Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Welfare
• Corporate Governance

Environmental Achievements

• Reduced water consumption (22,250 tons in 2018 to 22,651 tons in 2019)
• Used eco-friendly materials for product containers and packaging
• Safe disposal of waste by compliant suppliers
• Periodic testing of wastewater and noise disposal to meet environmental regulations

Social Achievements

• Provided social insurance (pension, unemployment, medical care, childbirth, work injury) for employees in Mainland China
• Established employee welfare measures (integrity supermarket, holiday gifts, cultural activities, employee discounts)
• Provided employee education and training opportunities
• Maintained harmonious labor relations with no major disputes

Governance Achievements

• Established Remuneration Committee and Audit Committee
• Conducted regular performance appraisals for Board of Directors and functional committees
• Conducted assessments on the independence and competence of independent auditors
• Disclosed financial business and corporate governance information on company website and MOPS

Climate Goals & Targets

Environmental Challenges

• Counterfeiting in the Mainland China market
• Intense market competition
• High turnover rate of beauty care instructors and beauticians
• Risks related to statements made in the annual report (inaccurate statistics, prospective statements)
• Potential impacts from changes in Chinese government policies and laws

Mitigation Strategies

• Obtained local trademark rights, collaborated with dealers to combat counterfeiting
• Utilized multi-brand strategy, continuous R&D, strict quality control, and brand building to enhance competitiveness
• Established comprehensive education and training system, provided staff welfare and promotion system to retain talents
• Disclosed potential risks and uncertainties in the annual report
• Closely monitored and understood policy development trends and regulatory changes, consulted with experts for response measures

Supply Chain Management

Responsible Procurement

• Strict quality and delivery deadline control
• Environmental and safety considerations in supplier selection

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Eco-friendly packaging materials
• Products with natural botanical ingredients

Awards & Recognition

• Fujian Provincial Famous Trademarks (LUOLIHFEN, SUNLILY)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Human Rights
• Corporate Governance

Environmental Achievements

• Reduced water consumption (22,651 tons in 2019 to 26,292 tons in 2020); selects product containers and packaging materials made of eco-friendly materials; ensures compliant suppliers dispose of wastes safely and in an eco-friendly manner; online systems to monitor water pollution; commissioned third party to test wastewater and noise levels.

Social Achievements

• Established Human Rights Policy; implemented a human resources employment policy that does not have differential treatments based on gender, race, social class, age, marriage, and family status; strives to achieve equality and fairness in employment, hiring conditions, salary, benefits, training, assessment, and promotion opportunities; provided social insurance (including pension, unemployment, medical care, childbirth, and work injury) for its employees; established staff reward and punishment system with clear reward and punishment standards; provides safe and healthy workplace with ISO 45001; clear ranking levels whereby excellent employees are gradually promoted according to their performance; functional related posts are filled via departmental transfers or the transfer mechanism within the group to give employees room to grow.

Governance Achievements

• Established Audit Committee composed entirely of independent directors; established Remuneration Committee composed of independent directors; implemented risk management policies and procedures; strengthened ethical awareness; optimized information disclosure by including information on board diversification, the operating status of functional committees, and R&D statuses; improved the disclosure of relevant information in annual reports and on its Chinese and English websites; established the “Code of Ethical Operation” and the “Ethical Operating Procedures and Behavior Guideline”; adopted the “Regulations Governing Handling of Whistle-Blowing Against Misconduct and Immoral or Unethical Conduct”; established relevant internal control system; engaged PwC Taiwan to conduct CPA audit of its internal control system.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic negatively affected offline channels; reduced operating revenue; intense market competition; counterfeiting is severe in the Mainland China market; high turnover rate of beauty care instructors and beauticians in terminal beauty salons.

Mitigation Strategies

• Launched new online retail brand EasyBio; expanded public (online e-commerce platforms) traffic to sell products directly to consumers; concentrated efforts to achieve full media coverage; established Richer Biotechnology Co., Ltd. to develop markets in Taiwan; merged with distributors in Taiwan; continued to conduct R&D to meet consumer demands; provided strict control over the production process; cultivated excellent sales teams; used TV advertising and special interview methods to enhance brand value and strengthen customer loyalty; established “skin care institutes” under its organizational structure; created a comprehensive education and training system; provided comprehensive staff welfare and promotion system; good working environment to retain excellent talents and reduce the turnover rate; obtained a number of local trademark rights; commissioned an external company to retrieve trademark infringement related information; hired a trademark rights protection agency.

Supply Chain Management

Responsible Procurement

• Prioritizes cooperation with suppliers that have national or international certifications, such as ISO9000, ISO 14001, ISO45001, CNAS, etc.; checks whether a supplier has violated environmental protection and safety rules; includes environmental protection and safety issues in supplier performance appraisal; stops partnership if a supplier has caused a major environmental or social impact.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO22716, ISO14001, GMPC, ISO 45001

Third-party Assurance: PwC Taiwan

Sustainable Products & Innovation

• Products using natural botanical ingredients and eco-friendly packaging materials.

Awards & Recognition

• Fujian Provincial Famous Trademarks for LUOLIHFEN and SUNLILY

Environmental Metrics

ESG Focus Areas

• Gender diversity on the board
• Environmental protection
• Energy conservation and carbon reduction
• Ecological conservation
• Long-term care for the elderly

Environmental Achievements

• Obtained ISO 14001 Environmental Management System certification
• Obtained GB/T 23331-2020 / ISO50001: 2018 Energy Management System certification
• Reduced water consumption (14,517 tons in 2022 to 15,610 tons in 2023)
• Reduced waste (3,997.1 kgs in 2022 to 6,866,67 kgs in 2023, excluding paper)
• Uses biodegradable packaging materials and simplified packaging design

Social Achievements

• Established a staff reward and punishment system
• Provided various employee education and training opportunities
• Provided social insurance for employees in accordance with Chinese law
• Maintained harmonious labor relations with no major disputes
• Implemented ISO 45001 Occupational Health and Safety Management System

Governance Achievements

• Established a Remuneration Committee composed of independent directors
• Established an Audit Committee composed of independent directors
• Appointed a chief corporate governance officer
• Implemented “Regulations Governing Handling of Whistle-Blowing Against Misconduct and Immoral or Unethical Conduct”
• Implemented an information security management system (ISO/IEC 27001:2013)

Climate Goals & Targets

Environmental Challenges

• Economic downturn in Mainland China and consumption downgrade
• Counterfeiting of products
• Intense market competition
• High turnover rate of beauty care instructors and beauticians
• Climate change

Mitigation Strategies

• Restructured sales channels to target different market segments
• Obtained legal protection for trademarks and hired a trademark rights protection agency
• Developed new products and enhanced brand value through marketing
• Established a comprehensive education and training system for employees
• Implemented environmental protection policies and practices

Supply Chain Management

Responsible Procurement

• Prioritizes cooperation with suppliers that have national or international certifications (e.g., ISO9001, ISO 14001, ISO45001)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Sustainable Products & Innovation

• Products using locally available plant extracts and biodegradable packaging

Awards & Recognition

• Fujian Provincial Famous Trademarks (LUOLIHFEN and SUNLILY)
• One of 100 female renowned consumer brands in Fujian Province (EasyBio)