Sino Biopharmaceutical : 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Basis of preparation

This report has been prepared based on the Environmental, Social and Governance Reporting Guide (the "ESG Reporting Guide") in Appendix 27 to the Main Board Listing Rules of the Hong Kong Stock Exchange, with extensive reference to the core option of the Global Reporting Initiative Standards (GRI Standards) of the Global Sustainability Standards Board (GSSB), the 2030 Agenda for Sustainable Development and the 17 Sustainable Development Goals (SDGs) of the United Nations.

Reporting scope

Unless otherwise specified, the scope of disclosure in this report is consistent with the 2022 Annual Report of Sino Biopharmaceutical Limited.

Source of information

The key financial data in this report are extracted from the 2022 Annual Report of Sino Biopharmaceutical Limited which is disclosed by Sino Biopharmaceutical on the websites of the Hong Kong Stock Exchange and the Company, and other information and data are sourced from the internal management documents and relevant records of the Group. Unless otherwise specified, the currency for denomination in this report is Renminbi ("RMB").

After comprehensive consideration of factors such as the proportion of operating income contributed by and the Group's shareholdings in the member companies, we selected 7 major member companies, such as CT Tianqing, as the presentation subjects of the relevant policies, working mechanism and specific cases relating to various ESG issues.

Reporting period

From 1 January 2022 to 31 December 2022. Some content can be traced back to historical information.

Abbreviations

For the convenience of presentation and reading, Sino Biopharmaceutical Limited and companies within its scope of consolidation are referred to as the "Group", "Sino Biopharmaceutical", "we" or "us" in this report.

In this report, the subsidiaries of Sino Biopharmaceutical are referred to as "member companies", which mainly include Chia Tai Tianqing Pharmaceutical Group Co. Ltd. ("CT Tianqing"), Beijing Tide Pharmaceutical Co., Ltd. ("Beijing Tide"), Nanjing Chia Tai Tianqing Pharmaceutical Co., Ltd. ("NJCTT"), CP Pharmaceutical Qingdao Co., Ltd. ("CP Pharmaceutical (Qingdao)"), Jiangsu Chia Tai Fenghai Pharmaceutical Co., Ltd. ("CT Fenghai"), Jiangsu Chia Tai Qingjiang Pharmaceutical Co., Ltd. ("CT Qingjiang") and Shanghai Chia Tai Tongyong Pharmaceutical Co., Ltd. ("CT Tongyong").

Availability of the report

You may visit the websites of the Sino Biopharmaceutical or the Hong Kong Stock Exchange to browse or download the Chinese and English versions of this report. If there is any discrepancy in the interpretations of the versions, the Chinese version shall prevail. 

2022

ENVIRONMENTAL, SOCIAL AND

GOVERNANCE REPORT

89 EMISSIONS MANAGEMENT

100 C O N T E N T I N D E X O F T H E ESG REPORTING GUIDE OF THE HONG KONG STOCK EXCHANGE

103 FEEDBACK

"Science for a healthier world"

Ms. Tse, Theresa Y Y

Chairwoman

The year 2022 was an extraordinary year. We were in the midst of a complex situation of 100 years of international changes and the pandemic of the century, and we experienced many obstacles and impacts that were beyond our expectations. In the face of current industry fluctuations and temporary difficulties in the economic cycle, the contribution of quality development of pharmaceutical companies to people's welfare and economic growth is all the more valuable. In the critical period of finding the next growth point of the cycle, cultivating and releasing new technological benefits, Sino Biopharmaceutical has been working together in adversity, undertaking the corporate mission of "Science for a healthier world" and being dedicated to contributing to the health and well-being of more patients worldwide.

As a leading, innovative and research and development ("R&D") driven pharmaceutical conglomerate in China, Sino Biopharmaceutical has a vision of "to be a leading global pharmaceutical company through delivering innovative therapies for patients". We promoted a "comprehensive innovation" strategy with technology innovation as the core, and continued to increase our R&D efforts on new original drugs in the four core therapeutic areas, namely oncology, liver diseases, surgery/neurology and respiratory system. In 2022, the Group's R&D investment reached RMB4.45 billion, an increase of over RMB600 million from the previous year, and the proportion to the total revenue increased to 15.5%, demonstrating the Group's determination to transform. At the same time, the international strategic layout of Sino Biopharmaceutical has become another core driving force for the development of the Group. This year, the Group continues to adhere to the two major paths of "bringing in" and "going out", and has made milestone breakthroughs in the integration of international strategic cooperation resources, the introduction of international high- end talents, the expansion of international leading technology and product line. In addition, we are actively engaged in digital transformation, promoting the construction of

intelligent factories, building a complete, safe and efficient digital collaborative business platform, applying artificial intelligence technology to accelerate the R&D progress, gradually realizing business datalization, data assetization and business intelligentization, and promoting innovation and breakthroughs in business models and operation modes.

We understand that a high level of ESG governance is the foundation for sustainable development of a corporation. In 2022, the Group officially released an ESG strategy with "CARE" as the core, clearly defining "Cure, Accessible, Environmental and Relationship" as the four key ESG areas of concern, comprehensively deepened the organic integration of ESG with the Group's development strategy, promoted dedicated governance of material ESG issues, and worked together with industry chain partners to achieve a number of breakthroughs in key ESG areas:

In the area of environmental protection, we promoted the integration of low-carbon transformation and corporate development strategies and launched the "Carbon Neutral Planning Project of Sino Biopharmaceutical", with a view to providing substantial support for the comprehensive achievement of China's dual carbon objective and the active response to climate change risks.

In the area of talent development, we continued to build a diversified and inclusive workplace culture and formally launched the "Talent Development Plan of Sino Biopharmaceutical" to continuously create an excellent employment experience and continuously empower the development of employees from four aspects: talent attraction and retention, organization construction and development, talent training and development, and human resources operation and support, so as to help the Company and its employees grow together.

In the area of business ethics, we promised to abide by the highest level of business ethics, took quality and safety as our lifeline, adhered to the lifeline of quality and safety with the "Full Life-cycle Quality Management System", promoted responsible marketing and quality culture construction covering all employees, achieved the annual management goal of "zero

quality and safety incidents and product recalls", and are determined to ensure the safety of drug use of patients.

In the area of accessibility, we continued to consolidate our core and advantageous areas with the core objective of "providing more patients with more extensive, more effective and more affordable treatment options", and as of the end of the reporting period, the key products of the Group had treated more than 150 million patients. At the same time, we actively promoted the R&D of drugs for rare diseases and supported the improvement of medical standards in developing countries, in the hope of bringing equal health benefits to more patients.

In the area of community investment, we have continued to work in five major areas, namely fighting the pandemic, disaster relief, rural revitalization, donations for education and charity, in combination of our own industrial strengths, with an annual community investment amount more than RMB66 million and more than 38,000 hours of social welfare participation, contributing to the construction of harmonious social relationships.

We believe that health technologies can bring warmth to more lives. In the future, Sino Biopharmaceutical will stick to its original aspirations and act for good, actively fulfill its corporate citizenship responsibilities, seek well-being for more patients, join hands with employees and partners for mutual development, and pursue the harmonious development of the Group, employees, environment and society with good ESG governance as the cornerstone.

COMPANY PROFILE

Sino Biopharmaceutical Limited and its subsidiaries ("Sino Biopharmaceutical" or the "Group") is a leading, innovative and R&D driven pharmaceutical conglomerate in China. Our business encompasses a fully integrated chain in pharmaceutical products which covers an array of R&D platforms, a line-up of intelligent production and a strong sales system. The Group's products have gained a competitive foothold in various therapeutic categories with promising potentials, comprising a variety of biopharmaceutical and chemical medicines for oncology, liver diseases, respiratory system diseases and surgery/neurology.

this basis, the group takes international layout as the core drive, aims at new targets, new directions and new technologies with an equal and open attitude, explores international cooperation, looks at global innovation, accelerates global layout, and promotes high- quality corporate development.

At the same time, we continued to expand the application scenarios of the power of digital transformation, and focused on promoting the digital construction of smart factories and intelligent workshops, expecting to gradually realize business datalization, data assetization and business intelligentization through the

Corporate culture

With the mission of "Science for a healthier world", Sino Biopharmaceutical is committed to providing patients with diversified, and affordable treatment solutions of better quality, enhancing the quality of life of patients and maintaining their dignity of life through practical actions.

We believe that our commitment to serving patients, focusing on innovation and R&D, carrying out our mission, and adhering to the principle of "For the Country, for the People, for the Company" will ultimately lead us to our vision of becoming a leading global pharmaceutical company.

Since 2022, the Group has established four core strategies of "comprehensive innovation, internationalization, organizational integration and digitalization". The Group has further increased its investment in the R&D efforts of new innovative drugs, focused on its superior resources, improved the efficiency of R&D and innovation, and accelerated the launch of innovative drugs. On

organic integration of digital technologies and production operations, transitioning from cost reduction, efficiency increase and innovation growth to the development-leading stage, and creating new growth points and development momentum by business model promotion, operation model innovation and technological breakthroughs.

Principal member companies of the Group

Our Vision

"To be a leading global pharmaceutical company through

delivering innovative therapies for patients."

Our Values

Integrity, Foresight, Innovation, Commitment, Efficiency,Collaboration

Science for a healthier world

Chia Tai - Tianqing

Pharmaceutical Holding

Co. Ltd. (PRC)

R&D Manufacture & Sale

SINO BIOPHARMACEUTICAL

LIMITED