Climate Change Data

Environmental Metrics

ESG Focus Areas

• Employee Growth
• Green Development
• Reliable Partnership

Environmental Achievements

• Reduced greenhouse gas emissions (Scope 1 + Scope 2) by 9.73% compared to 2021
• Achieved 63.75% circulating water usage
• Developed surgical site infection control materials meeting ISCC certification standards
• Used 6,000 kg of OEKO-TEX certified cotton fiber
• Generated 907,504 kWh of renewable electricity through photovoltaic power generation
• Used 11.48 million FSC certified medium packaging boxes

Social Achievements

• Employee satisfaction rate reached 92%
• Employee net promoter score (E-NPS) was 62.85%
• 100% employee training coverage with an average of 66.11 training hours per employee
• Work-related injury rate per one thousand employees was 0.59
• Donated RMB 5.274 million in cash and kind
• 184 employees participated in voluntary activities totaling 926 hours
• Second phase of employee stock ownership plan included 114 employees
• Female employees accounted for 65.63%

Governance Achievements

• Established ESG Decision-making Committee and ESG Standing Office
• Conducted 15 internal audits
• Provided 4 anti-corruption themed training sessions
• Held 3 investor exchange conferences
• Female directors accounted for 33.33%

Climate Goals & Targets

Environmental Challenges

• Maintaining high customer net promoter scores in the foreign market (30.51% in 2022)
• One incident of violating regulations concerning product quality and safety (industrial mask failed particle filtration efficiency test)

Mitigation Strategies

• Continuous improvement of customer service capabilities
• Stricter control of raw materials and inspections in subsequent production to improve product quality

Supply Chain Management

Supplier Audits: 672 suppliers surveyed; 2 suppliers assisted in passing third-party social responsibility audits

Responsible Procurement

• SRM platform
• Supplier lifecycle management process system
• Differentiated procurement management strategies for different supplier levels

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Guideline No. 1 for the Application of Self-regulatory Rules for Companies Listed on the STAR Market of the Shanghai Stock Exchange - Standardized Operation (2022), GRI Standards (2021), UN Sustainable Development Goals (SDGs)

Certifications: ISO 13485, ISO 14001, ISO 45001, ISCC, FSC, OEKO-TEX

Sustainable Products & Innovation

• Surgical site infection control materials meeting ISCC standards
• High-performance AS&AR surgical gowns
• Medical compression socks

Awards & Recognition

• Top 100 Global Medical Device Companies in 2022
• Top 500 Chinese Manufacturing Enterprises in Charity and Public Welfare in 2022
• 2022 Social Responsibility Pioneer Award
• Gold Award of CPEO Summit
• 2022 National Intellectual Property Demonstration Enterprise
• Top 500 Innovative Brands in China in 2022
• 2022 Zhejiang Province “Future Factory” Pilot Enterprises
• Top 10 Health Industry Brands in 2022 by Beijing Evening News

Environmental Metrics

ESG Focus Areas

• Care Employee Growth
• Promote Green Development
• To Be a Reliable Partner

Environmental Achievements

• Total greenhouse gas emissions (Scope 1 + Scope 2) reduced by 27% compared to last year
• Renewable electricity accounted for 14.33% of total energy use
• Four products passed ISO 14067 carbon footprint certification
• 65% of finished products used recyclable packaging materials
• Achieved ISCC PLUS certification for surgical gowns

Social Achievements

• New employee satisfaction rate reached 93.3%
• Employee NPS was 69.33%
• Average training time per employee was 64.77 hours
• Work-related injury rate per one thousand employees was 0.45
• Donated RMB 3.245 million
• 320 employees offered 1,953 hours of volunteer services

Governance Achievements

• Held 3 investor exchange conferences
• Completed 11 routine and special audits
• 100% of directors participated in anti-corruption training
• 46% of employees participated in anti-corruption training
• No corruption reports received

Climate Goals & Targets

Environmental Challenges

• Global warming
• Supply chain disruptions
• Increasing data and processes to be processed
• Disparities in procurement efficiency
• Variations in procurement processes and standards

Mitigation Strategies

• Developed climate transformation strategy aligned with the 1.5°C temperature goal of the Paris Agreement
• Invested in the factory in Kenya
• Implemented lightweight packaging
• Optimized production processes through TPI projects
• Implemented process improvements and standardized procurement workflow
• Introduced the Rule for Standardized Material Purchasing Delivery Management

Supply Chain Management

Supplier Audits: 653/year

Responsible Procurement

• Supplier Code of Conduct
• ESG or social responsibility training

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Chronic physical risks (high temperatures, sea levels)

Transition Risks

• Policies and laws

Opportunities

• Energy transition
• Market opportunity
• Resource efficiency
• Climate resilience

Reporting Standards

Frameworks Used: GRI Standards (2021)

Certifications: ISO 14001, ISO 45001, ISO 13485, ISCC PLUS

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 12
• Goal 13

Initiatives contribute to these goals through various programs and activities

Sustainable Products & Innovation

• PFAS-free surgical gowns
• Biodegradable latex medical examination gloves
• Low carbon footprint gauze pads and abdominal pads

Awards & Recognition

• Top 500 Chinese Manufacturing Enterprises
• Top 20 Chinese Medical Device Companies
• Outstanding Contribution Award
• Gold Award of CPEO Summit
• Top 500 Chinese Private Enterprises in Charity and Public Welfare
• A Collective with Outstanding Donations to Red Cross Society in Zhejiang Province
• A Waste-Free Factory, Intelligent Factory, Waste-Free City Cell in Shaoxing
• A Wasted-Free Factory, Green Factory in Henan Province
• National Intellectual Property Demonstration Enterprise