To cooperate with the international development strategy, deepen the strategic cooperation relationship of the supply chain, and play the role of core enterprises in promoting ESG management, Sino Biopharm ("the Group") has launched the Responsible Supply Chain Project ("the Project") since 2022, carried out and continued to deepen the construction of responsible supply chain system.

In 2022, Sino Biopharm has completed the main work of phase I of the Project, formulated and published the Sino Biopharmaceutical Limited Supplier Code of Conduct and other documents, completed the ESG risk classification of suppliers, and conducted the ESG concept and requirements dissemination among all Tier 1 suppliers and key Tier 2 suppliers.

In 2023, Sino Biopharm further deepened the implementation of the Project in member companies. During the year, the Group's member companies completed the construction of the supply chain ESG management system, established the Supplier ESG Management Working Group ("the Working Group"), further improved and optimized the supplier ESG management system documents, and organized key suppliers to sign the Code of Conduct. As of the end of 2023, the transmission rate of the Code of Conduct of key suppliers reached 100%, and the acceptance rate of the overall key suppliers was more than 90%.

In parallel with system construction, Sino Biopharm focused on the capacity building of the Working Group in 2023 and organized a special training on responsible supply chain on December 27.

This training was for the Working Group of key member companies of the Group. The training content was mainly divided into two modules: The first module was basic information on responsible supply chain, focusing on concept analysis, value analysis, and industry practice, to help the Working Group understand new trends in international and industry supply chain ESG management and deepen their understanding of the Group's sustainable supply chain development concept. The second module was on supply chain ESG audit, which mainly focuses on the specific requirements of the Code of Conduct and the key points of ESG audit, aiming to help the Working Group initially establish the audit capacity and lay the foundation for the substantive implementation of the subsequent supplier ESG management work.

After the training, the working group members actively discussed their takeaways, past experiences, and further expectations for the construction of the Group's responsible supply chain system. In the future, Sino Biopharm will combine the development strategy, give full play to the potential energy of the enterprise, and advocate and promote the sustainable development of the industrial chain.