the Board of Directors. It is chaired by the Chairman

Decision-making level

of the Board and its members include all senior management members and the head

(Compliance Committee) of the Legal and Compliance Department. Its main responsibilities include reviewing

compliance policies overseeing compliance management approving major compliance

issues and reporting to the Board of Directors.● The Chief Compliance Officer (CCO) who is also the head of the Legal and Compliance

Management level Department reports directly to the Compliance Committee. The Legal and Compliance

(Legal and Compliance Department serves as the lead department for routine compliance management with

Department) a dedicated compliance management position. Additionally each business department

appoints a part-time compliance liaison forming a network guided by the Group.● Under the guidance of the Compliance Committee the Legal and Compliance

Execution level Department leads and coordinates relevant departments to establish special

(special compliance compliance working groups including the Data Compliance Working Group Anti-

working groups) Corruption Compliance Working Group and Anti-Monopoly Compliance Working Group

which are responsible for advancing and implementing specific compliance issues. Botanee strictly complies with relevant regulatory rules including the Guidelines of the Shenzhen Stock Exchange for

Internal Controls of Listed Companies Guidelines for Evaluation of Enterprise Internal Control and Guidelines for Audit

of Enterprise Internal Control . The Company has authorized the Chief Compliance Officer to develop a comprehensive

compliance management policy system based on the requirements of each business area and applicable regulatory

standards. This system includes the Compliance Charter Employee Code of Conduct Anti-Commercial Bribery Policy and

Board of Directors other related guidelines and procedural documents.Working Rules for Compliance Committee We assess compliance risks through interviews document reviews random inspections and detailed compliance

records and have formed a compliance risk list. In addition the Audit Department conducts routine and annual internal

control assessments as well as monthly quarterly and annual internal control self-assessments inspections and

Compliance Committee supervision. During the Reporting Period we conducted 3 quarterly internal control assessments and 1 annual internal

control assessment as well as 10 special audits covering areas such as the use of raised funds staff turnover and work

handover and focused inspections of key areas. The audit results show that the internal control system is functioning

effectively with no significant or major risks identified.CCO The Company places high importance on internal control and compliance culture establishing a multi-level training

Legal and Compliance system. This includes conducting at least one internal control and risk management training session for all employees

Compliance Department each year providing basic compliance training for new employees and offering targeted compliance training based on

management position the business characteristics of each division to continuously enhance the risk prevention awareness of all staff. In 2024

the Company conducted 1 special training on internal control.Audit and coordination Coordination and support ESG Risk Management

Botanee values the potential impact of ESG-related risks and actively undertakes ESG risk management activities. We

have incorporated ESG risk identification and management into our overall risk management framework. During the

Data Compliance Anti-Corruption Compliance Anti-Monopoly Compliance

Working Group Working Group Working Group Reporting Period we conducted risk identification and management across the three dimensions of environment social

and governance gradually implementing mitigation measures and monitoring the results of risk control. Please refer to

the corresponding sections of this report for detailed descriptions of specific risks and management measures.

35 36Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Fair Business Environment During the Reporting Period the Board of Directors reviewed and approved the Botanee Code of Compliant Conduct for Business Partners strengthening the management of commercial partners’ integrity and compliance. Besides we

signed the Supplier Code of Business Ethics and Conduct with all direct procurement suppliers and performed an annual

review and update to the code to ensure compliance with business ethics standards. Our procurement contracts included

integrity clauses that require suppliers to implement relevant anti-corruption requirements.Philosophy

The Internal Audit and Internal Control Department conduct audits of the Company’s compliance with business ethics

standards and implementation of internal anti-corruption policies at least once every 3 years which covered all business

Botanee strictly observes laws and regulations maintains compliant business operations and follows high standards lines and subsidiaries of the Group. The review dimensions include anti-corruption and conflict of interest among others

of commercial conduct. We firmly oppose illegal activities such as corruption bribery unfair competition and money to identify potential problems and ensure the effective implementation of business ethics guidelines. As part of annual

laundering and actively advocate employees suppliers and customers to practice business ethics thereby fostering a internal audit specific audits related to anti-corruption risks are conducted.fair business environment.Regarding anti-monopoly and anti-unfair competition Botanee strictly adheres to laws and regulations such as the Anti-

Monopoly Law of the People's Republic of China and the Anti-Unfair Competition Law of the People's Republic of China

Strategy to uphold a healthy market competition environment. We strictly control source prices during shipments and adopt

flexible pricing strategies to avoid any conduct that may constitute a violation of anti-monopoly laws. We also implement

risk controls for anti-monopoly and assess sales contracts and policies to ensure compliance with anti-monopoly laws

We have established a comprehensive internal management system regularly conducting both internal and external and regulations.audits to ensure strict control over business compliance and risk management. We require our supply chain partners to

uphold business ethics standards and comply with anti-monopoly laws to maintain fair market competition. We strictly Following the Botanee Improper Conduct Complaint Management Operating Procedures and the Botanee Complaint

enforce relevant laws and regulations in areas such as tax management information security and intellectual property and Whistleblower System we provide channels for reporting improper conduct including dedicated hotlines email

protection to ensure compliant operations. addresses and mailing addresses which are clearly stated on the Company’s website suppliers’ website and our

Employee Handbook. We strictly protect the personal information of whistleblowers and prohibit any retaliatory actions

against them to safeguard their rights.Management Practices

Intellectual Property

Business Ethics As a research-oriented high-tech enterprise we recognize the importance of intellectual property in corporate

development. The Company has formulated the Commercial Secret Management Policy the Intellectual Property

In terms of anti-corruption efforts the Audit Committee of Protection Management Policy and other relevant regulations.the Board of Directors serves as the highest supervisory

body while the independent Corporate Audit Department We strictly abide by the Enterprise intellectual property management (GB/T29490-2013) having established a

is responsible for anti-corruption publicity consultation comprehensive intellectual property management system covering the entire process including R&D production and

inspection and handling of complaints and whistleblower sales of cosmetics and medical devices (wound dressings). In terms of patent management we focus on preventingleads. Adhering to the principle of “combining punishment the infringement of others’ intellectual property rights and protecting our own patents. Additionally we irregularly offerwith prevention with prevention as the main focus” training on intellectual property protection and patent protection to enhance employees’ awareness of intellectual

Botanee has established and publicly disclosed multiple property protection and improve intellectual property management.policies including the Botanee Anti-Corruption System the

Botanee Improper Conduct Identification Guidelines and the Tax Compliance

Botanee Employee Conflict of Interest Management System .During the Reporting Period the Board of Directors reviewed The Company has established a tax compliance system for its business operations and implemented comprehensive

and approved the Botanee Anti-Commercial Bribery tax risk management. In accordance with the Botanee Financial Management and Accounting Manual we regulate

Management Policy further strengthening the Company’s procedures for handling relevant tax issues and continuously improve the efficiency and quality of tax management.anti-corruption policy system. Furthermore we engage tax consultants and intermediaries to provide professional support and conduct periodic training

for tax personnel and internal experience sharing to enhance the team’s professional competence.We conduct at least 1 anti-malpractice publicity session for

employees each year and regularly provide anti-corruption In response to the national initiative to deepen tax collection and

training. All employees sign a commitment letter to conflict administration reform the Company joined the “Natural System” platform

of interest that includes guidelines on anti-corruption and of the State Taxation Administration of the People's Republic of China in

conflict of interest. In 2024 through specialized publicity 2024. The platform offers standardized digital tax services through direct

signing of commitment letters on conflict of interest and connection between tax and enterprise systems. To date the Company In 2024 we did not incur any

anti-corruption the coverage of anti-corruption publicity has completed the system integration for the output tax module enabling tax-related penalties.for employees and other personnel categories (interns automated invoice issuance. The input tax module has completed sandbox

outsourced staff etc.) reached 100% and we launched the testing and is being progressively rolled out. In the future the Company will

“Upholding Integrity Starting with Me” campaign through continue to deepen the application of Natural System with plans to expand it

posters and emails to strengthen employees’ awareness of to cover automated reporting for all tax types.integrity.

37 38Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Information Security The Company strictly complies with the Data Security Law of the People’s Republic of China Cybersecurity Law of the

People’s Republic of China Personal Information Protection Law of the People’s Republic of China and other related

To strengthen information security management and systematically carry out various tasks Botanee has established an regulations and has formulated the Botanee Information Security Management Policy and Data Security Management

information security governance structure to ensure the effective implementation of information security work: Specifications to ensure network and data security.We strictly manage the personal information of consumers and potential consumers obtained through online and offline

Decision-making and supervision channels employ encryption anonymization and other measures to store and manage the information and classify

Decision-making level and grade data in existing applications. For sensitive data involving customer phone numbers bank card details and

(Information Security Committee) identification numbers in the system we implement multi-layered protection measures:

Information Security

Composed of the Group’s President General Manager of Committee

the Digital Technology Center and relevant department

heads the committee is responsible for overseeing

information security decisions and leading the Group’s We use data anonymization processing We deploy a DLP (Data Loss Prevention) Management

information security efforts. Application for the front-end system and employ Endpoint review system for real-time monitoring and level encrypted storage for the back-end level prevention of data leakage risks.Management level database.(Information Security Management Group) Information Security

Composed of the Digital Technology Center team and Management Group

information security members this team operates We implement emergency mechanisms to respond to incidents of data leakage damage and loss. The Information

under the direct leadership of the Information Security Security Management Team conducts an initial investigation immediately synchronizes the results with the Data Security

Committee and is responsible for coordinating Execution Group and initiates the emergency response process via email. Members of the Data Security Group work together with

implementing and overseeing day-to-day information relevant business departments to handle the incident.security activities.We have created a continuous and multi-dimensional security awareness education system. We regularly send security

Various

Execution level departments reminders through internal communication tools and conduct simulated phishing emails to test employees’ awareness

(various departments and all employees) of information security. In 2024 we conducted online information security training for all staff members including

employees and other personnel categories (interns outsourced staff etc.) achieving a training coverage rate of 100%. All

The information security officers from the Information Information security officers new employees undergo information security training and examination.Security Department Audit Department Human from various

Resources Department and Legal Department form the All employees departments Our online sales platform has passed National Information Security Level 3

Data Security Group. They work with the Information certification and is retested every year as required to continuously ensure the

Security Department and other departments to security of the system. In terms of technical support online platforms used by

implement various information security measures. us are equipped with complete security measures such as network firewall

intrusion detection data encryption and more.In 2024 our information

security training covered

100% of

employees and other

categories of personnel

including interns and

outsourced staff.

39 40Low Carbon and

Circular Economy:

Protecting a

02Green and Diverse Ecosystem

Botanee is committed to building a green low-carbon and eco-

friendly enterprise image. We consider material topics such as

green supply chain environmental management compliance

biodiversity conservation and climate change tackling as core

elements of our sustainable development. In practice we

continuously improve our environmental management system

enhance energy efficiency reduce pollution emissions and

promote green circular development in upstream and downstream

industrial chain to contribute to harmonious coexistence of our

planet.Green Packaging

Low Carbon Products

Green Procurement

Green Operations

Conserve Biodiversity

Climate ActionYunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Green Packaging Management Practices

Less: Simpler Materials

Philosophy In packaging design and development we strive for excellence and aim to find a balance between environmental

friendliness functionality and aesthetics. In 2024 we adopted a green design in packaging by replacing lithographic

The sustainability and environmental impact of packaging materials have become a focus of society’s concern. Botanee printing with watermark printing for logistics packaging which had already been applied to over 2 million cartons. We

integrates green and sustainable packaging into product packaging design and actively adopts environmentally friendly also adjusted the printing process for products reducing the number of colors from four to three thereby reducing

packaging materials. Through packaging reduction plastic reduction and recycling we aim to achieve green minimalist VOC emissions. Also during the printing process we increased the use of eco-friendly inks such as soy ink to reduce

packaging design and minimize our environmental impact. environmental impact.Strategy

Botanee is committed to becoming a pioneer in practicing the “carbon peaking and carbon neutrality” strategy in China’s

cosmetics industry so as to better serve the environment on which all mankind depends. From the design stage we

introduce the concept of green packaging continually focusing on plastic reduction minimal packaging and sustainability.We advocate for the use of environmentally friendly materials reduce the use of disposable plastic packaging and

instead use degradable and recyclable packaging materials. Furthermore we continuously optimize packaging design to

reduce the consumption of packaging materials lower the generation of packaging waste and expand the use of PCR

(Post-Consumer Recycled) materials for plastic recycling.Replacing packaging design lithographic printing with watermark printing

Our goals

● Expand the use of FSC-certified paper in new products to 93% by the end of 2025 and to over 98% by the

end of 2030. Reduce: Reduce Packaging Material Consumption

● Ensure more than 85% of plastic packaging can be reused or recycled by the end of 2030.In terms of packaging reduction we continue to promote electronic

● Evaluate and improve non-recyclable materials explore alternative material solutions and ensure 100% instruction manuals replacing paper manuals with QR codes thus reducing

environmental-friendly attributes in new products. paper consumption and protecting forest resources. We have optimized the

size of transport packaging to improve its match with product packaging

switching sample order packaging from cartons to foam and bubble bags

reducing the use of paper and fillers. In 2024 we implemented a plan

to remove inner boxes for 105 stock keeping units (SKUs) successfully

reducing the use of about 297900 inner boxes saving 53000 square

meters of paper resources and reducing the use of transport packaging

materials by 30.77 tons improving logistics efficiency while lightening the

environmental burden. Additionally our Qingpu factory expects to launch

a label improvement project for barrier repair serum samples in 2025 to

further reduce the consumption of labeling materials.Degradable: Use Degradable Materials

During the Reporting Period we replaced part of our traditional plastic

cushion packaging with degradable materials (100% biodegradable paper-

plastic) and upgraded product processes and printing techniques to reduce 100% biodegradable paper-plastic

plastic usage. cushion packaging

4433 44Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Renew: Use of Renewable Materials Recycle: Promote Recycling and Circulation

We are gradually expanding the use of glass bottles in the inner packaging of products to replace traditional plastic Save the Earth: Recycle and Be Rewarded

bottles making them easier to recycle and reducing the environmental impact of plastic.At the same time we combine green practices with innovation in product packaging and actively promote the use of eco- We initiated the “Save the Earth: Recycle and Be Rewarded” empty bottle recycling program aiming to promote resource

friendly materials such as FSC-certified paper PCW (Post-Consumer Waste) paper and PCR materials. We are gradually recycling and circulation in innovative ways. We have established a diversified recycling platform that integrates both

replacing traditional silver cardboard laminated packaging with white cardboard with a lower carbon footprint and easier online and offline channels:

recyclability to reduce product carbon emissions. In terms of craftsmanship we adopt transfer aluminum technology to

replace traditional film coating making the packaging easier to recycle and process. We also conduct a detailed inventory Online Offline

of product packaging types to accurately identify and promote improvements in packaging sustainability and fulfill our

commitment to supporting sustainable forest management. Consumers can easi ly place orders We have set up collection points at multiplethrough the “Winona Save the Earth: counters and OTC chain pharmacies acrossWe explore the use of PCR materials as inner packaging and have achieved mass production to reduce the use of new Recycle and Be Rewarded” WeChat mini the country for easy engagement.plastics and promote material recycling. In 2024 we used 1.34 tons of recycled plastic from post-consumer use in the program schedule courier pick-up and

packaging of 50g Anfu Moisturizing Cream and 50g Moisturizing & Softening Emulsion. track the recycling progress in real time.Key performance indicators

Additionally consumers can join themed activities such as “Green Fair” for more fun in recycling. At the same time our

dedicated beauty consultant team provides full support to consumers and through a badge reward system encourages

Improvement measures Unit 2024 2023 active participation. Consumers can exchange accumulated badges for products or coupons.Technology and material optimization 10000 pieces 1184.7 1194.2

Annual progress of the “Save the Earth: Recycle and Be Rewarded” program

Use of water-based inks 10000 pieces 200.6 443.7

Application of soy ink to outer packaging 10000 pieces 5579.7 2699.8 The program currently focuses on 50g slim bottles

(such as those of Winona Sensitiveness Relieving

Consumption of FSC-certified paper in outer packaging 10000 pieces 5627.3 2934.5 Moisturizing Tolerance-Extreme Cream). In the

future we will gradually expand the recycling scope

Use of glass bottles 10000 pieces 2366.6 2226.1

integrating the recycling of bottles into the production

Consumption of PCW paper t 3.1 4.5 of new products to achieve resource recycling and

collaborate with eco-friendly suppliers to develop

Consumption of PCR materials t 1.3 10.5 more environmentally friendly peripheral products.Consumption of heat transfer silver cards t 3.5 5.1

Valid empty bottles recycled during the year:

Products with electronic instructions SKU 588 845

30000002670753

Consumption of paper bags in place of plastic bags Piece 373821 250000

2500000

Piece 33977 50383

Cardboard boxes saved by using PP turnover boxes 2000000

t 33.5 47.5

1500000

1000000

500000183838329859

0

202220232024

Use rate of soy ink-printed Use rate of FSC-certified paper Use rate of glass bottles

outer packaging In 2024 a total of with

106.67% 91.76% 6.31% 2670753 empty 8 times that in 2023 1778500 participants

bottles were successfully recycled

45 46Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

“Oasis Protection Action”

We collaborate with over 5000 chain pharmacies nationwide to promote a box recycling campaign. In 2024 we collected

approximately 400000 empty boxes.Logistics Packaging Reuse

We are committed to promoting the

recycling and reuse of packaging. During

the Reporting Period we began piloting The tube lengths of 40g Advanced Moisturizing

the use of old cartons in good condition Process Smoothing Emulsion 40g Arbutin Whitening

for shipping at our Kunming warehouse. Preliminarily calculated cartons reused Papers saved improvement Emulsion and 30g Firming Hydrating Cream were

Preliminary statistics show that 100000 optimized by shortening 15mm reducing the use of

used cartons were reused saving 47000 100000 47000 white cardboard for the packaging boxes.square meters of paper. We are going to

extend this practice to our warehouses square meters The packaging of the 5g Winona Sensitiveness

nationwide. Relieving Moisturizing Tolerance-Extreme Cream

sample was upgraded and the printing process

was optimized with the vacuum pump replaced

by a tube. This is expected to reduce plastic

by approximately 16 tons. The average carbon

Packaging

upgrade footprint of every 10000 tube packages is 144.8

Highlights and Cases and printing kgCO2e achieving a 62.1% reduction in carbon

process emissions compared to 382.5 kgCO2e for the same-

improvement function vacuum pump packaging.Improvement type Improvement description Illustration of improved packaging

The packaging of Winona Camelia-Lucent Repair

The carbon footprint of one bottle of Winona Night Cream was upgraded and the printing

Second-Generation Winona Sensitiveness Relieving process was optimized with the 15g vacuum pump

Moisturizing Tolerance-Extreme Cream is 1.1667 kg replaced by a tube. This is expected to reduce

CO e while the carbon footprint of one with refill plastic by approximately 6 tons.2

design is 0.9850 kg CO2e.The product won the Green Product Award and its During the Reporting Period the inner packaging

100% sealed vacuum bottle won the IDA Award. Plastic of several AOXMED-series products was changed

reduction in from plastic to glass bringing a plastic reduction by

packaging around 4.5 tons.Refill

design

Verification of Carbon Footprint Reduction through Packaging Improvement

Switching 5g Product Packaging from Vacuum Pumps to Tubes

Before 碳 足 迹 碳 足 迹核查结论编号：TZJBTN2025010502 After 核查结论编号：TZJBTN2025010501 Improvement 碳 减 排 核查结论编号：TJPBTN2025010501首次发布日期：2025.01.05 首次发布日期：2025.01.05 首次发布日期：2025.01.05

improvement improvement result 产品碳足迹核查产品碳足迹核查 产品碳足迹核查 兹证明兹证明 兹证明 云南贝泰妮生物科技集团股份有限公司

云南贝泰妮生物科技集团股份有限公司云南贝泰妮生物科技集团股份有限公司注册地址：云南省昆明市高新区科医路53号

注册地址：云南省昆明市高新区科医路53号注册地址：云南省昆明市高新区科医路53号

Winona Second-generation Sensitiveness Relieving 产品名称/型号：薇诺娜 5g 产品产品名称/型号：薇诺娜 5g 产品真空泵包装 产品名称/型号：薇诺娜 5g 产品软管包装 软管包装与真空泵包装

数据边界时间：2023年10月至2024年10月202310202410数据边界时间：2023年10月至2024年10月数据边界时间：年月至年月

每万个软管包装的平均碳足迹值：144.8 kgCO2e

每万个真空泵包装的平均碳足迹值：382.5 kgCO2e 每万个软管包装的平均碳足迹值：144.8 kgCO2e 相比同样功能的每万个真空泵包装的平均碳足迹值：382.5 kgCO2e

Moisturizing Tolerance-Extreme Essence uses a 减排量为 62.1%核查标准： 核查标准：ISO 14040 : 2006 / Amd 1 : 2020 环境管理 - 生命周期评价 - 原则和框架 ISO 14040 : 2006 / Amd 1 : 2020 核查标准： 环境管理 - 生命周期评价 - 原则和框架

ISO 14044 : 2006 /Amd 2 : 2020 生命周期评价 - 要求和指南 ISO 14044 : 2006 /Amd 2 : 2020 生命周期评价 - 要求和指南 ISO 14040 : 2006 / Amd 1 : 2020 环境管理 - 生命周期评价 - 原则和框架

ISO 14067 : 2018 温室气体 - 产品碳足迹 - 量化要求和指南 ISO 14067 ISO 14044 : 2006 / Amd 2 : 2020 生命周期评价 - 要求和指南 : 2018 温室气体 - 产品碳足迹 - 量化要求和指南

ISO 14067 : 2018 温室气体 - 产品碳足迹 - 量化要求和指南

refill design which is expected to reduce plastic 系统边界：摇篮到坟墓 系统边界：摇篮到坟墓 系统边界：摇篮到坟墓上海市绿色包装工艺与装备专业技术服务平台上海市绿色包装工艺与装备专业技术服务平台上海市绿色包装工艺与装备专业技术服务平台上海市水丰路100号邮编200093上海市水丰路100号邮编200093上海市水丰路100号邮编200093

by approximately 70% compared to the original

product.Average carbon footprint per 10000 Average carbon footprint per Carbon emissions reduced by 237.7 kg

The product won the Green Product Award. vacuum pump packs: 382.5 kg CO2e 10000 tube packs: 144.8 kg CO2e CO2e per 10000 units a 62.1% reduction

in packaging-related emissions

47 48Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Low Carbon Products Case Central factory’s photovoltaic power generation project

Philosophy Botanee’s central factory launched its rooftop photovoltaic power generation project on June 1 2024. The project operates

by using self-generated electricity and feeding surplus power into the grid. Taking full advantage of the long sunlight

Botanee adheres to low-carbon development and actively responds to China’s call to achieve carbon peaking and carbon hours and high sunlight utilization in Kunming Yunnan Province and utilizing approximately 8000 m2 of roof space on

neutrality goals. We are committed to achieving environmental friendliness and efficient resource use in every stage of the central factory’s office building production building and logistics center a rooftop distributed photovoltaic power

our product lifecycle reducing energy consumption lowering carbon emissions using renewable and recyclable materials station with an installed capacity of about 12000 MW was set up to meet the production and office needs of the central

and minimizing our environmental impact. We place great importance on carbon footprint assessment throughout factory. By the end of 2024 it had generated a total of 874500 kWh of electricity with an average monthly power output

product lifecycle keep optimizing each stage to reduce our carbon footprint and strive to be a leader of the industry in of approximately 125000 kWh (an annual output of about 1.5 million kWh) accounting for 25% of the central factory’s

contributing to carbon peaking and carbon neutrality goals. total electricity consumption. On average it saves about CNY 75000 per month in electricity costs (and CNY 900000 per

year) and it helps reduce the equivalent of 600000 kg of standard coal and 1.18 million kg of carbon dioxide emissions

Strategy every year. It significantly increases the proportion of clean energy consumed effectively reduces carbon emissions during

We developed a carbon inventory management mechanism in 2022 and plan to gradually conduct carbon inventories manufacturing and injects green energy into the Company’s high-quality development.to understand the carbon emissions of our products from raw material production manufacturing transportation

use to disposal. Our goal is to identify and explore emission reduction potential at each stage of product lifecycle

optimize manufacturing transportation and recycling processes and effectively reduce our products’ carbon footprint.Additionally we are planning to build a product carbon footprint assessment platform to systematically evaluate and

optimize products by category. We are also encouraging our major suppliers to provide detailed carbon emission data

thereby promoting green transformation throughout the entire supply chain.Management Practices

Carbon footprint The Company has planned to conduct a comprehensive carbon footprint assessment of its product

assessment lines and has already completed the carbon footprint assessment of its two best-selling products Panoramic View of the Rooftop Distributed Grid Connection Cabinet

- Winona Sensitiveness Relieving Moisturizing Tolerance-Extreme Cream (TOP1) and Winona Photovoltaic Power Station

Sunblock Milk (TOP2). We plan to promote environmental measures in the industry chain including

raw material selection packaging design transportation and usage to create low carbon

products.Raw material We work with suppliers to ensure the environmental friendliness and sustainability of raw material

procurement and encourage suppliers to provide carbon emission data in order to track and Case Carbon footprint verification for our best-selling productsprocurement

reduce the carbon footprint of the supply chain.During the Reporting Period Botanee conducted its second

We are committed to building green and carbon-neutral factories and establishing sustainable joint carbon footprint verification for its best-selling products

Manufacturing laboratories with our partners. Botanee central factory’s distributed photovoltaic power generation Winona Sensitiveness Relieving Moisturizing Tolerance-

project was put into operation during the Reporting Period and its Qingpu factory plans to launch Extreme Cream (TOP1) and Winona Sunblock Milk (TOP2)

a rooftop photovoltaic project in 2025 with an annual production capacity of 1000 Wh which is and also initiated the carbon footprint verification for

expected to meet 50% to 75% of the factory’s total electricity consumption. 5g of the product of Winona Sensitiveness Relieving

We continuously optimize our logistics network reduce transportation distances use eco-friendly Moisturizing Tolerance-Extreme Cream. The verification

Warehousing packaging materials reduce the use of corrugated turnover boxes and standardize material followed ISO 14067 and PAS 2050 standards and covered and

transportation management in workshops and warehouses. By using PP turnover boxes we ensure material

key carbon emission stages such as raw material sourcing

recycling and reduce carbon emissions from transportation. utilization manufacturing and transportation. Building

upon our previous carbon inventory we have now

Product We carry out empty bottle recycling initiatives to encourage consumers to participate in the

incorporated comprehensive carbon accounting for raw

recycling circular economy and reduce the environmental impact of waste. For more information on material processing stages which delivers more precise Carbon Footprint Verification Carbon Footprint

packaging recycling please refer to the “Green Packaging” section. and verifiable product carbon footprint results. The report Certificate of Winona Verification Certificate

shows that the carbon footprint of one bottle of Winona Sensitiveness Relieving of Winona Clearing

We actively participate in industry conferences related to carbon emissions promote packaging

Industry Second-generation Sensitiveness Relieving Moisturizing Moisturizing Tolerance- Sunblock Milk

collaboration carbon reduction practices drive the green development of the ecosystem and establish green Tolerance-Extreme Cream full-size product is 1.1667 kgCO e Extreme Cream2

and green supply chain management institutions. We assess the carbon emissions of the supply chain and the carbon footprint of one bottle of 50g Winona

supply chain promote green innovations in raw material procurement product manufacturing and other stages Clearing Sunblock Milk is 1.3819 kgCO2e.and create a low-carbon circular full lifecycle.

49 50Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Green Procurement Highlights

Signing of Code of Conduct: During the Reporting Period we signed Supplier Business Code of

Conduct with all direct procurement suppliers and 11 indirect procurement suppliers reaching 100%

Philosophy Strategy signing coverage of direct procurement.Localization: The Company prioritized local suppliers to increase the proportion of localized

Adhering to green procurement Botanee prioritizes We keep improving supply chain management and procurement. By the end of the Reporting Period the proportion of localized procurement by supplier

cooperating with suppliers who share our environmental implement a rigorous system for supplier classification number was 51% and the proportion by procurement amount was 55.5%. Specifically the Company

values sources products and raw materials with grading and evaluation in which ESG indicators actively used locally produced (China-made) sunscreen ingredients. Among the 19 sunscreen ingredients

environmental certifications and low carbon footprints are included as assessment criteria. We encourage currently used 10 are domestically sourced accounting for over 50%. During the Reporting Period the

actively advocates suppliers to reduce the use of suppliers to take proactive actions in environmental proportion of domestic procurement was approximately 73% (by weight).packaging materials and minimize waste generation protection energy conservation emission reduction and

promotes the building of a green and transparent supply social responsibility thus jointly advancing the green New suppliers: During the Reporting Period 16 new suppliers were included all of which underwent

chain and ensures that every link from the source to transformation of the entire supply chain. Additionally ESG on-site audits in accordance with the bonus item terms.the finished product meets the highest environmental we boost sustainable palm oil procurement to deliver

standards. environmentally friendly and responsible products for Risk control: During the Reporting Period there were no suppliers with material negative ESG risks and

consumers. no partnerships were terminated due to ESG issues.Management Practices

Supplier Management The Company has clearly provided complaint Complaint hotline 0871-68281833channels for suppliers in the Supplier Business

Code of Conduct to protect supplier rights. Complaint email sj@botanee.com

We follow strict supplier admission procedures and

review system conducting background checks on

potential suppliers. We include ESG standards in supplier

evaluation giving bonus incentives to those who meet

our criteria. We also run a supplier performance rating Sustainable Palm Oil

system to increase their environmental motivation

through differentiated welfare policies. Additionally

we require suppliers to sign our Supplier Business

Code of Conduct which includes provisions on human

rights business ethics and environmental and social Our goal

responsibilities. The aim is to foster a collaborative

●

and responsible supply chain together with upstream Keep prioritizing the procurement of sustainable palm oil and increase the proportion of sustainable

and downstream partners. We continuously iterate raw materials in our products.our procurement information platform advancing the

digitization and paperless procurement process. This Progress in 2024

not only helps improve procurement efficiency but also

●

enables better traceability management enhancing the At the beginning of 2024 23 direct or indirect suppliers obtained RSPO certification or RSPO trade

transparency of products. licenses. During the Reporting Period an additional 11 suppliers completed certification or licensing.●

In 2024 we included RSPO certification and employee The proportion of RSPO-certified raw materials in the palm oil sourced ingredients was 60% while the

diversity as bonus items in the raw material supplier weight proportion of certified raw materials was 41%.evaluation and carbon emission data environmental ● During the Reporting Period the proportion of palm oil sourced ingredients in the Company decreased

and energy utilization goals and employee diversity from 8.84% to 7.85% with a total of 82 items and the proportion of non-RSPO certified raw materials

as the bonus items in packaging materials and ODM decreased from 20.55% to 10.39%.supplier evaluation.● By the end of the Reporting Period 84.6% of all raw material manufacturers involved in palm oil

sourcing were RSPO-certified manufacturers.

51 52Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

We recognize the importance of the supply chain and raw materials highlight their sustainability from the source and

actively promote green procurement practices. For palm oil raw materials we actively promote sustainable palm oil Green Operations

sourcing and usage. During the Reporting Period we obtained Roundtable on Sustainable Palm Oil (RSPO) membership

(Supply Chain Certification) and adopted a “Mass Balance” supply chain model. Philosophy

Additionally we encourage suppliers to actively apply forand obtain RSPO certification require them to provide RSPO Upholding the philosophy of “lucid waters and lushYunnan Botanee Bio-Technology Group Co. Ltd. Yunnan Botanee Bio-Technology Group Co. Ltd.certification (for producers) or RSPO trading licenses (for traders) mountains are invaluable assets” Botanee keeps improving

and verify and retain these certifications on the RSPO official environmental management increases energy efficiency and

website monthly. We track the procurement and usage of RSPO- resource efficiency from multiple dimensions and actively

–

certified raw materials through our ERP system across the entire takes measures to reduce pollutant and waste emissions.procurement process covering purchase orders delivery notes Besides we actively promote green office and embed green

and goods receipts to ensure compliance with certification low-carbon and sustainable development into our everyday

requirements and promote sustainable procurement practices. operations.Moving forward we will continue to prioritize the procurement of The issuing Certification Body is responsible for the accuracy of this document. The issuing Certification Body is responsible for the accuracy of this document.Version / Date: 2 (no adjustments) / 22.03.2024 Version / Date: 2 (no adjustments) / 22.03.2024

sustainable palm oil and increase the proportion of sustainable Strategy

raw materials in our products. We will further deepen our Botanee's RSPO Supply Chain Certificates

practices in green raw material procurement. We strictly obey relevant national and local environmental

laws such as the Environmental Protection Law of the

People’s Republic of China and the Energy Conservation Law

Case The Supply Chain High-Quality Co-development Initiative of the People’s Republic of China and manage emissions

waste and energy use in a regulated manner following

In March 2025 at the supplier conference Botanee along with over 50 partners jointly signed the Supply Chain documents such as the Compilation of Environmental

High-Quality Co-development Initiative. The initiative is anchored in the direction of supply chain innovation in the Management Laws and Regulations Environmental Safety

beauty industry focusing on creating a supply chain model that is safe stable transparent green responsible and Objectives Indicators and Control Plan the Identification

resilient. In terms of product quality and safety the initiative urges all parties to strictly comply with regulations and Evaluation of Environmental Factors Regulations on

implement a risk prevention matrix for banned and restricted substances strengthen change management and the Management of Hazardous Chemical Waste Office

respond quickly to complaints. In terms of procurement and green development the initiative advocates for Management System and ESG Management Policy of

transparent procurement practices promotes a green and low-carbon philosophy and systematically builds a Kunming Winona Skincare Co. Ltd. We have outlined green

sustainable development practice model through multiple stages including packaging production and logistics. By office requirements and encourage employees to save

signing this initiative we have jointly built a safe and stable supply chain system with our partners and are leading electricity practice paperless office engage in waste sorting

the industry toward progress and goodness. and use office equipment and air conditioning responsibly

to minimize resource waste and improve environmental

efficiency. We regularly review environmental and energy

High-Quality Co-development Initiative management practices in our offices and factories and ISO 14001 Environmental Management

revise relevant policies and procedures to enhance our System Certificate

Sustainable procurement management.Clean cooperation Prioritize sustainable

products and services

Jointly sign the Clean reduce environmental impact

Cooperation Agreement promote promote sustainable Management Practices

establish reporting development continuously

channels ensure fair and advance lightweight packaging

just transactions eliminate design plastic reduction and Energy Management

corruption and misconduct recycling and advocate for

and create an environment of the use of degradable andintegrity in business. Transparent Green and recyclable materials. Following the core principles of “regulated managementprocurement low-carbon clean product ion energy conservat ion and greenCompliance and transparency Sustainable production development” Botanee has built an energy management

Ensure that processes are Optimize production processes

transparent standards are and logistics transportation system dedicated to optimizing resource and energy use

clear information is shared routes actively adopt clean

supervision is in place and energy reduce energy

efficiency. Botanee has passed ISO 14001 environmental

rewards and penalties are well- consumption per unit of output management system certification and ISO 50001 energy

organized. year by year and reduce

carbon emissions throughout management system certification. We set clear energy

product lifecycle. consumption targets and regularly assess the achievement

Botanee and its partners work hand-in-hand to build a sustainable business ecosystem leading the industry toward of these targets. Additionally we conduct energy audits

progress and goodness. and management reviews each year and publish Energy

Audit Report to analyze our energy performance and

ensure effective energy targets implementation across all ISO 50001 Energy Management

departments. System Certificate

53 54Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

In terms of warehousing and logistics in 2024 the Company restructured its warehouse network merging 14 warehouses Green and Low-Carbon Office

nationwide into 4 with a focus on creating self-operated and outsourced warehouses centered around the factories

reducing inter-warehouse transfer distances. At the same time we increased the use of automation equipment to We are committed to creating an environmentally friendly efficient and sustainable workspace. A series of energy

achieve inventory tracking and automated picking operations and implemented paperless offices to reduce paper usage. conservation and environmentally friendly measures and practices have been implemented in our office area offline

Additionally we replaced fuel-powered forklifts with electric ones and used new energy vehicles for goods transfer at the stores and medical aesthetics centers to reduce our environmental impacts and improve resource efficiency in our

new Huzhou warehouse park resulting in a total reduction of 4 tons of carbon dioxide emissions. everyday operations.During the operation of counters and stores we plan to optimize lighting and air conditioning systems to reduce energy

consumption and carbon emissions in store operations. Stores replace traditional lighting with LED energy-saving lamps

to save energy and extend their service life. We also install smart temperature control systems that automatically adjust

in-store temperatures based on foot traffic and external temperature to effectively reduce air conditioning energy

consumption. Energy efficiency management and improvement Waste recycling and reuse

We carry out energy-saving renovations or upgrades In store operations we strictly adhere to the

for high-energy-consuming equipment prioritizing classification management requirements for

Our energy consumption goals the use of energy-efficient devices and appliances medical waste and household waste. We promote

such as energy-saving LED lighting and high- waste recycling and reuse in office areas putting

efficiency air conditioners to reduce operational paper recycling bins on each floor and encouraging

● Central factory’s energy consumption goal: We have set an energy performance goal for 2025 that is carbon footprints. We have established an energy employees to use recycled paper for printing.reducing the energy consumption of the central factory by 1% in 2025 on the basis of the baseline in usage monitoring mechanism regularly recording Additionally we have set up battery recycling

2024. and analyzing energy consumption data to identify stations for the proper disposal of used batteries.

● Counters’ and stores’ energy consumption goal: We will increase energy efficiency by upgrading and improve areas of energy waste. In counters and

equipment and optimizing management aiming to reduce the energy consumption per unit area in medical aesthetics centers unnecessary electrical

counters and stores by 15% within the next two years and will increase the use of renewable energy devices are promptly turned off during non-business

with a goal to have renewable energy account for 20% of total energy consumption within the next hours to avoid standby power consumption.five years.Resource Management

Paperless office Green and low-carbon commuting

Recognizing our reliance on water resources we have taken a series of measures to save water. We strictly adhere to

Kunming Management Measures for Sponge City Planning and Construction and have established rainwater collection To reduce paper consumption we encourage W e e n c o u r a g e e m p l o y e e s t o u s e p u b l i c

and utilization facilities. We have also built a recycled water system to effectively recover and treat condensation water employees to use electronic documents and transportation for commuting and offer shuttle bus

generated during production allowing it to be reused for landscaping and cleaning. For office operations we have emails and have realized paperless administrative services. Besides we promote video conferencing to

installed water-saving devices (such as water-saving faucets and low-flow toilets) and regularly check water pipes workflow. reduce business travel and lower carbon emissions.and equipment to prevent leaks and water resource wastage. Furthermore we emphasize the concept of the circular

economy by introducing an ethanol reflux system in production effectively reducing ethanol consumption.Highlights

Green workplace Environmental publicity

We use natural light in factories and office buildings In order to improve employees’ environmental

to reduce energy consumption and increase plants awareness we post energy conservation and

In 2024 our central factory's and Qingpu factory’s recycled water Equivalent to a water fee saving of

systems saved a total of in the office to beautify the workspace and improve environmental protection posters in the office area

114066 indoor air quality. of headquarters and offer regular environmental 19011 CNY awareness training for employees in offl ine tons of water stores and medical aesthetics centers to boost

environmental protection. Also we encourage

employees to propose energy-saving suggestions.

55 56Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Compliant Emissions Biodiversity Conservation

We implement strict environmental management and emissions control standards set specific emission reduction

targets for our factories and carry out regular environmental management system certification audits to ensure the Governance

effective implementation of all environmental protection measures. At the same time we cooperate with professional

environmental testing agencies to regularly monitor the emission indicators of wastewater exhaust gases waste and Botanee is rooted in the “botanical kingdom” of Yunnan.noise and strictly comply with national and local regulations aiming to minimize our impacts on surrounding residents Yunnan’s rich plant resources serve as the inspiration for

and the environment. our research team in addressing skin sensitivity issues

and as a resource library for future industry-academia-

research-healthcare collaboration and applications.Biodiversity is not only a key driver of Botanee’s

innovation but also a core advantage in integrating

We employ A2/O process to efficiently purify production traditional Yunnan culture and achieving sustainable

Wastewater

management wastewater and ensure the quality of discharged water development.meets or even exceeds national environmental standards.Management System

To effectively fulfill our ecological responsibilities Botanee has established a multi-layered comprehensive biodiversity

management system to ensure that attention to and protection of biodiversity is integrated into daily operations and

We monitor exhaust gas emissions during manufacturing

Exhaust gas long-term development.management and use activated carbon to absorb harmful gases thereby

reducing harmful gas emissions.● The Board’s Strategy Committee is ● The Board Secretary’s Office takes

responsible for overseeing ESG-related charge of coordinating ESG-related

We establish clear waste classification standards equip issues including reviewing biodiversity work responsible for assessing and

with classified trash bins and partner with professional protection management biodiversity managing the Company’s impacts

Waste recycling and disposal companies to regularly transport conservation management and related Governance Management and dependencies related to nature

management and dispose of waste. At the same time we actively work risks. as well as risks and opportunities and

explore waste resource utilization and promote the circular overseeing the Company’s nature-

economy. related commitments targets and

plans regularly reporting progress to

Execution

the Board.We optimize manufacturing processes use low noise

Noise

management equipment and install sound insulation facilities effectively

reducing noise disturbance to surrounding communities. ● Various departments routinely execute and carry out related work. For example the R&D department closely

focuses on Yunnan’s specialty plant resources actively explores and protects plant-based ingredients and drives

product innovation. The production department ensures compliance during factory site selection construction

and operation and rigorously evaluates and controls the impact on the environment biodiversity and

surrounding communities. Additionally the Company has established the Botanee Charity Fund the first special

public welfare fund under Yunnan’s Project Hope focusing on ecological and environmental public welfare

causes such as biodiversity conservation among young people.Waste management goals

Counters’ goals: We will increase the recycling rate of waste aiming to raise the recycling rate of Stakeholder Engagement

recyclable materials to 80% within the next four years. Through source control and substitution

measures we aim to reduce the generation of hazardous waste with a goal to decrease hazardous

15% We maintain timely transparent interaction mechanisms with stakeholders such as consumers communities and social waste production by annually.

organizations to ensure their understanding and participation. In our stores we display images and information about

plant-based ingredients to educate consumers on biodiversity knowledge and the Company’s biodiversity protection

practices. The “Botanee Prinsepia utilis Royle Snow Mountain Cottage” project engages with the villagers living under

Haba Snow Mountain to discuss local resources and issues related to sustainable resource utilization while supporting

ecological protection and the sustainable development of local communities through financial and resource investments.

57 58Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Strategy

Risks/opportunities Description Mitigation measures

During the Reporting Period Botanee combined the LEAP method of TNFD

(Taskforce on Nature-related Financial Disclosures) and the guidance of

the Science-Based Targets Network (SBTN) to analyze nature-related Natural disasters and policy changes may interrupt ● Diversify raw material sourcing locations

dependencies impacts risks and opportunities based on geographic Supply chain raw material collection and transportation. Production establ ish strategic reserves; optimize Risk

location industry type and asset information. disruption lines may be halted due to raw material shortages logistics networks to enhance response

thereby affecting our sales and revenue. capabilities to unforeseen events.Identification of Connections with Nature

Prinsepia utilis Royle a key ingredient in our products

We used geographic spatial analysis methods to conduct trial ● Establish long-term partnerships to ensure mainly comes from the Haba Snow Mountain and

assessments of the direct or indirect connections with nature at Botanee’s Raw material raw material supply; invest in cultivation Risk the Lijiang-Shangri-La area in northwestern Yunnan.main operational locations (2 domestic factories and 1 planting base supply techniques to increase the yield of Prinsepia Production costs and product quality may fluctuate

and office site) to identify the nature-related risks and opportunities the utilis Royle.due to unstable raw material supply.Company faces providing important support for risk management actions.Botanee’s operations are concentrated in Yunnan and Shanghai with the

Kunming central factory being the Company’s largest manufacturing unit.Around the central factory within a 5 km 10 km and 50 km radius of its Climate change in the Haba Snow Mountain region ● Implement ecological restoration projects

geographic coordinates we found IUCN endangered species (3 Critically can lead to ecological changes that may affect Ecological such as afforestation to mitigate the impact

Endangered 1 Endangered 3 Vulnerable) RCB endangered species (1 Risk the growth of Prinsepia utilis Royle. Deteriorated changes of climate change; monitor climate change

Critically Endangered 5 Endangered 5 Vulnerable) and protected animals environment may reduce raw material production and trends and adjust our production plans.under the Law of the People’s Republic of China on the Protection of increase procurement costs.Wildlife (9 Class I 93 Class II and 424 species of significant ecological

scientific and social value). The area within 5 10 and 50 km of the central

factory includes 1 UNESCO World Heritage Site (Chengjiang Fossil Site) 1

nature reserve (Provincial Nature Reserve for the Precambrian “Sinian” - Ecotourism can generate additional income and ● Develop tourism projects that integrate

Cambrian Boundary Stratotype Section in China) and 18 natural parks. Opportunities Ecotourism development enhance brand image. It helps improve our market ecological conservation such as nature

competitiveness in terms of sustainable development. education and experiential activities.In the future we will implement stricter and more systematic monitoring

and compliance management for factories facing higher nature-related

risks and impacts ensuring ecological sustainability. As of the end of the

Reporting Period none of Botanee’s factories had any environmental

violations. The government may introduce stricter environmental ● Stay updated on environmental policies and

Activity policies that restrict certain production activities. regulations; proactively plan compliance

Risk restrictions due

to policies Production costs may increase and certain activities strategies; collaborate with government and

Assessment of Impacts and Dependencies may be restricted thus affecting business operations. third-party organizations for policy support.We used the ENCORE (Exploring Natural Capital Opportunities Risks and

Exposure) tool to conduct an initial assessment of business activities to

determine the primary business impacts and dependencies on nature.Based on the assessment of impacts and dependencies we identified Sustainable Consumers are increasingly concerned about the ● We will enhance brand image to attract

Opportunities

three substantial nature-related issues including land ecosystem use development trends environmental and product sustainability. environmentally conscious consumers.greenhouse gas emissions and water resources. On that basis we

gradually developed improvement plans.Assessment of Nature-related Impacts Risks and ● St rengthen envi ronmental educat ion

Opportunities Environmental issues can damage the Company’s within the Company to ensure all activities

Risk Reputation reputation if not managed properly. This can lead to a meet environmental standards; establish

damage loss of consumer trust and a decline in market share. a rapid response mechanism to address

We conduct targeted analysis and assessment of nature-related risks and

environmental issues.opportunities focusing on adjustments to business strategy and financial

planning and resource allocation to ensure effective management of

nature-related risks.

59 60Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Management Practices Ecotourism and livelihood support Capacity building and advocacy

In response to the “Kunming-Montreal Global Biodiversity Framework” proposed at the United Nations Biodiversity We promote the establishment of ecotourism By setting up signage in protected areas and

Conference (COP 15) we have launched “Creating a Healthy Ecology Embracing a Beautiful Future” biodiversity cooperatives train villagers as tour guides and purchasing natural education equipment we

conservation initiative that is aligned with our four long-term goals related to the “2050 Biodiversity Vision” and our foster both community economic development enhance the community members’ awareness

23 action-oriented global goals for 2030. Focusing on this initiative we advance biodiversity conservation activities and ecological protection. and involvement in biodiversity conservation.

contribute to global ecological civilization and embrace a beautiful future.Ecosystem Protection and Restoration

Sustainable Use of Biodiversity

Research on Yunnan specialty plants

Shangri-La Haba Snow Lijiang Laojun Mountain Lijiang Xinzhu Botanical

Mountain Garden

With the protection of Yunnan’s biodiversity as the premise we establish a research platform for the extraction of

Yunnan specialty plants focusing on the development of efficacy cosmetics functional foods and pharmaceuticals

derived from Yunnan’s unique plants with several active ingredients already developed and industrialized.We set up functional zone boundary We assist in establishing a professional We assist the local community in

markers directional and restrictive and stable wild patrol community team establishing a community patrol Eco-friendly product development

s i g n s w i t h i n t h e H a b a S n o w for the Yunnan Golden Monkey in the team primarily consisting of local

Mountain Protected Area to improve local area. We set up infrared cameras vil lagers for Xinzhu Botanical

management levels. We also build and other equipment to continuously Garden with other institutions For our featured ingredients such as Prinsepia utilis Royle oil we adhere to organic farming principles avoiding

a greenhouse with an advanced observe and regular ly monitor the and public welfare organizations chemical fertilizers pesticides and growth regulators. In extraction processes we use cold pressing or subcritical

environmental control system for Rhinopithecus bieti population. participating to reduce human low-temperature extraction methods avoiding organic solvents. We also launch waterless products to reduce water

the endangered plants of Haba interference and destruction. We resource and plastic packaging use and replace plastic products with PCR materials and glass bottles to promote

Snow Mountain providing an ideal also participate in the management sustainable packaging.greenhouse for the protection and of the Garden’s nursery base and

breeding of rare plants. Additionally vegetation restoration collecting

we car ry out in t roduct ion and seeds from native tree species in Plant callus culture technology

domestication work and cooperate on Northwest Yunnan for population

the breeding and protection of high- expansion and replanting.altitude rare plants. By non-destructively obtaining rare plant leaves buds stems and other parts we use tissue culture and directed

induction technologies to extract and screen active ingredients from plant callus achieving reasonable use and

sustainable development under biodiversity protection.Local Community Support and Empowering

One of our key raw materials Prinsepia utilis Royle (Himalayan wild cherry) originates from the Haba Snow Mountain Communication and Public Education

which stands in the “Vertical Canyon in Southwestern China” and “Three Parallel Rivers of Yunnan Protected Areas” World

Heritage Site for Nature. The Vertical Canyon of northwestern Yunnan where Haba Village is located is one of China’s Botanee actively participates in the communication and public education of biodiversity conservation enhancing public

three major centers of species differentiation and one of China’s 17 key biodiversity conservation areas. We collaborate awareness of the importance of biodiversity through various forms. At the Haba Snow Mountain Protected Area we

with local communities to assess the carrying capacity of the environment in Haba carry out capacity building for provided funding to support the establishment of a biodiversity education base and a natural education exhibition hall to

protected area management community environmental education and joint community governance actively promoting spread the concept of protection to the public. Additionally we film documentaries such as Haba Snow Mountain which

the balance between ecological protection and economic development. are distributed online to spread biodiversity knowledge and expand our influence.In April 2024 we launched a collaborative biodiversity conservation action with China Business Network School

Environmental governance and education for communities of Journalism of Fudan University and the Center of Enterprise Green Governance of the Ministry of Ecology and

Environment. Through a donation of CNY 3 million via YICAI Foundation we support public welfare projects in advocacy

research training and communication in this field promoting the spread of biodiversity public welfare concepts. During

In collaboration with the Alashan Southwest Project Center we carry out environmental management and

the Reporting Period we also launched the brand traceability short film Where Are the Magical Plants using creative

educational activities to raise local residents' awareness of environmental protection. Additionally we

storytelling and comedy to help consumers better understand Prinsepia utilis Royle. Additionally we partnered with

provide essential support for the patrol teams and management staff in the protected area.The Great Chinese Ingredients to release our tailored short film Prinsepia utilis Royle PRO MAX vividly conveying the

technological charm of Chinese plant ingredients.

61 62Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Case Ecological restoration in the fragile west slope of Haba Snow Mountain

In 2024 we completed the construction of a 17.1-mu (1 mu is approximately equal to 666.67 square meters)

ecological restoration sample plot on the west slope of Haba Snow Mountain. Through scientific methods we

preserved soil and water conserved water sources built protective fences and replanted local native plants

such as Hippophae rhamnoides subsp. yunnanensis Piptanthus concolor Picea brachytyla var. complanata

and Rhododendron. We also conducted emergency protection for the endangered and rare species such as

Cypripedium elegans and Cypripedium tibeticum. Additionally in cooperation with the Lijiang Institute of Alpine

Plant Research Chinese Academy of Sciences we collected germplasm resources from 60 to 70 species in Haba

Snow Mountain and the Northwestern Yunnan region. These seeds are being processed and cultivated at the

Lijiang Institute of Alpine Plant Research and will be transferred to the greenhouse at the foot of Haba Snow

Mountain for scientific habitat adjustment promoting the recovery and reproduction of populations and ensuring

the biodiversity and ecology of natural species.Case Camellia reticulata (Yunnan camellia) boosts local economic development

Camellia reticulata (Yunnan camellia) is the foundational species for breeding Yunan Camellia and is the most

famous among Yunnan’s eight famous flowers. It has traditionally been cultivated and sold as an ornamental Case Biodiversity conservation awareness and public education

plant. During the Reporting Period the Company entered into strategic cooperation with a Yunnan camellia

planting company to establish a Yunnan camellia planting experimental base. Without damaging the cultivation

planting and sales of Yunnan camellia the Company purchased Yunnan camellia flowers as raw materials for

products increasing the added value of the related industry.Case Yunnan culture and specialty plants

Winona & The Great Chinese Ingredients - Special Season Botanee’s biodiversity conservation

activities awarded the 2024 Green

In Liangwang Mountain Yuxi Yunnan Liangwang Tea has special Development Model by The Beijing News

medicinal value in the culture of Bai Ethnic Group. It is used Zero Carbon Research Institute

for clearing heat detoxifying promoting blood circulation and

relaxing muscles. Botanee has deeply studied its extract (G.ZH.Y.B.Z. No. 20240045) which has now been successfully applied to

its products.In Shangri-La Potentilla fruticosa L. is famous for its long history

in Tibetan medicine. Botanee developed the Potentilla fruticosa

L. extract (G.ZH.Y.B.Z. No. 20240067) using pure extraction

methods to obtain active ingredients. This not only inherits and [Scan the QR code to [Scan the QR code [Scan the QR code

promotes traditional ethnic medicine culture but also provides watch Where Are the to watch The Great to watch Haba Magical Plants] Chinese Ingredients] Snow Mountain]

employment opportunities and economic income for local

residents.

63 64Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Climate Action

Botanee places great importance on the impacts of climate change on our sustainable development.We actively monitor and address climate change-related topics. With reference to the framework

suggested by the Task Force on Climate-Related Financial Disclosures (TCFD) and IFRS S2 we make

systematic disclosures of information on climate risks and opportunities from the perspectives of

governance strategy risk management metrics and goal. In the future we will further enhance

our scenario-based analysis of climate risks accurately identify and effectively address climate risks

under different scenarios strengthen climate risk management and proactively seize opportunities

arising from climate change.Metrics and Goals Governance

We have established a top-down ESG governance framework with the Strategy Committee under

Our goals the Board of Directors taking overall responsibility for ESG matters. Climate change related risks

and opportunities are incorporated into the scope of ESG management and the Board of Directors

has clear oversight responsibilities for this sector. Under the guidance of the Strategy Committee

● We aim to achieve the scientific protection of mountain resources and the coordinated development the Board Secretary’s Office coordinates ESG related work and organizes collaboration among

of the specialty plant industry by 2030. various departments with the EHS (Environment Health and Safety) department managing

performance indicators to ensure effective identification assessment and management of climate

change-related risks and opportunities. We have also established a dedicated green supply chain

management organization to improve energy and resource utilization efficiency.Highlights Strategy

We recognize the complex risks and opportunities that climate change may pose to our business.We conducted preliminary climate risk analysis and assessment based on the TCFD/IFRS S2’s

classification standards and the characteristics of our business. This helped us identify climate risks

and potential opportunities directly related to our assets and operations. In the meanwhile we took

a series of measures to effectively address the identified climate-related risks and opportunities.As of the end of the Reporting Period Botanee As of the end of the Reporting Period Botanee

3.13 Charity Fund had donated more than CNY Charity Fund had invested a total of CNY

million in biodiversity conservation. During the 420000 and initiated the Lijiang

430000 Laojun Mountain Rhinopithecus bieti Field Patrol Reporting Period CNY was and Monitoring Project in collaboration with Yulong

invested mainly for the ecological restoration sample County Forestry and Grassland Administration

plot on the west slope of Haba Snow Mountain and Alashan SEE Southwest Project Center and other

for the collection of germplasm resources from Haba professional institutions.Snow Mountain.

65 66Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Climate risks and Description Mitigation measures Climate risks and Description Mitigation measures

opportunities opportunities

Short-term Global warming may lead to more ● Enhance emergency response capabilities: Green With increasing global attention to climate ● Implement plastic reduction and minimal

risks frequent extreme weather events such Develop emergency plans for extreme weather product change and sustainable development packaging minimize the use of paper

Frequency as high temperatures severe cold heavy events take prevent ive measures and innovations there is a significant rise in the demand for instructions and choose recyclable

and intensity rain floods and typhoons. These events strengthen relevant drills and early warning to environmentally friendly and sustainable materials for product packaging to

of extreme

weather could disrupt the supply chain and create ensure the safety of our operations personnel. packaging. Companies can launch innovative reduce our carbon footprint.events operational difficulties for retail stores ● Continuously optimize supply chain management: green products to seize this market trend.thereby increasing our operational costs Increase the number of high-quality suppliers

and business risks. and expand supply channels to ensure supply

stability under extreme weather conditions.The Company can enhance its brand image ● Promote “Save the Earth: Recycle andBrand value and increase consumer loyalty by actively Be Rewarded” and recycle product

Long-term Ecosystem changes may affect the ● Enhance the development of environmentally enhancement addressing climate changes and conducting empty bottles to reduce environmental

risk growth cycles of plants and the stability friendly products: Use sustainable raw materials related activities. impact and raise consumer awareness of

Ecosystem of active ingredients in them thereby and biodegradable eco-friendly packaging etc. environmental protection.changes increasing the uncertainty of raw material ● Strengthen supplier management and green

supply posing risks to our product quality procurement: Include ESG performance as a

and increasing business operations R&D bonus in supplier evaluations prioritize suppliers

and innovation costs. with outstanding ESG performance encourage

suppliers to obtain RSPO certification and

gradually increase the proportion of suppliers

with RSPO certification. Risk Management

Based on the characteristics of the industry and our own

business operations we have identified climate-related

risks and developed targeted management systems

Market risks With increasing consumer awareness Gradually conduct product carbon footprint to regulate emergency measures and reduce disaster ●

of sustainable living there is a growing assessments and continuously engage in low risks. We incorporated climate-related risks into our risk

market demand for environmentally carbon product innovation and development. management system to enhance our risk management

friendly products. This requires us to capabilities and mitigate potential adverse impacts.develop more eco-friendly products to

meet consumer expectations for reducing

plastic use and adopting lightweight

packaging. Metrics and Goals

To comprehensively evaluate monitor and optimize our

Policy and As global awareness of climate risks ● Continuously monitor global and local climate performance in addressing climate change-related risks

legal risks deepens regulations and disclosure related legal and regulatory changes as well as and seizing opportunities we have formulated goals

standards related to climate change policy developments. Assess potential policy risks and quantifiable metrics. We regularly review and adjust

are becoming increasingly stringent. through internal teams and external consulting them based on the latest data and best practices in the

Companies must continuously monitor firms. industry. We actively respond to the national strategic

and adapt to these changes to ensure goal to peak carbon emissions by 2030 and reach

● Emphasize cl imate risk management and

compliance with growing regulatory carbon neutrality by 2060 and continuously carry out keep improving climate change-related risk

requirements. energy-conservation and emission-reduction practices. management plans. We provide detailed disclosure of climate-related

● Strengthen sustainable development related performance indicators in our annual sustainability

information disclosure and enhance transparency report. For specific performance metrics and goalsin information disclosure. please refer to the “Low Carbon and Circular Economy:Protecting a Green and Diverse Ecosystem” section of

this report.

6768

Transition risks Physical risks

OpportunitiesTechnological

Precision:

03Building a Skin Health Ecosystem

Botanee values technological innovation and considers quality as

its core and customer service as its mission. We have established a

comprehensive quality management system for our products and

services focusing on strengthening chemical safety management

building of a healthy industry ecosystem integration of

management systems and coordinated operations. These efforts

aim to enhance our quality control core competitiveness and

ability to respond quickly to market changes. We aim to become

an outstanding enterprise embracing safe operations regulated

management and high-quality services while achieving rapid

stable and healthy development.Focus on Research and Development

Product Quality

Chemical Safety and Ingredient Transparency

Customer Service

Skin Health Ecosystem CreationYunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Focus on Research and Development

Philosophy Utilization of Specialty Plant Resources

Botanee has always been committed to forging competitive advantages through technological innovation. With a solid Based on the protection of Yunnan’s biodiversity the Botanee Yunnan

market position built on professional product strength we rely on strong R&D capabilities and professional channel Characteristic Plant Extraction Laboratory focuses on the development

advantages to bring safe and effective functional skincare products to more consumers. and utilization of plant resources and independently leverages Yunnan’s

unique plants to advance industries such as cosmetics functional foods

Strategy and pharmaceuticals. By December 2024

As of December 2024 Botanee had successfully filed 12 cosmetic plant-

based new ingredients. During the Reporting Period the laboratory has related products contributed an Botanee focuses on the skin health ecosystem with R&D as the core driving force. It has been recognized by the Ministry incremental

of Industry and Information Technology as a “National Industrial Design Center” and a “National Technology Innovation developed a results system consisting of 241 new products in 9 seriesDemonstration Enterprise” and has been certified for the Intellectual Property Management System Standard (GB/T including soothing sunscreen barrier repair high-end anti-aging and acne

29490-2013). Based on the Enterprise Intellectual Property Management Specification and the high-quality development treatment. As of December 2024 these related products have driven an CNY 11304 million in

goals of intellectual property in Yunnan Province we have implemented a patent navigation project and developed additional industrial chain output value of CNY 11304 million supporting industrial output value

the Intellectual Property Management Manual to ensure the effective protection of innovative achievements. We Botanee in achieving revenue of CNY 16272 million. In the international

have established an efficient and rigorous independent R&D and innovation system. The R&D team consists of multi- innovation competition “COSMETOPIADS & INPD” Botanee won 2024 INPD underpinning Botanee’s achievement of

disciplinary experts covering key areas such as basic research formula development and efficacy validation. AWARDS - Raw Materials and represented China in receiving the 2024

COSMETOPIADS - Public Research Excellence.CNY 16272 million in

Management Practices revenue.Innovation and R&D Strength

12 Plant-based Ingredients Have Completed the New Cosmetic Ingredient Filing

Botanee is committed to building and continuously

optimizing an innovation system centered on R&D. Botanee Yunnan Characteristic Plant

Through precise team configuration and enhancing R&D Extraction Laboratory (“YUNNAN Lab”)

strength we focus on the introduction and cultivation of

high-level talent. The laboratory was established under the leadership

of Botanee which is a National Standard Sample

Botanee Research Institute located in Shanghai has Validation Laboratory for Natural Products. The Ludwigia adscendens extract Fermented product of Candida bombicola glucose and Fermented product of Candida bombicola/glucose/

chaulmoogra oil coconut oil and Prinsepia utilis oil

carefully established several specialized R&D departments. laboratory has established an industry-leading raw

These include the Functional Cosmetics Research and material screening and evaluation system focusing

Development Center and the Innovative Raw Materials on the screening of Yunnan specialty plants R&D of

Research and Development Center which focus on the functional foods skin health research and R&D of

independent R&D of efficacious cosmetics and innovative botanical drugs.ingredients and on this basis conduct extensive applied

Salvia plebeia extract Extract of erigeron breviscapus (short-stalk fleabane) Seed oil of southern Chinese yew

fundamental research. Additionally we have established

a Medical Device Research and Development Department Botanee-France Joint Laboratory

dedicated to the R&D production transformation As a joint lab established with the Skin Research

and registration application of injectable filler medical Center of Saint-Louis Hospital (H?pital Saint-Louis)

devices. Botanee Research Institute possesses the vast in France the lab deeply explores the specific

majority of the testing capabilities of third-party testing mechanistic targets of sensitive skin. Cooperating

agencies. Particularly in the areas of soothing repair with Labskin a French research institute they jointly Extract from the tender branches of Taxus wallichiana var. Meconopsis racemosa extract Metapanax delavayi extractmairei (Southern Chinese yew)

brightening and spot removal firming anti-wrinkle and develop the unique 3D skin model.sun protection our R&D model is more comprehensive

and professional which provides strong technical support

for our product development.Botanee Japan Research Center

We have also established a collaborative R&D network This research center is dedicated to the R&D of

Ceratostigma willmottianum extract Selaginella uncinata extract Dasiphora fruticosa extract

across multiple regions so that we can fully leverage the innovative formulations and preparations and has

professional advantages of each R&D team. been put into operation.

71 72Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

In addition to internal empowerment the laboratory has built an innovative public Advance Industry-academia-research-healthcare Collaboration

technology service platform based on its own resources. As a public testing agency

accredited with both CMA and CNAS qualifications the laboratory provides professional

services in physicochemical safety and efficacy evaluations for raw materials packaging To ensure that our R&D capabilities remain at the forefront of the industry we have deepened industry-academia

materials and products to plant health product companies in Yunnan Province helping research-healthcare cooperation by working with medical institutions research institutions and universities. Through

businesses accelerate R&D and product launch. Meanwhile the laboratory solicits In 2024 close collaboration we have established joint teams such as the Ministry of Education Innovation Team the Yunnan

technological needs from regional and industry sectors publishes project guidelines sets Provincial Science and Technology Innovation Team and the Kunming Program High-level Innovation and Entrepreneurship the total revenue reached

up open topics and collaborates with well-known universities research institutions and Team. We have also established technical platforms such as the National Industrial Design Center the National Standard

companies at home and abroad to conduct applied basic research and frontier research 1.36 Sample Validation Laboratory the Yunnan Characteristic Plant Extraction Laboratory the Yunnan Provincial Postdoctoral promoting the transformation and sharing of results. CNY billion. Research Workstation and the Yunnan Provincial Enterprise Technology Center to facilitate resource sharing and

complementary advantages.In the past three years the laboratory has actively responded to Yunnan’s policy to

promote the high-quality development of the traditional Chinese medicine industry We collaborate with medical institutions to carry out clinical observation projects for new products ensuring that the

deeply empowering the development of the ginseng (Sanqi) industry. The laboratory has safety and efficacy of our products receive professional validation. Meanwhile we actively collaborate with leading

excelled in research and achievement transformation with products related to panax institutions including Yunnan University Fudan University China Pharmaceutical University Xi’an Jiaotong University

notoginsenosides generating a cumulative sales revenue of CNY 1.36 billion from 2022 East China Normal University and East China University of Science and Technology to accelerate the transformation of

to 2024 significantly enhancing the added value of ginseng as a traditional Chinese scientific research into industrial applications and drive industrialization.medicinal material. This has not only created benefits for the Company but also effectively

promoted increased income for farmers actively driving the upgrading of Yunnan’s Panax Important Progress

notoginseng industry and injecting strong momentum into building Yunnan into a globally

influential hub for the Panax notoginseng industry.● The Botanical Medicine R&D Platform at Yunnan University which is a contributing unit to the laboratory

cumulatively completed the collection of 6018 Yunnan plant species; prepared components of 20510

Case Laboratory upgrade and renovation completed plant extracts and established a sample library of 6242 natural compounds and their structural analogs;

completed foundational research on 44 researches on the material basis of medicinal plants from Yunnan

and conducted 124390 pharmacological activity screenings. 138 SCI papers were published and 4

In December 2024 the laboratory completed the scheduled upgrade and renovation project and began invention patents were applied for. Additionally 38 PhD students and 161 Master’s students were trained.operations. The laboratory spans 5000 square meters. It is dedicated to providing important technological The scientific achievements have both economic and social benefits: The fluorescence characteristics of

support for scientific innovation and achievement transformation in the Yunnan specialty plant big health plant coumarin isomers were discovered in the blood of the Toddalia asiatica providing a new direction

industry. for the utilization of fluorescent natural products and the discovery of luminescent molecules. This was

published in ACS Central Science and selected as the cover article in ACS News Weekly.● The antimicrobial activity research of diterpenes from sunflower extract shows that it is expected to

become a green fungicide providing a new approach to biological pest control in fruits and vegetables

and was reported by ACS News Weekly.● The Synthetic platform at Yunnan Agricultural University which is a contributing unit to the laboratory

cumulatively validated 73 key enzyme genes synthesized 16 rare compounds published 24 SCI papers

applied for 4 invention patents and trained 7 PhD students and 51 Master’s students. It supports Botanee

in planning the Haba Snow Mountain Prinsepia utilis Royle and carrying out introduction and domestication

work.● Build a medicinal plant multi-omics database (with 150000 visits).● For the first time elucidate the biosynthetic pathway of Orcinol glucoside achieve small-scale production

and complete biosynthesis research on cucurbitacin IIa and cucurbitacin.

73 74Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

R&D Incentives and Achievements

Category Total Patents Granted Patents Granted in

Botanee has long placed high importance on R&D investment and innovation. To enhance the enthusiasm and creativity 2024

of R&D personnel and ensure the long-term stability of the core R&D team the Company has established management

systems such as the Patent and R&D Achievement Reward Measures providing corresponding incentives and recognition Trademark rights 1164 115

for R&D personnel who make outstanding contributions in R&D-related fields. The reward measures and incentive policies

have effectively motivated R&D staff to engage in technological innovation and participate in technological and process Invention patents 71 22

improvements. In 2024 the Company achieved significant results in the output and transformation of technological

achievements talent introduction and cultivation. Patents Utility model patents 122 39

Conversion of research results into academic articles Exterior design patents 88 27

Botanee has maintained a high level of activity and an excellent conversion rate. As of the end of the Reporting Period Copyrights 77 18

the Company has been included in a total of 493 SCI and core journal papers which fully demonstrates Botanee’s

research achievements in areas such as basic scientific research dermatology and cosmetic technology innovation. In

2024 Botanee had 128 papers accepted of which 107 were indexed by SCI and 21 were published in core journals.

Reduce Animal Testing

Talent introduction and development

In the process of product development

The laboratory introduced 4 high-level talented persons trained 19 PhD students promoted 13 to senior titles and 5

employees have been awarded provincial-level talent titles during the Reporting Period. We strictly follow the safety assessment requirements

of the National Medical Products Administration (NMPA)

when conducting animal testing to ensure the safety

In cosmetics medical devices and other fields and efficacy of our products. We are committed to reducing non-essential animal testing and promoting

During the Reporting Period the Company registered 12 new plant-based ingredients which have since been gradually animal welfare and the sustainable development of

transformed into practical applications. The Company has accumulated a total of 393 ordinary cosmetic product filing the cosmetics industry. Botanee Research Institute has

certificates and 19 export cosmetic filings. In 2024 86 new products were filed in ordinary cosmetics. Additionally successfully constructed a Types I and IV sensitization

the Company has cumulatively obtained 51 special cosmetic registration certificates and 20 Class II medical device model using zebrafish which has higher predictability Lab Zebrafish "Tank"

registration certificates and developed 9 functional foods. The Company’s R&D strength is further demonstrated by a than traditional in vitro methods (cell based) and lower

robust portfolio of valid patents all of which significantly enhance its core competitiveness. cost and shorter experimental cycles than conventional animal testing (guinea pigs). This model

also enables high-throughput screening and is at the forefront of the industry. It improves the

existing sensitization evaluation system and is exempt from animal ethics concerns under the

Animal Testing Protection Law . During the Reporting Period the zebrafish platform and the cell

In terms of participation in standards formulation platform introduced new transgenic zebrafish strains and cell strains. The newly introduced

strains provide new possibilities for large-scale initial screening and visualization services for

During the Reporting Period the Company has launched the R&D of 4 national standard samples and has participated in products and raw materials further enhancing the R&D strength.the release of 6 national standards and 68 group standards to date including 13 group standards published in 2024.Additionally the institute has also successfully explored and established alternative in vitro

testing models and methods. The “3D Model In Vitro Alternative Assessment Platform” of Botanee

Research Institute has successfully constructed an in vitro reconstructed full-thickness skin model

marking a breakthrough from scratch in independent R&D in this field for Chinese functional

skincare brands. During the Reporting Period the Company has preliminarily completed the

independent construction of the “3D Endogenous Inflammation Full-thickness Skin Model” and

the “Melanin Full-thickness Skin Model” marking an important advancement for Botanee in the

field of skin model construction. Additionally successful preliminary exploration was conducted

on the construction of airway epithelial organ models laying a solid foundation for the future

establishment of exclusive evaluation models. This fully demonstrates the strength and innovative

capabilities of the R&D team.

75 76Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Product Quality Management Practices

Philosophy Manufacturing Quality Management

Good and stable product quality is Botanee’s consistent pursuit. We continuously improve quality management policies We combine independent production and contract manufacturing to ensure product line diversity and efficiency.and process systems focusing on five key requirements: “System Objective-oriented Process-based ManagementDigitalized Processes Standardized Foundations Continuous Improvement”. Throughout the entire lifecycle of products— Independent Production

design production transportation sales and after-sales service—we strictly comply with laws and regulations employing

rigorous production processes and quality control systems to ensure that product quality meets market demands and

quality requirements and possesses long-term core competitiveness.In the independent production process we implement comprehensive management procedures covering every

Strategy production stage from formulation to filling and packaging. In 2024 we focused on managing new product trial

production and officially launched the new product trial production process. Issues identified during the trial

As a company deeply rooted in the skin health ecosystem Botanee places product quality at its core committed production phase were promptly corrected and prevented ensuring the stability of mass production.to providing high-quality products while rigorously controlling every risk factor throughout the product lifecycle. We

continue to strictly follow regulations and general standards such as the Regulations on Supervision and Administration

of Cosmetics the Measures for Cosmetic Registration and Filing Management the Measures for the Supervision and Pre-production During production

Administration of Cosmetic Manufacturing and Operations the Measures for Cosmetics Adverse Reaction Monitoring

the Administrative Measures on Cosmetic Labeling the Supervision and Administration Provisions on Children Cosmetics We conduct thorough inspections to We have established processes including first-article confirmation

the Quality Management Regulation for Cosmetic Production the ISO 9001 Quality Management System the ISO 22716 ensure a clean production environment production line self-checks quality control sampling and quality

Cosmetic Good Manufacturing Practice and Good Manufacturing Practice Guidelines for Cosmetics in the United States and implement preventive measures to Certificate of Analysis (COA) control. We regularly validate key

(GMPC). We also establish and continuously review and update internal systems such as the Standard Management prevent confusion contamination and production equipment monitor key process parameters and

Procedure for Adverse Reactions to Cosmetics the Standard Management Procedure for Product Quality Complaints and cross-contamination. comprehensively control quality during the production process

the Medical Device Quality Management Manual. through quality control of intermediate and finished products.For medical device products we strictly adhere to relevant national regulations and

general standards such as the Regulations on the Supervision and Administration of Normalized work

Medical Devices the Measures on the Supervision and Administration of Medical Devices

Manufacturing the Measures for the Supervision and Administration of Medical Device We continuously improve the review management and defect management systems for materials and key

Operations the Regulations on Medical Device Manufacturing Quality Management processes. We regularly conduct microbiological testing of raw materials and finished products at the Kunming

and the ISO 13485 Medical Device Quality Management System for Regulatory During the Reporting Period Central Factory and Qingpu factory. All self-operated factories undergo comprehensive inspections and quality

Requirements. We have also developed our internal systems such as the Medical Device 2 control is divided into three lines of defense: Localized regulation by regulatory authorities group-level direct Quality Management Manual . We adhere to the compliance and safety requirements of our self-operated quality oversight and factory-owned regulatory teams. This strengthens quality testing requirements to ensure

when selecting medical devices as well as quality control management standards in product quality and safety.accordance with the Standard Management Procedure for Adverse Events of Medical factories received ISO 9001

Devices and the Standard Operating Procedure (SOP) for Periodic Risk Evaluation of and ISO 22716 certifications.Medical Devices.To strictly control product quality we have established the dedicated Quality Contract Manufacturing

Management Department set production safety standards and standardized

operating procedures. We produce strictly according to production processes and

operating regulations and have built an electronic Quality Management System (QMS) For the contract manufacturing mode we have established the

platform to enhance inspection and monitoring at each production stage. This ensures Standard Management Procedures for Contract Manufacturing to

comprehensive full-process quality control to ensure product safety and reliability. regulate the development review and quality control of contract

manufacturers. Quality objectives and supplier assessment On-site supervisory inspections

include weekly monthly and annual

goals are clearly stated in quality assurance agreements. We inspections with

Quality Policy Supervision and Product filing and continuously strengthen the admission evaluation and elimination

compliance formulation evaluation registration management of contract manufacturers and supervise and 100% coverage of

Quality manage them through daily supervision quarterly inspections

Management Responsibilities Market access license Medical device

Contract

manufacturing annual supervision and for-cause inspections. We increase the outsourced factories.management registration

Department quality management proportion of product type testing and regularly hold special

quality meetings.Post-market adverse Evaluation

reactions management

77 78Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Finished Product Quality Management

For finished product inspection inspectors conduct inspections according to the corresponding quality standards and

inspection procedures following our internal control standards. After a certificate of conformity is issued the products Chemical Safety and Ingredient

are released or put into use. In terms of information monitoring and assessment we closely monitor relevant information

and follow the “Plan-Do-Check-Act” (PDCA) model to continuously identify and rectify product or system risks. We Transparency

establish a risk list and a risk control measures list and once new quality or safety issues are identified we immediately

take corresponding risk control measures to ensure that every step of the product from raw materials to finished goods

is strictly controlled. Philosophy

Recall Management

Creating gentle safe and reliable products is Botanee’s core commitment. We comply

Regarding product recalls the Company has established a comprehensive product recall mechanism and procedure with national laws regulations and the relevant requirements of regulatory authorities

managed according to the internal procedure B-SMP-XS-1004 Standard Management Procedures for Product Recall . We regarding the use of chemicals strengthen chemical safety management and ensure the

regularly conduct product simulation recalls and emergency drills for product safety incidents to enhance our emergency compliance of products and ingredients. We adhere to the development of the streamlined

response capabilities. Based on the recall situations and drill outcomes we timely adjust and improve the relevant work gentle formulations focus on researching characteristic botanical ingredients from Yunnan

management standards. in product development to reduce product irritation meet the needs of sensitive skin

and improve the transparency of product ingredients. We value consumer education and

Medical Device Adverse Reaction Reporting provide customers with detailed information about the skin care process and product

usage to ensure that consumers have a full understanding of the product ingredients and

Botanee has established a medical device adverse reaction monitoring management team. A standardized and smooth expected effects. Our goal is to enhance ingredient transparency and provide safer and

serious adverse product event information collection system has been established. Adverse drug reactions are managed more reliable products and services.according to the internal procedure B-SMP-ZL-1014-00 Adverse Event and Adverse Reaction Management Procedure with

the Quality Management Department handling them promptly and effectively.Promotion of Quality Culture Strategy

We continuously conduct training and awareness-raising activities related to quality enhancing employees’ quality

Botanee adheres to the concept of green and safe raw materials implementing a multi-

awareness and technical skills and establishing a quality culture system that involves all employees. Internally

layered strategy for product ingredient management. We update the Botanee Prohibited

Botanee requires quality-related personnel to undergo specialized quality and quality management training to meet job

and Concerned Chemical Ingredient List annually.requirements. Additionally our factories conduct annual assessments on quality environmental occupational health and

safety management systems and continuously improve based on the assessment results. We strictly comply with the laws and regulations of all operational regions at home and

abroad ensuring that our products do not contain any banned ingredients including those

To strengthen the development of a quality culture we enhanced training activities during Quality Week and Quality

outlined in the China Cosmetic Safety Technical Specification 2015 the EU Regulation (EC)

Month in 2024. Through systematic course design and practical exercises we helped employees gain a deeper

No. 1223/2009 the US Cosmetic Ingredient Review and the relevant requirements of the

understanding of the importance of quality management and its application methods in daily work.EU Scientific Committee on Consumer Safety (SCCS) among others. The list of prohibited

The key quality operation data for batches produced within the Reporting Period in 2024 is as follows with quality ingredients includes over 1000 banned components or prohibited plant/animal components

indicators generally showing further improvement. listed in the China Cosmetic Safety Technical Specification 2015 such as benzene bisphenol

A hydroquinone antibiotics and estrogens. We also comply with the requirements of the

National Development and Reform Commission (NDRC) by not using plastic microbeads in

rinse-off products.Quality Indicator Quality Goal Performance in 2024

Additionally in order to respond to future regulatory trends and proactively enhance our

Raw Material First Inspection Pass ≥99.0% 98.96% chemical management capabilities we have comprehensively identified high-concern Rate chemical ingredients and established the Botanee Concerned Cosmetic Ingredient List

Packaging Material First Inspection ≥98.5% 98.78% that is stricter than the regulations. Any use of these high-concern chemical ingredients in Pass Rate R&D or production must undergo special evaluation and approval. For example Botanee

Semi-Finished Product First ≥99.6% 99.98% commits to not using or restricting the use of ingredients from the EU Candidate List of Inspection Pass Rate SVHC for authorisation and to limiting the use of sunscreens in accordance with the

Finished Product First Inspection Pass

Rate ≥99.5% 99.91%

Hawaii Bill SB 2571 (now Act 104). In raw material management we have also included

raw materials that could potentially be classified as plastic microbeads in the Botanee

Product Complaint Quality Defect ≤30 4.8 Restricted Ingredient List with plans to gradually reduce their use in the future.Rate (Parts per Million PPM)

5th People’s Government of

Logistics Error Rate 0.02% 0.00141% Yunnan Province Quality Award

79 80Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Management Practices Botanee’s sunscreen products gradually used Phyllanthus emblica extract Case upholding the concept of environmental friendliness

Raw Material Safety and Health Management

Benzophenone a commonly used sunscreen agent has negative impacts on marine organisms particularly

In terms of raw material compliance we formulated the internal Raw Material Review Record Form to implement the with its lethal effects on coral larvae being particularly significant under sunlight. Therefore the Hawaii Bill SB

practical management of chemical safety and conduct compliance audits when introducing raw materials. This includes 2571 (now Act 104) has banned the sale and distribution of sunscreen products containing benzophenone-3

verifying whether the raw materials comply with cosmetics-related regulations and standards whether they contain in Hawaii. Botanee has gradually phased out and prohibited the use of benzophenone-based sunscreens in

prohibited or restricted ingredients and confirming their compliance with safety toxicology regulations in authoritative its products following the trends of “ocean-friendly” and “sensitive skin” sunscreen requirements. We have

institutions in China the EU the US and other countries. For raw material risks we have formulated the Three-tier Risk strengthened research on plant-based sunscreen enhancers and developed a gentle natural plant extract—

Control Policy for Core Raw Materials . The first tier involves testing risk substances for compliance with regulations. The Phyllanthus emblica extract—with enhanced sunscreen effects. This extract will gradually be incorporated into

second tier evaluates whether the production and storage processes of raw materials generate substances detrimental sunscreen products.to health and the third tier controls the purity and quantitative analysis of ingredients. Based on annual test results we

develop ingredient elimination plans. The Company has established a list of raw material and product risk substances

and conducts testing as required continuously optimizing the quality of raw materials and products. Additionally

the Company uses equipment such as electronic noses Gas Chromatography (GC) and Gas Chromatography-Mass

Spectrometry (GC-MS) to expand the odor profiles ensuring product safety. In 2024 we further strengthened the

screening of banned and restricted substances in raw materials established control line levels and enhanced the testing

of microorganisms heavy metals and banned/restricted substances in products to ensure that products on the market Green Formula R&D

comply with the China Cosmetic Safety Technical Specification .Botanee’s R&D team continuously explores innovation by integrating green

chemistry principles into product development. Our formulation design

follows the principle of simplification adding only what is necessary. The

selection of all ingredients is based on scientific facts and experimental

data ensuring that our products are safe stable and effective while

Chemical Elimination Plan minimizing their negative environmental impact. In choosing active

ingredients we leverage the unique plant resources of Yunnan. From over

6500 plants we select core efficacy ingredients such as Prinsepia utilis

Eliminated Chemical Reason Type Scope Alternative Chemical Name Royle Portulaca oleracea (common purslane) Camellia reticulata (Yunnan

camellia) and Paris yunnanensis (Yunnan manyleaf paris rhizome) aiming

Benzophenone Safety risk Banned Completely Stable sunscreen or physical sunscreen to maximize the skincare benefits of plants while reducing the use of banned with high molecular weight synthetic chemical components.In the development of plant ingredients advanced technologies such as

Octocrylene Poor stability in Restricted Completely Stable sunscreen or physical sunscreen deep eutectic solvents ultrasound-assisted extraction and subcritical formulation banned with high molecular weight low-temperature cold extraction are employed to minimize the use of

organic solvents. The Company also focuses on developing formulation

Completely Safe and stable chemical or plant-derived frameworks suitable for cold-processing processes which reduce energy Formaldehyde Safety risk Banned banned ingredients with preservative effects consumption during production. Across the entire chain from ingredient

selection and formulation design to product manufacturing efforts are

made to reduce the overall environmental impact of the products.Methylisothiazolinone Safety risk Banned Completely Safe and stable chemical or plant-derived banned ingredients with preservative effects

Product Labeling and Marketing

Polyethylene Toxic to marine Banned Completely Polymers not classified as plastic organisms banned microbeads We comply with the Advertising Law of the People’s Republic of China

the Administrative Measures on Cosmetic Labeling and the requirements

of the NMPA’s advertising review departments. We strictly implement

compliant product labeling and claims and update product information

and promotional materials in accordance with changes in laws and

regulations. Our products undergo clinical validation before and after

market launch. Product promotion is based on the validation results

We require suppliers to complete the Raw Material Information Form and provide technical documentation. Raw material which will be published in academic journals. Qualified doctors provide

suppliers must regularly provide reports such as toxicology tests. Any changes to the ingredients of the supplied raw responsible evaluations of product efficacy. On the product official website

materials must be notified to Botanee in advance and undergo re-evaluation approval and filing or filing information and public product inquiry platform we disclose product ingredient lists

changes. and formula information as required by laws and regulations.

81 82Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Consumer Education and Safe Use

of Cosmetics Botanee co-hosted the “Brand Zero Distance Ensuring Quality” consumer Case factory tour experience

We strengthen customer awareness of Botanee’s

chemical safety and ingredient transparency concepts On October 25 2024 Botanee in collaboration with the Kunming Consumer Association and the Kunmingthrough professional training teams regular knowledge Administration for Market Regulation High-Tech District Bureau co-hosted the “Brand Zero Distance Ensuringpromotion at stores OTCs and other organizations by Quality” consumer factory tour experience. Nearly 100 consumers were invited to visit Botanee’s central

conducting “skin health checks” providing consultations factory where they toured the production workshops and discussed consumer rights protection product

on the safe use of cosmetics trial experiences and on- quality safe use of cosmetics and more with Botanee’s quality experts and skincare trainers. This hands-on

site guidance. Meanwhile we aim to guide consumers experience allowed consumers to witness Botanee’s intelligent production capabilities and feel the Company’s

in scientifically identifying and correctly using cosmetics commitment to product quality and safety.encourage the publ ic to part ic ipate in the joint

governance of cosmetic safety while ensuring the safe

use of cosmetics and create a favorable environment

that ensures public safety in cosmetics use.Customer Service Management Practices

Philosophy Diverse Customer Services

Botanee always upholds the philosophy of “Customer First User Foremost” ensures smooth customer communication We aim to provide the best service experience to our customers through multi-channel customer services personalized

channels and continuously improves the brand matrix. Through differentiated functional product positioning such as services and attention to both skin and mental health.Winona Winona Baby AOXMED and Beforteen we aim to precisely cover a more diverse consumer group and resonate

with the consumers’ core demands. In addition we provide comprehensive services through immersive scenario-based

service models complemented by an AI-driven skin diagnosis system and a medical aesthetics empowerment platform

achieving deep coverage of consumer groups. We insist on responsible marketing and comprehensive after-sales

management providing customer service guarantees throughout the product lifecycle.Online Consumer Communication

Strategy

Botanee is committed to responsible marketing and providing compliant products and services following laws and We go beyond just product sharing and promotion and aim to build a skin ecosystem offering consumers comprehensive

regulations such as the Advertising Law of the People’s Republic of China the Regulations on the Supervision and skin health solutions. On such official brand self-media accounts as Winona we publish skincare articles on a monthly

Administration of Medical Devices and the management provisions of the place where it operates such as the Measures basis through the official WeChat accounts. These articles provide scientific skincare knowledge and tips on hot topics of

for the Management of Chief Aesthetic Physicians in Shanghai. We emphasize compliant transparent and accurate consumer concern. We organize female mutual assistance activities such as “Goodbye Sensitivity” series and customize

product promotion reject false advertising and our legal department conducts monthly systematic and regulated checks peripheral products focusing on skin sensitivity and emotional sensitivity themes. These activities encourage public

on advertising information. Our internal market inspection team conducts on-site inspections of stores every month. In attention to the relationship between skin and emotional sensitivity promoting mental health care through channels

store management we have established internal policies and systems such as the Reception Procedures and the Medical such as official WeChat accounts and social groups. In the current year we continued to increase the use of AI customer

and Nursing Assessment Standards. This year we added the Digital Marketing Compliance Guidelines. We strictly adhere service to alleviate the pressure on human customer service representatives and enhance customer experience.to regulated management processes for device procurement product use and disposal expert qualifications certification

hygiene and safety standards ensuring the benefits as well as legitimate rights and interests of patients medical service

providers and managers.Offline Consumer Communication

In the current year we increased the number of customer service suppliers and established a supplier PK (performance

evaluation) mechanism to motivate improvements in customer service capabilities. Additionally Botanee established a

Customer Experience Improvement Team and introduced the Social Media Response SOP focusing on addressing issues We have established multiple offline retail stores and medical skin centers nationwide and continuously expand the

raised by consumers on social media. For customers with after-sales requests we ensure timely handling and follow-up coordinated development of offline OTC professional channels providing consumers with comprehensive multi-channel

until the matter is resolved. and personalized customer service.

83 84Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

We introduce cutting-edge medical aesthetic technologies and treatments

focusing on leveraging technology to improve service efficiency and ensuring the

Medical professionalism and effectiveness of our services. In daily operations we organize

aesthetics a variety of professional health education activities and regularly host customer

centers appreciation events. We also introduced a more advanced efficient customer

relationship management system to further enhance customer interaction in the Consumer Experience

current year.Online we regularly invite dermatology experts to conduct educational livestreams and online

consultations for users. We also regularly invite users to participate in offline activities providing

We have teams of professionally trained beauty advisers who can provide skincare knowledge through salons. Dermatology experts and professionals perform skin tests

appropriate skincare product selection advice based on consumers’ individual skin and consultations for users ensuring high-quality and personalized service. In the current year

Offline conditions. Additionally we continue to implement the GHG (Girls Help Girls) Program we collaborated with the Combination of Traditional and Western Medicine Dermatology to

retail

stores at our retail stores addressing women’s physiological needs. When women are away develop an online educational applet which was successfully applied to offline free clinics and

from home and encounter their menstrual period they can seek assistance at nearby gathered authoritative dermatology experts to shoot acne-related educational videos enhancing

stores to receive free sanitary pads. the public understanding of skin health.To create an accessible skincare experience Botanee has established and released a Braille

Height Testing and Evaluation Standard document. Since 2012 the skincare brand Winona has

To ensure that consumers in cooperative chain pharmacies enjoy professional and been continuously providing Braille design for its product packaging achieving 100% coverage

meticulous service experiences we provide free closed skin management training for across all Winona product lines.clerks. Store staff who obtain certifications such as the Skin Management Specialist

Offline or Beautician qualifications from the Ministry of Human Resources and Social Security

OTC will receive incentives to encourage them to further enhance their professional

channels knowledge and service levels. We have partnered with several chain retail

pharmacies to regularly host Sensitive Skin Care Awareness Days — public service

salons tailored for pharmacy members. Through these events we promote scientific

skin care knowledge for sensitive skin to consumers in the pharmacy channel.Braille on the outer packaging of Winona products

85 86Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Case Collaborated with dermatology experts to conduct livestream educational Service Quality Improvementsessions on skincare knowledge

Botanee continuously strengthens safe and compliant operations enhances product access standards introduces

In 2024 Botanee launched the “Sensitive Skin Intelligence Bureau” series activities by publishing multiple advanced treatment technologies and excellent talent optimizes service processes and is committed to improving both

posts and inviting customers to join livestreams. We irregularly invite dermatology experts to participate in the online and offline service quality and customer satisfaction through strict and systematic customer service management

livestream sessions where they educate customers on skincare knowledge promote skincare techniques and systems.answer questions related to sensitive skincare.Diverse Service Training

We organize new employee onboarding training divided into four stages based on the

New employee

training length of employment to comprehensively introduce corporate culture product knowledge

compliance and other content.We implement periodic internal service management system training for employees holding

Periodic 2 to 3 sessions per week covering various knowledge such as service skills project operation

routine

training processes and more. Additionally we have established an online customer service learning

platform updating over 100 courses to enhance the professional depth of customer service.We regularly provide training to external partners such as the service teams at

External store

training pharmaceutical stores and continuously deliver professional product and skincare knowledge

through an online applet.Publish livestream posts and collaborate with experts for knowledge sharing

Special We continuously conduct routine marketing knowledge training and organize special

marketing training before specific marketing activities to ensure service friendliness customer service

training professionalism and customer satisfaction.Customer Feedback and Handling

We have established a standard operating procedure (SOP) management system for customer service and complaint

handling. We encourage customers to provide real-time feedback for prompt response and service improvement

Special We regularly conduct special theoretical and practical training on medical equipment

ensuring effective supervision of product and service quality. We have established multiple channels including phone training on management medical device maintenance and adverse reaction reporting at medical

WeChat and online applets to ensure a fast fair and transparent handling process thereby continuously improving medical aesthetics aesthetics centers. In 2024 we held 74 training sessions in total.the customer experience and closing the loop on complaints effectively. We value customer feedback and continuous

improvement and regularly collect and analyze customer feedback to optimize service processes and products based on

such feedback.Encourage We encourage employees to enhance their comprehensive abilities by setting up instructor

Clear timeliness employees to become certifications. In 2024 we certified 7 new external part-time instructors and 25 new internal

requirements trainers part-time instructors.Acceptance Respond within 24

of customer Issue classification Response Handling

Tracking and hours and strive to

feedback follow-up find a solution.Encourage

employees We encourage employees to obtain the Skin Management Specialist Certification from the

to pursue

In addition we have established a comprehensive return and exchange process. For returns customer service personnel professional Ministry of Human Resources and Social Security offering three days of free closed-door

qualifi-

analyze the reasons record inspections and keep detailed records of return and exchange orders related to allergies and training and rewards for those who pass the exam.cations

quality issues. These records are then forwarded to product departments to continuously optimize product design.

87 88Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Case Established a “Friend-like Chat” customer reception mechanism

Actual Result in Actual Result in

In 2024 to create a “warm” and “professional” service we launched the “Friend-like Chat” customer In 2024 the Company’s customer satisfaction survey 2023 2024

reception mechanism and developed a complete implementation chain. We promoted its implementation scored 93.63 points and the Customer Service Average

through training and sharing activities and also initiated an employee-led sharing session in the current year Department recorded a total of 169 complaints Response Time 21.83 seconds 16.25 seconds

spreading the positive service philosophy throughout Botanee’s customer service operations. With a friendly 100% to Customer with a complaint resolution rate. The Complaints

and approachable reception process and chat style we ensure that customers feel comfortable while their Company continues to strengthen subsequent quality

questions are answered thereby increasing customer satisfaction. improvements and enhancements.Collect

Set up an excellent Share cases Practiced Re-collect

Share

experimental cases from the within the by all excellent

excellent

experimental group employees cases customer group

group services

Implementation chain of the “Friend-like Chat” customer reception mechanism

Case Created Botanee online medical training courses Customer Service-related Awards in 2024

As dermatology is a core pillar of Botanee’s long-term development in order to meet employees’ learning and

development needs and empower front-line personnel to become knowledgeable employees the Group’s

Medical Department developed the Botanee Dermatology Knowledge Training Course in the current year. The

aim is to enrich employees’ dermatological knowledge base through scientific and systematic training enabling

them to present more professional images and deliver more scientific content to customers. In 2024 the online

training system offered 38 long and short video courses and 87 mini-sessions covering various skin issues such

as skin physiology basics sensitive skin acne pigmentation skin photoaging dermatitis eczema and more. All

educational content is explained by 32 professional dermatologists. Each category of skincare knowledge also

has customized exam questions allowing employees to track their learning progress in real-time.

2024 Best Operations for 618 Jing 2024 Annual Yu Yi Quality

Xiao Zhi Assisted AI Training Management Pioneer

Winona Official Flagship Store: Winona Official Flagship Store:

2024 Five-star Store 2024 Experience Pioneer Store

The Group’s online medical training courses

89 90Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Skin Health Ecosystem Creation Management Practices

Build a Healthy Retail Ecosystem

Philosophy

Botanee has established a strategic blueprint centered on sensitive skin and comprehensively creating a professional

Botanee is committed to “creating China’s skin health ecosystem” and a win-win development ecosystem. We actively brand with strong efficacy and multi-track capabilities. We continuously deepen cooperation in the OTC channel and

seek cooperation and co-building with various parties to provide our customers with more convenient and efficient retail pharmacies establish and solidify business cooperation models and persistently explore the diverse OTC health and

service experiences. We continuously expand our business fields regularly organize industry forums and establish close beauty ecosystem in the new era. In 2024 Botanee showcased five core brands at the Second OTC Brand Conference

partnerships with other companies and organizations to jointly drive innovation and sustainable development in the committed to bringing more safe and effective products to consumers in partnership with professional retail pharmacy

industry. channel partners. Additionally we held the First National OTC Service Provider Conference inviting over 300 industry

elites to discuss the value upgrade of pharmacy service providers. At the conference the 3C service provider standards

Strategy were released reshaping the industry’s service ecosystem benchmark.We are committed to building a healthy R&D ecosystem by collaborating with hospitals research institutes and Botanee OTC's 3C service provider standards

universities. Through technological innovation and product upgrades we provide advanced solutions to the industry and

inject new vitality into its development. We established the Medical Department to provide unified academic support

for various product categories and channels from three dimensions (setting standards establishing systems and

creating synergy) and to translate academic knowledge into content that consumers can understand. In 2024 based on COHESION

Botanee’s dermatological expertise the Medical Department took the lead in writing the Common Skin Problem Solutions

Based on Clinical Diagnosis and Treatment Logic as internal guidance materials which have already been applied in

business processes.CUSTOMER

The industry-academia co-creation product development model has become the essential path for expanding the market FOCUS

of functional skincare products. In the current year we established an expert committee consisting of 19 dermatology

experts from both domestic and international fields dedicated to promoting communication and cooperation between

the Group and the dermatological community related associations universities and industries enhancing the academic

development of the Group’s brand. COMPETENCE

In addition we have jointly organized the 5th China Sensitive Skin Summit Forum in collaboration with authoritative

dermatological institutions including the Chinese Journal of Dermatovenereology the Skin Committee of the Chinese

Non-government Medical Institutions Association the Chronic Skin Disease Management and Health Promotion Branch of

the China Anti-Aging Promotion Association and the Dermatology Committee of the Chinese Human Health Science and

Technology Promotion Association. At the same time we actively collaborate with international national and industry The OTC Industry-academia Co-creation Scientific Alliance continues to support retail pharmacies from three aspects:

organizations and associations to promote the formulation and implementation of industry standards driving the Professional empowerment communication empowerment and marketing empowerment.development of China’s skin health ecosystem.We launched the “Skin Consultant Plan” aiming to cultivate front-line health and beauty sales elites in

pharmacies enhancing differentiated service advantages and promoting the common development

of the industry. The focus is on common skin special care needs such as dermatitis eczema post-

Professional medical aesthetics treatments and acne and pigmentation treatment strengthening new product

empowerment support for professional channels particularly in moisturizing and repairing efficacy and post-

treatment special care medical device products.Define standards Establish systems Create synergy We focus on building a series of empowerment projects including assisting in setting up beauty

product livestreaming rooms and creating skincare scenarios for the Winona brand. These initiatives

● Industry: Lead the academic ● Improve the medical ● Integrate medical expertise aim to highlight the professional image of functional skincare in OTC pharmacies accelerate the

development trend for research layout based on Communication

● Unify empowerment across empowerment

placement of beauty products in retail pharmacies and expand and enhance related services driving

functional skincare products. market demand and provide

systematic medical resources systems

a breakthrough in beauty product sales in pharmacies.● Internal: Provide systematic

●

scientific evidence and and content development. Collect cross-departmental medical needs We actively participate in industry expos and through the establishment of a refined and hierarchical guidance for dermatology. terminal management model launched the “Beauty Sprouts Program”. This initiative empowers

● Achieve medical

research and innovation people products and places across the board driving chains to establish new category marketing

communication Marketing strategies. Leveraging our brand advantages sales resources and professional solutions we have

empowerment successfully empowered over 90000 nationwide chain and regional chain pharmacy terminals driving

retail pharmacies to accelerate their adaptation to the new retail transformation in the industry.

91 92Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Botanee partnered with OTC retail pharmacy partners to create a benchmark Botanee released the White Paper on the Trends of China’s Retail Pharmacy

Case for industry-academia co-creation Case Functional Skincare Products

At the 19th Annual Meeting of China Dermatologist Association & National Congress of Cosmetic On August 10 2024 at the 17th Health Industry (International) Ecosystem Conference – 2024 China

Dermatology Botanee for the first time participated in the CMDA event with OTC retail pharmacy partners Pharmaceutical Ecology Organization (CPEO) Conference Botanee’s Winona brand in collaboration

and held a special sub-forum titled “OTC Industry-academia Co-creation Pioneer Private Session” under the with Sinohealth Consumer Research Center jointly released the White Paper on the Trends of China’s

theme “Empowered by Industry-academia Advancing Beauty”. The event gathered top dermatology experts Retail Pharmacy Functional Skincare Products which was witnessed by hundreds of guests from leading

Botanee Research Institute representatives and OTC channel pioneers to explore the industry-academia co- pharmaceutical chains and industrial brands at home and abroad. The white paper explores the effective

creation model for empowering retail pharmacy terminals. Botanee also announced the official establishment market promotion models and marketing strategies of functional skincare products in retail pharmacies from

of the OTC Industry-academia Co-creation Scientific Alliance further strengthening efforts to build a the perspectives of “markets-consumers-pharmacy operators-industry” creating a closed loop from “trendbenchmark for scientific communication in the OTC industry and advancing together with more OTC partners. insights” to “marketing implementation” and leading the transformation and upgrade of retail pharmacies.OTC Industry-academia Co-creation Pioneer Private Session 17th Health Industry (International) Ecosystem Conference

Build an Online Health Ecosystem

Program

Winona launched the "Please! Experts" livestreaming

program for science popularization aiming to provide In 2024 the livestreaming sessions for "Please! Experts"

consumers with scientific and authoritative skincare livestreaming program on RedNote (Xiaohongshu) for science

knowledge through professional explanations popularization

by doctors from Grade-A tertiary hospitals while totaled with approximately

showcasing the brand’s medical mindset and

professionalism. In 2024 a total of 26 livestreaming

views

sessions on RedNote (Xiaohongshu) were held with 26 13000

approximately 13000 views.Empower Medical and Research Construction

We have carried out multiple ecosystem co-creation initiatives collaborating with top domestic medical associations

to hold academic conferences knowledge competitions and other events focused on product efficacy or case studies

promoting innovative technological research and the clinical application of products.

93 94Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Winona presented research achievements at the 19th Annual Meeting of China Case Winona hosted the 5th China Sensitive Skin Summit

Case Dermatologist Association (CDA) & National Congress of Cosmetic Dermatology

In 2024 Winona Research Institute in collaboration with the Chinese Journal of Dermatovenereology the Skin

In November 2024 the 19th Annual Meeting of CDA & National Congress of Cosmetic Dermatology was held Committee of the China Non-Government Medical Institutions Association the Dermatology Chronic Disease

in Wuhan. Winona showcased new research achievements at the CDA discussing cutting-edge industry- Management and Health Promotion Branch of the China Anti-aging Promoting Association and the Dermatology

academia research on sensitive skin solutions anti-aging for sensitive skin and skin brightening for sensitive Specialty Committee of the China Association for Promotion of Health Science and Technology hosted theskin with scholars in the industry. At the CDA satellite session on sensitive skin research Professor He Li from 5th China Sensitive Skin Summit on the theme “Industry-academia Opens a New Chapter Establishes Newthe First Affiliated Hospital of Kunming Medical University shared the latest research on sensitive skin barrier Standards for Sensitive Skincare” and released the China Sensitive Skin Diagnosis and Treatment Guidelines

repair revealing the complex relationship between the CLDN5 gene inflammatory factors and microRNA (2024 Edition) . As the first comprehensive clinical treatment plan for sensitive skin the guidelines were co-

regulation further confirming CLDN5 as a key target in sensitive skin. This research deepens theoretical authored by 29 dermatology experts and published in the professional dermatology journal Chinese Journal of

understanding and provides direction for developing precise repair products. Dermatovenereology providing authoritative standards for clinical diagnosis and treatment and promoting the

upgrading of diagnostic standards.Additionally we released the Winona Functional Skincare Products: Fundamental Research and Clinical

Application Essentials (Red Book 3.0) . In collaboration with authoritative official media we held an offline event

at people.cn’s Studio 1 and globally livestreamed the event on “people.cn’s WeChat Channel” reaching a wide

audience and enhancing the public’s skincare awareness setting a benchmark for industry-academia cooperation

and giving the brand new value.On the site of CDA

5th China Sensitive Skin Summit

Promote the Establishment of Industry Standards

Corporate participation in the formulation of industry standards not only highlights its technical strength

and industry status but is also a key force in driving the entire industry toward standardized development.Botanee plays an active role in the development of standards having participated in the publication of

a total of 6 national standards and 68 association standards. In 2024 we released 6 national standards

including the Plant Extract Terminology the Determination of Astaxanthin in Cosmetic Efficacy Ingredients by

High-performance Liquid Chromatography the General Technical Requirements for Skin Chips the Analysis of

the Surfactant of Sucrose Fatty Acid Ester by Liquid Chromatography the Determination of Lectins in Edible

Fungi by High-performance Liquid Chromatography and the Sensory Analysis—Methodology—Guidelines

for the Measurement of the Performance of a Quantitative Descriptive Sensory Panel. Additionally 13 group

standards were released such as the Guidelines for Evaluating the Efficacy Claims of Blue Light Protection

in Cosmetics the Guidelines for Evaluating the Skin Efficacy of Prinsepia utilis Royle Oil and the Glycine

tomentella Root Extract for Cosmetics. Furthermore Botanee currently has 7 national standards 3 industry

standards and 15 group standards under application.Through participation in standard-setting Botanee plays an important leading role in the industry driving

technological innovation encouraging enterprises to focus on raw material quality and safety strengthening

industry standardization and promoting the sustainable development concept. This has had a positive and

far-reaching impact on the overall health and sustainable development of the skincare industry.

95 9696Diversity and

Equality: Moving

04Forward Together in Unity

Botanee upholds the principle of diversity and inclusion and

is committed to creating a harmonious and inclusive work

environment. The Company strictly complies with national laws

and regulations to protect the legitimate rights and interests of its

employees. We prioritize employee care and enhance employee

well-being through diverse welfare programs. Additionally

we provide comprehensive career training and advancement

opportunities to empower employees in their professional growth.We value the health and safety of our employees and are

committed to safeguarding their well-being. Moving forward we

will continue to strive for mutual growth and forge a better future

together with our employees.Employee Rights and Care

Employee Training and Development

Employee Safety and HealthYunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Employee Rights and Care Equal Employment

Botanee based in the big health industry adheres to a talent concept of diversity and inclusion. In recruitment

Philosophy advertisements and interviews we emphasize the alignment between the position and the candidate avoid gender-

biased descriptions and resolutely refrain from setting discriminatory thresholds based on gender ethnicity educational

The Company focuses on talent development as its core promoting mutual growth between employees and the background or other factors. With the expansion of our overseas business the Company actively recruits employees

Company through a comprehensive benefits protection system open communication channels and systematic career of different nationalities and improves the management system for overseas talent. Furthermore we actively assume

development planning. We have developed a forward-looking human resources strategy continuously reserving high- social responsibilities by actively employing people with disabilities each year which ensures their employment rights and

quality talent for the Company’s various business sectors. interests.Botanee has a dynamic and youthful team with an average employee age of approximately 32.25 years as of 2024. The

Strategy Company continues to attract outstanding young talent through campus recruitment and social recruitment and has implemented the “Little Wolf Program” for customized training for young key employees.We strictly comply with laws and regulations such as the Labor Law of the People’s Republic of China Labor Contract We implement a differentiated recruitment strategy. In the factory operations field we cooperate with universities to

Law of the People’s Republic of China Law of the People’s Republic of China on Promotion of Employment Law of launch internship programs helping students accumulate practical experience. For marketing and management trainee

the People’s Republic of China on the Protection of Minors and the Provisions on the Prohibition of Using Child Labor. programs we have designed a customized recruitment and development system to help outstanding talent quickly grow

We adhere to the principle of equal employment and strictly prohibit the employment of individuals under the age of into industry elites.

16. We oppose all forms of discrimination including gender age nationality region ethnicity race religion education

background and physical condition firmly oppose any form of compulsory labor and ensure that the legitimate rights

and interests of each employee are fully protected. During the Reporting Period the Company did not encounter any

incidents of child labor or forced labor. The total number of employees is 3956

We have also developed internal communication systems to guide employees in expressing opinions and raising issues

through legal and compliant channels. We ensure that designated personnel are responsible for timely responses

respecting the rights and interests of each employee. Gender Senior management members by gender

Female employees account for Female representation in

Management Practices 76.54% senior management is 12.50%

Male employees account for Male representation in senior

23.46% management is 87.50%

In employee employment and daily operations management we strive to create a diverse inclusive and respectful

work environment. Led by the Human Resources Department the Administration Department and the Labor Union we

have established an Employee Well-being and Diversity Working Group to ensure that employees have equal promotion

opportunities and a healthy working environment and to promote gender equality age equality and cultural diversity Age Management members by

within the Company. gender

The Labor Union actively performs its democratic management duties leading negotiations on collective topics. In 2024 Employees aged 29 and below Female representation in account for 42.31% management is 53.40%

the Labor Union held an employee representative assembly to review and vote on the implementation plan for the

employee stock ownership plan ensuring that employees’ rights and interests to participate in democratic management Employees aged 30 to 40 account Male representation in for 45.63% management is 46.60%

are effectively protected.Employees aged 41 and above

account for 12.06%

Number of employees from Chinese Mainland Number of ethnic minority employees

3912357

Number of employees from Hong Kong Number of employees with disabilities

Macao Taiwan and overseas regions

4419

99 100Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Employee Communication and Feedback Channels Employee Satisfaction Survey

In terms of employee satisfaction communication we have always adhered to an open and transparent communication

mechanism ensuring that every employee’s voice is heard.Email: It is open to all employees for communication and consultation.We conduct employee satisfaction surveys every quarter and distribute the employee satisfaction survey questionnaires

Human Face-to-face talks: Employees can express their opinions and suggestions directly with dedicated to all employees through the administrative portal. In the fourth quarter of 2024 the employee satisfaction survey score

Resources

Department personnel. was 92.03%. In the current year we received 12 suggestions and feedback with issues concentrated on workplace space

sanitary environment and employee benefits.Furthermore we provide dedicated responses to all collected issues and actively formulate corresponding improvementOur official WeChat account: Information is published through the official account and a “Just measures which are included in the following year’s work plan to ensure that each improvement is implemented. BasedBetween Us” section is available for employees to provide feedback. on the feedback from the employee satisfaction survey during the Reporting Period we made a series of improvements

such as adjusting the snack box to more popular afternoon tea and focusing on healthy eating concepts by replacing

OA system: It is used for daily communication and information sharing. high-sugar and high-fat foods with low-sugar and low-fat foods.Internal

Communication Communication platform: Instant communication is available on Feishu.Platforms Employee Care

Physical mailbox: We have established a physical mailbox for employees to directly address

issues to the Chairman. We value employee well-being continuously optimize our employee welfare system and ensure that each employee

feels respected and valued by providing comprehensive care and support. The Company strictly complies with national

laws and regulations and provides statutory benefits including the five social insurances and one housing fund for all

regular employees. Additionally the Company offers the following non-statutory benefits:

We assign dedicated individuals to supervise and follow up on employee feedback to ensure

that issues are quickly resolved. Additionally to prevent discrimination or harassment within

the Company we provide relevant policy advocacy during new employee onboarding training. Non-statutory Benefit Items

Supervision

and Handling Employees can also directly report relevant issues to the Chairman through an internal

complaint email.Holiday gift benefits including “Long Service Award”: Employees

the Mid-autumn Festival and who have worked for a full year During the Reporting Period the

not Spring Festival gift packs and

are awarded anniversary gift

Company did experience any other important holiday gifts boxes and commemorative coins

serious discrimination or harassment

incidents

Annual physical check-

ups commercial insurance

supplementary medical insurance Birthday benefits

and other health benefits

During the Reporting Period Feishu

received Flexible working hours to Meal benefits: Employees

68 help employees achieve a in Shanghai can enjoy a inquiry tickets in the backend better work-life balance 20% discount at designated

restaurants while employees

with a human customer service in Kunming are provided with

resolution rate of free lunch in the canteen on

Employer liability insurance weekdays

95.59% and accident insurance

101 102Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Botanee creates a female-friendly workplace and has implemented a series of “Unite and Move Forward Seize Opportunities and Act” series corporate

welfare and care measures for female employees especially those in pregnancy Case cultural activities

and lactation. For example we have set up well-equipped nursing rooms in the

Company; special attention has been given to the needs of women during specificperiods in the design of tea rooms restrooms and other areas; and we have In 2024 Botanee launched quarterly corporate cultural activities under theme “Unite and Move Forward SeizeAs of the end of theincreased the number of women’s restrooms in company areas. Additionally we Reporting Period our Winona Opportunities and Act”:

encourage and practice the concept of “women helping women” through regular Fund has assisted a total of

small seminars where women can discuss the pressures and challenges they face Q1: “BTNers’ Voices”: Employee feedback was collected through surveys and badge blind box rewards were

in both the workplace and their personal lives and experienced female employees 41 offered. person-times for can share their career insights helping to build a supportive and growth-oriented

employees and their families Q2: “BTN Cultural Creative Desktop”: Exclusive desktop designs were released to visually present the cultural environment. Furthermore we offer female employees a variety of leave benefits philosophy.including maternity leave nursing leave childcare leave miscarriage leave and with a cumulative assistance

prenatal check-up leave. amount of Q3: “Our Stories”: The Grateful for “Ni” thank-you card activity used images and text to convey gratitude and the

Our Stories online course was released to deepen employees’ understanding of corporate culture.We have established an employee welfare fund that provides financial assistance CNY million

to employees in special circumstances such as hospitalization due to illness 1.29 Q4: “Following Role Models”: Employees nominated others or themselves to become corporate cultural

marriage and childbirth and the death of immediate family members. Additionally ambassadors.we have created a charitable platform and established the “Winona Fund”. Since

its establishment in 2015 the fund has continuously supported employees and

their families facing difficulties implementing the human-oriented philosophy of“employees contributing to the Company’s success and the Company providingsupport and care to employees”.Employee Activities

Botanee is committed to creating a vibrant caring and enjoyable work environment Corporate culture badge blind boxes Grateful for “Ni” thank-you cards Group IP

for its employees. We have set up a multifunctional employee activity room in the

office area and established diverse clubs regularly organizing various activities

to meet employees’ interests and hobbies. We also place high importance on

employees’ mental health with a professional counseling room available to provide

one-on-one consultations helping employees relieve work and life stress. In addition

we run grassroots Communist Party of China (CPC) organizations labor unions

and women’s federations fully leveraging the exemplary role of CPC members Case Traditional health wisdom safeguards employee health

and integrating Party work with our corporate culture to safeguard the legitimate

interests of employees.To fully protect employees’ health the Company continued to organize a series of traditional Chinese medicineIn terms of sports activities we have established employee clubs such as the (TCM) health activities in 2024. During the hot summer we organized the “Summer Health Preservation DelicateBadminton Club and the Group Lesson Club hosting multiple events throughout Worker Rescue Plan” providing TCM pulse-taking and oral health checks to help employees stay healthy during the

the year. These activities not only enrich employees’ leisure lives but also enhance summer. In August and November we held week-long TCM treatment activities inviting a professional TCM team

communication and interaction among employees. to the office to provide pulse diagnosis and physical therapy services which were widely welcomed by employees.The summer health activity in July TCM pulse-taking and physical The TCM massage activity in

therapy activities in August November

103 104Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Case Celebrating International Women’s Day: Honoring the strength of working women Case BTN Running Club organizes regular health run activitiesOn March 8 2024 Botanee launched a special campaign for International Women's Day titled “Healthy Beauty The Group established the BTN Running ClubComes from Her” and released the short film Factory Heroines – Chinese Female Workers in the New Era paying which has held regular activities for nearly

tribute to every hardworking woman in the modern industrial age. Winona in collaboration with the Botanee three years. Members grew from 46 people

Charity Fund and the Changning District Representative Office of the Shanghai Charity Foundation jointly at the beginning of 2024 to 116 by the end

initiated a public welfare program — the “Winona Women Care Alliance” dedicated to protecting the rights of of the current year. Over 500 person-times

female workers and promoting skin health for women in the workplace. have participated in the monthly check-in

activities of the running club either regularly or

sporadically.On July 24 2024 the club held its annual health

run at the Caohai Scenic Area in Kunming

where members participated in different race

categories including 5km 10km and 24km

depending on their personal running ability.Afterwards the team conducted the “724 Self-care” themed public welfare promotion and

[Scan the QR code educational activity at the Houhai Scenic Area

to watch Factory actively promoting health concepts.Heroines]

Women’s Day “Factory Sisters” video focusing on the female workers in

different roles at the Botanee factory

Employee Training and Development

Philosophy

The Company has established a comprehensive talent development system that stimulates

employees’ enthusiasm for learning through diversified training programs supporting their

career development. We adhere to a fair and just promotion mechanism identify potential

talent through regular performance evaluations and encourage employees to participate

in cross-departmental projects to expand their career development opportunities thus

achieving mutual growth for both the Company and its employees.Strategy

We have formulated the Botanee Training Management System which clarifies

the functions and responsibilities related to training including the establishment

implementation and effectiveness evaluation of training plans as well as training

budget management. This ensures that all employees have access to systematic training

and development opportunities. Furthermore we place importance on professional

qualifications certification and maintain proper documentation for the certification of

intermediate and senior titles within the R&D system.

105 106Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Management Practices

Botanee’s Employee Training Categories

Employee Training Day 1 Training Day 30 Training

We firmly believe that the growth of our employees is crucial for driving the Company’s sustainable development.Therefore we have established a comprehensive employee training system to enhance their skills and promote their

professional development. New employee

training

Botanee Talent Development System Corporate Culture Business Skills Botanee Little Wolf Program Year 1

Product Knowledge Training Training Little Wolf Program Year 2

BTN Lectures General Regular Botanee New Apollo Plan

Management Skills Life Skills training Academy Elite Program

Corporate culture and values

Improvement of general capabilities

and management capabilities Professional ability improvement Orientation project The Botanee Academy is the Company’s core platform for talent development. Since its establishment in 2013 it has

met the growth needs of employees at different stages of development through a three-tier talent development system.Every spring the Academy selects outstanding employees through a rigorous evaluation process to enter a one-year

Advanced training program. This program serves as an important replenishment channel for the Company’s talent pool while also

management series: providing selected employees with opportunities for promotion or advancement.Strategy formulation

Directors and decomposition Online Offline Supply R&D Middleground Function

& senior operations management Elite channels channels chain

experts breakthroughs culture program Botanee Academy’s Talent Development Programs

and vision

Elementary Position 1 Position 1 Position 1 Position 1 Position 1

management series:

Cognition planning

performance Little Wolf program: execution communication and coordination and self-leadership

Managers & coaching motivation New Apollo New Apollo program: team leadership innovation and transformation power

experts staff selection and Position 2 Position 2 Position 2 Position 2 Position 2

management innovation Elite program: strategic decision-making innovation and transformation power

and breakthrough

Advanced series:

Cognition cooperation

tasks and problem Little Wolf

solving Year 2 Post 3 Post 3 Post 3 Post 3 Post 3 Senior management officers

Newcomers to the

Professionals workplace: Excellent leadership

Culture mentality and teamwork

thinking and

performance Little Wolf Post 4 Post 4 Post 4 Post 4 Post 4 Middle managers

improvement tools Year 1

Help yourself and

help others

Year 1: fresh graduates

New employee training Year 2: senior staff

Knowledge management: key position standards learning map course database lecturer database and supplier database Set sail with our tips to

usher in a new career stage

Systems: EHR management system and Botanee E-Learning

Our employee training programs are divided into three categories: New employee training regular training (courses In addition we regularly organize professional business training sessions and invite external experts to conduct courses

provided through the E-Learning platform) and the Botanee Academy forming a multi-level system that spans from to enhance employees’ professional skills. In the current year the Botanee Academy added new training courses covering

regular training for new employees to in-depth development for senior talent. various aspects such as management skills and industry knowledge.

107108

Specialized training camps

Plan T

Knowledge map construction

Management empowerment workshop

Team integration workshopYunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Case "Fuel the Summer Forge the Future — Together as We" training camp

Leadership Based on the Botanee Academy Leadership Modeldevelopment this course is tailored to employees at different In July 2024 the Botanee Academy organized an annual joint and tiered training camp in Kunming themed “Fuelcourse levels focusing on leadership training. During the Reporting Period the the Summer Forge the Future — Together as We”. During the joint training phase participants deeply studied the

Company held a total of Company’s strategy business and culture and conducted topic discussions around theme. The tiered training

2286 focused on leadership development for participants at different levels providing targeted training based on their training specific needs.

A joint training program that integrates the Little sessions The training camps included team mission competitions and team-building activities at the central factory. Through

Wolf Program (Year 1 and 2) and the New Apollo with cumulative training hours business case studies participants cultivated strategic thinking and proposal development skills. The overall Three-program Program. Under the guidance of instructors of project received high recognition from participants with a satisfaction rate of 9.15 points (on a 10-point scale).integration employees will deeply study the Company’s

strategy business and corporate culture. 364188

The average training hours per

employee were

The Future Technology Leaders: IT All-round 92.06

Digital Training course is offered focusing on the sharing

transformation and application of emerging technologies helping with a training coverage rate of

course employees stay at the forefront of technology and

driving the Company’s digital transformation. 100%

Botanee Academy training camp

Through comprehensive training measures we provide employees with a solid platform for growth and development.Employee Development Case “Corporate Theater Workshop” Course

Botanee has established three main career development pathways: management track professional track and support The Company offered a unique “Corporate Theater Workshop” course to core employees and management in the

track providing employees with clear growth paths. The management track offers a platform for employees who wish to R&D system focusing on cross-departmental communication and collaboration. Through case exercises the course

focus on team management and nurtures exceptional managers. The professional track encourages employees to delve helped participants identify and resolve common issues in cross-departmental communication master conflict

into technical fields and become experts through continuous training and learning. The support track assists employees in resolution techniques and enhance team collaboration effectiveness. The course received high recognition from

achieving three levels of business growth in their respective positions. participants with a satisfaction rate of 9.42 points (on a 10-point scale).In 2024 the Company invited external professional consulting agencies to improve the job grading system referring

to industry data and further expanding the development space for the professional track. We have refined thecomprehensive compensation system based on “job grading salary determined by level job and salary alignment andalignment between job and salary changes” and incorporated multiple dimensions such as performance evaluation

results Botanee Academy training records self-initiated academic advancement professional qualifications and

corporate cultural alignment into the assessment system.Botanee has established a comprehensive compensation governance system with the Remuneration Committee

responsible for developing and evaluating the compensation plan for senior managers. The compensation plan for

directors shall be reviewed by the Board of Directors and then approved by the General Meeting of Shareholders while

the compensation plan for senior managers shall be directly approved by the Board of Directors ensuring fairness and

transparency in compensation policies.To enhance the cohesion of core talent the Company has launched an employee stock ownership plan repurchasing “Corporate Theater Workshop” course

company shares through a special incentive fund and allocating stock to management and key employees. This plan

links the stock allocation of the beneficiaries directly to the Company’s performance targets effectively boosting the

motivation of the management team.

109 110Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Employee Safety and Health Management Practices

Production Safety

Philosophy

We adhere to a safety management approach that integrates both internal and external efforts continuously

Botanee upholds the concept of “prevention first safety foremost and joyful sharing” placing employee safety and improving production safety management through scientific and refined hazard identification and rectification

health at the core of its operations. We have established a comprehensive production safety management system while measures.also following the three-tier principle of occupational disease prevention and control with the primary level as the focus

secondary level as support and tertiary level as a safety net for occupational health. This multi-dimensional approach Internal safety management

ensures the occupational health of employees and continues to create a safe and healthy working environment.In the current year we updated and improved over 30 safety management systems

Strategy covering key areas such as production safety responsibility system training and

education hazard identification emergency rescue hazardous materials control

and constructer management. In the current year the factory implemented the

We strictly comply with health and safety laws and regulations such as the System improvement “dual prevention mechanism” clearly defining safety responsibilities and subordinate

Work Safety Law of the People’s Republic of China the Fire Protection Law of relationships and effectively identifying and controlling various safety hazards.the People’s Republic of China and Law of the People's Republic of China on

the Prevention and Control of Occupational Diseases. We have obtained ISO

45001 certification on occupational health and safety management systems.

We have established a dedicated EHS department and assigned dedicated

personnel for key safety areas such as fire safety hazardous operations Led by leaders we conduct regular weekly and monthly inspections as well as targeted

specialized equipment and related party management. These personnel are comprehensive inspections to thoroughly review production safety conditions. During the

responsible for streamlining management processes and ensuring smooth Reporting Period a total of over 887 risk items were identified and rectification measures

implementation of daily production safety tasks. Self-inspection were implemented.We have developed management manuals including the Compilation of

Production Safety Laws and Regulations and the Compilation of Occupational

Health Laws and Regulations which are regularly revised. Through the

management manuals we communicate safety- and health-related laws and ISO 45001 Certification on

regulations as well as the Company’s objectives and management policies Occupational Health and We utilize the “Jiandaoyun” mini program to digitally analyze production safety data and

while clearly defining the safety management responsibilities and work Safety Management System improve the efficiency of rectifying safety hazards. We also conduct digital management

processes for relevant positions. Digital management of manufacturing through MES MOM QMS LIMS and BI systems.We ensure the allocation of necessary resources to guarantee production

safety. During the Reporting Period we invested over CNY 900000 in special

funds to upgrade safety facilities conduct occupational safety training and

purchase necessary protective equipment. External safety inspections

We actively cooperated with external inspections to ensure the authenticity and

transparency of safety management performance.Government inspections

We engaged professional organizations to conduct Job Safety Analysis promptly

identifying potential safety risks and developing corresponding mitigation measures.Third-party evaluation

Occupational health and safety training for new employees AED training

111 112Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Case Fire drills at two factories

In 2024 the Company strengthened safety emergency management in

multiple dimensions:

The central factory organized two fire drills covering areas such as

warehouses engineering laboratories and production with over 300

Safety culture building participants. The Qingpu factory collaborated with the local fire brigade Cumulative number of participants

to conduct fire safety training and emergency drills and formulated the in the drills: More than

Fire Drill Plan Report. Meanwhile 23 special operation personnel passed

Specialized safety knowledge training was provided to new employees and according to certification exams achieving a 100% pass rate. 300

the needs of different positions covering areas such as fire safety electrical safety and

special equipment. During the Reporting Period we organized 58 safety training sessions

Occupational safety with 1038 participants.training

During important moments such as “Safety Awareness Month” and “November 9Fire Prevention Day” we organize activities such as safety knowledge competitions

Safety-themed forklift operation skill competitions and fire emergency drills. These activities enhance

activities employees’ ability to respond to emergencies.The Qingpu factory’s fire drill

As of the end of the Reporting Period no known major work-related injuries or fatalities occurred in the Company.As of the end of the Reporting Period we did not receive any fines or undergo any shutdowns due to production Case Botanee held fun activities focusing on employee workplace safety

safety issues.During the Reporting Period we held fun activities focusing on employee workplace safety such as team

Occupational Health collaboration games and safety knowledge competitions to improve employees’ teamwork awareness enhance

department cohesion and jointly build a safety workplace culture.The Company places great emphasis on employees’ occupational health. We provide free annual physical checkups for

all employees every year and assist them in obtaining health certificates within the production system including the

factory. We also provide employees with dual protection through health insurance and employment injury insurance.In the current year the factory conducted occupational disease hazard factor testing (e.g. dust and noise) and strictly

monitored the working environment.The Company in the current year organized annual employee physical checkups from August to November and held a

physical checkup report interpretation session in December to help employees understand their health status and provide

channels for consultation and problem-solving. The Company also conducted occupational health training for new

employees and guided the proper use of protective equipment. For positions that may face occupational health risks we

clearly outline occupational hazard information in the labor contract and provide full-cycle occupational health inspection

services before during and after employment.We continue to improve our occupational health management system and during the Reporting Period we completed

the pre-evaluation of occupational health within the Group and advanced the evaluation and acceptance work. Fun activities focusing on employee workplace safety

113 114Gratitude &

Goodwill: Co-

05Creating and Sharing Value

While focusing on its long-term development Botanee continues

to deeply engage in public welfare and actively assume social

responsibility. We remain committed to the core values of being

grateful to society and caring for the public. Upholding the

mission of creating a healthy and beautiful life for humanity we

are dedicated to integrating corporate development with social

welfare. We carry out a series of activities to enhance health

accessibility support rural education and promote the preservation

of intangible cultural heritage. Through our charity influence we

take action to give back to society.Intangible Cultural Heritage Protection

Health Accessibility

Rural Revitalization

Public Welfare Influence2024 Sustainability & Environmental Social and Governance (ESG) Report

Intangible Cultural Heritage Protection

Philosophy

Botanee recognizes that intangible cultural heritage is a national treasure and a bridge connecting the past and the

future. Through innovative marketing strategies we actively integrate intangible cultural heritage into our products

conduct multi-channel publicity campaigns and participate in the protection and inheritance of intangible cultural

The Botanee Charity Funds include the Botanee Charity Fund jointly established by Botanee and the Yunnan heritage. We aim to raise public awareness and respect for the value of intangible cultural heritage. Furthermore we

Youth Development Foundation the Red Cross Winona Charity Fund jointly established by Botanee and recognize that education is key to the inheritance of intangible cultural heritage. Through the Hope Primary School

the Yunnan Red Cross Foundation and the Shanghai Charity Foundation Botanee Special Fund jointly project we strengthen the promotion of intangible cultural heritage building a bridge for the inheritance of intangible

established by Shanghai Botanee and the Shanghai Charity Foundation. cultural heritage and creating a bright future together.Botanee Charity Fund Red Cross Winona Charity Fund Baby Project Management Practices

It is the first charity fund under The fund undertakes continuous The project focuses on issues

Yunnan’s Hope Project that public welfare donations from the such as youth development Intangible Cultural Heritage in Schools

focuses on env i ronmenta l “Winona Sunshine Program” to mental health education and

protection (including biodiversity support rural primary care carry rural education revitalization. To bring Intangible cultural heritage (ICH) into the classroom Botanee is committed to building a bridge for students to

conservat ion) by youths. I t out public welfare screenings for It constantly provides new understand and explore ethnic traditional culture inspiring them to develop a love for their own culture from an early

provides continuous support to skin diseases help those with skin help and sows new hope for age. In 2024 the Botanee Charity Fund launched ICH inheritance projects in Dali and Diqing based on its previous ICH

youths in Yunnan in education cancer construct the Botanee teenagers and children. inheritance project in Lijiang. A total of CNY 580000 was donated to support youth in Lijiang Dali and Diqing in engaging

e n t e r p r i s e d e v e l o p m e n t First Aid Station Project conduct with ICH inheritance public welfare projects. The projects benefited six primary schools one special education school

biodiversity conservation etc. emergency disaster relief and and a youth palace. By the end of the Reporting Period the Botanee Charity Fund had donated a total of CNY 1.2 million

and contributes to environmental more. to this project infusing youthful vitality into the inheritance of intangible cultural heritage with 4126 young people

protection. participating.Key Performance Indicators The Dali ICH inheritance project relies on ICH

inheritors such as the Dali Xizhou Heritage of

Artifact Folk Art Center (Jiama Print Art Exhibition)

In 2024 Botanee actively fulfilled its social responsibility by supporting 38 public welfare Dragon Dance Lanxu Tie-Dye Bai Ethnic Da Ben

projects benefiting over 50000 youths and teenagers. The total amount of donated funds Qu and Zhongheyi Sanxian Inheritance Institute.amounted to CNY 21.32 million. A total of 67 volunteers participated in public welfare activities Combining Xizhou’s unique natural cultural

contributing a total of 2482 hours of volunteer service. From 2021 to December 31 2024 we heritage and ethnic cultural traditions ICH classes

invested a total of CNY 68.24 million in public welfare. were held at the Xizhou Central Primary School

Sili Primary School and Shacun Primary School

in Xizhou Town. A total of 338 students attended Sili Primary School - Printmaking Xizhou Town Central Primary experience School - Tie-dyeing learning

the Jia Ma and printmaking class; 40 students

participated in the Da Benqu class; 40 students

in the dragon dance class; 201 students in the tie-

dyeing class.At the themed promotion event for the 9th "Charity

Day of China" organized by the Department of Civil Additionally we organized a “Rural Revitalization”

Affairs of Yunnan Province Botanee was awarded Bai ethnic three-string summer class at the

the title of “Donor Enterprise” at the first "Yunling Zhonghe Yi Three-string Inheritance Institute

Philanthropy Award". enrolling 20 students and providing 60 lessons on

three-string playing and Da Benqu. The course

also offered experiential classes on Bai ethnic tie- Shacun Primary School - Dragon Sanxian learning music course

dyeing pottery making Bai three-course tea and dance learning

hand-rolled rice dough giving students a hands-

Awarded the first "Yunling Philanthropy Award" on experience with intangible cultural heritage.The inheritors shared their skills opening the door

to the treasure trove of traditional culture for the

students.

117 118Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Intangible Cultural Heritage Dissemination and Product Integration ICH Cultural Event in France

Botanee focuses on the dissemination of intangible cultural heritage such as Jia Ma Yi Embroidery and weaving and In October 2024 Botanee in collaboration

promotes its integration into product design striving to expand the influence of intangible cultural heritage to a wider with Chinese women dressed in distinctive

audience. Naxi ethnic clothing from Yunnan and Wi-

nona-branded customized Yi embroidery

mamianqun brought the aesthetics of

Bai Ethnic Jia Ma intangible cultural heritage to the fashion-

able streets of Paris France. Through Bo-

In Bai culture in Yunnan Jia Ma is a messenger of blessings tanee’s communication power we hope to

where people carve their wishes onto wooden blocks and print use this international event as a bridge tothem onto paper as Jia Ma to convey their heartfelt desires. connect the beautiful aspiration that “Heri-At the beginning of 2024 in promoting Yunnan’s intangible tage Knows No Borders”.cultural heritage Winona launched a customized New Yeargift box themed around Jia Ma with the slogan “Good Gifts forHealing Dreams Come True”. This initiative brings this unique

intangible heritage art into the spotlight in a new and visible

way showcasing its rich cultural value.In 2024 Botanee invested CNY 200000 in the Dali intangible [Scan the QR code to

cultural heritage inheritance project incorporating Jia Ma watch the Dreams Come

woodblock printing into the intangible cultural heritage classes True]

at the three primary schools and invited Jia Ma master

Zhang Renhua to teach demonstrating our commitment to

supporting the protection of Jia Ma intangible heritage.Chuxiong Yi Embroidery

To support the development of disabled Yi ethnic embroiderers

we established the “Winona Women Care Alliance” public

welfare project on International Women’s Day. On the 34th

National Day for Assisting Disabled People (May 17) a

public welfare event was held at the Colorful Yi Embroidery

Workshop in Nanhua County Chuxiong Prefecture Yunnan.During the event the Botanee Charity Fund donated materials

worth CNY 1.26 million to the local community providing

skin health consultations to 118 embroiderers (including 108

disabled embroiderers) safeguarding their skin health and

helping to breathe new life into the intangible cultural heritage [Scan the QR code to

of Yi embroidery. watch the Impressive Yi

Embroidery]

A special heritage gift box inspired by Yunnan's traditional Calling for support and care for embroiderers

intangible cultural heritage of Chuxiong Yi embroidery with disabilities

119 120Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Naxi Weaving Health Accessibility

During the 2024 Qixi Festival Winona continued to

showcase a profound understanding of the core values of Philosophytraditional festivals using Yunnan weaving as the “MagpieBridge” to convey the brand’s best wishes. Weaving is a

unique lifestyle of women in Yunnan’s ethnic minorities Leveraging its professional expertise and

and it can be seen everywhere in the local ancient towns industry insights Botanee is dedicated to

and mountain fields. For Qixi we launched a thematic raising public awareness of skin health through

video featuring the weaver women showing the spirit of philanthropic initiatives. We consider this our

the new generation who continue the intangible cultural [Scan the QR code to watch long-term social responsibility and promote

heritage and the charm of laboring women. The video The Gifts of Weavers] health concepts and provide professional

also highlighted the woven gifts symbolizing the beautiful services. Through continuous promotional and

blessings that will accompany the viewers on their life’s educational activities we disseminate scientific

journey. and rational knowledge on skincare provide

on-site consultations professional advice and

Additionally Botanee focuses on Winona’s female care and interactive platforms for medical professionals

public welfare project the “Winona Women Care Alliance” and patients. By taking concrete actions we

supporting the fair development rights of Yunnan weavers. help consumers address their skin concerns

Through the Botanee Charity Fund we assist them in guide them to develop good skincare habits

protecting skin health while also promoting their works and jointly safeguard and enhance the health

advancing the lifestyle of Yunnan’s minority women and and beauty of their skin.offering skill support to help more people learn about the

intangible cultural heritage of Yunnan weaving.Management Practices

Supporting the promotion of weaving artifact

“Winona Sunshine Program” Philanthropic Event

Collaborative Promotion of Intangible Cultural Heritage Inheritance The “Winona Sunshine Program” is a sunscreen-themed public welfare initiative launched by Winona in 2016. The

program primarily focuses on spreading sunscreen knowledge and providing support for the treatment of sun-induced

To drive the quality improvement of the Mosuo Handwoven Textile Workshop in Ninglang County Lijiang City the Botanee skin diseases. It helps establish the awareness of scientific sun protection detects skin damage issues early and offers

Charity Fund provided over CNY 15000 in funding for the project. The project designs and manufactures a variety of professional guidance and advice. The program is held at least once a year and has been ongoing for 9 years with a

handcrafted products diversifying the Mosuo handwoven textiles and helping them better integrate into the cultural total of 11 public welfare activities held. In 2024 the “Winona Sunshine Program” took the theme “You Are Brighter Thantourism market of Lijiang’s Lugu Lake. It also creates more employment opportunities for women in mountainous areas the Sunshine” and carried out public welfare activities through a combination of free medical consultations science

involving over 200 women from four minority ethnic groups in the hot spring region in handwoven textile work 45 of popularization lectures donations and visits promoting the concept of scientific skincare.whom are from households that have been lifted out of poverty. This has effectively integrated handwoven textiles with

the rural revitalization of Wenquan Village ensuring the continuous inheritance of intangible cultural heritage.Bring Services to More Target Groups Through Voluntary Pharmacy Consultations

The “Winona Sunshine Program” continued

to enter professional pharmacy channels

to enhance its charity influence through

retail pharmacies. We invited dermatology

experts to provide on-site free consultations

in collaboration with pharmacies allowing

customers to receive expert diagnosis and

scientific skincare guidance while improving

the professional skills of pharmacy staff.Furthermore we invited experts to participate

in clinical training and philanthropic clinics held

at grassroots hospitals. We encouraged doctors

to participate in the "May 25 Skincare Day"

event and provided samples to consumers to

effectively reach experts and consumer groups

Women Holding Winona Weaving Gift Boxes at the Aqi Duzhima Mosuo Intangible Cultural Heritage Museum in Ninglang County with our R&D results and product innovations. Free consultation offered by “Winona Sunshine Program”

121 122Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

The “Winona Sunshine Program” Supports Northern Xinjiang Botanee First Aid Station Project

The Red Cross Winona Charity Fund implemented the Botanee First Aid

Over the past 9 years Winona has never stopped measuring vast lands with its Station Project setting up first aid stations in rural schools without medicalfeet from Inner Mongolia to Qinghai from Yunnan to Tibet. The “Winona Sunshine facilities. The stations are equipped with relevant topical first aid supplies andProgram” has promoted the development of the skin health ecosystem in China medications. Administrators are trained and emergency first aid knowledge

by conducting free medical consultations and science popularization lectures is disseminated to enhance schools’ emergency response capabilities.distributing gift packs making donations and visiting areas with intense ultraviolet

radiation. In Altay Xinjiang where the annual sunshine duration exceeds 3000 During the Reporting Period we Due to the large number of tourists and the steep rugged terrain of Haba

hours the strong ultraviolet radiation has affected the local people’s skin health distributed a total of Snow Mountain in order to prevent tourists or villagers from experiencing

to some extent with actinic dermatitis being a common skin issue in the region. oxygen deficiency altitude sickness or missing the critical emergency

Botanee has deeply engaged with the local community investigated their sun 500 gift packs in areas with response time during their hike Botanee established a First Aid Station in

protection concepts and further popularized knowledge about light-induced skin Haba Village in 2024. The station is equipped with comprehensive emergency Unveiling Ceremony of the Botanee First

damage and promoted scientific skincare and proper sun protection practices. intense ultraviolet radiation rescue equipment to ensure the safety of tourists and local residents. The Aid Station in Haba Village Sanba Naxi Township Shangri-La City

In addition during the public welfare program we held three free medical with a donation amount reaching project funding and equipment expenditure totaled over CNY 230000

consultation events in Altay City the Keledieneng and Qibaerxilike Villages 150000 directly benefiting more than 2000 villagers and indirectly covering nearly Habahe County. We provided professional thoughtful skin health services to local CNY 10000 tourists to Haba Snow Mountain.residents and donated medically-certified skincare products to them. We also

showed deep concern for children visited the Qibaerxilike Village Kindergarten As of December 2024 we have established

where we carefully prepared Winona Baby skincare gift packs for the children 169 Botanee First Aid Stations across 24

conveying the power of health and love through our actions and hoping that

children also have healthy and delicate skin as they grow. counties (cities/districts) in 10 prefectures (cities) serving 169 schools (communities)

including 156 schools and 13 communities. A total of 112012

students teachers and community members have directly benefited from the project.Botanee Hope Public Baths

We have noticed that some rural schools face the problem of limited bathing facilities. To address the challenges posed

Promote sun protection knowledge to children 2024 “Winona Sunshine Program” by inadequate sanitary conditions and the difficulty of bathing and to respond to the call for rural education support

the Botanee Charity Fund has been working to help rural schools in need by constructing Hope Public Baths and other

auxiliary facilities.Atopic Dermatitis (AD) Support Project Shangri-La City Diqing Prefecture located in the high-altitude area of northwest Yunnan Province has a unique geographical environment and some boarding schools in the area face the issue of insufficient bathing facilities. In 2024

for Children the Botanee Charity Fund donated a total of CNY 460000 to support the construction of four “Botanee Hope Public Bath”

at the following schools: Baishuitai Primary School in Sanba Township Shangri-La City Nixi Township Primary School in

Botanee continues to focus on the skin health of children. Shangri-La City Shangri-La Special Education School and Xinhua Primary School at Xinhua Center School in Pingbian

Botanee and its subsidiary brand Winona Baby actively County Honghe Prefecture. These initiatives benefited a total of 1749 students. Additionally Botanee Group volunteers

respond to the national call of the “Healthy China 2030” presented carefully prepared Botanee Winona baby care products to the students and conducted public health education

Plan Outline focusing on the baby and toddler skincare field mini-classes as well as experiential courses on intangible cultural heritage such as “Black Pottery” “Tibetan Embroidery”

and supporting families with children suffering from atopic and baking.Donation of Winona Baby professional skincare

dermatitis (AD). products for infants and children

On June 26 2024 Winona Baby sponsored the Skincare

House’s eczema treatment series activities. The event

included AD science popularization and patient education

and offered in-depth analysis of key breakthroughs in AD

treatment. It emphasized the crucial role of moisturizing

lotions in the long-term treatment of AD demonstrated

and promoted the proper use of moisturizing lotions while

donating soothing cream on-site. Additionally professional

safe skincare products were distributed to children with AD

contributing to the healthy development of children’s skin. On-site demonstration of the correct usage of Botanee Hope Public Bath in Shangri-La City Diqing Prefecture Thank-you Letters written by children

moisturizing lotions

123 124Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Our Hope Public Bath project

continues to make progress: Rural Revitalization

2021 Philosophy

Donated CNY 500000 to bui ld 3 Botanee adheres to a sustainable development strategy

Hope Public Baths in Yimen County and consistently focuses on the long-term development of

and Eshan County Yuxi City Yunnan rural areas. We work closely with local governments social

Province organizations and other partners and respect the wishes

2022 and needs of local residents. By building educational facilities Volunteers with the children

providing material donations and offering other forms of

Donated CNY 835766 to bui ld 8 support we aim to help rural communities improve their

Hope Public Baths in Xichou County education and living conditions and advance overall long-term

Wenshan Prefecture rural revitalization.

2023 Management Practices

Donated CNY 500000 to bui ld 5

Hope Public Baths in Pingbian County Visit Left-behind Children in Rural Areas “Children’s Companion Moms”

Honghe Prefecture To continue supporting left-behind children the Botanee playing with the childrenCharity Fund donated CNY 200000 to pilot 10 “Botanee

2024 Hope Harbors” public welfare projects in Changning County

Baoshan City. The goal of these “Hope Harbors” is to raise

Donated CNY 460000 to build 3 Hope awareness about left-behind children and ensure a safe and

Public Baths in Shangri-La City Diqing joyful childhood for those in the mountains. In mid-August

Prefecture and 1 Hope Public Bath 2024 Botanee Group’s volunteer team visited 10 different

at Xinhua Central School in Pingbian villages and communities in Changning and met with the left-

Botanee Hope High School

County Honghe Prefecture behind children participating in the “Hope Harbor” project. The

first batch of “Hope Harbor” project pilots established service The “Botanee Hope High School” was established in July 2021 and implemented at Donglu High School in Huize Countyhours of “10 hours on weekends all day during summer and Yunnan Province. Over the past three years Botanee has continuously supported 150 high school students across three As of December 31 2024 the Hopewinter holidays and other times open as needed” effectively cohorts. These students receive a monthly subsidy of CNY 750 during their high school years until they graduate. In Public Bath project had accumulated

filling the “gap period” for left-behind children during 2024 the supported students traveled to Kunming and Lijiang for a five-day summer study program titled “Safeguardingdonations of over CNY 2.29 weekends and school holidays. Intangible Heritage: Living in Harmony with Nature”.Since the implementation of the “Hope Harbor” project In 2024 the first group of excellent students from the Hope High School officially graduated and the graduation

million constructing 20 Hope we have regularly carried out services such as family ceremony was held at Donglu High School in Huize County Yunnan Province. Representatives from Botanee’s volunteers

Public Baths and benefiting more companionship emotional care self-care education and red the Yunnan Youth Development Foundation the Youth League Huize County Committee the Huize County Educationeducation focusing on issues such as “absence of parents and Sports Bureau and the 150 students from three cohorts of Botanee Hope High School along with some teachersthan 6000 teachers and lack of family affection and lack of emotional protection”. The attended the event. All 50 students from the 2024 cohort of the Botanee Hope High School achieved excellent results

project has formed a complete public welfare model. To date admitted to Tier-1 universities. Botanee awarded the “Love and Dream University Scholarships” to 10 outstanding

students. we have conducted 27 themed activities and supported over graduates and held a special graduation-season film screening and graduation yearbook distribution for the students to

700 left-behind children. In the future Botanee will continue encourage them to bravely embrace new challenges and explore endless possibilities on their educational journey.

to unite social forces and collaborate with more kind-hearted

individuals to build “Hope Harbor” and help more left-behind

children grow up healthy and happy.We have conducted

27 “Hope Harbor” themed activities 2024 "Botanee Hope High School Class" graduation “Safeguarding Intangible Heritage: Living in Harmony withceremony Nature” Summer Study Program

125 126Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Charity Influence

Philosophy

Botanee integrates social responsibility into its corporate strategy is committed to conducting business for the

greater good and giving back to society thus achieving sustainable development for the Company. Botanee

continues to promote the Hope Project in the new era partnering with public welfare organizations to engage

in community building actively donating money and materials expanding the beneficiary groups and forms of

public welfare activities and widely conducting all-round public welfare work such as educational support and

assistance to promote the development of education. We seize opportunities fulfill our responsibilities and

continuously seek greater impact expanding the scale and influence of our public welfare projects to build a

better society.Support for Underprivileged Students

Management Practices

To assist low-income families and outstanding students in Diqing Prefecture in August 2024 we launched the

“Love and Dream University” public welfare activity for the 2024 cohort. Representatives from the Yunnan

Educational Support and Nurturing Youth Development Foundation and Botanee visited Shangri-La City and Deqin County to conduct home visits

to 8 students who had been or were candidates for funding. We further understood the students’ family

circumstances and living environments and actively promoted national education support policies encouraging

To help Kunming Medical University improve the quality of talent them to be confident independent and resilient in overcoming challenges and pursuing their academic dreams.cultivation and implement the fundamental task of educating

people Botanee once again donated CNY 1 mill ion to the Since 2021 Botanee has donated over CNY 540000

Yunnan Youth Development Foundation in 2024 to encourage through the Yunnan Youth Development Foundation

undergraduates to pursue further education for the graduate to support underprivileged students. We remain

scholarship program at Kunming Medical University. Since its Botanee once again donated committed to caring for disadvantaged youth by

inception the program has funded 2583 graduate students with a 1 addressing their practical challenges bringing hope total donation of CNY 2.583 million to graduate students. CNY million to the Yunnan to more impoverished families illuminating the

path to education for underprivileged students and

Youth Development Foundation safeguarding their academic dreams.funding

2583 graduate Home visits to underprivileged students awaiting funding in Diqing Prefecture

students

with a total donation of

Special Assistance for Skin Cancer

CNY 2.583 million

The Red Cross Winona Charity Fund provides disease relief and product care for severe patients with

photodamaged skin conditions identified during free medical screenings specifically focusing on skin cancer. In

2024 the Red Cross Winona Charity Fund assisted three patients within the skin cancer program completing the

public welfare loop.

127 128Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Military Care and Support

On August 1 2024 Botanee carried out an “August 1st” Military Support

Visit to extend holiday greetings and high respect to the officers and

soldiers of a certain air force unit in Xinjiang. During the visit Botanee Youth Volunteer Care

volunteers watched a national defense education documentary and

donated Winona care supplies worth CNY 3.7 million to four military

units honoring the soldiers of the People’s Liberation Army who fight in In April 2024 the Botanee Charity Fund in collaboration with the Yunnan Youth Development Foundation

harsh conditions. Botanee has continuously supported border defense the Publicity Department of the CPC Xishuangbanna Prefecture Committee the Communist Youth League

soldiers’ skin care for four consecutive years demonstrating our of Xishuangbanna Prefecture the Xishuangbanna Vocational and Technical College and the Dai Medicinecorporate philosophy of patriotism and military support while actively College of Western Yunnan University of Applied Sciences jointly held the “Yunnan Youth Developmentfulfilling the mission and responsibility entrusted to us by the times. Foundation - Botanee Charity Donation Ceremony”. This initiative supported the “1386 Dai New Year (2024Water Splashing Festival) Volunteer Service Activity” by donating over CNY 730000 worth of “Winona”

materials.Charity Assistance for Congenital Heart DiseaseIn 2024 Botanee donated CNY 500000 to the Yunnan University Education Foundation’s “AI-assisted Diagnosis forCongenital Heart Disease” public welfare project to support the research project and screening for congenital heart

disease of the School of Information Science & Engineering Yunnan University. With the support of the Botanee Charity

Fund the School’s “Heart Resonance” Team conducted free screenings and research in Lancang Lahu Autonomous

County Pu’er City Yunnan Province screening nearly 40 children for congenital heart disease and helping low-income

children apply for special assistance funds from the Fuwai Yunnan Hospital Chinese Academy of Medical Sciences.Based on the research and screening results the project developed an AI-assisted diagnosis system and an algorithm to

assist with congenital heart disease diagnosis. The system collects heart sound signals from adolescents uploads them In 2024 the Botanee Charity Fund directly and indirectly donated over

to a cloud server for analysis and assesses the probability of disease. This process is simple and fast effectively solving

problems such as untimely screenings and complex procedures in remote areas. It can better address issues of remote CNY 12.1 million worth of charitable materials. A total of 13

areas such as difficulty in rescue and slow screening of congenital heart disease.donations were made benefiting troops students and teachers people with

disabilities sanitation workers delivery personnel and young volunteers in

regions including Pu’er Dehong Lijiang Honghe Xishuangbanna and Diqing.Disaster Relief

In 2024 the “Shanghai Charity Foundation Botanee Special Fund” donated CNY 200000 to Ma’andi

Township Jinping County Honghe Prefecture Yunnan through the representative office of Changning

District of the Shanghai Charity Foundation which was affected by a typhoon to help the disaster-stricken

people overcome difficulties.“Heart Resonance” Team with local villagers The team’s self-developed equipment that facilitates

the diagnosis of congenital heart disease

129 130Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Appendices ESG indicator Unit Performance Performance in 2024 in 2023

Appendix 1: Table of Key Performance Indicators Direct greenhouse gas emissions

(Scope 1)3 tCO2e 1436.18 425.91

Indirect greenhouse gas emissions

(Scope 2)4 tCO2e 10356.89 5011.10 2

Environmental Performance Emissions

Total greenhouse gas emissions tCO2e 11793.07 5437.02

ESG indicator Unit Performance Performance in 2024 in 2023

Greenhouse gas emission density tCO2e/million CNY revenue 2.06 0.98

Packaging materials consumption t 12167.37 11205.40

Total industrial wastewater discharged t 45592 27303

Packaging materials consumption t/million CNY

intensity revenue 2.12 2.03 Chemical Oxygen Demand (COD-cr)

discharged t 0.687 0.753

Packaging materials consumption:

Paper t 9555.64 8003.20 Wastewater5 Five-day biochemical oxygen demand

(BOD5) discharged

t 0.613 0.245

Paper: FSC certified paper t 8178.47 4070.98

Suspended solids discharged t 0.334 0.249

Packaging Paper: Recycled and easy-to-recycle t 6.62 9.26

materials1 paper (PCW/transfer silver card) Animal and vegetable oils discharged t 0.0002 0.001

Packaging materials consumption:

Plastics t 2177.11 2521.64 Particulates t 0.2 0.07

Exhaust gas6

Plastics: PCR t 1.34 10.48 Total VOCs (Volatile Organic Compounds) t 1.95 /

Packaging materials consumption:

Metal t 150.68 140.30 Purchased electricity consumption MWh 19300.95 8786.79

78

Packaging materials consumption: Energy Self-generated solar energy MWh 888.00 /

Glass t 283.94 540.26

Natural gas consumption 10000 m3 65.08 13.21

Nitrogen Oxide (NOX) emissions from

official vehicle travel g 395.36 /

Emissions2

Sulfur Oxide (SOX) emissions from

3 T otal Scope 1 Greenhouse Gas Emissions: Greenhouse gas emissions from the combustion of fossil fuels such as diesel gasoline natural gas

official vehicle travel g 30.30 / and industrial production processes; Scope 1 greenhouse gas emissions are calculated based on the Guidelines for the Calculation and Reporting of Greenhouse Gas Emissions for Enterprises in Other Industrial Sectors issued by the General Office of the National Development and Reform

Commission.

4 Total Scope 2 Greenhouse Gas Emissions: Greenhouse gas emissions resulting from purchased electricity and other external sources; Scope 2

emissions are calculated based on the national average carbon dioxide emission factor for electricity of 0.5366 kgCO2/kWh for 2022 as published

in the Announcement on the 2022 Power Carbon Dioxide Emission Factor by the Ministry of Ecology and Environment and the National Bureau of

Statistics. The significant increase in Scope 2 emissions in 2024 was mainly attributable to the expanded statistical scope of purchased electricity.For details please refer to Note7.

5 The statistical scope includes self-operated factories (Shanghai Qingpu Factory and Kunming Majinpu Central Factory) and offices (only the Kunming

office is included).

6 The statistical scope includes self-operated factories (Shanghai Qingpu Factory and the central factory at Majinpu Subdistrict Kunming).

1 P ackaging materials refer to product (internal and external) packaging materials logistics packaging materials and shopping bags used in our 7 The statistical scope includes self-operated factories (Shanghai Qingpu Factory and the central factory at Majinpu Subdistrict Kunming) self-

stores. The statistics cover the central factory Qingpu factory medical aesthetics centers self-operated warehouses and the supply chain. operated warehouses offices (Kunming Shanghai and Hangzhou offices) and certain store formats (medical aesthetics centers counters)

2 T he statistical scope includes self-operated factories (Shanghai Qingpu Factory and the central factory at Majinpu Subdistrict Kunming) self- covering product manufacturing transportation and retail processes. The significant increase in purchased electricity consumption in 2024 was

operated warehouses offices (Kunming Shanghai and Hangzhou offices) and certain store formats (medical aesthetics centers counters) primarily due to the expanded statistical scope. Compared to 2023 the newly included Shanghai Qingpu Factory counters and offices in Hangzhou

covering product manufacturing transportation and retail stages. and Shanghai contributed a total of 9672.00 MWh which in turn led to a simultaneous rise in indirect and comprehensive energy consumption.

8 C alculated in accordance with the General Principles for Comprehensive Energy Consumption Calculation (GB2589-2020).

131 132Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

ESG indicator Unit Performance Performance ESG indicator Unit Performance Performance in 2024 in 2023 in 2024 in 2023

Gasoline consumption t 2.50 0.60 Other hazardous waste: Waste acid

(900-349-34) kg 890.00 340.16

Diesel consumption t 6.66 43.90 Other hazardous waste: Waste alkali

(900-349-35) kg 250.00 375.30

Liquefied petroleum gas consumption t 0.16 0.14

Other hazardous waste: Waste

organic solvents (900-402-06) kg 410.00 815.14

Energy7 8 Comprehensive energy consumption tce 3360.45 1320.67

Other hazardous waste - Used

Direct energy consumption tce 988.36 240.77 activated carbon HW49 (900-039-49) kg 377.00 /

Indirect energy consumption tce 2372.09 1079.90 Other hazardous waste - Used culture

medium liquid HW49 (900-047-49) kg 540.00 /

Comprehensive energy consumption tce/million

density CNY revenue 0.59 0.24 Other hazardous waste - Used culture medium HW49 (900-047-49) kg 2500.00 /

Total water consumption m3 126834.75 72055.69

Water Waste

11 Other hazardous waste - Organic

waste liquid HW49 (900-041-49) kg 250.00 /

resources9 Operational water consumption 1000 m3/million

density CNY revenue 0.022 0.013 Other hazardous waste - Inorganic

waste liquid HW49 (900-041-49) kg 140.00 /

Materials10 Office paper usage kg 51856.12 16702.21

Other hazardous waste - Used engine

oil HW08 (900-249-08) kg 430.00 /

Total amount of medical waste kg 1082.00 60.00

Other hazardous waste - Waste acid

Waste lamp pcs 344 98 liquid HW34 (900-300-34)

kg 140.00 /

Waste printer toner/ink cartridges kg 318.44 593.84 Other hazardous waste - Sludge 6-99 kg 1170.00 /

Waste batteries kg 148.16 7.38 Other hazardous waste - Used

composite material 8-99 kg 8610.00 /

Waste11

Kitchen waste t 48.18 20.08

Other hazardous waste - Used

packaging materials 8-99 kg 510.00 /

Office household waste t 2394.69 1317.54

Number of direct suppliers suppliers 160 /

Other hazardous waste: Contaminants

(900-041-49) kg 48090.00 52234.10

Number of suppliers that meet the

Other hazardous waste: Waste Company’s environmental impact suppliers 71 /

pharmaceuticals (900-002-03) kg 9430.00 60663.32 assessment standards

Supply chain

Number of suppliers that meet the

Company’s social impact assessment suppliers 117 /

standards

9 The statistical scope includes self-operated factories (Shanghai Qingpu Factory and the central factory at Majinpu Subdistrict Kunming) self-

operated warehouses offices (Kunming Shanghai and Hangzhou offices) and certain retail formats (medical aesthetics centers counters).

10 The statistical scope includes self-operated factories (Shanghai Qingpu Factory and the central factory at Majinpu Subdistrict Kunming) self- Number of key suppliers/major

operated warehouses offices (Kunming Shanghai and Hangzhou offices) and certain retail formats (medical aesthetics centers counters). suppliers/strategic suppliers suppliers 36 /

11 The statistical scope includes self-operated factories (Shanghai Qingpu Factory and the central factory at Majinpu Subdistrict Kunming) self-

operated warehouses offices (Kunming Shanghai and Hangzhou offices) and certain retail formats (medical aesthetics centers counters). The

data scope in 2024 was expanded compared to 2023 with new types of hazardous waste added from Shanghai Qingpu Factory.

133 134Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Social Performance ESG indicator Unit Performance in Performance in 2024 2023

ESG indicator Unit Performance in Performance in Number of employees aged 30 2024 2023 to 40 persons 1805 1783

Number of employees aged 41

Total number of employees trained by gender and category and above

persons 477 404

Number of production

employees persons 398 348Total training hours for

employees hours 364188.00 78811.92 Number of marketing

employees persons 2702 2601Total training hours for male

employees hours 85431.36 19110.85 Training and Number of R&D employees persons 435 498

education Total training hours for female

employees hours 278756.64 59701.07 Number of administrative

employees persons 421 405

Total training hours for

ordinary employees hours 326259.42 75485.53 Number of employees from Chinese Mainland persons 3912 3851

Total training hours for Number of employees in Hong

managers hours 37928.58 3326.39 Diversity of Kong Macao Taiwan and persons 44 1governance overseas regions

bodies and Number of ethnic minority

Number of management personnel categorized by gender and rank employees employees persons 357 354

Number of employees with

Number of male directors persons 6 7 disabilities

persons 19 18

Total number of new hires this

year persons 1678 /

Number of female directors persons 3 2

Number of male new hires this

year persons 339 /

Number of senior management

employees persons 8

(Disclosure

standard update) Number of female new hires

this year persons 1339 /

Number of male senior persons 7 / Number of new hires aged 29 management employees and below this year persons 1011 /

Number of female senior Number of new hires aged 30

management employees persons 1 / to 40 this year

persons 573 /

Number of new hires aged 41

Diversity of Number of employees in persons 412 (Disclosure and above this year

persons 94 /

governance management positions standard update) Number of employees who

bodies and Occupational persons 0 0

employees Number of male employees in

died on the job

health and

management positions persons 192 / safety Total annual days lost due to

work-related injuries days 92 19

Number of female employees

in management positions persons 220 / Cumulative trademark rights

obtained items 1164 1049

Total number of employees globally and the number of employees categorized by

gender role age and region R&D Cumulative patents obtained items 281 193

Cumulative copyrights

Total number of employees persons 3956 3852 obtained items 77 59

Number of people involved in persons 67 61

Number of male employees persons 928 925 volunteer activities (total)

Public welfare

investment Total volunteer service hours hours 2482 2984

Number of female employees persons 3028 2927 Total amount of charitable

donations CNY 10000 2132.14 1673.03

Number of employees aged 29

and below persons 1674 1665 Product quality Raw Material First Inspection Pass Rate % 98.96 98.90

135 136Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Appendix 2: GRI Standards Index Table

ESG indicator Unit Performance in Performance in 2024 2023

Packaging Material First

Inspection Pass Rate % 98.78 97.30

Semi-Finished Product First Botanee reported the information referenced in this GRI Content Index from January 1 2024 % 99.98 99.90 InstructionsInspection Pass Rate through December 31 2024 by reference to the GRI Standards.Product quality Finished Product First Inspection Pass Rate % 99.91 99.60 GRI 1 GRI 1: 2021

Logistics Error Rate % 0.001 0.011

Product Complaint Quality Defect

Rate (PPM)12 / 4.8 2.4

Index Disclosures Location in this Report

Male employee turnover rate % 26.35 24.09

Integrity and Transparency:

Female employee turnover % 29.02 27.71 3-1 Process to determine material topics Reinforcing the Foundation for rate Solid Business

Employee turnover rate for % 32.83 36.11 GRI 3: Material Topics Integrity and Transparency: those aged 29 and below 3-2 List of material topics Reinforcing the Foundation for

Employee Employee turnover rate for Solid Business

turnover rate those aged 30 to 40 % 25.96 20.53 Integrity and Transparency:

Employee turnover rate for 3-3 Management of material topics Reinforcing the Foundation for

those aged 41 or above % 19.97 23.23 Solid Business

Employee turnover rate within % 27.46 / 201-1 Direct economic value generated and distributed Not relevantChina

Employee turnover rate % 66.92 / 201-2 Financial implications and other risks and Low Carbon and Circular Economy: outside of China

GRI 201: Economic opportunities due to climate change

Protecting a Green and Diverse

Ecosystem

Performance

Governance Performance 201-3 Defined benefit plan obligations and other Diversity and Equality: Moving

retirement plans Forward Together in Unity

ESG indicator Unit Performance in Performance in 2024 2023 201-4 Financial assistance received from government Diversity and Equality: Moving Forward Together in Unity

Number of corruption-related

lawsuits filed against issuers 202-1 Ratio of entry-level wage to local minimum- Diversity and Equality: Moving

or employees and concluded cases 0 0 wage by gender Forward Together in Unity

during the Reporting Period GRI 202: Market Presence

202-2 Proportion of senior management hired from Diversity and Equality: Moving

Amount of compensation for the local community Forward Together in Unity

corruption-related lawsuits

filed against issuers or CNY 0 0

employees and concluded 203-1 Infrastructure investments and services

Low Carbon and Circular Economy:

supported Protecting a Green and Diverse during the Reporting Period GRI 203: Indirect Economic Ecosystem

Anti-corruption Number of internal corruption Impacts

reports received cases 0 0 203-2 Significant indirect economic impacts Not relevant

Number of internal corruption

incidents cases 0 0 GRI 204: Procurement Low Carbon and Circular Economy:

Number of special internal Practices

204-1 Proportion of spending on local suppliers Protecting a Green and Diverse

Ecosystem

audits conducted (within the times 10 2

Company) 205-1 Operations assessed for risks related to Integrity and Transparency: Reinforcing the Foundation for

Percentage of full-time corruption Solid Business

employees receiving anti- % 100 100 GRI 205: Anti-corruption

corruption training 205-2 Communication and training about anti- Integrity and Transparency:

corruption policies and procedures Reinforcing the Foundation for Solid Business

GRI 205: Anti-corruption 205-3 Confirmed incidents of corruption and actions

Integrity and Transparency:

taken Reinforcing the Foundation for

12 Due to differences in statistical scopes the product customer complaint quality defect rates (PPM) for 2023 and 2024 are not directly comparable. Solid Business

137 138Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Index Disclosures Location in this Report Index Disclosures Location in this Report

GRI 206: Anti-competitive 206-1 Legal actions for anti-competitive behavior anti- Integrity and Transparency: Reinforcing the Foundation for 403-6 Promotion of worker health Diversity and Equality: Moving Behavior trust and monopoly practices Solid Business Forward Together in Unity

Integrity and Transparency:

207-1 Approach to tax Reinforcing the Foundation for 403-7 Prevention and mitigation of occupational

Solid Business health and safety impacts directly linked by business

Diversity and Equality: Moving

relationships Forward Together in Unity

Integrity and Transparency:

207-2 Tax governance control and risk management Reinforcing the Foundation for

Solid Business GRI 403: Occupational 403-8 Workers covered by an occupational health and Diversity and Equality: Moving

GRI 207: Tax Health and Safety safety management system Forward Together in Unity

207-3 Stakeholder engagement and management of Integrity and Transparency:

concerns related to tax Reinforcing the Foundation for Solid Business

403-9 Work-related injuries Diversity and Equality: Moving

Integrity and Transparency: Forward Together in Unity

207-4 Country-by-country reporting Reinforcing the Foundation for

Solid Business Diversity and Equality: Moving

Low Carbon and Circular Economy: 403-10 Work-related ill health Forward Together in Unity

301-1 Materials used by weight or volume Protecting a Green and Diverse

Ecosystem

Low Carbon and Circular Economy: 404-1 Average hours of training per year per employee

Diversity and Equality: Moving

Forward Together in Unity

GRI 301: Materials 301-2 Recycled input materials used Protecting a Green and Diverse

Ecosystem

Low Carbon and Circular Economy: GRI 404: Training and 404-2 Programs for upgrading employee skills and Diversity and Equality: Moving 301-3 Reclaimed products and their packaging Protecting a Green and Diverse Education transition assistance programs Forward Together in Unitymaterials Ecosystem

Low Carbon and Circular Economy: 404-3 Percentage of employees receiving regular Diversity and Equality: Moving

302-1 Energy consumption within the organization Protecting a Green and Diverse performance and career development reviews Forward Together in Unity

Ecosystem

Low Carbon and Circular Economy:

405-1 Diversity of governance bodies and employees Diversity and Equality: Moving 302-2 Energy consumption outside of the organization Protecting a Green and Diverse Forward Together in Unity

Ecosystem GRI 405: Diversity and

Low Carbon and Circular Economy: Equal Opportunity

GRI 302: Energy 302-3 Energy intensity Protecting a Green and Diverse 405-2 Ratio of basic salary and remuneration of Diversity and Equality: Moving

Ecosystem women to men Forward Together in Unity

Low Carbon and Circular Economy:

302-4 Reduction of energy consumption Protecting a Green and Diverse GRI 406: Non- 406-1 Incidents of discrimination and corrective actions Diversity and Equality: Moving

Ecosystem discrimination taken Forward Together in Unity

302-5 Reduction in energy requirements of products Low Carbon and Circular Economy:

and services Protecting a Green and Diverse Ecosystem GRI 407: Freedom of 407-1 Operations and suppliers in which the right to Association and Collective freedom of association and collective bargaining may Diversity and Equality: Moving

Bargaining be at risk Forward Together in Unity403-1 Occupational health and safety management Diversity and Equality: Moving

system Forward Together in Unity

GRI 408: Child Labor 408-1 Operations and suppliers at significant risk for Diversity and Equality: Moving 403-2 Hazard identification risk assessment and Diversity and Equality: Moving incidents of child labor Forward Together in Unity

accident investigation Forward Together in Unity

GRI 409: Forced or 409-1 Operations and suppliers at significant risk for Diversity and Equality: Moving

GRI 403: Occupational 403-3 Occupational health services Diversity and Equality: Moving Compulsory Labor incidents of forced or compulsory labor Forward Together in UnityHealth and Safety Forward Together in Unity

403-4 Worker participation consultation and Diversity and Equality: Moving GRI 410: Security Practices 410-1 Security personnel trained in human rights policies or procedures Not relevantcommunication on occupational health and safety Forward Together in Unity

403-5 Worker training on occupational health and Diversity and Equality: Moving GRI 411: Rights of 411-1 Incidents of violations involving rights of

Indigenous Peoples indigenous peoples Not relevantsafety Forward Together in Unity

139 140Yunnan Botanee Bio-Technology Group Co. Ltd. 2024 Sustainability & Environmental Social and Governance (ESG) Report

Index Disclosures Location in this Report Reader Feedback

413-1 Operations with local community engagement Gratitude & Goodwill: Co-Creating

impact assessments and development programs and Sharing Value Dear reader

GRI 413: Local Communities

Thank you for reading this report. We sincerely look forward to your valuable comments and suggestions so as to improve

413-2 Operations with significant actual and potential

negative impacts on local communities Not relevant

our sustainability management. Please answer the following questions and give us feedback via:

Email: ir@botanee.com

414-1 New suppliers that were screened using social Low Carbon and Circular Economy: Protecting a Green and Diverse Correspondence: No. 53 Keyi Road Kunming High-tech Industrial Development Zone Kunming Yunnan Provincecriteria Ecosystem

GRI 414: Supplier Social

Assessment

414-2 Negative social impacts in the supply chain and Low Carbon and Circular Economy:

actions taken Protecting a Green and Diverse Ecosystem

GRI 415: Public Policy 415-1 Political contributions Not relevant

416-1 Assessment of the health and safety impacts of Technological Precision: Building a

product and service categories Skin Health Ecosystem

GRI 416: Customer Health

and Safety

416-2 Incidents of non-compliance concerning the Technological Precision: Building a

health and safety impacts of products and services Skin Health Ecosystem Please feel free to scan the code and fill in your feedback

417-1 Requirements for product and service Technological Precision: Building a 1. What is your overall assessment of this report

information and labeling Skin Health Ecosystem

□ Good □ Average □ Poor

GRI 417: Marketing and 417-2 Incidents of non-compliance concerning product Technological Precision: Building a

Labeling and service information and labeling Skin Health Ecosystem 2. What do you think the quality of information disclosed in it

□ Good □ Average □ Poor

417-3 Incidents of non-compliance concerning Technological Precision: Building a

marketing communications Skin Health Ecosystem 3. How do you think this report reflects the Company’s significant impact on economy society and environment

418-1 Substantiated complaints concerning breaches Technological Precision: Building a □ Good □ Average □ PoorGRI 418: Customer Privacy of customer privacy and losses of customer data Skin Health Ecosystem

4. How well do you think the Company has done in safeguarding stakeholder interests

□ Good □ Average □ Poor

5. Your comments and suggestions on our sustainability management:

Please leave your personal information if you are willing to:

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Address:

141 142Yunnan Botanee Bio-Technology Group Co. Ltd. Botanee Group Botanee Investor Relations WeChat account WeChat account

Address: No. 53 Keyi Road Kunming High-tech Industrial Development Zone Kunming Yunnan Province

Tel.: 021-62321125

Zip code: 650106

Email: ir@botanee.com

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