健康元:健康元药业集团股份有限公司2023年社会责任报告（英文版）

健
康
元
药
业集团股份有限公司
2023
Social Responsibility
Report二
○二三年社会责任报
告For the health For the futureContents
05 Safeguarding Product Quality
32 Quality Management System
03 About Joincare
38 Quality Risk Control
8 Group Overview
40 Quality Training for Employees
01 The Report 10 Organisational Structure at a Glance 43 Intellectual Property Rights Protection
11 Corporate Culture
45 Protection of Customer Rights and Interests
11 Key Performance
48 Supply Chain Management
12 Honours
02 Chairman’s Statement
04 Responsible Governance
15 CSR Strategy
15 CSR Governance
16 Communication on CSR
22 Compliance Governance
25 Risk Management
26 Carrying Forward the Party-Masses Spirit
28 Integrity and Business Ethics
30 Information Security08 Operating with Green Sustainability
Quality Management System 06 Access to Healthcare 100 Environmental Management System
Quality Risk Control 57 Focusing on R&D and Innovation 104 Addressing Climate Change
Q uality Training for Employees 63 P aying Attention to Rare Diseases Treatment 110 Energy Management
Intellectual Property Rights Protection 65 I mproving Product Availability 111 Emission Management
P rotection of Customer Rights and Interests 68 I        mproving        Product        Affordability 116 Resource Utilisation Management
Supply Chain Management 71 Improving Healthcare 118 Biodiversity Conservation
07 Talent Management 10 Data List of Key Performance
77 P rotection of Rights and Interests of Employees Indicators
82 Improving Talent Management
92 Occupational Health and Safety 09 Public Welfare and Charity
120 Promoting Industry-based Welfare
120 P romoting Health-based Welfare and Charity
126 Involvement in Public WelfareJoincare Pharmaceutical Group Industry Co. Ltd.
01 The Report at a Glance
Overview
The report covering the period from 1 January 2023 to 31 December 2023 is the seventh corporate social responsibility
(CSR) report issued by Joincare Pharmaceutical Group Industry Co. Ltd. (Stock Code: 600380). In view of the continuity and
comparability of certain data some contents of this report may be extended or traced back to other periods where applicable.Scope of the Report
The report covers Joincare and its wholly-owned subsidiaries and holding subsidiaries.Preparation Basis
This report is prepared mainly in accordance with the No.1 Guidelines for Self-discipline Regulation of Listed Companies on
the Shanghai Stock Exchange - Operating in a Well-Regulated Manner and with reference to the Environmental Social and
Governance (ESG) Reporting Guide published by the Hong Kong Stock Exchange (i.e. SEHK). To ensure the completeness
materiality authenticity and balance of the content the preparation of this report has gone through a systematic set of procedures
including identifying key stakeholders identifying and prioritising material issues determining the scope of this report
collecting relevant materials and data reviewing the data and preparing the report based on the information gathered.Definitions
For the sake of compendious expression and smooth reading unless otherwise specified “Joincare” “the Company” “theGroup” “Group” and “we” mentioned in this report all refer to Joincare Pharmaceutical Group Industry Co. Ltd. This report
involves several subsidiaries of Joincare. Moreover the full names and abbreviations of the subsidiaries used in the report are
listed below:
Company Name Abbreviation
Shenzhen Haibin Pharmaceutical Co. Ltd. Haibin Pharma
Xinxiang Haibin Pharmaceutical Co. Ltd. Xinxiang Haibin
Shenzhen Taitai Pharmaceutical Co. Ltd. Taitai Pharmaceutical
Jiaozuo Joincare Bio Technological Co. Ltd. Jiaozuo Joincare
Joincare Haibin Pharmaceutical Co. Ltd. Joincare Haibin
Shanghai Frontier Health Pharmaceutical Technology Co. Ltd. Shanghai Frontier
Guangzhou Joincare Respiratory Drugs Engineering Technology Co. Ltd. Guangzhou Joincare
Livzon Pharmaceutical Group Inc. Livzon Group
Sichuan Guangda Pharmaceutical Manufacturing Co. Ltd. Sichuan Guangda
4Corporate Social Responsibility Report 2023
Company Name Abbreviation
Shanghai Livzon Pharmaceutical Manufacturing Co. Ltd. Shanghai Livzon
Livzon Group Livzon Pharmaceutical Factory Livzon Pharmaceutical Factory
Livzon Group Limin Pharmaceutical Manufacturing Factory Livzon Limin
Zhuhai Livzon Diagnostics Inc. Livzon Diagnostics
Zhuhai Livzon Biotechnology Co. Ltd. LivzonBio
Zhuhai Livzon Microsphere Technology Co. Ltd. Livzon Microsphere
Livzon Group Xinbeijiang Pharmaceutical Manufacturing Inc. Livzon Xinbeijiang
Gutian Fuxing Pharmaceutical Co. Ltd. Gutian Fuxing
Jiaozuo Livzon Hecheng Pharmaceutical Manufacturing Co. Ltd. Jiaozuo Livzon
Livzon Group (Ningxia) Pharmaceutical Manufacturing Co. Ltd. Ningxia Pharmaceutical
Zhuhai FTZ Livzon Hecheng Pharmaceutical Manufacturing Co. Ltd. Livzon Hecheng
Livzon Group Fuzhou Fuxing Pharmaceutical Co. Ltd. Fuzhou Fuxing
Livzon MABPharm Inc. Livzon MAB
Shanghai Livzon Biotechnology Co. Ltd. Jiaozuo Branch Shanghai LivzonBio
Data Sources and Reliability Statement
Data and cases disclosed in this report are derived from official documents statistical reports relevant public information
and internal reporting documents. Joincare guarantees that this report does not contain any false representation or misleading
statement and assumes liability for the authenticity accuracy and completeness of this report.Confirmation and Approval of this Report
The contents of this report have been confirmed by the management and been approved by our Board of Directors on 2 April
2024.
Access and Response to the Report
This        report        can        be        accessed        or        downloaded        from        the        official        website        of        the        Shanghai        Stock        Exchange        (www.sse.com.cn)        and        our
official        webpage        (www.joincare.com).        Should        you        need        to        make        further        inquiries        comments        or        suggestions        regarding        this        report
please contact us via fax (0755-86252165) or email (joincare@joincare.com).This report is originally written in Chinese and this English version is for stakeholders’ reference only. Should ambiguities arise
between the two versions the Chinese version shall prevail.
5Joincare Pharmaceutical Group Industry Co. Ltd.
02 Chairman’s Statement
Dear stakeholders and friends
In 2023 the Healthy China Initiative has been promoted the medical system reform has been deepened and
the        country        has        strongly        supported        pharmaceutical        R&D        and        innovation.        Thanks        to        these        efforts        the        national
health        policy        and        system        have        been        further        solidified.        Given        the        new        circumstances        and        requirements        of        the
healthcare industry we actively respond to the changes and seize development opportunities while delivering
on our mission of “For the health For the future”. Supported by technological innovation we are committed
to the dual-drive strategy of “innovative medicines + high-barrier complex formulations” making our
contribution to promoting national health during the 14th Five-Year Plan period.We continue to optimise corporate governance system and steadily improve our ESG system. In 2023
MSCI an international authoritative index institution upgraded Joincare’s ESG rating from “BBB” to
“AA”        reaching        a        leading        position        in        the        industry.        This        Upgrade        fully        reflects        that        our        ESG        performance        and
sustainable development capability were highly recognised by the international capital market.Upholding fundamental principles breaking new ground and increasing investment in R&D we have built
a well-balanced pipeline that includes respiratory gastroenterology assisted reproduction psychiatry and
tumour immunity. And we also build innovative R&D technology platforms for inhalation administration
antibody sustained-release microspheres complex injection formulations among others. Focusing on clinical
needs        we        endeavour        to        improve        the        availability        and        affordability        of        high-quality        pharmaceutical        products        and
services. In 2023 Tobramycin Inhalation Solution (健可妥)        a        modified        new        drug        developed        independently
by the Group was included in Class B of China’s National Reimbursement Drug List (NRDL). As China’s
first        inhaled        antibiotics        健可妥        offers        a        more        effective        option        for        patients        with        bronchiectasis.Guided by clinical value the Group expands its product matrix and R&D pipeline by developing short-term
high-certainty R&D projects and technologies with long-term growth potential. At the same time we actively
explore cutting-edge technologies and development opportunities both domestically and internationally and
strengthen cooperation with external organisations. The newly introduced influenza antiviral drug TG-1000Capsules has entered phase III clinical trials this year. As our innovation mode of “independent R&D asthe foundation and external introduction as an accelerator” gradually matures we are striving to make solid
strides in innovation and reap practical fruits.
6Corporate Social Responsibility Report 2023
Guided by the corporate value of “Putting People First” we continue to safeguard the rights and interests of
employees smooth communication channels and create a diversified and inclusive working environment.We also improve the compensation and welfare system and establish a targeted training system. In addition to
ensure occupational health and safety for employees we are committed to addressing their concerns and share
the fruits of corporate development with them.The Group takes concrete action to protect environment in accordance with the environmental management
approach of “pollution prevention legal compliance and continuous improvement”. In 2023 we published the
Climate        Change        Management        System.        According        to        the        system        we        are        working        to        enhance        energy        efficiency
increase green investment and make every effort to achieve carbon emissions peaking by 2028 and carbonneutrality by 2055. This is how we practice the green development concept that “lush mountains and clearwaters are invaluable assets”.Being a good corporate citizen the Group has actively responded to the national call to invest in promotinga healthy China and revitalising rural. We continue our “Access to Public Welfare for Chronic DiseasesPrevention and Treatment Programme” to effectively alleviate the financial burden of low-income families.We fully support industrial assistance to effectively consolidate the achievements of poverty alleviation and
popularise medical knowledge in a well-organised manner to help enhance public health awareness. Joincare
will devote itself to meeting the needs of society and the expectations of the country. While maintaining a
prudent        approach        we        will        take        the        initiative        to        fulfil        our        responsibilities        and        give        back        to        society.Looking ahead to 2024 Joincare will strive to deliver sustainable value for various stakeholders and remaintrue        to        its        core        values        of        “Putting        people        first        Valuing        workmanship        and        quality        Pursuing        innovation        andtruth Promoting cooperation and sharing” to become a staunch advocator supporter and executant of the
Healthy China Initiative.Chairman: Zhu Baoguo
April 2 2024
7Joincare Pharmaceutical Group Industry Co. Ltd.
03 About Joincare
3.1 Group Overview
The business scope of Joincare covers multiple areas such as chemical pharmaceuticals biologics chemical active
pharmaceutical ingredients (APIs) and intermediates traditional Chinese medicine (TCM) drugs diagnostic reagents and
equipment        and        healthcare        products.The Group has strong R&D capabilities and global R&D concepts in the fields of chemical pharmaceuticals traditional
Chinese medicine biologics diagnostic reagents and healthcare products. Our R&D pipelines focusing on the fields of
respiratory anti-infection anti-tumour gonadotropic hormones gastroenterology and neurology are refined and well-
balanced. In recent years we have devoted ourselves to innovating and improving monoclonal antibodies (MAB)
inhalation formulations long-acting sustained-release microspheres complex formulations and other technology
platforms. Through the efforts mentioned above we further improve our product portfolios business and core
competitiveness.Table: Main Products of the Group
Chemical Pharmaceuticals
Respiratory健可妥丽舒同雾舒丽雾安
(Tobramycin Inhalation (Levosalbutamol Hydrochloride (Budesonide Suspension for (Ipratropium Bromide
Solution) Nebuliser Solution) Inhalation) Solution for Inhalation)
Gastroenterology壹丽安壹丽安丽珠维三联丽珠得乐
(Ilaprazole Enteric-Coated (Ilaprazole Sodium for Injection) (Bismuth Potassium Citrate (Bismuth Potassium Citrate
Tablets) Tablets/Tinidazole Tablets/ Tablets)
Clarithromycin Tablets)
8Corporate Social Responsibility Report 2023
Gonadotropic hormones贝依丽申宝维宝宁丽曲欣
(Leuprorelin Acetate (Urofollitropin for Injection) (Triptorelin Acetate Microspheres (Cetrorelix Acetate Powder for
Microspheres for Injection) for Injection) Injection)
Psychiatry Anti-infection瑞必乐康尔汀倍能丽福康
(Fluvoxamine Maleate Tablets) (Perospirone Hydrochloride (Meropenem for Injection) (Voriconazole for Injection)
Tablets)
Biologics丽康民安维泰丽得宝丽康乐
(Recombinant SARS-CoV-2 (Tocilizumab Injection) (Recombinant Human (Mouse Nerve Growth Factor
Fusion Protein Bivalent Choriogonadotropin alfa for for Injection)
(Prototype/Omicron XBB Injection)
Variant) Vaccine (CHO Cell) )
Chemical APIs and intermediates
Drugs for humans: Veterinary drugs:
7-ACA Meropenem Trihydrate Daptomycin Dalbavancinee ?? Milbemycin Oxime and Moxidectin
Vancomycin Mevastatin and Acarbose
9Joincare Pharmaceutical Group Industry Co. Ltd.
TCM drugs Diagnostic reagents and equipment
Anti-tumour Cold medicine Mycoplasma pneumoniae IgM Antinuclear Antibody Test
Shenqi        Fuzheng        Injection Anti-viral Granules Antibody Test (Colloidal gold Kit (17) (Magnetic Barcode
method) Immunofluorescence)
Healthcare products
Jingxin        Oral        Liquid Eagle’s American Ginseng Tea Taitai        Oral        Liquid Eagle ’s American Ginseng
Tea Beverage
3.2 Organisational Structure
Shareholders’ Meeting
Strategy Committee
Board of Supervisors Remuneration Committee
Board of Directors Nomination Committee
Office        of        the        Board        of        Directors CSR Committee
CEO Audit Committee
Financial Integrated R&D Production Sales Supervision
Management Management Management Management Management and Audit
Centre Centre Centre Centre Centre Department
10Corporate Social Responsibility Report 2023
3.3 Corporate Culture
Since        the        establishment        in        1992        Joincare        has        constantly        been        focusing        on        the        field        of        healthcare        always        staying        true        toits original aspiration in its ongoing inheritance and innovation. Gradually we have formed a corporate mission - “For thehealth For the future”. Along this journey we always act in the interests of patients and focus on safeguarding human life
and        health.        We        take        scientific        and        technological        innovation        as        the        strategic        foundation        adhere        to        the        dual-drive        strategyof "Innovative Medicines and High-Barrier Complex Formulations" and carefully conceive a new vision of “Diligentlymake        high-quality        drugs        and        innovative        drugs”.        In        addition        we        actively        and        continuously        contribute        to        building        acommunity with a shared future for the public. Even while focusing on business development we take “Putting peoplefirst        Valuing        workmanship        and        quality        Pursuing        innovation        and        truth        Promoting        cooperation        and        sharing”        as        core
values.        We        consider        the        quality        of        products        the        training        of        talents        and        the        strength        of        R&D        of        the        utmost        importance
thereby        advocating        the        coexistence        of        the        humanistic        spirit        and        the        scientific        spirit        and        actively        assuming        obligations        and
responsibilities for the development of human health.Mission Vision Core values
For the health For the future Diligently        make        high-quality         Putting        people        first
drugs and innovative drugs Valuing        workmanaship        and        quality
Pursu ing innova t ion and t ru th
Promoting cooperation and sharing
3.4 Key Performance
During the reporting period Joincare achieved total revenues of RMB16.646 billion representing a year-on-year decrease
of 2.90%; achieved net profits attributable to shareholders of the listed company of RMB1.443 billion representing a
year-on-year decrease of about 3.99%; and achieved net profit attributable to shareholders of the listed company after
extraordinary gain or loss of RMB1.374 billion representing a year-on-year decrease of about 3.18%.At the same time the Group has been actively undertaking corporate social responsibilities and constantly creating social
value. In 2023 the Group generated tax revenues for the government of RMB1.866 billion paid RMB2.460 billion
in salary to employees distributed dividends and paid interest worth RMB1.615 billion to banks and other creditors
donated funds and goods totalling RMB 25.985 million to society and achieved a social contribution per share of
approximately RMB3.97 for the society in 2023.Net        profits        attributable        to
Total revenues shareholders of the listed company Tax revenues for the government
16.646 billion 1.443 billion 1.866 billion
Salary to employees Donated funds and goods Social contribution per share
2.460 billion 25.985 million 3.97
11Joincare Pharmaceutical Group Industry Co. Ltd.
3.5 Honours
June 2023
2023 TOP 100 China's Chemical Drug R&D
Strength Ranking
www.yaozh.com China Pharmaceuticals Magazine
2023 TOP 100 China Drug R&D Comprehensive
February 2023 Strength Ranking
2022 China Pharmaceutical Social www.yaozh.com China Pharmaceuticals Magazine
Responsibility Media Observation - No. 9 in China's Top 100 Chemical
Responsibility Pioneer Pharmaceutical Enterprises
National Medical Products www.menet.com.cn
Administration Institute of Medical April 2023
Economics https://www.yyjjb.com.cn/
Best ESG Information
Disclosure Award
NewFortune
May 2023
Certification of Inclusion in the Key Trademark Protection List in
Guangdong Province - Dexamethasone Acetate
March 2023
Key Trademark Protection Committee of Guangdong Trademark
Guangdong Pharmaceutical Association
Industry Anti-Epidemic
Pioneer Health Promotion Enterprise (Silver Award)
Guangdong Pharmaceutical Shenzhen Health Education and Promotion Centre under the Health
Profession Association Commission of Shenzhen Municipality
12Corporate Social Responsibility Report 2023
October 2023
September 2023 2023 Excellent Practice Cases of Listed
No. 441 in 2023 Top 500 China's Companies in Rural Revitalisation
Manufacturing Private Enterprises China Association for Public Companies
All-China Federation of Industry and Commerce Top 20 Board Governance of Listed
No. 40 in 2023 Top 100 Manufacturing Private Companies in the Greater Bay Area
Enterprises in Guangdong Province Shenzhen Research Association of Corporate
Guangdong Federation of Industry & Commerce Governance
No. 71 in 2023 Top 100 Private Enterprises in
Guangdong Province
Guangdong Federation of Industry & Commerce
November 2023
2023 Excellent Practice Cases of the Best Practice
Creation Activity of the Board of Directors of Listed
Companies
China Association for Public Companies
July 2023
No. 65 in 2022 Top 100 Enterprises in China's
ESG New Benchmarking Enterprise Award Pharmaceutical Industry
StockStar        ESG        Alliance        with        Joint        Efforts        and        Shared        Benefits Ministry of Industry and Information Technology the
People's Government of Beijing Municipality National
2022 Annual Outstanding Enterprise in the
Health Commission State-owned Assets Supervision and
Pharmaceutical Corporate Social Responsibility List by
Administration Commission of the State Council State
Southern Weekly
Administration of Traditional Chinese Medicine and
China Corporate Social Responsibility Research Centre of National Medical Products Administration
Southern Weekly
2023 Guangdong Pharmaceutical Industry Advanced
Enterprise for Statistics Work
Guangdong Pharmaceutical Profession Association
1304
Responsible Governance
SDGs in this section
Joincare believes in the paramount importance of performing corporate social responsibility (CSR) to long-term and sustainable
development. We integrate the CSR strategy into our daily operations and management to constantly improve CSR governance
of the Group. We actively communicate with stakeholders to understand and respond to their demands. We make unremitting
efforts        to        strengthen        compliance        management        by        establishing        a        comprehensive        risk        management        system.        Adhering        to        the        party-
masses        ?spirit        we        carry        out        business        activities        in        an        upright        and        self-disciplined        manner.        By        doing        so        we        lay        a        solid        foundation
for the sustainable development of the Group.Corporate Social Responsibility Report 2023
4.1 CSR Strategy
Committed to promoting social development Joincare puts great efforts into the healthcare industry with innovation to
help build a Healthy China and create a green bright and prosperous future with stakeholders. Focusing on “health”
the        Group        aligns        its        CSR        strategy        with        its        development        strategy        to        guide        its        efforts        to        promote        sustainable        development.We        are        committed        to        providing        the        whole        society        with        high-quality        safe        accessible        and        affordable        medical        products
and services to better meet the clinical needs. In addition we pay close attention to demands of internal and external
stakeholders and constantly strengthen management of areas in relation to sustainable development. We continuously
empower our employees' growth actively undertake responsibility of environmental protection and dedicate to social
welfare.        These        efforts        are        aimed        to        promote        social        harmony        and        development.
4.2 CSR Governance
Effective CSR governance system is a strong support for Joincare to implement CSR strategy and achieve CSR goals.The Group has established a CSR management structure that consists of the Board of Directors the Corporate Social
Responsibility Committee and the Corporate Social Responsibility Working Group. We have formulated and released
the Corporate Social Responsibility Management Policy of Joincare which clarifies the duties and work scope of the
management at all levels and standardises the division of labour among functional departments. ESG indicators have
been incorporated into the individual performance assessment of all members of our CSR working group since 2022.Joincare CSR Management Structure and Responsibility
Board of It is the highest decision-making body which makes decisions on all major matters
Directors relating to social responsibility.It is composed of three directors including one independent director and is chaired by
the chairman of the Board of Directors and takes charge of:
* researching and preparing the Group's CSR strategy goals and policies and reviewing
Social CSR planning and measures;
* supervising the Social Responsibility Working Group of the Group;
Responsibility
* monitoring inspecting assessing and proposing advice on the Group's fulfilment of
Committee social responsibilities;
* questioning        on        the        major        matters        that        affect        the        Group's        fulfilment        of        social
responsibilities inspecting and urging the handling of related matters.Social The Social Responsibility Working Group is mainly composed of major functional
departments such as the Office of the Board of Directors the Quality Management
Responsibility Department the EHS Department the Human Resources Department etc. with the
Working Group Group's President as the leader and takes charge of:
* daily work liaison reporting and meeting organisation;
* coordinated implementation of social responsibilities.In addition to improve the Group’s CSR and ESG management we pay close attention to ESG cutting-edge trend
actively understand the ESG hot topics and seize the opportunities in the capital market and keep abreast of the latest
regulatory developments relating to sustainable development. We organise training on CSR and ESG management every
year. In 2023 we invited external experts to conduct special training on sustainable development. The training is aimed
to strengthen management’s awareness of sustainable development and help them to understand and learn about excellent
management practice thus improving our ESG management performance.
15Joincare Pharmaceutical Group Industry Co. Ltd.
4.3 Communication on CSR
4.3.1 Communication with Stakeholders
Joincare values the opinions of stakeholders. By establishing a regular and diversified mechanism to communicate
with stakeholders we constantly strengthen our relation with stakeholders. We promptly understand and respond to
stakeholders’ demands through various convenient channels aiming to achieve positive interaction with stakeholders and
create long-term value for stakeholders.Table:        Communication        requirements        of        and        methods        with        stakeholders
Stakeholders Communication        Requirements Communication Methods
Protecting employees’ rights and interests Workers' congresses and labour union
Caring for employees and communicating Employees' satisfaction survey
with        them        to        know        their        requirements Occupational health and safety training
Employees Providing        salaries        and        welfare        benefits        as         Platforms for feedback
well as training for development Daily communication
Conducting standardised governance and Shareholders' meeting
strict risk control Regular releases of business information and data
Ensuring sound operation and value Telephone fax email and the general meeting
creation Investor's survey platforms for interactive communication
Investors Providing open and transparent and exchange and external roadshows
information disclosure WeChat        official        account
Guaranteeing product safety and Product labelling and information disclosure
consumers' rights and interests Regular visits
Consumers Protecting privacy and observing business Consumers' satisfaction survey
ethics Handling of complaints and opinions
Guaranteeing honest business operation Regular communication
and pharmaceutical compliance Working meetings and exchanges via telephone and
Distributors Facilitating timely communication and correspondence
suppliers and partners win-win development Company’s website
Working in compliance with laws and
ensuring drug safety Government-enterprise symposiums
Cooperating with the government's Supervision and inspection
regulations and operating in light of
Government and regulations Work reports and surveys
regulators Paying taxes in accordance with laws and On-site inspection
creating jobs
Company’s        website        and        WeChat        official        account
Promoting        effective        interaction        and         Interactive communication platforms
information disclosure Special reports
Media External roadshows
Industry organisation meetings
Promoting fair competition and
Pharmaceutical experience sharing Experience sharing sessions
industry associations/ Site visits
organisations
Charity Volunteering activities
Community/ Boosting community development and
Money and medicine donation
creating social value
The public Medicine knowledge publicity
16Corporate Social Responsibility Report 2023
4.3.2 Decision of Material Issues
The Group continuously conducts stakeholder survey and incorporates annual materiality assessment into the risk
management process. To fully understand the concerns and expectations of stakeholders this year we invited internal and
external        stakeholders        to        participate        in        questionnaire        surveys.        Through        the        surveys        we        prioritised        material        issues        based
on        our        full        identification        and        assessment        of        materiality        and        responded        to        all        issues        in        this        report        based        on        the        assessment
result.We determine the materiality of issues by following four steps:
Material issues for the current year are identified based on reporting standards
01 Identification of issues peer benchmarking and industry sustainability trends and in the light of the
Group's business development.Stakeholders such as senior management suppliers investors consumers and
02 Research on issues government departments are invited to participate in the survey in the form of
questionnaire        to        understand        their        key        concerns.Based on the results of peer benchmarking and communication with stakeholders
03 Prioritisation of issues the issues are prioritised from two dimensions of the materiality to external
stakeholders and to Joincare.According to the results of materiality assessment a matrix of material issues for
04 Review of issuess the year and the focus areas of the report are determined. The results of materiality assessment are submitted to management and disclosed in the report after review
by management and approval by the Board of Directors.
83
95
64
12
16107
1411
1715201913
2118
22
2423
Importance on Enterprise Development
Highly Material Issues Moderately Material Issues Generally Material Issues
1 Product Quality and Safety 8 Protection of Labour Rights 15 Diversity        Equality        and         21 Energy        Efficiency        and
and Interests Inclusiveness Management
2 Emission Management 9 Talent Attraction Retention 16 Responsible Marketing 22 Biodiversity
and Development Conservation
3 Occupational Health and Safety 10 Water Resources 17 Resource Consumption Climate Change
Management Management 23 Mitigation and
4 Product R&D and
Adaptation
Technological Innovation 11 Customer Privacy and Data 18 Investor Relations Management
Security 24 Charity
5 Intellectual Property Rights Protection 12 Risk Management 19 Industry Development and
Cooperation
6 Employee        Remuneration        and        Benefits 13 Sustainable Supply Chain Management 20 Access to Healthcare
7 Business Ethics and Anti-Corruption 14 Corporate Governance and
Compliance
17
Importance on StakeholdersJoincare Pharmaceutical Group Industry Co. Ltd.
4.3.3 Support for United Nations Sustainable Development Goals
As a responsible corporate citizen the Group strives to improve the CSR management system and actively engages
in a wide range of areas such as pharmaceutical innovation access to healthcare environmental protection and rural
revitalisation aiming to support the achievement of United Nations sustainable development goals (SDGs) with our
actions.Section
Public Welfare and Charity
Examples of Our Actions*We carried on the long-term “Access to Public Welfare for Chronic DiseasesPrevention and Treatment Programme” to donate drugs to patients with
financial        difficulties        in        remote        areas        who        suffer        from        chronic        diseases.SDG1: No Poverty *We implemented the “Astragalus Root Industry Revitalisation” plan
End poverty in all its forms everywhere. supporting rural economic development through industry assistance.*We donated a total of RMB 20 million in relief funds and medical supplies to
the        earthquake-stricken        areas        in        Gansu        Province.Section
Access to Healthcare
Examples of Our Actions
*Joincare’s        modified        new        drug健 可 妥 was included in Class B of NRDL as
China’s        first        inhaled        antibiotics.*The emergency use of the two COVID-19 vaccine丽康 and 丽康民has been
SDG3: Good Health and Well-being approved.*We built a popular science new media platform matrix called “RespiratoryEnsure healthy lives and promote Experts’ Views” to promote knowledge on chronic respiratory disease and give
well-being for all at all ages. treatment support for the public.*We provided training for local healthcare workers in developing countries
contributing        to        improving        the        quality        and        capacity        of        health        services.Section
Talent Management
Examples of Our Actions
*We cooperated with higher education institutions to deliver joint training
SDG4: Quality Education programmes and provided students with traineeship positions.Ensure        inclusive        and        equitable         *We tailored job-specific development training programmes according to the
characteristics        and        business        needs        of        different        positions.quality        education        and        promote
*We encourage continuing education and support employees to obtain
lifelong learning opportunities for all. academic        degree        or        professional        certifications.
18Corporate Social Responsibility Report 2023
Section
Talent Management
Examples of Our Actions
*We set a diversity target of “no less than 49% female employees by 2032”.SDG5:        Gender        Equality *We provided various of material benefits and special care for female
Achieve        gender        equality        and         employees such as maternity leaves breastfeeding leaves and customised
empower all women and girls. physical examination services.Section
Operating with Green Sustainability
Examples of Our Actions
*By        installing        online        wastewater        monitoring        equipment        at        the        effluent
outlets of major wastewater discharge plants and networking with regulatory
SDG6: Clean Water and sanitation authorities we monitored and shared real-time discharge data of treated
wastewater.Ensure availability and *Through improving wastewater treatment processes and upgrading
sustainable management of water wastewater treatment facilities we decreased wastewater discharge increased
and sanitation for all. wastewater utilisation and reduced the concentration of pollutants in
wastewater.Section
Operating with Green Sustainability
Examples of Our Actions
*We took steady steps to develop the energy management system based on ISO
50001 standards.
SDG7:        Affordable        and        Clean        Energy *We took measures to improve energy use efficiency for energy conservation
Ensure        access        to        affordable         and emission reduction increased the investment in green production projects
reliable sustainable and modern and strived to build a low-carbon and energy-saving green production
enterprise.energy for all.Section
Talent Management
Public Welfare and Charity
Examples of Our Actions
*We have formulated the Code of Labor Employment and Ethical Conduct to
SDG8: Decent Work specify provisions on protecting labour rights as the prohibition on forced and
and Economic Growth child        labour        equal        remuneration        etc.Promote sustained inclusive and *We strengthened education and training on protecting human rights strictly
reviewed the implementation of human right policies and actively take
sustainable economic growth full improvement actions.and productive employment and *We provided professional training for local managers through the “Astragalusdecent work for all. Root Industry Revitalisation” plan.
19Joincare Pharmaceutical Group Industry Co. Ltd.
Section
Access to Healthcare
Talent Management
Examples of Our Actions
*We        adopted        inter-country        and        intra-country        equitable        pricing        policies        based
on        product        affordability.SDG10:        Reduced        Inequalities *We were deeply committed to the development of healthcare and actively involved in capacity advancement initiatives for healthcare in developing
Reduce        inequality        within        and         countries.among countries. *We prohibited any forms of discrimination and prejudice defined escalation
process and disciplinary actions and apply for social insurance subsidies for
the employees with disabilities.Section
Safeguarding Product Quality
Operating with Green Sustainability
Examples of Our Actions
*We        took        product        quality        safety        health        environmental        protection        and        other
SDG12: Responsible elements into account to minimise the negative impact that our products may
Consumption and Production have on the environment and society in the whole product life cycle.*We classified waste for treatment and actively promoted waste reduction
Ensure sustainable consumption recycling and harmless disposal by introducing advanced environmental
and production patterns. protection technology into production upgrading original production
technology and formulations and cooperating with third parties.Section
Operating with Green Sustainability
Examples of Our Actions
*We developed the Climate Change Management System set out the
Group’s procedures for identifying and assessing climate-related risks and
opportunities        as        well        as        the        requirements        for        implementing        and        monitoring        the
SDG13: Climate Action response measures.Take urgent action to combat *We identified and assessed the climate-related risks and opportunities facing
climate change and its impacts. our business and determined response measures to improve the overall ability
to manage climate risks.*We set the carbon emission target from 2022 to 2025 and the target to
achieving carbon peaking by 2028 and carbon neutrality by 2055.
20Corporate Social Responsibility Report 2023
Section
Operating with Green Sustainability
Examples of Our Actions
SDG15: Life on Land *We strictly comply with the laws and regulations related to biodiversity conservation.Protect restore and promote
sustainable use of terrestrial *We identified environmental risk factors and hidden hazards before building factories        met        the        “ecological        red        lines”        requirements        and        avoided        operating        in
ecosystems sustainably manage areas of high biodiversity value such as those close to government-designated
forests        combat        desertification         ecological reserves.halt and reverse land degradation
and halt biodiversity loss.Section
Responsible Governance
Talent Management
Examples of Our Actions
*We issued Anti-Corruption and Anti-Commercial Bribery System and the
SDG16: Peace Justice and Anti-Fraud System strengthened audit and supervision and conducted training
Strong Institutions on business ethical standards.Promote peaceful and inclusive *We        require        management        employees        and        partners        to        comply        with        business
societies for sustainable development ethics and clearly implement the anti-corruption management responsibility.provide access to justice for all and *We have built a smooth and confidential grievance escalation and reporting
build        effective        accountable        and         procedures for employees to support them to timely complain or report the
inclusive institutions at all levels. violation of labour rights and any dissatisfaction.Section
Public Welfare and Charity
Examples of Our Actions
*Dr. Jin Fang the chief scientist of the Group attended a number of
SDG17: Partnership for the Goals international conferences as a member of Medical and Chemicals Technical
Strengthen the means of Options Committee (MCTOC) focusing on research and reporting related
to MDI inhaler propellant substitution thus contributing to the fulfilment of
implementation and revitalize the Montreal Protocol in the world.global partnership for sustainable
development.
21Joincare Pharmaceutical Group Industry Co. Ltd.
4.4 Compliance Governance
Joincare        stringently        abides        by        the        requirements        of        the        Company        Law        of        the        People’s        Republic        of        China        (PRC)        the
Securities Law of the People’s Republic of PRC the Code of Corporate Governance for Listed Companies the Rules
Governing the Listing of Stocks on the Shanghai Stock Exchange and other relevant laws regulations and regulatory
documents. We keep improving the internal management system and strengthen information disclosure management and
investor relations management. By doing so we constantly improve our corporate governance.
4.4.1 Protection of Shareholders’ Rights and Interests
Joincare standardises the procedure of convening general meetings and voting at the general meeting in accordance with
the Articles of Association the Rules of Procedure for General Meetings and other relevant regulations to ensure that
each        shareholder        is        treated        equally.        We        make        full        use        of        information        technologies        such        as        online        voting        to        ensure        that        all
shareholders especially our minority shareholders can exercise their right to know and participate in decision-making in
a        more        efficient        and        effective        way.Relying on its independent business and autonomous operation ability Joincare always maintains independence. The
Group and its controlling shareholder implement independent management and accounting in business personnel assets
institution        and        finance.        The        controlling        shareholder        of        the        Group        exercises        its        rights        and        assumes        its        obligations        in        strict
accordance with laws and regulations. It does not directly or indirectly interfere with the decision-making and business
activities of the Group by bypassing the general meetings. Furthermore we have established a long-term mechanism
for preventing the controlling shareholder or the de facto controller and other related parties from occupying funds of
the listed company and infringing upon the interests of the listed company and formulated the Policy for Preventing
the Controlling Shareholder or the De Facto Controller and Other Related Parties from Occupying Company Funds.These        efforts        are        made        to        ensure        steady        development.        This        year        no        disputes        arose        from        the        appropriation        of        the        Group’s
assets by the Group’s controlling shareholder or the de facto controller and other related parties and the detriment of the
interests of the Group and the minority shareholders.
4.4.2 Performance of Duties of Directors and Supervisors
Committed to strengthening governance Joincare keeps improving the management structure of the Board of Directors
to build a more professional and diverse Board. We have formulated and disclosed the Board Diversity Policy to ensure
that a series of criteria are taken into account when the Nomination Committee selects Board members. Selection criteria
include those in relation to educational backgrounds professional experience expertise and tenure and diversified
factors such as gender age nationality cultural backgrounds and ethnicity are also included. At the same time we
disclose measurable targets for the implementation of the diversity-related policies and relevant progress in the social
responsibility report on an annual basis.
22Corporate Social Responsibility Report 2023
The number of members of the Board of Directors1 is nine (four independent directors in total); there are three female
directors accounting for over 30% of the total. Members of the Board of Directors have backgrounds and expertise in
the        pharmaceuticals        corporate        management        finance        accounting        law        and        production.        Based        on        their        extensive        industry
experience they can provide strategically forward-looking opinions for the Group’s governance and development.In addition the Board of Directors has established the Audit Committee the Remuneration Committee the Strategy
Committee the Nomination Committee and the Corporate Social Responsibility Committee. It has given full play to
the        professional        advantages        of        each        committee        to        assist        in        legal        compliant        scientific        and        accurate        decision-making        and
ensure the integrity and transparency of governance procedure. There are three supervisors in the Supervisory Committee
of Joincare including one employee representative. The Supervisory Committee performs its duties in accordance with
the law supervises the performance of duties of the Group’s directors and senior management regularly inspects the
Group’s        financial        position        and        performance        pays        attention        to        the        Group’s        major        investment        projects        and        fully        safeguards
the interests of the Company and all shareholders.The Company’s directors supervisors and senior management make full use of various channels to participate in various
training on the standardized operation of listed companies (including but not limited to various specific training or
forums continuing professional development courses internal training reading regulatory newsletters or enforcement
briefings on listing rules issued by the Stock Exchanges China Securities Regulatory Commission etc.) which contain
the latest changes in industry policies information on the regulation of listing and company's code of business ethics
etc. to continuously improve their ability to perform their duties.
4.4.3 Disclosure Transparency
In strict accordance with relevant standards and guidelines of the China Securities Regulatory Commission (CSRC) and
the Shanghai Stock Exchange (SSE) the Group has formulated the Management System for Information Disclosure
Affairs        which        clarifies        requirements        for        the        Group’s        information        disclosure        and        requires        active        fulfilment        of        information
disclosure obligations. To better meet the demands of investors we make continuous innovations in the forms of
information disclosure enrich the content of disclosure and strengthen voluntary information disclosure. To safeguard
the        investors'        right        to        know        we        disclose        our        management        through        various        channels        such        as        the        Group's        official        website
media        reports        and        WeChat        official        account.In 2023 we filed and disclosed 220 documents in compliance with the information disclosure principle of authenticity
accuracy integrity timeliness and transparency with a total Chinese character count of 2.94 million outperforming 95%
of our A-share listed peers. Our information disclosure has been highly recognised by regulators and capital market.In 2023 Joincare was again rated “A” (Excellent) in the information disclosure assessment over listed companies
organised        by        the        Shanghai        Stock        Exchange.        It's        the        third        year        in        a        sequence        we        got        this        rating.        We        also        won        the        award
of the “Excellent Practices of the Office of the Board of Directors” in the “Best Practices of the Office of the Board ofDirectors” selection held by the China Association for Public Companies (CAPCA) making us a winner of this award for
two consecutive years.
1Board members and the date of formal appointment: Zhu Baoguo: December 1992; Liu Guangxia: July 1995; Yu Xiong: August 2021;
Qiu        Qingfeng:        August        2006;        Lin        Nanqi:        December        2019;        Huo        Jing:        May        2019;        Qin        Yezhi:        May        2020;        Peng        Juan:        August        2021;        Yin
Xiaoxing: September 2023.
23Joincare Pharmaceutical Group Industry Co. Ltd.
4.4.4 Investor Relations
Focusing on investor relations management Joincare has formulated and implemented the Regulations on Investor
Relations Management while establishing a sound communication mechanism to facilitate engagement with investors
through various channels. The Board of Directors designates special department and employees to take charge of
information        disclosure        and        investor        relations        management        promptly        respond        to        investors’        inquiry        and        earnestly        listen        to
their suggestions and opinions. By doing so we aim to achieve positive interaction with investors.To        enhance        our        connection        with        medium        and        small        investors        the        Office        of        the        Board        of        Directors        designates        personnel        to
provide Q&A for investors via SSE e-interactive platform answer their phone calls and reply to their emails. In 2023 we
provided 95 Q&A for investors via SSE e-interactive platform and answered 345 phone calls from them and published 16
articles        on        our        WeChat        official        account.        The        concerns        addressed        include        corporate        performance        business        conditions        IR
events and investment progress.This        year        to        further        strengthen        our        relations        with        institutional        investors        we        held        three        online        performance        briefings        and
one activity “Visiting Listed Companies”. Furthermore we actively participated in the 2023 Listed Company Investors'
Online        Collective                Reception        Day        event        in        Shenzhen        where        we        answered        investors'        questions        on        the        operation        of        the
Company and other aspects in detail. We also maintain regular communication with over 20 institutional investors
presenting to them our business conditions and investment value. In terms of international investor relations management
we keep expanding the channel of communication with international investors by launching the Global Depository
Receipt (GDR) in Switzerland. In November 2023 we participated in the 22nd Asia Pacific Summit held by Morgan
Stanley. At the Summit we introduced our overseas expansion plan to over 10 top family offices in Singapore aiming
to seek cooperation. In addition we participated in overseas roadshows in the United Arab Emirates Switzerland and
other        countries.        Through        these        activities        we        showed        overseas        investors        information        about        our        business        model        financial
position development strategy etc. which enabled overseas investors to have a deeper understanding of our strength and
potential effectively enhanced our reputation and influence and better publicised our value. Also we received positive
responses from broad mass of investors.Thanks to our unremitting efforts and progress in corporate governance information disclosure investor relations
management market value management promotion and management of public opinion Joincare has gained wide
recognition from the capital market and all sectors of society. In 2023 we were invited to the Crystal Ball Award and
won the title of “Most Promising Listed Company”. Also we won “Best ESG Information Disclosure” award from New
Fortune and other awards. In addition the Board Secretary won honours such as the “Golden Board Secretary” (19th
session) award from New Fortune the “Tianma Award - Outstanding Board Secretary for Investor Relations” award and
the 5A rating in “2023 Performance Appraisal on Board Secretaries of Listed Companies” held by China Association for
Public Companies (CAPCA).
2023 Outstanding Board Secretary for
2023 Most Promising Listed Company Investor Relations award
24Corporate Social Responsibility Report 2023
4.5 Risk Management
4.5.1 Comprehensive risk management
The Group has established a well-developed risk management system by formulating and implementing the
Comprehensive Risk Management System and building a risk management organisational structure to regulate risk
assessment and management process. We also set overall risk management goals to improve overall risk prevention and
control. The Board of Directors as the highest decision-making body in comprehensive risk management takes charge of
supervising        risk        management        practices.        The        Audit        Committee        takes        charge        of        reviewing        the        effectiveness        of        overall        risk
identification assessment internal management and monitoring procedures. Management as the execution body takes
charge        of        the        effectiveness        of        comprehensive        risk        management        to        the        Board        of        Directors.        All        functional        departments        play
their roles in supporting the implementation of risk management procedure. The Supervision and Audit Department as
the leading management department of comprehensive risk management takes charge of conducting risk management
under the guidance of the Audit Committee.We continuously collect information identify internal and external risks formulate comprehensive risk management
strategies and implement actions to address risks. Furthermore we monitor risks and give relevant early warning. We
conduct periodic risk reporting monitor and evaluate the implementation and effect of risk management and rectify
issues identified. We review risk exposure encountered by the Company on an annual basis. Against financial and non-
financial risks in main business and other high-risk areas we assess the internal controls and engage independent third-
part agencies to conduct external risk audit. We also conduct impairment testing of goodwill using sensitivity analysis.Through        effective        risk        management        processes        we        aim        to        minimise        the        impact        of        adverse        factors        and        safeguard        the        steady
and        quality        development        of        the        Group.
25Joincare Pharmaceutical Group Industry Co. Ltd.
4.5.2 Emerging Risks
The Group has identified and assessed emerging social and environmental risks that might influence the long-term
development        of        the        Group        and        implemented        effective        responses        in        operation        to        prevent        or        mitigate        such        risks.Changes in industry policies
Risk and impact description Mitigating actions
Pharmaceutical industry is susceptible to changes in industry We closely monitor the industry developments and reforms
policies. With the continued deepening of healthcare reform and address significant changes in pharmaceutical industry
and the advancing of the industry's supply-side structural policies through early investment early transformation
reform a number of industry policies such as the revisions and early compliance. To continuously improve our core
to the Drug Administration Law the acceleration of Generic competitiveness we intensify efforts in R&D and innovation
Drug Consistency Evaluation the adjustments to the list of of new products thereby achieving R&D-driven development.medicines covered by the medical-insurance system and the In addition the Group actively seeks for contracts under
expansion of volume-based procurement have been rolled and participates in the negotiations relating to the NRDL.out successively. This creates enormous challenges to the Continuous efforts are made to expand hospital coveragepharmaceutical industry for its future development. In 2023 and product sales. In this way we achieve “selling more atone major products of Joincare won the bid for the ninth lower prices” diminishing the influence of price adjustment
rounds of centralised procurement. This will exert significant for medical insurance payment on the steady growth of the
influence        on        the        sales        price        and        market        shares        in        the        future. Company's performance.Application        of        Artificial        Intelligence
Risk and impact description Mitigating actions
AI technology plays a vital role in promoting the development With the rapid development of AI technology the global data
of medical and health services. However AI is facing various integration and management mechanism is expected to be
challenges and uncertainties as its application in healthcare further improved in the future while data barriers between
industry is still in its early stages. In recent years Joincare medical institutions government departments and social
has taken the lead in investing in AI drug R&D. We have third-party agencies are broken down. This will enable
been working with Tencent Quantum Lab on the research us to significantly improve efficiency of data production
of        genome        gene        cluster        and        functional        element        sequence         acquisition        and        archiving.        We        will        also        keep        abreast        of        the
predication and metabolic pathway optimisation through AI regulatory developments relating to AI application in the field
technology. As AI relies much on extensive and accurate data of healthcare. Sustained efforts are made to optimise our data
inputs        low-quality        data        or        non-representative        data        applied        may         management and strengthen risk prevention and control in the
result in discrepancies in research results or even bad harmful process        of        “quantum        computation        +        AI”        application.or discriminatory results.
4.6 Carrying Forward the Party-Masses Spirit
Guided by Xi Jinping's Thought on Socialism with Chinese Characteristics for a New Era the general Party branch of
Joincare        acknowledges        and        implements        the        general        requirements        for        Party        building        in        the        new        era.        Focusing        on        the
central tasks and serving the overall interests we create 7 “Party building+” brands with a view to highlighting the
role        of        “Party        building        engine”        in        all        aspects.        We        stringently        enforce        the        “first        topic”        principle        (starting        every        important
Party member meeting with the learning of the Party or President's instructions) and continuously practise the policy of
“holding Party branch general meetings meetings of Party branch committees Party group meetings and Party lectures”.Also we are strengthening the engagement between the Party and the people and actively promoting the coverage of
Party organisations and Party work at the primary level. We comprehensively implement the development concepts of
innovation coordination green openness and sharing to help invigorate the market competitiveness of enterprises.
26Corporate Social Responsibility Report 2023
We keep improving Party building work and fully enhance the cohesion of corporate Party branches at all levels. In
2023 we led the establishment of the “Office of Secretary” in Shenzhen Nanshan District for the biopharmaceutical
industry chain. This will give full play to Party building organisation and leadership across the industry chain promote
the coordinated development of “government hospitals enterprises research institutions universities users” in the
biopharmaceutical        industry        and        strengthen        the        demonstration        effect.Case
“Walking Party Lecture” introduced to Joincare
In 2023 the 22nd “Walking Party Lecture” organised by Shenzhen High-tech Zone Party Committee
brought lecturers to the Joincare Office of Secretary for the biopharmaceutical industry chain. They
visited and understood on site the excellent practice of Joincare in Party building corporate operation
and management product R&D and innovation. During the visit NPC Deputy Jin Fang gave a Party
lecture to representatives of the High-tech Zone Party Committee. In the lecture the Deputy shared
the Spirit of Two Sessions and Cutting-edge Developments in the Biopharmaceutical Industry and
brought us details of the grand “two sessions” including the core messages in General Secretary Xi
Jinping’s speech and two sessions’ spirit. She also exchanged her feelings and experience from the
“two sessions” with the representatives of the High-tech Zone Party Committee.“Walking Party Lecture” introduced to Joincare
Joincare organised Party member activities
In 2023 we carried out a Party's Day activity: organising Party members to visit Shenzhen Nantou
Ancient Town with a view to searching for red memory and looking back into the history of reform
and opening up in Shenzhen thereby fostering our resolution to forge ahead toward a brighter future.In addition we held a series of “Red Tour” activities and organised Party members and cadres to visit
Shenzhen Nanshan District Party Building Park where we relived the glory days of the Party and
searched        for        red        memory        enabling        us        to        forge        ahead        with        firm        belief.Joincare's Party member activities
27Joincare Pharmaceutical Group Industry Co. Ltd.
4.7 Integrity and Business Ethics
Joincare strictly abides by the Law of the PRC Against Unfair Competition the Interim Provisions on Prohibition of
Commercial Bribery the Criminal Law of the PRC and other relevant laws and regulations. We always stick to the
concept of integrity and self-discipline in our operation of businesses. The Audit Committee of the Board of Directors
plans and oversees the work related to business ethics and anti-corruption and the Supervision and Audit Department
is responsible for the implementation to ensure legal and compliant operation. We keep improving the integrity
management system by strengthening audit and supervision over internal management and promoting integrity culture
to raise integrity awareness within the Group. In 2023 there were no violation cases of corruption bribery fraud money
laundering        and        conflict        of        interest        in        Joincare.
4.7.1 Enhancing Anti-corruption Mechanism
The Group is well aware of the importance of integrity management so we manage business ethics and anti-corruption
issues at the level of the Board of Directors. The Company has deliberated and approved the Anti-Corruption and Anti-
Commercial Bribery System and the Anti-Fraud System at the 22nd session of the 8th Board of Directors’ Meeting and
has public disclosed the two systems. The policies define ethical standards to regulate the conduct of employees and
partners        thereby        promoting        the        sound        development        of        the        Group.        In        addition        specific        requirements        have        been        set        up        for
certain high-risk business segments including the Financial Management System the Outbound Investment Management
System to ensure legal and compliant operations. The systems mentioned above are applicable to all the employees of
Joincare (including but not limited to full-time and part-time employees interns contractors and etc).We        require        employees        management        and        partners        to        comply        with        business        ethics        and        clearly        implement        the        anti-
corruption management responsibility. To prevent corruption risk all employees receive training on the code of conduct
in relation to anti-corruption and anti-commercial bribery at the onboarding stage and sign the Commitment Letter of
Anti-commercial Bribery to clarify respective integrity responsibility and forbid violations. The management shall sign
the Oath of Integrity for Senior Executives of the Company to ensure that they perform their duties with integrity and
self-discipline. At the same time we strictly regulate the process in business cooperation by developing the Management
Measures for Material Procurement of Joincare the Implementation Rules for Procurement Bid Evaluation of Joincare
and other regulations to ensure that the procurement process is fair and just. We have formulated the Implementation
Rules for Bidding Management over Construction and Engineering Projects of Joincare for the procurement of projects
related        to        engineering        and        equipment        raw        materials        and        excipients        to        further        strengthen        control        on        bidding        process.When signing a contract with the Group all suppliers shall sign the Anti-Commercial Bribery Agreement as an appendix
to commit anti-corruption and anti-commercial bribery and promise not to violate business ethics during the performance
of the contract.
4.7.2 Internal Audit and Supervision
Joincare complies with the applicable laws and regulations such as the Provisions of the National Audit Office on
Internal Audit and the Guiding Opinions of the General Office of the State Council on Reforming and Perfecting the
Comprehensive Supervision System for the Medical and Health Industry and formulates the Rules for Implementation
of the Audit Committee the Internal Control System to regulate internal control work of the Group. We continuously
carry out the audit of business ethics standards and anti-corruption policies on all operations of the Group. We set
up the Supervision and Audit Department which is independent of our business operations to formulate the annual
work scheme for audit and supervision and carry out audit as scheduled. The employees of the Supervision and Audit
Department are full-time employees who are not directly involved in our production and operational activities. The audit
results are reported directly to the Audit Committee of the Board of Directors. Through maintaining independence at
the organisational operational and individual levels we ensure that the audit results are independent fair objective and
accurate. Moreover the Group's Supervision and Audit Department is responsible for reviewing and supervising the
implementation of policies such as the Anti-Corruption and Anti-Commercial Bribery System and the Anti-Fraud System
and assessing the effectiveness of business ethics management measures. In addition we on an annual basis conduct
audit on all subsidiaries with the Annual Risk Management and Internal Control Report issued and develop special
audit        plans.        For        issues        identified        in        the        audit        we        promptly        propose        rectification        advice        require        the        audited        company        to
complete        the        rectification        within        120        days        and        verify        the        rectification        results.In 2023 the Audit and Supervision Department conducted audit on all subsidiaries as planned. The scope of the audits
covered all businesses of the Group including the management and implementation of internal controls over subsidiaries’
business activities particularly the management of engineering financial and expense human capital procurement
inventory        quality        EHS        contract        and        other        aspects.        No        major        defects        were        found        in        2023.
28Corporate Social Responsibility Report 2023
4.7.3 Whistleblower Protection
Joincare keeps improving the reporting management system and whistleblower protection mechanism. We have
formulated and publicised the Measures for the Management of Reporting and Complaining which standardise the
reporting process and clarify that all the employees customers and suppliers of the Group have the right to report
corruption bribery fraud and other misconducts thus fully protecting the reporting rights of employees and partners.Also the Company has convened a meeting of the Audit Committee of the Board of Directors on 2 April 2024 to
deliberate the Joincare Pharmaceutical Industry Group Co. Ltd. Complaining Reporting and Whistleblower Protection
Policy        which        was        disclosed        on        the        official        website        at        the        same        time.We have set up various reporting channels available on the Group's official website including letter telephone email
etc.        for        choice.        The        Group's        Supervision        and        Audit        Department        and        Anti-fraud        Office        are        responsible        for        the        acceptance
of reports timely investigation and handling and case summarising and reporting. The case shall be completed within 30
days        from        the        date        of        acceptance        and        the        result        shall        be        notified        to        the        whistleblower.In addition we strictly keep confidential the information on whistleblowers and the content of reports and complaints
according        to        the        requirements        of        the        relevant        policies.        We        classify        the        materials        and        records        of        reports        as        private
and confidential and keep them under the custody of designated personnel thereby protecting whistleblowers from
the disclosure of reports and fully safeguarding reporters' legitimate rights and interests. Employees who violate
confidentiality provisions disclose whistleblowers' information or retaliate whistleblowers will be held legally liable
upon        verification.Joincare's Reporting and Complaint Channels
Tel:0755-86252316 0755-26980226
Internal email: SAMD@joincare.com
External email: joincaresamd@163.com
Address: Joincare Pharmaceutical Group Building No. 17-2 Langshan Road
Nanshan District Shenzhen
29Joincare Pharmaceutical Group Industry Co. Ltd.
4.7.4 Fostering Integrity Culture
The Group adheres to the philosophy of legal transparent and honest operation. Integrating integrity culture development
into        operation        risk        prevention        we        continuously        stress        the        significance        of        abiding        by        disciplines        and        laws        and        developing
a sense of integrity through integrity culture promotion and training for all employees. These efforts help foster a
corporate culture of fairness and integrity.We        set        out        the        requirements        for        business        ethics        in        the        Employee        Manual        to        regulate        the        behaviour        of        all        employees.        We
promote the culture of business ethics in the induction training of all new employees to raise their integrity awareness. In
2023 we provided all employees (including full-time part-time and contractors) with online training on ethical standards
including        requirements        of        the        Anti-Corruption        and        Anti-Commercial        Bribery        System        and        the        Anti-Fraud        System        and
requirements        for        integrity.        This        aims        to        raise        employees'        awareness        of        anti-corruption        anti-commercial        bribery        and        anti-
fraud to ensure the implementation of business ethics policies in the Group. Meanwhile all directors supervisors and
senior management of the Group have participated in several trainings on the standardised operation of listed companies
including topics of compliance management anti-commercial bribery anti-monopoly and risk management.
4.8 Information Security
Joincare continuously promotes the application of information technology. Our daily business process and operation
management are empowered by using information technology. We have been using various information systems to
support our daily operation such as the Customer Relationship Management (CRM) system and the System Applications
and Products (SAP) system. This year we introduced the office system Feishu to further improve the daily work
efficiency        of        the        Group.We stringently safeguard the steady operation of information systems to ensure information security of the Group and
customer privacy. We have formulated a range of information security management policies that are implemented
across the Group such as the Management System for the Security of Computer Information System the Management
Requirements        for        IDC        Data        Centre        Operation        and        Maintenance        the        Backup        System        and        the        Process        of        Reporting
Suspicious Affairs of Information Security to standardise information security management systems and processes.Additionally we have established an information security management organisational structure in the Group. Under the
structure        the        Vice        President        serves        as        the        chief        leader        of        information        security        management.        To        ensure        adequate        response
to any sudden disaster events we keep improving the Emergency Plan for Network Server Systems and the Disaster
Recovery Plan for Information Systems which clarify the response mechanism and processing procedures and measures
in case of emergency. In addition we conduct relevant emergency drills on a regular basis to verify the feasibility and
integrity        of        emergency        plans.        These        efforts        are        aimed        to        ensure        our        information        security        and        business        continuity.        In        2023
we carried out all-in-one backup appliance test and data backup drill to verify the effectiveness of relevant emergency
plans.In daily operations and management we actively protect the end computers against viruses by deploying the Endpoint
Detection        and        Response        (EDR)        system.        The        next-generation        firewall        is        deployed        to        conduct        network        penetration        testing
and in-depth inspection of system security and carry out security assessment and vulnerability scanning. A security
mechanism        of        the        Intrusion        Prevention        System        (IPS)        is        also        in        place        which        uses        a        variety        of        defensive        techniques        to        stop
intrusion when identifying security threats in real-time with intrusion detection as the core. In addition we perform a
regular        data        backup        and        regularly        inspect        hardware        equipment        to        ensure        data        security.We        keep        improving        information        security        management        capability.        Specifically        the        Group        engages        independent        third-party
agencies to annually audit information systems and information security policies and identify relevant risks. Furthermore
we make improvements based on the audit results to constantly perfect our information security risk management system.Over the past three years the Group has not experienced any information security incidents.In        addition        we        pay        a        high        emphasis        on        information        security        training.        All        our        employees        are        required        to        participate        in
the training on information security and privacy protection. The training is carried out online covering topics such as
the        definition        of        information        security        risks        introduction        to        preventive        measures        identification        and        treatment        of        phishing
email and privacy information protection aiming to strengthen all employees' awareness of information security and
capability of risk prevention. By the end of the reporting period all employees of the Group have completed training
sessions on data security and privacy protection.
30Corporate Social Responsibility Report 2023
05
Safeguarding
Product Quality
SDGs in this section
Product        quality        is        a        cornerstone        for        the        long-term        sustainable        development        of        Joincare.        We        constantly        improve        the        product
lifecycle        quality        management        systems        strengthen        our        supply        chain        quality        management        capabilities        and        implement        the        concept
of        responsible        marketing        to        provide        customers        with        reliable        and        high-quality        pharmaceutical        products        thereby        safeguarding
public health.To        continuously        improve        the        quality        management        system        and        operation        mechanism        to        enhance        the        quality        control        performance
we        have        set        the        overall        quality        goals        and        consistently        to        monitor        the        progress        towards        these        goals        on        an        annual        basis.        The        goals
include:
Market sampling pass rate reaches Customer complaint rate is less than Customer satisfaction rate is greater than
100%1%90%
31Joincare Pharmaceutical Group Industry Co. Ltd.
5.1 Quality Management SystemAdhering to the basic principles of "risk management whole-process control and social co-governance” Joincare keeps
upgrading        and        refining        the        lifecycle        quality        management        system        covering        medicine        R&D        production        sales        and        usage.The Group undertakes the responsibilities of marketing authorisation holders (“Holder” or “MAH”) and continuously
consolidates        the        group-wide        product        quality        management        foundation        to        provide        patients        with        safe        and        effective
medicines.In        2023        the        Group        and        its        subsidiaries        reviewed        and        optimised        the        quality        management        system        for        R&D        production
sales and use. In this regard a number of documents have been newly formulated including the Drug Safety Signal
Detection and Management Process the Control and Management of Medical Device Quality Agreements the
Control and Management of Entrusted Production of Medical Devices and the Collection and Management of Quality
Tracking Information and User Feedback. These documents cover various businesses of the Group such as chemical
pharmaceuticals        TCM        biologics        chemical        APIs        and        intermediates        diagnostic        reagents        and        equipment        healthcare
products        and        medical        devices        to        ensure        the        reliable        quality        of        all        our        products.        We        also        revised        and        refined        the        existing
management documents. We made them easier to read and implement by simplifying the explanation of some operating
procedures        and        adding        flow        charts        to        procedure        descriptions.We        take        proactive        measures        to        meet        regulatory        requirements        on        product        quality.        We        report        the        production        and        sales        post-
marketing research changes risk management and other information of drugs to the medical products regulators every
year        in        accordance        with        our        annual        reporting        policy        to        ensure        that        our        quality        system        complies        with        laws        and        regulations.In        the        future        Joincare        will        continuously        explore        effective        ways        to        manage        quality        while        ensuring        compliance        with
external        regulations        to        provide        patients        with        safe        reliable        and        quality        products.
5.1.1 Quality Management System in R&D
The        Group        is        making        continuous        efforts        to        build        a        robust        R&D        quality        management        system        and        consolidate        its        product
R&D        management        capabilities.        In        line        with        the        requirements        of        ISO        9001        ICHQ10        and        the        Good        Manufacturing
Practice (“GMP”) we keep optimising various processes of product R&D and daily records management. Each R&D
unit        is        required        to        designate        special        R&D        quality        assurance(        “QA”)        personnel        to        supervise        the        compliance        from        project
initiations R&D management project operation and technology transfer to routine inspection thus improving the R&D
quality        management.In        2023        we        improved        our        R&D        quality        management        system        in        accordance        with        domestic        and        overseas        laws        and
regulations and based on our own R&D management characteristics. We have also formulated management documents
such as the General Rules for Sample Testing and Data Processing and the Procedure for Electronic Data Management.Thanks to those efforts our R&D processes such as file management lab management instrument and device
management materials and reagent management as well as preparation research have been optimised. In addition
the Group continues to strengthen the ability in on-site supervision and management of R&D activities. The on-site
inspections cover sample preparation materials management auxiliary books procedure execution etc. We conduct
internal        audits        on        the        effectiveness        of        the        R&D        quality        system        to        identify        deficiencies        in        the        R&D        quality        management
process        and        make        targeted        rectifications        and        improve        our        R&D        quality        management        capabilities.        We        also        regularly
review the original records test reports electronic forms and other data. Any abnormal R&D data discovered is promptly
investigated        and        corrected        and        the        requirements        for        risk        and        quality        management        and        control        of        R&D        processes        are
strictly implemented.In        terms        of        clinical        trials        the        Group        has        set        up        the        Department        of        Clinical        Research        to        strengthen        quality        management
in stages of design preparation implementation etc in clinic trial. The goal is to ensure that investigational medicinal
products        (IMP)        biological        sample        management        clinical        operations        clinical        quality        control        and        other        quality
management related aspects are legal compliant safe and reliable.
32Corporate Social Responsibility Report 2023
Design
·The Department of Clinical Research participates in the discussion and review of key documents
of the clinical trial project to ensure that the trial is scientific reasonable and feasible from the
perspective of design.Preparation
·The Department of Clinical Research develops the clinical monitoring plan the project
management        plan        and        the        quality        control        plan        and        makes        the        project        audit        plan        at        the        group        level.This        is        to        ensure        that        the        clinical        monitoringte        team        project        management        team        quality        control
team        and        group        audit        teams        perform        their        quality        management        functions        effectively        and        to
safeguard        the        quality        of        clinical        trials.Implementation
·The        Department        of        Clinical        Research        oversees        the        relevant        quality        management        activities.        It
is responsible for ensuring that clinical trial data is truthful accurate and reliable and that the
maintenance of clinical trial documents trial procedures IMPs biological samples and other
trial        information        are        all        compliant        with        the        relevant        requirements        of        the        quality        management
specification        for        the        clinical        trials        of        medical        products        and        the        quality        management        system.
5.1.2 Quality Management in Production
The        Group        strictly        abides        by        national        laws        and        regulations        and        has        established        the        production        quality        management
system of Joincare in accordance with the Drug Administration Law of the PRC the Provisions for the Supervision and
Administration        of        Drug        Manufacturing        and        the        Good        Manufacturing        Practice.        In        2023        we        refined        our        production        quality
management system in accordance with the latest national regulations by adding the Procedure for Routine Supervision
and Administration of Entrusted Drug Production the Management Procedure for Entrusted Inspection and the Duty
Performance        Management        Procedure        for        Qualified        Persons.        Detailed        rules        on        production        quality        management        were
improved        and        the        quality        supervision        and        management        of        the        production        subsidiaries        was        strengthened.        In        terms        of
medical        devices        we        continue        to        optimise        the        quality        management        system        including        lab        management        electronic        data
management        inspection        management        equipment        and        facility        management        and        other        test        modules        based        on        the        original
system        to        enhance        our        ability        to        control        the        quality        of        these        products.        In        addition        we        constantly        improve        the        production
quality        management        system        to        meet        international        standards        and        urged        subsidiaries        to        obtain        international        certifications        to
reinforce        product        quality        management        capabilities        and        deliver        competitive        pharmaceutical        products        to        global        markets.
33Joincare Pharmaceutical Group Industry Co. Ltd.
Registration        and        Certification
By the end of the reporting period the overall registration and certification of Joincare’s APIs formulations and
diagnostic reagents are shown as follows:
Table:        Global        certification        of        Joincare
Project Joincare’s        International        Certification        by        the        End        of        the        Reporting        Period
·* 18        varieties        obtained        international        certifications        for        on-site        inspections.APIs ·* 35 international certifications within the validity period were obtained (including 5
certifications        for        FDA        on-site        inspections        and        14        CEP        certifications).International ·* 7        varieties        obtained        international        certifications.Certification Formulations
·* 18        international        certifications        within        the        validity        period        were        obtained.In Vitro ·* 10        varieties        obtained        international        certifications.Diagnostic
Reagents * ·* 5        international        certifications        within        the        validity        period        were        obtained.By the end of the reporting period all the production lines and related products of the Group and its subsidiaries had complied with
the        GMP        regulations.        Joincare        and        its        multiple        production        subsidiaries        had        passed        the        quality        management        system        certification.Table: GMP compliance of production lines of Joincare
Project Joincare’s        GMP        Certifications        by        the        End        of        the        Reporting        Period
APIs 79 production lines of 7 API producers complied with GMP regulations
GMP
Preparations 63production lines of 9 preparation producers complied with GMP regulations
Certification
In Vitro Diagnostic 2 production lines of 1 in vitro diagnostic reagent producers complied with
Reagents GMP regulations
Table:        Certification        of        the        quality        management        system        of        Joincare
Company Name Certification
Joincare GB/T19001-2016/ISO 9001:2015; ISO/IEC 17025:2017/CNAS-CL01
Taitai Pharmaceutical GB/T19001-2016/ISO 9001:2015
Joincare Haibin GB/T19001-2016/ISO 9001:2015
Jiaozuo Joincare GB/T19001-2016/ISO 9001:2015
Fuzhou Fuxing GB/T19001-2016/ISO 9001:2015
Ningxia Pharmaceutical GB/T19001-2016/ISO 9001:2015; ISO 22000:2018
Livzon Diagnostics GB/T42061-2022/ISO 13485:2016
Shanghai Frontier GB/T19001-2016/ISO 9001:2015; ISO/IEC 17025:2017/CNAS-CL01
Guangzhou Joincare GB/T19001-2016/ISO 9001:2015; ISO/IEC 17025:2017/CNAS-CL01
34Corporate Social Responsibility Report 2023
Product Testing Capacity
All        our        production        subsidiaries        have        been        equipped        with        labs        for        the        testing        of        drugs.        High-precision        devices        such        as
high-performance        liquid        chromatograph        gas        chromatograph        particle        size        analyser        disintegration        analysers        and        multi-
functional automated microbiology analysers enable production subsidiaries to conduct many test projects independently.This        can        meet        their        needs        for        quick        testing        and        the        R&D        and        testing        of        innovative        products        ensuring        product        quality        in        a
comprehensive manner. Meanwhile our Analysis and Testing Centre conducts in-house testing on innovative medicines
and high-end complex preparations as well as research and tests on the compatibility of packaging materials ensuring
that        the        products        meet        the        quality        management        requirements.        In        2023        the        Analysis        and        Testing        Centre        of        the        Group
and the testing centres of Shanghai Frontier and Guangzhou Joincare passed the lab certification of China National
Accreditation Service for Conformity Assessment (CNAS). This means that the testing centres of the Group and its
subsidiaries are fully capable of performing testing in accordance with ISO/IEC 17025.In addition we have been actively engaged in precautionary tests and the detailed investigation of possible impurities in
product formulations and production processes. We identify potential product issue from the perspective of safety and
quality        and        promptly        optimise        formulations        processes        packaging        storage        and        other        production        steps        so        as        to        control
potential        product        risks        at        their        origin.        Furthermore        we        pay        sustained        attention        to        the        latest        requirements        for        product
quality        in        the        industry        and        stakeholders’        expectations        and        engage        qualified        third        parties        to        perform        quality        tests        when
necessary.Case
Simulated precautionary test under transport scenarios
Short-term deviations from the specified storage conditions during transport may affect product
quality.        To        assess        the        potential        impact        of        short-term        deviations        from        the        specified        temperature        on
our products we carry out repeated simulated precautionary tests on various types of product. In
December 2023 we placed temperature probes in the vehicles destined for Shenyang to record the
lowest and highest temperatures during transport. Considering the actual transportation conditions
and        the        product        quality        we        designed        worse        testing        conditions        and        longer        storage        periods.        For
example Levosalbutamol Hydrochloride Nebuliser Solution should be protected from light stored
below 25°C and should not be frozen. In the simulated test we assessed the stability of the solution
stored at temperatures ranging from -20°C to -10°C for 10 days and at 40°C for one month. Based
on        the        changes        in        the        test        data        we        predicted        potential        product        quality        risks        and        accordingly        gave
instructions        to        transport        service        providers.        This        ensures        that        product        quality        isn’t        compromised        during
transport        and        helps        to        control        product        quality        and        safety        risks        at        the        source.Simulation validation of the aseptic API process and the aseptic preparation filling
process of Haibin Pharma
Haibin Pharma set production standards for the aseptic API process and the aseptic preparation
filling        process        in        accordance        with        GMP        requirements        and        carried        out        simulated        tests        of        the        aseptic
production line through medium filling against the standards. It aimed to further specify and update
the        standards        for        the        qualified        conditions        of        aseptic        production        and        to        provide        technical        support        for
quality        control        in        the        production        stage        and        for        testing        in        later        stages.        During        the        simulation        we        tested
the maximum number of people involved in the aseptic production the maximum storage time for
equipment        and        materials        after        sterilisation        or        disinfection        the        maximum        process        retention        time        and
the maximum duration of open operation of sterile products. In this way we successfully ensured the
aseptic operation standards for product manufacturing.
35Joincare Pharmaceutical Group Industry Co. Ltd.
Case
Jiaozuo        Joincare        improves        its        product        quality        testing        ability
To meet national standards and customer needs Jiaozuo Joincare focuses on building up its product
testing        capabilities.        It        has        set        quality        standards        and        test        operation        specifications        for        all        products
and        is        equipped        with        high-precision        equipment        such        as        high-performance        liquid        chromatograph
gas chromatograph particle size analyser protein analyser and specific surface area analyser.Currently        Jiaozuo        Joincare        is        able        to        test        the        quality        of        7-aminocephalosporanic        acid        (7-ACA)
deacetyl-7-aminocephalosporanic acid (D-7ACA) demeclocycline hydrochloride (DH) and
4-Acetoxyazetidinone (4AA). Jiaozuo Joincare has developed specific test operation specifications
and        conducts        test        control        to        address        quality        issues        of        particular        concern        to        customers        such        as        residues
of        bacterial        endotoxin        protein        and        α-aminoadipic        acid        in        7-ACA.        This        helps        Jiaozuo        Joincare        fully
improve its product testing capabilities. In 2023 Jiaozuo Joincare tested over 3000 batches of 7-ACA
over 800 batches of D-7ACA over 400 batches of DH and over 700 batches of 4AA as well as over
8600 batches of raw materials used in the products.
Regulatory Inspections
Joincare        cooperates        with        regulatory        inspections        and        takes        prompt        action        to        correct        any        quality        management        issues
identified        so        as        to        further        improve        its        quality        management        system        and        management        performance.        In        2023        we        received
118        inspections        from        regulators        and        the        inspection        results        all        met        the        requirements        without        any        significant        or        serious
deficiencies        identified.
5.1.3 Quality Management in Operation
In strict compliance with the Good Supply Practice (“GSP”) Joincare has newly formulated multiple management
policies        including        the        Drug        Traceability        Management        Policy        the        Operating        Procedures        for        the        Use        of        Equipment        and
Facilities        and        the        Operating        Procedures        for        the        Verification        of        Equipment        and        Facilities.        We        have        also        updated        the
existing        policies        so        as        to        better        control        product        quality        in        the        procurement        storage        distribution        and        transport        of        drugs.We        have        built        the        drug        product        traceability        system        in        accordance        with        the        national        regulatory        requirements        refined        and
updated        the        Drug        Traceability        Management        Policy        fulfilled        the        responsibilities        for        quality        control        throughout        product
lifecycle        and        further        clarified        the        responsibilities        of        our        departments        in        product        traceability.        We        have        also        developed        the
Management Procedures for Electronic Drug Traceability Codes to ensure that all drugs can be traced on our "On-code"drug traceability information system. Through digital means we ensure that “each drug has a code and both the drug andits code can be traced” and present the traceability data of drugs throughout the process in real time.In 2023 we made sustained efforts to optimise the drug traceability management process to ensure that all documents
related to drug storage and delivery were uploaded to the drug traceability information system. We tracked the documents
of key drugs and urged level-1 distributors to promptly scan the traceability codes and upload the documents so that the
drug        flow        information        could        be        entered        into        the        system        without        delay.Management of Package Inserts and Labels
The        management        of        package        inserts        and        labels        are        the        focus        of        our        product        quality        management.        In        accordance        with
related regulations and laws the Group strictly controls the design use and change of product package inserts and
labels in accordance with the Marketed Chemicals and Biologics Clinical Changes Technical Guidelines the Change
Management Regulations and other internal management regulations.
36Corporate Social Responsibility Report 2023
In 2023 the Group continued to strengthen the internal risk management on package inserts and labels and standardised
the process for any change. We updated and optimised the Provisions for Medicine Insert Sheets and Labels. In the
provisions we summarised issues identified during the review and approval of changes to package inserts and detailed
the        management        requirements        for        these        changes        further        improving        the        management        of        package        inserts        and        labels.        We
demand that changes to package inserts and labels be initiated and designed by the holder. The design should be strictly
reviewed        and        approved        by        the        holder’s        sales        production        quality        control        and        other        related        departments        and        changes        to
information on the safety and efficacy of medicines should ultimately be approved by the National Medical Products
Administration so as to maintain the rationality and accuracy of drug information to the greatest extent possible.We        classify        changes        according        to        their        impact        on        and        risk        to        drug        safety        efficacy        and        clinical        use.        In        the        event        of        changes
to drug safety information or pharmacovigilance plans our Pharmacovigilance Department will strictly manage the
changes in accordance with the Procedures for Changes to Information Related to Safety in Package Inserts. Relevant
data about drug safety will be collected reviewed and evaluated by the Pharmacovigilance Department and then
submitted to the Drug Safety Committee for review and confirmation thus supporting patients’ access to accurate
reliable        and        scientific        drug        information.
5.1.4 Pharmacovigilance
Joincare        strictly        follows        the        requirements        of        the        Good        Pharmacovigilance        Practices        (“GVP”)        and        has        further        refined
its documents on pharmacovigilance. With reference to the Guiding Principles for Pharmacovigilance Inspection we
have        standardised        the        pharmacovigilance        practices.        By        doing        so        we        ensure        compliance        with        the        requirements        of        GVP
and fulfil our responsibilities for pharmacovigilance. In 2023 we established the medical device vigilance system and
added documents including the Procedures for Handling Individual Safety Reports in Medical Device Clinical Trials
the Procedures for Monitoring and Reporting Adverse Events in Medical Device Clinical Trials and the Procedures for
Handling Defects in Medical Device Clinical Trials. The system and documents which cover the safety management
of medical devices before and after they are placed on the market help strengthen our ability to manage risks in the
medical device business. In addition the Group adopts a new digital drug safety management system. Its robust user
management and permission control mechanism ensures the security of pharmacovigilance data. Its data statistics and
analysis        function        provides        a        strong        data        support        for        pharmacovigilance        and        comprehensively        improves        the        effectiveness
and standardisation of the Group’s pharmacovigilance practices.Case
Meeting of the Drug Safety Committee
In 2023 the Drug Safety Committee convened two meetings. At the meetings the potential safety
issues in our existing products were analysed and summarised the adverse event information collected
was discussed and it was proposed to strengthen our risk management ability for the key product
Tobramycin conduct continuous monitoring and ramp up patient education. Meanwhile we held the
first meeting of the Leading Group of Medical Device Adverse Event Monitoring introducing the
working mechanism and responsibilities of the group. This meeting laid the foundation for the medical
device vigilance work in the future.To manage adverse drug reactions in addition to timely collecting and processing the feedback of adverse events from
the National Center for ADR Monitoring China the Group has added the QR code for information collection on the
outer packaging and in the insert sheets of products to provide a convenient channel for customers’ feedback which
covers 100% of all products held by the Group. In addition we actively seek feedback on adverse reactions from users
through our 400 hotline official website pharmacovigilance email and extension sales feedback and post-market
research. We regularly collect information on adverse reactions to similar products through relevant professional websites
or literature searches. By doing so we ensure that adverse reactions are comprehensively collected through multiple
channels and reported to regulatory authorities in accordance with laws and regulations. Besides we categorise analyse
and monitor the collected adverse events regularly assess the risks of product safety and implement control measures to
ensure the safety of medication for the public.
37Joincare Pharmaceutical Group Industry Co. Ltd.
5.2 Quality Risk Control
To        fully        ensure        product        quality        Joincare        has        established        and        continues        to        refine        the        Regulations        on        Quality        Risk
Management        and        the        Management        Regulations        on        Risk        Management        Plan        with        reference        to        the        requirements        of        relevant
laws        and        regulations.        The        aim        is        to        standardise        the        processes        of        identification        analysis        evaluation        control        and        review        of
quality        risks        improve        product        design        and        effectively        manage        and        control        product        quality        risks.
5.2.1 Quality Risk Management
The        Group        makes        continuous        efforts        to        enhance        its        risk        management        system        covering        R&D        production        and        operation        to
manage        quality        risks        throughout        the        product        lifecycle        build        up        its        quality        risk        management        capabilities        and        deliver        high-
quality        products.Quality Risk Management System of Joincare
R&D Production Operation
On the premise of complying Joincare has developed For post-marketing
with relevant laws and policies including the Risk management Joincare
regulations Joincare ensures Management and the Data promptly        handles        quality
its        R&D        quality        by        following         Integrity Assessment pursuant complaints and adverse
ICH guidelines such as the to the Good Manufacturing reaction feedback from users
pharmaceutical        quality        system         Practice (GMP). In prospective according to the Management
ICH Q10 and adopting the and retrospective manners we Procedures for Adverse
Quality        Target        Product        Profile         identify risks in man's work Medicine Reaction the
(QTPP) the Failure Mode and machines materials rules Management Procedures
Effects        Analysis        (FMEA)        the         links and tests with FMEA for Customer Complaints
Hazard Analysis and Critical HACCP preliminary hazard the Procedures for Handling
Control Points (HACCP) and analysis and other tools. Individual Safety Reports of
other risk management tools Further        we        conduct        classified         Post-marketing Drugs and
to determine products' critical risk management and take the Procedures for Writing
quality        attributes        (CQAs)        and         corresponding measures to Periodic Drug Analysis and
critical process parameters mitigate or eliminate the risks. Evaluation Reports. Besides
(CPPs). we organise and conduct post-
marketing drug research and
collect full lifecycle drug data.Efforts        are        also        made        to        assess
risks determine management
measures        for        risks        identified
and continuously monitor
potential risks.Product Recall
We have developed and continusly updated the Drug Recall Management Procedures to guide the recall of products
in        case        of        quality        issues        or        other        safety        hazards        are        identified.        We        classify        drug        recalls        into        Level-I        -II        and        -III        recalls
according to the severity of safety hazards. We also have corresponding recall procedures in place toensure patient safety
in medication. Over the past four years there were no recall incidents due to our sold or shipped products for safety or
health reasons. The total number of product recalls was 0.
38Corporate Social Responsibility Report 2023
Product recall simulation is exercised every two years at Joincare to ensure the drug recall process is effective. We also
implement a product risk management scheme to ensure that the risk management of post-marketing products is in line
with        related        pharmacovigilance        laws        and        that        the        products’        quality        always        serves        their        intended        purposes        and        satisfies        the
registration        requirements.Case
Product recall simulation
In January 2023 Joincare initiated a Level-I recall simulation for Budesonide Suspension for
Inhalation and Ipratropium Bromide Solution for Inhalation. During the drill our Quality Management
Department tracked the key phases: The recall notice was sent to the production subsidiary and
the functional department; the warehouse submitted the sales and delivery records of the recalled
products; the production subsidiary reported the suspension of production and release; the recalled
products were stored in isolation; and the marketing department reported the suspension of sales and
use. All the simulated recall procedures were completed within the specified time demonstrating the
traceability        of        our        products        and        the        effectiveness        of        our        recall        system.In addition to strengthen our ability to respond to drug safety emergencies the Group carried out a drug safety
emergency drill in August 2023 to simulate real-life scenarios of major drug safety incidents (level II). In the drill we
took response measures following the emergency plan and reviewed the handling process after the drill to improve our
ability to ensure drug safety and handle drug safety incidents and to best prevent and limit drug safety incidents.
5.2.2 Quality Audit
In        order        to        continuously        improve        the        quality        management        system        the        Group        has        made        periodic        quality        audit        plans
covering all the producers operators and R&D institutions. Special audits are conducted following major changes such
as        the        enactment        of        law        laws        and        regulations        management        demands        and        external        regulatory        changes.        We        perform        quality
audits at least twice a year on our production subsidiaries with reference to GMP regulations and the On-site Audit
Management        Procedures.        These        subsidiaries        also        conduct        self-audits        and        inspections        to        identify        risks        and        deficiencies        in
the        daily        operation        of        the        quality        management        system        and        make        analysis        and        rectification        accordingly        to        improve        their
quality        management        capabilities.In        2023        the        Group        and        its        subsidiaries        organised        an        audit        team        to        conduct        10        quality        audits        on        the        production        system
packaging        system        material        system        equipment        and        facility        system        quality        assurance        system        quality        control        system
environmental protection and occupational health and safety of the subsidiaries and entrusted production enterprises.We also urged them to rectify the deficiencies identified in the audits. Meanwhile Joincare and each of its subsidiaries
actively        cooperated        with        the        quality        audits        by        domestic        and        overseas        regulators        and        customers        and        analysed        and
promptly        rectified        the        deficiencies        identified        by        external        experts        to        enhance        quality        management        continuously.
5.2.3 Responsible Product Design
To        better        implement        the        concept        of        social        responsibility        Joincare        takes        product        quality        safety        health        environmental
protection and other elements involved in the product lifecycle into account when developing new products. On the
premise of meeting customer needs and providing premium products we make every effort to minimise the negative
impact that our products may have on the environment and society in the whole product life cycle including R&D
production transportation sale use and disposal.
39Joincare Pharmaceutical Group Industry Co. Ltd.
Development and design
We analyse and identify potential social and environmental risks that may arise throughout the lifecycle of our products
and seek to manage them at the source where possible. For example we have recognised that choosing the wrong raw
materials or ingredients for product development may cause serious damage to the environment. With this in mind
we have stepped up our efforts to monitor and study environmental impact factors of raw materials. We have set up a
department to assess the potential environmental impact and other negative impacts of the raw materials used in our
products and to promote the use of non-hazardous materials or minimise the use of hazardous materials.Manufacturing
We have developed management policies such as the Control and Management of Environmental Factor Identification
and Evaluation. In accordance with these policies we monitor energy and water consumption emissions waste discharge
and other environmental impacts during product manufacture. We assess the materiality of environmental factors in terms
of        producing        frequency        toxicity        degree        of        mitigation        control        measures        and        impact        on        stakeholders        and        adjust        product
design or take relevant control measures based on the assessment results so as to reduce the negative impact of our
products on the environment during their manufacture.Transport and distribution
Focusing on the harm that hazardous chemicals may cause to human health and the environment we sort out identify
and classify all chemicals involved in the transport and distribution of our products to reduce the use of hazardous
chemicals wherever possible. We also implement strict rules for the storage transport and use of necessary chemicals to
minimise the harm caused by hazardous chemicals during their lifecycle.Product use
We analyse the environmental and social impacts of products during their use following the principle of product lifecycle
management to ensure that product design and materials selection do not violate environmental and social laws and
regulations.Recycling and disposal
We identify the elements of our products that may have negative impacts on the environment during product recycling
disposal        and        degradation        following        the        Control        and        Management        of        Environmental        Factor        Identification        and        Evaluation.On this basis we seek to reduce the use of such elements in product design and develop standardised processing
procedures for irreplaceable elements to guide relevant parties on how to process them properly and minimise negative
environmental impacts.
5.3 Quality Training for Employees
Joincare        is        active        in        raising        employees’        quality        awareness        through        training        and        education        programmes        on        product        quality.We        have        established        the        training        scheme        to        manage        employee        quality        training        in        accordance        with        GMP        GSP        GVP
CNAS        and        other        specifications.        All        employees        are        covered        by        our        quality        training        including        the        annual        monthly        and
weekly        quality        training        and        hands-on        training.        We        improve        employees’        product        quality        management        skills        and        instil        the
quality        awareness        in        each        employee        by        arranging        short        training        sessions        fun        sports        meetings        online        knowledge        contests
operation        skill        competitions        and        the        like.        The        aim        is        to        foster        a        corporate        culture        of        “quality        first        in        pursuit        of        excellence”.In        2023        Joincare        conducted        more        than        660        training        sessions        on        product        quality        and        safety        with        an        employee        coverage
rate of 100% and 39.6 hours of training per person.
40Corporate Social Responsibility Report 2023
Joincare and its subsidiaries carry out “Quality Month” events for all employees on an annual basis. Every month
we        provide        professional        and        customised        training        courses        for        all        personnel        related        to        quality        systems        covering        quality
control as well as R&D production sales and pharmacovigilance management. In this way we keep relevant personnel
well        informed        of        the        changes        in        applicable        laws        and        regulations        and        quality        standards        and        improve        their        professional
skills and competencies.To        enhance        employee        awareness        of        product        quality        we        share        knowledge        on        quality        law/regulation        with        employees        every
day        to        help        them        gain        legal        knowledge        about        quality        in        their        daily        work.Examples of Daily Posts of Knowledge on Quality Law/Regulation
In addition following the principle
of pract ical i ty and necessi ty
the Group issued the Joincare
Compilat ion of Quali ty Laws
and Regula t ions based on 20
common regulations and guidelines
selected from MAH GCP GMP
GSP GVP and other regulations.This compi la t ion serves as a
daily reference tool provided to
all employees supporting and
encouraging them to consult it
promptly.Joincare Compilation of Quality Laws and Regulations
41Joincare Pharmaceutical Group Industry Co. Ltd.
Case
The 2023 “Quality Month” of Joincare
In 2023 the Group carried out the annual "Quality Month" activity for all employees as usual with the
aim        of        reinforcing        employees’        awareness        of        “focusing        on        quality        and        compliance”        and        consolidating
the        foundation        of        quality        culture.        To        this        end        Yu        Xiong        the        Group’s        Board        director        and        CEO
supervised        and        organised        the        headquarters        and        7        subsidiaries        Taitai        Pharmaceutical        Joincare        Haibin
Haibin Pharma Xinxiang Haibin Jiaozuo Joincare Shanghai Frontier and Guangzhou Joincare to
jointly        carry        out        “Quality        Month”        events        including        quality        knowledge        training        quality        knowledge
contests and fun activities. During the “Quality Month” we organised 8 centralised training sessions
on        aseptic        production        quality        standards        product        verification        and        validation        development        site
verification        ISO        quality        management        system        requirements        etc.        The        training        was        attended        by        all
our        employees.        Through        these        events        we        increased        employees’        sense        of        responsibility        that        quality
management is essential in all business areas throughout the process and at all times. This has
helped        to        create        a        working        atmosphere        in        which        all        employees        are        constantly        involved        in        quality
management.“Quality Month” Events Series of Joincare in 2023
The “Everyone Participates in Quality Improvement” event of Jiaozuo Joincare
during the “Quality Month”
To        better        foster        a        corporate        culture        of        quality        and        enhance        the        quality        management        performancefollowing the Group’s strategy Jiaozuo Joincare led by its CEO Xing Zhiwei launched the “EveryoneParticipates in Quality Improvement” event during the “Quality Month” in 2023. A series of activities
such        as        the        quality        training        quality        knowledge        competition        fun        quiz        operation        skills        competition        and
essay        competition        were        held.        We        also        focused        on        quality        training        for        R&D        staff.        A        total        of        22        training
sessions        were        delivered        to        improve        their        quality        management        skills.The “Everyone Participates in Quality Improvement” Event of Jiaozuo Joincare during the “Quality Month” in 2023
42Corporate Social Responsibility Report 2023
Case
Joincare        Haibin’s        first        “Elite        Training        Camp        for        Aseptic        Drug        Production        Quality        Control”.Joincare        Haibin        focuses        on        reserving        and        training        production        quality        management        talents        to        meet        theGroup’s talent needs in rapid development. In 2023 Joincare Haibin opened its first “Elite TrainingCamp for Aseptic Drug Production Quality Control”. The training contains technical principle learning
and        hands-on        training.        The        training        content        covered        personnel        management        equipment        repair
cleaning        and        disinfection        collinear        production        quality        control        process        simulation        and        equipment
verification. The training camp was launched to impart knowledge on aseptic drug production to the
staff        and        improve        their        skills        in        managing        the        quality        of        aseptic        drug        production.Joincare Haibin’s First “Elite Training Camp for Aseptic Drug Production Quality Control”
5.4 Intellectual Property Rights Protection
The Group is committed to product diversification multi-level innovation and development and improving the
management system for intellectual property protection. Joincare strictly abides by laws and regulations such as
the Patent Law of the PRC the Guidelines for Patent Examination and the Measures for the Implementation of
Early Resolution Mechanisms for Drug Patent Disputes (for Trial Implementation). Joincare has formulated internal
management documents such as the Policy on Emergency Plan for Intellectual Property and the Policy on Intellectual
Property Education and Training to clarify the Group’s emergency plan for patent infringement and the department
responsible        for        training        method        of        intellectual        property.        All        these        efforts        aim        to        improve        the        management        and        operation        of
intellectual property raise employees’ awareness of intellectual property protection and fully respect others’ research and
innovation        achievements        so        as        to        build        a        business        ecosystem        featuring        mutual        benefit        mutual        trust        innovation        and        win-
win results.Joincare protects its intellectual property rights mainly by registering patents trademarks and copyrights and technical
secrets. Ongoing efforts are made to consolidate the intellectual property protection network for respiratory medicines
and support the Group’s strategic presence in the healthcare industry. As of the end of the reporting period for well-
known respiratory formulatioin products such as Tobramycin Inhalation Solution (健 可妥) Budesonide Suspension for
Inhalation (雾 舒) Levosalbutamol Hydrochloride Nebuliser Solution (丽 舒 同) Compound Ipratropium Bromide
Solution for Inhalation (舒坦琳) and Ipratropium Bromide Solution for Inhalation (丽雾安) the Group has applied
for 122 related patents including 66 invention patents 45 utility model patents 9 appearance design patents and 2
PCT applications. Meanwhile 88 patents were granted including 40 invention patents 39 utility model patents and 9
appearance design patents.
43Joincare Pharmaceutical Group Industry Co. Ltd.
Table: Joincare’s intellectual properties and patents by the end of the reporting period
Valid Patents Filed
Number        of        valid        patents        filed 749
Number of invention patents 434
Number        of        International        patents        filed 138
Valid Patents Granted by the End of the Reporting Period
Number of valid patents granted 1008
Number of invention patents 521
Table: Joincare’s registered trademarks by the end of the reporting period
Trademark Registration
Number of registered trademarks 1874
Number of domestic trademarks 1645
Number of overseas trademarks 229
At the same time we make training plans every year to train employees on intellectual property knowledge and skills
at various levels and stages. This program aims to provide general knowledge and professional skills training related
to intellectual property protection. Through methods such as case studies interpretation of standards and practical
application exercises we strengthen employees' awareness and professional capabilities in intellectual property
protection.Case
Training on patent term
In March 2023 the Group launched training on “Patent Term” for R&D staff to introduce
Chinese        and        US        patent        term        requirements        and        their        differences.        Given        the        needs        of        R&D        staff
at work detailed information on “Patent Term Extension” and “Drug Patent Term ExtensionPolicy” which were added in the fourth revision of the Patent Law of the PRC was also
shared to help them improve their knowledge of and skills in patent protection and practice the
philosophy of intellectual property protection.The Group continues to promote intellectual property protection and improve intellectual property protection
mechanisms        thereby        strongly        supporting        the        application        of        our        R&D        achievements.        In        2023        our        scientific        and        effective
intellectual property management system and policy passed the certification under the Enterprise Intellectual Property
Management. They are a strong guarantee of our product innovation and R&D. We also passed the review of the National
Intellectual Property Demonstration Enterprise in 2023 demonstrating that regulatory authorities recognise our work in
intellectual property management. In the days ahead we will continue to strengthen intellectual property protection with
new technologies play a demonstration role in intellectual property management and implement the Group’s strategy of
innovation-driven sustainable development to contribute to the building of a powerful country in intellectual property.
44Corporate Social Responsibility Report 2023
Certificate        of        Intellectual        Property        Management        System
Moreover Joincare tends to develop overseas markets with an open and inclusive attitude. In the future when promoting
our drugs and reagents on overseas markets we will implement as far as possible the Doha Declaration on the Trade-
Related Aspects of Intellectual Property Rights (TRIPS) Agreement and Public Health. Where third parties invite us to
provide our products for the least developed and low-income countries we will license our product patents on appropriate
terms and conditions.
5.5 Protection of Customer Rights and Interests
Joincare attaches great importance to protecting the rights and interests of customers. Adhering to the concept of
responsible        marketing        we        deliver        truthful        and        effective        drug        information        to        customers.        We        fully        respect        and        understand
users’        needs        to        enhance        customer        satisfaction        and        improve        the        Group’s        service        quality        in        multiple        dimensions.
5.5.1 Responsible Marketing
Joincare strictly abides by the Advertising Law of the PRC the Against Unfair Competition Law of the PC the Personal
Information Protection Law of the PRC the Measures for Examination and Administration of Advertisements of Drugs
Medical Devices Healthcare Products and Formula Foods for Special Medical Purposes and the relevant laws and
regulations of the places where the Group operates. We commit to provide accurate and truthful product information
in the process of publicity and marketing. We have formulated and disclosed the Responsible Marketing Policy on our
official        website        to        specify        requirements        for        all        employees        (including        full-time        part-time        and        temporary        employees)        of
the        Group        and        its        subsidiaries        when        conducting        marketing        campaigns.        These        include        requirements        on        compliance        with
industry laws and regulations and marketing ads and sales rules applicable to us accurate disclosure of information
protection of customer privacy and fulfilment of environmental protection and social responsibility. Meanwhile we
have developed the Code of Conduct for Sales Personnel of Joincare and other internal policies to regulate the marketing
behaviours of relevant personnel and ensure that all our publicity and marketing activities are in compliance with laws
and regulations.
45Joincare Pharmaceutical Group Industry Co. Ltd.
The Code of Conduct for Sales Personnel of Joincare is summarised as follows:
* · Strictly abide by national laws and regulations;
* · Strictly comply with the relevant provisions of the Good Supply Practice;
* · Be honest and trustworthy in business activities and uphold fairness in competition. In business activities it
is strictly prohibited to interfere with or affect the rational clinical use of drugs by exaggerating the efficacy of
products making false and misleading statements concealing adverse drug reactions and other means;
* · The interests of enterprises and others shall not be harmed in business activities; the Group’s business secrets
and customer privacy shall be protected;
* · Illegal activities such as commercial bribery shall not be conducted for sales;
* · Timely report adverse clinic reactions of drugs (if any) to the Group;
* ·Malicious        transregional        sales        are        not        allowed        to        affect        the        order        of        the        sales        market.Responsible Marketing Audit
Joincare continues to improve its responsible marketing audit system and standardise the management of marketing
activities approval process. In the design production and distribution of our product information and promotional
plans all marketing materials are subject to the approval by authorised management personnel. Besides we provide
professional and timely marketing compliance consulting channels for employees to ensure that promotional materials
comply with laws and regulations. We also work with regulators and the media to review the compliance of all our
marketing materials in the process of brand promotion and building thereby effectively implementing responsible
marketing.Compliance Review Process for Joincare’s Marketing Campaigns
Material production Produce publicity materials in strict accordance with the Measures for the Examination of Drug Advertisements
Review by relevant Review by the Business Department Legal Department and Internal Control Department to
departments ensure that publicity materials comply with relevant policies and regulations of the Group
Review by regulators Submit advertising materials to relevant regulators to obtain approval after review
Review by media Carry out the second round of review by targeted media such as the “seven-party joint review” by Douyin
Advertisement Distribute publicity materials in compliance with laws and regulations and according to
distribution marketing plans
46Corporate Social Responsibility Report 2023
We        have        set        out        the        requirements        for        our        responsible        marketing        audit        in        the        Responsible        Marketing        Policy        and
established the review and monitoring mechanism for responsible marketing materials. We regularly review marketing
activities and materials including but not limited to marketing activity plans promotional materials and sales documents
aiming to ensure that marketing activity is true accurate and legal free from false advertising and misleading
information        and        compliant        with        the        requirements        of        the        Group’s        Responsible        Marketing        Policy.        In        addition        our
Supervision and Audit Department conducts regular internal audits on the implementation of the Responsible Marketing
Policy        to        ensure        that        all        marketing        activities        meet        the        requirements        of        the        policy.Case
Annual responsible marketing audit at Livzon Group
Livzon Group Joincare’s holding subsidiary has established a rigorous mechanism for
responsible marketing audit. Each year it conducts at least one systematic responsible
marketing audit on all business segments including pharmaceutical products APIs and
intermediates and diagnostic reagents and devices. In the audit it checks whether its sales staff
adhere to the Group’s responsible marketing policies marketing compliance false advertising
honest dealings with customers and other matters. For audit findings Livzon Group will
promptly urge the relevant departments to take corrective action and will improve the relevant
policies to further consolidate its capabilities in responsible marketing management. Violations
of the policies will be reported throughout the group and those responsible will be punished
(such as the deduction of points in the annual performance review and cancellation of bonuses)
according to the nature and severity of the violations.Responsible Marketing Training
The Group provides regular responsible marketing training for all employees. To the marketing and compliance
personnel        such        training        is        delivered        quarterly.        Meanwhile        the        marketing        personnel        will        receive        additional        professional
training on a regular basis which covers marketing rules and policies product knowledge laws and regulations
compliance        risks        sales        techniques        etc.        The        training        which        takes        the        form        of        field        exercises        scenario        simulations
case studies and interpretation of laws and regulations helps to ensure that employees understand and comply with our
marketing and advertising policies avoid exaggerated misleading or false advertising and provide consumers with
truthful and trustworthy product information. In 2023 all business divisions of Joincare actively carried out responsible
marketing training covering all the marketing personnel with a total training time of 6227 hours. Specifically the
Healthcare Product Division and the Prescription Medicine Division conducted 105 and 11 training sessions respectively.Joincare’s        Offline        Responsible        Marketing        Training
47Joincare Pharmaceutical Group Industry Co. Ltd.
5.5.2 Customer Satisfaction
The        Group        conducts        quarterly        surveys        of        online        and        offline        customers        regarding        their        satisfaction        with        the        effectiveness
of our products the service provided by our customer service/in-store staff product safety and packaging and their
willingness to recommend our products to others. The aim is to understand customers’ attitudes to views of and
suggestions        for        our        products        and        services        so        as        to        improve        our        product        quality        and        service        processes        according        to
customer        feedback.        By        fully        meeting        customer        needs        we        strive        to        improve        our        service        quality        and        increase        customer
satisfaction. In 2023 Joincare’s annual customer satisfaction rate reached 94%.Customer Communication and Complaints
We focus on building a multi-channel platform for communicating and interacting with customers to understand their
opinions in time and meet their needs and expectations. Customers can make complaints on our official platform or by
calling our hotline. Our after-sales personnel will handle customer complaints and provide customers with reasonable
solutions after understanding their needs. We will also monitor the progress of the implementation of the solutions to
ensure        that        customers’        reasonable        requirements        are        met.        In        addition        we        regularly        collect        and        summarise        issues        that
customers        frequently        complain        about        and        organise        operations        product        logistics        and        other        departments        to        take        targeted
corrective action for better customer experience.To        improve        the        skills        of        customer        service        staff        we        provide        them        with        quarterly        training        on        customer        communication
and complaint handling. In 2023 we ran a total of 18 customer service training sessions on themes including empathy
products conversion rate and intelligent customer service assistance.Customer Privacy Protection
We abide by the Civil Code of the PRC the Personal Information Protection Law of the PRC and other laws and
regulations on the protection of personal information. We have built a management system for customer privacy security
risks to protect customer privacy.Where reasonable we adhere the principle of “Data minimization” to minimise the collection of customer information
and other personal information and allow customers to change their personal information by calling or emailing us. For
highly        confidential        information        we        sign        confidentiality        agreements        with        relevant        parties        and        take        necessary        measures        to
ensure information security. In 2023 there were no customer privacy breaches or customer privacy disclosures within the
Group.
5.6 Supply Chain Management
Joincare is deeply aware of the importance of ensuring the stability and sustainability of the supply chain and actively
cooperates with suppliers to build a harmonious and win-win partnership. In strict compliance with relevant laws and
regulations such as the Bidding Law of the PRC we continue to improve the internal policies including the Procurement
Control and Management Procedures the Supplier Management System and the Material Supplier Selection Instruction
to standardise procurement and supplier management.We have formulated and released the Code of Conduct for Suppliers to specify the main principles for suppliers in
business ethics labour rights and human rights health and safety environmental protection and green development.Besides our purchasing practices are continuously reviewed to ensure that our suppliers operate in alignment with our
Code        of        Conduct        for        Suppliers        to        avoid        potential        conflicts        with        ESG        requirements.
48Corporate Social Responsibility Report 2023
Northwestern China3% Southwestern China2%
Northeastern China2% Overseas
1%
Central China14%
Southern China35%
Northern China8%
Eastern China35%
Geographical Distribution of Suppliers
5.6.1 Supplier On-boarding Management
We        set        strict        standards        for        supplier        on-boarding        in        consideration        of        fair        bidding        quality        priority        and        diversified
procurement.        Potential        suppliers        are        evaluated        on        the        quality        control        supply        stability        environmental        and        risk        control
and        other        aspects        through        various        forms        such        as        desk        assessment        and        product        testing        to        verify        their        qualifications        and
capabilities. On even ground we give preference to suppliers who have been certified to ISO 9001 ISO 14001 ISO
45001 and ISO 50001 or who have obtained other EHS-related certifications such as green factory clean production
review        and        safety        production        standardisation.        Suppliers        included        in        the        list        of        qualified        suppliers        shall        sign        the
Procurement Contract and the Quality Assurance Agreement and return the Supplier Questionnaire Survey and the
Supplier        EHS        Questionnaire        Survey        which        define        their        responsibilities        of        quality        assurance        and        EHS        management        in        the
supply process and their commitment to a stable and safe supply of production materials.
5.6.2                Supplier        Classification        and        Risk        Control
To        assess        and        manage        suppliers        we        first        identify        assess        and        manage        supply        chain        risks        including        environmental        social
and governance (ESG) impacts and business relevance aspects. We evaluate the ESG impact of suppliers by assessing
their country-specific risk sector-specific risk and commodity-specific risk and identify our significant suppliers and
significant        indirect        suppliers.
49Joincare Pharmaceutical Group Industry Co. Ltd.
Enterprise Enterprise
financial         product
status quality        and        service
Enterprise
Enterprise Impact of bu
qualification 企业经sin营es环s 境 environment environment and other EHS
International Impact of
trade international
environment finance        and
and impact Impact of exchange national rates
Impact of environmental Impact
unusual climate protection of social
regulations and events
Impact policies
of major Impact of workers’
unexpected human rights
events
Impact of Impact of Dimensions of
business ethics festivalsSupply Chain
Risks Assessment
of Joincare
Table:        Details        of        Joincare’s        Significant        Suppliers
Total number of Tier-1 suppliers 4084
Total        number        of        significant        suppliers        in        Tier-1         567
Total        number        of        significant        indirect        suppliers 83
Total        number        of        significant        suppliers 650
The risk level of suppliers is initially determined according to the type of materials they supply. We implement
hierarchical management on suppliers and the existing suppliers are rated at three levels namely H (high risk)/M
(Medium        risk)/L        (low        risk).        We        comprehensively        consider        suppliers’        product        quality        risk        consumption        of        materials        the
impact        of        materials        on        product        quality        and        the        risk        factors        involved        above        every        year        and        re-evaluate        their        risk        level
based        on        their        annual        quality        review        reports.
50Corporate Social Responsibility Report 2023
H (High-risk materials) M (Medium-risk materials) L (Low-risk materials)
Materials that directly affect the Materials that indirectly affect the Materials        that        affect        the
intrinsic        quality        of        medicines. intrinsic        quality        of        medicines. external        quality        or        other        quality
characteristics of products.Such as APIs for medicine Such as excipients for medicine
production. production packaging materials in Such as packing materials.direct contact with medicines key
consumables for preparations.To        ensure        production        stability        and        product        quality        and        safety        throughout        the        production        process        we        have        developed
comprehensive and systematic risk mitigation process and contingency plans based on our own supply chain and
businesses. In procurement we continue to improve our existing dual sourcing policy and have formulated relevant
systems for alternative suppliers. We have alternative suppliers for raw materials and excipients as well as key
consumables to minimise the supply risks resulted from the material shortage of suppliers. In production we conduct
research on preparations establish production base for APIs actively develop the API production process and strive for
the integrated production of “APIs-preparations vertical integration” to steadily improve our production capacity for
major raw materials. At the same time the Group’s multiple manufacturing sites across the country can back up each
other with the ability to provide production support in case of emergencies.In addition we pay close attention to inventory levels in day-to-day operation. The following risk management measures
are taken to ensure the production stability from the source:
* Signing strategic cooperation agreements with key material suppliers to ensure stable supply of materials.* Planning for alternative suppliers and develop suppliers in advance to avoid single sourcing.* Adopting the safe inventory strategy and dynamically managing inventory levels for materials supplied by high-risk
suppliers        to        maintain        an        optimal        inventory        level        to        meet        six        months        to        a        year's        production        requirements.Case
Active response to supply chain risks at Joincare Haibin
Joincare        Haibin        implements        diversified        supply        strategy        and        actively        responds        to        supply        chain        risks:
1. The company ensures that its main raw materials and packaging materials are purchased from
multiple        suppliers        and        production        consumables        are        chosen        from        a        number        of        qualified        suppliers        in
order to avoid supply shortage and enhance stability.
2. The company plans to introduce domestic suppliers for exclusive imported materials striving to
mitigate risks such as delayed delivery due to the change of the international pattern or suppliers' own
reasons.
51Joincare Pharmaceutical Group Industry Co. Ltd.
Case
Active response to supply chain risks at Xinxiang Haibin
To effectively prevent problems that affect supply chain stability such as supply chain disruption and
supply        shortage        of        qualified        suppliers        Xinxiang        Haibin        has        taken        the        following        measures:
1.        For        each        type        of        key        raw        material        the        company        ensures        that        there        are        3        or        more        qualified        suppliers
to keep the supply chain safe and stable.
2. The company predict the market supply and demand according to the annual cyclical supply of
products and prepare certain safety stock of materials in short supply in advance to deal with the
uncertainty caused by market changes.
3.        The        company        continue        to        find        and        develop        new        qualified        suppliers        ensure        multi-regional        multi-
channel        and        diversified        management        of        qualified        suppliers        so        as        to        cope        with        risks        brought        by        changes
of government policies and uncertain market supply and demand.Taitai Pharmaceutical ensures supply chain stability
To deal with the potential supply chain risks such as material shortage supply shortage and delayed
supply Taitai Pharmaceutical reviews the past cooperation with suppliers and builds a feasible plan to
mitigate supply risks:
1. The company regularly checks its inventory establishes the minimum inventory alert line and
makes preparations for material purchase in advance.
2.        The        company        regularly        conducts        desk        assessment        or        on-site        audit        of        suppliers’        qualifications
and production sites to understand their latest operating status and timely assists suppliers to solve
difficulties        in        production.
3. The company establishes long-term cooperations with suppliers and signs annual procurement
agreements        to        ensure        that        suppliers        deliver        according        to        requirements        and        to        reduce        the        risk        of        supply
interruption.
5.6.3 Supplier Audit and Evaluation
Joincare has formulated the On-site Audit Management Procedures the Supplier Quality Review Management the
Material        Supplier        Quality        Audit        Procedures        among        others        which        require        periodical        reviews        of        supplier’s        qualification
production        site        process        technology        and        production        facilities        warehouse        management        quality        management        system
environmental protection and occupational health and safety management. This year we further revised our Supplier
Management        Procedures        to        set        stricter        management        requirements        for        those        involved        in        the        Group’s        supplier        audits        and
to        clarify        the        approval        process        of        suppliers.        In        addition        we        continue        to        strengthen        the        management        of        significant        indirect
suppliers conducting on-site audits of the manufacturers of key products purchased from distributors (the significant
indirect suppliers of the Group). We also inspect the production facilities and management of the upstream supply chain
to        ensure        that        significant        indirect        suppliers        are        qualified.
52Corporate Social Responsibility Report 2023
We        determine        the        audit        frequency        and        form        according        to        the        risk        classification        of        suppliers.        In        case        of        any        management
or        quality        deficiencies        during        the        audit        we        will        inform        them        through        quality        feedback        notice.        The        results        are        consolidated
in        the        Supplier        Quality        Audit        Report        as        the        requirements        for        suppliers        to        make        rectifications        and        improvement.        We        also
follow up on the rectifications of suppliers in a timely manner collect rectification reports and help them to improve
quality        management.        In        2023        we        audited        a        total        of        1130        tier-1        suppliers        in        accordance        with        the        annual        supplier        audit
plan        and        conducted        on-site        audits        to        69        significant        indirect        suppliers.Suppliers’ Audit Dimensions of Joincare
Supplier's Audit
Product Transportation Production Management Plant Facilities and        Equipment Qualifications
EHS Management Quality management Material management Personnel Organisation and Training
Table:        Suppliers        audit        frequency        and        form        of        Joincare
Supplier        classification Audit        frequency        and        form
H (High-risk materials) One on-site audit every 3 years
M (Medium-risk materials) One        desk        audit        on        quality        every        3        years
L (Low-risk materials) One        qualification        information        update        every        3        years
In addition to the supplier audit we also evaluate suppliers every year to get a timely and comprehensive understanding
of supplier management. According to the Supplier Annual Evaluation Form we give suppliers a letter grade of A B C
and        D        by        assessing        their        product        quality        product        delivery        accuracy        product        delivery        timeliness        and        service        satisfaction.Among        them        level        C        suppliers        are        required        to        make        rectifications        within        a        time        limit        during        which        we        will        reduce        the
quantity        we        purchase        from        them        accordingly.        These        suppliers        will        be        re-evaluated        and        reclassified        after        rectifications.Level        D        represents        unqualified.        We        will        immediately        end        the        cooperation        with        suppliers        rated        level        D        and        revoke        their
supply        qualifications        for        three        years.        The        distribution        of        procurement        shares        in        the        next        year        is        largely        determined
by the annual comprehensive supplier evaluation. Depending on business conditions and the results of the annual
comprehensive supplier evaluation in the previous year subsidiaries of the Group will make appropriate adjustments
to the procurement ratio of the current year. In 2023 the Group conducted an annual comprehensive evaluation of 438
significant        suppliers        either        through        desk        assessments        or        on-site        assessments.
5.6.4 Supplier ESG Management
Joincare keeps a close eye on suppliers’ sustainable development management and performance and systematically
monitors their ESG management. The Corporate Social Responsibility Committee of the Board of Directors as the
highest decision-making body is responsible for overseeing the implementation of supplier ESG programmes. At the
same        time        we        have        clarified        the        environmental        social        and        governance        requirements        for        suppliers        in        the        Code        of        Conduct
for Suppliers and increased our focus on suppliers’ ESG management performance when onboarding auditing and
evaluating them.
53Joincare Pharmaceutical Group Industry Co. Ltd.
We conduct an EHS survey and score on suppliers as part of the on-boarding process and take the score as one of the
factors        for        supplier        admission.        In        the        early        stage        of        cooperation        we        organise        suppliers        to        learn        the        specific        requirements
of the Group’s Code of Conduct for Suppliers guide them towards more sustainable production and operations and
encourage them to obtain management system certifications such as ISO 14001 and ISO 45001 to mitigate ESG risks
in the supply chain. By the end of the reporting period the Group and subsidiaries had 491 suppliers that obtained
certification        for        environmental        management        systems        and        470        suppliers        that        obtained        certification        for        occupational        health
and safety management systems.We fully review suppliers’ ESG management and implementation of the Code of Conduct for Suppliers during supplier
audits and evaluations and share ESG related regulations and regulatory trends with suppliers during on-site audits.Suppliers        that        are        found        to        be        in        breach        of        the        Group’s        ESG        requirements        during        the        audit        and        assessment        will        be
excluded        from        contracting        if        they        cannot        achieve        minimum        ESG        requirements        within        a        specified        timeframe.        To        supervise
supplier EHS management we have formulated the Supplier EHS Audit Management Procedure to clarify the EHS
audit        and        relevant        management        requirements        for        suppliers.        Supplier        EHS        audit        includes        safety        environmental        protection
and other fields covering toxic and harmful emission indicators such as particulate matter sulphide VOCs emission
to review the supplier's management of indirect discharge of water pollutants air pollutant emissions noise and other
emissions. We organise the EHS audit for suppliers every year the results of which will be considered as an important
factor for the next annual purchase share assessment. This can urge suppliers to promote their EHS management.Procurement        staff        are        also        organised        to        learn        about        the        supplier        ESG        management.        This        enables        them        to        familiarise        their
roles        with        our        supplier        ESG        program.        Besides        we        organise        relevant        training        to        help        procurement        staff        better        understand
supplier ESG management so that they can ensure strict compliance with the supplier ESG management standards in
their daily work thereby contributing to building a sustainable supply chain.Case
EHS audits conducted by Xinxiang Haibin on suppliers
Xinxiang Haibin has incorporated EHS audits into the annual supplier audit plan. The audits covers
staff        occupational        health        and        safety        management        wastewater        pre-treatment        waste        gas        treatment        and
solid waste treatment. At the same time Xinxiang Haibin focuses on the supplier’s treatment of toxic
and harmful emissions reviewing its VOC emissions exhaust gas and other indicators.EHS audits conducted by Livzon Group on suppliers
Livzon Group a holding subsidiary of Joincare has incorporated EHS audits on suppliers into the
annual supplier audit plan. The audit covers environmental and safety indicators such as energy
conservation and emission reduction compliance with pollutant discharge standards compliance
with        solid        waste        collection        and        disposal        regulations        and        ISO        system        certification.        In        addition        Livzon
Group closely monitors the harmful emissions of suppliers including sulfur dioxide emissions and
hazardous waste treatment indicators into the scope of audits.
54Corporate Social Responsibility Report 2023
5.6.5 Supplier Capacity Building
We provide multiple channels including training exchanges and collaboration to help our suppliers build their
capacity.        To        ensure        the        safety        and        reliability        of        our        products        we        carry        out        training        on        quality        assurance        covering        all
high-risk        suppliers        at        least        annually.        During        training        we        emphasise        the        Group’s        quality        standards        and        requirements        to
suppliers help them analyse existing areas of improvement provide guidance on environmental protection technical
improvement and other aspects and encourage them to develop and implement relevant measures. In addition we will
further        summarise        the        quality        problems        found        in        supplier        audits        and        annual        evaluations        and        conduct        special        training        and
communication        for        suppliers        to        improve        training        efficiency.        In        2023        the        Group        conducted        training        on        quality        assurance
for all high-risk suppliers.Case
Supplier training of Joincare’s each subsidiaries
*In        December        2023        Joincare        Haibin        provided        quality        assurance        training        for        all        tier-1        material
suppliers        communicating        the        Group’s        quality        management        goals        to        suppliers        and        helping        them        better
understand        the        key        points        of        quality        and        EHS        management.*Xinxiang Haibin conducted 30 supplier training sessions in 2023 during which the Business
Department        and        the        Quality        Department        jointly        elaborated        on        the        requirements        of        quality
management deviation management and supplier management.*In 2023 Jiaozuo Joincare trained level A material suppliers and fermentation raw material suppliers
through        the        case        study        of        “A        small        story        to        understand        quality        management”        to        help        them        go        deep        into
the        quality        management        system.        The        Company        also        actively        supports        suppliers        in        improving        their        own
supplier        management        level        and        helps        them        stay        complaint        with        regulatory        requirements        and        build
robust        supplier        management        processes        to        ensure        the        quality        and        safety        of        materials        from        the        source.
55Joincare Pharmaceutical Group Industry Co. Ltd.
06
Access to
Healthcare
SDGs in this section
Acting in the interests of patients and focusing on safeguarding human life and health Joincare carefully conceives the corporate
vision        of        “Diligently        make        high-quality        drugs        and        innovative        drugs”.        We        put        great        effort        into        the        healthcare        industry        and
firmly        implement        the        dual-drive        core        strategy        of        innovative        medicines        and        high-barrier        complex        formulations        and        focus        on        the
unsatisfied        clinical        needs        constantly        consolidating        our        position        as        the        leader        of        China’s        high-end        inhalation        formulations        sector.We        endeavour        to        improve        the        availability        and        affordability        of        high-quality        pharmaceutical        products        and        services.        We        make
sustained        efforts        to        overseas        business        contribute        to        improving        the        quality        and        capacity        of        health        services        in        developing        countries
and facilitate the improvement of human health by working with stakeholders.The Board of Directors of Joincare as the highest organ represent for Access to Healthcare issues is responsible for
understanding and monitoring the management of the Group’s Access to Healthcare issues through the Corporate Social
Responsibility Committee. The Corporate Social Responsibility Committee is responsible for regularly reviewing the
development of the Group’s strategies & policies and performance on Access to Healthcare issues overseeing and reporting the
progress to the Board of Directors and urging the Group to improve access to healthcare.
56Corporate Social Responsibility Report 2023
6.1 Focusing on R&D and Innovation
Focusing on the development of innovative medicines and high-barrier complex formulations the Group actively seeks
cutting-edge technologies and development opportunities at home and abroad. We practise the R&D mode that integrates
independent R&D license-in and cooperative development and focus on key treatment fields including respiratory
diseases digestive system diseases assisted reproduction psychiatric disorders and tumour immunity. Moreover we
continuously expand the product line and R&D pipeline in areas where we have an advantage.We have a multi-level R&D mechanism and an experienced R&D team for independent R&D. To promote independent
R&D we continue to invest more and strengthen the construction of innovative technology platforms for inhalation
administration antibody sustained-release microspheres and complex injection and expand the R&D of other high-
end formulations with market potential and new drug delivery devices. By the end of the reporting period the Group had
made landmark progress in many high-barrier complex formulations obtaining a number of approvals for production
or clinical trials. In terms of cooperative innovation we introduce new technologies and products through cooperative
development        technology        transfer        patent        licensing        and        other        ways.        Based        on        this        we        can        rapidly        promote        the        subsequent
pharmaceutical clinical and non-clinical research and study on industrial transformation of new products. We also work
with        first-tier        top        R&D        teams        in        China        to        enhance        product        development        in        areas        where        we        have        an        advantage        and        speed
up the transition to an innovative pharmaceutical enterprise.In addition the Group actively explores the application of new technologies in the traditional pharmaceutical
manufacturing industry. It has established long-term cooperative relations with well-known universities scientific
research institutions and laboratories both domestically and abroad. Based on this we create an enterprise technology
innovation network with coordinated efforts of enterprises universities and research institutions. We now have three
national R&D technology centres and several provincial and municipal innovation carriers; meanwhile in terms
of biosynthesis eight R&D platforms have been established for synthetic biology industrial microbial breeding
biochemical APIs biocatalysis biological transformation and amplification product extraction drug synthesis and
AI in pharma. To build a biosynthesis platform the Group has established an operating system that facilitates genetic
modification simultaneous gene editing and high-fidelity multi-DNA splicing of various prokaryotic and eukaryotic
microorganism. In addition we have developed a complete set of processes for whole-genome variation analysis and
prediction        of        gene        clusters        of        key        secondary        metabolites.        With        these        efforts        we        have        made        targeted        genome        modification
and fusion possible enhancing our capabilities in gene capture and manipulation of large DNA segments. We have also
improved the technologies such as high-throughput DNA splicing and large-scale targeted genetic screening. In addition
we have expanded the technical system that restructures the metabolic network with predicted molecular elements
to breed various candidate strains with the upgraded genetic modification. In the future we will continue to enhance
technological        innovation        ability        to        drive        the        pharmaceutical        industry’s        high-quality        development.By the end of the reporting period the Group’s R&D team had been growing continuously with 1740 R&D personnel.We also have continuously increased investment in R&D. This year the total R&D expenditures amounted to
RMB1631.86 million accounting for 9.80% of the total audited revenues of the year.Number and Proportion of R&D Personnel of Joincare in 2019-2023
Number of R&D personnel(persons) 12.49% 12.2% 12.16% 12.11%
Proportion of R&D personnel
9.27%
11771557161517171740
20192020202120222023
57Joincare Pharmaceutical Group Industry Co. Ltd.
Joincare’s R&D Expenditures and Proportion of Its Total Revenues in 2019-2023
11.63%
10.26%
8.90%9.32%
9.80%
Amount of R&D expendirures
(RMB in 1 milion)
Proportion of R&D expendirures
to total revenues
1065.981260.531849.821758.661631.86
20192020202120222023
Table: Major R&D/registration progress of Joincare in 2023
Date Major R&D/Registration Progress
January 2023 Approval for drug registration obtained for Tocilizumab Injection
January 2023 Clinical Trial Approval Notice obtained for Asenapine Transdermal Patch
January 2023 Class        II        Medical        Device        Registration        Certificate        obtained        for        mesh        atomiser        Air        360        mini        +T
February 2023 The        first        to        submit        the        ANDA        in        China        for        Salmeterol        Xinafoate        and        Fluticasone        Propionate        Powder for Inhalation
March 2023 Approval for drug registration obtained for Long Chain Fat Emulsion Injection (OO)
May 2023 New indications obtained for Ilaprazole Sodium for Injection
May 2023 New indications obtained for Tocilizumab Injection
May 2023 Approval for drug registration obtained for Triptorelin Acetate Microspheres for Injection
June 2023 Class I Medical Device Registration completed for Smear-type Applicator
June 2023 Approval for drug registration obtained for Biapenem for Injection
July 2023 Approval for drug registration obtained for Formoterol Fumarate Solution for Inhalation
July 2023 Recombinant Anti-human IL-17A/F Humanised Monoclonal Antibody Injection underwent the phase III clinical trial
July 2023 Approval for clinical trials obtained for Recombinant SARS-CoV-2 Fusion Protein Bivalent (Prototype/Omicron XBB Variant) Vaccine (CHO Cell)
August 2023 NDA for new indications accepted for Triptorelin Acetate Microspheres for Injection
58Corporate Social Responsibility Report 2023
Date Major R&D/Registration Progress
August 2023 Approval for drug registration obtained for Blonanserin Tablets
September
2023 NDA accepted for Aripiprazole Microspheres for Injection
September
2023 TG-1000 Capsules initiated the phase III clinical trial
October 2023 Clinical Trial Approval Notice obtained for Elagolix Sodium Tablets
November
2023 Clinical Trial Approval Notice obtained for Meloxicam Nanocrystal Injection
December 2023 Emergency use granted for Recombinant SARS-CoV-2 Fusion Protein Bivalent (Prototype/Omicron XBB Variant) Vaccine (CHO Cell)
6.1.1                Diversified        Product        Development
Committed to Respiratory Health
Chronic respiratory diseases are a major category of diseases represented by chronic obstructive pulmonary diseases
(COPD) asthma etc. featuring a high prevalence rate high disability rate high mortality rate and high disease burden.
As        the        best        and        most        effective        therapy        methods        for        chronic        respiratory        diseases        inhalation        formulations        can        quickly
and directly reach the lungs to play their therapeutic effect reducing drug dose and improving drug efficacy. However
foreign companies have long monopolised the market due to the high barriers to R&D and production. As a leader ofthe inhalation formulations sector in China Joincare adhering to the original aspiration of “joining us in respiratorycare” continues to improve the market presence of respiratory disease medicines and strengthen the R&D of inhalation
formulations through extensive industrial cooperation to support domestic respiratory disease treatment.We have established R&D platforms for inhalation formulations and formed an integrated and clear R&D pipeline in
cooperation with Dr. Jin Fang the leader and pioneer in the R&D of inhalation formulations in China and her R&D
team as well as the Guangzhou Institute of Respiratory Health led by Academician Zhong Nanshan. After years of steady
development we have become one of the leaders in the R&D of high-end inhalation formulations in China. Our existing
products and products under R&D cover all types of drugs for inhalation therapy for COPD and asthma providing more
effective        and        safe        drugs        for        patients        with        COPD        and        asthma.By the end of the reporting period the Group had 8 varieties of inhalation formulations in 12 specifications on the
market. In 2023 we had several respiratory products under R&D. In terms of inhalation formulations Formoterol
Fumarate Solution for Inhalation is approved for launching. Indacaterol Maleate Powder for Inhalation and Fluticasone
Propionate Nebuliser Suspension are under review for listed approval. Salmeterol Xinafoate and Fluticasone Propionate
Powder for Inhalation a generic drug which has been first submitted for registration application in China following the
publication        of        the        Guideline        for        Bioequivalence        Study        on        Genetic        Drugs        of        Orally        Inhaled        Drug        Products        in        2020        has
filed        application        for        launching.        In        terms        of        devices        we        continue        to        develop        medical        devices        that        are        compatible        with        our
inhalation formulations. Our mesh atomiser Air 360 mini + T that can be used with Tobramycin Inhalation Solution has
obtained        the        Class        II        Medical        Device        Registration        Certificate.        In        addition        we        have        made        significant        progress        in        a        number
of R&D projects of Class 1 innovative medicines. Among them new anti-influenza drugs TG-1000 Capsules have
initiated the phase III clinical trials and completed the enrolment plan. Both the new dual-target drug DBM-1152A and
new oral drug N91115 for asthma have initiated the phase I clinical trials and are undergoing clinical studies.
59Joincare Pharmaceutical Group Industry Co. Ltd.
Throughout 2023 our R&D progress in respiratory formulations was shown as follows:
Table: Joincare’s R&D progress in respiratory formulations in 2023
Clinical Trial/BE Trial
Registration
Medicine Form Product Name Preclinical NDA/ANDA
Category Phase I Phase II Phase III/BE
Chemical
DBM-1152A >>>>>>>>>
drugs Class 1
Chemical
Solution for
XYP-001 drugs Class 2.2 >>>>>>>>>
Inhalation
and 2.4
Fluticasone Propionate Chemical
>>>>>>>>>
Nebuliser Suspension drugs Class 4
Indacaterol Maleate Powder for Chemical
>>>>>>>>>
Inhalation drugs Class 4
Salmeterol Xinafoate and
Chemical
Powder for Fluticasone Propionate Powder >>>>>>>>>
drugs Class 4
Inhalation for Inhalation
Indacaterol Maleate and
Chemical
Glycopyrronium Bromide >>>>>>>>>
drugs Class 4
Powder for Inhalation
Mometasone Furoate and
Chemical
Formoterol Fumarate Dihydrate >>>>>>>>>
drugs Class 3
Inhalation Aerosol Inhalation Aerosol
Formoterol Fumarate Chemical
>>>>>>>>>
Inhalation Aerosol drugs Class 2.2
Chemical
TG-1000 Capsules >>>>>>>>>
drugs Class 1
Oral Formulations
Chemical
N91115 >>>>>>>>>
drugs Class 1
R&D        Efforts        in        Bio-Pharma
Over the years LivzonBio a subsidiary of Joincare has kept exploring biomedicine. It has built well-developed R&D and production
technology platforms for antibody medicines and fusion protein medicines. LivzonBio focused on the development of products
related to autoimmune disease tumour reproduction and major communicable disease prevention and has carried out and promoted a
number of R&D projects for innovative vaccines monoclonal antibodies and recombinant protein drugs.LivzonBio speeds up the approval of new products through independent R&D license-in strategic cooperation and other ways.Relying on the well-developed R&D and industrialisation conditions of recombinant protein drugs LivzonBio continuously
enriches the pipelines of products under research and improves the commercialisation of products. In December 2023 as proposed
by the National Health Commission of the PRC the National Medical Products Administration demonstrated and approved for the
emergency use of the Recombinant SARS-CoV-2 Fusion Protein Bivalent (Prototype/Omicron XBB Variant) Vaccine (CHO Cell)
(“丽康民”) developed by LivzonBio. It is the Company’s second COVID-19 vaccine allowed for emergency use after 丽康V-01.丽康民 a broad-spectrum bivalent vaccine developed by LivzonBio based on the same platform as 丽康V-01 uses an innovative
molecular design and covers various key mutation sites of COVID-19 epidemic variants such as XBB.1.9.1 XBB.1.5 and XBB.1.16.By the end of the reporting period this vaccine had undergone the clinical trials in accordance with the protocol approved by the
National Medical Products Administration and had completed the enrolment of all subjects reaching the preset major study endpoint.According to the results of clinical trials 丽康民features fast onset high antibody titre high safety and excellent immunogenicity
and        safety        in        the        elderly        offering        good        protection        against        the        current        main        epidemic        strains.Moreover this year Recombinant Anti-human IL-17A/F Humanised Monoclonal Antibody Injection (“LZM012”) which is jointly
declared by LivzonBio and Beijing Kanova Biopharma Co. Ltd. as the key product under research is undergoing the phase III
clinical trial. LZM012 is the first drug in China that is under the phase III clinical trial comparing with active IL-17A listed drug
(Secukinumab). The results of the phase II clinical trial show that LZM012 has fast onset good efficacy long acting and other
advantages.        It        is        also        superior        to        IL-17A        single-target        drugs        in        efficacy        and        is        expected        to        provide        better        potential        therapeutic        schedule
for psoriasis in China.
60Corporate Social Responsibility Report 2023
Table: LivzonBio’s R&D progress of key products under research
Clinical Trial
Field Medicine Code (Full name) Preclinical Phase Phase Phase NDA/ANDA
I II III
Recombinant SARS-CoV-2 Fusion Protein Bivalent Emergency use
Vaccine
(Prototype/Omicron XBB Variant) Vaccine (CHO Cell) granted
Lipstobart for Injection >>>>>>>>>
Anti-tumour A-01        (Recombinant        Tumour        Enzyme        Specific        Interferon        α-2b
>>>>>>>>>
Fc Fusion)
B-01 (Recombinant Human Follicle Stimulating Hormone) >>>>>>>>>
Assisted
Reproduction >>>>>>>>>Recombinant Human Choriogonadotropin alfa for Injection
(Overseas NDA)
Immune LZM012 (Recombinant Anti-human IL-17A/F Humanised
>>>>>>>>>
Disease Monoclonal Antibody Injection)
Development of Sustained-Release Microspheres for Injection
Microspheres        are        microspherical        polymers        prepared        with        high        molecular        materials        with        a        particle        size        of        1        -        250μm        and
containing one or more drugs. Microsphere formulations are superior to traditional injection formulations in long acting
and high bioavailability. They have specific tropism to target organs and can greatly improve drug convenience and
compliance with outstanding clinical advantages. Livzon Microsphere a subsidiary of Joincare focuses on the R&D
of anti-tumour endocrine-regulating and antipsychotic microsphere formulations which are advantaged for their long-
acting and sustained-release mechanism. The company has an overall arrangement in long-acting eye medication and an
in-depth study of long-acting formulation technology with independent intellectual property rights (IIPR). In May 2023
Triptorelin Acetate Microspheres for Injection (“维 宝 宁”)        a        modified        new        drug        developed        by        Livzon        Microsphere
was        approved        for        launching.        It        is        indicated        for        the        treatment        of        patients        with        prostate        cancer        who        require        androgen
deprivation therapy. As the only domestic Triptorelin Microsphere维 宝 宁        offers        significant        advantages        such        as        a
longer        duration        of        action        and        fewer        doses        required        compared        with        the        regular        Triptorelin        Acetate        Injection.        It        can        reduce
the        patients’        pain        and        drug        burden        effectively        improving        the        drug        tolerance        and        accessibility.By the end of the reporting period the sustained-release microsphere R&D platform had 8 ongoing projects. Among
them 3 medicines were under application for launching approval and registration 1 medicines was at phase I clinical
trials 2 medicines were at BE (pilot) trials.
61Joincare Pharmaceutical Group Industry Co. Ltd.
Table: Livzon Microsphere’s R&D progress of key products under research
Clinical Trial/BE Trial
NDA/
Project Name Indication Preclinical Phase Phase Phase III/ ANDA
I II BE
Triptorelin Acetate Microspheres for
Endometriosis >>>>>>>>>
Injection (1-month sustained release)
Octreotide Acetate Microspheres for Acromegaly gastrointestinal
>>>>>>>>>
Injection pancreatic endocrine tumour
Leuprorelin Acetate Microspheres for Prostate cancer premenopausal
>>>>>>>>>
Injection (3-month sustained release) breast cancer
Prostate cancer estrogen-receptor-
Alarelin Acetate Microspheres for
positive premenopausal breast >>>>>>>>>
Injection (1-month sustained release)
cancer endometriosis
Aripiprazole Microspheres for Injection Schizophrenia bipolar disorder >>>>>>>>>
6.1.2 External Cooperation and Recognition
The Group makes continuous efforts in cooperative development and license-in of products in core fields while
strengthening independent innovation. We leverage the global superior resources and cutting-edge technologies
to enhance the Group’s marketing and integration capabilities. This year we made phased progress in business
development introducing many innovative drugs and continuing to develop respiratory drugs and analgesics. In addition
we have taken the lead in AI-driven pharmaceutical R&D. In 2021 we signed a Strategic Cooperation Agreement with
Tencent        Quantum        Lab        to        drive        the        application        of        “quantum        computing        +        AI”        in        research        fields        of        synthetic        microbial
biology and relevant drugs and to promote the development and progress of pharmaceutical R&D technology.Case
Joincare        acquired        exclusive        license        of        Fermion’s        new        analgesic        FZ008-145        in        Greater        China
In November 2023 Joincare signed an agreement with Guangzhou Fermion Technology Co. Ltd.(“Fermion”)        to        acquire        the        exclusive        license        of        new        analgesic        FZ008-145        independently        developed        by
Fermion in Greater China. The innovative small molecule drug FZ008-145 is the world’s second and
China’s        first        second-generation        highly        selective        Nav1.8        (voltage-gated        sodium        channel        1.8)        inhibitor.It        is        intended        for        the        treatment        of        pain        and        is        a        good        remedy        for        effective        and        non-addictive        analgesia.In January 2024 the Clinical Trial Approval Notice was obtained for FZ008-145. Joincare will be
responsible        for        subsequent        work        such        as        clinical        studies        and        manufacturing        declaration.        As        its        MAH
holder we will obtain the right to manufacture and sell this product in Greater China after its approval.Thanks to this cooperation the Group enriched its layout in R&D pipeline of analgesics. Going
forward we will speed up the clinical development of FZ008-145 so as to provide better treatment
options for patients with pain as soon as possible.
62Corporate Social Responsibility Report 2023
Case
Joincare        acquired        exclusive        license        of        TaiGen’s        new        antiviral        drug        TG-1000        in        Greater        China
In March 2023 Joincare signed a Patent Licensing and Commercial Cooperation Contract with TaiGen
Pharmaceutical R&D (Beijing) Co. Ltd. and TaiGen Biotechnology Co. Ltd. (collectively “TaiGen”)
to        acquire        the        exclusive        license        to        develop        manufacture        and        commercialise        the        new        antiviral        drug
TG-1000 in China (including the Hong Kong and Macao Special Administrative Regions). TG-1000
is primarily indicated for the treatment of acute infective simple uncomplicated influenza A and B
viruses. According to the current data it has the advantages of fast onset long duration of inhibition
good tolerance oral administration not affected by food and low drug resistance. By the end of the
reporting period the Group had initiated the phase III clinical trial of TG-1000 and completed the
enrolment plan. It is expected that after TG-1000 is on the market its APIs will be manufactured in the
high-end API project in Macun District Jiaozuo City Henan Province. This will play an important role
in expanding complementing and strengthening the biomedical industry chain in Macun District.In 2023 Joincare and its subsidiaries gained many external honours and recognition. The Group won the titles of “Top
100 Enterprises in China’s Pharmaceutical Industry” “China’s Top 500 Manufacturing Private Enterprises” “Top 100Manufacturing Private Enterprises in Guangdong Province” and “Top 100 Private Enterprises in Guangdong Province”.Shanghai Frontier a subsidiary of Joincare was newly awarded “Shanghai Enterprise Technology Centre” and re-
qualified        as        “High-tech        Enterprise”        and        “Specialised        Refined        Differential        and        Innovative        Small        and        Medium-sizedEnterprises of Shanghai”. Joincare Haibin a subsidiary of Joincare was awarded the “Engineering Research Centre ofKey Technology Study and Innovative Technology Application for Industrialisation of Inhalation formulations” by the
Department of Science and Technology of Guangdong Province. In addition as the world’s first inhalation formulation
and        the        China’s        first        inhaled        antibiotic        for        the        treatment        of        bronchiectasis         健 可 妥        a        modified        new        drug        developedindependently by Joincare was presented at the “2023 Conference on the Development of China’s PharmaceuticalIndustry and Achievement Tour Exhibition for the Development of Chinese Pharmaceutical Industry in the New Era”
showcasing the Group’s remarkable achievements in the R&D of inhalation formulations.
6.2 Paying Attention to Rare Diseases Treatment
Rare diseases also known as “orphan diseases” are featured by unknown causes and extremely low incidence rates.High        treatment        costs        for        rare        diseases        result        from        their        low        market        demand        difficulties        in        R&D        and        lack        of        experience        in
clinical medication and even there is no medicine for some rare diseases. Under the guidance of relevant policies such
as the “Healthy China 2030” Planning Outline and the Guidelines for Diagnosis and Treatment of Rare Diseases we
based        on        our        own        scientific        platform        and        capabilities        undertake        corporate        social        responsibility        actively        by        continuously
investing in research on rare diseases and focusing on improving the current situation of diagnosis and treatment of rare
diseases thus making contributions to building a Healthy China.
63Joincare Pharmaceutical Group Industry Co. Ltd.
Idiopathic Pulmonary Fibrosis
Idiopathic Pulmonary Fibrosis (“IPF”) is a cryptogenic chronic progressive and interstitial pneumonia. This disease
usually        affects        middle-aged        and        aged        people        and        has        cardinal        symptoms        including        progressively        increased        dyspnea        with
restrictive ventilation dysfunction and ventilation dysfunction. Besides it is featured by rapid progress poor prognosis
and no proven effective treatment to date. It’s proved that traditional hormone therapy or anticoagulant therapy is
unable        to        alleviate        the        disease        progression        of        IPF        and        it        has        strong        side        effects        or        the        risk        of        aggravating        complications.Therefore it is not recommended for the treatment of IPF. Due to the limitations of existing drugs Joincare developed
the modified new drug XYP-001 in 2022 which is a new mechanism/target drug in IPF indication development area.The Company successfully obtained the Clinical Trial Approval Notice issued by the National Medical Products
Administration in September of the same year. By the end of the reporting period the phase I clinical trial of XYP-001
had been successfully completed with the phase II clinical trial scheduled to start. If it is launched it will be a new and
more secure drug alternative for IPF patients. While developing the treatment research of IPF we pay close attention to
other rare respiratory diseases (such as pulmonary arterial hypertension) and take active efforts in preliminary project
research.Malignant Hyperthermia
Malignant Hyperthermia (“MH”) a rare clinical hereditary disease that can cause perioperative death due to conventional
anaesthesia has an extremely low incidence rate and an extremely high mortality rate. Dantrolene Sodium for Injection is
the        only        specific        medicine        for        the        treatment        of        the        disease.        Due        to        the        high        challenge        in        R&D        and        low-profit        margin        no
enterprise in China had been engaged in R&D and production of the drug for a long time. Joincare’s holding subsidiary
Livzon Group began to plan the R&D of the medicine in the early days. After over a decade of arduous exploration
it obtained the medicine registration certificate in October 2020 and thus became the first enterprise in China to
successfully produce generic Dantrolene Sodium for Injection bringing good news to the vast number of MH patients
and anaesthetists in China. In the future we will further appeal to hospitals with clinical needs to stock Dantrolene
Sodium for Injection and include it in the essential drugs for clinical rescue to save the lives of MH patients in time.Acromegaly
Acromegaly is an endocrine and metabolic disease caused by hypersomatotropism of the adenohypophysis. The
Octreotide        Acetate        Microspheres        for        treatment        of        the        disease        are        featured        by        the        technical        difficulty        of        mass        production
the high R&D cost the long R&D cycle and the high import price financially burdening patients and the national
medical insurance system. Based on the urgent need for localisation Livzon Microsphere a subsidiary of Joincare
has initiated the imitation of Octreotide Acetate Microspheres for Injection and obtained approval for clinical trials in
September        2020        which        allowed        bioequivalence        (BE)        studies        to        be        conducted        on        healthy        people        in        contrast        with        the
brand-name medicines. By the end of the reporting period Livzon Microsphere was conducting BE study for Octreotide
Acetate        Microspheres        for        Injection        expecting        to        provide        generic        drugs        with        guaranteed        quality        and        efficacy        as        soon        as
possible to relieve the burden of patients with acromegaly.Thymic tumour
A thymic tumour is a relatively rare type of thoracic neoplasm. Pathological classification of the World Health
Organisation classifies it as a thymic epithelial tumour including thymoma and thymic carcinoma with an incidence of
1.3-3.2 per million. Thymic Carcinoma is a rare Epithelial Malignancy which is more aggressive than thymoma. Most
patients with thymic carcinoma are exposed to external invasion or metastasis at the first discovery. The incidence and
survival time of patients with thymic carcinoma is significantly lower than those with thymoma. At present thymic
carcinoma still lacks effective targeted therapy drugs. Evidence-based medical evidence is limited and the predictive
markers and prognosis are uncertain.Lipstobart for Injection (“LZM009”) a product under research by the Group’s subsidiary LivzonBio can inhibit or
activate receptors by targeting the protein to enhance immune response and improve cancer prognosis. By the end of the
reporting period LZM009 had completed the enrolment in phase II clinical trial for the selected subjects in the patients
64Corporate Social Responsibility Report 2023
with advanced thymic carcinoma. According to the clinical results the phase II clinical trial has reached the preset
efficacy. LZM009 has shown good efficacy and safety in the patients with recurrent or metastatic thymic carcinoma
who have failed first-line chemotherapy making it clinically superior to other alternatives mentioned in the diagnosis
and treatment guidelines. In July 2023 application for communication before new drug application (NDA) in China
was submitted for LZM009. If it is smoothly approved for launching it is expected to provide more options and better
therapeutic schemes for the treatment of thymic tumour.Systemic juvenile idiopathic arthritis
Systemic juvenile idiopathic arthritis (“sJIA”) is a rare chronic systemic disease that usually affects children aged 16
years or younger. sJIA mainly featured by arthralgia lasting 6 weeks or more and accompanied by damage to other
tissues and organs is one of the most severe subtypes in juvenile idiopathic arthritis. At present the incidence rate in
China is about 0.01%.Tocilizumab Injection (“安维泰”) a Recombinant Humanised Monoclonal Antibody targeting Interleukin-6 Receptor (IL-
6R) developed by LivzonBio a subsidiary of Joincare was approved for marketing with the indications of rheumatoid
arthritis in January 2023. In May 2023 the supplementary application of 安维泰 was approved by the National Medical
Products Administration for additional indications in sJIA and cytokine release syndrome (CRS). Tocilizumab Injection
is the only biologics approved for sJIA indications in China and also the drug for the treatment of sJIA active systemic
symptoms or active sJIA with failed first-line treatment as recommended by domestic and overseas definitive guides.Characterised by fast onset and sustained efficacy it can rapidly improve the disease activity index of child-patients
timely control the conditions help them catch up on growth and reduce damage to the joint structure providing a new
targeted option for the treatment of child-patients with sJIA.
6.3 Improving Product Availability
To improve our product availability and make more safe and effective products available to global patients Joincare
expands the production and marketing of vaccines patent medicines generics APIs and IVD (In-Vitro Diagnostics)
reagents and devices overseas mainly via direct operation and authorising local distributors. So far our products have
been approved for registration in major pharmaceutical markets and emerging markets in multiple countries and areas
across Asia Europe North America and Africa. During 2023 our revenues generated from overseas businesses reached
RMB2583.65 million representing a 5-year compound annual growth rate of 7.93%.Joincare’s Main Business Revenue Overseas and Proportion of Its Total Revenues in 2019-2023
19.79%
15.91%
16.68%
Main business revenue overseas 16.17% 15.52%
(RMB in 1 million)
Ratio ofoverseas business revenue
to total revenue
1894.762660.472571.582841.962583.65
20192020202120222023
65Joincare Pharmaceutical Group Industry Co. Ltd.
Internationalisation is the long-term strategy of Joincare’s development. In September 2022 Joincare successfully
listed        its        Global        Depository        Receipt        (GDR)        on        the        SIX        Swiss        Exchange        becoming        the        first        domestic        biopharmaceutical
company to issue and successfully list the GDR in Switzerland. The speed of the Group’s internationalisation that
highlights both “bringing in” and “going global” will be further increased by launching the GDR. At present we
are        working        to        seek        the        opportunities        to        expand        the        introduction        investment        and        M&A        of        overseas        high-quality
pharmaceutical products and pipelines. As part of our “bringing in” strategy we are focusing on expanding new targets
mechanisms and methods of administration and indications in key treatment fields including respiratory diseases
gastroenterology psychiatric disorders and assisted reproduction. This can not only enhance the Group’s strength in
R&D pipeline but also support our strategic development over the next 3-5 years and beyond.To facilitate “going global” we pay close attention to the policies and opportunities for innovative development in the
capital market and actively use the capital market to support our strategic development and business layout. We carried
out a number of on-site investor communication activities in Singapore the United Arab Emirates Switzerland and otheroverseas countries. During these activities we elaborated on the Group’s dual-drive strategy of “Innovative Medicinesand High-Barrier Complex Formulations” international layout and key products to overseas institutional investors.These        efforts        further        boosted        the        Group’s        international        presence        laying        a        foundation        for        the        subsequent        development        of
overseas markets and channels.We proceeded with the work of admittance product registration and promotion for products such as inhalation
formulations assisted reproduction gastroenterology and anti-infection overseas. Ilaprazole Sodium for Injection
and Ilaprazole Enteric-Coated Tablets which are our major products are granted for sale in the Indonesian market.Compound Ipratropium Bromide Solution for Inhalation is approved for drug registration in the Philippines.Levosalbutamol Hydrochloride Nebuliser Solution and Budesonide Suspension for Inhalation are registered in Macao
and are being registered in countries like the Philippines. The application for registration of Cetrorelix Acetate Powder
for Injection has been submitted in the United States. Meanwhile we promote international cooperation and external
licensing and authorisation of innovative products and pipelines and we conduct discussions on cooperation with
international        multi-parties.        Among        them        we        are        discussing        external        authorisation        of        the        modified        new        drugs        Tobramycin
Inhalation Solution with customers in European and Southeast Asia.To promote the industry chain integration the Group leverages the strategic advantage of “APIs-preparations verticalintegration” to globalise and integrate the core supply chain while expanding the business map. We accelerate
the development of overseas API business and step up efforts to develop the market for high-end antibiotic APIs.We strengthen cooperation with local preparation producers and constantly advance the registration of APIs and
intermediates in emerging markets and developing countries. With these efforts we aim to further enhance the global
availability        of        the        Group’s        high-quality        products        and        services.Case
Improving the availability of inhalation formulations - Joincare’s Compound
Ipratropium Bromide Solution for Inhalation was launched in the Philippines
In January 2024 Compound Ipratropium Bromide Solution for Inhalation independently developed
by Joincare successfully obtained the drug registration certificate approved and issued by the
Philippines Food and Drug Administration. This marked that the Group was eligible for the sales
of this product as a drug in the Philippine market. Compound Ipratropium Bromide Solution for
Inhalation is applicable to the patients jointly applying a variety of bronchodilators and is the
commonly used drug for the patients with asthma and chronic obstructive pulmonary disease.Approved        for        marketing        in        China        in        April        2019        it        is        the        first        atomisation        inhalation        solution        in        China
to be approved for new Class 4 registration. Its overseas listing positively promotes the marketing of
the Group’s inhalation formulations in the overseas market and further enhances the availability of
high-end inhalation formulations in the overseas developing countries.
66Corporate Social Responsibility Report 2023
Case
Expanding the biologics business - Livzon Group’s Recombinant Human
Choriogonadotropin alfa for Injection entered the Southeast Asian market
Recombinant Human Choriogonadotropin alfa for Injection (“丽 得 宝”) an assisted reproduction
drug developed by LivzonBio was approved for marketing in China in 2021. Due to its high safety
and affordable price Livzon Group Joincare’s holding subsidiary is working on its overseas
registration.        Besides        it        is        also        seeking        overseas        cooperation        in        an        endeavour        to        benefit        more        infertile
people all over the world and provide more economical products for overseas patients.By the end of the reporting period the registration information had been submitted for Recombinant
Human Choriogonadotropin alfa for Injection in Uzbekistan Pakistan the Philippines and Nigeria
and we had obtained the approval for NDA issued by Badan Pengawas Obat dan Makanan (BPOM)
a        PIC/S        member        country.        These        efforts        have        enabled        us        to        make        a        successful        entry        into        Indonesia        the
largest market in Southeast Asia. The approval of Recombinant Human Choriogonadotropin alfa for
Injection        for        marketing        in        Indonesia        can        benefit        about        4        million        local        infertile        people        and        help        Livzon
Group accelerate its registration process in more PIC/S member countries in Southeast Asia and other
regions thereby benefiting more overseas patients. Moreover Livzon Group signed a Memorandum
of Understanding on strategic cooperation and localised production cooperation of biologics with
the leading enterprise of reproductive products in Bangladesh with the intention of introducing
Recombinant Human Choriogonadotropin alfa for Injection into Bangladesh. This was followed by a
strategic localised production cooperation. If all goes well Recombinant Human Choriogonadotropin
alfa for Injection will be available in Bangladesh in the future and more than 3 million local patients
in need of assisted reproduction will have better treatment options.Speeding up the internationalisation of TCM - Livzon Group’s Jingfu Zhiyang Keli
obtained        the        EAC        Certificate        of        State        Registration
Livzon Group Joincare’s holding subsidiary accelerated the overseas business of TCM preparations
and successfully obtained the EAC Certificate of State Registration for Jingfu Zhiyang Keli issued
by the Russian authorities in December 2023. With the functions of dispelling wind eliminating
dampness clearing heat removing toxicity and arresting itching Jingfu Zhiyang Keli is used to treat
wind-heat        and        damp-heat        type        papular        urticaria        in        children.        It        is        the        Livzon        Group’s        first        TCM        product
approved in Eurasian Economic Union countries. In the future this product will be able to circulate
and be sold freely within the customs territories of five Eurasian Economic Union member countries
(Russia Kazakhstan Belarus Kyrgyzstan and Armenia) benefiting approximately 5.5 million
patients.
67Joincare Pharmaceutical Group Industry Co. Ltd.
6.4 Improving Product Affordability
The cost of medicines accounts for the majority of the medication-related financial burden. Joincare is committed
to alleviating the financial burden on patients by adopting inter-country and intra-country tiered pricing based on
affordability        aiming        to        provide        high-quality        medicines        to        more        patients        at        affordable        prices.Domestic Market
The Group actively responds to admission to the medical insurance list. In 2023 in the new version of the NationalMedicine List for Basic Medical Insurance Work Injury Insurance and Maternity Insurance (“National ReimbursementDrug List”) published by the National Healthcare Security Administration Joincare had 210 products included among
which 95 were Class A and 115 were Class B. In addition Joincare has been keeping track of the national centralised
drug procurement striving to be included in the national procurement list. This year we participated in the eighth and
ninth batches of national centralised medicine procurement organised by the China National Joint Drug Procurement
Office. Among them two products of Joincare’s holding subsidiary Livzon Group won the bid for the eighth batch of
national procurement and one product of Joincare won the bid for the ninth batch. This allows more patients to access
fairly-priced        and        high-quality        medicines        in        the        future.Key Products in National Reimbursement Drug List Medical Insurance Payment Standard
Tobramycin Inhalation Solution (“健 可 妥”):        As        a        modified        innovative        medicine        developed
independently by Joincare 健可妥 is the only approved inhalation formulation in the world
for the treatment of bronchiectasis accompanied with pseudomonas aeruginosa infection.It was approved for marketing in October 2022 breaking the dilemma that no atomised
antibiotics are available for patients with bronchiectasis in China. As a key item under the RMB 253.60National Key New Drug Creation Programme 健可妥        offers        the        benefits        of        low-dose        local         (5ml:300mg/piece）
administration high concentration non-ototoxicity and non-nephrotoxicity and low medicine
resistance. It is safer for both childhood and elderly patients and represents a significant
breakthrough        in        the        field        of        respiratory        system        diseases.Ilaprazole Sodium for Injection (“壹丽安”): 壹丽安 a patented new drug of Joincare’s
holding subsidiary Livzon Group was incorporated into the NRDL in 2019. This year 壹
丽 安 was once again included in the NRDL as a drug used for patients with peptic ulcer RMB 63.00
and it also received approval for a new indication "prevention of severe stress-induced ulcer
bleeding". The medical insurance payment for this drug was reduced from RMB 71/piece to (10mg/piece)
RMB 63/piece which expands the application range of the product meets clinical needs and
further alleviates the economic burden on patients.Triptorelin Acetate Microspheres for Injection (“维 宝 宁”): It is a modified new drug
developed by Livzon Microsphere a subsidiary of Joincare and was approved for marketing
in May 2023. It is indicated for the treatment of locally advanced or metastatic prostate cancer. RMB 1000.00
Compared with the Triptorelin Acetate Injection 维宝宁        offers        significant        advantages        such
as        a        longer        duration        of        action        and        fewer        doses        required.        The        medical        insurance        payment        is         (3.75mg/bottle)
RMB 1000 per bottle representing a price reduction of approximately 20% compared to the
imported formulations already on the market.
68Corporate Social Responsibility Report 2023
Products Selected in the 8th Batch of Volume-based Procurement Price
Voriconazole for Injection (“丽福康”): As a product of Joincare’s holding subsidiary Livzon
Group it is a broad-spectrum triazole antifungal medicine used to treat progressive and life- RMB 291.90
threatening fungal infections. It can also be used to prevent invasive fungal infections in high-
risk patients undergoing allogeneic hematopoietic stem cell transplantation. In recent years (0.2g*10 bottles/
Voriconazole has become the preferred treatment for invasive fungal infections due to its box)
broad-spectrum        antifungal        action        and        positive        effects.Cefodizime Sodium for Injection (“康 丽 能”): 康 丽 能 is a product of Joincare’s
h o l d i n g s u b s i d i a r y L i v z o n G r o u p . I t i s a t h i r d - g e n e r a t i o n b r o a d - s p e c t r u m RMB 28.90
cephalosporins and passed the consistency evaluation in July 2022. This medicine
possesses broad-spectrum antifungal actions to treat infections caused by sensitive (0.5g*10 bottles/
organism including upper and lower urinary tract infections lower respiratory tract box)
infections and gonorrhea.Products Selected in the 9th Batch of Volume-based Procurement Price
Levosalbutamol Hydrochloride Nebuliser Solution (“丽 舒 同”): As a key product of
Joincare it was a typical complex formulation and entered the Announcement on Application
for Registration of Drugs to be Included in the Priority Review Procedure (29th Batch) because
of the advantages for priority review such as “Major Special Project” and “Children's Drugs”
in 2018. In 2019 it was approved for marketing as the first new class-III levosalbutamol RMB 1.65
formulation in China and included in the NRDL in 2020. It can reduce the risk of adverse
reactions such as tachycardia and hypokalemia compared with salbutamol a commonly used (3ml: 0.63mg/piece)
first aid for asthma and chronic obstructive pulmonary disease (COPD) and can greatly
improve patients’ pulmonary function thereby lowering the risks of them having to be
hospitalised and re-hospitalised or shortening hospital stays. Therefore this medicine is a safe
and        more        effective        treatment        optionfor        patients.Overseas Market
When entering overseas markets Joincare comprehensively considers the local economy healthcare level and price
benchmarking        to        offer        equitable        pricing        in        line        with        the        current        regional        development        avoiding        an        increase        in        the
financial        burden        of        patients.        After        an        adequate        assessment        of        local        per        capita        income        and        analysis        of        local        patients'
affordability differential and tiered pricing strategies are implemented for different markets. Joincare also positively
goes        for        the        bidding        of        local        governments        during        product        promotion        in        developing        countries        overseas        so        that        affordable
medicines and services would be offered locally. By the end of the reporting period the Group and its subsidiaries had
adopted        equitable        pricing        policies        for        27        products        in        South        Asia        Southeastern        Asia        South        America        and        Africa        to        match
the local income level.Taking        into        account        the        affordability        Joincare’s        holding        subsidiary        Livzon        Group        also        adopts        equitable        pricing        policies
in a bid to promote pricing transparency in both developed and emerging markets. For formulations Livzon Group
strictly adheres to the local government's pharmaceutical pricing policies in developing countries. The generic drugs are
usually priced at 60-70% of the price of the original drugs. For APIs Livzon Group reduces intermediary channels by
selling APIs directly to the end formulation factories. This approach enables accurate knowledge of the purchasing prices
of end customers thereby enhancing pricing transparency and reducing local pharmaceutical supply costs.
69Joincare Pharmaceutical Group Industry Co. Ltd.
Table: Livzon Group’s pricing policies and implementation
Business Pricing policies Pricing
*Livzon Group has established the commercial
*Considering higher drug costs covered
cooperation with over 50 customers in India for the
by pa t i en t s i n emerg ing marke t s /
supply of 20 APIs and intermediates. The pricing for
developing countries Livzon Group
intermediates is about 5%-10% lower than that in
provides        these        markets        with        high-quality
developed countries and the pricing for APIs is about
APIs and intermediates at prices lower
15%-30% lower than that in developed countries.
than those in developed countries aiming
to reduce drug costs for patients in the *Some high-end antibiotics (such as Vancomycin
target countries. Hydrochloride Teicoplanin and Dattomycin) are in
great demand in emerging markets and developing
*When promoting products in emerging
APIs countries. The average selling price for such products
markets/developing countries Livzon
in developing countries from South America
Group sets prices in alignment with the
Southeast Asia and Africa is about 10%-15% lower
local living and medical levels.than that in developed countries.*Livzon        Group        also        upholds        equitable
*The average selling price of some veterinary drugs
pricing at home. Livzon Group signs
(such as Doramectin and Moxidectin) in major South
an annua l supp ly ag reemen t w i th
American countries (such as Colombia Brazil
domestic strategic partners and provides
Uruguay and Argentina) and some Asian countries
concessions based on the purchase
(such as Pakistan and Vietnam) is about 15%-20%
volume.lower than that in developed countries.*For Recombinant Human Choriogonadotropin alfa
*By supplying chemical generic drugs
for Injection Livzon Group waives licensing fees for
or biosimilar drugs Livzon Group sells
its partners in 4 countries in West Africa South Asia
formulations with lower prices and
and Southeast Asia.similar efficacy to the Asian African and
Latin American markets. *For Ilaprazole Sodium for Injection a patented new
drug Livzon Group waives licensing fees for its
* In emerg ing marke t s /deve lop ing
Formulations partners in 2 countries in Southeast Asia and 1 country
countries Livzon Group adopts a suitable
in Africa.pricing structure to formulate reasonable
price based on local development level. *For Recombinant Human Choriogonadotropin alfa
for Injection Ilaprazole Sodium for Injection and
*In underdeveloped and low-income
Urofollitropin for Injection Livzon Group reduces
coun t r i es L ivzon Group exempts
the        minimum        purchase        requirements        for        partners        in
licensing fees.developing countries.*By probing the f inal sel l ing price
of reagents Livzon Group prohibits
distributors by relying on franchise to
limits their mark-up on the final selling *Livzon Group approaches multiple transport service
Reagents price. providers        for        the        optimum        freight        quotation        in        a        bid
to        provide        customers        with        cost-effective        delivery.*In underdeveloped and low-income
countries Livzon Group provides more
favourable prices.
70Corporate Social Responsibility Report 2023
6.5 Improving Healthcare
In recent years the global population has been increasing leading to a growing demand for medical services. The
issues of uneven distribution of medical resources and imbalanced development of medical technology have become
increasingly prominent. As a result many patients in developing countries still lack access to timely effective and
affordable healthcare. Joincare adheres to the corporate mission of "For the health For the future" and fully leverages
our own strengths to continuously popularise knowledge of chronic diseases and eliminate the indiscrimination use of
antibiotics. We also actively involve in capacity advancement initiatives in developing countries and contribute to global
health development.
6.5.1 Popularising Knowledge of Chronic Disease
Respiratory disease is China's third most common chronic disease after cardiovascular disease and diabetes with more
than 160 million patients suffering from asthma chronic obstructive pulmonary disease (COPD) and bronchiectasis.Recently the incidence of asthma COPD and other respiratory diseases in China have kept rising. According to the
statistics China has nearly 45.7 million adult and 15 million childhood patients with asthma and 100 million patients
with COPD. However the awareness rate of COPD is way below the target set by the Healthy China initiative 2019-
2030. To increase public awareness of chronic respiratory diseases with measures such as organising online live-
broadcasting via new media publishing academic papers supporting academic research and holding and participating
in offline academic promotion activities Joincare endeavours in many ways to educate the public about asthma COPD
and other chronic respiratory diseases and encourages people potentially suffering from these diseases to take regular
pulmonary function tests to help prevent and treat chronic respiratory diseases.Case
“Respiratory Experts’ Views” public welfare activities seriesJoincare focuses on respiratory diseases. We build a popular science new media platform matrix called “RespiratoryExperts’ Views”. Through new media channels such as WeChat official account Douyin and Weibo we promote
knowledge on chronic respiratory disease and give treatment support.*During the “World Asthma Day” 2023 activities the “Respiratory Experts’ Views” platform continued its “Asmall red envelope for you” activity collaborating with 436 grade-A tertiary hospitals nationwide to conduct public
education activities on asthma. Additionally it launched a week-long series of live broadcasts focusing on asthma
knowledge. With a close focus on the "World Asthma Day" theme of "Asthma Care for All" we partnered with
asthma experts to spread knowledge of asthma prevention and treatment to the public aiming to promote a correct
understanding        of        asthma        and        effective        disease        management.*In recent years the incidence and prevalence of bronchiectasis have increased in the world with poor patient
compliance        leading        to        significant        burdens        on        the        society        and        families.        To        raise        global        awareness        of        bronchiectasis
1 July 2022 was designated as the first "World Bronchiectasis Day". During the second "World Bronchiectasis
Day" in 2023 the "Respiratory Experts' Views" platform collaborated with the China Bronchiectasis Registry
and Research Collaboration (BE-China) to launch a public welfare and educational campaign on bronchiectasis.Through online and offline approaches it aimed to encourage patients to effectively manage the disease thereby
improving        their        quality        of        life.*During the “World COPD Day” activity in 2023 the "Respiratory Experts’ Views" platform joined forces with
329 grade-A tertiary hospitals nationwide to conduct public welfare educational activities for COPD. Additionally
it collaborated with local media to promote and expand coverage of the campaign calling on the public to keep a
healthy        lung        and        promote        early        prevention        and        effective        intervention        for        better        treatment        effect.By the end of the reporting period the “Respiratory Experts’ Views” platform had assembled over 5000 respiratory
experts hosted over 500 educational live broadcasts on respiratory diseases with over 1000 experts participating
and over 25 million views and attracted over 5 million followers.
71Joincare Pharmaceutical Group Industry Co. Ltd.
6.5.2 Addressing Antibiotic Resistance
The Group acknowledged that antibiotic resistance has become a global public health risk theme threatening human
health. In strict accordance with the Management Policy for Clinical Use of Antimicrobial Medicines Joincare greatly
emphasises the clinical use of antibiotics and strengthens the management of its anti-infection product portfolio
including Meropenem for Injection Voriconazole for Injection and Cefodizime Sodium for Injection. Based on the
classification of antibiotics for clinical use we actively cooperate with medical institutions to handle antibiotic abuse
enforce the principles of “non-limited use” “limited use” and “special use” and promote the management of physicians’
prescription rights and control of medicine-resistance bacteria. Training lessons and lectures on optimising medicine-
resistance bacteria treatment schemes are given to improve the clinical efficacy of antibiotics and effectively prevent
misuse.In terms of R&D to address antibiotic resistance the Group focuses on the resistance risk of Tobramycin Inhalation
Solution and drug resistance of pseudomonas aeruginosa (PA). PA infection is difficult to control in the acute stage and
difficult        to        clear        in        the        stable        stage.        The        drug        resistance        rates        of        commonly        used        anti-PA        drugs        (e.g.        fluoroquinolones
carbapenems penicillins) are more than 10%. In contrast the resistance index of Tobramycin Inhalation Solution in
phase III clinical trial showed a low risk of resistance. In two clinical studies treatment with Tobramycin Inhalation
Solution for 6 months had little effect on the susceptibility of most PA strains tested effectively reducing the incidence
of antibiotic resistance. Also Joincare’s holding subsidiary Livzon Group keeps on conducting R&D to address drug
resistance of Gram-Negative Bacteria and Fungi and works with stakeholders to develop solutions to antibiotic resistance.Moreover Joincare takes an active part in a number of academic conferences and has in-depth exchanges with clinical
experts in infection respiratory blood ICU organ transplantation skin obstetrics and gynaecology and scholars
engaged        in        basic        research        of        microbiology.        Through        these        efforts        we        aim        to        promote        development        and        innovation        in        the
field        of        medicine        to        ensure        that        all        people        can        live        a        healthy        life.Case
Study        on        the        efficacy        and        safety        of        Tobramycin        Inhalation        Solution
Bronchiectasis one of common chronic respiratory diseases in China can be aggravated by PA. The
frequent        and        acute        attack        of        bronchiectasis        due        to        the        bacterium        will        increase        the        risk        of        hospitalisation.For initially isolated PA approximately 50% of patients can achieve continuous negative sputum culture
within one year through eradication therapy based on inhaled antibiotics. However once PA becomes
chronically colonised the eradication becomes a challenge. Timely and standardised eradication therapy
may improve the prognosis of patients with initial or new PA infections but there is limited high-level
evidence to support this. Therefore it is considered in the industry that eradication therapy for initial or
new PA infections has become the primary focus of current research in bronchiectasis.Before the introduction of 健 可 妥 to the market bronchiectasis patients in China had not undergone
long-term inhaled antimicrobial therapy making them an ideal population to explore the efficacy and
safety of eradication therapy. Therefore Professor Xu Jinfu from the Shanghai Pulmonary Hospital
affiliated to Tongji University initiated a study titled "The Efficacy and Safety of Inhaled TobramycinSolution for Eradicating Pseudomonas Aeruginosa in Adult Bronchiectasis Patients” with the support of
BE-China. Sponsored by Joincare this research is currently recruiting participants. The research aims
to explore the superior efficacy of Tobramycin Inhalation Solution either alone or in combination with
Ciprofloxacin Hydrochloride Tablets compared with inhalation of physiological saline in eradicating
PA        for        early-stage        infected        adult        patients.        The        primary        efficacy        indicator        of        the        research        is        the        proportion
of subjects with continuous negative PA sputum culture following the initiation of treatment (negative
sputum culture at weeks 24 and 36). Secondary efficacy indicators include patient acute exacerbations
lung        function        hospitalisations        and        quality        of        life.        Safety        indicators        include        the        incidence        of        adverse
events and the proportion of subjects developing resistance to Tobramycin and Ciprofloxacin
Hydrochloride after enrolment.
72Corporate Social Responsibility Report 2023
Case
Livzon Group’s study on tackling antimicrobial drug resistance
Study on Drug Resistance of Gram-Negative Bacteria (GNB)
At present GNB is highly resistant to antibiotics. According to the study all top five clinical strain
infections in China are GNB infections. Polymyxin one of the most important drugs in the treatment
of        multidrug-resistant        (MDR)        GNB        infections        is        effective        against        various        GNB        including        Escherichia
coli thanks to its low resistance rate and strong antibacterial activity. It is called the last line of
defence        for        MDR        GNB        infections        against        which        antibiotics        such        as        β-lactams        aminoglycosides        and
quinolones        are        ineffective.The Livzon Group is developing polymyxin products. Our API polymyxin E sodium
methanesulfonate has obtained the European CEP and passed the FDA review. It is under the domestic
application for marketing and the review of registration at present. In addition Livzon Group is
working out the formula of polymyxin preparations to facilitate the marketing.Study on Drug Resistance of Fungi
In recent years as more people are infected with immunodeficiency virus or undergo tumour
chemotherapy invasive fungal infections has gradually increased. At present three main types of
antifungal drugs are available on the market: polyene azole and echinocandin. After years of clinical
use high level of antifungal resistance is shown severely limiting treatment options.Livzon Group is developing a new class 1 drug with a brand-new mechanism of action and targets
- fungi-specific enzymes. The targets have low homology with human body leading to good safety
potential. The new mechanism of action is expected to tackle antifungal resistance. By the end of the
reporting        period        Livzon        Group        had        confirmed        the        lead        compounds        which        are        under        optimisation.
73Joincare Pharmaceutical Group Industry Co. Ltd.
6.5.3 Involvement in Capacity Advancement Initiatives
Joincare is deeply committed to the development of healthcare in developing countries. In line with our international
strategies we are actively involved in capacity advancement initiatives for healthcare in developing countries and work
closely        with        local        partners        to        collectively        improving        the        quality        and        capacity        of        health        services        in        those        regions.Training of local healthcare workers
While expanding our formulation business in developing countries the Group actively provides training for local
healthcare workers to improve local medical service standards. While we exported Meropenem for Injection to
developing countries such as the Philippines Ukraine Vietnam Pakistan Peru and Chile we provided registration and
promotion training for local contacts and assisted our partners in conducting product usage and related training for local
healthcare workers. In addition Joincare’s holding subsidiary Livzon Group is conducting training for the healthcare
workers and key researchers of the overseas Phase III clinical trials of 丽 康 in the Philippines Pakistan Malaysia and
other        countries        covering        the        relevant        regulations        of        vaccine        registration        remote        verification        process        verification        points
and experience sharing etc. to help local healthcare workers standardise clinical research operations according to the
GCP guideline. Also Livzon Group is actively engaged in overseas academic promotion and training activities. Livzon
Group provides detailed product usage instructions and shares clinical experience with healthcare workers in developing
countries        so        as        to        ensure        the        safe        and        effective        use        of        our        products        for        local        patients.Case
Livzon Group provides academic promotion regarding innovative medicines for
healthcare workers in Indonesia
Since the launch of the innovative medicine Ilaprazole Sodium for Injection in Indonesia in
2023 Livzon Group has collaborated with local partners to conduct a total of 8 academic
promotion activities in Indonesia. This includes organising 4 large-scale professional academic
seminars held by the Indonesian Society of Internal Medicine and Indonesian Society of
Gastroenterology. On 11 November 2023 Livzon Group and its Indonesian partners participated
in the annual conference of internal medicine held in Bali Indonesia. The conference attracted
approximately 300 experts from various regions of Indonesia. During the conference Livzon
Group and its partners invited a prominent gastrointestinal disease expert in Indonesia to present
the clinical advantages of Ilaprazole for Injection as a new generation PPI in the treatment of
gastrointestinal bleeding. The expert also elaborated on the product usage and precautions
which received positive and favourable feedback from other experts in Indonesia. In the product
promotion phase local Indonesian experts will lead in-depth training for healthcare workers at
local hospitals.Livzon Group provides academic training for healthcare workers in Uzbekistan
Livzon Group launched its assisted reproductive products Urofollitropin for Injection and
Menotropins for Injection in Uzbekistan in 2022 and were academically promoted at the local
reproductive conference. This year Livzon Group invited Chinese doctors with rich clinical
experience and local experts in the field of reproductive medicine in Uzbekistan to engage in online
academic communication with 8 doctors from 3 leading reproductive centres invited by local partners.The        purpose        was        to        exchange        and        share        the        usage        efficacy        and        clinical        experience        of        Livzon        Group's
reproductive        products        providing        academic        support        for        the        safe        and        effective        use        of        the        products.
74Corporate Social Responsibility Report 2023
Assistance to local manufacturers to boost their capacity and competency
As an APIs supplier Joincare together with its holding subsidiary Livzon Pharmaceutical Group shares its research
results with less developed countries and regions overseas and proceeds technology transfer. We improve production
ability of local formulation manufacturers to ensure that they can match applicable international drug manufacturing
standards. In addition Livzon Group helps local pharmaceutical enterprises to improve and optimise production
procedures        and        quality        control        routine        by        providing        technology        transfer        and        analysis        and        detection        scheme.        Therefore
the level of local production technology is increased.Case
Joincare facilitates process optimisation for API manufacturers in India
The Indian market stands as one of the largest global market for cephalosporins and Joincare is the
primary supplier of the starting materials 7-ACA and D-7ACA for cephalosporin APIs in the Indian
market. 7-ACA was previously used extensively as an intermediate for cephalosporin APIs in the
Indian market. Since 2013 Joincare has conducted multiple regular visits each year and actively
promoted the conversion of the starting materials for Cefuroxime Axetil and Cefpodoxime Proxetil
APIs from 7-ACA to D-7ACA for the cephalosporin API manufacturers in India. This initiative has not
only reduced the production processes and periods for cephalosporin API manufacturers in India but
also        reduced        quality        control        risks        and        lowered        production        costs.        At        present        the        demand        for        D-7ACA
in        the        Indian        market        significantly        exceeds        that        of        7-ACA.        The        reduction        in        product        costs        has        benefited
the entire Indian market and decreased medicine costs for local patients.Livzon Group offers free transfer of impurity detection method to producers from
developing countries
Any materials that effect drug purity are called impurity. The research on impurity is an important
part in drug R&D. The control of impurities in drugs relate directly to the controllability and safety of
drug        quality.        By        relying        on        its        ability        of        R&D        and        quality        analysis        Livzon        Group        developed        its        own
impurity detection method and it gives the method to generic drug pharmaceutical enterprises who
lack of technology in new emerging markets and developing countries for free. Providing impurity
standard        breaks        barriers        of        impurity        control        and        unique        techniques        for        detection        set        by        European        and
American suppliers or original drug developers. In 2023 Livzon Group independently developed an
impurity detection method for Daptomycin and supported customers in utilising and registering the
product in certain markets ensuring the smooth commercialisation of the product.
75Joincare Pharmaceutical Group Industry Co. Ltd.
07
Talent
Management
SDGs in this section
Sticking to the value proposition of “Putting people first” Joincare always regards people as the core driver of sustainable
development.        We        always        insist        on        developing        employer        branding        by        constantly        optimising        quality        and        level        of        human        resource
management.        We        attract        and        gather        talents        with        an        equal        and        inclusive        attitude        and        we        respect        their        legitimate        interest.        With
compliant employment multilevel training and comprehensive compensation and welfare we provide a wide and fair career
development path for employees to stimulate organisational vitality constantly. We pay great attention to the occupational health
and        wellbeing        of        our        employees        by        optimising        the        working        environment        and        office        facilities        to        continuously        improve        their        sense
of happiness and belonging. Therefore we grow together with our employees.
76Corporate Social Responsibility Report 2023
7.1 Protection of Rights and Interests of Employees
The        Group        always        regards        high-quality        talents        as        the        core        strength        for        corporate        development.        Committed        to
safeguarding the legitimate rights and interests of employees we improve the employment management and eliminate
any        form        of        prejudice        discrimination        or        harassment        to        create        an        inclusive        workplace        with        diversity        and        equity.        By        the
end of the reporting period Joincare has 14365 employees in total.
7.1.1 Employment Compliance
Complying with the Labour Law of the PRC the Labour Contract Law of the PRC the Provisions on the Prohibition
of Child Labour and other laws and regulations Joincare has formulated the Code of Labor Employment and Ethical
Conduct (the “Code of Employment” or the “Code”). The Code of Employment has specified the employment
management covering all employees (including full-time part-time and temporary employees) of the Group and its
subsidiaries as well as all suppliers contractors service providers customers and other partners in collaboration with
the Group. Sticking to zero tolerance for any form of discrimination we have defined escalation process for reporting
incidents as well as disciplinary and corrective actions in case of discriminatory behaviour or harassment in the Code of
Employment (see Article 8-10 summarised below). During the year there were no discrimination or harassment incidents
at Joincare.In addition we keep improving policies such as the Human Resources Management Regulations the Training
Management System the Attendance Management System and the Employee Handbook. We sign contracts with
employees under the principle of free will to specify their rights and obligations.
77Joincare Pharmaceutical Group Industry Co. Ltd.
The Code of Employment of Joincare is summarised as follows:
1.The Code are applicable to all employees of Joincare including full-time employees part-time employees and
temporary employees as well as all clients suppliers service providers contractors and other partners conducting
business with Joincare.
2.The Company prohibits the use of child labour. All units are forbidden to recruit and employ minors under the
age of sixteen.
3.The Company is against forced labour. No unit shall force employees to labour by means of violence threats or
illegal restrictions on personal freedom.
4.The Company respects our employees’ freedom of association. Employees have the right to freely choose to
form        or        join        a        union.        The        labour        union        has        the        right        to        bargain        with        Joincare        on        an        equal        footing        with        Joincare        on
behalf of employees and enter into collective contracts in accordance with the law.
5.We strive to create a physically and mentally healthy working environment for employees. We guarantee the
labour        safety        and        health        protection        of        employees        in        the        workplace        in        accordance        with        the        requirements        of        national
regulations and support the continuous improvement of the working environment. All employees are responsible
for reporting potential unsafe factors in the workplace.
6.We        value        the        development        and        improvement        of        our        employees'        talents.        When        deciding        on        labour        affairs        such        as
compensation benefits training opportunities promotion demotion assignment transfer development tuition
assistance        or        retirement        we        will        make        decisions        based        on        their        capabilities        performance        and        work        requirements
without being influenced by factors such as age ethnicity race family status ethnic background skin colour
gender sexual orientation religious belief social origin nationality disability pregnancy etc. and strive to
eliminate all forms of bias and discrimination.
7.We strictly prohibit any form of harassment in the workplace including sexual harassment and other non-sexual
harassment against the will of others by means of oral language written texts images physical behaviour etc.We encourage employees who are victims of harassment to immediately report the situation to their superiors or
the human resource department for the Company to investigate. We will investigate such reports confidentially
as promptly as possible. Once the investigation is sufficient to substantiate relevant allegations we will take
appropriate corrective actions.
8.We have incorporated the principles and concepts of diversity anti-discrimination non-prejudice and anti-
harassment        into        our        employee        training        and        require        all        employees        of        Joincare        to        participate        in        such        training        and
deeply understand the above principles and provisions of related rules.
9.We give our best effort to identify behaviours that do not comply with the provisions of the Code and commit
to make every effort to prevent such behaviours from occurring. To this end we encourage Relevant Persons to
report violations of the Code to their superiors or the human resource department as promptly as possible so that
the Company can investigate and tackle them to reduce the occurrence of such violations in the future.
10.We will investigate the violations of the Code as promptly as possible and take necessary measures to
protect the legitimate rights and interests of Relevant Persons who report and complain in good faith; those who
deliberately fabricate facts and make false charges or frame-ups under the pretext of reporting or complaining
will be dealt with seriously in accordance with relevant regulations and shall be transferred to judicial organs for
handling if the action constitutes a crime.
11.Once the investigation is sufficient to prove that there is a violation of the Code we will impose appropriate
penalties and take corrective measures including but not limited to the termination of labour contracts and
commercial contracts. Those whose actions are suspected of constituting a crime shall be transferred to judicial
organs for handling.
78Corporate Social Responsibility Report 2023
7.1.2 Human Rights Protection
To better fulfil our commitment to human rights Joincare has developed and published on the official website the Code
of Employment a company-specific and company-wide human rights policy covering the practices set out in the ILO
core conventions and the Universal Declaration of Human Rights of the United Nations. This Code has specified such
provisions on protecting human rights as the prohibition on forced and child labour anti-discrimination anti-harassment
equal        remuneration        freedom        of        association        the        right        to        collective        bargaining                and        occupational        safety        and        health
(see Article 2-7 summarised above). This Code applies to all employees including full-time part-time and temporary
employees as well as all customers suppliers service providers contractors and other partners in collaboration with the
Group.In        addition        to        policy        requirements        we        have        taken        a        series        of        actions        to        mitigate        and        remediate        human        rights        risks.        We
strengthen education and training on protecting human rights in our daily work. We strictly review the implementation of
human right policies identify potential risks through due diligence process and take improvement actions to proactively
prevent potential human rights risks. All employees and relevant personnel of the Group can report potential human right
risks via the hotline published on the official website. Those in violation of the provisions on protecting human rights
will be investigated immediately. We will also take the necessary actions to protect the legitimate rights and interests
of the reporter. Once verified those who violate the Code of Employment will be punished appropriately including but
not limited to the termination of labour contracts and business contracts. Those whose acts are suspected of constituting
crimes will be transferred to judiciary authorities for handling.Case
Livzon Group conducts Human Rights Due Diligence
Joincare’s holding subsidiary Livzon Group has established systematic Human Rights Due Diligence
Process including human rights risk identification annual audit and report and formulation and
implementation of mitigation and remediation actions. Covering its own operations and business-
related activities Livzon Group’s Due Diligence includes human right protection terms in the
Code        of        Employment        such        as        prohibition        on        forced        and        child        labour        equal        remuneration        and        anti-
discrimination. This year based on the results of the Due Diligence Livzon Group’s human rights
risks        mainly        arose        from        working        environment        compensation        and        benefits        and        conflict        of        interests.        For
each risk identified Livzon Group developed and taken effective mitigation and remediation actions
which have been implemented by its subsidiaries and overseen by its ESG Committee. By the end of
the reporting period one subsidiary under the Livzon Group had implemented mitigation plans.
7.1.3 Diversity and Inclusion
Joincare        advocates        a        diverse        equal        and        inclusive        corporate        culture        to        attract        and        pool        outstanding        talents        and        encourages
employees with different backgrounds to give play to their talents. We have formulated and implemented the Diversity
Equity        and        Inclusion        Policy        specifying        that        the        Social        Responsibility        Committee        of        the        Board        is        responsible        for
reviewing the policy and overseeing diversity performance and progress for target of the Group. All employees are
required        to        complete        the        training        on        the        Diversity        Equity        and        Inclusion        Policy        and        other        courses        regarding        diversity
equity        and        inclusion        to        cultivate        awareness        in        these        regards        and        create        a        diverse        and        unbiased        working        environment.In        addition        we        treat        employees        equally        and        offer        rights        and        benefits        in        all        aspects        of        human        resources        management
such as hiring promotion and compensation to all employees regardless of their gender age ethnicity and nationality.Meanwhile we keep on improving the management rules regarding diversity in the Compilation of the Human Resources
Management System. We also carry out compliance audits on human resources management.
79Joincare Pharmaceutical Group Industry Co. Ltd.
Case
Livzon Group conducts diversity training for employees
In 2023 Livzon Group Joincare’s holding subsidiary conducted online and offline diversity training
for        all        employees        including        the        contents        and        mechanism        identification        and        impacts        management        as
well as exploration and actions in this regard. Through the training employees were able to understand
and respect different cultures backgrounds and views to eliminate prejudices in life and work. In
addition teamwork and multicultural exchanges were also encouraged to promote the diversity. The
employee satisfaction rate of this diversity training reached 93.8%.Livzon Group’s Diversity TrainingBased        on        business        development        requirements        the        Group        has        set        a        quantifiable        diversity        goal        of        “no        less        than        49%        femaleemployees by 2032”. The Group also strengthens the collection statistics and disclosure of diversity indicators ensure
the orderly progress of diversity-related initiatives. By the end of the reporting period the Group had 6577 female
employees accounting for 45.8% of the total employees with female management of 35.4%.Number of female Share of women in total Share of Women in
employees workforce Management Positions
6577people 45.8% 35.4%
In terms of material benefits to facilitate diversity in addition to marriage maternity breastfeeding and other leaves
stipulated by the national law we provide generous gift packages to female employees during their childbearing period.This year we provided special care for female employees that is customised physical examination services. Through
regular physical examination female employees can keep abreast of their health status in time and take appropriate
precautions and treatments for identified health problems. At the same time we apply for social insurance subsidies for
the        employees        with        disabilities        to        provide        more        financial        support.
80Corporate Social Responsibility Report 2023
7.1.4                Staff        Communication
We respect and value the views and suggestions of employees. We continuously improve employee communication
channels        regularly        listen        to        their        voices        through        questionnaires        and        provide        anonymous        feedback        channels        to        ensure        free
expression. We also provide a feedback box to encourage employees to give written comments and suggestions at any time.Meanwhile through regular seminars and one-on-one talks in daily work we maintain close communication with employees
via        internal        newsletters        and        emails        to        understand        their        needs        and        solve        specific        difficulties        in        their        work        and        life.In order to smooth the employee grievance reporting channels we have established and strictly abide by the Measures for
the Management of Complaining and Reporting and we have built a formal grievance escalation and reporting procedures
where grievances can be reported smoothly and confidentially. We urge all employees to timely complain or report the
violation of the Code of Employment labour rights and any dissatisfaction. We strictly keep the confidentiality of the
information on complainants as well as the content of complaints and take necessary measures to protect the physical safety
and legitimate rights and interests of the complainants. Also the Company convened a meeting of the Audit Committee of
the Board of Directors on 2 April 2024 to deliberate the Joincare Pharmaceutical Industry Group Co. Ltd. Complaining
Reporting        and        Whistleblower        Protection        Policy        which        was        disclosed        on        the        official        website        at        the        same        time.Protection Measures for Complainants
The information on
whistleblowers and complainants Receiving reports and complaints
as well as the content of reports and verifying with relevant Any personal information
and complaints should be strictly personnel such as whistleblowers including identity and rewards
confidential.        The        materials        and         and complainants should be cannot be disclosed without the
records of reports should be conducted        in        a        confidential        way         express consent of whistleblowers
incorporated        into        confidential         without the identity of the personnel and complainants.document management. The being disclosed.settled        cases        should        be        filed.In addition starting from this year we plan to conduct regular satisfaction surveys for all employees of the Group and
its subsidiaries every year. Based on this we respect and understand advice and feedback from employees in time to
improve employees’ satisfaction and engagement.Case
Employee        satisfaction        survey        at        Joincare        headquarter
In        2023        our        headquarter        carried        out        an        employee        satisfaction        survey        to        assess        how        employees        feel
at work and how much they identify with the Company. The metrics covered include organisational
support work-life balance career development opportunities diversity and inclusion the working
environment and the like. According to the survey results 98% of our employees participated in
the activity of which 90% were satisfied. The majority of employees were satisfied with our overall
performance and confident in our future development. The problems reported by employees are
addressed with proper corrective measures. This helps to further increase employees’ engagement and
job satisfaction and to create a better working environment and development opportunities for them.We will follow up on the needs and feedback of employees and keep optimising our management
strategies to enhance their sense of belonging.
81Joincare Pharmaceutical Group Industry Co. Ltd.
Case
Livzon Group conducts employee engagement surveys（Gallup system）
Joincare’s holding subsidiary Livzon Group conducts employee engagement surveys once every
year. In 2023 Livzon Group hired a third-party institution to conduct an employee engagement
survey in accordance with the Kincentric model of the Gallup system from 16 dimensions
including organisational support work-life balance career development opportunity diversity
and inclusion performance management and employer brand. The survey covers employees' job
satisfaction (recognition of the company and job responsibilities and intention of retention publicity
and endeavour) purpose of work (personal work goals and company business goals) happiness
(satisfaction        with        workplace        diversity        gender        equity        benefits        rewards        and        recognitions)        and        stress
(reasonableness of work pressure and work-life balance) and other aspects. The survey covered all
permanent employees of Livzon Group. The response rate was 98% and the overall engagement score
was 75%.Labour Union Management
Joincare regards the labour union as an important link between management and employees. To strengthen exchange with
employees Joincare holds regular workers' congresses to maintain close communication with them involving them in the
Group’s major decision-making. Meanwhile we invite professional psychological consultants to deliver courses helping
employees relieve stress and relax themselves. This year 100% of employees were represented by the independent trade
union.
100%
of employees were represented by the independent trade union.
7.2 Improving Talent Management
Joincare highlights talent cultivation. With a formal talent pipeline development strategy we recruit talents based on
scientific        forecast        of        hiring        needs.        We        actively        develop        new        pools        of        talent        to        improve        profitability        and        maintain        our        core
competitiveness. We continue to strengthen talent management and open up more channels in talent introduction striving
to        retain        and        make        full        use        of        talent        with        even        greater        effort.        For        employees        at        different        levels        and        in        different        positions
we developed targeted development programs training plans and incentive mechanisms and provide generous salaries
and        benefits        to        enhance        employees’        satisfaction        and        happiness.
82Corporate Social Responsibility Report 2023
7.2.1 Talent Attraction and Retention
Joincare has been stepping up efforts in talent employment by experienced hire recruiting and campus recruiting. We
reinforce our talent pool through channels including online recruitment internal recommendation headhunting and
cooperation with governmental agencies. We aim to match the right talents with the right positions and increase our
team value continuing to drive the sustainable talent development. We make progress in creating a multi-level talent
reserve and plan to use Feishu for the information management of talent reserve in an orderly way in the next reporting
period. Thus we are able to share the information resources of the talent reserve within the Group. We carry out regular
talent review according to our strategic planning and business development trends identifying the key positions and key
employee        communities        and        setting        the        stage        goals        of        staffing        at        each        level.        Moreover        we        focus        on        the        latest        talent        flow
and salary level in the industry conduct internal and external surveys in various ways and design suitable recruitment
strategies        by        the        principle        of        maximising        cost        value.        We        are        committed        to        boosting        talent        acquisition        and        retention        with
excellent        corporate        culture        and        positive        humanistic        care        providing        adequate        human        resource        support        for        the        Group’s
future development. This year the Group introduced a total of 3999 new employees.Case
Progress of the post-doctoral station planning at Joincare
In 2023 Joincare was approved to establish
the Shenzhen Post-doctoral Innovat ion
Practice Base which aims to strengthen
R&D teams and their capabilities promote
the transformation of scientific research
achievements and provide strong support for
the        development        of        high-end        scientific        research
talents. By adopting a tutorial system and
setting up an incentive system for post-doctoral
researchers the Base deepens the integration
of product ion educat ion and research
and implements the Group’s technological Post-doctoral Innovation Practice Base
innovation-driven strategy to further elevate
the Group’s core competitiveness.University-Enterprise Cooperation
Joincare has been investing effort for many years in the integration of production education and research with key
domestic universities colleges and vocational schools signing traineeship agreements with undergraduate and junior
college students in the pharmaceutical field providing customised traineeship platforms and offering employment
opportunities for outstanding interns. This year we have partnered and signed traineeship agreements with educational
institutions including China Pharmaceutical University Shenzhen University Hunan Traditional Chinese Medical
College Qiannan Medical College for Nationalities Guangxi Vocational University of Agriculture. We carried out
traineeship programme through apprenticeship alternating work and study etc. and provided our interns with satisfactory
salary        and        benefits        meal        subsidies        accommodation        medical        examination        and        more.        For        fresh        graduates        who        excelled        in
the        production-education        integration        or        traineeship        period        we        offer        them        the        priority        to        become        permanent        employees        at
Joincare. This year we newly introduced 150 interns 20 of which had been hired as permanent employees.New employees New interns
3999 people 150 people
83Joincare Pharmaceutical Group Industry Co. Ltd.
Case
Joint graduate training programme of Joincare and East China University of Science
and Technology
Joincare and East China University of Science and Technology (ECUST) launched a joint graduate
training programme. Under the programme experts from ECUST provide the graduates with
comprehensive guidance and training on research project selection dissertation proposal writing
research structure design test programme design data analysis report writing and the like. We
provide the graduates with free accommodation transport subsidies for their family visits in the
summer and winter and many other benefits. This frees them from money worries so they can
concentrate on studies and work. We continue to cooperate with institutions of higher learning
in training and reserving strategic technological talents which provides a strong support for
technological innovation and solving key and core technological issues.Talent Retention
To reduce employee turnover and maintain workforce stability we provide employees with diversified career
development opportunities including training promotion job transfer etc. in a comfortable safe and healthy working
environment. We strive to balance work and life organise stress-relief activities and provide psychological consultation
creating an upbeat and healthy atmosphere at Joincare. We also continue our efforts in optimising employee benefits
and welfare to retain excellent talents by establishing a long-term incentive mechanism. We carry out regular talks
with employees to listen to their voices such as their turnover intention. Through one-to-one interviews with outgoing
employees we know their reasons for leaving which helps us to improve our talent retention plans. Furthermore we
conduct a statistic analysis on data of employee turnover rate and formulate specific improvement measures. This year
the Group’s turnover rate was 12% (2022: 12%)2.Over        the        past        three        years        no        major        lay-offs        or        any        mergers        or        acquisitions        affecting        employees        occurred        in        Joincare.The Group’s turnover rate
12%
2* In order to better demonstrate the Group’s human resource management and ensure the consistency of the calculation of internal
management and external disclosure the calculation of the turnover rate in 2023 directly adopted the methodology used by the Group’s
human        resources        management        i.e.        the        number        of        employee        resigned        was        equal        to        the        number        of        permanent        employees        who        voluntarily
resign. Due to the different calculation method of the overall employee turnover rate in 2021 and 2022 we made retrospective
adjustments to the 2021 and 2022 turnover rate in the current year so that the employee turnover rate from 2021 to 2023 would be
calculated on the same basis to ensure that the data are continuous and comparable.
84Corporate Social Responsibility Report 2023
7.2.2 Training and Development
Joincare attaches great importance to internal talent development. The Group continuously builds a comprehensive and
diversified        training        system        and        constantly        improves        training        resources        by        using        online        and        offline        learning        channels        and
designing        training        content        tailored        for        different        levels        and        positions.        We        conduct        regular        surveys        and        analysis        on        training
demand        and        speed        up        the        course        update        frequency.        This        ensures        that        course        content        is        synchronised        with        our        business
changes and technology updates and meet the needs of employees’ skill development. With the help of an online learning
platform our employees are able to learn anytime and anywhere.By the end of the reporting period we had provided 975834 hours of training to all employees with 67.9 hours of
training per employee.On-boarding Training
We attach great importance to new employee training and custom-design a 6-month “follow-up plan” for fresh graduates
and new employees establishing a training framework for fresh graduates covering three-stage career development:
On-boarding Growth and Success. Each new employee is assigned a mentor and using centralised training courses
practical exercises summary sharing and more we convey the corporate culture rules and regulations professional
skills        etc.        to        the        new        employees        helping        them        quickly        adapt        to        the        working        environment        and        familiarise        themselves
with the job content and working process. During the plan we track and evaluate the training and work performance
of new employees each month timely understand the feedback from departments and employees and grant incentives
such as early access to becoming regular employees and pay rise to outstanding employees. We also continue to follow
employees’ development after the probationary period and provide them with career planning suggestions clarifying their
career goals.Meanwhile we cooperate with higher education institutions such as Hunan Traditional Chinese Medical College and
Xinxiang University to deliver joint training programmes for employees. Both parties will provide a joint instructor team
share teaching resources and co-implement academic assessment and evaluation providing students with traineeship
positions        and        carrying        out        theoretical        and        practical        training        on        drug        production        quality        control        sterile        operation        safe
production machine operation etc.Case
“Dream & Future” Campus Recruitment Training Camp
To        help        fresh        graduates        quickly        understand        Joincare’s        culture        policies        and        development        paths        and
help them take the first step toward society we design specific training programmes for them. In July
2023        Joincare        launched        the        five-day        “Dream        &        Future”        training        program        for        campus        recruitment.        The
training was held by the Group’s HR Department together with Guangzhou Joincare Haibin Pharma
and Taitai Pharmaceutical. It aims to facilitate fresh graduates’ shift from campus to workplace help
them get familiar with the corporate culture and core values and increase their sense of belonging
through activities including massages from executives team building intensive course training and
outdoor exercises. In 2023 we organised the training programme engaging a total of 37 fresh graduates
with 1480 training hours.“Dream & Future” Fresh Graduates Training
85Joincare Pharmaceutical Group Industry Co. Ltd.
Job-specific        Development        Training
We seek a variety of external training resources and tailor job-specific development training programmes for our
employees according to the characteristics and business needs of different positions. For special operations positions
we        organise        learning        of        relevant        regulations        safe        operation        procedures        and        technical        requirements        and        carry        our
qualification        training        ensuring        that        employees        have        the        required        certificates.        For        R&D        positions        we        offer        enhancement
training courses on project management experimental skills literature sourcing innovative thinking and other abilities.For        production        positions        we        carry        out        practical        training        on        safe        production        equipment        operation        environmental
awareness        quality        awareness        and        other        knowledge.        For        sales        positions        we        provide        enhancement        courses        on        product
knowledge        marketing        compliance        sales        skills        enhancement        and        other        abilities.        For        quality        management        positions        we
conduct        practical        training        on        quality        knowledge        quality        awareness        regulations        and        policies        operational        skills        and        more.Case
Development        training        for        production        and        quality        positions
We        put        a        high        value        on        the        development        of        skilled        talents.        For        production        quality        and        other        positionswe implement an apprenticeship system. Following the principle of selecting mentors of “excellentability similar position and interconnected work” we sure perfect master-apprentice match and
effective        instruction.        The        mentors        are        responsible        for        guiding        the        apprentices        in        product        quality
assurance        (QA)        quality        control        (QC)        front-line        production        operation        and        other        positions        to        acquire
the        skills        and        abilities        required        for        their        respective        jobs.        The        Human        Resources        Department        organises
mentorship discussion sessions to learn the teaching and learning performance between all mentors and
apprentices.Promotion and Job Transfer Mechanisms
We value the career planning of our employees and are committed to providing them with fair career opportunities.We have established a dual-promotion mechanism (“Professional” and “Management”) to help employees choose the
appropriate career path according to their own interests and capabilities. In terms of promotion we adopt the combined
“progressive promotion” and “exceptional promotion” approach for employees with outstanding performance or special
expertise. This approach stimulates the enthusiasm and creativity of our employees and provide a strong talent reserve for
the Group’s long-term development.We        fully        appreciate        the        value        created        by        employees        in        different        positions        and        encourage        continuous        self-improvement        via
learning.        We        provide        equal        career        opportunities        for        our        employees.        To        encourage        employees’        career        diversification        we
regularly publish internal recruitment information. Employees can participate in internal recruitment based on their own
career        development        plans        and        professional        skills.        Employees        who        meet        the        job        requirements        and        pass        the        interview        can
continue to contribute to the Group after the formal job transfer. At the same time we provide relevant training resources
for our employees to help them adapt well to their new positions. Furthermore employees or departments in need may
also initiate internal applications of job transfer if necessary.
86Corporate Social Responsibility Report 2023
Succession Planning and Leadership Development
We continue to implement succession plans for talents comprehensively evaluate the performance potential and
career aspirations of key position employees and accurately identify potential successors based on the evaluation
results. To help successors improve their capabilities for the job we carefully design individual development plans and
organise management training sessions and other relevant programmes. At the same time we regularly monitor the
implementation of succession plans for talents and make adjustments to the personal development of potential successors
according to the actual needs securing the best career opportunities for potential successors. This year we continued to
implement the talent succession plans provide promotion and salary increase opportunities for employees who excelled
in professional skills comprehensive capabilities and other aspects relentlessly consolidating our talent cultivation.To        improve        the        management        ability        and        comprehensive        quality        of        the        management        we        regularly        carry        out        managerial
development training with internal and external lecturers covering leadership development team building
communication skills decision making and other aspects. During the training sessions the management learned from
actual cases of the Group or other enterprises understood all kinds of problems and challenges in practice and explored
solutions thereby improving their management and leadership abilities.Case
Management training programme of Taitai Pharmaceutical
In 2023 Taitai Pharmaceutical a subsidiary
of Joincare organised 50 training sessions of
managerial        development        and        quality        assurance        for        its
management. The company combines learning and
training with work practice industry development
trends and personal growth through case sharing
group discussions interactive communication and
other training methods to improve the pertinence
and effectiveness of training. At the same time it
further enhances the theoretical literacy business and
management skills of the management in industry
development and enhances team collaboration and
communication skills.Management training of Taitai Pharmaceutical
Support        for        Degree        Programmes        and        Certifications
We encourage continuing education and support all employees (including part-time and contractors) to obtain academic
degree        or        professional        certifications        and        participate        in        skill        training        and        industry        forum        meetings.        Through        projects        such
as career-based study for a master’s or doctor’s degree we help employees upgrade their educational backgrounds. We
also        assist        our        employees        in        application        for        specific        qualifications        or        national        professional        title        certificates        related        to        their
positions and implement internal measures such as tuition reimbursement exam leave and study leave. We offer full
support        for        employees        who        participate        in        external        training        and        obtain        professional        certifications        related        to        their        positions.Moreover        we        actively        assist        employees        in        applying        for        local        qualifications        for        high-level        talents        craftsmen        industrial
innovation and development talents and innovation teams based on local talent policies.
87Joincare Pharmaceutical Group Industry Co. Ltd.
Case
Support        for        degree        programmes        and        certifications        at        Livzon        Group
Joincare’s holding subsidiary Livzon Group formulated and issued the Administrative Regulations
on Employee Learning and Growth providing all employees with 3 major categories (degree
professional        title        and        vocational        qualification)                of        academic        degree        and        certification        improvement
programmes as well as training materials for each business segment to support employees in
application for programmes that fit their own needs of self-improvement. At the same time Livzon
Group seeks external cooperation with higher education institutions and encourages employees to
improve        their        academic        degrees        and        certifications        through        self-study        exams        correspondence        courses
full-time or part-time training distance education and on-the-job postgraduate studies. The degrees
and certifications obtained by employees are taken into consideration for their promotion and pay
rise mobilising their enthusiasm for participation. In 2023 a total of 41 employees of Livzon Group
attained        higher        education        qualifications        and        1350        employees        obtained        skills        or        professional        title
certificates.The        support        programme        for        skill        certificates        at        Jiaozuo        Joincare
In        2023        Jiaozuo        Joincare        was        successfully        qualified        to        independently        carry        out        professional        skill
certification. The company organised professional skill certification exams for technicians as per
national standards based on their production needs and the characteristics of technical positions. A
total        of        162        qualified        employees        (including        electricians        instrument        technicians        fitters        etc.)        were
granted senior intermediate and elementary certificates which fuelled high-skilled talent reserve of
the company and reinforced the foundation of talent development.
7.2.3                Compensation        and        Employee        Benefits
Joincare has developed and followed internal policies such as the Salary Management System and the Performance
Management System in strict accordance with laws and regulations. In doing so Joincare aims to build a fair and
competitive        welfare        system        by        adopting        an        effective        salary        strategy        that        affects        motivation.        The        Group        upholds        the        salarymanagement        philosophy        of        “ensuring        the        consistency        between        responsibility        and        benefit        the        consistency        between        abilityand value and the consistency between performance and earnings”. We have established a compensation mechanism
that is consisted of fixed and variable components for all employees (including non-officer and non-sales employees).The variable compensation is subject to both the Group’s performance and employees’ performance. We believe this
mechanism can make employees highly motivated.Performance Appraisals and Feedback Process
Advocating fairness justice and transparency in performance management we have established a clear performance
evaluation and feedback mechanism. We continue to implement a dual-track management system of OKR (Objectives
and Key Results) and KPI (Key Performance Indicators) and use or draw on various evaluation methods such as
management by objectives 360 degree feedback team-based performance appraisal agile conversations etc. We carry
out performance evaluations twice a year for all employees to assess the overall performance of employees at all levels
88Corporate Social Responsibility Report 2023
comprehensively and objectively. Performance appraisals includes department-based and employee-based evaluations.The former focuses on major tasks lean management team building etc. while the latter focuses on individual
performance code of conduct work improvements etc. A weight is also given to the feedback and guidance that the
management provide to employees. After the performance evaluation department supervisors will listen to employees’
voices in performance talks suggest on improvements and jointly formulate next-round performance goals and
improvement plans.To further improve the overall management of the Group optimise team performance management and promote
sustainable development we have integrated sustainability indicators into employee performance evaluation which
represent compliance of employee code of conduct employee compliance occupational health and safety environmental
protection labour risk management etc. These are also linked to employee salary.Long-term Incentive Mechanisms
To further improve the Group’s long-term incentive mechanisms and fully motivate core employees Joincare has
formulated various long-term incentive plans for directors senior management middle management and core technicians.The interests of shareholders the Group and core team members are thus united helping motivate the initiative and
creativity of core employees and build a working environment with shared responsibilities and values. Since the end of
2014 we have successively launched the 2015 restricted share incentive scheme and 2018 share options incentive scheme
to improve the long-term incentive mechanisms for employees. Up to now the 2015 restricted share incentive scheme
was completed in 2019 and the 2018 share options incentive scheme was completed in 2022.The progress of our two existing Employee Share Ownership Plan/Share Options Incentive Scheme in 2023 is shown as
follows:
* We developed the Medium to Long-term Business Partner Share Ownership Scheme (Draft) at the end of 2019.The plan benefits senior management and core personnel engaged in R&D production sales and management with
outstanding performance during assessment or significant impacts on the future performance. The validity period of
the plan is from 2019 to 2028. The First Second and Third Phase Ownership Schemes were approved on the General
Meeting in June 2021 May 2022 and October 2023 respectively.* The Third Phase of Ownership Schemes accumulated 9370400 shares of the Company's stock on December 20 2023
with a total transaction amount of RMB 115.44 million. A total of 74 persons participated in this shareholding plan
include 7 directors (excluding independent directors) supervisors and senior management and 67 other employees.* In September 2022 the Board of Directors deliberated and approved the 2022 Share Options Incentive Scheme
(Draft) proposed to grant 55.00 million stock options to the incentive recipients of which 49.50 million stock options
or        90.00%        of        the        total        number        of        stock        options        to        be        granted        under        the        Plan        are        to        be        granted        for        the        first        time        and        5.50
million stock options or 10.00% of the total number of stock options to be granted under the Plan are to be granted as
a set-aside. The beneficiaries of the Incentive Scheme include directors senior management middle management core
technicians and those recognised by the Board of Directors as deserving incentives with meet performance evaluation
goals as the vesting condition.* On September 5 2022 the Board of Directors deliberated and approved the 2022 Share Options Incentive Scheme
(Draft) granting 49.45 million stock options to 423 incentive recipients with September 5 2022 as the first grant date.
On August 11 2023 the Board of Directors of convened a meeting to consider and approve the Proposal for Granting
Reserved Stock Options determining August 11 2023 as the reserved grant date for granting 5.5 million stock options
to 149 incentive recipients. The beneficiaries of the Incentive Scheme include directors senior management middle
management core technicians and those recognised by the Board of Directors as deserving incentives with meet
performance evaluation goals as the vesting condition.
89Joincare Pharmaceutical Group Industry Co. Ltd.
In addition Joincare’s holding subsidiary Livzon Group also implemented the following Employee Share Ownership
Plan/Share Options Incentive Scheme :
* In November 2023 Livzon Group approved the Third Phase of Ownership Schemes of the Medium and Long-
term Business Partner Shareholding Plan through the shareholders' meeting. A total of 84 persons participated in this
shareholding plan including 8 directors (excluding independent directors) supervisors and senior management and 76
other employees.* In October 2022 Livzon Group approved the 2022 Share Options Incentive Scheme by the general meeting. The
Scheme granted incentives to 1026 employees in the first vesting period including 8 directors (excluding independent
directors) and senior management and 1018 other employees. The first vesting period was completed in November
2022.
* In October 2023 the Board of Directors of Livzon Group considered and approved the Proposal on Matters Related to
the Proposed Reserved Grants under the 2022 Stock Option Incentive Plan which determined the reserved grant date to
be October 30 2023 and granted 2000000 stock options to 243 incentive recipients.Employee        Benefits        System
Joincare is committed to optimising the employee benefits system applicable to all employees to improve employee
welfare. We provide our employees with statutory holidays and contribute to pension medical unemployment work-
related injury maternity and housing provident funds.In addition to the statutory benefits we build an employee benefits system consisting of three pillars: health support
family        and        personal        support        and        work-life        balance        providing        broad        range        of        material        non-pay        benefits        for        all        employees
(including full-time part-time and contractors): we provide dormitories for our employees and assist them in applying
for government-run talent apartments or housing subsidies for talents to ease their housing pressure; we set up an
internal        gym        free        to        all        employees        and        regularly        invite        fitness        instructors        for        professional        guidance;        we        organise        regular
events such as year-end parties celebrating traditional festivals and team building to create a harmonious and healthy
workplace; we carry out cultural activities after work with a focus on employees’ hobbies and interests to grow team
spirit and balance employees’ work and life; and we support employee physical health by regularly launching activities
such as occupational health check-ups AED first-aid training oral health lectures stress and emotion management
courses.        All        these        efforts        contribute        to        greater        feelings        of        happiness        and        belonging.Table:        Joincare        Employee        Benefits        System
Health support Family and personal support Work-life balance
·* Annual health check- ·* Employee canteen ·Gym
ups for employees ·* Dormitories
* ·* Occupational health ·* Government-run talent apartments
·Break rooms
check-ups ·* Housing subsidies for talents ·Team building
* ·* Health check-ups for ·* Living allowance for talents introduced
females ·* Support for advanced studies under master's and doctoral ·Annual parties
programs
* ·* Psychological
counselling ·* Commuter allowance
·Associations
·* Gifts for traditional holidays
* ·* Accident insurance ·Library·* Cash gifts for birthday wedding and maternity
* ·* Extra pay for hot ·* Funeral and retirement solatia
weather
90Corporate Social Responsibility Report 2023
Employee Birthday Party Free Gym Access
Heartwarming Women’s Day Stress and Emotion Management Courses
On-site Traditional Chinese Medicine Services First Aid Training for Employees
91Joincare Pharmaceutical Group Industry Co. Ltd.
7.3 Occupational Health and Safety
Joincare upholds the safety management policy of “Safety First Prevention First Integrated Management” and advocates
the “Putting People First” safety concept. We strictly abide by the laws and regulations regarding occupational health
and safety such as the Law of the PRC on Work Safety and the Law of the PRC on the Prevention and Treatment
of Occupational Diseases. We have established the EHS Management Policy to clarify the Group’s standards for all
employees in terms of health and safety and encourage compliance among business partners (including customers
suppliers        contractors        etc.)        with        Joincare.        We        refine        and        optimise        the        Policy        through        consultation        with        employees        or        their
representatives thereby continuously enhancing the Group’s performance in occupational health and safety management.Furthermore        in        accordance        with        the        requirements        of        the        ISO        45001        Occupational        Health        and        Safety        Management
System we have revised or formulated 36 management policies including the Environmental and Occupational Health
Manual the Occupational Hazard Prevention and Control Accountability Policy and the Risk Assessment and Safety
Management Policy. These policies help us identify analyse and control potential risks in daily operational management
ensuring the health and safety of our employees. In 2023 the Group’s safety management focused on fire safety
occupational        health        and        lean        management        with        goals        defined        accordingly.Joincare’s Occupational Health and Safety Goals in 2023
·Fire safety: No work safety accidents
·Occupational health: No new cases of occupational diseases
·Lean management objectives: We continue the construction of the EHS system complete internal and external
audits and management reviews within this year. We improve the emergency system and conduct planned
emergency        drills.        We        also        add        safety        sessions        in        our        on-boarding        training        for        all        new        employees        and        offer        special
safety        training        for        specific        employees.The EHS Management Committee as the highest decision-making body of EHS management consists of Board
of directors and executive management production leaders and EHS leaders and is responsible for formulating the
overall EHS development strategy and policies on occupational health and safety. General Managers of Joincare and
its subsidiaries are the first persons responsible for supervising and promoting EHS management to provide a safe and
healthy working environment. Presented below is how the Group prioritised and integrated occupational health and safety
action plans in 2023:
Overview of the Group’s Occupational Health and Safety Action Plans Prioritisation and Integration in 2023
·We establish annual safe production goals and work plans.·We increase safety investments especially in automated facilities to reinforce our safety foundation.·We implement a safe production responsibility system for all employees.·We improve the emergency system and conduct emergency drills.·We provide more safety educational training to raise employees’ awareness of safe production.·We        continue        to        build        the        EHS        management        system        and        refine        our        management        regulations        to        ensure        production
compliance in programmes.·We strengthen risk management push forward the standardisation of safe production and integrate the dual-
prevention systems.·We standardise the management of special operations and strictly control operation approvals.·We enhance safety management of contractors with all contractors signing safety management agreements to
improve        the        management        quality        of        external        construction        crews.
92Corporate Social Responsibility Report 2023
Joincare        headquarter        carries        out        EHS        internal        audit        management        review        and        external        audit        once        a        year        and        the        Group’s
production subsidiaries also conduct internal and external audits in accordance with their respective plans to verify
whether        EHS        management        complies        with        ISO        45001        so        as        to        improve        the        effectiveness        of        the        EHS        management        system
and ensure the compliant and effective management for modules such as safety environmental protection occupational
health        fire        protection        etc.        in        daily        operation.Joincare’s EHS Internal Audit
Document review On-site audits New reconstruction and expansion projects review
We review EHS-related We check potential hazards We propose suggestions
documents and ledgers and in production sites and for new reconstruction
EHS Internal supervise the performance verify whether on-site safety and expansion projects
Audit of EHS targets. controls are effective and safe from the perspective of
protective articles are in place EHS to improve safety
to reduce potential accidents. management throughout
each project.Joincare continuously increases investments in occupational health and safety. We upgrade work safety technology and
equipment        and        carry        out        safety        training        safety        emergency        drills        and        other        activities.        This        year        we        invested        about        RMB
44646 thousand in occupational health and safety with the expense breakdown as follows:
Table: Breakdown of occupational health and safety expenses
(1) Work safety expenses RMB33034 thousand
In which: Expenses of safety training and education RMB1808 thousand
Expenses of safety emergency drills RMB1051 thousand
(2) Occupational health expenses RMB11612 thousand
7.3.1 Occupational Health
Joincare continues to improve and strictly follow management policies such as the Occupational Health Management
System and Operating Procedures the Monitoring and Evaluation System for Occupational Hazard Factors in the
Workplace and the Regulation on the Management of Hazard Identification and Evaluation to identify analyse and
control the occupational hazards that may arise or exist in the work process. To further advance the construction of the
occupational        health        and        safety        management        system        Joincare        works        actively        to        obtain        external        certifications.        By        the        end
of the Reporting Period Joincare and all its production subsidiaries had obtained the GB/T45001-2020/ISO 45001:2018
Occupational        Health        and        Safety        Management        System        certification        with        a        coverage        rate        of        100%.In 2023 Joincare continued to invest in occupational health protection for employees. We built special funds to optimize
working environment monitor occupational health and procure labour protection articles and regularly maintained
overhauled and upgraded protective facilities. This year no new or suspected occupational contraindications or
occupational cases occurred at Joincare.
93Joincare Pharmaceutical Group Industry Co. Ltd.
Joincare’s Safeguards for Occupational Health and Safety
●* Healthier        and        more        harmless        processes        equipment        materials        etc.        are        preferred        to
Occupational minimise the impact of hazards on employees.hazards ●We        engage        qualified        service        providers        to        carry        out        regular        testing        for        potential
check-ups occupational health hazard factors; conduct occupational disease hazard evaluation in
accordance with the Regulations on the Management of Occupational Health in the
Workplace.We arrange regular occupational health examinations for employees in positions
exposed to occupational disease hazards:
●* Pre-job examination: We organise pre-job occupational health examination for
Occupational employees who are about to engage in operations exposed to occupational hazards and
health operations        with        special        health        requirements.monitoring ●* On-job examination: We organise regular on-job occupational health examination for
employees who are exposed to occupational hazards.●* After-job        examination:        Employees        are        required        to        undergo        health        examination        before
they change posts or leave current posts that are exposed to occupational hazards.Safeguarding ●* We        equip        employees        exposed        to        occupational        hazards        with        labour        protection        articles
occupational and        first        aid        supplies.health of ●* We set up warning signs in places where occupational disease hazards may be
special posts involved.●* We maintain overhaul and upgrade protective facilities against occupational diseases.Case
Weeklong publicity on the Law of the PRC on the Prevention and Treatment of
Occupational Diseases at Xinxiang Haibin
In April 2023 Xinxiang Haibin conducted weeklong
publicity on the Law of the PRC on the Prevention
and Treatment of Occupational Diseases with thetheme of “Improving the working environment andconditions protecting the physical and mental healthof workers”. The company developed a publicity
plan        for        this        including        a        quiz        bank        and        an        online
examination system. 91% of employees completed
the online exam which effectively enhanced their
knowledge and awareness of occupational disease
prevention and treatment and the Law. Brochure for Publicity of the Law of the PRC on
Prevention and Control of Occupational Diseases
94Corporate Social Responsibility Report 2023
Case
Occupational health management enhanced at Jiaozuo Joincare
To improve employees’ capabilities in emergency
response to occupational disease accidents Jiaozuo
Joincare has established and optimised the operational
procedures for positions with occupational hazards
improved occupational health records and issued an
Occupational Disease Emergency Response Plan with
regular drills. Additionally to mitigate the occurrence
of occupational hazards Jiaozuo Joincare has
implemented a series of engineering control measures
against occupational disease hazards such as dust
toxic chemicals and noise to safeguard the health of
employees. In April 2023 the company carried out an
evaluation and testing and published the results on the
status of occupational disease hazards covering a total
of 161 testing points. In May the company organised
occupational health examinations and established
monitoring records with 422 employees taking the
examination achieving a 100% participation rate. No Occupational Health Check-ups
occupational diseases or contraindications were found.
7.3.2 Work Safety
Insisting on the work safety guidelines directing “safety awareness legal compliance and continuous improvement”
Joincare has formulated management policies such as the Safety Management System Operation Control Management
and the Operation Assessment System for Dual Prevention Systems to improve work safety management. Meanwhile
we conduct risk identification and assessment analyse and review the feasibility of existing risk control measures and
organise risk notification training sessions. We also have established a risk control mechanism to curb risks at the level
of the Group workshops and positions respectively and define the safety responsibilities of employees at all levels.This year we improved the Change Management System to ensure that the hazards arising from changes in production
processes and facilities were under control.Level 1 Major Changes Level 2 Process Changes Level 3 Workshop Changes
Changed by external experts Changed by external experts Workshops or departments are
upon an evaluation of assessed by EHS Change Team
subsidiaries’ EHS Team
95Joincare Pharmaceutical Group Industry Co. Ltd.
At Joincare we carry out regular internal audits on safety systems deliver safety training to employees and relentlessly
improve work safety infrastructure to ensure a safe workplace. For new hires or those returning to work or transferred to
a        new        post        we        engage        them        in        pre-job        training        based        on        the        job        requirements.        In        addition        we        require        special        operation
personnel        to        participate        in        qualification        training        including        training        sessions        for        managers        safety        management        and        special
equipment        operation        and        acquire        relevant        certificates        before        work.This year no safety accidents occurred in the Group achieving the goal of “zero safety accidents”.Safety Inspection
This year Joincare and its subsidiaries carried out 1735 safety inspections including routine safety inspection monthly
and        quarterly        safety        inspections        special        inspections        for        hazardous        chemicals        inspection        by        external        experts        canteen
safety        inspections        and        other        internal        inspections.        To        ensure        safety        production        we        spared        more        efforts        in        safety        inspection
including        inspection        for        lightning        protection        safety        inspection        for        electric        fire        facilities        special        equipment        inspection        fire
alarm        system        maintenance        and        other        safety        rectifications.Case
Safety        inspection        at        Taitai        Pharmaceutical        in        the        second        quarter
In June 2023 Taitai Pharmaceutical conducted
a comprehensive safety inspection in the second
qua r t e r.         The          i n spec t i on         was          l ed         by          s en io r
management with department heads and front-line
employees examining all critical hazard sources
confined        space        risk        points        special        equipment        and
fire safety issues throughout the factory. A summary
meeting was held to define safety management
objectives which effectively strengthened the
company’s        safety        management        efforts.Safety Inspection for the Second Quarter
96Corporate Social Responsibility Report 2023
Emergency Plans and Drills
Joincare and its subsidiaries have established emergency response plans for internal safety incidents and contractor
safety incidents covering overall emergency specialised emergency and on-site handling scenarios. All plans have been
reviewed and published. In 2023 the Group and its subsidiaries conducted 159 emergency drills further refining and
supplementing the emergency response plans based on the drill results.Case
Annual integrated emergency drill at Xinxiang Haibin
To enhance emergency response capabilities and
team development Xinxiang Haibin conducted
its annual emergency drill in June 2023. The drill
engaged over 100 employees with an emergency
drill evaluation team incorporated during the
event. Composed of mid-level management and
safety engineers the team assessed the handling
process and summarised experiences to improve the
emergency response system.Annual Integrated Emergency Drill
Emergency drill against hazardous chemical leakage in solvent storage area at Haibin Pharma
On 30 June 2023 Haibin Pharma conducted an
integrated emergency drill against hazardous
chemical (organic solvent) leakage and fire hazard
in the newly constructed solvent storage area.The drill simulated a scenario in which a freight
truck’s unauthorised unloading operation resulted
in a solvent barrel falling leaking and eventually
catching fire. The drill concluded successfully
covering fire alarms on-site handling company-
level        response        use        of        fire-fighting        equipment        leak         Emergency Response Drill against
containment and accident wastewater collection Hazardous Chemical Leakage
effectively testing the capabilities of emergency
response team of the company.
97Joincare Pharmaceutical Group Industry Co. Ltd.
Safety Culture Cultivation
Joincare has formulated an annual training plan in line with national laws and regulations. This year’s EHS training
covered various topics including safety orientation for new employees specialised operation safe production
responsibility system accident case study safety management - team safety occupational health and safety dual-
prevention system laws and regulations on safe production fire safety and emergency drills. This year our EHS
trainings lasted for a total of 220734.6 hours with approximately 16.9 hours per employee successfully achieving the
goal        of        “Safety        orientation        for        all        new        employees        and        specialised        safety        training        for        specific        employees.”
In 2023 the Group and its subsidiaries launched “Safety Month” campaigns. By participating in various activities such as
themed publicity and education warning education on production accidents safety training emergency drills and safety
inspection our employees became more aware of safety at work. They got motivated to create a safety culture with joint
efforts.Case
Joincare Haibin’s safety orientation for new employees
On 7 December 2023 Joincare Haibin organised a three-
level safety orientation training for new employees at
the factory. The training covered laws and regulations
on safe production basic principles of safe production
classification and causes of accidents safety instructions
for employees fire safety knowledge emergency
handling measures and job-specific standard operation
procedures. The training was conducted at three levels:
the        company        workshops        and        shifts        aiming        to        effectively
enhance the safety awareness of new employees prevent Safety Orientation Training for New Employees
and avoid hazardous accidents and secure the well-being
and safety of employees.Training on safety management in chemical process at Xinxiang Haibin
To ensure the stable and safe production and improve
the company’s safety management Xinxiang Haibin
organised a themed training on the Guidelines for
Chemical Process Safety Management (AQ/T3034-
2022) for all mid-level management and safety
management reinforcing the leading role of the
management in safety capability building.Training on Safety Management in Chemical Process
98Corporate Social Responsibility Report 2023
08
Operating with Green
Sustainability
SDGs in this section
Joincare upholds the sustainability principle and implements the concept of green and low-carbon development in every step of
its operation management. We are strongly committed to adhering to environmental laws and regulations. We are striving to use
more clean energy promote low-carbon operations conserve resources reduce waste discharges and comprehensively improveour environmental management capabilities. With these initiatives we aim to better contribute to the national goals of “carbonpeaking” and “carbon neutrality” and fostering a harmonious coexistence with nature.
99Joincare Pharmaceutical Group Industry Co. Ltd.
8.1 Environmental Management System
Joincare strictly abides by laws and regulations regarding environmental protection including the Environmental
Protection Law of the PRC Energy Conservation Law of the PRC and Administrative Measures for Hazardous Waste.Active efforts are made to optimise the internal environmental management system. We have developed the EHS
Management        Policy        to        regulate        the        management        requirements        in        key        areas        such        as        the        three        types        of        wastes        (wastewater
waste gas and solid waste) energy chemicals and water resources for the Group and its subsidiaries. With this policy
in place we aim to improve our environmental management practices. We have also introduced and kept improving
the        Safety        and        Environmental        Management        Manual        General        Requirements        for        the        EHS        Management        System        and
Requirements        for        Identification        and        Assessment        of        Environmental        Factors.        These        are        part        of        our        efforts        to        improve        our
capability of managing environmental issues and take on our environmental responsibility pragmatically.In terms of environmental pollution prevention and control we have developed and implemented the “threesimultaneous”        policy        requiring        each        production        subsidiary        to        ensure        the        pollution        prevention        and        control        facilities        should
be designed constructed and put into use simultaneously with the project’s main work. Meanwhile we regularly maintain
pollution        abatement        equipment        and        invest        increasingly        more        in        equipment        and        facilities        upgrading        and        transformation        of
production        processes        and        technologies        to        ensure        their        normal        stable        and        efficient        operation.In 2023 no major environmental pollution accidents and no administrative punishments occurred at any production
subsidiaries of Joincare.Table: Expenditures of Joincare in environmental protection in 2023
Category Amount (RMB 10000)
Technical        upgradation        of        environmental        protection        equipment 1565.45
Environmental protection operation and maintenance 8764.56
8.1.1 Policies and TargetsJoincare adheres to the environmental management policy focused on “pollution prevention legal compliance andcontinuous improvement”. Based on the environmental management status and performance the Group has set five-
year targets of energy saving and emission reduction with 2020 as the baseline year and keeps monitoring the progress
for        the        targets.        All        production        subsidiaries        are        required        to        refine        their        management        of        energy        and        natural        resources        and
propel energy conservation and emission reduction at every link of production and operation to achieve environmental
management targets together with the Group.Table: Energy conservation and emission reduction targets of Joincare
Item Indicator Final Target by 2025
Water Water consumption per unit production (RMB 10000) Down 5% from 2020
Electricity Electricity consumption per unit production (RMB 10000) Down 5% from 2020
Chemical oxygen
Emission per unit production (RMB 10000) Down 5% from 2020
demand
Sulfur dioxide Emission per unit production (RMB 10000) Down 10% from 2020
Disposal volume of
Disposal volume per unit production (RMB 10000) Down 2% from 2020
hazardous waste
100Corporate Social Responsibility Report 2023
To constantly enhance the environmental management level and performance the Group sets annual targets for
environmental        compliance        in        operation        and        urges        production        subsidiaries        to        meet        the        required        standard        in        terms        of
compliance with the standards three dimensions for wastewater and gas emissions the occurrence of major pollution
accidents and annual environmental penalties.Table: Targets of environmental compliance in the operation of Joincare in 2023
Indicator Annual Targets Achievements
Compliant wastewater/gas emissions 100% Achieved
Number of major pollution accidents 0 Achieved
Number of environmental penalties in the year 0 Achieved
8.1.2 Management Structure
To enhance the EHS management level Joincare continuously improves the EHS management structure to define
responsibilities and ensure their performance according to the EHS Management Policy. As the highest responsible
body the CSR Committee of the Board of Directors is responsible for formulating EHS-related strategies and policies
such as those on environmental management and resource utilisation regularly reviewing the Group’s performance in
environmental management performance and reporting EHS issues to the Board of Directors.EHS Management Structure
●* The CSR Committee of the Board of Directors is responsible CSR Committee of the Board
for formulating EHS-related strategies & policies and of Directors
reporting the relevant issues to the Board of Directors.●* The EHS Management Committee coordinates the overall
EHS Management Committee
EHS management of the Group
●* * * The EHS Department of the Group supervises and manages
the implementation of EHS work in each production          EHS Department of the Group
subsidiary
●* Each Functional Department of the Group is
responsible for its own EHS work Functional Departments Production subsidiaries
● Each production subsidiary of the Group is of the Group of the Group
responsible for its own EHS work and rep
101Joincare Pharmaceutical Group Industry Co. Ltd.
Production subsidiaries of the Group have also developed a standardised EHS management system. As the first
responsible person for EHS the general manager is in charge of the overall environmental protection work; as the directly
responsible        persons        supervisors        or        department        managers        are        in        charge        of        the        preparation        of        EHS        initiatives        filing        to        the
EHS Department of the Group and supervision of the implementation of specific initiatives; and the employees of the
subsidiaries cooperate with the Group’s EHS policy and their EHS responsible persons in EHS management.Joincare actively fulfils the responsibilities of carbon emission reduction management. The EHS Department is
responsible for setting carbon emission reduction targets for the Group and its subsidiaries reporting them to the CSR
Committee        of        the        Board        of        Directors        for        approval        and        following        up        on        the        quarterly        achievement        of        the        Group’s        carbon
emission        targets.        The        general        manager        of        each        subsidiary        as        the        first        person        in        charge        of        carbon        emission        is        responsible
for scheduling carbon emission targets based on the actual situation of the company working out effective carbon
emission reduction measures designating relevant responsible persons and reporting the target achievement to the EHS
Department        of        the        Group        on        a        quarterly        basis.        Meanwhile        the        management’s        remuneration        is        linked        with        the        Group’s
environmental performance to accelerate the realisation of energy conservation emission reduction and carbon emission
targets. ESG indicators have been added to the individual performance assessment of all Social Responsibility Working
Group members since 1 January 2022 with a weight of 10% in the total performance system. ESG indicators and their
weights are as follows:
Table: Weight of ESG indicators in the assessment of Corporate Social Responsibility Working Group
Total weight of ESG (1) Energy conservation and Carbon emission
(3) ESG rating objectives
indicators emission reduction targets targets
10%3%3%4%
8.1.3                Accreditation        Certificates
Joincare        continues        to        improve        the        environmental        management        system.        We        devote        down-to-earth        efforts        to        environmental
management proactively promote cleaner production and green factory certification. In 2023 Joincare and 100% of its
production subsidiaries were accredited to the ISO 14001 environmental management system. Among all production
subsidiaries of the Group 6 were accredited as the national green factory 2 as the provincial green factory and 8
production subsidiaries completed HAZOP analysis. Details are as follows:
Table: Accreditation of the environmental management system of Joincare in 2023
GB/T 24001/ISO 14001 Green Factory
Company Name Clean Production Review
Accreditation Accreditation
Jiaozuo Joincare Accredited Approved National
Joincare Haibin Accredited Approved National
Haibin Pharma Accredited Approved National
Taitai Pharmaceutical Accredited Approved /
Xinxiang Haibin Accredited Approved /
Livzon Xinbeijiang Accredited Approved National
Livzon Pharmaceutical
Accredited Approved National
Factory
Livzon Hecheng Accredited Approved National
102Corporate Social Responsibility Report 2023
GB/T 24001/ISO 14001 Green Factory
Company Name Clean Production Review
Accreditation Accreditation
Ningxia Pharmaceutical Accredited Approved Provincial
Gutian Fuxing Accredited Approved /
Fuzhou Fuxing Accredited Approved Provincial
Jiaozuo Livzon Accredited Approved /
Sichuan Guangda Accredited / /
Livzon Limin Accredited Approved /
Shanghai LivzonBio Accredited Approved /
Shanghai Livzon Accredited / /
Livzon Diagnostics Accredited Approved /
Livzon MAB Accredited / /
8.1.4 EHS Audit
Internal Audit
Joincare strictly implements internal audit procedures in accordance with the Group EHS Internal Audit Management
Procedure to make sure that its EHS management is effective. At the beginning of the year the EHS Department of the
Group works with the audit team on an annual internal audit plan based on vulnerabilities found in past internal audits
and corrective actions taken by subsidiaries. The EHS Department conducts EHS audits on all subsidiaries at least twice
a        year        and        makes        timely        summaries        and        prepares        internal        audit        reports        of        subsidiaries        after        the        audit.        Subsequently        the
EHS        Department        urges        the        rectification        of        unqualified        items        by        the        subsidiaries        compiles        a        group        audit        report        every        six
months        and        submits        them        to        the        management        for        review.        Corresponding        production        subsidiaries        shall        rectify        unqualified
items found in the internal audit under the guidance of the Management Regulations on Corrective and Preventive
Measures.        In        2023        the        Group        conducted        8        EHS        internal        audits        across        all        subsidiary        companies        .        All        unqualified        items
found        in        the        annual        EHS        internal        audit        were        rectified        with        a        coverage        rate        of        100%.Production        subsidiaries        of        the        Group        consciously        and        regularly        inspect        the        stability        of        pollutant        control        equipment        the
disposal        method        of        solid        waste        and        the        launch        of        emergency        drills        and        rectify        the        unqualified        items        in        a        timely        manner
to firmly ensure the compliance of EHS management and the effective operation of the Group’s EHS management
system.External Audit
Joincare        conducts        an        external        audit        of        EHS        annually        and        engages        qualified        third-party        certification        agencies        to        audit        and
supervise        production        subsidiaries        that        have        obtained        ISO        certification.        In        2023        we        rectified        all        the        unqualified        items
found and passed the external audit.
103Joincare Pharmaceutical Group Industry Co. Ltd.
8.2 Addressing Climate Change
Climate change is a grave challenge facing all mankind. The warming trend of the climate system has continued in
recent years. As extreme weather events rising sea levels and other climate problems become more severe there is an
urgent need to address climate change. In line with international trends Joincare is committed to reducing the impact of
climate        change        on        human        health        and        business        operations.        While        intensifying        efforts        to        manage        and        address        climate        risks
we are working hard to seize the green development opportunities brought by climate change to support the country’s
achievement of carbon peaking and carbon neutrality.Referring to the guidance in IFRS S2 Climate-related Disclosures we manage and disclose our climate-related
information along four dimensions: governance strategy risk management and metrics and targets. In 2023 we
responded        the        CDP        climate        change        questionnaire        for        the        first        time.        Moving        forward        we        will        continue        to        disclose        detailed
climate-related        information        by        responding        to        the        questionnaire.
8.2.1 Governance
The Group has established a climate governance structure based on the corporate social responsibility governance system
to manage climate change in a top-down manner. As the highest management body the CSR Committee of the Board of
Directors is responsible for developing and improving climate strategies reviewing climate risk management policies
assessing climate-related targets and progress towards them and monitoring the implementation of measures to address
climate change. Joincare has set up a climate change response team at the Group level. The team is responsible for
studying and analysing the operations of the Group and its production subsidiaries identifying the main climate-related
risks faced by the Group and developing solutions and reporting on the risk responses to the CSR Committee. The
EHS Department leads our work on climate change including making the list of climate risks identifying and assessing
climate-related risks analysing and listing potential climate-related development opportunities and determining
addressing measures and targets based on discussions with other business units and the climate risk scores.We have also developed and published the Climate Change Management System in 2023. The policy sets out the
Group’s        procedures        for        identifying        and        assessing        climate-related        risks        and        opportunities        as        well        as        the        requirements        for
implementing and monitoring the response measures to better drive our climate change management. In 2023 all our
subsidiaries engaged professional third-party companies in their carbon accounting allowing us to comprehensively
review        the        carbon        management        performance        and        actively        promote        the        carbon        emissions        reduction        efforts        of        the        Group.
8.2.2 Strategy
Joincare has made climate change issues part of its decision-making on corporate strategies. We stay focused on the
impact of climate change on our short and long-term production and operations. We strive to improve the overall ability
to manage climate risks by identifying and assessing the climate-related risks facing our business and determining
response measures to those risks.
104Corporate Social Responsibility Report 2023
Table:        Climate        risk        identification        and        countermeasures3
Category Risk Assessment Impact Countermeasures
*The Group pays close attention to climate
*Extreme weather events change trends and formulates contingency
caused by climate change such plans for extreme weather according to the
as torrential rains typhoons circumstances.*Severity of impact: and        floods        may        interrupt         *The Group has set up a special action team for
Physical relatively low electricity transmission in typhoon disaster weather to ensure emergency
risks - acute *Possibility: likely plants resulting in water and material        reserves        and        make        every        effort        to
risks *Timeframe: short- power outages or damage reduce the impact of typhoons.term equipment        which        will        reduce         *Xinxiang Haibin and Jiaozuo Joincare have productivity and threaten established        special        teams        for        flood        responses
the safety of an enterprise’s and Party member taskforce and purchased
properties. adequate        flood        control        materials        reinforcing
flood        response        capabilities.*Severity of impact: *More        frequent        extremely
*The        Group        has        taken        effective        measures
scorching weather will harm to prevent heat-related illness. We provide
relatively low
Physical the health of employees who
heatstroke prevention grants for employees
risks - *Possibility: work in high temperatures
working in the summer and provide intensive
chronic risks likely environment.protection for employees working in high
temperatures and on hot days.*Timeframe: long- *Rising sea levels reduce the useful lives of plants and *We pay close attention to geo-climatic term facilities in coastal areas. information and cover all our operations with the “property all risks” insurance.*Severity of impact: *Regulatory        requirements         *The Group is actively adjusting its business
Transition low for environmental protection and product structure and gradually reducing
risks – policy *Possibility: are becoming more stringent. the use of energy-intensive and highly polluting
and legal Besides more national and production        technologies        and        equipment.        likely
risks local policies have been issued Sustained        efforts        are        being        made        to        try        eco-*Timeframe: short- to limit companies’ carbon friendly technologies and materials so as to
term emissions. limit our carbon emissions.*Severity of impact: *Climate change results in *The        Group        has        identified        alternative        suppliers
low higher costs of raw materials of raw materials key consumables and other
Transition *Possibility: and energy consumption for materials. The Group has also signed strategic risks - pharmaceutical production cooperation agreements with suppliers of key
market risks probable and increasing logistics costs materials and made plans to incorporate new
*Timeframe: short- which threatens the stability of suppliers. These measures are taken to ensure a
term the supply chain. stable and consistent supply of materials.*Severity of impact: *The development of low-carbon        equipment        and         *When investing in new technologies or
Transition relatively low production technologies is introducing        new        equipment        the        Group
risks *Possibility: fraught with uncertainty. will        conduct        sufficient        project        research        and
-technology Investments in new feasibility studies to fully assess the payback possible
risks technologies may fail due to period and project feasibility. We will select *Timeframe: immature technology and low the most appropriate and mature technology to medium-term market recognition. reduce the risk of investment failure.*Severity of impact: *As the public pays more attention to environmental *The Group has set carbon emission targets and
Transition relatively low protection issues an discloses information on climate change in its
risks *Possibility: enterprise’s failure to respond corporate social responsibility reports and the
-reputation to        climate        change        will        affect         CDP        climate        change        questionnaire.possible
risks the public opinion of it and *We have ramped up communication with *Timeframe: damage its reputation in the stakeholders to respond promptly to their medium-term market. concerns about our environmental performance.
3Timeframes (time over which a risk is expected to materialise): short-term (0-3 years) medium-term (4-10 years) and log-term (more
than 10 years)
Possibility (the likelihood that a risk is to materialise): basically certain probable likely possible unlikely and very unlikely
Impact (the severity of a risk's impact on business performance): high relatively high medium relatively low and low
105Joincare Pharmaceutical Group Industry Co. Ltd.
Climate change brings not only risks but also opportunities to our business. With progress made towards the national
goals of carbon peaking and carbon neutrality we have adopted active measures to address climate change. An
accelerated transition to low-carbon operation can help us get the upper hand in the market competition. We keep abreast
of the developments of domestic and international policies on climate change and identify and assess climate-related
opportunities in terms of three dimensions: resource utilisation rate clean energy substitution and market demand.Table:        Climate        opportunity        identification        and        countermeasures4
Severity
Opportunity Impact of Opportunity Measures to Seize Opportunity
of Impact
*The Group actively engages in energy
*Lower energy and resource consumption conservation and emission reduction
can reduce emissions and operating costs. projects and increasingly invests in
Higher resource
Medium *By        adopting        more        efficient        production
green production projects. We are able
utilisation rate technologies companies can increase their to continuously improve energy and
production capacity and revenue while resource        efficiency        reduce        costs        and
using        resources        more        efficiently. increase        efficiency        through        technology
transformation        and        equipment        upgrading.*The Group plans to accelerate the
*Increasing the proportion of clean energy construction of photovoltaic power
can        effectively        reduce        carbon        emissions         generation projects and gradually increase
and help achieve the Group’s emissions the installed photovoltaic capacity and
Increasing
Relatively reduction targets. annual photovoltaic power generation.proportion of
low *Replacing fossil fuels with clean energy Livzon Group one of our holding
clean energy
can help companies better manage the risk subsidiaries has initiated such projects in
of rising fossil fuel prices in the future. the        qualified        plants        of        all        its        subsidiaries        to
continuously        improve        its        self-sufficiency        in
clean energy.*Climate change may lead to more *Closely tracking market demands the
chances for human infections and Group has developed a number of medicines
New market outbreaks        of        influenza        as        well        as         for respiratory diseases such as asthma
Medium
demands increased risk of respiratory diseases COPD and bronchiectasis. TG-1000 which
creating new market demands for is        being        developed        for        influenza        A        and        B
pharmaceutical companies. has entered the phase-3 clinical trial.The Group also recognises the importance of climate scenario analysis for climate risk assessment and management. In
2023 our holding subsidiary Livzon Group conducted a scenario analysis of its business for the first time. It used the
results of the analysis to assess climate risks and opportunities in order to better predict the impact of potential climate
risks improve the resilience of its business and identify carbon emission reduction paths.* 4Severity of impact (the severity of a risk’s impact on business performance): high relatively high medium relatively low and low
106Corporate Social Responsibility Report 2023
Case
The climate scenario analysis of Livzon Group
Following the TCFD recommendations and taking into account its business characteristics
Livzon Group conducted a climate scenario analysis in the Shared Socioeconomic Pathways
(SSPs) scenarios proposed by the Intergovernmental Panel on Climate Change (IPCC). In 2023
Livzon Group compared two highly comparable climate scenarios SSP1-2.6 and SSP5-8.5:
*SSP1-2.6 (low emissions scenario): The scenario shows a sustainable society using mainly
clean energy. Under the scenario all countries have recognised the seriousness of climate change
and have adopted stricter climate policies to reduce emissions. At the same time technological
progress and increased environmental awareness accelerate the transition to a low-carbon and
low-energy        society.        As        a        result        the        global        carbon        emissions        have        been        significantly        reduced.        The
rise in average global temperatures by 2100 is limited to no more than 2°C above pre-industrial
levels.*SSP5-8.5 (high emissions scenario): Under this scenario the emission path remains unchanged
the global economic development relies on fossil fuels and greenhouse gas (GHG) emissions
continue to increase. Over time as countries stop announcing new climate policies physical risks
from        climate        change        intensify        sharply        and        extreme        weather        events        are        more        frequent        and        severe.The average global temperature rises by more than 4°C above pre-industrial levels by 2100.Under these two climate scenarios China's GDP per capita will show about 8.9-11.3 times
increase by 2055 compared to the baseline in 2010. In general higher GDP will have a positive
impact        on        healthcare        needs        and        more        people        will        expect        high-quality        medical        services        and
medicines.
8.2.3 Risk Management
To proactively respond to the risks and opportunities brought by climate change the Group has established a robust
climate risk management system. We identify climate risks and opportunities each year formulate scientific climate
change response plans and regularly report progress to the CSR Committee of the Board of Directors which ensures that
climate-related        risks        are        effectively        managed.
107Joincare Pharmaceutical Group Industry Co. Ltd.
Our climate risk management steps:
Step 1: *The EHS departments of our subsidiaries collect peer reports industry research reports
Making a list media reports relevant policies enacted by regulators and other external information and
of potential data. Based on this information as well as stakeholder surveys and internet searches they
climate risks draw up a list of potential climate risks faced by their companies. In the process other relevant business divisions will support the EHS departments by collecting summarising and
sharing information on climate risks faced by their departments.Step 2: *For        each        identified        climate        risk        assess        from        the        following        four        dimensions:
Determining (1)Time over which a risk is expected to materialise
assessment (2)The likelihood that a risk is to materialise
criteria (3)The        severity        of        a        risk’        impact        on        the        subsidiaries’        financial        plans
(4)The severity of a risk’ impact on the subsidiaries’ corporate strategies
Step 3: *The EHS departments assess and score each risk identified in the 4 dimensions in Step 2.Scoring by the Based on their scores the risks are ranked from the highest to the lowest and a list of risks
management by severity is created. The list is submitted to the heads of the relevant business divisions for initial        approval        and        then        to        the        general        managers        of        the        subsidiaries        for        final        approval.        Once
approved        it        becomes        the        final        annual        list        of        risks        of        the        subsidiaries.Step 4:
Determining *The EHS departments determine response measures and set targets based on the risk scores
response and discussions with other relevant business divisions. They then hammer out action plans to
measures respond to climate risks which will be implemented by the relevant business divisions after approval by the general managers.*The relevant business divisions report to their general managers on the implementation of
Step 5: the action plans every six months and adapt them in good time to their actual situation.Overseeing and *The subsidiaries prepare annual reports on climate risk management every year. After
reporting approval by the general managers the reports are submitted to the Corporate Social
Responsibility Working Group for review and then to the CSR Committee of the Board of
Directors        for        final        approval.
8.2.4 Metrics and Targets
The Group’s GHG emissions mainly come from fuel combustion electricity and purchased steam consumed in
production and operation. GHG emissions and energy use of Joincare in 2023 are as follows:
108Corporate Social Responsibility Report 2023
Table: GHG emissions and energy use of Joincare in 2023
Indicator Unit APIs Formulations Total
Direct GHG emissions (Scope 1) Tonne of CO2        equivalents 6988.7 155688.3 162677.0
Indirect GHG emissions (Scope 2) Tonne of CO2        equivalents 578364.9 291959.0 870323.9
Total GHG emissions Tonne of CO2        equivalents 585353.6 447647.3 1033000.9
Table: Energy use of Joincare in 2023
Indicator Unit APIs Formulations Total
Gasoline Litre 194374.1 193051.4 387425.5
Diesel Litre 230578.1 30544.7 261122.8
Coal Tonne 66894.5 0 66894.5
Liquefied        petroleum        gas Tonne 1.0 2.8 3.7
Natural gas 10000 cubic meters 795.0 298.9 1093.9
Purchased steam Tonne 867473.8 738475.8 1605949.6
Purchased electricity MWh 859060.3 130011.1 989071.4
In 2022 the Group deliberated and approved the Proposal on Adding Carbon Emission Targets to Joincare’s
Environmental Management. According to the proposal we set the carbon emission target of Joincare from 2022 to
2055 and commit to achieving carbon peaking by 2028 and carbon neutrality by 2055 (Scope 1 and Scope 25 ). In 2023
we took multiple measures to meet our carbon emission targets including closely monitoring our progress towards our
annual targets constantly promoting green production and diligently exploring the potential in energy management.Table: Carbon emission targets of Joincare from 2022 to 2025
Year Item Indicator Targets
2022 Carbon emission Emission per unit production (RMB 10000) Down 2% from 2021
2023 Carbon emission Emission per unit production (RMB 10000) Down 4% from 2021
2024 Carbon emission Emission per unit production (RMB 10000) Down 6% from 2021
2025 Carbon emission Emission per unit production (RMB 10000) Down 8% from 2021
5 Scope 1 greenhouse gas (“GHG”) emissions are mainly derived from direct GHG emissions from the consumption of fossil fuels in
the company's operations/production processes (e.g. gasoline diesel natural gas etc.);Scope 2 GHG emissions are mainly derived from
indirect GHG emissions from purchased electricity and steam consumed by the company's operations/production processes.
109Joincare Pharmaceutical Group Industry Co. Ltd.
8.3 Energy Management
The Group takes steady steps to develop the energy management system in strict accordance with laws and regulations
such as the Energy Conservation Law of the PRC and the Law of the PRC on Promoting Clean Production based on ISO
50001 standards. The production subsidiaries of the Group have established an energy management system based on their
actualities.        They        identify        their        energy        availability        through        on-site        investigation        data        verification        and        energy        data        analysis
fully        exploit        their        energy-saving        potential        and        formulate        practical        measures        for        efficient        and        orderly        energy        management.Table: Energy system accreditations of Joincare’s production subsidiaries
Company Name Energy System Accreditation Name of the Energy System
Jiaozuo Joincare Accredited ISO 50001:2018 / RB/T114-2014
Xinxiang Haibin Accredited ISO 50001:2018 / RB/T114-2014
Haibin Pharma Accredited ISO 50001:2018 / RB/T114-2014
Fuzhou Fuxing Accredited ISO 50001:2018 / RB/T114-2014
Livzon Xinbeijiang Accredited ISO 50001:2018 / RB/T114-2014
Jiaozuo Livzon Accredited GB/T23331-2020/ RB/T 114-2014
We incorporate the energy management concept into the work processes. In production we take measures to improve
energy use efficiency for energy conservation and emission reduction. We also increase the investment in green
production projects and strive to build a low-carbon and energy-saving green production enterprise. The green production
projects during this year are as follows:
Table: Green production projects of Joincare in 2023
Company Investment
Project Name Result
Name Amount
Jiaozuo Joincare is currently implementing a biogas reuse project with a capacity of
4000 m3/d. In this project biogas produced in the anaerobic section of the industrial
Jiaozuo Anaerobic biogas RMB1.79 wastewater workshop is purified and used as fuel for RTO regenerative incinerators.Joincare reuse million The project is now in progress and is expected to meet the fuel needs of the two RTO incinerators of Jiaozuo Joincare and Jiaozuo Livzon. An RTO consumes approximately
365000 m3 of natural gas annually. The remaining part after heating hot water is used
to replace steam saving 3759.5 m3 of steam per year.Xinxiang Haibin carried out energy-saving technical improvement for circulating pumps.Technological Under an agreement with a third party the third party provided the energy-saving pumps
improvement of / and        both        parties        shared        the        energy-saving        benefits.        In        2023        the        two        parties        saved        984744
Xinxiang circulating pumps kWh of electricity including 362190 kWh at Xinxiang Haibin. About 420 tonnes of
Haibin carbon dioxide emissions was reduced.Energy-saving Xinxiang Haibin purchased and installed 25 explosion-proof solar street lamps.street lamp project RMB87500 The lamps with a power of 200W operated 12 hours a day and saved a total of 21900 kWh of electricity in 2023.Improvement Livzon Hecheng replaced CASS (Cyclic Activated Sludge System) with MBR
Livzon of energy RMB870000 (membrane        bioreactor)        which        effectively        reduced        energy        consumption        in        sewage        Hecheng consumption in treatment. The project is underway and is expected to save 700000 kWh of
sewage treatment electricity per year when completed.Gutian Upgrading of RMB3 In 2023 Gutian Fuxing completed the upgrade of its 12 tonnes/hour biomass boilers and
Fuxing biomass boiler million boiler exhaust treatment facilities which have been put into operation. The project saves facilities 1000 tonnes of coal each year.
110Corporate Social Responsibility Report 2023
8.4 Emission Management
Joincare abides by national and local laws and regulations such as the Law of the People’s Republic of China on
Environmental Impact Assessment the Law of the People’s Republic of China on Prevention and Control of Soil
Contamination the Law of the People’s Republic of China on the Prevention and Control of Air Pollution and the
Regulations on the Safety Management of Hazardous Chemicals. We strictly control emissions and perform our
environmental protection responsibilities.We have formulated policies such as the Safety and Environmental Management Manual and the Environmental
Protection Management Assessment System in light of our own operating conditions. We also revised our environmental
management policies in 2023 including the Hazardous Waste Management Policy the VOCs Collection and
Management        System        and        the        Management        Policy        for        Production        Wastewater        Discharge.        Based        on        this        the        classification
method monitoring method disposal process and emission standard of all emissions are specified. This ensures
that emission management is based on unified systems and standards. We strive to build a green production line for
sustainable development.In addition the pollutant emission is under our control throughout the production process. All production subsidiaries
of the Group have applied for a sewage discharge permit in accordance with the law on the unified national platform.After        obtaining        the        permit        they        discharge        in        strict        accordance        with        the        requirements        within        the        validity        period        and
firmly ensure the compliance of pollutant emission. Furthermore we have formulated a self-monitoring plan based on
the        environmental        impact        assessment        requirements        and        sewage        discharge        permits.        We        hire        qualified        third-party        testing
agencies to monitor our waste gas wastewater and noise regularly. Based on the monitoring results we conduct self-
inspection and correction of non-standard behaviours and strive to minimise the negative impact of our production on the
environment        as        part        of        our        environmental        protection        efforts.
8.4.1 Waste Gas Management
Joincare devotes ongoing efforts to the management of waste gas emissions in accordance with laws and regulations
including the Law of the PRC on the Prevention and Control of Air Pollution. We have formulated and implemented
waste gas management policies such as the VOCs Management System for Collection and Treatment the Boiler Waste
Gas Emission Management System and the Standard Operating Procedures for High-concentration Waste Gas Treatment
Systems.        The        policies        require        all        production        subsidiaries        to        standardise        the        management        process        and        ensure        the        waste
gas emission is up to standard. The production subsidiaries of the Group strictly implement waste gas management and
take        effective        measures        to        minimise        the        impact        of        waste        gas        emissions        on        the        environment        based        on        their        actualities.        For
example:
* Digital monitoring and manual detection of waste gas: The production subsidiaries have installed online monitoring
equipment        for        organised        waste        gas        emissions        and        detection        equipment        for        fugitive        waste        gas        emissions        for        teal-time
monitoring of the waste gas pollution factors. Data is uploaded to the automatic national monitoring and basic database
system for key pollution sources in real-time. Meanwhile these subsidiaries conduct manual detection of organised
and        fugitive        waste        gas        emissions        each        quarter        pursuant        to        the        requirements        of        the        waste        discharge        permit        and        their        self-
monitoring        plans.        This        practice        aims        to        advance        efficient        management        of        the        emissions.* Daily inspection and feedback of waste gas concentration detection: In the daily inspection of environmental
protection the production subsidiaries check the concentration detection of environmental pollutants in their production
areas the concentration detection of environmental pollutants in key areas the leakage problems in the production areas
and the operating status of the waste gas collection and treatment facilities. In addition they report the concentration of
environmental pollutants within the scope of their factories to the production units demand that the items that do not
meet        the        requirements        be        corrected        in        a        timely        manner        and        record        the        items        that        violate        the        environmental        management
policy and punish those responsible.* Strengthening waste gas management capabilities: The production subsidiaries will conduct professional and technical
training for the relevant waste gas management personnel in order to improve their professional skills. At the same
time        the        production        subsidiaries        acquire        real-time        updates        on        the        progress        of        each        production        step        by        consistently
strengthening communication between the waste gas treatment departments and the production departments.To reduce harmful emissions from our operations we carry out group-wide projects of emissions management
improvement every year. Each Joincare’s production subsidiary continues to increase its investments in waste gas
management and have achieved effective management of waste gas emissions by upgrading waste gas treatment
equipment        and        process.
111Joincare Pharmaceutical Group Industry Co. Ltd.
Table: Major waste gas management and improvement projects of Joincare in 2023
Company Name Project Name Result
Haibin Pharma installed 1 waste gas treatment membrane system 1
pretreatment facility 1 set of three-in-one drug filter washing dryer 2
Upgrading vacuum pumps and 2 condensers for centralised recycling of waste gas.of waste gas This        project        creates        an        annual        benefit        of        RMB1        million.        Waste        gas        treated
Haibin Pharma
treatment        in        off- is        filled        in        the        RTO        system        for        re-treatment        realising        ultra-low        emissions.site workshops The project not only brings economic benefits to the company but also
reduces the safety risks associated with treating high-concentrations waste
gas.To reduce the inlet concentration in the RTO system and eliminate
Pretreatment
the effect of fine dust in waste gas on the RTO combustion process
for waste gas
Xinxiang Haibin installed 1 spray tower and 2 spray pumps for waste gas
treatment
pretreatment.In 2023 Xinxiang Haibin replaced the flat centrifuge in the No.3
workshop with a three-in-one device which lessened the open operations
Improvement of and further reduced the fugitive VOC emissions from the No. 3 workshop.Xinxiang Haibin VOC emissions The VOC concentration in the open feeding operation in the workshop has
been lowered from the original 50 mg/m3 to around 10 mg/m3 which is
expected to reduce the fugitive VOC emissions by 0.5 tonnes per year.Xinxiang Haibin built a new solvent tank farm and substituted canned
Improvement of solvents for barreled solvents. This upgrade realised automatic material
fugitive waste gas input resulting in lower safety risk and reduced open operations and
emissions fugitive emissions. It is expected to reduce fugitive waste gas emissions
by 2.59 tonnes annually.In 2023 Ningxia Pharmaceutical launched technical exchanges and
cooperation        with        companies        qualified        in        exhaust        gas        recycling.        They
Ningxia used the membrane-based recovery process to recover the acetone tail
Waste gas reuse
Pharmaceutical gas produced by the company’s production line for API refining. The
recovery        rate        can        be        as        high        as        more        than        90%        effectively        reducing        VOC
emissions.*Livzon Hecheng added an RTO set greatly improving the VOC
processing efficiency and reducing the VOC emission concentration by
more than 85%.*The company replaced an 8 t/h ultra-low nitrogen natural gas boiler
reducing the concentration of nitrogen oxide emissions by 80%.Renewal of waste
Livzon Hecheng
gas        equipment *The        company        installed        the        liquid        nitrogen        cryogenic        treatment        and
recovery facilities for the waste gas produced by the refinery workshop.These        facilities        use        the        plant’s        liquid        nitrogen        cooling        capacity        to
condense and recover acetone and ethanol. The ongoing project is
expected to recover 140 tonnes of acetone and ethanol per year which
will not only reduce exhaust emissions but also improve solvent recovery.
112Corporate Social Responsibility Report 2023
Table: Emissions of main waste gases of Joincare in 2023
Indicator Unit APIs Formulations Total
Volatile organic compounds Tonne 65.6 3.5 69.0
Nitrogen oxide Tonne 85.5 4.6 90.1
Sulfur dioxide Tonne 34.3 0.3 34.6
Particulates Tonne 13.5 2.5 16.0
8.4.2 Wastewater Management
According to laws and regulations such as the Water Law of the PRC and the Water Pollution Prevention and Control
Law of the PRC Joincare has established the wastewater management system and formulated a series of standard
operating        procedures.        By        installing        online        wastewater        monitoring        equipment        at        the        effluent        outlets        of        major        wastewater
discharge plants and networking with regulatory authorities we monitor and share real-time chemical oxygen demand
(COD) ammonia nitrogen total nitrogen total phosphorus and other discharge data of treated wastewater and urge
all the production subsidiaries to meet the set standards for wastewater treatment and discharge. We regularly inspect
and        maintain        the        wastewater        treatment        and        monitoring        equipment        to        ensure        the        stable        and        efficient        operation        of        the
wastewater        treatment        system.        The        production        subsidiaries        of        the        Group        also        upgrade        the        processes        and        equipment        that
produce wastewater and strive to reduce the discharge of wastewater.At the same time we conduct regular training for operators of the wastewater treatment system and at the sewage
stations to improve their management awareness and professional skills and to ensure that wastewater management runs
smoothly.        In        2023        the        EHS        personnel        from        our        headquarters        provided        on-site        assistance        to        Xinxiang        Haibin        in        upgrading
the anaerobic section of sewage treatment and converting organic pollutants into biogas for recycling and reuse thereby
easing        the        burden        on        the        subsequent        biochemical        sewage        treatment.To reduce the environmental impact of wastewater from our operations we carry out group-wide wastewater
management improvement projects every year. We decrease wastewater discharge increase wastewater utilisation
and reduce the concentration of pollutants in wastewater by improving wastewater treatment processes and upgrading
wastewater treatment facilities. In this way we continue to explore the potential for better wastewater management. At
the same time we continue to track and review the progress of wastewater management improvement projects and the
effectiveness        of        treatment        to        ensure        that        our        efforts        to        reduce        and        manage        wastewater        emissions        are        fruitful.Table: Major wastewater management and enhancement projects of Joincare in 2023
Company
Name Project Name Result
Xinxiang Haibin added two sets of wastewater distillation recovery and
Xinxiang Pretreatment pretreatment facilities to recover n-octane and ethanol from production
Haibin of production wastewater. This not only improves the solvent recycling rate but also wastewater ensures the stable operation of the environmental protection facilities in
subsequent        processes        generating        a        benefit        of        RMB1.5        million        each        year.In the year Gutian Fuxing built a new membrane treatment plant for high-
Gutian Upgrade of ammonia nitrogen wastewater to pretreat such wastewater and protect the
Fuxing sewage treatment treatment efficiency of its wastewater treatment facilities from declining due facilities to        the        impact        of        high-concentration        wastewater.        This        ensures        the        efficient        and
stable operation of the wastewater treatment facilities.In the year following the guidance of the Demonstration Report on
Livzon Waste alcohol Comprehensive Utilisation of Waste Alcohol Livzon Limin recycled waste
Limin reuse alcohol to the wastewater treatment plant and used it as a supplementary
carbon source thus improving the recycling rate of waste alcohol.
113Joincare Pharmaceutical Group Industry Co. Ltd.
Company
Name Project Name Result
During        the        year        Jiaozuo        Livzon        added        the        pretreatment        process        for        fluoride-
Technical containing wastewater. It added potassium chloride to the wastewater to
transformation reduce the level of fluoroborate and decrease the discharge of fluoride thereby relieving the impact of fluorine-containing wastewater on the entire
Jiaozuo sewage treatment system.Livzon In the year Jiaozuo Livzon initiated a triethylamine raw material recycling
Triethylamine project. This project was expected to recycle 157 tonnes of triethylamine
recycling every year with a reuse rate of 58%. This has effectively lowered the COD concentration in wastewater discharged and mitigated the environmental
impact of its production activities.Taking into account the different COD concentrations of wastewater
Sichuan Technical Sichuan Guangda built high- and low-concentration collection tanks to
Guangda transformation collect wastewater with different COD concentrations separately. This has effectively        mitigated        the        impact        of        direct        discharge        of        high-COD        wastewater
into the sewer system.Table: Main wastewater and pollutant emissions of Joincare in 2023
Indicator Unit APIs Formulations Total
Wastewater emission Tonne 10977349.2 1114799.8 12092149.0
Chemical oxygen demand Tonne 968.4 26.7 995.2
Ammonia Nitrogen Tonne 112.0 1.7 113.6
8.4.3 Solid Waste Management
Joincare stores collects disposes and transports wastes in strict accordance with the standards and regulations such
as the Catalogue of Classified Management of Discharge Permits for Stationary Pollution Sources and the Standard
for Pollution Control on the Non-hazardous Industrial Solid Waste Storage and Disposal Facility. Therefore legal
compliance is ensured in solid waste treatment. For hazardous waste under the manifest system for transfer of hazardous
waste        we        transfer        all        such        waste        we        produce        to        qualified        companies        for        rule-based        disposal.        And        we        deliver        non-
hazardous        waste        to        qualified        entities        with        whom        we        have        sign        contracts        for        safe        disposal.Adhering to the principles of Reduction Resource Utilisation and Harmless Processing we strictly control the
discharge of solid waste in waste generation reuse and harmless disposal links with the aim of reducing our impact
on the environment. At the same time the Group has set solid waste disposal targets which have been allocated to all
subsidiaries.        The        subsidiaries        are        required        to        achieve        a        disposal        rate        of        100%.        In        2023        all        subsidiaries        achieved        their
solid waste disposal targets.To reduce waste discharge from our operations we carry out group-wide waste management improvement projects every
year. We classify waste to improve treatment efficiency and actively promote waste reduction recycling and harmless
disposal by introducing advanced environmental protection technology into production upgrading original production
technology        and        formulations        and        cooperating        with        third        parties.        We        are        monitoring        the        operation        and        treatment        effects        of
solid        waste        management        improvement        projects        to        ensure        that        our        efforts        to        reduce        waste        discharge        are        effective.
114Corporate Social Responsibility Report 2023
Table: Major solid waste management and improvement projects of Joincare in 2023
Company Name Project Name Result
In 2023 Xinxiang Haibin invested RMB1.50 million in the technical
transformation        of        the        MVR        and        mother        liquor        concentration        processes
for        its        high-salt        wastewater        treatment        equipment.        In        the        past        the
Technological high-salt wastewater from the workshops after the mixed treatment
transformation of contained a large amount of hazardous solid waste. After the technical Xinxiang Haibin hazardous waste transformation the company treats the wastewater separately. Part of
treatment the wastewater goes directly to the evaporation boiler for evaporation and concentration and is then mixed after the testing reducing
the production of hazardous waste by 40%. As a result the annual
production of hazardous solid waste can be reduced by more than 500
tonnes.In 2023 in cooperation with third parties Ningxia Pharmaceutical
Ningxia completed the experiment of reusing boiler slag and sludge as
Pharmaceutical Waste reuse construction raw materials transforming the slag and sludge into
resources.In 2021 Fuzhou Fuxing cooperated with South China University of
R&D of fungi Technology in research and development of reduction and recycling
residue reduction of fungi residues. By improving the flocculant and adding low-
and recycling temperature        drying        equipment        the        reduction        rate        of        fungi        residue        per
technology unit of product has been steadily controlled at over 60%. In 2023 the project operated stably and saved disposal costs of about RMB1
Fuzhou Fuxing million or more achieving the expected results.Optimising In 2022 Fuzhou Fuxing optimised the flocculant formulation in filter
filter        pressing        in         pressing in hazardous waste disposal and added the low-temperature
hazardous waste drying facilities reducing solid waste by more than 60% and saving
disposal disposal costs of about RMB1 million. As at the end of the reporting period the project was under implementation.After the upgrade project was completed in 2021 the moisture
Gutian Fuxing Upgrade of sludge content of Gutian Fuxing’s sludge was down from 85% to 60%. This press system effectively        reduces        the        sludge        production        and        avoids        problems        such        as
dripping due to high moisture content during sludge transport.Table: Waste treatment of Joincare in 2023
Indicator Unit APIs Formulations Total
General industrial waste Tonne 120211.8 21327.3 141539.1
Hazardous Wastes Tonne 6476.7 407.5 6884.2
Among which: Pharmaceutical
Tonne 3546.3 245.9 3792.2
waste and waste medicines
Other hazardous waste Tonne 2930.4 161.6 3092.0
115Joincare Pharmaceutical Group Industry Co. Ltd.
8.4.4 Noise Management
Joincare strictly abides by the Environmental Noise Pollution Prevention and Control Law of the PRC Environmental
Noise        Emission        Standards        for        Industrial        Enterprises        Boundary        and        other        relevant        laws        and        regulations.        We        equip        the
production subsidiaries with noise detectors and test the noise at the plant boundary every month to ensure that the noise
during daytime/night is lower than the national emission limits. The production subsidiaries also actively optimise their
production        equipment        and        try        to        reduce        the        impact        of        production        noise        on        the        environment        by        adding        soundproof        houses
and        nitrogen        generator        mufflers.Case
Noise reduction of refrigeration machines by Xinxiang Haibin
In 2023 Xinxiang Haibin invested RMB 350000
to build a soundproof room with acoustic panels
and closed the door and windows of the room
to best soundproof the refrigeration machines.The measured noise levels have met the noise
s t andards fo r p roduc t ion workshops and
workplaces of industrial companies.Noise Reduction Project of Refrigeration
Machines by Xinxiang Haibin
8.5 Resource Utilisation Management
Adhering to the concept of sustainable development in the whole process of production and operations Joincare
consistently strengthens resource use management and practices the concept of green development. We abide by the
Water Law of the PRC the Circular Economy Promotion Law of the PRC and other relevant laws and regulations. We
have        implemented        stringent        management        requirements        for        water        resources        and        materials.        We        also        promote        standardised
and systematic management measures and work hard to improve resource utilisation rate in production and operations.
8.5.1 Water Management
At Joincare we attach great importance to water management. To conserve water and reduce water consumption we
implement a strict water management policy and carry out group-wide water management improvement projects.All our production subsidiaries are actively introducing and using advanced technologies and processes to conserve
water        and        improve        water        use        efficiency.        We        are        strengthening        the        maintenance        of        various        water-consuming        equipment
and facilities investing in water resource recycling projects and promoting the recycling of reclaimed water and cooling
water.        These        efforts        aim        to        reduce        fresh        water        consumption        and        improve        the        reuse        rate        of        water        resources.
116Corporate Social Responsibility Report 2023
Table: Major water-saving projects of Joincare in 2023
Company
Name Project Name
Investment
Amount Result
After repeated testing analysis and experimental verification
Jiaozuo Joincare succeeded in recycling the water from the level-3
sedimentation tanks in the industrial wastewater workshops and the
pickling wastewater from the refining plants. Through combined
Recycling treatment including classified collection sedimentation and
Jiaozuo and filtration composite filtration thorough removal of contaminants
Joincare utilisation RMB4 million and secondary treatment with reverse osmosis membranes the of reclaimed wastewater meets the standard for reuse. The project put into trial
water operation in March 2024. When completed it will be able to recycle
about 2400 m3 of water from the level-3 sedimentation tanks and
1400 m3 of pickling wastewater per day achieving a recycling rate
of 79% and reducing the daily wastewater volume by about 3000
m3.Xinxiang Steam Xinxiang Haibin launched a steam condensate reuse project using
Haibin condensate RMB300000 steam condensate for domestic use and irrigation. This saves 10000 reuse tonnes of water every year.Steam Jiaozuo Livzon launched a project of collecting and reusing steam
Jiaozuo condensate condensate in the workshop. All steam condensate was reused or
Livzon collection RMB36000 used as domestic water for employees reducing the consumption
and reuse of purchased tap water. The project can save 3000 tonnes of water every year.Livzon Hecheng installed storage tanks heat exchangers and water
Water reuse pumps and piping to return water to the storage tanks during spray
Livzon with storage RMB40000 cooling. After the water was cooled by the heat exchangers it was Hecheng tanks and pumped to the roof of the tank farm for cooling thereby improving
water pumps the utilisation of water resources. This can save 9000 tonnes of
water per year.Table: Water resources usage of Joincare in 2023
Indicator Unit APIs Formulations Total
Total water
10000 tonnes 1201.2 225.3 1426.5
consumption
8.5.2 Material Utilisation Management
Joincare takes positive steps to implement the resource recycling policy and optimise material management for higher
resource        utilisation        efficiency.We optimise the layout of the storage area. The packaging materials and excipients are stored by area layer and category
to save storage space. We optimise the material transportation route to improve the utilisation of elevators and the
efficiency of internal material transportation. In addition we have improved the product packaging design and product
specifications and have been recycling consumables such as corner strips and packing belts used for packaging the
finished        products.
117Joincare Pharmaceutical Group Industry Co. Ltd.
Case
Barreled        material        storage        rooms        at        Haibin        Pharma’s        off-site        workshops
In 2023 Haibin Pharma invested RMB 1 million
in off-site workshops to build four storage rooms
for solid materials and barreled materials with a
total        area        of        800        square        metres.        The        supporting
facilities include the air supply system ground
protector leakage collection basin electrostatic
discharge        equipment        and        the        like.        They        will
help to reduce the safety risks and dust pollution
caused by materials stacked in the open air and
ensure that materials are stored in a safer and more
environmentally friendly way. Barreled Material Storage Rooms at Haibin
Pharma’s        Off-site        Workshops
The new solvent tank farm of Xinxiang Haibin
In 2023 Xinxiang Haibin invested about RMB
12.1558 million to build a new solvent tank farm.
The barreled solvent was changed to canned
solvent to reduce the production of fugitive waste
gas emissions and packaging waste saving 38
tonnes of iron drums and 8 tonnes of plastic
packaging each year.The New Solvent Tank Farm of Xinxiang
Haibin
8.6 Biodiversity Conservation
Business sustainability is inextricably linked to ecosystem health. Joincare pays great attention to the impact of its
operations on biodiversity. We comply with the Law of the PRC on Prevention and Control of Soil Contamination the
Forestry Law of the PRC the Law of the PRC on the Protection of Wildlife the Regulations on Conversion of Farmland
to Forests the Opinions on Further Strengthening Biodiversity Protection and other relevant laws and regulations. We
also actively implement the UN Convention on Biological Diversity and promote biodiversity in many ways. We would
identify environmental risk factors and hidden hazards before building factories. We meet the “ecological red lines”
requirements        and        avoid        operating        in        areas        of        high        biodiversity        value        such        as        those        close        to        government-designated
ecological reserves. At the same time we encourage our production subsidiaries to conduct biodiversity assessments
relevant to their operations to help protect endangered species and promote ecosystem balance.During the year Joincare had no production facilities or operational sites located within ecological reserves or areas
of high biodiversity value. None of the Group’s production activities products or services had a significant impact on
biodiversity.
118Corporate Social Responsibility Report 2023
09
Public Welfare and
Charity
SDGs in this section
As a responsible enterprise Joincare continues to pay attention to social needs in addition to its own business development.We actively participate in charitable and public welfare projects to create a better world with virtue. Relying on our business
and technical advantages we aspire to build a harmonious society. We take practical actions to support the healthy green and
sustainable development of the whole society. Specifically we participate in industry exchanges continuously promote the
“Access to Public Welfare for Chronic Diseases Prevention and Treatment Programme” and rural industrial assistance projects
and organise a variety of health and public welfare activities for the public to support the healthy green and sustainable
development for the whole society with practical actions.
119Joincare Pharmaceutical Group Industry Co. Ltd.
9.1 Promoting Industry-Based Welfare
Joincare strives to be a pioneer in the healthcare industry. We actively participate in exchanges and cooperation with
industry associations and societies on cutting-edge industry technologies and trends to promote the sustainable
development        of        the        industry        through        joint        efforts.Table:Associations Joined by Joincare
No. Associations
1 Medical and Chemicals Technical Options Committee (MCTOC)
2 Guangdong Pharmaceutical Industry Association
3 Guangdong Bio-Pharmaceutical Innovation Technology Association
4 Shenzhen Biomedical Industry Alliance
5 Shenzhen Life Science and Biotechnology Association
6 China Pharmaceutical Industry Association
7 Professional Committee of Drug Manufacturing Quality Authorised Person of Guangdong Pharmaceutical Association
8 China Nutrition and Health Food Association
9 China Health Care Association
10 Guangdong Food Safety Society
11 Guangdong IP Protection Association
12 Guangdong Forensic Science Association
13 Shenzhen Forensic Science Association
Dr. Jin Fang the Chief Scientist of the Group attended a number of international conferences as a member of Medical
and Chemicals Technical Options Committee (MCTOC) under the United Nations focusing on research and reporting
related to MDI inhaler propellant substitution. As a subordinate institution of Technology and Economic Assessment
Panel (TEAP) MCTOC conducts science and technology evaluation on materials that deplete the ozone layer and
their alternatives in alliance with the other Technical Options Committees (TOCs). Based on this MCTOC provides
suggestions to parties who signed the Montreal Protocol thus contributing to the fulfilment the obligations of Montreal
Protocolworldwide.The        processes        of        R&D        production        and        quality        control        of        inhalation        formulations        which        is        a        a        high-end        dosage        form
have relatively large difference when compared to regular oral or injectable formulations. As a member of the Chinese
Pharmacopoeia Commission Dr Jin Fang leads the research project Revision of the General Rules for 0111 Inhalation
Formulations for the revision of national drug standards. To further improve the on-site inspections of inhalation
formulationss Joincare took part in the compilation of the Guideline for On-site Inspection of Inhalation Formulations.The compilation was led by Guangzhou Institute of Respiratory Health and approved by Centre for Food and Drug
Inspection        of        NMPA.        The        guideline        which        was        officially        launched        on        6        March        2023        can        help        onsite        inspectors        identify
the        risk        control        points        of        inhalation        formulations        conduct        effective        inspection        and        ensure        the        quality        and        safety        of
inhalation formulations.
9.2 Promoting Health-Based Welfare and Charity
Rooted in the healthcare industry Joincare continues to do its part in inclusive chronic disease prevention and treatment
industrial        assistance        community        health        and        earthquake        relief        striving        to        build        a        healthy        and        harmonious        society.        In        2023
Joincare donated about RMB 25985 thousand to public welfare projects including cash of nearly RMB 19762 thousand
and goods worth about RMB 6223 thousand.
120Corporate Social Responsibility Report 2023
9.2.1 Rural Revitalisation
Chronic Disease Prevention and Treatment
In response to the national strategy of rural revitalisation and common prosperity Joincare joined hands with the Group’sholding subsidiary Livzon Group to carry on the long-term drug donation programme - “Access to Public Welfare forChronic Diseases Prevention and Treatment Programme”. We provided long-term assistance to patients with financial
difficulties in remote areas who suffer from chronic diseases such as hypertension hyperlipidemia cardiocerebral
diseases        and        gastric        diseases.        We        donated        five        drugs        for        treating        chronic        diseases        including        Pravastatin        Capsules        (普 伐
他汀钠胶囊 ) Amlodipine Besylate Capsules (苯磺酸氨氯地平胶囊 ) Valsartan Capsules (缬沙坦胶囊 ) Isosorbide
Mononitrate Tablets (单硝酸异山梨酯片 ) and Bismuth Potassium Citrate Tablets (枸橼酸铋钾片 ) to reduce the
medical burden of chronic diseases on poor families and prevent patients from sinking back into poverty due to illness. At
the same time we actively carry out health-related and education-based public welfare activities to help chronic disease
patients improve the knowledge in the prevention and control of chronic diseases and health management.Since late 2018 onwards we have carried out the “Access to Public Welfare for Chronic Diseases Prevention andTreatment Programme” successively in areas including Chaotian District Guangyuan City Sichuan Province; Songpan
County Aba Zang Qiang Autonomous Prefecture Sichuan Province; Jinkouhe District Jiange and Pingwu Counties
Leshan        City        Sichuan        Province;        Hunyuan        Guangling        and        Lingqiu        Counties        Datong        City        Shanxi        Province;        Dongxiang
Tianzhu Linze Shandan and Huining Counties Gansu Province; Xianghai National Nature Reserve Jilin Province;
Chayu County Tibet Autonomous Region; Macun District Jiaozuo City Henan Province; Huangshan District
Huangshan City Anhui Province; Suining County Hunan Province; Fenyi County Jiangxi Province; Kashgar Xinjiang
Uygur Autonomous Region; Baarin Left Banner and Togtoh County Inner Mongolia Autonomous Region; and Ziyuan
County Guangxi Zhuang Autonomous Region. These are part of our efforts to benefit the public protect the health of
rural residents revitalise rural areas and build a beautiful and healthy China.Programme on Chronic Diseases in Programme on Chronic Diseases in
Baarin Left Banner Inner Mongolia Ziyuan County Guangxi
Programme on Chronic Diseases in Huining County Gansu Province
121Joincare Pharmaceutical Group Industry Co. Ltd.
Case
Case: “Rural Revitalisation: Programme on Chronic Diseases” in
Jinkouhe District Sichuan Province
Jinkouhe District of Leshan City located in the southwest of Sichuan Province and north of theXiaoliang Mountain was designated as a “Targeted Assistance County for Rural Revitalisationin Sichuan Province” in 2021. In September 2023 Joincare and its holding subsidiary Livzon
Group launched the “Rural Revitalisation: Programme on Chronic Diseases” in Jinkouhe District
donating RMB 1 million worth of medicines to the local Red Cross. The donated medicines
will be used free of charge by the District People’s Hospital to treat local low-income patients
with chronic diseases reducing their financial burden and life difficulties caused by long-term
medication. This will further improve the health of local people and inject impetus to the local
health cause.“Rural Revitalisation: Programme on Chronic Diseases” in Jinkouhe District Sichuan ProvinceBy the end of the reporting period we had signed 26 agreements on the “Access to Public Welfare for ChronicDiseases Prevention and Treatment Programme” which covers 8 provinces and 4 autonomous regions including 23
remote areas in need of aid and benefiting 19410 low-income patients with chronic diseases. In 2023 we donated
RMB 1 million worth of chronic disease medicines to low-income patients in each of the following regions:
* In April 2023 the Group donated RMB 1 million worth of medicines to Kashgar Xinjiang Uygur Autonomous Region;
* In June 2023 the Group donated RMB 1 million worth of medicines to Huining County Gansu Province;
* In July 2023 the Group donated RMB 1 million worth of medicines to Baarin Left Banner Inner Mongolia Autonomous Region;
* In July 2023 the Group donated RMB 1 million worth of medicines to Ziyuan County Guangxi Zhuang Autonomous Region;
* In September 2023 the Group donated RMB 1 million worth of medicines to Jinkouhe District Leshan City Sichuan Province;
* In October 2023 the Group donated RMB 1 million worth of medicines to Shandan County Gansu Province; and
* In October 2023 the Group donated RMB 1 million worth of medicines to Togtoh County Inner Mongolia Autonomous
Region.
122Corporate Social Responsibility Report 2023
During the year the “Access to Public Welfare for Chronic Diseases Prevention and Treatment Programme” was highlyrecognised and awarded as “2023 ‘CSR Competitiveness’ Responsibility Typical Cases of ‘Contribution Enterprises in RuralRevitalisation’” by the China Business Journal and “Excellent Practice Cases of Listed Companies in Rural Revitalisation”
by the China Association for Public Companies. These accolades demonstrate the high recognition and appreciation received
from external organizations
China Business Journal China Association for Public Companies
2023 “CSR Competitiveness” Responsibility Typical Cases of Excellent Practice Cases of Listed Companies
“Contribution Enterprises in Rural Revitalisation” in Rural Revitalisation
Industry-Based Assistance
To consolidate and expand the achievements in poverty alleviation the Group provides industry-based assistance toempower the sustainable development of the rural economy using its industrial advantages. Following the “AstragalusRoot (黃 芪 ) Industry Revitalisation” plan and the model of “Company + Base” and “Company + ProfessionalCooperative” Joincare’s holding subsidiary Livzon Group works to make the astragalus root industry a pillar industry in
the long-term with reference to the local conditions.Case
Industry-based assistance to promote the development of the astragalus root industry by Livzon Group
Since 2017 Livzon Group has been implementing the “Astragalus Root Industry Revitalisation” project.It has built astragalus root planting bases in Hunyuan County Datong City Shanxi Province and Zizhou
County Yulin City Shaanxi Province. In 2023 Livzon Group re-signed the astragalus root planting base co-
construction agreements with 12 cooperatives in Hunyuan Tianzhen and Yanggao Counties Datong City
Shanxi Province and Yulin City Shaanxi Province to build bases of about 20000 mu. The project has helped
in        total        of        415        people        since        2017        effectively        boosting        the        economic        development        of        relevant        rural        areas.In addition Livzon Group and the village committee of Mazhuang Village Guaner Township Hunyuan
County Datong City Shanxi Province jointly launched the “Co-construction between County and Corporate”
project to repair and upgrade the factory for primary processing of fresh astragalus root. The project aims
to        repair        and        renovate        the        primary        processing        factory        to        meet        the        requirements        of        primary        processing        and
storage of astragalus root. At the same time Livzon Group provided GAP training for about 30 managers and
local farmers of the base in Zizhou County Yulin City Shaanxi Province in accordance with the new Good
Agricultural Practice for Chinese Herbal Medicine. It also conducted practical training on the traceability of
Chinese herbal medicine to improve the professional competence of managers.
123Joincare Pharmaceutical Group Industry Co. Ltd.
9.2.2 Community Health
Joincare commits itself to organising health-related and education-based public welfare activities through various
channels including videos expert live broadcasts lectures and free clinics. Through this kind of interesting and lively
popularisation we aim to enhance the public’s health awareness.Oral Health Education
To raise public awareness of oral health Joincare in collaboration
with Peking Union Medical College Hospital and Peking University
School and Hospital of Stomatology conducted 22 online lectures
on oral health and invited 123 doctors to release a total of 169
promotion videos. These efforts reached nearly 700 million people
strengthening public attention to oral health.Oral Health Education
Know More about Menopause
Joincare is committed to correcting public perception of menopausal
symptoms and working with expert doctors to spread menopausal
health knowledge to the public through social media. In 2023
Joincare worked with 24 professional doctors to produce 28 popular
Menopause Knowledge Promotion Video science articles which were viewed by over 50 million people.“1018” World Menopause Day Activities
On 18 October 2023 Joincare launched a series of online and
offline menopause care activities. We shared the secrets to living
with menopause through a variety of innovative activities including
the release of online videos offline collaborations with national
pharmacy chains bus tour and yoga.“1018” World Menopause Day Activities
Experts’ View on Menopause
Joincare launched a professional menopause column Expert
View on Menopause which has a total of 150 thousand
subscribers. By the end of the reporting period we had
cooperated with 47 medical experts and dietitians in various
fields to organise 62 live sessions and 3 offline lectures
covering more than 100000 viewers from a number of
Expert View on Menopause provinces across the country.
124Corporate Social Responsibility Report 2023
Case
“Inner Nourishment for Beauty Nurturing Eastern Elegance” - Melasma removal
Science Campaign
Melasma i s a sk in d i sease wi th increased
pigmentation usually found on the face. On
average 1 in 3 women of childbearing age in the
country        suffer        from        melasma.        To        educate        the        public
about the symptoms and treatment of melasma
Joincare and the authoritative media Xinhua jointlylaunched the “Inner Nourishment for BeautyNurturing Eastern Elegance” activity to explain
how to properly remove melasma. The activity was
viewed over 100 million times and attracted morethan 850000 participants promoting the culture “Inner Nourishment for Beauty Nurturing Easternof traditional Chinese medicine while popularising Elegance” - Melasma Removal Science Campaign
health knowledge.World COPD Day: prevention and treatment of chronic respiratory diseases
with “Respiratory Experts' Views”
In cooperation with the Respiratory Society of Jiangsu Medical Association Nanjing Drum Tower
Hospital and 18 Grade-A tertiary hospitals in Nanjing the Group launched a large-scale free clinic
on World Chronic Obstructive Pulmonary Disease (COPD) Day in November 2023. A wide rangeof online and offline activities were carried out on the exclusive platform “Respiratory Experts'Views”. Adhering to the principle of “public welfare for the good and knowledge for the people” we
hope to do a good job of educating the public on respiratory diseases with partners from all walks of
life. In this way COPD can be understood and recognised by more people. We also aim to establish
a coordinated system for the prevention and control of respiratory diseases throughout society
promoting the early prevention screening diagnosis and treatment of COPD to safeguard public
health.On the day of the activity 100 people attended the on-site lecture 300 people received free
consultations and over 250000 viewers watched the live broadcast of the event online. This activity
received on-site coverage fromby the provincial media in Jiangsu Province and received unanimous
praise from the participants.Large-Scale Free Clinic on World COPD Day
125Joincare Pharmaceutical Group Industry Co. Ltd.
9.2.3                Earthquake        Relief
Joincare        is        concerned        about        the        health        and        safety        of        the        public        and        is        committed        to        helping        people        in        need        and        fulfilling
its        corporate        social        responsibility.        In        December        2023        a        6.2        magnitude        earthquake        struck        Jishishan        County        Linxia
Hui Autonomous Prefecture Gansu Province causing severe impacts on the local economy and society. The Group
responded        quickly        to        the        earthquake        by        providing        relief        and        assistance        to        the        people        in        the        affected        areas.        Together        with
our holding subsidiary Livzon Group we donated a total of RMB 20 million in relief funds and medical supplies to the
affected        areas.        We        contributed        to        the        emergency        relief        resettlement        of        the        affected        people        support        for        rescue        teams        and
post-disaster        reconstruction        to        help        people        through        the        difficult        times.Joincare        Earthquake        Relief        in        Gansu
9.3 Involvement in Public Welfare
In addition to leveraging its industrial advantages for public health Joincare acts in line with the corporate culture of
“Caring for people Practicing public welfare”. In May 2023 we set up a volunteer team and called on more than 200
employees to join the team. Volunteer activities were carried out in a variety of areas such as environmental protection
public health and rural revitalisation.
126Corporate Social Responsibility Report 2023
Environmental Protection
We support the construction of urban ecosystem and are
committed to protecting the ecological environment. In
2023 our volunteer team participated in a litter pickingactivity themed “Ecological Conservation for a SharedGreen Future” in Wutong Mountain Shenzhen alleviating
the workload of the cleaners. By doing so we advocate the
reduction of uncivilised behaviour such as littering and
convey the spirit of a green civilisation to the public.Litter Picking Activity in Wutong Mountain Shenzhen
Caring for Children with Autism
Children’s physical and mental health should be a concern for all people. In November 2023 our volunteer team
participated in the “5km Fun Run for Children of the Stars” to encourage children with autism and their families to take
part in outdoor sports and enjoy the fun with the company of volunteers. We hope that through this activity these children
and their families will receive more love and care and more people will care about understand and help them so that
together we can create a harmonious and lovely society.。
“5km Fun Run for Children of the Stars” Volunteer Activity
127Joincare Pharmaceutical Group Industry Co. Ltd.
10 Data List of Key Performance Indicators
CSR indicator Unit 2021 2022 2023
1 Environmental6
1.1. Emissions7
Waste Water Emission Tonne 10485061.5 11110513.9 12092149.0
Chemical Oxygen Demand (CODCr) Tonne 984.4 1029.4 995.2
Ammonia Nitrogen Tonne 113.6 101.1 113.6
VOCs Tonne 72.3 55.1 69.0
NOX Tonne 139.9 107.2 90.1
SO2 Tonne 48.7 33.5 34.6
Particulates Tonne 27.2 19.2 16.0
Hazardous and Non-hazardous Waste
Hazardous Waste Tonne 5791.5 6410.1 6884.2
Pharmaceutical Wastes
and Medicine Wastes Tonne 3034.9 3352.9 3792.2
Divided by Category
Other Hazardous
Wastes8 Tonne 2756.6 3057.1 3092.0
Total Hazardous Waste Tonne / / 742.2
Divided by Processing Recycled/Reused
Method Total Hazardous Waste
Disposed Tonne / / 6141.9
Industrial Waste Tonne 145628.8 151323.1 141539.1
Industrial Waste (Recyclable) Tonne / / 48400.0
Industrial Waste (Non-Recyclable) Tonne / / 93139.1
Greenhouse Gas Emissions
Total Greenhouse Gas Emissions CO2        equivalent (in tonnes) 1005579.8 1037613.6 1033000.9
CO2        equivalent
Intensity of Greenhouse Gas Emissions9 (in tonnes)/RMB / 0.52 0.51
10000
6Scope of environmental data disclosure: all the manufacturing enterprises of Joincare.
7Disclosure of major pollutants/emissions and related emission data according to the production characteristics of enterprises.
8Among other hazardous waste high-level radioactive waste is included. This year the amount of high-level radioactive waste is zero.
9The intensity in 2023 was calculated based on RMB 10000 of output value.
128Corporate Social Responsibility Report 2023
Data List of Key Performance Indicators CSR indicator Unit 2021 2022 2023
Direct Greenhouse Gas Emissions (Scope 1)10 CO2        equivalent        (in tonnes) 201234.8 202473.9 162677.0
Indirect Greenhouse Gas Emissions (Scope 2)11 CO2        equivalent (in tonnes) 804345.0 835139.7 870323.9
1.2 Use of Resource
Total Energy Consumption
Gasoline Litre 396363.6 251528.5 387425.5
Diesel Litre 386903.8 196825.5 261122.8
Coal Tonne 86291.0 88244.2 66894.5
Natural Gas 10000 cubic meters 949.6 858.3 1093.9
Liquefied        Petroleum        Gas Tonne 7.9 6.8 3.7
Purchased Steam Tonne 880288.5 932444.1 1605949.6
Purchased Electricity MWh 926560.0 959454.9 989071.4
Biomass Fuels Tonne / / 1004.0
Direct Energy Consumption MWh / 611129.2 506554.7
Indirect Energy Consumption MWh / 1682747.5 1787199.0
Renewable Energy Consumption MWh / 1320.8 5708.2
Non-renewable Energy Consumption MWh / 2292555.9 2288045.4
Total Energy Consumption MWh / 2293876.7 2293753.6
Intensity of Total Energy Consumption9 MWh/RMB 10000 / 1.1 1.1
Water Consumption
Total Water Consumption 10000 tonnes 1361.3 1300.4 1426.5
Intensity of Total Water Consumption9 Tonne /RMB10000 8.1 6.5 7.1
Recycled Water Volume 10000 tonnes / 13.8 9.2
Packaging Material Used
Packaging Material Used Tonne / 14570.6 9236.3
Intensity of Packaging Material Used9 Tonne/RMB 10000 / 0.0073 0.0046
10Scope 1 greenhouse gas (“GHG”) emissions are mainly derived from direct GHG emissions from the consumption of fossil fuels
in the company's operations/production processes (e.g. gasoline diesel natural gas etc.) and the formula used is: CO2 emissions
from fossil fuel combustion = fuel consumption × low level heat generation × carbon content per unit of calorific value × fuel carbon
oxidation rate × 44/12. The emission factor and the calculation refer to the Guidelines for Accounting and Reporting of Greenhouse Gas
Emissions from Non-Industrial Enterprises (Trial) (《工业其他行业企业温室气体排放核算方法与报告指南（试行）》).
11Scope 2 GHG emissions are mainly derived from indirect GHG emissions from purchased electricity and steam consumed bythe company's operations/production processes calculated with reference to the document “Appendix 2: Reporting Guidance onEnvironmental KPIs” of the Hong Kong Stock Exchange. In 2021-2022 the power emission factor adopts the grid emission factor
0.5810 tCO2/MWh in the Corporate Greenhouse Gas Emission Accounting Methodology and Reporting Guide for Power Generation
Facilities (企业温室气体排放核算方法与报告指南发电设施 ) (Huan Ban Qi Hou [2021] No. 9).In 2023 the power emission factor
adopts the grid emission factor 0.5703 tCO2/MWh in the Notice on the management of greenhouse emission reporting for enterprises in
the power generation industry from 2023 to 2025 (关于做好2023-2025年部分重点行业企业温室气体排放报告与核查工作的通知 ).
129Joincare Pharmaceutical Group Industry Co. Ltd.
CSR Indicator Unit 2021 2022 2023
2. Social Responsibility
2.1 Employment
Number of Employees: By Gender Age Group Geographical Region and Job Level
Number of Employees Person 13234 14116 14365
Male Person 7044 7531 7788
Gender
Female Person 6190 6585 6577
30 and below Person 4393 5026 4900
Age 31-49 Person 8042 8204 8536
50 and above Person 799 886 929
Chinese Mainland Person 13218 14097 14348
Geographical
Hong Kong Macao and Taiwan China Person 4 6 5
Region
Foreigners Person 12 13 12
President and Vice President
Person / / 12
(Executive Management)
General Manager Level and above
Person / / 107
Job Level (Senior Management)
Director Level Person / / 252
Manager Level Person / / 1143
Other Employees Person / / 12863
Diversity of Employees
Number of Women in Executive Management Person / / 2
Share of Women in Executive Positions % / 26.7 16.7
Number of Women in Senior Management Person / / 31
Share of Women in Senior Management Positions % / / 29.0
Share of Women in Management Positions % / 34.2 35.4
Share of Women in Management Positions in Revenue-
%/28.827.5
generating Functions
Share of Women in STEM-related Positions % / 55.5 53.7
Number of Ethnic Minority Employees12 Person / 784 789
Hiring
Total Number of New Employee Hires Person / 4351 3999
Number of New Employee Hires by Gender and Age Group
Male Person / 2326 2371
Gender
Female Person / 2025 1628
30 and below Person / 2664 2434
Age 31-49 Person / 1664 1546
50 and above Person / 23 19
Percentage of Open Positions Filled by Internal Candidates
%/14.418.9
(Internal Hires)
12The largest three ethnic minorities of Joincare’s workforce are Hui (1.67%) Zhuang (1.25%) and Tujia (0.50%) and the shares of Hui
Zhuang and Tujia in the management are 0.40% 0.73% and 0.60%.
130Corporate Social Responsibility Report 2023
CSR Indicator Unit 2021 2022 2023
Percentage of Internal Hires by Gender and Age Group
Male % / 54.1 55.7
Gender
Female % / 45.9 44.3
30 and below % / 27.9 34.1
Age 31-49 % / 70.5 62.8
50 and above % / 1.6 3.1
Years Employed by the Company
Average Years Employed by the Company for Male
Year/Person / 8.2 7.4
Employees
Average Years Employed by the Company for Female
Year/Person / 6.4 6.3
Employees
Group’s Turnover Rate13
Overall Employee Turnover Rate % 12 12 12
Including: Active Employee Turnover Rate % 12 12 12
Employee Turnover Rate by Gender Age Group
Male % / 10 11
Gender
Female % / 11 14
30 and below % / 13 16
Age 31-49 % / 9 10
50 and above % / 6 4
Employee Engagement Survey
Employee Engagement % / 87 90
2.2 Health and Safety
Number of Work-related Injuries
Number of Work-related Fatalities for full-time employees Person 0 0 0
Days Lost due to Work-related Injuries- Full-time employees Day 133 214 98
Number of
Lost-Time        Injury        Frequency        Rate        (LTIFR)-        Full-time         Injuries/
/0.250.16
employees Million Hours
Worked
Number of Work-related Fatalities for Contractors Person / 0 0
Days Lost due to Work-related Injuries - Contractors Day / 0 0
Number of
Injuries/
Lost-Time        Injury        Frequency        Rate        (LTIFR)        -        Contractors / 0 0
Million Hours
of Works
13In order to better demonstrate the Group’s human resource management and ensure the consistency of the calculation of internal
management and external disclosure the calculation of the turnover rate in 2023 directly adopted the methodology used by the Group’s
human        resources        management        i.e.        the        number        of        employee        resigned        was        equal        to        the        number        of        permanent        employees        who        voluntarily
resign. Due to the different calculation method of the overall employee turnover rate in 2021 and 2022 we made retrospective
adjustments to the 2021 and 2022 turnover rate in the current year so that the employee turnover rate from 2021 to 2023 would be
calculated on the same basis to ensure that the data are continuous and comparable.
131Joincare Pharmaceutical Group Industry Co. Ltd.
CSR Indicator Unit 2021 2022 2023
2.3 Training and Development
Total Training Percentage for Employees % / / 100
Total Training Hours for Employees Hour 1027812 895409 975834
Training Hours for Male Employees Hour 561602 474502 531945
Training Hours for Female Employees Hour 466210 420908 443889
Average Training Hours per Employee Hour/Person 77.7 63.4 67.9
Average Training Hours per Employee by Gender and Age Group
Male Hour/Person 79.7 63.0 68.3
Gender
Female Hour/Person 75.3 63.9 67.5
30 and below Hour/Person / 63.3 85.2
Age 31-49 Hour/Person / 63.7 58.5
50 and above Hour/Person / 61.6 63.5
Average Training Hours of Employees in Management
Hour/Person / / 19.0
Training
Average Training Hours of Employees in Leadership Training Hour/Person / / 27.3
Percentage of Successful Succession/Promotion to
%//14.5
Management Positions
Average Amount Spent per Employee on Training RMB/Person / 323.7 406.9
2.4 Product Responsibility
Percentage of Total Products Sold or Shipped Subject to Recalls for Safety and Health Reasons
Percentage of Such Products to Total Products Sold and/or
%000
shipped
Number of Products and Service Related Complaints Received
Product-related Complaints Time / 92 147
Medication Queries Time / 20 17
2.5 Business Ethics
Number of Brought and Concluded Legal Cases Regarding
Case 0 0 0
Corrupt Practices
Number        of        Breaches        on        Conflicts        of        Interest Case 0 0 0
Number of Breaches on Money Lanudering or Insider trading Case 0 0 0
Number of Breaches on Customer Privacy Data Case 0 0 0
Number of Breaches on Discrimination or Harassment Case 0 0 0
2.6 Public Welfare Projects
Resource Contributed to the Focus Areas
Financial Donation RMB 10000 2045.6 569.9 1976.2
Value of Donated Goods RMB 10000 864.5 641.8 622.3
132