Contents
ABOUT THIS REPORTABOUT US
Sound Operation forHigh-Quality Development
Inheritance & Innovationfor Energizing New TCM
Responsibility Fulllmentfor Enhanced Welfare
Topic | Leadership in Party BuildingCompany ProlePerformance Highlights in 2023Impression of Yunnan Baiyao
ESG Management
Product Quality
Rural Revitalization
Compliance Management
R&D and Innovation
Community Care
Business Ethics
Customer Services
Social Welfare
Supply Chain Management
Wilderness Guardiansfor Harmonious Ecosystem
Biodiversity Protection061
Addressing Climate ChangeEnvironmental ManagementResource Utilization
Key Performance Statement109
GRI IndexList of Laws and Regulationsand Internal PoliciesFeedback Form
Talent Empowermentfor Employee Growth
Protecting Employees’ Rightsand Interests
Empowering TalentDevelopmentImproving the Well-beingof EmployeesProtecting Health and Safety
BOARD ESG STATEMENTMESSAGE FROM THE CHAIRMAN
001002
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
ABOUT THIS REPORT & BOARD ESG STATEMENT
BOARD ESG STATEMENTYunnan Baiyao highly recognizes the importance of its social responsibility and environmental, social, and governance(ESG) for its long-term and stable operation. The Company and the Board of Directors follow the requirements of the ChinaSecurities Regulatory Commission’s Guidelines for Corporate Governance of Listed Companies and establishes a three-layerESG governance structure “decision-making, supervisory, and execution layers” with clear powers and responsibilities. Wecontinuously strengthen the Board’s supervision efforts and participation in our ESG affairs, actively integrate ESG-relatedmatters into our development strategy, major decisions, and production and operation, establishing e?ective ESG managementand governance mechanisms to o?er organizational support for our smooth implementation of ESG-related initiatives.Yunnan Baiyao places a high value on opinions and suggestions of stakeholders, and continues to identify and evaluate materialESG issues. We communicate and exchange ideas with major stakeholders through various channels. By taking into accountthe regulatory disclosure requirements, industry policies and development trends, and in combination with the focus of ratingagencies, we rank material ESG-related issues, and the ranking results are used as important references for ESG informationdisclosure.This report provides a detailed disclosure of the progress and e?ectiveness of the Company’s ESG e?orts in 2023, and thereport was considered and adopted by the third session of the Company’s 10th Board of Directors on March 28, 2024.
ABOUT THIS REPORT
This report marks Yunnan Baiyao Group Co., Ltd’s 18th consecutive release of a Corporate Social Responsibility (CSR) report. Itgives stakeholders information on Yunnan Baiyao’s social responsibility practices and performance in the areas of management,environment, society, and public welfare in accordance with the principles of standardization, transparency, objectivity, andcomprehensiveness.
This report adheres to the Shenzhen Stock Exchange’s Guidelines for Listed Companies’ Social Responsibility and is inaccordance with the Global Reporting Initiative (GRI) Core Option standard of the Global Sustainability Standards Board (GSSB)as well as the Chinese Academy of Social Sciences’ China Enterprise CSR Reporting Guidelines (CASS-CSR4.0).
The report covers Yunnan Baiyao Group Co., Ltd, as well as its subsidiaries and branches.
The report covers the period from January 1, 2023, to December 31, 2023, and serves as the annual report.
Unless otherwise specied, the nancial data in this report comes from the annual nancial data of Yunnan Baiyao Group Co.,Ltd and its subsidiaries. Other data is sourced from internal statistics and manual compilation. Unless otherwise specied, thecurrency type and amount mentioned in this report are denominated in RMB.
This report was put together by Yunnan Baiyao Group Co., Ltd’s Social Responsibility Management Team and was reviewedand approved by the Company’s Board of Directors (the “Board”) and the Supervisory Committee. The Board of Directors andall the directors guarantee that this report contains no false records, misleading statements, or signicant omissions, and theyaccept individual and joint responsibility for its truthfulness, accuracy, and completeness.
For the sake of simplicity and readability, “Yunnan Baiyao Group Co., Ltd.” is referred to as “Yunnan Baiyao,” “Baiyao,” “theCompany” or “we” in this report.
This report is available in both printed and online versions. The online version is available for viewing and can be downloaded atwww.yunnanbaiyao.com.cn and the Juchao Information website (www.cninfo.com.cn).
Reference Standards
Report Scope
Report Period
Data Sources
Report Reliability Assurance
Statement Explanation
Report Format
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
MESSAGE FROM THE CHAIRMAN004003
MESSAGE FROM THE CHAIRMAN
Zhang WenxueSecretary of the Company’s PartyCommittee and Board ChairmanYunnan Baiyao
We demonstrate social responsibility byo?ering assistance wherever possible
Standardized operation is thecornerstone of our enterprise
Lucid waters and lush mountains areinvaluable assets
We believe a company’s success is not only measured by itsgrowth, but also by its contributions to society and humanity.Corporate responsibility encompasses both economic andsocial aspects. Yunnan Baiyao, as a time-honored company,upholds a strong reputation for responsibility. We prioritizepeople, ensuring product quality, and emphasizing innovation tointegrate TCM into modern living. Customer-centricity drives usto continually enhance service capabilities, actively contributingto the development of inclusive healthcare. Throughcollaborative efforts with suppliers, we establish sustainablesupply chains, supporting the Company’s healthy andsustainable development. We strive to foster a fair, just, anddynamic working environment, valuing employee developmentand growth, aiming for mutual growth for both the Companyand its employees. In 2023, we were honored with awards likethe Best Employer - Most Socially Responsible Award. We carefor the well-being of disadvantaged and vulnerable groups,viewing endeavors such as rural revitalization as an enduringhistorical commitment. Through compassionate, impactful,and targeted charitable initiatives and projects, we consistentlychannel the positive energy generated by our high-quality
We believe that good corporate governance serves as thecornerstone and guarantee for the sustainable and robustdevelopment of enterprises. We always adhere to standardizedoperations in accordance with laws, regulations, and the requirementsof our corporate governance system, continuously improving ourgovernance capabilities and management e?ciency. We consistentlydeepen the development of modern enterprise systems tailored toChinese characteristics, by integrating Party leadership into variousaspects of corporate governance. We emphasize “integration andinclusion,” identify entry points and focuses for Party building anddrive reform and development through high-quality Party buildinginitiatives. Our efforts also focus on continuously enhancing ourcorporate governance structure, ensuring the effective functioningof key decision-making bodies such as the General Meeting, Boardof Directors, Supervisory Committee, and senior management. Weimplement a robust internal control system and risk managementmechanism to ensure operational compliance and resilience. Wealways prioritize the information disclosure of the listed company,adhering to the principles of truthfulness, accuracy, completeness,timeliness, and fairness in disclosing corporate information. Weemphasize smooth communication with investors through multiplechannels and platforms to facilitate constructive interaction, therebyenhancing the transparency of corporate management and bolsteringthe Company’s reputation and brand image.In the three decades since its listing, Yunnan Baiyao hasconsistently pursued innovative development, continuallydeepened reforms, and forged numerous classic businesssuccesses. We will remain committed to the principles of TCMdevelopment, uphold our mission “to guard life and health,”and actively promote the integration of TCM into modern living.Upholding inheritance and innovation, we will inject fresh vitalityinto national brands and TCM products, ensuring the enduringgrowth of our century-old brand. As a national pharmaceuticalenterprise, we will embrace our mission and responsibility,fostering development alongside stakeholders, empoweringemployees, delivering returns to shareholders, and contributingto society.Yunnan Baiyao carries forward its legacy while forging aheadinto the future, never wavering in its journey. Despite marketcompetition pressures, Yunnan Baiyao will remain committedto aligning with national policies and implementing strategicdeployments at the national level. With its spirit of hard work,refusal to settle for mediocrity, grounded and pragmatic approach,and determination to lead and succeed, Yunnan Baiyao willpersistently strive to achieve new heights as a century-old brand.
We understand that nature serves as the fundamental sourcefor all existence and forms the bedrock for sustainable corporatedevelopment. Yunnan, renowned for its rich biodiversity and hailedas the “treasure trove of biological genes” and “home to medicinalherbs,” boasts unique environmental resources conducive to thegrowth of the biopharmaceutical industry. For 120 years, YunnanBaiyao has been deeply rooted in the region, steadfastly embracingthe ethos of green development. On the one hand, we leverageour natural resource endowments to propel long-term, high-qualitydevelopment. On the other hand, we uphold our environmentalresponsibility by prioritizing biodiversity protection. We are dedicatedto fostering a harmonious and symbiotic relationship with nature,thereby contributing to the healthy and sustainable development ofthe entire TCM industry chain. We place utmost importance on theconservation and cultivation of key medicinal materials, harnessingdigital technologies to enhance cultivation, production, andevaluation management processes. The outcomes of these e?ortsare shared across the value chain. Additionally, we have adoptedmodern environmental protection technologies to facilitate the greentransformation of our production processes. We actively promoteenvironmental awareness among our employees, empowering eachindividual to become a proactive participant and steadfast advocatefor environmental protection. We firmly believe that safeguardingthe environment is tantamount to safeguarding productivity,and enhancing the environment is synonymous with advancingproductivity.
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In 2023, Yunnan Baiyao witnessed a significant shift in the external landscape. During this period, we fortified our growthfundamentals, enhanced quality and efficiency, and propelled innovation to new heights. Under the leadership of the PartyCentral Committee and the guidance of Comrade Xi Jinping, and bolstered by the unwavering support of the Communist Partyof China (the “Party”) and the people of all ethnic groups, China demonstrated remarkable resilience in the face of externalpressures and internal challenges during its extensive reform and opening-up journey. China’s economy thus rebounded andadvanced, embracing a robust trajectory of high-quality development. Additionally, 2023 marked the 30th anniversary of YunnanBaiyao’s public listing. Over the three decades, we have navigated market cycles and achieved high-quality growth by anchoringourselves deeply and soaring ambitiously, delivering profound value to stakeholders. As a venerable Chinese brand, we remainsteadfast in our commitment to upholding General Secretary Xi Jinping’s crucial directives on “Inheritance & Innovation” withinthe traditional Chinese medicine (TCM) industry. Driven by our corporate mission to “guard life and health,” we persistentlyinnovate and progress steadily in response to the dynamic changes within the healthcare industry. Drawing on our corporateethos of heritage and innovation, quality excellence, technological empowerment, collaborative partnership, social responsibility,and sustainable development, we consistently rene our governance framework and standards, elevate our industrial footprint,embrace eco-friendly practices, and champion the integration of TCM into modern living. Furthermore, we continuously unearththe intrinsic potential of traditional medical products, infuse fresh vigor into heritage brands and TCM o?erings, while fosteringenduring and sustainable value for society, the environment, and all stakeholders involved.
development back into society. Embracing the principles of “co-creation, shared responsibility, mutual benet, and symbiosis”in our business practices, we deeply respect the interests ofall stakeholders, fostering a culture of mutual success andongoing growth.
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.ABOUT US
Formulated in 1902, Yunnan Baiyao is widely recognized asthe most innovative representative of time-honored Chinesebrands, combining brand, product, and company name in one.It has been shortlisted among the Kantar BrandZ Top 100 MostValuable Chinese Brands for 13 consecutive years. In 2023, itranked rst in the pharmaceutical industry for its brand value.In 1971, Yunnan Baiyao Factory was established followinginstructions from Premier Zhou Enlai. In 1993, Yunnan Baiyaobecame the first listed company in Yunnan on the ShenzhenStock Exchange. It started “Five Unications”
in 1996 and suc-cessfully implemented corporate reformulation in 1999. In 2005,the Company launched the “Center Stabilization and WingHighlighting” product strategy and began implementing the “NewBaiyao, Big Health” industry strategy in 2010. It has graduallydeveloped from a TCM company into one of the leading enter-prises in China’s Big Health industry. Since its listing in 1993,the Company has continuously paid dividends to shareholdersfor 30 consecutive years. From 2016 to 2019, the Companycompleted mixed-ownership reform in two steps, further stimu-lating its development momentum through innovations in sys-tem and mechanism.As a time-honored Chinese brand with a 121-year history, byvirtue of taking Yunnan Baiyao brand as its core, we have pro-gressively expanded our brand portfolio from pharmaceuticalsto include personal healthcare products, original herbal medi-cine brands, and Big Health product brands, creating a rich anddiverse family of brands. Thanks to these brands, the Companyis able to continually broaden its customer base and enhancelong-term brand value.The Company insists on upholding inheritance and innovation,and strives to integrate TCM into modern living. Product inno-vation has covered medicine, health products, active pharma-ceutical ingredients (APIs) and other elds. As of the end of thereporting period, it has 36 product categories and 390 varieties,with 12 products generating more than RMB100 million in salesrevenue each. Notably, its aerosol, woundplast, Yunnan Baiyaopowder and capsule, and toothpaste are stably all top-sellingproducts across the country in their respective segments.The Company has established a business group system todrive the expansion of its existing businesses. These groups in-clude the Pharmaceutical Business Group, the Health ProductsBusiness Group, the TCM Resources Business Group, andYunnan Pharmaceutical Co., Ltd (responsible for pharmaceuti-
ABOUT US
cal logistics operations). Each business group assumes its ownresponsibilities and collaborates with one another, and theirmain businesses have reached a leading level in the industry.With production bases in Kunming, Dali, Wenshan, Lijiang,Wuding, and Wuxi in Jiangsu and Hefei in Anhui, the Companyhas deployed sales channels that cover the entire country.Yunnan Baiyao regards guarding life and health as its corpo-rate mission and is committed to becoming a leading providerof comprehensive pharmaceutical and healthcare solutions.Innovation-driven and digitization-oriented, Yunnan Baiyaostrategically forges ahead towards a high-quality developmentfuture. R&D, marketing, management, and talents are the fourkey capabilities that form the foundation for our systematic en-hancement of scientic management. These capabilities sup-port our Group in completing a comprehensive strategic trans-formation. As a national pharmaceutical enterprise, we embraceour mission and responsibility, fostering development alongsidestakeholders, empowering employees, and contributing to so-ciety with our achievements. Additionally, we have establisheda new user-centered service model through digitalization andplatforms, positioning ourselves as a trusted partner for usersseeking a healthy and fullling life.Looking ahead, the Company will remain steadfast in its com-mitment to the long-term development principle. With an entre-preneurial spirit at its core, the Company will prioritize productexcellence, innovation, and R&D as the driving forces behind itsoperations. By promoting the integration of internal and externalresources and values, the Company aims to gradually trans-form into “a provider of comprehensive pharmaceutical andhealthcare solutions.”
Corporate Culture
Company Prole
企业文化
To guard life
and health
Technologicalinnovation andorganizationaltransformation
To be a leading providerof comprehensivepharmaceutical andhealthcare solutions
Inheriting and innovating, seekingtruth and pragmatism, fulfillingsocial responsibility, taking dueresponsibilities, collaborating withintegrity, and pursuing excellence
Human capital,financial capital,and publicresources
Mission
Strategicdrivingforces
Vision
Values
Valuecreationelements
：
“Five Unifications,” refer to unified production plan, unified trademark, unified approval number, unified quality management, and unified sales.
Management Committee atOperation LevelCommittees under the Boardof Directors
Board of Directors
Functional Support and Sharing Platform
Industrial PlatformIncubation Platform Innovation and
R&D PlatformFunctional SystemFinance SystemCompliance
System
Operation System
Strategic Development Center
Pharmaceutical BGHealth Products BGTCM Resources BGYunnan PharmaceuticalCo., Ltd.Medical Equipment BUSkin Care BUZhiyun Health BUSmart Oral Care BUPrecision AestheticMedicine BUTeayield BUSpecial Channel BUInternational Business BUCentral Research InstituteSmart Technology BU
Investment DepartmentBrand and User Operation CenterComprehensive ManagementCenterPublic A?airs Center Human Resources CenterFinance and Tax CenterAccounting CenterCapital Operation Center
Risk Control Center
Law A?airs and ComplianceCenter
Process Management CenterSupply Chain Operation CenterEngineering Constructionand Development CenterHealth & TourismDevelopment Center
Business Structure
Reform ManagementCommitteeR&D ManagementCommitteeSafety Management
Committee
Strategy CommitteeProduct Portfolio and Investment
Management CommitteeNomination CommitteeAudit Committee (with Audit O?ce)
Remuneration and Appraisal
CommitteeO?ce of Board of Directors
Chief Executive O?cer
Historical Transformations
1902
Mr. Qu Huanzhang, a famousYi doctor, gathered theessence of traditional ethnicmedicine and formulatedYunnan Baiyao, also known asthe “Wanying Baibao Dan.”
1955Miao Lanying, Mr. QuHuanzhang’s wife,donated the secretformula of Yunnan-Baiyao to the country.
1971Premier ZhouEnlai approvedthe establishmentof Yunnan BaiyaoFactory.
1993
Yunnan Baiyaowas listed on theShenzhen StockExchange.
1999
The Company was restructuredto allocate resources based onmarket demands and build asystemic foundation to supportsustained development.
2006The Company’s performanceindicators surged to the top ofthe industry, which enabled theCompany to evolve from anindustry follower to an industryleader.
2010
The operationrevenue exceededRMB10 billion.
2011The rst phase of theCompany’s relocationwas completed, and theheadquarters was relocatedto Chenggong New District.
2015The operationrevenue exceededRMB20 billion.
2016-2017The mixed-ownershipreform of controllingshareholders wascompleted.
2018-2019Merger and overalllisting was completed.The operation revenueexceeded RMB30 billionUnder the leadership of the Board, theCompany initiated an iterative upgradeand innovative transformation drivenby the three pillars of products, innova-tion, and R&D, following its corporatemission of “To Guard Life and Health.”
20202021
2022
Yunnan Baiyao established a strategic goal of“1+4+1”. It expanded its presence in Beijing,Shanghai, Hong Kong, Hainan, and Korea.These branches serve as crucial strategic pillarsfor the Company to leverage global resourcesand serve the needs of the Chinese market.
Yunnan Baiyao strategically forged ahead towards a high-qual-ity development future, driven by innovation and digitization.R&D, marketing, management, and talents were the fourkey capabilities that formed the foundation for our systematicenhancement of scientic management. These capabilitiessupported our Group in completing a comprehensive strategictransformation. As a national pharmaceutical enterprise, weembraced our mission and responsibility, fostering developmentalongside stakeholders, empowering employees, and contribut-ing to society with our achievements.
2023
ABOUT US
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
?In?2023,?Yunnan?Baiyao?recorded?an?operating?revenue?of?RMB?
.
?billion,?an?increase?of??
7.19%
.?Its?net?profit?attributable?to?the?shareholders?of?the?listed?company?was?RMB?
4.094
billion,?an?increase?of??
36.41%
.?Its?weighted?average?return?on?equity?was?
10.51%
??,up?
2.64
?percentage?points.?Its?basic?earnings?per?share?was?RMB?
2.29
per?share
?The Company established a“germplasm resourcenursery for Paris polyphylla” and “Northwest Yun-nan TCM Resource Nursery for Yunnan ProvincialMedicinal Plants.”
The?Company?employs?1,315?ethnic?minority?individuals,?constituting?
14.89%
?of?its?total?workforce
The?Company?invested?a?total?of?RMB
5.68
million?in?safety?measures
The?Company?achieved?a?
100%
?recti?cation?rate?for?hidden?safety?hazards?in?the?working?en-vironment
Employees?of?Yunnan?Baiyao?volunteered?for?a?total?of?15,372hours
The?Company?conducted
safety?education?and?training?sessions,?with?a?total?of?18,660
participants
?Yunnan?Baiyao?donated?materials?worth?RMB?
4.4604
?million
The?Company?recorded?an?annual?comprehen-sive?energy?consumption?of
25,586.54
?tons?of?standard?coalUp to 2022, Yunnan Baiyao has achieved growth in operating revenue for 30 consecutive years, and also distributeddividends to shareholders for 30 consecutive years, with a cumulative cash dividend of over RMB
20.7
billion. In theProt Distribution Plan 2023, the Company proposed to base on1,784,262,603 shares to distribute to all share-holders a cash dividend of RMB
20.77
(including tax) per every 10 shares, and
bonus shares (including tax), with0 shares to be issued to all shareholders from the capital reserve as a bonus for every 10 shares heldWe conducted
9compliance training sessions, achieving a
100%
participation rate among all employees
We allocated an annual R&D investment of upto RMB
344.4415
millionA quality management system was establishedin all production-oriented business groups,achieving a coverage rate of100%
All employees, accounting for
100%
,received product quality and safety trainingacross
training sessions
Nopharmaceutical recall incidentsdue to quality issues
Performance Highlights in 2023
Sound Operation for High-Quality DevelopmentWilderness Guardians for Harmonious Ecosystem
Talent Empowerment for Employee Growth
Responsibility Fulllment for Enhanced Welfare
Inheritance & Innovation for Energizing New TCM
ABOUT US
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Honors and AwardsFortune’s top 500 Chinesecompanies for 14 consecu-tive years
Kantar BrandZ Top 100Most Valuable ChineseBrands in 2022China’s Best ESG EmployerAward in 2022
Awarded the Excellent PracticeCase in Annual Report Perfor-mance Presentation amongListed Companies in 2022Awarded as Huaxia BigHealth Outstanding ESGEnterprise in 2023
Selected into the 2023Investor Relations Manage-ment White Paper jointlyreleased by the ExchangeAwarded the Capital MarketExcellent Listed Company in2023
Awarded the Best Practice Caseof Board Office among ListedCompanies for the rst time
Awarded as a National Tech-nology Innovation Demon-stration Enterprise
Awarded the Best Rual Revital-ization Practice Case among List-ed Companies for the rst timeAwarded the Golden Bull Awardfor Listed Companies - GoldenInformation Disclosure Award2022 for the second time
Hurun China’s Most Historicaland Cultural Brand List 2022
Awarded Best ESG PracticeCase among Listed Compa-nies for the rst time
Continuously awarded MSCI-ESGA rating from 2021 to 2023Top 25 Global Pharma-ceutical Companies inBrand Values for 3 con-secutive years
Top 500 Chinese ListedCompany Brands in 2022
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Impression of Yunnan Baiyao
Important Visits
Wang Chen, Vice President of theChinese Academy of Engineer-ing, and his delegation visitedYunnan Baiyao
Mayor Li Gang of Lijiang Mu-nicipal People’s Government,and his delegation visited Yun-nan Baiyao
CAE academicians and expertspaid a visit to Yunnan Baiyao
The leadership team of People’s Procuratorate of Yunnan Prov-ince visited Yunnan Baiyao for research and exchange
Secretary Yang Jun and Mayor Chen Rui, with theBaoshan City Party and Government Delegation,visited Yunnan Baiyao for cooperation negotiations
Sun Haiyan, Vice Minister of the Inter-national Department, Central Commit-tee of CPC, and her delegation visitedYunnan Baiyao
Delegation of Fujian Provincial Government paid a visitto Yunnan Baiyao
Leaders of Xinjiang Production and Construction Corps,accompanied by provincial and municipal leaders, paid avisit to Yunnan Baiyao
Vietnamese Communist Party Dele-gation visited Yunnan Baiyao
On February 24, 2023, Wang Chen,Vice President of the Chinese Academyof Engineering (CAE), Academician ofCAE, President of the Chinese Academyof Medical Sciences, President of PekingUnion Medical College, and his delegationincluding Yang Ting, Deputy Director of theNational Center for Respiratory Medicine ofChina-Japan Friendship Hospital, visited theCompany and they were received by somedirectors and executives of the Company.
On August 16, 2023, Li Gang, Mayor ofLijiang Municipal People’s Government,and his delegation paid a visit to YunnanBaiyao and they were received by DongMing, director of the Board, CEO andPresident of the Company, etc.
On September 3, 2023, the CAE aca-demicians and experts of the ResearchTour Project at Yunnan Border paid a visitto Yunnan Baiyao, accompanied by LiMalin, Vice Chairman of the CPPCC Yun-nan Provincial Committee, Zhu Zhaoyun,CAE academician and TCM StrategicScientist of Yunnan Baiyao Group, andDong Ming, director, CEO and presidentof the Company.
On October 10, 2023, Wang Guanghui, Secretary of the Party Leadership Group and Prose-cutor General of the People’s Procuratorate of Yunnan Province, and his delegation, includingLiu Zonggen, Deputy Secretary of the Party Leadership Group and Deputy Prosecutor Gener-al in charge of daily work, YangYonghua, Member of theParty Leadership Group and DeputyProsecutor General in charge of daily work, Yang Yonghua, Member of the Party LeadershipGroup and Deputy Prosecutor General, Li Shiqing, Member of the Party Leadership Groupand Deputy Prosecutor General, Miao Qian, Leader of the Discipline Inspection and Supervi-sion Group of Yunnan Provincial Commission for Discipline Inspection and Yunnan ProvincialSupervision Commission stationed at People’s Procuratorate of Yunnan Province and Memberof the Party Leadership Group of the People’s Procuratorate of Yunnan Province, Zhu Chunli,Member of the Party Leadership Group and Director of the Political Department, and WangXianghong, Member of the Party Leadership Group of the People’s Procuratorate of YunnanProvince, Secretary of the Party Leadership Group and Prosecutor General of People’s Proc-uratorate of Yunnan Province Kunming Railway Branch, paid a visit to Yunnan Baiyao. Theywere accompanied by Zhang Wenxue, the secretary of the Company’s Party Committee, andsome directors and executives, and they had exchanges.
On August 16, 2023, Sun Haiyan, Vice Minister ofthe International Department, Central Committee ofCPC, and her delegation visited the headquarters ofthe Yunnan Baiyao Group, and they were receivedby Lu Hongdong, Deputy Secretary of the Compa-ny’s Party Committee, etc.
On September 2, 2023, the Fujian delegation attending the 2023 China In-dustrial Transfer and Development Matchmaking Event (Yunnan) includedKang Tao, a member of the Fujian Provincial Government Party LeadershipGroup, and Chen Fang, Deputy Director General of the Fujian ProvincialDepartment of Industry and Information Technology paid a visit to YunnanBaiyao, accompanied by Zuo Guang, Director General of Yunnan ProvincialLocal Financial Supervision and Administration Bureau, and other leadersfrom Yunnan Province.
On September 12, 2023, Comrade Li Zhenguo, Deputy Secretary of the PartyCommittee and Deputy Political Commissar of Xinjiang Production and Con-struction Corps, along with other 11 leaders and sta? members, paid a visit toYunnan Baiyao Group, accompanied by Comrade Wang Hao, Deputy Gover-nor of Yunnan Province, Comrade Lu Xiaolong, Deputy Secretary of the PartyLeadership Group and Deputy Director of Yunnan Provincial Development andReform Commission, and Comrade Qu Congwen, Deputy Mayor of KunmingCity. They were received by Lu Hongdong, Deputy Secretary of the Company’sParty Committee, etc.
On November 9, 2023, the Vietnamese Com-munist Party Delegation, who came to Yunnanfor attending the political Party dialoguesbetween the CPC and Southeast and SouthAsian countries, visited Yunnan Baiyao, andthey were received by Zhang Wenxue, Secre-tary of the Party Committee of the Company.
On November 5, 2023, Yang Jun, Secretary of Baoshan Munic-ipal Party Committee, and his delegation visited Yunnan Baiyaofor cooperation negotiations, accompanied by Chen Rui, DeputySecretary of Baoshan Municipal Party Committee and Mayor ofBaoshan City, Du Chunqiang, Member of Standing Sub-com-mittee of Baoshan Municipal Party Committee and ExecutiveDeputy Mayor of Baoshan City, Ma Zixing, Secretary of Tengc-hong Municipal Party Committee, Xiong Zhengjie, Deputy Sec-retary General of People’s Government of Baoshan City, YangMinliang, Deputy Secretary General of People’s Government ofBaoshan City. They were received by Zhang Wenxue, Secretaryof the Party Committee of the Company, and some directors andexecutives.
ABOUT US
014013
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
ABOUT THIS REPORT & BOARD ESG STATEMENT016015
Topic
Leadership inParty Building
2023 marked the first yearof full implementation of thespirit of the 20th CPC NationalCongress. It was a crucialyear for Yunnan Baiyao, aswe maintained our strategicdetermination and workedtogether to create a new patternof high-quality development.We firmly adhere to the “twosafeguards” and are guidedby Xi Jinping Thought onSocialism with ChineseCharacteristics for a New Era.We comprehensively studyand grasp the spirits of the 20thCPC National Congress, fullypracticing our responsibilityof serving the country withTCM and achieving newaccomplishments in support ofthe national strategy.
witnessed Yunnan Baiyao’s endeavors to pioneer a newchapter in leading Party building.
Thisyear
marked Yunnan Baiyao’s steadfast strides towards fortifying its foundations and defenses.This year
We have signicantly reinforced our ideological construction, steadfastly adhering to theXi Jinping Thought on Socialism with Chinese Characteristics for a New Era. Our primarypolitical focus has been on learning, propagating, and implementing the principles outlinedin the 20th CPC National Congress. Throughout the year, the Party Committee of theCompany distributed over 10,000 relevant books to all Party members in multiple batches.Guided by the Quarterly Work Guidance Manual for Grassroots Party Organizations ofYunnan Baiyao, we delineated key learning points and objectives for grassroots Partyorganizations to ensure comprehensive understanding and implementation among allmembers. We rigorously enforced the “first issue” system, with active responses fromParty committees at all levels. A total of more than 20 times of centralized learning in thecentral group. For Party cadres, we conducted demonstration training courses and cadremanagement ability improvement training courses focused on the implementation of the20th CPC National Congress’ principles and enhancing the managerial skills of Partycadres, thereby improving their theoretical knowledge and professional capabilities.
The Party Committee of Yunnan Baiyao, being one of the pioneering units in conductingeducational activities centered around “learning and implementing Xi Jinping Thought onSocialism with Chinese Characteristics for a New Era,” is dedicated to following the directivesof the Chinese Central Committee, the Yunnan Provincial Party Committee, and the YunnanProvincial Committee of the CPC Working Committee for Non-public Economic and SocialOrganizations. It adopts an issue-oriented and task-focused approach to comprehensivelydeploy its e?orts. In terms of theoretical learning, we have implemented a list-based learningsystem. Leveraging our own online learning platform, the “Baiyao Academy”, we haveestablished a dedicated education column and a learning platform systematically. We alsocurated a multi-dimensional Party course system, including a wide range of topics, from“Mao Zedong’s Military Thought and Enterprise Management” to “Party’s Self-Revolution”,from “Upholding Public Interests, Strict Discipline, and Leading by Example” to “Exploringthe History and Culture of Yunnan Province”, from “Forever Being in Adversity” to “Takingon Full Responsibility,” and from corporate strategy implementation to project researchand product R&D. We integrated comprehensive thematic education into our Party coursesystem, facilitating active learning and fostering a cohesive thematic Party-day framework.Moreover, we have organized more than 80 small-scale linked and lightweight themedParty Day activities, fostering the joint Party building among industry-university-research(IUR) units and upstream and downstream enterprises. This approach e?ectively leveragesorganizational and institutional strengths across various elds to achieve tangible results in taskimplementation. Throughout the implementation process, leaders of Party organizations at alllevels of the Company have assumed primary responsibility for themed education initiatives,integrating them into the quarterly work guidance manual. The outcomes of these initiativesare incorporated into the quarterly and annual evaluations of branch secretaries and massorganizations, underscoring the leading role of high-quality Party building e?orts.
In 2023we hosted overengaging more thandepartments, and business units across all levels of the Company, tailored to theirspecic operational requirements
Party classes and lectures
participants from Party organizations
3,000
In 2023
Yunnan Baiyao took comprehensive steps to enhance grassroots Party building, focusing on bolstering the political and organizationalfunctions of grassroots Party units while reinforcing their construction across various domains. In 2023, the Company optimized itsorganizational structure, combined with the distribution of grassroots Party members and actual Party building needs, adjusted theorganizational structure of the Company’s Party and mass organization system, and adhered rmly to the principle of “The Partybranches are established wherever our departments are located.” This involved clarifying the affiliation of Party organizations inbusiness sectors such as the Innovative Drug Center, Zhengwu Technology, Peking University- Yunnan Baiyao International MedicalResearch Center (PKU-YBIMRC), Special Channel Business BU, and Beijing Limited Company. Additionally, new Party branches,including the Yunnan Baiyao Pharmacy Party Branch and Zhiyun Health BU Party Branch, were established.
Moreover, the Company implemented a leadership system of two-way entry and cross-appointment, recruiting top talents to reinforcegrassroots Party organization teams and augment their organizational and competitive capacities.To further strengthen Party member management and development e?orts, the Party Committee of Yunnan Baiyao devised a guidingplan based on the principle of merit-based selection, scientically decomposing indicator tasks, and clarifying the main responsibilitiesof Party organizations at all levels to facilitate the development of Party members.
We standardized the process of transferring organizational relationships for Party members, implemented work responsibilities,and enhanced tracking management. Moreover, Yunnan Baiyao conducted a comprehensive discussion on Party memberbehavior norms involving all full Party members, probationary Party members, potential Party members, Party activists, and otheremployees. The discussion primarily focused on delineating “dos and don’ts” for Party members in alignment with the Company’sreform, development, production, and operational reality. Yunnan Baiyao’s grassroots Party organizations, Party members, andother employees actively participated, submitting over 2,000 suggestions totaling over 40,000 words. Through this process, we aimto foster a deeper understanding of Party-member behavior norms and encourage every Party member to embrace their role aspioneers and exemplars within the Company.In September 2023, the Yunnan Provincial Committee of the CPC Working Committee for non-Public Economic and SocialOrganizations appointed Comrade Zhang Wenxue as the Secretary of the Party Committee of Yunnan Baiyao, injecting new energyinto the Company’s high-quality corporate development and the enhancement of the Party building work’s quality and e?ciency.
Following these adjustmentsthe Yunnan Baiyao Group’s Party Committee includedParty subcommittees
Party general branchesParty branches
of grassroots Partyorganizations
we aimed to recruitCurrently, the Company boasts
potential Party members Party activists
full Party membersnew Party memberssuccessfully achieving this target
801,922
Party membership applicants.
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Topic| Leadership in Party Building
100%
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
ABOUT THIS REPORT & BOARD ESG STATEMENT017018
Topic
In 2023, Yunnan Baiyao concentrated on strategy management and execution, reform implementation, and work style constructionthrough investigation and research, with a focus on fostering the development of Party cadres. The Party Committee of the Companytook the initiative to set an example, with its leaders leading research under the theme of “Exploration and Innovation of GrassrootsParty Building in Mixed-ownership Enterprises.” Through these research e?orts, various dimensions of the Company’s Party buildingwere comprehensively understood, enabling a thorough reection on its current status and characteristics, and providing clarity on theParty building in mixed-ownership enterprises. Di?erent members of the Party Committee leadership team led research on di?erenttopics, while each department delved into their respective business areas, addressing bottlenecks and challenges in corporatedevelopment. Special research was conducted on topics such as Party building, rural revitalization, talent team construction, andquality management.Grassroots Party teams conducted in-depth investigations to understand the Company’s needs and development strategies. TheJoint Branch of Strategic Development Center, in collaboration with the Pharmaceutical BG, facing pressure for performancegrowth, conducted research on marketing strategies for key products, design research for grassroots business, and design researchand interviews for provincial-level business. The aim is to propose systematic solutions to ensure future steady growth of thePharmaceutical BG. The Aesthetic Medicine R&D Department was dedicated to business development initiatives. It conductedextensive research and analysis on both domestic and international medical aesthetics industries, trends in therapeutic skincareproducts, and other pertinent elds. Based on these ndings, the Department formulated the Company’s upstream product pipelineplan for the medical aesthetics sector. Drawing from the entirety of the Panax notoginseng industry chain, the TCM Resources BGfacilitated visits for all Party members to Panax notoginseng cultivation elds and processing workshops. This initiative aimed to bolsterresearch e?ectiveness and enable the intuitive identication of issues. Yunnan Baiyao conducted research on 7 major projects, over30 sub-projects, and hundreds of micro-projects. The focus was on leveraging research outcomes to drive signicant advancementsof the business.Over the three decades, the Company has remained aligned with China’s development, evolving alongside the changing times andreforms. We have actively supported, participated in, and promoted China’s reform and opening up, continuously advancing in theBig Health sector. This path we have chosen is the right one, o?ering numerous development opportunities in this eld. In this newera, Yunnan Baiyao is committed to fullling its mission and embracing the call of the times. We will wholeheartedly promote Partybuilding work, leading our high-quality corporate development through the strength of exemplary Party building. Furthermore, we willstrive to elevate our corporate development to new heights, rmly supporting China’s path to modernization, and making signicantcontributions to the great endeavor of building a prosperous nation and achieving national rejuvenation.
Leadership in Party Building
year saw Yunnan Baiyao’s unwavering commitment to nurturing an honest,upright, and integrity-driven corporate culture.
underscored Yunnan Baiyao’s mission and determination to overcome di?culties and seekdevelopment.
reected Yunnan Baiyao’s commitment to serving the people and addressingtheir challenges.
Thisyear
Thisyear
Thisyear
Yunnan Baiyao remains steadfast in implementing the “two responsibilities”, actively explored and promoted the establishmentof a comprehensive supervision system integrating Party conduct and integrity governance, disciplinary inspection andsupervision, integrity risk prevention and control, internal audit, internal control, and business compliance.
By releasing the Strict Disciplines for Yunnan Baiyao’s Management, Yunnan Baiyao’s management solemnly committedto uphold integrity and dedication to the public, take responsibility, prioritize user satisfaction, pursue excellence, embracecontinuous learning and innovation, and foster cooperation and win-win outcomes. Throughout the year, YunnanBaiyao organized 210 pre-employment integrity talks with key employees in crucial positions, requiring them to signthe Commitment to Integrity Practice. We issued 7 holiday integrity reminders, and conducted condentiality warningeducation courses across the Company. The disciplinary inspection work meeting was convened, during which theCompany’s Disciplinary Committee outlined specic requirements for comprehensive and stringent Party governance.All grassroots Party organizations conducted a total of 48 theoretical studies on Party conduct and integrity governanceconstruction, as well as integrity employment warning education sessions, with nearly a thousand participants.
Yunnan Baiyao prioritized high-quality development this year. In its efforts to implement rural revitalization strategies, theCompany embraced responsibility and took proactive steps to enhance the well-being and sense of accomplishment of thepeople. Throughout the year, Yunnan Baiyao convened the special meeting to advance rural revitalization initiatives, aligningwith directives from China’s central government and the Party Committee of Yunnan province. The Company also rotatedthe rst secretary and work team leader stationed in villages and deployed six team members to Xinle Village and ChazhiluoVillage, Pantiange Township, Weixi County. The Company diligently pursued the following ve approaches: increasing incomethrough industry support, strengthening foundations through grassroots building, promoting demonstration projects throughexemplary cases, fostering harmony through public education, and driving development through achievements.
The Company Formulated internal supervision-related systems such as the Comprehensive Risk ManagementSystem and the Accountability Management Measures.Initiated the construction of a comprehensive risk management system, and compiled a comprehensive riskdiagnosis report based on industry realities and the Company’s own situation.Following the risk information classication framework, the Company identied compliance supervision risks,including the risks related to integrity and disciplinary inspection mechanisms, integrity supervision, petitionwork, and violation investigation.Continually improved its internal control system, updating the Internal Control Management Manual annually andenhancing content related to internal supervision and anti-fraud measures.Internal control measures were developed, and responsibilities were consolidated for identifying integrity risks, leading toe?ective implementation of such measures.
In 2023
Yunnan Baiyao’s rural revitalization e?orts were recognized by Xinhuanet as an excellent case, and were included among the“BestPractice Cases”by China Association for Public Companies.
Yunnan Baiyao’s contributions to rural revitalization garnered external recognition.
Yunnan Baiyao was awarded the 14th by China Management Case Sharing Center for the caseof Health Initiatives in Hengduan Mountains: Yunnan Baiyao Promoted Rural Revitalization with Charity Responsibility, which was o?ciallyadded to its case library.
“National 100 Excellent Cases”
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Topic| Leadership in Party Building
Considering the actual needs of its employees, Yunnan Baiyao consistently seeks to provide proactive services. Using massorganizations as a platform, we actively explore more heartfelt initiatives to address the needs and concerns of our people and engagein beneficial and meaningful endeavors for the community. In terms of network and telecommunications security, the Companyorganized a special lecture on “Preventing Telecom Network Fraud,” inviting experts from the Criminal Investigation Brigade ofChenggong Branch, Kunming Public Security Bureau, to educate employees on fraud prevention and network security. For employeescommuting long distances between home and work, the Yunnan Baiyao Labor Union collaborated with Yunnan Jingjian Rail TransitInvestment Co., Ltd to o?er exclusive discounted subway gift cards. Recognizing the challenges such as remote location and harshenvironment faced by employees at the Qidian Branch of Yunnan Baiyao Raw Material Extraction Plant, particularly in transportation,accommodation, social connections, and children’s education, the Company’s labor union advocated for subway shuttle buses andsecured public rental housing and suitable schools for employees’ children, e?ectively addressing their living di?culties.
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Sound Operation for High-Quality Development
Sound Operation for HighQuality Development
Adhering to a robust development philosophy, Yunnan Baiyao hasconsistently enhanced its corporate governance and fortied its riskcontrol capabilities. The Company has established a comprehensiveESG governance framework, reinforced ethical business practices,and communicated proactively with diverse stakeholders to enhanceoperational transparency, thereby ensuring its robust and sustainabledevelopment.
YUNNANBAIYAO
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Sound Operation for High-Quality Development
Yunnan Baiyao places significant emphasis on its environmental, social, and governancecommitments and responsibilities. Integrating the ESG principles into its overall managementand operation, the Company has established and gradually improved a robust ESG managementmechanism and vigorously expanded communication channels with stakeholders, thus enhancing itssustainable development practices comprehensively.
To bolster its ESG management capabilities, Yunnan Baiyao has established a top-down ESGmanagement structure with clear delineation of authority and responsibilities in accordance withregulatory mandates and relevant industry standards, while considering the Company’s evolvingneeds. The structure is anchored by the ESG Working Leadership Group as the main body ofleadership, supported by the ESG Promotion O?ce as the core management, and complemented byspecic ESG working groups tasked with execution and implementation.
The ESG Working Leadership Group, chaired by the Director, Chief Executive O?cer, and President,and comprising Vice Leaders such as the Chief Financial O?cer, Chief Quality and Process O?cer,Secretary of the Board of Directors, and Chief Human Resources O?cer, alongside top managersfrom each functional department and Business Group, spearheads and oversees the Company’sESG governance. This group is tasked with defining the ESG management structure, evaluatingESG strategies, policies, and objectives, and ensuring the e?ectiveness of the Company’s ESG riskmanagement and internal control system, etc.
The ESG Promotion O?ce, comprising personnel from ESG-related departments, functions as thecore management entity carrying out the Company’s ESG initiatives. It is entrusted with the planning,guidance, organization, coordination, promotion, and assurance of ESG-related issues.The ESG Promotion O?ce comprises several ESG working groups, each dedicated to specicareas of responsibility. These include the External Coordination and Information DisclosureGroup, Coordination and Promotion Group, Financial Security Group, Legal Work and PatentGroup, Risk Control Management Group, Brand Promotion Group, Quality Control Group,Employee Care Group, Supply Chain Ecosystem Construction Group, Environmental ProtectionCoordination Group, and Strategy Planning and Decoding Group. Those groups are tasked withexecuting and promoting various ESG initiatives and projects.
Yunnan Baiyao consistently prioritizes and attentively listens to the needs of both internal and external stakeholders.We proactively engage with stakeholders through various communication channels, ensuring thorough collection andresponsiveness to their expectations for Yunnan Baiyao’s sustainable development. Throughout 2023, we fosteredcommunication and exchange with stakeholders via social platforms, WeChat O?cial Account, emails, and other mediums,facilitating a two-way ow of information and prompt response to stakeholder feedback and requirements. These e?ortscontribute to mutually benecial outcomes for all involved parties.
ESGManagement
ESG Governance Structure
Communication with Stakeholders
ESG Working Leadership Group
ESG Promotion O?ce
ESG Working Groups
ESG Working Leadership Group
ESG Promotion O?ce
ESG Governance Structure
External Coordination andInformation Disclosure GroupStrategy Planning andDecoding Group
Supply Chain EcosystemConstruction GroupGreen EnvironmentalProtection Coordination Group
Employee Care GroupQuality Control Group
Brand Promotion Group
Risk Control Group
Legal Work and Patent Group
Financial Support GroupCoordination andPromotion Group
Stakeholder Communication Mechanism
StakeholdersExpectations and DemandsCommunication Mechanism
Standardized operationInformation disclosureRisk controlReasonable return on investment
Compliant information disclosureComprehensive reports at shareholders’ meetingsOn-site, phone, email, interactive platform, and other forms ofresearchSteadily increasing performance, and stable dividendsConsumer rights protectionGuarantee of product quality and safetyCustomer privacy protectionIntellectual property protection
Customer satisfaction surveyProduct recall systemIntegrated customer service systemProduct service and quality assuranceIntegrity in businessSupply chain sustainabilityTimely communication
Standardized management and implementation of contracts andagreementsRegular conferences and networking eventsStrict implementation of the bidding systemCollaboration in social responsibilityGood working environmentWelfare and benetsCareer development
Worker’s CongressTraining, lectures, salons and other communication activitiesThemed networking activitiesEmployee feedback from work summaryCompliance with laws and regulationsCompliant operationPaying taxes in accordance with the lawJoint development
Information disclosureFullling all obligations in accordance with laws and regulationsUndertaking government projectsReporting the Company’s business performance on a regular basisAssociation activities and communicationsFinancial performanceCorporate governanceInformation disclosure
Press release and publicationsMedia interviewsCommunity relationsPromoting health knowledge
Volunteer serviceCommunity activitiesExchanges and interviews
Shareholders and investor
institutions
Clients and consumers
Business partners
Employees
Governmentaldepartments/regulators
Media and community
publicCommunities and NGOs
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Sound Operation for High-Quality Development
Materiality Assessment Process
IdenticationResearchAnalysis
Materiality Assessments
In alignment with the ESG Reporting Guidelines, capital market rating criterions, and standards from reputable domesticand international organizations, as well as the practices of peer companies, Yunnan Baiyao has updated its list of ESGissues and conducted materiality assessments. Throughout 2023, we reviewed and adjusted our ESG material issuesthrough a process of “Identification - Research - Analysis.” This approach yielded 27 ESG issues, culminating in thedevelopment of a materiality matrix for 2023. The matrix serves as the cornerstone of our sustainable management goals.
Based on the Environmental, So-cial and Governance ReportingGuide of the Hong Kong StockExchange and the SustainabilityReporting Standards of the Glob-al Reporting Initiative (GRI), weidentied 27 ESG material issuesby comprehensively reviewingthe Company’s ESG prioritiesand stakeholders’ concerns, andbenchmarking with domestic andinternational peers.
We collected responses from ourstakeholders, including directorsand management, employees, in-vestment organizations, customersand consumers through onlinequestionnaires.
We assessed and ranked the ESGmateriality matrix of Yunnan Bai-yao in 2023 in terms of “Importanceto Yunnan Baiyao’s sustainabledevelopment” and “Importance tostakeholders’ sustainable develop-ment.”
Materiality of ESG Issues
2023 ESG Materiality Matrix of Yunnan Baiyao
Importance to Stakeholders
Importance to Yunnan Baiyao
Moderate materiality
Low materiality
EnvironmentSocialGovernance
High materiality
19110Product quality and safetyInformation security and privacy protectionDiversity and inclusion
22413Emission managementEnergy consumptionEconomic performance
23514Business ethicsDriving progress in the industryIntellectual property protection
24615Health and safetyBiodiversity protectionSupply chain management
25716Environmental managementPhilanthropyResources utilization
26817Addressing climate changeWater resources managementRecruitment
20211Innovation and R&DResponsible marketingEmployee rights and benets
27918Rural revitalizationEmployee training and developmentRisk management
21312Compliant operationMedical accessibilityCorporate governance
ScopeTopics
Materiality
rankingProduct quality and safety
High materialityInnovation and R&D
Health and safetyRecruitmentInformation security and priva-
cy protection
Moderate materialityEmployee rights and benetsSupply chain managementIntellectual property protectionEmployee training and devel-
opmentDiversity and inclusionResponsible marketingMedical accessibility
Low materialityDriving progress in the indus-
tryPhilanthropyRural revitalization
ScopeTopics
Materialityranking
Emission management
High materialityEnvironmental management
Resources utilization
Moderate materialityWater resources managementEnergy consumption
Low materiality Biodiversity protectionAddressing climate changeCompliant operation
High materialityBusiness ethicsRisk managementCorporate governance
Moderate materialityEconomic performance
Environment
Governance
Social
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Sound Operation for High-Quality Development
General Meeting
Board of Directors
Yunnan Baiyao is committed to enhancing corporate governance practices by reningthe governance structure, enhancing risk management, and bolstering internal controlmechanisms. Through these e?orts, we continuously promote standardized and compli-ant management, thereby fortifying the robust foundation for the Company’s sustainableoperation and development.
In strict accordance with the provisions and require-ments of the Articles of Association and the Rules ofProcedure for General Meetings, Yunnan Baiyao hasstandardized the convening and voting procedures ofgeneral meetings, treating all shareholders on an equalfooting, and safeguarding the shareholders’ rights ofbeing informed, participation and supervision. In 2023,the Company held two general meetings.
In strict accordance with the Company Law of the People’s Republic of China, theSecurities Law of the People’s Republic of China, the Guidelines for CorporateGovernance of Listed Companies and other laws and regulations and regulatoryrequirements, and considering the actual situation of the Company’s development,Yunnan Baiyao has continuously improves the governance structure with cleardelineation of powers and responsibilities and scientific and efficient managementstructure, and formed a decision-making and management organization with theshareholders’ general meeting, the Board of Directors, the Supervisory Committee andthe management as the main structure to fully protect the interests of the Company andall shareholders.
ComplianceManagement
Corporate Governance
Corporate Governance Structure of Yunnan Baiyao
General Meeting
Supervisory Committee
ManagementStrategyCommittee
AuditCommitte
NominationCommittee
Remunerationand Evaluation
Committee
held a total of
board meetings
In 2023
In 2023
Yunnan Baiyao actively promotes the standardized and e?cient operation of the Board of Directors in strict accordance with the relevantprovisions of the Articles of Association, the Rules of Procedure for Board of Directors and the Work System for Independent Directors.The Board of Directors consists of a Strategy Committee, an Audit Committee, a Remuneration and Evaluation Committee and a Nomi-nation Committee, which implement the principles of corporate governance from top to bottom to ensure compliance and e?cient opera-tion of the business.Yunnan Baiyao holds regular meetings of its Board of Directors to facilitate the formation of consensus and decision-making plans by itsdirectors on key issues such as corporate governance and strategic direction. Yunnan Baiyao held a total of 7 board meetings in 2023.Yunnan Baiyao has always believed that the independence of the Board of Directors is a key factor in safeguarding the interests ofshareholders and maintaining the stable development of the Company. In nominating and appointing members of the Board, we givedue consideration to factors such as gender, age, industry experience, professional skills and other factors of the members of the Board,and review and evaluate the implementation of the independence of the Board on a regular basis. During the reporting period, YunnanBaiyao had a total of 10 directors, including 6 non-independent directors and 4 independent directors. In February 2024, one non-inde-pendent director was elected at the Company’s rst extraordinary general meeting, and there are currently 7 non-independent directorsand 4 independent directors. The members of the Company’s Board of Directors have experience in various elds such as law, nance,auditing, management, risk control, investment and M&A, and healthcare reform, bringing diversied experience and professional knowl-edge to the Company, which is benecial to safeguard the scientic nature of the Board’s decision-making.
Yunnan Baiyao elects supervisors in strict accordance with the Company Law, the Articles of Asso-ciation, the Rules of Procedure for Supervisory Committee and other relevant provisions. The Su-pervisory Committee consists of 4 current supervisors, including 2 representatives from employeesand 2 representatives from shareholders. Supervisors of the Company independently and e?ectivelyperform their supervisory functions, urge the Board of Directors and the Operation Team to stan-dardize their operations and make scientic decisions, and e?ectively safeguard the legitimate rightsand interests of the Company and its shareholders.
Board of Directors
Supervisory Committee
held
generalmeetings
4 current supervisors
2 representativesfrom employees
2 representativesfrom shareholders
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Sound Operation for High-Quality Development
Seniormanagement
Sta? in key riskcontrol departments
Middlemanagement
All employees
Participating in risk re-porting and discussionto determine the Com-pany’s overall risk pref-erence and major riskproles for the year.
Receiving businesstraining in risk manage-ment, and strengtheningthe business skills of riskcontrol personnel fromthe aspects of risk identi-cation and assessment.
Receiving risk manage-ment training, including thesignificance, cases andpractices of risk manage-ment to deepen the man-agers’ risk awareness.
Receiving risk managementopen courses, learning riskmanagement courses on theCompany’s training platform,and forming a risk manage-ment culture with full partici-pation.
Risk ControlYunnan Baiyao has continually improved its risk management system, conducting comprehensive assessments across all businesssectors to ensure that the Company’s risks remain controllable.The Board of Directors serves as the principal decision-making body for comprehensive risk management, bearing ultimate responsi-bility in this regard. The Audit Committee of the Board, oversees and reviews internal controls and risk management activities. It dele-gates specic internal control tasks to the Risk Control Center and provides specialized reports to the Board of Directors. Emphasizingthe control of sustainability-related risks, we integrate ESG risks such as R&D management, information security, and brand reputationinto our overarching risk management system, enabling unied management and e?ectively enhancing our response capabilities.Yunnan Baiyao has established and continuously rened its risk management and internal control systems, bolstering the system con-struction such as the Internal Control Manual and the Comprehensive Risk Management System, and comprehensively strengtheningthe foundation of internal control. We conduct regular identication, analysis and assessment of internal risks to compile a risk inven-tory, and prioritize key risks for the year based on the risk inventory and the impact of the risks. Through the analysis and monitoring ofkey risks, the risk response plan is formulated to form a closed loop of risk management. Additionally, routine audits or investigationsare conducted to evaluate and enhance the e?ectiveness and adaptability of our risk management mechanisms, which can e?ectivelyelevate our overall risk management prociency.The Company places signicant emphasis on fostering a risk-control culture and cultivating a supportive internal control environment.Yunnan Baiyao encourages active employee participation in risk identication, o?ering a feedback platform for employees to contributeopinions and suggestions. We conduct practical risk management exercises and enhance employees’ risk awareness through trainingsessions on risk management and the regular dissemination of relevant risk prevention knowledge such as internal control and riskmanagement via the “Risk Control Online” platform. These e?orts contribute to a risk management corporate culture, engaging theentire company in risk management endeavors.Risk Management Training of Yunnan Baiyao
150254100
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Rights and Interests of Shareholders and Investors
Based on the principle of open communication, Yunnan Baiyao has established a regular communication mechanism, maintainse?ective communication with shareholders and investors, and takes e?ective measures to protect the legitimate rights and interestsof shareholders and investors.In strict compliance with the listing regulatory requirements, we have constantly optimized online and o?ine communication chan-nels, and built a comprehensive investor communication platform. We regularly organize investor interviews and exchanges to dis-close the Company’s operating conditions and business progress to investors in a timely manner, maintain a smooth ow of informa-tion between the Company and investors, and enhance the communication e?ciency between the Company and the capital market.In addition, we attach great importance to the protection of small or medium-sized investors, actively respond to inquiries, and main-tain close contact with small and medium-sized investors through a variety of channels such as email, telephone and the Internet.In 2023organizedreceived more
than
respondedonline and o?ine investorcommunication activitiesthroughout the year
visits from institutionalinvestors and analysts
questions on the interac-
tive platform
with a responseratio of
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Sound Operation for High-Quality Development
：
Link to the Code of Conduct for Business Ethics: Yunnan Baiyao Group Co. Ltd. - Code of Conduct forBusiness Ethics | Portal of Yunnan Baiyao (https://www.yunnanbaiyao.com.cn/view/ynbyPc/1/46/view/5897.html)
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BusinessEthics
Yunnan Baiyao rmly believes that integrity, equality, and transparency are the corner-stones of the Company’s long-term and stable development. By prioritizing businessethics and integrity, we continuously enhance our reporting management mechanisms tofoster a culture of integrity management in our business practices.
In strict accordance with the Company Law of the People’s Republic of China, the Law ofthe People’s Republic of China Against Unfair Competition, the Anti-Monopoly Law of thePeople’s Republic of China and other national laws and regulations, we have studied andformulated the Opinions on Strengthening and Improving Discipline Inspection of YunnanBaiyao Group Co., Ltd (for Trial Implementation) (the “Opinions”). This initiative aims tocomprehensively advance the rigorous governance of the Party, reinforcing supervision,discipline, and accountability. By elevating the standardization, legal compliance, and nor-malization of the Company’s discipline inspection practices, we provide robust disciplinaryassurance for the high-quality, stable, and sustainable development of Yunnan Baiyao.Guided by the Opinions and anchored in systematic construction, Yunnan Baiyao hasleveraged discipline inspection as a catalyst for practical progress, contributing to thedevelopment of a suite of new system documents. These documents, structured aroundsix key areas including responsibility implementation, supervision and inspection, integrityeducation, complaint reporting, style construction, and risk prevention and control, em-body the Company’s commitment to fostering a culture of compliance. Examples includethe Implementation Opinions for Party Committee and Discipline Inspection CommissionWork Coordination Promotion Mechanism of Yunnan Baiyao, and the Rules of Procedurefor Discipline Inspection Commission of Yunnan Baiyao. Additionally, the Company hasreleased the Discipline Inspection and Supervision Work System Compendium of YunnanBaiyao, encompassing various integrity and anti-corruption related documents such as theWork System of Discipline Inspection Commission, the Work System of Letters and Visits,the Measures for Integrity Risk Control, and the Responsibility System for the Work ofClean and Honest Party Building. These systemic frameworks guarantee Yunnan Baiyao’scompliant operations In 2023, Yunnan Baiyao continued to adhere to the Code of Conductfor Business Ethics
, which claried the Company’s management requirements for all em-ployees (including non-regular employees) on business ethics, and strictly prohibited im-proper acts such as corruption and bribery, improper competition, and conict of interest.Yunnan Baiyao has integrated the requirements of integrity practice into the manage-ment and assessment of key positions, and organizes the management and key positionemployees to sign the Commitment to Integrity Practice, to ensure that the employeesknow and understand the laws and regulations of business ethics. We have claried theprincipal, scope, and content of responsibility of the clean governance of the Party to thepersons in charge at all levels.We take a “zero tolerance” approach to any violation of business ethics, and have formulat-ed t integrity and anti-corruption systems such as the Code of Conduct for Business Ethic.
Governance System of Business Ethics
Special Training on Business Ethics
Special Party Lesson on Thematic Education and DisciplineInspection Working Meeting
Integrity Awareness Cultivation
In terms of building an integrity culture, Yunnan Baiyao organizes training for all employ-ees (including non-regular employees) several times a year. The training included thecollective watching of integrity warning education lms, visits to integrity warning educationbases, knowledge competitions related to integrity education, and integrity thematic train-ing by experts.
In 2023, Yunnan Baiyao carried out the training sessionstitled Enhancing Enterprise Sustainability and Opera-tional Capacity for all the employees. In this training, weinvited external experts to teach the course of “SpecialTraining on Business Ethics” to clarify business ethicsstandards, strengthen the awareness of compliance per-formance, and build a compliance culture.
In 2023, Yunnan Baiyao organized a special Party lessonon thematic education and discipline inspection workingmeeting. More than 160 members of the Party Committeeand the Discipline Inspection Commission attended themeeting, watched a series of educational warning films,and comprehensively enhanced the awareness of integrityand self-discipline.
Special training on business ethics
Special Party lesson on thematic education and discipline inspection working meeting
case
case
Reporting Management
Yunnan Baiyao keeps strengthening its business ethics monitoring and reporting e?orts. We have further standardized the reportingchannels and procedures in accordance with relevant laws and regulations to ensure that complaints and reports are handled in a timelyand e?ective manner. We encourage employees, users and other stakeholders to monitor and report any violations of the law and pro-vide smooth internal and external reporting channels, including telephone, email, website, face-to-face reports. After receiving reportedcases, we will promptly carry out investigations, seriously deal with complaints and reported incidents, take e?ective corrective mea-sures and impose punishment for the cases that cause lawsuits.To protect the rights and interests of the whistleblower, we have specied according to the whistleblower protection provisions of theWork System of Discipline Inspection Commission that the personal information and report content of the whistleblower shall not be dis-closed in any way without the consent of the whistleblower, and the whistleblower shall be fully protected from any form of retaliation.
https://www.yunnanbaiyao.com.cn/subsiteIndex/ynbyEn.htmlEmail: byxfjb@ynby.cnTel: 0871-66203975
Business Ethics Reporting Channels of Yunnan Baiyao
carried out a total of
Yunnan Baiyao hadorganized employees to sign nearlycopies of the Commitment toIntegrity Practice
sessions of compliancetraining(including anti-corruptionand businessethics training)with a coveragerate of
of the employees
In 2023
As of the end of thereporting period
2,
Inheritance & Innovation for Energizing New TCM
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Inheritance & Innovationfor Energizing New TCM
Fully embracing and advancing the rich heritage of TCM culture,Yunnan Baiyao is dedicated to deeply understanding the evolvinglandscape of the pharmaceutical industry. We focus on the enhance-ment of product quality across all fronts and drive innovation to invig-orate our product o?erings. In alignment with customer demands, wecontinuously enhance our customer service capabilities and activelyadvocate for inclusive healthcare development. Collaborating withour suppliers, we cultivate a sustainable supply chain that fosters thehealthy and sustainable growth of the Company.
YUNNANBAIYAO
Inheritance & Innovation for Energizing New TCM
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
case
ProductQuality
Yunnan Baiyao recognizes that product quality and safety are fundamental to theCompany’s long-term operation.
Yunnan Baiyao, with a heritage spanning a century, enjoys a stellar reputation as a lead-ing enterprise in China’s Big Health industry. Renowned as a pioneer in both TCM andorthopedics, we uphold a historical tradition of merging TCM with modern scientific ad-vancements. By deeply understanding society’s health needs, we proactively develop anddiversify our product o?erings, aiming to address contemporary medical and lifestyle chal-lenges. Throughout the year, Yunnan Baiyao has demonstrated proactive exploration andinnovation, pushing boundaries beyond our traditional domains. Through comprehensiveproduct management and synchronized e?orts across various sectors, we have achievedstable and increased revenue in multiple business lines.In 2023, Yunnan Baiyao devised the Brand Structure Management Manual of Yunnan Bai-yao Group to govern publicity management and branding activities. Additionally, we renedour brand strategy and conducted in-depth exploration of Yunnan Baiyao’s unique brandvalue. With a focus on enhancing brand reputation and fostering business connections, weinnovatively propelled Yunnan Baiyao into a new era.
Branding
TraditionalChinese medicine
Modern medicine
combination
Yunnan Baiyao Built the “Pan-Panax notoginseng” Product Matrix
In 2023, the Pharmaceutical Business Group of Yunnan Baiyao had proactively adjusted its strategic lay-outand focused on creating the development of a “Pan-Panax notoginseng” product matrix with strong marketcompetitiveness to meet the diverse health needs of consumers.
Nourishing products such as Qixuekang Oral Liquid and SanqiShenfeng Oral Liquid meet the needs of users for replenishingQi & blood and improving immunity. Thanks to comprehensiveproduct publicity and promotion program, nourishing seriesproducts achieved steady growth in sales volume.
In the cardiovascular and cerebrovascular market, Xue-saitong products, including dispersible tablets and capsules,harness the medicinal properties of Panax notoginseng todeliver notable therapeutic benefits. These products offerpatients a safe and e?cacious treatment option.
Other Panax notoginseng products such as Panax noto-ginseng Dysmenorrhea Capsules and Compound DanshenTablets leverage the benets of genuine medicinal ingredi-ents, covering gynecology, cardiovascular and cerebrovas-cular areas.
Nourishing Series
Xuesaitong Series
Other Series
Nourishing series
Xuesaitong series
Other series
Continually improve our qualitymanagement system
Stringently control end-to-end
quality management
Conduct internal quality cul-ture initiatives
Instill company-wide
quality and safetyawareness at every stage
Yunnan Baiyao’s hair care brand, Yangyuanqing, clinched the top spot in the hair care and anti-loss category, maintaining itsdominance for two consecutive years. With a keen focus on market trends in hair care and anti-hair loss products, the Com-pany instilled a strong sense of condence in users through the use of natural ingredients, contributing to an exceptionaluser experience and heightened brand presence.In terms of quality control, Yangyuanqing products have been recognized with certications such as the “National SuperBrand for Cosmetics” and “Anti-Hair Loss Patent,” a testament to the Company’s stringent management mechanism.In brand communication e?orts, Yangyuanqing deeply integrates content marketing with brand culture. By featuring celebri-ties and showcasing Yunnan’s natural beauty through live broadcasts and short videos set in scenic locales, the brand o?ersusers a glimpse into the cultural charm of Yunnan Province, the plant kingdom.Yangyuanqing remains committed to maintaining its brand prowess in the care products market, promising consumers
Domestic Brand Yangyuanqing Defended the Championship in the Anti-Hair LossShampoo Market
Yangyuanqing won the champion of the haircare and anti-loss category
Live event for Yunnan animal star tracingYunnan plant’s anti-hair loss ingredientsseries
high-quality products while cham-pioning the charm and vitality ofChinese brands amidst the growingtrend of national product promi-nence.
PRODICTQUALITY
case
Inheritance & Innovation for Energizing New TCM
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Yunnan Baiyao has established a systematic quality risk man-agement process for assessing, controlling, communicating andreviewing product quality risks, integrating quality risk manage-ment throughout the lifecycle of its products. The Company for-mulates corresponding product quality risk management plans,carries out risk identification, assessment and control in anorderly manner, conducts regular internal testing and preventivetesting for potential risk problems, and develops risk mitigationmeasures suitable for business development as needed, withan aim to fully guarantee product safety and e?ectiveness. Inaddition, we track the rectication of risk issues and prepare riskidentication and rectication reports. The Company has estab-lished a pharmacovigilance system to monitor and control drugsafety risks throughout the drug lifecycle, thus e?ectively guar-anteeing drug quality and safety. Furthermore, each businessgroup has established a quality risk emergency mechanismsuitable for its own business model, formulated correspondingemergency plans, and optimized the quality risk response anddisposal process to improve quality risk response.
We accept the annual on-site inspection ofthe quality management system by the drugsupervision and administration authorities, con-tinuously improve the quality system, enhancethe management e?ciency, and guarantee theproduct quality.In 2023, we accepted a total of 10 audits ofGMP, GSP, GVP and other quality system certi-cations of the Company by the drug supervisionand administration authorities and achieved100% passing rate after rectication.
In 2023, third-party certication experts carriedout comprehensive certification inspections,covering many aspects such as quality manage-ment, equipment and facilities.
Quality Risk Management
To ensure the safety and effectiveness of its productsand the continuous and e?ective operation of its qualitymanagement system, Yunnan Baiyao has establishedand continuously improved its quality audit mechanism.In terms of internal audit, Yunnan Baiyao organizes thebusiness groups to conduct quality-specific internal au-dits on different topics. For the problems found in theinternal audit, the rectication report will be created, andthe Technical Quality Management Committee and therelevant quality management departments will supervisethe completion of the rectication and the formation of therectification report. In addition, Yunnan Baiyao activelycooperates with quality special audits and annual on-siteinspections conducted by local regulatory authorities.
Quality Audit
Health products
Drugs
In 2023, Yunnan Baiyao’s TCM Resources Com-pany of TCM Resources Business Group, Wen-shan Qihua Company, Sanqi Industry Companyand Lijiang Tai’an Company successfully passedthe GMP compliance inspection organized bythe Yunnan Provincial Drug Administration.In 2023, Yunnan Baiyao’s TCM ResourcesCompany of TCM Resources Business Group,and Sanqi Industry Company passed the specialGSP inspection organized by the Yunnan Pro-vincial Drug Administration.
TCM resources
Other categories
We fully carry out internal audit and cooperatewith supervision and review work to ensure thequality of products.
Product Quality and Safety
Aligned with the quality guidelines of “Quality and Customer First,” the quality mission of“Honoring Quality and Integrity, Inheriting and Innovating, and Striving for Excellence,”and the vision of “Making Quality a Part of Yunnan Baiyao Employees’ DNA,” YunnanBaiyao places paramount importance on the quality and safety of its products.
In strict accordance with the Drug Administration Law of the People’s Republic ofChina, the Regulations on the Supervision and Administration of Medical Devices,the Measures for the Administration of Drug Registration, the Measures for theSupervision and Administration of Drug Manufacturing, the Measures for the Su-pervision and Administration of the Quality of Drug Operation and Use, the Codeof Practice for the Quality Management of Pharmaceutical Operations, the GoodAgricultural Practice (GAP) for Traditional Chinese Medicinal Materials, the Regu-lation on the Supervision and Administration of Medical Devices, the Measures forthe Supervision and Management of Medical Device Manufacturing, the Measuresfor the Supervision and Management of Medical Device Business, the Measures forthe Administration of Registration and Filing of Medical Devices, the Regulation onthe Supervision and Administration of Cosmetics, the Measures for Administration ofCosmetics Production and Operation, the Code of Practice for Quality Managementin the Production of Cosmetics, the Measures for the Supervision and Managementof Toothpaste and other relevant laws and regulations, Yunnan Baiyao has revisedand improved a series of system documents, such as the Quality Culture Outlineof Yunnan Baiyao Group, the Quality Code of Conduct for Baiyao People, and theQuality Management Manual, covering drug traceability, quality control manage-ment, inspection management and other procedures, thus further systematizing andstandardizing the quality management of pharmaceuticals, TCM resources, medicaldevices, cosmetics and other products.Yunnan Baiyao has established an industry-wide quality management system (GMP,GSP, GLP, GVP) in line with the industry’s quality management system, covering allstages of R&D, production and sales, to ensure that the quality and safety of prod-ucts are under control throughout their lifecycle. All of our production-oriented busi-ness groups have established quality management systems strongly related to theirbusiness in strict accordance with the requirements of GMP, GVP, ISO 9001 or ISO13485, with 100% coverage and multiple certications.In pursuit of enhancing the quality management system, Yunnan Baiyao has estab-lished a Technical Quality Management Committee comprising the senior leadersfrom each business group’s quality department. This initiative aims to reinforce thequality and safety responsibilities of each business group, facilitate the systematicdevelopment of technical quality initiatives within each group, and ensure the seam-less implementation of the quality management system across the entire industrialchain. Each business group has established tailored quality and safety assurancesystems and management protocols aligned with its respective developmental tra-jectories, thereby elevating the overall quality management standards of both theCompany and business groups.
Quality Control
Quality Audit Process
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
038037
Yunnan Baiyao has built a quality integration and sharing plat-form for logistics and transportation, and established a shareddatabase and varieties sharing review process, with an aimto transform to digitalization with quality specialization andachieve quality integration. In 2023, to guarantee the qualityof product transportation, Yunnan Baiyao, taking into accountthe actual management situation in the eld of logistics andtransportation, formulated the Transportation ManagementSystem, the Management Measures for Carriers and otherproduct transportation management systems, and revised 84quality management system documents, so as to ensure inan all-round way that the carriers possess the qualicationsfor transportation, and maintain the integrity of the transporta-tion equipment, facilities and the monitoring system.Yunnan Baiyao has effectively reduced the quality risks byconstantly carrying out quality risk prevention and control ofthe whole process of warehousing and logistics, and organiz-ing control measures for the three high risks identied in the
Yunnan Baiyao continuously enhances its emergency responsecapability to deal with drug emergencies, prevents drug safety risks,and carries out the work related to pharmacovigilance managementin strict accordance with the Code of Practice for the Quality Manage-ment of Pharmacovigilance, the Measures for the Reporting and Mon-itoring of Adverse Drug Reactions and other laws and regulations.Yunnan Baiyao has established a sound pharmacovigilance qualitymanagement system and set up an independent pharmacovigilancedepartment, which is responsible for the operation of the pharma-covigilance quality management system and the monitoring, identi-cation, assessment and control of adverse drug reactions and otherharmful reactions related to the use of drugs.
Transportation Security
Pharmacovigilance Management
In strict compliance with the Drug Administration Law of the People’s Republicof China, the Measures for the Administration of Drug Recall and other relevantlaws and regulations, Yunnan Baiyao has formulated its product recall man-agement systems, such as the Drug Recall Management Procedure and theDisposal Management of Drug Safety Incidents, to clarify the scope of productrecall, strengthen the capacity of emergency management of product emergen-cies, and further safeguard the product quality and safety.We continuously improve the product recall management process, set up aproduct recall management system, organize a product recall team according tothe actual needs of the situation, and stipulate the responsibilities and authori-ties of the recall, to ensure that the product recall mechanism can be activatedat any time and implemented quickly. In addition, we classify the products anddevelop recall plans according to the reasons for recall and take appropriatemeasures to deal with the recalled products. Yunnan Baiyao regularly conductsproduct recall simulation drills, requiring employees to familiarize themselveswith the recall process and assess the e?ectiveness of the product recall pro-cess to ensure that product recalls are completed in a timely and orderly man-ner in the event of a recall. During the reporting period, Yunnan Baiyao did notexperience any drug recall due to quality issues.
Product Recall Management
Yunnan Baiyao has continuously strengthened the construction of quality culture to enhancethe quality risk awareness and quality management ability of all the employees. In accor-dance with the relevant laws and regulations of quality management, as well as the require-ments of product regulatory agencies, we actively carry out cultural activities on the themeof quality, aiming to create a positive atmosphere that prioritizes and values quality. YunnanBaiyao and its business groups develop annual quality training plans, and regularly providequality control and product safety training for all employees every year.
Quality Culture Construction
previous year. In 2023, the Company identied a total of 11quality risks, graded and categorized the identied risks, andtook control measures to e?ectively reduce the impact levelof the risks. In addition, the Company has formulated corre-sponding quality risk emergency response mechanism forlogistics and transportation, organized emergency simulationdrills to continuously optimize the risk response and disposalprocess, and enhance the risk response capability and trans-portation guarantee capability.Yunnan Baiyao conducts regular audits and on-site qualityassessment on transportation equipment, transportation qual-ications, product quality assurance capability, etc., and com-piles the Quality Assessment Report. In 2023, Yunnan Baiyaocarried out a total of 4 internal audits in the eld of logisticsand transportation, including 1 comprehensive internal auditand 3 special internal audits, and achieved 100% passingrate after comprehensive rectication.
According to the Quality Culture Outline of Yun-nan Baiyao Group, a special group was set upto promote and implement the construction ofquality culture and organize a number of quali-ty-related activities.On the Company’s platform of Baiyao Academy, weorganized the quality culture training and testing forall members of the business groups. The o?cial sta?training passing rate reached 99.3%.In September 2023, we organized the Quality Monthprogram, and carried out a series of activities such as theexplanation of quality month regulations and on-site pro-paganda, poster publicity of quality slogans, and qualitythematic discussion of “I have a date with quality.”In November 2023, we organized and carried outfun QA games on quality knowledge, created an at-mosphere of “Everyone prioritizes quality, everyonefocuses on quality,” and promoted the comprehen-sive improvement of the quality of the Company’sproducts and services.
We created the annual quality training plan andimplement tailored pre-employment trainingbased on specic job roles.In 2023, we organized a total of 27 special qualitytraining, covering many aspects, such as qualityawareness and quality culture.
Drugs
Health products
We organized and carried out a number of qual-ity culture implementation training projects toachieve the joint construction, sharing, integrationand inclusion of quality culture from upstream todownstream of the whole industry chain.
Other categories
We developed the annual quality training plan,and carried out regular training on new laws andregulations, product knowledge, etc.A total of 11 special training sessions on theknowledge of Chinese herbal medicine varietieswere organized to deeply understand the qualitylevels of key varieties of Chinese herbal medicineand strengthen the awareness of Chinese herbalmedicine quality and safety control.
TCM resources
In 2023, Yunnan Baiyao continued to improve the system of phar-macovigilance documents and formulated a total of 33 pharma-covigilance-related documents. The management system documentclarified the responsibilities of the pharmacovigilance departmentand other related departments, the operation procedure documentinvolved the monitoring and reporting of adverse drug reactions, riskidentification and control, and the vigilance activity document de-scribed the specic requirements of each pharmacovigilance activityto ensure the smooth implementation of pharmacovigilance activities.Yunnan Baiyao also organizes internal audits of the current pharma-covigilance management system every year to ensure the e?ectiveoperation of the pharmacovigilance management system, and com-prehensively improve our pharmacovigilance management capability.
Product Quality Training System
In 2023
100%of employees trained
Conducted a total of
product qualitytraining sessions
040040039
Innovation and R&D talents in the pharmaceutical field arecrucial to the development of Yunnan Baiyao, and are the keydrivers of its innovation and R&D. Therefore, Yunnan Baiyaowill continue to recruit and cultivate innovation and R&D tal-ents in the pharmaceutical field over time, so as to ensurethat it can have an excellent team of R&D talents in the futureand lay a solid foundation for the Company’s long-term R&D.
Yunnan Baiyao constantly enhances the training and devel-opment of its existing sta?. Through the establishment of asound training system, we provide employees with variouskinds of R&D skills training and academic exchange oppor-tunities, encourage the employees to continue to learn andimprove their professional abilities, and encourage them to
Yunnan Baiyao continues to escalate its R&D investment, fostering pharmaceutical research andinnovation to bolster its core competitiveness. We’ve amplied our commitment to basic research, col-laborating with universities, research institutes, and other organizations to fortify our foundational sci-entic research and explore new avenues in drug R&D and technological innovation. This endeavorlays a robust scientic groundwork for the Company’s future product development. Furthermore, Yun-nan Baiyao has augmented its investment in new drug R&D, encompassing drug design, clinical tri-als, and drug safety evaluation, aiming to expedite new drug development and enhance R&D successrates. In 2023, Yunnan Baiyao had 45 ongoing R&D projects, focusing primarily on various diseaseareas including gynecology, orthopedics, respiratory system, oncology, urology and cardiovascular.
R&D Talent Cultivation
R&D Investment
Yunnan Baiyao’s R&Dteam totaled
under 30 years oldbetween 30 and 40years old
above40 years old
above mastersR&D personnelaccounted for
45 research projects
Yunnan Baiyao vigorously carries out the work of introduc-ing and reserving talents. We constantly broaden our talentrecruitment channels, adopting internal recommendation ofspecial incentive channels and external high-quality talentintroduction to accumulate high-level talents for our innova-tion and R&D pipeline. Furthermore, we attract and retainoutstanding pharmaceutical R&D talents by optimizing ourinternal promotion, compensation and benet systems.
As of the end of the reporting period
members
masters
15712
5.97%
undergrates
innovate and make progress in the eld of medicine. More-over, the Company keeps strengthening its cooperation withother enterprises, professional organizations and medicaluniversities in the industry to expand the channels and scopeof exploring talent resources and jointly promote the cultiva-tion of medical talents.
R&D andInnovation
Yunnan Baiyao considers R&D and innovation as fundamentals to sustainablegrowth, paying continuous attention to experiments and cutting-edge technologiesin the global pharmaceutical R&D sector. We have developed a robust productR&D pipeline, continuously advancing to guard life and health while safeguardingour intellectual property rights.
R&D and Innovation Management
As an R&D and innovation-focused company, Yunnan Baiyao has consistentlyincreased investment in R&D and cultivated R&D talents. By utilizing various pro-found models such as independent R&D and collaborative development, we’veestablished a robust and innovative R&D system. This has led to the constantenhancement of our R&D pipeline value and facilitated the development and com-mercialization of multiple products.
Yunnan Baiyao has been committed to the integration of R&D managementsystem and R&D project management. In 2023, Yunnan Baiyao established anR&D management system and an R&D project management system with Yun-nan Baiyao R&D Management Committee as the core, and formulated six R&Dproject management measures, including the Management Measures of R&DManagement Committee of Yunnan Baiyao Group Co,. Ltd, the Specificationon the Management of Entrusted Scientic Research Project Funds, the Man-agement Measures for Internal Entrusted Research in Yunnan Baiyao Group’sR&D Projects, and the Measures for Management of R&D-type GovernmentalProjects in Yunnan Baiyao Group’s Central Research Institute, to effectivelypromote the integration of R&D project management. To further improve theR&D management system, Yunnan Baiyao has comprehensively sorted out andoptimized various R&D management systems.In view of the characteristics of drug R&D, such as long cycle and high uncer-tainty, Yunnan Baiyao has established an incentive mechanism for R&D and in-novation in line with the law of drug R&D, and formulated internal performancemanagement systems such as the Measures for Performance Evaluation ofR&D Projects of the Central Research Institute of Yunnan Baiyao Group, withan bid to fully mobilize the R&D enthusiasm and creativity of project team mem-bers, accelerate the process of R&D projects, and promote the rapid transfor-mation of R&D project results.
R&D Management System
belowundergraduates
Inheritance & Innovation for Energizing New TCM2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Yunnan Baiyao has been actively promoting the transformation of innovative drug R&D achievements in the long run. On one hand, the Com-pany emphasizes the development of exclusive TCM varieties that possess advantages, cater to social needs, leverage technological empow-erment, and create highly sought-after TCM products. On the other hand, the Company formulates strategies to develop multiple innovativedrugs, with a focus on radiopharmaceuticals, to enhance the driving force for sustainable development. During the reporting period, the Com-pany made comprehensive advancements in its radiopharmaceutical pipeline and achieved signicant milestones.
Leveraging its strengths in pharmaceutical R&D, Yunnan Baiyao has formulated short-term, medium-term, and long-term R&D andinnovation strategies.
Project nameProject progress during the reporting periodNext stepSecondary Development ofGongxuen ning Capsule
Clinical observation and research projects on the treat-ment of uterine bleeding with Gongxuening Capsule werecompleted, with 1,791 cases enrolled
It is expected to receive the clinicaltrial report by the end of 2024
Secondary Development ofQixuekang
Studies on improving various discomfort symptoms such asQi and blood stasis in patients were completedClinical research projects aimed at improving heart and vas-cular health were completed, with 70% of patients enrolled.The results of some trials completed were statistically ana-lyzed, indicating a preliminary e?ect on improving vascularhealth
It is expected to receive clinical trialreport by the end of 2024
Secondary Development ofYunnan Baiyao Capsule
Active advancement of clinical studies on promoting bonehealingActive advancement of Yunnan Baiyao’s clinical studies onwound healing treatmentActive advancement of Yunnan Baiyao’s studies on themechanism in promoting bone healing
We will collect evidence-based med-icine clinical evidence of YunnanBaiyao Capsule in the elds of den-tistry, gastroenterology, etc, and ex-plore the safety and e?ectiveness ofYunnan Baiyao’s Capsule in generalpracticeAlternative Studies onAerosol Propellant
Phase I propellant screening studies were completed, withthe proposed propellant preliminarily determined
In-depth studies on the proposedpropellant will be carried outSecondary Development ofShu Lie An Capsule
A multi-center, open-label, randomized, placebo-controlledclinical trial is actively underway to treat patients with TypeIII chronic prostatitis, with various pharmacodynamic studiessteadily progressed
It is expected to determine the par-ticipating study centers, completeinstitutional project approval andethical review, and initiate the clinicaltrial enrollment
INR101 Project
We completed precursor pilot studies, GMP production, labeling process conrmation, quality studies,analytical method validation, and stability studies, and received the notication issued by the NationalMedical Products Administration in February 2024 indicating its acceptance of registered clinical trials fordomestically produced drugs for INR01 injection.INR102 Project
Studies on pharmacodynamic evaluation and tissue distribution on model animals were completed, andpharmaceutical studies were initiated,Both the production of precursor non-GMP and the process pilot study on radioactive preparations werecompleted, and pharmaceutical studies were initiated.INR202/203 ProjectWe initiated studies on candidate molecules for nanoantibodies.
In 2023, the Company continued to increase its investment in R&D, with investment in R&D reaching344million.In the eld of R&D, the Company focuses on optimizing its R&D platform with the CentralResearch Institute at its core. It has established multiple cross-regional collaborative technology inno-vation platforms, e?ectively utilizing the central coordination function of the Central Research Instituteto integrate and coordinate R&D resources across di?erent regions. By leveraging the unique charac-teristics of Yunnan Baiyao, national policies, and economic conditions, and adopting market-orientedapproaches, the Company enhances technology empowerment comprehensively and strengthensthe development of evidence-based medicine and clinical trial-driven drugs. Based on this, the Com-pany scientically plans short, medium, and long-term R&D projects.
Investmentin R&D reaching
million
R&D and Innovation Planning
Progress and Planning of Short-term Projects
Project nameProject progress during the reporting periodNext step
Pan-Panax notoginseng Tablets(PSQ Project)
Phase II clinical studies are underway, with a total of 237 enrolledcases and 211 excluded cases
It is expected to receive the clinical sum-mary report by 2025Fuqi Guben Ointment
Phase II clinical studies were completed, with clinical summary re-port obtained, and Phase II clinical project accepted
Clinical phase III clinical design andpreparation is underwayDevelopment of Two ClassicTCM Preparations (PZ-018, PZ-019)
We completed stud ies on quality standards for pilot processes, in-termediate products, and nished products, preparation and testingof three batches of pilot samples, transfer of relevant GMP docu-ments for production transition batches, and preparation and testingof three production transition batches
It is expected to apply for a listing permitin 2024 (registered and listed accordingto Class 3.1)Approval Documents for Xian-ghuo Spray Preparation forMedical Institutions of YunnanProvince
The required supplementary pharmaceutical studies outlined inthe approval documents have been conducted. In accordancewith the requirements, clinical studies on COVID-19 during therecovery period will be conducted, including the initiation of akick-o? meeting and ongoing patient enrollment
Clinical studies on COVID-19 during therecovery period will be conductedDevelopment of 3 Plasters
Two generic drug plasters have completed pilot studies and sam-ple testing, with product quality standards established, as wellas stability studies, packaging compatibility studies and safetyevaluations conducted. One of them has received a clinical trialapplication acceptance notice
For the gel ointment project, we plan toconduct pilot tests and quality studies, andapply for clinical trials
Progress and Planning of Mid-term Projects
Progress and Planning of Long-term Projects
Progress and Planning of Long-term Projects
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Patent ApplicationsTotal 44
Patent Granted Total 78
In 2023, Yunnan Baiyao
inventionpatents
designpatents
utility model
patents
inventionpatents
designpatents
utility model
patents
Intellectual Property Protection
Collaborative Development of Industry
Yunnan Baiyao has always believed that intellectual property protection is the foundation ofenterprise competitiveness. In strict accordance with the leading international standards anddomestic laws and regulations such as the Patent Law of the People’s Republic of China andthe Trademark Law of the People’s Republic of China, Yunnan Baiyao continuously improvesits intellectual property management system, and actively carries out patent application andmaintenance while making further exploration into the innovative skills of its products.In 2023, Yunnan Baiyao formulated the Patent Management Measures of Yunnan BaiyaoGroup Co., Ltd to guide its patent work, and formulated the Patent Application Processof Yunnan Baiyao Group Co., Ltd, which details the process of patent proposal and theprocess of patent application, to standardize and streamline the management of patentacquisition and maintenance. In addition, we have also issued the Patent ManagementMeasures of Central Research Institute, which covers four dimensions, including patent ap-plication, patent quality, patent risk control and patent value assessment. These measuresregulate patent-related activities at the specic implementation level.Yunnan Baiyao is dedicated to safeguarding its intellectual property rights while also re-specting and avoiding infringement upon the intellectual property rights of others. Wemaintain a “zero-tolerance” stance towards any infringement of intellectual property rights.To avoid the risk of patent infringement, Yunnan Baiyao conducts timely patent risk assess-ments and implements relevant measures based on the assessment results to e?ectivelymitigate patent-related risks. Throughout the year, thanks to diligent patent monitoringe?orts, Yunnan Baiyao identied and appropriately addressed two risky patents, therebye?ectively mitigating the risk of patent infringement.In addition, Yunnan Baiyao attaches great importance to improve employees’ awareness of in-tellectual property protection, and regularly conducts intellectual property training and exchangeactivities to enhance their intellectual property management capabilities.
Patent CategoryClassicationUnit2023
Number of patent applications during
the year
Invention patent/18Utility model patent/17
Design patent/9
Number of patents granted during the
year
Invention patent/25Utility model patent/39
Design patent/14
On April 18, 2023, the Company conducted a training session on patent application and strategy for R&D Centers. Theaim was to raise employees’ awareness of intellectual property rights and enhance their ability to protect those rights. Ex-ternal legal experts were invited to discuss patent deployment issues in the drug R&D process, guiding R&D personnel toleverage intellectual property rights to create economic value and enhance the Company’s competitiveness.
Yunnan Baiyao Organized Training on Patent Application and Strategy forR&D Centerscase
Yunnan Baiyao collaborates closely with scientic research institutions and industry associations, engaging in IUR (Industry-Uni-versity-Research) cooperation and technical exchanges. We actively participate in research projects, industry conferences, andforums, disseminate academic reports, and contribute to the formulation of industry standards. These e?orts aim to enhanceindustry standards and facilitate the transformation and industrialization of scientic and technological achievements.case
case
Yunnan Baiyao Participated in the Standards Research of ChinesePharmacopoeia
Yunnan Baiyao Participated in Research on National and IndustryStandards for Oral Products
In 2023, Yunnan Baiyao joined hands with Yunnan Provincial Drug Administration, Yunnan Food and DrugInspection and Research Institute, Kunming University of Science and Technology, Yunnan University of TCMand other universities, scientic research institutions and regulatory bodies to carry out research and enhance-ment of the standards for Panax notoginseng in the Chinese Pharmacopoeia (2025 Edition) in response to thepain points of the Panax notoginseng industry and the needs of industrial development.
In 2023, Yunnan Baiyao participated in the study and formulation of national and industry standards for oralproducts. At present, a total of four standards have been issued and implemented, including the Safety Evalua-tion Guidelines for Oral Cleaning and Care Products (GB/T 42763-2023), the Evaluation Methods for PotentialCorrosiveness of Oral Cleaning and Care Liquids on Tooth Hard Tissues (GB/T 42761-2023), the LaboratoryTest Methods for Removal of Exogenous Discoloration of Dentifrice in Dental Cleaning and Care Products (GB/T 43576-2023), and the Laboratory Test Methods for Inhibition of Dental Calculus in Dental Cleaning and CareProducts (GB/T 43544-2023).
Inheritance & Innovation for Energizing New TCM
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
In 2023, Yunnan Baiyao actively teamed up with universities and research institutes to carry out wider and deeper multi-disci-plinary IUR cooperation, fully integrating the technologies and talents of the universities with Yunnan Baiyao’s experience in theindustry and products, and jointly exploring cutting-edge technologies in line with the market demand.
Tengchong Scientists ForumFrom December 1 to 3, 2023, Yunnan Baiyao, as a strategic partner, helped hold the 2023 Tengchong Scien-tists Forum with the theme of “Science - Green Development.” In this forum, the award “Tengchong ScientistAward” was set up for the rst time to reward scientists who have made major breakthroughs in the frontiersof science and technology and promoted the progress of science and technology in the world. The forum wasattended by more than 2,000 leading scientists, entrepreneurs and educators in the eld of science and tech-nology, as well as representatives and guests of the nancial sector.
Tengchong Scientists Forum
case
case
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Yunnan Baiyao Hosted “2023 Pharmaceutical Innovation and TechnologyFrontier Forum”
Yunnan Baiyao and Yunnan University of TCM jointly established the“Collaborative Innovation Platform for Drug R&D”
Yunnan Baiyao and Peking University Health Science Center Had In-depth Cooperation in Multiple Fields
From August 8 to 9, 2023, Yunnan Baiyao partnered with Peking University to host the “2023 PharmaceuticalInnovation and Technology Frontier Forum.” Academician Hao Xishan, Academician Qiao Jie, AcademicianZhan Qimin, Academician Li Zhaoshen, and Academician Tian Jinzhou of the Chinese Academy of Engineeringand Academician Zhu Zhaoyun of Yunnan Baiyao attended the forum and made high-level academic reports topromote the innovation and development of the pharmaceutical industry.
2023 Pharmaceutical Innovation and Technology Frontier Forum
Yunnan Baiyao and Yunnan University of TCM jointly built a “Collaborative Innovation Platform for Drug R&D” tofurther strengthen the integration of advantageous resources, enhance the synergy of collaborative innovation, andcarry out wider and deeper exchanges and cooperation in scientic and technological elds such as declaration ofnational key laboratories, academician workstations, and construction of scientic research platforms.
Yunnan Baiyao and Peking University Health Science Center jointly explored the platform of university-enterprisecooperation in R&D and innovation model, and carried out in-depth cooperation in multiple elds to achieve theconnection of the academic innovation chain and the industrial innovation chain. This R&D cooperation platform hasbeen making deployment in the elds of
to promote the transfommation of technological achievements.
case
Yunnan Baiyao and Peking University First Hospital Collaborated toDevelop Innovative RadiopharmaceuticalsYunnan Baiyao and Peking University First Hospital cooperated to form a world-class innovative radiopharmaceuti-cals R&D team. The two parties synergized the resources of the nuclide production platform, conducted pioneeringresearch on radiopharmaceuticals, overcame prevalent obstacles in radiopharmaceutical R&D, achieved the accu-mulation of distinctive core technologies, and facilitated the industrial development of radiopharmaceuticals.
oncology
reproductive
medicine
traumatology
andorthopedics
stomatology
Inheritance & Innovation for Energizing New TCM2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
CustomerServices
Adhering to a customer-centric philosophy, Yunnan Baiyao respects and safeguardsthe legitimate rights and interests of customers. We are dedicated to delivering ahigh-quality service experience, employing diligent e?orts and implementing variousmeasures in customer service management, responsible marketing, and safeguardingcustomer privacy and security. These endeavors aim to continuously enhance thequality of our services.
In 2023, Yunnan Baiyao conducted a training initiative titled Enhancing Enterprise Sustainability and Operational Capacityfor all employees. As part of this program, experts were invited to conduct a training session on Responsible Marketing.The aim was to instill the concept of responsible marketing among employees, reinforce the standardization of work prac-tices, and enhance the awareness of marketing compliance among marketers. The training ensured that all marketingprocesses adhere to compliance requirements in terms of content and methodologies.
Yunnan Baiyao has always promot-ed and marketed its products in aresponsible manner, and has strictlycomplied with marketing-related lawsand regulations, including the Adver-tising Law of the People’s Republic ofChina, the Administrative Measuresfor Medical Advertisements and theMeasures for the Examination ofPharmaceutical Advertisements.We have formulated various systemdocuments, such as the MarketingStandardized Phraseology, within theCompany, to ensure the accuracy ofthe phrases used during the market-ing process, build a transparent andhonest business environment, andprovide customers with high-qualityproducts and services.
To ensure the legal complianceof its marketing e?orts, YunnanBaiyao has formulated a strictcompliance review system andapproval process for market-ing, stipulating that the public-ity content is strictly prohibitedfrom containing exaggerations,deceptions and falsehoods, soas to ensure the authenticity andcompliance of the content in allaspects. We conduct internalself-inspections of responsiblemarketing to identify compliancerisks in a timely manner and en-sure that the marketing processis compliant and e?ective.
To enhance the marketing capabilityand service level of its employees,Yunnan Baiyao has launched a re-sponsible marketing training programcovering all employees to ensure thatit provides customers with a high-qual-ity service experience. We require thatemployees responsible for promotingpharmaceutical products shall befamiliar with standardized marketingterms and receive regular trainingin ethical marketing. In addition, theCompany carries out special train-ing sessions on product quality andmarketing compliance for marketingpersonnel, and organizes lectureson the topic of responsible marketingto strengthen marketing personnel’sawareness of compliance.
Attaching great importance to communication and feedback with customers, Yun-nan Baiyao has established and continuously improved its customer relationshipmanagement mechanism and service response system. In 2023, Yunnan Baiyaorevised its Customer Response Management System to further standardize thespecic processes for responding to customer claims to follow up on customercomplaint processes and outcomes. We have also issued the Internal Communi-cation and Handling Mechanism for New Product Complaints of Yunnan Baiyao tospeed up the e?ciency of handling customer complaint issues, actively follow up oncustomer feedback and improve the quality of customer service, thereby enhancingcustomer satisfaction.Yunnan Baiyao provides customers with smooth and diversied customer commu-nication channels, including telephone, o?cial website and WeChat SubscriptionAccount. This year, we established the national 12315 Internet platform ODRenterprise processing channels to promote customer communication and exchangein an all-round and multi-channel manner. We also follow up and handle customercomplaints in a timely manner. Upon receipt of customer complaints, we will providetimely feedback to the relevant departments, conduct multi-faceted investigations inconjunction with various departments, analyze and identify the causes of the prob-lems, and dene improvement measures. As of the end of 2023, all the customercomplaints had been e?ectively resolved.
Customer Services Management
Responsible Marketing
Organizing Special Training on Responsible Marketing
Special Training on Responsible Marketing
case
Inheritance & Innovation for Energizing New TCM
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Information Security
Expandin
g
M
ar
k
eting
Channel
sE
nsuring
Log
is
tics
Supply
Creatin
g
In
tel
ligent
Healthcare
Improving Health Accessibility Information Security and Privacy Protection
ImprovingHealthAccessibility
Yunnan Baiyao has consistently prioritized safeguarding patients’ health as a core responsibility and views enhancing health accessibility andadvocating universal healthcare as integral parts of its corporate social responsibility. We diligently address patients’ health needs, continuallyexpand marketing channels, and strive to establish and enhance a modernized warehousing and logistics system. Furthermore, we activelyexplore intelligent healthcare solutions to ensure the availability of medical resources in urban, rural, and remote areas nationwide.
Yunnan Baiyao believes that ensuring information security and safeguarding customer privacy are primary prerequisites for de-livering a high-quality user experience. To this end, we have implemented a comprehensive internal system and information se-curity management structure, enhanced the management of information security and e?ectively mitigated the risk of informationand privacy breaches.
To safeguard the Company’s information security and delineate organizational responsibilities for information securitymanagement, Yunnan Baiyao has established a robust organizational structure for information security management.Under the Security Committee, the Digital Technology and Security Committee were formed, tasked with developing in-formation security plans aligned with strategic guidelines and policies, and reviewing the Company’s information securitymanagement system. Additionally, the Information Security Management O?ce operates under the Digital Technologyand Security Committee, taking charge of the arrangement, implementation, and coordination of information securitye?orts. It supervises and audits relevant activities across departments, and authorizes the activation of emergency plansand the formation of information security response teams as needed. At the operational level, the Information SecurityExecutive Team evaluates information security risks, monitors security events, and ensures the stable operation of Yun-nan Baiyao’s business systems.
Yunnan Baiyao strictly complies with the laws and regulations related to information security and personal privacy pro-tection in the places where it operates, including the Cybersecurity Law of the People’s Republic of China, the PersonalInformation Protection Law, the Data Security Law, and the Law of the People’s Republic of China on the Protection ofConsumers’ Rights and Interests. We have formulated and implemented an information security planning strategy for2023-2025 with Yunnan Baiyao’s characteristics to establish and continuously improve the information security systemrequired for our digital transformation.To strengthen the operation and management of Yunnan Baiyao’s information security, Yunnan Baiyao has establishedan information security system with the Information Security Management System as the rst-level management system,and the Information Security Organization and Management Measures, the Management Measures for User Behaviorand Information Security Training, the Management Measures for Information Security Incident and the ManagementMeasures for Information Security Supervision and Compliance as the second-level management measures. Thesystem applies to all the employees involved in the data security and personal information compliance in Yunnan Baiyaoand all of its branches and subsidiaries. In addition, to further strengthen the security control capability of data, we haveformulated the Data Security Management Measures to manage data security in terms of data collection, storage, trans-mission, and access, so as to prevent the occurrence of various types of data security incidents.
Yunnan Baiyao is actively expanding its marketing channels and acquiring additional businessqualications to enhance health accessibility. In response to the “dual-channel” policy promot-ed by the National Healthcare Security Administration, we have investigated viable models forprescription circulation and deeply explored the prescription circulation and sales market bystudying the needs of hospitals, medical insurance, manufacturers, pharmacies, patients, andother related parties. During the reporting period, a total of 27 pharmacies successfully appliedfor “dual-channel” qualications and were approved. Additionally, 22 pharmacies’ prescriptionows were smoothly billed and settled, ensuring the seamless operation of the entire pro-cess. Yunnan Baiyao has improved the accessibility and convenience of medical services byexpanding marketing channels.
Yunnan Baiyao is dedicated to constructing an e?cient logistics platformcentered around a modern supply chain. We focus on enhancing digita-lization, informatization, and systematization. Through active explorationof multi-warehouse coordination models, we achieve linkage and coor-dination between central and branch warehouses, e?ectively integratingwarehousing and transportation resources. This improves distributionservice e?ciency and ensures the stable supply of products.Yunnan Baiyao places signicant emphasis on innovating its businessmodel, actively exploring the “Internet + Medicine” approach. Throughcontinuous optimization of our pharmacy management mechanism,we have developed an integrated and modernized healthcare ser-vice platform, both online and o?ine. This platform encompasses theentire spectrum of medical services, including appointment scheduling,payment processing, home drug delivery, mobile health insurancepayments, and more. By enhancing the medication pathway, we aim tomeet public demand for medication and improve medical accessibility.With continuous and in-depth exploration into grassroots medical careneeds, Yunnan Baiyao has independently developed a smart man-agement platform for grassroots medical care. This platform aids in theinformation construction of medical communities and enhances grass-roots medical and health service capabilities. In 2023, we further en-hanced the platform’s functionality to provide a comprehensive solutionfor medicine management in medical communities, integrating featuressuch as circulation supervision, medical insurance payment, and healthmanagement.
Information Security Governance Structure
Institutional System
Inheritance & Innovation for Energizing New TCM2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
In order to prevent potential information security risks, Yunnan Baiyao has formulated the Management Measures forInformation Security Risk, which species the management requirements for the whole lifecycle, covering informationsecurity-related risk identication, risk analysis and assessment, risk response, risk control and risk monitoring. In 2023,the Company integrated the risk identication and management of information security incidents into the its overall riskmanagement measures. In terms of information security risk response, the Company has formulated correspondingsecurity incident emergency treatment plans and measures, and dened the emergency response communication andreporting process, so as to respond to information security emergencies in a timely and e?ective manner. In addition,the Company encourages all the employees and users to provide timely feedback on information security vulnerabilities,data compliance incidents and other security incidents through official channels. In 2023, Yunnan Baiyao had noincidents of user information security complaints.
Yunnan Baiyao consistently conducts information security testing and inspections, along with monitoring of data securitysystems. These e?orts aim to proactively identify issues and implement management and technical measures to mitigateinformation security risks. In 2023, Yunnan Baiyao conducted a total of seven information security tests, encompassingprotection level assessments and penetration testing.
To comprehensively enhance employees’ knowledge of information security, Yunnan Baiyao provides all employees witha rich variety of online and o?ine training courses on information security. In 2023, Yunnan Baiyao conducted a total of 7employee information security training sessions, with a total of 1,937 trainees and a total training duration of 15 hours.
Risk Control
Security Inspection
Awareness Promotion
case
In 2023, Yunnan Baiyao, in conjunction with the Network and Information Security Defense Detachment of Kunming Cityand the Network Security Brigade of the Chenggong Public Security Bureau, conducted various forms of information se-curity awareness training to help employees understand how to protect personal information, and how to understand andapply the Cybersecurity Law, to enhance the awareness of information security. The training program was widely recog-nized by employees, with a total of 1,287 employees participating in the program.
Yunnan Baiyao Organized Information Security Awareness Training
Privacy Protection
Information Security Awareness Training Activity Site
Yunnan Baiyao understands that the protection of personal privacydata is the basic premise for the Company to build trust with its users.In strict accordance with the Law of the People’s Republic of Chinaon the Protection of Personal Information and other relevant lawsand regulations and industry standards in the place of operation,Yunnan Baiyao has formulated the Explanation on the Protectionof Privacy of User Data, making every e?ort to respect and protectthe rights of users with respect to their personal information, suchas accessing, correcting, deleting, sharing, transferring personalinformation, as well as altering the status of authorization, so that theusers can truly feel that their information is being protected and theirwishes are being respected.
In 2023, Yunnan Baiyao received no complaints related to personal information and privacy.Yunnan Baiyao has established a management mechanism for the protection of users’ personal information, and continuouslyoptimized its technology in the entire process of collecting, storing and using users’ information, so as to enhance its personalinformation protection management capability.Yunnan Baiyao has established a process for handling complaints aboutpersonal information, and conducts appropriate investigations with the process in response to complaints about users’ personalinformation.In addition,we have constantly enhanced employee education on privacy and security, and developed a training mechanismcovering all employees to help them enhance their data protection awareness and professional skills.
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Inheritance & Innovation forEnergizing New TCM
Supplier Audit
Drugs
Healthproducts
TCMresources
Transportationsecurity
In 2023, a total of 71 suppliers were audited, and 36 on-site audits were carried out,including suppliers of raw materials, auxiliary materials, internal packaging materials,external packaging materials, consumables, etc.To develop annual supplier audit plan;In 2023, on-site audits were carried out on a total of 31 suppliers and rectificationrequirements were proposed. The suppliers completed the rectication according tothe requirements.To develop annual supplier audit plan;In 2023, a total of 59 audits were conducted on 23 suppliers, including suppliers ofTCM materials, TCM decoction pieces, auxiliary materials, packaging materials, etc.Except for one supplier which needed to be reviewed after the rectification, all theother suppliers passed the audit.To carry out carrier evaluation regularly;In 2023, a total of 17 carriers were evaluated and all the carriers passed theevaluation.
Supply ChainManagement
Yunnan Baiyao believes that a sound supply chain management system is a strongsupport for the sustainable development of the enterprise. We continuously focus on theESG performance of our suppliers, enhancing our response to supplier risks, and col-laborating with them in diverse forms to establish a transparent and mutually benecialsustainable supply chain.
Supply Chain Management System
Number of Suppliers in 2023
Supplier Access and Classication
Supplier Evaluation
Supplier Audit
(including Hong Kong,Macao and Taiwan)
Suppliers in the local province
Domestic suppliers(other provinces and regionsin Mainland China except thelocal province)
Total numberof suppliers
Overseassuppliers
Keysuppliers
Domesticsuppliers
Domesticsuppliers
In strict accordance with the Tendering and Bidding Law of the People’s Republic ofChina, the Drug Administration Law, the Measures for the Supervision and Administra-tion of Drug Manufacturing, the Good Manufacturing Practice of Drugs, the Regulationon the Supervision and Administration of Cosmetics, the Code of Practice for QualityManagement in the Production of Cosmetics, the Measures for the Supervision andManagement of Toothpaste and other relevant laws and regulations, Yunnan Baiyao hascontinuously optimized and improved 9 internal management measures including theSupplier Management Measures and the Procurement Management Manual, continu-ously enhanced the supply chain management process system, set up strict manage-ment processes in the supplier sourcing, access and elimination, audit and evaluation,performance assessment, communication and exchange of information to ensure thatclosed-loop management is achieved in the whole process of supply chain.
Yunnan Baiyao implements a rigorous and standardized supplier admission process,emphasizing equal consideration for quality, cost, delivery, and service when selectingsuppliers. This involves reviewing supplier qualications and evaluating their capabil-ities. After completing the access process, we will screen and categorize our existingsuppliers, including strategic suppliers, core potential suppliers, and regular suppliers, inaccordance with our internal system, such as the Supplier Grading and CategorizationManagement Rules.
Yunnan Baiyao regularly organizes supplier assessment and evaluation, conducting comprehensive performance evaluationthrough multiple dimensions, including quality, cost, service, after-sales, technology and innovation. For suppliers with poor as-sessment results, we urge them to carry out rectication and follow up on the e?ectiveness of their rectication until it is complet-ed. In addition, we have set up a sound and e?cient complaint mechanism. Suppliers who disagree with the assessment resultscan give feedback on their problems through the complaint channel. Upon receipt of the complaint, we shall promptly processand give feedback on the outcome of the supplier’s complaint.
Yunnan Baiyao regularly carries out supplier audits and formulates supplier on-site audit plans. Based on the audit results, wewill work with suppliers to summarize and compile the Supplier On-site Audit Assessment Report, analyze their major issues,propose corrective actions, and ensure that suppliers take steps to resolve issues within a reasonable period of time to meetcompliance requirements.2942931Yunnan Baiyaohad suppliers
Suppliers located inMainland China
Supplier inoverseas regions
(including Hong Kong,Macao and Taiwan)As of the end of 2023
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Supply Chain ESG AccessAudit and Assessment
Laborpractices
Requirement
Requirement
Requirement
Requirement
Requirement
3: Major supplier means the supplier from whom the purchases account for more than 80% of total purchases.
Supply Chain ESG ManagementOn the basis of safeguarding the quality and business of its suppliers, Yunnan Baiyao has integrated ESG factors into its sup-plier access and management processes, built a supplier ESG assessment system, and carried out assessments of suppliersacross various criteria including labor practices, business ethics, quality standards, safety measures, and environmental impact.
To comply with national labor lawsTo ensure legal recruitment and no child labor or forced Labor
To sign documents with the Integrity Procurement Agree-ment and the Integrity AgreementTo strictly restrain employees from violating the principle ofgood faith by embezzlement, deception and bribery, unfaircompetition or other corruption and other violations of the law
To establish e?ective quality management systemTo be certied to IATF 16949, ISO 9001, ISO 13458or the equivalent for qualityTo review product quality and issue relevant reportsTo carry out quality improvement activities
To meet the safety requirements for production, storageand transportation of the productsTo be certied to ISO 45001 or the equivalent for occupa-tional health management systemTo meet information security requirements
To comply with national and regional environmental laws and regulationsTo obtain ISO14001 or equivalent environmental management system certification,green product certication mark, ESG rating certication for packaging materials, etc.To assess the environmental impact of production processes and productsTo promote energy-saving and emission-reduction production methodsTo use recyclable and green packaging materials
Business
ethics
Safety
SafetyQuality
Environment
Environment
Yunnan Pharmaceutical Actively Responded to ESGPrinciples in Cold Chain Management
The carrier of the Yunnan Pharmaceutical adopted in-telligent scheduling and distribution combined with theinsulation strategy of “refrigerated truck as the mainmeans, room temperature truck + incubator as the aux-iliary means” for transportation to reduce the impactof cold chain transportation on the environment. TheCompany made great efforts to improve transportationefficiency and reduce energy consumption and carbonemissions by optimizing time and equipment usageduring cold chain transportation.
Yunnan Baiyao implements ESG principles in its supply chain managementand selects partners that meet the requirements through ESG reviews ofpotential suppliers. We consider the impact of ESG factors such as quality,safety, environmental certification, business ethics, and labor rights, andcarry out regular inspections and supervision to ensure that they meet theappropriate standards. We continuously monitor and promote our suppliersin terms of environment and safety, and develop synergies with our suppli-ers to achieve win-win cooperation. In addition, we conduct ESG (includingquality, safety, environmental protection, etc) training activities for suppliers,and focus on reviewing and analyzing the quality of annual deliveries bymajor suppliers
at the annual supplier meeting to help suppliers e?ectivelyimprove their ESG performance.
Cold Chain Management of Yunnan Pharma-ceutical
case
Quality
Inheritance & Innovation forEnergizing New TCM
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Supplier EmpowermentYunnan Baiyao attaches great importance to the cultivation and improvement of supplier capabilities. We carry out diversiedsupplier training and exchange activities, and cooperate and interact with upstream and downstream supply chains to jointlysolve problems related to product quality and safety, and build a stable and high-quality industrial supply chain.
Annual Supplier Training of Yunnan BaiyaoOn December 20, 2023, Yunnan Baiyao held a supplier training event at Baiyao Park in the head o?ce. In theevent, the Company invited the quality departments of the Pharmaceutical Business Group and the Health Prod-ucts Business Group to educate quality experience, covering the promotion of Yunnan Baiyao’s quality culture, therequirements for the revision of pharmaceutical packaging materials, the requirements for supplier-related review ofregulatory requirements for toothpaste and cosmetics-related regulatory changes and material management, andother supplier-related content.A total of 599 quality and production personnel participated in this training through o?ine or online channels, cov-ering more than 200 suppliers, i.e. more than 80% of the Company’s important supplier base. The training waslaunched based on the Company’s focus and changing trends in quality management last year, aiming to help un-derstand the dynamics of Yunnan Baiyao’s quality management, improve the quality management capability of sup-pliers, promote quality cooperation between suppliers and Yunnan Baiyao, and promote the development of qualitymanagement in the direction of sustainability and high quality.
Supplier Training Event
case
Yunnan Baiyao Organized a Packaging Optimization Seminarfor Package-related Suppliers
Supplier Training on Standardized Planting Techniques
In 2023, we held a packaging optimization seminar. In response to the leakage issue with mouthwash bottles,we convened discussions with the quality department, the suppliers of mouthwash bottles and other relevantpersonnel to devise an improvement plan, and successfully solved the problem of leakage.
In May 2023, Yunnan Baiyao organized on-site training for suppliers on standardized planting techniquesand management of Angelica sinensis, with an aim to e?ectively improve the planting yield and quality bystandardizing suppliers’ planting technology. A total of 52 suppliers participated in the training.
Packaging Optimization Seminar for Suppliers
The Site of Supplier Training on Standardized Planting Techniques
case
case
Inheritance & Innovation forEnergizing New TCM
Wilderness Guardians for Harmonious Ecosystem
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Wilderness Guardiansfor Harmonious Ecosystem
Yunnan Baiyao adheres to green operations, continuously enhancingour environmental management system. We comprehensivelystrengthen energy, resource, and waste management, improvingresource utilization efficiency. We explore avenues for low-carbontransformation to achieve synergistic and sustainable development ofour business and the ecosystem.
YUNNANBAIYAO
Wilderness Guardians for Harmonious Ecosystem
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
By combining the driving e?ect of TCM materials industry withthe development of its own biopharmaceutical industry, theCompany is committed to promoting the cultivation of TCMmaterials in poor areas with the development of biomedicineindustry. In the past three years, by o?ering technical servicesin the whole process in the “company + base + farmers”model, we launched TCM materials planting industry supportactivities in Weixi, Fugong, Chuxiong, Huize and other areasfor poverty alleviation, and promoted the cultivation of nearly150,000 mu of authentic TCM materials, covering nearly 20varieties of TCM materials, such as Paris polyphylla, Panaxnotoginseng, sa?ower, Poria, Angelica sinensis, Radix aco-niti agrestis, and Fructus amomi, and creating nearly 20,000jobs in rural areas. We not only helped farmers obtain stableincome and achieve industrial wealth, but also made TCMmaterials planting a new revenue growth driver for farmers inremote mountainous areas.
BiodiversityProtection
Yunnan Baiyao recognizes that TCM materials are the cornerstone of the Company’s sustainabledevelopment. In strict accordance with the Regulations of the People’s Republic of China onthe Protection of Endangered Wild Plants, the Regulations for the Implementation of the DrugAdministration Law, the Law of the People’s Republic of China on TCM, and the Qinghai-TibetPlateau Ecological Protection Law of the People’s Republic of China and other relevant laws andregulations, the Company conducts operational practices grounded in authenticity and productionarea distribution characteristics. These include establishing and operating bases for TCM materials,actively enhancing the protection and protection management of authentic herb resources, andtaking proactive measures to conserve endangered herbs. These e?orts aim to steadily elevate thequality of TCM materials and enhance supply capabilities.In recent years, we have carried out seed preservation and cultivation of key medicinalmaterials, introduced digital means to empower the evaluation and management of TCMmaterials, and shared our achievements throughout the value chain, so as to promote thecoordinated and healthy development of the TCM industry and the ecological environment.As at the end of the reporting period, all the varieties utilized by Yunnan Baiyao are legallycultivated articial cultivars, fully compliant with the regulations outlined in various internationalconventions
.
Empowering Conservation of TCM Materials through Digitalization
Articial Cultivation of Resource Varieties
Promoting Rural Revitalization through TCM Development
Leveraging its extensive experience and resources in the TCM industry, Yunnan Baiyaohas made great e?orts to reduce the risk of biological endangerment by utilizing its existingtechnology and foundation to build a number of species resource nurseries for TCM materialsof local specialty while carrying out the production and operation of traditional TCM materials.
With reference to the national medicine monograph Yulong Materia Medica, the “LijiangHerb Garden” has been built covering an area of 180 acres, which includes the medicinalplant eld display area, rare varieties planting area, and greenhouse area. The collection ofspecies has already amounted to 220 kinds.
Initiated by Tai’an Company at the planting end of TCM materials, 21 species (30 publiclypublished) have been collected up to now, containing 53 variants or populations of theParis polyphylla, making it the germplasm resource nursery with the largest number ofspecies and the largest number of living plants preserved in the world at present. Theresource nursery covers most of the Paris polyphylla species distributed in China, and hasin place a comprehensive seed preservation mechanism integrating live species, genepreservation and propagation, which provides a good platform for resource preservation,scientic research, popularization of science and industrial development of Paris polyphylla.
Germplasm resource nursery for Paris polyphylla
Northwest Yunnan TCM Resource Nursery for YunnanProvincial Medicinal Plants
4:The Scientic Committee on Endangered Species of the People’s Republic of China (“SCES”) The Scientic Committee on Endangered Species of the People’sRepublic of China consists of a committee and o?ce. The o?ce is attached to the Institute of Zoology, Chinese Academy of Sciences. Convention on International Trade inEndangered Species Wild Fauna and Flora (“CITSES”), an international convention, was signed in 1973 in Washington, the capital of the United States, so it is also calledthe “Washington Convention.”
The Paris polyphylla of Tai’an Company
In 2023, embracing the principles of “market-driven initiatives,high-quality traceability, distinguished character and sustainablehealth,” Yunnan Baiyao, renowned for its inheritance andinnovation, embarked on a mission towards high-qualitydevelopment. Its sub-brand Qiancaotang established the LijiangDigital TCM Materials Industry Platform. This platform servesas a Big Health service system, deeply integrating the primary,secondary, and tertiary industries, i.e. seed breeding, cultivation,industrial production, educational tourism, and wellnessexperience. Its primary focus lies in researching the introduction,
The development of TCM materials faces many challenges,such as the slow progress in the selection and breeding of goodseeds of medicinal herbs, fewer strains of good varieties, seriousdegradation, lagging behind in the purication and restoration ofvarieties, poor varietal uniformity, the lack of breeding bases ofTCM materials with specialized and standardized management,the lack of quality standards for seeds of TCM materials, and soon. In view of these problems, Yunnan Baiyao, after more than20 years of continuous research on the authentic TCM materialsof Yunnan area, has actively carried out basic research related tothe selection and breeding of new varieties of TCM materials. Wehave declared 12 new varieties of TCM materials and 3 excellentclones, and promoted the cultivation of nearly 150,000 mu ofauthentic TCM materials in Yunnan.
domestication, and artificial cultivation of wild plants, providingcorporate customers with sustainable and high-quality rawmedicinal resources at reasonable costs. The platform extendedtechnological and market resources to farmers, deliveredhigh-quality health products and services to consumers, andestablished a traceable closed loop within the industry chain.This initiative propels the coordinated development of upstreamand downstream sectors, fostering a mutually beneficial TCMecosystem anchored on core resources.
In addition, we’ve fostered a collaborative ecosystem forTCM resources, centered around medicinal herb bases andvarieties, involving growers, industrial enterprises, governmentaldepartments, and scientic research institutions for mutual benetand sharing. Focusing on base construction and taking technicalsupport as the starting point, long-term mutually beneficialdevelopment as the principle, and sustainable resource securityas the goal, the Company is committed to cultivating superiorvarieties, strengthening the construction of authentic medicinalmaterials base, establishing technical specifications, andimproving quality standards. Establishing a strategic framework of“warehousing, cultivation, and technological preservation,” we’vefortied a robust and sustainable resource system for our brandedherbal medicines, securing a steady supply.
Figure: Yunnan Baiyao Drove Farmers to Plant TCM Materials
Building Resource Nurseries for TCM Materials
220 kinds
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Typeof risks
Risk descriptionCountermeasures
Acuterisks
Frequent occurrence of extreme weather such as oods, high tem-peratures and typhoons, which will lead to:
1.Power supply and water supply risks, increasing the uncertainty
of stable production and operation of Yunnan Baiyao;
2.The supply risk of TCM materials, which may lead to the di?cult
harvest of raw materials on schedule and the rise of drug prices;Employee health and safety risks, which may pose a threat to thenormal operation of production sites and factory employees.
To pay close attention to weather forecasts andget extreme weather information in time.To make a comprehensive consideration of retailand large suppliers in the selection of suppliers,so as to ensure supply stability.
Chronicrisks
The gradual global warming and rising sea levels, which will cause:
1.The change of the growing environment of TCM materials, which
may a?ect the quality and e?cacy of TCM materials;Global water quality changes and the emergence of new pollutants,a?ecting normal production and operations.
To stay tuned for reports on warming trends.To gradually implement climate change responseactions to enhance the Company’s ability to with-stand global warming.To conduct conservation research on the import-ant medicinal materials involved in the Compa-ny’s business, understand their suitable growthconditions, and carry out articial cultivation baseexperiments.
Policy andlegal risks
The increasingly tight regulatory requirements for wild animals andplants at home and abroad will lead to restrictions on the use ofTCM materials and the normal production of products.
To carry out the substitution research of medicinalmaterials to reduce the probability of drugs beinga?ected.To plan for reservation and processing of keyTCM materials in advance.Carbon trading, carbon tax, environmental protection tax and otherpolicies are gradually implemented, green low-carbon transforma-tion is imperative, and higher requirements are put forward for Yun-nan Baiyao’s energy conservation and emission reduction practice.
To develop green electricity applications such asphotovoltaic power generation.To use low-energy consumption equipment whenpurchasing new equipment.To conduct energy saving renovation of the exist-ing equipment.Regulators have higher requirements for the accuracy of environ-mental data declared by enterprises, increasing the pressure of en-vironmental information statistics and compliance risks of YunnanBaiyao.
To make information disclosure in strict accor-dance with compliance requirements.To monitor important environmental indicators inthe process of production and operation.Technicalrisk
As the government pays more attention to low-carbon matters,Yunnan Baiyao needs to invest more costs in low-carbon produc-tion and operation.
To continuously promote the transformation tolow-carbon and energy-saving technologies.To reduce low-carbon input costs through re-source recycling.To select more energy e?cient raw materials andsuppliers.MarketRisk
The market has presented more preference for low-carbon andenergy-saving companies and products, increasing the pressure onYunnan Baiyao’s low-carbon production and operation.
To study and judge the market trend, timely adjustthe business deployment.To carry out lightweight transformation of pack-aging materials to show the Company’s greenawareness to consumers.ReputationalRisk
If the e?orts to address climate change do not meet the expecta-tions of stakeholders, it may result in a negative impact on YunnanBaiyao’s reputation.
To strengthen communication with stakeholdersand fully understand their demands.To actively promote the Company’s progress ingreen and low-carbon aspects, such as greenpackaging, sustainable procurement, and circulareconomy.
AddressingClimate Change
Climate change presents a common challenge for humanity, demanding urgent ac-tion to mitigate its e?ects. Yunnan Baiyao supports global climate action and disclos-es its climate change governance system, identication of risks and opportunities,management and objectives according to the framework and recommendationsof International Financial Reporting Sustainability Disclosure Standard No. 2 - Cli-mate-Related Disclosures issued by the Task Force on Climate-Related FinancialDisclosures (TCFD) and the International Sustainability Standards Board (ISSB).Governance and StrategyYunnan Baiyao attaches importance to the topic of addressing climate changewithin its ESG initiatives, endorsing its green and low-carbon transformation, andcontributing signicantly to achieving carbon neutrality.Yunnan Baiyao is actively exploring methods to decrease greenhouse gas emis-sions in its construction and operations, while also promoting energy conserva-tion and emission reduction awareness. The Company encourages engagementfrom its employees, suppliers, consumers, and partners in global climate action,fostering collaboration to achieve the objectives of “carbon peaking and carbonneutrality.”
Yunnan Baiyao Aerosol Changed to Environmentally FriendlyDispensing AgentYunnan Baiyao has taken the initiative to fulfillthe environmental responsibility and is committedto reducing the impact of product production ongreenhouse gas emission. The Company hasbeen committed to the selection of a more envi-ronmentally friendly aerosol dispensing agent.Based on the concept of environmental protec-tion, we replaced Yunnan Baiyao Aerosol withmore environmentally friendly raw materials inaccordance with the requirements of environmen-tal protection policies and pharmacovigilance reg-ulations, completing the industrialized substitutionof environmentally friendly dispensing agents forHFC hydrouorocarbons. The change to environ-mentally friendly dispensing agents involved anumber of challenges such as process improve-ment, quality research, registration and declara-tion. The research was mostly groundbreakingfirst-of-its-kind approaches, and also leadingthe way in pharmacological and toxicologicalresearch in the pharmaceutical aerosol industry.This project has been recognized with a Certifi-cate of Merit for “Valuable Contributions and Ef-forts in Protecting the Ozone Layer” issued jointly
Yunnan Baiyao was recognized with a Certicate of Meritfor “Valuable Contributions and Efforts in Protecting theOzone Layer”
by the ve ministries of UNDP, UNEP, UNIDO, WB andFECO. Building on our research into substituting HFChydrofluorocarbons, Yunnan Baiyao is actively devel-oping the next generation of environmentally friendlydispensing agents and enhancing green, low-carbon,and eco-friendly packaging. These e?orts aim to fosterindustry-wide green development and contribute to eco-logical environmental protection.
Climate Change Risk Identication and Response
Risk Management
Yunnan Baiyao will consider the implications of climate change on the TCM industry, national policies, and industry trends. Wewill analyze climate-related risks and opportunities in alignment with our business strategies, evaluating their potential econom-ic, regulatory, reputational, and operational impacts on the Company.
Physical
risks
Transfor-
mation
risks
case
Wilderness Guardians for Harmonious Ecosystem
5:The calculation of greenhouse gas emissions was based on the IPCC Greenhouse Gas Emissions Accounting Methods and ReportingGuidelines for IPCC Green Gas Emission, in which the electricity consumption was converted by referring to the national power gridaverage emission factor of 0.5703tCO2/MWh issued by the Ministry of Ecology and Environment in 2022.
Lightweight packaging
materials
Emission managementimprovement
Energyconservation
We recognize that while climate change poses these risks to businesses, it also creates unprecedented opportunities.Climate Change Opportunities
Opportunities
Resource E?ciencyOpportunities to improve energy e?ciency
With the continuous introduction of lower carbon technol-ogies, Yunnan Baiyao can use emerging technologies tooptimize energy consumption in its own operation process,improve resources and energy e?ciency in production andoperation process and reduce operating costs.
Description of opportunities
Products and ServicesIndustry development opportunities
The growing concern and preference for green products andeco-friendly factories by both the government and consum-ers present an opportunity for Yunnan Baiyao to enhanceits market competitiveness by promoting its commitment tosustainability.
Description of opportunities
Greenhouse Gas Emissions of Yunnan Baiyao in 2023
In response to the national goal of “carbon peaking and carbon neutrality,” YunnanBaiyao is exploring the possibility of achieving carbon neutrality in operation. In2023, according to the actual situation, the Company took relevant measures toreduce carbon emissions in terms of energy conservation, lightweight packagingmaterials, and emission management improvement. We constantly reviewed thepractical activities and made timely adjustments. Looking ahead, we will further im-prove strategy formulation, risk management, indicator and target identication andmanagement, and work together with the upstream and downstream of the valuechain to address climate change and achieve green development.
Direct greenhouse gas emission
(Scope I)Indirect greenhouse gas emission
(Scope II)Total greenhouse gas emissionsIntensity of greenhouse gas
emissions
Ton(s) of CO
equivalentTon(s) of CO
equivalentTon(s) of CO
equivalentTon(s) of CO
equivalent/Oper-ating revenue of RMB10,000
28,983.10
365.45
29,349.71
0.0075
IndicatorsUnit2023
Indicators and Objectives
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
EnvironmentalManagement
Yunnan Baiyao remains vigilant towards the evolving trends in national policies and regulations,staying informed about key policies and strategies. The Company adheres strictly to the lawsand regulations such as the Environmental Protection Law of the People’s Republic of China, theAir Pollution Prevention and Control Law of the People’s Republic of China, the Water PollutionPrevention and Control Law of the People’s Republic of China, and the Noise Pollution Preven-tion Law of the People’s Republic of China. We have established a comprehensive system forthe Environmental Protection Management System, which includes the Environmental Protec-tion Responsibility System, the Environmental Facilities Management System, the EnvironmentProtection Approval and Management System and other systems. We assign the environmentalprotection responsibilities to each business group, sign environmental protection target respon-sibility letters, require each production unit to carry out environmental protection work in accor-dance with the law, formulate an Emergency Response Plan for Environmental Emergencies,and report it to the local environmental protection department for the record, so as to assess andprevent major environmental impacts. We compile the Ecological Environment Information Re-port on a quarterly basis, analyze the national, provincial and municipal environmental protectionpolicies and directions in combination with our business, propose reasonable response strate-gies, measures and plans, and share key content to the branches and subsidiaries every month.As of the end of the reporting period, Yunnan Baiyao had not experienced any signicant inci-dents resulting in litigation or corresponding penalties due to environmental violations. The Com-pany and its eight subsidiaries involved in environmental protection administrative licenses havecompleted the discharge permit procedures, and employed third-party testing units with CMAcertication to conduct regular testing of wastewater, exhaust gas and noise in accordance withthe requirements of the sewage license, so as to ensure that the indicators are within the limitvalue requirements.Achievement of Environmental Goals by Yunnan
Baiyao in 2023
100% compliance with pol-lutant discharge standards0 occurrence of environ-mental pollution incident
Environmental
goals
Achievement in 2023
AchievedAchieved
subsidiaries have completed
the discharge permit
procedures
Exhaust Gas Emission of Yunnan Baiyao in 2023
Exhaust Gas ManagementThe exhaust gas of Yunnan Baiyao mainly consists of sulfur dioxide, nitrogen oxide and particulate matter produced in the pro-duction process. The Company requires each business group to fully equip the corresponding environmental protection facilitiesfor each exhaust gas emission link, and regularly check the tail gas discharge port, install end-of-pipe treatment facilities in thelocation of large emissions, and entrust a professional third-party company to carry out regular testing, ensuring that all types ofexhaust gas emission is stable and meets the standards to eliminate unorganized emissions. In 2023, the VOCs emission rateand emission concentration of Yunnan Baiyao’s a?liated factories met the corresponding limit requirements in the Comprehen-sive Emission Standard for Air Pollutants (GB16297-1996) and the Emission Control Standard for Volatile Organic Compoundsof Industrial Enterprises (DB12/524-2020).
IndicatorsUnit2023
Total exhaust gas emission10000m
4,330.4Particulate MatterTon(s)0.14
NOxTon(s)3.182
case
Renovation of Treatment Facilities at the End of Breathing Port ofN-hexane Storage Tank in Qidian Industrial ZonePharmaceutical Business Group of Yunnan Baiyao optimized the treatment facilities at the end of the breathingport of n-hexane storage tank in Qidian Industrial Zone, and added activated carbon treatment devices at theend to reduce the direct discharge of n-hexane and other volatile gases through adsorption treatment. Com-parison of monitoring data before and after treatment shows that this e?ectively reduces the concentration ofn-hexane tank exhaust emissions to 10ppm, well below the regulatory limit of 200ppm.
Renovation at the End of Breathing Port of N-hexane Storage Tank in Qidian Industrial Zone
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
case
Wastewater Management
Yunnan Baiyao’s wastewater mainly comes from discharges generated from the production of pharmaceuticals and healthproducts and domestic sewage. In accordance with the national and regional management requirements, the Company strictlyimplements the sewage permit management system, strengthens the internal management of environmental protection, sets upa dedicated team for sewage management, standardizes the environmental protection accounts, and improves the utilizationrate of water recycling through the upgrading and transformation of equipment and the recycling of wastewater. In the produc-tion process, we use circulating water to cool the equipment and reduce the use of tap water. Special sewage treatment tanksare set the end of the production, which can reduce the concentration of pollutants by precipitation, ltration and adsorption, andthen discharge the sewage according to the regulations. In addition, we actively carry out environmental protection technologylearning and exchange with related enterprises and units on the optimization of sewage treatment process and reduction of pol-lutant emission concentration, so as to improve our own wastewater management performance.In 2023, the Company monitored and uploaded key water quality indicators in accordance with the requirements of the variousenvironmental protection units at the higher level to ensure compliant discharges and avoid impacts on the river and soil.
Emission Reduction of VOCs in the Open Liquid Surface of WastewaterTreatment System of Qidian Industrial Zone and Improvement of E?uent WaterQualityTo optimize the e?ciency of wastewater discharge and further reduce the impact of wastewater discharge onthe environment, in 2023, Yunnan Baiyao replaced 6 sets of impulse tanks in the wastewater treatment systemof the Qidian Industrial Zone with corrosion-resistant FRP materials, and kept exploring experiments on the an-aerobic open liquid surface of the wastewater treatment system of the Qidian Industrial Zone. We added pow-dered activated carbon adsorption to reduce emissions, and sprayed powdered activated carbon on the openliquid level of the anaerobic system to improve the sewage treatment e?ciency, thus e?ectively reducing theescape of VOCs, and improving the sewage chroma and emission indicators.
Pulse Tank for Sewage Treatment System in Qidian Industrial ZoneWastewater Discharge of Yunnan Baiyao in 2023
IndicatorsUnit2023
Total wastewater dischargeTon(s)297,045.01
CODTon(s)11.78Ammonia nitrogenTon(s)0.689Reclaimed waterTon(s)29,610
：
In 2023, the statistical basis of COD and ammonia nitrogen was claried and expanded, so the data changed greatly in the two years.
7:The data of waste drugs, drugs HW03 covers Yuhua Industrial Zone.8:The data of Drug residue, sludge covers Yuhua Industrial Zone and QidianIndustrial Zone.
Waste ManagementYunnan Baiyao’s solid waste includes hazardous waste and non-hazardous waste. Hazardous waste includes waste drugs,medicines and experimental waste liquids, etc; non-hazardous waste mainly consists of medicine residue and sludge generatedin the production process.The Company classies and manages all solid wastes and strictly distinguishes between hazardous and non-hazardous wastes.For the non-hazardous waste in the process of production and operation, we uniformly hand over the general waste and domes-tic garbage to the sanitation station for removal and incineration disposal, and entrust the professional third party to dispose ofthe sludge and medicine residue, which is used for soil improvement of landscape after fermentation, and the medicine residueis used for the manufacture of organic fertilizer after fermentation.For the hazardous waste in the production workshop, we assign special personnel for management, establish a ledger, improvethe identication through marking and label, centrally store it in the designated area, and uniformly hand over to the third par-ty for processing after sorting and collection. For laboratory hazardous waste, we have formulated the Laboratory HazardousWaste Prevention and Control Responsibility System and the Laboratory Environmental Control Procedures to clarify and strict-ly implement the laboratory waste treatment standards. Following the principle of “Unied Collection, Classied Disposal, andElimination of Hidden Dangers,” hazardous waste is managed exclusively, accounts are established, and disposal is carried outby third-party professional disposal companies, so as to achieve the goal of “minimization, reuse and harmlessness.”In 2023, the Company further rened the types of waste discharge statistics with a view to nely controlling the discharge ofeach waste.
Waste Discharge of Yunnan Baiyao in 2023
IndicatorsUnit2023
Hazardous waste discharge
Waste drugs, drugs HW03
Ton(s)2.88Experimental liquid waste HW49Ton(s)17.32
Used oilTon(s)1.04Intensity of hazardous wasteTon(s)/Operating revenue of RMB10,0000.0000054
Non-hazardous waste dischargeDrug residue, sludge
Ton(s)25,786.5Intensity of non-hazardous waste Ton(s) / Operating revenue of RMB10,0000.0066
TotalTotal amount of solid wasteTon(s)25,807.74Solid waste discharge intensityTon(s)/ Operating revenue of RMB10,0000.0066
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
In 2023, the Yuhua Industrial Zone under the Pharmaceutical Business Group investigated and sorted out the problemsexisting in the use of 142 traps and bypass valves, and completed the repair and replacement work one by one. The con-sumption of natural gas was reduced by more than 5%, which improved the steam utilization e?ciency and e?ectively re-duced the production cost of the workshop. In addition, the Company cut o? the steam pipelines that were idle for long termto reduce the loss of steam in the pipeline and reduce the consumption of natural gas from the source.
Steam Energy-saving Transformation Site
Before modication
Before modication After modication
After modication
9:The comprehensive energy consumption was derived based on data from the National Bureau of Statistics
ResourceUtilization
Resource conservation is a critical endeavor for ensuring national resource security, advanc-ing the construction of ecological civilization, and fostering high-quality development. YunnanBaiyao is committed to conserving resources across all aspects of its operations and devel-opment. The Company actively promotes the scientific allocation, comprehensive saving,and recycling of various resources.
Yunnan Baiyao gives full consideration to energy utilization e?ciency in all aspects of productionand operation. In strict accordance with the Energy Conservation Law of the People’s Republicof China and other laws and regulations, the Company has established the Energy ManagementMeasures internally. The manufacturing operation center of the Pharmaceutical Business Groupof the Company has set up an energy conservation supervision working group to inspect andguide the energy use unit every month, implement energy conservation project transformation,correct and implement on-site guidance training for energy use points with room for energy sav-ing, promptly eliminate irregular energy use, in order to form a long-term mechanism for energyconservation, which will gradually improve the Company’s energy use efficiency and reduceproduction costs and energy waste. In addition, the Company links energy saving indicators withthe performance of management personnel, and requires all production and business groupsto strengthen the management of electricity, natural gas and other consumption materials, andbuild resource-saving enterprises based on the principles of legal management, technologicalprogress, consumption reduction and e?ciency improvement, e?ective supervision and sustain-able development, and according to their own production characteristics. In 2023, a total of 59common points of energy waste and multiple leakage points were investigated and rectied, andmultiple energy waste phenomena were eliminated.
investigated and rectiedcommon
points of energy wasteand multiple leakage points
Energy Management
case
Rooftop Photovoltaic Power GenerationRenovationDistributed photovoltaic power stations were built on the standard facto-ry roofs in Wenshan Sanqi Industrial Park of Yunnan Baiyao in 2023. Atpresent, the project has passed the acceptance and is o?cially put intooperation, with the average annual power generation being more than 3.5million KWH, reducing the use of fossil fuels, and minimizing CO
, SO
,NOx emissions.
Rooftop PV Installation in Wenshan Sanqi Industrial Park
Energy Consumption of Yunnan Baiyao in 2023
IndicatorsUnit2023
Diesel consumptionTon(s)0.87Gasoline consumptionTon(s)25.77Natural gas consumptionm
13,221,027
Purchased electricityMWh640.8Comprehensive energy consumption
Ton(s) of standard coal25,586.54Comprehensive energy density
Ton(s) of standard coal/Operating reve-
nue of RMB10,000
0.0065
Steam Energy-saving Transformation in Yuhua Industrial Zonecase
Wilderness Guardians for Harmonious Ecosystem
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
case
073074
Water Resource Management
Material and Package Management
In strict accordance with the Water Law of the People’s Republic of China and other laws and regulations, Yunnan Baiyao hasinternally developed the Non-pharmaceutical Water System Management Procedures and the Safety Standards and OperatingProcedures for Secondary Water Supply System Posts and other institutional documents. These initiatives call on all produc-tion and operation departments to conserve water resources. Additionally, the Company actively carries out various technicalreforms aimed at reducing losses and improving water e?ciency. In 2023, we surveyed the aged pipe network of the YunnanPharmaceutical’s campus, proactively inspected the underground pipe wells in the campus, repaired the seepage joints that hadbeen identied, replaced the aged pipe network, and engaged a professional leak detection company to detect leaks in the un-derground pipes in the park and repair the detected leak points. In addition, we conducted water balance tests on multiple cam-puses. At present, Yuhua Industrial Zone and Qidian Industrial Zone have completed the test and obtained the qualication.
Yunnan Baiyao encourages all business segments to explore the lightweighting of packaging materials and other productionmaterials according to their own business characteristics, advocates the extensive application of recyclable and renewablematerials, recycles the residual margins and packaging materials in the production process, and restructures and adjusts theshape of the products and packaging materials without lowering the e?ectiveness of the products, so as to reduce the demandfor raw materials and the waste of material loss. We vigorously promote paperless packaging and use large size specicationsfor packaging as much as possible. In 2023, the Company worked with suppliers to carry out a number of attempts in packagelightweighting.
Water in Landscape Pool Used for Greening of the Company
Wenshan Company of Yunnan Baiyao utilized water from the bottom of the landscape pool after simple ltra-tion for greening purposes. Fresh water was then replenished into the top of the landscape pool, facilitating therational use of water resources, recycling of water storage, and achieving water conservation while enhancingthe aesthetic appeal of the landscape pool.
Energy and Water Consumption of Yunnan Baiyao in 2023
IndicatorsUnit2023
Water consumptionTon(s)1,366,035Water consumption density Tons/Operating revenue of RMB10,0000.35
The Pharmaceutical Business Group Implemented the Transformation ofAluminum-plastic Composite Film for Eliminating Waste EdgesTo improve packaging e?ciency and reduce packaging material consumption, the Pharmaceutical BusinessGroup used granular equipment to transform the aluminum-plastic composite lm for eliminating the waste edg-es, which can save the composite lm consumption by 2%. In addition, according to the market demand, thepackaging of some square packaging products was reformed into strip packaging, which can save more than15% of packaging materials per product unit. After the rigorous testing, the number of carton packing tapeswas reduced from 4 to 2, saving the consumption of packing tape by 50%.
Packaging Material Consumption of Yunnan Baiyao in 2023
IndicatorsUnit2023
PaperTon(s)14,700PlasticTon(s)3,600Glass Ton(s)899AluminumTon(s)1,660Composite soft package Ton(s)2,038Packaging material consumptionTon(s)22,897Density of packaging material consumptionTon(s)/Operating revenue of RMB10,0000.0059
Before modicationAfter modication
Modication of Some Drug Packages
case
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Wilderness Guardians forHarmonious Ecosystem
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
case
ESG
Reuse of Toothpaste Packaging BoxThe Health Products BG conducted a study on the use tolerance of the toothpaste packaging box and foundthat the toothpaste promotion box could be reused for 3-6 times. Based on product specications and packag-ing box characteristics, we classied promotional boxes into 3 categories to meet production needs while mini-mizing costs. After the use of nely classied cartons in manufacturing, only 349,800 cartons were purchased,reducing the purchase of 1.05 million cartons, reducing the amount of paper used by about 735 tons, which isequivalent to an e?ective reduction of carbon dioxide emissions of about 18,750kg.
Recycled Containers for Storage and Reuse
Toothpaste Tube Recycling
The Health Products Department adopted the toothpaste recycling technology in the pipeline and the PiggingSystem to recycle the toothpaste in the nished toothpaste conveying pipeline. Through the transformation of6 production lines, 3.4 tons can be saved at one time, and the sewage treatment problem caused by cleaningthe toothpaste pipeline can be avoided, which has reduced the di?culty of sewage treatment signicantly. Thissaves 122.4 tons of paste in the whole year, and save RMB2.448 million annually.
onlycartons were purchased349,800
can be savedat one timetons
3.4
saves
tons of pastein the whole year
122.4
save RMBmillion annually
2.448
reducing the purchase of
million cartons
1.05
reducing the amountof paper used by abouttons
which is equivalent to ane?ective reduction of carbondioxide emissions of about
Kg18,750
case
Green O?ce
Yunnan Baiyao and its subordinate business groups actively carry out publicity and education on energy conservation andemission reduction, and place signs in o?ces and other workplaces to advocate the concept of green o?ce, enhance theawareness of energy conservation of all employees, and help employees cultivate green living habits.
To promote paper reuseand paperless o?ceTo remind employees toturn o? the lights and turno? the water
To set the temperature ofthe air conditioner rea-sonably, and turn o? it intime when not in use
Green o?ce
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Harmonious Ecosystem
077078Talent Empowerment for Employee Growth2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Talent Empowerment forEmployee Growth
Embracing the ethos of “People-first, Talent-integrated” YunnanBaiyao is dedicated to fostering an equal and diverse workplaceenvironment, where employees’ career advancement aligns withthe Company’s objectives. Through an inclusive talent strategy,competitive compensation packages, and comprehensive traininginitiatives, we aim to facilitate the professional development of ourworkforce, fostering a mutually benecial relationship between theCompany and its employees.
YUNNANBAIYAO
079080Talent Empowerment for Employee Growth2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Coverage
Number ofemployees
by rank
Number ofemployees bytype of work
Number ofemployees by
gender
Number ofemployees byage
Number ofemployees by
nationality
Number ofemployees by
region
Total number of employees
Person12,307
Labor contract employeesLabor dispatch employees
Intern
PersonPersonPersonPersonPersonPersonPersonPersonPersonPersonPersonPersonPersonPersonPersonPersonPersonPersonPersonPersonPersonPersonPersonPerson
Subcontracting staffSenior management
Middle managementJunior employeesSales staffTechnical staffProduction staffFinancial staffAdministrative staffMale employeesFemale employees
30 and below31 to 40 (exclusive)41 to 50 (exclusive)51 (inclusive) and above
Han
Yunnan ProvinceMainland China (excluding Yunnan)Hong Kong, Macao,Taiwan and overseas
：
The total number of employees is counted as labor contract employees, labor dispatch employees, interns and subcontracting staff.
：
Employees of subsidiaries and business units of Yunnan Baiyao included.
Ethnic minoritiesOverseas employees
1,619
1,1368,834
7,7635,0991,2651,676
4,7814,0532,6704,2561,567
7,5181,315
3,992
4,838
ProtectingEmployees’Rights andInterests
Insisting on compliant recruitment and employment, Yunnan Baiyao actively creates adiverse and equal working environment, provides fair career opportunities for employees,and ensures that every employee can show his or her talent and value. During the reportingperiod, Yunnan Baiyao won the awards of Best Employer 2023 - Most Socially ResponsibleAward, Top 100 Extraordinary Employers 2023, Exemplary Employer 2023, and ChinaHuman Resources Venus Awards 2023 - Exemplary Employer Brand Management Award.
In strict accordance with the Labor Law of the People’s Republic of China,the Labor Contract Law of the People’s Republic of China, the EmploymentPromotion Law of the People’s Republic of China, the Law of the People’sRepublic of China on the Protection of Minors and other laws and regulationsand relevant policy requirements. Yunnan Baiyao keeps revising andimproving the Recruitment Management Measures of Yunnan Baiyao GroupCo., Ltd, the Labor Contract Management System, the Basic Norms ofEnterprise Internal Control, the Qualication Management Measures, the JobRotation Management Measures and other relevant policies and systems, soas to ensure the Company’s recruitment and employment compliance, ande?ectively protect the rights and interests of employees.
In 2023, Yunnan Baiyao had 12,307 employees, as detailed below:
Yunnan Baiyao firmly prohibits any form of child labor and forced laborpractices, and has taken specic measures to avoid the occurrence of suchviolations. During the recruitment process, the Company strictly reviewscandidates’ identity information to prevent child labor at its roots. Furthermore,it establishes direct agreements with employees on matters such as laborcompensation, working hours, labor discipline, and labor quota managementsystems, safeguarding employees’ rights and interests and preventing forcedlabor occurrences. In 2023, Yunnan Baiyao did not have any illegal cases ofchild labor and forced labor.
Compliant Recruitment
Employment Details of Yunnan Baiyao
Employee categoryUnit2023
12,19312,310
20222021
2,0322,372
2052891,1751,1858,781
5,7295,1171,2911,611
4,7154,0662,8384,1841,433
7,4761,317
3,955
4,822
8,464
5,1455,0061,1061,608
4,6723,7922,7864,0141,345
7,0411,423
4,041
4,422
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
45.88%
14.89%
Equality, Inclusion and Diversity
Adhering to the principles of fairness, impartiality and diversity and the market-orient-ed employment mechanism, Yunnan Baiyao promotes the talent selection methodof open recruitment and merit-based posting, comprehensively considering the sit-uation of the candidates, and selecting employees according to the requirements ofthe positions. We never di?erentiate between employees on the basis of their educa-tional backgrounds, beliefs, nationalities, marital statuses, genders, health statuses,or racial di?erences.The Company expressly prohibits any form of harassing behavior, including butnot limited to verbal, written, graphic, and physical behavior. The Company hasestablished a clear complaint and reporting mechanism. When employees are ha-rassed, they can immediately complain and report to the Company. After receivingcomplaints and reports, the Company will accept, investigate and deal with them ina timely manner in strict accordance with relevant regulations, and protect the per-sonal privacy of employees according to law. Where the relevant organizations andindividuals le a report to the public security organ or le a lawsuit with the people’scourt, the Company will provide support.
Talent AttractionYunnan Baiyao has formulated the Internal Recommendation Management Measures for Talent Introduction of Yunnan Baiyao Group, andestablished a sound talent introduction management process and a dynamic position management system. With diversied talent acqui-sition methods such as social recruiting, campus recruiting, internal recommendation and internal recruiting, focusing on the areas of druginnovation, lean manufacturing, quality management, marketing and internationalization, we constantly expand our employee developmentchannels to attract composite high-quality talents and continuously strengthen our sta?ng and talent reserves.Besides, in the introduction of talents, the Company adopts a precise and e?cient “job placement, assignment, and sta?ng” approach, anddetermines the responsibilities, the required talent characteristics and the number of personnel of each post based on our strategic objec-tives and development planning. Adhering strictly to talent selection criteria, we ensure optimal alignment between individuals and positions,matching work content with employee capabilities, thereby realizing the objective of “maximizing talent potential and utilization.”In 2023, Yunnan Baiyao continued to strengthen the construction of high-level R&D team through the Central Research Institute. During thereporting period, the Central Research Institute recruited more than 30 employees, including more than 10 PhDs and more than 20 masters.It introduced one expert enjoying the State Council’s Special Allowance, one technological innovation talent cultivation object in Yunnan Prov-ince, and three talents who passed the audit of Yunnan Province’s talent program. As of the end of 2023, Yunnan Baiyao Central ResearchInstitute had more than 300 employees on board, including more than 140 masters and 20 PhDs, more than 70 intermediate title and seniortitle holders, and more than 20 high-level experts and talents at national, provincial and overseas levels.
1,315 ethnicminorityemployeesTotal number of employees signingthe labor contract in 2023
4,053 femaleemployees
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4,548
8,899217,125.15
5,422218,019
21.78
118,080
99,045
4,072
19,252193,801
849.53
Dual-wheel driven talent supply chain
Internaltraining
External talentintroduction
EmpoweringTalentDevelopment
Yunnan Baiyao is committed to establishing a sound talent trainingsystem and providing diversied development paths for employees.We attach importance to the career development of our employees,help them continuously improve their skills and capabilities, andachieve their personal career goals through systematic trainingprograms and clear promotion paths.
Following the principle of “Putting the best tools to the task,” we have implemented comprehensive management throughoutthe training cycle, from budget allocation to training execution and outcome assessment, ensuring optimal utilization ofresources and desired outcomes. Moreover, we are committed to achieve “knowledge retention,” viewing training as not onlyskill enhancement but also knowledge dissemination. Through digital transformation, we have digitized and streamlined theentire training process, providing digital support to the entire talent development lifecycle, from business strategy to talentplanning, training program, and talent growth.
Yunnan Baiyao understands that talents are the cornerstone of itsdevelopment, and has created a dual-wheel driven talent supplychain of “internal training + external talent introduction.” The Com-pany has not only established a hierarchical talent training systembased on job qualications to provide diversied training opportuni-ties, but also implemented special training programs for manage-ment and professional talents. Apart from that, through the capabilitymodel and talent assessment, we conduct a dynamic talent inven-tory, focusing on the identication and training of key talents, so asto ensure that their capabilities are matched to the future needs ofthe Company. Through effective cadre management mechanismand talent pool management tools, we can cultivate high-qualitymanagement talents that meet the future development needs of theCompany.
Talent Development
Employee Training Performance of Yunnan Baiyao in 2023
Total person-times in employee training
Person-time of trained employees
by gender
Person-time of trained employees
by rank
Total training timePer capita training time
Per capita training investment for employees
Total training hours ofemployees by gender
Total training hours ofemployees by rank
Training performance UnitData in 2023
Person-time
Male employeesPerson-time
Person-timePerson-timePerson-timePerson-time
HourHourHourHourHourHourHourRMB
Female employeesSenior ManagementMiddle management
Junior employees
Male employeesFemale employeesSenior managementMiddle management
Junior employees
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
BaoxiangFlowerProgram
PanaxnotoginsengFlowerProgram
ParisPolyphyllaFlowerProgram
SesameFlowerProgram
01020304
“Blossoming Flowers”Talent Cultivation System
Construction of Learning Platform
Skills Master Studio
Internal Trainer Team Building
New Apprenticeship Program
In 2023, the Company continued to explore the “Blossoming Flowers” talent cultivationsystem, providing customized training programs for the needs and development potentialof di?erent ranks of employees.
In 2023, Yunnan Baiyao o?cially launched the online learning plat-form of Baiyao Academy, empowering the talent training systemthrough its innovative and interesting learning model. The learningplatform covers many aspects such as course live broadcasting,online learning project management, and resource sharing, whichnot only promotes the intelligent dissemination of knowledge,supports business development, but also strengthens the multi-di-mensional visualization of enterprise management. Moreover, theonline learning platform of Baiyao Academy relies on advancedtechnical means to better cultivate and stimulate the potential ofemployees, o?ering the online functions of talent management, in-cluding the construction of competency model, talent assessment,talent inventory, training project operation and data collection andanalysis, thus comprehensively promoting the digital upgrade oftalent management of the Group.
“Fan Zhiwei Skills Master Studio” (the “Studio”) continues topromote technological innovation and continuous learning andexploration. In recent years, the Studio has carried out intelligenttransformation and upgrading of several production lines of theCompany, effectively improving the production efficiency andproduct quality of the Company. In 2023, the Studio introduceda new chief technician with the title of Talents for Revitalization ofYunnan. The customized weighing table it developed was electedas an employee innovation subsidy project in Yunnan Province.The Studio actively carried out equipment technical training withinthe Company, for a total of 15 times, and e?ectively solved andtroubleshooted 5 equipment issues. Throughout the year, it de-livered 26 training sessions to the provincial and municipal tradeunion systems, other enterprises, and Yunnan Vocational Collegeof Mechanical and Electrical Technology, with over 4,000 partici-pants trained.
Yunnan Baiyao actively promotes the construction and training ofan internal trainer team. Based on its own talent planning strategy,the Company has carried out e?ective classication and hierarchi-cal management of internal trainers, forming a training team withinternal lecturers as the core and supplemented by external lectur-ers. Aside from that, the Company has continuously improved thequalication system of internal trainers, drawn a detailed learningpath based on job requirements, and developed correspondingcourses.In 2023, Yunnan Baiyao successfully trained 149 new internaltrainers, bringing the total number of internal trainers to 289. It or-ganized two internal trainer training sessions with 150 participantsand developed 312 courses with a cumulative course duration of5,968 minutes.
Yunnan Baiyao, in partnership with Yunnan Technician College,introduces the innovative “New Apprenticeship Program.” Thisprogram adopts the training model of “enterprise-school dualsystem, integrated work and learning,” su?ciently leveraging thestrengths of government, enterprises, and schools to facilitatethe in-depth integration of industry and education. The programis designed to cultivate high-quality skilled personnel to meet theneeds of the Company through the combination of professionalstandards and course content as well as the organic connectionbetween the production process and the teaching process.In 2023, this program focused on two major areas of specialization– pharmaceutical formulation and TCM preparation. It took on atotal of 120 apprentices, 39 in pharmaceutical formulation and 81in TCM preparation, with the goal of completing the training in twoyears to enable the apprentices to reach the advanced worker skilllevel and grow into independent and efficient skilled workers. Theapprenticeship program has assisted Yunnan Baiyao in improving itstalent training system, strengthening school-enterprise cooperation,enriching teachers and curriculum resources, and thus improving theCompany’s human e?ciency and production level.
To enhance senior management’s in-depth un-derstanding of the Company’s overall strategyand business deployment through professionaltraining, the management will:
Dual-model teaching integrating online and of-ine approaches is adopted. Combining actionlearning with mentorship, it is designed to culti-vate reserve talents for middle management tocope with future management challenges andleadership tasks.
To promote the strategic thinking and lead-ership skills of the middle managementthrough a range of training and practicalactivities, they will:
To help the new employees:
Have a clearer understanding of the Com-pany’s long-term development planEnhance their awareness of the Company’svision and missionLead the Company more e?ectively towardits intended goals
Deepen their understanding of theCompany’s businessExercise their decision-making andteam management skillsBecome an effective backup force forthe Company’s senior management
Get quickly integrated into the corpo-rate cultureUnderstand the human resources andnancial system of the CompanyMaster workplace etiquette and com-munication skillsDeepen their understanding of theCompany’s core businessEnhance their sense of identity with thecorporate cultureAchieve overall development of qualityat the beginning of the career
“Blossoming Flowers” Talent Cultivation System of Yunnan Baiyao
Seniormanagement
Middlemanagement
Back-up management
Newemployees
case
In 2023, Yunnan Baiyao launched the talent cultivation program for “Panax notoginseng Flower” project managers, aiming tocultivate excellent project management talents, so as to promote the project-based management and the rapid development ofbusiness. The program lasted for 8 months, during which 173 times of e?ective communication with stakeholders were conduct-ed, and 40 times of guidance and feedback from professional tutors were accepted. Through team collaboration and multi-levellinkage across departments, 79 business problems were successfully sorted out and 89 work processes were established.Furthermore, the project team extracted 122 templates and forms, produced 44 project cases with practical value, successfully
“Panax notoginseng Flower” Project Manager Talent Cultivation Program
produced 5 sets of innovative project management meth-odology, and carried out promotion practice. These projectresults not only improve the e?ciency and quality of projectmanagement, but also lay a solid foundation for the Com-pany’s future project management practice and organiza-tional development.
"Panax notoginseng Flower" Project Manager Talent Cultiva-tion Program Site
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casecase
National Senior Workshop of “Lean Manufacturing ofPharmaceutical Enterprises”
“Xuanjia Action”
From September 19 to 22, 2023, Yunnan Baiyao successfully held the national senior workshop of “Lean Manufactur-ing of Pharmaceutical Enterprises.” The workshop attracted professionals from more than 40 companies across China,including online participants and on-site attendees, totaling more than 400 people. The content of the seminar focused onthe core issues of “Lean Manufacturing” and covered a wide range of important areas such as technological innovation,management innovation, quality management, team management and talent training.By adopting diversied blended teaching methods such as experiential learning, expert lectures, case studies and interac-tive seminars, the workshop imparted the key concepts and practical skills of implementing Lean Manufacturing in phar-maceutical enterprises and ensured that the participants were able to have a comprehensive and in-depth understandingof the core contents and implementation strategies of Lean Manufacturing. The workshop was highly recognized in termsof teacher quality, teaching e?ect and service management, with the excellent rate of teachers reaching 98.25%, theexcellent rate of teaching evaluation reaching 99.47%, and the satisfaction rate of service management reaching 100%.
In 2023, Yunnan Baiyao launched the “Xuanjia Action”: an internal selection mechanism set up for the open competitionfor the provincial marketing general manager of the business group. The “Xuanjia Action” not only provided young cadreswithin the Company with the opportunity to show their talents but also attracted outstanding talents from outside to join.The “Xuanjia Action” was rolled out under the principle of “strict selection, open selection and merit-based selection” to en-sure the fairness and transparency of the selection process. Clear standards and requirements were set to ensure that theselection process was “fair in terms of qualications, competitiveness, assessment and matching.” More than 200 peopleparticipated in the “Xuanjia Action” and 52 people were selected.
Recognizing the signicance of employ-ees’ career growth and advancement,Yunnan Baiyao has established a robustand e?cient personnel training and pro-motion system. Continuously rening andenhancing internal protocols such as theQualication Management Measures ofYunnan Baiyao Group, the Position Man-agement System, and the Job RotationManagement Measures, the Companyhas instituted a comprehensive promotionmechanism and internal transfer system.These e?orts aim to sustain organization-al dynamism and foster talent mobility.
Yunnan Baiyao has implemented a dynamic and ef-fective position management system, ensuring equalpromotion opportunities for all employees and facil-itating the optimal allocation of human resources tomeet strategic talent development goals. In 2023, theCompany established two career development paths:
the “management sequence” and the “professionalsequence,” each comprising six levels from “under-standing” to “leading.” These paths focus on enhanc-ing management leadership and rening professionalskills, respectively. Clear qualication standards havebeen formulated for each sequence and position toserve as the evaluation basis for employee promotion.The Company guides employee growth in alignmentwith organizational objectives. Furthermore, employ-ees can propose job rotations and, upon approvalfrom the human resources department, adjust theirinternal positions to cultivate diverse skills and achievemultifaceted career development.
National Senior Workshop of “Lean Manufacturing of Pharmaceutical Enterprises”
"Xuanjia Action" Site
Employee Promotion
Management
sequence
Professional sequence
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福利与关怀
建立有效目标及评估标准
建立有效目标及评估标准建立有效目标及评估标准
Improving theWell-being ofEmployees
Yunnan Baiyao actively enhances employee well-being through com-prehensive compensation incentives, performance management, anddiverse non-compensation benets. The Company values comprehen-sive care for its employees, particularly addressing the needs of femalesta?. The Company continually fosters employee satisfaction and teamcohesion through various cultural, sports, and union activities.
Centered on the needs and values of its employees, Yunnan Baiyaoconsistently renes its salary incentives and performance manage-ment system. While safeguarding employees’ basic rights and in-terests, the Company pays attention to the needs and expectationsof female employees. Moreover, the Company actively engages inrecreational and sports activities to bolster employees’ well-beingand sense of belonging across all facets of work life.
Yunnan Baiyao provides all employees with a variety of bene-ts in addition to salary, and pays attention to the physical andmental health of employees. On the basis of full payment ofall social insurance for all employees, additional commercialinsurance is provided for all employees. In 2023, the Compa-ny adjusted the frequency of employee physical examinationfrom biennial to annual and provided employees with a choiceof multiple physical examination agencies to meet the needsand preferences of di?erent employees. We also o?ered em-ployees’ families with discounts on physical examination asbenets, so as to ensure that the health of employees and theirfamily members is protected.
To provide objective and fair employee performance eval-uation, promote the overall performance improvement ofemployees and the Company, and provide the basis foremployee promotion and salary adjustment
To conduct regular performanceevaluation and provide timely feed-back, establish a performance ap-peal channel, and le online recordsTo closely link the employee perfor-mance with incentives, rewards andpunishments, promotion or demotion.
To provide training and developmentopportunities based on performanceappraisals and adjust individual goalsto improve performance levels
To establish measurable evaluation criteria following theSMART principle and on the basis of business attributesand job responsibilitiesTo set up di?erentiated appraisal cycles for employees atdi?erent levelsTo integrate comprehensive evaluations from differentdimensions of the employee’s supervisors, synergistic de-partments, and supervisory authoritiesIn strict accordance with the Social Insurance Law of the People’sRepublic of China, the Company Law of the People’s Republic ofChina, the Securities Law of the People’s Republic of China, theManagement Measures for Share Incentives of Listed Compa-nies, the Rules for the Listing of Stocks on the Shenzhen StockExchange, the Guiding Opinions on the Implementation of the PilotEmployee Stock Ownership Plan for Listed Companies and otherlaws and regulations, Yunnan Baiyao has formulated the SalaryManagement System of Yunnan Baiyao Group Co., Ltd and otherinternal management systems. During the process of constantly en-riching and maintaining high-quality talents, we have built a fair andimpartial salary and welfare system and incentive mechanism withmarket competitiveness. The Company provides employees withpension, medical, unemployment, work-related injury and maternityinsurance, as well as housing provident fund and enterprise annuityto ensure the basic welfare needs of employees. Furthermore, Yun-nan Baiyao has also implemented measures such as the EmployeeStock Ownership Plan to enhance the sense of belonging and par-ticipation of employees, which in turn promotes the Company’s long-term stable development.To ensure the objectivity and fairness of employee performanceevaluation, Yunnan Baiyao has formulated the Performance Man-agement System and established a comprehensive performancemanagement system. The Company has formulated a specialperformance appraisal plan based on the functions and businesspriorities of each department and the job responsibilities of employ-ees. The plan includes setting di?erentiated appraisal weights, clearappraisal criteria, and reasonable appraisal cycles to implemente?ective performance appraisals. The appraisal results are directlyrelated to key matters such as salary adjustments and promotionopportunities for employees, thus guaranteeing the fairness and ef-fectiveness of the appraisal.
Welfare and Care
Compensation Incentives andPerformance Management
Non-compensation Benets and Employee Care
In 2023, Yunnan Baiyao carried out a comprehensive system construction andoptimization of the performance evaluation mechanism, including the following aspects:
On top of that, to ensure the implementation of the Company’s sustainable development strategy, Yun-nan Baiyao has adopted a balanced scorecard assessment methodology, setting assessment indicators in aseveral dimensions, such as operational indicators, strategic indicators, organizational development, andrisk management and control. These indicators have been incorporated into the Company’s performanceappraisal system and are closely linked to the compensation management system to ensure that the Compa-ny’s activities are aligned with the strategic objectives of sustainable development and that employees areeffectively motivated to work together to achieve these objectives.
Clarifying the Purpose of EvaluationaspectsSound Feedback Mechanism
Effective Result Application
Combining Plans of Continu-ous Improvement
Establishing Effective Objectives and EvaluationCriteria
Reasonable Evaluation CycleFull Range of Evaluation Dimensions
The Company also provides diversified benefits to employeesthrough the Baiyao Living welfare platform. The Company not onlyprovides employees with carefully selected gifts during traditionalfestivals such as the Mid-Autumn Festival and Chinese New Year,but also furnishes employees with a welfare platform points, sothat they can freely choose and redeem their favorite goods. Tofurther enrich the life experience of employees, the Company alsoregularly organizes various shopping discount activities to rendercost-e?ective shopping services for employees.
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Family Day 亲子日活动
Organizing Recreational and Sports ActivitiesCare for Female
Yunnan Baiyao attaches great importance to the rights and well-being of female employees. The Company has set up theWomen Workers’ Committee under the Labor Union of Yunnan Baiyao Group and signed the Special Collective Contract forthe Protection of Special Rights and Interests of Female Workers with female employees, an initiative that comprehensivelysafeguards the legitimate rights and interests of female employees in the areas of politics, economy, culture, education, labor,social life, and so on. To further care for female employees, the Company has organized a variety of activities and projects, suchas increasing the types of redemption packages for female-specic points on the welfare platform to provide more diversiedredemption choices, and organizing March 8 Women’s Day themed activities. The Company has become a pilot enterprise forHPV vaccination and promoted the “Cervical Health Promotion Program for Working Women” to encourage female employeesto participate in the program and take care of their health. In addition, Yunnan Baiyao provides comprehensive maternity protec-tion for female employees, including maternity leave, parental leave and maternity insurance, so as to ensure that the legitimaterights and interests of female employees are fully protected during pregnancy and childcare.
To ensure that employees get proper relaxation and rest after busy work, the Company provides a series of colorful recreationaland sports activities.case
case
case
Family Day
Series Activities for Female Workers on “March 8 Women’s Day”
Sta? Running Group
On August 17, 2023, YunnanBaiyao held the “Baiyao FamilyDay” , inviting employees’ familymembers to visit Baiyao’s workingenvironment, learn about Bai-yao’s historical background, enjoydelicious foods, and participatein fun and interactive parent-childactivities. Through these activities,the family members of the em-ployees were able to experienceand perceive the signicance andvalue of working in Baiyao, whichin turn enhanced their sense ofidentication and belonging to theCompany and strengthened theunderstanding and support of thefamily members of the employeesto the Company, contributing tothe construction of a harmoniousand positive corporate culture.
The Company’s employeeshave spontaneously orga-nized and actively participat-ed in the sta? running groupactivities to promote healthywork and healthy life. Theemployees engage in weeklycampus runs at the headquar-ters, fostering not only physi-cal tness, but also enhancingcommunication and camara-derie among colleagues. Be-sides, the sta? running groupalso actively participates inmajor marathons in China andwin a number of honors.
On March 8, 2023, YunnanBaiyao organized a series ofactivities for female workerswith the theme of “MeetingWomen for Healthy Life.”These activities, focused onpromoting healthy lifestyles,featured a lively tug-of-warcompetition that drew partici-pation from 49 teams, totalingaround 1,000 individuals, withfemale employees comprisingtwo-thirds of the participants.The event enhanced teamcohesion and demonstratedthe vitality and healthy attitudeof female workers.
Family Day
Staff Running Group of Yunnan Baiyao
Lively Tug-of-War Competition on “March 8 Women’s Day”
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人才培养民主沟通
case
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Organizing a Symposium on Women’s Health
Holding Special Meeting of Trade Unions
On March 4, 2023, Yunnan Baiyao hosted the “Symposium on the Protection of Female Fertility by TCM” in Tian-jin. With the theme of caring for women’s health and protecting female fertility with TCM, the conference gatheredexperts and professors from Tianjin, Yunnan and other places in the eld of TCM and integrated Chinese andWestern medicine for in-depth interdisciplinary exchanges and discussions, and jointly explored the treatmentand health application of TCM in the protection of female fertility to promote the innovative development in theeld of women’s health.
Symposium on Women’s Health
Yunnan Baiyao Trade Union Held a Special Meeting
Democratic Communication
Employee Communication
Trade Union Activities
Yunnan Baiyao focuses on employee communication through adiverse multi-channel mechanism, ensuring seamless commu-nication and e?cient decision-making. The Company has setup two columns in the o?ce automation (OA) system, “Corpo-rate Culture” and “Growth and Dream Building Society.” Theemployees can interact freely in the article comment area ofthe two columns, express their views and suggestions, and gettimely responses from the Company. Moreover, the Companyhas set up a suggestion box and a reporting hotline
to collectfeedback from employees. The Company has also set up areporting mailbox
to allow employees to become a part of theCompany’s compliance monitoring system and enhance thetransparency and e?ectiveness of supervision.
Yunnan Baiyao has established trade unions to actively ex-ercise democratic management and protect the rights andinterests of employees. In August 2023, Yunnan Baiyao andrepresentatives of the labor union signed the Special Contracton Collective Bargaining of Yunnan Baiyao Group Co., Ltd. Thecontract covers a wide range of aspects such as employee re-cruitment, rest and vacation, labor compensation and insurancebenets, labor safety and health, special protection for femaleemployees, employee education and training, etc, providingcomprehensive rights and interests protection for employees.
On September 14, 2023, in active response to the spirit of the 13th Congress of Trade Unions of YunnanProvince, the trade union of Yunnan Baiyao held an expanded internal meeting to convey the spirit of the 13thCongress of Trade Unions and discuss the annual tasks. The expanded internal meeting interpreted the Imple-menting Rules for Trade Union Funds Income and Expenditure of Yunnan Baiyao Group, and conveyed opin-ions and suggestions on employee welfare and canteen services, emphasizing the importance of protectingthe legitimate rights and interests of employees. The meeting also delved into the reform of industrial workers’team building and extensively advanced initiatives for workers’ universal benets, paving the way for a newchapter in Yunnan Baiyao’s labor union e?orts.
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Reporting hotline: 0871-66203975
：
Reporting mailbox: byxfjb@ynby.cn
095096Talent Empowerment for Employee Growth2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
职业健康安全指标
员工培训总人次因工伤损失工作日数职业病体检人数
Protecting Healthand Safety
Yunnan Baiyao always prioritizes the health and safety of its employeesabove all else. Adhering to the work policy of “safety rst, preventionrst, comprehensive management,” we have established a robust safe-ty management system, implemented stringent safety protocols, andfostered a comprehensive safety culture to create a safe and healthyworking environment for all employees with the utmost e?ort. Ourcommitment to safety is reected in our investment of RMB5.68million during the reporting period.
福利与关怀In strict accordance with the Work Safety Law of the People’sRepublic of China, the Law of the People’s Republic of China onPrevention and Control of Occupational Diseases and other lawsand regulations, and based on the actual operation of the enter-prise, Yunnan Baiyao has revised and improved a series of internalsafety management systems such as the Production Safety TargetManagement System, the Production Safety Responsibility Systemand the Safety Training and Education Management System tocontinuously standardize and strengthen its safety management.For specic scenarios in production, we have formulated targetedsystems such as the Safety Management System for Warehousesand Tank Areas, the Fire Prevention, Explosion Prevention andFire Prohibition Management System, the Management System forHazardous Chemicals and Signicant Hazardous Sources, and theManagement System for Precursor Chemicals to meticulously man-age high-risk areas and raw materials used in production, so as tomore e?ectively identify, prevent and control potential safety risks.To ensure the safety of the Company and the campus, YunnanBaiyao has built a top-down safety management system with cleardelineation of authority and responsibility. This includes the establish-ment of a Safety Management Committee, comprising the director,chief executive o?cer and president as directors, along with the se-nior management
as members. The committee serves as the high-est responsible body for the safety e?orts of the Company and takescharge of all the duties of the overall safety management of theGroup. It also considers the major production safety concerns of theCompany, planning and integration, management and coordination,checking and supervising of the comprehensive safety a?airs. TheSafety Management Committee has a Safety Management O?ceheaded by the General Manager of the General Management Cen-ter, with the General Manager of the relevant functional departments,the Quality Director of the Pharmaceutical Business Group, and theExecutive Director & General Manager of Wisdom Technology BUas members, which is responsible for the overall management ofproduction safety, fire safety, occupational health and emergencymanagement, organizing the emergency response, investigation,coordination and follow-up of major and sudden security incidents,punishing the departments and individuals who violate the relevantsafety management rules and regulations of the Company, andensuring the e?ective implementation of the Company’s safety man-agement measures.
Safety Management System
Safety Risk Control
Apart from that, we have set up four committees, namely the Funds Management Committee, the Condentiality Committee, the WorkSafety Management Committee and the Digital Technology and Security Committee, to comprehensively promote the management of theGroup’s safety-related work and to ensure that the main responsibility for work safety is fullled.
Yunnan Baiyao is well aware of the importance of production safety. We have made our best e?orts to implement safety precautions, reducesafety risks, minimize hidden safety hazards and strictly abide by the safety bottom line by identifying and investigating safety risks, carryingout regular internal and external inspections, and conguring safety protection equipment.
We organize employees to identifyhazard sources, identify possiblesafety risks in production links andproduction positions, and formulatepreventive measures;We set all kinds of safety signs andwarning lines in the production siteto remind the site risks
We track and manage each safe-ty hazard, formulate rectificationplans, establish a hidden dangerrectification ledger, and implementrectification after the identificationand investigation of safety hazards;In 2023, the completion rate of Yun-nan Baiyao’s rectification of safetyhazards was 100%.
In response to the hidden safety haz-ards, the front-line production employ-ees are equipped with safety protectiondevices such as dust masks, protectivemasks, safety helmets, safety belts,labor protection shoes, positive-pressureair respirators, portable gas detectors,air blowers, emergency medication kits,firefighting sandbags and other safetyprotection items, so as to maximize theavoidance of occupational diseases andensure the safety of their occupationalhealth.
We carry out in-depth safety inspectionand hidden trouble investigation on im-portant risk points;We actively identify and resolve potential safe-ty hazards through safety inspections to en-sure the safety of the production environment;In 2023, the Company carried out a totalof 117 safety inspections and identified1,873 safety hazards.
Occupational Health and Safety Performance of Yunnan Baiyao
Safety Risk Prevention and Control Measures of Yunnan Baiyao
Safety RiskIdenticationand Analysis
Work SafetySupervision and
Inspection
Safety Risk Rectication
EquippingSafety Protection
Devices
：
Including Chief Innovation Officer & Senior Vice President, Chief Compliance Officer & Senior Vice President, Chief Commercial Officer & Senior Vice President, ChiefScientist, Chief Financial Officer, and Chief Quality & Process Officer.
：
The statistic data of the number of persons having physical examinations for occupational disease was sourced from Yunnan Pharmaceutical Co., Ltd, PharmaceuticalBusiness Group, Health Products Business Group, Traditional Chinese Medicine (TCM) Resources Business Group, etc.
：
The statistic data of the occupational health and safety related performance (excluding the number of persons having physical examinations for occupational disease)were sourced from full-time/part-time employees who have directly signed labor contracts with the Company, as well as the labor dispatch employees to the Company.
Safety investment
Safety investmenttotalled RMB
5.68
million
Occupational Health and Safety indicatorsUnit2023
Number of work-related injuriesPerson
Number of work-related deathsPerson
Lost working hours due to work-related injuriesHour3,152
Number of injuries per million hours worked%
35.11
Number of persons having physical examinations for
occupational disease
Person1,488
097098Talent Empowerment for Employee Growth2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
1,941
5,995
Occupational Health and Safety Awards of Yunnan Baiyao
case
case
case
Safety Improvement in Flammable and Explosive Areas
Organizing a “Big Competition” in Fire Skills to Build a RobustSecurity “Firewall”
Modication of Electrical Fire Monitoring System
Awarded the Title of “Advanced Collective of Emergency Management inYunnan Province”
Awarded the Title of “Healthy Enterprise”
To further improve the safety of ammable and explosive areas, Yunnan Baiyao carried out e?ective linkageof the accident fan and combustible gas detector in Yuhua Industrial Zone and Qidian Industrial Zone in 2023.When the detector monitors that the combustible gas concentration reaches 25% of the lower limit of the explo-sion limit, the accident fan will automatically start to reduce the combustible gas concentration in the environ-ment, e?ectively preventing re and explosion accidents. In particular, in the dangerous goods warehouse, twonew accident fans and ve new combustible gas detectors have been installed to ensure continuous monitoringand rapid response to the dangerous goods warehouse. Furthermore, when the detector generates a continuousalarm, the personnel in the re control room will notify the storekeeper to check and take appropriate measurespromptly to ensure that everything is in order.
On August 24, 2023, the re rescue brigade in Yangzonghai Scenic and Historic Interest Area cooperated withthe enterprises, communities and re stations in the area to carry out the re team skills competition. Yunnan Bai-yao Qidian Industrial Park sent 5 employees to participate in the competition, and won the rst place in the totalpoints of the competition, the rst place in the comprehensive re extinguishing drills during the initial stage of theteam competition, the rst place in the “re escape” 4X100 relay run, the second place in the push-up (individualcompetition), the third place in the return run (individual competition), and the third place in the indoor re hydrantre extinguishing exercise.The competition bolstered employees’re safety knowledge, fortied theirawareness regarding re safety, andaugmented their practical emergencyresponse capabilities in re scenarios.
On November 18, 2023, the Yunnan Emergency Management AdvancedCollectives and Individuals Commendation Conference was held in Kunmingto commend the collectives and individuals who had made positive contribu-tions in the eld of emergency management in the past ve years. Over thepast ve years, Yunnan Baiyao had prioritized and strictly managed variousrisk prevention and emergency response e?orts, constructing a comprehen-sive safety emergency management system. After the review and approvalof the commendation leading group, Yunnan Baiyao nally won the title of“Advanced Collective of Emergency Management in Yunnan Province.”Yunnan Baiyao earnestly implements the “Healthy China 2030” Plan Outline proposed by the CPC Central Commit-tee and The State Council, and actively promotes the construction of occupational health and safety culture based onits strategy. It was awarded the title of Kunming “Healthy Enterprise.”
In 2023, Yunnan Baiyao carried out a comprehensive modi-cation and upgrading of the electrical re monitoring systemin the Yuhua Industrial Zone and the headquarters to ensurethat the system could operate properly. We carried out de-tailed investigation and troubleshooting of the old electricalre monitoring mainframe, communication lines, detectors,residual current transformers, and replaced or repaired theold equipment. All the upgrading installation and commis-sioning work was conducted in strict accordance with thenational standards, the Electrical Fire Monitoring System(GB 14287-2005), to ensure that the system was upgradedto meet the legal and regulatory requirements. Through thisupgrade, the electrical re monitoring system can identify ab-normalities in electrical equipment and lines promptly, alarm
Yunnan Baiyao places great emphasis on developing and enhancing its safety education and trainingsystem. We ensure that employees receive systematic training on safety management and opera-tional skills annually, along with regular safety emergency drills. Our detailed annual safety educationand training program aims to strengthen employees’ safety awareness through comprehensivetraining, enhancing their safety management abilities and skills.Following the safety education principle of “Safety First, Prevention First, and Accident Elimination,”we provide employees with safety education that covers “all sta?, all aspects, and the entire process.”We actively enforce relevant production safety regulations and rules, fostering a comprehensive safe-ty culture among employees to ensure compliance with regulations, labor discipline, and the impera-tive of “not harming oneself, others, or being harmed by others, and protecting others from harm.”In 2023, the Company conducted 44 safety emergency drills and 112 safety education and trainingsessions for all employees as well as contractors, suppliers and other third parties, with a total of18,660 people participating in safety training.
Upgrade and Modification of ElectricalFire Monitoring System
Fire Brigade Skills Competition Site
Yunnan Baiyao Won the Title of“Advanced Collective of EmergencyManagement in Yunnan Province”
Construction of Safety Culture
Conducted 44safetyemergency drills
safety education andtraining sessions
,
people participatingin safety training
Training content
Total number of training sessionsNumber of participantsFire safety knowledgeHazardous chemical knowledgeConned space knowledge
During the year, we won several awards related to occupational health and safety, recognizing our steadfast
commitment to safety and our dedication to the well-being of our employees.
and guide maintenance promptly, reducingthe risk of electrical re signicantly.
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Sound Operation for High-Quality Development
Responsibility Fulfillmentfor Enhanced Welfare
Yunnan Baiyao fulfills its social responsibility through various initia-tives including rural revitalization, community outreach, and social wel-fare programs. As a responsible corporate citizen, the Company con-tinually explores innovative approaches to rural revitalization, activelyengages in community building and support, and channels the energyof a responsible enterprise into multiple public welfare projects.
YUNNANBAIYAO
Responsibility Fulllment for Enhanced Welfare
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
RuralRevitalization
Yunnan Baiyao vigorously promotes rural revitalization leveraging its industryadvantages. Through diversified strategies and targeted innovation projects, theCompany promotes comprehensive rural revitalization by virtue of industrial andtalent revitalization.
Rural Revitalization Centered onNujiang’s Characteristics
Yunnan Yunyao Nuxiang Co., Ltd.
case
Actively responding to the rural revitalization initiative, Yunnan Bai-yao engages in comprehensive and continuous strategic collabora-tion with the Nujiang Prefecture government. Leveraging its expertisein the Big Health sector, the Company extensively investigated theAmomum tsao-ko industry resources in Nujiang, driving innovationand advancement within the sector. Through industrial revitalization,we facilitated rural revitalization e?orts.On June 21, 2023, Yunnan Baiyao established Yunnan Yunyao Nux-iang Co., Ltd. in Lushui Green Spice Industrial Park, Nujiang Prefec-ture, focusing on the front-end development and marketing of foodand other products derived from characteristic resources of Nujiang,to promote the high-quality development of Amomum tsao-ko, helplocal people consolidate their achievements in poverty alleviation,and contribute to rural revitalization.
Harnessing its Big Health industry expertise, Yunnan Baiyao providescomprehensive support for the development of the TCM materials industryin Weixi County. The Company not only allocates resources to facilitateinvestment, breeding, cultivation, procurement, and promotion of TCM ma-terials, but also o?ers expert guidance on planting techniques and qualitystandards to ensure the industry’s sustainable growth.The working team of Yunnan Baiyao in Chazhiluo Village, working along-side local villagers, managed and developed approximately 400 mu of
Innovating Rural Revitalization,Pioneering “Baiyao Model”
case
Aplotaxis auriculata planting base. Prioritizingthe purchase of medicinal materials from localcollective economic cooperatives at guaran-teed prices effectively boosted the income oflocal farmers. In 2023, Yunnan Baiyao helpedincrease the per capita income of 270 growersby RMB1,000, making a signicant contributionto local economic development and farmers’income increase.
Yunnan Baiyao Experts Providing Guidance on the Planting of Aplo-taxis auriculata in Chazhiluo Village
Yunnan Baiyao Solved Di?culties in Mountains, ProvidingAssistance to Students in AutumnEmbracing the belief that rural revitalization hinges on educational support, and that education can alter destinies,Yunnan Baiyao enthusiastically engages in rural education support initiatives. We empower rural students to har-ness the power of knowledge to uplift their hometown, and foster hometown development and revitalization.After the conclusion of the 2023 college entrance examinations, Yunnan Baiyao surveyed of college admis-sions in Pantiange Township. Following visits to and interviews with 83 students who have been successfullyadmitted to pursue a bachelor’s degree or an associate degree at the college in the township, the Companydisbursed over RMB150,000 in scholarships through the “Golden Autumn Scholarship Program,” enablingthese students to take condent strides in their academic pursuits. Moreover, for students facing exceptionalfinancial hardships, the Company provided additional funds to address transportation and accommodationchallenges, ensuring that “no freshmen were left behind.”
Rural Revitalization and Autumn Education Support Activities
case
Responsibility Fulllment for Enhanced Welfare
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
“Rural Revitalization and Healthcare Support” Activities
The 14
th“National 100 Excellent Cases” of China Man-agement Case Sharing Center
“Best Practice Case for Rural Revitalization” of Chi-na Association for Public Companies in 2023
Xinhuanet and the National Poverty Alleviation Pub-licity and Education Center Co-sponsored “2023 Na-tional Excellent Cases of Rural Revitalization”
Yunnan Baiyao places signicant emphasis on and actively supports rural revitalization and healthcare initia-tives. In the autumn of 2023, the Company conducted a series of “Rural Revitalization and Healthcare Support”activities in Weixi and Fugong County. These e?orts included drug donations and grassroots medical capacityimprovement training sessions, aimed at bolstering local healthcare development. Throughout the reportingperiod, Yunnan Baiyao donated drugs valued at RMB1.0816 million.Furthermore, Yunnan Baiyao arranged for experts to conduct specialized training sessions on orthopedic di-agnosis and treatment, maternal and child healthcare, and the application of Yunnan Baiyao series products.These were aimed at enhancing the professional capabilities of local medical personnel. Additionally, repre-sentatives from Yunnan Baiyao visited the Fugong County Maternal and Child Healthcare Center for in-depthdiscussions and exchanges with local government and health bureau o?cials.
In September 2023, Yunnan Baiyao was awarded the 14
th “National 100 Ex-cellent Cases” by China Management Case Sharing Center for the case ofHealth Initiatives in Hengduan Mountains: Yunnan Baiyao Promoted RuralRevitalization with Charity Responsibility.
Yunnan Baiyao actively responds to the state’s call and courageously as-sumes social responsibility, leveraging its solid foundation and experiencein the field of medicine and Big Health to help Weixi eradicate povertyand achieve rural revitalization. In October 2023, Yunnan Baiyao won the2023 “Best Practice Case for Rural Revitalization” award issued by Chi-na Association for Public Companies with the rural revitalization case ofWeixi County.
On November 3, 2023, the “2023 Summary Conference on ExcellentCases in National Rural Revitalization” jointly organized by Xinhuanetand the National Poverty Alleviation Publicity and Education Center washeld in Beijing. Yunnan Baiyao’s poverty alleviation and rural revitaliza-tion practice cases were awarded “National Excellent Cases of RuralRevitalization”, where we assisted Weixi County through initiatives suchas “leaders residing in impoverished rural areas, relevant departmentstasked with poverty alleviation in villages, and cadres responsible foraiding impoverished families,” as well as “adopting a new work approach,engaging at the grassroots level, and visiting impoverished communities.”
Award Notication of Nation-al 100 Excellent Cases
Honorary Certicate of Best Practice forRural Revitalization
Honorary Certicate of 2023 National Ex-cellent Cases of Rural Revitalization
As a socially responsible enterprise, Yunnan Baiyao considers rural revitalization as a fundamental aspect of its core values.In 2023, leveraging its strengths, Yunnan Baiyao delved deeper into rural revitalization, supporting rural industry developmentthrough the “Baiyao Model,” and earning widespread acclaim externally.case
Drug Donation Activities for “Rural Revitalization and Healthcare Support”
List of Social Welfare Awards Won by Yunnan Baiyao in 2023
List of Social Welfare Awards Won by Yunnan Baiyao in 2023
List of Social Welfare Awards Won by Yunnan Baiyao in 2023
Responsibility Fulllment for Enhanced Welfare
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
“小修小补”暖人心志愿服务活动2023年1月13日，云南白药雨花一支部开展了家电维修志愿服务活动，为雨花街道的下庄村和颐明园社区居民提供实际帮助。由公司志愿者组成的维修队伍提供了包括家电维修、更换水龙头、处理用电故障在内的服务。活动中，志愿者团队共计维修家电66件，其中上门维修、更换水管龙头、处理用电问题等服务共14件。自2014年成立以来，这个志愿者队伍从最初的40多人壮大至今的100多人。累计服务人次超过800人，维修各类家用电器达2000多件。这不仅是一次赠人玫瑰、手有余香的行动，更是将微光汇聚成炬、以志愿之心温暖人心的具体体现。
人多件
CommunityCare
Yunnan Baiyao actively fulfills its social responsibility by engaging deeply withlocal communities and collaborating closely to conduct a diverse range of com-munity care activities, and thus foster community development and enhance thequality of life for residents.
“Small Repair” Warm-hearted Volunteer ServiceOn January 13, 2023, Yunnan Baiyao Yuhua Branch initiated a volunteerservice program for home appliance maintenance, aimed at providingpractical assistance to residents of Xiazhuang Village and YimingyuanCommunity in Yuhua Sub-district. A dedicated maintenance team com-prised of our volunteers delivered a range of services, including repairinghome appliances, replacing faucets, and troubleshooting power failures.Throughout the event, the volunteer team repaired 66 home appliancesand provided 14 additional services, such as on-site maintenance, re-placing faucets, and addressing electrical issues.Since its inception in 2014, the volunteer team has expanded from over40 members to more than 100, serving over 800 individuals and repair-ing over 2,000 household appliances. This initiative not only exempliesthe principle of leaving a lasting impact, but also demonstrates our com-mitment to spreading warmth and compassion through volunteerism.
case
8002,
“Small Repair” Warm-hearted Volunteer Service
Being Aware of Telecom Fraud, Building a Harmonious Community
Yunnan Baiyao collaborated with the criminalinvestigation brigade of the Public Security Bu-reau to host a special lecture on “PreventingTelecom Network Fraud” on July 7, 2023. Theaim was to enhance public awareness of net-work security and anti-fraud capabilities. Duringthe lecture, the criminal investigation brigadeprovided detailed insights into the methods,types, and prevention techniques of telecomnetwork fraud through analysis of real fraud cas-es. Special emphasis was placed on frequentlyoccurring fraud types, educating participants one?ective identication and prevention strategies.This initiative e?ectively bolstered public securi-ty awareness and improved their ability to detectand counter telecom network fraud.Special Lecture on “Preventing Telecom Network Fraud”
case
Served over Repaired over
householdappliancesindividuals
Responsibility Fulllment for Enhanced Welfare
2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Social Welfare
Adhering to the principle of “serving overall interests, reecting responsibility, be-ing value-oriented, presenting culture, focusing on the main business, highlightingcharacteristics, being realistic and sustainable,” Yunnan Baiyao actively fullls itssocial responsibilities by leveraging its own advantages to conduct distinctive socialwelfare activities.In 2023, the Company established the Public Welfare Donation Management Mea-sures of Yunnan Baiyao Group Co., Ltd to standardize its public welfare initiativesand donations. During the reporting period, the Company not only participated invarious social welfare projects, but also encouraged and organized its employeesto engage in volunteer activities vigorously. The total value of donated materialsreached RMB4.4604 million.
Volunteer Service Activities Themed“Inheriting Lei Feng’s Spirit, NurturingYouth’s Resilience”
Disaster Relief Support for Gansu ProvinceIn April 2023, Yunnan Baiyao responded actively to the initiativeof “Empowering the Spirit of Lei Feng in the Modern Era” by or-ganizing a series of volunteer service activities themed “InheritingLei Feng’s Spirit, Nurturing Youth’s Resilience.” During weekends,youth league members were divided into groups to learn aboutthe essence of Lei Feng’s spirit. They visited various locationssuch as the community, Yunnan Baiyao Experience Center, andYunnan Baiyao Pharmacy to educate people on basic medicalinsurance knowledge and provide voluntary services like healthdance exercises and chronic physiotherapy.These series of volunteer activities not only integrated seam-lessly with our ongoing work, but also empowered the volunteersto serve as exemplary role models. It expanded the platform forlearning about Lei Feng’s spirit and made such activities morecontemporary, appealing, regularized, and sustainable. These ef-forts aimed to embed the spirit of Lei Feng into daily life, making ita natural part of our culture.
On December 18, 2023, Jishishan County in Linxia, Gansu Province was struck by a 6.2-magnitude earth-
quake. Yunnan Baiyao responded swiftly, with all departments collaborating closely to rapidly deploy urgently
needed medical supplies, including trauma medicine and cold medicine. By December 21, the aid and supplies
were successfully transported to the disaster area via the Red Cross Society of China Yunnan Branch. Yunnan
Baiyao’s contribution to this disaster relief e?ort amounted to approximately RMB1.5 million worth of medical
supplies donated to the a?ected areas in Gansu Province, and RMB500,000 worth of medical supplies donated
to the a?ected areas in Qinghai Province.
case
case
Volunteer Service Activities Themed “Inheriting Lei Feng’s Spirit,Nurturing Youth’s Resilience”
Disaster Relief Support for Gansu Province
4.4604
The total value of donatedmaterials reached
millionRMB
In 2023
1091102023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Performance Name Unit 2023
Environmental DimensionAddressing Climate Change
GHG emis-sions
Direct greenhouse gas emissions (Scope I)Ton(s) of CO2 equivalent28,983.10Indirect greenhouse gas emissions (ScopeII)
Ton(s) of CO2 equivalent365.45Total greenhouse gas emissionsTon(s) of CO2 equivalent29,349.71Intensity of greenhouse gas emissions
Ton(s) of CO2 equivalent/Operating
revenue of RMB10,000
0.0075
Environmental ManagementWaste gasmanagement
Total exhaust gas emissions 10000m
4,330.4Fume (dust)Ton(s)0.14NOxTon(s)3.182Wastewatermanagement
Total wastewater dischargeTon(s)297,045.01CODTon(s)11.78Ammonia nitrogenTon(s)0.689Reclaimed waterTon(s)29,610
Waste man-agement
Waste drugs, drugs HW03
Ton(s)2.88Experimental liquid waste HW49Ton(s)17.32Used oilTon(s)1.04Intensity of hazardous waste
Ton(s)/Operating revenue of
RMB10,000
0.0000054
Drug residue, sludgeTon(s)25,786.5Intensity of non-hazardous waste
Ton(s)/Operating revenue of
RMB10,000
0.0066
Total amount of solid wasteTon(s)25,807.74Solid waste discharge intensity
Ton(s)/Operating revenue of
RMB10,000
0.0066
Resources Utilization
Energy man-agement
Diesel consumptionTon(s)0.87Gasoline consumptionTon(s)25.77Natural gas consumptionm
13,221,027Purchased electricityMWh640.8Comprehensive energy consumption
Ton(s) of standard coal25,586.54Density of comprehensive energy consump-tion
Ton(s) of standard coal/Operating
revenue of RMB10,000
0.0065
Performance Name Unit 2023
Environmental Dimension
Water re-sources man-agement
Water consumptionTon(s)1,366,035Water consumption density
Ton(s)/Operating revenue ofRMB10,000
0.35
Packagingmaterial us-age
PaperTon(s)14,700PlasticTon(s)3,600GlassTon(s)899AluminumTon(s)1,660Composite soft packageTon(s)2,038Packaging material usageTon(s)22,897Density of packaging material consumptionTon(s)/Operating revenue of RMB10,0000.0059
Social DimensionCompliant Recruitment
Total number of employees
Person12,307Coverage
Labor contract employeePerson8,834Labor dispatch employeePerson1,136InternPerson718Subcontracting sta?Person1,619Number ofemployees byrank
Senior management
Person187Middle managementPerson884Junior employeesPerson7,763
Number ofemployees bytype of work
Sales Sta?Person5,099Technical personnelPerson1,265Production sta?Person1,676Financial personnelPerson308Administrative personnelPerson486
Number ofemployees bygender
Male employeesPerson4,781Female employeesPerson4,053
Number ofemployees byage
30 and belowPerson2,67031 to 40 (exclusive)Person4,25641 to 50 (exclusive)Person1,56751 (inclusive) and abovePerson341
Key Performance Statement
17:The calculation of greenhouse gas emissions was based on the IPCC Greenhouse Gas Emissions Accounting Methods and Reporting Guidelines for IPCC GreenGas Emission, in which the electricity consumption was converted by referring to the national power grid average emission factor of 0.5703tCO2/MWh issued by theMinistry of Ecology and Environment in 2022.19:The comprehensive energy consumption was derived based on data from the National Bureau of Statistics.18:The data of waste drugs, drugs HW03 covers Yuhua Industrial Zone.
：
The total number of employees was counted as labor contract employees, labor dispatch employees, interns and subcontracting staff.
：
Employees of subsidiaries and business units of Yunnan Baiyao included.
Key Performance Statement
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Performance Name Unit 2023
Social DimensionNumber ofemployees bynationality
HanPerson7,518Ethnic minoritiesPerson1,315Overseas employeesPerson1Number ofemployees byregion
YunnanPerson4,838Mainland China (excluding Yunnan)Person3,992Hong Kong, Macao, Taiwan and overseasPerson4Employee Training
Employee training
Total person-times in employee trainingPerson-time218,019Person-time oftrained employees bygender
Male employeesPerson-time5,422Female employeesPerson-time4,548Person-time oftrained employees byrank
Senior managementPerson-time187Middle managementPerson-time884Junior employeesPerson-time8,899Total training timeHour217,125.15Per capita training timeHour21.78Total training hours ofemployees by gender
Male employeesHour118,080Female employeesHour99,045Total training hoursof employees by rank
Senior managementHour4,072Middle managementHour19,252Junior employeesHour193,801Per capita training investment for employeesRMB849.53
Health and Safety
Employeework-related inju-ries and deaths
Number of work-related injuriesPerson7Number of work-related deathsPerson0Lost working hours due to work-related injuriesHour3,152Number of injuries per million hours worked%35.11Number of medical examinations for occupational diseases
Person1,488
Product Quality and Safety
Quality and safetytraining
Quality and safety training coverage %100Quality and safety training sessions Time137
Key Performance Statement
Performance Name Unit 2023
Social DimensionR&D and InnovationR&D InvestmentRMB 0’00034,444.15Number ofpatent appli-cations
Invention patent/18Patent for utility models/17Design patent/9Numberof patentsgranted
Invention patent/25Patent for utility models/39Design patent/14Customer Services
Customer complaint resolution rate%100
Supply Chain Management
Total number of suppliers/294Key suppliers/147
Domesticsuppliers
Suppliers in the local province/91Domestic suppliers (other provinces and regions in Mainland China exceptthe local province)
/202Overseas suppliers (including Hong Kong, Macao and Taiwan)/1
Governance Dimension
Business Ethics
Compliancetraining
Compliance training sessionsTime9Compliance training coverage%100
22:The statistic data of the occupational health and safety related performance (excluding the number of persons having physical examinations for occupationaldisease) were sourced from full-time/part-time employees who have directly signed labor contracts with the Company, as well as the labor dispatch employees to theCompany.23:The statistic data of the number of persons having physical examinations for occupational disease was sourced from Yunnan Pharmaceutical Co., Ltd,Pharmaceutical Business Group, Health Products Business Group, Traditional Chinese Medicine (TCM) Resources Business Group, etc.
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
Key Performance Statement
GRIStandards
Disclosures Section Index
PageNumberGRI 1: Basics 2021
GRI 2: Gener-al Disclosure2021
2-1 Organization Details Company ProleP52-2 Entities Included in Organizational Sustainability Report About This ReportP12-3 Reporting Period, Reporting Frequency and Contacts About This ReportP12-4 Information Restatement About This ReportP12-6 Activities, Value Chains and Other Business Relationships Company ProleP5
2-7 Employees
4.1 Protecting Employees’
Rights and Interests
P79-822-9 Governance Structure and Composition
1.2 Compliance
Management
P25-282-10 Nomination and Selection of the Highest Governing Body
1.2 Compliance
Management
P25-28
2-11 Chairman of the Highest Governing Body
1.2 Compliance
Management
P25-28
2-12 The Oversight Role of the Highest Governing Body in Managing Impact
1.2 Compliance
Management
P25-28
2-13 Delegating Responsibility for Managing Impact
1.2 Compliance
Management
P25-28
2-14 The Role of the Highest Governing Body in Sustainability Reporting 1.1 ESG ManagementP25-28
2-16 Communication on Issues of Major Concern 1.1 ESG ManagementP21-24
2-17 Common Knowledge of the Highest Governing Body
1.2 Compliance
Management
P25-282-18 Performance Evaluation of the Highest Governing Body
1.2 Compliance
Management
P25-282-19 Remuneration Policy
1.2 Compliance
Management
P25-282-22 Statement on Sustainability Strategy
ESG Statement of theBoard of Directors
P22-23 Policy Commitment //2-24 Integration Policy Commitment //
2-25 Procedures to Remedy Negative E?ects //2-26 Mechanisms for Seeking Advice and Raising Concerns //2-27 Compliance with Laws and Regulations //2-28 Association Membership 2.2 R&D and InnovationP39-462-29 Stakeholder Engagement Approach 1.1 ESG ManagementP21-24GRI 3: Sub-stantive Is-sues 2021
3-1 Process of Identifying Substantive Issues 1.1 ESG ManagementP21-243-2 List of Substantive Issues 1.1 ESG ManagementP21-243-3 Management of Substantive Issues 1.1 ESG ManagementP21-24
GRI Index
GRIStandards
Disclosures Section Index
PageNumberGRI 201: Eco-nomic Perfor-mance 2016
201-1 Economic Value Directly Produced and Allocated//201-2 Financial Impact of Climate Change and Other Risks and Opportunities 3.2 Addressing Climate ChangeP63-66
201-3 Mandatory Dened Benet Plans and Other Retirement Plans
4.3 Improving the Well-being of
Employees
P89-94GRI 203:
Indirect Eco-nomic Impact2016
203-1 Infrastructure Investment and Support Services //
203-2 Signicant Indirect Economic Impact //GRI 204:
ProcurementPractices2016
204-1 Proportion of Expenditure on Procurement from Local Suppliers 2.4 Supply Chain ManagementP53-58
GRI 205: An-ti-Corruption2016
205-1 Operating Sites Where Corruption Risk Assessments Have BeenConducted
1.3 Business Ethics
P29-30205-2 Communication and Training of Anti-corruption Policies and Procedures 1.3 Business EthicsP29-30
205-3 Conrmed Incidents of Corruption and Actions Taken 1.3 Business EthicsP29-30
GRI 206:
ImproperCompetitiveConduct 2016
206-1 Legal Action against Improper Competitive Conduct, Antitrust and Anti-monopoly Practices
1.3 Business Ethics
P29-30GRI 301: Ma-terials 2016
301-1 The Weight or Volume of the Material Used 3.4 Resource UtilizationP71-76
GRI 302: En-ergy 2016
302-1 Energy Consumption within an Organization 3.4 Resource UtilizationP71-76302-3 Energy Intensity 3.4 Resource UtilizationP71-76
302-4 Reducing Energy Consumption 3.4 Resource UtilizationP71-76302-5 Reducing Energy Requirements for Products and Services 3.4 Resource UtilizationP71-76GRI 303: Wa-ter Resourcesand Sewage2018
303-1 Interactions Between Organization and Water as a Common Resource 3.4 Resource UtilizationP71-76
303-2 Managing Drainage-related Impacts 3.3 Environmental ManagementP67-70
303-3 Water Intaking 3.4 Resource UtilizationP71-76
GRI 305:
Emission2016
305-1 Direct GHG Emissions (Scope 1) 3.2 Addressing Climate ChangeP63-66305-2 Direct GHG Emissions from Energy (Scope 2) 3.2 Addressing Climate ChangeP63-66
305-4 Greenhouse Gas Emissions Intensity 3.2 Addressing Climate ChangeP63-66
305-5 Reduction of Greenhouse Gas Emissions //GRI 306:
Waste 2020
306-1 Waste Generation and Signicant Waste-related Impacts 3.3 Environmental ManagementP67-70306-2 Management of Signicant Waste-related Impacts 3.3 Environmental ManagementP67-70306-3 Waste Generated 3.3 Environmental ManagementP67-70
306-5 Waste for Disposal 3.3 Environmental ManagementP67-70
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
GRI Index
GRIStandards
Disclosures Section Index
PageNumberGRI 308:
Supplier En-vironmentalAssessment2016
308-1 New Suppliers Screened Using the Environmen-tal Assessment Dimension
2.4 Supply Chain ManagementP53-58
308-2 Negative Environmental Impacts of SupplyChains and Actions Taken
2.4 Supply Chain ManagementP53-58
GRI 401:
Employment2016
401-1 New Hire Rate and Employee Turnover Rate
4.1 Protecting Employees’ Rights and
Interests
P79-82401-2 Benets Provided to Full-time Employees (Ex-cluding Temporary or Part-time Employees)
4.3 Improving the Well-being of Em-
ployees
P89-94
GRI 403:
OccupationalHealth andSafety 2018
403-2 Hazard Identication, Risk Assessment andAccident Investigation
4.4 Protecting Health and SafetyP95-98
403-3 Occupational Health Services 4.4 Protecting Health and SafetyP95-98403-4 Occupational Health and Safety Matters: WorkerParticipation, Consultation and Communication
4.4 Protecting Health and SafetyP95-98
403-5 Occupational Health and Safety Training forWorkers
4.4 Protecting Health and SafetyP95-98
403-6 Promotion Workers’ Health 4.4 Protecting Health and SafetyP95-98403-7 Prevention and Mitigation of Occupational Healthand Safety Impacts Directly Related to the Business
4.4 Protecting Health and SafetyP95-98
403-9 Work-related Injury 4.4 Protecting Health and SafetyP95-98403-10 Work-related Health Problems 4.4 Protecting Health and SafetyP95-98GRI 404:
Training andEducation2016
404-1 Average Number of Training Hours Per Employ-ee Per Year
4.2 Empowering Talent DevelopmentP81-88
404-2 Employee Skills Upgrading Program and Transi-tion Assistance Program
4.2 Empowering Talent DevelopmentP81-88
GRI 405:
Diversity andEqual Oppor-tunity 2016
405-1 Diversity of Governance Bodies and Sta?
4.1 Protecting Employees’ Rights and
Interests
P79-82GRI 406: An-ti-discrimina-tion 2016
406-1 Incidents of Discrimination and Correct ActionsTaken
4.1 Protecting Employees’ Rights and
Interests
P79-82GRI 408:
Child Labor2016
408-1 Operating Sites and Suppliers with A SignicantRisk of Child Labor Incidents
//GRI 409:
Forced orCompulsoryLabor 2016
409-1 Operating Sites and Suppliers with A SignicantRisk of Forced or Compulsory Labor Incidents
//GRI 413: Lo-cal Communi-ties 2016
413-1 Operating Sites with Local Community Engage-ment, Impact Assessment and Development Plans
//GRI 418: Cus-tomer Privacy2016
418-1 Substantiated Complaints Relating to Violationsof Customer Privacy and Loss of Customer Data
2.3 Customer ServicesP47-52
List of Laws and Regulations and Internal PoliciesScopePolicy Name
Environment
Regulations of the People’s Republic of China on the Protection of Endangered Wild PlantsRegulations for the Implementation of the Drug Administration LawLaw of the People’s Republic of China on TCMQinghai-Tibet Plateau Ecological Protection Law of the People’s Republic of ChinaEnvironmental Protection Law of the People’s Republic of ChinaAir Pollution Prevention and Control Law of the People’s Republic of ChinaWater Pollution Prevention and Control Law of the People’s Republic of ChinaNoise Pollution Prevention Law of the People’s Republic of ChinaEnvironmental Protection Management SystemEnvironmental Facilities Management SystemEnvironment Protection Approval and Management SystemIntegrated Emission Standards for Air Pollutants (GB16297-1996)Emission Control Standards for Volatile Organic Compounds in Industrial Enterprises (DB12/524-2020)Laboratory Hazardous Waste Pollution Prevention and Control Responsibility SystemLaboratory Environment Control ProcedureLaw of the People’s Republic of China on Energy ConservationEnergy Management MeasuresWater Law of the People’s Republic of ChinaNon-pharmaceutical Water System Management ProceduresSafety Standards and Operating Procedures for Secondary Water Supply System Posts
Society
Drug Administration Law of the People’s Republic of ChinaRegulations on the Supervision and Administration of Medical DevicesMeasures for the Administration of Drug RegistrationMeasures for the Supervision and Administration of Drug ManufacturingMeasures for the Supervision and Administration of the Quality of Drug Operation and UseCode of Practice for the Quality Management of Pharmaceutical OperationsGood Agricultural Practice (GAP) for Traditional Chinese Medicinal MaterialsMeasures for the Administration of Drug RecallCode of Practice for the Quality Management of PharmacovigilanceMeasures for the Reporting and Monitoring of Adverse Drug ReactionsPatent Law of the People’s Republic of ChinaTrademark Law of the People’s Republic of ChinaAdvertising Law of the People’s Republic of ChinaAdministrative Measures for Medical Advertisements
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
GRI Index
ScopePolicy Name
Society
Measures for the Examination of Pharmaceutical AdvertisementsCybersecurity Law of the People’s Republic of ChinaPersonal Information Protection Law of the People’s Republic of ChinaData Security LawLaw of the People’s Republic of China on the Protection of Consumers’ Rights and InterestsTendering and Bidding Law of the People’s Republic of ChinaRegulation on the Supervision and Administration of CosmeticsMeasures for the Supervision and Administration of Production and Distribution of CosmeticsCode of Practice for Quality Management in the Production of CosmeticsMeasures for the Supervision and Management of ToothpasteBrand Structure Management Manual of Yunnan Baiyao GroupQuality Culture Outline of Yunnan Baiyao GroupQuality Code of Conduct for Baiyao PeopleQuality Management ManualTransportation Management SystemManagement Measures for CarriersDrug Recall Management ProcedureManagement of Drug Safety IncidentsManagement Measures of R&D Management Committee of Yunnan Baiyao Group Co., LtdSpecication on the Management of Entrusted Scientic Research Project FundsManagement Measures for Internal Entrusted Research in Yunnan Baiyao Group’s R&D ProjectsMeasures for Management of R&D-type Governmental Projects in Yunnan Baiyao Group’s CentralResearch InstitutePatent Management Measures of Yunnan Baiyao Group Co., LtdPatent Application Process of Yunnan Baiyao Group Co., LtdPatent Management Measures of Central Research InstituteCustomer Response Management SystemInternal Communication and Handling Mechanism for New Product Complaints of Yunnan BaiyaoMarketing Standardized PhraseologyInformation Security Management SystemInformation Security Organization and Management MeasuresManagement Measures for User Behavior and Information Security TrainingManagement Measures for Information Security Incident
ScopePolicy Name
Society
Management Measures for Information Security Supervision and ComplianceManagement Measures for Information Security RiskExplanation on the Protection of Privacy of User DataSupplier Management MeasuresProcurement Management Manual
CorporateGovernance
Company Law of the People’s Republic of ChinaSecurities Law of the People’s Republic of ChinaGuidelines for Corporate Governance of Listed CompaniesLaw of the People’s Republic of China Against Unfair CompetitionAnti-monopoly Law of the People’s Republic of ChinaArticles of AssociationRules of Procedure for General MeetingsRules of Procedure for Board of DirectorsWorking System for Independent DirectorsRules of Procedure for Supervisory CommitteeInternal Control ManualComprehensive Risk Management SystemOpinions on Strengthening and Improving Discipline Inspection of Yunnan Baiyao Group Co., Ltd (forTrial Implementation) (the “Opinions”)Opinions for Party Committee and Discipline Inspection Commission Work Coordination PromotionMechanism of Yunnan BaiyaoRules of Procedure for Discipline Inspection Commission of Yunnan BaiyaoWork System of Discipline Inspection CommissionWork System of Letters and VisitsMeasures for Integrity Risk ControlResponsibility System for the Work of Clean and Honest Party BuildingCode of Conduct for Business EthicsLabor Law of the People’s Republic of ChinaLabor Contract Law of the People’s Republic of ChinaEmployment Promotion Law of the People’s Republic of ChinaLaw of the People’s Republic of China on the Protection of MinorsSocial Insurance Law of the People’s Republic of ChinaManagement Measures for Share Incentives of Listed Companies
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2023 CORPORATE SOCIAL RESPONSIBILITY REPORT AND ENVIRONMENTAL,SOCIAL AND GOVERNANCE REPORT YUNNAN BAIYAO GROUP CO., LTD.
List of Laws and Regulations and Internal Policies
ScopePolicy Name
CorporateGovernance
Rules for the Listing of Stocks on the Shenzhen Stock ExchangeGuiding Opinions on the Implementation of the Pilot Employee Stock Ownership Plan for ListedCompaniesWork Safety Law of the People’s Republic of ChinaLaw of the People’s Republic of China on Prevention and Control of Occupational DiseasesRecruitment Management Measures of Yunnan Baiyao Group Co., LtdLabor Contract Management SystemBasic Norms of Enterprise Internal ControlQualication Management Measures of Yunnan Baiyao GroupPosition Management SystemInternal Recommendation Management Measures for Talent Introduction of Yunnan Baiyao GroupJob Rotation Management MeasuresSalary Management System of Yunnan Baiyao Group Co., LtdEmployee Stock Ownership Plan (ESOP)Stock Incentive SchemePerformance Management SystemProduction Safety Target Management SystemProduction Safety Responsibility SystemSafety Training and Education Management SystemSafety Management System for Warehouses and Tank AreasFire Prevention, Explosion Prevention and Fire Prohibition Management SystemManagement System for Hazardous Chemicals and Signicant Hazardous SourcesManagement System for Precursor ChemicalsPublic Welfare Donation Management Measures of Yunnan Baiyao Group Co., Ltd
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