Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental management
• Employee well-being
• Product quality and safety
• Supply chain management
• Corporate governance

Environmental Achievements

• Complied with environmental and occupational health and safety laws and regulations in China with no material incidents or complaints.
• Reduced VOC emissions to 0.033 tons.
• Reduced comprehensive sewage discharge to 8,328 tons.

Social Achievements

• Organized employee charity sale and donation.
• Maintained a 11.77% employee turnover rate.
• Provided 89 hours of health and safety training to 230 employees.

Governance Achievements

• Established an ESG work team.
• Obtained ISO13485:2016 Quality Management System Certification and the National High-tech Enterprise Certification.
• Implemented a share option scheme.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted business operations and revenue in the first quarter of 2020.
• Limited experience in marketing and sales of products.
• Future growth depends on the success of pipeline products.

Mitigation Strategies

• Resumed normal operations in March 2020 with protective measures.
• Established a dedicated in-house sales and marketing team.
• Actively advancing R&D of pipeline products.

Supply Chain Management

Supplier Audits: Annual supplier audits

Responsible Procurement

• Supplier Management Regulations
• Procurement Control Procedure

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: ISO13485:2016

Awards & Recognition

• National High-tech Enterprise Certification

Environmental Metrics

ESG Focus Areas

• Technology and innovation
• Talent development
• Occupational health and safety
• Product safety and quality
• Customer service
• Risk management
• Compliant operation
• Business ethics and anti-corruption
• Compliant employment
• Intellectual property protection
• Employee benefits and compensation
• Accessible healthcare
• Responsible supply chain
• Responsible marketing
• Information security
• Diversity and equality
• Energy management
• Climate change
• Emission management
• Packaging materials
• Water management
• Industry development and cooperation
• Community and public welfare

Environmental Achievements

• Improved energy management efficiency through various initiatives (e.g., temperature regulation, ecological mode for air conditioners, infrared lights)
• Optimized waste management, improving waste reuse capability
• Minimized negative environmental impact through strict implementation of environmental management systems and processes

Social Achievements

• Launched annual compliance training for all board members and employees (87% participation rate)
• Established “Jinpeng Talent Programme” and “Yinpeng Talent Programme” to attract and retain talents
• Implemented “Two Career Paths and Eighteen Ranks” talent development path and a “One Check, Two Paths, Three Programs” talent strategy
• Organized various employee activities to enrich their lives and enhance their sense of belonging
• No work-related injury cases and lost days due to work injury were recorded during the reporting period

Governance Achievements

• Established an orderly ESG governance structure with the Board as the top responsible body and an ESG work team for daily management
• Implemented policies such as the Code of Business Conduct and Ethics and the Policies on Employee Honest Practices to manage employee conduct and business activities
• Formulated Policies on Promotional Materials for Education of Medical Healthcare Professionals (HCPs) and Patients to standardize communication
• Established anti-corruption compliance standards and required agents to sign them
• Obtained ISO 27001 (Information Security Management System) and ISO 27701 (Privacy Information Management System) certifications

Climate Goals & Targets

Environmental Challenges

• Adverse impact of the COVID-19 pandemic on TAVI patient visits, physician proctoring, and supply chain
• Increased raw materials costs
• Fierce market competition

Mitigation Strategies

• Accelerated local sourcing of raw materials, increasing the domestic proportion and optimizing product costs
• Expanded market coverage through leveraging the performance of launched products and wide regional layout
• Carried out routine patient screening and referral to promote hospital penetration
• Developed a highly innovative steerable retrievable delivery system for the third-generation TAVI product

Supply Chain Management

Supplier Audits: Annual assessment on suppliers’ performance from the quality, price, delivery, and service aspects; on-site review, reference check and other assessments for key suppliers

Responsible Procurement

• Graded management for suppliers based on the importance of raw materials
• Requirement for key suppliers to provide third-party management system certifications and relevant qualification documents
• Online training about quality management for key suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, thunderstorms, floods, cold waves)

Transition Risks

• Response to medical policies
• Raw material supply
• Market competition
• Human resources

Reporting Standards

Frameworks Used: HKEX’s ESG Reporting Guide

Certifications: ISO 13485: 2016, GB/T29490–2013, ISO 27001, ISO 27701

Sustainable Products & Innovation

• Third-generation TAVI product with improved delivery system
• TMVR product with large orifice, low subvalvular height, and dry valve technology

Awards & Recognition

• German Red Dot Design Award
• A’ Design Award
• First Prize of Beijing Science and Technology Progress Award
• China Excellent Industrial Design Award
• “EDW” 2022 Shanghai Design Innovation Product
• Gold Award of “Annual Public Welfare Fund” from XinXin Heart (SIP) Foundation

Environmental Metrics

ESG Focus Areas

• Technology and innovation
• Product safety and quality
• Compliance
• Talent development
• Occupational health and safety
• Customer service
• Risk management
• Responsible supply chain
• Responsible marketing
• Intellectual property protection
• Employee benefits and compensation
• Accessible healthcare
• Diversity, equality and inclusion
• Energy management
• Climate change
• Emission management
• Packaging materials
• Water management
• Industry development and cooperation
• Community and public welfare

Environmental Achievements

• Reduced energy costs by nearly 50% compared to last year, saving nearly RMB3.8 million in total.
• Reduced electricity consumption by optimizing air conditioning system settings and strengthening air conditioning usage management.
• Reduced diesel usage due to the adjustment of office location.
• Reduced natural gas consumption by optimizing air conditioning system settings and strengthening air conditioning usage management.
• Modified the activated carbon adsorption device, increasing purification efficiency to 90%.

Social Achievements

• Successfully completed clinical cases of VitaFlow® III Retrievable Steering Delivery System and TMVR system.
• Improved employee satisfaction score to 4.24/5.
• Organised nine employee activities and three club campaigns.
• Provided a total of eight safety training sessions and implemented 12 fire escape drills and chemical leakage drills.
• No work-related injury cases were recorded.

Governance Achievements

• Established a three-tier ESG governance structure.
• Implemented a series of business ethics management initiatives and a mechanism for dealing with misconducts.
• Launched the Policies on Promotional Materials for Education of Medical Healthcare Professionals (HCPs) and Patients.
• Implemented the ISO 13485 Quality Management System Certification and ISO/IEC 17025:2017 CNAS Laboratory Proficiency Certification.
• Obtained ISO/IEC 27001:2013 (Information Security Management System) and ISO/IEC 27701:2019 (Privacy Information Management System) certifications.

Climate Goals & Targets

Environmental Challenges

• Significant net losses since inception.
• Sales currently mainly rely on a few commercial products.
• Future growth depends substantially on the success of pipeline products.
• Potential for severe adverse events affecting reputation.
• Challenges in expanding overseas business.
• Potential impairment of intangible assets.
• Market competition
• R&D project risks
• Raw material supply risks
• Human resources risks
• Climate change risks (transition and physical)

Mitigation Strategies

• Focus on business, increasing revenue, cutting costs, and reducing expenses to achieve breakeven.
• Advance international strategy through collaborations and registrations.
• Rapidly advance R&D of new products.
• Seek external cooperation to expand product portfolio.
• Enhance data collection to improve insight and decision-making.
• Strengthen full life cycle management of products and improve operational efficiency.
• Increase stock level in advance, develop alternative suppliers, and develop contingency plans.
• Deepen the learning of policies, laws and regulations, and actively communicate with regulators.
• Invest in R&D, product development, regulatory approval, and launch of new products.
• Develop differentiated products, keep abreast of the latest technologies, and adapt marketing strategies.
• Oversee and guide the implementation of dual carbon goals, improve capacity to cope with physical risks, and prepare emergency materials.

Supply Chain Management

Supplier Audits: 100% of key suppliers

Responsible Procurement

• Supplier selection and evaluation mechanism
• Procurement Framework Agreement
• Supplier Assessment Checklist
• Supplier Performance Tracking Sheet
• Commitment of Supplier for Corporate Social Responsibility

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Climate change increasing risk of unpredictable disease spreading

Transition Risks

• Policy and legal risks
• Technology risks
• Market risks
• Reputation risks

Reporting Standards

Frameworks Used: ESG Guide issued by The Stock Exchange of Hong Kong Limited

Certifications: GB/T 29490–2013 Intellectual Property Management System Certification, ISO 13485:2016 Quality Management System Certification, ISO/IEC 17025:2017 CNAS Laboratory Proficiency Certification, ISO/IEC 27001:2013 (Information Security Management System), ISO/IEC 27701:2019 (Privacy Information Management System), Safety Production Standardisation (Level III) certification

Awards & Recognition

• National Intellectual Property Advantageous Enterprise
• Shanghai Innovative Small and Medium-sized Enterprises
• Enterprises with Postdoctoral Innovation Practice Base
• Foreign-Funded R&D Centre
• Shanghai Science and Technology Little Giant
• Shanghai Enterprise Technology Centre
• Shanghai Enterprises with the Feature of Specialisation, Refinement, Uniqueness and Innovation
• Pudong New District Enterprise R&D Organisation
• 2023 Recommended Catalogue of Shanghai Innovative Products
• Recommended Catalogue of Innovative Drugs and Medical Products Drugs in Pudong New Area
• Shanghai Biomedical Catalogue of “New and Excellent Drugs and Medical Devices”
• China Excellent Industrial Design Award
• “EDW” 2022 Shanghai Design Innovation Product
• First Prize of Beijing Science and Technology Progress Award in 2021
• A’ Design Award and Competition
• German Red Dot Design Award