Climate Change Data

Environmental Metrics

ESG Focus Areas

• Effect and management of the environment and natural resources
• Equal employment and rights & interests of employees
• Information security management
• Intellectual property protection
• R&D and quality safety
• Business ethics and anti-corruption

Environmental Achievements

• Passed occupational health evaluation and safety evaluation of the regulatory authorities and did not involve in any incidents of work safety-related violations or work-related injuries, no lost day was recorded.
• Zero work-related fatalities per year in the past three years including the Reporting Period.

Social Achievements

• Completed anti-corruption training for more than 20 employees.
• Organized various sports and team building activities, such as the 2021 badminton game.
• Organized employees’ birthday parties and sent out holiday gifts.
• Set up mother and baby rooms for female employees.

Governance Achievements

• Formulated Keymed’s Anti-Bribery and Anti-Corruption Principles and other regulations, and established a corresponding punishment mechanism.
• Established a smooth channel for reporting corruption and formulated the Anti-embezzlement Management Measures.
• Established a comprehensive and effective quality management system.

Climate Goals & Targets

Environmental Challenges

• Potential impacts on the environment and natural resources from the Company’s operation.
• Potential privacy and security risks in accessing data of medical institutions and individual patients during clinical trials.
• Climate change transition risks and policy risks.

Mitigation Strategies

• Formulated the Environmental Management Procedure, specifying the requirements and responsibilities of environmental protection management and control.
• Established a sound environment, health and safety (EHS) management system.
• Formulated corresponding production emergency plan, flood prevention and disaster prevention response measures.
• Formulated strict data protection policies in accordance with relevant regulations including Good Clinical Practice (GCP).
• Adopted an electronic data collection system to enable desensitization feedback.
• Identified and studied national plans and relevant policy guidelines for the goal of achieving carbon peak by 2030 and carbon neutrality by 2060.

Supply Chain Management

Supplier Audits: 825 suppliers audited

Responsible Procurement

• Procures raw materials and equipment from industry-leading and reputable manufacturers and suppliers.
• Formulated Procurement Management Regulations and Supplier Management Regulations.

Climate-Related Risks & Opportunities

Physical Risks

• Floods and other extreme weather

Transition Risks

• Stringent climate change control policies

Reporting Standards

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

Environmental Metrics

ESG Focus Areas

• Governance
• Social
• Environmental

Environmental Achievements

• Completed the first phase of a new plant in Chengdu with an additional production capacity of 16,000 L, compliant with cGMP of the NMPA and FDA.
• Applied a bioactive wastewater inactivation system, greatly reducing harmful substances from wastewater residues.
• Applied for the purchase of green electricity generated by hydroelectric power for use in commercial production plants.

Social Achievements

• As of December 31, 2022, the Company had 613 full-time employees, including over 240 in clinical development and operations and over 230 in manufacturing and quality control.
• Offered supplementary commercial medical insurance for its employees in Mainland China.
• Actively organized employees to participate in health and public welfare activities, including more than 20 employees volunteering in local communities and donating epidemic prevention materials.

Governance Achievements

• Established a solid ESG governance system, incorporating ESG-related work into the Audit Committee and directly supervised by the Board.
• Established the Data Protection and Privacy Office to coordinate privacy compliance efforts.
• Developed regulations such as Keymed’s Anti-Bribery and Anti-Corruption Principles, Fault Liability Regulations, and Marketing Compliance Manual.

Climate Goals & Targets

Environmental Challenges

• Minor delays in patient enrollment and data entry for certain clinical trials in China due to COVID-19 pandemic control policies.
• Power rationing in Sichuan caused by extremely high temperatures.

Mitigation Strategies

• Resumed normal patient enrollment and data entry for clinical trials.
• Organized an emergency response team and adopted emergency measures, such as renting power-generating vehicles, to minimize the impact of power rationing on production.

Supply Chain Management

Responsible Procurement

• Procurement Management Regulations and Supplier Management Regulations

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather conditions, such as cold waves, heat waves and floods

Transition Risks

• stringent policy on climate change controls

Reporting Standards

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

Environmental Metrics

ESG Focus Areas

• Environmental Impact Management
• Emission Management
• Resources and Energy Management
• Addressing Climate Change
• Equal Employment
• Employee Care
• Occupational Health and Safety
• Training and Development
• Community Contributions
• Supply Chain Management
• Compliance Operation
• Business Ethics
• Information Security and Privacy Protection
• Intellectual Property Protection
• R&D and Innovation
• Product Quality and Safety

Environmental Achievements

• Passed the ISO 14001 system certification and received the corresponding certificate.
• Named “Creditable Environmental Credit” unit by the environmental protection department for two consecutive years.
• Reduced wastewater discharge by implementing concentrated water recycling for injection water during production.
• Increased the percentage of domestic equipment by approximately 5%.

Social Achievements

• Formulated over 40 supplemental occupational health and safety regulations.
• Completed internal and external audits of the EHS system and obtained certification for ISO 45001 Occupational Health and Safety Management System.
• Achieved 100% safety training coverage rate.
• Actively participated in tree-planting activity in Chengdu Tianfu International Bio-town.
• More than 20 employees actively engaged in community public welfare activities, contributing approximately 120 hours.

Governance Achievements

• Established a solid ESG governance system and set up the ESG Working Group.
• Further refined its governance structure and formulated the Terms of Reference for the Environmental, Social, and Governance Working Group.
• Improved compliance management and strengthened the risk prevention and control system and integrity culture.
• Enhanced the privacy protection system by implementing measures such as collecting privacy information only for limited, clear and lawful purposes and completing Privacy Impact Assessments (PIA).

Climate Goals & Targets

Environmental Challenges

• Potential impacts of extreme weather events on production, impacting revenue and increasing operating costs.
• Risks posed by extreme weather conditions to upstream and downstream enterprises, ensuring the security of the supply chain.

Mitigation Strategies

• Formulating production emergency plan, flood prevention and disaster prevention response measures.
• Setting up an emergency response team and specifying the responsibilities of departments at all levels.
• Strengthening monitoring of extreme weather conditions and establishing communication channels with relevant government departments.
• Monitoring the risks posed by extreme weather conditions to upstream and downstream enterprises.

Supply Chain Management

Supplier Audits: 886 suppliers audited

Responsible Procurement

• Procurement Management Regulations
• Supplier Management Regulations
• Green procurement practices
• Increasing the utilization rate of domestic equipment and raw materials

Climate-Related Risks & Opportunities

Physical Risks

• Damage to production facilities and/or disruptions in the value chain associated with extreme weather conditions

Opportunities

• Usage of low-carbon or renewable energy sources
• Energy substitution or diversification

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, ISO 45001