健帆生物(300529)_公司公告_健帆生物：2024年度环境、社会及公司治理(ESG)报告(英文版)_公司公告

健帆生物：2024年度环境、社会及公司治理(ESG)报告(英文版)（下载公告）
公告日期:2025-06-17
URL:www.jafron.comTel.: 0756-3619693Email:ir@jafron.comAddress: 98 Keji 6th Road, Zhuhai National High-tech Industrial Development Zone.Zhuhai City, Guangdong, China ENVIRONMENTAL, SOCIAL ANDGOVERNANCE (ESG) REPORT 2024 Jafron Biomedical Co., Ltd. Jafron Ocial Website Jafron WeChat Ocial Account Health Technology for a Better World Summa of KPIsIndex of MetricsFeedback Appendix About This RepoMessage from the ChairmanKPI Highlights 2024About Us Response to Climate ChangeEnvironmental Compliance and Low-Carbon InitiativesCircular Economy and Green Development Compliant Employment Practices and Fair OppounitiesEmpowering Employees with Wellbeing and FulllmentCareer Development and Talent CultivationOccupational Health and Safety FirstCompassion in Action, Advancing Public Welfare Advancing Low-Carbon Practicesand Promoting Green Healthcare People-Oriented Development and Social Harmony Corporate Governance: Driving Steady ProgressEnhancing Internal Control and Risk ManagementProtecting Shareholder Interests: Prioritizing Investor RightsBusiness Ethics and Corporate Values SustainabilityGovernance Sma Innovation: Key to Technology-Driven GrowthExcellence in Quality: Our Foundation for TrustCustomer-Centric Seice with Dual-Engine ExcellenceData Security and Privacy ProtectionStable Supply and Security Assurance Sustainability GovernanceStakeholder EngagementMateriality Management Crafting Excellence to PropelIndust Development Together Robust Governance: Strengthening the Foundation for Sustainable Growth About This Repo 0102 Repo Introduction This is the inaugural Environmental, Social and Governance (ESG) Repo published by Jafron Biomedical Co., Ltd. (“Jafron”, the “Company”or “we”). This repo intends to disclose the Company’s ESG-related concepts, practices and peormance for the 2024 repoing year in anobjective, normative, transparent and all-inclusive manner. Repoing PeriodThis repo covers the period from Janua 1 to December 31, 2024 (the “repoing period”). In order to present more comparative andforward-looking repoing data, ceain sections may include retrospective data or forward-looking statements. This repo is publishedon an annual basis, which is consistent with the Company’s nancial repoing cycle. Data SourcesThe data disclosed in this repo is derived from a range of sources, including internal operational records, publicly available data fromgovernment agencies, annual nancial statements, internal statistics and third-pay sueys. All nancial gures are presented in Renminbi(RMB). In cases of discrepancies between this repo and the nancial statements, the latter shall prevail. Access To This RepoThis repo is available for review and download from the Company's ocial website (https://www.jafron.com), the website of ShenzhenStock Exchange (http://www.szse.cn) and the website of cninfo (http://www.cninfo.com.cn), where you can nd fuher insights aboutJafron. Conrmation and ApprovalThis repo was approved by the Board of Directors of the Company for publication on April 15, 2025. The Board undeakes to supeisethe preparation of this repo, conrming that the contents of this repo are true, accurate and complete in all material aspects, free frommisstatements or misleading information.This repo is published in Chinese. The English version is a translation of the original Chinese text. In the event of any discrepancies, theChinese version shall prevail. Repoing Bounda and TerminologyThis repo is specic to Jafron Biomedical Co., Ltd. along with its branches and subsidiaries. The scope of this repo is consistent withthat of the Company’s annual repos. In this repo, unless the context otherwise species, the following terms shall have the followingmeanings: Terminology AbbreviationJafron, the Company, weBeijing JafronHubei Jafronianfu Pharmaceutical Company NameJafron Biomedical Co., Ltd.Beijing Jafron Medical Equipment Co Ltd.Hubei Jafron Biotechnology Co., Ltd.Zhuhai Jianfu Pharmaceutical Co., Ltd. Repoing Guidelines United Nations Sustainable Development Goals (SDGs) Global Repoing Initiative (GRI)Sustainability Repoing Standards (“GRI Standards”) Guidelines No. 17 of Shenzhen Stock Exchange for Self-Regulation of Listed Companies – Sustainability Repo (Trial)Guidelines No. 3 of Shenzhen Stock Exchange for Self-Regulation of ChinNext Market Listed Companies – Sustainability RepoGuidelines of China Enterprise Reform and Development Society on Sustainability Repoing for Chinese Enterprises (CASS-ESG 6.0) HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo The year 2024 has been a pivotal chapter in Jafron’s journey towardembedding sustainable development at the core of our operations. Amidthe dynamic and complex global economic and environmental landscape,we have remained steadfast in our mission of “Health Technology fora Better World”, embedding ESG principles into the ve fabric of ourcorporate strategy and day-to-day operations. We are committed todelivering safer and more sustainable healthcare solutions to peoplearound the world.Over the past year, we were honored with the “People’s CraftsmanshipTechnology Award” and recognized among the “2024 Healthy ChinaInnovative Practice Cases”. Leveraging our world-leading bloodhemopeusion with resin adsorption technology, we have continuedto deliver “China's solution” across multiple therapeutic areas, includingkidney, liver and critical diseases and poisoning. Our products are nowdistributed across more than 90 countries and used in over 8,000 hospitals,with more than 5 million cases of clinical application annually, bringingrenewed hope to millions of patients worldwide. These achievements arethe result of the collective dedication of our employees and the enduringtrust of our paners, rearming the vitality of our business philosophy: “Building Excellence through Expeise, Winning through Quality andSeing with Integrity”.Throughout 2024, we maintained a strong commitment to greendevelopment across our research, development and manufacturingactivities. Through continuous technological innovation and processoptimization, we have worked to reduce resource consumption andminimize our environmental footprint while enhancing energy eciencyand promoting decarbonization practices. We recognize thatsafeguarding the planet is as vital as protecting human health. Lookingahead, we are determined to fuher explore low-carbon developmentpathways, leveraging technologies to contribute to the global pursuit ofcarbon peak & carbon neutrality and sustainable development. Over the past year, R&D and innovation have remained at the heaof our strategy towards creating greater industrial values. Anchoredby our proprieta “direct blood adsorption” platform technology, wehave expanded its clinical applications from detoxication to treatmentof kidney, liver and critical diseases. Going forward, we will continue tostrengthen our R&D capabilities, actively exploring the transition fromdisease treatment to disease prevention. We aim to broaden the clinicalapplication of hemopeusion technologies to encompass preventivehealthcare and health management, creating even greater value forglobal health.Meanwhile, we have continued to cultivate a “Joyful Co-Win” corporateculture, underpinned by a “striver-centered” philosophy. We fuherenhanced our talent development and retention programs, allowingemployees and shareholders to share the fruits of business development.We provide diverse training oppounities, clear career progressionpathways and comprehensive suppo programs for new graduates incareer development and eveday life. Our philosophy — “MaximizingTalent and Optimizing Resources for Shared Success and Prosperity” —remains a guiding force. Since our public listing in 2016, nearly a thousandkey employees have shared in the Company’s success through equityincentive plans and employee stock ownership plans, truly realizing the vi-sion of shared growth and prosperity. In addition, we remain committed tomaximizing shareholder value through cash dividends, share repurchasesand increased shareholding by our controlling shareholders, aligning withbest practices to deliver strong returns to our investors.Looking ahead, Jafron will move forward with renewed resolve, embracingESG principles, expanding healthcare accessibility, accelerating greentransformation, and empowering our people to drive collective progress.We rmly believe that integrating business growth with the well-being ofhumanity is the only path to sustainable, long-term success. Let us joinhands to safeguard life with craftsmanship and illuminate the future withtechnology. 0304 Message from the Chairman Dear friends, thank you for taking the time to read this repo. Onbehalf of the Board of Directors of Jafron, I would like to extend mysincere gratitude for your ongoing suppo and trust in our company. Jafron Biomedical Co., Ltd.Chairman: Dong Fan External AppointmentsMember, Guangdong Provincial Committee of theChinese People’s Political Consultative Conference(CPPCC)Standing Committee Member, Zhuhai MunicipalPeople’s CongressExecutive Committee Member, All-China Federationof Indust and Commerce (ACFIC)Vice President, Pharmaceutical Chamber ofCommerce, ACFIC HonorsExpe Receiving Special Government Allowancefrom the State CouncilLeading Talent of “National High-Level Personnel ofSpecial Suppo Program”National Innovation and Entrepreneurship TalentForbes China Best CEO 2021Second Prize, National Science & TechnologyProgress AwardFirst Prize, Guangdong Science & TechnologyProgress AwardGuangdong May 1st Labor Medal Recipient Vice Chairman, Guangdong Federation of Industand CommerceChairman, Zhuhai Federation of Indust andCommerceVice President, Guangdong Society for Promotion ofthe Guangcai Program HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Social 100%Labor contract signing rate 100% Social insurance coverage 100% Employee health check-upcoverage 100% Training coverage 4,336,500Wok Safety InvestmentsRMB38,302,200Public welfare investmentsRMB R&D investments millionRMB100% Pass Rate 0506 Economic 2,677 Operating Revenue millionRMB Net prot attributable to shareholdersof the parent company millionRMB 5,383 Total Assets millionRMB 1.02 Basic earnings per share per shareRMB Tax Payment millionRMB Environmental 85,410,200 Total investmentin environmental protectionRMB Environmental training sessionssessions 100% Waste disposal compliance rate 19,309.47 Total greenhouse gas (GHG) emissions tCO2e 56.92% Packaging material recycling rate KPI Highlights 2024 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo 0708 Company Prole About Us HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Founded in 1989, Jafron Biomedical Co., Ltd. is a company listed onthe ChiNext Market of the Shenzhen Stock Exchange (A-shares)(Stock Code: 300529), specializing in the R&D, manufacturing andsales of biomedical materials and advanced medical devices. TheCompany’s core business focuses on hemopurication productsand technologies. The Company ranks among the top Chinese listedcompanies in the medical device sector by market capitalization. Ithas been recognized with prestigious awards such as the “GoldenBull Award for Best Investment Value” and “Top 50 ChiNext ListedCompanies” for 4 consecutive years. In 2019, it was honored as the“Listed Company with Best Shareholder Return” and with China’sFinancial Annual Champion Award for ChiNext Market Listed “Com-petitive Enterprise”. Jafron was also named one of the “Hurun China100 Most Valuable Non-State-Controlled Healthcare Companies2020”. In the past three years alone, the Company has contributednearly RMB 1.2 billion in taxes.Jafron has earned numerous accolades, including: the Second Prizeof the National Science & Technology Progress Award, the FirstPrize of Guangdong Science & Technology Progress Award, andGolden Bridge Award of China Technology Market Association; andit has been recognized as a Key High-Tech Enterprise under China’sTorch Program, National Manufacturing Single-product ChampionDemonstration Enterprise and National Technology InnovationDemonstration Enterprise. The Company has undeaken severalmajor national and provincial science and technology projects, including: two National Key New Product Projects, three Projectsunder China’s Torch Program, National Industrial Revitalization andTechnological Transformation Projects, National Major Scienticand Technological Achievements Commercialization Projects, 12thFive-Year Plan Science and Technology Suppo Program, OpenBidding for Selecting the Best Candidates Research Program, Guang-dong Strategic Emerging Indust Core Technlogy Research Program.It has received approvals to establish National Enterprise TechnologyCenter, Academician Workstation, Postdoctoral Research Workstation,Provincial Engineering Research Center, Provincial Key EnterpriseLaborato, Provincial Engineering Technology Development Centerand Provincial Postdoctoral Workstation. Jafron was among the rstcompanies in China and the second in Guangdong Province to passthe medical device GMP inspection. Its products have received CEceication and ISO quality system ceication. The Company hasbeen rated as a Class A Medical Device Manufacturer in Guangdong’sQuality Credit Evaluation for 12 consecutive years. In 2019, Jafron wasrecognized as a “Model Enterprise in the Pharmaceutical Indust” incelebration of the 70th Anniversa of the Founding of New China. At the core of Jafron’s pofolio are its proprieta, world-leadinghemopeusion caridges, blood purication equipments, and itspioneering clinical medical technologies such as direct blood adsorp-tion, DPMAS, combined aicial kidney and HA+CPB technologies.Jafron’s solutions are deployed across more than 6,000 hospitals inover 30 provinces throughout China, and are expoed to over 90countries worldwide, including Germany, the United Kingdom andItaly. These products and technologies play a critical role in treatingsevere and life-threatening conditions such as uremia, liver failure,poisoning and systemic lupus ethematosus. With a domesticmarket share exceeding 70%, Jafron’s products save hundreds ofthousands of patients each year. Since the commissioning of its blood purication R&D and productionfacility (Jafron Science and Technology Park) in 2015, Jafron hasexpanded with three production bases in Zhuhai and new productionand innovation centers in strategic regions including Beijing-Tianjin,Guangzhou-Shenzhen and Hubei Province. This geographic footprintsuppos a balanced industrial layout across South, Central and NohChina.Looking forward, Jafron is advancing a holistic blood puricationecosystem that integrates medical devices, consumables, pharma-ceuticals, insurance solutions, chronic disease management andhealthcare seices. This full-spectrum blood purication valuechain will suppo the Company’s evolution into a diversied,globally recognized healthcare group and its vision to“ Become aWorld-class High-tech Medical Technology Group”. Estimated MarketPotential RMB 20+ billionRMB 10+ billionRMB 20+ billion PoisoningUremiaLiver DiseasesCritical Care Clinical Applications Pesticide poisoningDrug poisoning... Treatment andprevention of dialysiscomplications,including: Hypotension, arrhyth-mia, muscle cramp,hypoxemia, pruritus, airembolism, hemolysis,sleep disorders,subdural hematoma... Liver failureHepatic encephalopathyHyperbilirubinemiaCholestatic liver diseasePerioperative treatment inliver transplantation... Severe acutepancreatitis (SAP)Cardiac surgeSevere burnsTraumaSepsis/septic shockAcute respiratodistress syndrome(ARDS)Multiple organdysfunctionsyndrome (MODS)... Kidney DiseasesHA Series Disposable Hemopeusion CaridgesKHA Series Disposable Hemopeusion CaridgespHA Series Disposable Hemopeusion Caridges Liver DiseasesHA330-II and HA60 Hemopeusion CaridgesBS330 and BS80 Disposable Plasma BilirubinAdsorption ColumnsCA280 Cytokine Adsorption ColumnCritical Diseases HA330 Disposable Hemopeusion Caridge foracute poisoning inteentions ImmunologyHA280 Disposable Hemopeusion Caridgeindicated for autoimmune diseases such asanaphylactoid purpura, psoriasis and rheumatoidahritisDNA230 Immunosorbent Column indicatedfor systemic lupus ethematosusCA330 Cytokine Adsorption Column that is specicallydesigned to reduce cytokine levels in septic patients HA380 Disposable Hemopeusion Caridge which iswidely used in cardiac surge, severe acute pancreatitis(SAP), multiple organ dysfunction syndrome (MODS),acute respirato distress syndrome (ARDS),sepsis/septic shock, severe burns, etc. Hemopeusion Caridges DX-10 Blood Purication MachineJF-800A Hemopeusion MachineFuture F20 Hemoadsorption EquipmentMedical devices that provide extracorporeal circulation drive and safety monitoring forclinical blood purication Blood Purication Equipmente Acute and chronic renal failureComprehensive range of hemodialysis concentrates and powders, including high-potassium formulas, citrate-basedsolutions/powders, glucose-containing solutions, and solutions with vaing calcium ion concentrations13 specications of High-ux Hemodialyzers11 specications of Low-ux Hemodialyzers Dialysis Products 0910 Proprieta ProductsSince launching its rst HA series disposable hemopeusion caridge in 2002, Jafron has dedicated over 23 years to advancing adsorptiontechnology. It currently holds 28 medical device registration ceicates, including 25 Class III ceicates, spanning across the industrial chainof both consumables and medical devices in the blood purication eld. HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Direct Blood Adsorption Combined Aicial Kidney DPMAS? HA+CPB 1112 Proprieta TechnologiesDirect Blood Adsorption: This blood purication therapy involves drawing a patient’s blood into an external circulation system, where endogenousand exogenous metabolic waste, toxins and residual drugs are removed through adsorption by specialized resins within the hemopeusioncaridge. Leveraging its expeise in encapsulation technology, carrier preparation, ligand engineering and medical-grade purication processes,the Company has developed adsorbents with outstanding biocompatibility, clinical-grade safety and specic adsorption peormance, enablingsafe direct contact with human blood.Combined Aicial Kidney: This therapy combines hemopeusion with hemodialysis to achieve broad-spectrum removal of uremic toxins.By integrating the complementa mechanisms of peusion and dialysis, the system signicantly enhances the clearance of medium to largemolecules and protein-bound uremic toxins—oering a more eective solution than conventional blood purication methods.Double Plasma Molecular Absorb System (DPMAS ): DPMAS is an innovative aicial liver therapy pioneered by Jafron. It combines two propri-eta products—an ion-exchange resin-based bilirubin adsorption column (BS330) and a neutral macroporous resin-based hemopeusioncaridge (HA330-II)—to create a synergistic blood purication eect. DPMAS can be used either independently or in combination with plasmaexchange and other therapies. It enables rapid symptom relief, increases treatment success rates and improves prognosis outcomes. It isindicated for liver failure, hepatopulmona syndrome and multiple organ dysfunction syndrome (MODS), regardless of etiology.HA+CPB: This technique involves incorporating the HA380 Disposable Hemopeusion Caridge into a cardiopulmona bypass (CPB) circuit.Blood is diveed from a side branch of the oxygenator through the caridge and then returned to the reseoir. During this process, syntheticresins eectively adsorb inammato mediators generated during CPB treatment, helping to mitigate cytokine storm cascades. This signicantlyreduces systemic inammato responses during extracorporeal circulation in adult patients, stabilizes organ function and improves overallprognosis. The technology has been widely adopted in cardiac surge and other treatment scenarios. HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Anticoagulant Blood pump Anticoagulant Hemodialyzer HA130 Blood pump Blood pump Plasma separator Blood tank Oxygenator HA380 1314 Global Footprint Jafron’s Global Footprint HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Presence in countries (including Europe, Asia,the Middle East, Africa and South America) 90+ 8,000+Collaboration with hospitals worldwide 1516 Corporate Culture Vision Mission Spirit Core Values BusinessPhilosophy Building Excellence through Expeise,Winning through Quality and Seing with Integrity Innovation, Dedication, Advancing, Sharing Think Before You Act; Persevere Without Retreat Health Technology for a Better World Become a World-class High-tech Medical Technology Group HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo 19892002 Completed ownershiprestructuring and embarked onentrepreneurial transformation Launched agship product HA130Disposable Hemopeusion Caridgeand promoted Combined AicialKidney nationwide Introduced the “Jafron”trademark and established aproprieta brand Received the Second Prize ofNational Science & TechnologyProgress Award Renamed “Zhuhai JafronBiotechnology Co., Ltd.” Jafron Science and TechnologyPark headquaers completedand operational Listed on the ChiNext Market of theShenzhen Stock Exchange (A-shares)DPMAS included in theGuideline forNon-bioaicial Liver Suppo Systems inTreatment of Liver Failure: 2016 update 200420052009201020152016 201920202021202220232024 Establishment Major results achievedin multicenter RCT studyof HA130 DisposableHemopeusion CaridgeRenamed Jafron BiomedicalCo., Ltd. Jafron hosted the inaugural International Hemoadsorption SummitRecognized as a “NationalAdvanced Private Enterprise inthe Fight Against COVID-19”Jafron products included insevere COVID-19 treatmentguidelines across manycountries Honored as a “National Manufactur-ing Single-product ChampionDemonstration Enterprise”Published theHemopeusion inMaintenance Hemodialysis Patientsand Blood Purication StandardOperating Procedures (2021 Edition) Zhuhai Jinding Industrial Parkcommenced productionRecognized as a “National Tech-nology Innovation DemonstrationEnterprise”, “National EnterpriseTechnology Center” and “NationalModel Enterprise for HarmoniousLabor Relations” Awarded the First Prize of GuangdongScience & Technology Progress AwardSelected for the “Open Bidding forSelecting the Best Candidates” program;the only company in Guangdong toundeake development of medical-gradepolyethersulfone materialsSuccessfully hosted the 2nd International?Hemoadsorption?Summit Its resin adsorption technology awardedthe “People’s Craftsmanship TechnologyAward”Selected as a “2024 Healthy ChinaInnovative Practice Case” 2018 1718 Development Histo HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Jafron Science and TechnologyPark South Campus Jafron Science and TechnologyPark Noh Campus Tianjin Production Base Jinding Industrial Park (equity aliate - underdevelopment) Hubei Production Base Jianshu New MaterialsProduction Base Jianfu Pharmaceutical(under development) 1920 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Production Capacity & Strategic FootprintJafron’s self-funded blood purication R&D and production facility (Jafron Science and Technology Park South Campus) was successfully completedand commenced operations in 2015, covering 32,000 square meters of land and a total oor area of 65,000 square meters. In 2021, the Jafron Scienceand Technology Park Noh Campus was completed and began production, occupying over 18,000 square meters of land and a total oor area ofapproximately 55,000 square meters. Connected to the South Campus via the “Jafron Bridge”, the unied complex now stands as one of the world’slargest and most advanced R&D and manufacturing centers for hemodialysis and hemopeusion products and solutions, strengthening Jafron’sposition as a professional provider of comprehensive blood purication solutions.In 2017, Jafron acquired Tianjin Standard Biological Preparation Co., Ltd., followed by the launch of Tianjin Jafron Biotechnology Co., Ltd. in 2018.Together, these two entities formed the Tianjin R&D and production base for blood purication products, specializing in the development,manufacturing and sales of dialysis powders, concentrates and related products.In December 2021, the Company commissioned the Hubei Jafron Industrial Park which hosted several full value-chain blood purication projects,including the production of hemodialysis powder and concentrate. The park is positioned as a national benchmark for excellence in blood puricationmanufacturing, enabling Jafron to deliver more premium healthcare solutions to both domestic and global markets. With production bases nowestablished in Zhuhai, Hubei and Tianjin, Jafron has completed a tri-regional industrial layout, strategically covering South, Central and Noh China.The Jinding Industrial Park, developed by Jafron, spans nearly 90,000 square meters. The Phase I work, covering approximately 75,000 square metersof total oor area, was completed and operational in 2022. The Phase II work is planned to add another 120,000 square meters of construction area.Once fully completed, the park will focus on the production of hemopeusion caridges, nano-grade medical materials, hemodialyzers and plasmaseparators. It is poised to become one of the world’s largest and most technologically advanced production bases for blood purication devices andconsumables, laying a solid foundation for the Company’s vision to “Become a World-class High-tech Medical Technology Group”.The Jianshu Core Hemopurication Material R&D and Production Base, located in Zhuhai Gaolan Po Economic Zone, is owned and operatedby Jafron’s subsidia Zhuhai Jianshu New Materials Technology Co., Ltd. The company is positioned as a technology-driven, environmentallyfriendly chemical manufacturer. It operates two main project lines: strategic and prot-driven. The Phase I work focuses on the development ofhigh-peormance polymers and specialty high-value resins used in blood purication. The Phase II work focuses on high-end pharmaceuticaland dye intermediates. The Phase I construction of the biomaterials (including resin and other raw materials) project was structurally completedin August 2022 and will soon incorporate fully automated, high-eciency resin production lines. Upon completion, it will become a leading rawmaterials production base with top-tier automation and process capabilities in the ne chemical indust. Jianfu Pharmaceutical, a subsidia with its 10% equity owned by Jafron and controlled by the Company’s ultimate benecial owner, is developinga pharmaceuticals R&D and production base. Phase I of this project, spanning approximately 130 mu (about 86,700 square meters) and involvinga planned investment of around RMB 1.5 billion, was structurally completed in 2023. Jianfu Pharmaceutical has already initiated R&D on multiplespecialty medications for kidney diseases and is procuring state-of-the-a pharmaceutical equipment, aiming to build a rst-class pharmaceuti-cal research and production base in the near future. 2122 Key Accreditations Champion in Single-product Manufacturing Key High-Tech Enterprise underChina’s Torch Program National Technology Innovation Demonstration Enterprise National EnterpriseTechnology Center Major Scientic Research Awards Second Prize of National Science &Technology Progress Award First Prize of Guangdong Science &Technology Progress Award Ceications & Honors HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Corporate Honors Since 2024 Top 100 Innovative Enterprises in Zhuhai 2023 –Innovation Strength Index (Ranked 18th)Zhuhai Municipal Bureau of Science & TechnologyInnovation, Zhuhai Municipal Bureau of Indust andInformation Technology, Zhuhai Municipal Administra- tion for Market Regulation Top 100 Innovative Enterprises in Zhuhai 2023 –Economic Contribution Index (Ranked 5th)Zhuhai Municipal Bureau of Science & TechnologyInnovation, Zhuhai Municipal Bureau of Indust andInformation Technology, Zhuhai Municipal Administra- tion for Market Regulation Top 500 Advanced Manufacturing Enterprises in Guangdong ProvinceGuangdong Manufacturers Association, GuangdongProvincial Development and Reform Commission,Institute of Industrial Economics, Jinan University 2024 Healthy China Innovative Practice CasePeople’s Daily Online, health.people.com.cn National Model Workers’ Home All-China Federation of Trade Unions Red Cross Society of China Dedication MedalRed Cross Society of China Outstanding Contribution toCharitable Giving Award Zhuhai Federation of Indust and Commerce “6.30” Rural Revitalization Campaign – Caring Enterprise Zhuhai Municipal Bureau of Rural Revitalization Advanced Unit for Standardization Eos National Technical Committee on Medical Extracorpo-real Circulation Equipment Standardization Administra- tion “People’s Craftsmanship Technology Award”–Resin Adsorption Blood Purication Technology People’s Daily Online 2023 Zhuhai “Science and Technology InnovationProduct” – Disposable HemodialyzerZhuhai Society for Promotion of Science andTechnology Development 2024 Outstanding Case of Corporate Social Responsibility amongChinese Private EnterprisesAll-China Federation ofIndust and Commerce National March 8th Red-Banner CollectiveAll-China Women’s Federation Recognized Case: Building Family-Friendly Workplaces All-China Federation of Trade Unions, Minist ofHuman Resources and Social Security, National HealthCommission, China Enterprise Confederation/ChinaEntrepreneurs Association, All-China Federation of Indust and Commerce 2324 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Sustainability Governance Sustainability Governance Framework Stakeholder EngagementMateriality Management Jafron has remained steadfast in our mission of “Health Technology for a Better World”,embedding ESG principles into the ve fabric of our corporate strategy and day-to-dayoperations. We are committed to delivering safer and more sustainable healthcare solutions to people around the world. Case Study: ESG Training Initiatives During the repoing period, Jafron hosted several ESG training sessions through in-house business studies and external trainingprograms. Topics included “ESG Investment Best Practices in the Pharmaceutical Indust from an Active Equity Perspective”, “UnitedNations Advanced Seminar on Sustainable Development and ESG” and “Chinese Corporate ESG Repo Rating Standards (2023)”,among others. These training initiatives have signicantly enhanced internal awareness and understanding of ESG concepts and bestpractices. 2526 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Sustainability Governance FrameworkJafron has remained steadfast in our mission of “Health Technology for a Better World”, embedding ESG principles into the ve fabric of ourcorporate strategy and day-to-day operations. We are committed to delivering safer and more sustainable healthcare solutions to peoplearound the world.The Board of Directors is responsible for overseeing and coordinating sustainability governance eos. As pa of the preparation of thisinaugural ESG repo, the Board Secreta’s Oce led a cross-functional collaboration to collect, compile and review relevant data andpractices. Through this process, the Company systematically assessed its ESG peormance and practices, laying a strong foundation forcontinuous improvement of our ESG management system. Looking ahead, the Company will remain steadfast in its commitment to sustainabilitygovernance. We will continue to actively fulll our ESG responsibilities, fuher embedding sustainability into all levels of our operations as weadvance toward a more sustainable responsible future. Stakeholder EngagementThe Company identies the following stakeholders based on actual business operations: shareholders and investors, employees, customers,suppliers and paners, government or regulato agencies, as well as social organizations or NGOs. We actively engage with these stakeholdersthrough various channels to understand and respond to their expectations and concerns, ensuring mutual growth and long-term value creation. Stakeholders Shareholders and Investors Employees Customer Suppliers and Paners Government or Regulato Agencies Social Organizationsor NGOs Expectations and ConcernsCommunication and ResponseOperational complianceTransparent disclosuresReturn on investment High-quality, safe productsReliable after-sales seicePrivacy protection Operational complianceTax complianceRegulato cooperationEnvironmental complianceRural RevitalizationCommunity engagementSuppo for vulnerable groupsFullling Corporate Social ResponsibilityHealth educationEthics in science and technology Win-win collaborationHonest operationIndust communication and exchanges Protection of worker’s legal rights andinterestsEmployee training and developmentoppounitiesOccupational Health and Safety Improving corporate governanceGuaranteeing timely and accurate disclosuresStrengthening investor relations managementImproving protabilityComprehensive compensation and benetsClear training and career progression pathwaysImproving occupational health management andsafety monitoringEmployee care and engagement initiativesIncreasing R&D investmentsRobust product quality managementImproving customer seicesProtecting customer information and privacy Fullling tax obligationsCompliance with laws and regulationsEnhancing environmental managemenAlignment with rural revitalization policies Strengthening supplier engagementTransparent procuremenDeveloping strategic panerships Ongoing community outreachVolunteer paicipationCharitable donations Environmental Environmental complianceResponse to climate change Energy use Water resources utilizationPollutant dischargeWaste management Circular economy Ecosystem and biodiversity preseation Social Protection of worker’s legal rights and interestsEmployee training and developmentOccupational health and safetyInnovation-driven developmentData security and privacy protectionEthics in science and technologySupply chain securitySocial contributionsRural revitalization Product and seice safety and quality GovernanceAnti-bribe & anti-corruptionAnti-unfair competitionDue diligenceStakeholder engagement Materiality to economic, social and environmental impacts Highly material Highly materialModerately materialMateriality to the Company’s nancial position Environmental compliance Energy usePollutant dischargeWater resources utilizationCircular economyProtection of worker’s legal rights and interestsEmployee training and developmentOccupational health and safetyAnti-bribe & anti-corruptionWaste managementData security and privacy protection Due diligenceAnti-unfair competitionSocial contributionsRural revitalizationStakeholder engagementEcosystem and biodiversity preseationEthics in science and technology Supply Chain Security Response to climate changeInnovation-driven developmentProduct and seice safety and quality 2728 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Materiality ManagementJafron employed assessment methodologies based on both global and domestic disclosure standards such as theGuidelines No. 17 of ShenzhenStock Exchange for Self-Regulation of Listed Companies – Sustainability Repo (Trial)and GRI Standards, incorporating a dual analysis of bothimpact materiality and nancial materiality to identify and assess material topics. The following table presents the specic steps of assessment: List of Material Topics Materiality Assessment Results Based on the above list of material topics, and following in-depth analysis of exchange guidelines and stakeholder suey responses, theCompany has developed a materiality matrix using the dual lenses of impact materiality and nancial materiality. Step 1 Background AnalysisStep 2 Initial Issue Screening Step 3 Materiality Assessment Step 4 Issue Conrmation Material Issue Assessment Process Analytical ApproachAssessed macro trends at the global level and within China’s industrial landscape, andanalyzed the Company’s indust characteristics and business model to identify potentialimpacts, risks and oppounities the Company and its stakeholders currently face.Developed a pool of 22 material topics by drawing upon domestic and internationalsustainability rating methodologies along with best practices from indust peers, takinginto account indust characteristics, market trends and the Company’s business model.Analyzed the extent to which the Company’s peormance on each topic signicantly aectsthe economy, environment and society， and conducted a stakeholder suey, yielding 283valid responses. Based on this, 14 topics were identied as having impact materiality. Compiled a materiality matrix based on the results of Step 3, distinguishing those based onimpact materiality and nancial materiality and ensuring that all relevant topics are presentedin a transparent, balanced and comprehensive manner. Impact Materiality Assessment Analyzed the results of the suey, focusing on the impact, dependencies and other relevantfactors; and integrated expe judgment and risk assessment inputs from various depamentsinto the process to identify and evaluate the risks and oppounities associated with eachtopic. This resulted in the identication of 4 topics holding nancial materiality. Financial Materiality Assessment 2930 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Crafting Excellence to Propel IndustDevelopment TogetherDriven by the core values of “Innovation, Dedication, Advancing, Sharing”, Jafron remains committedto technological innovation. It continually enhances product quality and safety management, improvescustomer seice capabilities, safeguards data privacy and security and renes supply chain excellence, working collaboratively to propel indust development. Sma Innovation: Key to Technology-Driven Growth Excellence in Quality: Our Foundation for Trust Data Security and Privacy ProtectionStable Supply and Security Assurance SDGs Risks Risk TypeDescriptionResponses ImpactPeriod PotentialFinancialImpact Policy andregulatorisk Technologyupgrade risk Sho- andmedium-term Increasedoperating costsThe medical device sector is subject tostringent government regulation. TheCompany must closely monitor changesin policies such as theRegulations on theSupeision and Administration of MedicalDevicesto ensure legal compliance. Failureto do so could result in penalties, lawsuitsor other legal consequences. 1. Closely monitor and study national and local policy and regulatochanges. 2. Timely adjust business strategies in response to market rule changesand regulato updates induced byhealthcare system reforms. Medium-term Decreased revenueAs R&D investment increases across theindust, new technologies and innovativeproducts are likely to emerge in the nearfuture. If the Company fails to keep pacewith indust advancements or updateits existing products in time, it may faceadverse business impacts. 1. Prioritize the development of a robust R&D system, enhanceforward-looking strategic planning intechnology innovation, and increaseinvestment in new product develop-ment aligned with market demand. 2. Continuously upgrade and optimize existing technologies. 3. Strengthen IP protection to prevent leaks and infringement. 3132 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Sma Innovation: Key to Technology-Driven GrowthJafron remains committed to innovation-driven development, with sustained R&D investment, strengthened talent pipelines and platformbuilding to enhance in-house R&D capabilities. Focusing on the eld of blood purication, the Company continues to develop new technologiesand products, explore broader applications and elevate its core competitiveness with the aim of contributing to the advancement of globalhealth. The Company boasts strong in-house R&D capabilities and operates a comprehensive range of research platforms, including the NationalEnterprise Technology Center, Academician Workstation, Postdoctoral Research Workstation, Provincial Enterprise Technology Center, ProvincialEngineering Technology Development Center, Provincial Engineering Research Center and Provincial Postdoctoral Workstation. In addition, it hasestablished a Hemopeusion Technology Research Institute and a Product Testing Center for Blood Purication, with a focus on the research ofcore and common technologies in the indust. The Testing Center has been accredited by China National Accreditation Seice for ConformityAssessment (CNAS), providing robust technical suppo for the R&D platforms. Through continuous improvements in functionality and The Company has established a suite of policies in accordance with domestic and international laws, technical guidelines and standards, including: the Guidelines for New Product Development Project Planning, the End-to-End Process and Role Descriptions for New Product Development, theR&D Project Initiation Management Regulationsand theR&D Project Closure Management Regulations. These documents dene the requirementsand specications for R&D planning, full lifecycle product development and project closure. The Company has also built a collaborative R&Dorganizational structure with clearly dened roles and responsibilities, suppoed by a project lifecycle management tool (PPM system), to fosterthe initiation of R&D projects, accelerate the development of new quality productive forces and enhance the indust’s core competitiveness.During the repoing period, the Company established a new R&D and Innovation Center to fuher strengthen its innovation system and enhanceoverall innovation eciency, ensuring that innovation outcomes align with the Company’s strategic needs and operational eciency. Innovation-driven Governance The Company closely monitors changes in the internal and external environment of the indust. It publishes quaerly Indust Insight Repos,identifying relevant factors such as national policies, competitive dynamics and technological developments. These insights help the Companyproactively identify R&D-related risks and oppounities and develop responses aligned with its innovation strategy, thereby enhancing itscompetitive edge and maintaining its leading position in the indust. Innovation-driven Strategy R&D and Innovation Platforms CNAS Laborato Accreditation Ceicate Jafron is committed to medical technology innovation and continuously strengthens its R&D talent pipeline. Through internal and externaltraining, learning and case sharing, the Company broadens the knowledge of its R&D personnel, enhances their technical capabilities andimproves their expeise. Targeted training resources are introduced based on specic needs, fostering vitality and building a well-structured,innovation-driven R&D team with the ultimate goal of bolstering the Company’s R&D capacities. As of the end of the repoing period, theCompany employed a total of 486 R&D personnel, presenting 17.38% of the workforce. Innovative Talent Development National High-TechEnterprises National EnterpriseTechnology Center National Technology InnovationDemonstration Enterprise Specialized and Sophisticated Enterprisethat Produces Novel and Unique Products Champion in Single-productManufacturing mechanisms, the Company has enhanced its innovation capabilities and accelerated the commercializationof research achievements, demonstrating its solid strength and forward-looking approach in scienticresearch and innovation. Risks Risk TypeDescriptionResponses ImpactPeriod PotentialFinancial Impact Competition risk 3334 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo The Company adheres to its phased R&D strategy of “products in market, products in resee and products under development”， and hasformulated medium- and long-term plans to guide innovation. During the repoing period, the Company increased R&D investment, strengthenedtechnical capabilities of its R&D team and continuously advanced the commercialization of scientic and technological achievements to suppostrategic goal execution. Metrics and Targets Medium- and long-term IMarket shareandrevenue loss With the rapid growth of the domestichemopeusion indust, expansion ofexisting enterprises and the ent of newplayers, competition is intensifying acrossthe indust. Without continuous innovationin technology and product oerings, theCompany may face a decline in marketcompetitiveness. Oppounity TypeDescription ImpactPeriod Potential Financial ImpactOppounity Industrial upgradingand transformation Medium- andlong-termTechnological innovation is a key driver of industrialupgrading. By introducing new technologies, processesand management approaches, the Company can helpdrive the indust towards higher-end and smaerdevelopment. Reduced production costs andimproved production eciency Technological innovationand market leadership Long- termIncreased revenuePersistent R&D eos and breakthroughs in core tech-nologies, along with continuous development of newproducts, can help the Company signicantly enhanceits competitive strength, secure market leadership andgarner substantial prot returns. 1. Continue to focus on principal businesses, persist in technologicalinnovation, actively expand productpofolios, and drive technologicaltransformation of products alongsideupgrade of their applications. 2. Consistently enhance automation levels in production processes andIT-enabled management capabilities,develop Hemopeusion CaridgeManufacturing 4.0, and continuouslystrengthen integrated sma manufac-turing capabilities. Sho-term (within 1 year): Impact is rapid and tempora, typically lasting less than one year.Medium-term (1–5 years): Impact is sustained and has signicant inuence over a period of one to ve years. Long-term (over 5 years): Impact is far-reaching and long-lasting, generally extending beyond ve years. R&D Objectives Develop new technologies, materials and products to rene the bloodpurication indust chain and enhance core competitivenessReinforce R&D platform development to improve both the quality andeciency of research and developmentStrengthen R&D talent development and collaboration with internal andexternal research forces to boost overall R&D capacity 2024 Progress R&D spending millionRMB 8.97% presenting of total revenueBy the end of the repoing period, the Company held 28 medical device registration ceicates, including 25 Class III ceicates.In 2024, the Company acquired one new domestic registration ceicate; HA series, BS series, CA series, KHA series and plasmaseparator series passed the CE (MDR regulation) ceication.In 2024, the Company led a total of 53 patent applications and acquired 27 new granted patents (valid), including: 17 inventionpatents, 8 utility model patents and 2 design patents.Total number of registered trademarks: 243 ; academic output: 1 paper published. 3536 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Key R&D ProjectsTrial production ObjectiveTarget OutcomeHemodialysisProductDevelopment To develop a hollow berhemodialyzer to address toxinaccumulation in ESRD (uremia)patients Enrich product pofolioand enhance core compet-itivenessLaunch new products and obtain registrationceicates; achieve internationally advancedtechnical standards; ensure compatibility withexisting hospital equipment. Simultaneouslydevelop new materials to reduce reliance onimpoed raw materials and enhance productpeormance. Expected Impact on FutureDevelopment Product launched ObjectiveTarget OutcomeEquipmentPeormanceOptimization To enhance equipment peor-mance to better meet clinicalneeds Enrich product pofolioand enhance corecompetitivenessOptimize hardware and software to developcost-eective equipment suited to domesticclinical applications. Expected Impact on Future Development Registration ling ObjectiveTarget OutcomeConsumables for BloodPurication To develop universal andspecialized tubing sets foruse with equipment andother blood puricationconsumables Enrich product pofolioand enhance core compet-itivenessLaunch new products to provide compatibleconsumables for various equipment and bloodpurication products. Expected Impact on FutureDevelopment Trial production ObjectiveTarget OutcomePlasmaAdsorption Products To develop disposableblood/plasma adsorptionproducts for clinical treatmentof bilirubin adsorption, inam-mato mediators, autoimmunediseases, etc. Enrich product pofolioand enhance core compet-itivenessDevelop new products and optimize existingproducts; obtain registration ceicates oramendment approvals; achieve improved clinicalecacy. Expected Impact on FutureDevelopment Registration ling ObjectiveTarget OutcomeBloodPuricationEquipment To develop continuous bloodpurication (CBP) equipmentfor clinical blood puricationtreatment Enrich product pofolioand enhance core compet-itivenessSuppo a wide range of blood purication clinicalmodes; provide extracorporeal circulation driveand safety monitoring for CBP, hemopeusion,plasma adsorption and plasmapheresis. Expected Impact on FutureDevelopment Trial production ObjectiveTarget OutcomeHemopeusionProducts To develop disposablehemopeusion caridgesfor clinical treatment ofendotoxin/cytokine removal Enrich product pofolioand enhance core compet-itivenessDevelop new products and obtain registrationceicates; suppo eective treatment ofrelated diseases. Expected Impact on FutureDevelopment Basic research ObjectiveTarget OutcomeProduct Upgradesand IterativeDevelopment To launch upgradedproducts and introducenew material alternatives Improve competitivenessof existing products,reduce costs and enhanceeciencyDevelop new materials to improve productpeormance; upgrade manufacturing processesto promote iterative improvements to existingproducts. Expected Impact on Future Development To eectively promote research, development and innovation, the Company has established policies such as the Regulations on Incentives forR&D Projects and the Regulations on Incentives for R&D Ideas. These mechanisms provide multiple layers of rewards—including project-based,patent-related and idea-based incentives—to recognize signicant R&D achievements and contributions that facilitate innovation. TheCompany actively encourages both internal sta and external paners to propose innovative R&D ideas, fostering an environment conduciveto the initiation of breakthrough projects. During the repoing period, the Company was granted 5 incentive awards, totaling RMB 311,000along with patent-related incentives totaling RMB 72,300 . Innovation-Driven MeasuresIncentives for R&D Innovation The Company actively leverages the intellectual resources of universities and research institutes, and has been approved to establish acomprehensive range of research platforms, including the National Enterprise Technology Center, Academician Workstation, PostdoctoralResearch Workstation, Provincial Enterprise Technology Center, Provincial Engineering Technology Development Center, Provincial EngineeringResearch Center and Provincial Postdoctoral Workstation.To fuher deepen the integration of indust, university, research and application, the Company has introduced several institutional policies,including the Scientic Research External Collaboration Regulations and the Regulations on the Management of Postdoctoral ResearchWorkstation. These documents help regulate the management of external expes, research institutions and postdoctoral research worksta-tions. In addition, we collaborate with academic and research institutions through joint laboratories, co-development initiatives, commissionedresearch, and joint postdoctoral training, eectively utilizing external research resources to improve R&D speed, quality and overall researchcapacity. The Postdoctoral Management Oce is responsible for routine administrative matters such as recruitment, onboarding andcompletion procedures, and also plays a role in attracting high-level talent and facilitating collaboration Strengthening Indust-University-Research Collaboration 3738 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo across mobile research stations. The Company has established in-depth panerships with institutions such as the Shenzhen Institutes ofAdvanced Technology, Chinese Academy of Sciences, Sun Yat-sen University Postdoctoral Research Workstation, Shenzhen NationalInnovation Center for Advanced Medical Devices, and Hexaell Biotech. These collaborations focus on joint technology development andenhancement of innovation capabilities.In addition, we have co-founded a Multi-Organ Suppo Therapy (MOST) Expe Committee with several world-renowned expes in clinicalresearch and critical care medicine. The committee aims to provide robust evidence and new solutions for the global clinical application ofMOST. As a co-builder of the healthcare indust ecosystem, Jafron has actively paicipated in domestic and international academic conferences andtrade exhibitions in elds such as nephrology, hepatology, critical care and sub-health. By paicipating in these events, the Companystrengthens communication with peers, explores the latest indust developments, cutting-edge technologies and research outcomes, andshares knowledge and expeise to jointly advance technological progress and research in the medical device eld—ultimately beneting morepatients. The Company also contributes to the development and publication of various indust standards and clinical guidelines, suppoingthe healthy and orderly growth of the indust and promoting sustainable development in panership with other stakeholders. Enhancing Indust Engagement Paicipation in Indust Exchange Activities during the Repoing Period 2024 Global Healthy Longevity Conference 2024 Chinese Society of Nephrology Critical Care Nephrology & Blood Purication Conference Conference of the Chinese Society of Nephrology 2024 (CCSN 2024) 61st Annual Convention of the European Renal Association (ERA)Nephrology Society ofThailand Annual Meeting2024 High-Quality Development Forum forAicial Liver & Blood PuricationTechnology Demonstration Centers Paicipation in Indust Exchange Activities during the Repoing Period 6th China Critical Care Medicine Research Forum & Therapeutic Technology Conference International Training Course onCritical Care Blood Purication The Company places great impoance on intellectual propey (IP) management and protection. In accordance with the Patent Law of thePeople’s Republic of China and other relevant laws and regulations, and based on the Company's actualities, it has formulated the PatentManagement Regulations to regulate patent application, incentives and maintenance activities. In addition, the Company has established apatent classication and evaluation system and built an information platform to suppo lifecycle IP management.The Company has been ceied under the GB/T 29490-2013 Intellectual Propey Management System and has been recognized as a“National Intellectual Propey Demonstration Enterprise”. The Company incorporates patent and trademark planning from the initial stages of product development. All patents undergo internalapplication, evaluation, review, infringement analysis and patent monitoring to ensure that each IP acquisition sees a clear commercialpurpose and rests on a solid technical foundation. From project initiation to completion, patent infringement searches ensure a smooth path tomarket, while a dedicated legal team handles infringement disputes to safeguard the Company’s technologies and products from infringement.During the repoing period, no incidents of IP infringement were repoed. Intellectual Propey ProtectionTitleTypeStatusReference No.Disposable Plasma Bilirubin Adsorption ColumnYY 1290-2016PublishedIndust StandardrDisposable Hemopeusion CaridgeYY/T 0464-2019 PublishedIndust StandardrGuideline for Non-bioaicial Liver Suppo Systemsin Treatment of Liver Failure: 2016 update Chinese Journal of Clinical Infectious Diseases, Vol. 9, No. 2, 2016-4 PublishedGuidelineGuidelines on the Management of HepaticEncephalopathy in Cirrhosis (2018) Journal of Clinical Hepatology, Vol. 34, No. 10, 2018-10 PublishedGuidelineGuideline for Diagnosis and Treatment of Liver Failure (2018) Journal of Clinical Hepatology,Vol. 35, No. 1, 2019-1 PublishedGuidelineBlood Purication Standard Operating Procedures (2021 Edition) /PublishedSOP Paicipation in Standard/Guideline Development Core Compliance RequirementsAll trial protocols are approved by the Ethics Committee and strictly follow legal and regulatostandards, ensuring informed consent, privacy protection and risk minimization for subjects. Subject information is encpted and handled with full traceability, used solely for researchpurposes.Clinical trials are conducted in accordance with theRegulations on the Supeision and Admin-istration of Medical Devices, GCP (Good Clinical Practice) and other relevant guidelines, withinterim repos submitted to regulato authorities to ensure transparency and compliance. Ethical Review Data Security Quality Supeision 3940 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo While committed to the research and development of medical devices, Jafron fully recognizes that its business operations involve key areasof ethics in science and technology, including but not limited to data privacy protection and the ethical review and responsible application ofscientic research outcomes. The Company strictly complies with relevant laws and regulations to ensure a balance between technologicalinnovation and social responsibility. During the repoing period, no incidents of major violations related to ethics in science and technologywere repoed. Ethics in science and technology The Company has established an Institutional Animal Care and Use Committee (IACUC). Its laborato animal facilities within the ScienceBuilding are licensed for animal use. All animal experiments are conducted in strict compliance with the following regulations and guidelines: GB 14922-2022 Laborato Animal—Microbiological and Parasitical Standards and Monitoring, GB 14923-2022 Laborato Animals GeneticQuality Control, GB 14925-2023 Laborato Animal─Environment and Housing Facilities, GB/T 39760-2021 Laborato Animal-Guidelinesfor Euthanasia, Regulations on the Administration of Laborato Animals, Guiding Opinions on the Humane Treatment of Laborato Animalsand GB/T 35892-2018 Laborato animal—Guideline for ethical review of animal welfare. The Company has developed a comprehensive setof laborato management systems and standard operating procedures to ensure that all production activities respect animal life and welfareand uphold public ethical standards. Animal Experiments In the eld of clinical trials for medical devices, the Company strictly adheres to the following regulato and ethical standards: Regulations onthe Supeision and Administration of Medical Devices, Regulations on the Administration of Registration and Filing of Medical Devices, HelsinkiDeclaration,and Administrative Measures for the Ethical Review of Life Science and Medical Research Involving Human. The Company ensuresthat all clinical trials align with the principles of protecting subject rights, data authenticity and risk controllability. Through ethical reviews, subjectrights protection and data security management, the Company complies with both domestic and international laws and ethical standards,ensuring its scientic research activities are legal, safe, socially valuable and respectful of subject rights. Medical Device Clinical Trials To enhance employees’ knowledge and skills in animal ethics, the Company conducts training on science and technology ethics through acombination of internal and external programs, based on its annual training plan. The training covers topics such as ethical principles forprofessionals, laborato animal specications, biosafety related to laborato animals, and regulato requirements for clinical trials of medicaldevices. We are committed to continuously improving our tiered training system, facilitating the transformation of ethical awareness intopractical execution, and building a dual-driven mechanism of “Technological Innovation + Ethical Safeguards” to ensure a sustainable balancebetween research value and the rights of trial subjects. Ethics Awareness Development Animal Experiments – Evaluation and Testing Center Case Study: Jafron Organizes Specialized Training on Supeision over Clinical Trials of Medical Devices 4142 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Jafron pioneered the use of resin as an adsorbent material and was the rst globally to develop “direct blood adsorption” technology, oeringinnovative solutions for critically ill patients with conditions such as uremia, severe liver disease and lupus. These new technologies have enabledphysicians to treat diseases that were previously considered untreatable, thereby creating signicant social value. Jafron is also committed toexpanding the global reach of its products to benet more patients worldwide. Driven by technological innovation, the Company continues toinvest in R&D to overcome technical bottlenecks and deliver more high-quality products and solutions, with the aim of improving treatmentoutcomes for patients. At the same time, we promote health education through channels such as the Jafron WeChat ocial account and the“Aduoduo” health management seice platform, oering product knowledge sessions, expe lectures and real-world patient stories. Medical AccessibilityExcellence in Quality: Our Foundation for TrustWe operate under a robust quality philosophy: “rooted in precision, committed to quality, ensuring safety and ecacy, continuously improving,and delivering products and seices that earn customer trust”. In alignment with theProduct Quality Law of the People’s Republic of Chinaandother relevant laws and regulations, we have developed a robust quality management system to safeguard the integrity of our products andseices. During the repoing period, the Company repoed zero major quality or safety incidents and received no large-scale quality-relatedcomplaints. Quality Management System Ceicate The Company has built a comprehensive and standardized quality management system aligned with ISO 9001 and ISO 13485 quality managementstandards. Key internal governance documents — including theQuality Manual, Product Assurance Control ProceduresandProduct Identicationand Traceability Control Procedures— provide structured guidance to ensure product quality. We’ve established a dedicated quality managementorganizational structure. The President, who sees as the designated executive accountable for the safety and quality of all medical deviceproducts, oversees all product quality-related work. Cross-functional teams work in conce to execute quality management tasks and drivecontinuous system improvement, thereby reinforcing our commitment to quality and customer satisfaction.To date, the Company and its major subsidiaries have successfully obtained ISO 9001 quality management system ceication and ISO 13485medical device quality management system ceication. During the repoing period, our HA and BS series disposable hemopeusion caridgesobtained ceication under the EU Medical Device Regulation (MDR), underpinned by rigorous clinical evidence and a mature quality system. Quality Governance 4344 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Product and Seice Safety & Quality Strategy Quality Targets Major (or above) quality incidents = 0;serious quality incidents ≤1 Number of recalls due to qualityissues: 0 2024 ProgressAchieved 2024 ProgressAchieved The Company sets yearly quality management targets and closely tracks peormance to ensure continuous improvement. Any identied gapsare addressed through timely corrective actions to strengthen our quality systems. Metrics and Targets Sho-term (within 1 year): Impact is rapid and tempora, typically lasting less than one year.Medium-term (1–5 years): Impact is sustained and has signicant inuence over a period of one to ve years.Long-term (over 5 years): Impact is far-reaching and long-lasting, generally extending beyond ve years. Oppounity TypeDescription ImpactPeriod Potential Financial ImpactOppounity Marketoppounity Medium- andlong-termGrowing demand for higher safety and quality standardsin medical devices oers the Company an oppounityto upgrade product oerings, elevate brand value andcapture greater market share. Increased pricing, sales andrevenueTechnologicaloppounity Medium- andlong-term Reduced production costsThe continued evolution of intelligent manufacturing anddigital transformation enables the Company to enhanceseice quality and operational eciency by leveringautomation and other technologies. Risks Risk TypeDescriptionResponses ImpactPeriod PotentialFinancialImpact Regulatorisk Medium-term Increasedcomplianceand operatingcosts Hemopeusion products aresubject to rigorous regulatooversight related to manufacturing,marketing authorization andcorporate qualications. Enterprisesmust swiftly adapt to evolving lawsto ensure ongoing compliance. 1. Conduct regular reviews of policies and regulations; ensuretimely product ceications toensure product compliance withestablished standards. 2. Strengthen quality control through comprehensive qualitymanagement. 3. Peorm routine inspections and monitoring to identify potentialquality issues. 4. Provide quality training to enhance employee expeisein product knowledge and equip-ment operation. Product quality or customercomplaintsSho-term Increasedoperatingcosts andreputational lossPost-sale quality issues or customercomplaints, especially mass returns,can signicantly undermine brandreputation and customer loyalty. 1. Establish a responsive and robust after-sales seice systemto capture feedback and drivecontinuous improvement in,product design and seice quality. 2. Maintain a proactive product recall mechanism to ensure swiftresponse to and resolution of anyquality incidents. Product safety risk Medium- andlong-term Increasedoperatingcosts anddecreasedrevenue As our core product — the dispos-able hemopeusion caridge —comes into direct contact withhuman blood, the product safety iscritical to patient lives and health.Any compromise in product safetymay result in serious medicalincidents, potentially harmingbrand reputation. This could lead toproduction halts, a loss of marketshare and a reduction in sales. 4546 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo The Company has established theRisk Management and Control Procedures, creating a well-dened framework that outlines the riskmanagement process and responsibilities. Its operations are guided by the principle of “avoiding risk where possible; minimizing risk whereavoidance is not feasible; and actively monitoring and mitigating risk through corrective and preventive actions”. Through risk management,we ensure that all potential risks across the entire lifecycle of medical devices — from design and development to production, usage anddisposal — are identied and controlled within acceptable thresholds. Risk Management Risk Management Plan Risk Analysis Risk Evaluation Risk control Comprehensive Residual Risk Evaluation Risk Management ReviewProduction and Post-Production Activities Risk Management Process Risk Management Risk Assessment General ProvisionsInformation gatheringInformation ReviewMeasures Intended Use and Reasonably Foreseeable MisuseIdentication of Safety-Related CharacteristicsHazard and Hazardous Conditions IdenticationRisk Estimation Risk Protocol AnalysisImplementation of Risk Control MeasuresResidual Risk EvaluationBenet-Risk AnalysisRisks Arising from Risk Control MeasuresRisk Control Integrity We maintain an uncompromising commitment to quality management, embedding quality controls throughout the entire product lifecycle —from planning, design and development, procurement, manufacturing and delive to after-sales seices. To ensure consistent product qualitythat meets both customer expectations and regulato requirements, we have implemented a suite of procedural documents, including theProduction Process Control Proceduresand Product Protection Control Procedures, to govern each phase of product realization with precisionand rigor. In parallel, we deploy a multi-tiered inspection framework that includes incoming sampling, in-process sampling, engagement ofthird-pay testing agencies, and warehouse ent and exit inspections to eectively detect and mitigate potential quality risks.During the repoing period, the Company conducted2 internal quality audits and arranged 6 third-pay inspections. Quality Lifecycle Management In alignment with the European Union’s RoHS directive which restricts the use of ceain hazardous substances, we have developed theRoHSControl Procedurestailored to our operational context. This document governs hazardous substance management across all stages — frommaterial procurement and manufacturing to packaging, storage and transpoation — ensuring that all components, semi-nished goods andnished products comply with RoHS standards. Restriction of Hazardous Substances (RoHS) During the repoing period, we actively organized and conducted product quality awareness development and training programs in line with the2024 Production System Training Plan. These programs covered a wide range of topics including product knowledge, adverse event monitoring,manufacturing quality, and applicable medical device regulations concerning facilities and equipment. The training aims to enhance employees’quality control skills and quality awareness, encourage full paicipation in quality management and mitigate the risk of contamination duringpharmaceutical manufacturing, ultimately guaranteeing product safety and integrity. Product Quality Training Product Safety and Quality Management 4,953 KPIs Quality training paicipants person-times24,672 Total quality training hours hours Total quality training sessions 4748 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Case Study: Quality Training Sessions To ensure eective identication and control of non-conforming products and prevent unintended use or distribution of these products, wehave established theNon-Conformance Control Procedureswhich clearly dene the requirements for identication, documentation, segregation,evaluation and disposition of nonconforming items.Additionally, we have implemented policies including theField Safety Notication, Product Recall and Information Disclosure Control Proceduresand the Product Recall Control Procedures to manage product safety communications and recalls. Cross-functional teams from QualityManagement, Customer Seice and Sales are responsible for issuing domestic eld safety notices and executing recalls of medical devices.These teams conduct timely root cause analyses, provide supplemental information and guidance and implement corrective actions to ensurethat any potentially defective products are promptly removed from the market — safeguarding the health and safety of patients and healthcareprofessionals. Non-conformance Control and Product Recalls We actively engage in academic collaboration and promotion, accumulating substantial evidence-based data and clinical research ndings innephrology, hepatology and critical care to validate the safety, ecacy and cost-eectiveness of our products. These high-quality researchoutcomes provide a solid scientic foundation that suppos product safety and helps increase market acceptance. Besides, these clinicalresearches empower healthcare professionals and patients with transparent and science-backed information, helping them make informedtreatment decisions and deepening their trust in our products. Evidence-Based Product Validation Guidelines & ConsensusStatements Guideline forNon-bioaicial LiverSuppo Systems inTreatment of LiverFailure: 2016 update Chinese guidelines onthe management ofhepatic encephalopa-thy in cirrhosis (2024)Consensus on themanagement of liver injuassociated with targeteddrugs and immunecheckpoint inhibitors forhepatocellular carcinoma(version 2024)Expe consensus onthe application ofaicial liver bloodpurication system inthe treatment of severeand critical COVID-19Guidelines for diagno-sis and managementof drug-inducedliver inju causedby anti-tuberculosisdrugs (2024 version) Chinese guidelinefor diagnosis andmanagement ofdrug-induced liverinju (2023 version) Guideline for diagno-sis and treatmentof liver failure (2024version) TechnicalStandards &Specications Expe consensus onclinical applicationof aicial liver andblood purication (2022 edition) Clinical application andtechnical operationspecication of dual plasma molecularadsorption systemBlood PuricationStandard Operating Procedures (2021 Edition) Practice protocol ofaicial liver supposystem/continuous bloodpurication in pediatric acute liver failureExpe consensuson non-bio aicialliver equipment and technology Evidence-Based Medicineon HemopeusionHealth Economics ResearchFindings on HA130 Disposable Hemopeusion Caridge National Health Economics Research Findingson HA130 Disposable Hemopeusion Caridge Jointly released by the National Health Development Research Center and the National Center forEvaluation of Medicines and Health Technologies Shanghai Health Economics Research Findings on HA130 Disposable Hemopeusion CaridgeReleased by the Shanghai HealthDevelopment Research CenterBased on multicenter RCT research andreal-world cost data L ife expectancy extended by . years(a . % increase compared to dialysis alone)Comprehensivemulti-dimensionalevaluationProven economicbenets G ains of . additional life yea rs Comprehensivemulti-dimensional evaluation Demonstratedcost-eectiveness Evidence-Based Medicineon HemopeusionSOP & Shanghai Expe Consensus Standard Operating Procedures for Blood Purication (2021 Edition) Issued by the National Health Commission and edited by Academician Chen XiangmeiClearly dene the indications for hemopeusion Shanghai Expe Consensus on the ClinicalApplication of Hemopeusion in MHD PatientsProvide clinical guidance for the standardizedand rational application of hemopeusion in MHD patients E  ectively relieve pruritus sym ptoms2-hour combinedtherapy with HA resinhemopeusioncaridge andhemodialyzerOnce per week Standardized andrational treatmentprotocolsTreatmentfrequencyPatient selectioncriteriaPrecautions Treatment modalities Improve clearance rates of serumiPTH and β2-microglobulin inmaintenance hemodialysis (MHD)patients Evidence-Based Medicineon HemopeusionMulticenter RCT ResearchFindings on HA130 Disposable Hemopeusion Caridge National Multicenter RCT Research Findings onHA130 Disposable Hemopeusion CaridgeInitiated by Academician Chen Xiangmei; involves 37 centers over 4 yearsSuppoed by the National 12th Five-Year Science andTechnology Suppo Program (dual research topics) Shanghai Multicenter RCT Research Findings onHA130 Disposable Hemopeusion CaridgeInitiated by Professor Jiang Gengru;involves30 centers over 5 years Targeting suival; large sample size; long-term follow-up Class A evidence in evidence-based medicine Signicant reliefof pruritus symptoms Good safetyprole High eciency intoxin removal Class A evidence in evidence-based medicine Fewer cardiovascular eventsReduced all-causeand cardiovascular moality Improvedquality of life 4950 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo In alignment with our goals of enhancing quality, reducing cost and improving eciency, we are accelerating the digital transformation of ourhemopeusion caridge production line. By focusing on digitalization and intelligent manufacturing, we aim to standardize, automate, informatizeand visualize our production processes, thus laying the foundation for developing new quality productive forces and building a highly automatedworkshop that embodies the distinctive strengths of Jafron. To suppo our digital transformation strategy and strengthen managerial awareness and capabilities in this area, we panered with theGeneral Manager of Midea Cloud Technology Co.，Ltd, who led an intensive training course titled “Digital Operation Across the Full ValueChain”. This training targeted managers and key personnel in roles closely associated with digitalization. Hemopeusion Caridge Manufacturing 4.0 initiative involves automated stages of hemopeusion caridge production, includingbreakthroughs in critical processes such as automated visual inspection, integrated ding and wrapping and improved cleaning cycles.We have advanced toward multi-process integration, enabling continuous ow production and sma logistics systems. We are alsodeveloping an integrated suite of digital management systems, including MES (Manufacturing Execution System), WMS (WarehouseManagement System), QMS (Quality Management System) and LIMS (Laborato Information Management System), to drive higheroperational eciency and realize true IT/OT convergence.By advancing across six strategic pathways — process optimization, equipment upgrades and renovation, digital system deployment,new workshop construction, sma logistics and management enhancement — and leveraging 20 core technologies, we aim tosignicantly improve productivity, reduce costs, enhance product quality, shoen lead times and eliminate major safety hazards, ulti-mately creating a sma, ecient, cost-eective, high-quality, compliant and responsive digital facto for hemopeusion caridges. Digital and Intelligent Transformation Case Study: Hemopeusion Caridge Manufacturing 4.0 Mission ProcessOptimizationStable, scalable,ecient andlow-costoperations Development offully automatedcontinuousproduction lines End-to-enddigitalization Deep integrationand applicationof advancedtechnologies Transparent,real-time andautomated logisticsmanagement Ecient, preciseand real-timemanagement EquipmentUpgradesand Renovation Digital SystemDeployment New WorkshopConstruction ManagementEnhancementSma Logistics Sma Manufacturing PlantStable quality, optimal cost and exible delive SixStrategicPathways Case Study: Specialized Training on Digital Empowerment Established in 2002, our Customer Seice Center is staed entirely by female professionals with medical backgrounds. Through ongoinginnovation and continuous improvement, we have professionalized and standardized our seice delive while also adding a human touch,thereby creating a signature seice brand built on care and trust.Upholding our seice philosophy of “Sincerity First, Customer Above All”, thecenter sees over 300,000 customer interactions annually, promoting our originalproducts across more than 6,000 hospitals nationwide and providing suppoto tens of thousands of healthcare professionals and patients. Our meticulousseice and long-term dedication help us earn widespread trust and recognitionfrom our customers. We are also pioneering innovative digital after-sales seiceplatforms based on role-specic needs, enabling 24/7 online suppo to fuherenhance the customer experience. Our team provides full-cycle seice — frompre-sales consultation and in-sale suppo to post-sales technical assistance —while also sharing cutting-edge academic insights and conducting extensiveproduct seice research to gather feedback and drive continuous product andseice enhancement. Beyond technical suppo, we actively engage in patientcare initiatives tailored to the needs of dialysis patients. Programs such as “Care5152 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Customer-Centric Seice with Dual-Engine Excellence We place customer needs at the hea of evething we do and remain committed to earning customer trust and reputation with top-notchseice. With a dual-engine approach that integrates both product quality and seice excellence, we continue to optimize seice workows,elevate the customer experience and ensure that eve client receives professional and attentive care. To continuously improve our seicequality and customer satisfaction, we have established comprehensive protocols including theCustomer Seice Management Policy,the Customer Feedback Response Control Proceduresand the After-Sales Seice Control Procedures. These policies standardize our after-salesand customer feedback response processes, with our dedicated Customer Seice Depament responsible for handling inquiries, conductingsatisfaction sueys and managing customer relations — continually strengthening our seice management framework. Customer seice management Professional Seice Team The Company has established policies such as theCustomer Feedback Monitoring and Management Policyto improve customer satisfaction.Through comprehensive and sample sueys, as well as feedback collection via WeChat ocial accounts, the Customer Seice Depamentmonitors and measures hospital client satisfaction with product usage. This process tracks customer satisfaction trends and builds strongcustomer relationships driven by client needs, aiming to enhance overall satisfaction and elevate corporate credibility. for Patients with Kidney Diseases” and “Gathering of Patients with Kidney Diseases” oer psychological and social suppo to patients, creating awarmer and more compassionate care environment.Thanks to its outstanding achievements in customer care and corporate social responsibility, our Customer Seice Center has been recognizedwith numerous national honors, including: National March 8th Red-Banner Collective, National Women’s Meritorious Collective, National Women’sCivilized Post and Guangdong Provincial Women’s Civilized Post. The overall customer satisfaction is calculated by averaging the following satisfaction measures—Adsorbent catego: 99.06%,Equipment catego: 98.96%, Tubing catego: 100%, Plasma Separator/Dialyzer catego: 97.18%, Bandage catego: 100%. Satisfaction Management The Company places great impoance on customer complaints and has established policiesincluding the Complaint Control Procedure, Customer Complaint Reception and HandlingManagement Policy, and Hemopeusion Product Complaint Control Procedure. The QualityManagement Depament organizes dedicated teams to investigate complaints, examiningaspects such as product quality, relevance of the issue to the product, compliance inoperational and logistics processes, etc. Based on the investigation, root causes are analyzed,the relationship to product quality or seice is evaluated, and complaints are addressedpromptly. Customer feedback and suggestions are processed in a timely manner and adoptedas appropriate to fuher optimize the complaint resolution process. Customer Complaint Handling KPIs Number of suey paicipants Valid customer satisfactionquestionnaires collected 99.04% Overall customer satisfaction 100% KPIs Complaint resolution rate Note: 5354 Data Security and Privacy ProtectionRobust data security and privacy protection form the foundation of trust and long-term cooperation between the Company and its businesspaners, clients and employees. The Company strictly complies with theCybersecurity Law of the People’s Republic of China, Data Security Lawof the People’s Republic of China, Personal Information Protection Law of the People's Republic of Chinaand other applicable laws and regulations,continuously enhancing its information security and privacy protection framework to ensure the safety of data. During this period, there were noincidents of data breaches or customer privacy violations. The Company has deployed the Data Loss Prevention (DLP) system to protect data security. Documents are categorized and classied basedon condentiality levels, with high-level condential data under strict management. The IT Center enforces real-time encption, tightly controlsdocument expo, upload and decption permissions, and audits le transmissions and asset labeling. Sensitive documents are transmitted solelyvia corporate email under the high-risk access control protocol. And permission frequency is regularly reviewed; if it falls below threshold, accessis revoked immediately to prevent data leaks, tampering, destruction or unauthorized access involving suppliers, customers or employees.The Company conducts regular information security risk assessments for its critical business systems, organizing personnel to addresscybersecurity vulnerabilities and high-risk issues. We simulate data recove following system outages caused by external attacks and peormsdisaster recove drills to enhance our emergency response capabilities for unforeseen incidents. Both internal and external information securitypractices are audited monthly and annually. Audit results are documented, and any non-compliance is promptly rectied through formalcorrective action processes.The Company is committed to securing its data assets. It has enacted theGeneral Information Security Policyand established an InformationSecurity Depament to oversee and maintain the ISMS (Information Security Management System). A tailored security framework is in placeto ensure relevance, proper authorization, approvals and control in condentiality management, preventing leaks of technical and commercialsecrets and safeguarding core competitiveness. The Aduoduo Chronic Disease Management System and Yuebao Insurance System have passedTier-3 protection ceications, while the Yuebao ocial website system has passed Tier-2 protection ceication. Information Security Management ISMS Process Model Security Requirementsand Expectations Eective InformationSecurity Management Plan Check DoAct ContinuousCycleof Development,MaintenanceandImprovement Information Security Protection The Company has developed a capability training program for pa-time Information Suppo Specialists at branch oces. Through regulartraining sessions and assessments, we aim to equip ocers with a comprehensive understanding of related regulato expectations, hardwareoperation and basic maintenance, thereby enhancing their professional competencies in information security. Information Security Training KPIs Number of data security/customerprivacy protection training sessions 100%Data security/customer privacy protection training coverage 18 hours Average training hours completedper employee on datasecurity/customer privacy protection 5556 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo The Company strictly complies with all applicable laws andregulations to safeguard customer data assets and upholdprivacy. For systems such as Visitor Management, Aduoduoand Yuebao Insurance that collect external user data, weclearly disclose data collection practices and obtain userconsent, while providing accessible privacy guidance. Weare committed to respecting and protecting the personaland customer privacy rights of all users of our seices. Witha strong sense of diligence and prudence, we manage allcollected personal information responsibly to prevent datasecurity incidents and ensure the condentiality and integrityof customer data. Customer Privacy Protection Customer Privacy Protection Stable Supply and Security AssuranceThe Company actively carries out procurement activities in accordance with a fully standardized supplier lifecycle management system,encompassing supplier onboarding, evaluation and exit procedures. We continue to strengthen our supply chain management frameworkand foster long-term, collaborative relationships with suppliers to mitigate procurement risks and ensure the continuity of production andoperations. We’ve established internal policies such as theProcurement Control Proceduresand Supplier Management Policyto ensure centralizedand standardized procurement management through our Procurement and Supply Center. Based on the needs of business expansion, wereorganized procurement operations in 2023 into multiple specialized procurement units, each independently handling the procurement ofmaterials and seices to meet growing operational needs.To suppo the upskilling of procurement personnel in both operational and managerial dimensions, the Procurement and Supply Center hasimplemented a multi-dimensional training program, combining mentorship from senior managers with frontline training and best-practicesharing among high-peorming team members. Formal assessments and incentive mechanisms are used to foster motivation and continuousimprovement, contributing to the development of a “professional and ecient” procurement team and a “learning-oriented” workforce. Supply Chain Security Governance Supply Chain Security Strategy Risks Risk TypeDescriptionResponses ImpactPeriod PotentialFinancial Impact Supply chaindisruption Sho-term Reduced revenueand prot; increasedprocurement costsSupplier capacity limitations or delivedelays may result in production setbacksand invento shoages, aectingproduction schedules. Medium-term Sho- andmedium-term Increased production costs Increasedprocurement costs Insucient quality control by suppliersmay lead to product defects, impactingcompany reputation and customer sat-isfaction and even leading to potentialrecalls and legal consequences.Raw material shoages, regional pricingdierences and market uctuations maydrive up material costs. 1. Build a strategic resee of key raw material suppliers. 2. Deploy R&D sta to provide technical suppo and oversight;regularly review and monitorsuppliers’ quality standards toensure product compliance. 3. Oer training to suppliers to help them enhance productionprocesses and quality controls. 1. Adjust procurement strategies dynamically based on markettrends. 2. Improve procurement timing strategies to optimize cost control.Price volatility Oppounity TypeDescription Impact Period Potential FinancialImpactOppounity Digital supply chaintransformation Medium-term Reducedoperating costsDigital transformation enables the Company to build a more agile andresilient supply chain. Through intelligent forecasting and optimization,the Company can better anticipate market and supplier needs, swiftlyadjust production and logistics strategies, and eectively managedisruptions to maintain operational continuity.Sho-term (within 1 year): Impact is rapid and tempora, typically lasting less than one year.Medium-term (1–5 years): Impact is sustained and has signicant inuence over a period of one to ve years. Long-term (over 5 years): Impact is far-reaching and long-lasting, generally extending beyond ve years. We are committed to building an intelligent supply chain management system. By adopting an integrated approach with the “Jafron Tao”self-developed purchase platform, OA and SAP, we bring together supplier management, procurement demand planning, invento control andsettlement into a unied system. This allows for real-time monitoring of invento levels, data monitoring and analytics, signicantly improvingthe responsiveness, exibility and resilience of our supply chain. This digital transformation standardizes our procurement processes, enablingus to deliver more stable and ecient seices to our customers while suppoing the high-quality development of our indust value chain. 5758 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) RepoHEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Intelligent Supply Chain Management System The Company has established a comprehensive supplier management system to oversee the entire lifecycle of supplier onboarding, evaluationand exit processes, enhancing the resilience of the Company’s supply chain. We’ve developed theSupplier Qualication Review OperatingProcedureswhich clearly outline the review and evaluation process for new suppliers to ensure that suppliers and the materials they providemeet the Company’s quality standards and business requirements. Additionally, an eective dynamic evaluation system has been implemented,providing periodic and ad-hoc assessments of suppliers' overall strength, including qualications, integrity, product quality, compliance withcontractual obligations and seice levels. This ensures timely, comprehensive and accurate evaluations of suppliers. The Company conducts qualication audits for suppliers of raw and auxilia materials, including reviewing their quality management systemdocumentation, self-inspection repos, valid inspection repos issued by accredited testing agencies and safety assessment materials.Suppliers are classied into three categories: A, B and C. For suppliers of special materials, detailed operational procedures are established tomanage material quality audits and on-site assessments. Enhancing Supplier Management The Company has established theProcurement Integrity Management Policywhich clearly denes the procurement management scope,procedures and requirements. All procurement sta are required to peorm their duties in strict compliance with applicable laws andregulations. Prior to staing work, procurement personnel must sign theProcurement Personnel Integrity Commitment, agreeing to acceptcontinuous supeision and inspection by the Company. This ensures fair, transparent and ethical procurement practices, maintains theintegrity of procurement operations, protects the interests of the Company and fosters strong, lawful relationships with suppliers. Transparent Procurement Digital Empowerment Supplier Onboarding Once a supplier has passed the qualication audit or technical capabilityassessment, the Quality Depament, in collaboration with relevantdepaments, organizes sample testing, on-site audits, machine testing,peormance evaluations and biological assessments. These evaluationsare documented in the Supplier Technical Capability Assessment Form. Supplier Quality Evaluation Suppliers that fail to improve after being warned for poor raw material quality or other unsatisfacto behaviors will be disqualied and nolonger be considered for future cooperation. Suppliers providing counteeit or substandard products that cause severe impacts or majorquality incidents will be blacklisted and permanently banned from cooperation. Supplier Exit Before any procurement, the Purchasing Depament is required to verify whether the supplier meets the qualication audit requirementsand conrm that the supplier's status and ceication are up to date and valid. Procurement may only proceed after qualication assessmentor ceication renewal is completed. The Quality Management Depament is responsible for preparing the Supplier Audit Plan each year. Ifany major quality issues were found with an A-class supplier in the previous year, a site audit must be conducted that year. For B- and C-classsuppliers, the Quality Management Depament will determine whether a site audit is necessa based on the supplier’s product quality. Annual Supplier Audits AA-class suppliers: Score ≥ 80ApprovedB、C B- and C-class suppliers: Score ≥ 60Approved In December 2024, the Company conducted training for procurement personnel on relevant laws and regulations, including criminal lawapplicable to corruption and bribe, as well as case studies to raise awareness of procurement integrity and strengthen the managementof ethical procurement practices. Case Study: 5960 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Robust Governance: Strengthening the Foundation forSustainable Growth Corporate Governance: Driving Steady ProgressEnhancing Internal Control and Risk ManagementProtecting Shareholder Interests: Prioritizing Investor Rights Business Ethics and Corporate Values SDGs At Jafron, we remain true to our founding aspiration, continuously strengthening organizationdevelopment, improving governance system and structure, and enhancing governance eciency.We also place the utmost impoance on compliance governance, steadfastly adhering to legalrequirements, standardizing business practices, upholding the highest ethical standards andsafeguarding shareholder interests, thereby laying a solid foundation for the long-term success of the Company. The Shareholders’ Meeting is the Company’s highest decision-making body. The Company has developed and implemented theRules ofProcedure for Shareholders’ Meetingsin accordance with theRules for the General Meeting of Shareholders of Listed Companiesand theCompany’s Aicles of Association. These rules ensure that shareholders’ meetings are convened and held according to the prescribedprocedures, guaranteeing that all shareholders, especially minority shareholders, can exercise their voting rights fairly and eectively.Shareholders’ meetings employ a blend of in-person and online voting mechanisms, providing convenient access for investors to paicipatein the voting process. When major issues that may aect minority investors’ interests are deliberated at a shareholders’ meeting, votes arecounted separately for minority investors, and a law rm is engaged to issue a legal opinion so as to eectively safeguard the paicipationand supeision rights of all shareholders. Shareholders’ Meeting 6162 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Corporate Governance: Driving Steady ProgressIn line with theCompany Law of the People’ Republic of China,theSecurities Law of the People’s Republic of China,theCode of CorporateGovernance for Listed Companiesand other relevant laws and regulations, the Company has formulated and continually revises internal systemssuch as theAicles of Associationto improve the internal governance framework, eectively protect the rights and interests of shareholdersand other stakeholders and enhance corporate governance.The Company has established a governance structure composed of the Shareholders’ Meeting, the Board of Directors and its specializedcommittees, and the Board of Supeisors. This structure ensures that the roles and responsibilities of each governance body are clearly denedand promotes eective collaboration and checks and balances, with rigorous, transparent, democratic and fair decision-making procedures andrules of procedure, ensuring the Company’s standardized operations and high-quality development. The Board of Directors is accountable to the Shareholders’ Meeting and is responsible for reviewing major business matters and making decisionsor submitting them for shareholder approval. The Company has established theRules of Procedure for the Board of Directorsand theWorkRules of Independent Directors, clearly dening the scope of the Board’s authority and establishing well-designed operational mechanisms ofthe Board, including the procedures for convening and conducting Board meetings, deliberation rules, voting methods and decision-making.Independent directors are tasked with supeising potential major conicts of interest between the Company and its controlling shareholders,actual controllers, directors and senior executives, ensuring that Board decisions align with the overall interests of the Company and protectingthe legitimate rights of minority shareholders. The Board also provides professional and objective recommendations on business operations toimprove the quality of decision-making.The Board of Directors consists of members, including independent directors and female directors. The members bring diverse expeiseand extensive experience in elds such as biomedical sciences, nance and banking, enabling the Board to provide strong suppo for theCompany’s decisions from a broader perspective. This ensures that company decisions are scientically sound and forward-looking.The Board is suppoed by four specialized committees: the Audit Committee, the Nomination Committee, the Remuneration and EvaluationCommittee, and the Strategy Committee. Independent directors comprise more than half of each committee, which enhances the Board’sspecialization and ability to peorm duties and ensures that Board decisions are both scientically sound and procedurally compliant. Duringthe repoing period, the Company convened a total of specialized committee meetings, with resolutions deliberated and adopted. Board of Directors The Board of Supeisors sees as the Company’s highest supeiso body and is accountable to the Shareholders’ Meeting. All supeisorspeorm their duties in accordance with theAicles of Associationand theRules of Procedure for the Board of Supeisors. They supeise theCompany’s signicant matters, nancial position and the legal and compliant peormance of duties by directors and senior executives in aneo to enhance corporate governance. The Board of Supeisors is composed ofthreemembers, includingone employee representative. Board of Supeisors KPIs during which 15proposals were deliberatedand adopted during which 35proposals were deliberated and adoptedThe Company convened a total of 11 Boardof Directors meetingsThe Company conveneda total of 3shareholders’ meetings during which 23 proposalswere deliberatedand adoptedThe Company conveneda total of 6 Board ofSupeisors meetings 6364 The Company has developed a suite of policies such as theInternal Audit Management PolicyandWork RulesofInternal Auditin compliancewith theAudit Law of the People’s Republic of Chinaand China’s Internal Auditing Standardsto regulate internal audit practices and strengtheninternal controls. We’ve established the Legal and Audit Supeision Center to peorm the internal audit function, develop annual audit plans,implement internal management of audits and execute audit projects, ensuring reduced operational risks through robust internal controlmanagement. During the repoing period, the Company’s Legal and Audit Supeision Center exercised duty of care and diligence to issue internal audit repos. There were no signicant or material internal control deciencies, and the Company maintained eective internal controlsin all material aspects in accordance with the enterprise internal control standards and relevant regulations. Internal Audit The Company is fully committed to managing risks in a proactive manner, ensuring compliance with all relevant laws and regulations. We applya risk-oriented principle to dene key business units, operations, matters and high-risk areas for internal control evaluation. In addition, we’vedeveloped policies such as thePublic Opinion Management Policy, establishing a fast emergency response mechanism to promptly and properlyaddress situations that may aect the Company’s stock price, commercial reputation and normal business operations, thereby protecting thelegitimate interests of investors. Risk Management The Company has established theRelated Pay Transaction Management Policyand theSpecial Policy for Preventing Fund Embezzlement byRelated Pay Transactions HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo The Company reviews the annual compensation plans for directors, supeisors and senior ocers each year in accordance with itsAiclesof Associationand the Rules of Procedure for the Remuneration and Evaluation Committee under the Board of Directors. The remunerationfor external directors, independent directors and external supeisors consists mainly of xed allowances, while the remuneration for internaldirectors, internal supeisors and senior ocers is based on the Company’s earnings, peormance of their duties and completion of theirannual peormance goals. For senior ocers, the Company has established a peormance-based compensation and incentive system thatlinks remuneration to Company peormance. This approach incorporates a system of rewards and penalties based on peormance evaluation,eectively reducing management costs, improving management eciency and motivating senior ocers to increase their productivity. Thisenhances the cohesion within the organization and provides a strong foundation for its long-term and stable development. Director, Supeisor and Senior Ocer Compensation Management Enhancing Internal Control and Risk Management the Controlling Shareholders and Their Related Paiesto protect the rights and interests of investors, especially minority shareholders. Thesepolicies clearly dene the rules for identication of related paies and the procedures and disclosure requirements for related pay transactionsand regulate the ow of funds between the Company, its controlling shareholders, actual controllers and related paies, ensuring compliance andtransparency in such transactions. During the decision-making process for related pay transactions, the Company strictly follows the necessadeliberation procedures, ensuring that related directors and shareholders abstain from voting on related pay transactions, and that related paytransaction information is disclosed in a timely and accurate manner. The Company remains committed to tax compliance, including compliance with theLaw of the People's Republic of China on the Administrationof Tax Collection,theEnterprise Income Tax Law of the People’s Republic of Chinaand theIndividual Income Tax Law of the People’s Republicof Chinaand other tax laws. We continuously optimize our tax management system and enforce strict management practices to ensure thecontinuity and eectiveness of our tax operations and minimize tax risks. In 2024, the Company paid a total of RMB million in various taxesin full compliance with the law. Tax Management The Company places great emphasis on operational compliance, continuously improving its compliance framework and actively guarding againstand mitigating various compliance risks. In Februa 2024, the Company formally launched its compliance system development, appointing aChief Compliance Ocer to oversee the system development and operation. The Company is committed to increasing compliance inputs andintegrating compliance management into business operations, thus ensuring legal compliance in all business activities and achieving the goal of“strengthening internal controls, preventing risks and promoting compliance”. This establishes a comprehensive and all-encompassing compliancerisk prevention mechanism throughout the organization. Operational compliance KPIs Number of legaltraining sessions Training topics:“Building a Culture of Integrity” “Accurate and Standardized Use of Contract Templates”“E?cient Contract Review Techniques”“Compliance Promotion: Risk Analysis and Mitigation” Compliance Training Compliance Pledge public, we’ve issued dividends foreight consecutive years, with cumulative cash dividends totaling RMB 2.951 billion, which is 2.09 times thecombined total raised through IPO and subsequent renancing. This reects a cumulative payout ratio exceeding60%.In September 2024,we completed the cancellation of RMB 500 million in repurchased shares from our rst share buyback program (initiated in 2021). Including thiscancellation, total shareholder returns through dividends and share repurchases reached RMB 3.451 billion since our 2016 IPO, resulting in acumulative payout ratio of more than70% .To fuher strengthen market condence and uphold shareholder value, we completed a second share repurchase program in April 2024, repur-chasing nearly RMB 500 million woh of shares. Additionally, in 2022, our controlling shareholder or actual controller, Mr. Dong Fan, increasedhis personal stake in the Company by RMB 200 million to drive the Company’s sustainable, steady and sound development, demonstrating hisstrong condence in our long-term growth and intrinsic value.In April 2025, the Board of Directors approved theResolution on 2024 Prot Distribution Plan, proposing a cash dividend of RMB (tax-inclusive)for eve 10 shares held, based on the total share capital registered on the distribution record date (excluding shares held in the repurchaseaccount, without distributing bonus shares or capitalizing resees. 6566 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo At Jafron, we highly value investor relations. In line with theGuidelines for Investor Relations Management of Listed Companies,theRulesGoverning the Listing of Stocks on the ChinNext Market of Shenzhen Stock Exchangeand other relevant laws and regulations, we haveestablished the Investor Relations Management Policyto regulate investor relations management, with the ultimate goal of fostering stableand enduring relationships with investors.We engage actively with investors through a variety of communication channels, including the corporate website, irm.cninfo.com.cn, investorhotlines and earnings briengs. We carefully consider investor feedback and respond promptly and accurately to their inquiries, therebyprotecting investors’ right to know and building investor trust and alignment. Investor Relations Management In accordance with theCompany Law of the People’s Republic of China, theSecurities Law of the People’s Republic of China, theMeasures for theAdministration of Information Disclosure by Listed Companiesand other applicable laws and regulations, we have established policies such as theInformation Disclosure Management Policy, Material Information Internal Repoing ProceduresandAccountability Mechanism for Material Errorsin Annual Reposto ensure rigorous governance of disclosure content, timing and channels. We are committed to timely, accurate, complete,clear and comprehensible disclosures that are free of misstatements, misleading information or material omissions. Information Disclosure Protecting Shareholder Interests: Prioritizing Investor Rights KPIs During the repoing period We are committed to delivering reasonable returns to our shareholders through a scientically sound prot distribution mechanism. Our dividendpolicy is designed to ensure transparency, protect the rights of minority shareholders to information and paicipation and their legitimate interests.We formulated theThree-Year (2023–2025) Shareholder Returns Planto ensure the consistency and stability of prot distribution. Since going Dividend Policy and Shareholder Returns The Company is rmly committed to safeguarding the legitimate rights and interests of its creditors. We diligently fulll all contractual obligationsin strict accordance with the terms agreed upon, fostering positive cooperative relationships with our creditors. During the private placement ofconveible bonds, the Company adhered to all relevant regulato requirements by fully disclosing bond investment risks. We engaged accreditedthird-pay rating agencies to conduct credit assessments of both the Company and the bonds, enabling creditors to make informed decisionsbased on a clear understanding of our operational peormance and bond risks. These measures are designed to protect the lawful rights andinterests of creditors. Protection of Creditor Rights 202120222023Cash Dividend Track Record over the Past Three Years Cash Dividend per Share(RMB)Total Cash Dividends Distributed (RMB 10,000) 0.90 71,698.54 59.91 0.67 53,523.97 60.17 0.40 30,978.65 70.97 Payout Ratio (as % of Net Prot Attributable to Shareholders ofthe Listed Company in Consolidated Financial Statements (%)the Company released127 interim repos ranking among the top 25% of indust peers fordisclosure frequency We published4 periodic reposin 2024 voluntarily released6 additional announcements,demonstrating our commitmentto information transparency. 6768 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Jafron strictly complies with applicable laws and regulations, including theInterim Provisions on the Prohibition of Commercial Bribe, andmaintains a zero-tolerance stance toward commercial bribe and corruption. We are committed to promoting a culture of integrity, ethicalconduct, diligence and accountability throughout the organization. To reinforce our anti-bribe & anti-corruption framework, we issueIntegrity Notications to all bidding entities and require all procurement personnel to sign the Commitment to Integrity. These initiativesensure that procurement practices remain fair, transparent and ethical.During the repoing period, the Company achieved a100%compliance rate in signing ethics-related declarations. There were no repoedincidents involving material violations of ethical business conduct, no cases of corruption, and no litigation related to bribe. Anti-bribe & Anti-corruption The Company adheres to theAnti-Unfair Competition Law of the People’s Republic of Chinaand other relevant laws and regulations. We arecommitted to creating and maintaining a well-regulated market environment that promotes fair competition. Internally, we continuously enhanceour governance systems to prevent unfair competition. We prohibit unreasonable restrictions on paners and avoid discriminato treatmentof customers in order to foster a healthy and competitive marketplace. To fuher suppo fair competition, we require our suppliers to sign aNon-Disclosure Agreement, arming their commitment to safeguarding commercial and technological secrets shared during cooperation. Duringthe repoing period, the Company recorded no incidents of unfair competition or other violations of relevant laws or regulations. Anti-unfair Competition Business Ethics and Corporate Values The Company actively promotes responsible marketing practices in accordance with theAdveising Law of the People’s Republic of Chinaandother related laws and regulations. We ensure that all marketing activities are lawful, truthful and transparent, with a clear focus on protectingconsumer interests and maintaining market order. In 2024, the Company conducted training sessions on responsible marketing. These sessionsequipped employees with the knowledge and techniques to accurately and objectively communicate product and seice information, minimizingthe risk of consumer misunderstanding due to misleading messaging.No violations of marketing regulations occurred during the repoing period. Responsible Marketing The Company has established theWhistleblowing Policyfor the purpose of strengthening internal oversight and preventing malpractice ormisconduct. This policy provides multiple secure repoing channels—such as a dedicated phone line and email address—through whichemployees and stakeholders can repo suspected misconduct or regulato violations. Repos are reviewed and investigated by the Legaland Audit Supeision Center. Veried cases are handled in accordance with applicable laws, regulations and the Company’s internal policies.We are also committed to protecting the identity and safety of whistleblowers. All personnel involved in case handling are required to maintainstrict condence regarding the identity of the whistleblower. Individuals who provide substantiated repos may be eligible for rewards. Complaint and Whistleblower Mechanisms Case Study: Responsible Marketing Training Whistleblower Repoing Channels Email: shenjijiancha@jafron.comHotline: 0756-3619947 Jafron is committed to suppoing China’s carbon peak and carbon neutrality goals, fully embracingthe principles of green development. We focus on reducing carbon emissions and enhancing resourceeciency through technological innovation, management optimization and industrial upgrading. Inour operations, we prioritize the optimization of energy mix and the adoption of energy-saving andemission-reduction technologies, striving to transition our production processes to low-carbon and sustainable practices. 6970 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Advancing Low-CarbonPractices and Promoting Green Healthcare Response to Climate ChangeEnvironmental Compliance and Low-Carbon Initiatives Circular Economy and Green Development SDGs We recognize the impoance of climate change and are dedicated to advancing climate-related governance. The Board of Directors leads theeos to address climate change, with the responsibility for reviewing and approving ESG repos, including matters related to climate change.Our subsidiaries and relevant functional depaments work in close collaboration to implement energy-saving and emission-reduction initiatives,minimizing carbon emissions and other pollutants in our operations, with the ultimate goal of mitigating climate change impacts. Governance We actively engage in climate risk analysis and response, identifying both physical and transition climate risks specic to our business context.We assess their potential impact periods and nancial implications, taking targeted actions based on the nature of each identied risk. Strategy 7172 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Response to Climate ChangeClimate change has become a critical global issue with far-reaching implications for both the economy and society. We actively monitor evolvingpolicies at home and abroad, integrating low-carbon principles throughout our operations to proactively address the challenges and capitalize onthe oppounities brought by climate change. Physical Risk Risk TypeDescriptionResponses ImpactPeriod PotentialFinancialImpact Acute riskSho-term Increasedoperating costsand decreasedrevenueExtreme weather events such as typhoons,oods, eahquakes and blizzards cancause signicant damage to equipmentand power outages, which may in turndisrupt production processes. Chronic risk Medium- and long-term Increased operating costs and decreased revenue Rising global temperatures may lead toincreased energy consumption for coolingand refrigeration systems, thus drivingup energy costs and potentially causingequipment damage. Temperature uctua-tions may aect product manufacturingand storage, necessitating enhancedtemperature control systems that add tooperating costs. Establish emergency response systemsfor extreme weather; pre-deploy protec-tive equipment and emergency suppliesto strengthen emergency responsecapabilities.Install energy storage solutions to man-age power outages, develop emergencypower outage plans, and conduct.Strengthen infrastructure constructionto improve resilience against naturaldisasters.Develop energy-saving managementpolicies and integrate advanced energymanagement systems to improve energyeciency.Deploy photovoltaic energy systemsin production facilities to optimize theenergy mix. Reputational risk Sho- andmedium-term Reputationandrevenue lossStakeholders’ growing interests ongreen development could damage theCompany’s reputation if we fail to meettheir expectations. Prioritize ESG management and practices,ensuring timely disclosure of climate-re-lated initiatives and peormance.Build a strong green brand image, reduc-ing carbon emissions to meet stakeholderexpectations. Market riskMedium-term Reducedproductioncosts andrevenueShifting consumer preferences towardslow-carbon products, combined withpotential price increases for raw materialsdue to climate change, could impactproduction costs and revenues. Invest in the development of low-carbon,environmentally-friendly products; adjustprocurement strategies dynamicallybased on market trends. Transition RiskRisk TypeDescriptionResponses ImpactPeriod PotentialFinancial Impact Policy andregulato risk Sho- and medium-term Increasedcompliance andoperating costsAs climate change policies continue toevolve, failure to develop and implementstrategies aligned with these regulationsmay expose the Company to compliancerisks.Technologyrisk Medium-term Increasedproduction costsand R&DinvestmentsAddressing climate change and reducingcarbon emissions may require new equip-ment, technology or process upgrades. Ifthese solutions fail to meet expectations,it could increase investment costs. Monitor and analyze national and regionalclimate-related regulations to ensure theCompany remains compliant with thelatest environmental laws and regulations.Undeake energy eciency upgrades.Peorm thorough evaluations beforelaunching new projects or investing innew technologies. Sho-term (within 1 year): Impact is rapid and tempora, typically lasting less than one year.Medium-term (1–5 years): Impact is sustained and has signicant inuence over a period of one to ve years.Long-term (over 5 years): Impact is far-reaching and long-lasting, generally extending beyond ve years. Oppounity TypeDescription Oppounity Products and seices Climate change has driven growing demand for low-carbon, environmentally responsible products.By developing eco-friendly medical products and enhancing product peormance, the Company iswell-positioned to respond to evolving market demands, boost brand image, strengthen its competitiveadvantage and expand revenue streams.Optimizing production processes and adopting high-eciency equipment or energy managementsystems can signicantly enhance resource utilization, lower operational costs, and reduce carbonemissions.Resource eciency The Company manages climate-related risks and oppounities through a structured approach encompassing identication, assessment andmitigation. Guided by the disclosure framework recommended by the Task Force on Climate-related Financial Disclosures(TCFD), Jafron identies the physical and transition risks as well as potential oppounities associated with climatechange. These are dened and described with reference to internal operations, indust dynamics and shifts indomestic and international policy landscapes. Based on the assessment results, we develop and implement targeted actions to mitigate climate-related risks andcapitalize on related oppounities. Management of Impacts, Risks and Oppounities The Company operates in strict compliance with theEnvironmental Protection Law of the People’s Republic of Chinaand other applicable laws,regulations and indust standards. We have developed theEnvironmental Management Policy, suppoed by a dedicated environmentalmanagement system led by the EHS Depament. This system denes clear roles and responsibilities for environmental management, ensuresappropriate stang based on operational needs and enforces strict environmental controls over the generation and discharge of pollutantsand waste from our business operations to ensure full compliance with environmental laws and regulations. We remain committed to cleanerproduction practices and strict adherence to environmental protection laws, energy conseation and emissions reduction requirements. Westrive for continuous improvement of our environmental peormance by promoting resource eciency and pollution control. These eoscontribute to a cleaner, comfoable and healthy workplace.During the repoing period, the Company did not incur any administrative penalties for violations of environmental laws or regulations, nor werethere any material adverse environmental impacts.To strengthen the environmental awareness and capabilities of EHS personnel at all levels, the Company developed and implemented the2024Capability Enhancement Program for EHS Personnel. This program included thematic training sessions, knowledge-sharing workshops, hands-onoperational practice and corresponding evaluations—helping to ensure our EHS personnel can eectively fulll their responsibilities and suppothe Company’s compliance objectives and EHS eos. Environmental Management System To strengthen climate governance, the Company has adopted a set of key metrics to assess and manage climate-related risks and oppounities.Greenhouse gas (GHG) emissions is a core metric in this evaluation. GHG emissions are monitored regularly to track progress toward climate goalsand assess the eectiveness of response measures in suppo of the Company’s transition towards low-carbon, eco-friendly development andChina’s carbon peak and carbon neutrality goals. Repoed GHG emissions include Scope 1 (direct) and Scope 2 (indirect) emissions, which are calculated in accordance with the GHGEmissions Accounting and Repoing Guidelines for Industrial Enterprises (Other Sectors). Metrics and Targets 7374 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Identication Identied risks and oppounities are systematically evaluated in terms of contributing factors, potential nancialimpact and anticipated impact period.Assessment Mitigation Metric Total GHG Emissions202419,309.47tCO e tCO e tCO e Direct GHG Emissions (Scope 1)20248,644.93Indirect GHG Emissions (Scope 2)202410,664.54 Note 1 Scope 1 emissions cover natural gas consumption; Scope 2 emissions include purchased electricity (sourced from China SouthernPower Grid). Natural gas emissions are calculated based on a conversion factor of 1 m? of natural gas equivalent to 1.20 kg of standardcoal by energy content.Note 2 Environmental Compliance and Low-Carbon Initiatives Case Study: Environmental Training SessionsKPIs Total investment inenvironmental protectionRMB person-timeshours 85,410,200Environmentaltraining sessions Total training hours Environmentaltraining paicipants Environmental Risk ManagementPollution and Waste Management 7576 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo The Company conducts environmental impact assessments for all new, renovation and expansion projects in strict accordance with therequirements of the Environmental Impact Assessment Law of the People’s Republic of China, the Regulations on the Environmental ProtectionManagement of Construction Projects and other applicable laws and regulations. Each project is required to submit an EIA repo or form forapproval by local ecological and environmental authorities and must complete pollutant discharge registration and environmental acceptanceas stipulated. During the repoing period, the Company successfully completed the environmental acceptance review for the Clean Room,R&D Laborato Building Expansion and Alcohol Recove Process Upgrade Project at the Zhuhai Jafron Science and Technology Park. Environmental Impact Assessment Jafron has developed a robust emergency response framework in line with the Emergency Response Law of the People’s Republic of China andthe National Environmental Emergency Response Plan. This includes the preparation and ling of the following documents: Contingency Planfor Environmental Emergencies, Environmental Emergency Risk Evaluation Repo and Environmental Risk Assessment Repo. All documentshave undergone expe review and have been approved by the competent environmental authorities. Production units have established atiered early warning and emergency response system tailored to their operational context. Real-time monitoring of pollutant dischargesensures swift inteention in the event of anomalies. In addition, the Company has developed a Contingency Plan for Environmental PollutionIncidents to enhance emergency response and rescue capabilities. These measures aim to minimize the impact of environmental incidents,protect employee safety and presee the surrounding ecological environment. The Company conducts regular emergency drills, documentsthe results, analyzes deciencies, and continuously updates and improves its response plans based on lessons learned. Emergency Response Management The Company manages wastewater discharge in accordance with theWater Pollutant Discharge Limits of Guangdong Province(DB44/26-2001).We implement eective collection measures and strictly enforce the separation of rainwater and wastewater to prevent soil contamination.Wastewater is carefully controlled at the source: waste solvents, experimental waste liquids, toxic and hazardous wastewater and wastewatercontaining heavy metals are separately collected and disposed of, with no direct discharge into the industrial wastewater system. Thewastewater treatment team maintains detailed records, including treatment operations and maintenance logs, and ensures that discharge isregularly monitored to meet all relevant standards. Wastewater Management The Company has established a comprehensive and structured hazard identication and remediation system that spans production andoperation, safety management, equipment maintenance and environmental protection. The EHS Depament conducts routine inspectionsof production areas, operational processes and management systems to timely identify environmental hazards and areas for improvement.Identied issues are addressed promptly, promoting a culture of ongoing, structured and data-driven risk management. During the repoingperiod, the Company voluntarily conductedve environmental risk assessments and submitted the assessment results through theEnvironmental Emergency Regulato System of Guangdong Province. All assessments conrmed the absence of any environmental hazards. Hazard Identication and Remediation The Company strictly adheres to theLaw of the People's Republic of China on Prevention and Control of Atmospheric Pollution,theLaw of thePeople's Republic of China on Prevention and Control of Water Pollutionand theLaw of the People's Republic of China on the Prevention andControl of Environmental Pollution Caused by Solid Wastes, as well as related implementation standards. We focus on enhancing pollutioncontrol and implementing scientic waste management to ensure that all pollution prevention and control activities are conducted in fullcompliance with applicable laws and regulations. Through routine monitoring, semi-annual inspections and engagement with third-pay testingagencies or by entrusting qualied third paies for waste disposal, we ensure that all wastewater, air emissions and solid waste producedduring our operations are disposed of in line with both national and local legal requirements and environmental protection standards. During therepoing period, our wastewater and air emissions treatment systems remained fully operational, and no emissions exceeded regulato limits. Treatment Capacity for 2024Treatment ProcessIron Carbon + Acid-Base Neutralization + Anaerobic + Aerobic + Precipitation + MBR Treatment141,383tons 2024MetricTotal Wastewater Discharges Chemical OxygenAmmonia NitrogenTotal Phosphorus 141,383tons 1.829tons 0.011tons 0.004tons Wastewater Pollutant Discharge by Type (selected) Wastewater Discharge Data (selected) 7778 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo The Company’s air emissions primarily arise from production activities and boiler operations. We implement ecient collection measures andappropriate treatment processes in line with national and local air quality standards. Our air emissions treatment facilities management teamoversees the operation and maintenance of air emissions treatment facilities, ensuring regular inspection and monitoring and adherence toenvironmental discharge standards. Air Emissions Management The Company strictly complies with the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution Causedby Solid Wastes to ensure the proper classication, safe storage and lawful disposal of both general and hazardous waste. We are subject tooversight by local environmental authorities and our EHS Depament. Recyclable general industrial solid waste is collected and sold centrally,while non-recyclable industrial waste is stored in designated areas with appropriate labeling and classication. Qualied third-pay disposalorganizations are engaged for waste management, and hazardous waste disposal is subject to an annual plan, with prior approval obtained viathe hazardous waste management platform for each transfer. Waste Management We strictly adhere to noise emission limits and implement proper measures to manage and reduce noise pollution from our operations in linewith the Law of the People's Republic of China on the Prevention and Control of Noise Pollution and the Emission Standard for IndustrialEnterprises Noise at Bounda (GB12348-2008). For operations with signicant noise levels, we continuously improve equipment, processesand technical solutions to reduce noise. Additionally, we monitor new equipment prior to operation, ensuring noise reduction measures are inplace to prevent excessive emissions. Noise Management Treatment ProcessAir Emissions Treatment Facilities Process Exhaust Treatment FacilitySewage Works Odor Treatment Facility Alkaline Spray + Water Spray + Activated CarbonAlkaline Spray + UV Decomposition + Activated Carbon 2024Metric Total Air Emissions Nitrogen OxidesSulfur DioxideVolatile Organic Compounds Paiculates Air Emissions by Type (selected) Air Emissions (selected) 53,336,500m? 0.17 tons 3.78tons 0.19tons 7.85 tons Waste CategoriesGeneral Solid Waste Hazardous Waste Industrial Solid Waste (Non-recyclable) Industrial Solid Waste (Recyclable), Construction Waste, Kitchen WasteWaste Activated Carbon, Waste Solvents, Laborato Waste 2024Metric Quantity of General Waste GeneratedQuantity of General Waste DisposedQuantity of Hazardous Waste GeneratedQuantity of Hazardous Waste Disposed Waste Recycling RateWaste Disposal Compliance Rate 36.83% 100% Waste Data Waste Organic SolventsWaste Activated CarbonLaborato Waste Waste Empty Drums Hazardous Waste Discharge by Type 121.82 tons 121.82 tons 373.08 tons 661.64 tons 106.538 tons 13.019 tons 0.667 tons 1.6 tons 7980 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Circular Economy and Green Development Energy Eciency Retrotting Projects The Company’s energy consumption during production and operations primarily consists of purchased electricity from the grid and externallysourced natural gas. We strictly adhere to theEnergy Conseation Law of the People’s Republic of Chinaand other applicable laws andregulations, and are committed to the principle of rational and ecient energy use. To that end, we have established theEnergy ManagementPolicythat sets clear guidance for all depaments on standardized energy use practices. In addition, we’ve established a dedicated EnergyConseation Oce staed with ceied energy managers, suppoed by a technical adviso group and an energy-saving task force. Thisoce centrally manages the Company’s energy usage, conducts annual assessments of energy-saving initiatives and carries out regularinspections for ineciencies or waste. Accountability mechanisms are in place to ensure violations are investigated and rectied, reinforcing aculture of continuous energy eciency improvement. In 2024, Jafron completed the installation of rooftop photovoltaicsystems at three manufacturing facilities in the South and NohCampuses of Jafron Science and Technology Park and the JindingIndustrial Park in Zhuhai National High-tech Industrial DevelopmentZone, Guangdong Province. The total installed capacity reached1,579.05 kW. The project was completed and connected to the gridin March 2024 and is expected to generate approximately 1.723million kWh annually, delivering an estimated RMB 350,000 in electricity cost savings each year. To optimize our energy mix and reduce reliance on fossil fuels, the Company continues to invest in on-site solar power generation projects.In parallel, we implement a range of energy eciency upgrades and have rolled out a centralized energy management system to enhancemonitoring and control of electricity usage. These measures have led to measurable improvements in energy eciency, reduced energyconsumption and lower operating costs. Energy Management KPIs Natural Gas ConsumptionTotal Purchased Electricity3,998,230 Total Energy Consumption?Photovoltaic Power Generation? m?27,564,089.96kWh 1,725,780kWh8,397.60tceThe solar power project was commissioned in March 2024; data reects the period from March through December 2024.Note 1 Total energy consumption includes natural gas, purchased electricity and solar-generated electricity. Natural gas emissions arecalculated based on a conversion factor of 1 m? of natural gas equivalent to 1.20 kg of standard coal by energy content.Note 2 Case Study: Solar Power Generation Project Control of AverageElectricity Taris for Chillers Leveraged night-time cooling storage and dynamic seasonal scheduling(specically, adjusting peak/o-peak discharge and replenishment cycles)to reduce average electricity taris for chillers Savings in 2024RMB50,000 (1) Implemented dynamic management of anaerobic pools to prevent acidication and reduce caustic soda use; (2) Scheduled batch wastewater treatment, exhaust fan and aeration system operations based on capacity, prioritizing o-peak electricity use to minimize electricity charges; (3) Explored the optimal balance between steam consumption and system stability to reduce steam usage Savings in 2024RMB640,000 Streamlined production scheduling and enabled continuous materialfeeding to reduce electricity and natural gas consumption WastewaterTreatment CostControl ofSewage Works Lean Production Optimization Savings in 2024RMB500,000 8182 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Sma Energy Management System at Jinding Industrial Park Consumption Monitoring Multi-dimensionalEnergy Use Statistics Sub-meteringand Monitoring SEnergy UsageQueries 3D Visual EnergyMapping EnergyBilling & Metering Energy Monitoring Lighting Energy-savingControl SystemStreetlight Control SystemSma Indoor Lighting System Air Conditioning Energy-saving Control System Central Air Conditioning Group Control SystemSplit-type Air Conditioners Group Control SystemHeating Energy-savingControl SystemPower DistributionMonitoring SystemRadiator Control SystemUndeloor Heating Control SystemEnergy Diagnostics Energy AnalyticsEnergy Audits Consumption Supeision Energy ConsumptionData Disclosure Abnormal UsageAles EciencyBenchmarking ConsumptionRankings Peormance IndicatorMonitoring Loss Analysis Energy Usage Data Acquisition Sub-metering by Catego Water HVAC LoadHeating Electricity Energy Network MeteringNetworked metering with standard protocols (e.g., OPC)Compatibility with SCADA and other systemsInternet data integration (e.g., weather) Used-based meteringTenant-levelFunctional zone-level Water Resource ManagementThe Company primarily sources water for its operations from municipal supplies. Adhering to the principles of “conseation, scienticmanagement and recycling”, we manage water usage from the source, closely monitor consumption throughout the process and strive formaximum eciency in water resource utilization. We proactively introduce advanced water-saving technologies and equipment, upgradingwater-intensive production processes through closed-loop systems, wastewater treatment and water reuse infrastructure. These measuresenhance water recycling rates, reduce dependence on freshwater withdrawals and lower overall water consumption during production.In December 2023, the Company was ocially ceied as a Municipal-level Water-Saving Enterprise by Zhuhai Municipal Water Authority andZhuhai Municipal Bureau of Indust and Information Technology. KPIs Total Water Consumption753,795tons Freshwater Withdrawal 705,038tons Recycled and Reused Water48,757tons Water Savings in 2024Water Conseation ProjectsBoiler Condensate Recove ProjectGreywater Reuse Project 13,091 tons9,188 tons Condensate RecoveGreywater Reuse 8384 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Jafron is committed to fostering a low-carbon, environmentally friendly and ecient workplace. Green practices are integrated into all aspectsof day-to-day operations. We actively promote paperless workows by encouraging digital documentation and reducing paper usage so as toreduce resource use. We also strive to optimize the management of oce equipment and promote the use of energy-ecient oce equipment,including LED lighting, low-power printers and computers, helping to foster a green oce culture. The Company’s production processes involve the use of key materials such as raw and auxilia substances as well as paper and plasticpackaging. We continuously rene material handling procedures, enforcing strict controls over storage, transpoation, requisition and usageof materials. A categorized storage and labeling system is in place, suppoed by documentation and invento control procedures to ensuretraceable and compliant material management across all stages. We have implemented a range of measures to boost material eciency,reduce packaging volume and minimize environmental impact. Material UseGreen Oce FSC Ceication of Packaging Caons Material Eciency Initiatives RecyclingLightweighting Resin barrels used for raw material packaging are collected, cleaned by suppliers and reused for resin storage. KPIs Total Packaging Materials Used tons8,432.32 Paper Packaging8,158.35tons Plastic Packaging 273.97 tons Packaging Material Recycling Rate 56.92% Reused/Recycled Packaging Materials4,800tons Without compromising protective peormance, we have switched from premium boxes to corrugated packaging,replaced foam linings with EPE (expanded polyethylene) and thermoformed trays, and reduced the wall thicknessof cylindrical container, which signicantly reduce paper material usage. Guided by our core value of “shared success”, Jafron is committed to a people-rst approach, striving to foster a workplace that is equal, inclusive and diverse. We rigorously safeguard employee rights, invest in high-quality talent development systems, promote employeewell-being and actively fulll our corporate social responsibilities—all in pursuit of a better future for our employees and society at large. 8586 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo People-OrientedDevelopment and Social Harmony Compliant Employment Practices and Fair OppounitiesEmpowering Employees with Wellbeing and Fulllment Career Development and Talent Cultivation Occupational Health and Safety FirstCompassion in Action, Advancing Public Welfare SDGs Diversity and Inclusion 8788 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Compliant Employment Practices and Fair OppounitiesThe Company upholds principles of fairness and transparency to build harmonious labor relations. Equal oppounities are provided in recruitment,compensation and career development. Our robust management system ensures a compliant and equitable work environment, where employees'legal rights and interests are fully protected.We’ve formulated various internal policies such as theRecruitment Management Policy, Labor Contract Administration Policy, Employee PositionTransfer Policyand Internship Management Regulationsin strict compliance with theLabor Law and Labor Contract Law of the People's Republicof China, theLabor Contract Law of the People’s Republic of Chinaand other relevant laws and regulations. These policies establish standardrecruitment and employment procedures and uphold the principles of fairness, impaiality and transparency in recruitment. We rmly oppose allforms of employment discrimination and the use of child labor.As of the end of the repoing period, the Company employed2,797 personnel, with a 100% labor contract signing rate. Empowering Employees with Wellbeing and FulllmentBy focusing on enhancing our employees’ sense of achievement, wellbeing andsecurity, we are building a happiness-oriented organization—one that sees as both afullling place to work and a platform for personal and professional growth. Our eoshave earned us multiple honors, including: National Model Enterprise for HarmoniousLabor Relations, Pilot Enterprise for Employee Wellbeing in Guangdong Province,National Model Workers’ Home, Pilot Unit for Wellbeing-Oriented Enterprises in ZhuhaiCity, and Selected Pilot Unit for Enhancing Employee Quality of Life. Each year, the Company recruits through multiple channels, including campus recruitment, social recruitment and internal referrals. We also oerjob oppounities to milita veterans and persons with disabilities, ensuring equal access and injecting fresh talent to suppo long-term businessgrowth.During the repoing period,1,248 new employees joined the Company. We champion diversity, equity and inclusion as core values of ourcorporate culture. We are committed to creating a workplace thatrespects individual dierences and ensures equal oppounityregardless of ethnicity, race, gender or religious belief. Eveemployee is treated with dignity and fairness. Number of Employees by Gender Male1,643 Under 30years old 30-40 years old1,574 Below Bachelor’sDegree1,298 Bachelor’sDegree1,251 Master'sDegree DoctoralDegree 40-50 years old30235 50 (and above) years old Female1,154 41.26% 58.74% Number of Employees by AgeNumber of Employees by Education 10.80% 31.68% 1.25% 56.27% 8.65% 46.41% 0.21% 44.73% Male Female Number of New Hires by GenderNumber of New Hires by Age 39.02% 41.75% 5.69% 0.24% 60.98% 52.32% Under 30years old 30-40 years old 40-50 years old 50 (and above) years old KPIs Number ofEmployeeswith Disabilities Number ofEmployees fromEthnic Minorities Percentage ofEmployees fromEthnic Minorities 4% 8990 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo The Company places strong emphasis on safeguarding the legal rights of female employees. We uphold equal pay for equal work and oer afull range of leave benets such as maternity, nursing and marriage leave for female employees. We have also introduced dedicated facilitiesincluding lactation rooms, women’s rest lounges and “Care Rooms for Moms” to foster a more comfoable and suppoive working environmentfor women. To suppo women’s mental wellbeing, we regularly invite external expes to conduct counseling sessions, providing on-site suppoto help employees manage stress and maintain a healthy work-life balance. Democratic GovernanceWe strongly value democratic governance and open communication with employees. Since establishing our labor union in 2003, we haveimplemented a series of democratic management systems, including: Employee Paicipation Policy, Collective Bargaining Policy, UnionLeadership Open Oce Hours Policyand Labor Dispute Mediation Policy.Our labor union plays a pivotal role in protecting employees’ rights and fostering democratic engagement, guided by the "Three Represents"ideology. Through mechanisms such as the Employee Representative Assembly, collective bargaining and labor dispute resolution, we ensurethat employees have a voice in decisions that aect their interests. Matters concerning employee welfare are communicated transparently viathe internal OA system to safeguard employees’ right to know. To fuher enhance transparency, the Company has progressively establishedrobust information communication channels. We host regular employee discussion forums and sueys to gather feedback, and has installeda “President’s Suggestion Box” to encourage the submission of ideas and concerns. Constructive suggestions are reviewed and activelyimplemented. By fully leveraging the labor union’s role as a bridge, we proactively safeguard employees’ rights to information, oversight andpaicipation, fostering mutual growth and harmonious labor relations between the Company and its workforce. As of the end of the repoingperiod, 100% of our employees were registered union members. Case Study: Care Rooms for Moms KPIs Female Representation in Management Employees Who TookParental Leave 30% Employees Who TookMaternity Leave Return-to-work RatePost-parental Leave 100% Return-to-work RatePost-maternity Leave100% The Company has established “Care Rooms for Moms” equipped with nursing supplies and designed for use by pregnant andbreastfeeding employees. During the repoing period, these facilities were recognized by Zhuhai City as an Outstanding Modelfor Workplace Amenities. Case Study: Employee Discussion Forums 9192 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo We place the highest priority on employee health and wellbeing, striving to meet the diverse needs of our workforce. We provide comprehensivelogistical suppo across oce, dining, housing, recreation, and commuting seices—ensuring employees enjoy healthy, positive, and secureworking and living environments. In our oce spaces, we have created comfoable and relaxing zones including cafés, break rooms, nap lounges,and reading corners (“Employee Book House”) to help relieve stress. We promote a healthy eating culture with a variety of in-house restaurantsoering diverse cuisines—from Nohern and Sichuan-Hunan avors to Western meals—catering to the dieta preferences of employees fromdierent regions. We also provide on-site accommodation through the Jafron Apaments, built to hotel-grade standards, as pa of ouremployee housing benets. Additionally, we have developed multifunctional wellness venues featuring gyms, badminton cous, table tennisrooms, basketball cous, billiards lounges, and yoga studios. Corresponding employee clubs are formed around these facilities, with regularevents organized to encourage healthy lifestyles and team spirit. For eveday convenience, an on-campus supermarket operates with monthlyshopping subsidies for employees. To suppo commuting needs, we maintain a dedicated transpo team and have developed an internalcarpooling app to facilitate ridesharing for employees living across various city districts.Compensation and Incentive Programs We have developed robust systems to ensure fair and peormance-based compensation, guided by ourCompensation Management Policyand Peormance Evaluation Policy.These policies dene clear standards and processes for peormance reviews and compensation, ensuring fairnessand transparency across the organization.To attract, retain and motivate top talent, we benchmark employee compensation against leading indust standards and have implementeda long-term incentive mechanism. Since our IPO in 2016, we have launched eight equity incentive plans, beneting nearly 1,000 employees.Comprehensive Employee BenetsWe have established a diverse and comprehensive benets system designed to enhance employees’ happiness and sense of belonging. Infull compliance with legal requirements, the Company provides all employees with social insurance and housing fund contributions as wellas statuto leave. We also extend workplace inju and commercial accident insurance to interns and post-retirement contract employees.During the repoing period, we fuher revised ourAttendance and Leave Management Policyto strengthen time-o practices, safeguardrest and leave entitlements and eliminate the risk of forced labor. KPIs We have established transparent complaint mechanisms governed by formal policies such as the Employee Communication & Feedback Policyand the Resolution on Establishment of the Labor Union’s Legal Supeision Committee. These policies dene the roles, channels andresponsible paies for handling complaints. Employees can submit complaints through condential channels such as email or telephone. Allcases are handled promptly with strict condentiality and feedback is provided in a timely manner.We have also established a legally compliant Labor Dispute Mediation Committee and an early-warning system for labor risks. Additionally, wecollaborate with external legal seice providers to oer comprehensive legal consultation and suppo for our employees. Employee Complaints Mechanism In 2024, our social insurance coverage reached 100% Workplace Amenities Dining Facilities DormitoriesSpos Complex Yoga StudioGym Break Room Cafés 9394 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Employee Activities We believe in maintaining a healthy work-life balance and organize a range of recreational and celebrato events throughout the year, such asthe Jafron Festival, employee recognition ceremonies, family carnivals, year-end galas and club competitions. These activities not only provideoppounities for relaxation and socialization but also foster team cohesion, a strong sense of belonging and overall employee satisfaction.Since 2007, the Company has celebrated employees who have been with us for 10 years or more. In recognition of our successful restructuringand independent development, we designated the third Saturday of each July as the Jafron Festival—an employee holiday marked by festiveevents and cultural celebrations. Over the years, the Jafron Festival has become a key pa of our corporate culture. Case Study: 18th Jafron Festival Case Study: Club Competitions On July 27, 2024, we held our 18th Jafron Festival under the theme “Chaing a Course Toward the Future” at the Zhuhai Workers’Cultural Palace. The celebration was streamed live across the Company’s subsidiaries, creating a shared experience. In gratitudefor their long-standing seice, employees with 5, 10, 15, 20 and 25 years of tenure were honored with special awards. A vibrantprogram of peormances drew rounds of enthusiastic applause from the audience. Case Study: 2024 Family Carnival Table Tennis Championship Badminton Tournament Basketball Match 9596 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Case Study: “United in Spirit, Reaching New Heights” Retreat A joint initiative between the labor union and our main hemopeusion caridge manufacturing site brought 400 frontline employeesand managers together for a restorative retreat themed “United in Spirit, Reaching New Heights” focusing on team-building andemployee wellness. On June 8, 2024, the closing ceremony of the 4th Zhuhai United Front Spos Games themed “Together as One – Jafron Cup” washeld at the Jinan University Zhuhai campus. Hosted by the United Front Work Depament of the CPC Zhuhai Municipal Committeeand co-organized by the Zhuhai Federation of Trade Unions and Jinan University, the event welcomed over 1,700 athletes from 33teams across the city. Jafron proudly paicipated as the only corporate representative team. Case Study: “Together as One – Jafron Cup” at the 4th Zhuhai United Front Spos Games Employee Care and SuppoWe are committed to fostering a harmonious, inclusive and suppoive workplace where employees can thrive both professionally and personally.Each year, we organize mental health seminars and oer on-site counseling seices to help employees manage stress and maintain emotionalwellbeing. The Company also suppos employees facing nancial hardship through a structured assistance program governed by theEmployeeHardship Relief Policy. This mechanism is regularly improved to provide timely and eective suppo for employees in need. During the repoingperiod, the labor union secured RMB 10,800 in medical mutual aid subsidies from Guangdong Province for two employees. One employeereceived RMB 3,000 per quaer in hardship assistance. Promotion Management The Company has established a comprehensive internal career development management mechanism. Employees are encouraged to choose acareer path that aligns with their strengths and professional orientation—whether in professional, technical or management tracks. By providingclear and scientic promotion pathways, the Company suppos employees in realizing personal growth while contributing to the Company’soverall value, fostering a harmonious and mutually benecial environment. Career Development and Talent Cultivation Chief ExpeProfessional Track Career Pathway ExpeBusiness ManageSenior Supeisor SupeisorSpecialist Senior ExecutiveManagerial TrackCareer PathwayDirectorManagerSection ChiefSupeisorSpecialist Ceied TechnicianTechnical TrackCareer PathwaySenior EngineerAdvanced EngineerIntermediate EngineerAssistant Engineer Technician New Hire 9798 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo To better suppo the implementation of the Company’s strategic plans and help achieve business goals at all levels, while enhancing thepeormance of management personnel, the Company has introduced theJafron Management Track Learning and Evaluation OptimizationProgram. This program sets dierentiated assessment, incentive and feedback mechanisms for employees, aiming to identify and nuurepotential internal management talent at various levels and strengthen the talent pipeline. To suppo employee development, the Company oers internal trainer-led courses and the Xuanxing 2.0 Learning Platform. This platformprovides diverse learning environments, comprehensive digital management and data visualization tools to promote knowledge transfer andtalent development within the organization, seing as a foundation for enterprise training and talent management. KPIs In 2024, 316 employees were transferredor applied for internal positions accounting for 12.10% ofthe total workforce Employee Training Talent is the prima driving force of enterprise development. The Company places strong emphasis on talent cultivation and development byestablishing a comprehensive, multi-level training system. It provides specialized training across dierent functions—from frontline productionto R&D and management—suppoed by a well-established pool of instructors. The goal is to fully unlock employee potential, enhance overallcompetencies, and empower employees in their roles to advance the Company’s talent development strategy. Jafron Training System OverviewRole-Based EmpowermentSuppo for Group Talent SupplyCorporate Culture Implementation Competency Evaluation and Feedback Training Management SystemTraining Resources System TypeTraining TracksManagementTraining ProfessionalTraining ManagementTrainee Track ManagementPromotion Track On-the-JobCompetency TrackStandardProject Track Marketing IndustrialManufacturingTechnology & R&D ComprehensiveSupport New Employee TrainingSun?ower Program(Campus Recruitment) Pre-con?rmationEmpowerment System andPolicy TrainingO?ce SkillsProfessional EthicsExternal TrainingNew EmployeeTraining GeneralTraining PolicyManagement RequirementsManagement Implementation Management EvaluationManagement TrainerResources External TrainingResources Course Content Resources LearningPlatformResources E-learning Platform New Employee TrainingProfessional Skills TrainingTalent Introduction Training Xuanxing 2.0 Learning Platform KPIs Total Training InvestmentRMB person-timesTotal Training Instances Total Training Sessions Employee Training Coverage sessions3,540persons3,042 342,300 100% Total Paicipants 61,448 99100 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo The Company actively conducts safety inspections and hazard identication, maintaining detailed ledgers for each facility’s operation,maintenance and updates. All functional depaments ensure closed-loop safety management, promptly addressing and correcting issuesto reduce potential safety risks. During the repoing period, the hazard rectication rate was100%. Hazard Identication and Remediation The Company places a strong emphasis on work safety and has established theEmergency Response Plan for Work Safety Accidents. Thisincludes a structured emergency response organization comprising an Emergency Command Center, Emergency Rescue Team, Communicationand Liaison Group, Security and Evacuation Team, Medical Aid Group and Logistics Suppo Team. Based on the type and severity of potentialsafety incidents, assessments of worker exposure, and analysis of potential site conditions, a three-tier emergency response mechanism hasbeen established to enhance preparedness and organizational response capability. Regular emergency drills are conducted to minimize theconsequences and impact of potential incidents. During the repoing period, the Company conducted safety emergency drills. To evaluate the practical implementation of emergency response protocols and assess the leadership, coordination and decision-makingcapabilities of key personnel during major incidents, Jafron’s EHS Depament conducted a comprehensive emergency drill at JafronIndustrial Park on December 27. The exercise aimed to enhance employees’ emergency response skills in re suppression and evacuation. Emergency Response Plan KPIs Occupational Health and Safety FirstSafety Management System The Company strictly complies with theWork Safety Law of the People's Republic of China,Law, theLaw of the People’s Republic of Chinaon Prevention and Control of Occupational Diseasesand other relevant laws and regulations. It has established systems such as theWorkSafety Accountability System, Work Safety Reward and Penalty Systemand Occupational Health Management Policyto standardize theentire process of occupational health and safety management. In line with the “dual responsibility for one position” and the principle of “thosewho oversee industries, businesses or production must also control work safety”, the Company has formed a Work Safety Committee and asubordinate EHS Depament to strengthen leadership in safety management. A sound occupational health and safety system has been putin place. The Company requires all relevant personnel to sign work safety responsibility statements and implements ve-tier dierentiatedsafety compliance awards for each unit. Safety peormance is included in the annual KPIs of unit heads and in monthly assessments for eachunit’s safety sta to ensure all management and employees take accountability for safety and meet safety targets.Throughout the repoing period, the Company experienced no major safety incidents. Safety Risk ManagementThe Company has formulated policies such as theJafron Work Safety Information Repoing System, Jafron Hazard Identication andRectication Systemand Risk Classication and Control System for the Hemopeusion Caridge Manufacturing Plant. These policies suppo astandard, ongoing risk identication process. Methods such as LS and LEC are used to assess risk, analyze the likelihood and consequences ofaccidents, determine hazard levels, and produce tools such as risk heat maps, hazard identication and assessment tables, and risk classicationcontrol ledgers. Preventive measures are implemented with ongoing monitoring and adjustment to ensure that safety measures are eectivelyenforced and risks are minimized. To prevent occupational diseases, the Company and its subsidiaries conduct regular testing for occupationalhazards in the workplace, gaining timely insights to reduce the incidence of work-related illnesses. Percentage of CeiedSpecial Operators100% Investment in Work-RelatedInju Insurance972,500 Work InjuInsurance Coverage100%Wok SafetyInvestmentsRMBRMB4,336,500 Construction Safety ChecksPost-holiday Comprehensive Facto Safety Inspections Case Study: Annual Comprehensive Emergency Drill at Jafron Industrial Park 101102 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Each year, the Company organizes various awareness and training activities to strengthen its safety culture. These include EHS knowledgecontests, expe-led risk inspections and workshops, a “Spot the Hazard” employee engagement campaign, reghting skills competitions,and customized safety initiatives by individual depaments. These eos aim to improve the safety skills of personnel, raise awareness, andbuild a robust culture of safety. Safety Culture Development KPIs 2024: Occupationalhazard detection rate100% Compliance rate ofhazard monitoring100% New occupational disease cases Safety Management Measures The Company prioritizes employee health and has established the Personnel Health Management Policy. Each year, we oer free healthcheck-up plans tailored to dierent employee categories and maintain detailed health records, with one le per employee. This allows for earlydetection of potential health risks, timely medical inteention and professional health management advice. A health cabin equipped withself-seice diagnostic equipment has been installed to enhance employee health seices.The Company also conducts regular screening for metabolic diseases like cardiovascular conditions and high cholesterol, paicularly foremployees over 40, using diagnostic tools such as metabolic disorder analyzers and lipid prole tests. Employees showing early signs ofmetabolic abnormalities are oered preventative treatments using in-house blood purication products. Follow-up results show a signicantreduction in chronic disease risks. During the repoing period, 100% of employees received health check-ups. Occupational Health Screenings The Company has implemented several systems to ensure standardized and full-process management of outsourced engineering andconstruction projects, including the Outsourced Engineering Management Policy, Project Management Policy and Construction SafetyManagement Regulations. These documents specify the responsibilities of contractors and related paies. We conduct regular safety trainingand assessments for them to prevent incidents and ensure project safety and quality. Stakeholder Safety Management The Company strictly enforces regulations on occupational diseaseprevention to safeguard employees’ full right to know. We use clearwarning signs, distribute hazard notication letters and provide lists ofhazard-prone positions and personnel to inform workers aboutpotential risks such as noise, high temperatures, UV radiation and dustexposure. Employees are required to undergo occupational healthtraining and to properly use and maintain personal protectiveequipment. This ensures employees are aware of occupational hazardsand are equipped to protect their health proactively. Occupational Health Protection Fireghting Skills CompetitionCompany-wide Safety Knowledge Contest Emergency First Aid Training by Invited Medical ExpesHands-on First Aid Skills Workshops Honors and Awards 103104 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo KPIs Compassion in Action, Advancing Public WelfareSocial Welfare Initiatives Jafron remains steadfast in its commitment to social responsibility, extendingwarmth and suppo to vulnerable groups through diverse initiatives ineducation, medical assistance, povey alleviation and disaster relief. Throughthese eos, it contributes to global health advancements and sustainablesocial development. During the repoing period, the Company was honoredas an Outstanding Case of Corporate Social Responsibility among ChinesePrivate Enterprises for its innovative approach to charitable models driven bycompassion, and received accolades such as the “Red Cross Society of ChinaDedication Medal” and “Outstanding Contribution to Charitable Giving Award”.These recognitions reect broad societal appreciation for the Company’s long-standing dedication to social good. During the repoing period, the Company provided material donations to disaster-aected regions such as Henan and Meizhou, deliveringpractical aid to local residents. It also made nancial donations to education development foundations at Sun Yat-sen University and NanjingUniversity to suppo educational advancement. Additionally, initiatives like the “One-Meter Dream Space” program and employee paicipationin volunta blood donation activities demonstrate the Company’s ongoing commitment to giving back to society through concrete action. In 2024, the Company contributedto public welfare and charitable programs. RMB38,302,200 “Red Cross Society of China Dedication Medal”“Outstanding Contribution to Charitable Giving Award” To help build a child-friendly city in Zhuhai and embrace the concept of "seeing the world from a one-meter perspective"， the Companylaunched the Jafron·Zhuhai Happy Home – “My One-Meter Dream Space” public welfare program. The program aims to foster a nuuringenvironment for children, paicularly those from single-parent or underprivileged families, to suppo their educational and personalgrowth. Case Study: “Jafron” Sets Sail — Women’s Federation Suppos the ‘One-Meter Dream Space’ Program On September 20, Jafron headquaers located in Zhuhai National High-Tech Industrial Development Zone hosted a volunta blooddonation event. A total of 131 employees donated 43,950 milliliters of blood, which will be used for medical rescue eos across Zhuhaiand is estimated to meet the city’s clinical blood needs for two days. This initiative underscores Jafron’s strong sense of corporate socialresponsibility and its commitment to lifesaving causes. Case Study: Volunta Blood Donation 105106 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Safeguarding Health During the repoing period, leveraging its internal resources, Jafron actively contributed to the medical and healthcare sector throughdonations to medical foundations, equipment donations and targeted aid, helping advance the healthcare sector and improve access toaordable healthcare for more individuals. Rural RevitalizationIn alignment with China’s new-era rural revitalization strategy, Jafron is taking concrete actions to fulll its commitment to suppoing therevitalization of rural communities. By proactively contributing to the consolidation of povey alleviation achievements and the comprehensiveadvancement of rural development, the Company is helping to build a stronger, more inclusive society. On June 1, 2024, during the “Children’s Day Care & Love Pairing Initiative” hosted by the Zhuhai Women’s Federation, Jafron donatedRMB 200,000 to the Federation’s charitable foundation. The funds suppo the “Lighting the Stars: Love Makes Us Not Alone” project,which provides families with children on the autism spectrum with nancial aid, professional guidance, rehabilitation subsidies, andpsychological suppo. Case Study: RMB 200,000 Donation to Suppo Children with Autism On September 13, Jafron donated medical supplies valued at RMB 1 million to Yuanling County, Huaihua City. The donation includedtop-quality home-made equipment such as the DX-10 Blood Purication Machine and JF-800A Hemopeusion Machine, intended foruse in critical care and emergency detoxication. This eo suppos the county in improving its healthcare capabilities and providingbetter health security for its residents. Case Study: Donation of RMB 1 Million to Suppo Medical Development in Yuanling County, Huaihua City In 2024, Zhuhai City launched the “6·30 Rural Revitalization Event” under the theme “Consolidating Povey Alleviation Achievements,Advancing Rural Revitalization”. Actively responding to the government's call, Jafron pledged RMB 10 million during the event,demonstrating its rm dedication to the rural revitalization cause. This signicant contribution suppos targeted assistance eos andregional cooperation, fuher reinforcing the long-term impact of povey alleviation work. Case Study: “6·30” Rural Revitalization EventAs a socially responsible listed company, Jafron has consistently adhered to its philanthropic mission for years, courageously embracingits duties and actively engaging in public welfare endeavors. From 2022 to 2024, the Company donated RMB 1 million to suppo uremiapatients in Huanggang City, including RMB 333,000 in 2024 alone, beneting over 4,000 local patients. Case Study: RMB 333,000 Donation to Suppo 4,000 Uremia Patients in Huanggang City 107108 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Economic Governance Summa of KPIs KPI KPI Unit Unit 2024 2024 Operating revenueNet prot attributable to shareholders of the parent company Total assetsBasic earnings per shareTax payment Number of legal training sessionsCompliance rate in signing ethics-related declarationsRepoed bribe or corruption incidentsNumber of the management paicipating in anti-bribe and anti-corruption training sessionsTotal duration of anti-bribe and anti-corruption training delivered to the managementNumber of employees paicipating in anti-bribe and anti-corruption training sessionsTotal duration of anti-bribe and anti-corruption training delivered to employees RMB 100 millionRMB 100 millionRMB 100 millionyuan/shareRMB 100 million Sessions%CasesPersonsHoursPersonsHours 26.77 8.20 53.83 1.02 4.70 2,336 Environmental KPIUnit2024 Total GHG emissions?Direct GHG emissions (Scope 1)?Indirect GHG emissions (Scope 2)?Natural gas consumptionTotal purchased electricityPhotovoltaic power generation?Total energy consumption? RMB 10,000 tCO2etCO2e10,000 m? kWhkWhtce 19,309.478,644.93 10,664.54 399.823 27,564,089.961,725,7808,397.60 Response to Climate Change Environmental Compliance Note 1Note 2Note 3 MetricUnit2024 Total investment in environmental protection Environmental training sessionsEnvironmental training paicipants Total training hours RMB 10,000CasesRMB 10,000SessionsPerson-timesHours 8,541.02 The solar power project was commissioned in March 2024; data reects the period from March through December 2024.Repoed GHG emissions include Scope 1 (direct) and Scope 2 (indirect) emissions, which are calculated in accordance with theGHGEmissions Accounting and Repoing Guidelines for Industrial Enterprises (Other Sectors). Note 2: Scope 1 emissions cover natural gasconsumption; Scope 2 emissions include purchased electricity (sourced from China Southern Power Grid). Natural gas emissions arecalculated based on a conversion factor of 1 m? of natural gas equivalent to 1.20 kg of standard coal by energy content.Total energy consumption includes natural gas, purchased electricity and solar-generated electricity. Natural gas emissions arecalculated based on a conversion factor of 1 m? of natural gas equivalent to 1.20 kg of standard coal by energy content. Amounts of major administrative penalties imposed bycompetent ecological and environmental authorities andother relevant depaments for environmental violations Major administrative penalties imposed by competentecological and environmental authorities and otherrelevant depaments for environmental violations 109110 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo KPIUnit2024Air emissionsNitrogen Oxides (NOX) Sulfur DioxideVolatile Organic Compounds (VOC)Paiculate Matter (PM)Wastewater DischargesChemical Oxygen Demand (COD)Ammonia Nitrogen (NH3-N)Total Phosphorus (P) m?tonstonstonstonstonstonstonstons 5,333.65 7.85 0.19 3.78 0.17 141,383 1.829 0.011 0.004 KPIUnit2024 tons %tonstonstonstons % %tonsWaste activated carbon (HW49) Waste organic solvent (HW49)Waste empty drums (HW49) Sludge tonstonstonstons 13.02 0.67 1.6 373.08 Quantity of general waste generatedRecycling rate of general wasteQuantity of general waste disposedQuantity of hazardous waste generatedQuantity of hazardous waste disposed Total waste recycledWaste recycling rateWaste disposal compliance rateWaste liquids (HW06) 661.64 43.61 373.08 121.82 121.82 288.56 36.83 106.54 Pollutant Discharge Waste Management KPI KPI Unit Unit 2024 2024 tonstonstons tonstonstonstons% Total water consumptionFreshwater withdrawalRecycled and reused water Total packaging materials usedPaper packagingPlastic packagingReused/recycled packaging materialsPackaging material recycling rate 753,795705,03848,757 8,432.328,158.35 273.97 4,800 56.92 KPIUnit202220232024 24,009.32 8.97 17.38 RMB 10,000%Persons%PatentsPatentsPatentsPatentsPatentsPatentsPatents/// 25,390.82 10.21 20.08 24,537.87 12.79 22.59 R&D investmentsR&D spending as a percentage of total revenue Total R&D team sizeR&D personnel as a percentage of total workforce Total patent applicationsPatents granted (valid)Granted invention patentsGranted utility model patentsGranted design patentsTotal trademarksPublished papersNumber of Specialized and Sophisticated Enterprisethat Produces Novel and Unique ProductsNumber of National High-Tech EnterpriseNumber of National Enterprise Technology Center Water Resources Utilization Material Use Innovation-Driven DevelopmentSocial 111112 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo The overall customer satisfaction is calculated by averaging the following satisfaction measures—Adsorbent catego: 99.06%,Equipment catego: 98.96%, Tubing catego: 100%, Plasma Separator/Dialyzer catego: 97.18%, Bandage catego: 100%. KPIUnit202220232024Product pass rateFrequency of internal quality auditsThird-pay inspectionsProduct recall volumeIncluding: product recalls associated with safety and health concernsAmount of loss resulting from major product-or seice-related safety or quality incidents Quality training paicipants Total quality training hoursTotal quality training sessionsNumber of suey paicipantsCustomers paicipating in sueys as a percentage of total customer baseValid customer satisfaction questionnaires collected Overall customer satisfaction?Complaint resolution rateNote 1 Product Safety and Seice Quality KPIUnit202220232024 Total number of suppliersIncidents involving major supply chain risk and implications Suppliers Cases Supply Chain Security Includes both moneta and in-kind donations, with in-kind donations measured at fair value.Note 1 KPI KPI Unit Unit 2022 2022 2023 2023 2024 2024 Incidents involving breaches of customer dataSubstantiated complaints concerning breaches of customer privacy and losses of customer dataTotal number of conrmed incidents involving leakage, theft or loss of customer dataNumber of data security/customer privacy protection training sessionsData security/customer privacy protection training coverage Average training hours completed per employee on data security/customer privacy protection Public welfare investments? RMB 10,000CasesCasesSessions%Hours RMB 10,000 1,480.35 2,613.96 3,830.22 Data Security and Privacy Protection Social Contributions %AuditsInspectionsPcs.Pcs.RMB 10,000Person-timesHoursSessionsPersons%Copies%% 100% /// 0.71 98.93% / 100% /// 0.62 98.99% / 100% 4,95324,672 0.65 99.04% 113114 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo KPI Including: number of employees by gender Including: number of employees by age Including: number of employees by education Including: number of employees by geographical region Including: number of new hires by age Including: number of new hires by gender Unit202220232024Labor contract signing rateNumber of tempora employeesNumber of pa-time employeesTotal number of employeesNumber of employees with disabilitiesNumber of employees from ethnic minoritiesPercentage of employees from ethnic minorities Female MaleUnder 30 years old30-40 years old40-50 years old50 (and above) years oldBelow Bachelor’s Degree Bachelor’s DegreeMaster's DegreeDoctoral DegreeMainland ChinaHong Kong, Macau, Taiwan OverseasNumber of new hires Under 30 years old 30-40 years old40-50 years old50 (and above) years old FemaleMale %PersonsPersonsPersonsPersonsPersons %PersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersons PersonsPersonsPersonsPersons PersonsPersons 100% 3,003 1%1,2161,787 1,829 1,4691,322 3,000 1,350 100% 2,797 4%1,1541,643 1,574 1,2981,251 2,794 1,248 100% 2,408 2% 1,418 1,384 1,0631,140 2,406 Labor Rights and Interests KPIUnit202220232024 Total investment in employee training Total training sessions Total paicipantsTotal training instancesTotal training hoursAverage hours of training per employee per year Employee training coverage RMB 10,000SessionsPersonsPerson-timesHoursHours/person% 14.60 1,2293,29427,47378,726.6 23.9 100% 34.23 3,5403,04261,44892,872.26 30.53 100% 34.45 2,0262,64326,56275,933.39 28.73 100% Including: number of new hires by geographical regionMainland China Hong Kong, Macau, Taiwan OverseasFemale representation in managementEmployees who took maternity leaveReturn-to-work rate post-maternity leaveEmployees who took parental leaveReturn-to-work rate post-parental leaveSocial insurance coveragePercentage of employees underwent regular peormanceevaluations and career development assessments Labor union membership rateEmployee engagement scoreEmployee paicipation rate in engagement suey Number of employee depauresTotal employee turnover? PersonsPersonsPersons%Persons%Persons%%%%5-point scale%Persons% 1,349 39% / 100%/ 4.07 72.15% 1,222 28.9% 1,245 30.0% 100%100% 4.03 77.21% 23.50% 34% 100% / 3.94 68.64% 26.80% Employee training and development Total employee turnover = (Annual total depaures) / (Annual total depaures + Total number of employees at year-end)Note 1 115116 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Safety training coverageSafety risk mitigation training coveragePercentage of ceied special operatorsInvestment in work-related inju insuranceWork inju insurance coverageEmployee health check-up coverageRate of occupational disease hazard detectionCompliance rate for occupational disease hazard monitoringNumber of new cases of new occupational diseases %%%RMB 10,000%%%%Cases //100% 50.28 100%100%100%100% //100% 62.62 100%100%100%100% 100%100%100% 97.25 100%100%100%100% KPIUnit202220232024Total safety incidentsWork-related fatalitiesTotal number of work-related injuriesLost days due to work injuHazard inspection rectication rateNumber of emergency drills conducted Wok safety investments?Investment in safety training?Number of work safety training sessions Total training instancesTotal training hours CasesPersonsPersonsWorkdays%SessionsRMB 10,000RMB 10,000SessionsPerson-timesHours //100% // 11,43312,413 //100% // 11,58113,042 100% 433.65 6.6 12,77913,430 Occupational Health and Safety Response to Climate ChangePollutant DischargeWaste ManagementEcosystem and Biodiversity PreseationEnvironmental Compliance Energy useWater Resources UtilizationCircular EconomyRural RevitalizationSocial ContributionsInnovation-Driven DevelopmentEthics in science and technologySupply Chain Security Advancing Low-Carbon Practices and PromotingGreen Healthcare - Response to climate changeAdvancing Low-Carbon Practices and Promoting Green Healthcare -Environmental Compliance and Low-Carbon InitiativesAdvancing Low-Carbon Practices and Promoting Green Healthcare - Environmental Compliance and Low-Carbon InitiativesAdvancing Low-Carbon Practices and Promoting Green Healthcare -Environmental Compliance and Low-Carbon Initiatives Not InvolvedAdvancing Low-Carbon Practices and Promoting Green Healthcare - Circular Economy and Green DevelopmentAdvancing Low-Carbon Practices and Promoting Green Healthcare - Circular Economy and Green DevelopmentAdvancing Low-Carbon Practices and Promoting Green Healthcare - Circular Economy and Green DevelopmentPeople-Oriented Development and Social Harmony -Compassion in Action, Advancing Public WelfarePeople-Oriented Development and Social Harmony - Compassion in Action, Advancing Public WelfareCrafting Excellence to Propel Indust Development Together - Sma Innovation: Key to Technology-Driven GrowthCrafting Excellence to Propel Indust Development Together - Sma Innovation: Key to Technology-Driven GrowthCrafting Excellence to Propel Indust Development Together - Stable Supply and Security Assurance Index of MetricsDisclosure RequirementsReference Section Product and Seice Safety and Quality Data Security and Privacy Protection Equal Treatment of SMEsNot Applicable Employees Crafting Excellence to Propel Indust Development Together - Data Security and Privacy ProtectionCrafting Excellence to Propel Indust Development Together - Excellence in Quality: Our Foundation for TrustCrafting Excellence to Propel Indust Development Together -Customer-Centric Seice with Dual-Engine ExcellencePeople-Oriented Development and Social Harmony - Compliant Employment Practices and Fair OppounitiesPeople-Oriented Development and Social Harmony -Empowering Employees with Wellbeing and FulllmentPeople-Oriented Development and Social Harmony -Career Development and Talent CultivationPeople-Oriented Development and Social Harmony - Occupational Health and Safety FirstDue diligenceStakeholder EngagementAnti-bribe & anti-corruptionAnti-unfair Competition Crafting Excellence to Propel Indust Development TogetherSustainability Governance - Stakeholder EngagementRobust Governance: Strengthening the Foundation for Sustainable Growth - Business Ethics and Corporate ValuesRobust Governance: Strengthening the Foundation for Sustainable Growth - Business Ethics and Corporate Values Wok safety investments and investments in safety training are estimated gures.Note 1 Guidelines No. 17 of Shenzhen Stock Exchange for Self-Regulation of Listed Companies – Sustainability Repo (Trial) 117118 HEALTH TECHNOLOGY FOR A BETTER WORLD Environmental, Social and Governance (ESG) Repo Feedback 0756-3619693ir@jafron.com98 Keji 6th Road, Zhuhai National High-tech Industrial Development Zone,Zhuhai City, Guangdong, China Feedback channel 1.How would you rate this year’s ESG repo overall? □ Excellent □ Good □ Average □ Below Average □ Poor 2.How would you rate this repo’s accuracy, clarity and completeness? □ Excellent □ Good □ Average □ Below Average □ Poor 3.How would you evaluate the readability of this repo? □ Excellent □ Good □ Average □ Below Average □ Poor 4.Does the repo adequately reect the Company’s signicant impacts on the economy, society and the environment? □ Excellent □ Good □ Average □ Below Average □ Poor 5.How would you assess this repo’s logical reasoning, content organization and layout design? □ Excellent □ Good □ Average □ Below Average □ Poor 6.Which topics in this year’s ESG repo most captured your attention? 7.What additional information would you like to see in future ESG repos? 8.Do you have any fuher comments or suggestions regarding our ESG repo or sustainability initiatives and practices? Thank you for taking the time to read the Environmental, Social and Governance (ESG) Repo 2024 of Jafron Biomedical Co., Ltd. We sincerelyvalue your feedback and welcome any suggestions or insights you may have regarding our sustainability practices and ESG peormance. Yourinput plays a critical role in helping us continuously enhance our sustainability practices and peormance. To that end, we kindly invite you tocomplete the feedback form below and return it to us via one of the contact methods listed. We are grateful for your continued suppo in ourjourney toward sustainable development. Which of the following stakeholders is most relevant to you in relation to Jafron? □ Employee □ Customer □ Shareholder/Investor □ Supplier □ Government or Regulatory Agency □ Academic or Research Institution □ Media/General Public □ Other (please specify):__________________________
附件： ↘公告原文阅读

URL:www.jafron.comTel.: 0756-3619693Email:ir@jafron.comAddress: 98 Keji 6th Road, Zhuhai National High-tech Industrial Development Zone.Zhuhai City, Guangdong, China

ENVIRONMENTAL, SOCIAL ANDGOVERNANCE (ESG) REPORT 2024

Jafron Biomedical Co., Ltd.

Jafron Ocial Website Jafron WeChat Ocial Account

Health Technology for a Better World

Summa of KPIsIndex of MetricsFeedback

Appendix

About This RepoMessage from the ChairmanKPI Highlights 2024About Us

Response to Climate ChangeEnvironmental Compliance and Low-Carbon InitiativesCircular Economy and Green Development

Compliant Employment Practices and Fair OppounitiesEmpowering Employees with Wellbeing and FulllmentCareer Development and Talent CultivationOccupational Health and Safety FirstCompassion in Action, Advancing Public Welfare

Advancing Low-Carbon Practicesand Promoting Green Healthcare

People-Oriented Development

and Social Harmony

Corporate Governance: Driving Steady ProgressEnhancing Internal Control and Risk ManagementProtecting Shareholder Interests: Prioritizing Investor RightsBusiness Ethics and Corporate Values

SustainabilityGovernance

Sma Innovation: Key to Technology-Driven GrowthExcellence in Quality: Our Foundation for TrustCustomer-Centric Seice with Dual-Engine ExcellenceData Security and Privacy ProtectionStable Supply and Security Assurance

Sustainability GovernanceStakeholder EngagementMateriality Management

Crafting Excellence to PropelIndust Development Together

Robust Governance:

Strengthening the Foundation

for Sustainable Growth

About This Repo

0102

Repo Introduction

This is the inaugural Environmental, Social and Governance (ESG) Repo published by Jafron Biomedical Co., Ltd. (“Jafron”, the “Company”or “we”). This repo intends to disclose the Company’s ESG-related concepts, practices and peormance for the 2024 repoing year in anobjective, normative, transparent and all-inclusive manner.

Repoing PeriodThis repo covers the period from Janua 1 to December 31, 2024 (the “repoing period”). In order to present more comparative andforward-looking repoing data, ceain sections may include retrospective data or forward-looking statements. This repo is publishedon an annual basis, which is consistent with the Company’s nancial repoing cycle.

Data SourcesThe data disclosed in this repo is derived from a range of sources, including internal operational records, publicly available data fromgovernment agencies, annual nancial statements, internal statistics and third-pay sueys. All nancial gures are presented in Renminbi(RMB). In cases of discrepancies between this repo and the nancial statements, the latter shall prevail.

Access To This RepoThis repo is available for review and download from the Company's ocial website (https://www.jafron.com), the website of ShenzhenStock Exchange (http://www.szse.cn) and the website of cninfo (http://www.cninfo.com.cn), where you can nd fuher insights aboutJafron.

Conrmation and ApprovalThis repo was approved by the Board of Directors of the Company for publication on April 15, 2025. The Board undeakes to supeisethe preparation of this repo, conrming that the contents of this repo are true, accurate and complete in all material aspects, free frommisstatements or misleading information.This repo is published in Chinese. The English version is a translation of the original Chinese text. In the event of any discrepancies, theChinese version shall prevail.

Repoing Bounda and TerminologyThis repo is specic to Jafron Biomedical Co., Ltd. along with its branches and subsidiaries. The scope of this repo is consistent withthat of the Company’s annual repos. In this repo, unless the context otherwise species, the following terms shall have the followingmeanings:

Terminology

AbbreviationJafron, the Company, weBeijing JafronHubei Jafronianfu Pharmaceutical

Company NameJafron Biomedical Co., Ltd.Beijing Jafron Medical Equipment Co Ltd.Hubei Jafron Biotechnology Co., Ltd.Zhuhai Jianfu Pharmaceutical Co., Ltd.

Repoing Guidelines

United Nations Sustainable Development Goals (SDGs)

Global Repoing Initiative (GRI)Sustainability Repoing Standards (“GRI Standards”)

Guidelines No. 17 of Shenzhen Stock Exchange for Self-Regulation of Listed Companies – Sustainability Repo (Trial)Guidelines No. 3 of Shenzhen Stock Exchange for Self-Regulation of ChinNext Market Listed Companies – Sustainability RepoGuidelines of China Enterprise Reform and Development Society on Sustainability Repoing for Chinese Enterprises (CASS-ESG 6.0)

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

The year 2024 has been a pivotal chapter in Jafron’s journey towardembedding sustainable development at the core of our operations. Amidthe dynamic and complex global economic and environmental landscape,we have remained steadfast in our mission of “Health Technology fora Better World”, embedding ESG principles into the ve fabric of ourcorporate strategy and day-to-day operations. We are committed todelivering safer and more sustainable healthcare solutions to peoplearound the world.Over the past year, we were honored with the “People’s CraftsmanshipTechnology Award” and recognized among the “2024 Healthy ChinaInnovative Practice Cases”. Leveraging our world-leading bloodhemopeusion with resin adsorption technology, we have continuedto deliver “China's solution” across multiple therapeutic areas, includingkidney, liver and critical diseases and poisoning. Our products are nowdistributed across more than 90 countries and used in over 8,000 hospitals,with more than 5 million cases of clinical application annually, bringingrenewed hope to millions of patients worldwide. These achievements arethe result of the collective dedication of our employees and the enduringtrust of our paners, rearming the vitality of our business philosophy:

“Building Excellence through Expeise, Winning through Quality andSeing with Integrity”.Throughout 2024, we maintained a strong commitment to greendevelopment across our research, development and manufacturingactivities. Through continuous technological innovation and processoptimization, we have worked to reduce resource consumption andminimize our environmental footprint while enhancing energy eciencyand promoting decarbonization practices. We recognize thatsafeguarding the planet is as vital as protecting human health. Lookingahead, we are determined to fuher explore low-carbon developmentpathways, leveraging technologies to contribute to the global pursuit ofcarbon peak & carbon neutrality and sustainable development.

Over the past year, R&D and innovation have remained at the heaof our strategy towards creating greater industrial values. Anchoredby our proprieta “direct blood adsorption” platform technology, wehave expanded its clinical applications from detoxication to treatmentof kidney, liver and critical diseases. Going forward, we will continue tostrengthen our R&D capabilities, actively exploring the transition fromdisease treatment to disease prevention. We aim to broaden the clinicalapplication of hemopeusion technologies to encompass preventivehealthcare and health management, creating even greater value forglobal health.Meanwhile, we have continued to cultivate a “Joyful Co-Win” corporateculture, underpinned by a “striver-centered” philosophy. We fuherenhanced our talent development and retention programs, allowingemployees and shareholders to share the fruits of business development.We provide diverse training oppounities, clear career progressionpathways and comprehensive suppo programs for new graduates incareer development and eveday life. Our philosophy — “MaximizingTalent and Optimizing Resources for Shared Success and Prosperity” —remains a guiding force. Since our public listing in 2016, nearly a thousandkey employees have shared in the Company’s success through equityincentive plans and employee stock ownership plans, truly realizing the vi-sion of shared growth and prosperity. In addition, we remain committed tomaximizing shareholder value through cash dividends, share repurchasesand increased shareholding by our controlling shareholders, aligning withbest practices to deliver strong returns to our investors.Looking ahead, Jafron will move forward with renewed resolve, embracingESG principles, expanding healthcare accessibility, accelerating greentransformation, and empowering our people to drive collective progress.We rmly believe that integrating business growth with the well-being ofhumanity is the only path to sustainable, long-term success. Let us joinhands to safeguard life with craftsmanship and illuminate the future withtechnology.

0304

Message from the Chairman

Dear friends, thank you for taking the time to read this repo. Onbehalf of the Board of Directors of Jafron, I would like to extend mysincere gratitude for your ongoing suppo and trust in our company.

Jafron Biomedical Co., Ltd.Chairman: Dong Fan

External AppointmentsMember, Guangdong Provincial Committee of theChinese People’s Political Consultative Conference(CPPCC)Standing Committee Member, Zhuhai MunicipalPeople’s CongressExecutive Committee Member, All-China Federationof Indust and Commerce (ACFIC)Vice President, Pharmaceutical Chamber ofCommerce, ACFIC

HonorsExpe Receiving Special Government Allowancefrom the State CouncilLeading Talent of “National High-Level Personnel ofSpecial Suppo Program”National Innovation and Entrepreneurship TalentForbes China Best CEO 2021Second Prize, National Science & TechnologyProgress AwardFirst Prize, Guangdong Science & TechnologyProgress AwardGuangdong May 1st Labor Medal Recipient

Vice Chairman, Guangdong Federation of Industand CommerceChairman, Zhuhai Federation of Indust andCommerceVice President, Guangdong Society for Promotion ofthe Guangcai Program

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Social

100%Labor contract signing rate

100%

Social insurance coverage

100%

Employee health check-upcoverage

100%

Training coverage

4,336,500Wok Safety InvestmentsRMB38,302,200Public welfare investmentsRMB

R&D investments

millionRMB100%

Pass Rate

0506

Economic

2,677

Operating Revenue

millionRMB

Net prot attributable to shareholdersof the parent company

millionRMB

5,383

Total Assets

millionRMB

1.02

Basic earnings per share

per shareRMB

Tax Payment

millionRMB

Environmental

85,410,200

Total investmentin environmental protectionRMB

Environmental training sessionssessions

100%

Waste disposal compliance rate

19,309.47

Total greenhouse gas (GHG) emissions

tCO2e

56.92%

Packaging material recycling rate

KPI Highlights 2024

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

0708

Company Prole

About Us

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Founded in 1989, Jafron Biomedical Co., Ltd. is a company listed onthe ChiNext Market of the Shenzhen Stock Exchange (A-shares)(Stock Code: 300529), specializing in the R&D, manufacturing andsales of biomedical materials and advanced medical devices. TheCompany’s core business focuses on hemopurication productsand technologies. The Company ranks among the top Chinese listedcompanies in the medical device sector by market capitalization. Ithas been recognized with prestigious awards such as the “GoldenBull Award for Best Investment Value” and “Top 50 ChiNext ListedCompanies” for 4 consecutive years. In 2019, it was honored as the“Listed Company with Best Shareholder Return” and with China’sFinancial Annual Champion Award for ChiNext Market Listed “Com-petitive Enterprise”. Jafron was also named one of the “Hurun China100 Most Valuable Non-State-Controlled Healthcare Companies2020”. In the past three years alone, the Company has contributednearly RMB 1.2 billion in taxes.Jafron has earned numerous accolades, including: the Second Prizeof the National Science & Technology Progress Award, the FirstPrize of Guangdong Science & Technology Progress Award, andGolden Bridge Award of China Technology Market Association; andit has been recognized as a Key High-Tech Enterprise under China’sTorch Program, National Manufacturing Single-product ChampionDemonstration Enterprise and National Technology InnovationDemonstration Enterprise. The Company has undeaken severalmajor national and provincial science and technology projects,

including: two National Key New Product Projects, three Projectsunder China’s Torch Program, National Industrial Revitalization andTechnological Transformation Projects, National Major Scienticand Technological Achievements Commercialization Projects, 12thFive-Year Plan Science and Technology Suppo Program, OpenBidding for Selecting the Best Candidates Research Program, Guang-dong Strategic Emerging Indust Core Technlogy Research Program.It has received approvals to establish National Enterprise TechnologyCenter, Academician Workstation, Postdoctoral Research Workstation,Provincial Engineering Research Center, Provincial Key EnterpriseLaborato, Provincial Engineering Technology Development Centerand Provincial Postdoctoral Workstation. Jafron was among the rstcompanies in China and the second in Guangdong Province to passthe medical device GMP inspection. Its products have received CEceication and ISO quality system ceication. The Company hasbeen rated as a Class A Medical Device Manufacturer in Guangdong’sQuality Credit Evaluation for 12 consecutive years. In 2019, Jafron wasrecognized as a “Model Enterprise in the Pharmaceutical Indust” incelebration of the 70th Anniversa of the Founding of New China.

At the core of Jafron’s pofolio are its proprieta, world-leadinghemopeusion caridges, blood purication equipments, and itspioneering clinical medical technologies such as direct blood adsorp-tion, DPMAS, combined aicial kidney and HA+CPB technologies.Jafron’s solutions are deployed across more than 6,000 hospitals inover 30 provinces throughout China, and are expoed to over 90countries worldwide, including Germany, the United Kingdom andItaly. These products and technologies play a critical role in treatingsevere and life-threatening conditions such as uremia, liver failure,poisoning and systemic lupus ethematosus. With a domesticmarket share exceeding 70%, Jafron’s products save hundreds ofthousands of patients each year.

Since the commissioning of its blood purication R&D and productionfacility (Jafron Science and Technology Park) in 2015, Jafron hasexpanded with three production bases in Zhuhai and new productionand innovation centers in strategic regions including Beijing-Tianjin,Guangzhou-Shenzhen and Hubei Province. This geographic footprintsuppos a balanced industrial layout across South, Central and NohChina.Looking forward, Jafron is advancing a holistic blood puricationecosystem that integrates medical devices, consumables, pharma-ceuticals, insurance solutions, chronic disease management andhealthcare seices. This full-spectrum blood purication valuechain will suppo the Company’s evolution into a diversied,globally recognized healthcare group and its vision to“ Become aWorld-class High-tech Medical Technology Group”.

Estimated MarketPotential

RMB 20+ billionRMB 10+ billionRMB 20+ billion

PoisoningUremiaLiver DiseasesCritical Care

Clinical Applications

Pesticide poisoningDrug poisoning...

Treatment andprevention of dialysiscomplications,including:

Hypotension, arrhyth-mia, muscle cramp,hypoxemia, pruritus, airembolism, hemolysis,sleep disorders,subdural hematoma...

Liver failureHepatic encephalopathyHyperbilirubinemiaCholestatic liver diseasePerioperative treatment inliver transplantation...

Severe acutepancreatitis (SAP)Cardiac surgeSevere burnsTraumaSepsis/septic shockAcute respiratodistress syndrome(ARDS)Multiple organdysfunctionsyndrome (MODS)...

Kidney DiseasesHA Series Disposable Hemopeusion CaridgesKHA Series Disposable Hemopeusion CaridgespHA Series Disposable Hemopeusion Caridges

Liver DiseasesHA330-II and HA60 Hemopeusion CaridgesBS330 and BS80 Disposable Plasma BilirubinAdsorption ColumnsCA280 Cytokine Adsorption ColumnCritical Diseases

HA330 Disposable Hemopeusion Caridge foracute poisoning inteentions

ImmunologyHA280 Disposable Hemopeusion Caridgeindicated for autoimmune diseases such asanaphylactoid purpura, psoriasis and rheumatoidahritisDNA230 Immunosorbent Column indicatedfor systemic lupus ethematosusCA330 Cytokine Adsorption Column that is specicallydesigned to reduce cytokine levels in septic patients

HA380 Disposable Hemopeusion Caridge which iswidely used in cardiac surge, severe acute pancreatitis(SAP), multiple organ dysfunction syndrome (MODS),acute respirato distress syndrome (ARDS),sepsis/septic shock, severe burns, etc.

Hemopeusion Caridges

DX-10 Blood Purication MachineJF-800A Hemopeusion MachineFuture F20 Hemoadsorption EquipmentMedical devices that provide extracorporeal circulation drive and safety monitoring forclinical blood purication

Blood Purication Equipmente

Acute and chronic renal failureComprehensive range of hemodialysis concentrates and powders, including high-potassium formulas, citrate-basedsolutions/powders, glucose-containing solutions, and solutions with vaing calcium ion concentrations13 specications of High-ux Hemodialyzers11 specications of Low-ux Hemodialyzers

Dialysis Products

0910

Proprieta ProductsSince launching its rst HA series disposable hemopeusion caridge in 2002, Jafron has dedicated over 23 years to advancing adsorptiontechnology. It currently holds 28 medical device registration ceicates, including 25 Class III ceicates, spanning across the industrial chainof both consumables and medical devices in the blood purication eld.

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Direct Blood Adsorption

Combined Aicial Kidney

DPMAS?

HA+CPB

1112

Proprieta TechnologiesDirect Blood Adsorption: This blood purication therapy involves drawing a patient’s blood into an external circulation system, where endogenousand exogenous metabolic waste, toxins and residual drugs are removed through adsorption by specialized resins within the hemopeusioncaridge. Leveraging its expeise in encapsulation technology, carrier preparation, ligand engineering and medical-grade purication processes,the Company has developed adsorbents with outstanding biocompatibility, clinical-grade safety and specic adsorption peormance, enablingsafe direct contact with human blood.Combined Aicial Kidney: This therapy combines hemopeusion with hemodialysis to achieve broad-spectrum removal of uremic toxins.By integrating the complementa mechanisms of peusion and dialysis, the system signicantly enhances the clearance of medium to largemolecules and protein-bound uremic toxins—oering a more eective solution than conventional blood purication methods.Double Plasma Molecular Absorb System (DPMAS ): DPMAS is an innovative aicial liver therapy pioneered by Jafron. It combines two propri-eta products—an ion-exchange resin-based bilirubin adsorption column (BS330) and a neutral macroporous resin-based hemopeusioncaridge (HA330-II)—to create a synergistic blood purication eect. DPMAS can be used either independently or in combination with plasmaexchange and other therapies. It enables rapid symptom relief, increases treatment success rates and improves prognosis outcomes. It isindicated for liver failure, hepatopulmona syndrome and multiple organ dysfunction syndrome (MODS), regardless of etiology.HA+CPB: This technique involves incorporating the HA380 Disposable Hemopeusion Caridge into a cardiopulmona bypass (CPB) circuit.Blood is diveed from a side branch of the oxygenator through the caridge and then returned to the reseoir. During this process, syntheticresins eectively adsorb inammato mediators generated during CPB treatment, helping to mitigate cytokine storm cascades. This signicantlyreduces systemic inammato responses during extracorporeal circulation in adult patients, stabilizes organ function and improves overallprognosis. The technology has been widely adopted in cardiac surge and other treatment scenarios.

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Anticoagulant

Blood pump

Anticoagulant

Hemodialyzer

HA130

Blood pump

Plasma separator

Blood tank

Oxygenator

HA380

1314

Global Footprint

Jafron’s Global Footprint

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Presence in countries (including Europe, Asia,the Middle East, Africa and South America)

90+

8,000+Collaboration with hospitals worldwide

1516

Corporate Culture

Vision

Mission

Spirit

Core Values

BusinessPhilosophy

Building Excellence through Expeise,Winning through Quality and Seing with Integrity

Innovation, Dedication, Advancing, Sharing

Think Before You Act; Persevere Without Retreat

Health Technology for a Better World

Become a World-class High-tech Medical Technology Group

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

19892002

Completed ownershiprestructuring and embarked onentrepreneurial transformation

Launched agship product HA130Disposable Hemopeusion Caridgeand promoted Combined AicialKidney nationwide

Introduced the “Jafron”trademark and established aproprieta brand

Received the Second Prize ofNational Science & TechnologyProgress Award

Renamed “Zhuhai JafronBiotechnology Co., Ltd.”

Jafron Science and TechnologyPark headquaers completedand operational

Listed on the ChiNext Market of theShenzhen Stock Exchange (A-shares)DPMAS included in theGuideline forNon-bioaicial Liver Suppo Systems inTreatment of Liver Failure: 2016 update

200420052009201020152016

201920202021202220232024

Establishment

Major results achievedin multicenter RCT studyof HA130 DisposableHemopeusion CaridgeRenamed Jafron BiomedicalCo., Ltd.

Jafron hosted the inaugural

International Hemoadsorption

SummitRecognized as a “NationalAdvanced Private Enterprise inthe Fight Against COVID-19”Jafron products included insevere COVID-19 treatmentguidelines across manycountries

Honored as a “National Manufactur-ing Single-product ChampionDemonstration Enterprise”Published theHemopeusion inMaintenance Hemodialysis Patientsand Blood Purication StandardOperating Procedures (2021 Edition)

Zhuhai Jinding Industrial Parkcommenced productionRecognized as a “National Tech-nology Innovation DemonstrationEnterprise”, “National EnterpriseTechnology Center” and “NationalModel Enterprise for HarmoniousLabor Relations”

Awarded the First Prize of GuangdongScience & Technology Progress AwardSelected for the “Open Bidding forSelecting the Best Candidates” program;the only company in Guangdong toundeake development of medical-gradepolyethersulfone materialsSuccessfully hosted the 2nd International?Hemoadsorption?Summit

Its resin adsorption technology awardedthe “People’s Craftsmanship TechnologyAward”Selected as a “2024 Healthy ChinaInnovative Practice Case”

2018

1718

Development Histo

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Jafron Science and TechnologyPark South Campus

Jafron Science and TechnologyPark Noh Campus

Tianjin Production Base

Jinding Industrial Park

(equity aliate - underdevelopment)

Hubei Production Base

Jianshu New MaterialsProduction Base

Jianfu Pharmaceutical(under development)

1920

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Production Capacity & Strategic FootprintJafron’s self-funded blood purication R&D and production facility (Jafron Science and Technology Park South Campus) was successfully completedand commenced operations in 2015, covering 32,000 square meters of land and a total oor area of 65,000 square meters. In 2021, the Jafron Scienceand Technology Park Noh Campus was completed and began production, occupying over 18,000 square meters of land and a total oor area ofapproximately 55,000 square meters. Connected to the South Campus via the “Jafron Bridge”, the unied complex now stands as one of the world’slargest and most advanced R&D and manufacturing centers for hemodialysis and hemopeusion products and solutions, strengthening Jafron’sposition as a professional provider of comprehensive blood purication solutions.In 2017, Jafron acquired Tianjin Standard Biological Preparation Co., Ltd., followed by the launch of Tianjin Jafron Biotechnology Co., Ltd. in 2018.Together, these two entities formed the Tianjin R&D and production base for blood purication products, specializing in the development,manufacturing and sales of dialysis powders, concentrates and related products.In December 2021, the Company commissioned the Hubei Jafron Industrial Park which hosted several full value-chain blood purication projects,including the production of hemodialysis powder and concentrate. The park is positioned as a national benchmark for excellence in blood puricationmanufacturing, enabling Jafron to deliver more premium healthcare solutions to both domestic and global markets. With production bases nowestablished in Zhuhai, Hubei and Tianjin, Jafron has completed a tri-regional industrial layout, strategically covering South, Central and Noh China.The Jinding Industrial Park, developed by Jafron, spans nearly 90,000 square meters. The Phase I work, covering approximately 75,000 square metersof total oor area, was completed and operational in 2022. The Phase II work is planned to add another 120,000 square meters of construction area.Once fully completed, the park will focus on the production of hemopeusion caridges, nano-grade medical materials, hemodialyzers and plasmaseparators. It is poised to become one of the world’s largest and most technologically advanced production bases for blood purication devices andconsumables, laying a solid foundation for the Company’s vision to “Become a World-class High-tech Medical Technology Group”.The Jianshu Core Hemopurication Material R&D and Production Base, located in Zhuhai Gaolan Po Economic Zone, is owned and operatedby Jafron’s subsidia Zhuhai Jianshu New Materials Technology Co., Ltd. The company is positioned as a technology-driven, environmentallyfriendly chemical manufacturer. It operates two main project lines: strategic and prot-driven. The Phase I work focuses on the development ofhigh-peormance polymers and specialty high-value resins used in blood purication. The Phase II work focuses on high-end pharmaceuticaland dye intermediates. The Phase I construction of the biomaterials (including resin and other raw materials) project was structurally completedin August 2022 and will soon incorporate fully automated, high-eciency resin production lines. Upon completion, it will become a leading rawmaterials production base with top-tier automation and process capabilities in the ne chemical indust.

Jianfu Pharmaceutical, a subsidia with its 10% equity owned by Jafron and controlled by the Company’s ultimate benecial owner, is developinga pharmaceuticals R&D and production base. Phase I of this project, spanning approximately 130 mu (about 86,700 square meters) and involvinga planned investment of around RMB 1.5 billion, was structurally completed in 2023. Jianfu Pharmaceutical has already initiated R&D on multiplespecialty medications for kidney diseases and is procuring state-of-the-a pharmaceutical equipment, aiming to build a rst-class pharmaceuti-cal research and production base in the near future.

2122

Key Accreditations

Champion in Single-product

Manufacturing

Key High-Tech Enterprise underChina’s Torch Program

National Technology Innovation

Demonstration Enterprise

National EnterpriseTechnology Center

Major Scientic Research Awards

Second Prize of National Science &Technology Progress Award

First Prize of Guangdong Science &Technology Progress Award

Ceications & Honors

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Corporate Honors Since 2024

Top 100 Innovative Enterprises in Zhuhai 2023 –Innovation Strength Index (Ranked 18th)Zhuhai Municipal Bureau of Science & TechnologyInnovation, Zhuhai Municipal Bureau of Indust andInformation Technology, Zhuhai Municipal Administra-

tion for Market Regulation

Top 100 Innovative Enterprises in Zhuhai 2023 –Economic Contribution Index (Ranked 5th)Zhuhai Municipal Bureau of Science & TechnologyInnovation, Zhuhai Municipal Bureau of Indust andInformation Technology, Zhuhai Municipal Administra-

tion for Market Regulation

Top 500 Advanced Manufacturing Enterprises

in Guangdong ProvinceGuangdong Manufacturers Association, GuangdongProvincial Development and Reform Commission,Institute of Industrial Economics, Jinan University

2024 Healthy China Innovative Practice CasePeople’s Daily Online, health.people.com.cn

National Model Workers’ Home

All-China Federation of Trade Unions

Red Cross Society of China Dedication MedalRed Cross Society of China

Outstanding Contribution toCharitable Giving Award

Zhuhai Federation of Indust and Commerce

“6.30” Rural Revitalization Campaign – Caring

Enterprise

Zhuhai Municipal Bureau of Rural Revitalization

Advanced Unit for Standardization Eos

National Technical Committee on Medical Extracorpo-real Circulation Equipment Standardization Administra-

tion

“People’s Craftsmanship Technology Award”–Resin Adsorption Blood Purication Technology

People’s Daily Online

2023 Zhuhai “Science and Technology InnovationProduct” – Disposable HemodialyzerZhuhai Society for Promotion of Science andTechnology Development

2024 Outstanding Case of Corporate

Social Responsibility amongChinese Private EnterprisesAll-China Federation ofIndust and Commerce

National March 8th Red-Banner CollectiveAll-China Women’s Federation

Recognized Case: Building Family-Friendly Workplaces

All-China Federation of Trade Unions, Minist ofHuman Resources and Social Security, National HealthCommission, China Enterprise Confederation/ChinaEntrepreneurs Association, All-China Federation of

Indust and Commerce

2324

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Sustainability

Governance

Sustainability Governance Framework

Stakeholder EngagementMateriality Management

Jafron has remained steadfast in our mission of “Health Technology for a Better World”,embedding ESG principles into the ve fabric of our corporate strategy and day-to-dayoperations. We are committed to delivering safer and more sustainable healthcare solutions

to people around the world.

Case Study: ESG Training Initiatives

During the repoing period, Jafron hosted several ESG training sessions through in-house business studies and external trainingprograms. Topics included “ESG Investment Best Practices in the Pharmaceutical Indust from an Active Equity Perspective”, “UnitedNations Advanced Seminar on Sustainable Development and ESG” and “Chinese Corporate ESG Repo Rating Standards (2023)”,among others. These training initiatives have signicantly enhanced internal awareness and understanding of ESG concepts and bestpractices.

2526

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Sustainability Governance FrameworkJafron has remained steadfast in our mission of “Health Technology for a Better World”, embedding ESG principles into the ve fabric of ourcorporate strategy and day-to-day operations. We are committed to delivering safer and more sustainable healthcare solutions to peoplearound the world.The Board of Directors is responsible for overseeing and coordinating sustainability governance eos. As pa of the preparation of thisinaugural ESG repo, the Board Secreta’s Oce led a cross-functional collaboration to collect, compile and review relevant data andpractices. Through this process, the Company systematically assessed its ESG peormance and practices, laying a strong foundation forcontinuous improvement of our ESG management system. Looking ahead, the Company will remain steadfast in its commitment to sustainabilitygovernance. We will continue to actively fulll our ESG responsibilities, fuher embedding sustainability into all levels of our operations as weadvance toward a more sustainable responsible future.

Stakeholder EngagementThe Company identies the following stakeholders based on actual business operations: shareholders and investors, employees, customers,suppliers and paners, government or regulato agencies, as well as social organizations or NGOs. We actively engage with these stakeholdersthrough various channels to understand and respond to their expectations and concerns, ensuring mutual growth and long-term value creation.

Stakeholders

Shareholders and Investors

Employees

Customer

Suppliers and Paners

Government or Regulato

Agencies

Social Organizationsor NGOs

Expectations and ConcernsCommunication and ResponseOperational complianceTransparent disclosuresReturn on investment

High-quality, safe productsReliable after-sales seicePrivacy protection

Operational complianceTax complianceRegulato cooperationEnvironmental complianceRural RevitalizationCommunity engagementSuppo for vulnerable groupsFullling Corporate Social ResponsibilityHealth educationEthics in science and technology

Win-win collaborationHonest operationIndust communication and exchanges

Protection of worker’s legal rights andinterestsEmployee training and developmentoppounitiesOccupational Health and Safety

Improving corporate governanceGuaranteeing timely and accurate disclosuresStrengthening investor relations managementImproving protabilityComprehensive compensation and benetsClear training and career progression pathwaysImproving occupational health management andsafety monitoringEmployee care and engagement initiativesIncreasing R&D investmentsRobust product quality managementImproving customer seicesProtecting customer information and privacy

Fullling tax obligationsCompliance with laws and regulationsEnhancing environmental managemenAlignment with rural revitalization policies

Strengthening supplier engagementTransparent procuremenDeveloping strategic panerships

Ongoing community outreachVolunteer paicipationCharitable donations

Environmental

Environmental complianceResponse to climate change

Energy use

Water resources utilizationPollutant dischargeWaste management

Circular economy

Ecosystem and biodiversity preseation

Social

Protection of worker’s legal rights and interestsEmployee training and developmentOccupational health and safetyInnovation-driven developmentData security and privacy protectionEthics in science and technologySupply chain securitySocial contributionsRural revitalization

Product and seice safety and quality

GovernanceAnti-bribe & anti-corruptionAnti-unfair competitionDue diligenceStakeholder engagement

Materiality to economic, social and environmental impacts

Highly material

Highly materialModerately materialMateriality to the Company’s nancial position

Environmental compliance

Energy usePollutant dischargeWater resources utilizationCircular economyProtection of worker’s legal rights and interestsEmployee training and developmentOccupational health and safetyAnti-bribe & anti-corruptionWaste managementData security and privacy protection

Due diligenceAnti-unfair competitionSocial contributionsRural revitalizationStakeholder engagementEcosystem and biodiversity preseationEthics in science and technology

Supply Chain Security

Response to climate changeInnovation-driven developmentProduct and seice safety and quality

2728

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Materiality ManagementJafron employed assessment methodologies based on both global and domestic disclosure standards such as theGuidelines No. 17 of ShenzhenStock Exchange for Self-Regulation of Listed Companies – Sustainability Repo (Trial)and GRI Standards, incorporating a dual analysis of bothimpact materiality and nancial materiality to identify and assess material topics. The following table presents the specic steps of assessment:

List of Material Topics

Materiality Assessment Results

Based on the above list of material topics, and following in-depth analysis of exchange guidelines and stakeholder suey responses, theCompany has developed a materiality matrix using the dual lenses of impact materiality and nancial materiality.

Step 1

Background AnalysisStep 2

Initial Issue Screening

Step 3

Materiality Assessment

Step 4

Issue Conrmation

Material Issue

Assessment Process

Analytical ApproachAssessed macro trends at the global level and within China’s industrial landscape, andanalyzed the Company’s indust characteristics and business model to identify potentialimpacts, risks and oppounities the Company and its stakeholders currently face.Developed a pool of 22 material topics by drawing upon domestic and internationalsustainability rating methodologies along with best practices from indust peers, takinginto account indust characteristics, market trends and the Company’s business model.Analyzed the extent to which the Company’s peormance on each topic signicantly aectsthe economy, environment and society， and conducted a stakeholder suey, yielding 283valid responses. Based on this, 14 topics were identied as having impact materiality.

Compiled a materiality matrix based on the results of Step 3, distinguishing those based onimpact materiality and nancial materiality and ensuring that all relevant topics are presentedin a transparent, balanced and comprehensive manner.

Impact Materiality Assessment

Analyzed the results of the suey, focusing on the impact, dependencies and other relevantfactors; and integrated expe judgment and risk assessment inputs from various depamentsinto the process to identify and evaluate the risks and oppounities associated with eachtopic. This resulted in the identication of 4 topics holding nancial materiality.

Financial Materiality Assessment

2930

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Crafting Excellence to

Propel IndustDevelopment TogetherDriven by the core values of “Innovation, Dedication, Advancing, Sharing”, Jafron remains committedto technological innovation. It continually enhances product quality and safety management, improvescustomer seice capabilities, safeguards data privacy and security and renes supply chain excellence,

working collaboratively to propel indust development.

Sma Innovation: Key to Technology-Driven Growth

Excellence in Quality: Our Foundation for Trust

Data Security and Privacy ProtectionStable Supply and Security Assurance

SDGs

Risks

Risk TypeDescriptionResponses

ImpactPeriod

PotentialFinancialImpact

Policy andregulatorisk

Technologyupgrade risk

Sho- andmedium-term

Increasedoperating costsThe medical device sector is subject tostringent government regulation. TheCompany must closely monitor changesin policies such as theRegulations on theSupeision and Administration of MedicalDevicesto ensure legal compliance. Failureto do so could result in penalties, lawsuitsor other legal consequences.

1. Closely monitor and study national

and local policy and regulatochanges.

2. Timely adjust business strategies

in response to market rule changesand regulato updates induced byhealthcare system reforms.

Medium-term

Decreased

revenueAs R&D investment increases across theindust, new technologies and innovativeproducts are likely to emerge in the nearfuture. If the Company fails to keep pacewith indust advancements or updateits existing products in time, it may faceadverse business impacts.

1. Prioritize the development of

a robust R&D system, enhanceforward-looking strategic planning intechnology innovation, and increaseinvestment in new product develop-ment aligned with market demand.

2. Continuously upgrade and optimize

existing technologies.

3. Strengthen IP protection to prevent

leaks and infringement.

3132

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Sma Innovation: Key to Technology-Driven GrowthJafron remains committed to innovation-driven development, with sustained R&D investment, strengthened talent pipelines and platformbuilding to enhance in-house R&D capabilities. Focusing on the eld of blood purication, the Company continues to develop new technologiesand products, explore broader applications and elevate its core competitiveness with the aim of contributing to the advancement of globalhealth.

The Company boasts strong in-house R&D capabilities and operates a comprehensive range of research platforms, including the NationalEnterprise Technology Center, Academician Workstation, Postdoctoral Research Workstation, Provincial Enterprise Technology Center, ProvincialEngineering Technology Development Center, Provincial Engineering Research Center and Provincial Postdoctoral Workstation. In addition, it hasestablished a Hemopeusion Technology Research Institute and a Product Testing Center for Blood Purication, with a focus on the research ofcore and common technologies in the indust. The Testing Center has been accredited by China National Accreditation Seice for ConformityAssessment (CNAS), providing robust technical suppo for the R&D platforms. Through continuous improvements in functionality and

The Company has established a suite of policies in accordance with domestic and international laws, technical guidelines and standards, including:

the Guidelines for New Product Development Project Planning, the End-to-End Process and Role Descriptions for New Product Development, theR&D Project Initiation Management Regulationsand theR&D Project Closure Management Regulations. These documents dene the requirementsand specications for R&D planning, full lifecycle product development and project closure. The Company has also built a collaborative R&Dorganizational structure with clearly dened roles and responsibilities, suppoed by a project lifecycle management tool (PPM system), to fosterthe initiation of R&D projects, accelerate the development of new quality productive forces and enhance the indust’s core competitiveness.During the repoing period, the Company established a new R&D and Innovation Center to fuher strengthen its innovation system and enhanceoverall innovation eciency, ensuring that innovation outcomes align with the Company’s strategic needs and operational eciency.

Innovation-driven Governance

The Company closely monitors changes in the internal and external environment of the indust. It publishes quaerly Indust Insight Repos,identifying relevant factors such as national policies, competitive dynamics and technological developments. These insights help the Companyproactively identify R&D-related risks and oppounities and develop responses aligned with its innovation strategy, thereby enhancing itscompetitive edge and maintaining its leading position in the indust.

Innovation-driven Strategy

R&D and Innovation Platforms

CNAS Laborato Accreditation Ceicate

Jafron is committed to medical technology innovation and continuously strengthens its R&D talent pipeline. Through internal and externaltraining, learning and case sharing, the Company broadens the knowledge of its R&D personnel, enhances their technical capabilities andimproves their expeise. Targeted training resources are introduced based on specic needs, fostering vitality and building a well-structured,innovation-driven R&D team with the ultimate goal of bolstering the Company’s R&D capacities. As of the end of the repoing period, theCompany employed a total of 486 R&D personnel, presenting 17.38% of the workforce.

Innovative Talent Development

National High-TechEnterprises

National EnterpriseTechnology Center

National Technology InnovationDemonstration Enterprise

Specialized and Sophisticated Enterprisethat Produces Novel and Unique Products

Champion in Single-productManufacturing

mechanisms, the Company has enhanced its innovation capabilities and accelerated the commercializationof research achievements, demonstrating its solid strength and forward-looking approach in scienticresearch and innovation.

Risks

Risk TypeDescriptionResponses

ImpactPeriod

PotentialFinancial

Impact

Competition

risk

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HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

The Company adheres to its phased R&D strategy of “products in market, products in resee and products under development”， and hasformulated medium- and long-term plans to guide innovation. During the repoing period, the Company increased R&D investment, strengthenedtechnical capabilities of its R&D team and continuously advanced the commercialization of scientic and technological achievements to suppostrategic goal execution.

Metrics and Targets

Medium- and

long-term

IMarket shareandrevenue loss

With the rapid growth of the domestichemopeusion indust, expansion ofexisting enterprises and the ent of newplayers, competition is intensifying acrossthe indust. Without continuous innovationin technology and product oerings, theCompany may face a decline in marketcompetitiveness.

Oppounity TypeDescription

ImpactPeriod

Potential Financial ImpactOppounity

Industrial upgradingand transformation

Medium- andlong-termTechnological innovation is a key driver of industrialupgrading. By introducing new technologies, processesand management approaches, the Company can helpdrive the indust towards higher-end and smaerdevelopment.

Reduced production costs andimproved production eciency

Technological innovationand market leadership

Long- termIncreased revenuePersistent R&D eos and breakthroughs in core tech-nologies, along with continuous development of newproducts, can help the Company signicantly enhanceits competitive strength, secure market leadership andgarner substantial prot returns.

1. Continue to focus on principal

businesses, persist in technologicalinnovation, actively expand productpofolios, and drive technologicaltransformation of products alongsideupgrade of their applications.

2. Consistently enhance automation

levels in production processes andIT-enabled management capabilities,develop Hemopeusion CaridgeManufacturing 4.0, and continuouslystrengthen integrated sma manufac-turing capabilities.

Long-term (over 5 years): Impact is far-reaching and long-lasting, generally extending beyond ve years.

R&D Objectives

Develop new technologies, materials and products to rene the bloodpurication indust chain and enhance core competitivenessReinforce R&D platform development to improve both the quality andeciency of research and developmentStrengthen R&D talent development and collaboration with internal andexternal research forces to boost overall R&D capacity

2024 Progress

R&D spending

millionRMB

8.97%

presenting

of total revenueBy the end of the repoing period, the Company held 28 medical device registration ceicates, including 25 Class III ceicates.In 2024, the Company acquired one new domestic registration ceicate; HA series, BS series, CA series, KHA series and plasmaseparator series passed the CE (MDR regulation) ceication.In 2024, the Company led a total of 53 patent applications and acquired 27 new granted patents (valid), including: 17 inventionpatents, 8 utility model patents and 2 design patents.Total number of registered trademarks: 243 ; academic output: 1 paper published.

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Key R&D ProjectsTrial production

ObjectiveTarget OutcomeHemodialysisProductDevelopment

To develop a hollow berhemodialyzer to address toxinaccumulation in ESRD (uremia)patients

Enrich product pofolioand enhance core compet-itivenessLaunch new products and obtain registrationceicates; achieve internationally advancedtechnical standards; ensure compatibility withexisting hospital equipment. Simultaneouslydevelop new materials to reduce reliance onimpoed raw materials and enhance productpeormance.

Expected Impact on FutureDevelopment

Product launched

ObjectiveTarget OutcomeEquipmentPeormanceOptimization

To enhance equipment peor-mance to better meet clinicalneeds

Enrich product pofolioand enhance corecompetitivenessOptimize hardware and software to developcost-eective equipment suited to domesticclinical applications.

Expected Impact on Future

Development

Registration ling

ObjectiveTarget OutcomeConsumables

for BloodPurication

To develop universal andspecialized tubing sets foruse with equipment andother blood puricationconsumables

Enrich product pofolioand enhance core compet-itivenessLaunch new products to provide compatibleconsumables for various equipment and bloodpurication products.

Expected Impact on FutureDevelopment

Trial production

ObjectiveTarget OutcomePlasmaAdsorption

Products

To develop disposableblood/plasma adsorptionproducts for clinical treatmentof bilirubin adsorption, inam-mato mediators, autoimmunediseases, etc.

Enrich product pofolioand enhance core compet-itivenessDevelop new products and optimize existingproducts; obtain registration ceicates oramendment approvals; achieve improved clinicalecacy.

Expected Impact on FutureDevelopment

Registration ling

ObjectiveTarget OutcomeBloodPuricationEquipment

To develop continuous bloodpurication (CBP) equipmentfor clinical blood puricationtreatment

Enrich product pofolioand enhance core compet-itivenessSuppo a wide range of blood purication clinicalmodes; provide extracorporeal circulation driveand safety monitoring for CBP, hemopeusion,plasma adsorption and plasmapheresis.

Expected Impact on FutureDevelopment

Trial production

ObjectiveTarget OutcomeHemopeusionProducts

To develop disposablehemopeusion caridgesfor clinical treatment ofendotoxin/cytokine removal

Enrich product pofolioand enhance core compet-itivenessDevelop new products and obtain registrationceicates; suppo eective treatment ofrelated diseases.

Expected Impact on FutureDevelopment

Basic research

ObjectiveTarget OutcomeProduct Upgradesand IterativeDevelopment

To launch upgradedproducts and introducenew material alternatives

Improve competitivenessof existing products,reduce costs and enhanceeciencyDevelop new materials to improve productpeormance; upgrade manufacturing processesto promote iterative improvements to existingproducts.

Expected Impact on Future

Development

To eectively promote research, development and innovation, the Company has established policies such as the Regulations on Incentives forR&D Projects and the Regulations on Incentives for R&D Ideas. These mechanisms provide multiple layers of rewards—including project-based,patent-related and idea-based incentives—to recognize signicant R&D achievements and contributions that facilitate innovation. TheCompany actively encourages both internal sta and external paners to propose innovative R&D ideas, fostering an environment conduciveto the initiation of breakthrough projects. During the repoing period, the Company was granted 5 incentive awards, totaling RMB 311,000along with patent-related incentives totaling RMB 72,300 .

Innovation-Driven MeasuresIncentives for R&D Innovation

The Company actively leverages the intellectual resources of universities and research institutes, and has been approved to establish acomprehensive range of research platforms, including the National Enterprise Technology Center, Academician Workstation, PostdoctoralResearch Workstation, Provincial Enterprise Technology Center, Provincial Engineering Technology Development Center, Provincial EngineeringResearch Center and Provincial Postdoctoral Workstation.To fuher deepen the integration of indust, university, research and application, the Company has introduced several institutional policies,including the Scientic Research External Collaboration Regulations and the Regulations on the Management of Postdoctoral ResearchWorkstation. These documents help regulate the management of external expes, research institutions and postdoctoral research worksta-tions. In addition, we collaborate with academic and research institutions through joint laboratories, co-development initiatives, commissionedresearch, and joint postdoctoral training, eectively utilizing external research resources to improve R&D speed, quality and overall researchcapacity. The Postdoctoral Management Oce is responsible for routine administrative matters such as recruitment, onboarding andcompletion procedures, and also plays a role in attracting high-level talent and facilitating collaboration

Strengthening Indust-University-Research Collaboration

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across mobile research stations. The Company has established in-depth panerships with institutions such as the Shenzhen Institutes ofAdvanced Technology, Chinese Academy of Sciences, Sun Yat-sen University Postdoctoral Research Workstation, Shenzhen NationalInnovation Center for Advanced Medical Devices, and Hexaell Biotech. These collaborations focus on joint technology development andenhancement of innovation capabilities.In addition, we have co-founded a Multi-Organ Suppo Therapy (MOST) Expe Committee with several world-renowned expes in clinicalresearch and critical care medicine. The committee aims to provide robust evidence and new solutions for the global clinical application ofMOST.

As a co-builder of the healthcare indust ecosystem, Jafron has actively paicipated in domestic and international academic conferences andtrade exhibitions in elds such as nephrology, hepatology, critical care and sub-health. By paicipating in these events, the Companystrengthens communication with peers, explores the latest indust developments, cutting-edge technologies and research outcomes, andshares knowledge and expeise to jointly advance technological progress and research in the medical device eld—ultimately beneting morepatients. The Company also contributes to the development and publication of various indust standards and clinical guidelines, suppoingthe healthy and orderly growth of the indust and promoting sustainable development in panership with other stakeholders.

Enhancing Indust Engagement

Paicipation in Indust Exchange Activities during the Repoing Period

2024 Global Healthy Longevity Conference

2024 Chinese Society of Nephrology Critical Care Nephrology & Blood Purication Conference

Conference of the Chinese Society of

Nephrology 2024 (CCSN 2024)

61st Annual Convention of the European

Renal Association (ERA)Nephrology Society ofThailand Annual Meeting2024 High-Quality Development Forum forAicial Liver & Blood PuricationTechnology Demonstration Centers

Paicipation in Indust Exchange Activities during the Repoing Period

6th China Critical Care Medicine Research Forum & Therapeutic Technology Conference

International Training Course onCritical Care Blood Purication

The Company places great impoance on intellectual propey (IP) management and protection. In accordance with the Patent Law of thePeople’s Republic of China and other relevant laws and regulations, and based on the Company's actualities, it has formulated the PatentManagement Regulations to regulate patent application, incentives and maintenance activities. In addition, the Company has established apatent classication and evaluation system and built an information platform to suppo lifecycle IP management.The Company has been ceied under the GB/T 29490-2013 Intellectual Propey Management System and has been recognized as a“National Intellectual Propey Demonstration Enterprise”.

The Company incorporates patent and trademark planning from the initial stages of product development. All patents undergo internalapplication, evaluation, review, infringement analysis and patent monitoring to ensure that each IP acquisition sees a clear commercialpurpose and rests on a solid technical foundation. From project initiation to completion, patent infringement searches ensure a smooth path tomarket, while a dedicated legal team handles infringement disputes to safeguard the Company’s technologies and products from infringement.During the repoing period, no incidents of IP infringement were repoed.

Intellectual Propey ProtectionTitleTypeStatusReference No.Disposable Plasma Bilirubin Adsorption ColumnYY 1290-2016PublishedIndust StandardrDisposable Hemopeusion CaridgeYY/T 0464-2019

PublishedIndust StandardrGuideline for Non-bioaicial Liver Suppo Systemsin Treatment of Liver Failure: 2016 update

Chinese Journal of Clinical Infectious Diseases,

Vol. 9, No. 2, 2016-4

PublishedGuidelineGuidelines on the Management of HepaticEncephalopathy in Cirrhosis (2018)

Journal of Clinical Hepatology, Vol. 34,

No. 10, 2018-10

PublishedGuidelineGuideline for Diagnosis and Treatment of

Liver Failure (2018)

Journal of Clinical Hepatology,Vol. 35, No. 1, 2019-1

PublishedGuidelineBlood Purication Standard Operating

Procedures (2021 Edition)

/PublishedSOP

Paicipation in Standard/Guideline Development

Core Compliance RequirementsAll trial protocols are approved by the Ethics Committee and strictly follow legal and regulatostandards, ensuring informed consent, privacy protection and risk minimization for subjects.

Subject information is encpted and handled with full traceability, used solely for researchpurposes.Clinical trials are conducted in accordance with theRegulations on the Supeision and Admin-istration of Medical Devices, GCP (Good Clinical Practice) and other relevant guidelines, withinterim repos submitted to regulato authorities to ensure transparency and compliance.

Ethical Review

Data Security

Quality Supeision

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Environmental, Social and Governance (ESG) Repo

While committed to the research and development of medical devices, Jafron fully recognizes that its business operations involve key areasof ethics in science and technology, including but not limited to data privacy protection and the ethical review and responsible application ofscientic research outcomes. The Company strictly complies with relevant laws and regulations to ensure a balance between technologicalinnovation and social responsibility. During the repoing period, no incidents of major violations related to ethics in science and technologywere repoed.

Ethics in science and technology

The Company has established an Institutional Animal Care and Use Committee (IACUC). Its laborato animal facilities within the ScienceBuilding are licensed for animal use. All animal experiments are conducted in strict compliance with the following regulations and guidelines:

GB 14922-2022 Laborato Animal—Microbiological and Parasitical Standards and Monitoring, GB 14923-2022 Laborato Animals GeneticQuality Control, GB 14925-2023 Laborato Animal─Environment and Housing Facilities, GB/T 39760-2021 Laborato Animal-Guidelinesfor Euthanasia, Regulations on the Administration of Laborato Animals, Guiding Opinions on the Humane Treatment of Laborato Animalsand GB/T 35892-2018 Laborato animal—Guideline for ethical review of animal welfare. The Company has developed a comprehensive setof laborato management systems and standard operating procedures to ensure that all production activities respect animal life and welfareand uphold public ethical standards.

Animal Experiments

In the eld of clinical trials for medical devices, the Company strictly adheres to the following regulato and ethical standards:

Regulations onthe Supeision and Administration of Medical Devices, Regulations on the Administration of Registration and Filing of Medical Devices, HelsinkiDeclaration,and Administrative Measures for the Ethical Review of Life Science and Medical Research Involving Human. The Company ensuresthat all clinical trials align with the principles of protecting subject rights, data authenticity and risk controllability. Through ethical reviews, subjectrights protection and data security management, the Company complies with both domestic and international laws and ethical standards,ensuring its scientic research activities are legal, safe, socially valuable and respectful of subject rights.

Medical Device Clinical Trials

To enhance employees’ knowledge and skills in animal ethics, the Company conducts training on science and technology ethics through acombination of internal and external programs, based on its annual training plan. The training covers topics such as ethical principles forprofessionals, laborato animal specications, biosafety related to laborato animals, and regulato requirements for clinical trials of medicaldevices. We are committed to continuously improving our tiered training system, facilitating the transformation of ethical awareness intopractical execution, and building a dual-driven mechanism of “Technological Innovation + Ethical Safeguards” to ensure a sustainable balancebetween research value and the rights of trial subjects.

Ethics Awareness Development

Animal Experiments – Evaluation and Testing Center

Case Study: Jafron Organizes Specialized Training on Supeision over Clinical Trials of Medical Devices

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Jafron pioneered the use of resin as an adsorbent material and was the rst globally to develop “direct blood adsorption” technology, oeringinnovative solutions for critically ill patients with conditions such as uremia, severe liver disease and lupus. These new technologies have enabledphysicians to treat diseases that were previously considered untreatable, thereby creating signicant social value. Jafron is also committed toexpanding the global reach of its products to benet more patients worldwide. Driven by technological innovation, the Company continues toinvest in R&D to overcome technical bottlenecks and deliver more high-quality products and solutions, with the aim of improving treatmentoutcomes for patients. At the same time, we promote health education through channels such as the Jafron WeChat ocial account and the“Aduoduo” health management seice platform, oering product knowledge sessions, expe lectures and real-world patient stories.

Medical AccessibilityExcellence in Quality: Our Foundation for TrustWe operate under a robust quality philosophy: “rooted in precision, committed to quality, ensuring safety and ecacy, continuously improving,and delivering products and seices that earn customer trust”. In alignment with theProduct Quality Law of the People’s Republic of Chinaandother relevant laws and regulations, we have developed a robust quality management system to safeguard the integrity of our products andseices. During the repoing period, the Company repoed zero major quality or safety incidents and received no large-scale quality-relatedcomplaints.

Quality Management System Ceicate

The Company has built a comprehensive and standardized quality management system aligned with ISO 9001 and ISO 13485 quality managementstandards. Key internal governance documents — including theQuality Manual, Product Assurance Control ProceduresandProduct Identicationand Traceability Control Procedures— provide structured guidance to ensure product quality. We’ve established a dedicated quality managementorganizational structure. The President, who sees as the designated executive accountable for the safety and quality of all medical deviceproducts, oversees all product quality-related work. Cross-functional teams work in conce to execute quality management tasks and drivecontinuous system improvement, thereby reinforcing our commitment to quality and customer satisfaction.To date, the Company and its major subsidiaries have successfully obtained ISO 9001 quality management system ceication and ISO 13485medical device quality management system ceication. During the repoing period, our HA and BS series disposable hemopeusion caridgesobtained ceication under the EU Medical Device Regulation (MDR), underpinned by rigorous clinical evidence and a mature quality system.

Quality Governance

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Product and Seice Safety & Quality Strategy

Quality Targets

Major (or above) quality incidents = 0;serious quality incidents ≤1

Number of recalls due to qualityissues: 0

2024 ProgressAchieved

The Company sets yearly quality management targets and closely tracks peormance to ensure continuous improvement. Any identied gapsare addressed through timely corrective actions to strengthen our quality systems.

Metrics and Targets

Sho-term (within 1 year): Impact is rapid and tempora, typically lasting less than one year.Medium-term (1–5 years): Impact is sustained and has signicant inuence over a period of one to ve years.Long-term (over 5 years): Impact is far-reaching and long-lasting, generally extending beyond ve years.

Oppounity TypeDescription

ImpactPeriod

Potential Financial ImpactOppounity

Marketoppounity

Medium- andlong-termGrowing demand for higher safety and quality standardsin medical devices oers the Company an oppounityto upgrade product oerings, elevate brand value andcapture greater market share.

Increased pricing, sales andrevenueTechnologicaloppounity

Medium- andlong-term

Reduced production costsThe continued evolution of intelligent manufacturing anddigital transformation enables the Company to enhanceseice quality and operational eciency by leveringautomation and other technologies.

Risks

Risk TypeDescriptionResponses

ImpactPeriod

PotentialFinancialImpact

Regulatorisk

Medium-term

Increasedcomplianceand operatingcosts

Hemopeusion products aresubject to rigorous regulatooversight related to manufacturing,marketing authorization andcorporate qualications. Enterprisesmust swiftly adapt to evolving lawsto ensure ongoing compliance.

1. Conduct regular reviews of

policies and regulations; ensuretimely product ceications toensure product compliance withestablished standards.

2. Strengthen quality control

through comprehensive qualitymanagement.

3. Peorm routine inspections and

monitoring to identify potentialquality issues.

4. Provide quality training to

enhance employee expeisein product knowledge and equip-ment operation.

Product quality

or customercomplaintsSho-term

Increasedoperatingcosts andreputational lossPost-sale quality issues or customercomplaints, especially mass returns,can signicantly undermine brandreputation and customer loyalty.

1. Establish a responsive and

robust after-sales seice systemto capture feedback and drivecontinuous improvement in,product design and seice quality.

2. Maintain a proactive product

recall mechanism to ensure swiftresponse to and resolution of anyquality incidents.

Product safety

risk

Medium- andlong-term

Increasedoperatingcosts anddecreasedrevenue

As our core product — the dispos-able hemopeusion caridge —comes into direct contact withhuman blood, the product safety iscritical to patient lives and health.Any compromise in product safetymay result in serious medicalincidents, potentially harmingbrand reputation. This could lead toproduction halts, a loss of marketshare and a reduction in sales.

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The Company has established theRisk Management and Control Procedures, creating a well-dened framework that outlines the riskmanagement process and responsibilities. Its operations are guided by the principle of “avoiding risk where possible; minimizing risk whereavoidance is not feasible; and actively monitoring and mitigating risk through corrective and preventive actions”. Through risk management,we ensure that all potential risks across the entire lifecycle of medical devices — from design and development to production, usage anddisposal — are identied and controlled within acceptable thresholds.

Risk Management

Risk Management Plan

Risk Analysis

Risk Evaluation

Risk control

Comprehensive Residual Risk Evaluation

Risk Management ReviewProduction and Post-Production Activities

Risk Management Process

Risk Management

Risk Assessment

General ProvisionsInformation gatheringInformation ReviewMeasures

Intended Use and Reasonably Foreseeable MisuseIdentication of Safety-Related CharacteristicsHazard and Hazardous Conditions IdenticationRisk Estimation

Risk Protocol AnalysisImplementation of Risk Control MeasuresResidual Risk EvaluationBenet-Risk AnalysisRisks Arising from Risk Control MeasuresRisk Control Integrity

We maintain an uncompromising commitment to quality management, embedding quality controls throughout the entire product lifecycle —from planning, design and development, procurement, manufacturing and delive to after-sales seices. To ensure consistent product qualitythat meets both customer expectations and regulato requirements, we have implemented a suite of procedural documents, including theProduction Process Control Proceduresand Product Protection Control Procedures, to govern each phase of product realization with precisionand rigor. In parallel, we deploy a multi-tiered inspection framework that includes incoming sampling, in-process sampling, engagement ofthird-pay testing agencies, and warehouse ent and exit inspections to eectively detect and mitigate potential quality risks.During the repoing period, the Company conducted2 internal quality audits and arranged 6 third-pay inspections.

Quality Lifecycle Management

In alignment with the European Union’s RoHS directive which restricts the use of ceain hazardous substances, we have developed theRoHSControl Procedurestailored to our operational context. This document governs hazardous substance management across all stages — frommaterial procurement and manufacturing to packaging, storage and transpoation — ensuring that all components, semi-nished goods andnished products comply with RoHS standards.

Restriction of Hazardous Substances (RoHS)

During the repoing period, we actively organized and conducted product quality awareness development and training programs in line with the2024 Production System Training Plan. These programs covered a wide range of topics including product knowledge, adverse event monitoring,manufacturing quality, and applicable medical device regulations concerning facilities and equipment. The training aims to enhance employees’quality control skills and quality awareness, encourage full paicipation in quality management and mitigate the risk of contamination duringpharmaceutical manufacturing, ultimately guaranteeing product safety and integrity.

Product Quality Training

Product Safety and Quality Management

4,953

KPIs

Quality training paicipants

person-times24,672

Total quality training hours

hours

Total quality training sessions

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Case Study: Quality Training Sessions

To ensure eective identication and control of non-conforming products and prevent unintended use or distribution of these products, wehave established theNon-Conformance Control Procedureswhich clearly dene the requirements for identication, documentation, segregation,evaluation and disposition of nonconforming items.Additionally, we have implemented policies including theField Safety Notication, Product Recall and Information Disclosure Control Proceduresand the Product Recall Control Procedures to manage product safety communications and recalls. Cross-functional teams from QualityManagement, Customer Seice and Sales are responsible for issuing domestic eld safety notices and executing recalls of medical devices.These teams conduct timely root cause analyses, provide supplemental information and guidance and implement corrective actions to ensurethat any potentially defective products are promptly removed from the market — safeguarding the health and safety of patients and healthcareprofessionals.

Non-conformance Control and Product Recalls

We actively engage in academic collaboration and promotion, accumulating substantial evidence-based data and clinical research ndings innephrology, hepatology and critical care to validate the safety, ecacy and cost-eectiveness of our products. These high-quality researchoutcomes provide a solid scientic foundation that suppos product safety and helps increase market acceptance. Besides, these clinicalresearches empower healthcare professionals and patients with transparent and science-backed information, helping them make informedtreatment decisions and deepening their trust in our products.

Evidence-Based Product Validation

Guidelines &

ConsensusStatements

Guideline forNon-bioaicial LiverSuppo Systems inTreatment of LiverFailure: 2016 update

Chinese guidelines onthe management ofhepatic encephalopa-thy in cirrhosis (2024)Consensus on themanagement of liver injuassociated with targeteddrugs and immunecheckpoint inhibitors forhepatocellular carcinoma(version 2024)Expe consensus onthe application ofaicial liver bloodpurication system inthe treatment of severeand critical COVID-19Guidelines for diagno-sis and managementof drug-inducedliver inju causedby anti-tuberculosisdrugs (2024 version)

Chinese guidelinefor diagnosis andmanagement ofdrug-induced liverinju (2023 version)

Guideline for diagno-sis and treatmentof liver failure (2024version)

TechnicalStandards &Specications

Expe consensus onclinical applicationof aicial liver andblood purication

(2022 edition)

Clinical application andtechnical operationspecication of dual

plasma molecularadsorption systemBlood PuricationStandard Operating

Procedures (2021

Edition)

Practice protocol ofaicial liver supposystem/continuous bloodpurication in pediatric

acute liver failureExpe consensuson non-bio aicialliver equipment and

technology

Evidence-Based Medicineon HemopeusionHealth Economics ResearchFindings on HA130 Disposable

Hemopeusion Caridge

National Health Economics Research Findingson HA130 Disposable Hemopeusion Caridge

Jointly released by the National Health Development

Research Center and the National Center forEvaluation of Medicines and Health Technologies

Shanghai Health Economics Research Findings on

HA130 Disposable Hemopeusion CaridgeReleased by the Shanghai HealthDevelopment Research CenterBased on multicenter RCT research andreal-world cost data

ife

expectancy

extended

years(a

increase

compared

dialysis

alone)Comprehensivemulti-dimensionalevaluationProven economicbenets

ains

additional

life

yea

Comprehensivemulti-dimensional

evaluation

Demonstratedcost-eectiveness

Evidence-Based Medicineon HemopeusionSOP & Shanghai Expe Consensus

Standard Operating Procedures for

Blood Purication (2021 Edition)

Issued by the National Health Commission and

edited by Academician Chen XiangmeiClearly dene the indications for hemopeusion

Shanghai Expe Consensus on the ClinicalApplication of Hemopeusion in MHD PatientsProvide clinical guidance for the standardizedand rational application of hemopeusion

in MHD patients



ectively

relieve

pruritus

sym

ptoms2-hour combinedtherapy with HA resinhemopeusioncaridge andhemodialyzerOnce per week

Standardized andrational treatmentprotocolsTreatmentfrequencyPatient selectioncriteriaPrecautions

Treatment

modalities

Improve clearance rates of serumiPTH and β2-microglobulin inmaintenance hemodialysis (MHD)patients

Evidence-Based Medicineon HemopeusionMulticenter RCT ResearchFindings on HA130 Disposable

Hemopeusion Caridge

National Multicenter RCT Research Findings onHA130 Disposable Hemopeusion CaridgeInitiated by Academician Chen Xiangmei; involves 37

centers over 4 yearsSuppoed by the National 12th Five-Year Science andTechnology Suppo Program (dual research topics)

Shanghai Multicenter RCT Research Findings onHA130 Disposable Hemopeusion CaridgeInitiated by Professor Jiang Gengru;involves30 centers over 5 years

Targeting suival; large sample size;

long-term follow-up

Class A evidence

in evidence-based medicine

Signicant reliefof pruritus symptoms

Good safetyprole

High eciency intoxin removal

Class A evidence

in evidence-based medicine

Fewer cardiovascular

eventsReduced all-causeand cardiovascular

moality

Improvedquality of life

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HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

In alignment with our goals of enhancing quality, reducing cost and improving eciency, we are accelerating the digital transformation of ourhemopeusion caridge production line. By focusing on digitalization and intelligent manufacturing, we aim to standardize, automate, informatizeand visualize our production processes, thus laying the foundation for developing new quality productive forces and building a highly automatedworkshop that embodies the distinctive strengths of Jafron.

To suppo our digital transformation strategy and strengthen managerial awareness and capabilities in this area, we panered with theGeneral Manager of Midea Cloud Technology Co.，Ltd, who led an intensive training course titled “Digital Operation Across the Full ValueChain”. This training targeted managers and key personnel in roles closely associated with digitalization.

Hemopeusion Caridge Manufacturing 4.0 initiative involves automated stages of hemopeusion caridge production, includingbreakthroughs in critical processes such as automated visual inspection, integrated ding and wrapping and improved cleaning cycles.We have advanced toward multi-process integration, enabling continuous ow production and sma logistics systems. We are alsodeveloping an integrated suite of digital management systems, including MES (Manufacturing Execution System), WMS (WarehouseManagement System), QMS (Quality Management System) and LIMS (Laborato Information Management System), to drive higheroperational eciency and realize true IT/OT convergence.By advancing across six strategic pathways — process optimization, equipment upgrades and renovation, digital system deployment,new workshop construction, sma logistics and management enhancement — and leveraging 20 core technologies, we aim tosignicantly improve productivity, reduce costs, enhance product quality, shoen lead times and eliminate major safety hazards, ulti-mately creating a sma, ecient, cost-eective, high-quality, compliant and responsive digital facto for hemopeusion caridges.

Digital and Intelligent Transformation

Case Study: Hemopeusion Caridge Manufacturing 4.0

Mission

ProcessOptimizationStable, scalable,ecient andlow-costoperations

Development offully automatedcontinuousproduction lines

End-to-enddigitalization

Deep integrationand applicationof advancedtechnologies

Transparent,real-time andautomated logisticsmanagement

Ecient, preciseand real-timemanagement

EquipmentUpgradesand Renovation

Digital SystemDeployment

New WorkshopConstruction

ManagementEnhancementSma Logistics

Sma Manufacturing PlantStable quality, optimal cost and exible delive

SixStrategicPathways

Case Study: Specialized Training on Digital Empowerment

Established in 2002, our Customer Seice Center is staed entirely by female professionals with medical backgrounds. Through ongoinginnovation and continuous improvement, we have professionalized and standardized our seice delive while also adding a human touch,thereby creating a signature seice brand built on care and trust.Upholding our seice philosophy of “Sincerity First, Customer Above All”, thecenter sees over 300,000 customer interactions annually, promoting our originalproducts across more than 6,000 hospitals nationwide and providing suppoto tens of thousands of healthcare professionals and patients. Our meticulousseice and long-term dedication help us earn widespread trust and recognitionfrom our customers. We are also pioneering innovative digital after-sales seiceplatforms based on role-specic needs, enabling 24/7 online suppo to fuherenhance the customer experience. Our team provides full-cycle seice — frompre-sales consultation and in-sale suppo to post-sales technical assistance —while also sharing cutting-edge academic insights and conducting extensiveproduct seice research to gather feedback and drive continuous product andseice enhancement. Beyond technical suppo, we actively engage in patientcare initiatives tailored to the needs of dialysis patients. Programs such as “Care5152

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Customer-Centric Seice with Dual-Engine Excellence

We place customer needs at the hea of evething we do and remain committed to earning customer trust and reputation with top-notchseice. With a dual-engine approach that integrates both product quality and seice excellence, we continue to optimize seice workows,elevate the customer experience and ensure that eve client receives professional and attentive care. To continuously improve our seicequality and customer satisfaction, we have established comprehensive protocols including theCustomer Seice Management Policy,the

Customer Feedback Response Control Proceduresand the After-Sales Seice Control Procedures. These policies standardize our after-salesand customer feedback response processes, with our dedicated Customer Seice Depament responsible for handling inquiries, conductingsatisfaction sueys and managing customer relations — continually strengthening our seice management framework.

Customer seice management

Professional Seice Team

The Company has established policies such as theCustomer Feedback Monitoring and Management Policyto improve customer satisfaction.Through comprehensive and sample sueys, as well as feedback collection via WeChat ocial accounts, the Customer Seice Depamentmonitors and measures hospital client satisfaction with product usage. This process tracks customer satisfaction trends and builds strongcustomer relationships driven by client needs, aiming to enhance overall satisfaction and elevate corporate credibility.

for Patients with Kidney Diseases” and “Gathering of Patients with Kidney Diseases” oer psychological and social suppo to patients, creating awarmer and more compassionate care environment.Thanks to its outstanding achievements in customer care and corporate social responsibility, our Customer Seice Center has been recognizedwith numerous national honors, including: National March 8th Red-Banner Collective, National Women’s Meritorious Collective, National Women’sCivilized Post and Guangdong Provincial Women’s Civilized Post.

The overall customer satisfaction is calculated by averaging the following satisfaction measures—Adsorbent catego: 99.06%,Equipment catego: 98.96%, Tubing catego: 100%, Plasma Separator/Dialyzer catego: 97.18%, Bandage catego: 100%.

Satisfaction Management

The Company places great impoance on customer complaints and has established policiesincluding the Complaint Control Procedure, Customer Complaint Reception and HandlingManagement Policy, and Hemopeusion Product Complaint Control Procedure. The QualityManagement Depament organizes dedicated teams to investigate complaints, examiningaspects such as product quality, relevance of the issue to the product, compliance inoperational and logistics processes, etc. Based on the investigation, root causes are analyzed,the relationship to product quality or seice is evaluated, and complaints are addressedpromptly. Customer feedback and suggestions are processed in a timely manner and adoptedas appropriate to fuher optimize the complaint resolution process.

Customer Complaint Handling

KPIs

Number of suey paicipants

Valid customer satisfactionquestionnaires collected

99.04%

Overall customer satisfaction

100%

KPIs

Complaint resolution rate

Note:

5354

Data Security and Privacy ProtectionRobust data security and privacy protection form the foundation of trust and long-term cooperation between the Company and its businesspaners, clients and employees. The Company strictly complies with theCybersecurity Law of the People’s Republic of China, Data Security Lawof the People’s Republic of China, Personal Information Protection Law of the People's Republic of Chinaand other applicable laws and regulations,continuously enhancing its information security and privacy protection framework to ensure the safety of data. During this period, there were noincidents of data breaches or customer privacy violations.

The Company has deployed the Data Loss Prevention (DLP) system to protect data security. Documents are categorized and classied basedon condentiality levels, with high-level condential data under strict management. The IT Center enforces real-time encption, tightly controlsdocument expo, upload and decption permissions, and audits le transmissions and asset labeling. Sensitive documents are transmitted solelyvia corporate email under the high-risk access control protocol. And permission frequency is regularly reviewed; if it falls below threshold, accessis revoked immediately to prevent data leaks, tampering, destruction or unauthorized access involving suppliers, customers or employees.The Company conducts regular information security risk assessments for its critical business systems, organizing personnel to addresscybersecurity vulnerabilities and high-risk issues. We simulate data recove following system outages caused by external attacks and peormsdisaster recove drills to enhance our emergency response capabilities for unforeseen incidents. Both internal and external information securitypractices are audited monthly and annually. Audit results are documented, and any non-compliance is promptly rectied through formalcorrective action processes.The Company is committed to securing its data assets. It has enacted theGeneral Information Security Policyand established an InformationSecurity Depament to oversee and maintain the ISMS (Information Security Management System). A tailored security framework is in placeto ensure relevance, proper authorization, approvals and control in condentiality management, preventing leaks of technical and commercialsecrets and safeguarding core competitiveness. The Aduoduo Chronic Disease Management System and Yuebao Insurance System have passedTier-3 protection ceications, while the Yuebao ocial website system has passed Tier-2 protection ceication.

Information Security Management

ISMS Process Model

Security Requirementsand Expectations

Eective InformationSecurity Management

Plan

Check

DoAct

ContinuousCycleof Development,MaintenanceandImprovement

Information Security Protection

The Company has developed a capability training program for pa-time Information Suppo Specialists at branch oces. Through regulartraining sessions and assessments, we aim to equip ocers with a comprehensive understanding of related regulato expectations, hardwareoperation and basic maintenance, thereby enhancing their professional competencies in information security.

Information Security Training

KPIs

Number of data security/customerprivacy protection training sessions

100%Data security/customer privacy

protection training coverage

18 hours

Average training hours completedper employee on datasecurity/customer privacy protection

5556

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

The Company strictly complies with all applicable laws andregulations to safeguard customer data assets and upholdprivacy. For systems such as Visitor Management, Aduoduoand Yuebao Insurance that collect external user data, weclearly disclose data collection practices and obtain userconsent, while providing accessible privacy guidance. Weare committed to respecting and protecting the personaland customer privacy rights of all users of our seices. Witha strong sense of diligence and prudence, we manage allcollected personal information responsibly to prevent datasecurity incidents and ensure the condentiality and integrityof customer data.

Customer Privacy Protection

Stable Supply and Security AssuranceThe Company actively carries out procurement activities in accordance with a fully standardized supplier lifecycle management system,encompassing supplier onboarding, evaluation and exit procedures. We continue to strengthen our supply chain management frameworkand foster long-term, collaborative relationships with suppliers to mitigate procurement risks and ensure the continuity of production andoperations.

We’ve established internal policies such as theProcurement Control Proceduresand Supplier Management Policyto ensure centralizedand standardized procurement management through our Procurement and Supply Center. Based on the needs of business expansion, wereorganized procurement operations in 2023 into multiple specialized procurement units, each independently handling the procurement ofmaterials and seices to meet growing operational needs.To suppo the upskilling of procurement personnel in both operational and managerial dimensions, the Procurement and Supply Center hasimplemented a multi-dimensional training program, combining mentorship from senior managers with frontline training and best-practicesharing among high-peorming team members. Formal assessments and incentive mechanisms are used to foster motivation and continuousimprovement, contributing to the development of a “professional and ecient” procurement team and a “learning-oriented” workforce.

Supply Chain Security Governance

Supply Chain Security Strategy

Risks

Risk TypeDescriptionResponses

ImpactPeriod

PotentialFinancial

Impact

Supply chaindisruption

Sho-term

Reduced revenueand prot; increasedprocurement costsSupplier capacity limitations or delivedelays may result in production setbacksand invento shoages, aectingproduction schedules.

Medium-term

Sho- andmedium-term

Increased production

costs

Increasedprocurement costs

Insucient quality control by suppliersmay lead to product defects, impactingcompany reputation and customer sat-isfaction and even leading to potentialrecalls and legal consequences.Raw material shoages, regional pricingdierences and market uctuations maydrive up material costs.

1. Build a strategic resee of key

raw material suppliers.

2. Deploy R&D sta to provide

technical suppo and oversight;regularly review and monitorsuppliers’ quality standards toensure product compliance.

3. Oer training to suppliers to

help them enhance productionprocesses and quality controls.

1. Adjust procurement strategies

dynamically based on markettrends.

2. Improve procurement timing

strategies to optimize cost control.Price volatility

Oppounity TypeDescription

Impact

Period

Potential FinancialImpactOppounity

Digital supply chaintransformation

Medium-term

Reducedoperating costsDigital transformation enables the Company to build a more agile andresilient supply chain. Through intelligent forecasting and optimization,the Company can better anticipate market and supplier needs, swiftlyadjust production and logistics strategies, and eectively managedisruptions to maintain operational continuity.Sho-term (within 1 year): Impact is rapid and tempora, typically lasting less than one year.Medium-term (1–5 years): Impact is sustained and has signicant inuence over a period of one to ve years.

Long-term (over 5 years): Impact is far-reaching and long-lasting, generally extending beyond ve years.

We are committed to building an intelligent supply chain management system. By adopting an integrated approach with the “Jafron Tao”self-developed purchase platform, OA and SAP, we bring together supplier management, procurement demand planning, invento control andsettlement into a unied system. This allows for real-time monitoring of invento levels, data monitoring and analytics, signicantly improvingthe responsiveness, exibility and resilience of our supply chain. This digital transformation standardizes our procurement processes, enablingus to deliver more stable and ecient seices to our customers while suppoing the high-quality development of our indust value chain.

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HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) RepoHEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Intelligent Supply Chain Management System

The Company has established a comprehensive supplier management system to oversee the entire lifecycle of supplier onboarding, evaluationand exit processes, enhancing the resilience of the Company’s supply chain. We’ve developed theSupplier Qualication Review OperatingProcedureswhich clearly outline the review and evaluation process for new suppliers to ensure that suppliers and the materials they providemeet the Company’s quality standards and business requirements. Additionally, an eective dynamic evaluation system has been implemented,providing periodic and ad-hoc assessments of suppliers' overall strength, including qualications, integrity, product quality, compliance withcontractual obligations and seice levels. This ensures timely, comprehensive and accurate evaluations of suppliers.

The Company conducts qualication audits for suppliers of raw and auxilia materials, including reviewing their quality management systemdocumentation, self-inspection repos, valid inspection repos issued by accredited testing agencies and safety assessment materials.Suppliers are classied into three categories: A, B and C. For suppliers of special materials, detailed operational procedures are established tomanage material quality audits and on-site assessments.

Enhancing Supplier Management

The Company has established theProcurement Integrity Management Policywhich clearly denes the procurement management scope,procedures and requirements. All procurement sta are required to peorm their duties in strict compliance with applicable laws andregulations. Prior to staing work, procurement personnel must sign theProcurement Personnel Integrity Commitment, agreeing to acceptcontinuous supeision and inspection by the Company. This ensures fair, transparent and ethical procurement practices, maintains theintegrity of procurement operations, protects the interests of the Company and fosters strong, lawful relationships with suppliers.

Transparent Procurement

Digital Empowerment

Supplier Onboarding

Once a supplier has passed the qualication audit or technical capabilityassessment, the Quality Depament, in collaboration with relevantdepaments, organizes sample testing, on-site audits, machine testing,peormance evaluations and biological assessments. These evaluationsare documented in the Supplier Technical Capability Assessment Form.

Supplier Quality Evaluation

Suppliers that fail to improve after being warned for poor raw material quality or other unsatisfacto behaviors will be disqualied and nolonger be considered for future cooperation. Suppliers providing counteeit or substandard products that cause severe impacts or majorquality incidents will be blacklisted and permanently banned from cooperation.

Supplier Exit

Before any procurement, the Purchasing Depament is required to verify whether the supplier meets the qualication audit requirementsand conrm that the supplier's status and ceication are up to date and valid. Procurement may only proceed after qualication assessmentor ceication renewal is completed. The Quality Management Depament is responsible for preparing the Supplier Audit Plan each year. Ifany major quality issues were found with an A-class supplier in the previous year, a site audit must be conducted that year. For B- and C-classsuppliers, the Quality Management Depament will determine whether a site audit is necessa based on the supplier’s product quality.

Annual Supplier Audits

AA-class suppliers: Score ≥ 80ApprovedB、C

B- and C-class suppliers: Score ≥ 60Approved

In December 2024, the Company conducted training for procurement personnel on relevant laws and regulations, including criminal lawapplicable to corruption and bribe, as well as case studies to raise awareness of procurement integrity and strengthen the managementof ethical procurement practices.

Case Study:

5960

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Robust Governance:

Strengthening the

Foundation forSustainable Growth

Corporate Governance: Driving Steady ProgressEnhancing Internal Control and Risk ManagementProtecting Shareholder Interests: Prioritizing Investor Rights

Business Ethics and Corporate Values

SDGs

At Jafron, we remain true to our founding aspiration, continuously strengthening organizationdevelopment, improving governance system and structure, and enhancing governance eciency.We also place the utmost impoance on compliance governance, steadfastly adhering to legalrequirements, standardizing business practices, upholding the highest ethical standards andsafeguarding shareholder interests, thereby laying a solid foundation for the long-term success

of the Company.

The Shareholders’ Meeting is the Company’s highest decision-making body. The Company has developed and implemented theRules ofProcedure for Shareholders’ Meetingsin accordance with theRules for the General Meeting of Shareholders of Listed Companiesand theCompany’s Aicles of Association. These rules ensure that shareholders’ meetings are convened and held according to the prescribedprocedures, guaranteeing that all shareholders, especially minority shareholders, can exercise their voting rights fairly and eectively.Shareholders’ meetings employ a blend of in-person and online voting mechanisms, providing convenient access for investors to paicipatein the voting process. When major issues that may aect minority investors’ interests are deliberated at a shareholders’ meeting, votes arecounted separately for minority investors, and a law rm is engaged to issue a legal opinion so as to eectively safeguard the paicipationand supeision rights of all shareholders.

Shareholders’ Meeting

6162

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Corporate Governance: Driving Steady ProgressIn line with theCompany Law of the People’ Republic of China,theSecurities Law of the People’s Republic of China,theCode of CorporateGovernance for Listed Companiesand other relevant laws and regulations, the Company has formulated and continually revises internal systemssuch as theAicles of Associationto improve the internal governance framework, eectively protect the rights and interests of shareholdersand other stakeholders and enhance corporate governance.The Company has established a governance structure composed of the Shareholders’ Meeting, the Board of Directors and its specializedcommittees, and the Board of Supeisors. This structure ensures that the roles and responsibilities of each governance body are clearly denedand promotes eective collaboration and checks and balances, with rigorous, transparent, democratic and fair decision-making procedures andrules of procedure, ensuring the Company’s standardized operations and high-quality development.

The Board of Directors is accountable to the Shareholders’ Meeting and is responsible for reviewing major business matters and making decisionsor submitting them for shareholder approval. The Company has established theRules of Procedure for the Board of Directorsand theWorkRules of Independent Directors, clearly dening the scope of the Board’s authority and establishing well-designed operational mechanisms ofthe Board, including the procedures for convening and conducting Board meetings, deliberation rules, voting methods and decision-making.Independent directors are tasked with supeising potential major conicts of interest between the Company and its controlling shareholders,actual controllers, directors and senior executives, ensuring that Board decisions align with the overall interests of the Company and protectingthe legitimate rights of minority shareholders. The Board also provides professional and objective recommendations on business operations toimprove the quality of decision-making.The Board of Directors consists of

members, including

independent directors and

female directors. The members bring diverse expeiseand extensive experience in elds such as biomedical sciences, nance and banking, enabling the Board to provide strong suppo for theCompany’s decisions from a broader perspective. This ensures that company decisions are scientically sound and forward-looking.The Board is suppoed by four specialized committees: the Audit Committee, the Nomination Committee, the Remuneration and EvaluationCommittee, and the Strategy Committee. Independent directors comprise more than half of each committee, which enhances the Board’sspecialization and ability to peorm duties and ensures that Board decisions are both scientically sound and procedurally compliant. Duringthe repoing period, the Company convened a total of

specialized committee meetings, with

resolutions deliberated and adopted.

Board of Directors

The Board of Supeisors sees as the Company’s highest supeiso body and is accountable to the Shareholders’ Meeting. All supeisorspeorm their duties in accordance with theAicles of Associationand theRules of Procedure for the Board of Supeisors. They supeise theCompany’s signicant matters, nancial position and the legal and compliant peormance of duties by directors and senior executives in aneo to enhance corporate governance. The Board of Supeisors is composed ofthreemembers, includingone employee representative.

Board of Supeisors

KPIs

during which 15proposals were deliberatedand adopted

during which 35proposals were deliberated

and adoptedThe Company convened

a total of 11 Boardof Directors meetingsThe Company conveneda total of 3shareholders’ meetings

during which 23 proposalswere deliberatedand adoptedThe Company conveneda total of 6 Board ofSupeisors meetings

6364

The Company has developed a suite of policies such as theInternal Audit Management PolicyandWork RulesofInternal Auditin compliancewith theAudit Law of the People’s Republic of Chinaand China’s Internal Auditing Standardsto regulate internal audit practices and strengtheninternal controls. We’ve established the Legal and Audit Supeision Center to peorm the internal audit function, develop annual audit plans,implement internal management of audits and execute audit projects, ensuring reduced operational risks through robust internal controlmanagement. During the repoing period, the Company’s Legal and Audit Supeision Center exercised duty of care and diligence to issue

internal audit repos. There were no signicant or material internal control deciencies, and the Company maintained eective internal controlsin all material aspects in accordance with the enterprise internal control standards and relevant regulations.

Internal Audit

The Company is fully committed to managing risks in a proactive manner, ensuring compliance with all relevant laws and regulations. We applya risk-oriented principle to dene key business units, operations, matters and high-risk areas for internal control evaluation. In addition, we’vedeveloped policies such as thePublic Opinion Management Policy, establishing a fast emergency response mechanism to promptly and properlyaddress situations that may aect the Company’s stock price, commercial reputation and normal business operations, thereby protecting thelegitimate interests of investors.

Risk Management

The Company has established theRelated Pay Transaction Management Policyand theSpecial Policy for Preventing Fund Embezzlement byRelated Pay Transactions

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

The Company reviews the annual compensation plans for directors, supeisors and senior ocers each year in accordance with itsAiclesof Associationand the Rules of Procedure for the Remuneration and Evaluation Committee under the Board of Directors. The remunerationfor external directors, independent directors and external supeisors consists mainly of xed allowances, while the remuneration for internaldirectors, internal supeisors and senior ocers is based on the Company’s earnings, peormance of their duties and completion of theirannual peormance goals. For senior ocers, the Company has established a peormance-based compensation and incentive system thatlinks remuneration to Company peormance. This approach incorporates a system of rewards and penalties based on peormance evaluation,eectively reducing management costs, improving management eciency and motivating senior ocers to increase their productivity. Thisenhances the cohesion within the organization and provides a strong foundation for its long-term and stable development.

Director, Supeisor and Senior Ocer Compensation Management

Enhancing Internal Control and Risk Management

the Controlling Shareholders and Their Related Paiesto protect the rights and interests of investors, especially minority shareholders. Thesepolicies clearly dene the rules for identication of related paies and the procedures and disclosure requirements for related pay transactionsand regulate the ow of funds between the Company, its controlling shareholders, actual controllers and related paies, ensuring compliance andtransparency in such transactions. During the decision-making process for related pay transactions, the Company strictly follows the necessadeliberation procedures, ensuring that related directors and shareholders abstain from voting on related pay transactions, and that related paytransaction information is disclosed in a timely and accurate manner.

The Company remains committed to tax compliance, including compliance with theLaw of the People's Republic of China on the Administrationof Tax Collection,theEnterprise Income Tax Law of the People’s Republic of Chinaand theIndividual Income Tax Law of the People’s Republicof Chinaand other tax laws. We continuously optimize our tax management system and enforce strict management practices to ensure thecontinuity and eectiveness of our tax operations and minimize tax risks. In 2024, the Company paid a total of RMB

million in various taxesin full compliance with the law.

Tax Management

The Company places great emphasis on operational compliance, continuously improving its compliance framework and actively guarding againstand mitigating various compliance risks. In Februa 2024, the Company formally launched its compliance system development, appointing aChief Compliance Ocer to oversee the system development and operation. The Company is committed to increasing compliance inputs andintegrating compliance management into business operations, thus ensuring legal compliance in all business activities and achieving the goal of“strengthening internal controls, preventing risks and promoting compliance”. This establishes a comprehensive and all-encompassing compliancerisk prevention mechanism throughout the organization.

Operational compliance

KPIs

Number of legaltraining sessions

Training topics:“Building a Culture of Integrity”

“Accurate and Standardized Use of Contract Templates”“E?cient Contract Review Techniques”“Compliance Promotion: Risk Analysis and Mitigation”

Compliance Training

Compliance Pledge

public, we’ve issued dividends foreight consecutive years, with cumulative cash dividends totaling RMB

2.951

billion, which is 2.09 times thecombined total raised through IPO and subsequent renancing. This reects a cumulative payout ratio exceeding60%.In September 2024,we completed the cancellation of RMB 500 million in repurchased shares from our rst share buyback program (initiated in 2021). Including thiscancellation, total shareholder returns through dividends and share repurchases reached RMB

3.451

billion since our 2016 IPO, resulting in acumulative payout ratio of more than70% .To fuher strengthen market condence and uphold shareholder value, we completed a second share repurchase program in April 2024, repur-chasing nearly RMB 500 million woh of shares. Additionally, in 2022, our controlling shareholder or actual controller, Mr. Dong Fan, increasedhis personal stake in the Company by RMB 200 million to drive the Company’s sustainable, steady and sound development, demonstrating hisstrong condence in our long-term growth and intrinsic value.In April 2025, the Board of Directors approved theResolution on 2024 Prot Distribution Plan, proposing a cash dividend of RMB

(tax-inclusive)for eve 10 shares held, based on the total share capital registered on the distribution record date (excluding shares held in the repurchaseaccount, without distributing bonus shares or capitalizing resees.

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HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

At Jafron, we highly value investor relations. In line with theGuidelines for Investor Relations Management of Listed Companies,theRulesGoverning the Listing of Stocks on the ChinNext Market of Shenzhen Stock Exchangeand other relevant laws and regulations, we haveestablished the Investor Relations Management Policyto regulate investor relations management, with the ultimate goal of fostering stableand enduring relationships with investors.We engage actively with investors through a variety of communication channels, including the corporate website, irm.cninfo.com.cn, investorhotlines and earnings briengs. We carefully consider investor feedback and respond promptly and accurately to their inquiries, therebyprotecting investors’ right to know and building investor trust and alignment.

Investor Relations Management

In accordance with theCompany Law of the People’s Republic of China, theSecurities Law of the People’s Republic of China, theMeasures for theAdministration of Information Disclosure by Listed Companiesand other applicable laws and regulations, we have established policies such as theInformation Disclosure Management Policy, Material Information Internal Repoing ProceduresandAccountability Mechanism for Material Errorsin Annual Reposto ensure rigorous governance of disclosure content, timing and channels. We are committed to timely, accurate, complete,clear and comprehensible disclosures that are free of misstatements, misleading information or material omissions.

Information Disclosure

Protecting Shareholder Interests: Prioritizing Investor Rights

KPIs

During the repoing period

We are committed to delivering reasonable returns to our shareholders through a scientically sound prot distribution mechanism. Our dividendpolicy is designed to ensure transparency, protect the rights of minority shareholders to information and paicipation and their legitimate interests.We formulated theThree-Year (2023–2025) Shareholder Returns Planto ensure the consistency and stability of prot distribution. Since going

Dividend Policy and Shareholder Returns

The Company is rmly committed to safeguarding the legitimate rights and interests of its creditors. We diligently fulll all contractual obligationsin strict accordance with the terms agreed upon, fostering positive cooperative relationships with our creditors. During the private placement ofconveible bonds, the Company adhered to all relevant regulato requirements by fully disclosing bond investment risks. We engaged accreditedthird-pay rating agencies to conduct credit assessments of both the Company and the bonds, enabling creditors to make informed decisionsbased on a clear understanding of our operational peormance and bond risks. These measures are designed to protect the lawful rights andinterests of creditors.

Protection of Creditor Rights

202120222023Cash Dividend Track Record over the Past Three Years

Cash Dividend per Share(RMB)Total Cash Dividends Distributed (RMB 10,000)

0.90

71,698.54

59.91

0.67

53,523.97

60.17

0.40

30,978.65

70.97

Payout Ratio (as % of Net Prot Attributable to Shareholders ofthe Listed Company in Consolidated Financial Statements (%)the Company released127 interim repos

ranking among the top

25% of indust peers fordisclosure frequency

We published4 periodic reposin 2024

voluntarily released6 additional announcements,demonstrating our commitmentto information transparency.

6768

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Jafron strictly complies with applicable laws and regulations, including theInterim Provisions on the Prohibition of Commercial Bribe, andmaintains a zero-tolerance stance toward commercial bribe and corruption. We are committed to promoting a culture of integrity, ethicalconduct, diligence and accountability throughout the organization. To reinforce our anti-bribe & anti-corruption framework, we issueIntegrity Notications to all bidding entities and require all procurement personnel to sign the Commitment to Integrity. These initiativesensure that procurement practices remain fair, transparent and ethical.During the repoing period, the Company achieved a100%compliance rate in signing ethics-related declarations. There were no repoedincidents involving material violations of ethical business conduct, no cases of corruption, and no litigation related to bribe.

Anti-bribe & Anti-corruption

The Company adheres to theAnti-Unfair Competition Law of the People’s Republic of Chinaand other relevant laws and regulations. We arecommitted to creating and maintaining a well-regulated market environment that promotes fair competition. Internally, we continuously enhanceour governance systems to prevent unfair competition. We prohibit unreasonable restrictions on paners and avoid discriminato treatmentof customers in order to foster a healthy and competitive marketplace. To fuher suppo fair competition, we require our suppliers to sign aNon-Disclosure Agreement, arming their commitment to safeguarding commercial and technological secrets shared during cooperation. Duringthe repoing period, the Company recorded no incidents of unfair competition or other violations of relevant laws or regulations.

Anti-unfair Competition

Business Ethics and Corporate Values

The Company actively promotes responsible marketing practices in accordance with theAdveising Law of the People’s Republic of Chinaandother related laws and regulations. We ensure that all marketing activities are lawful, truthful and transparent, with a clear focus on protectingconsumer interests and maintaining market order. In 2024, the Company conducted

training sessions on responsible marketing. These sessionsequipped employees with the knowledge and techniques to accurately and objectively communicate product and seice information, minimizingthe risk of consumer misunderstanding due to misleading messaging.No violations of marketing regulations occurred during the repoing period.

Responsible Marketing

The Company has established theWhistleblowing Policyfor the purpose of strengthening internal oversight and preventing malpractice ormisconduct. This policy provides multiple secure repoing channels—such as a dedicated phone line and email address—through whichemployees and stakeholders can repo suspected misconduct or regulato violations. Repos are reviewed and investigated by the Legaland Audit Supeision Center. Veried cases are handled in accordance with applicable laws, regulations and the Company’s internal policies.We are also committed to protecting the identity and safety of whistleblowers. All personnel involved in case handling are required to maintainstrict condence regarding the identity of the whistleblower. Individuals who provide substantiated repos may be eligible for rewards.

Complaint and Whistleblower Mechanisms

Case Study: Responsible Marketing Training

Whistleblower Repoing Channels

Email:

shenjijiancha@jafron.comHotline:

0756-3619947

Jafron is committed to suppoing China’s carbon peak and carbon neutrality goals, fully embracingthe principles of green development. We focus on reducing carbon emissions and enhancing resourceeciency through technological innovation, management optimization and industrial upgrading. Inour operations, we prioritize the optimization of energy mix and the adoption of energy-saving andemission-reduction technologies, striving to transition our production processes to low-carbon and

sustainable practices.

6970

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Advancing Low-CarbonPractices and Promoting

Green Healthcare

Response to Climate ChangeEnvironmental Compliance and Low-Carbon Initiatives

Circular Economy and Green Development

SDGs

We recognize the impoance of climate change and are dedicated to advancing climate-related governance. The Board of Directors leads theeos to address climate change, with the responsibility for reviewing and approving ESG repos, including matters related to climate change.Our subsidiaries and relevant functional depaments work in close collaboration to implement energy-saving and emission-reduction initiatives,minimizing carbon emissions and other pollutants in our operations, with the ultimate goal of mitigating climate change impacts.

Governance

We actively engage in climate risk analysis and response, identifying both physical and transition climate risks specic to our business context.We assess their potential impact periods and nancial implications, taking targeted actions based on the nature of each identied risk.

Strategy

7172

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Response to Climate ChangeClimate change has become a critical global issue with far-reaching implications for both the economy and society. We actively monitor evolvingpolicies at home and abroad, integrating low-carbon principles throughout our operations to proactively address the challenges and capitalize onthe oppounities brought by climate change.

Physical Risk

Risk TypeDescriptionResponses

ImpactPeriod

PotentialFinancialImpact

Acute riskSho-term

Increasedoperating costsand decreasedrevenueExtreme weather events such as typhoons,oods, eahquakes and blizzards cancause signicant damage to equipmentand power outages, which may in turndisrupt production processes.

Chronic risk

Medium- and

long-term

Increased

operating

costs and

decreased

revenue

Rising global temperatures may lead toincreased energy consumption for coolingand refrigeration systems, thus drivingup energy costs and potentially causingequipment damage. Temperature uctua-tions may aect product manufacturingand storage, necessitating enhancedtemperature control systems that add tooperating costs.

Establish emergency response systemsfor extreme weather; pre-deploy protec-tive equipment and emergency suppliesto strengthen emergency responsecapabilities.Install energy storage solutions to man-age power outages, develop emergencypower outage plans, and conduct.Strengthen infrastructure constructionto improve resilience against naturaldisasters.Develop energy-saving managementpolicies and integrate advanced energymanagement systems to improve energyeciency.Deploy photovoltaic energy systemsin production facilities to optimize theenergy mix.

Reputational

risk

Sho- andmedium-term

Reputationandrevenue lossStakeholders’ growing interests ongreen development could damage theCompany’s reputation if we fail to meettheir expectations.

Prioritize ESG management and practices,ensuring timely disclosure of climate-re-lated initiatives and peormance.Build a strong green brand image, reduc-ing carbon emissions to meet stakeholderexpectations.

Market riskMedium-term

Reducedproductioncosts andrevenueShifting consumer preferences towardslow-carbon products, combined withpotential price increases for raw materialsdue to climate change, could impactproduction costs and revenues.

Invest in the development of low-carbon,environmentally-friendly products; adjustprocurement strategies dynamicallybased on market trends.

Transition RiskRisk TypeDescriptionResponses

ImpactPeriod

PotentialFinancial

Impact

Policy andregulato

risk

Sho- and

medium-term

Increasedcompliance

andoperating

costsAs climate change policies continue toevolve, failure to develop and implementstrategies aligned with these regulationsmay expose the Company to compliancerisks.Technologyrisk

Medium-term

Increasedproduction

costsand R&DinvestmentsAddressing climate change and reducingcarbon emissions may require new equip-ment, technology or process upgrades. Ifthese solutions fail to meet expectations,it could increase investment costs.

Monitor and analyze national and regionalclimate-related regulations to ensure theCompany remains compliant with thelatest environmental laws and regulations.Undeake energy eciency upgrades.Peorm thorough evaluations beforelaunching new projects or investing innew technologies.

Oppounity TypeDescription

Oppounity

Products and seices

Climate change has driven growing demand for low-carbon, environmentally responsible products.By developing eco-friendly medical products and enhancing product peormance, the Company iswell-positioned to respond to evolving market demands, boost brand image, strengthen its competitiveadvantage and expand revenue streams.Optimizing production processes and adopting high-eciency equipment or energy managementsystems can signicantly enhance resource utilization, lower operational costs, and reduce carbonemissions.Resource eciency

The Company manages climate-related risks and oppounities through a structured approach encompassing identication, assessment andmitigation.

Guided by the disclosure framework recommended by the Task Force on Climate-related Financial Disclosures(TCFD), Jafron identies the physical and transition risks as well as potential oppounities associated with climatechange. These are dened and described with reference to internal operations, indust dynamics and shifts indomestic and international policy landscapes.

Based on the assessment results, we develop and implement targeted actions to mitigate climate-related risks andcapitalize on related oppounities.

Management of Impacts, Risks and Oppounities

The Company operates in strict compliance with theEnvironmental Protection Law of the People’s Republic of Chinaand other applicable laws,regulations and indust standards. We have developed theEnvironmental Management Policy, suppoed by a dedicated environmentalmanagement system led by the EHS Depament. This system denes clear roles and responsibilities for environmental management, ensuresappropriate stang based on operational needs and enforces strict environmental controls over the generation and discharge of pollutantsand waste from our business operations to ensure full compliance with environmental laws and regulations. We remain committed to cleanerproduction practices and strict adherence to environmental protection laws, energy conseation and emissions reduction requirements. Westrive for continuous improvement of our environmental peormance by promoting resource eciency and pollution control. These eoscontribute to a cleaner, comfoable and healthy workplace.During the repoing period, the Company did not incur any administrative penalties for violations of environmental laws or regulations, nor werethere any material adverse environmental impacts.To strengthen the environmental awareness and capabilities of EHS personnel at all levels, the Company developed and implemented the2024Capability Enhancement Program for EHS Personnel. This program included thematic training sessions, knowledge-sharing workshops, hands-onoperational practice and corresponding evaluations—helping to ensure our EHS personnel can eectively fulll their responsibilities and suppothe Company’s compliance objectives and EHS eos.

Environmental Management System

To strengthen climate governance, the Company has adopted a set of key metrics to assess and manage climate-related risks and oppounities.Greenhouse gas (GHG) emissions is a core metric in this evaluation. GHG emissions are monitored regularly to track progress toward climate goalsand assess the eectiveness of response measures in suppo of the Company’s transition towards low-carbon, eco-friendly development andChina’s carbon peak and carbon neutrality goals.

Repoed GHG emissions include Scope 1 (direct) and Scope 2 (indirect) emissions, which are calculated in accordance with the GHGEmissions Accounting and Repoing Guidelines for Industrial Enterprises (Other Sectors).

Metrics and Targets

7374

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Identication

Identied risks and oppounities are systematically evaluated in terms of contributing factors, potential nancialimpact and anticipated impact period.Assessment

Mitigation

Metric

Total GHG Emissions202419,309.47tCO e

tCO e

Direct GHG Emissions (Scope 1)20248,644.93Indirect GHG Emissions (Scope 2)202410,664.54

Note 1

Scope 1 emissions cover natural gas consumption; Scope 2 emissions include purchased electricity (sourced from China SouthernPower Grid). Natural gas emissions are calculated based on a conversion factor of 1 m? of natural gas equivalent to 1.20 kg of standardcoal by energy content.Note 2

Environmental Compliance and Low-Carbon Initiatives

Case Study: Environmental Training SessionsKPIs

Total investment inenvironmental protectionRMB

person-timeshours

85,410,200Environmentaltraining sessions

Total training hours

Environmentaltraining paicipants

Environmental Risk ManagementPollution and Waste Management

7576

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

The Company conducts environmental impact assessments for all new, renovation and expansion projects in strict accordance with therequirements of the Environmental Impact Assessment Law of the People’s Republic of China, the Regulations on the Environmental ProtectionManagement of Construction Projects and other applicable laws and regulations. Each project is required to submit an EIA repo or form forapproval by local ecological and environmental authorities and must complete pollutant discharge registration and environmental acceptanceas stipulated. During the repoing period, the Company successfully completed the environmental acceptance review for the Clean Room,R&D Laborato Building Expansion and Alcohol Recove Process Upgrade Project at the Zhuhai Jafron Science and Technology Park.

Environmental Impact Assessment

Jafron has developed a robust emergency response framework in line with the Emergency Response Law of the People’s Republic of China andthe National Environmental Emergency Response Plan. This includes the preparation and ling of the following documents: Contingency Planfor Environmental Emergencies, Environmental Emergency Risk Evaluation Repo and Environmental Risk Assessment Repo. All documentshave undergone expe review and have been approved by the competent environmental authorities. Production units have established atiered early warning and emergency response system tailored to their operational context. Real-time monitoring of pollutant dischargesensures swift inteention in the event of anomalies. In addition, the Company has developed a Contingency Plan for Environmental PollutionIncidents to enhance emergency response and rescue capabilities. These measures aim to minimize the impact of environmental incidents,protect employee safety and presee the surrounding ecological environment. The Company conducts regular emergency drills, documentsthe results, analyzes deciencies, and continuously updates and improves its response plans based on lessons learned.

Emergency Response Management

The Company manages wastewater discharge in accordance with theWater Pollutant Discharge Limits of Guangdong Province(DB44/26-2001).We implement eective collection measures and strictly enforce the separation of rainwater and wastewater to prevent soil contamination.Wastewater is carefully controlled at the source: waste solvents, experimental waste liquids, toxic and hazardous wastewater and wastewatercontaining heavy metals are separately collected and disposed of, with no direct discharge into the industrial wastewater system. Thewastewater treatment team maintains detailed records, including treatment operations and maintenance logs, and ensures that discharge isregularly monitored to meet all relevant standards.

Wastewater Management

The Company has established a comprehensive and structured hazard identication and remediation system that spans production andoperation, safety management, equipment maintenance and environmental protection. The EHS Depament conducts routine inspectionsof production areas, operational processes and management systems to timely identify environmental hazards and areas for improvement.Identied issues are addressed promptly, promoting a culture of ongoing, structured and data-driven risk management. During the repoingperiod, the Company voluntarily conductedve environmental risk assessments and submitted the assessment results through theEnvironmental Emergency Regulato System of Guangdong Province. All assessments conrmed the absence of any environmental hazards.

Hazard Identication and Remediation

The Company strictly adheres to theLaw of the People's Republic of China on Prevention and Control of Atmospheric Pollution,theLaw of thePeople's Republic of China on Prevention and Control of Water Pollutionand theLaw of the People's Republic of China on the Prevention andControl of Environmental Pollution Caused by Solid Wastes, as well as related implementation standards. We focus on enhancing pollutioncontrol and implementing scientic waste management to ensure that all pollution prevention and control activities are conducted in fullcompliance with applicable laws and regulations. Through routine monitoring, semi-annual inspections and engagement with third-pay testingagencies or by entrusting qualied third paies for waste disposal, we ensure that all wastewater, air emissions and solid waste producedduring our operations are disposed of in line with both national and local legal requirements and environmental protection standards. During therepoing period, our wastewater and air emissions treatment systems remained fully operational, and no emissions exceeded regulato limits.

Treatment Capacity for 2024Treatment ProcessIron Carbon + Acid-Base Neutralization + Anaerobic + Aerobic + Precipitation + MBR Treatment141,383tons

2024MetricTotal Wastewater Discharges

Chemical OxygenAmmonia NitrogenTotal Phosphorus

141,383tons

1.829tons

0.011tons

0.004tons

Wastewater Pollutant Discharge by Type (selected)

Wastewater Discharge Data (selected)

7778

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

The Company’s air emissions primarily arise from production activities and boiler operations. We implement ecient collection measures andappropriate treatment processes in line with national and local air quality standards. Our air emissions treatment facilities management teamoversees the operation and maintenance of air emissions treatment facilities, ensuring regular inspection and monitoring and adherence toenvironmental discharge standards.

Air Emissions Management

The Company strictly complies with the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution Causedby Solid Wastes to ensure the proper classication, safe storage and lawful disposal of both general and hazardous waste. We are subject tooversight by local environmental authorities and our EHS Depament. Recyclable general industrial solid waste is collected and sold centrally,while non-recyclable industrial waste is stored in designated areas with appropriate labeling and classication. Qualied third-pay disposalorganizations are engaged for waste management, and hazardous waste disposal is subject to an annual plan, with prior approval obtained viathe hazardous waste management platform for each transfer.

Waste Management

We strictly adhere to noise emission limits and implement proper measures to manage and reduce noise pollution from our operations in linewith the Law of the People's Republic of China on the Prevention and Control of Noise Pollution and the Emission Standard for IndustrialEnterprises Noise at Bounda (GB12348-2008). For operations with signicant noise levels, we continuously improve equipment, processesand technical solutions to reduce noise. Additionally, we monitor new equipment prior to operation, ensuring noise reduction measures are inplace to prevent excessive emissions.

Noise Management

Treatment ProcessAir Emissions Treatment Facilities

Process Exhaust Treatment FacilitySewage Works Odor Treatment Facility

Alkaline Spray + Water Spray + Activated CarbonAlkaline Spray + UV Decomposition + Activated Carbon

2024Metric

Total Air Emissions

Nitrogen OxidesSulfur DioxideVolatile Organic Compounds

Paiculates

Air Emissions by Type (selected)

Air Emissions (selected)

53,336,500m?

0.17

tons

3.78tons

0.19tons

7.85

tons

Waste CategoriesGeneral Solid Waste

Hazardous Waste

Industrial Solid Waste (Non-recyclable)

Industrial Solid Waste (Recyclable), Construction Waste, Kitchen WasteWaste Activated Carbon, Waste Solvents, Laborato Waste

2024Metric

Quantity of General Waste GeneratedQuantity of General Waste DisposedQuantity of Hazardous Waste GeneratedQuantity of Hazardous Waste Disposed

Waste Recycling RateWaste Disposal Compliance Rate

36.83%

100%

Waste Data

Waste Organic SolventsWaste Activated CarbonLaborato Waste

Waste Empty Drums

Hazardous Waste Discharge by Type

121.82

tons

121.82

tons

373.08

tons

661.64

tons

106.538

tons

13.019

tons

0.667

tons

1.6

tons

7980

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Circular Economy and Green Development

Energy Eciency Retrotting Projects

The Company’s energy consumption during production and operations primarily consists of purchased electricity from the grid and externallysourced natural gas. We strictly adhere to theEnergy Conseation Law of the People’s Republic of Chinaand other applicable laws andregulations, and are committed to the principle of rational and ecient energy use. To that end, we have established theEnergy ManagementPolicythat sets clear guidance for all depaments on standardized energy use practices. In addition, we’ve established a dedicated EnergyConseation Oce staed with ceied energy managers, suppoed by a technical adviso group and an energy-saving task force. Thisoce centrally manages the Company’s energy usage, conducts annual assessments of energy-saving initiatives and carries out regularinspections for ineciencies or waste. Accountability mechanisms are in place to ensure violations are investigated and rectied, reinforcing aculture of continuous energy eciency improvement.

In 2024, Jafron completed the installation of rooftop photovoltaicsystems at three manufacturing facilities in the South and NohCampuses of Jafron Science and Technology Park and the JindingIndustrial Park in Zhuhai National High-tech Industrial DevelopmentZone, Guangdong Province. The total installed capacity reached1,579.05 kW. The project was completed and connected to the gridin March 2024 and is expected to generate approximately 1.723million kWh annually, delivering an estimated RMB 350,000 in electricity cost savings each year.

To optimize our energy mix and reduce reliance on fossil fuels, the Company continues to invest in on-site solar power generation projects.In parallel, we implement a range of energy eciency upgrades and have rolled out a centralized energy management system to enhancemonitoring and control of electricity usage. These measures have led to measurable improvements in energy eciency, reduced energyconsumption and lower operating costs.

Energy Management

KPIs

Natural Gas ConsumptionTotal Purchased Electricity3,998,230

Total Energy Consumption?Photovoltaic Power Generation?

m?27,564,089.96kWh

1,725,780kWh8,397.60tceThe solar power project was commissioned in March 2024; data reects the period from March through December 2024.Note 1

Total energy consumption includes natural gas, purchased electricity and solar-generated electricity. Natural gas emissions arecalculated based on a conversion factor of 1 m? of natural gas equivalent to 1.20 kg of standard coal by energy content.Note 2

Case Study: Solar Power Generation Project

Control of AverageElectricity Taris

for Chillers

Leveraged night-time cooling storage and dynamic seasonal scheduling(specically, adjusting peak/o-peak discharge and replenishment cycles)to reduce average electricity taris for chillers

Savings in 2024RMB50,000

(1) Implemented dynamic management of anaerobic pools to prevent

acidication and reduce caustic soda use;

(2) Scheduled batch wastewater treatment, exhaust fan and aeration

system operations based on capacity, prioritizing o-peak electricity use to minimize electricity charges;

(3) Explored the optimal balance between steam consumption and system stability to reduce steam usage

Savings in 2024RMB640,000

Streamlined production scheduling and enabled continuous materialfeeding to reduce electricity and natural gas consumption

WastewaterTreatment CostControl ofSewage Works

Lean Production

Optimization

Savings in 2024RMB500,000

8182

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Sma Energy Management System at Jinding Industrial Park

Consumption Monitoring

Multi-dimensionalEnergy Use Statistics

Sub-meteringand Monitoring

SEnergy UsageQueries

3D Visual EnergyMapping

EnergyBilling & Metering

Energy Monitoring

Lighting Energy-savingControl SystemStreetlight Control SystemSma Indoor Lighting System

Air Conditioning Energy-saving Control System

Central Air Conditioning Group Control SystemSplit-type Air Conditioners Group Control SystemHeating Energy-savingControl SystemPower DistributionMonitoring SystemRadiator Control SystemUndeloor Heating Control SystemEnergy Diagnostics

Energy AnalyticsEnergy Audits

Consumption Supeision

Energy ConsumptionData Disclosure

Abnormal UsageAles

EciencyBenchmarking

ConsumptionRankings

Peormance IndicatorMonitoring

Loss Analysis

Energy Usage Data Acquisition

Sub-metering by Catego

Water

HVAC LoadHeating

Electricity

Energy Network MeteringNetworked metering with standard protocols (e.g., OPC)Compatibility with SCADA and other systemsInternet data integration (e.g., weather)

Used-based meteringTenant-levelFunctional zone-level

Water Resource ManagementThe Company primarily sources water for its operations from municipal supplies. Adhering to the principles of “conseation, scienticmanagement and recycling”, we manage water usage from the source, closely monitor consumption throughout the process and strive formaximum eciency in water resource utilization. We proactively introduce advanced water-saving technologies and equipment, upgradingwater-intensive production processes through closed-loop systems, wastewater treatment and water reuse infrastructure. These measuresenhance water recycling rates, reduce dependence on freshwater withdrawals and lower overall water consumption during production.In December 2023, the Company was ocially ceied as a Municipal-level Water-Saving Enterprise by Zhuhai Municipal Water Authority andZhuhai Municipal Bureau of Indust and Information Technology.

KPIs

Total Water Consumption753,795tons

Freshwater Withdrawal

705,038tons

Recycled and Reused Water48,757tons

Water Savings in 2024Water Conseation ProjectsBoiler Condensate Recove ProjectGreywater Reuse Project

13,091 tons9,188 tons

Condensate RecoveGreywater Reuse

8384

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Jafron is committed to fostering a low-carbon, environmentally friendly and ecient workplace. Green practices are integrated into all aspectsof day-to-day operations. We actively promote paperless workows by encouraging digital documentation and reducing paper usage so as toreduce resource use. We also strive to optimize the management of oce equipment and promote the use of energy-ecient oce equipment,including LED lighting, low-power printers and computers, helping to foster a green oce culture.

The Company’s production processes involve the use of key materials such as raw and auxilia substances as well as paper and plasticpackaging. We continuously rene material handling procedures, enforcing strict controls over storage, transpoation, requisition and usageof materials. A categorized storage and labeling system is in place, suppoed by documentation and invento control procedures to ensuretraceable and compliant material management across all stages. We have implemented a range of measures to boost material eciency,reduce packaging volume and minimize environmental impact.

Material UseGreen Oce

FSC Ceication of Packaging Caons

Material Eciency Initiatives

RecyclingLightweighting

Resin barrels used for raw material packaging are collected, cleaned by suppliers and reused for resin storage.

KPIs

Total Packaging Materials Used

tons8,432.32

Paper Packaging8,158.35tons

Plastic Packaging

273.97

tons

Packaging Material Recycling Rate

56.92%

Reused/Recycled Packaging Materials4,800tons

Without compromising protective peormance, we have switched from premium boxes to corrugated packaging,replaced foam linings with EPE (expanded polyethylene) and thermoformed trays, and reduced the wall thicknessof cylindrical container, which signicantly reduce paper material usage.

Guided by our core value of “shared success”, Jafron is committed to a people-rst approach,

striving to foster a workplace that is equal, inclusive and diverse. We rigorously safeguard

employee rights, invest in high-quality talent development systems, promote employeewell-being and actively fulll our corporate social responsibilities—all in pursuit of a better

future for our employees and society at large.

8586

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

People-OrientedDevelopment and

Social Harmony

Compliant Employment Practices and Fair OppounitiesEmpowering Employees with Wellbeing and Fulllment

Career Development and Talent Cultivation

Occupational Health and Safety FirstCompassion in Action, Advancing Public Welfare

SDGs

Diversity and Inclusion

8788

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Compliant Employment Practices and Fair OppounitiesThe Company upholds principles of fairness and transparency to build harmonious labor relations. Equal oppounities are provided in recruitment,compensation and career development. Our robust management system ensures a compliant and equitable work environment, where employees'legal rights and interests are fully protected.We’ve formulated various internal policies such as theRecruitment Management Policy, Labor Contract Administration Policy, Employee PositionTransfer Policyand Internship Management Regulationsin strict compliance with theLabor Law and Labor Contract Law of the People's Republicof China, theLabor Contract Law of the People’s Republic of Chinaand other relevant laws and regulations. These policies establish standardrecruitment and employment procedures and uphold the principles of fairness, impaiality and transparency in recruitment. We rmly oppose allforms of employment discrimination and the use of child labor.As of the end of the repoing period, the Company employed2,797 personnel, with a 100% labor contract signing rate.

Empowering Employees with Wellbeing and FulllmentBy focusing on enhancing our employees’ sense of achievement, wellbeing andsecurity, we are building a happiness-oriented organization—one that sees as both afullling place to work and a platform for personal and professional growth. Our eoshave earned us multiple honors, including: National Model Enterprise for HarmoniousLabor Relations, Pilot Enterprise for Employee Wellbeing in Guangdong Province,National Model Workers’ Home, Pilot Unit for Wellbeing-Oriented Enterprises in ZhuhaiCity, and Selected Pilot Unit for Enhancing Employee Quality of Life.

Each year, the Company recruits through multiple channels, including campus recruitment, social recruitment and internal referrals. We also oerjob oppounities to milita veterans and persons with disabilities, ensuring equal access and injecting fresh talent to suppo long-term businessgrowth.During the repoing period,1,248 new employees joined the Company.

We champion diversity, equity and inclusion as core values of ourcorporate culture. We are committed to creating a workplace thatrespects individual dierences and ensures equal oppounityregardless of ethnicity, race, gender or religious belief. Eveemployee is treated with dignity and fairness.

Number of Employees by Gender

Male1,643

Under 30years old

30-40 years old1,574

Below Bachelor’sDegree1,298

Bachelor’sDegree1,251

Master'sDegree

DoctoralDegree

40-50 years old30235

50 (and above) years old

Female1,154

41.26%

58.74%

Number of Employees by AgeNumber of Employees by Education

10.80%

31.68%

1.25%

56.27%

8.65%

46.41%

0.21%

44.73%

Male

Female

Number of New Hires by GenderNumber of New Hires by Age

39.02%

41.75%

5.69%

0.24%

60.98%

52.32%

Under 30years old

30-40 years old

40-50 years old

50 (and above)

years old

KPIs

Number ofEmployeeswith Disabilities

Number ofEmployees fromEthnic Minorities

Percentage ofEmployees fromEthnic Minorities

8990

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

The Company places strong emphasis on safeguarding the legal rights of female employees. We uphold equal pay for equal work and oer afull range of leave benets such as maternity, nursing and marriage leave for female employees. We have also introduced dedicated facilitiesincluding lactation rooms, women’s rest lounges and “Care Rooms for Moms” to foster a more comfoable and suppoive working environmentfor women. To suppo women’s mental wellbeing, we regularly invite external expes to conduct counseling sessions, providing on-site suppoto help employees manage stress and maintain a healthy work-life balance.

Democratic GovernanceWe strongly value democratic governance and open communication with employees. Since establishing our labor union in 2003, we haveimplemented a series of democratic management systems, including:

Employee Paicipation Policy, Collective Bargaining Policy, UnionLeadership Open Oce Hours Policyand Labor Dispute Mediation Policy.Our labor union plays a pivotal role in protecting employees’ rights and fostering democratic engagement, guided by the "Three Represents"ideology. Through mechanisms such as the Employee Representative Assembly, collective bargaining and labor dispute resolution, we ensurethat employees have a voice in decisions that aect their interests. Matters concerning employee welfare are communicated transparently viathe internal OA system to safeguard employees’ right to know. To fuher enhance transparency, the Company has progressively establishedrobust information communication channels. We host regular employee discussion forums and sueys to gather feedback, and has installeda “President’s Suggestion Box” to encourage the submission of ideas and concerns. Constructive suggestions are reviewed and activelyimplemented. By fully leveraging the labor union’s role as a bridge, we proactively safeguard employees’ rights to information, oversight andpaicipation, fostering mutual growth and harmonious labor relations between the Company and its workforce. As of the end of the repoingperiod, 100% of our employees were registered union members.

Case Study: Care Rooms for Moms

KPIs

Female Representation

in Management

Employees Who TookParental Leave

30%

Employees Who TookMaternity Leave

Return-to-work RatePost-parental Leave

100%

Return-to-work RatePost-maternity Leave100%

The Company has established “Care Rooms for Moms” equipped with nursing supplies and designed for use by pregnant andbreastfeeding employees. During the repoing period, these facilities were recognized by Zhuhai City as an Outstanding Modelfor Workplace Amenities.

Case Study: Employee Discussion Forums

9192

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

We place the highest priority on employee health and wellbeing, striving to meet the diverse needs of our workforce. We provide comprehensivelogistical suppo across oce, dining, housing, recreation, and commuting seices—ensuring employees enjoy healthy, positive, and secureworking and living environments. In our oce spaces, we have created comfoable and relaxing zones including cafés, break rooms, nap lounges,and reading corners (“Employee Book House”) to help relieve stress. We promote a healthy eating culture with a variety of in-house restaurantsoering diverse cuisines—from Nohern and Sichuan-Hunan avors to Western meals—catering to the dieta preferences of employees fromdierent regions. We also provide on-site accommodation through the Jafron Apaments, built to hotel-grade standards, as pa of ouremployee housing benets. Additionally, we have developed multifunctional wellness venues featuring gyms, badminton cous, table tennisrooms, basketball cous, billiards lounges, and yoga studios. Corresponding employee clubs are formed around these facilities, with regularevents organized to encourage healthy lifestyles and team spirit. For eveday convenience, an on-campus supermarket operates with monthlyshopping subsidies for employees. To suppo commuting needs, we maintain a dedicated transpo team and have developed an internalcarpooling app to facilitate ridesharing for employees living across various city districts.Compensation and Incentive Programs

We have developed robust systems to ensure fair and peormance-based compensation, guided by ourCompensation Management Policyand

Peormance Evaluation Policy.These policies dene clear standards and processes for peormance reviews and compensation, ensuring fairnessand transparency across the organization.To attract, retain and motivate top talent, we benchmark employee compensation against leading indust standards and have implementeda long-term incentive mechanism. Since our IPO in 2016, we have launched eight equity incentive plans, beneting nearly 1,000 employees.Comprehensive Employee BenetsWe have established a diverse and comprehensive benets system designed to enhance employees’ happiness and sense of belonging. Infull compliance with legal requirements, the Company provides all employees with social insurance and housing fund contributions as wellas statuto leave. We also extend workplace inju and commercial accident insurance to interns and post-retirement contract employees.During the repoing period, we fuher revised ourAttendance and Leave Management Policyto strengthen time-o practices, safeguardrest and leave entitlements and eliminate the risk of forced labor.

KPIs

We have established transparent complaint mechanisms governed by formal policies such as the Employee Communication & Feedback Policyand the Resolution on Establishment of the Labor Union’s Legal Supeision Committee. These policies dene the roles, channels andresponsible paies for handling complaints. Employees can submit complaints through condential channels such as email or telephone. Allcases are handled promptly with strict condentiality and feedback is provided in a timely manner.We have also established a legally compliant Labor Dispute Mediation Committee and an early-warning system for labor risks. Additionally, wecollaborate with external legal seice providers to oer comprehensive legal consultation and suppo for our employees.

Employee Complaints Mechanism

In 2024, our social insurance coverage reached

100%

Workplace Amenities

Dining Facilities

DormitoriesSpos Complex

Yoga StudioGym

Break Room Cafés

9394

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Employee Activities

We believe in maintaining a healthy work-life balance and organize a range of recreational and celebrato events throughout the year, such asthe Jafron Festival, employee recognition ceremonies, family carnivals, year-end galas and club competitions. These activities not only provideoppounities for relaxation and socialization but also foster team cohesion, a strong sense of belonging and overall employee satisfaction.Since 2007, the Company has celebrated employees who have been with us for 10 years or more. In recognition of our successful restructuringand independent development, we designated the third Saturday of each July as the Jafron Festival—an employee holiday marked by festiveevents and cultural celebrations. Over the years, the Jafron Festival has become a key pa of our corporate culture.

Case Study: 18th Jafron Festival

Case Study: Club Competitions

On July 27, 2024, we held our 18th Jafron Festival under the theme “Chaing a Course Toward the Future” at the Zhuhai Workers’Cultural Palace. The celebration was streamed live across the Company’s subsidiaries, creating a shared experience. In gratitudefor their long-standing seice, employees with 5, 10, 15, 20 and 25 years of tenure were honored with special awards. A vibrantprogram of peormances drew rounds of enthusiastic applause from the audience.

Case Study: 2024 Family Carnival

Table Tennis Championship

Badminton Tournament

Basketball Match

9596

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Case Study: “United in Spirit, Reaching New Heights” Retreat

A joint initiative between the labor union and our main hemopeusion caridge manufacturing site brought 400 frontline employeesand managers together for a restorative retreat themed “United in Spirit, Reaching New Heights” focusing on team-building andemployee wellness.

On June 8, 2024, the closing ceremony of the 4th Zhuhai United Front Spos Games themed “Together as One – Jafron Cup” washeld at the Jinan University Zhuhai campus. Hosted by the United Front Work Depament of the CPC Zhuhai Municipal Committeeand co-organized by the Zhuhai Federation of Trade Unions and Jinan University, the event welcomed over 1,700 athletes from 33teams across the city. Jafron proudly paicipated as the only corporate representative team.

Case Study: “Together as One – Jafron Cup” at the 4th Zhuhai United Front Spos Games

Employee Care and SuppoWe are committed to fostering a harmonious, inclusive and suppoive workplace where employees can thrive both professionally and personally.Each year, we organize mental health seminars and oer on-site counseling seices to help employees manage stress and maintain emotionalwellbeing. The Company also suppos employees facing nancial hardship through a structured assistance program governed by theEmployeeHardship Relief Policy. This mechanism is regularly improved to provide timely and eective suppo for employees in need. During the repoingperiod, the labor union secured RMB 10,800 in medical mutual aid subsidies from Guangdong Province for two employees. One employeereceived RMB 3,000 per quaer in hardship assistance.

Promotion Management

The Company has established a comprehensive internal career development management mechanism. Employees are encouraged to choose acareer path that aligns with their strengths and professional orientation—whether in professional, technical or management tracks. By providingclear and scientic promotion pathways, the Company suppos employees in realizing personal growth while contributing to the Company’soverall value, fostering a harmonious and mutually benecial environment.

Career Development and Talent Cultivation

Chief ExpeProfessional Track

Career Pathway

ExpeBusiness ManageSenior Supeisor

SupeisorSpecialist

Senior ExecutiveManagerial TrackCareer PathwayDirectorManagerSection ChiefSupeisorSpecialist

Ceied TechnicianTechnical TrackCareer PathwaySenior EngineerAdvanced EngineerIntermediate EngineerAssistant Engineer

Technician

New Hire

9798

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

To better suppo the implementation of the Company’s strategic plans and help achieve business goals at all levels, while enhancing thepeormance of management personnel, the Company has introduced theJafron Management Track Learning and Evaluation OptimizationProgram. This program sets dierentiated assessment, incentive and feedback mechanisms for employees, aiming to identify and nuurepotential internal management talent at various levels and strengthen the talent pipeline.

To suppo employee development, the Company oers internal trainer-led courses and the Xuanxing 2.0 Learning Platform. This platformprovides diverse learning environments, comprehensive digital management and data visualization tools to promote knowledge transfer andtalent development within the organization, seing as a foundation for enterprise training and talent management.

KPIs

In 2024, 316 employees were transferredor applied for internal positions

accounting for 12.10% ofthe total workforce

Employee Training

Talent is the prima driving force of enterprise development. The Company places strong emphasis on talent cultivation and development byestablishing a comprehensive, multi-level training system. It provides specialized training across dierent functions—from frontline productionto R&D and management—suppoed by a well-established pool of instructors. The goal is to fully unlock employee potential, enhance overallcompetencies, and empower employees in their roles to advance the Company’s talent development strategy.

Jafron Training System OverviewRole-Based EmpowermentSuppo for Group Talent SupplyCorporate Culture Implementation

Competency Evaluation and Feedback

Training Management SystemTraining Resources System

TypeTraining TracksManagementTraining

ProfessionalTraining

ManagementTrainee Track

ManagementPromotion Track

On-the-JobCompetency TrackStandardProject Track

Marketing

IndustrialManufacturingTechnology

& R&D

ComprehensiveSupport

New Employee

TrainingSun?ower Program(Campus Recruitment)

Pre-con?rmationEmpowerment

System andPolicy TrainingO?ce SkillsProfessional EthicsExternal TrainingNew EmployeeTraining

GeneralTraining

PolicyManagement

RequirementsManagement

Implementation

Management

EvaluationManagement

TrainerResources

External TrainingResources

Course Content

Resources

LearningPlatformResources

E-learning Platform

New Employee TrainingProfessional Skills TrainingTalent Introduction Training

Xuanxing 2.0 Learning Platform

KPIs

Total Training InvestmentRMB

person-timesTotal Training Instances

Total Training Sessions

Employee Training Coverage

sessions3,540persons3,042 342,300

100%

Total Paicipants

61,448

99100

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

The Company actively conducts safety inspections and hazard identication, maintaining detailed ledgers for each facility’s operation,maintenance and updates. All functional depaments ensure closed-loop safety management, promptly addressing and correcting issuesto reduce potential safety risks. During the repoing period, the hazard rectication rate was100%.

Hazard Identication and Remediation

The Company places a strong emphasis on work safety and has established theEmergency Response Plan for Work Safety Accidents. Thisincludes a structured emergency response organization comprising an Emergency Command Center, Emergency Rescue Team, Communicationand Liaison Group, Security and Evacuation Team, Medical Aid Group and Logistics Suppo Team. Based on the type and severity of potentialsafety incidents, assessments of worker exposure, and analysis of potential site conditions, a three-tier emergency response mechanism hasbeen established to enhance preparedness and organizational response capability. Regular emergency drills are conducted to minimize theconsequences and impact of potential incidents. During the repoing period, the Company conducted

safety emergency drills.

To evaluate the practical implementation of emergency response protocols and assess the leadership, coordination and decision-makingcapabilities of key personnel during major incidents, Jafron’s EHS Depament conducted a comprehensive emergency drill at JafronIndustrial Park on December 27. The exercise aimed to enhance employees’ emergency response skills in re suppression and evacuation.

Emergency Response Plan

KPIs

Occupational Health and Safety FirstSafety Management System

The Company strictly complies with theWork Safety Law of the People's Republic of China,Law, theLaw of the People’s Republic of Chinaon Prevention and Control of Occupational Diseasesand other relevant laws and regulations. It has established systems such as theWorkSafety Accountability System, Work Safety Reward and Penalty Systemand Occupational Health Management Policyto standardize theentire process of occupational health and safety management. In line with the “dual responsibility for one position” and the principle of “thosewho oversee industries, businesses or production must also control work safety”, the Company has formed a Work Safety Committee and asubordinate EHS Depament to strengthen leadership in safety management. A sound occupational health and safety system has been putin place. The Company requires all relevant personnel to sign work safety responsibility statements and implements ve-tier dierentiatedsafety compliance awards for each unit. Safety peormance is included in the annual KPIs of unit heads and in monthly assessments for eachunit’s safety sta to ensure all management and employees take accountability for safety and meet safety targets.Throughout the repoing period, the Company experienced no major safety incidents.

Safety Risk ManagementThe Company has formulated policies such as theJafron Work Safety Information Repoing System, Jafron Hazard Identication andRectication Systemand Risk Classication and Control System for the Hemopeusion Caridge Manufacturing Plant. These policies suppo astandard, ongoing risk identication process. Methods such as LS and LEC are used to assess risk, analyze the likelihood and consequences ofaccidents, determine hazard levels, and produce tools such as risk heat maps, hazard identication and assessment tables, and risk classicationcontrol ledgers. Preventive measures are implemented with ongoing monitoring and adjustment to ensure that safety measures are eectivelyenforced and risks are minimized. To prevent occupational diseases, the Company and its subsidiaries conduct regular testing for occupationalhazards in the workplace, gaining timely insights to reduce the incidence of work-related illnesses.

Percentage of CeiedSpecial Operators100%

Investment in Work-RelatedInju Insurance972,500

Work InjuInsurance Coverage100%Wok SafetyInvestmentsRMBRMB4,336,500

Construction Safety ChecksPost-holiday Comprehensive Facto Safety Inspections

Case Study: Annual Comprehensive Emergency Drill at Jafron Industrial Park

101102

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Each year, the Company organizes various awareness and training activities to strengthen its safety culture. These include EHS knowledgecontests, expe-led risk inspections and workshops, a “Spot the Hazard” employee engagement campaign, reghting skills competitions,and customized safety initiatives by individual depaments. These eos aim to improve the safety skills of personnel, raise awareness, andbuild a robust culture of safety.

Safety Culture Development

KPIs

2024: Occupationalhazard detection rate100%

Compliance rate ofhazard monitoring100%

New occupational

disease cases

Safety Management Measures

The Company prioritizes employee health and has established the Personnel Health Management Policy. Each year, we oer free healthcheck-up plans tailored to dierent employee categories and maintain detailed health records, with one le per employee. This allows for earlydetection of potential health risks, timely medical inteention and professional health management advice. A health cabin equipped withself-seice diagnostic equipment has been installed to enhance employee health seices.The Company also conducts regular screening for metabolic diseases like cardiovascular conditions and high cholesterol, paicularly foremployees over 40, using diagnostic tools such as metabolic disorder analyzers and lipid prole tests. Employees showing early signs ofmetabolic abnormalities are oered preventative treatments using in-house blood purication products. Follow-up results show a signicantreduction in chronic disease risks. During the repoing period, 100% of employees received health check-ups.

Occupational Health Screenings

The Company has implemented several systems to ensure standardized and full-process management of outsourced engineering andconstruction projects, including the Outsourced Engineering Management Policy, Project Management Policy and Construction SafetyManagement Regulations. These documents specify the responsibilities of contractors and related paies. We conduct regular safety trainingand assessments for them to prevent incidents and ensure project safety and quality.

Stakeholder Safety Management

The Company strictly enforces regulations on occupational diseaseprevention to safeguard employees’ full right to know. We use clearwarning signs, distribute hazard notication letters and provide lists ofhazard-prone positions and personnel to inform workers aboutpotential risks such as noise, high temperatures, UV radiation and dustexposure. Employees are required to undergo occupational healthtraining and to properly use and maintain personal protectiveequipment. This ensures employees are aware of occupational hazardsand are equipped to protect their health proactively.

Occupational Health Protection

Fireghting Skills CompetitionCompany-wide Safety Knowledge Contest

Emergency First Aid Training by Invited Medical ExpesHands-on First Aid Skills Workshops

Honors and Awards

103104

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

KPIs

Compassion in Action, Advancing Public WelfareSocial Welfare Initiatives

Jafron remains steadfast in its commitment to social responsibility, extendingwarmth and suppo to vulnerable groups through diverse initiatives ineducation, medical assistance, povey alleviation and disaster relief. Throughthese eos, it contributes to global health advancements and sustainablesocial development. During the repoing period, the Company was honoredas an Outstanding Case of Corporate Social Responsibility among ChinesePrivate Enterprises for its innovative approach to charitable models driven bycompassion, and received accolades such as the “Red Cross Society of ChinaDedication Medal” and “Outstanding Contribution to Charitable Giving Award”.These recognitions reect broad societal appreciation for the Company’s long-standing dedication to social good.

During the repoing period, the Company provided material donations to disaster-aected regions such as Henan and Meizhou, deliveringpractical aid to local residents. It also made nancial donations to education development foundations at Sun Yat-sen University and NanjingUniversity to suppo educational advancement. Additionally, initiatives like the “One-Meter Dream Space” program and employee paicipationin volunta blood donation activities demonstrate the Company’s ongoing commitment to giving back to society through concrete action.

In 2024, the Company contributedto public welfare and charitable programs.

RMB38,302,200

“Red Cross Society of China

Dedication Medal”“Outstanding Contribution to Charitable Giving Award”

To help build a child-friendly city in Zhuhai and embrace the concept of "seeing the world from a one-meter perspective"， the Companylaunched the Jafron·Zhuhai Happy Home – “My One-Meter Dream Space” public welfare program. The program aims to foster a nuuringenvironment for children, paicularly those from single-parent or underprivileged families, to suppo their educational and personalgrowth.

Case Study: “Jafron” Sets Sail — Women’s Federation Suppos the ‘One-Meter Dream Space’ Program

On September 20, Jafron headquaers located in Zhuhai National High-Tech Industrial Development Zone hosted a volunta blooddonation event. A total of 131 employees donated 43,950 milliliters of blood, which will be used for medical rescue eos across Zhuhaiand is estimated to meet the city’s clinical blood needs for two days. This initiative underscores Jafron’s strong sense of corporate socialresponsibility and its commitment to lifesaving causes.

Case Study: Volunta Blood Donation

105106

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Safeguarding Health

During the repoing period, leveraging its internal resources, Jafron actively contributed to the medical and healthcare sector throughdonations to medical foundations, equipment donations and targeted aid, helping advance the healthcare sector and improve access toaordable healthcare for more individuals.

Rural RevitalizationIn alignment with China’s new-era rural revitalization strategy, Jafron is taking concrete actions to fulll its commitment to suppoing therevitalization of rural communities. By proactively contributing to the consolidation of povey alleviation achievements and the comprehensiveadvancement of rural development, the Company is helping to build a stronger, more inclusive society.

On June 1, 2024, during the “Children’s Day Care & Love Pairing Initiative” hosted by the Zhuhai Women’s Federation, Jafron donatedRMB 200,000 to the Federation’s charitable foundation. The funds suppo the “Lighting the Stars: Love Makes Us Not Alone” project,which provides families with children on the autism spectrum with nancial aid, professional guidance, rehabilitation subsidies, andpsychological suppo.

Case Study: RMB 200,000 Donation to Suppo Children with Autism

On September 13, Jafron donated medical supplies valued at RMB 1 million to Yuanling County, Huaihua City. The donation includedtop-quality home-made equipment such as the DX-10 Blood Purication Machine and JF-800A Hemopeusion Machine, intended foruse in critical care and emergency detoxication. This eo suppos the county in improving its healthcare capabilities and providingbetter health security for its residents.

Case Study: Donation of RMB 1 Million to Suppo Medical Development in Yuanling County, Huaihua City

In 2024, Zhuhai City launched the “6·30 Rural Revitalization Event” under the theme “Consolidating Povey Alleviation Achievements,Advancing Rural Revitalization”. Actively responding to the government's call, Jafron pledged RMB 10 million during the event,demonstrating its rm dedication to the rural revitalization cause. This signicant contribution suppos targeted assistance eos andregional cooperation, fuher reinforcing the long-term impact of povey alleviation work.

Case Study: “6·30” Rural Revitalization EventAs a socially responsible listed company, Jafron has consistently adhered to its philanthropic mission for years, courageously embracingits duties and actively engaging in public welfare endeavors. From 2022 to 2024, the Company donated RMB 1 million to suppo uremiapatients in Huanggang City, including RMB 333,000 in 2024 alone, beneting over 4,000 local patients.

Case Study: RMB 333,000 Donation to Suppo 4,000 Uremia Patients in Huanggang City

107108

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Economic

Governance

Summa of KPIs

KPI

Unit

2024

Operating revenueNet prot attributable to shareholders of the parent company

Total assetsBasic earnings per shareTax payment

Number of legal training sessionsCompliance rate in signing ethics-related declarationsRepoed bribe or corruption incidentsNumber of the management paicipating in anti-bribe

and anti-corruption training sessionsTotal duration of anti-bribe and anti-corruption training

delivered to the managementNumber of employees paicipating in anti-bribe

and anti-corruption training sessionsTotal duration of anti-bribe and anti-corruption

training delivered to employees

RMB 100 millionRMB 100 millionRMB 100 millionyuan/shareRMB 100 million

Sessions%CasesPersonsHoursPersonsHours

26.77

8.20

53.83

1.02

4.70

2,336

Environmental

KPIUnit2024

Total GHG emissions?Direct GHG emissions (Scope 1)?Indirect GHG emissions (Scope 2)?Natural gas consumptionTotal purchased electricityPhotovoltaic power generation?Total energy consumption?

RMB 10,000

tCO2etCO2e10,000 m?

kWhkWhtce

19,309.478,644.93 10,664.54

399.823

27,564,089.961,725,7808,397.60

Response to Climate Change

Environmental Compliance

Note 1Note 2Note 3

MetricUnit2024

Total investment in environmental protection

Environmental training sessionsEnvironmental training paicipants

Total training hours

RMB 10,000CasesRMB 10,000SessionsPerson-timesHours

8,541.02

The solar power project was commissioned in March 2024; data reects the period from March through December 2024.Repoed GHG emissions include Scope 1 (direct) and Scope 2 (indirect) emissions, which are calculated in accordance with theGHGEmissions Accounting and Repoing Guidelines for Industrial Enterprises (Other Sectors). Note 2: Scope 1 emissions cover natural gasconsumption; Scope 2 emissions include purchased electricity (sourced from China Southern Power Grid). Natural gas emissions arecalculated based on a conversion factor of 1 m? of natural gas equivalent to 1.20 kg of standard coal by energy content.Total energy consumption includes natural gas, purchased electricity and solar-generated electricity. Natural gas emissions arecalculated based on a conversion factor of 1 m? of natural gas equivalent to 1.20 kg of standard coal by energy content.

Amounts of major administrative penalties imposed bycompetent ecological and environmental authorities andother relevant depaments for environmental violations

Major administrative penalties imposed by competentecological and environmental authorities and otherrelevant depaments for environmental violations

109110

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

KPIUnit2024Air emissionsNitrogen Oxides (NOX)

Sulfur DioxideVolatile Organic Compounds (VOC)Paiculate Matter (PM)Wastewater DischargesChemical Oxygen Demand (COD)Ammonia Nitrogen (NH3-N)Total Phosphorus (P)

m?tonstonstonstonstonstonstonstons

5,333.65

7.85

0.19

3.78

0.17

141,383

1.829

0.011

0.004

KPIUnit2024

tons

%tonstonstonstons

%tonsWaste activated carbon (HW49)

Waste organic solvent (HW49)Waste empty drums (HW49)

Sludge

tonstonstonstons

13.02

0.67

1.6

373.08

Quantity of general waste generatedRecycling rate of general wasteQuantity of general waste disposedQuantity of hazardous waste generatedQuantity of hazardous waste disposed

Total waste recycledWaste recycling rateWaste disposal compliance rateWaste liquids (HW06)

661.64

43.61

373.08

121.82

288.56

36.83

106.54

Pollutant Discharge

Waste Management

KPI

Unit

2024

tonstonstons

tonstonstonstons%

Total water consumptionFreshwater withdrawalRecycled and reused water

Total packaging materials usedPaper packagingPlastic packagingReused/recycled packaging materialsPackaging material recycling rate

753,795705,03848,757

8,432.328,158.35

273.97

4,800

56.92

KPIUnit202220232024

24,009.32

8.97

17.38

RMB 10,000%Persons%PatentsPatentsPatentsPatentsPatentsPatentsPatents///

25,390.82

10.21

20.08

24,537.87

12.79

22.59

R&D investmentsR&D spending as a percentage of total revenue

Total R&D team sizeR&D personnel as a percentage of total workforce

Total patent applicationsPatents granted (valid)Granted invention patentsGranted utility model patentsGranted design patentsTotal trademarksPublished papersNumber of Specialized and Sophisticated Enterprisethat Produces Novel and Unique ProductsNumber of National High-Tech EnterpriseNumber of National Enterprise Technology Center

Water Resources Utilization

Material Use

Innovation-Driven DevelopmentSocial

111112

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

KPIUnit202220232024Product pass rateFrequency of internal quality auditsThird-pay inspectionsProduct recall volumeIncluding: product recalls associated with

safety and health concernsAmount of loss resulting from major product-or seice-related safety or quality incidents

Quality training paicipants

Total quality training hoursTotal quality training sessionsNumber of suey paicipantsCustomers paicipating in sueys as a percentage

of total customer baseValid customer satisfaction questionnaires collected

Overall customer satisfaction?Complaint resolution rateNote 1

Product Safety and Seice Quality

KPIUnit202220232024

Total number of suppliersIncidents involving major supply chain risk and implications

Suppliers

Cases

Supply Chain Security

Includes both moneta and in-kind donations, with in-kind donations measured at fair value.Note 1

KPI

Unit

2022

2023

2024

Incidents involving breaches of customer dataSubstantiated complaints concerning breaches of customer

privacy and losses of customer dataTotal number of conrmed incidents involving leakage,

theft or loss of customer dataNumber of data security/customer privacy protection

training sessionsData security/customer privacy protection training coverage

Average training hours completed per employee

on data security/customer privacy protection

Public welfare investments?

RMB 10,000CasesCasesSessions%Hours

RMB 10,000

1,480.35

2,613.96

3,830.22

Data Security and Privacy Protection

Social Contributions

%AuditsInspectionsPcs.Pcs.RMB 10,000Person-timesHoursSessionsPersons%Copies%%

100%

///

0.71

98.93%

100%

///

0.62

98.99%

100%

4,95324,672

0.65

99.04%

113114

HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

KPI

Including: number of employees by gender

Including: number of employees by age

Including: number of employees by education

Including: number of employees by geographical region

Including: number of new hires by age

Including: number of new hires by gender

Unit202220232024Labor contract signing rateNumber of tempora employeesNumber of pa-time employeesTotal number of employeesNumber of employees with disabilitiesNumber of employees from ethnic minoritiesPercentage of employees from ethnic minorities

Female

MaleUnder 30 years old30-40 years old40-50 years old50 (and above) years oldBelow Bachelor’s Degree

Bachelor’s DegreeMaster's DegreeDoctoral DegreeMainland ChinaHong Kong, Macau, Taiwan

OverseasNumber of new hires

Under 30 years old

30-40 years old40-50 years old50 (and above) years old

FemaleMale

%PersonsPersonsPersonsPersonsPersons

%PersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersons

PersonsPersonsPersonsPersons

PersonsPersons

100%

3,003

1%1,2161,787

1,829

1,4691,322

3,000

1,350

100%

2,797

4%1,1541,643

1,574

1,2981,251

2,794

1,248

100%

2,408

1,418

1,384

1,0631,140

2,406

Labor Rights and Interests

KPIUnit202220232024

Total investment in employee training

Total training sessions

Total paicipantsTotal training instancesTotal training hoursAverage hours of training per employee per year

Employee training coverage

RMB 10,000SessionsPersonsPerson-timesHoursHours/person%

14.60

1,2293,29427,47378,726.6

23.9

100%

34.23

3,5403,04261,44892,872.26

30.53

100%

34.45

2,0262,64326,56275,933.39

28.73

100%

Including: number of new hires by geographical regionMainland China

Hong Kong, Macau, Taiwan

OverseasFemale representation in managementEmployees who took maternity leaveReturn-to-work rate post-maternity leaveEmployees who took parental leaveReturn-to-work rate post-parental leaveSocial insurance coveragePercentage of employees underwent regular peormanceevaluations and career development assessments

Labor union membership rateEmployee engagement scoreEmployee paicipation rate in engagement suey

Number of employee depauresTotal employee turnover?

PersonsPersonsPersons%Persons%Persons%%%%5-point scale%Persons%

1,349

39%

100%/

4.07

72.15%

1,222

28.9%

1,245

30.0%

100%100%

4.03

77.21%

23.50%

34%

100%

3.94

68.64%

26.80%

Employee training and development

Total employee turnover = (Annual total depaures) / (Annual total depaures + Total number of employees at year-end)Note 1

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HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Safety training coverageSafety risk mitigation training coveragePercentage of ceied special operatorsInvestment in work-related inju insuranceWork inju insurance coverageEmployee health check-up coverageRate of occupational disease hazard detectionCompliance rate for occupational disease hazard monitoringNumber of new cases of new occupational diseases

%%%RMB 10,000%%%%Cases

//100%

50.28

100%100%100%100%

//100%

62.62

100%100%100%100%

100%100%100%

97.25

100%100%100%100%

KPIUnit202220232024Total safety incidentsWork-related fatalitiesTotal number of work-related injuriesLost days due to work injuHazard inspection rectication rateNumber of emergency drills conducted

Wok safety investments?Investment in safety training?Number of work safety training sessions

Total training instancesTotal training hours

CasesPersonsPersonsWorkdays%SessionsRMB 10,000RMB 10,000SessionsPerson-timesHours

//100%

11,43312,413

//100%

11,58113,042

100%

433.65

6.6

12,77913,430

Occupational Health and Safety

Response to Climate ChangePollutant DischargeWaste ManagementEcosystem and Biodiversity PreseationEnvironmental Compliance

Energy useWater Resources UtilizationCircular EconomyRural RevitalizationSocial ContributionsInnovation-Driven DevelopmentEthics in science and technologySupply Chain Security

Advancing Low-Carbon Practices and PromotingGreen Healthcare - Response to climate changeAdvancing Low-Carbon Practices and Promoting Green Healthcare -Environmental Compliance and Low-Carbon InitiativesAdvancing Low-Carbon Practices and Promoting Green Healthcare -

Environmental Compliance and Low-Carbon InitiativesAdvancing Low-Carbon Practices and Promoting Green Healthcare -Environmental Compliance and Low-Carbon Initiatives

Not InvolvedAdvancing Low-Carbon Practices and Promoting Green Healthcare -

Circular Economy and Green DevelopmentAdvancing Low-Carbon Practices and Promoting Green Healthcare -

Circular Economy and Green DevelopmentPeople-Oriented Development and Social Harmony -Compassion in Action, Advancing Public WelfarePeople-Oriented Development and Social Harmony -

Compassion in Action, Advancing Public WelfareCrafting Excellence to Propel Indust Development Together -

Sma Innovation: Key to Technology-Driven GrowthCrafting Excellence to Propel Indust Development Together -

Stable Supply and Security Assurance

Index of MetricsDisclosure RequirementsReference Section

Product and Seice Safety and Quality

Data Security and Privacy Protection

Equal Treatment of SMEsNot Applicable

Employees

Crafting Excellence to Propel Indust Development Together -

Data Security and Privacy ProtectionCrafting Excellence to Propel Indust Development Together -

Excellence in Quality: Our Foundation for TrustCrafting Excellence to Propel Indust Development Together -Customer-Centric Seice with Dual-Engine ExcellencePeople-Oriented Development and Social Harmony - Compliant

Employment Practices and Fair OppounitiesPeople-Oriented Development and Social Harmony -Empowering Employees with Wellbeing and FulllmentPeople-Oriented Development and Social Harmony -Career Development and Talent CultivationPeople-Oriented Development and Social Harmony -

Occupational Health and Safety FirstDue diligenceStakeholder EngagementAnti-bribe & anti-corruptionAnti-unfair Competition

Crafting Excellence to Propel Indust Development TogetherSustainability Governance - Stakeholder EngagementRobust Governance: Strengthening the Foundation for Sustainable

Growth - Business Ethics and Corporate ValuesRobust Governance: Strengthening the Foundation for Sustainable

Growth - Business Ethics and Corporate Values Wok safety investments and investments in safety training are estimated gures.Note 1

Guidelines No. 17 of Shenzhen Stock Exchange for Self-Regulation of Listed Companies – Sustainability Repo (Trial)

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HEALTH TECHNOLOGY FOR A BETTER WORLD

Environmental, Social and Governance (ESG) Repo

Feedback

0756-3619693ir@jafron.com98 Keji 6th Road, Zhuhai National High-tech Industrial Development Zone,Zhuhai City, Guangdong, China

Feedback channel

1.How would you rate this year’s ESG repo overall?

□ Excellent □ Good □ Average □ Below Average □ Poor

2.How would you rate this repo’s accuracy, clarity and completeness?

□ Excellent □ Good □ Average □ Below Average □ Poor

3.How would you evaluate the readability of this repo?

□ Excellent □ Good □ Average □ Below Average □ Poor

4.Does the repo adequately reect the Company’s signicant impacts on the economy, society and the

environment?

□ Excellent □ Good □ Average □ Below Average □ Poor

5.How would you assess this repo’s logical reasoning, content organization and layout design?

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6.Which topics in this year’s ESG repo most captured your attention?

7.What additional information would you like to see in future ESG repos?

8.Do you have any fuher comments or suggestions regarding our ESG repo or sustainability initiatives

and practices?

Thank you for taking the time to read the Environmental, Social and Governance (ESG) Repo 2024 of Jafron Biomedical Co., Ltd. We sincerelyvalue your feedback and welcome any suggestions or insights you may have regarding our sustainability practices and ESG peormance. Yourinput plays a critical role in helping us continuously enhance our sustainability practices and peormance. To that end, we kindly invite you tocomplete the feedback form below and return it to us via one of the contact methods listed. We are grateful for your continued suppo in ourjourney toward sustainable development.

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□ Employee □ Customer □ Shareholder/Investor □ Supplier □ Government or Regulatory Agency

□ Academic or Research Institution □ Media/General Public

□ Other (please specify):__________________________

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健帆生物(300529)_公司公告_健帆生物：2024年度环境、社会及公司治理(ESG)报告(英文版)