The S&P CSA, initiated by S&P Global, is the world's leading corporate sustainability assessment tool. It is reported that the average CSA-ESG score for the pharmaceutical industry this year is around 20 points, with Sino Biopharm significantly outperforming the industry average. The significant improvement in Sino Biopharm's score this year reflects the company's outstanding achievements in integrating ESG governance into the Group's strategic development in recent years. It also reaffirms Sino Biopharm's accomplishments in the ESG field and its widespread global recognition. Among these, Sino Biopharm achieved significant score improvements on multiple issues, with particularly outstanding results in medical accessibility, quality and safety management, and human development.

In recent years, Sino Biopharm has actively practiced the concept of sustainability, and continuously enhanced its comprehensive ESG governance level. It has established a "three-tier ESG governance structure" from the Board of Directors to the executive level and formulated the "CARE" ESG governance strategy centered on "Cure, Accessible, Relationship, and Environmental", continuously building a governance model that aligns with international standards and meets the highest requirements for ESG levels.

In terms of medical accessibility, Sino Biopharm adheres to driving the development of medical accessibility through innovative R&D, targeting three major disease areas that affect a large number of patients: oncology, cardiovascular and cerebrovascular diseases, and hepatology. In 2021, the total R&D investment reached RMB 3.82 billion, accounting for 14.2% of sales revenue. In the first half of this year, this proportion further increased to 14.4%. In 2021, the proportion of the Group's products that won bids in centralized procurement reached 41.49%, with the prices of the winning products significantly decreasing, thereby reducing the financial burden for more patients. At the same time, the Group actively participates in medical insurance negotiations to benefit the public with better prices, and actively promotes the development of generic drugs and accelerates the consistency evaluation of generic drugs to provide patients with more choices.

In terms of human development, Sino Biopharm values employee training and development, and continuously improves the construction of its talent pipeline. In 2021, the male-to-female employee ratio in the Group was 53.99% and 46.01%, and the proportion of women in senior management was 30%. At the same time, the Group values its reserve of young talent. In 2021, nearly 70% of the Group's middle management personnel were under the age of 40.

Theresa Tse, Chairwoman of the Board of Sino Biopharm, pointed out that 2022 was a year full of challenges and opportunities, with the public's multi-level and diverse health needs continuing to grow rapidly. We believe that excellent ESG management is the necessary path and effective guarantee for the company to cope with complex environments, seize the opportunities of the times, and achieve steady, high-quality, and sustainable development for Sino Biopharm.