Recently, the international authoritative index agency MSCI (Morgan Stanley Capital International) announced its latest 2023 annual Environmental, Social, and Governance (ESG) rating results. Based on its continuous deep efforts and excellent performance in the ESG field, Sino Biopharm received an A rating this year. This marks the third consecutive year of rating improvement for Sino Biopharm, reaching a leading level among rated companies in the Chinese pharmaceutical industry.

MSCI is one of the most watched and recognized ESG index rating agencies in the global capital market today, and its rating results have become a mainstream investment reference for the international capital market. Since 2021, Sino Biopharm's MSCI ESG rating has steadily improved from BB to A over three consecutive years. This achievement is an effective feedback on the deep implementation of Sino Biopharm's ESG strategy and an objective reflection of the effectiveness of its ESG governance. It is also a direct recognition of the Group's long-term value by the capital market.

The MSCI rating report shows that Sino Biopharm's management performance on the two key issues of "Product Safety & Quality" and "Access to Healthcare" is at a leading level in the industry. It also has outstanding performance in issues such as "Toxic Emissions & Waste", "Human Capital Development", and "Governance", with scores for each issue higher than the industry average.

Sino Biopharm has always upheld the concept of sustainability, and has established and implemented a "three-tier ESG management system" from the "Board of Directors decision-making level" to the "Group senior management level" and the "enterprise executive level". It continuously promotes the comprehensive implementation of the "CARE" ESG governance strategy centered on "Cure, Accessible, Relationship, and Environmental". This aims to promote the organic integration of ESG management with the Group's overall development strategy, drive the harmonious development of the company, employees, society, and the environment, and provide strong support for the sustainable development of the company and partners from all sectors.

In the field of cure, Sino Biopharm is committed to using innovative R&D as a core driver to provide more effective treatment options for more patients. From 2020 to 2022, the compound annual growth rate of R&D investment reached 25.2%. Currently, the Group has 6 innovative drugs approved for marketing in China, with another 90+ independently developed innovative products in clinical development, and 130+ innovative drug clinical trials being conducted domestically and internationally. Its R&D achievements are firmly in a leading position in the industry.

In the field of expanding medical accessibility, Sino Biopharm has always insisted on protecting patients' equal health rights. While focusing on core therapeutic fields including oncology, hepatology, surgery/analgesic, and respiratory diseases, the Group is deeply engaged in expanding medical accessibility through work such as rare disease drug R&D, addressing antibiotic drug resistance, and disseminating health concepts and culture. According to statistics, the Group's key products have cumulatively treated over 150 million patients. In 2022, Sino Biopharm had a total of 3 rare disease drugs on the market, and 5 rare disease drug projects under review or in development.

In the area of building win-win relationship, Sino Biopharm has always adhered to a cooperative concept of transparency and integrity, and is committed to creating diverse, equal, and mutually progressive internal and external win-win relationships. The Group fully encourages the empowerment of women in the workplace. As of now, female employees account for 46.66% of the Group, female directors make up 33.3% of the Board of Directors, and women account for 42.9% of the Group's senior management. At the same time, we provide all employees with ample career development planning and support. In 2022, the average training hours per employee was 45.83 hours.

In the field of environmental friendliness, Sino Biopharm has continuously increased its environmental protection investment, and promotes the construction of a green manufacturing system and a green industrial chain. For three consecutive years, the annual investment in environmental governance has been nearly RMB 100 million. The Group's key member companies, Chia Tai Tianqing, has been awarded the national "Green Factory" title, and Chia Tai Qingjiang has been honored with the "2022 Jiangsu Provincial Green Factory" title. At the same time, Sino Biopharm places great importance on and is actively engaged in responding to climate change risks. The Group's carbon neutrality pathway planning and the construction of carbon neutrality pilot factories are being practically carried out.

In the future, Sino Biopharm will adhere to the concept of sustainability. Through high-quality ESG management, it will earnestly practice the Group's mission of "improving the quality and protecting the dignity of human life", seek health and well-being for more patients, and enable more diseases to be treated. At the same time, it will promote the harmonious development of the company, employees, society, and the environment, provide strong support for the sustainable development of company, and creae long-term value for itself and partners from all sectors.