Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced total carbon emission by approximately 22.1% compared with 2019. Reduced energy indirect GHG emission by 20.4% due to energy conservation measures.
• Reduced water consumption by approximately 21.6% compared with the previous year.

Social Achievements

• Provided sterilization services for medical masks/protective suits manufacturers during the COVID-19 outbreak, receiving commendation from the Beijing Pandemic Prevention Supplies Security Team and awarded the honour title of Advanced Unit for COVID-19 Pandemic Prevention and Control 2020.
• Organized 30 occupational safety training programs for all 425 employees.

Governance Achievements

• Maintained good corporate governance standards, complying with the CG Code except for code provision A.2.1 (separation of Chairman and CEO roles).

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic caused a significant decline in hospital traffic and decrease in sales volume of infusion sets, especially in major sales areas.
• Centralized procurement regime caused significant price reduction of industrial products, affecting sales price.
• Shortage of labor force and sterilization capacity for medical masks/protective suits during the pandemic.

Mitigation Strategies

• Optimized sales structure and marketing strategies, made flexible adjustments to tendering strategies.
• Implemented innovative and effective solutions for cost reduction and quality enhancement.
• Improved decision-making process by optimizing organizational structure.
• Reinforced management of its own industrial park and stayed vigilant for pandemic fight.
• Initiated a comprehensive upgrade and transformation project in the park.
• Strengthened control and management of cash flow.

Supply Chain Management

Responsible Procurement

• Regulations on the Management of Supplier Audit

Climate-Related Risks & Opportunities

Reporting Standards

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

Awards & Recognition

• Advanced Unit for COVID-19 Pandemic Prevention and Control 2020

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced GHG intensity (carbon dioxide equivalent in tons/m2) slightly from 0.11 in 2020 to 0.10 in 2021.
• Reduced hazardous waste from 3.90 tons in 2020 to 0.58 tons in 2021.
• Reduced PVC granules consumption by 10% and ABS plastics consumption by 11.8% compared to 2020.

Social Achievements

• Organized 24 occupational safety training programs for all 363 employees.
• Maintained a zero-tolerance policy towards any form of discrimination.
• Provided employees with additional benefits including canteens, fitness and entertainment centers, staff accommodation and communication allowance.

Governance Achievements

• Maintained good corporate governance standards in accordance with the CG Code (except for code provision A.2.1).
• Established three Board committees: Remuneration, Nomination, and Audit.
• Complied with relevant laws and regulations regarding emissions, employment, health and safety, labor standards, product responsibility, and anti-corruption.

Climate Goals & Targets

Environmental Challenges

• Double challenges of Delta and Omicron variants of COVID-19 globally impacting consumer demand.
• Decline in demand for daily medical consultation due to the pandemic.
• China's centralized procurement regime for medical consumables affecting ex-factory price and gross profit.

Mitigation Strategies

• Adjusted business strategies to enhance quality and efficiency of operation and development.
• Optimized sales structure and marketing strategies, adjusting tendering strategies guided by national centralized procurement policy.
• Strengthened cost control and enhanced marketing efficiency.

Supply Chain Management

Supplier Audits: Annual comprehensive evaluation of existing supplier partners.

Responsible Procurement

• Stringent screening of suppliers by procurement department, supported by technology, R&D, production, and quality management departments.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme wind events, rainstorm, fire, power disruption, staff safety during commute, risk of potential work-related injury in an unsafe environment created by emergencies.

Transition Risks

• Promulgation of energy saving and emission reduction policies, more stringent emission reporting obligation and compliance requirements.

Reporting Standards

Frameworks Used: Appendix 27 to the Listing Rules

Environmental Metrics

ESG Focus Areas

• Labor standards
• Health and safety
• Product quality
• Green production
• Supply chain management
• Product responsibility
• Intellectual property rights
• Anticorruption
• Social welfare

Environmental Achievements

• Reduced non-hazardous waste by 4.91% compared to 2021 (Fert Plant)
• Purchased a new vehicle meeting National Stage V Emission Standards (Fert Plant)
• Upgraded boilers with low-NOx burners at Ruijian Medical to reduce nitrogen oxide emissions
• Implemented various energy conservation measures at Ruijian Medical and Ruijian Biological

Social Achievements

• Organized 17 occupational safety training programs for 821 employees (2021: 24 programs, 363 employees)
• Organized more than 150 training programs with a total of 7,759 training hours (2021: 170 programs, 7,250 hours)
• Maintained a zero-tolerance policy towards discrimination
• Provided employees with additional benefits including canteens, fitness centers, and staff accommodation

Governance Achievements

• Established stringent measures for product manufacturing, storage, delivery, and recall
• Formulated a series of patent-related regulations and systems
• Implemented an anti-fraud policy and whistleblowing policy
• Included training on upholding integrity in the orientation training for new staff

Climate Goals & Targets

Environmental Challenges

• Challenges posed by the resurgence of the pandemic and suppressed demand for medical consultation
• Challenges from China's centralized procurement regime for certain medical consumables
• Transition risks related to energy-saving and emission reduction policies and stringent emission reporting obligations
• Physical risks including extreme weather events, fire, power disruption, and staff safety during commutes

Mitigation Strategies

• Adjusted tendering strategies to follow medical industry policies
• Implemented various energy conservation and emission reduction strategies
• Developed various mitigation policies, including emergency plans for production safety accidents, floods, and property security
• Strengthened water utilization monitoring and installed energy and water-saving equipment

Supply Chain Management

Supplier Audits: Annual comprehensive evaluation of existing suppliers

Responsible Procurement

• Stringent screening of suppliers based on product quality, delivery capability, product pass rate, and technology level
• Quality technical agreements with suppliers stipulating quality requirements and responsibilities

Climate-Related Risks & Opportunities

Physical Risks

• Extreme wind events
• Rainstorm
• Fire
• Power disruption
• Staff safety during commute
• Risk of work-related injury in unsafe environments created by emergencies

Transition Risks

• Promulgation of energy-saving and emission reduction policies
• Stringent emission reporting obligations and compliance requirements

Reporting Standards

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