About This Report
This is the third Sustainability (ESG) / Social Responsibility Report disclosed by Zhonghong Pulin Medical Products Co. Ltd. Name Abbreviations
Based on the principles of standardization transparency objectivity and comprehensiveness this report aims to demonstrate
Zhonghong Medical's performance and achievements in corporate governance environmental protection and social welfare to For better expression and readability “Zhonghong Pulin Medical Products Co. Ltd.” in this report is referred to as “Zhonghongour stakeholders. We seek to enhance public understanding of our company's sustainability commitments and practices while Medical” “the Company” or “we/our”. Subsidiaries involved in this report are:
continuously driving our improvement in ESG performance.“Jiangxi Kelun Medical Devices Manufacturing Co. Ltd.” referred to as “Kelun Medical Devices”;
Preparation Basis
“Jiangxi Zhonghong Pulin Medical Products Co. Ltd.” referred to as “Jiangxi Zhonghong”;
This report is prepared in accordance with the No. 2 Guidelines on Self-regulation of Listed Companies on Shenzhen Stock “Guilin HBM Health ProtectionsInc.” referred to as “Guilin HBM”;
Exchange - Standardized Operation of Listed Companies on the ChiNext Board the Self-Regulatory Guidelines No. 17 for
Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For Trial Implementation) and the Guidelines No. 3 “Shenzhen MedRena Biotech Co. Ltd.” referred to as “MedRena” .of Shenzhen Stock Exchange for Self-Regulation of Listed Companies on the ChiNext Board— Preparation of Sustainability
Report and with reference to the UN Sustainable Development Goals (SDGs) GRI Sustainability Reporting Standards (GRI Branches involved in this report are:
Standards) issued by Global Sustainability Standards Board (GSSB) and other relevant standards. It also draws on the ESG
“Tangshan No.1 Branch of Zhonghong Pulin Medical Products Co. Ltd.” referred to as “ the First Tangshan Branch”;
topics required by Wind ESG rating.“Tangshan No.2 Branch of Zhonghong Pulin Medical Products Co. Ltd.” referred to as “the Second Tangshan Branch”;
Reporting Scope
“Tangshan No.3 Branch of Zhonghong Pulin Medical Products Co. Ltd.” referred to as “the Third Tangshan Branch”;
Unless otherwise specified the information contained herein is ranged between January 1 2024 to December 31 2024. For
some information beyond the above time frame the report may date back to previous years or refer to later years. This report “Tangshan No.5 Branch of Zhonghong Pulin Medical Products Co. Ltd.” referred to as “the Fifth Tangshan Branch”;
contains information on Zhonghong Pulin Medical Products Co. Ltd. and its subsidiaries and branches. “Tangshan No.6 Branch of Zhonghong Pulin Medical Products Co. Ltd.” referred to as “the Sixth Tangshan Branch”;
Data Source “Tangshan Color Printing and Packaging Branch of Zhonghong Pulin Medical Products Co. Ltd.” referred to as the “ColorPrinting and Packaging Branch”.Unless otherwise specified the data contained herein are from the internal materials investigation and interview records and
other relevant documents of the Company. The Board of Directors of the Company is responsible for the authenticity accuracy Report Access
and completeness of the report and assures that the report is free of misrepresentations or misleading statements. The
currency used in this report is Chinese RMB unless otherwise specified.You can download the Chinese and English versions of this report from our official website (www.zhonghongmedical.com). In
case of discrepancies the Chinese version shall prevail.Feedback
Please scan the QR code to leave your feedback.CONTENTS
About This Report PART 1 PART 3 PART 5
Message from the Chairman 01 Ecological Protection: Company-Employee Collaboration： Governance Improvement:
Fostering a Green Homeland Securing a Bright Future Laying a Solid Foundation of
About Zhonghong Medical 03 Development
Environmental Management 19 Employee Rights 39 Corporate Governance 55
Sustainability Management 09
Resource Utilization 20 Development and Training 42 Prudent Operations 56
CSR Feature: 13 Pollution Prevention 22 Occupational Health and Safety 43 Business Ethics 59
Leading the Digital and Intelligent Green Offices 24
Medical Care Through Innovation-Driven
Development
PART 2 PART 4
Customer First: Social Contribution:
Creating an Outstanding Brand Sharing Development Fruits
Key Performance Table 60 Product Quality 27 Medical Accessibility 47
Index 64 Responsible Supply Chain 31 Open Cooperation 51
Premium Service 34 Charity 52
Outlook for 2025 692024 Sustainability (ESG) Report
Message from the Chairman
We sail forward and embark on a new journey bravely.The year 2024 marked the 75th anniversary of the People’s Republic of China and a pivotal year for achieving the goals outlined
in China’s 14th Five-Year Plan (2021-2025). Under our corporate mission of “fulfilling the dream of growth for a healthy life”
Zhonghong Medical serves the Healthy China strategy and embraces opportunities presented by new quality productive forces. We
also accelerate sci-tech self-reliance and self-strengthening at higher levels and drive digital transformation. Answering the call of
our times we fulfill social responsibilities and steer the Company toward high-quality development with sound ESG performance.We make steady advances in business expansion.In 2024 committed to our go-global strategy we strengthened our presence in overseas markets. Our export business witnessed
steady growth with the number of overseas clients increasing by nearly 10% year over year and our products sold to over 80
countries and regions. To explore the “second growth curve” we invested in Wismed Intelligent Technology (Beijing) Co. Ltd.ushering in a new era of digital vital sign management and injecting fresh momentum into our long-term development.We pursue green development by practicing low-carbon principles.In 2024 guided by China’s 30*60 Decarbonization Goal we were devoted to a green and low-carbon development path. To address
the risks and opportunities posed by climate change we optimized production processes enhanced energy efficiency and
reduced pollution and greenhouse gas emissions. We also accelerated our transition toward green production and operations built
“green factories” and “zero-waste factories” and fostered a green workplace. These efforts contributed to the harmony between
people and nature.We make an intensive effort to set a benchmark.In 2024 our three business segments progressed in synergy. Leveraging our high-quality products and services we established
long-term partnerships with more than 3000 hospitals. With our excellent strength and industry influence we have been listed asone of China’s top 50 medical device companies for three consecutive years and we have made it to the “Top 500 Most ValuableChinese Brands” ranking. We have received 23 prestigious industry awards contributing our strength to product R&D healthcare
accessibility and philanthropy.Looking ahead Zhonghong Medical will leverage the leading role of innovation and take concrete actions to embed sustainabilityinto every aspect of our operations advance ESG practices and unite behind the goal of “becoming the future-leading smartZhonghong Medical and a trustworthy century-old enterprise” composing a new chapter of corporate responsibility.Arduous as the journey may be we will always forge ahead.Sang Shujun Chairman
1 22024 Sustainability (ESG) Report
About Zhonghong Medical
Our History
Company Profile
Zhonghong Pulin Medical Products Co. Ltd. 2010-2014 2015-2020 2021
(“Zhonghong Medical”) founded in 2010
is a core member of Xiamen ITG Holding Our company was founded. The Sixth Tangshan Branch was established and the first Zhonghong Pulin Medical Products Co. Ltd. was
Group Co. Ltd. (one of Fortune Global 500 We undertook the glove assets and businesses of workshop started construction. listed on the ChiNext Board of Shenzhen Stock
companies). Focusing on the healthcare Tangshan Zhonghong Pulin Group Co. Ltd. including The Company was renamed as Zhonghong Pulin Medical Exchange (SZSE).industry Zhonghong Medical is engaged in the First Tangshan Branch the Second Tangshan Products Co. Ltd.the research and development production Branch the Third Tangshan Branch the Fifth Tangshan The United Medical Inc was established.and sales of high-quality disposable Branch as well as Tangshan Color Printing Packaging Jiangxi Zhonghong Pulin Medical Products Co. Ltd. was
health protection products medical sterile Branch. established.equipment comprehensive life support The first phase project of Jiangxi Subsidiary was started and
solutions and other medical consumables the second phase project of the Sixth Tangshan Branch was
and equipment. During the reporting period put into operation.we had three major business divisions Continental Medical B.V. was established.ie Health Protection Safe Infusion and The Company started the IPO declaration.Innovative Incubation and five production The Company started construction of Jiangxi Base Phase II.bases in Tangshan in Hebei Jiujiang in
Jiangxi Yichun in Jiangxi Guilin in Guangxi 2024 2023 2022
Shenzhen in Guangdong. Our overseas
bases are under preparation. We have a
R&D system formed by Tangshan Research We held hold equity of Wismed Intelligent Technology The Company acquired Guilin HBM Health ProtectionsInc. to The Company acquired Jiangxi Kelun Medical Devices
Institute Shanghai Research Institute (to be (Beijing) Co. Ltd and work to establish a long-term develop latex gloves and condom products. Manufacturing Co. Ltd. to expand its business of safe
built) Yichun Research Institute Shenzhen and comprehensive strategic partnership with it. infusion.Research Institute Guilin Research Institute
and Hainan Subsidiary. The Company
is a national high-tech enterprise one of
theTop 500 Most Valuable Chinese Brands
among the top 50 listed medical equipment
companies in China and is selectedamong the “the world-class specialized andsophisticated model enterprises”. Guilin
HBM is selected as a national specialized
and innovative "little giant" enterprise.The Company acquired Shenzhen MedRena Biotech Co. Ltd.Zhonghong Medical Supplies (Hainan) Co. Ltd.( Hainan
Subsidiary) was established as a medical transformation
and R&D platform.The Company established Beijing Zhonghong Pulin Reproductive
Medical Technology Co. Ltd.
3 42024 Sustainability (ESG) Report
Corporate Culture First-class leadership
Fulfill the dream of Faithful responsibility
Delving into healthcare industry Zhonghong Medical is committed to becoming a digital modern enterprise benefiting all growth for a healthy life Diligence first
stakeholders and leading the industry's future development. We strive to become a healthy and sustainable century-old enterprise Corporate Core Mutual progress
that is trusted by customers employees partners shareholders and the society. Guided by the corporate mission the Company Mission Values
builds a career platform to fulfill employees' dreams of career development and personal growth. We provide the first-class
products and services to help the customers create a healthy and quality life. We also operate for good contributing to the healthy
and sustainable development of a better society and creating values for stakeholders constantly. The
Zhonghong’s
Principle
Aspiration
Sincerity and excellence of Pulin Altruism
Devotion and ambition Win-win outcomes
Corporate Vision
A future-leading smart Zhonghong
Medical and a trustworthy century-
old enterprise Talent concept Innovation concept
Becoming the future Become a trustworthy
Utilize employees’ strengths Innovate in integration
leading smart enterprise century-old enterprise Hire excellent talents Transcend in learning
We strive to build the industry's first-class Being integrity-oriented we strive to build long- Quality concept Cost concept
digital and intelligent management system and term mutually beneficial partnerships with
operation platform which will greatly enhance stakeholders and establish deep emotional Strict quality control Lean management
our competitiveness and operational efficiency; connections with customers; Standards enforcement Driven by data
After bui ld ing an industry- leading R&D We will forge a dynamic staff team with top-
system across the country our products and notch professional competence build a sound
technological innovations will become stronger. internal training system and talent echelon and
With improved innovation sense and ability become the preferred development platform
we will continue to lead the market and the for excellent talents;
industry development;
We work to establish an institutional mechanism
Putt ing people f i rs t and go ing beyond with Zhonghong characteristics to enhance the Vision Violating safety protocols
profitability we are dedicated to creating a risk resistance capacity;
positive and sincere energy field of Zhonghong Awe Crossing the bottom-line of integrity
Medical to benefit all stakeholders; Adhering to long-termism we will steadily
real ize the long-term goals expand the Tolerance Engaging in cliques
We uphold the principle that 'a rising tide lifts scale and efficiency improve the brand and Zhonghong Zhonghong
all boats' committed to enabling millions of status and become an industry-leading and Discipline Spreading negativitycharacters taboos
Zhonghong families to achieve progressive sustainable century-old enterprise. Boldness Lacking cost awareness
prosperity—from basic sustenance to comfortable
living and ultimately to premium quality of life. Resilience Neglecting quality control
Responsibility Disclosing confidential information
5 62024 Sustainability (ESG) Report
Zhonghong Medical Guilin HBM
Honors Specialized and sophisticated SME in Guangxi
Hebei Province Manufacturing 2024 Quality Benchmark Best Practice Zhuang Autonomous Region2024 Best Listed Company Board Practice Single-item Champion Enterprise
China Association for Quality Department of Industry and Information
China Association for Public Companies Hebei Provincial Department of Technology of Guangxi Zhuang
Industry and Information Technology Autonomous Region
Guangxi Smart Factory Model Enterprise
2024 Guangzhou High-End Medical Device Waste-Free Factory in Guilin
Department of Industry and Information
Exhibition’s “Special Advisory Unit” 2024 Outstanding Listed Company Board Office
Technology of Guangxi Zhuang Guilin Bureau of Industry and
Professional Committee on Innovation Practice Autonomous Region Information Technology
Services China Association for Medical China Association for Public Companies
Devices Industry
Yongfu County 2023 Industrial Vitalization Yongfu County 2023 Industrial VitalizationThe sixth place in the “ESG TOP 20 A-Shares Tax Contribution Award Employment Encouragement Award
2024 Top 10 Innovative Biotech Company Listed Medical Device Companies” CPC Yongfu County Committee & Yongfu CPC Yongfu County Committee & Yongfu
Golden Cane Award ESG Task Force China Association for County Government County Government
Medical Devices Industry
2024 CLS Zhiyuan Award – ESG Pioneer Award Top 100 Enterprise in China’s Rubber Industry
CLS China Rubber Industry Association MedRena
Top 500 Most Valuable Chinese Brands Specialized and sophisticated SME Innovative SMETop 50 Medical Device Companies by Revenue
The Evaluation Center of Brand Union Service Bureau for Small and Medium-Sized Service Bureau for Small and Medium-Sized Qinshan Pharmaceutical Forum
(Beijing) Consulting Co. Ltd. Enterprises EnterprisesOrganizing Committee
2024 Listed Company ESG Value 2023 AAA Integrity Enterprise of Shenzhen
Communication Award 2024 Chinese Enterprise ESG Practice Observation Report
High-Tech Enterprise
Pingshan District
Outstanding Social Management Practice (S) Case Shenzhen Science and Technology
Shenzhen Value Online Information Innovation Commission Pingshan District Social Credit System Building
Technology Co. Ltd China Times and Coordination Office
2024 Top 100 Specialized and Sophisticated Title of “National Brand & Domestic Excellence”
Excellent Enterprise in Digital and 2nd Guoxin Cup ESG Golden Bull Award Top Enterprise in Greater Bay Area Haopin Youxiang (Beijing) Information
Intelligent Applications 20 in Governance
Organizing Committee of the Greater Bay Management Service Center
Kingdee CIO Achievement Program China Securities Journal Area Innovation Festival & Shenzhen-Hong China Industry News National Brand
Kong-Macao Innovation Conference Research Center
GoldenBee Excellent Corporate Sustainability Report
2024 Customer Information Disclosure Award
GoldenBee ThinkTank
7 82024 Sustainability (ESG) Report
Sustainability Management Materiality Assessment
Zhonghong Medical conducts regular materiality assessments to identify ESG topics of stakeholder concern. In 2024 based on
Under our corporate mission of “fulfilling the dream of growth for a healthy life” Zhonghong Medical embeds sustainability the Company’s database of ESG topics we conducted stakeholder surveys through questionnaires to identify evaluate screen
principles into the Company’s development strategy and daily operations. We continue to enhance our sustainability management and prioritize ESG topics. Eventually the 2024 materiality matrix was finalized which serves as the foundation for this report.framework optimize sustainability disclosure mechanisms and maintain communication with stakeholders to drive high-quality
growth while balancing environmental social and economic benefits.Sustainability Management Structure We gather existing ESG practices challenges and plans from various departments to create a
Establishing preliminary ESG topic list.a topic We refine the list of ESG topics by referring to domestic and international standards industry best
Given our strategic needs Zhonghong Medical has refined the sustainability framework centering around the Board of Directors. database practices and ESG disclosure guidelines.We have established a three-tier structure—decision-making management and execution—designating the Board as the highest
decision-making body for ESG matters. The Strategy and Sustainability Committee sits under the Board and a cross-departmental We add ESG topics that could significantly impact the Company based on global ESG trends national
ESG Task Force is established to ensure that sustainability principles are integrated into R&D production and operations through a policies and industry regulations.top-down collaborative mechanism.Conducting We distribute questionnaires to track stakeholder concerns and expectations regarding ESG topics.surveys
Strategy and Sustainability Committee among We analyze survey results and quantify the attention paid to and materiality of ESG topics for subsequent
stakeholders prioritization.Study and formulate the Company’s sustainability strategy;
Manage and oversee sustainability-related impacts risks and
opportunities and propose recommendations;
Screening We assess the potential impact of ESG issues on the Company’s financial performance operational
Review the compliance and materiality of the Company’s sustainability report; and efficiency and long-term growth.Other responsibilities. prioritizing We evaluate the impact materiality of ESG topics from a stakeholder perspective.issues We visualize the prioritization of ESG topics to identify high-priority material topics.ESG Task Force
Reviewing The ESG Task Force conducts an initial review of selected ESG topics to ensure comprehensiveness and
Define key objectives and action pathways for the Company’s sustainability and representativeness.strategy to ensure that ESG work is aligned with business operations; confirming The Strategy and Sustainability Committee finalizes the ESG topic list based on corporate strategic goals
Board of issues and resource allocation.Directors Develop and refine ESG policies frameworks and processes; The Board of Directors confirms the 21 ESG topics to align them with corporate governance objectives.Coordinate internal departments bring resources together and drive
sustainability project implementation;
Other responsibilities.Company departments
Understand stakeholder expectations and needs timely;
Execute ESG tasks according to established deadlines and schedules;
Regularly report sustainability practices performance indicators and typical
cases;
Other responsibilities.
9 102024 Sustainability (ESG) Report
Extremely high Zhonghong Medical Materiality Matrix Stakeholders Expectations and appeals Ways of engagement
Compliance with laws and
regulations Implementation of regulatory policy guidelines
5 Government and
3 Response to national strategies Participation in survey and visits21 13 6 regulators Standardized corporate Daily supervision and reporting
11 governance Information disclosure
20 Anti-corruption and integrity
4 7 15 2 Stable business performance
11812
Sound corporate governance General meeting of shareholders
14 8 9 Transparent information Periodic reports and information bulletins
16 10 disclosure Investor surveys and communication
Shareholders and investors
19 Comprehensive risk meetings
17 management Roadshows and reverse roadshows
Protection of stakeholder rights Online communication platforms
and interests
Responsible marketing Responsible marketing system documents
High Significance to Zhonghong Medical Extremely high
Protection of customer rights Customer complaint handling
and interests Product presentation
Customers
Improvement of service quality Customer discussion and return visits
Unblocked service channels Official website official WeChat account APP
R&D of innovative products and other communication platforms
Environmental Product Social Governance
responsibility responsibility responsibility responsibility Protection of employee rights Labor union
and interests Employee seminars
Promotion of employee growth Internal training system
Employees
1 Climate change and 5 Product quality and safety 11 Equal employment and 17 Corporate Occupational health and safety Performance and compensation management
carbon emissions 6 Research technology and protection of rights and governance Compensation and benefits system
2 Use of resources innovation interests 18 Investor relations Inclusion and diversity Labor union’s cultural and caring activities
3 Waste and pollutant 7 Healthcare accessibility 12 Employee training and management
discharge development Consultation on an equal footing Exchange and visits8 Data security and privacy 19 Business
4 Green office protection 13 Occupational health compliance Honesty and integrity SeminarsSuppliers and partners
and safety
9 Responsible marketing 20 Business ethics and Complementary advantages Signing of agreements
14 Employee care
High-quality customer anti-corruption Mutual benefits Industry research10
service 15 Industry development 21 Building a Energy saving and emission Implementation of energy saving and
16 Support for responsible supply reduction emission reduction policies
community-based chain
Environment Green manufacturing Environmental data collection and disclosure
charity
Green operation Digital energy management platform
Green supply chains Eco-friendly charity activities
Stakeholder Communication Sudden disaster and accident
response Emergency response training
Zhonghong Medical upholds an open transparent and responsible approach to realizing extensive stakeholder communication. Communities Devotion to public welfare National thematic public welfare activities
Through structured engagement mechanisms and diverse interaction methods the Company listens to stakeholder expectations
Response to social concerns Charity fund
and ensures targeted responses to various concerns. During the reporting period the Company identified seven key stakeholder
groups: government and regulators shareholders and investors customers employees suppliers and partners environment and
communities.
1112
Significance to stakeholders2024 Sustainability (ESG) Report
Innovation-led changes
Leading the Digital and Intelligent
CSR
Medical Care Through Innovation-Driven
Feature Medispo nuclear grade protective gloves
Development After years of scientific research Medispo successfully developed nuclear grade
protective glovebox gloves including long-life high-performance and long-arm
nuclear protection gloves long-life and high-performance chloroprene rubber
Upholding the innovation concept of "innovate in integration and transcend in learning" Zhonghong Medical launches high- glovebox gloves long-life and high-performance butyl rubber glovebox gloves
performance and targeted medical products to satisfy the diversified needs of the market. Meanwhile the Company leverages long-life and high-performance nitrile rubber glovebox gloves and natural latex
digital technologies to realize product R&D upgrade and has developed high-quality and innovative medical consumables and glovebox gloves. The outstanding performance of the long-life high-performance
equipment. Our intelligent upgrading of medical products facilitate our transition to a leading innovative intelligent and inclusive and long-arm nuclear protection gloves can be used to handle harsh conditions
medical solution provider in the industry. such as heavy oil strong acids and strong alkalis in extreme nuclear radiation
environments. It can also meet operational needs in different conditions making
it the first of its kind in China.Orienting Product R&D to Medical Frontier
Zhonghong Medical has established an all-round R&D innovation In 2024 Medispo indicator surgical glove
management system encompassing the Reward Measures for R&D
Achievements and the New Product Development Management Measures RMB 98.3142 million The unique dual color configuration provides double peace of mind and greatly
etc. which standardizes the R&D process and improves R&D efficiency at reduces the perforation rate of gloves. At the same time utilizing the negative
the institutional level. Each year the Company invests heavily in building R&D investment pressure principle of double-layer gloves once the outer layer leaks it will quickly
innovation platforms introducing R&D personnel and transforming scientific develop and improve the recognition rate after perforation. It is applicable to
and technological achievements. Close partnerships are also established 516 high-risk operations such as AIDS and hepatitis effectively reducing the risk of
with several universities and research institutions to ensure the Company's occupational exposure indicator surgical glove provide a dual safety guarantee
leading position in technology. R&D personnel for surgeons building a new protective defense for surgical safety.Technological breakthroughs Intelligent infusion pump
The pump uses advanced algorithms and sensor technology to realize precise
Zhonghong Medical Guilin HBM MedRena control and real-time monitoring of infusion speed; it supports several infusion
modes to meet the treatment needs of different patients; it also has a powerful
Zhonghong Medical has developed Guilin HBM proposed the technical In response to the clinical needs data logger to back up clinical decision-making.a way to test the total migration requirements for “Six-Protection” of products such as nutrition
of food-contact nitrile gloves. nuclear radiation protection gloves and pumps syringe pumps infusion
T h r o u g h o p t i m i z a t i o n a n d conducted a one-year scientific research pumps infusion information Precise syringe pump
adjustment of raw materials with the joint R&D team from Guilin c o l l e c to r s a n d p u m p s f o r
f o r m u l a s a n d p r o d u c t i o n University of Technology. Benchmarking The pump supports multiple injectable drugs and dose settings to ensure precise p e t s M e d R e n a c o n d u c t e d
processes significantly reducing the structure and performance of drug injection; its intelligent alarm system can promptly alert users of any technical transformation and
the total migration of nitr i le advanced enterprises’ anti-radiation abnormality to guarantee the safety of patients.upgrading by optimizing product
gloves to meet food contact gloves Guilin HBM developed key functions structural design
requirements. material systems and forming processes and appearance after clinical
for multi-layer nuclear radiation protection Digital body temperature management solutionapplication training and product
gloves with a chemical protection layer performance tests.a white warning layer a nuclear radiation Based on the clinical needs of the perioperative period and the requirements of
protection layer and a wearing inner layer. anesthesia quality control management a digital body temperature management
solution is developed mainly consisting of a wireless temperature sensor an
active warming system and digital quality control software. The combination of
the wireless temperature measurement sensor and the active warming system
achieves closed-loop management of temperature measurement and warming
while also digitizing temperature data across the whole perioperative period.
13 142024 Sustainability (ESG) Report
Guilin HBM cultivates innovative talents Case
In January 2024 Guilin HBM's “Li Jingfeng Innovation Studio for Model Workers and Craftsmen Talents” was selected
into the list of 2023 Guilin Innovation Studios for Model Workers and Craftsmen Talents. As a fertile ground for
innovative talent cultivation the innovation studio has solved many technical challenges by leveraging its outstanding
innovation capabilities and profound technical expertise. It trains talents for the sustainable development of the health
industry.Empowering Corporate Transformation through Digital and Intelligent Upgrading
Zhonghong Medical actively responds to the national intelligent manufacturing strategy and keeps increasing investment in digital
transformation. We build advanced digital factories and introduce intelligent production equipment and management systems to
achieve automated production and intelligent monitoring. We fully utilize digital technologies to improve efficiency and precision
while reducing costs and risks in processes ranging from raw material procurement product production and quality inspection to
packaging and transportation advancing with big strides on the path to digitization.Guilin HBM a leader of intelligent manufacturing Case
Zhonghong Medical wins "Excellent Enterprise of Digital and Intelligent Application" award Case
In September 2024 Zhonghong Medical won In October 2024 Guilin HBM's excellent project of "Guilin HBM Discrete Intelligent Factory" was included in the list of
the "Excellent Enterprise of Digital and Intelligent 2024 Guangxi Intelligent Factory Demonstration Enterprises. The project has achieved highly automated digitized and
Application" award in the Kingdee· CIO Achievement intelligent production processes by introducing advanced intelligent manufacturing technologies and management
Program. Zhonghong Medical has successfully philosophies. It has built a unique intelligent manufacturing ecosystem to significantly improve production efficiency
optimized the entire business process through and reduce operating costs laying a solid foundation for the sustainable development of the Company. The discrete
a series of innovative solutions making the intelligent factory owns the most advanced production control system and high-precision inspection and testing
then complicated work processes smoother equipment in China's latex industry 20 fully automated medical glove production lines (including double lines) and 4
and more efficient. Production processes that condom production lines.used to require a significant amount of time and
manpower can now be done quickly and accurately
which greatly improves production efficiency and
competitiveness while providing valuable insights
and new ideas for the overall development of the
medical supplies industry.In 2024
MedRena introduced the MES (manufacturing
execution system) an intelligent manufacturing
system reaching the third level of maturity in
intelligent manufacturing capability.
15 162024 Sustainability (ESG) Report
01
Ecological Protection:
Fostering a Green
HomelandCommitted to the concept that “lucid waters and lushmountains are invaluable assets” Zhonghong Medical puts
sustainability at the core of our corporate strategy. The
Company strengthens environmental compliance tightens
pollution prevention and addresses climate change. To
explore energy-saving and carbon-reduction opportunities
we adopt digital and intelligent management and resource
recycling for higher resource efficiency while advancing
green operations. Pursuing green low-carbon development
we strive to contribute to a future of harmonious coexistence
between humanity and nature.Contributions to UN SDGs
17 182024 Sustainability (ESG) Report
Environmental Management Resource Utilization
In response to call for green development Zhonghong Medical keeps enhancing its environmental management system and Dedicated to improving resource and energy efficiency Zhonghong Medical has developed an industrial Internet platform and
each subsidiary has established a comprehensive EHS (Environment Health and Safety) management system with dedicated applied an intelligent manufacturing execution system (MES) to promote precise digital energy and carbon management. The
personnel responsible for environmental management. Environmental management metrics and targets are integrated into Company also carries out energy- and water-saving upgrades and encourages resource recycling to improve green production and
executive performance assessments to ensure high-level environmental management in all aspects. During the reporting period operations.the Company recorded no environmental administrative penalties environmental pollution incidents or major environmental
accidents. Energy management
Environmental green certification Zhonghong Medical has urged subsidiaries to formulate energy management policies including the Energy Conservation Reward
and Punishment Management System Energy Conservation Publicity and Training System and Energy Metering Management
In response to national environmental policies Zhonghong Medical completes supervisory audits of the ISO 14001 environmental System. We have introduced energy-saving equipment and energy-efficient technology upgrades slashing energy consumption
management systems by third-party certification bodies which helps standardize environmental management. As part of our and GHG emissions and achieving substantial environmental benefits.industry-leading “Green Factory” practices we apply the principles of energy conservation and emission reduction from factory
design to equipment selection adopt efficient energy-saving equipment and implement clean production significantly lowering
energy consumption and waste. Indicator Unit 2024
Kelun Medical Devices receives the provincial title of “Green Factory” Case Total energy consumption tce 247903.11
Direct energy consumption tce 5401.93
Committed to the strategy of green and
sustainable development Kelun Medical Indirect energy consumption tce 242501.18
Devices fulfills responsibility for environmental Coal ton 1619.48
protection. The company explored and
implemented green operations such as Gasoline L 6578.66
energy-efficient upgrades enhanced resource
management and pollution and emission Diesel L 59997.43
reduction to minimize environmental impact.
3
In July 2024 thanks to its progress in green Natural gas m 346615.00
manufacturing Kelun Medical Devices Coke oven gas m3 6026192.00
made it into Jiangxi Province’s 2024 green
manufacturing list and earned the title of Purchased electricity MWh 363324.69
“Green Factory” awarded by the Jiangxi
Provincial Department of Industry and Steam ton 2019403.85
Information Technology.Guilin HBM completes steam energy-efficient upgrade for the dual-mode glove production line Case
Environmental emergency
management In 2024 Guilin HBM improved the steam
energy efficiency of the dual-mode glove
Zhonghong Medical has developed a Response Plan for production line which was put into
Environmental Emergencies which is filed with local ecological operation in May of the same year. The
and environmental authorities. The Company conducts regular upgrade effectively lowered the daily
training and emergency drills to enhance environmental steam consumption of all production
risk awareness and response capabilities. Our subsidiaries lines maintaining an industry-leading
have also formulated protocols such as the Identification level of energy efficiency.Assessment and Control Procedure of Environmental Factors
and the Management Review Control Procedure with periodic
environmental risk assessments and hazard inspections. Emergency drill for environmental emergencies
19 202024 Sustainability (ESG) Report
Leveraging emerging technologies
such as the Internet of Things (IoT) Pollution Prevention
Zhonghong Medical has developed an
energy management platform to enable the
digital visualized intelligent and refined Zhonghong Medical strictly follows Chinese laws and regulations such as the
management of energy use and carbon Atmospheric Pollution Prevention and Control Law Water Pollution Prevention In 2024
emissions. The Company continues to and Control Law and Law on the Prevention and Control of Environment Pollution
apply the platform in more factories Caused by Solid Wastes. We continue to improve the Hazardous Waste Prevention 2553541.44 3
where real-time energy consumption data Responsibility System and Wastewater Air Emission and Noise Pollution Prevention
m
is gathered to develop targeted equipment and Control Procedures clarifying pollutant treatment processes emission standards Total wastewater
and process improvements for better and supervision measures. Regular environmental training sessions and inspections
energy efficiency. of environmental protection equipment ensure that all production links meet
environmental requirements.Zhonghong Medical energy management cloud platform
2330200.54 m3
Pollution prevention measures Industrial wastewater
Water resource management In 2024
Air emissions from coal-fired boilers: The Company employs aZhonghong Medical strictly adheres to China’s Water Law and local “selective non-catalytic reduction (SNCR) + baghouse dust collector 2541786.74 tons 3regulations in areas where we operate with science-based water resource + sodium-alkali desulfurization system” to ensure emission 223340.90 m
management. The Company encourages subsidiaries to establish Total water consumption compliance. Online monitoring equipment is installed at emission Domestic wastewater
the Water Use Management Policy and explore measures to improve 304806.94 Air
points to upload real-time emission data.water management. We step up water protection by integrating water tons emissions Volatile organic compounds (VOCs): Various subsidiaries adopt
management into all steps of production and operations to build a water- Domestic water consumptionpollution control technologies such as “high-efficiency sprayefficient enterprise. We primarily use municipal water supplies and
tower—gas-liquid separator—activated carbon adsorption— 3041.05 tons
groundwater for production and office operations. Major water-consuming 2236979.80 tonsdesorption and catalytic combustion” and “regenerative thermal Total solid wasteproduction facilities are located in areas with low water risk levels. Industrial water consumptionoxidizer (RTO) UV photolysis and activated carbon adsorption.”
Alarm systems are installed at emission points to ensure emissions
remain within regulatory limits.Guilin HBM implements water-saving upgrades Case 1764.40 tons
The Company strictly follows environmental impact assessment Non-hazardous waste
In 2024 Guilin HBM enhanced the intensive utilization of water resources in the production process through systematic reports in constructing wastewater treatment plants. Online
modifications achieving higher efficiency in wastewater recycling. By addressing the specific characteristics of monitoring systems are installed at discharge points and regularly
overflow water resources in certain process segments an innovative "graded recovery and cascaded utilization" model inspected by environmental authorities.was designed. Through front-end overflow recycling and back-end resource allocation the dynamic water balance Wastewater 1276.65 tons
within the plant helps the plant save 180000 tons of water annually providing a reusable water-saving efficiency path Hazardous waste
for the Company's green transformation.Non-hazardous waste: Chemical raw material barrels are collected
and reused by manufacturers. Rubber scrap generated during
production is recycled by certified companies and certain non-
hazardous sludge is sent to brick factories as raw material.Materials management Solid Hazardous waste: The Company strictly adheres to national
waste hazardous waste management regulations and entrusts qualified
Zhonghong Medical reduces consumption at the source by incorporating hazardous waste disposal companies for proper treatment.In 2024
green design replacing outdated equipment strengthening maintenance
optimizing production processes and recycling waste. These measures
lower the consumption of raw materials and packaging materials. The Further Reading18533.02 tons
Company also explores eco-friendly alternatives to conventional materials
Packaging material consumption
adds green certification requirements into procurement and prefers suppliers For more information on pollutant emissions refer to the Zhonghong Medical Annual
with certifications for green products and the ISO 14001 environmental Report 2024.management systems.
21 222024 Sustainability (ESG) Report
Guilin HBM implements environmental upgrades on production lines Case Green Offices
In 2024 Guilin HBM replaced the chlorine-based process with coating technology to reduce chlorine-related
environmental impacts. For sterilization the company switched from ethylene oxide (EO) sterilization to electron beam Upholding sustainability principles we promote a green low-carbon culture advocate green commuting and reduce our
(EB) sterilization minimizing EO’s environmental impact. operational carbon footprint. Through extensive employee environmental training we foster employee environmental awareness
to create a greener workplace.AO biochemical wastewater treatment
Green offices Electricity saving
We promote electronic contracts and paperless We purchase high-efficiency air conditioners
off ice systems such as the OA system and set the temperature to no lower than 26°C
electronic financial archives enterprise resource in the summer.planning (ERP) system HR management
system and customer relationship management We enforce strict office electricity management
(CRM) system to minimize paper use. When ensuring lights are switched off after working
necessary double-sided printing is encouraged. hours.Guilin HBM AO biochemical wastewater treatment process We advocate video conferencing to reduce We have upgraded the lighting system with
carbon emissions from business travel. energy-saving and eco-friendly fixtures.Our Scope 1 emissions primarily result from the combustion of fossil fuels including coal gasoline diesel natural gas and coke
oven gas. Scope 2 emissions arise from indirect emissions associated with purchased electricity and steam.Green commuting Green culture
We have insta l led EV charging p i les at We organ ize campaigns on eco log ica l
production sites and parks to encourage the conservation energy conservation and carbon
In 2024 use of new energy vehicles. reduction and host activities such as tree
planting and waste sorting.We encourage employees to commute via
public transportation shared bicycles and other
green modes of travel.Total GHG emissions Scope 1 GHG emissions
818075.31 tCO2e 9453.28 tCO2e
Carrying out the “Embracing Low-carbon Development and a Greener Future” campaign Case
GHG emissions intensity Scope 2 GHG emissions
In May 2024 during China’s National Energy Conservation Week Zhonghong Medical launched activities on low-carbon
3.3300 tCO e/RMB 10000 808622.03 tCO e development and environmental protection in the Company’s five major production sites through promotional posters 2 2
and WeChat account fostering a strong culture of green development production and lifestyles.
23 242024 Sustainability (ESG) Report
02
Customer First:
Creating an
Outstanding Brand
Putting customers at the center Zhonghong Medical reinforces
product quality control and fosters a responsible supply chain.Through an efficient customer service response mechanism we
elevate customer satisfaction while systematically mitigating
potential risks in quality supply chain and customer service.Customer needs are translated as a driver for product innovation
and service improvement which helps enhance brand resilience and
set a quality benchmark.Contributions to UN SDGs
25 262024 Sustainability (ESG) Report
Product Quality
We partner with pharmaceutical regulators to complete multiple rounds of medical device
compliance inspections and promptly addresses identified issues to ensure product safety
Product quality and safety are fundamental to businesses and a solemn commitment to the health of the public. Upholding the
and compliance.quality concept of “strict quality control standards enforcement” we instill a strong quality awareness in every employee. From raw
material procurement and production processes to final product inspection we take rigorous measures at every stage. Through a Zhonghong
Medical We collaborate with quality inspection and management certification agencies to conduct series of meticulous quality control measures we deliver safe high-quality and reliable medical products to our customers. annual risk assessments of internal product quality and compile risk reports according to
legal requirements ensuring continuous improvement in quality management.Strict quality management We conduct internal quality audits and management reviews as per the Internal Audit
Control Procedure and the Management Review Control Procedure to maintain the
effectiveness and continuous improvement of the quality management system.Following multiple legal requirements Zhonghong Medical has In 2024
developed a quality guarantee and management system including Third-party agencies are hired for 52 product tests as required by customers in China the
procedures such as the Product Monitoring and Measurement U.S. Europe and Japan with tests covering multiple international standards and regulations
Control Procedure and the Corrective and Preventive Measure Control 100% to ensure that our products meet the needs and regulatory requirements of different
Procedure. We leverage digital means to upgrade quality management markets.Business operated under the quality
and seek cooperation with third-party agencies for audits and
management system certification for
oversight. We have successfully obtained certifications such as the
five consecutive years
U.S. FDA certification EU CE marking ISO 9001 quality management
systems ISO 13485 medical device quality management systems and
the Medical Device Single Audit Program (MDSAP) guaranteeing full 100%
compliance with international product standards. During the reporting
Pass rate in 52 external quality audits The company has established quality goals and policies and assigned them to the
period no major quality incidents occurred. production R&D and procurement departments with dynamic annual performance
The Company has implemented the Medical Device Product Recall Control Procedure the Advisory Notice and Adverse Event assessments and clear scope of quality responsibilities to build a full-value-chain quality
Control Procedure and the Product Information Disclosure Control Procedure. These measures ensure a full-process management culture.mechanism from risk identification and early warning response to traceability and recall. During the reporting period no product Guilin HBM If there are quality issues with the product the company will designate personnel to resolve
withdrawals or recalls occurred. issues investigates causes and implements targeted measures to improve product quality
effectively and track problem resolution.Guilin HBM recognized for “2024 quality benchmark best practice” Case The company has developed the Medical Device Recall Control Procedure to ensure
systematic tracking of defective products risk warnings and proactive recalls ensuring full
lifecycle quality monitoring.Guilin HBM has developed digital quality management under the
“discrete intelligent manufacturing model.” By integrating information MedRena has set up designated quality management positions such as the quality
systems smart production equipment and refined management department manager and management representative to shoulder responsibility for the
processes the model has achieved full-process quality monitoring quality system ensuring executive-level support and effective implementation of quality
from raw material procurement to finished product delivery. This management.approach has significantly enhanced product consistency and
stability ensuring reliable quality for customers. In August 2024 Guilin MedRena has established a set of quality indicators including the pass rate of rawHBM received the national honor of “2024 quality benchmark best materials on the assembly line sample pass rate annual raw material pass rate open-practice” setting an industry example with distinctive digital quality MedRena box pass rate annual defect rate and product direct pass rate and integrated them into
management expertise. quarterly and annual performance assessments to drive continuous quality improvement
and effectiveness.MedRena conducts regular internal and external quality management evaluations in
line with quality management system requirements successfully passing two external
evaluations during the reporting period.
27 282024 Sustainability (ESG) Report
Zhonghong Medical Quality Management System Flowchart Quality training for employees
As a guardian of product quality and safety in the medical industry Zhonghong Medical enhances employees’ quality management
Regulatory requirements for Management skills through systematic training programs solidifying the Company’s quality defense.medical devices responsibilities Quality policy
Quality objectives Quality planning Internal communication Quality management training
Resource Human Infrastructure Work
management resources environment Supportive process
Zhonghong Medical MedRena
Zhonghong Medical invites external experts to provide MedRena has formulated quality management
in-depth training on EU medical device regulations and training plans covering quality personnel’s quality
the U.S. 21 CFR 820 regulation covering topics such awareness and defect-handl ing processes
Main process of product realization as design and development production control quality to improve employees’ exper tise in quality
control and procurement control. management.Product realization process
Customer-related processes
Product realization Procurement
Determination of product
Process planning Guilin HBM
requirements Supplier Finished Products
Contract review evaluation and product Manufacturing delivery Guilin HBM implements thorough product quality
selection inspection
Communication and processing management training across the full chain coveringwith customers （Where plasticization inspector responsibilities raw material acceptanceQuality of forming is a special p roduct ion process contro l f in ished productformation plan process） inspections and customized products. The training
emphasizes operation standards testing techniques
and record integrity to meet the quality management
requirements of the medical device industry.MedRena’s training on product quality management
Measurement analysis and improvement processes
Guilin HBM hosts quality inspection skills competition Case
Monitoring and measurement
Identification and In July 2024 Guilin HBM organized
Unqualified implementation of a skills competition for 34 product
Customer product necessary amendments quality inspectors from the quality
Internal Process Product
satisfaction Feedback control Corrective department . The event combined
audit monitoring monitoring
evaluation actions t h e o r e t i c a l k n o w l e d g e a n d
Data analysis Precautions hands-on practice significantly
enhancing the skills of inspectors
to guarantee product quality.
2930
Meeting customer requirements and regulatory requirements for medical devices
Improvement
Design
Development2024 Sustainability (ESG) Report
Responsible Supply Chain On-site supplier evaluations Case
Under Zhonghong Medical’s supply chain risk management system the Company identifies risks and implements targeted In 2024 Zhonghong Medical
strategies to improve supply chain continuity transparency and resilience. Meanwhile we accelerate the digitalization and green conducted on-s i te audi ts of
transition of the supply chain. Through stringent supplier selection evaluation and engagement mechanisms Zhonghong Medical suppliers’ quality management
promotes ESG capability-building with upstream and downstream players fostering a responsible and sustainable value chain. systems assessing production
e n v i r o n m e n t s e q u i p m e n t
c o n d i t i o n s a n d e m p l o y e e
practices. During the process we
Supplier management identified problems and asked
suppliers to address them for
better supply quality and CSR
According to the Supplier Management Control Procedure the Company has established a In 2024 performance ensuring supply
comprehensive supplier management process which includes regular supplier qualification chain stability and reliability.reviews performance assessments and risk assessments. These efforts guarantee that our 958
suppliers are qualified and perform well supporting the Company’s stable operations and business
compliance. Total suppliers
Zhonghong Medical requires suppliers to sign the following CSR- In 2024
Supplier management process containing documents: Supplier Code of Conduct Suppliers
Social Responsibility Audit Checklist and Supplier Commitment 0
for Compliance and Continuous Improvement of Social
Potential suppliers disqualified due to social
Responsibility. Environmental and social responsibility clauses
Supplier access Supplier evaluation responsibility non-complianceare incorporated into supplier contracts to urge suppliers to
shoulder social responsibilities with specified penalties for non-
We list potential suppliers that meet technical and quality We conduct specialized audits of suppliers whose compliance reinforcing long-term stable partnerships. 0
requirements for raw and auxiliary materials as qualified results serve as a reference for supplier assessment and Suppliers with their contracts terminated due to
supplier candidates. collaboration adjustments. social responsibility non-compliance
We conduct on-site evaluations and sample testing of We perform annual supplier evaluations based on
potential suppliers and distribute the Supplier Survey/ supplyinspections supply performance and capability Supplier social responsibility requirements
Evaluation Form to verify their qualifications production continuous supply quality return or exchange situations
capacity environmental measures and social responsibility and material stability.practices. Then we engage in trial cooperation with
tentatively approved suppliers who once approved by We conduct comprehensive reviews of qualified suppliers
the Company will be included in the qualified supplier to reevaluate their credentials quality systems and
management file. problem rectification. The results combined with the
annual evaluation of supply quality are reflected in the Employee rights Environmental protection Health and safety
Supplier Annual Audit Report.Compliance with national and Compliance with national and local Compliance with nat ional and
local labor laws international labor environmental protection laws and local health and safety laws and
Supplier retention and exit standards and industry regulations regulations regulations
We continue collaboration with suppliers offering sound Employment contracts signed with ISO 14001 environmental ISO 45001 occupational health and
materials and services and possessing technological employees management systems certification safety systems certification
expertise as they can contribute to the Company’s Prohibition of child labor and forced Implementation of energy-saving Emergency response plans for
growth. labor and emission reduction measures employee health and safety
We issue a Notice on Time-limited Rectification to a n d t h e p ro m o t i o n o f g re e n Reasonable and compliant working Provision of necessary protective
suppliers with significant quality or service deficiencies productionhours wages and benefits equipment
and prepare an evaluation report for suppliers failing to Proper handling of medical waste
meet the rectification deadline. Following reviews their Zero tolerance for workplace to ensure compliance R e g u l a r o c c u p a t i o n a l h e a l t h
contracts will be terminated. discrimination and harassment checkups and safety training
31 322024 Sustainability (ESG) Report
Based on the Procurement Control Procedure Zhonghong Medical implements a transparent and standardized procurement By conducting comprehensive supplier training Zhonghong Medical aims to raise suppliers’ technical and management
management framework. We integrate procurement governance into the ESG framework and adopt digital means to build a capabilities. The training focuses on quality management green production and business compliance. We also promote the
sustainable supply chain. During the reporting period all procurement personnel signed the Integrity Commitment. sharing of technological resources and supply chain collaborative innovation to improve suppliers’ competitiveness and our ESG
performance.Zhonghong Medical’s transparent procurement system
Supplier training and guidance
We adhere to six principles: openness and transparency standardization collective decision-
Transparent making smooth processes supervision and information sharing. The Company ensures
procurement compliance and efficiency in procurement activities through full-process information The Brand Management Department manages information dissemination and oversees
policy disclosure long-term effective institutional design collective decision-making processes and communication channels and the departments involved to prevent unauthorized misleading
elimination of any rent seeking. promotions.Technical standards We encourage suppliers to participate in industry exchanges and apply the latest technological
training advancements to produce high-tech and more competitive products.Transparent The procurement process covers five key links: demand confirmation multi-dimensional
procurement supplier evaluation contract negotiation order tracking and acceptance/payment.process Standardized procedures strengthen supply chain control.We provide targeted training on potential quality issues in production for suppliers to ensure that
they master quality control methods and techniques.Quality control We encourage suppliers to adopt advanced testing equipment and methods to improve accuracy
We integrate modules for information release electronic workflows and contract management and efficiency in product quality testing.realizing separate access and data security. training
Transparent We release procurement information via the platform to encourage fair competition among
procurement suppliers effectively reducing costs and preventing corruption.platform
We enable full-process digital data-based procurement management allowing the Company We introduce best practices and lessons in environmental regulations labor rights occupational
to grasp accurate supplier information improve procurement efficiency and enhance overall health and safety and business ethics to enhance suppliers’ awareness of social responsibility.performance.CSR training
Responsible supply chain initiatives
Zhonghong Medical maintains sufficient communication with suppliers to inform them of our demands and expectations Premium Service
accurately. Emphasizing supplier training and guidance we host regular exchanges and share industry experience and best
practices for better supplier management and product quality. Through these efforts we grow together with suppliers and
Prioritizing customer communication Zhonghong Medical has established a customer service system to respond swiftly to
establish long-term stable partnerships with them.customer needs. With dedicated technical support and after-sales teams the Company delivers all-around tailored solutions and
offers efficient professional and considerate services to customers worldwide contributing to the advancement of healthcare.Supplier communication
Higher service quality and efficiency
In 2024
To optimize customer service processes Zhonghong Medical upgrades the 99.87%
customer relationship management (CRM) system and launches extensive Customer satisfaction rate
distributor training to bolster product consultation services. The Company
Phone calls WeChat Industry On-site visits Supplier
also equips medical professionals with the correct usage of medical products
Online meetings Emails exhibitions and Regular face-to-face management
ensuring safer healthcare for patients. 103
SMS forums meetings system Distributor training sessions
Social media
33 342024 Sustainability (ESG) Report
Hosting the 2024 product promotion conference Case Protection of customer rights
In April 2024 Zhonghong Medical hosted a product promotion conference in Shanghai bringing together over 150 Zhonghong Medical has established the Customer Feedback Control In 2024
distributor representatives nationwide. The event recognized and rewarded top-performing distributors for their Procedure Customer Complaint Control Procedure and Customer Property
outstanding contributions to market expansion and customer service. This conference strengthened communication Control Procedure. Accordingly we make continuous efforts to improve
between the Company and distributors propelling both sides to continue cooperation for high-quality clinical products the complaint-handling process for the timely resolution of customer 100%
and services. complaints. Upholding responsible marketing we implement customer Customer complaint resolution rate
information protection mechanisms to safeguard customers’ legitimate
rights and interests.Training on medical product usage Case
The Brand Management Department manages information dissemination and oversees
communication channels and the departments involved to prevent unauthorized misleading
Using medical products properly is critical to promotions.patient safety and treatment efficacy. In 2024
Zhonghong Medical conducted a training Our rigorous information review mechanism follows the principles of “review before release”
session on the usage and precautions of infusion and “case-by-case approval.” Information is scrutinized based on the scope of information
pumps demonstrating practical applications dissemination to guarantee accuracy and prevent false or exaggerated claims.and operation procedures. This event helped Responsible
healthcare professionals use infusion pumps marketing We use product information and labeling in accordance with uniform standards covering brand
correctly guaranteeing safe and effective clinical name logo slogan and packaging design to prevent consumer confusion caused by inconsistent
applications. or incorrect labeling.A dedicated team oversees the confidentiality of customers' proprietary technologies software
product specifications designs and drawings ensuring that such information is not disclosed
externally without customers’ authorization.CRM system enhances customer service capabilities
Customer During internal communications we refer to customers by their abbreviations and full customer
privacy names are not displayed throughout the processes. Additionally the CRM system restricts access
protection to customer data.Data-driven service Integrated Increased
improvement workflow for investment in greater efficiency customer service
Multiple complaint channels are available with dedicated personnel responsible for collecting and
The data cockpit provides real-time We have combined mul t ip le By integrat ing the enterpr ise documenting customer complaints.and accurate statistics related to workflows including contracts resource planning (ERP) system A transparent and efficient complaint resolution process is in place for the swift investigation
key customer service indicators. pr icing stamping and credit accounts and adopting the CRM Customer of complaint causes and effective rectification. We also issue CAPA (corrective and preventive
The statistics help us identify management which reduces system we reduce costs and complaint actions) reports addressing customer grievances.service weaknesses and potential internal communication costs and reallocate money saved to enhance
issues for t ime ly dec is ions accelerates response to minimize customer services providing more handling
enabling ongoing improvement of customer waiting time. value-added services to customers
service processes and quality. and improving overall customer
experience.
35 362024 S环u境sta、in社ab会ilit及y (公ES司G治) R理ep（oErtSG）报告Committed to the talent concept of “leveraging Contributions to UN SDGs
03 Company-Employee Collaboration employees’ strengths and hiring exceptional talent” Zhonghong Medical regards employees as the driving force of corporate growth. The Company refines human Securing a Bright Future resource management systems to protect fundamental
employee r ights. We also offer diverse career
development opportunities and promotion pathways to
attract and nurture top talent. Prioritizing employee well-
being and safety we strengthen democratic management
and employee care which improves employees’ cohesion
and their sense of belonging.
37 382024 Sustainability (ESG) Report
Employee Rights Employee number by gender age and region
Devoted to creating a fair open and inclusive workplace Zhonghong Medical continuously improves the Company’s policies on 311 444 231443
recruitment compensation performance assessment and democratic communication. This helps improve standardized and
science-based HR management fully protect employees’ legitimate rights and interests and better employee retention.Compliance in employment
Zhonghong Medical strictly adheres to Chinese laws and regulations In 2024 2785 3473 4205
such as the Labor Law and the Labor Contract Law and international
conventions including the International Bill of Human Rights the Universal 4228
Declaration of Human Rights and the Convention on the Rights of Persons
Total employees
with Disabilities. The Company has established internal policies such as
Number of domestic employees
the Employee Recruitment Control Procedure and the Employee Handbook Number of male employees Employees under 30 years old
to standardize hiring processes define recruitment criteria and expand 173 Number of female employees Employees aged 30-50 Number of overseas employees
recruitment channels ensuring fair just and transparent hiring practices. Ethnic minority employees
Employees over 50 years old
We participate in large-scale job fairs at universities to engage with to-be-graduates and
showcase the Company’s growth potential corporate culture and job opportunities. Labor rules
Campus
recruitment We host on-campus recruitment sessions to provide a detailed overview of the Company’s
business career paths and benefits offering students a clearer in-depth understanding of We have formulated the Human Resource Management Measures In 2024
Zhonghong Medical and attracting those who meet the Company’s requirements. and the Control Procedure of Prohibiting Forced Labor and oppose
discrimination based on gender age ethnicity region marital status Passed the factory inspections by BSCI
or religious beliefs. The Company says no to child labor forced
labor and workplace harassment or abuse while upholding the Passed the SMETA audit for supply chain
principle of equal pay for equal work and protecting women’s right
social responsibility
We select outstanding students through summer internships and university-enterprise to fair employment. In overseas markets we hire local people and Internship
collaboration programs with high-performing interns given priority for full-time job comply with local labor laws and regulations in recruitment and HR
program Obtained the WRAP certification for opportunities. management to protect the rights of local employees. During the social responsibility
reporting period there were no significant labor disputes or human
rights-related complaints.We have set up a “join us” section on the Company’s official website to provide detailed job
listings responsibilities and qualifications. Zhonghong International implements
Online Caselocalized employment overseas
We employ social media platforms such as WeChat Weibo and Douyin to share job postings
channels and corporate culture.We partner with leading job sites and medical industry platforms to publish open positions. In 2024 Zhonghong International achieved
localized employment by hiring residents in
project regions. All new hires in the United
States Kazakhstan Chile Tunisia Thailand
We encourage employees to recommend qualified candidates to improve recruitment and Malaysia were locals.Internal efficiency.channels
We select and transfer technical and managerial professionals internally.WRAP gold certification
39 402024 Sustainability (ESG) Report
Compensation and benefits Development and Training
Zhonghong Medical offers competitive salaries accompanied by robust mechanisms for incentives and restrictions. The Company Zhonghong Medical has introduced a set of internal policies including the Employee Evaluation Management Measures Career
has implemented the Employee Evaluation Management Measures Employee Incentive Program and Management Measures Development Management Rules Training Management Measures and Performance Assessment Management Measures. We
for Compensation Assessment of Middle-level Managers. Under our performance assessment system employees’ salaries are also optimize the employee training system and team-building to help employees improve their skills. Additionally our fair and
aligned with their position capability and performance. Employees are entitled to remuneration work safety social insurance just evaluation system and incentive mechanism and clear career pathways for employees drive the shared growth between
other benefits and a full range of statutory leaves including sick leave personal leave marriage leave maternity and paternity individuals and the Company.leave and parental leave.Employee training In 2024
Democratic management
Zhonghong Medical has revised the Training Management Measures. Given RMB 224800
the Company’s development strategies we have created a diversified training
Zhonghong Medical respects employees’ rights to freedom of association and collective bargaining. Under the Democratic Total training investmentframework that includes orientation professional skills enhancement and
Management System the Company promotes democratic management underpinned by the Workers' Congress to engage management improvement. Supported by internal lecturers and external
employees in democratic management and supervision. We have set up a labor dispute arbitration and mediation committee with experts a multi-tiered multi-channel online learning platform delivers both 403 Training sessions
mediation and supervision offices to collect report and address issues on human rights performance and career advancement. online and offline training on leadership development professional skills and
Employees are encouraged to engage in corporate decision-making and management. A labor union has been formed and reached general knowledge for all business sectors and staff at all levels. % Training coverage
formal agreements with the Company on working conditions compensation and benefits and occupational health and safety with 66.84
a collective contract signed with all employees.New employee orientation 案例
Employee care
In September 2024 Zhonghong Medical
launched a new employee orientation campZhonghong Medical’s employee management pivots around improving employee well-being and satisfaction. Each year the themed “Gathering Talent at Zhonghong LeadingCompany assists staff in need through the Presidential Fund and pays a visit to employees on holidays. We organize a variety the Future.” The training program spanned key
of team-building activities offer psychological counseling and put in place the “Staff Home” enriching employees’ lives and business areas such as brand management
supporting their physical and mental health. corporate culture strategic planning compliance
safety HR policies and professional image and
conduct. It aimed to familiarize new hires with
the Company and corporate culture quickly and
improve their professionalism.Chairman delivers the opening speech of the training camp
Career advancement
Given the Company’s development strategy Zhonghong Medical has built a “dual-channel” career development model closely
aligned with the personal growth of employees. Such a complete career promotion mechanism fully recognizes and motivates
employees further reinforcing our talent team.In terms of talent selection the Company identifies and recommends young professionals. We have formulated the Job
Descriptions for Zhonghong Medical Subsidiaries and Departments to clearly define the responsibilities of each position and
provide clear guidance for talent selection and training. At the same time we have finalized science-based and rigorous selection
rules such as the Frontline Official Selection Methods and the Management on Selection and Appointment for Middle-Level
Management Posts to explore train and appoint front-line and middle management talent which supports the Company’s high-
quality development.
41 422024 Sustainability (ESG) Report
Zhonghong Medical’s “dual-channel” career development Work safety
Management channel Professional channel In strict compliance with Chinese laws such as the Law on Work Safety and In 2024
Fire Control Law the Company enforces accountability for work safety with the
Measures for the Management of Work Safety and the Three-Year Action Plan for
Management ladder Support ladder Technical ladder Marketing ladder
Fundamental Work Safety Improvement (2024–2026). We have implemented a RMB 1.9895 million
dual-control mechanism combining risk classification and hazard identification to Investment in employee work
Chief engineer maintain a safe workplace for employees.Expert Expert injury insurance
Middle management Deputy chief engineer
Strengthening organizational structure
Senior manager First level engineer Key account manager
We have formed a work safety leadership team a dual-prevention system 23116
Grassroots management Commissioner Second level engineer Marketing manager building task force and an occupational health management arm. Total participants
Staff involved in safety training
Ensuring accountability
Occupational Health and Safety We have signed the 2024 safety responsibility agreement with all 79554
departments adopted a “dual responsibility per role” policy and Total hours of safety training
incorporated the number of work injuries occupational diseases and
Putting employees’ health and safety first the Company strengthens the occupational health and safety management system
safety accidents into management performance assessments.launches safety culture campaigns and education programs and implements safety management on occupational diseases and
hazardous chemicals to prevent and address risks. During the reporting period no major safety incidents were reported. 51
Emergency drills
Safeguarding occupational health Identifying risks and hazards
We have formulated the Risk Classification and Control Plan and
Emergency Response Manual for Special Equipment Accidents and
Following the Law on the Prevention and Control of Occupational Diseases In 2024 hold regular hazard identification. Before holidays and during the Safety 10922
and other Chinese laws Zhonghong Medical has formulated the Occupational Month we carry out work safety inspections and work safety compliance
Guilin HBM was awarded the title of Total participants in safety drills
Disease Prevention System and Occupational Disease Hazard Warning and checks.Notification System. These policies form a robust occupational health and “Occupational Healthsafety framework to identify control and eliminate occupational health hazards Champion of Guilin”.ensuring employees’ health. Fostering a safety culture 0
Work-related fatalities over
We organize at least one company-wide safety training session each year the past three years
to ensure all employees are equipped with safety knowledge and skills
We conduct training sessions on We fully assess occupational health We provide pre-job on-the-job and which improve their safety awareness and emergency response.occupational health knowledge hazards in our production process exit health checkups for employees
and campaigns on occupational including annual evaluations of exposed to occupational hazards %
disease prevention. occupational disease hazards and with individual occupational health 0
classification of risk factors and records. Targeted control measures Enhancing protection Work-related fatality rate
produce the List of Occupational are developed based on health over the past three years
Diseases by Position Exposure to checkup results.help improve working conditions. We have formulated the PPE Management Policy distributed protective
gear and conducted regular inspections and maintenance of protective
equipment.
43 442024 Sustainability (ESG) Report
04
Social Contribution:
Sharing Development
Fruits
Shouldering the new missions of the new era Zhonghong Medical
leverages its strength to expand the accessibility of medical
products promote industry cooperation and development and
undertake social responsibilities of giving back to communities
and contributing to harmonious community building. The Company
takes concrete actions to share development fruits with society and
drives high-quality sustainable development.Contributions to UN SDGs
45 462024 Sustainability (ESG) Report
Medical Accessibility Product accessibility
Advocating the concept of inclusive health Zhonghong Medical is poised to meet the protection needs of the medical industry and
strives to be the most all-round supplier of medical gloves in China. Taking into consideration the local economy market and medical Dutch Company
levels the Company is committed to improving the accessibility and affordability of medical products. As a V-level customer rated by
China Export & Credit Insurance Corporation we contribute more quality products and better services to the world.Group Headquarters
Tangshan Production Base
Shanghai Company
Expanding our presence Guilin Production BaseTunisia
Jiujiang Production Base
Yichun Production Base American Company
Hong Kong Company
In 2024 Kazakhstan Thailand Shenzhen Production BaseHainan Company
80 The production base in Southeast Asia+ is under construction
Countries and regions where our products are sold including North America
Europe and Japan etc. Singaporean Company
Chile
3000+
Hospitals with newly established and stable cooperation in China
(including national or provincial benchmark hospitals)
450 Production Baseapprox
Overseas clients
Product portfolio
In response to the China's bulk-buying policy Zhonghong Medical with its excellent product quality and reasonable pricing
strategies has been engaged in several bulk-buying projects nationwide and established cooperation with several new hospitals.To address the challenges brought by the elimination of price difference in national bidding and purchasing subsystems we
attract more potential customers through innovative products and services further enhancing our product presence. In 2024 Health protection Safe infusion Innovative incubation
10 new products were launched including food-contact nitrile gloves sterile dispensing syringes and precision filter light-proof
infusion sets in an effort to benefit people around the globe with more innovative medical products.Medical examination Infusion sets Infusion pumps
gloves Syringes Syringe pumps
Implementing overseas self-construction projects Case Medical surgical Indwelling needles Enteral nutrition pumps
gloves
Blood collection tubes Medical sensor consumables
Medical radiation
To improve supply stability Zhonghong Medical after long-term research and investigation finally decided to Nasal oxygen cannula and lead wiresprotection gloves
build the glove production line in the Southeast Asia region.These projects will enhance our cooperation with local Sterilized connectors DS50 Series workstations
Non-medical
partners and improve our position in the industry while helping improve the local medical device industry and
protective gloves Disposable nebulizers
Digital temperature
increasing product accessibility in the world. management solutions
Polyisoprene gloves …… Disposable medical temperature
Condoms sensors
Finger cots ……
……
47 482024 Sustainability (ESG) Report
Focusing on specific needs Promoting health concepts
To satisfy the needs of specific groups and scenarios Zhonghong Medical has developed several medical products that fill the Zhonghong Medical participates in various academic exchanges and industry forums etc. where we share our successful
technological void in China offering safe practical and economical medical devices through its outstanding sci-tech innovation experience and conduct in-depth discussions with scholars to help improve the industry's medical services. We push health
capabilities.` knowledge to the public through our official website WeChat official account and other media platforms promoting standardized
use of medical devices and health protection concepts.Medispo protein non-detectable
In 2024
The gloves use the industry's advanced
decomposition and detachment technology 15 WeChat articles and videos on WeChat Channels posted on average every monthof protein to fully reduce allergens and lower 3
risks for people allergic to latex. Covering diverse health knowledge including the standardized use of medical devices asthma prevention and treatment
nasal health and allergy tips
Medispo radiation protection gloves Medispo KBD gloves
With high performance in radiation The gloves use the positive charge
protection the gloves are suitable for generation technology to protect healthcare
radiation intervention and diagnostic professionals while reducing incision
procedures protecting healthcare infections. They are suitable for high-risk
professionals from radiation exposure. surgeries susceptible to infection.Medispo polyisoprene gloves Huadum high barrier Condom
The gloves are made of ultra-soft With a three-layer protection structure it In March 2024 we attended the 2023 Congress of Chinese In August 2024 we participated in the 28th Operating Room Nursing Academic Conference of Chinese Nursing Association
polyisoprene no natural rubber latex effectively prevents HIV penetration and Association of Anesthesiologists to exchange with top domestic
and international experts in anesthesiology responding to the new requirements from the Healthy China
suitable for people allergic to latex. transmission. initiative for the development of nursing
Reducing medical costs
While ensuring product quality Zhonghong Medical saves raw materials and reduces costs through automation and technological
transformation which enhances the price competitiveness of our products to better meet the needs of customers in different
markets. Sales of gloves and condoms have achieved year-on-year growth. In light of overseas market conditions per capita
income and healthcare levels we have set differentiated and reasonable prices that align with local conditions. We submit bids
for projects from local governments and with affordable product pricing with an aim to enhance health awareness of people in
emerging markets and developing countries. In 2024 protection gloves were sold in several markets including North America
Europe Asia South America Oceania and Africa.In September 2024 we joined the 29th Annual Meeting
of Chinese Society of Anesthesiology to share academic In October 2024 we participated in the Medical Japan Tokyo to
achievements discuss future trends in the healthcare industry with our peers
49 502024 Sustainability (ESG) Report
Open Cooperation
Zhonghong Medical maintains close contact with well-known universities and research institutions in China and helps organize
various academic exchange activities building bridges for industry-university-research cooperation; we highly value the
development of a digital ecosystem and actively establish digital connections with partners to achieve information sharing
and deep business collaboration. Additionally we participate in domestic and international exhibitions positively contributing
to technological innovation industry standards and market channels. We also assist in formulating and improving industry
standards to ensure the development of the industry in a standardized and orderly way.公The 4益9th ARA慈B HEAL善TH in Ja nuary 2024 公Chin益a Interna慈tional M善edical E quipment Fair (CMEF) in April 2024
We participated in 49 domestic and international We launched the first 2024 Zhonghong Medical
exhibitions and academic conferences reaching Product Promotion Conference establishing
out 4000+ customers. cooperative relationships with multiple domestic
and international business partners.We led the drafting of the industry standard The We participated in the formulation of the
Quota of Energy Consumption per Unit Products recommended national standards Natural
for Latex which passed the review by the China Rubber Latex Cleanroom Gloves Nitrile
Rubber Industry Association. Cleanroom Gloves Single-use Rubber Gloves
for General Applications and the obligatory
national standard Medical gloves safety
technology requirements.MEDICA in Germany in November 2024 RUSSIAN HEALTH CARE WEEK in December 2024
Charity
Zhonghong Medical continues to fulfill its social responsibilities through disaster relief and material donations etc. We encourage
employees to actively participate in community volunteer activities caring and helping community residents through practical
Industry association Membership actions.Standing council member Zhonghong Medical supports 2024 college graduates from Luannan Tangshan for themed practice
Case
China Rubber Industry Association
In February 2024 Zhonghong Medical supported more
Chinese Chemical Society Member than 40 representatives of 2024 college graduates from
Luannan Tangshan to carry out the practice themed
Hebei Emergency Industry Alliance Vice chairman member "Young Geese Return to Build Luannan". Through on-site
visits and introduction they got to know the production
Safety and Health Protection Products Committee of process of nitrile gloves and truly felt our booming
China Textile Business Association Member development and nice working environment. We hope to
guide more young people to find a job in their hometown
Malaysian Rubber Glove Manufacturers Association Member thus contributing to the development of a young and (MARGMA) prosperous city.
51 522024 Sustainability (ESG) Report
05 Governance Improvement:
Strong corporate governance is the core safeguard for sustainable Contributions to UN SDGs
corporate development and it is also a critical element in navigating
the complexities of the market environment and earning stakeholder
Laying a Solid Foundation trust. Zhonghong Medical upholds the bottom line of business ethics and compliance continuously enhancing governance mechanisms. We
strengthen internal controls and risk management improve operational
of Development transparency and accountability and also track and respond to stakeholder
expectations. These initiatives ensure the steady and high-quality growth
of the Company.
53 542024 Sustainability (ESG) Report
Corporate Governance In 2024
We convened 4 Extraordinary and annual General Meetings of Shareholders 8 Board meetings
Zhonghong Medical strictly adheres to Chinese laws and regulations including the Company Law Securities Law Code of and 7 Meetings of the Board of Supervisors.Corporate Governance for Listed Companies and the Rules Governing the Listing of Shares on the ChiNext Market of Shenzhen
Stock Exchange. Accordingly we build a transparent responsible and efficient governance mechanism to continuously enhance
the effectiveness of corporate governance. We convened 2 Strategy and Sustainability Committee meetings 4 Remuneration Appraisal and
Nomination Committee meetings and 14 Audit Committee meetings.Governance structure
All meetings were in compliance with the Rules Governing the Listing of Shares on the ChiNext
Zhonghong Medical has established a management structure comprising the General Meeting of Shareholders the Board of Market of Shenzhen Stock Exchange and the rules of procedure within their scope of authority.Directors the Board of Supervisors and the Management in accordance with the Articles of Association Rules of Procedure for
the General Meeting of Shareholders and Rules of Procedure for the Board of Directors. The General Meeting of Shareholders
is the highest authority of the Company while the Board of Directors is the highest governance body reporting regularly to the
former. The Board of Supervisors oversees the lawful operation of the Company and the performance of duties by management.Each body performs its respective functions and operates in a coordinated manner. The Board of Directors has established Investor relations
specialized committees including the Strategy and Sustainability Committee the Remuneration Appraisal and Nomination
Committee and the Audit Committee which are responsible for internal tasks related to sustainability management evaluation Zhonghong Medical is committed to standardized
decision-making and auditing of company development matters. During the reporting period the Company revised and updated operations and works to establish a sound internal
the Articles of Association and its appendices procedural rules for specialized committees and other regulations in accordance management systems related to information disclosure. In 2024
with the No. 3 Guideline for the Supervision of Listed Companies—Cash Dividend Distribution of Listed Companies (Revised 2023). The Company has revised and issued the Investor
Relations Management System and the Information
Zhonghong Medical governance structure We have published reports announcements Disclosure Management System. We maintain open 155
communication channels through online calls emails and other documents released on the Shenzhen Stock
meetings and the Shenzhen Stock Exchange's "Easy Exchange.Shareholders Meeting IR" platform. The Company also organizes offline
roadshows investor meetings and on-site visits
proactively releasing important information about the
Board of Supervisors Board of Directors Company's strategy major issues operational status and
financial performance. Following a long-term stable and
transparent profit distribution policy we actively protect
Strategy and Sustainable Remuneration Appraisal
Board of Auditors the rights to information and returns for shareholders
Development Committee and Nomination Committee especially minority shareholders.The Management
Prudent Operations
The Board of Directors consists of nine members including three independent Further Reading
directors and two female directors. The directors have extensive experience Zhonghong Medical deeply implements the principle of governing the enterprise according to the law and strictly adheres to the
in fields such as industry finance law and corporate management and
For more information about company requirements of the Company Law the Anti-Monopoly Law the Anti-Money Laundering Law the Anti-Unfair Competition Law
possess the necessary knowledge skills and qualities to perform their governance and financial information and other relevant Chinese laws and regulations. The Company strengthens the synergistic role of compliance auditing and risk
duties. Their selection considers various factors including age gender please read the Zhonghong Medical Annual control in governance to achieve deep integration of business development and compliance management.educational background and professional experience ensuring scientific Report 2024 or visit our Company website:
decision-making and governance. The Board of Directors and the Nomination
Committee regularly review evaluate and report on the Board's independence.Independent directors issue special meeting review opinions on significant https://www.zhonghongmedical.com/ Compliance internal control and risk management
company matters and submit a Performance Report. The number of Board list-49-1.html
members as well as their composition and qualifications comply with Zhonghong Medical integrates legal compliance and risk prevention throughout its main line of production and operations and
legal regulations and the requirements of the Articles of Association. Board reconstructs the risk and compliance management system to promote high-quality corporate development.members attend Board meetings and General Meetings of Shareholders in
compliance with regulations regularly participate in training to learn about the
latest legal and regulatory requirements exercise their powers lawfully and
make prudent decisions.
55 562024 Sustainability (ESG) Report
Compliance management Audit control
The Company tracks the latest legal and regulatory requirements strictly conducts business within the scope defined The Board of Directors has established an Audit Committee to lead and supervise internal audit work reviewing
by the Articles of Association and registers accordingly to ensure that its operations always remain within the bounds the internal audit work reports and work plans each quarter. The Company has conducted seven internal audit
of the law. projects and undergone four external audits and inspections. We strictly implement the audit rectification system
emphasizing root cause management increasing follow-up and supervision efforts and incorporating rectification
In line with the principles of honesty mutual benefits and fair competition the Company internalizes external results into performance evaluations to continuously improve the effectiveness of addressing audit findings.regulations establishes clear boundaries and thresholds aligns job responsibilities and review processes and opposes
any form of unfair competition or other violations. Throughout the year there were no major legal compliance risk The Company maintains an internal control mechanism where each party performs its duties assumes its
events or significant lawsuits or administrative penalties resulting from unfair competition. responsibilities and provides mutual checks and balances. We increase testing efforts in key business areas and
critical processes. At least once a year the Company conducts a self-evaluation of internal controls issues an
We embed compliance requirements into process controls supporting business decisions based on compliance Internal Control Evaluation Report and submits it to the Board and the Audit Committee for review.reviews. We coordinate specialized support in specific areas such as legal affairs tax capital operations and data
compliance to ensure that all necessary reviews are conducted. This ensures that the Company's decisions are legal The Company regularly maintains internal control documentation and has revised the Internal Control Management
and compliant supporting lawful operations and rights protection. Manual (2024). We optimize control standards and procedures improve operational efficiency and strengthen cross-
departmental compliance reviews to prevent and mitigate operational risks.We continuously optimize compliance management assessments and evaluations enforcing strict accountability and
supervision. We clarify the reporting and response requirements for legal compliance risk events and major compliance
risk events and strengthen compliance monitoring.IPR protection
Zhonghong Medical consistently implements the requirements of Chinese laws and regulations such as the Trademark Law
Risk management and the Patent Law respecting and protecting the intellectual property rights (IPRs) of others while ensuring that our own IPRs
are properly managed and maintained. The Company standardizes the development of our IPR management system promptly
registers patents for latest research achievements and ensures that the use of trademarks fonts software and other elements
Focusing on key risks in compliance investment and operations the Company has restructured our risk
complies with contractual authorization requirements. During the reporting period WE did not encounter any major infringement
management organizational framework and formulated five core risk management systems including the
or IPR disputes. Regular IPR training is conducted for employees and warning emails are sent to regulate employee behavior and
Comprehensive Risk Management System and Compliance Risk Management Guidelines to solidify the top-level
prevent infringement risks.design of risk management.The Company strengthens the risk management process and accountability mechanisms standardizing pre-event
in-event and post-event control mechanisms. We have established a "three-level 28-category" risk database and
reviewed optimized and re-engineered 82 processes covering key areas such as sales procurement expenses and
contracts thereby integrating risk management with business process workflows.The Company emphasizes closed-loop management of risk assessment monitoring early warning and response.We optimize the monthly risk monitoring report mechanism and continuously enhance the Company's risk resilience
by expanding sales channels extending production bases strengthening quality management and organizing
compliance risk training.The Company strengthens digital empowerment by integrating digital control measures into key processes gradually
advancing the graphical and visual representation of risk controls thereby effectively enhancing the effectiveness of
risk management. In 2024
225 Patents obtained in total including
Compliance awareness and education 63 Invention patents
Each year directors supervisors and senior management participate in compliance training organized by regulatory Hengbao Health passes the review of the GB/
bodies. The Company organizes company-wide training on legal compliance management and the restructuring T 29490-2013 Intellectual Property Management 120 Utility model patents
of the risk control and compliance system. External lawyers are invited to conduct legal education organize legal System certification.seminars and analyze typical cases enhancing our risk control and compliance awareness and performance
capabilities. 42 Design patents
57 582024 Sustainability (ESG) Report
Business Ethics Key Performance Table
Zhonghong Medical adheres to the principles of fairness and justice regulating its business conduct according to codes Economic
of commercial ethics. The Company organizes a variety of integrity culture activities to ensure that the ethos of honesty
responsibility and integrity supports the Company's steady and long-term development. Indicator Unit 2024
Anti-corruption Revenue RMB million 2456.6507
Total assets RMB million 7230.3608
Integrity building is an essential element for a company to achieve coordinated stable and high-quality development. Zhonghong
Medical strictly complies with anti-corruption and anti-commercial bribery laws and regulations. In accordance with the Employee Owner's equity RMB million 5620.6856
Code of Professional Ethics and the Integrity Risk Prevention Manual the Company enhances its management systems and
policies related to integrity prohibits employees from engaging in any form of bribery and strengthens the constraints and Total profit RMB million -66.9034
supervision of power implementation to prevent incidents of corruption embezzlement and bribery. An open reporting email and
hotline are available encouraging customers employees suppliers and others to report misconducts to the Supervision Office via Net profit RMB million -85.8304
email letter or face-to-face meetings ensuring the confidentiality and proper handling of whistleblowers and their reports. Net profit attributable to shareholders of
Zhonghong Medical places great emphasis RMB millionthe parent company -87.1289
on building a culture of integrity. Externally
the Company establishes fair and positive
cooperative relationships with partners Environmental
industry associations and other external
organizations strengthening the prevention Indicator Unit 2024
and control of integrity risks in key areas. All Total investment in environmental
purchasers are required to sign the Integrity RMB million 10.0882protection
Commitment Letter. Internally the Company Total GHG emissions tCO2e 818075.31
fosters an atmosphere of integrity through
various means such as sending internal Scope 1 GHG emissions tCO2e 9453.28
emails and official notifications distributing
educational materials on integrity organizing Scope 2 GHG emissions tCO2e 808622.03
integrity warning education activities and
encouraging employees to sign integrity GHG emission intensity tCO2e/RMB 10000 3.3300
commitments and recite family values that
3
promote integrity. These efforts continuously Total wastewater discharged m 2553541.44
enhance employees' abi l i ty to ident ify "Promoting Integrity in Family Values Building Goodwill Families" integrity education activity
Total industrial wastewater m3 2330200.54
corruption risks and their awareness of
business integrity. Total domestic wastewater m3 223340.90
Information security Total waste ton 3041.05
Total hazardous waste ton 1276.65
Zhonghong Medical strictly adheres to the Law on Guarding State Secrets Cybersecurity Law Consumer Rights Protection
Law and other relevant laws and regulations concerning information security and personal privacy protection. The Company Intensity of hazardous waste ton/RMB 10000 0.0052
implements its Network and Information Security Management Regulations and strengthens organizational leadership in network
security work. We also regularly organize inspections and evaluations and have established a comprehensive accountability Total non-hazardous waste ton 1764.40
mechanism. Besides participating in cybersecurity drills we regularly conduct security vulnerability scans and risk assessments
Intensity of of non-hazardous waste ton/RMB 10000 0.0072
of network equipment and systems and continuously monitor the operational status of security devices such as firewalls and
intrusion detection systems. The Company has developed an emergency response mechanism for security incidents which Total energy consumption tce 247903.11
enables a regular backing up and storage of important data with detailed data recovery plans in place. The Company strictly
prohibits sharing or transferring important business information and personal privacy data to other companies organizations or Coal consumption ton 1619.48
individuals without regulatory approval and consumer consent. Through cybersecurity knowledge training the Company promotes
basic network knowledge virus prevention and information confidentiality enhancing employees' ability to identify prevent and Gasoline consumption L 6578.66
handle network security risks.
59 602024 Sustainability (ESG) Report
Indicator Unit 2024 Indicator Unit 2024
Diesel consumption L 59997.43 Employees from ethnic minorities headcount 173
Natural gas consumption m3 346615.00 Investment in work-related injury RMB million 1.9895
insurance for employees
Consumption of coke oven gas m3 6026192.00
Coverage rate of work-related injury % 97.28insurance
Purchased electricity MWh 363324.69
Work-related fatalities over the past
headcount 0
Steam consumption ton 2019403.85 three years
Direct energy consumption tce 5401.93 Work-related fatality rate over the past % 0three years
Indirect energy consumption tce 242501.18 Employee training expenditure RMB 224800
Energy intensity tce/RMB 10000 1.0091 Employee training sessions time 403
Clean energy usage MWh 3751.00 Total employees trained headcount 2826
Total water consumption ton 2541786.74 Employee training coverage rate % 66.84
Domestic water consumption ton 304806.94
Total hours of employee training hour 13219.80
Industrial water consumption ton 2236979.80
Total tax payment RMB million 46.7684
Water resource utilization intensity ton/RMB 10000 10.3466
Total suppliers - 958
Percentage of products that need to be
withdrawn and recalled due to health % 0
and safety reasons
Social Customer complaint resolution rate % 100
Indicator Unit 2024 R&D investment RMB million 98.3142
Proportion of total R&D investment to
Total employees headcount 4228 %main business revenue 4.00
Male headcount 1443 R&D personnel headcount 516
Female headcount 2785 Proportion of R&D personnel % 12.20
< 30 years old headcount 444 Total invention patents - 63
30-50 years old headcount 3473 Number of invention patent applications - 10
> 50 years old headcount 311 Number of authorized invention patents - 6
Number of valid patents - 225
Note: The Company pays work-related injury insurance for all employees except for retired and rehired employees.
61 622024 Sustainability (ESG) Report
Governance Index
Indicator Unit 2024
2024 GRI Content IndexTotal directors headcount 9
Total female directors headcount 2 Zhonghong Medical has prepared this report in accordance with the GRI Standards for the Statement of use
period from January 1 2024 to December 31 2024.Total independent directors headcount 3
GRI 1 used GRI 1: Foundation 2021
Stock pledge ratio % 0
GRI Standard Disclosures Page/remark
Shareholders' meetings held time 4
2-1 Organizational details 3
Announcements and reports etc. released on the - 155 2-2 Entities included in the organization’s sustainability reporting About This Reportexchanges
2-3 Reporting period frequency and contact point About This Report
Amounts involved in data security incidents RMB million 0 2-4 Restatements of information No restatements of information during the reporting period
Number of major litigation arbitration and other Lack of information/incomplete - 0 2-5 External assurancerisk events involved (No external assurance )
2-6 Activities value chain and other business relationships 3-6、31-36
Percentage of directors trained in anti-commercial
% 100 2-7 Employees 39-40
bribery and anti-corruption
2-8 Workers who are not employees 39-40
Percentage of management personnel trained in
%100
anti-commercial bribery and anti-corruption 2-9 Governance structure and composition 55
2-10 Nomination and selection of the highest governance body 55
Percentage of employees trained in ant-
%100
commercial bribery and anti-corruption 2-11 Chair of the highest governance body 55
2-12 Role of the highest governance body in overseeing the
GRI 2：General management of impacts 55
disclosures 2021
2-13 Delegation of responsibility for managing impacts 55
2-14 Role of the highest governance body in sustainability reporting 9
2-15 Conflicts of interest See Zhonghong Medical Annual Report 2024 for details
2-16 Communication of critical concerns 55
2-17 Collective knowledge of the highest governance body 55
2-18 Evaluation of the performance of the highest governance body 55
2-19 Remuneration policies 55
2-20 Remuneration policies 55
2-21 Annual total compensation ratio Confidentiality restrictions (Trade secrets)
2-22 Statement on sustainable development strategy 2
2-23 Policy commitments 19、39、55
2-24 Embedding policy commitments 56
2-25 Processes to remediate negative impacts 31-36、41
2-26 Mechanisms for seeking advice and raising concerns 41
2-27 Compliance with laws and regulations 56-58
63 642024 Sustainability (ESG) Report
GRI Standard Disclosures Page/remark GRI Standard Disclosures Page/remark
2-28 Membership associations 51 3-3 Management of material topics 22
GRI 2：General 305-1 Direct (Scope 1) GHG emissions 23、60
disclosures 2021 2-29 Approach to stakeholder engagement 11-12 305-2 Energy indirect (Scope 2) GHG emissions 23、60
2-30 Collective bargaining agreements 41
305-3 Other indirect (Scope 3) GHG emissions Lack of information /incomplete
3-1 Process to determine material topics 10-11 GRI 305: Emissions
(No data and will improve in the future)
GRI 3: Material Topics 305-4 GHG emissions intensity 23、60
2021 20163-2 List of material topics 11
305-5 Reduction of GHG emissions Lack of information /incomplete (No data and will improve in the future)
Economic 305-6 Emissions of ozone-depleting substances (ODS) N/A (No ODS emissions)
3-3 Management of material topics 59 305-7 Nitrogen oxides (NOx) sulfur oxides (SOx) and other See Zhonghong Medical Annual
significant air emissions Report 2024 for details
205-1 Operations assessed for risks related to corruption 59
GRI 205 Anti- 3-3 Management of material topics 22
corruption 2016 205-2 Communication and training about anti-corruption 59 306-1 Waste generation and significant waste-related impacts 22policies and procedures
306-2 Management of significant waste-related impacts 22
205-3 Confirmed incidents of corruption and actions taken 59 GRI 306: Waste 2020
306-3 Waste generated 22、60
3-3 Management of material topics 56
GRI 206 Anti- 306-4 Waste diverted from disposal 22、60
competitive Behavior 206-1 Legal actions for anti-competitive behavior anti-trust 56 306-5 Waste directed to disposal 22、60and monopoly practices 3-3 Management of material topics 32
Environmental GRI 308： 308-1 New suppliers that were screened using environmental
criteria 32
3-3 Management of material topics 21 Supplier Environm
308-2 Negative environmental impacts in the supply chain and 32-34
GRI 301 Materials 301-1 Materials used by weight or volume 21 actions taken
2016 301-2 Recycled input materials used 21 Social
301-3 Reclaimed products and their packaging materials 21 3-3 Management of material topics 39
Confidentiality restrictions
3-3 Management of material topics 20 401-1 New employee hires and employee turnover (Due to confidentiality requirements GRI 401: disclosure is omitted)
302-1 Energy consumption within the organization 20、60-61 Employment 2016 401-2 Benefits provided to full-time employees that are not
Lack of information /incomplete provided to temporary or part-time employees
41
302-2 Energy consumption outside of the organization (No data and will improve in the future)
GRI 302 Energy 2016 401-3 Parental leave 41
302-3 Energy intensity 61 3-3 Management of material topics 43
302-4 Reduction of energy consumption 20-21 403-1 Occupational health and safety management system 43
302-5 Reductions in energy requirements of products and 403-2 Hazard identification risk assessment and incident 43-44
services 20-21 investigation
403-3 Occupational health services 43-44
3-3 Management of material topics 21-23
GRI 403： 403-4 Worker participation consultation and communication
303-1 Interactions with water as a shared resource 21-23 Occupational Health on occupational health and safety 43-44
and Safety 2018
303-2 Management of water discharge-related impacts 22-23 403-5 Worker training on occupational health and safety 44GRI 303: Water and
403-6 Promotion of worker health 43-44
Effluents 2018 303-3 Water withdrawal 21
403-7 Prevention and mitigation of occupational health and
303-4 Water discharge 22、60 safety impacts directly linked by business relationships
403-8Workers covered by an occupational health and safety
303-5 Water consumption 21、61 management system 43
65 662024 Sustainability (ESG) Report
GRI Standard Disclosures Page/remark Content Index of the Self-Regulatory Guidelines No. 17 for Companies Listed on
： Shenzhen Stock Exchange—Sustainability Report (For Trial Implementation) GRI 403 Occupational 403-9 Work-related injuries 44
Health and Safety
2018 403-10 Work-related ill health 43 Dimension No. Topics Corresponding terms Page
3-3 Management of material topics 42
1 Climate response Articles 21 to 28 23
404-1 Average hours of training per year per employee 62
GRI 404：Training and 404-2 Programs for upgrading employee skills and 2 Pollutant discharge Article 30 22
Education 2016 transition assistance programs 42-43
404-3 Percentage of employees receiving regular 3 Waste disposal Article 31 22
performance and career development reviews 42-43
： 3-3 Management of material topics 39
Ecosystem and biodiversity
GRI 405 Diversity and 4 Article 32 N/A
Equal Opportunity 405-1 Diversity of governance bodies and employees 39-40
protection
Environmental
2016 405-2 Ratio of basic salary and remuneration of women Confidentiality restrictions 5
Environmental compliance Article 33 19
to men (Trade secrets) management
GRI 406：Non-discri 3-3 Management of material topics 40 6 Energy utilization Article 35 20-21
406-1 Incidents of discrimination and corrective actions
mination 2016
taken No related cases 7 Water resources utilization Article 36 21
GRI 408：Child 3-3 Management of material topics 40
Labor2016 408-1 Operations and suppliers at significant risk for
8 Circular economy Article 37 21、24
incidents of child labor No related cases
9 Rural vitalization Article 39 N/A
GRI 409：Forced or 3-3 Management of material topics 40
Compulsory Labor 409-1 Operations and suppliers at significant risk for 10 Social contributions Article 40 47-52
2016 incidents of forced or compulsory labor
No related cases
3-3 Management of material topics 52 11 Innovation Article 42 13-16
GRI 413: Local 413-1 Operations with local community engagement Ethics of science and
impact assessments and development programs 52 12 technology Article 43 N/ACommunities 2016
413-2 Operations with significant actual and potential
negative impacts on local communities 52 Social 13 Supply chain security Article 45 31-34
： 3-3 Management of material topics 32GRI 414 14 Equal treatment of SMEs Article 46 55
Local Communities 414-1 New suppliers that were screened using social criteria 32
2016 414-2 Negative social impacts in the supply chain and 15
Product and service safety
actions taken 32-34 and quality
Article 47 27-30、34-35
3-3 Management of material topics 34 16 Data security and customer Article 48 36、59
GRI 416： 416-1 Assessment of the health and safety impacts of privacy
Customer Health and product and service categories 34-35 17 Employees Article 50 39-44
Safety 2016 416-2 Incidents of non-compliance concerning the health
and safety impacts of products and services No related cases 18 Due diligence Article 52 31-32、56-58
3-3 Management of material topics 36
417-1 Requirements for product and service information 36 19 Stakeholder engagement Article 53 11-12GRI 417： and labeling Sustainability-related
governance
Marketing and 20 Anti-commercial bribery and 417-2 Incidents of non-compliance concerning product Article 55 59No related cases anti-corruption
Labeling 2016 and service information and labeling
417-3 Incidents of non-compliance concerning marketing 21 Fair competition Article 56 56-57
communications No related cases
3-3 Management of material topics 36
GRI 418：
418-1Substantiated complaints concerning breaches
Customer Privacy 2016 No related cases
of customer privacy and losses of customer data
67 68Outlook for 2025
In 2024 Zhonghong Medical made solid progress in ESG management and received several authoritative ESG awards in
recognition of our outstanding performance. Looking forward we will deepen our ESG strategy align with UN SDGs and explore
pathways to high-quality development steering the medical industry toward a more responsible future.We will leverage the leading role of innovation to invigorate the medical industry.In 2025 we will continue to build a full-value-chain digital management platform enabling smart monitoring of production
processes and optimized resource allocation. Based on our R&D system formed by Beijing Research Institute Shanghai Research
Institute (to be built) Yichun Research Institute Shenzhen Research Institute Guilin Research Institute and Hainan Subsidiary we
will focus on cutting-edge fields such as advanced materials and smart medical devices. We will also strengthen partnerships with
universities deepen industry-university-research-healthcare collaboration and develop AI-assisted medical devices to accelerate
the commercialization of research outcomes.We will embrace a low-carbon transition to set a new industry benchmark.In 2025 we will deepen our dual-carbon practices by piloting assessments of climate-related risks and opportunities.Comprehensive energy-efficient upgrades will be rolled out at our five major production sites in Tangshan Jiujiang Yichun Guilin
and Shenzhen. We will expand the use of renewable energy enhance waste recycling and strengthen pollutant management.These efforts are intended to promote green operations and minimize the lifecycle environmental impact of our products.We will build a shared ecosystem and expand collaboration networks
In 2025 we will foster a harmonious and caring workplace to strengthen team cohesion. We will tighten suppliers’ ESG
management and build a more resilient and responsible supply chain. Deeper cooperation with domestic and international
partners will help us deliver high-quality medical products and services to a broader population. We will also contribute to social
charity and community development as a responsible corporate citizen.We will cement our corporate foundation to support future growth
In 2025 we will refine our ESG management framework and system. This includes enhancing corporate governance structures
formulating a sustainability strategy improving communication with investors fostering a culture of internal control and
compliance and reinforcing our risk management mechanisms. Upholding business ethics we will elevate our corporate
governance.In 2025 a year when China concludes its 14th Five-Year Plan Zhonghong Medical will remain steadfast in delivering ESG
principles. Through innovation green practices governance reform and cooperation we will unlock new quality productive forces
and create lasting value for our shareholders employees customers and society.
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