Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Innovation
• Quality and Integrity
• Talent Management
• Environmental Protection
• Community Engagement

Environmental Achievements

• Established an Environmental Policy Management System to continuously improve environmental management measures.
• Implemented measures for water management and waste recycling, reduced greenhouse gas emissions and improved energy efficiency.
• No material incident affecting the environmental and natural resources nor any punishment and litigation in respect to environmental regulations.

Social Achievements

• Established a Recruitment Management System to ensure fair and non-discriminatory working environment.
• Provided employees with regular training, including introductory training for new employees, skill training, professional and general skills training, compliance training, and training on health and safety.
• Organized cultural events for employees to alleviate work pressure and develop team work and cohesiveness.
• Made total donations of RMB9,227 thousand through RAH Charity Foundation.

Governance Achievements

• Established an ESG Committee to better identify and manage relevant risks in ESG and promote the efficient implementation of various ESG policies across the various departments.
• Implemented the Employee Code of Conduct and the Anti-Corruption Policy to ensure strict compliance with the relevant laws and regulations by our employees and agents.
• Developed employee whistleblowing and reporting procedures to prevent and handle illegal acts such as money laundering and corruption.

Climate Goals & Targets

Environmental Challenges

• Minimizing the impacts arising from the trend of global warming.
• Reducing employee turnover.

Mitigation Strategies

• Carried out inspection of greenhouse gas emissions and implemented measures to reduce emissions.
• Proactively conducted face-to-face interviews with departing employees to understand relevant reasons so as to enable corporate management improvements.

Supply Chain Management

Supplier Audits: 4264

Responsible Procurement

• Consideration of suppliers’ commitment to environmental and social responsibilities
• Requirement for vendors, suppliers, professional contractors and distributors to enter into Undertaking of Anti-bribery and provide the Letter of Compliance for the Year.
• Confidentiality agreements with suppliers for technical cooperation.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange Environmental, Social and Governance Reporting Guide

Environmental Metrics

ESG Focus Areas

• Innovation-Driven and Collaborative Cooperation
• Commitment to Quality and Integrity
• Talent Management
• Environmental Protection for a Green World

Environmental Achievements

• Passed third-party QA audit with zero mistake (guided by FDA standard)
• Manufacturing facility awarded Certificate of Good Manufacturing Practices (GMP) for Pharmaceutical Products of the People’s Republic of China
• No material incident affecting the environmental and natural resources nor any punishment and litigation in respect to environmental regulations during the year

Social Achievements

• Organized several activities such as the mid-autumn festival activity, 8th anniversary parties to enhance communication between colleagues and attachment to the company
• Offered various types of training program to employees, including internal training, external training, individual education in professional training organizations, exchanges with fellows and site-visits
• Implemented an annual performance appraisal system

Governance Achievements

• Established Anti-Corruption Policy, Expense Reimbursement Management System and Employee Code of Conduct
• Implemented a zero-tolerance policy towards any illegal act such as bribery, blackmail, fraud and money laundering
• Key employees and the Board attended anti-corruption training

Climate Goals & Targets

Environmental Challenges

• Intense competition in the market for anti-viral drugs
• Difficulty in obtaining regulatory approval for drug candidates
• Potential failure of drug candidates to achieve market acceptance
• Risks associated with in-licensing drug candidates
• Challenges in obtaining and maintaining adequate patent protection
• Difficulty in attracting and retaining senior management and key scientific employees
• Limited impacts on the Group’s business, such as research and development and sales activities due to COVID-19 pandemic

Mitigation Strategies

• Multiple measures for expansion of the annual ritonavir production capacity, including adding additional key equipment at the manufacturing facilities
• Various measures to minimize negative impacts of COVID-19 pandemic on operations and business activities
• Risk management is essential to the Group’s efficient and effective operation. The Company’s management assists the Board in evaluating material risk exposure arising internally and externally from the Group’s business, including operational risks, financial risks, regulatory risks, etc, and proactively setting up appropriate risk management and internal control mechanism which is embedded in daily operation management
• Various health and safety trainings to employees
• Implemented the hot weather allowance, heat illness training and UV-insulation film to reduce the heat gain and protect our employees from hot weather

Supply Chain Management

Responsible Procurement

• Commitment to environmental and social responsibilities, such as environmental, health and safety status
• Major suppliers are needed to sign the supplier’s commitment letter which promises that there is no child labor, no forced labor, zero-discrimination, anti-corruption and protect the rights and health of their employees, and they will consider the environmental risks in their value chain and eliminate any possible risk by reducing waste, unnecessary package and toxic material to achieve the goal of zero wastes and energy efficient.

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather

Reporting Standards

Frameworks Used: Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: Certificate of Good Manufacturing Practices (GMP) for Pharmaceutical Products of the People’s Republic of China

Awards & Recognition

• Top 10 Innovative Technology Enterprise in 2020
• Yuecheng District and Binhai New Area Talent Award
• Top 100 Chinese Innovative Biopharmaceutical Enterprises List – Top 30 Chinese Innovative Small Molecule Drug Enterprises
• Inclusion in the “Best of The Liver Meeting’s summary slide deck in the Viral Hepatitis category”

Environmental Metrics

ESG Focus Areas

• Innovation-Driven and Collaborative Cooperation
• Commitment to Quality and Integrity
• Talent Management
• Environmental Protection for a Green World

Environmental Achievements

• Reduced GHG emissions intensity (per pipeline) compared to 2021
• Reduced electricity consumption intensity (per pipeline) compared to 2021
• Reduced water consumption intensity (per pipeline) compared to 2021
• Reduced waste generation intensity (per pipeline) compared to 2021
• Saved 298,454 sheets of paper (approximately 3.2 trees)

Social Achievements

• Organized several activities for employees to alleviate work pressure and build teamwork
• Offered various types of training programs to employees (new employee orientation, professional qualification training, law and regulation training, general and management training)
• Implemented annual performance appraisal system
• Achieved zero infection of COVID-19 among employees
• Made total donations of RMB4,922,047.08 through different charitable foundations

Governance Achievements

• Established Anti-Corruption Policy, Expense Reimbursement Management System, and Employee Code of Conduct
• Implemented a zero-tolerance policy towards any illegal act such as bribery, blackmail, fraud and money laundering
• Board and key employees attended anti-corruption training
• Established Anti-fraud Whistleblowing Management Regulation

Climate Goals & Targets

Environmental Challenges

• Intense competition in the market for antiviral drugs
• Uncertainty in obtaining regulatory approval for drug candidates
• Dependence on successful development and approval of drug pipeline for financial prospects
• Potential for drug candidates to fail to achieve market acceptance
• Risks associated with in-licensed drug candidates and strategic alliances
• Potential for unsuccessful patent protection
• Difficulty in attracting and retaining senior management and key scientific employees
• Physical risks from extreme high temperature and water scarcity
• Transition risks from international climate change policy and regulatory requirements
• Stakeholder focus on climate-related issues

Mitigation Strategies

• Risk management is essential to the Group’s efficient and effective operation
• Management assists the Board in evaluating material risk exposure
• Proactively setting up appropriate risk management and internal control mechanism
• Implementing low carbon business
• Implementing various measures to protect employees from COVID-19
• Establishing water-saving measures
• Communicating with stakeholders to explain sustainability measures
• Publicly disclosing greenhouse gas emission data and efforts in low-carbon operations

Supply Chain Management

Responsible Procurement

• Supplier Quality Audit Procedure
• Commitment to environmental and social responsibilities from suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme high temperature
• Water scarcity

Transition Risks

• International climate change policy and regulatory requirements
• Stakeholder focus on climate-related issues

Opportunities

• Resources efficiency improvement

Reporting Standards

Frameworks Used: Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Awards & Recognition

• 2021 Drug Innovation award “Top 10 Pharmaceutical Innovation Leader of the Year ”
• Included in the MSCI China Small Cap Index
• First Prize of Zhejiang Province Technology Progress Award
• Top 100 Chinese Innovative Biopharmaceutical Enterprises List
• ASC42 research project included in Zhejiang Province “Pioneer ” Research Plan
• Best Small and Mid- Cap Company Award