Climate Change Data

Environmental Metrics

ESG Focus Areas

• Employment and Labour Practices
• Environmental Protection
• Community Investment

Environmental Achievements

• Obtained Chain of Custody Certification issued by the Forest Stewardship Council (FSC) for all A4 office papers.
• Encouraged clients to use e-books and apps to reduce paper consumption.
• Implemented waste recycling and donation programs.
• Implemented energy-saving measures in the office.

Social Achievements

• Established a Birthday Leave Policy granting one day of paid leave to all permanent full-time employees.
• Implemented family-friendly practices such as flexible working hours and work-from-home permits.
• Maintained a zero injury record in 2017.
• Provided over 13 internal and external training programs totaling 423 hours.
• 74% of employees received training.

Governance Achievements

• Established an Access Control Policy to ensure information confidentiality.
• Aimed to achieve ISO 27001 Information Security Management System certification in 2018.
• Invited the Hong Kong Independent Commission Against Corruption (ICAC) to host an anti-corruption talk for employees.
• Established a confidential whistle-blowing system.

Climate Goals & Targets

Environmental Challenges

• Minimizing environmental and social impacts of the business and its suppliers.
• Reducing greenhouse gas emissions from business travel.
• Reducing waste generation.

Mitigation Strategies

• Commissioned a carbon assessment to quantify greenhouse gas emissions.
• Encouraged employees to use virtual meetings and training to reduce travel.
• Implemented waste recycling and donation programs.
• Encouraged employees to reuse office stationery and use reusable containers and utensils.

Supply Chain Management

Responsible Procurement

• Preference for suppliers with environmental commitment (e.g., ISO 14001 certification).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SEHK's Environmental, Social and Governance Reporting Guide

Certifications: FSC Chain of Custody Certification

Sustainable Products & Innovation

• E-books and apps production services.

Awards & Recognition

• Caring Company Logo from the Hong Kong Council of Social Service (nine consecutive years).

Environmental Metrics

ESG Focus Areas

• Health accessibility
• Transparent business
• Environmental protection
• Targeted poverty alleviation and charity activities

Environmental Achievements

• Added 7 standardized Chinese herbal medicines cultivation bases, bringing the total to 53.
• Several subsidiaries achieved national-level "green factory" certifications (Tian Xin, Zhong Yi, Xing Qun, and HWBYS).
• WLJ Great Health Corporate Development Company modified boiler flue gas waste heat recovery, saving approximately 630,000 m³ natural gas per year.
• Guangxi Ying Kang implemented a Solar Hot Water Project, saving 20,700 m³ natural gas per year.
• Zhong Yi installed solar photovoltaic power generation equipment, generating 3,652,939 Kw/h of power.

Social Achievements

• 143 varieties of the Company's products were included in the 2018 National Essential Drugs List (new edition), including 9 new varieties.
• Invested over RMB 6,650,000 in targeted poverty alleviation, resulting in a 92% poverty reduction rate in three villages.
• Provided free physical examinations and other services for over 700 poverty alleviation cadres in Guangzhou City.
• Implemented employee stock ownership plan (ESOP).
• Carried out 1,223 times of health and safety training, covering 43,898 employees, with a total training time of 141,058 hours.

Governance Achievements

• Established a risk prevention and control oriented supervision system with special leading groups, monitoring groups, and oversight committees for five supervision projects.
• Revised Measures for the Management of Licensing and Authorization of Trademarks and Trade Names of GYBYS and other systems to ensure transparent cooperation and marketing.
• Implemented whistleblower protection policy.

Climate Goals & Targets

Environmental Challenges

• High drug prices and weak development of primary care hindering access to healthcare in poor areas.
• Complex regulatory requirements and high expectations regarding supply chain ethics.
• Talent scarcity and erosion, medical incidents related to product quality and safety, and social problems such as unfair resource distribution.

Mitigation Strategies

• Adopting a fair and reasonable pricing policy, actively supporting the development of primary care, and carrying out medical public benefit activities.
• Formulating social and environmental policies for suppliers, conducting regular supplier audits (1,645 times in 2018), and implementing a responsibility-based procurement policy.
• Strengthening talent cultivation, strictly controlling product quality, and increasing community investment.

Supply Chain Management

Supplier Audits: 1,645/year

Responsible Procurement

• Xian Cao Cultivation Entrustment and Purchase Agreement
• Targeted Poverty Alleviation by Co-building and Sharing Wang Lao Ji Herbal Tea Raw Material Base
• Standard Cultivation of Radix Isatidis

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, CASS-CSR4.0, Guide for Environmental Information Disclosure of Shanghai-listed Companies, Guiding Opinions on the Implementation of Corporate Social Responsibility by Central State-Owned Enterprises

Certifications: ISO 14001

Awards & Recognition

• 2017 Bronze Medal for Poverty Alleviation of Meizhou City (Xing Qun, Guang Hua, and Cai Zhi Lin)
• 2018 National Green Manufacturing System Integration Project (WLJ Green Design Platform)

Environmental Metrics

ESG Focus Areas

• Health accessibility
• Transparent business
• Environmental protection
• Sustainability foundation

Environmental Achievements

• Invested over RMB 30 million in environmental protection and energy saving.
• 5 companies obtained the national title of “green factory”
• 9 enterprises passed the creation of “provincial clean manufacturer”
• 15 enterprises passed the creation of “municipal excellent clean production enterprise”

Social Achievements

• Invested about RMB 1.70 million in targeted poverty alleviation, helping 27 villagers in 3 poor villages to get rid of poverty.
• 100% labor contract signing rate.
• 100% social insurance coverage rate.
• Organized various cultural activities and sports for employees.

Governance Achievements

• Strengthened accountability and promoted “3 nos” mechanism in anti-corruption work.
• Improved management system and established “simplistic rules” for “no corruption”.
• Improved supervision system and wove the “iron cage” locking “corruption”.
• Cultivated a team of discipline inspection and supervision, totaling more than 4,000 people.

Climate Goals & Targets

Environmental Challenges

• New medical reform policies hindered the development of the Chinese medicine industry.
• The “4 + 7” centralized drug procurement affected confidence in generic drugs.
• Uneven distribution of medical resources.
• Operating pressure from medical insurance control fees and tender price reductions.
• High drug pricing in some regions.
• Frequent cases of corruption in the medical field.
• Material suppliers with varying levels.
• Shortage of high-quality talents in the pharmaceutical industry.

Mitigation Strategies

• Improved R&D system and protected intellectual property rights.
• Participated in the revision of policies & regulations.
• Invested RMB 592 million in R&D and innovation.
• Added 7 types of medicine to the Essential Drug List.
• Established pharmacovigilance system.
• Set “recommended retail prices” for drugs.
• Strengthened the construction of Party style and clean government.
• Improved supervision over internal control.
• Promoted talent introduction project and strengthened internal training.

Supply Chain Management

Supplier Audits: 530 times

Responsible Procurement

• Review the qualification & scale, apparatus equipping, herb planting and QA system of supplier.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme climate events

Reporting Standards

Frameworks Used: GRI Standards, HKEx Guide for Environmental Information Disclosure of Shanghai-listed Companies, SSE Guide for Environmental Information Disclosure of Shanghai-listed Companies, Guiding Opinions on the Implementation of Corporate Social Responsibility by Central State-Owned Enterprises by SASAC

Certifications: GMP certifications of production workshops

Awards & Recognition

• Outstanding Contribution Award for Poverty Alleviation and Village Revitalization of Mei County District, Meizhou City

Environmental Metrics

ESG Focus Areas

• Employment
• Product Responsibility
• Use of Resources

Environmental Achievements

• Reduced greenhouse gas emissions by 29.35% to 103.45 tonnes.
• Reduced non-hazardous waste by 84.44% to 1.87 tonnes.
• Reduced total energy consumption by 8.10% to 154.17 MWh.

Social Achievements

• Achieved zero work-related injuries.
• Provided over 793 hours of employee training across 82 employees.
• Awarded the Certificate of the Good Employer Charter and the Manpower Developer Award.

Governance Achievements

• Established a confidential whistle-blowing system.
• No cases of non-compliance with laws and regulations related to employment, health and safety, product responsibility, or anti-corruption.
• Implemented a Green Procurement Guideline for supplier assessment.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting business operations and requiring adaptation to remote work.
• Civil unrest in Hong Kong and Sino-US trade disputes affecting the economy.
• Difficulty in providing on-site community service due to access restrictions.

Mitigation Strategies

• Implemented remote working infrastructure and flexible hours policy.
• Established preventive measures to protect employees and customers (protective equipment, etc.).
• Continued investment in technology to maintain operational stability and efficiency.
• Leveraged e-channels for printed matter replacement and adopted paperless listing practices.

Supply Chain Management

Supplier Audits: Semi-annual Supplier’s Performance Evaluation, annual questionnaire on security level.

Responsible Procurement

• Preference for suppliers with environmental commitments (e.g., ISO 14001 certification).
• Consideration of compliance with environmental legal requirements.
• Supplier Code of Conduct published on the company website.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 27001, FSC™ Chain of Custody Certification

Third-party Assurance: Not disclosed

Awards & Recognition

• Certificate of the Good Employer Charter
• Manpower Developer Award (2020-2022)
• Caring Company Logo (12 consecutive years)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Utilization
• Employee Benefits & Development
• Community Engagement
• Supply Chain Management
• Product Liability
• Anti-corruption

Environmental Achievements

• Reduced total greenhouse gas emissions (Scope 1 and Scope 2) by 1.5% compared to the previous year, achieving the emission reduction target for the year.
• Reduced greenhouse gas emission intensity (calculated by tonnes of CO2 equivalent/the number of employees) from 6.8 to 6.4.

Social Achievements

• Increased average employee training hours by 57% to 48.4 hours per employee.
• Zero work-related fatalities.
• Launched the Service Supervision Call Centre in July 2021 to improve customer service.

Governance Achievements

• Established an ESG working group responsible for sustainable development and ESG-related work.
• Implemented a series of anti-corruption measures, including the “Zhongyu Energy Audit and Supervision System”, “Zhongyu Energy Accountability System”, and “Ten Red Lines of Zhongyu Energy Employee Behaviour”. No reported cases of corruption.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to extreme weather events (e.g., flooding in Henan).
• Increasing volatility in commodity prices.
• Potential risks associated with climate change, including service disruptions and asset impairment.

Mitigation Strategies

• Implemented a natural disaster response plan to stabilize gas supply during extreme weather events.
• Flexibly planned for upstream resources and innovated downstream sales strategies.
• Improved emergency response plans for natural disasters and strengthened emergency drills.
• Implemented comprehensive insurance coverage for subsidiaries.

Supply Chain Management

Responsible Procurement

• Established a supplier selection mechanism to assess supplier’s product quality, price, product usage and after-sales services.
• Requires suppliers to use parts and components complying with RoHS requirements.
• Requires suppliers to abide by strict business ethics and meet environmental and social requirements.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (e.g., typhoons, high temperature, heavy rain and flooding)

Transition Risks

• Increase of operating costs

Opportunities

• Energy transformation and upgrading
• Development of low-carbon energy sources (photovoltaics, geothermal energy, hydrogen)

Reporting Standards

Frameworks Used: Appendix 27 “Environmental, Social and Governance Reporting Guide (“ESG Guide”) of the Main Board Listing Rules of The Stock Exchange of Hong Kong Limited

Third-party Assurance: Hong Kong Quality Assurance Agency (HKQAA)

Awards & Recognition

• “China City Gas Association Natural Gas Distributed Energy Henan Training Base” certification

Environmental Metrics

ESG Focus Areas

• Employment
• Product Responsibility
• Use of Resources

Environmental Achievements

• Reduced paper consumption significantly (from 9,275kg in 2019 to 640kg in 2022 for the Company; 5,355.2kg for the Company and its controlled subsidiaries in 2022).
• Reduced air pollutants NOx, SOx, and RSP by 21.43%, 0%, and 16.67% respectively.
• Reduced non-hazardous waste by 49.42%.

Social Achievements

• Awarded Certificate of the Good Employer Charter and Manpower Developer Award.
• Pledged to adopt the Code of Practice against Discrimination in Employment on the Ground of Sexual Orientation.
• Implemented family-friendly practices such as flexible working hours and work-from-home permits.
• Maintained a zero-injury record since 2017.
• Conducted 24 internal and external training programs.

Governance Achievements

• Established a standalone committee for ESG governance.
• Established a TCFD Working Group.
• Refined anti-bribery and anti-corruption policy.
• Established a confidential whistle-blowing system.

Climate Goals & Targets

Environmental Challenges

• Unprecedented challenges throughout 2022, including the worst economic situation since COVID-19.
• Shift to paperless listing by SEHK, impacting the traditional printing business.
• Decreased demand for traditional paper products.
• Medium to long-term threats including regulatory changes and rising costs.
• Difficulty in providing on-site community service due to access restrictions.

Mitigation Strategies

• Generating reasonable profit growth despite challenging circumstances.
• Transforming to a digital mode of operation.
• Integrating ESG concepts into corporate culture and operating strategies.
• Extending the scope of the report to include controlled subsidiaries.
• Encouraging hybrid working and using technology to connect employees and customers.
• Forming a TCFD Working Group to focus on climate-related issues.
• Setting a target to reduce carbon emissions by 70% in Scope 1 and Scope 2 and 60% in Scope 3 by 2030.
• Adjusting supply chain management strategy.
• Implementing various community support initiatives despite physical access restrictions.

Supply Chain Management

Supplier Audits: Semi-annual Supplier’s Performance Evaluation; annual questionnaire on security level.

Responsible Procurement

• Prioritizing suppliers with excellent ESG performance and products with Forest Stewardship Council certification.
• Considering factors such as compliance with environmental legal requirements.
• Implementing a Green Procurement Guideline.
• Requiring suppliers to sign NDAs and Supplier Information Security Requirement Acknowledgements.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, super typhoons, earthquakes)
• Chronic risks such as sustained high temperatures

Transition Risks

• Tightening of energy-saving legislation and other regulations
• Decreased demand for traditional paper products due to digital trends
• Increased raw material and energy costs
• Transformation of the production system due to changes in materials

Opportunities

• Using recycled materials for traditional business
• Expansion on digital business

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 27001

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 5: Gender equality

Supporting underprivileged groups through donations and volunteer work; promoting employee well-being through flexible work arrangements and health initiatives; promoting gender equality through equal opportunities and training.

Awards & Recognition

• Certificate of the Good Employer Charter
• Manpower Developer Award (2020-2022)
• Caring Company Logo (14 consecutive years)

Environmental Metrics

ESG Focus Areas

• Employment and Labour Practices
• Operating Practices
• Community Participation
• Environmental Protection
• Climate Change

Environmental Achievements

• Reduced greenhouse gas emissions by 26.73% (100.88 tonnes in 2023 vs 137.69 tonnes in 2022)
• Reduced non-hazardous waste by 55.79% (5.27 tonnes in 2023 vs 11.92 tonnes in 2022)
• Reduced paper usage by half (2,440.5kg in 2023 vs 5,355.2kg in 2022)

Social Achievements

• Awarded Certificate of the Good Employer Charter
• Awarded Manpower Developer Award (2023-2025)
• Adopted the Code of Practice against Discrimination in Employment on the Ground of Sexual Orientation
• Increased training hours from 256 to 744 hours
• Zero injury record since 2017
• HK$40,610.80 in items purchased for charitable activities and HK$48,360.00 in direct donations

Governance Achievements

• Established a standalone committee for ESG governance
• Established a TCFD working group
• Implemented a confidential whistle-blowing system
• Maintained zero non-compliance cases related to employment, health & safety, product responsibility, and anti-corruption

Climate Goals & Targets

Environmental Challenges

• Decreased demand for traditional paper products
• Changes in regulations and rising costs
• Increased air pollutant emissions due to Hong Kong's return to normalcy
• Potential increase in Scope 1 and 3 emissions in 2024

Mitigation Strategies

• Transformation to a digital mode of operation
• Adjusting supply chain management strategy
• Implementing energy-saving initiatives
• Waste reduction initiatives
• Paperless workflow implementation
• Green procurement guideline
• Regular anti-corruption training for all employees

Supply Chain Management

Supplier Audits: Supplier assessments and reviews

Responsible Procurement

• Prioritising suppliers with excellent ESG performance and products with Forest Stewardship Council certification
• Green Procurement Guideline
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, typhoons, earthquakes)
• Heat waves
• Supply chain disruptions
• Increased energy costs
• Rising raw material costs

Transition Risks

• Stricter energy-saving regulations
• Decreased demand for traditional paper products
• Increased compliance costs
• Rising insurance premiums
• Shift in consumer preferences
• Changes in input prices

Opportunities

• Using recycled materials
• Expansion on digital business
• Development of new market segments

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 27001, FSC Chain of Custody Certification

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 5: Gender equality

Donations to charities, employee wellbeing initiatives, promoting gender equality

Awards & Recognition

• Caring Company Logo (15 consecutive years)