CONTENTS

ESG assurance statementAbout us

Focus on 2025Message from the executive0408

1206

Focus on innovation developmentDeepening digital and intelligenttransformationPursuing excellence in product qualityIndustry cooperation and win-winUpholding transparent procurementCreating a harmonious workplaceBuilding harmonious communities

ESG performance highlights14Feature:synergistic development of the whole industry chain to create newquality productive forces in the traditional chinese medicine industry

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operationUpholding integrity and drivinginnovation to jointly safeguard aharmonious society

Responsibility caseStrengthening climate governanceImproving environmental managementEnvironmentally friendly operations

Adhering to the principles of greendevelopment, and jointly paintingan ecological home

Responsibility caseStrengthening the cornerstone ofcorporate governanceHonest and compliant businessoperationsParty's leadershipPromoting responsible operationAdhering to business ethics

Outlook for 2026Key performance tableIndex of indicatorsFeedbackAbout this report

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.ESG assurance statement?

0405

2025 SUSTAINABILITY AND ESG REPORT

ESG assurance statement

To: Stakeholders of China Resources Sanjiu Medical & Pharmaceutical Co., Ltd..China Quality Certi?cation Centre Co., Ltd.(CQC), commissioned by China Resources Sanjiu Medical & Pharmaceutical Co., Ltd. (hereinafterreferred to as CR Sanjiu), conducted the independent assurance of CR SANJIU 2025 SUSTAINABILITY AND ESG REPORT (hereinafter referredto as the ESG report).CR Sanjiu was responsible for collecting, summarizing, analyzing, and disclosing the information and data mentioned in the ESG report. CQCimplemented report veri?cation within the scope speci?ed in the agreement with CR Sanjiu. CR Sanjiu is the designated user of this statement.This statement was based on the assurance activities conducted on the ESG report prepared by CR Sanjiu with reference to the Guidelines forSocial Responsibility of Central Enterprises issued by the State-owned Assets Supervision and Administration Commission (SASAC), ShenzhenStock Exchange Self-Regulatory Guidelines No. 3 – Preparation of Sustainable Development Reports for Listed Companies, Shenzhen StockExchange Self-Regulatory Guidelines No. 17 – Sustainable Development Reports for Listed Companies (Trial Implementation), and withreference to the Global Reporting Initiative (GRI) Standards, and the CASS-ESG 6.0 Pharmaceutical Manufacturing Guidelines by the ChineseAcademy of Social Sciences. It also references the ESG Reporting Indicator System for Central State-Owned Enterprises' Listed Companies bySASAC. CR Sanjiu is responsible for the authenticity, accuracy, and completeness of the report content.

Statement on Independence and Veri?cation CapabilityChina Quality Certi?cation Centre Co., Ltd.(CQC) is a third-party certi?cation body with independent legal status, possessing professionalqualifications and experience in providing in this assurance process, and possesses the technical capabilities and industry-specificknowledge required to conduct ESG/ESG report assurance, in compliance with the requirements of AA1000 Assurance Standard v3 for anassurance provider. The assurance team is composed of experienced AA1000 Practicing Certified Sustainability Assurance Practitioners(PCSAP), CCAA (China Certi?cation and Accreditation Association) registered quality, environment, energy, occupational health and safety,compliance, anti-bribery and other management system auditors and APSCA (Association of Professional Social Compliance Auditors)registered auditors.CQC ensured that there were no conflicts of interest with CR Sanjiu and its stakeholders during the assurance process of this report. Allinformation in the ESG report was provided by CR Sanjiu. CQC and the personnel conducting this assurance of the ESG report were notinvolved in the preparation process of the ESG report.Assurance ConclusionsThe ESG report re?ects the ESG performance of CR Sanjiu in 2025, which meets the requirements of AA1000 v3 and AA1000AP:

Inclusivity: CR Sanjiu has identified both internal and external stakeholders, including government/regulatory agencies, customers,employees, shareholders/executives/investors, partners, non-pro?t organizations, peer enterprises, and community members of the public.In the report preparation process, the expectations and needs of stakeholders have been considered.Materiality: Based on the analysis process of identifying dual importance issues, by analyzing the standards and policy requirements ofsustainable development management at home and abroad, scienti?cally conducting industry benchmarking, combining with the actualsituation and development strategy of the enterprise itself, comprehensively considering resource market prices, trend forecasts, companycosts in previous years, and non-concession factors of bene?ts, CR Sanjiu formed a list of ESG issues for this year, and the importance rankingof the issues is con?rmed.Responsiveness: CR Sanjiu has established a governance structure, management system and processes, as well as a communicationmechanism with stakeholders, capable of taking action to respond to the material issues of high importance and impact on CR Sanjiu and itsstakeholders.Impact: Through quantitative or qualitative methods, or a combination of both, CR Sanjiu has disclosed the main impacts on itself and itsstakeholders in terms of ESG.Speci?c performance information: Based on the process and results of this assurance, we have not found any de?ciencies in the reliabilityand quality of key data and information in the ESG report.

RecommendationsThe speci?c opinions regarding the assurance of this report have been communicated to the management of CR Sanjiu in written form andwill not be further elaborated in this section.

President of CQC：

March 16, 2026

Beijing, China

Scope of Assurance

The key data and information disclosed in the CR SANJIU 2025SUSTAINABILITY AND ESG REPORT.

Basis for Assurance

AA1000 v3, Type 2, Moderate Assurance

Assurance MethodsThe methods used in this assurance include but are not limited to:

a) Report review;b) Interviews；c) Veri?cation of documents, records, certi?cates, bills, and othermaterials;d) Trusted information source veri?cation;e) Veri?cation against disclosure basis;f) Recalculation/estimation; andg) Con?rmation of statistical, calculation/estimation processes.Limitations

This assurance was conducted using sampling methods based on quantitative and qualitative risk analysis and the sampling scope waslimited to the data and information selected in the ESG report, not fully tracing or independently recalculating all raw data of CR Sanjiu.

This assurance only covered interviews and/or document review with CR Sanjiu, and did not involve external stakeholders.

The data and information audited/veri?ed by a third party in the ESG report were not subject to repeated veri?cation during this assuranceprocess.

Some of the data and information in the ESG report cannot be compared and veri?ed through independent sources. This assurance onlyevaluated their reasonableness.

Activities outside the scope of information disclosure were not included in this assurance.

The statement regarding the position, viewpoints, goals, future development directions, and commitments of CR Sanjiu was not includedin this assurance.

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.Message from the executive?

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2025 SUSTAINABILITY AND ESG REPORT

Message from the executive

The year of 2025 marks the end of the 14th Five-Year Plan, the 40th anniversary of the establishment of CR Sanjiu, and a year ofstriving for the high-quality development of traditional Chinese medicine. As a state-owned enterprise deeply involved in the ?eldof medicine and health, we adhere to the mission of "caring for public health and creating a better life together", with CR Sanjiuas the core body, and collaborate with Tasly and Kunming Pharmaceutical Group to focus on the three core tracks of consumerhealth, medical health, and silver hair health, and build a development pattern of mutual empowerment and collaborativegrowth. We deeply integrate the concept of sustainable development into the full dimensions of enterprise management, alignthe direction under the guidance of Party building, solidify the foundation in green transformation, hone our strength in businessdeepening, and unite our efforts in collaborative development. We fulfill our responsibility and mission of pharmaceuticalenterprises with practical actions, and contribute CR Sanjiu's strength forces to building a healthy China.

Party building leads and strengthens the foundation, integra-ting and empowering to promote development. We alwaysadhere to the guidance of Party building, guided by Xi Jinping'sThought on Socialism with Chinese Characteristics for a New Era,comprehensively implement the leadership of the Party in allaspects of company management, and promote the resonanceand deep integration of Party building work and businessdevelopment. Deepening the promotion of "learning education"and "agile action" has injected strong spiritual strength intoconsolidating the cornerstone of the company's high-qualitydevelopment.Setting a benchmark in green transformation and embarkingon a new journey of low-carbon development. We actively

respond to the national "Dual Carbon" strategy, aiming to becomea green benchmark in the pharmaceutical industry by exploringnew pathways for the low-carbon transition of the traditionalChinese medicine sector. The utilization rate of green electricityat production bases，including Guanlan, CR Sanjiu (Zaozhuang),and CR Sanjiu (Chenzhou) has continued to increase, whilegreenhouse gas emission intensity has steadily declined. Thenumber of national-level green factories has grown to nine. Weextend our green philosophy throughout the entire industrialchain by promoting ecological planting models for Chinesemedicinal herbs, constructing integrated "agrivoltaic" zero-carbondemonstration projects, and establishing a comprehensive green,low-carbon ecosystem covering everything from source plantingto terminal production.Consolidating core business and empowering developmentthrough Innovation. Adhering to the dual-wheel drive strategyof "Innovation + Brand," we benchmark against world-classenterprises to optimize our business layout, comprehensivelyexpand our presence across the self-diagnosis and treatment?eld, and precisely meet the public's full-cycle health needs fromprevention and healthcare to treatment and rehabilitation. Wecontinue to increase R&D investment, build an open innovationsystem, and re?ne a series of innovation systems covering projectinitiation, process management, incentives, and "fault tolerance,"thereby stimulating innovation vitality and progressivelyenhancing innovation value. Tasly has joined the CR Sanjiu family,empowering our core business and promoting the inheritance,innovation, and high-quality development of traditional Chinesemedicine.Uniting the chain for synergy and enabling collective improve-ment. As a leading enterprise in the traditional Chinese medicine

industry chain, we leverage "building alliances, establishingplatforms, gathering talents, and promoting cooperation" todrive quality and e?ciency improvements across the entire TCMindustrial chain. Upstream, we have established 50 standardizedplanting bases for authentic medicinal herbs, building a quality

foundation through superior seedling cultivation and full-processtraceability. Midstream, we enhance quality and efficiencythrough intelligent manufacturing, digital twins, and cloud-based manufacturing models. Downstream, we collaborate withmedical institutions and research institutes to build an ecosystemintegrating "production, academia, research, medicine, andapplication" and lead the formulation of industry standards,facilitating the TCM industry's transition towards refined, high-quality development.

Deepening reform to stimulate vitality, improving qualityand efficiency for a new landscape. We fully implement thereform tasks for state-owned enterprises, continuously deepeningreforms and enhancing core functions. Centered on "technologicalinnovation, industrial control, and security support," we delve intoreform initiatives, driving development and implementing strategythrough reform. We have successfully completed the phased goalsof the deepening and upgrading actions for SOE reforms and the"Science and Technology Reform Action", being recognized as a"benchmark" for three consecutive years by the SASAC's Scienceand Technology Reform program. We continuously improvecorporate governance, fostering a new landscape for high-qualitycorporate development with greater governance efficiency, andpersistently enhancing our industry standing and brand in?uence.Advancing together for a win-win future, upholding responsi-bility and staying true to our mission. We continuously enhance

product quality and accessibility, safeguarding public healthwith safer, higher-quality, and more accessible pharmaceuticalproducts. We deeply integrate the inheritance and innovation oftraditional Chinese medicine with rural revitalization, carryingout diverse public welfare initiatives to give back to society andimprove people's livelihoods using our industrial strengths.Adhering to a people-oriented philosophy, we e?ectively protectthe legitimate rights and interests of our employees and build abroad platform for talent development, enabling every dedicatedindividual to showcase their talents and achieve their value.Looking ahead to 2026, it will be the beginning year of the 15thFive-Year Plan. Standing at a new starting point for the high-qualitydevelopment of the pharmaceutical and health industry, we willdeeply implement the spirit of the Fourth Plenary Session of the20th Central Committee of the Communist Party of China, theimportant instructions given by General Secretary Xi Jinping tothe work of central enterprises, closely follow the developmentwave of industry innovation and coordination, serve the country'soverarchingpriorities, and deeply promote the "Health PriorityDevelopment Strategy" to take root. On the road to safeguardingpublic health, we will work together with our partners to write anew chapter in the high-quality development of the traditionalChinese medicine industry!

The Chairman of China Resources Sanjiu Medical &Pharmaceutical Co., Ltd.

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.About us ?

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2025 SUSTAINABILITY AND ESG REPORT

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd. is alarge state-controlled pharmaceutical listed company, mainlyengaged in the research and development, production, sales,and related health services of pharmaceutical products. It waslisted on the Shenzhen Stock Exchange on March 9, 2000 (StockCode: 000999) and officially joined China Resources Group in2008.

With the mission of "Caring for Public Health, Creating a BetterLife Together," the Company strengthens independent R&Dand innovation, enhances product quality control levels, andprovides "safe, high-quality, efficient, and environmentallyfriendly" pharmaceutical products and services to the public. Itsafeguards public health, protects public interests, and furtherbuilds an in?uential and sustainable corporate responsibility andESG brand.

CR Sanjiu's core business is positioned in the CHChealth consumer products and prescription drug(Rx) sectors. The Company has a rich product lineand continuously enriches its varieties. CHC healthconsumer products mainly cover categories suchas cold and flu, gastrointestinal, skin, liver andgallbladder, pediatrics, orthopedics, gynecology,and cardio-cerebral health, with core productsholding a high market share. Our prescriptiondrug portfolio covers therapeutic areas includingcardiovascular and cerebrovascular diseases,oncology, digestive system disorders, orthopedics,pediatrics, and anti-infectives. Key productsinclude the Xuesaitong Panax notoginsengseries, Shenfu Injection, Tracer-use MitoxantroneHydrochloride Injection, Cinobufagin Tabletsand Injections, Yixuesheng Capsules, Yuxuebi,and Cefpirome Sulfate for Injection, amongothers, enjoying a high reputation in the hospitalsegment. TCM formula granules and Chinesemedicinal decoction pieces are dedicated tocreating "original quality and original taste" 999TCM formula granules and "Sanjiu Bencao Wu"premium Chinese medicinal decoction pieces.

About usCompany pro?le

Brands and Products

Key performance

Total assets

58,804.6787 million RMB

Operating revenue31,602.5776 million RMB

Total pro?t

4,864.0792 million RMB

Total number of employees

30,304

Industry Chain Business Group - Kunming Pharmaceutical Group: CR Sanjiu and its subsidiary Kunming Pharmaceutical Groupmutually empower and synergistically develop, continuously focusing on the development of the Panax notoginseng industry， thebranding of "777" and "Kunzhongyao 1381" brands, promoting Kunming Pharmaceutical Group to become a leading health stock inthe silver economy.

Major Product Clusters

"777" Panax Notoginseng Oral Series"1951" Medical Treatment Series"1381" Re?ned TCM SeriesIndustry Chain Business Group - Tasly Pharmaceutical Group: Focusing on four major therapeutic areas: cardio-cerebrovascular,digestive metabolism, neuro-immunology, and oncology, it has formed a large product cluster represented by Compound DanshenDripping Pills, Yangxue Qingnao, and Temozolomide, providing urgently needed drugs that ?ll gaps in the Chinese market.

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.About us ?

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2025 SUSTAINABILITY AND ESG REPORT

Brand Blueprint

Brand Generation and Planning

CR Sanjiu possesses strong brand operation capabilities andhas been listed multiple times on WPP's annual Top 100 MostValuable Chinese Brands list. The Company adopts a "1+N"brand strategy, leveraging strong brand operation and resourceintegration capabilities to build a multi-brand matrix. In the CHCfield, starting from the treatment of common family illnessesand health management, it actively extends towards healthmanagement and rehabilitation/chronic disease management.Based on the main "999" family essential brand, it continuouslystrengthens consumer-recognized pharmaceutical brands suchas "Tianhe," "Shunfeng," "Aonuo," and "Kangfute." In the silver

health ?eld, focusing on the entire Panax notoginseng industrychain, it continuously enriches the "777" brand connotationand product portfolio, expanding and strengthening the Panaxnotoginseng oral preparation category. The premium nationalmedicine brand "Kunzhongyao 1381," carrying over 600 years ofhistory, is fully promoting its strategic upgrade. In the prescriptiondrug ?eld, it owns innovation-driven pharmaceutical brands suchas "Tasly," continuously strengthening academic brand buildingthrough R&D innovation and combined in-hospital and out-of-hospital academic promotion.

Organizational structure

China resources sanjiu medical &

pharmaceutical Co., Ltd.

Industrial ChainBusiness Group

CHC Business

Group

RX Business

Group

R&D, Production, and Functional Platforms

Tasly Pharmaceutical Group (600535.SH)Professional Brand Business DivisionOTC Business DivisionHealth & Wellness (Shenghai) Business DivisionInnovative Prescription Drug Business DivisionPublic A?airs CenterHuman Resources CenterFinancial Management CenterProduction Operations CenterProduction Technology CenterR&D CenterGuoyao Business DivisionIntelligence and Digitalization CenterInvestment CenterMarketing DepartmentStrategy and Operations DepartmentLegal and Compliance DepartmentEHS Management DepartmentSecurities A?airs DepartmentParty-Mass Work DepartmentAudit DepartmentDiscipline Inspection Commission O?ceInspection O?ce

Core Pipeline for Innovative Traditional Chinese MedicineSpecialized Pipeline for Innovative Chemical DrugsInnovative Biologics PipelineKunming Traditional Chinese Medicine 1381 Business DivisionChina Resources Sanjiu (Tangshan) Pharmaceutical Co., Ltd.Aonuo (China) Pharmaceutical Co., Ltd.Anhui China Resources Jinchan Pharmaceutical Co., Ltd.Hefei China Resources Shenlu Pharmaceutical Co., Ltd.China Resources Sanjiu (Ya'an) Pharmaceutical Co., Ltd.Beijing China Resources Gaoke Natural Medicines Co., Ltd.Shenzhen China Resources Jiuxin Pharmaceutical Co., Ltd.Zhejiang China Resources Sanjiu Zhongyi Co., Ltd.Shenzhen Jiuxing Printing & Packaging Group Co., Ltd.Guanlan Production BaseChina Resources Sanjiu (Huangshi) Pharmaceutical Co., Ltd.China Resources Sanjiu (Chenzhou) Pharmaceutical Co., Ltd.China Resources Sanjiu (Nanchang) Pharmaceutical Co., Ltd.China Resources Sanjiu (Zaozhuang) Pharmaceutical Co., Ltd.Guangdong China Resources Shunfeng Pharmaceutical Co., Ltd.Liaoning China Resources Benxi Third Pharmaceutical Co., Ltd.Guilin China Resources Tianhe Pharmaceutical Co., Ltd.Hangzhou China Resources Laotongjun Pharmaceutical Co., Ltd.Jilin Sanjiu Jinfukang Pharmaceutical Co., Ltd.Innovative Drug ResearchInstituteHealth Drug Research InstituteProcess Technology ResearchInstituteAdvanced DeliveryTechnology Research InstituteTraditional Chinese MedicineResources Research InstituteNational Enterprise Technology CenterNational Key Laboratory for Modernization of ClassicalPrescriptions in Traditional Chinese MedicineNational-Local Joint Engineering Research Center forKey Technologies of Oral Traditional Chinese MedicinePreparationsNational Engineering Research Center for TraditionalChinese MedicineKey Laboratory for Traditional Chinese Medicine QualityResearch and EvaluationGuangdong Lingnan Medicinal Resources and ModernTraditional Chinese Medicine Manufacturing InnovationCenterGuangdong Small Molecule Drug Innovation CenterShenzhen Engineering Laboratory for Modernization ofTraditional Chinese Medicine and New Drug CreationShenzhen Key Laboratory for Quality Control ofTraditional Chinese MedicineShenzhen Engineering Technology Research andDevelopment Center for Traditional Chinese MedicinePreparation Technology

Fuxi LaboratoryDeep Blue LaboratoryWaterdrop Laboratory

Kunming PharmaceuticalGroup Co., Ltd. (600422.SH)

KPC1951 Business Division777 Business Division (China Resources Shenghuo)

Guoyao Business Division

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.Focus on 2025?

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2025 SUSTAINABILITY AND ESG REPORT

Received the highest "A" grade in informationdisclosure assessment by the Shenzhen StockExchange for 11 consecutive yearsAwarded multiple honors including "InvestorRelations Management Shareholder Return Award"and "Investor Relations Management Tianma AwardReceived multiple honors such as the 2024 "GoldenInformation Disclosure Award", "Top 100 MostValuable Mainboard Listed Companies" and "2025Capital Power Annual Selection Excellent ListedCompany Award"Won multiple major awards including "Investor

Relations Management Shareholder Return Award" ,"Investor Relations Management Tianma Award","Outstanding Partner Award for Factory Exploration100" ,"10th Shuangpinhui Outstanding Partner" and"5th Starsailor Conference Partner"Received honors such as "2024 Annual

Report Performance Brie?ng BestPractice" ,"2025 Listed CompanyBoard of Directors Best Practice Case"and "2025 Listed Company BoardO?ce Best Practice Case"Selected for the "2025 Greater Bay

Area Listed Companies CorporateGovernance TOP 20"

Recognized as a "National High-Tech Enterprise" for the sixth consecutive

timeSelected for the Ministry of Industry and Information Technology's ?rst batch

of "Excellent-Level Intelligent Factory" projectsParticipated research projectReducing Minor Stoppages of SGA40 Liquid

Filling Machinewon the International Gold Award at the 50th International

Convention on Quality Control Circles (ICQCC)Participated smart park project "5G+AI Injecting New

Momentum into the Digital Transformation of the TCM

Industry" won the Bronze Award in the Benchmark

Competition of the Ministry of Industry and Information

Technology's "Blooming Cup" 5G Application CompetitionReceived the "2025 Digital and Intelligent Technology

Innovation Model (Case)" honor fromEnterprise

Management magazineAwarded the "2024 Science and Technology Innovation

Achievement Gold Award"Public Auxiliary IoT Group Control System" project o?cially

launched

Received the 2024 New Fortune Magazine Best Listed

Company "Most Trendy National Brand Power" honorWon Securities Star's "2025 Capital Power Annual

Selection Excellence Brand AwardSelected for the SASAC's "Benchmarking World-Class

Enterprises Value Creation Action Excellent Case"Xiao'er Anshen Buna Granules" selected for the third

batch of "Lingnan Famous Prescriptions"Sanjiu Weitai" brand recognized as a "Guangdong

Time-Honored BrandRanked on the "2025 Asia Brands 500" ,"China Brand

Internationalization Benchmark 100" and "Ipsos 2025

China Brand In?uence Index 29th Place"Awarded the titles of "8th Vice President Unit of China

Non-prescription Drugs Association" and "Executive

Director Unit of China Corporate Culture Research

Institute"

New product "999 Yiqi Qingfei Granules" o?cially launched and included in

the National Reimbursement Drug ListAcquired exclusive rights for innovative drug Huakesi (Tilorist Tablets) in

Mainland ChinaDomestic ?rst generic "Selenium Disul?de Lotion" approved for market

launchClassical famous prescription TCM compound preparation Banxia Baizhu

Tianma Granules approved for market launch"Sijunzi Granules" and "Shaoyao Gancao Granules" approved for market

launch in Macau Cefoxitin Sodium for Injection obtained marketing authorization in the UK Ceftizoxime Sodium for Injection approved for market launch Fulvestrant Injection and Ertapenem Sodium for Injection approved "Metronidazole Gel" approved for market launch "Loxoprofen Sodium Gel Patch" approved for market launch "Minoxidil Topical Solution" approved for market launch Pro-urokinase cerebral infarction indication approved Ceftriaxone Sodium API approved for market launchThe introduction of the innovative glioblastoma drug dordaviprone is

currently undergoing Phase I clinical research

Focus on 2025Capital market recognitionDriving technological innovation

Advancing brand building

Deepening product R&D

Signed strategic cooperation agreement with Zhengzhou University, jointly establishing the "Zhengzhou University - CR Sanjiu Innovative Drug

Research InstituteHeld strategic cooperation signing ceremony with Baoding Municipal Government and China Resources Power for NorthChina Production Base construction Signed strategic cooperation agreement with Yunnan University of Chinese MedicineCollaborated with Nanjing Aierpu Regenerative Medicine to develop China's ?rst self-developed HiCM-188 (iPSC-derivedcardiomyocyte drug) Collaborated with Bright Gene Pharmaceutical on the BGM0504 injection project research and developmentSubsidiary Kunming Pharmaceutical Group re-quali?ed as a General Contractor Enterprise for the Ministry of Commerce's

Foreign Aid Material Projects Awarded First Prize in the "2025 State-Owned Enterprises Deepening Reform Practice Achievements

Advancing in-depth development

Awarded an "A" rating by MSCI, an "AA" rating by WindReceived honors including the "3rd Guoxin Cup ESG Excellence Central Enterprises Golden Bull Award" ,"ESG Golden Bull Award Central Enterprises

Top 50" and "Securities Star ESG New Benchmark Enterprise Award"Listed on "China Enterprise Supply Chain ESG Top 100 Index" (Jingniu Index), awarded "Jingniu · Supply Chain ESG Pioneer," "2025 China Supply

Chain ESG Management Demonstration Enterprise" and "2025 China Supplier ESG Rating Platform Initiating Unit"

CR Sanjiu 2024 Sustainability ESG Reportwas awarded the "Five-Star Top Tier" rating by the Chinese Academy of Social Sciences, the "Excellence

A+" rating in the Golden Bee Corporate Social Responsibility Report evaluation and "China Resources Group 2024 Annual ESG Sustainable

Development Bronze Award" Awarded the GoldenBee 2025 "Corporate Social Responsibility · Leading Enterprise" AwardSelected for the China Environmental Protection Federation (CEPF) 2025 China Corporate

ESG 100 Index Recognized as a "2025 Responsible Practice Public Welfare Project"Awarded First Prize inEnterprise Managementmagazine's "2025 Enterprise ESG Excellent

Achievement (Case)"Selected as an excellent case in theChina Enterprise Supply Chain ESG Blue Book (2025)CR Sanjiu (Nanchang) received the Ministry of Industry and Information Technology's

"National Green Factory" honorary title Selected for the Sina Finance "2025 China Corporate ESG Top 100" list

Promoting sustainable development together

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.Sustainability management?

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2025 SUSTAINABILITY AND ESG REPORT

ESG performance highlights

Environmental performance

Social performance

Governance performance

E

SG

Total Environmental Protection Investment:

66.5718

million RMBMajor Pollutant Discharge Compliance Rate:

100%

Clean Energy Consumption:

10,796.25tons ofstandard coalComprehensive Energy Consumption:

131,900

tonsof standard coalIndustrial Water Reuse Rate:

79.79%

General Industrial Solid Waste Recycling Rate:

98.96%

Total Industrial Water Saved:

21,892,708tons

Proportion of Female Employees in ManagementPositions:

44%Labor Contract Signing Rate:

100%

Employee Training Coverage Rate:

100%Fatalities from Safety Accidents:

Participation in Formulating

InternationalStandard,

National Standards,

Industry StandardsNumber of Factories Recognized as Advanced-levelSmart Factories:

Domestic and International Quality-related StandardSystem Certi?cations Obtained:

Charitable Donation Expenditure: Approximately

4.7044

million RMBPromoted Area of Medicinal Material Planting Bases:

444,700

mu, Self-built or Co-built PrimaryProcessing Bases:

Proportion of Female Directors:

18.18%

Anti-Corruption Training Coverage Rate:

100%Total Employee Training Hours for Anti-Corruption:

145,606

hoursReceived the Highest Rating'A' in the Shenzhen Stock ExchangeInformation Disclosure Assessmentfor Eleven Consecutive YearsAwarded

"Best Practice for Annual Report Performance Brie?ng"by the China Association for Public Companies for Four Consecutive Years

Number of Shareholders' Meetings Held:

，number of Board Meetings Held:

Employee Ethics Training Coverage:

100%

Sustainability and ESG concepts

Sustainability management

Governance frameworkCR Sanjiu consistently enhances the sustainable development management system and optimizes its corporate governance structure.The Company has established a top-down sustainable development and ESG governance framework with clearly de?ned responsibilities,involving the Board of Directors, the Management, and the Sustainability Working Group. This collaborative structure drives theCompany's sustainable development initiatives and elevates the level of ESG governance.

Board of DirectorsManagement Team

Each DepartmentEach CenterBusiness DivisionsSubordinate Business Units

Sustainability Working Group

Public A?airs Center

CR Sanjiu is committed to sustainable development and ESGmanagement, guided by the principle of "Creating Value forShareholders, Providing Opportunities for Employees, andAssuming Responsibility for Society." We have effectivelyintegrated the concepts and goals of sustainable developmentinto the overall development strategy of the pharmaceuticalindustry, embedding it across all stages of the product lifecycle,including medicinal herb cultivation, pharmaceutical R&D,and health consumption. While pursuing economic growth,we prioritize safeguarding the legitimate rights and interestsof shareholders and creditors, and maintain fair and honest

relationships with customers, suppliers, and employees. Inour production and operations, we actively promote greenand low-carbon practices, aligning with the "Carbon Peakand Carbon Neutrality" policies by implementing energy-saving and emission-reduction initiatives. Additionally, we arededicated to charitable and public welfare endeavors, such asrural revitalization, community development, and emergencydisaster relief. By coordinating our corporate activities with socialand environmental goals, we strive to achieve harmonious andsustainable development for both the Company and society.

CR Sanjiu continuously enhances the sustainable developmentand ESG implementation mechanism. Guided by the CR Group's"14th Five-Year Plan" for social responsibility, the Company carries

out its annual sustainable development and ESG initiatives, closelyintegrating its business activities with sustainable developmentmanagement to drive high-quality and sustainable growth.

Sustainability and ESG work implementation

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.Materiality management?

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2025 SUSTAINABILITY AND ESG REPORT

The Board of Directors of CR Sanjiu consistently strengthensthe oversight of sustainable development and ESG matters,driving continuous improvements in the Company's sustainabledevelopment governance system and ensuring the integration ofESG considerations into the Company's major decision-makingprocesses and business operations.CR Sanjiu established theManagement Measures for SocialResponsibility Work of CR Sanjiu, which was revised in 2025 ando?cially took e?ect and was implemented thereafter. The policyapplies to all centers, departments, divisions, and businessunits within the Company. In alignment with these measures,CR Sanjiu continuously refines its sustainable developmentindicator system and enhances performance management,practice communication, report compilation and dissemination,as well as evaluation and assessment within its sustainabledevelopment management framework.By 2025, CR Sanjiu has prepared and published social responsi-bility reports for 17 consecutive years, with steady improvementsin both the "quality" and "quantity". Starting in 2022, CR Sanjiueffectively integrated key ESG indicators with CSR indicators,upgrading its original Social Responsibility Report to a SustainableDevelopment Report. In 2023, the Sustainable DevelopmentReport was further upgraded to a Sustainable Development andESG report.

Management guidelines

The Board of Directors of CR Sanjiu holds the overallresponsibility for sustainable development and ESG-relatedmatters, while the Company's management is tasked withmanaging the sustainable development and assessing the risksand opportunities associated with the Company's sustainabledevelopment. Under the Board of Directors, a SustainabilityWorking Group has been established to implement and follow upon tasks assigned by senior leadership. The Public A?airs Centeris responsible for the daily management and coordination ofsustainable development initiatives. Additionally, each center,department, business division, and subsidiary is responsible foradvancing and implementing sustainable development work atthe frontline of business operations.This report provides a detailed disclosure of the progress andeffectiveness of CR Sanjiu's sustainability and ESG initiativesin 2025. Moving forward, the Board will continue to refine andoptimize the Company's ESG governance framework.

Statement of the board

The Board of Directors, operating within the framework of theexisting internal control and risk management system, evaluatesthe risks and opportunities associated with the Company'senvironmental, social, and governance (ESG) factors. It identi?es,oversees, and manages issues and activities related to ESGgovernance to ensure the effective implementation of thesustainable development strategy.

Risk and opportunity identi?cation

CR Sanjiu encourages all subsidiaries to implement sustainabledevelopment and ESG practices in alignment with their businessdevelopment needs and resource capabilities. Each subsidiaryis urged to undertake or participate in relevant responsibilityful?llment projects based on its speci?c circumstances, fosteringdeeper progress and impact in these initiatives.The Board of Directors has established a Compensation andEvaluation Committee responsible for researching, formulating,and reviewing compensation policies and plans for thecompany's directors and senior management. The compensationstructure for senior management of China Resources Sanjiuconsists of three components: base annual salary, performance-based annual salary, and medium to long-term incentives. Wehave integrated sustainability performance indicators, suchas environmental performance, anti-corruption efforts, andcompliance operations, into our current incentive remunerationpolicy. We conduct annual reviews and evaluations of our seniormanagement's performance and disclose information on theremuneration of the Board of Directors and management in ourannual report. For further details, please refer to theCR Sanjiu2025 Annual Report.

CR Sanjiu organizes annual professional training sessions forthe management and all members of the Sustainability WorkingGroup. These sessions aim to review the achievements of theyear's sustainable development and ESG management e?orts,share the latest trends in sustainable development, and discussindustry best practices to enhance the Company's sustainabledevelopment and ESG management performance. Additionally,CR Sanjiu actively participates in domestic and internationalcommunication and exchange activities related to sustainabledevelopment. The Company also collaborates with partnersand social responsibility/ESG research organizations to conductrelevant training programs.

Evaluation and assessment

Capacity building

Key performanceDuring 2025, CR Sanjiu conducted

dedicated training programs on sustainabledevelopment, amounting to3,915.23class hours, with4,513participants involved.

Materiality management

CR Sanjiu rigorously adheres to the process of dual materiality assessment, scienti?cally conducts stakeholder questionnaire surveys,and identi?es materiality issues to direct the sustainability management and information disclosure e?orts, thereby better ful?lling theexpectations and demands of stakeholders.

Financial materiality assessment

Impact materiality assessmentIssue identi?cation

Issue prioritization

Issue survey

Issue review

By analyzing standards and policy requirementsfor sustainable development management bothdomestically and internationally, conducting scienti?cindustry benchmarking, and integrating the actualsituation and development strategy of the Company, anissue database comprising 46 topics was established

Based on the survey results of the materiality issues,we prioritized the issues in terms of the "importanceto business development" and "importance tostakeholders

Conduct questionnaire surveys on material issuesfor both internal and external stakeholders, includingshareholders/investors, employees, customers,government/regulators, partners, competitors, media,non-governmental organizations, and the generalpublic in the community

The Company's management, along with externalexperts, reviewed the results of the issue assessmentand ?nalized 28 materiality issues for key disclosurewithin the report

Experts from CR Sanjiu's Finance Department assessed the ?nancial impact of the issues based on the two dimensions of "continuityof access to resources" and "dependence on relationships".

Identi?cation ofthe continuity ofaccess to resourcesAnalysis of thedependence on

relationshipsFinancialmaterialityanalysis

Considering the internal and external environments of the Company, analyze whether the Companycan sustainably secure relevant capital resources in the short, medium, and long term, taking intoaccount the impact of various ESG material issues.Analyze whether the Company can sustain positive relationships if it fails to adopt best practices foreach material ESG issue.Considering the market price of resources, trend forecasts, the Company's costs in previous years,and non-revenue factors, we assessed the impact on profits. The Finance Department experts,Sustainability Working Group, management, and Board of Directors at CR Sanjiu, among others,successively reviewed and ultimately con?rmed the agreement. We identi?ed a total of 28 materialityissues, of which 9 issues have double materiality, and 1 issue is deemed to have ?nancial materiality.

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.Stakeholder communication?

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2025 SUSTAINABILITY AND ESG REPORT

Importance to the Company's Financial PerformanceHighHigh

HighHigh Impact on the Economy, Society and the Environment

CR Sanjiu Double Materiality Issues Analysis

2423

Importance

SerialNumber

Issue

DualImportanceIssues

1Product/Service Quality Management2Product/Technology R&D and Innovation

Protect customers' legitimate rights andinterests4Deepen digital transformation5Protect employee rights6Occupational health and safety7Waste/Emission Management8Addressing climate change9Anti-corruption and anti-briberyFinancialMaterialityIssues

Honest and compliant businessoperationsImpactMaterialityIssues

11Strengthening risk management

Strengthen the construction of asustainable development system13Intellectual Property Protection14Upholding pharmaceutical ethics15Creating business value

Importance

SerialNumber

Issue

ImpactMaterialityIssues

16Adhere to the Party's leadership

Protecting the rights and interests ofsmall and medium-sized investors

Advocating for scienti?c and rationaldrug use

Advocating responsible marketing andconsumption20Promote career development

Improve environmental managementsystem/environmental compliancemanagement22Energy conservation23Optimize resource utilization24Protecting biodiversity25Promoting Supply Chain Accountability26Promote industry development27Supporting rural revitalization28Promote cooperation and exchange

Stakeholder communicationIdentify the key stakeholders of CR Sanjiu, explain their expectations and demands, and outline the communication channels andresponsible communication actions that CR Sanjiu takes to respond to their expectations.StakeholdersCommunication needsCommunication ResponseGovernment/RegulatorySystem

Daily communication Working meetings and project reporting

Implement management requirements Supporting rural revitalization ESG/Sustainable Development System Construction Create jobs

Client

Customer satisfaction survey Customer Relationship Management Product quality and safety management

Strengthen quality and safety supervision Expand the Health and Wellness Business Improve customer satisfaction Actively handle customer complaints

Sta?

Complaints and Feedback Training activities Performance feedback

Protecting employee rights Caring for employees' lives Promote career development Improve the democratic communication mechanism

Shareholders/Executives/Investors

Improved operating performance Multi-channel communication Improve governance capabilities

Guarantee reasonable investment returns Improve the quality of information disclosure Maintaining investor relations Hold an earnings brie?ng Improve media communication channels

Partners

Supplier Management Training Exchange and discussion meeting

Compliance Management Anti-corruption Optimize work?ow Deepen project cooperation

Non-pro?torganizations

Implementing "dual carbon targets" Green Operations Raise environmental awareness

Addressing climate change Energy conservation and emission reduction Environmental protection Environmental protection publicity and education

Peer companies

Forums and conferences Working group Exchange activities

Promote industry development Discuss business opportunities Conduct joint research and development Experience exchange and sharing Participate in ESG industry exchanges

Communitypublic

Community communication Social welfare activities

Carry out community service activities Health knowledge promotion Implementing rural revitalization

Feature: synergistic development of the wholeindustry chain to create new quality productiveforces in the traditional chinese medicine industry

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Laying a solid foundation: constructing a "national chessboard" layout for medicinal herbs

Forging excellent quality with end-to-end assurance from source to production

Understanding that "good herbs make good medicine," CRSanjiu continues to increase investment in the medicinal herbplanting sector, focusing on creating a national "chessboard"layout for authentic medicinal herbs. The Companycombines internal raw material needs with its strategy forlarge-scale products to comprehensively screen majorauthentic medicinal herbs, such as Panax notoginseng, wildchrysanthemum, Isatis indigotica, and Lonicera japonica. Itidenti?es core production areas and has established a "four-in-one" layout nationwide, encompassing planting bases,

primary processing bases, decoction piece processing bases,and warehouse centers. By the project period, the total areaof medicinal herb planting bases exceeded 440,000 mu,and five regional warehouse bases have been constructedin the Northeast, Southwest, Central China, Northwest, andSouth China. This realizes a nationwide network coveringthe process from source to warehousing, laying a solidmaterial foundation for the high-quality development of thetraditional Chinese medicine industry.

CR Sanjiu focuses on key varieties, establishing adevelopment model that integrates "breeding of improvedvarieties, promotion of breeding, establishment of bases,base-specific products, and products with market access."The Company has successfully bred nine new medicinalherb varieties, including wild chrysanthemum and Gangmei,achieving a breakthrough from "no cultivation" to "improvedvarieties" for wild medicinal materials, thereby masteringthe "the core seed and seeding resources." At the sametime, the Company actively promotes the development ofGood Agricultural Practices (GAP) for Dao-di herbs. It wasamong the ?rst to pass GAP extension inspections in severalprovinces, including Guangdong, Anhui, and Sichuan, ithas now had 17 varieties pass the inspection. Throughstandardized management across the entire process—fromseed selection, standardized planting, to harvesting andprocessing—the Company fundamentally ensures the stableand reliable quality of medicinal materials.In recent years, CRSanjiu has developed a standardized wild chrysanthemumplanting industry in the Dabie Mountains region (Hubei,Henan, Anhui), covering Hong'an (Hubei), Jinzhai (Anhui),and Xinyang (Henan), in cooperation with local farmers andcooperatives. Through models such as "contract farming"and "Company + Cooperative," the planting area has

expanded to 440,000 mu. The Company has also establishednational-level seed and seedling bases to ensure qualityfrom the source, promoting understory ecological plantingand courtyard planting models. This initiative has increasedfarmers' per-mu income to nearly 3,000 yuan, benefiting10,447 farmers, creating over 50,000 jobs, and generatingan industrial output value exceeding 150 million yuan. Thishas achieved a win-win situation for ecological protection,industrial e?ciency, and farmers' income growth.

Cultivating ?ne varieties and standardized planting for source control

CR Sanjiu Wild Chrysanthemum Planting Base in Jinzhai, Anhui

As the core unit for the construction of the traditional Chinese medicine (TCM) industry chain within China ResourcesGroup, CR Sanjiu aligns closely with the national strategy of revitalizing and developing traditional Chinese medicinewith high quality. Adopting a path of whole-industry-chain collaboration, the Company systematically builds new qualityproductive forces in the TCM industry through source control, intelligent manufacturing, innovative R&D, and industrialintegration, leading the modernization and upgrading of the sector.

Feature:synergistic development of the whole industry chain to create new quality productive forces in the traditional chinese medicine industry

Stimulating systematic momentum: industry chain integration and value co-creationCR Sanjiu integrates ESG principles throughout the entire chain"from seed to end product." The Company has innovativelydeveloped a "supplier tiered rating + targeted empowerment"system, covering six key topics including environment andlabor, to conduct ESG ratings and dynamic management ofsuppliers. By December 2025, comprehensive ratings hadbeen completed for 12 core suppliers. Concurrently, a dynamic

"traffic light" risk alert mechanism has been established,featuring 12 warning indicators to actively identify andaddress potential supply chain risks, thereby fortifying supplychain security. This approach drives the transformation ofsuppliers from "passive compliance" to "active value creation,"achieving deep synergy and sustainable development acrossall links of the industry chain.CR Sanjiu deeply integrates the traditional Chinese medicineindustry chain into the national rural revitalization strategy. TheCompany has cumulatively established 440,000 mu of Chinesemedicinal materials planting bases. Through models such as"Company + Cooperative + Farmer," farmers are integrated intothe standardized production system. The projects have developedsix germplasm resource nurseries for medicinal plants, collectingand protecting over 500 species. In terms of green development,

models such as understory planting, courtyard economy,and "agrivoltaic synergy" (combining medicinal planting withphotovoltaic power generation) have been actively promoted,achieving a cumulative carbon emission reduction of over 1.86million tons. These initiatives not only ensure the supply of high-quality medicinal materials but also transform the TCM industrychain into a new driver for rural employment, increased farmerincome, and ecological environmental protection.

Connecting whole-chain management and strengthening esg synergy

Activating rural vitality and empowering people's livelihood

CR Sanjiu adheres to an innovation-driven strategy,increasing R&D investment and building a research systemknown as the "Six Institutes and Three Laboratories," whichincludes the Institute of Traditional Chinese Medicineand the Institute of Innovative Drug Research. On March28,2025, at the First Traditional Chinese Medicine IndustryInterconnection Conference, CR Sanjiu, in collaborationwith the team led by Mr. Zhang Boli, an academician of theChinese Academy of Engineering, officially launched the?rst Category 3.2 new TCM drug—999 Yiqi Qingfei Granules.This drug is the first innovative TCM medicine officiallyapproved by the National Medical Products Administrationspecifically for treating comprehensive symptoms duringthe convalescent phase of respiratory infections. Adaptedfrom classical formulas such as Shengmai San and PingweiSan, its core effects are replenishing Qi and nourishing Yin,and strengthening the spleen and harmonizing the stomach.Multi-center, randomized, double-blind clinical trials

conducted by the First Teaching Hospital of Tianjin Universityof Traditional Chinese Medicine and other institutions havecon?rmed its e?ectiveness in alleviating symptoms such asfatigue and shortness of breath in convalescent patients. Thelaunch of this product fills a gap in the market and marksthe achievement of full-scenario coverage in CR Sanjiu'srespiratory product portfolio.

Innovation and research: uncovering classics and ?lling market gaps

The launch ceremony of Yiqi Qingfei Granules

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.Feature: synergistic development of the whole industry chain to create new quality productive forces in the traditional chinese medicine industry? 2025 SUSTAINABILITY AND ESG REPORT

Promoting the essence of Chinese medicine: enhancing global brand in?uence with culture as the soulCR Sanjiu is committed to promoting the heritage of TCMculture and brand internationalization. The Company hasbuilt a "1+N" brand architecture, evolving from a single "999"product to the 999 master brand covering multiple healthscenarios.From July 16 to 20, 2025, at the third China InternationalSupply Chain Expo held in Beijing, CR Sanjiu, representing theChina Resources Group's "Healthy Living Chain," participatedwith the theme of "Building a High-Quality Modern ChineseMedicine Supply Chain." The Company systematicallypresented a comprehensive industry chain landscape—from

upstream breeding and cultivation of genuine medicinalmaterials, to midstream smart manufacturing plantconstruction, and downstream international expansion andcultural promotion. Classic products such as CompoundDanshen Dripping Pills and Qizhi Weitong Granules werealso showcased. This participation demonstrated thedetermination and capability of the central state-ownedenterprise in leading the high-quality development of thetraditional Chinese medicine industry and serving globalhealth, while reinforcing its brand image of collaborativeinnovation across the industrial chain.

China Resources Sanjiu Exhibits at the 3rd China International Supply Chain Expo

On September 25, 2025, at the 2025 Hong Kong InternationalTraditional Chinese Medicine Conference held at the HongKong Convention and Exhibition Centre, CR Sanjiu, togetherwith Tasly, Kunming Pharmaceutical Group, Bauhinia CultureGroup, and in collaboration with time-honored brands andrelated institutions such as Yunnan Baiyao, Pien Tze Huang,and Tong Ren Tang, jointly initiated the "TCM Culture Co-Construction Initiative." This initiative called on the entireindustry to "jointly protect cultural roots, expand culturaldissemination, share cultural achievements, and promotecultural globalization." This distinctive event has not only

effectively fostered industry-wide consensus on promotingtraditional Chinese medicine culture but also establisheda synergistic pathway between cultural disseminationand industrial development in the field of TCM. During theconference, the reportDecoding Going Global: Research onBrand Building and International Communication Strategiesfor TCM Culturewas also released. It has established asystematic methodological framework to strengthen corporatebrand building and overseas dissemination of traditionalChinese medicine, while injecting cultural momentum into thehigh-quality global expansion of TCM.

The 2025 Hong Kong International Traditional Chinese Medicine Conference

Gaining broad recognition: setting industry benchmarks through excellent practice

CR Sanjiu's practice of creating new quality productivitythrough whole-chain synergy has received high recognitionfrom the government, industry, and society. The Company'ssupply chain ESG system was awarded the "China EnterpriseSupply Chain ESG Innovation Practice Award," and its projectsreceived honors such as the "Excellent Practice Case ofRural Revitalization for Listed Companies" and the "GoldenBee Corporate Social Responsibility · Leading EnterpriseAward." In the ?eld of intelligent manufacturing, the Companybecame the ?rst pharmaceutical company to achieve a Level4 intelligent manufacturing maturity rating and was selected

for the Ministry of Industry and Information Technology's ?rstbatch of "Excellent-Level Intelligent Factories." Additionally,the projectConstruction and Demonstration Application ofthe Theory and Technical System for Ecological Planting ofChinese Medicinal Herbs, in which the Company participated,won the Second Prize of the National Science and TechnologyProgress Award. These accolades reflect CR Sanjiu'sleading role in promoting the standardization, greening,intelligentization, and sustainable development of the TCMindustry.

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORTFeature:synergistic development of the whole industry chain to create new quality productive forces in the traditional chinese medicine industry

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Adhering to the principles of greendevelopment, and jointly painting anecological home

Our response

Guided by Xi Jinping Thought on Ecological Civilization, CR Sanjiuactively implements the national carbon peaking and carbonneutrality goals, integrates the concept of green development intothe entire production and operation process, continuously promotesenergy conservation and emission reduction, resource recycling, andenvironmental management system construction, builds an e?cient,clean, and low-carbon green operation system, and contributes CRSanjiu's strength to safeguarding green mountains and clear waters.

National requirementsGreen development is a defining feature of Chinese modernization.We firmly establish and practice the concept that green mountainsand clear waters are golden mountains and silver mountains. Withcarbon peaking and carbon neutrality as the driving force, we will worktogether to promote carbon reduction, pollution reduction, ecologicalimprovement, and growth, build a solid ecological security barrier, andenhance the momentum of green development.

?Suggestions for the 15th Five Year Plan

E

Contribution to the United Nations Sustainable Development Goals

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard aharmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Advancing toward greener production parks with continuous low-carbon e?ortsProduction operations represent a core arena for enterprises to ful?ll their ESG responsibilitiesand a critical front in responding to the national carbon peaking and carbon neutralitystrategy. As the headquarters production unit of CR Sanjiu, the Guanlan Base has consistentlypursued green and low-carbon development as its core objective. Leveraging the advantagesof intelligent manufacturing and digital technology, it has been continuously advancing theintegrated innovation of green, low-carbon and intelligent control—from high-efficiencyenergy transformation to digital and intelligent environmental management, and from single-link energy conservation to whole-chain synergy. The goal is to create a more energy-e?cient,environmentally friendly, and sustainable production park for employees, setting a greendevelopment benchmark for the industry.Integrating green development with intelligent control to enhance efficiency in everyprocess

The park employs a dual-drive approach of "technological transformation + digitalmanagement," deeply advancing the construction of high-efficiency air-conditioning roomsand the establishment of IoT group control systems to reshape energy management modelswith digital intelligence. Through innovation in the operation mode of air compressor systemsand the integration of intelligent controls over steam, air compression, and refrigeration stationindicators, the high-e?ciency air-conditioning rooms have achieved systematic energy savings,saving 1.2 million kWh of electricity annually, with an energy-saving rate of 40%. The IoT groupcontrol system, constructed in three phases, integrates the Internet of Things, edge computing,and AI algorithms to form a "1+1+9" public auxiliary management model. This achieves fullcoverage of group control for nine types of public auxiliary scenarios, including compressedair and central air conditioning. After optimization by intelligent control algorithms, the aircompressor and air conditioning systems have achieved energy-saving rates of 15% and 15.28%respectively, truly enabling "one-screen overview and global optimization."

Walking in step with energy e?ciency and compliance, safeguarding the long termthrough operations

Focusing on environmental compliance and risk prevention, the Base has simultaneouslyadvanced the automation upgrade of its wastewater station and the electronicmanagement of hazardous waste, solidifying the baseline for green operations. Theautomation upgrade of the wastewater station addressed pain points such as equipmentaging and inadequate monitoring, enabling linked management of wastewater andexhaust gas, early warning for excessive emissions, and improving wastewater treatmentefficiency and precise control. This generates an annual benefit of RMB 130,000, andwith plans to achieve self-operation and maintenance by 2027, it is expected to saveapproximately RMB 600,000 in management fees annually. The electronic management

Guanlan Base High-E?ciency Refrigeration Station Con?guration Diagram

Guanlan Base Industrial WastewaterTreatment Automation Control System

Advancing innovation and demonstration together, setting benchmarks across the industryGreen and low-carbon transformation cannot be achieved overnight. Guided by the concept of "whole-link low-carbon synergy," theGuanlan Base has broken through the limitations of single-link energy conservation, constructing a model of comprehensive digital coverageand forming a low-carbon operation model driven by both "technology and management." The project has a total cumulative investmentof RMB 6.39 million, reduces carbon dioxide emissions by approximately 1,196.4 tons annually, and lowers energy consumption andmaintenance costs by RMB 310,000. The relevant experience has been extended to other factories such as Zaozhuang and Chenzhou, as wellas other business units within the Group.

Thanks to its technological innovation and remarkable results, the project has been recognized as a National Green Factory and has receivedmultiple honors, including theHarvard Business Review'sAnnual Green Development Enterprise Award. It has also obtained two computersoftware copyrights and participated in the drafting of the *Group Standard for Industrial Arti?cial Intelligence Algorithms*. It has become areplicable "Green Factory" model for the pharmaceutical industry, providing a practical pathway for low-carbon development in the sector.

Guanlan Base Carbon Asset Management Platform System Diagram

We will continue to advance the upgrading of the integrated green, low-carbon and intelligent control project, deepen the deployment of air-conditioning Agents and the iteration of algorithms, develop an appointment module for the electronic management of hazardous waste,and strive to build a near-zero-carbon park. In accordance with the strategic plan for the 15th Five-Year Plan period, we will focus on safe andgreen development as well as digital and intelligent transformation, actively benchmark against world-class enterprises, explore integratedoperation and management of "energy–environment–carbon," and steadily advance toward the goal of carbon peaking.

Future outlook

Responsibility casesof hazardous waste, through whole-chain digital control, achieves paperless traceability from weighing and coding to reporting,resulting in a win-win situation for ecological and environmental protection and management e?ciency.

Responsibility case

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Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard aharmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Addressing climate change

The intensifying challenge of global warming and the cascading impacts of climate change are progressively transmitting from naturalecosystems to economic and social spheres, posing a direct threat to the human living environment and developmental security. Againstthis backdrop, actively addressing climate change and advancing the green and low-carbon transition have become imperative paths forenterprises to achieve high-quality, sustainable development. CR Sanjiu integrates the concept of green and low-carbon developmentthroughout its entire production and operation process. Through measures such as technological innovation, optimization of the energystructure, and improvement of production processes, the Company solidly advances its multi-dimensional carbon reduction e?orts. It alsopromotes the construction experience from the Guanlan near-zero carbon park project, continuously building a sustainable green ecosystem.

Resource and environmental issues are common problems facingmankind, and green development has become a globally acceptednorm. We actively respond to the climate change initiative ofthe Paris Agreement, effectively implement the national goalsof "carbon peaking and carbon neutrality," and improve ourcarbon emission management system in accordance with the"Requirements and Guidelines for Carbon Emission ManagementSystems." We developed documents such as "China ResourcesSanjiu Carbon Peaking Medium- and Long-Term Plan" and "China

Resources Sanjiu Carbon Emission Management Measures," and,referring to the Science Based Targets initiative (SBTi) approach,set greenhouse gas reduction targets for the 14th Five-Year Planperiod. At the same time, based on the TCFD framework, wesystematically identify risks and opportunities associated withclimate change, improve risk management strategies, standardizedata disclosure, and comprehensively enhance our capacity andresponse to climate change.

Strengthening climate governance

A strong governance framework and clear management responsibilities are key to an organization's ability to e?ectively address climatechange. We attach great importance to addressing the risks and opportunities associated with climate change, and have established athree-tier governance structure: Board of Directors—EHS Committee – EHS Management Department and other agencies, businesses, andsubsidiaries.Governance

In addressing climate change risks, we adhere to the principle of giving equal value to climate change mitigation and adaptation, whilesimultaneously enhancing the Company's short-, medium-, and long-term capabilities to respond to climate change. We also require ourbusinesses to develop action plans.Strategy

Mitigation

Adaptation

Optimize industrial structure and layout, follow resource conservation and e?ciency, optimize energy managementand energy use structure, continue to develop and utilize renewable energy, clarify energy and carbon reductiontargets , take six major actions for carbon peaking, build near zero / zero-carbon industrial parks , professionallydevelop the energy management system, continuously improve energy systems, improve energy information systemarchitecture, strengthen green and low-carbon capacity building, incorporate energy management performanceinto the performance evaluation of enterprises at all levels and energy management personnel and strengthenaccountability. Further explore e?ective measures to reduce energy consumption and greenhouse gas emissions.Strengthen monitoring of extreme weather, rapidly obtain weather information, establish and upgradecommunication systems with relevant government agencies, strengthen inspection and maintenance of equipment,facilities, and electrical equipment, develop emergency plans, form emergency teams, and immediately implementemergency plans to minimize damage. Investigate and breed traditional Chinese herbal medicines with goodenvironmental resilience and rich medicinal components, and promote their cultivation; Build photovoltaic-medicinal herb complementary projects, plant medicinal plants in shaded areas under photovoltaic panels to reducethe impact of high temperatures on plants.

We have developed a comprehensive risk management plan for climate change, covering all aspects of risk identification, analysis, andmanagement. To better understand the impact of policy change, market changes, and extreme weather events on the company's operations,and to more readily respond to di?erent scenarios, the company drew on Shared Socioeconomic Pathways (SSPs) at the IntergovernmentalPanel on Climate Change (IPCC) and public climate scenarios from International Energy Agency (IEA), and in line with the company's "dual-carbon" agenda, we selected two relevant scenarios: low-emission and high-emission scenarios, to examine the impact of major physical risksand transition risks on the company's operations. We used the IPCC SSP1-2.6 and SSP5-8.5 scenario models to evaluate potential physical riskswith the IEA 2050 Net Zero Emissions (NZE) and Stated Policies Scenario (STEPS).

Climate risk assessment

Physical riskTransition riskSSP1-2.6(Low-emission scenario)

SSP5-8.5(Very high-emission scenario)

NZE(Net Zero Emissions by 2050 scenario)

STEPS(Stated Policies Scenario)This scenario sets up anideal scenario in whichglobal CO

emissionsreach net zero byaround 2050.

This scenario mimics afuture in which economicgrowth depends largely onenergy-intensive industries,with virtually no policyconstraints.

This scenario assumes the possibilityand impacts of achieving global net-zero greenhouse gas emissions by2050. Under this scenario, countrieswill introduce stringent policies,increase the adoption of energy-savingtechnologies, and reduce reliance onfossil energy.

This scenario assumes thetrends of energy demandand supply withoutconsidering the introductionof any new policies ormeasures.

Physical Risks: The company's operations may be a?ected by frequent severe weather events and rising average temperatures.Climate resilience assessment

Contextual driversPotential Impacts

Frequent extreme weather events: Heavy rainfall can

lead to hazards such as surface water accumulation,?ooding, and landslides, which can adverselya?ect industry production and e?ciency, as well astransportation and logistics.

Increasing average temperatures: With rising averagetemperatures, businesses need to invest heavily toensure and maintain an appropriate level of productionand work.

Extreme rainfall events have become more frequentand intense, increasing the likelihood of ?oods andwaterlogging, especially in low-lying industrial areas.This increases the risk of instability in the company'sproduction operations and supply chain logistics , as wellas increases the risk of asset loss, resulting in higher costs.

Increasing average temperatures can increaseplant operating costs, such as increased electricityconsumption and infrastructure maintenance costs.

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Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Transition Risks: Under the in?uence of low-carbon transition-related risks, the company faces transition-related risks primarily dueto increased e?orts in low-carbon practices across regions, including tightening of low-carbon transition policies and developmentand implementation of low-carbon technologies.

The Company anticipates heavy rainfall and ?ood risks and has developed emergency plans, including specialized ?ood control andlightning protection measures. At the same time, the company is constantly improving the design of ?ood drains and improving theconstruction of defences. The company has not yet faced signi?cant compliance pressure and experienced few operational or supplydisruptions due to severe weather. To meet future challenges, the company will continue to improve its climate change responseinitiatives, strengthen disaster early warning and response mechanisms, and promote the use of sustainable procurement practicesto ensure its continued sustainable operations. Furthermore, we will continue to assess key climate risks and opportunities upstreamof the value chain, understand their critical impact on CR Sanjiu production and performance, strengthen climate resilience in theindustry value chain, select and breed high-quality traditional Chinese medicinal herb varieties with strong environmental toleranceand rich medicinal components, and promote their cultivation, follow the principles of genuine herbal cultivation and germplasmand seed-source conservation, and ensure su?cient growth of herbal plantations for several years before harvest to assure adequatemedicinal components.

To manage transition risks, we proactively identify and monitor relevant policy requirements, strengthen carbon emissions controls, andcontinue to develop and implement energy-e?cient and carbon-reducing technologies. We improve production e?ciency and energye?ciency by optimizing existing processes and implementing new production technologies; boost production energy e?ciency throughintelligent control equipment, reduce electricity losses, and retro?tting low-energy equipment; implement energy savings and carbonreduction management through condensate recovery, installation of piped heat exchangers, air compressor waste heat recovery, andboiler waste heat recovery ; more e?cient use of excess energy at various levels; and build and optimize an energy data managementsystem to implement re?ne energy management.

Contextual driversPotential impactsLow-carbon transition regulations and policies arebecoming increasingly stringent: With national carbonpeaking and carbon neutrality goals, carbon reductionpolicies for the pharmaceutical industry are becomingincreasingly stringent.

Low-carbon technology development anddeployment: As the industry transitions to a low-carbon

mechanism, the demand for equipment upgrades andthe development and deployment of energy-e?cient andcarbon-reducing technologies increases.

When various carbon reduction laws and policiesare proposed and enforced, the company may incurincreased operational costs in order to meet compliancerequirements, such as increased costs for purchasingtrading allowances as a result of its inclusion in thecarbon trading program.

Increased costs resulting from improvements inenergy-intensive equipment and the development oftechnologies that reduce energy consumption andreduce emissions.

Based on climate change risk scenario analysis and using intuitive experience-based analysis method, and based on past observedclimate risks, we fully considered factors such as industry trends, market changes, technological advances, local policy guidelinesand geographies, and extreme weather events. This designation is integrated with the company's overall risk management strategyto enhance the performance of climate change risk management across the entire value chain . The climate transition risks we faceinclude physical risks and transition risks. The key climate transition risks and corresponding strategies are shown in the table below.

Climate change risk list

CR Sanjiu 2025 Climate Change Risks and Response Strategies

Risk TypeRisk descriptionResponse strategies

Timehorizon

Physicalrisk

acute risk

Due to the impact of global warming,climate instability has increased, withmore frequent and intense extremeweather events. Extreme weatherconditions can cause health problems,injuries, and disruptions in productionand transportation, which can a?ectthe company's normal operations andcause changes in the value chain, suchas supply chain and business demand,resulting in direct or indirect losses.

Provide timely warnings of natural disasters,strengthen disaster prevention and responsesystems, and establish coordinated emergencyresponse measures for polluted weather.Require all relevant units to prioritize disasterprevention and response, with enhancedmanagement focused on key areas includingbuildings/structures, new/renovation/expansionprojects, and warehousing/logistics, to ensuree?ective disaster preparedness and avoidance.

Long term

chronicrisk

Sustained high temperatures canreduce yields and complicate herbconservation, potentially increasingprocurement and labor costs.

Analyze arti?cial herb cultivation methods,summarize and develop technical guidelines,promote cultivation of herbs in their authenticenvironments and conservation of geneticresources, and select suitable sites forcultivation.Build a photovoltaic-medicinal plantcomplementary project, planting medicinalplants in shady areas under photovoltaic panelsto reduce the e?ect of intense heat on the plants.

Long term

As pharmaceutical production andstorage require low-temperatureconditions, more energy will beconsumed under warming scenarios,increasing operating costs.

Encourage energy-saving retro?ts of airconditioning systems, such as the use of moreenergy-e?cient permanent magnet synchronousvariable frequency centrifugal water storagedual-condition units.Encourage industrial construction of rooftopphotovoltaic power generation projects.Installation of solar panels in the roof can reducethe temperature in the factory building to someextent.

Medium

term

Transition

risk

law risk

Risk of non-compliance arisingfrom more stringent environmentalprotection and carbon emission laws,regulations, standards and policies.

Strengthen the study and analysis of laws,regulations, standards and policies, and activelycommunicate and network with relevantgovernment agencies.

Long term

policy risk

The "dual carbon" program will directlya?ect the company's environmentalprotection investment and indirectlya?ect its product portfolio, productioncapacity, and scale. To achieve theParisAgreement'sgreenhouse gas emissionsgoals, domestic and internationalgovernments are progressivelymodifying carbon emissions tradingcontrol systems and controlling allcarbon emissions. Expected increasesin greenhouse gas costs, combinedwith the shrinking number of carbonallowances issued by governments,will require the underlying key carbonemitting units to purchase more carbonallowances or CCERs to meet theirobligations, increasing operating costs.

Strengthen study and research on relevantpolicies and procedures, maintain e?ectivecommunication with government o?cials, befamiliar with state and local carbon tradingstrategies, and conduct timely carbon trading.Promote the experience of CR Sanjiu Guanlan'snear-zero carbon industrial park project acrossbusinesses, and encourage businesses to buildnear-zero/zero carbon industries.Encourage eligible business units to collaboratewith specialized institutions to developdemonstration projects for carbon sinks inmedicinal herb cultivation, and to conductresearch on corresponding carbon sinkmethodologies and standards.

Long term

HumanResourcesrisk

With a shortage of skilled professionals,the Company needs to invest morepeople and money in reducing carbonemissions.

Strengthen carbon emissions managementtraining, assign dedicated sta?, and be e?ectivein developing carbon emissions managementplans, managing carbon assets, and tradingcarbon.Establish a database of experts and collaboratewith research institutes, organizations, and third-party institutions to conduct research on carbonreduction.

Long term

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Risk TypeRisk descriptionResponse strategies

Timehorizon

Transitionrisk

technologyrisk

Additional operating costs that may arisefrom replacing and upgrading outdatedtechnologies that have signi?cantnegative impacts on climate change.

Encourage participation in the formulation ofgreen manufacturing standards, the applicationfor green manufacturing-related patents, andthe evaluation of green products and jointlyexplore and research energy-saving andemission-reduction equipment with specializedinstitutions, and promote the upgrading of suchequipment.Vigorously promote intelligent manufacturingand, through the integration of industrializationand informatization, equipment upgrading,and scienti?c scheduling, realize continuousmanufacturing of major product varieties, furtherimproving production capacity and energye?ciency.Continue to implement energy-savingtechnological transformation. Promote theapplication of new energy-saving technologies,processes and equipment, improve relevantincentive systems, promote green technologiesand products, and support the development ofgreen and low-carbon industries.

Long term

market risk

Consumers' preference for greenproducts can lead to changes inconsumer preferences.

Encourage all businesses to actively practicegreening in the factory area, build a "gardenfactory", and invite communities, schoolsand consumer groups to visit the factoryenvironment.Pharmaceutical manufacturers adopt greenpackaging, which requires packaging to meet reuse,reuse, and recycling requirements; and promoteresearch and development of green packagingthrough the business unit - Jiuxing Printing.Promote green and low-carbon transportationby collaborating with logistics partners toexplore scienti?c dispatch methods, optimizetransport structures, and reduce intermediatelinks and ine?cient shipments. Advocate for theadoption of alternative clean energy sources,prioritize the replacement of fuel-poweredvehicles with new-energy vehicles, cut fuelconsumption, enhance logistics e?ciency, andcontribute to carbon reduction goals.

Long term

reputationrisk

Investors are increasingly concernedabout climate risk response measurestaken by investee companies and non-compliance with industry requirementscan damage a company's reputation inthe investment market.

Stay informed of key investor concerns andmarket trends. Guided by our mission of"Caring for Public Health, Creating a Better LifeTogether," we go beyond providing high-qualityhealth products. We are committed to enhancingpublic health literacy, shouldering broader socialresponsibilities, and implementing the "HealthyChina" strategy across multiple dimensions.Regularly identify climate-related risks andopportunities, and re?ne our response measures.We actively support the climate goals of theParis Agreement, thoroughly implement thenational "dual carbon" targets, and collaboratewith upstream and downstream partners toful?ll our shared responsibility for ecological andenvironmental protection.Leverage occasions such as World EnvironmentDay, Energy Conservation Awareness Week, andNational Low-Carbon Day to conduct awarenesscampaigns. We actively participate in relevantpromotional and training activities organizedby government departments and professionalassociations. The Company also disclosesits climate change response information in atimely manner through its o?cial website andplatforms like Sina Finance and social media,showcasing CR Sanjiu's positive image in greenand low-carbon development.

Long term

Impact, risk and opportunity management

CR Sanjiu 2025 Climate Change Opportunities and Response StrategiesType of opportunityOpportunity descriptionThe Impact of opportunityTime horizon

Resource e?ciency

Recycling and reuse of waste to furtherachieve waste reduction and resourcerecovery.

Reduce operating costs.longUse the most e?cient productiontechnologies and methods.

Increase productivity and increase

revenue.

longReusing greywater and reducing waterconsumption.

Reduce operating costs.long

Energy substitution

Clean energy and renewable energyalternatives.

To reduce the risk of future increases infossil fuel prices, reduce reliance on fossilfuels, and reduce operating costs.

By 2060Promote experience in developing near-zero/zero-carbon parks and explore CCERproject development.

This reduces the risk of greenhousegas emissions, thereby reducing theirsensitivity to changes in carbon tradingprices.

By 2060

Climate change risk managementDrawing on COSO's internationally recognized risk management framework and combining it with operational needs, we developed a top-down "three lines of defense" risk management framework, which clearly de?ned the organizational structure and allocation of responsibilitiesfor climate change risk management. Based on documents such as theChina Resources Sanjiu EHS Hazardous Source Management Measures

and theChina Resources Sanjiu Environmental Risk Classi?cation and Grading Evaluation Measures, we established a standardized climatechange risk management. The company conducts risk management through a "six-step approach" of risk identi?cation, risk assessment, riskresponse, risk monitoring, risk evaluation, and risk reporting and implements a structured management model of "?rst identi?cation, businessself-management, and follow-up audit oversight."Opportunity managementWe identify opportunities for climate change from the perspectives of resource e?ciency and energy substitution, and analyze their impacts, asdetailed in the table below.

Carbon peaking initiativeWe actively implement national "carbon peaking and carbon neutrality e?orts" strategies, and have drafted laws such as theChina ResourcesSanjiu Energy Resource Conservation Management Measures and the China Resources Sanjiu Carbon Emission Management Measurestoregulate and guide system-related energy consumption and carbon reduction implementations. We encourage all levels of our companiesto incorporate carbon efficiency and carbon neutrality into all aspects of business development and production activities, focusing onimplementing the "Six Major Actions for Carbon Peaking" and taking more action to address energy conservation and carbon reduction.

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Green energy development and alternative usesActively promote the development, replacement, and deployment of green energy, and coordinate the development and constructionof distributed photovoltaic projects by quali?ed businesses to improve renewable energy utilization rate. By 2025, we will continueto promote renewable energy development and deployment through facilities such as Chenzhou Sanjiu, Shenyang Sanjiu, KunmingPharmaceutical Company, China Resources Jinchan, and Guanlan Base through energy storage contracts, photovoltaic (PV) project(s)construction, and grid connections. Currently, photovoltaic (PV) project(s) at Chenzhou Sanjiu, Shenyang Sanjiu, and Guanlan Basehave been completed, while those at other facilities are under construction.In 2025, CR Sanjiu's total renewable energy consumption reached 83.6827 million kWh, of which 12.5813 million kWh was generatedand consumed on-site.

We will actively promote the innovative application of low-carbon, zero-carbon andnegative-carbon technologies.This is achieved by continuously intensifying energy-saving and carbon reduction retrofits, which include implementing energy-e?cient power system upgrades, enhancing lighting and intelligent control systems, upgrading waste heat recovery systems, phasingout obsolete production capacity, optimizing process technologies, and improving energy management measures. These effortscollectively serve to e?ectively enhance our energy utilization e?ciency.

Accelerated development of the carbon asset management systemCR Sanjiu actively established and improved its carbon asset management system, designed a systematic carbon emissions management,and comprehensively enhanced the company's carbon emissions management work. Companies in the carbon trading market have beensupervised to ensure compliance. Guanlan Base, China Resources Jiuxin, Jiuxing Printing, and Tasly Modern Chinese Medicine completedthe preparation and veri?cation of carbon emissions reports in a timely manner, and the quality of the data met the requirements. They alsoful?lled their obligations on schedule by prioritizing the use of carbon allowances, coupled with carbon trading. China Resources High-Tech wasremoved from the list of key emission entities this year.

Case StudyChina Resources Benxi Sanjiu Pharmaceutical Co., Ltd. and China Resources Power have jointly developed a distributedphotovoltaic power generation project. The 1712.16kW distributed photovoltaic project was constructed using the roof of one colorsteel-tile workshop, three concrete roofs, and two parking lots (newly constructed newly built PV carports). It is fully connected tothe grid and commissioned in 2025. By 2025, total energy generation reaches 1.79 million kWh, of which 1.72 million kWh is self-generated and self-consumed, achieving an autonomous energy e?ciency of 95.81%. This saved 566 tonnes of conventional coaland reduced carbon dioxide emissions by 1,472 tonnes.

Case Study

Kunming Pharmaceutical Group has upgraded the hardware and software of air-conditioning units in its oral product line. Throughkey measures such as replacing valves and steam traps, welding repairs, partial replacement of damaged steam/condensatepipelines of the air-conditioning units, and optimization of the air-conditioning control mode, it achieved energy savings andconsumption reduction. Important results: 8% reduction in single regenerative heating power, saving 55,200 kWh of electricity peryear (equivalent to 30,000 yuan), reducing daily steam discharge by 0.2 tons, and saving 16,000 yuan in annual heating costs.

TargetCurrent developments

Between 2021 and 2025, the intensity of carbon dioxide emissionswill decrease by 2% per year. By 2025, this index will be 10% lowerthan the 2020 baseline of carbon dioxide emission intensity.

In 2025, greenhouse gas emission intensity was

0.1398 tCO

e/RMB10,000, which is 39.27% lowerthan the 2025 target value.From 2021 to 2025, total energy consumption per additional10,000 yuan will decrease by 1.6% per year. By 2025, this index willbe 8% lower than the baseline of total energy consumption per10,000 yuan of 2020 value added.

Total energy consumption per 10,000 yuan ofvalue added in 2025 (at normal prices) is 0.1019(tons of standard coal/RMB10,000), which is 7.2%lower than the 2025 target.By 2027, CR Sanjiu will further improve the management systemsand mechanisms for energy conservation and environmentalprotection as well as carbon peaking and carbon neutrality,advance green and low-carbon development, make majorprogress in energy structure adjustment, gradually formgreen production and lifestyle, and fully complete the energyconservation and emission reduction assessment targets for the2025–2027 term assigned by the Company.

The Company's energy consumption andemissions benchmark targets for 2025-2027 havebeen successfully achieved.

The proportion of green factories will reach 45% by 2027-2028; and60% by 2029-2030.

Currently, there are 9 national-level greenfactories, 4 provincial-level green factories, and 5municipal-level green factories.

Metrics and targets

In response to the country's "carbon peaking and carbon neutrality" strategy, CR Sanjiu has established and routinely implements agreenhouse gas inventory and veri?cation methodology, based on the Science Based Targets initiative (SBTi) approach and relevantnational, local, and industry regulations. For several consecutive years, the company has conducted comprehensive carbon emissionsdata inventory and verification, and has built a traceable and verifiable carbon emissions data system. This provides robust datasupport for phasing in emissions reduction targets, monitoring the effectiveness of measures, and transparent disclosure of climateinformation, ensuring that emissions reduction targets are anchored to scienti?c baselines, actions are measurable, and results aretraceable.

Case Study

In June 2025, China Resources Sanjiu ZaozhuangCompany hired a third-party verification body to perform acomprehensive audit of the company’s product carbonfootprint (CFP) within its accounting boundary. The CFP auditreport was based on a full product life cycle, which assessedthe environmental impact of the product throughout itslifecycle and thus enabled corresponding measures to reduceemissions. Through audit and statistical analysis, four ofthe company's products—Cold Relief Granules, Isatis RootGranules, Children's Cold Granules, and Cold and Fever ReliefGranules—met the requirements of ISO 14067:2018.

Ganmaoling Granules Product Carbon Footprint Certi?cate

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard aharmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Improving environmental management

Improve the environmental management system

CR Sanjiu strictly complies with the requirements of applicable laws and regulations such as the People's Republic of China EnvironmentalProtection Law, the People's Republic of China's Water Pollution Prevention and Control Law, and the Republic of China's EnvironmentalImpact Assessment Law. It actively implements the Building a Beautiful China strategy, continually improves its environmental managementsystem, establishes an e?ective full-service control system from source prevention to end-of-pipe treatment, strengthens environmentalaudits and early risk warning, thereby laying a solid foundation for green development and supporting CR Sanjiu's high-quality sustainabledevelopment.

We are committed to establishing a scientifically sound,systematic, and e?ective environmental management system, andwe encourage our companies to actively pursue certification ofenvironmental management and energy management practices.We strengthen emergency management for environmental

disaster emergencies, coordinate regular emergency drills forenvironmental incidents, enhance ecological and environmentalconservation e?orts, reduce environmental damage and pollutionlosses, and improve our ability to prevent and respond toenvironmental pollution incidents.

Key performance indicatorsAt the end of the Reporting Period,

subsidiary companies have passed ISO 14001 certi?cation

of our facilities have achieved green facility certi?cation

subsidiary companies have passed ISO 50001 certi?cation

have been achieved

emergency EHS drills were conducted in 2025.

including

Pollutant and greenhouse gas reduction targets for 2020–2025

at the state level,

at the provincial level,and

at the municipal level

We place a high value on ecology and environmental stewardship, establishing a three-tier governance structure: Board ofDirectors – EHS Committee – EHS Department and other departments, business divisions, and subsidiaries. By 2025, in linewith the company's "One Body, Two Wings" strategic plan, we will optimize the EHS management model, enhance the EHSCommittee, add appropriate sta? from Tasly and Kunming Medical Group, create integrated management.

Environmental management partnership structure

We continue to improve our environmental management system, covering multiple aspects, including EHS program building andquality (including environmental protection), EHS committee management, EHS culture building, legal and regulatory identi?cationand compliance management , EHS risk source management , risk classi?cation and identi?cation control, energy conservationand environmental protection management, pollutant prevention and control, and project implementation management, EHSdepartment "three simultaneities" management, supervision and monitoring, EHS demonstration base management, carbonemission management, risk and incident management, performance evaluation, and more.

Environmental management policy

We have developed and implemented relevant measures such as the "China Resources Sanjiu EHS Hazard SourceManagement Measures" and the "China Resources Sanjiu Environmental Risk Classi?cation and Grading Evaluation Measures"to strengthen the management of key EHS hazard sources. We monitor each business unit on a monthly basis to ensureaccurate compliance with containment requirements, assign top ten risk sources to the critical phase of monitoring based onrisk classi?cation management rules, and regularly report on the status of our company's EHS risk source management. At thesame time, we have combined "China Resources Sanjiu Pollutant Prevention and Control Management Measures" and "ChinaResources Sanjiu Energy Conservation and Ecological Environment Protection Supervision and Management Measures" tomonitor and regulate our subsidiaries in ful?lling their primary responsibilities front.

Environmental risk management

To improve environmental incident response performance, we developed and implemented policies such as "China ResourcesSanjiu's Comprehensive Environmental Emergency Plan" and "Detailed Rules for EHSQ Incident Management at ChinaResources Sanjiu." Our subsidiaries, based on central o?ce policies, rules, relevant policies, standards, and policy documents,and in line with their own unique circumstances, developed and submitted their own environmental emergency plans to localecological and environmental authorities. We conduct regular emergency drills, training, and investigations. By 2025, a total of696 drills have been conducted, with 18,403 participants, signi?cantly improving the skills of the workforce.

Improve emergency mechanisms

We are implementing the EHS basic capacity enhancement project and have developed the "China Resources Sanjiu (Youyang)Pharmaceutical Safety Improvement Support Program (2025)". The annual grant was completed on schedule and resultswere achieved. Seven units have launched the digital platform for the dual prevention mechanism, strengthening the EHSmanagement foundation and improving the level of EHS management.

EHS improvement project

In 2025, senior managers and employees participated in China Resources Group's 2025 Environmental and EnvironmentalProtection Personnel Capacity Training and Certi?cation Programme. Trainees were supervised to complete the training andcerti?cation in a timely manner. There were 115 participants, of whom 110 passed the examination and obtained quali?cationcerti?cates, with a certi?cation rate of 96.65%.

Conducted environmental protection training

3839

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

To fully improve environmental management and prevent environmental risks, we continuously improve our environmental auditwork, develop and implement appropriate environmental audit policies, conduct regular internal and external environmentalaudits, strengthen construction environmental audit, classify and coordinate environmental risk factors, and use EHS informationmanagement system to realize closed-loop tracking of corrective actions for hidden risks through the EHS information managementsystem, thereby we e?ectively improve the level of risk prevention.

Environmental audit

Establish environmental audit policiesTo standardize environmental compliance evaluation and potential hazard investigation, CR Sanjiu has formulated anenvironmental audit system and adheres to theCR Sanjiu EHS Supervision and Management Measures,theCR Sanjiu EHSHazard Source Management Measures.It classifies and manages environmental risks in accordance with theMeasuresfor Classifying and Grading Environmental Risk Assessment Environmental Risk Classification and Grading EvaluationMethodology.Additionally, subsidiaries and business units have formulated supporting regulations, including the EHSManagement Compliance Evaluation System and theEHS Hidden Risk Investigation and Remediation System.Internal environmental audits

We conduct annual internal environmental audits, covering 100% of our production-oriented subsidiaries by 2025. Regardingemergency management, safe operation of environmental protection equipment and facilities, solid waste management, energyconservation and environmental qualification certificates and procedures 10 environmental hidden hazard inspections, andenhances environmental hazard classi?cation and control. We have designed speci?c environmental remediation measures andwarning training for businesses in the business units located in the regions covered by the third round, fourth and ?fth batches ofCentral Environmental Protection Inspections. We have statistically analyzed and guided enterprises on the use of environmentalprotection equipment and monitoring equipment to ensure the equipment is operating safely and stable. In 2025, the carbonfootprint has been included in internal environmental audits. The Compound Dexamethasone Acetate Cream manufacturedat the Guanlan plant has been awarded the ISO 14067:2018 product carbon footprint certi?cation, making it the ?rst CR Sanjiuproduct to receive this relevant international carbon footprint certi?cation.External environmental auditIn 2025, we conducted external environmental audits covering subsidiaries at all levels, including commissioning third partiesto conduct environmental risk assessments and compliance evaluations, providing support in the inspection of automaticmonitoring equipment and the management of environmental protection facilities, government-led clean productionaudits, greenhouse gas emissions report veri?cation organized by the competent ecological and environmental authorities,and online and offline environmental audits with environmental officials at all levels. At the end of Reporting Period, 21subsidiaries enterprises have conducted cleaner production audits, 15 of which are voluntary.Environmental protection management of construction projectsWe have programs such as "China Resources Sanjiu Energy Conservation and Environmental Protection Monitoring andControl Measures," "China Resources Sanjiu Pollution Prevention and Control Management Measures," and "China ResourcesSanjiu Construction ‘Three Simultaneities' Maintenance Measures," specifying that new, specifying that new, renovation andexpansion projects must conduct environmental analysis, risk assessment and environmental impact assessment, and obtain EIAapproval. During project implementation, we conduct "three simultaneities" monitoring, strictly enforce the pollution preventionand control measures outlined in the environmental impact assessment and approval documents, and conduct completionenvironmental protection acceptance and ?ling upon completion. We legally obtain all quali?cations, licenses, and regulationsspecified by the local authority, ensuring that they are within their validity cycles. In 2025, we reviewed 11 environmentalengineering subprojects and other environmental protection projects covering new, renovated, and expanded projects.

To solidify the foundation of green development and build consensus on ecology and environmental sustainability among allemployees, we adhere closely to eco-culture building requirements, aiming to actively instill environmental ideas in everyone, withregular multi-sector environmental publicity and education. We innovate public outreach and education, improve communication,and closely integrate environmental knowledge with practical action, e?ectively promote environmental responsibility awareness andthe work ethic of all employees, promote the transformation of environmental knowledge into rational action responsibilities of.

Conduct publicity and education

Case study: china resources benxi sanjiu pharmaceutical co.,ltd. conducts energy conservation andemissions reduction training

Energy Conservation Training at China Resources Benxi Sanyao

China Resources Benxi Sanjiu Pharmaceutical conductedgeneral knowledge training for its employees, including energyconsumption and emission reduction training, achieving100% employee coverage. This has allowed energy e?ciencyand environmental education to reach every person,creating a new green and low carbon corporate cultureand continuously strengthening employees' knowledgeof environmental protection and carbon reduction. OnNational Low Carbon Day, the company showcased itsaccomplishments in energy and low carbon performancein recent years, covering aspects such as deploying newenergy technologies and completing energy and emissionsreduction targets. At the same time, all employees watchedthe 2025 National Low Carbon Day promotional video, whichpopularized professional knowledge of energy e?ciency and

low carbon practices, and disseminated relevant nationalpolicies and procedures and the company's specific energyand low carbon initiatives.

Case study: china resources shunfeng conducts energy conservation report week and low carbon dayactivities in 2025

China Resources Shunfeng Industrial Park

From June 23 to June 29, 2025, the company held 2025 Energy Awareness Week and National Low-Carbon Day activitiesunder the themes of " Energy Conservation and E?ciency, Leading the Way and Innovating " and " Carbon Pioneers, GreenFuture," respectively, creating a strong atmosphere of energy conservation and low-carbon practices and enhancingemployees' awareness of ecological and environmental protection. Promotional posters and instructional videos weredisplayed through the company's LED electronic displays, employee rest areas, employee canteens, WeChat groups,and work groups to broadcast and raiseenvironmental awareness, disseminateenvironmental concepts, improve energye?ciency, establish and champion the actionprinciple of "breathe together and strivetogether." cultural, economic, green, and low-carbon chapter policies and lifestyles.

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Environmentally friendly operationsThe harmonious balance of nature is the life giving fertility and survival of countless life forms, and is the foundation for the sustainabledevelopment of human civilization. We always hold nature in awe, acutely mindful of our responsibility to protect the ecosystem, follow eco-friendly principles, and through various measures such as optimizing resources, reducing pollution and waste, and conserving biodiversity.Optimize resource utilizationWe place a high value on resource management and arecommitted to developing a production and operations modelthat is resource e?cient and circular. This happens by promotingwaste recycling, managing watersheds, and promoting green

o?ce practices, which maximize the recycling of various resources.By 2025, the proportion of renewable energy in China ResourcesSanjiu's total energy consumption increased to 8.19%.

CR Sanjiu focuses on strengthening resource utilization throughout the production process and actively promotes circular economicpractices. For various manufacturing resources, such as pharmaceutical herbal residues, packaging waste, and industrial wastewater, itmaximizes resource value and reduces environmental impact through scienti?c measures such as legal cooperation, contract recycling,and recycling, thus helping to create production and operations model based on resource recycling.

Circular economy

We have developed programs such as theChina Resources Sanjiu Energy Conservation and Environmental Protection Monitoring andControl Measuresand theChina Resources Sanjiu Energy Natural Resources Conservation Management Measures.Each branch hasdeveloped detailed manuals based on headquarters documents, applicable laws, policy, standards, and their own unique circumstances toguide management of water and other resource conservation. We have improved watershed recycling rates through a number of measures,including reducing freshwater use, regulating operational water use, and promoting reclaimed water and cooling water recovery and reuse.We have set a target to reduce freshwater consumption per 10,000 yuan of output value by 2% year-on-year, using 2020 (2.4668 t/10,000yuan) as the baseline. In 2025, we routinely tested rainwater and groundwater, and water quality met standards during the Reporting Period.

Water resources management

Comprehensive utilization of Chinese medicinal herbal residues.

After the production and supply of raw materials, China ResourcesBenxi Sanjiu Pharmaceutical Company generates remainingherbal residues (herbal dregs). In accordance with the relevantprovisions of theCivil Code of the People's Republic of China andthe Environmental Protection Law of the People's Republic of China,an agreement was signed with the Xianwen Family Farm in HailangTownship, Fushun County, to use the residue to feed cattle andsheep. In 2025, 3,804 tonnes of traditional Chinese medicine residueswere processed in 2025.

Waste packaging is recycled and reused. ChinaResources Sanjiu Zaozhuang Company signeda "Paper Box Turnover Box Recycling and ReuseAgreement" with its suppliers, which enablesturnover boxes containing medicine boxes to berecycled, sorted and returned to suppliers forpost-use, ensuring a green circular operation. Thiscould save nearly 3,200 traditional corrugatedpaper turnover boxes each year and generate thecompany 3,200 yuan a year.

Industrial wastewater reuse. The Company reuses treated, compliant industrial wastewater for makeup water in exhaust gas treatmentspray tower, collects rainwater for irrigation in plant area, reuses boiler condensate for boiler feedwater, and uses wastewater generated bythe puri?ed water production equipment for makeup water in circulating cooling tower and exhaust gas treatment spray tower, therebymaximizing water conservation.

We actively promote green office practice, and help our companies develop a positive corporate culture of resource and energye?ciency. Through initiatives such as actively promoting paperless o?ce operations, strengthening o?ce asset management, andreducing o?ce energy, we guide employees to incorporate green and low-carbon concepts into their daily routines and lives.Promote paperless office practices. Actively promote information technology development, develop OA programs, Rmeetvideoconferencing, and online training. Most office work can be completed with these systems, greatly improving productivity.Advocate for and promote paperless o?ce processes within the company to reduce paper use and waste; o?ce documents can beedited and emailed.

Strengthen o?ce supplies management. Improve purchasing, ordering and standardizing o?ce supplies to extend their life. Do not useo?ce supplies and equipment made of wood; encourage a?orestation; actively carry out factory greening and build a "garden factory"to provide employees with a healthy, green work environment.

Reduce o?ce energy consumption. Turn o? computers, printers, fax machines, etc. immediately after work to reduce electrical waste.Replace lighting in low-light areas, such as corridors and hallways, with low-energy lighting, and have property managers turn them o?immediately after work to save electricity.

Promote green o?ce practices

Key performance indicatorsAt the end of the Reporting Period,

20,283

training participations in environmental protection

participations in environmental public welfare activities

467,000person-times

1,212,128

32,900

video conferences

Rmeet has conducted more than

Total participants reached

492,000hours

Total meeting duration

12,071people

Environmental protection training reached

cloud documents created

287,018hours

of environmental protection training

4243

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard aharmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Hazard types and descriptionsPotential economic impact

Opportunity types anddescriptions

Potential economic

impactWith increasingly stringentenvironmental regulations,companies may face penaltiesor legal action for exceedingemissions standards, increasingtheir costs.

Market con?dence is damagedBrand value declines Revenues and pro?ts decrease

Green and environmentallyfriendly products andcorporate images are likely togain social popularity, thusincreasing market share.

Increase operatingincome and pro?tability

Pollution prevention and control. Pollution prevention andcontrol. Headquarters and enterprises at all levels formulateself-monitoring plans at the beginning of each year. Someenvironmental protection sites are equipped with automatedemission monitoring equipment, with monitoring data uploadeddirectly to the monitoring platform of the competent ecologicaland environmental authority. Environmental protection facilitiesthat do not have automatic monitoring equipment in theiremissions conduct self-monitoring according to a self-monitoringprogram.Industrial Solid Waste Management. Common solid waste isdivided into recyclable and non-recyclable materials. Recyclablesolid waste is sold to processing companies for processing and

reuse; quali?ed third-party facilities collect and dispose of non-recyclable industrial solid waste.

Hazardous waste management. In managing and managinghazardous waste, we must strictly adhere to compliancerequirements throughout the system : disposal must be doneby facilities with a hazardous waste management license; thetransfer process implements the electronic transfer manifestsystem to ensure full traceability; at the time of storage, itmust be stored in designated facilities properly labeled andadministrative documentation established; in the disposalsystem, devolved entities are required to operate in accordancewith the terms of their respective license areas and are strictlycontrolled to ensure compliance throughout the system .

Reduce pollution and waste dischargesWe practice the concept of green development and are committedto managing and reducing wastewater, waste gases, industrialsolid waste, noise and new pollutants from production and

operations, so as to minimize the negative environmental impactof our own operations.

We strictly comply with theEnvironmental Protection Law of the People's Republic of China, theLaw on Air Pollution Preventionand Control of the People's Republic of China, and theSolid Waste Pollution Prevention and Control Law of the People's Republic ofChina. We developed theChina Resources Sanjiu Pollution Prevention and Control Measuresand theChina Resources Sanjiu EnergyConservation and Local Environmental Protection Monitoring and Control Measures, which are used to guide and regulate pollutionprevention and control work by headquarters and facilities at all levels, including industrial solid waste, noise and new pollutants, andavoid environmental pollution.

Governance

We perform pollution prevention and control activities in accordance with relevant regulations and documents such as theChinaResources Sanjiu Pollutant Prevention and Control Management Measuresand theChina Resources Sanjiu Environmental RiskClassi?cation and Grading Assessment Measures, strictly comply with various management requirements.

Impact, risk and opportunity management

In accordance with the requirements of theSASAC Notice on Accelerating Green Development of Central Enterprises and Promotingthe Building of a Beautiful China and relevent work plans, we have developed the CR Sanjiu Work Plan for Accelerating GreenDevelopment and Promoting the Construction of a Beautiful China.Strategy

Risks, Opportunities and Potential Impacts Related to Pollution and Waste Prevention and Control

Case study:guanlan base establishes a comprehensive and advanced pollution prevention andcontrol programHigh-e?ciency treatment plants for major pollutants are installed at the Guanlan facility. For wastewater treatment, thewastewater treatment plant uses a combined "ABR anaerobic + aerobic contact oxidation" process, which boasts highe?ciency and strong impact resistance. Key facilities include high-e?ciency air suspension blowers, dissolved air ?otationunits, and plate-and-frame ?lter presses, allowing full automated control of the entire process. E?uent quality is monitoredin real-time by an in-depth online monitoring system, which consistently meets standards without exceeding prescribedemission limits. For emissions treatment, a variety of processes, including water ?ltration, bio-trickling ?ltration, activatedcarbon adsorption, and UV photolysis, are used to treat volatile organic compounds (VOCs) and particulate manufacturingemissions, resulting in a multi-step cleaning process. All emissions outlets are equipped with online emission monitoringequipment, allowing for full control and 24/7 monitoring. Monitoring data showed that exhaust gas emission concentrationsconsistently meet national and local emission standard requirements.

Case study:enhancement of environmental protection systems and strict adherence to conservativepractice standardsIn 2025, all of China Resources Sanjiu's environmental protected facilities were functioning properly, with all pollutantsmeeting emission standards and all emission indicators complying with national and industry standards. Speci?cally, CODand ammonia nitrogen concentrations in the wastewater discharge met national standards. However, some businesseshave experienced odor dispersion issues in their wastewater treatment plants. To address this, all ponds in the wastewatertreatment plants were fully lined with reclaimed membranes, and waste gases were collected via special pipes andcentrally treated with a biological deodorization process, signi?cantly reducing odor emissions. Moreover, the existing VOCstreatment facilities of some commercial companies in their laboratories, using the photo-oxidation + activated carbonprocess, have su?ered from fragile UV lamps and di?culties in detecting malfunctions in a timely manner. This a?ectedthe e?ectiveness of treatment and carried the risk of legal sanctions. The treatment process was upgraded to a two-stageactivated carbon adsorption, which completely addressed these process de?ciencies, ensuring e?cient treatment of gaswastes, and reinforcing the plant's lean production and compliant process safeguards.

Disposal of expired medicines. All expired medicines and

other waste chemicals are disposed of as hazardous wastein accordance with applicable regulations. We select a third

party with hazardous waste disposal credentials and technicalcapabilities, sign a hazardous waste disposal contract, andlegally and compliantly dispose of expired chemicals.

We develop standard requirements for pollution prevention and control, and establish and implement an emission control andveri?cation process based on state and local environmental protection regulations and emission standards for chemical plants. Forseveral consecutive years, we conducted comprehensive pollutant emissions estimation and monitoring, including wastewater andemissions, and built a visible and veri?able emissions data management system to provide robust data support for science planning,implementation and quantitative control of emission reduction goals.By 2025, China Resources Sanjiu(Not include Tasly) has achieved all our pollution reduction targets, as detailed in the table below.

Metrics and targets

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

No.Discharges

Indicator

Year

20202021 2022 20232024 2025

The rules for target-settingduring the "14th Five-YearPlan" period

1. SO

Emissions(t)9.503.502.664.703.471.25

Based on 2020, reduce by 2% year-on-year (Kunming PharmaceuticalCorporation baseline value wasincorporated in 2023).Target value (t)

Allowedemissions

9.319.1210.16899.9525 9.7535Whether the Target isAchieved

YesYesYesYesYesYes

2.NO

X

Emissions (t)35.0135.6538.4466.3447.8739.41

From 2024 onward, based on 2023,reduce by 2% year-on-year.Target value (t)

Allowedemissions

Allowedemissions

Allowedemissions

Allowedemissions

65.0163.7098

Whether the Target isAchieved

YesYesYesYesYesYes

3.ParticulateMatter (PM)

PM emissions (t)6.8796 1.4783 1.4410.008.196.44

Based on 2020, reduce by 2% year-on-year (Kunming PharmaceuticalCorporation baseline value wasincorporated in 2023).Target value (t)

Allowedemissions

6.7420 6.6044 11.5742 11.3279 11.1013Whether the Target isAchieved

YesYesYesYesYesYes

4.VolatileOrganicCompounds(VOCs)

Emissions (t)377.865512.1292 11.238.875.8727 4.8717

Beginning in 2024, the percentagewill decrease by 2% per year, basedon a 2023 baseline.Target value (t)

Allowedemissions

Allowedemissions

Allowedemissions

Allowedemissions

8.698.5162

Whether the Target isAchieved

YesYesYesYesYesYes

5.Ammonianitrogen

Emissions (t)3.041.911.682.392.012.88

Based on 2020, reduce by 2% year-on-year (Kunming PharmaceuticalCorporation baseline value wasincorporated in 2023).Target value (t)

Allowedemissions

2.9792 2.91844.43904.3445 4.2576Whether the Target isAchieved

YesYesYesYesYesYes

6.Hazardouswaste

Total generation (t)488.96 627.63835.93 1,252.35 1,002.752,303.70

All general industrial solid wasteand hazardous waste mustbe disposed of legally and incompliance.

Target value (t) .

All disposedof legallyand incompliance

All disposedof legally

and incompliance

All disposedof legallyand incompliance

All disposedof legallyand incompliance

All disposedof legallyand incompliance

All disposedof legallyand incomplianceWhether the Target isAchieved

YesYesYesYesYesYes

7.Generalindustrial solidwaste

Total production (t).32,214.4536,250.50 26,094.72 134,557.22144,237.22185,830.75Target value (t) .

All disposed

of legallyand incompliance

All disposedof legally

and incompliance

All disposedof legallyand incompliance

All disposedof legallyand incompliance

All disposedof legallyand incompliance

All disposedof legallyand incomplianceWhether the Target isAchieved

YesYesYesYesYesYes

Setting and Achievement of Solid Waste Emission Targets of CR Sanjiu from 2020 to 2025

During the Reporting Period, in light of actual production and operational conditions, we established annual or medium-term targetsfor waste reduction and recycling based on intensity indicators. In 2025, no environmental violations occurred.

TargetProgress100% compliance rate for major pollutant emissions

In 2025, the compliance rate for major pollutant emissionswas 100%, with no cases of excessive pollutant discharge.100% lawful and compliant disposal of general industrialsolid waste and hazardous waste

In 2025, all general industrial solid waste and hazardous wastegenerated from production and operations were disposed oflawfully and in compliance with regulations.Based on 2020 as the baseline, reduce hazardous wasteemission intensity by 10% by 2030.

In progress

Biodiversity conservation

We attach great importance to biodiversity conservation, and support and respond to theKunming–Montreal Global Biodiversity Framework.

We have made a clear commitment to biodiversity protection and strictly comply with theForest Law of the People's Republic of China, theRegulations for the Implementation of the Forest Law of the People's Republic of China, theRegulations of the People's Republic of Chinaon the Protection of Wild Plants, theWildlife Protection Law of the People's Republic of China, theRegulations on Returning Farmland toForests, theRegulations on the Protection and Administration of Wild Medicinal Material Resources, the Conventionon International Tradein Endangered Species of Wild Fauna and Flora (CITES), and the United NationsConvention on Biological Diversity, as well as other relevantlaws, regulations, and international conventions. We uphold the authenticity of medicinal biological resources and the conservation ofgermplasm and seed sources, vigorously promote the development of arti?cial cultivation bases for traditional Chinese medicinal materials,establish forestry carbon sink demonstration projects for medicinal materials, protect wild medicinal biological resources, foster a newecological model integrating forest and medicinal material cultivation, advance biodiversity restoration, and work together toward a vision ofharmonious coexistence between humanity and nature.

No.Discharges

Indicator

Year

20202021 2022 20232024 2025

The rules for target-settingduring the "14th Five-YearPlan" period

8.CO

emissionintensity(Scopes 1 and2)

Actual value(tCO

e/10,000 yuan)

0.16490.16030.16270.14510.12650.1398

Based on the adjusted 2020emission intensity (i.e., 0.2558tCO

e/10,000 yuan), reduce by 2%year-on-year.Target value(tCO

e/10,000 yuan)

0.2558 0.25070.2456 0.24050.23530.2302Whether the Target isAchieved

YesYesYesYesYesYesNotes:

1. Allowed emissions: the total annual allowable pollutant emissions quota granted by the competent ecological and environmental authority where the enterprise is

located. 2.When there are changes in production scale, number of enterprises included in statistics, etc., target values may be adjusted accordingly. 3.In 2023, as Kunming Pharmaceutical Group was included in the statistical scope, the target values of relevant indicators were adjusted accordingly.

4. Tasly is a newly acquired entity during the reporting period. To ensure continuity and comparability of target management, during the integration transition period, we

will temporarily use the business scope before completion of the acquisition as the baseline. The statistical scope of the 2025 actual emissions values in this table does

not yet include Tasly, and remains consistent with the baseline-year statistical scope for targets.

1?In accordance with the "Guidelines for Greenhouse Gas Emission Accounting and Reporting of Industrial Enterprises in Other Sectors (Trial)," the Scope 1 and Scope2 carbon dioxide emissions for CR Sanjiu Medical & Pharmaceutical Co., Ltd. in 2025 are calculated as follows: Scope 1 emissions are calculated as the product offossil fuel consumption, carbon content, carbon oxidation rate, and molecular conversion factor. Scope 2 emissions are calculated as the product of purchasedelectricity consumption and the corresponding grid emission factor.

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard aharmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Impacts of China Resources Sanjiu's Production, Operations and Products on Biodiversity and Corresponding Action StrategiesIn?uencetype

Impacts of the company's production, services

and products on biodiversity

Action strategies

Negative

impact

The Company's products are primarilytraditional Chinese patent medicines, with rawmaterials consisting of medicinal biologicalresources sourced from market procurementand medicinal material cultivation bases. Wherethe origin of medicinal materials procuredfrom the market is unclear, some raw materialsmay originate from wild medicinal biologicalresources. The extent of wild harvesting may beuncertain, potentially causing negative impactson biodiversity.

For Chinese medicinal materials procured from the market,

we only purchase materials with clear, legal and compliantorigins, and require suppliers to reasonably develop medicinalbiological resources on the basis of conservation, avoidingbiodiversity loss caused by excessive harvesting of wildmedicinal materials.We conduct research on seedling breeding and arti?cial

cultivation technologies for medicinal materials, compiletechnical guidelines, and vigorously promote the constructionof arti?cial cultivation bases through self-built or jointlyestablished planting bases. We uphold the authenticityof medicinal biological resources and the conservation ofgermplasm and seed sources, increase the proportion of rawmaterials supplied by cultivation bases, and promote thesustainable development of the traditional Chinese medicineindustry.The Company dynamically manages sustainability risks within

business partners and the supply chain, protects naturalresources and maintains ecosystem diversity, strictly complieswith national biodiversity conservation policies, and prohibitsestablishing operational sites, conducting supply chainactivities, or engaging in business activities in biodiversityhotspots, ecologically sensitive areas, ecological protectionredline zones, and internationally or nationally designatedimportant protected habitats.We strictly comply with national laws and regulations

concerning endangered medicinal species and prohibit theuse of wild endangered medicinal species in pharmaceuticalproduction.

Positiveimpact

Leveraging technical platforms such as theResearch Institute of Chinese MedicinalResources at the headquarters R&D center,the Medicinal Resource Center of thePharmaceutical Business Division, and a?liatedmedicinal material cultivation enterprises, theCompany actively researches seedling breedingand arti?cial cultivation technologies, compilestechnical guidelines, and vigorously promotesthe construction of arti?cial cultivation bases.By using medicinal materials with clear originsand increasing the supply proportion fromcultivation bases, we uphold the authenticityof medicinal biological resources and theconservation of germplasm and seed sources,promote sustainable raw material development,reduce harvesting of wild medicinal biologicalresources, prohibit the use of wild endangeredmedicinal species in pharmaceutical production,and contribute to biodiversity restoration.

In response to global warming and increasingly frequent

extreme weather events such as heat, drought and heavyrainfall, which pose survival risks to medicinal biologicalresources due to environmental changes, the Company willincrease R&D investment, select and cultivate high-qualitymedicinal varieties with strong environmental tolerance andsu?cient medicinal components, and continue to uphold theauthenticity of medicinal biological resources and germplasmconservation.

Protection of authenticity and quality sources of raw materialsThrough order-based procurement from genuine producing areas, strict raw material quality audits, and self-built or jointlyestablished cultivation bases, we implement a rigorous procurement quality management system to ensure that all medicinal rawmaterials are legally sourced, compliant, and of high quality at the source, and to prevent medicinal materials of unknown originfrom entering the production process.

Promoting sustainable development of raw materials

Relying on technical support from the Research Institute of Chinese Medicinal Resources, the Medicinal Resource Center of thePharmaceutical Business Division, and affiliated cultivation enterprises, we actively conduct research on germplasm resources,cultivation technologies, origin-processing methods and standards, full-process traceability systems, and comprehensive utilizationof medicinal resources. These e?orts ensure medicinal quality, maximize resource utilization, maintain ecological balance, preventecological resource loss, degradation and over-exploitation, and guarantee the sustainable utilization of traditional Chinesemedicinal resources.

Establishment of forestry carbon sink demonstration projects for medicinal materials

Through arti?cial cultivation of medicinal plants and the development of medicinal-material forestry systems, we reduce harvestingof wild medicinal resources, protect endangered wild medicinal species, restore natural biodiversity, and form a new ecologicalmodel of artificial medicinal forests. This promotes sustainable development of medicinal materials while increasing potentialcarbon assets. We will continue to promote the joint development of medicinal forestry carbon sink demonstration projects withrelevant organizations where conditions permit.Construction of medicinal–photovoltaic complementary zero-carbon demonstration projectsBy leveraging the differing light spectrum requirements of medicinal plant photosynthesis and photovoltaic power generation,electricity generation and planting can be realized simultaneously. As photovoltaic panels create shading e?ects, di?erent medicinalvarieties can be cultivated according to their light requirements, and different photovoltaic module designs can be installed tomeet photosynthetic needs. At the same time, quali?ed business units are encouraged to install photovoltaic systems in medicinalplanting bases and develop medicinal–photovoltaic complementary projects into zero-carbon demonstration projects.

Ecological Cultivation of Panax notoginseng

Construction of medicinal material cultivation bases and germplasm conservation

Medicinal cultivation bases are selected based on suitability ofthe ecological environment, historical planting experience, andavoidance of protected areas. Through industry–university–researchcollaboration, we establish seedling experimental areas, strictly controlgermplasm and seed quality at the technical source, and prevent issuessuch as germplasm degradation and invasive alien species. Throughthe construction of demonstration cultivation bases, establishmentand promotion of cultivation and origin-processing standards, andjoint base-building models, we vigorously promote the developmentof medicinal planting demonstration bases. In authentic productionregions such as Guangdong, Jiangxi and Yunnan, cultivation bases aredeveloped based on traditional planting experience. Organic fertilizersare prioritized to protect soil and vegetation.

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard aharmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Upholding integrity and driving innovationto jointly safeguard a harmonious society

Our response

Closely aligning with the requirements of the 15th Five-Year Plan, China Resources Sanjiu fullyintegrates ESG principles into its corporate strategy and operations. We continuously strengtheninnovation capabilities, advance digital transformation, enhance R&D innovation in traditional Chinesemedicine, and strategically develop innovative drugs and classical traditional Chinese medicineprescriptions. On the social dimension, we have established a Board-driven ESG governance closedloop, reinforced quality assurance and consumer rights protection throughout the entire lifecycle ofpharmaceuticals, embedded ESG principles across the full traditional Chinese medicine supply chain,implemented distinctive public welfare projects supporting the Healthy China initiative and ruralrevitalization, and continuously improved employee development and care systems, fulfilling thesocial responsibilities of a central state-owned enterprise through concrete actions.

National requirements

Strengthen the principal role of enterprises in scienti?c and technological innovation, promote theconcentration of innovation resources toward enterprises, support enterprises in taking the lead informing innovation consortia and undertaking more national key science and technology projects,encourage enterprises to increase investment in basic research, promote the deep integration ofinnovation chains, industrial chains, capital chains, and talent chains, accelerate innovation in digitaland intelligent technologies such as arti?cial intelligence, and achieve breakthroughs in fundamentaltheories and core technologies.From the social perspective, with the goal of continuously improving people's quality of life,implement a health-?rst development strategy, promote the inheritance and innovation of traditionalChinese medicine, and advance the integration of traditional Chinese and Western medicine.

—Proposal for the 15

th Five-Year Plan

S

Contribution to the United Nations Sustainable Development Goals

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Launch Ceremony of the Consensus on Compliance in the Pharmaceutical Industry

Building a new pharmaceutical distribution ecosystem on the foundation ofcompliance

Strategic commitment anchored in the broader landscape

As a core member of China Resources' Greater Health segment, CR Sanjiu has gained deep insightinto regulatory trends and sustainable development requirements in the pharmaceutical industry,and has proactively initiated and ledthe Consensus on Compliance in the Pharmaceutical Industry

project. In collaboration with leading industry enterprises and professional institutions, we haveshifted from "passive compliance" to "proactive governance," striving to build a pharmaceuticaldistribution ecosystem characterized by transparency, mutual trust, and shared responsibility.Through strengthened compliance capabilities, we consolidate the foundation for industrydevelopment and demonstrate the responsibility of central state-owned enterprises in serving themodernization of national governance.

This project actively responds to major national policies such as "deepening the reform of themedical and healthcare system" and "strengthening anti-unfair competition," and precisely alignswith the requirements of theAdministrative Measures for Compliance Management of CentralEnterprises. By translating macro-level principles into actionable standards in the distributionsector, the project supports the development of "world-class enterprises" through robustcompliance risk management. By providing industry public goods and transforming corporate bestpractices into industry consensus, CR Sanjiu has signi?cantly enhanced its brand in?uence andrule-advocacy capacity in the pharmaceutical sector, contributing to a more stable developmentenvironment for the Group's Greater Health business.

From consensus to implementation: advancing together

The Consensus on Compliance in the Pharmaceutical Industryprogressed through ?ve stages: "initiative proposal, in-depth research,centralized drafting, discussion and ?nalization, and o?cial release," achieving a transition from concept to substance. It has now enteredthe implementation phase of "consensus decoding" and "capacity building," supported by the development of training courses, riskguidance, and self-assessment tools to transform textual standards into practical enterprise capabilities. By unifying the "language ofcompliance operations," the Consensus reduces compliance system construction costs for small and medium-sized enterprises, shiftsfrom "costs of correction" to "costs of prevention," and enhances overall e?ciency and safety across the industry chain. At the same time,it clearly conveys the industry's determination for self-reform, helping restore industry reputation and rebuild public trust, and providingstrong support for the Healthy China strategy.Innovative breakthroughs: opening a new chapter in ecosystem governanceBy breaking through the traditional internalized model of compliance, we innovatively propose a new paradigm of "value-chaincollaborative governance." We advocate the evolution of compliance management from internal corporate control to ecosystem-widecoordination and mutual trust across the industrial chain. Through consensus, standards, and technological connectivity, we aim tobuild a transparent, traceable pharmaceutical distribution ecosystem with shared responsibility, while addressing uneven industrydevelopment. We also promote innovation in tools and mechanisms, including formulating standardized recommendations for high-sensitivity scenarios such as CSO cooperation and academic promotion, introducing independent third-party evaluation mechanisms,and exploring intelligent compliance tools driven by big data and arti?cial intelligence, thereby transforming compliance managementfrom labor-intensive to technology-driven models.Empowering the industry and demonstrating long-term valueFollowing its release,the Consensus on Compliance in the Pharmaceutical Industryhas established plans for supporting guidelinedevelopment, case database construction, and periodic revision mechanisms to ensure alignment with evolving policies and practices.CR Sanjiu will continue to invest resources, deepen implementation, and pursue higher-level objectives, forming a virtuous cycle of"greater participation, greater bene?t, and stronger joint safeguarding." The core methodology of the Consensus holds reference valuenot only for the pharmaceutical industry but also for medical devices, ?nance, and other highly regulated industries. Its collaborativemodel of "leading enterprises guiding, multi-party co-creation, and shared outcomes" can be replicated in other ESG areas such as greensupply chains and data security, providing practical experience for industry governance.Future outlookThe Consensus on Compliance in the Pharmaceutical Industryproject represents a model case of integrating national strategies, Groupplanning, industry needs, and the Company's own strengths. It begins with compliance risk management but aims at long-term sustainablevalue creation; rooted in risk management, it injects "trust capital" and normative momentum into the industry. We will continue to takecompliance as our cornerstone and work with industry partners to build a healthier and more sustainable pharmaceutical distributionecosystem, demonstrating the responsibility and commitment of central state-owned enterprises in the new era.

Responsibility case

On August 28, 2025, theConsensus on Compliance in the Pharmaceutical Industrywas o?cially released at an industry innovation conference,marking a milestone achievement. In collaboration with leading enterprises such as Sinopharm Holding and Shanghai Pharmaceuticals, morethan one hundred frontline compliance challenges were analyzed to ensure the practicality and relevance of the Consensus.

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard aharmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

China Resources Sanjiu has upgraded its R&D strategy under the theme of "Integrated Innovation, Smart Future," with the goal of becominga leading innovator in China's pharmaceutical and healthcare sector through the integration of traditional Chinese and Western medicineswith digital and intelligent technologies. Focusing on the Company's core strategy, we continue to increase innovation investment in corepipelines, build advanced technology platforms, establish innovation organizations and talent teams aligned with strategic needs, strengthencoordination mechanisms, and cultivate and develop new quality productive forces.

Focus on innovation development

Innovation is not only our core value but also one of CR Sanjiu's core competencies. The company's vision is to become a leader inpharmaceutical and healthcare innovation in China. We continue to increase R&D investment, focus on core pipelines, build advancedtechnology platforms, establish innovation organizations and talent teams aligned with strategy, and strengthen coordination mechanisms.We consolidate core capabilities including value assessment, BD introduction, clinical medicine, project management, resource integration,and digital–intelligent applications, thereby safeguarding the achievement of strategic objectives.

Strategy

We continue to improve the "pyramid"-like structure of innovation, with "focus on initiation, strengthening management, emphasis onmonitoring, implementation of incentives, and promoting translation" as key steps. Relying on a three-tier "1+8+N" science and technologyinnovation model, we optimize a "6E" management system based on project initiation, planning, implementation, evaluation, incentives,and auditing. We continue to improve project-driven decision-making and project-driven management, increase incentives for innovation,and inject strong momentum into innovation and research and development.

Governance

Risk Type and Description

Potential Financial

Impact

Opportunity Type and Description

Potential FinancialImpactTechnical risk:

Pharmaceutical R&D cycles arelong, investment is high, andsuccess rates are uncertain;breakthroughs in coretechnologies are di?cult.

Loss of R&Dinvestment

Technical opportunity:

Breakthroughs in the modernizationof classical prescriptions and theestablishment of international standardsfor traditional Chinese medicine.

Accelerated approvaland market launchof new products

Policy risk:

Stricter regulatory standardsfor traditional Chinesemedicine, adjustments in drugreview and approval, medicalinsurance reimbursement,and centralized procurementpolicies may restrict productusage demand.

Increased costs orreduced revenue

Policy opportunity:

National support for inheritance andinnovation of traditional Chinesemedicine and development of classicalprescriptions; accelerated review andapproval; preferential medical insurancepolicies for high-quality innovative drugsand traditional Chinese medicine.

Shortened time tomarket, reducedproduction costs,and increasedrevenue

Impact, risk and opportunity management

Innovation development-related risks, opportunities and potential impacts

Development of a Scienti?c and Technological Innovation PlatformWe partner with internal and external agencies to build a scientific and technological innovation platform, closely aligned with thestrategic needs of the country. Our primary objectives are to develop drugs with outstanding clinical e?cacy and safeguarding publichealth. We focus on the modernization of traditional therapies as a key development to develop modern Chinese medicine and build acritical technological innovation platform to support advanced development.On September 24, 2025, CR Sanjiu, together with more than 20 organizations including the China Pharmaceutical Industry SupervisoryBoard and the China Pharmaceutical Control and Regulatory Research Association, jointly launched the "Beijing Future PharmaceuticalChain Research Center."China Resource Sanjiu and Zhengzhou University have jointly established the "Zhengzhou University-China Resource Sanjiu InnovativeChemical Research Center." By focusing on common technologies and industry needs, and applying Zhengzhou University’s researchinterests in life sciences, the company will collaborate on key research such as authentic drug development from Henan Province, antiviraldrug research and development, and drug safety evaluation.

InnovationCenterInnovation OrganizationResearch Institutes + LaboratoriesInnovation Management SystemCross-Strategic Cycle R&D Planning

A Highland for Innovative Technologies,Leveraging the In?uence of Sanjiu's InnovationAn Open Innovation Organization,Extensively Connecting with External ResourcesThe Vanguard of Innovation,Breaking through Key Focus AreasThe Foundation of Innovation,Ensuring Its SustainabilityGuidance for the Implementation ofInnovation Strategies

Pyramid innovation systemPositioning

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard aharmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Promoting the development of internationalstandards for traditional Chinese medicine

Enriching technological innovation achievements

Cultivating innovative technical talent

We strengthen the recruitment and cultivation of high-tech innovation talents in R&D and intelligent manufacturing, enhance the establishmentand management of talent pools, and fully stimulate endogenous drivers of technological innovation through "building platforms, improvingmechanisms, and utilizing talent." We focus on production technology challenges and industry-leading technologies to enhance the corecompetitiveness of marketed products.

We continuously strengthen our proprietary innovation capabilities, accelerate change andimplementation of innovation successes, accurately identify market opportunities arisingfrom consumption upgrade trends, and deeply mine core consumer needs regarding productfunctionality and usage scenarios. We promote breakthroughs in the initiation and approval ofnew product R&Ds, progressively enhance the industrialization process of scienti?c researchresults, and continue to enhance the competitiveness of our core products.

Organizationaldevelopment

Talent cultivationand exchange

Innovation culture

development

In 2025, a new Oral Liquid DosageForm Technology Research Centerwas established. Currently, eightdosage form technology researchcenters have been built to provideprofessional research platforms fortechnical personnel. At the sametime, intelligent manufacturingcoordination groups and production–sales–R&D coordination groupswere established to break cross-department barriers and build ane?cient collaborative R&D system.

In 2025, focusing on building theinnovative R&D talent pipeline, theCompany carried out systematictechnical exchanges, talentinventory, and targeted cultivation,strengthened R&D-related talentteams in the production system,and realized sharing of internal andexternal knowledge, technology,and talent resources. We deepenedindustry–university–research–application collaboration and signedcooperation agreements with fourresearch institutions, includinguniversities, drug regulatoryauthorities, and equipmententerprises, to conduct joint researchin process technology and qualitystandards, thereby improving R&Dpersonnel's professional capabilitiesthrough project-based practice.

In 2025, the Production TechnologyCenter organized the 4th CR SanjiuProcess Technology Innovation Awardselection to establish benchmarks forproduction technology innovation.Together with the human resourcesdepartment, the Company advancedthe development of supportingsystems for theManagementMeasures for Incentives for TechnicalInnovation Projects in the ProductionSystem of CR Sanjiu, recognizingand rewarding outstanding productengineers, innovative technicalprojects, and excellent technical sub-centers, improving the innovationincentive system, fully stimulatingR&D personnel's innovative vitality,and fostering a talent developmentatmosphere that values innovationand encourages exploration.

The innovative traditional Chinese medicine drugXiao'er Anshen Bunao Granuleswas approved and successfully selected into the third batch of "Lingnan FamousPrescriptions."Address common problems among volatile oil varieties through technical advances,and develop important common engineering solutions. The combined approachof "feed properties + equipment + technology + measurement" will ensure that thevolatile components of the product are essentially the same as those of the referencesample obtained by hydrolysis.

Product development

Technological advances

Achieve r&d and innovation results in 2025

Classical prescription ?eldDermatology ?eld

Orthopedics ?eld

Gastrointestinal(hepatobiliary) ?eld

Anti-infection ?eld

Two new Category 3 traditional Chinese medicine products were approved, namelyYiqi Qingfei Granules and Banxia Baizhu Tianma Decoction Granules. Five productsare in the application stage, and the cumulative number of applications and approvalsleads the industry. One Macau classical prescription product was approved—ShaoyaoGancao Granules, authorized to use the "Supervised by Macau" label. Yiqi QingfeiGranules is CR Sanjiu's ?rst Category 3.2 traditional Chinese medicine new drug andthe ?rst innovative traditional Chinese medicine formally approved by the NationalMedical Products Administration speci?cally for treating comprehensive symptomsduring the recovery period of respiratory infections.

Four new products were approved:

Selenium Sul?de Lotion, MinoxidilTopical Solution, Crisaborole Ointment,and Metronidazole Gel. These areimportant products in the Company'sself-care portfolio, and their approvalsre?ect the Company's continuousimprovement of business portfolio andexpansion into the full self-care.

One new product was approved:

Loxoprofen Sodium Gel Patch, theCompany's ?rst approved gel patchproduct, enriching the orthopedicspipeline and improving businessportfolio to better meet patientneeds.

One new product was approved:

Lactulose Oral Solution, approvedby the National Medical ProductsAdministration, used for the treatmentof constipation and supportingintestinal health.

Four new products were approved:

Cefazoxime Sodium for Injection,Fulvestrant Injection, ErtapenemSodium for Injection, and CefpiromeSulfate for Injection, furtherstrengthening the anti-infectionpipeline and providing moretreatment options for patients.

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard aharmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Intellectual property protectionWe strictly comply with theTrademark Law of the People's Republic of Chinaand theMeasures for the Administration of IntellectualProperty Certi?cation, and have formulated policy including the China ResourcesSanjiu Brand and Authorization Management System,Basic Intellectual Property Management System of China Resources Sanjiu, China Resources Sanjiu Patent Management Measures,China Resources Sanjiu Management Measures for Publication of Scienti?c Papers, and Management Measures for Intellectual PropertyRights Protection and Anti-counterfeiting. We have established an intellectual property management system centered on trademarkrights and covering patents, trade secrets, copyrights, and other dimensions, and commit to respecting and protecting intellectualproperty rights of both the Company and others. In 2025, the Company did not experience any major intellectual property infringementincidents that had signi?cant impact.

Establish a closed-loop management approach

We proactively implement intellectual property protection measures, establish online and o?ine infringement monitoring systems,launch patent proposal application and approval processes and scientific paper submission approval processes in the OA system,strengthen intellectual property management, carry out multiple online and o?ine rights protection activities, safeguard the Company'sintellectual property rights, and form a full-process closed-loop management mechanism for intellectual property protection.

Raise awareness of intellectual property rights

We carried out intellectual property awareness activities on World Intellectual Property Day and incorporated intellectual propertytraining modules into 2025 legal compliance training and new employee training to enhance employee awareness and ensure e?ectiveprotection of intellectual property.

Emphasis on technology ethics

We adhere to the principle of "technology for good, ethics ?rst," deeply integrating technology ethics into the entire process of pharmaceuticalR&D and technological innovation, strictly safeguarding the bottom line of life and health, e?ectively protecting the lawful rights and interestsof clinical trial subjects, strictly complying with animal ethics standards and animal protection requirements, and maintaining high ethicalstandards and scienti?c conduct in all types of experiments to protect public health through responsible innovation.

Kunming Pharmaceutical Group adheres to the principle of humane treatment of laboratory animals and strictly follows the "3R" principlesof Reduction, Replacement, and Refinement. In accordance with relevant regulations, it has established a systematic laboratory animalmanagement mechanism, set up a Laboratory Animal Management Committee and an Institutional Animal Care and Use Committee (IACUC),and continuously improved management policies and animal welfare ethics review documents. The Company clari?es the responsibilitiesof various institutions and departments, standardizes laboratory animal production, use, ethical review, and harmless disposal of waste, andincorporates laboratory animal facilities into the quality management system to ensure compliant experimental conduct and protection ofanimal welfare. In 2025, Kunming Pharmaceutical Group strengthened personnel ethical awareness through training on animal welfare ethicsand biosafety, e?ectively implementing requirements related to animal welfare and humane treatment of laboratory animals.

We have always placed R&D innovation at the core of corporate development. To e?ectively implement the Company's R&D innovation strategy,we have established indicators and targets for R&D innovation and regularly track and evaluate their completion.

CR Sanjiu has established a dedicated pharmacovigilance teamfor clinical trial drugs and built a full-process control system tocomprehensively protect the safety and rights of trial participants.The Company has established a comprehensive pharmacovigilancesystem, formulated standardized operating procedures, and clarifiedjob responsibilities. At the protocol design stage, risk assessments areconducted in advance, and risks are minimized through scientificallydefined indicators and contingency plans. Trial execution proceduresare strictly standardized to ensure the scientific integrity of research.The informed consent process is properly implemented to fullysafeguard participants' right to be informed and their right to voluntaryparticipation. Serious adverse reactions are reported in a timely manneras required, and periodic safety data aggregation and analysis, as well asdynamic risk control, are carried out. Through rigorous and standardizedmanagement, we safeguard the safety baseline of clinical trials.

Drug clinical trial management

The Company strictly complies with national lawsand regulations related to the management oflaboratory animals and ensures that all animalexperiments are conducted in a scienti?c, lawful, andstandardized manner. All animal experiments areentrusted to compliant suppliers holding laboratoryanimal use licenses. Entrusted research institutionsstrictly comply with theGood Clinical Practice (GCP),theDeclaration of Helsinki, ICH guidelines, andother medical ethics principles and relevant clinicalregulations, ensuring that related research activitiesare conducted in quali?ed and compliant laboratoryanimal facilities.

Adherence to animal experiment ethics

Metrics and targets

TargetProgress

Build innovation highlands,strengthen innovation platformconstruction, and continueto develop national-leveland provincial-level researchplatforms.

CR Sanjiu, together with more than 20 institutions including the China PharmaceuticalEnterprise Management Association and the China Society for Drug Regulation Studies, jointlyinitiated the establishment of the "Beijing Future Pharmaceutical Industry Chain ResearchInstitute."CR Sanjiu and Zhengzhou University jointly established the "Zhengzhou University–ChinaResources Sanjiu Innovative Drug Research Institute."Strengthen intellectual propertyprotection and continuouslyimprove independentinnovation capabilities.

The Company participated in the development of 1 international standard, 13 nationalstandards, and 4 industry standards;In 2025, CR Sanjiu obtained authorization for 211 patents (including 87 invention patents, 71utility model patents, 50 design patents, and 3 international invention patents).

Minoxidil Topical Solution, Selenium Sul?de Lotion, Crisaborole Ointment, Metronidazole Gel, Loxoprofen Sodium Gel Patch, LactuloseOral Solution, Ceftizoxime Sodium for Injection, etc., were approved for marketing, enriching product portfolios in dermatology,orthopedics, gastrointestinal (hepatobiliary), and anti-infection ?elds, continuously empowering business development.

Luliconazole Cream, Adapalene Gel, Upadacitinib Sustained-release Tablets, Hydrotalcite Suspension, Polyethylene Glycol 4000Powder (pediatric), Compound Polyethylene Glycol (3350) Electrolyte Oral Solution, Desloratadine Oral Solution, DesloratadineTablets, Calcitriol Soft Capsules, Vancomycin Hydrochloride for Injection, Ambroxol Hydrochloride Oral Solution, etc., have beensubmitted for registration. Generic drug R&D is accelerating and gradually forming a pipeline output.

Approved generic drug approvals

Submitted registration applications

Key progress in consistency evaluation of generic drugs in 2025

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard aharmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

CR Sanjiu continues to enhance its digital and intelligent transformation. With meeting user and patient needs as the core, the Companypromotes business growth, e?ciency improvement, and brand development through digital empowerment and platform-based serviceinnovation, and is committed to becoming a leading digital-intelligence enterprise in the pharmaceutical and healthcare industry.

Deepening digital and intelligent transformation

StrategyWe adhere to the "Digital Sanjiu" strategy, actively implement digital transformation initiatives, and proactively explore new scenarios andnew models for applying emerging technologies such as AI and IoT in the pharmaceutical field. Through measures including businesstransformation and innovation and the implementation of an industrial digital ecosystem, we aim to achieve the goal of supporting andleading the Company's innovation-driven transformation and development through digitalization and intelligence.

CR Sanjiu has integrated digital transformation into its governance structure. With a governance approach that combines hierarchicalplanning, clear responsibilities and authorities, organizational mechanisms, and closed-loop monitoring and evaluation, it lays a solidfoundation for the implementation of the "Digital Sanjiu" strategy. This ensures that digital transformation is aligned with the company'sdevelopment strategy and tightly integrated with business operations, promoting standardized, effective, and sustainable digitaltransformation development .

Governance

Risks, opportunities and potential impacts related to digital and intelligent transformationRisk type and description

Potential ?nancialimpact

Opportunity type and description

Potential ?nancialimpact

Technical risk:

Rapid iteration of digital andintelligent technologies;di?culty in implementingintelligent manufacturing andR&D scenarios for traditionalChinese medicine, falling shortof expectations.

Loss of R&Dinvestment

Technical opportunity:

AI and digital-intelligent technologiesempower innovative R&D of traditionalChinese medicine and improve R&De?ciency.

Shortened R&Dcycles, reduced R&Dcosts, and improvedR&D success rates

Compliance risk:

Digital construction, dataapplication, and intelligentmanufacturing failing to meetnational requirements fordata security, cybersecurity,pharmaceutical regulation, andintelligent factory standards,leading to compliance risks.

Increased costsfor compliancerecti?cation andpenalties

Policy opportunity:

Strong national support for digital andintelligent transformation of traditionalChinese medicine and construction ofintelligent manufacturing demonstrationfactories, enabling access to policysubsidies, recognition, and industrydemonstration advantages.

Access to policyfunding supportand reducedtransformationinvestment costs

Impact, risk and opportunity management

Promote digital transformation

Advancing intelligent manufacturing

Aiming to become the digital standard in the pharmaceutical and healthcare industries, we are fully promoting digital transformation andaggressively integrating digital empowerment into key areas of business operations and management. Focused on user experience and valuecreation, we have developed digital development strategies and work?ows in key areas such as marketing and ?nance, clarifying the direction oftalent mobilization and organizational transformation requirements. Through technological innovation and data intelligence, we drive businessmodel development and improve management performance, fueling new business growth and superior corporate development through digitaltransformation.

To fully utilize the management of the entire TCM industry chain and promote the advanced, intelligent, and green development of theTCM industry, we proposed the vision of "lead TCM intelligent manufacturing" and developed an eight-year intelligent manufacturingstrategy. Through key initiatives such as leading and technological innovation, breakthroughs in key technologies, industry developmentand transformation, advanced systems, and professional training, we will explore new TCM arti?cial intelligence models, build new TCMarti?cial intelligence models.

Advancing digital empowerment

Digitalmarketing

The ?rst phase

Financialdigitalization

With "user experience at the core, promoting brand development and business growth through digital innovationand data intelligence, and striving to become a digital benchmark enterprise in China's pharmaceutical andhealthcare industry," the Company has redefined the core development direction of "people, goods, andchannels" in the prevention–treatment–rehabilitation field. Key initiatives and digital capability accumulationdirections have been clari?ed across the entire user journey, digital channels, digital marketing, digital products,and data intelligence, while organizational support and transformation directions have also been proposed toachieve rapid growth of new businesses.A digital strategy centered on "?ve transformations and eight scenarios" has been established. Digital constructiontasks have been carried out and completed in key scenarios including treasury management, business analysis,budget management, and tax management. Tasks assigned by SASAC have been completed with high quality,financial management integration of newly acquired enterprises has been realized, and financial operationale?ciency and data analysis capabilities have been improved.

De?ne the development path

The second phaseThe third phase

Entitled "Standards andRegulations," aims to designand automate intelligentmanufacturing infrastructure.

Titled "cooperation andcollaboration," aims to establishinternal and external synergiesamong production networks.

Titled "collaboration andpromotion," aims to useknowledge or models to improvebusiness operations. By 2025, anintelligent manufacturing systemwill initially achieve ecosystemcommunication, prediction, andearly warning capability.

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard aharmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Honors

CR Sanjiu was recognized as one ofthe ?rst batch of "Outstanding-levelIntelligent Factories" by the Ministry ofIndustry and Information Technology

(MIIT).The Company won the Bronze Award inthe benchmark competition of the 8th"Blooming Cup" 5G Application Collection

Competition organized by MIIT.

Seven factories, including China Resources Sanjiu(Zaozhuang), China Resources Sanjiu (Chenzhou),China Resources Benxi Sanyao, Aonuo Pharmaceutical,China Resources Sanjiu (Ya'an), Anhui China ResourcesJinchan, and China Resources Jiuxin, were recognizedas "Advanced-level Intelligent Factories."The Company received the First Prize forPractical Achievements in DeepeningReform of State-owned Enterprises in 2025fromEnterprise Management magazine.

Digital and intelligent technology upgradesProduction intelligent manufacturing upgrade

Benchmark intelligent manufacturing factories have been established to realize digital management across the full pharmaceuticalvalue chain covering raw materials, production, warehousing, quality, and equipment. Intelligent perception, dynamicoptimization, and scienti?c capacity allocation of production operations have been achieved, enabling real-time monitoring ofproduction and equipment operation status. With digital technology empowerment, key operational indicators of the benchmarkointment workshop have been signi?cantly improved.Digital-intelligent quality control

A digital quality control system centered on the QMS quality management system and LIMS laboratory information managementsystem has been established to realize online closed-loop management of all quality elements and processes, promoting deepintegration of quality data and business processes. The ?rst fully automated, unmanned testing equipment system in the traditionalChinese medicine industry has been developed, achieving full automation of weighing, physicochemical pre-treatment, pesticideresidue pre-treatment, heat treatment testing, and other processes. Quality testing efficiency increased by 6%, informationtransmission accuracy reached 100%, and testing consumable usage decreased by 75%. At the same time, paperless quality recordsand reduced manual inspection operations have been realized, significantly improving the intelligence level and operationale?ciency of quality control.Digital-intelligent green productionAn enterprise-level lean energy management platform (PMS) has been established, deeply integrating advanced digital technologiessuch as cloud computing, big data, IoT, mobile communications, and intelligent algorithms. Supported by this platform, energy-savingtechnologies such as distributed photovoltaics, chilled water storage, magnetic levitation chillers, and permanent magnet variable-frequency equipment have been implemented. Combined with AI-enabled production operations, overall energy consumption at theGuanlan plant decreased by more than 20%, and the plant was successfully recognized as a national-level green factory, promotinggreen and low-carbon development of production through digital-intelligent upgrading.

Case:building a quali?ed enterprise for smart manufacturingCR Sanjiu promotes digital-intelligent manufacturing operations by transforming business, operational, and management models,exploring new business management models, and advancing the construction of benchmark intelligent manufacturing factories.CR Sanjiu (Ya'an) has built a full industrial chain digital factory for traditional Chinese medicine and established a "1-system,3-comprehensive quality management system" and a "digital EHS management model" under the 9S intelligent manufacturingmodel. Product quality remains stable, with a one-time product quali?cation rate of 100% and zero quality complaints. It wasselected as an excellent intelligent manufacturing scenario by MIIT and a typical case for quality improvement by MIIT.

We continue to strengthen the cultivation of professional intelligent manufacturing teams, leverage the coordination role of the Deep BlueLaboratory in intelligent manufacturing initiatives, plan the construction of a unified production and manufacturing platform, coordinateintelligent manufacturing project management across factories nationwide, build benchmark intelligent manufacturing factories and productionlines, and establish intelligent laboratories. Through D-Plan learning activities, professional seminars, and specialized training courses, weenhance the knowledge and skills of professional talent.

Talent development

Case:launch of public utility iot group control project

CR Sanjiu o?cially launched the "Public Utility IoT Group Control System Project" and jointly organized a training camp withMushroom IoT to promote the deep application of digital-intelligent technologies in pharmaceutical public utility energysystems, supporting digital transformation and energy conservation and carbon reduction.The project supports the Company's intelligent manufacturing strategy by integrating IoT, edge computing, and AI algorithmsto build a "one-screen overview" public utility IoT group control system, enabling remote equipment control, intelligentfault prediction, and whole-station energy conservation and carbon reduction, continuously improving factory public utilityenergy e?ciency management. The training camp attracted more than 40 participants from relevant positions. Through acombination of theoretical instruction and practical training, core topics including industrial AI and digital-intelligent energysaving were covered, building a professional talent reserve for project implementation.

TargetProgress

Upgrade the intelligent manufacturing system, buildan intelligent manufacturing system covering theentire traditional Chinese medicine value chain, andcreate benchmark factories in the industry.

Intelligent manufacturing factories including China Resources Sanjiu(Zaozhuang), China Resources Sanjiu (Chenzhou), China ResourcesBenxi Sanyao, and China Resources Jinchan have been successivelyrecognized with honors such as MIIT and provincial/municipal intelligentmanufacturing excellent scenarios, intelligent factories, integration ofinformatization and industrialization excellence enterprises, and digitaltransformation benchmark demonstration enterprises.Build a digital-intelligent professional talent pipelineand establish a composite digital-intelligent talentteam to support strategic implementation.

Intelligent laboratories continue to be developed and D-Plan learningactivities are conducted to enhance the knowledge and skills ofprofessional talent.

Metrics and targets

CR Sanjiu anchors its "Digital Sanjiu" strategy and the development goal of "leading intelligent manufacturing of traditional Chinesemedicine," and scienti?cally establishes a systematic target indicator system around core areas of digital-intelligent transformation. Clearindicators and targets guide the orderly advancement and e?ective implementation of digital transformation, ensuring the Company'sgradual realization of the goal of becoming a leading digital-intelligence enterprise in the pharmaceutical and healthcare industry.

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard aharmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

CR Sanjiu is committed to promoting the heritage and innovation of traditional Chinese medicine, enhancing China's Health system,improving people's well-being, and improving their quality of life. Exploiting the opportunities created by the development of innovationin the new era and addressing the quality and safety risks of chemicals and drugs have become important pillars for the high-quality andsustainable development of CR Sanjiu.

Pursuing excellence in product quality

We fully ful?ll the principal responsibility for product quality, and strictly comply with the Drug Administration Law of the People's Republicof Chinaandthe Implementing Regulations of the Drug Administration Law of the People's Republic of China, ensuring product qualitythroughout the entire production process and being accountable for customer health. Centered on the goal of "building an e?cient andcontrollable group-wide uni?ed quality management system," we have established a quality management process of "corporate strategy– quality policy – quality objectives – work indicators – assessment and evaluation." Benchmarking world-class quality managementsystem improvement projects, we continue to deepen the construction of a full product lifecycle quality management system, and achievecontinuous quality improvement and enhancement..

CR Sanjiu is steadily advancing on the path to becoming a leading enterprise in the industry, benchmarking world-class enterprises andimproving its business layout, with its core business expanding into the full spectrum of self-care. We conduct product quality control and, withproducts delivering a positive experience and high-quality services, meet the full-cycle and multi-level health needs of every family member—from prevention, health maintenance, treatment to rehabilitation—thereby driving CR Sanjiu's innovation-driven development and high-qualitydevelopment.

Governance

Strategy

Strengthen quality managementDrug quality and safety are major livelihood and public safety issues, bearing directly on people's health and social harmony and stability. CRSanjiu has always upheld the quality philosophy of "Integrity and sincerity, craftsmanship in pharmaceuticals," established and improved itsquality management system, exercised strict control over drug quality, strengthened quality management across the entire production andoperation process, and remained accountable for public health.

Key performanceDuring the Reporting Period,

quality certi?cations were obtained by CR Sanjiu'ssubsidiary manufacturing enterprises, includingFDA, the EU, and ISO 9001

A total of

GMP compliance checkswere received andpassed successfully

operational siteshave passed ISO 9001certi?cations

We focus on continuously building a group-wide uni?ed quality management system, strengthening upstream control over Chinese medicinalmaterials, improving supplier audits and quality traceability mechanisms, enhancing process standardization and quality consistency ofChinese herbal pieces and Chinese herbal formula granules; strictly implementing the principal responsibility of traditional Chinese medicinemanufacturers, strengthening post-marketing quality risk monitoring, and reinforcing risk early warning and response in distribution and use toensure products are safe, e?ective, and quality-controllable.We implement the requirements of SASAC'sGuidelines for Comprehensive Risk Management of Central Enterprises, and the Ministry of Financeand four other ministries' Basic Standards for Enterprise Internal Controland its supporting guidelines, and, in light of CR Sanjiu's actualconditions, have established theChina Resources Sanjiu Detailed Rules for Quality Risk Management, to continuously promote quality riskmanagement in a deep and orderly manner and further enhance capabilities in risk identi?cation, analysis, and response management. In 2025,the Company continued the group-level control model of the "Top 10 Annual Quality Risks," and implemented a "4+6+N" risk prevention andcontrol mechanism. . All risk control plans were completed 100% on schedule, and overall risks were controllable.

Impact, risk and opportunity management

Risk type and description

Potential ?nancial

impact

Opportunity type and description

Potential ?nancialimpactReputational risk:

Unstable quality at the source ofChinese medicinal materials, anddefects in suppliers' quality systems,may lead to poor product qualityconsistency, triggering qualitycomplaints and adverse events, anddamaging brand reputation.

Increased compliancecosts; decline inoperating revenue

Market opportunity:

Upgraded health consumptionand increasing demand for qualitymedicines; building a high-qualitypharmaceutical brand to enhanceproduct competitiveness, customerstickiness, and market share.

Increased brandvalue and marketcon?dence

Compliance risk:

Suppliers' failure to timely align withthe Company's quality standards, ortightened industry quality supervisioncausing upstream supply chaindisruption, may a?ect the supply ofproduction materials and result ininsu?cient capacity.

Increasedprocurement costs

Policy opportunity:

Closely following national policydirections on drug quality supervision,inheritance and innovation oftraditional Chinese medicine, andsupply chain security; improvingthe quality control system andstrengthening supplier collaborativemanagement to align with industrycompliance requirements and obtainpolicy support and market accessadvantages.

Reduced legal andcompliance costs

Risks, opportunities and potential impacts related to quality management

Improve the quality system

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Enhancing quality management

Quality management assessment and evaluation

Quality audits and corrective actions

Product quality sampling evaluation

Digital quality control

In accordance with the Quality Policy and Objectives Management Policy, headquarters coordinates the formulation of company-levelquality objectives for the next year every fourth quarter, and decomposes them level by level to subsidiaries, departments, and keypositions, ensuring "objectives assigned to positions and accountability assigned to individuals." In 2025, headquarters formulatedand issued annual quality objectives for each subsidiary across three dimensions deepening quality system construction, preventingquality risks, and promoting quality management innovation"—achieving an organic alignment between strategic orientation andexecution.

In 2025, based on national regulatory directions, regulatory priorities, quality audit cycles, and business needs, we formulated the2025 CR Sanjiu Quality Audit Plan. We continued to promote continuous improvement and enhancement of quality management,strengthen safeguards, and prevent quality and safety risks. In 2025, CR Sanjiu completed quality audits of 46 production unitsas planned. For weak links, we organized certain production units to carry out special quality improvement actions on topicsincluding effective operation of the quality management system, contract manufacturing management, plant facilities andequipment management, on-site management, and validation and quali?cation, to further improve quality management, preventquality risks, and support high-quality development.

Each year, we organize sampling inspection and evaluation of products in market circulation. Internally, preventive testing is usedto address newly emerging quality and safety issues, further reducing quality risks. During the reporting period, based on productrisk assessments, CR Sanjiu organized internal sampling evaluations for 16 product varieties, and production units completedinternal sampling evaluations for 134 product varieties. All evaluation results met quality standard requirements, and productquality and safety were reliable.

To align with the intelligent transformation trend of the traditional Chinese medicine industry, CR Sanjiu has accelerated thedigitalization and intelligent upgrading of manufacturing. We widely promote the application of QMS and LIMS systems to realizecentralized management of quality data and real-time monitoring of key indicators, signi?cantly improving quality response e?ciencyand the scienti?c basis of decision-making. At the same time, we actively explore applications of new technologies such as AI-assistedtesting, Process Analytical Technology (PAT), and traditional Chinese medicine fingerprinting, advance the construction of smartlaboratories, and promote a shift in quality control from "post-event inspection" to "process controllability and source prevention".

In combination with CR Sanjiu's business characteristics and actual quality management conditions, and with "Integrity

and sincerity, craftsmanship in pharmaceuticals" as the guiding concept, we implemented the quality policy of "customer?rst, honesty and integrity, improvement and innovation, and excellent quality," and carried out the 2025 "Quality Month"activities..We organized quality-themed skills competitions such as thin-layer identification skills competitions, internal trainer

selection, and auditor selection, to further improve quality skills and select and cultivate professional technical talent.CR Sanjiu and its subsidiaries conduct quality-related training for suppliers each year based on supplier audit results,

providing item-by-item defect analysis and corrective action explanations, systematic training for weak modules, and

thematic training for suppliers on the newly issued national appendices for pharmaceutical excipients and pharmaceutical

packaging materials in 2025, helping suppliers improve their quality system construction in accordance with GMP appendix

requirements and continuously improve.

Thin-layer identi?cation quality-themed skills competition

To further promote company-wide quality action, fully implement the guiding principles of the 20th National Congress of the CPC and theSecond, Third and Fourth Plenary Sessions of the 20th CPC Central Committee, and relevant requirements including the CPC Central Committeeand the State Council'sOutline for Building a Quality Powerhouse, CR Sanjiu has built a quality culture led by leadership and participated inby all employees, continued to advance quality culture development, carried out multiple forms of quality culture communication, enhancedthe in?uence, penetration, and coverage of quality culture, improved company-wide quality awareness, and promoted high-quality corporatedevelopment.We further enhanced our political awareness, following Secretary-General Xi Jinping's valuable explanations on productive renewable energy,high-quality development, and food and medicine safety guidelines. We actively carry out the decisions and activities of the Party CentralCommittee and National Council on rapidly building a welfare state, and conscientiously ful?ll our corporate responsibility for welfare, ?rmlyinstilling welfare ?rst in all workers. To further strengthen all employees' awareness of quality risks, CR Sanjiu conducts a series of quality-themedtraining for all employees every year. During the reporting period, subsidiaries carried out various activities including quality training, regulatorysalons, and thematic seminars, ensuring employees master core skills and standard requirements for quality control, thereby better ful?llingquality requirements in daily work.

Promote a quality culture

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

TargetProgressImprove a standardized quality system and promotethe implementation of multi-dimensional qualitysystem certi?cations.

In 2025, a total of 24 domestic and international quality-related standardsystem certi?cations were obtained.Strengthen end-to-end risk prevention and control forquality and safety, and promote full coverage of ISO9001 certi?cation for manufacturing enterprises.

In 2025, 5 operational sites obtained ISO 9001 certi?cation.Deepen multi-level quality management audits,strengthen product quality sampling evaluation andcompliance control.

In 2025, CR Sanjiu completed quality audits of 46 production units as

planned. Headquarters organized internal sampling evaluations for 16

product varieties, and production units completed internal sampling

evaluations for 134 product varieties. All evaluation results met quality

standard requirements, and product quality risks were controllable.

In line with regulatory requirements for pharmaceutical quality management and the deployment for building a quality powerhouse, and toe?ectively implement the Company's quality strategy, CR Sanjiu has established quality-related indicators and targets and regularly tracks andevaluates target completion. In 2025, there were no major liability accidents related to the safety and quality of products and services.Metrics and targets

Governance

Information security system

Strategy

Delivering excellent serviceCR Sanjiu always places customer needs ?rst and continuously invests e?ort in improving its customer service system. From optimizingconsultation and inquiry processes to accelerating after-sales response times, we strive for excellence in every detail, steadily enhancingcustomer satisfaction. The Company focuses on strengthening the supply capability of pharmaceuticals and health services and activelypromotes the development of primary healthcare, enabling more people to conveniently access high-quality medical services andcontributing to the improvement of public health and wellbeing.We consistently comply with theLaw of the People's Republic of China

on the Protection of Consumer Rights and Interests,and fully respectand protect customers' lawful rights and interests. In daily operations, we regard customer information security and privacy protection as toppriorities and work to establish a comprehensive protection system. We actively expand diversi?ed communication channels, ensuring thatevery customer's voice is heard in a timely manner through hotlines, email, SMS, and interactive communication via social media platforms.CR Sanjiu has established a four-tier information security organizational structure. The Digital and Intelligent Leadership Committee serves asthe decision-making layer; the information security management teams at headquarters and each unit serve as the management layer; theinformation security execution teams at headquarters and each unit serve as the execution layer; and the Digital and Intelligent LeadershipCommittee simultaneously performs supervisory functions. This forms a closed-loop information security management mechanism with clearresponsibilities and layered accountability.We are committed to building a comprehensive consumer complaint feedback mechanism to ensure that every customer request is properlyhandled. At the service level, we pursue "?ve-heart" caring services—"reassurance, sincerity, attentiveness, meticulousness, and enthusiasm"—integrating care into every customer touchpoint. By continuously optimizing service processes and improving service quality, we steadilyenhance customer satisfaction and inject strong momentum into the continuous improvement of product quality and service standards.

Risk type and description

Potential ?nancialimpact

Opportunity type and description

Potential ?nancialimpactReputational risk:

Violations of theAdvertising Law,Personal Information Protection Law,Consumer Rights Protection Law, etc.,in marketing promotion, customerinformation management, complainthandling, or medication education.

Increased compliancepenalties, recti?cationand legal costs

Market opportunity:

Market opportunity: Capturingincreasing consumer demand forservice quality, privacy protection, andmedication education under healthconsumption upgrading; enhancingcustomer satisfaction and brand loyaltythrough high-quality omnichannelservices and responsible marketing..

Increased brandvalue and marketrecognition;expanded marketshare

Reputational risk:

Delayed after-sales response,improper complaint handling,misleading marketing, or privacyprotection lapses may directly damagebrand reputation and public trust andtrigger negative public opinion.

Decline in sales;damage to brandvalue

Policy opportunity:

Aligning with national policies onconsumer protection, compliantpharmaceutical marketing, anddata security supervision; improvingservice and compliance systems tomeet regulatory requirements andobtain compliance-based competitiveadvantages.

Reduced compliancerisk costs; improvedoperationale?ciencyTechnical risk:

Technical vulnerabilities or insu?cientprotection in customer informationsystems, e-commerce platforms, orcustomer service systems may resultin data leakage or system interruption,a?ecting customer service andinformation security.

Potential penaltiesrelated to datasecurity

Risks, opportunities and potential impacts related to safeguarding customer rights

Customer privacy protection

CR Sanjiu continuously improves its institutional framework. In accordance with theCybersecurity Law, Data Security Law, and PersonalInformation Protection Law, the Company has formulated corepolicy including theCR Sanjiu Information Security Management Measures,China Resources Sanjiu Data Security Management Measures, andChina Resources Sanjiu Data Backup and Disaster Recovery ManagementMeasures. In e-commerce scenarios, supporting documents such as theChina Resources Sanjiu Membership Rules and Privacy AuthorizationAgreementand theChina Resources Sanjiu Customer Service Center Management Manualstandardize privacy protection operations inmembership information management, customer consultation, and order processing. Employee behavior in information processing, storage,and transfer is strictly regulated, and unauthorized disclosure or tampering of customer information is strictly prohibited. A data securityemergency response mechanism and information security liaison system have been established, clearly defining graded reporting andhandling procedures for security incidents. Data security audit rules are formulated, full records are maintained for data access, modi?cation,and deletion on e-commerce platforms, and regular compliance self-inspections and risk assessments are conducted.

Impact, risk and opportunity management

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard aharmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

After-sales complaint handling

In 2025, CR Sanjiu's e-commerce platform received 94 product and service complaints due to safety and health concerns. Theprocedures for handling complaints are as follows: First, in cases where misleading advertising results in inappropriate purchase or use,the advertisement is corrected, and the refund is negotiated with customers, taking into account their interests. Second, for adverseexperiences experienced by customers, appropriate refunds and compensation were based on photographs or videos of adversesymptoms provided by customers, as well as hospital diagnosis certi?cates. The customer complaint department has a 100 % responserate, an average response time of 1 to 3 days, and a 100% resolution rate.

The Company has formulated the Customer Complaint Management Operating Procedures to standardize complaint classi?cation,complaint receipt procedures, complaint investigation and handling, and complaint response processes, thereby improving complainthandling effectiveness in a timely and effective manner. A 400-800-0999 customer service hotline has been established to ensurecomplaints are properly handled while meeting customer consultation needs, continuously improving the customer service systemand enhancing consumer satisfaction.

Promoting safe medicationWe further strengthen safety signal detection, adverse reaction monitoring, revision of drug instructions, and standardized managementof GAP labeling. Taking the opportunity of "March 15 International Consumer Rights Day," we carry out medication safety outreachactivities in communities and continuously disseminate drug safety knowledge to a broader range of stakeholders.Implementing responsible marketing

We consistently uphold a consumer-first principle and actively practice responsible marketing and communication, safeguardingcustomers' right to be informed about product information and ensuring transparency. We also actively explore and establish newmarketing models and continuously expand diversi?ed marketing channels.

CR Sanjiu Customer Complaint Redressal Procedures

Complaintclassi?cation

Complaintinvestigation

Complaint

handling

Complaintfollow-upComplaintreception

999 ganmaoling practicing health education social responsibility through creative marketing

999 Ganmaoling Promotional Advertisement

New marketing models

Responsible marketing and compliant communication

CR Sanjiu continuously improves its responsible marketing management structure and responsibilities to ensure stable system operation.The marketing management department organizes and leads daily responsible marketing activities, while management supervises theimplementation of responsible marketing.The Company expresses advertising content in a truthful, lawful, and healthy manner and strictly prohibits false or misleading promotion.We strictly comply with the Advertising Law of the People's Republic ofChina, the Drug Administration Law of the People's Republicof China, and the Provisions on the Administration of Drug Instructions and Labels, and remain accountable to consumers. During theReporting Period, the Company issued theResponsible Marketing Policy, clarifying responsible marketing requirements for internal andexternal personnel and realizing standardized management of responsible marketing. A responsible marketing review and supervisionmechanism has been established. All marketing materials must be approved, and marketing and sales behaviors are regularly inspectedto prevent misleading or concealed information.The Company's audit department regularly conducts audits of e-commerce platform marketing and sales departments, covering areassuch as marketing expense management and sales conduct, and requires recti?cation within speci?ed time limits for identi?ed issues. In2025, a special audit was conducted on digital marketing business.To e?ectively implement responsible marketing practices, regular media knowledge and responsible marketing training are conducted forall marketing personnel. The Company has also established open complaint reporting channels and strictly implements investigation andhandling procedures for received feedback, conducting periodic reviews to continuously improve responsible marketing managementmechanisms.

We gain insight into the fundamental needs of consumers and conduct innovative marketing activities across platforms and dimensions.Through integrated online and o?ine marketing centered on holiday themes, cross-industry collaborations, and program IPs, we enhancemedia communication e?ciency, increase customer engagement, and continuously inject vitality into the Company's brand.

999 Ganmaoling under CR Sanjiu innovatively practices ESGresponsible marketing. Centered on winter cold preventionhealth education, and leveraging public scenarios such ascommercial districts and subway stations, the Companycustomized caring and warming message copy alongsidesurrounding advertisements without directly mentioningcelebrity names or the brand name.Through light and low-cost creative communication, healthprotection concepts were delivered in a friendly and engagingmanner, gaining wide positive feedback from consumers.This marketing campaign effectively strengthened 999Ganmaoling's national brand image and goodwill, integratedhealth education into daily life, enhanced public awarenessof winter cold prevention, and represented a practical modelof integrating "creative marketing + health education + socialresponsibility" within the pharmaceutical industry.

CR Sanjiu consistently adheres to a customer-centric service philosophy. In line with regulatory requirements related to consumer rightsprotection, and to e?ectively implement the Company's excellent service development strategy, we have systematically established indicatorsand targets related to service excellence, built mechanisms for target tracking, dynamic evaluation, and closed-loop optimization, ensurede?ective implementation of service measures, and continuously improved customer experience and service quality.

TargetProgress

Establish an omnichannel, high-e?ciency customerservice system and continuously improve customersatisfaction and loyalty.

Complaint service response rate: 100%;average response time: 1–3 days;resolution rate: 100%.Strictly implement data compliance requirementsand achieve full-process security control of customerprivacy.

Through improving cybersecurity management, technical andoperational safeguard frameworks, establishing data securityemergency response mechanisms and information security liaisonsystems, clarifying graded reporting and handling procedures forsecurity incidents, and continuously strengthening information securityrisk prevention and control, the Company experienced no data securityincidents and no customer privacy leakage events in 2025

Metrics and targets

Ensure drug safety

We continuously deepen and improve our product lifecycle management system, aiming to "create an e?cient and controllable qualitycontrol model." From raw material management and drug production to warehousing and transportation, and then to product traceabilityand pharmacovigilance, we integrate risk management into every stage of the product lifecycle, taking the quality of medicines (e?cacy,safety, and quality) as the cornerstone of our company's survival and development, and being responsible for public health.

Source controlThe Company extends its quality control system deeply to the upstream of the industrial chain, establishing national seedand seedling bases for Chinese medicinal materials and standardized planting bases for Chinese medicinal materials. Itstrictly implements the inspection process for Chinese medicinal materials entering the factory, conducts comprehensivequality audits and dynamic risk management of material suppliers, and regularly inspects their planting environment,production and processing, and other core links to build a solid quality defense line for Chinese medicinal materials from thesource. For key Chinese medicinal material varieties, the Company simultaneously establishes planting bases in productionareas and fully promotes GAP standardized production. At the same time, it builds a supply chain risk managementmechanism, conducts regular supply risk assessments and early warnings, identi?es and prevents potential risks in advance,and comprehensively improves the resilience of the supply chain while e?ectively ensuring the stability and quality controlof raw material supply.

Pharmaceutical production

The Company continues to increase its R&D investment, steadily promotes the upgrading of product quality standards,and simultaneously improves internal control standards for materials and products; it is building a process technologyinnovation platform to empower product competitiveness through technology. At the same time, it strictly implementsthe primary responsibility of the drug marketing authorization holder for drug quality and safety, organizes all subsidiariesto fully implement relevant requirements, strengthens quality supervision and management throughout the entire drugproduction process, and e?ectively prevents quality and safety risks in the production process.

Warehousing and logisticsPromote the integrated development of transportation, unify and centrally manage production logistics and sales logistics,establish a set of standardized transportation management processes and standards, and ensure the quality and safety ofproduct transportation.

Drug traceabilityThe Company has established ERP, WMS, TMS, OMS, and product traceability systems to achieve full-process traceabilityof warehousing and transportation, ensuring that drug quality and risks are controllable during warehousing andtransportation. Simultaneously, by adding automated equipment such as AGVs, elevators, and visual barcode scanners, theCompany has achieved automation and intelligence in warehousing operations, improving operational accuracy and drugquality and safety.

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Emergency response

An EHS Committee has been established to oversee emergency response e?orts related to food and pharmaceutical safetyincidents. The company has developed key system documents, including the "Detailed Rules for EHS Incident Managementat China Resources Sanjiu"and the"Guidance on Comprehensive Emergency Response Plan for Food and PharmaceuticalSafety Incidents at China Resources Sanjiu", thereby establishing a robust and standardized operational mechanism forresponding to food and pharmaceutical safety emergencies. These measures guide and standardize emergency responseprocedures across all levels of the organization, signi?cantly enhancing the speed of response and the coordination ande?ectiveness of incident management.Clear delineation of responsibilities between headquarters functional departments and subsidiary enterprises has beendefined, promoting efficient cross-level collaboration. In the event of an incident, an emergency response task force ispromptly dispatched to the site to provide on-site guidance and support, ensuring timely, accurate, and e?ective actions.Through systematic management and practical response drills, the company continues to strengthen its capability inpreventing and mitigating pharmaceutical safety risks. This proactive approach minimizes potential impacts on publichealth and social reputation, ?rmly safeguarding the safety of food and pharmaceutical products.In 2025, the company reported no quality or safety incidents, re?ecting a stable and controllable overall quality and safetyperformance, underscoring the e?ectiveness of its comprehensive risk prevention and control system.Product recall

The company has established the "China Resources Sanjiu Product Recall Management System," clarifying the handlingprocedures after adverse drug events in accordance with the national "Drug Recall Management Measures." Aftercollecting relevant information, the company and its subsidiaries promptly organize drug safety hazard investigations andassessments, determine the recall level, formulate and implement recall plans, and generate recall summary reports. Allrelevant investigations, plans, progress, and handling are reported to the provincial drug regulatory authority as required.The recall summary report must explain the product shipments, recall quantities, and balance. Simultaneously, the companythoroughly investigates the root causes of recall quality incidents, formulates corrective and preventative measures, trackstheir implementation, and evaluates their effectiveness. The company and its subsidiaries regularly conduct simulatedrecalls to ensure that actual recall work is carried out in accordance with regulations. Furthermore, each subsidiary, inaccordance with the emergency management requirements for food and drug safety emergencies, revises relevant systemsand procedures for product recall, pharmacovigilance, drug traceability, and quality and safety incident management, andsimultaneously conducts emergency drills and simulated recall activities for food and drug quality and safety incidents. In2025, the company did not experience any product quality-related recalls or any general or above-level food and drug qualityand safety incidents.

Pharmacovigilance

Strictly adhering to relevant pharmacovigilance regulations, a comprehensive pharmacovigilance system has been established,covering the entire lifecycle of drugs from pre-market clinical trials to post-market use. This system encompasses the entire processof adverse reaction and drug-related issue detection, monitoring, evaluation, identi?cation, assessment, prevention, and control,and is continuously optimized to ensure timely and e?ective management of drug safety risks and safeguard public medicationsafety. A multi-channel adverse reaction information collection and feedback mechanism has been established, utilizing channelssuch as operating companies, medical institutions, customer service hotlines, and academic literature to conduct proactivepost-marketing surveillance and collect serious adverse events during clinical trials, as well as SUSAR reporting, achievingcomprehensive collection of drug safety information throughout its entire lifecycle. An emergency response mechanism for drugsafety incidents has been established, standardizing emergency response procedures to e?ectively prevent drug safety incidentsand minimize their harm to public health and safety. A pharmacovigilance audit and continuous improvement mechanism hasbeen established, conducting regular internal self-inspections and audits to assess the suitability, adequacy, and e?ectivenessof the system. Active cooperation with external regulatory bodies' GVP inspections is also undertaken; both internal and externalinspection results for this year have met requirements, ensuring the pharmacovigilance system's compliance and continuousimprovement.

Adhere to the principles of green anddistance, and jointly paint an ecologicalhome National requirements

Upholding Integrity and DrivingInnovation to Jointly Safeguard a

Harmonious Society

Adhering to Integrity and ClearRegulations, and Laying a SolidFoundation for Sound Operation

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard aharmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Strengthening collaborative research and development and independent innovation, the Company is advancing the development of ONC201for the treatment of H3K27M-mutant di?use midline glioma. The Company has obtained exclusive rights for the development, production,and commercialization of this product in Greater China. The locally produced product has completed Phase I clinical trials in China and hasbeen included in the Key Product Service List of the CDE Greater Bay Area Sub-Center, contributing to improving of rare disease preventionand treatment. In 2025, in collaborate with Nanjing Aierpu Regenerative Medicine, we jointly developed HiCM-188, the world's ?rst iPSC-derived cardiomyocyte innovative drug to receive simultaneous clinical trial approval synchronously in China and the US. This addresses theunmet clinical need of severe chronic ischemic heart failure, and the product has now entered Phase II clinical trials in China, helping to solveclinical treatment challenges in the ?eld of heart failure. The Company continues to advance the development of PXT3003 for the treatmentof Charcot-Marie-Tooth disease type 1A (CMT1A), which is currently under review by the CDE (Center for Drug Evaluation). As the world's ?rstand only treatment for CMT1A, PXT3003 can signi?cantly improve the limitation of daily activities in CMT1A patients with a favorable safetypro?le, and is expected to ?ll the gap in this rare disease treatment area. Meanwhile, CR Sanjiu is conducting drug R&D for major diseasessuch as stroke and malaria, addressing gaps in disease treatment. At the end of the Reporting Period, the Company had a total of 20 R&Dprojects targeting 9 rare/major diseases (by indication), among which 10 products for 8 categories of rare/major diseases (by indication) havebeen approved for marketing.

Promoting health accessibility

We remain committed to our original aspiration of safeguarding public health. By optimizing production processes and controlling costsscienti?cally, we ensure that safe and reliable health products and professional services are accessible to the public at a?ordable prices.Simultaneously, we deepen collaboration with primary healthcare institutions through diversi?ed initiatives such as medicine donations andmedical skills training. These e?orts help extend the reach of medical services, ful?ll our health responsibilities and social commitments, andexpand health bene?ts to broader populations.

Major diseases refer to the 20 diseases that impose the heaviest burden of disability-adjusted life years globally.

CR sanjiu rare and major disease drugs

Disease area/indications/therapeutic functions

Marketing status

Colchicine TabletsFamilial Mediterranean feverMarketedXuesaitong Series ProductsAcute ischemic strokeMarketedPuyuek (Recombinant Human Prourokinase)StrokeMarketedArtemisinin, Its Derivatives (APIs and Preparations)MalariaMarketedWakix? (Pitolisant Hydrochloride Tablets)NarcolepsyMarketedCompound Danshen Dripping Pills

Chest Stu?ness (due to qi stagnation andblood stasis), Angina Pectoris of CoronaryHeart Disease

Marketed

Pharmaceutical R&D for rare and major diseases

List of rare and major disease drugs from cr sanjiu

CR sanjiu rare and major disease drugs

Disease area/indications/therapeutic functions

Marketing statusQishen Yiqi Dripping Pills

Chest Stu?ness (due to qi de?ciency andblood stasis), Angina Pectoris of CoronaryHeart Disease

Marketed

Huoxiang Zhengqi Dripping Pills

Exogenous wind-cold, internal dampstagnation: headache, dizziness, epigastric/abdominal distension and pain, vomiting,diarrhea, gastrointestinal cold

MarketedCompound Danshen Dripping Pills (for DiabeticRetinopathy)

Diabetic RetinopathyMarketedYangxue Qingnao Granules/Pills

Headache, dizziness, blurred vision, irritability,

insomnia (due to blood de?ciency and liver

hyperactivity)

MarketedPXT3003Charcot-Marie-Tooth Disease Type 1A (CMT1A)In ResearchCMI2402Primary Biliary CholangitisIn ResearchNew Artemisinin Derivative FormulationsMalariaIn ResearchKYAZ01-020StrokeIn ResearchB2065 - Adipose-derived Mesenchymal Stem CellInjection

Acute Ischemic StrokeIn ResearchTCM2008 - Qishen Yiqi Dripping Pills(New Indication: Diabetic Nephropathy)

Diabetic NephropathyIn ResearchTCM2501 - Qihuang Yishen GranulesDiabetic NephropathyIn ResearchONC 201 CapsulesH3 K27M-mutant Di?use Midline GliomaIn ResearchiPSC-derived Cardiomyocyte Innovative Drug HiCM-188Severe Chronic Ischemic Heart FailureIn ResearchTCM1408 - Changkang Granules

Diarrhea-predominant Irritable Bowel

Syndrome (IBS-D)

In ResearchCMI1203-JS1-1-01Moderate to Severe DepressionIn Research

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Construction of a modern logistics system

Fair and reasonable pricing

Combating counterfeits and substandard drugs

Expansion in developing countries and emerging markets

We are improving a specialized, intelligent, and lean modern logistics system to provide robust support for the safety, stability, andaccessibility of medicines from the supply end. We have established a decision-support system for warehouse network planning. Utilizingscientific data models and algorithms, and factoring in business scale, delivery timelines, and logistics costs, it generates real-timesuggestions for optimal warehouse network layouts. Our nationwide warehouse network achieves full coverage, effectively improvingdelivery speed and reducing logistics operational costs while meeting business demands. Warehouse functions are categorized based onproduct attributes and production-sales regions, employing a "Central Warehouse + Regional Warehouse" operational model to enhancecoordination, logistics e?ciency, and customer service. We are advancing integrated transportation management by centrally overseeingboth production and sales logistics. Standardized transportation management processes and diversified distribution models such asfull truckload, less-than-truckload, and express delivery to ensure product quality and safety during transit, catering to various businessscenarios. We are deepening lean logistics initiatives, implementing ?exible billing models for third-party warehousing and exploring tieredpricing models to reduce storage costs. The development of smart logistics is underway. Systems like ERP, WMS, and TMS enable end-to-end traceability, providing data for operational optimization. Our self-managed warehouses are advancing automation; fully automatedunmanned receiving is already operational, while automated equipment like AGVs and visual scanning systems are in testing and integration.Future projects include automated truck loading, continually enhancing the intelligence level of our logistics.

We strictly adhere to laws and regulations, including theAnti-Monopoly Law of the People's Republic of China and the Guidance onStrengthening Current Drug Price Management, refraining from interfering with terminal drug prices to protect fair market competition.Pricing is determined for di?erent products in accordance with theChina Resources Sanjiu Marketing Department Product Price AdjustmentManagement Rules, ensuring patients have access to medicines at reasonable and fair prices. Furthermore, in di?erent national markets, weestablish fair and ?exible pricing mechanisms based on local economic conditions and the actual needs and payment capabilities of patients.We actively respond to national policies, continuously promoting the inclusion of our products in the national medical insurance catalogto bene?t public welfare with more favorable drug prices. Some products are included in the national medical insurance reimbursementlist and centralized procurement programs, and are subject to tiered pricing as per national regulations, allowing patients to enjoy di?erentmedical insurance reimbursement ratios for di?erent drug categories. At the end of the Reporting Period, the Company is steadily advancingthe online listing and hospital admission of products winning centralized procurement bids as provinces implement the procurement results,ful?lling the requirements for fair and transparent drug pricing through concrete actions.

We support government authorities in strictly regulating counterfeit and substandard drugs, protecting the legitimate rights and interests ofconsumers and patients in accordance with the law. Through platforms such as the "Aichuang Regulatory Code" and "Code for Assurance",we have established a comprehensive product informatization traceability system, ensuring the production and distribution path of drugsis queryable and traceable. We strengthen sampling inspections and veri?cation during the design and usage of labels to reduce the risk ofcounterfeit, substandard, or mislabeled drugs entering the pharmaceutical distribution system.

Kunming Pharmaceutical Group plans to achieve market access and achieve scaled sales for its key products (such as the Xuesaitong seriesand artemisinin-based products) in 3 to 5 core emerging market countries by 2027, including target markets such as Kyrgyzstan, Uzbekistan,Zimbabwe and Nigeria. We continuously explore international business cooperation channels and models, promote product approvals andsales, and increase our presence and market share in emerging markets to provide better, more accessible pharmaceutical solutions forpatients globally. Additionally, Tasly actively responds to the Belt and Road Initiative, enhancing exchanges and collaborative developmentwith developing countries and emerging markets in areas like drug R&D and registration. It delivers high-quality traditional Chinesemedicine (TCM) products and health services to countries along the Belt and Road, using TCM as a bridge to promote inclusive global health.Leveraging platforms such as the SCO Summit in Tianjin, Tasly deepens cooperation with partner countries in traditional medicine research,talent cultivation, and other areas, promoting the international dissemination of TCM culture and health concepts, and contributing to thehealth and well-being of people in Belt and Road partner countries.

Overseas expansion and assistanceKunming Pharmaceutical Group actively ful?lls the international social responsibilities by conducting foreign aid training programs. Theseprograms have covered 226 participants from 26 countries across various professional ?elds, including infectious disease prevention andcontrol, and traditional medicine. Both ongoing and planned projects have achieved a high level of ful?llment. We focus on promoting thedissemination of TCM culture and medical technologies to Belt and Road countries and nations like El Salvador. Through workshops, on-site practical training, and other formats, we empower local medical talent development and healthcare capacity building, serving as abridge for cultural exchange and technical collaboration, thereby ful?lling our responsibility in building a global community of health forall. Concurrently, we continue to expand our overseas market presence, with a strategic focus on deepening our footprint in Africa. We areestablishing a diversi?ed sales network through cooperation with local distributors, establishing in-house sales teams, setting up subsidiaries(e.g., a local pharmaceutical company in Tanzania), and developing cooperation models tailored for West Africa, ensuring e?cient productdistribution. We actively engage with public institutions in multiple African countries, such as Ministries of Health and National MalariaControl Programs, and participate in anti-malarial drug tenders issued by local governments and international organizations like the GlobalFund. In 2025, we secured a Global Fund procurement order for artemisinin-based anti-malarial drugs covering approximately 1.23 milliontreatment courses. By supplying high-quality artemisinin-based anti-malarial drugs, we support national malaria control programs, provideaccessible and a?ordable medicines to people in high-burden regions, and contribute to the development of global public health.

International business is steadily advancing

Sales of artemisinin-based preparations have achieved steady growth in over 30 malaria-endemic countries and regions,including in Africa.Cotexin (artemether-lumefantrine), a WHO-prequali?ed product, has obtained marketing approval from local drug regulatoryauthorities in 15 countries, including Ethiopia, Tanzania, Malawi, Ghana, Angola, and Zimbabwe.Panax notoginseng (Sanqi) products have received marketing approval in Vietnam, Myanmar, Cambodia, Mongolia, Uzbekistan,and Indonesia.Huxin Dan (Heart-protecting Pill) and Yangxue Qingnao Granules have obtained herbal preparation re-registration approval fromthe Nigerian drug regulatory authority (NAFDAC).Qishen Yiqi Dripping Pills and their capsule formulation have received traditional medicine re-registration approval from theMalaysian drug regulatory authority (NPRA).Huxin Dan (Heart-protecting Pill) has obtained phytomedicine re-registration approval from the drug regulatory authority of theDemocratic Republic of the Congo.

In 2025

Kunming Pharmaceutical Group's training program in Africa

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Industry cooperation and win-win

Aligned with strategies for scientific innovation, researchcommercialization, and talent cultivation, CR Sanjiu andour subsidiary, CR Shunfeng, have established in-depthcollaborations with multiple universities, including ZhengzhouUniversity, Shenyang Pharmaceutical University, and ChinaPharmaceutical University. Leveraging the universities'strengths in scientific research and talent in fields like lifesciences and pharmacy, combined with the enterprise'sindustrial application capabilities, we are building a university-enterprise collaborative innovation ecosystem. Throughmulti-level cooperation, we deepen the co-cultivationof talent, fostering high-caliber professionals with boththeoretical foundation and practical experience. This drivesthe industrialization of research outcomes, helps establish abenchmark for university-enterprise collaborative innovation,and supports national health strategies.

Synergistic cooperation and developmentUpholding the principles of openness and win-win cooperation, we actively build a diversi?ed strategic cooperation system, continuouslydeepen synergy and interaction with our partners, and strive to promote the overall leapfrog development of the industry chain. Bycollaborating with numerous partners and expanding the breadth and depth of our cooperation, we strive to realize our shared vision ofmutual development and mutual bene?t.

CR Sanjiu Signs a Strategic Cooperation Agreementwith Zhengzhou University

Promoting industry advancementWe are committed to deep strategic collaboration with our partners, regularly holding business negotiations, industry forums, and industrysummits to jointly discuss market and technological innovation, achieve resource sharing, and explore new paths for industrial development.Simultaneously, we are building academic exchange platforms, actively participating in industry activities, implementing national policies,and enhancing our industry in?uence. We proactively participate in and lead the formulation of industry standards, focusing on productquality and production processes to improve the overall quality and operational efficiency of the industry, and promote the innovativedevelopment of the traditional Chinese medicine industry.

Developing university-enterprise cooperation

Key performance

Participated in the formation of

international Standard

National Standards

Industry Standards

CR Sanjiu strictly adheres to theSupplier Quality Management Procedure, assigning dedicated personnel to continuously collect andreview suppliers' EHS (Environment, Health, and Safety) management status and relevant certifications. We closely monitor regulatorydevelopments, systematically gather and audit suppliers' safety, environmental, and occupational health management systems andcertifications. A dedicated role is established to consistently track changes in regulatory policies, industry compliance violations, andsigni?cant supplier incidents, ensuring suppliers continuously meet legal, regulatory, and the company's ESG standard requirements.

We have developed and continuously improve our Supplier Code of Conduct

,requiring suppliers and other business partners to committo compliance with integrity regulations. We require suppliers to establish anti-corruption policies and a compliance inspection system toensure the e?ectiveness of their anti-corruption mechanisms.

The Company implements tiered and categorized management based on the supplier management system. For suppliers of centrallyprocured materials, multi-dimensional performance evaluations are conducted quarterly. Led by the procurement department andcoordinated with production, warehousing & logistics, and quality management departments, data is collected. Evaluation metrics covercore elements such as quality quali?cation rate, on-time delivery rate, and service responsiveness. Supplier ratings are determined basedon evaluation results, accompanied by di?erentiated incentives and corrective measures.

Supplier management

Supplier anti-corruption

Supplier performance evaluation

Key performance

Number of suppliers audited

1,076

Number of supplier partnerships terminated due to

non-compliance with sustainability requirements

Number of potential suppliers rejected due tonon-compliance with sustainability requirements

Percentage of suppliers who signed the SunshineDeclaration

%

Suppliers are crucial strategic partners for the company's high-quality development. CR Sanjiu consistently adheres to a core philosophy ofmutual bene?t and win-win cooperation. We select partners based on scienti?c and rigorous criteria, strictly follow the CR Sanjiu SupplierCode of Conduct, and have established management speci?cations such as theSupplier Quality Management Procedure. We encouragesuppliers to deeply implement sustainable development concepts, thereby strengthening the foundation of the supply chain at its sourceand building a symbiotic and mutually bene?cial supply chain ecosystem.

Upholding transparent procurement

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard aharmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Mitigating supplier risksIn an increasingly complex supply chain environment, supplier risks can impact business operations at any time. We regard mitigatingsupplier risks as a crucial component of supply chain management. By establishing a comprehensive risk response mechanism andimplementing precise, e?ective measures, we ensure the stability and security of the supply chain, safeguarding the Company's sustainabledevelopment.

Case:cr sanjiu conducts specialized supplier compliance trainingIn 2025, aligned with the GMP annex requirements forpharmaceutical excipients and packaging materialsissued by the National Medical Products Administration,CR Sanjiu organized specialized video training onquality management and compliance for suppliers ofpharmaceutical raw materials, excipients, and packagingmaterials. This initiative strengthened the suppliers'understanding and implementation capabilities regardingregulatory requirements and key quality control points.

On-site View of the Specialized Compliance Video Training

A "Core Material Supply Risk Level" monitoring indicator has beenestablished. This metric gauges the number of core materialspotentially facing supply shortages or abnormal price ?uctuationswithin the next 3-6 months. The risk level for each individualmaterial is indicated by a tra?c-light system: a yellow light signalsa potential general supply risk, and a red light signals a potentialsigni?cant supply risk.

Through the continuous assessment and early warning of corematerial supply risks, we actively monitor the supply market forthe company's critical materials. Based on identified risks, weformulate short-, medium-, and long-term response measures,coordinate resources to address supply challenges, and establishchannels to secure supply safety.

The Company and our subsidiaries conduct comprehensive quality evaluations of direct suppliers and material suppliers in accordancewith established procedures. Key evaluation dimensions include on-site audit scores and the rate of quali?ed supplied materials. At thebeginning of the year, suppliers are dynamically assessed and rated based on their audit cycle scores and the quali?ed supply rate from theprevious year. Di?erentiated audit and risk control strategies are then developed according to the rating results. During on-site audits of Tier-1 suppliers, CR Sanjiu concurrently extends the review to examine their management documentation, implementation records, and qualityaudit records concerning their own Tier-2 suppliers. Any identi?ed issues are documented as audit de?ciencies with follow-up for correctiveactions, ensuring the compliance of Tier-2 suppliers' quality systems and product quality. In 2025, the company completed the scheduledperiodic audits of Tier-2 suppliers as planned. All audit conclusions were "Pass", with continuous tracking of subsequent corrective actions.

The Company and our subsidiaries conduct annual audits of all suppliers according to the annual audit plan. The audit team leader organizestargeted training for key personnel of the audited suppliers, focusing on de?ciencies and weaknesses identi?ed during the audit. The trainingoutcomes have met expectations. During the Reporting Period, the Company and our subsidiaries organized various supplier drills, coveringover 6,700 participants from supplier organizations and totaling more than 42,000 person-hours. This ongoing e?ort continuously enhancessuppliers' compliance awareness and competency in product safety and quality management.

Supply chain risk monitoringSupply chain risk prevention

Supplier quality audits

Supplier product safety and quality training

Ensuring supply and logistics qualityWe actively advance the construction of a modern logistics system characterized by specialization, scale, and integration. We are committedto meeting the pharmaceutical and medical needs of consumers and patients with high quality and e?ciency, ensuring medicines reach abroader population in a more timely manner.

We have established a decision-support system and scienti?c data models for warehouse network planning. Utilizing algorithms thatfactor in business scale, delivery timelines, and logistics costs, the system generates real-time recommendations for optimal warehousenetwork layouts.Warehouse network planning

We implement unified and centralized management of production and sales logistics, establishing standardized transportationmanagement processes. The system supports various distribution modes, including full truckload, less-than-truckload, and expressdelivery, meeting the needs of di?erent business scenarios and ensuring the quality and safety of product transportation.Integrated transport development

Systems such as ERP and WMS are utilized to achieve end-to-end traceability of the logistics process, providing data support for logisticsoperations and optimization. Our self-managed warehouses continue to advance automation; fully automated unmanned receiving hasbeen implemented, and an automated truck loading project will be promoted in the future.Smart logistics development

Warehouses are categorized based on product attributes and production-sales regions. A "Central Warehouse + Regional Warehouse"operational model is employed to achieve multi-warehouse synergy, enhancing logistics operational capabilities and customer servicelevels.Warehouse categorization

We are transitioning third-party logistics warehousing services to a ?exible billing model and exploring tiered pricing models to reducestorage costs. A ?xed transport capacity pool model has been created, establishing ?xed round-trip transportation routes through networkplanning to achieve full truckloads. This improves transportation e?ciency while reducing costs.Lean logistics development

We have formulated regulations such as the CR Sanjiu Logistics Supplier Procurement Management Rules and established an emergencylogistics support mechanism for unexpected events. Guided by theLogistics Emergency Management Operational Guidelines, we respondpromptly to emergencies like pandemics and natural disasters to ensure the stable operation of logistics activities.

Logistics emergency management

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Case:strengthening quality through standards, achieving synergistic wins:

cr shenlu conducts supplier training

5In August 2025, CR Shenlu hosted a communication conference for medicinal material suppliers under the theme"Pharmacopoeia as the Guideline, Internal Control as the Safeguard; Win-Win Cooperation, Shared Development." Theevent focused on discussing core issues of medicinal material quality improvement and supply security. The trainingsystematically communicated the Company's latest raw material quality standards and quality management requirementsto suppliers. It deepened the shared awareness of quality control between the supply and demand sides, e?ectively brokedown information barriers to collaboration, facilitated smoother and more efficient future cooperation, strengthenedthe frontline defense for drug raw material quality, and solidified the foundation for mutually beneficial supply chaincollaboration.

China Resource Shenlu

Win-win cooperation with suppliersWe highly value win-win cooperation with our suppliers. Through a series of e?ective systems and measures, we continuously strengthenthe capacity building of our supplier partners. We provide them with professional technical guidance to enhance their ability to fulfillresponsibilities. By o?ering on-site technical guidance and information sharing to key raw and auxiliary material suppliers, we continuallybolster the sustainable development capabilities of the supply chain.

Key performance

Supplier audit recti?cationcompletion rate of

%

by 2025

In 2025, the Company and our subsidiaries organizedvarious drills for suppliers totaling over6,700participants

The total number of trainees exceeded42,000 hours

CR Sanjiu adheres to a "people-oriented" development philosophy, considering talent the cornerstone of the Company's high-qualitydevelopment. We are committed to fostering a respectful, inclusive, and collaborative work environment, focusing on employees' growthneeds, and their physical and mental well-being, ensuring every contribution is seen and every dream can grow. In 2025, we conducted asatisfaction survey focusing on dimensions such as employee care and health check-ups, covering 100% of employees. The satisfaction rateregarding employee care initiatives reached 82.2%. To further enhance employee satisfaction, CR Sanjiu has identi?ed areas for improvementand is continuously optimizing and tracking various management measures.

Creating a harmonious workplace

Protecting employee rights and interestsWe strictly comply with the requirements of relevant laws and regulations such as theLabor Law of the People's Republic of Chinaand alsorefer to international standards like conventions of the International Labour Organization (ILO) to regulate management in recruitment anddismissal, compensation and promotion, working hours and leave, thereby safeguarding the legitimate rights and interests of our employees.We strictly adhere to relevant national laws and regulations such as theLabor Law of the People's Republic of Chinaandthe Provisions onthe Prohibition of Child Labor,

legally and compliantly protecting employee rights. We sign formal labor contracts with employees, establishreasonable working hours and leave systems, and fully ensure that employees' legitimate rights are not infringed upon. Comprehensivecompensation and employment policies are in place to ensure the compliance, openness, and transparency of recruitment and promotionprocesses. In 2025, there were no incidents of discrimination, employment of child labor, or forced labor.

Safeguarding fundamental rights

We consistently advocate for a diverse, equal, and people-oriented work atmosphere, adhering to a zero-tolerance principle towardsdiscrimination, and fostering an honest, trusting, diverse, and inclusive work environment. In recruitment, compensation, training,promotion, and other areas, we do not discriminate against or treat employees unfairly based on religion, race, gender, educationalbackground, appearance, age, nationality, etc. The Company also actively provides employment opportunities for disadvantagedgroups, creating an equal, inclusive, and harmonious work environment.

Upholding equal employment

We have improved the system for Workers' Congresses, promoting the establishment of these congresses at all levels where applicable,and have built a multi-level Workers' Congress system from the corporate headquarters to grassroots enterprises. In 2025, the Company'sWorkers' Congress reviewed and approved signi?cant matters concerning employees' vital interests, such as adjustments to the enterpriseannuity scheme, and listened to and discussed the business operation report, enabling employee representatives to deeply participate in theCompany's major decision-making processes.

Strengthening democratic management

The Company has established formal employee grievance channels, ensuring they are unobstructed and that the reasonable demands ofcomplainants are e?ectively resolved, while strictly maintaining the con?dentiality of grievance information and its content. We provideemployees with diverse and convenient communication platforms, such as the "Sanjiu Forum", "Green Mailbox/ Discipline InspectionComplaints", "Run Work" and the "Employee Voice Platform " for internal communication, sharing views, and handling complaints,fostering a positive and transparent corporate culture. The Company has established a Labor Dispute Mediation Committee and formulatedcorresponding mediation procedures. Applicants can ?le a labor dispute mediation request, and if it falls within the scope of mediationand the other party is willing, a mediator will conduct the mediation. The grievance handler should correct any non-compliant behaviorbased on investigation ?ndings and impose penalties such as warnings, demerits, or termination of labor contracts; illegal activities shouldbe transferred to judicial authorities. The grievance handling result should be promptly communicated to the complainant, who may ?leanother appeal if dissatis?ed with the outcome.

Ensuring unobstructed grievance channels

8283

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

We have improved the compensation management system. For existing business, we enhance workforce efficiency through variousmanagement methods; for new business, we provide high-stimulus incentives. This achieves consistency between "responsibility andbene?t, capability and value, and performance and reward" in employee compensation distribution.Securing compensation and bene?ts

We provide all employees (including full-time, part-time, and contractors) with a rich array of non-salary bene?ts. We insist on legally andcompliantly contributing to social insurance and housing provident fund for employees, and have established an enterprise annuity schemeand purchased supplementary commercial insurance to provide more comprehensive security for employees' healthcare and retirement. CRSanjiu has issued policies such as theCR Sanjiu Employee Relations and Personnel Management Measures, which stipulate that employeeswith children born in compliance with laws and regulations are entitled to 10 days of annual parental leave until the child reaches three yearsof age. This series of policies covers all employees of CR Sanjiu, including full-time, part-time, and contractors.

Perfecting the welfare system

Key performanceThe labor contract signingrate reached

%.

Trade union employeecoverage reached

%.

The total numberof employees was30,304.The proportion offemale managerswas

%.

Women accounted for

56.17

% of juniormanagement positions.

Women accounted for

18.30

% of seniormanagement positions.

The number of new employeesadded during the year was

2,801.Women held

50.85

% ofmanagement positions inrevenue-generating functions.

Women held

60.36

% ofSTEM-related positions.

6,433 people were 29 years old or younger21,711 people were aged 30-502,160 people were 51 years of age or older

15,535 male employees14,769 female employees

EmployeeGenderStructure

48.73%

51.27%

19.54%

32.36%

41.08%

7.02%

EmployeeEducationStructure

7.12%

21.23%

71.64%

Employee

AgeStructure

2,128people hold master's degrees or above12,450undergraduate students9,806 students had associate degrees5,920students had a high school educationor below

We steadfastly adhere to the safety policy of "Safety First, Prevention Foremost, Comprehensive Management". We are committed tobuilding a systematic and standardized occupational health and safety management system and fostering a healthy and safe workenvironment. By establishing and improving the safety responsibility system, strengthening full participation and scienti?c management,the company continuously enhances safety production measures to ensure the effective execution of all safety management tasks.Simultaneously, the Company focuses on cultivating employees' awareness of safety and occupational health, promoting a deeplyingrained safety culture. This aims to minimize safety risks to the greatest extent and provide solid assurance for the smooth conduct ofproduction and operational activities.

Strategy

In accordance with the country's relevant safety management requirements and considering the characteristics of the pharmaceuticalindustry, we continuously optimize and improve our EHS management system. We have organized revisions to CR Sanjiu's environmental,health, and safety management regulations, the EHSQ incident management rules, and the annual assessment implementation rules.EHS management system audits are conducted in conjunction with the annual safety inspection campaign.

Governance

Risk types anddescriptions

Potential ?nancialimpact

Opportunity types and descriptions

Potential ?nancialimpact

Safety RisksFailure to providee?ective occupationalhealth and safetyprotection to employees,threatening their health,which may lead to legalpenalties.

Increased compliancecosts; medical andcompensation expensesfor work-related injuries/occupational diseases;productivity losses due towork stoppages; reducedproduction e?ciency.

Policy Opportunities

work-related injuries/occupational diseases;productivity losses due to work stoppages;reduced production e?ciency.Enhancing Occupational Health and SafetyManagementImprove the occupational health and safetymanagement system, optimize protectivemeasures, and elevate the level of employeeoccupational health protection, aligningwith compliance requirements of thepharmaceutical industry.

Reduced risk ofcompliance penaltiesand costs associatedwith workplaceinjuries/occupationaldiseases; decreasedlosses from productioninterruptions; enhancedcorporate complianceimage.

Employee safety-related risks, opportunities, and potential impacts

Safeguarding employee safety

We place high importance on employees' occupational health and safety, consistently upholding a "people-oriented, safety-first"development philosophy. The life, health, and rights of our employees are prioritized in our operations and management. We fortify safetydefenses through systematic institutional development, weave a tighter protection network with precise risk control, foster a culture ofcare through normalized health safeguards, and solidify the foundation for the company's sustainable development with robust safetymanagement e?ectiveness.

8485

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard aharmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Impact, risk and opportunity management

Specialized Work Safety Knowledge Training for CR SanjiuLaboratory Personnel

Guanlan Base Holds a "I Report Hazards for Safety" InitiativeLaunch and Training Meeting

We have established a comprehensive, systematic risk and hazard management system, forming two robust lines of defense: "Preventionat Source" and "Control during Process." This approach aims to control risks before they become hazards and eliminate hazards beforethey cause incidents, thereby moving the safety production checkpoint forward. This solidi?es a strong safety barrier for the company'sstable operation and high-quality development.

Safety production managementEmergency management system

Adhering to the principle of "Prevention First, Combining Prevention with Emergency Response" and focusing on the constructionof the "One Plan, Three Systems" framework, we have built a systematic and complete emergency management system. Weroutinely conduct drills and emergency training as required by regulations, e?ectively strengthening the emergency preparednessof all personnel, comprehensively fortifying their emergency awareness, and tangibly enhancing the capability to prevent andrespond to incidents and emergencies.

Conducting hazard identi?cation

We formulated the CR Sanjiu Work Safety Hazard Investigation and Management System, actively urging all subsidiaries to carryout hazard identi?cation, recti?cation, and implementation. This e?ectively prevents and mitigates major safety risks and promptlyeliminates various potential accident hazards.Diverse communication and training

We emphasize safety production culture development and the competency enhancement of all personnel. We conduct multi-level,regular education and training, fostering a strong cultural atmosphere where everyone learns about safety, pays attention to safety,and values safety. This tangibly improves the safety awareness, risk identi?cation capabilities, and emergency response skills of allemployees, building a solid ideological and competency foundation for work safety.

签发日期: 2024-03-01 到期时间: 2027-02-28签发人：

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证书编号: 86124S0019R0M

兹证明：

辽宁华润本溪三药有限公司统一社会信用代码：912105007323055398注册地址: 辽宁省本溪经济技术开发区医药园区经营地址：辽宁省本溪经济技术开发区医药园区

符合职业健康管理体系符合标准：

GB/T 45001-2020/ISO 45001:2018

认证范围：

药监局许可范围内的颗粒剂、硬胶囊剂、片剂的生产所涉及的职业健

康安全管理活动

北京市房山区书院南街12号院

3号楼3层331

构网站（www.lhsdbj.cn）查询，证书信息亦可在国家认证认可监督管理委员会官方网站

（www.cnca.gov.cn）查询。

Benxi Sanjiu Occupational Healthand Safety Management SystemCerti?cate

TargetProgress

Occupational Health & Safety19 business units have obtained ISO 45001 certi?cation.

100% declaration of occupational disease hazard items.Zero new cases of occupational disease.Production Safety100% coverage of safety education for all employees; 100% certi?cation rate for special

operation posts.Zero general or above-level accidents causing casualties.

Adhering to the core principle of "People-oriented, Safety First" and closely following occupational health and safety regulationsand industry management standards, CR Sanjiu has established speci?c metrics and targets for employee safety to ensure the solidimplementation of related strategic plans. We sign EHS responsibility documents with our production subsidiaries, set quantitativeoccupational health and safety targets, and regularly track and assess the completion status.

Occupational health managementCare and protection for special groupsWe provide special care measures for female employees, pregnant women, new mothers, and breastfeeding employees, such asergonomic protective equipment, adjusted work arrangements, and designated rest areas. For employees with disabilities, we assignroles with simpler operational requirements and comprehensively install assistive facilities like handrails and ramps in living areassuch as dormitories, cafeterias, and restrooms to eliminate potential safety barriers.

Occupational health trainingWe regularly organize occupational health andsafety education and training. This helps employeesproficiently master the operational standards forprotective equipment, clearly understand job-related risks and emergency response procedures,tangibly enhance their self-protection awarenessand capabilities, and e?ectively reduce occupationalhealth and safety risks.

Metrics and targets

CR Shunfeng Occupational Healthand Safety Management SystemCerti?cate

8687

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

The Human Resources Center is fully responsible for promoting and implementing talent cultivation and development. We haveestablished and enforce regulatory documents such as theCR Sanjiu Training and Development Management Regulations, theCRSanjiu Employee Promotion Management Measures for Headquarters and Guanlan Base, and theCR Sanjiu Measures for Promoting theFlexibility of Cadre Appointments and Removals, providing solid institutional safeguards for employees' career development.

Governance

Risk types and

descriptions

Potential ?nancial impact

Opportunity types and

descriptions

Potential ?nancial impact

Operational Risk

Insu?cient careerdevelopment channelsleading to attrition oftalent in key positions.

Increased recruitment costs.

Reputational OpportunityWell-de?ned career developmentchannels foster a positive corporateculture, attracting more outstandingtalent to join proactively andenhancing the company's talentcompetitiveness.

Improved operationale?ciency and pro?tmargins.

Employee safety-related risks, opportunities, and potential impacts

Strategy

We continuously improve and optimize the system supporting innovative business, strengthen the acquisition, assessment, andincentivization of core talent, enhance the capabilities of the workforce, and stimulate employee potential and value, thereby providingstrong support for the company's high-quality development.

Supporting employee development

Impact, risk and opportunity management

We uphold a talent philosophy of "Strengthening the Enterprise with Talent, Achieving Mutual Development through Growth." We arecommitted to building unobstructed career development paths and a comprehensive skill enhancement system, supporting employeesin improving their professional skills and overall competencies. We also guide employees in their personal career planning, furtherunleashing their potential, invigorating the organization, and fostering a win-win situation for both employee career growth and thecompany's operational development.

We continuously re?ne the talent recruitment and cultivation systems, striving to build a high-quality workforce with a rational structure,excellent capabilities, and vitality. This injects a continuous stream of talent impetus into the Company's sustainable development.

The Company has established a categorized talent pool system for areas such as R&D, technical skills, major supervision, ?nance, andintelligent digitalization, with a dynamic update mechanism. We focuse on strategically key talents including core R&D personnel, skilledtechnical experts, digital backbone talent, and young reserve cadres, implementing di?erentiated development paths to provide a solidtalent pipeline for executing corporate strategy.

Talent pool development

In 2025, the Company conducted a talent review for mid-level managerial sta?, comprehensively assessing the talent pool to provide strongsupport for talent reserves and corporate development strategy. Concurrently, focusing on strategic directions such as smart manufacturingupgrades and the silver health industry, the Company utilized digital tools for systematic predictive analysis of campus recruitment needs.Through industry-education integration and joint training programs, we strengthened cooperation with key universities to pre-identifyoutstanding graduates in critical fields, dynamically optimized recruitment strategies, and provided forward-looking talent supply for theCompany's strategic transformation.

Talent inventory and demand forecasting

Clear promotion pathways

Performance evaluation improvement

Employees are provided with a dual-path promotion mechanism encompassing management tracks and professional/technical tracks.When management positions become vacant, internal recruitment is prioritized to select and promote suitable candidates. Simultaneously,the Company conducts uni?ed assessments based on employees' competencies and performance, facilitating promotions for outstandingindividuals, thereby o?ering clear growth paths for employees with di?erent career aspirations.

In 2025, CR Sanjiu optimized and revised the CR Sanjiu Employee Performance Management Regulations and established a closed-loop"Evaluation-Feedback-Improvement" performance management mechanism covering 100% of employees. This provides guidance andsupport for enhancing employees' professional competencies and career development.

Performance evaluationPerformance feedbackPerformance improvement

Di?erentiated managementis implemented accordingto the nature of positions,employingvarious performanceassessment methods such asobjective-oriented ManagementbyObjectives (MBO) and 360-degreeevaluations to motivate employeesin achieving bothindividual andteam goals.

Direct supervisors provideperformance results to employeesthrough face-to-face oronlinecommunication. The companyhas also established an employeeperformance appealmechanism.Employees who have concernsregarding the assessment process orresults may?le an appeal to relevantdepartments such as their immediatesupervisor or the HumanResourcesdepartment. Designated personnelare responsible for reviewing,investigating,handling, and providingfeedback on the appeal.

Based on the evaluation results,managers develop targetedperformance improvementplansfor employees, setting clearimprovement goals. They providespeci?c coaching and supportthroughregular meetings or ad-hoccommunication, and monitor theachievement of thesegoals during theimprovement cycle.

Performance Closed-Loop Management Mechanism

8889

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

CR Sanjiu "Three Types" of Talents Development Plan

Talent development systemFully leveraging its unique advantages in the pharmaceutical industry, the Company has thoroughly executed the "Green Lotus Plan"under the "three types" of talents development plan, providing targeted empowerment for core talent. Labor skills competitions arecontinuously organized, and cross-functional technical exchange platforms are established to promote learning and practice throughcompetition, comprehensively enhancing employees' technical pro?ciency and innovative problem-solving capabilities.

Managementand operation

talentdevelopment

programs

CR Xuechuang: Deputy Class of Directly Managed Cadres of CR Group CR Xuechuang: The Way of CR Manager Training, Excellent Young Cadre Class CR Sanjiu: Leader Program (general manager class) CR Sanjiu: Industrial Chain Senior Talent Development Class CHC Business Group Elite Talent Development Program Production System Elite Talent Development Program Headquarters Function Elite Talent Development Program Various Business Division Elite Talent Development Programs Various Business Division/Business Unit Pipeline Talent Development Programs Frontline Manager Bootcamp / Sword Sharpening Program (Production System) New Manager BootcampIntelligent Manufacturing Plan DMetamorphosis Camp for R&D Innovation Project ManagersDigital Talent DevelopmentR&D Professional TrainingFunctional Professional TrainingProduction Professional TrainingMarketing Professional TrainingGrassroots Employee Job TrainingGrassroots Employee Skill Competition

CR SanjiuLighthouseProgram

Science andtechnology

talentdevelopment

Professionalskills talentdevelopment

CR Sanjiu Flagship Program Fifth Intensive Training andGraduation Ceremony

CR Sanjiu Advanced Industrial Chain TalentDevelopment Program, Phase III

CR Sanjiu Intelligent Manufacturing Plan D 14th Five-Year Summary Meeting

Targeted at all employees, including senior, middle, and frontline leaders (covering full-time, part-time, and contract sta?), the companyhas conducted and completed various leadership training programs: the Flagship Program (for General Managers), the AdvancedIndustrial Chain Talent Development Program (Phase III) (for Directors and Assistant General Managers), the Lighthouse Program (formiddle and senior managers), and the Forge Program (Phase IV) (for frontline production system managers), accelerating the selectionand development of outstanding young reserve leaders.

Primarily targeting high-tech innovation talents in R&D and smart manufacturing, the Company has launched initiatives like the R&DInnovation Project Manager Transformation Camp and the Smart Manufacturing Talent Development D-Plan, providing more learningand development opportunities for our scienti?c and technical personnel.

The Company is committed to cultivating dedicated professionals with excellent skills, innovative mindsets, and a pursuit of excellence.To achieve this, it has implemented talent projects such as the Mangrove Plan (at CR Benxi Sanjiu, CR Sanjiu (Huangshi), and GuanlanBase) and the Master Craftsman Program. We actively organize activities including, but not limited to, the CR Sanjiu Skills Cup, QualityPromotion Month, and Focus Topic workshops.

Continuously building the management talent pipeline

Continuously promoting the science and technology talent pipeline

Continuously strengthening professional skills talent development

9091

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard aharmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Case:CR sanjiu fosters fertile ground for growth, empowering employee advancementCR Sanjiu deeply cultivates the employee development dimension of itsESG practices. Upholding a "people-oriented, talent-driven enterprise"philosophy, it closely links employee growth with the company's high-qualitydevelopment. The company has established an integrated talent cultivationsystem encompassing mentorship ("passing on, helping, guiding"), dual-path career progression, R&D resource support, and systematic capabilitytraining, earnestly ful?lling its responsibility for employee development.The growth journey of Zhang Yanbin, a National Model Worker and ChiefEngineer of the R&D Center, serves as a vivid testament to the system'seffectiveness. Since joining the Company as a campus recruit, supportedby this comprehensive talent cultivation system, he has progressed from a novice in TCM R&D to a versatile core technicalexpert. He has led the development and launch of several key products, guided his team in overcoming technical challengesfor a novel COVID-19 rehabilitation treatment drug—filling a domestic industry gap—and actively taken on the role ofmentoring newcomers, contributing to talent pipeline development.CR Sanjiu achieves a two-way empowerment: enhancing employees' personal value while strengthening the company's R&Dinnovation capabilities. This not only cultivates a high-caliber professional workforce but also solidi?es the talent foundationfor the enterprise's sustainable development.

CR Group 2025 "Future Star" New Employee Training Camp

CR Sanjiu hosted the CR Group "Future Star" Training Camp (Pharmaceutical Track), adopting a mentorship model. The program acceleratesnew employees' integration into the CR culture through workplace fundamentals training, including courses on Party education, corporateculture, business operations, and workplace communication. On-the-job practical training is implemented to enhance their role-specificcompetencies.

The Company values lifelong learning for all employees (including full-time, part-time, and contractors), providing support for both degreeand non-degree educational development (professional degree programs and certi?cations). We actively create opportunities for advancedacademic studies. Focusing on the "recruitment" and "cultivation" of scienti?c and technological talent, we have established collaborationswith universities like Fudan University and Northwest A&F University in ?elds such as biomedicine, and are engaged in collaborative trainingprograms for master's and doctoral engineering students. This further deepens the co-cultivation of talent, aiming to develop high-caliberprofessionals with both solid theoretical foundations and rich practical experience.

New employee development

The deepening university-enterprise collaboration

Zhang Yanbin during an R&D experiment

Case:CR sanjiu conducts the forge program (phase iv) at guanlan base

From March to June 2025, the CR Sanjiu Human Resources Center conducted the Forge Program (Phase IV) training

project at the Headquarters. The program focused on enhancing the capabilities of frontline managers in the production

system, delivering a series of empowerment trainings centered on three core themes: "Qualities of an E?ective Manager,"

"Operational Excellence Systems," and "Innovation Design and Smart Manufacturing." Thirty-seven frontline managers from

the production systems of 24 business units participated in and successfully completed the training. The program deeply

implemented a tripartite talent development model involving "trainees, mentors, and professional coaches". We also

organized benchmarking enterprise exchange activities, allowing participants to gain immersive learning in the practical

applications of smart manufacturing. Through this multi-dimensional, systematic empowerment, the program enhanced

the comprehensive management acumen and professional competencies of CR Sanjiu's frontline production managers,

helping the company build a frontline management team capable of keenly discerning trends, making efficient and

scienti?c decisions, and exercising excellent leadership in a complex future development environment.

2025 CR Sanjiu Forge Program, Phase IV

TargetProgress

Employee Training &Development

In 2025, the company continued to conduct diverse training programs. The total annualinvestment in various employee trainings reached RMB 21.9488 million.

CR Sanjiu closely aligns with the requirements of its high-quality development strategy and talent development plan. To ensure thesolid implementation of all employee development initiatives, we have established speci?c metrics and targets, regularly tracking andassessing their completion.Metrics and targets

9293

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Caring for employeesWe adhere to the corporate spirit of "Care, Responsibility, Excellence", continuously organizing and implementing various initiativesunder the employee care program, fostering a "Happy Work, Healthy Life" environment to strengthen employee cohesion and sense ofbelonging.

CR Sanjiu Dragon Boat Festival ActivityCR Sanjiu Youth Networking ActivityCR Sanjiu Family Open Day

CR Sanjiu Badminton CompetitionCR Sanjiu Annual Health Check-upCR Sanjiu Football Match

Enriching employee lifeWe organize diverse activities in five categories: holiday care,family care, youth networking, physical & mental wellness, andsports competitions. Employees are encouraged to participatebased on their interests. These activities not only enrichemployees' personal lives but also promote communication,mutual understanding, and team cohesion.

Supporting employees in need

The trade union leads in establishing special ?les for employeesfacing difficulties, strictly adhering to the principles of one fileper person and dynamic management. Through a closed-loopmechanism involving regular visits by frontline supervisors andverification by grassroots union groups, the actual situationsand support needs of these employees' families are accuratelyidentified. In 2025, the CR Sanjiu trade union visited, offeredcondolences, and provided assistance to 316 employees in need,disbursing consolation funds totaling RMB 870,200.Caring for female employeesWe thoughtfully care for female employees on maternity leave.Subsidies provided by the government to alleviate employers'?nancial pressure during maternity leave are fully disbursed tothe employees themselves. In 2025, the Company supported85 employees in claiming maternity allowances totaling RMB

3.11 million. The Company actively implements the parental

leave policy, granting 10 days of parental leave annually until thechild reaches three years of age. Additionally, nursing rooms areprovided, o?ering a warm and private space for working mothers.

Focusing on mental healthWe innovatively launched a "Theme Month" service model, o?eringdedicated consultation sessions monthly on topics frequentlyraised by employees. A sleep lecture was organized for all sta? toalleviate workplace stress. A special event at CR Sanjiu (Zaozhuang)was held to help frontline employees address psychologicalconcerns. A team of "CR Sanjiu Heartcare Ambassadors" wasformed and systematically trained, and the CR Sanjiu (Chenzhou)Employee Care Service Station was established, strengtheninggrassroots mental health support capabilities. In 2025, 12 one-on-one on-site psychological counseling sessions were conducted,serving 72 employees, comprehensively safeguarding their mentalwell-being.

CR Sanjiu actively engages in social welfare initiatives, responding to national strategies with concrete actions and contributing to ruralrevitalization. Leveraging our strengths in the pharmaceutical and healthcare sector, the Company proactively participates in social services,empowers community development, and promotes local economic growth and social progress.

Building harmonious communities

Fostering warm and caring communities

Practicing philanthropy and public welfare

The Company places high importance on communication and interaction with neighboring communities, focusing on establishing andmaintaining smooth communication channels. Utilizing platforms such as the Longhua District Guanhu Sub-district People's Congress, wehave carried out over 90 responsibility activities, helping to resolve local tra?c issues, e?ectively reducing employee commute times, andfacilitating travel for community residents.Focusing on key areas like transportation optimization around the industrial park, improvement of commercial amenities, enhancement ofliving and working environments, industrial support, R&D innovation, and smart manufacturing, the Company actively provides suggestionsand tracks the implementation progress of each proposal. By contributing to the improvement of the regional road network, easing tra?ccirculation, and enhancing community living and working conditions, we empower high-quality regional economic development. Theseefforts tangibly increase the sense of gain, happiness and security among community residents, fulfilling the Company's communityresponsibility through practical action.

Guided by our mission of " caring for public health and creating a better life together", CR Sanjiu consistently upholds and practices thespirit of giving back to society. Since 2008, the Company has built the "999 Caring Angels" responsibility brand. For seventeen years, we haveremained true to our philanthropic original aspiration, spreading care, and have become a pioneer in philanthropy within the pharmaceuticalindustry. By connecting "corporate resources + external organizations + employee participation," we systematically implement a ?ve-prongedsupport model covering educational assistance, industrial support, and CR Hope Village projects. This integrates social responsibility deeplywith corporate development, creating tangible public welfare practices with professionalism and warmth, and solidifying our responsibilitybrand. In 2025, the Company's charitable donation expenditure was approximately RMB 4.7044 million. Volunteer activities involved 239participants, contributing a total of 821 volunteer service hours.

Chairman of Longhua District CPPCC Conducts ResearchInspection of Tra?c at Guanlan High-Tech Park

9495

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard aharmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Co-creating prosperous and beautiful villages

CR Sanjiu actively responds to national strategic deployments, unwaveringly implementing rural revitalization policies. The Company focuseson the comprehensive development of local industries, talent, culture, and ecology, with industrial support and educational support projectsas key investment areas. We aim to achieve comprehensive rural revitalization through precise measures. We actively establish resource-sharing platforms with various stakeholders, fully integrating advantageous resources from all parties to contribute to industrial upgrading,talent cultivation, cultural preservation, and ecological protection in rural areas.

Case:CR sanjiu (ya'an) continuously carries out student aid activities

To support rural education, CR Sanjiu (Ya'an) continuously conducts student aid activities. We have completed culturalco-building projects for 8 Sanjiu Schools, covering over 4,000 teachers and students, promoting CR culture in schools andpassing on the "red gene". In 2025, with the strong support of various teams, the "999 Aonuo Hope Project Science andTechnology Innovation Laboratory" was established at the Sanjiu School in Yanchang Town, Ya'an. This philanthropicdonation practices the strategies of "Rejuvenating the Country through Science and Education" and "Healthy China,"helping to enhance the scienti?c literacy of youth and demonstrating corporate responsibility. It is a vivid example of theCompany's deep commitment to ESG practices and empowering rural education.

Inauguration Ceremony of the 999 Aonuo Hope ProjectScience and Technology Innovation Laboratory

CR Sanjiu (Ya'an) Student Aid Activity

Education is a vital cornerstone for national rejuvenation and social progress, a moral and political project bene?ting both present andfuture generations. For many years, CR Sanjiu, upholding a strong sense of social responsibility, has actively engaged in rural education,helping to revitalize local education and talent through practical actions.Education revitalization

Case:ful?lling responsibility with love, spreading warmth with knowledgeTo practice ESG social responsibility and support rural education, CR Sanjiu organized the "Pass on Love, Pass onKnowledge" used book donation drive around the 30th World Book Day. The activity collected over 3,600 quality books ofvarious genres. After sorting and packing, the books were sent to the Jinzhai CR Hope Primary School and the Tonghua CRHope Village, helping rural children broaden their horizons and ignite their dreams. This initiative aligns with CR Sanjiu'scorporate culture, achieving the reuse of employees' idle book resources in a light-handed manner. It demonstrates theCompany's humanistic care and sense of responsibility, serving as a vivid example of its deep commitment to ESG practicesand spreading social warmth.

Case:"unceasing steps, love ?lls mountains and rivers" student aid activityOn October 27, 2025, the "Unceasing Steps, Love Fills Mountains and Rivers - 999 Healthy China Warm Action" student aidactivity, organized by the OTC Business Unit of CR Sanjiu, was successfully held in Alxa, Inner Mongolia. Organized by CRSanjiu, co-organized by the Medical League, and hosted by the Alxa League Education and Sports Bureau, the program hadpreviously provided support to 6 schools in Gansu and this time extended bene?ts to 4 schools in Alxa Left Banner. Duringthe event, CR Sanjiu and the Medical League presented donated supplies like stationery and teaching aids to the recipientschools. Attending leaders delivered speeches emphasizing the activity's signi?cance in providing both material supportand spiritual guidance for rural education. Through multidimensional public welfare actions including educational aid andhealth care, the company earnestly practices our corporate responsibility, assisting the improvement of rural education andthe development of a Healthy China.

Based on our full industrial chain development strategy, CR Sanjiu deeply integrates the development of the Chinese herbal medicineindustry with the rural revitalization strategy. Covering the entire chain from seed selection and breeding, standardized cultivation, tofresh processing at the origin, the company vigorously develops standardized cultivation through models like "contract farming" and"company + cooperative + farmer," using a "demonstration base + radiating base" approach. This helps resolve rural employment,improves agricultural industry structure, and aids rural revitalization.In 2025, CR Sanjiu established Chinese herbal medicine cultivation bases for 51 varieties across nearly 140 counties in 22 provinces,encompassing over 900 villages. The promoted cultivation area exceeded 447,000 mu. CR Sanjiu built or co-built 20 origin processingbases, processing nearly 10,000 tons of herbs. The initiatives involved over 50 local cooperatives and village collective companies,engaging thousands of farming households.

Industrial revitalization

Key performance

In 2025, CR Sanjiu promoted the establishment of444,700 muof herbal medicineplanting bases constructed

self-built or jointly-built primary processing basesDrove the development ofover 50local cooperatives and villagecommittee companies

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard aharmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Case:revitalizing agriculture with artemisia industry, linking farmers to prosperityThe production base of CR Sanjiu Youyang Company, under Kunming Pharmaceutical Group, focuses on building theYouyang artemisia brand. It co-established a high-quality seed breeding center with universities and research institutions,formed an industrial consortium, and implemented the "company + cooperative + farmer" contract farming model. Thestable annual cultivation area is approximately 20,000 mu, involving nearly 2,000 farming households across 13 townships,providing employment for 190 people. This helps increase villagers' income and promotes local economic development,demonstrating the leading role of the enterprise and achieving a win-win in both economic and social bene?ts.

CR Sanjiu Youyang Company High-Quality Seed Breeding Center

CR Sanjiu actively engages in rural health assistance, continuously gathering resources from various sectors and building broadconsensus. By promoting the downward ?ow of high-quality medical resources, it continuously improves the fairness and accessibilityof health services, enhances the level of primary healthcare services, and solidi?es the health foundation for rural revitalization. Since2020, CR Sanjiu has continuously participated in the "China Resources Healthy Villages" public welfare project, donating RMB 1.5million in cash and goods worth approximately RMB 800,000 annually through the China Women's Development Foundation. As of2025, it has cumulatively donated RMB 9 million in cash and goods worth RMB 4 million, totaling RMB 13 million.CR Sanjiu actively conducts rural health support initiatives, continuously gathering strength from multiple parties and building broadconsensus. By promoting the high-quality medical resources, we continuously improve the equity and accessibility of health services,enhances grassroots medical service capabilities, and solidi?es the health foundation for rural revitalization. Since 2020, CR Sanjiu hascontinuously participated in the "CR Healthy Village" public welfare project. Annually, we donate RMB 1.5 million in cash and materialsworth approximately RMB 800,000 through the China Women's Development Foundation. By 2025, the cumulative donation reachedRMB 9 million in cash and RMB 4 million in materials, totaling RMB 13 million.

Health support

Case:revitalizing agriculture with artemisia industry, linking farmers to prosperityCR Sanjiu's Professional Brand Division joined handswith the Bethune Foundation, visited the revolutionaryold district in Tonghua. We invited 5 senior experts fromBeijing and Shanghai in fields like cardiovascular andrheumatology-orthopedics to conduct multidisciplinaryfree clinics and health education for patients, bene?tingover 300 local villagers. The division also donated homemedicine kits, precisely addressing the daily medicationneeds of grassroots populations. This brings high-qualitymedical resources to the rural frontline, deliveringprofessional medical care to villagers.

Senior Experts Providing On-site Health Consultations forResidents at the CR Hope Town in Tonghua

Conducting consumption support is a major decision and deployment by the CPC Central Committee and the State Council. It is animportant measure for coordinating regular assistance and continuously consolidating and expanding the achievements in povertyalleviation. In 2025, SASAC actively encouraged central enterprises to carry out consumption support initiatives like the "GatheringStrength Action", "Prosperous Agriculture Week" and "Spring Welcoming Action". Through methods like procurement assistance,strengthening foundations and empowerment, and exchanges, we supported the assisted counties. During the campaign period, weorganized the procurement of agricultural products over RMB 1.54 million. Throughout the year, the total procurement of Chinese herbalmedicine agricultural products reached RMB 330 million.

Consumption support

Case: bringing warmhearted free clinics to islands, collaborating for revitalization

In August 2025, the "Island Health, Walking Together" free clinic initiative, organized by the OTC Business Unit of CR Sanjiu,brought together multiple parties to provide services such as health checks and medication education to over 150 residentsin Yuhuan's Haishan Township and visited 5 elderly individuals living alone. Addressing the inconvenience of purchasingmedicine, CR Sanjiu pledged to donate automated medicine dispensers. By linking government and enterprise e?orts, wehelp ?ll the shortcomings in rural health services and aids rural revitalization.

9899

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Adhering to integrity and clear regulations,and laying a solidfoundation for sound operation

Our responsesCR Sanjiu continuously improves its corporate governancestructure, establishing a sound modern corporate governancemechanism with clearly defined responsibilities, coordinatedoperation, and effective checks and balances. The Companystrictly adheres to laws, regulations, and market supervisionrequirements, strengthens comprehensive risk management andinternal control systems, promotes ethical conduct and integrityin business operations, continuously improves the quality andtransparency of information disclosure, and actively safeguards therights and interests of shareholders, employees, customers, andother stakeholders, thereby driving the Company's high-quality andsustainable development through high-level governance.

National requirementsDuring the 15th Five-Year Plan period, enterprises should continuouslyimprove their corporate governance systems, deeply understand thefundamental role of corporate governance in ESG, and strengthenESG risk and opportunity management. They should promote theestablishment and improvement of corporate governance mechanismsthat are legally defined, transparent, coordinated, and effectivelybalanced, thereby improving corporate governance structures,enhancing disclosure quality, and strengthening regulatory oversight.

—National "15th Five-Year Plan" Recommendations

G

Contribution to the united nations sustainable development goals

100101

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Strengthen the foundation of governance and build an e?cient operating mechanism ofthe board of directors

CR Sanjiu dynamically tracks changes in theCompany Law of the People's Republicof Chinaand regulatory policies, advancing the systematic revision and formulation of the Company'sarticles of association and related systems. It continuously strengthens the institutionalfoundation of corporate governance. The Company consistently enhances the construction ofthe Board of Directors by optimizing its composition and promoting the inclusion of employeerepresentatives. The Company emphasizes standardized management of Board meetings,re?nes the resolution follow-up mechanism, and improves the reporting system for authorizedmatters. Furthermore, it strengthens communication with directors through multiple channels,fully supporting them in fulfilling their duties..Strictly adhere to the lifeline of informationdisclosure and accurately convey corporate value.Strictly adhere to the lifeline of information disclosure and accurately convey corporatevalueWe have established and improved rigorous information disclosure processes. Building uponthe lawful and compliant fulfillment of statutory disclosure obligations, we actively advancehigher-quality and more comprehensive voluntary information disclosure, enhancing the depthand breadth of transparency. Thanks to its solid information disclosure work, the Companyhas received the highest rating of A (Excellent) in the Shenzhen Stock Exchange's informationdisclosure assessment for 11 consecutive years.Promoting ESG management and enhancing sustainable development capabilitieswe assist in building a top-down, clearly de?ned sustainability ESG governance framework ofthe Board of Directors, the management, and the working group, introduce external professionalinstitutions to enhance the team's professional capabilities; and we continuously optimize thequality of ESG information disclosure. In 2025, the Company's MSCI ESG rating jumped fromBB to A, and the Wind ESG rating was upgraded to AA for the ?rst time, and it has won severalhonors, including the "Top 50 Central SOEs in the ESG Golden Bull Award", consolidating itsresponsible image in the capital market.

Responsibility case

Innovate investor relations communication to build long-term relationships based on two-way interaction and shared values

We have established a diversi?ed, collaborative, and e?cient two-way communication mechanism with investors. The 2024 AnnualPerformance Brie?ng innovatively introduced a digital human avatar for the ?rst time, attracting over 130,000 viewers. This initiativehas earned us the China Listed Companies Association's 'Best Practices in Annual Report Briefings' award for four consecutiveyears. In 2025, we co-hosted the Half-Year Results Brie?ng with our subsidiary companies, Kunming Pharmaceutical Group and TaslyPharmaceutical Group. Through diverse formats—including earnings briefings, conference calls, online/offline research sessions,roadshows, and reverse roadshows—we continuously expand communication channels and build a multifaceted investor engagementplatform. Our e?orts have been recognized with multiple capital market accolades, including the 'Best Practices in Investor RelationsManagement' award and the 'Tianma Award for Investor Relations Excellence'.Future outlookThrough systematic practices, we promote the deep integration of corporate governance and business development, building a"transparent, stable, and responsible" corporate image for the Company, serving as a link between the Company and the capitalmarket, and helping the Company achieve high-quality, stable, and sustainable development.

102103

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard aharmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Continuously strengthen corporate governance

CR Sanjiu strictly abides by the requirements of laws and regulations, continuously strengthens its corporate governance mechanism,improves its internal control system and compliance operation management system, ensures the steady development and value creationof its business, promotes the construction of a modern enterprise system with Chinese characteristics and Sanjiu characteristics, adheresto integrity in enterprise management, coordinated operation and transparent management, and helps the Company achieve high-quality development.

We comply with relevant national laws and regulations, continuously strengthen the corporate governance institutional framework, andenhance the level of scienti?c decision-making; we assist the Board of Directors in continuously optimizing its operational mechanisms andimproving operational e?ciency; we e?ectively safeguard the legitimate rights and interests of all stakeholders, foster a positive corporateimage, and underpin the Company's steady and long-term development.

We strictly adhere to theCompany Law of the People's Republic of China, theSecurities Law of the People's Republic of China,theCodeof Corporate Governance for Listed Companies,and theListing Rules, among other relevant laws and regulations. We have revised the

Articles of Association, continuously optimized the corporate governance structure, and steadily improved governance standards to drivehigher quality and e?ciency in the Company's operations. We strengthen the decision-making system, re?ne authorization management,and establish a governance structure with clearly de?ned rights and responsibilities, thereby comprehensively enhancing the Company'soperational e?ciency.

Strengthening the cornerstone of corporategovernance

GeneralMeeting

Party CommitteeSteer the direction,oversee the overallsituation, and ensureimplementation

Board of DirectorsSet strategy, makedecisions, andprevent risks

Audit CommitteeRemuneration andEvaluation CommitteeStrategic InvestmentCommitteeNomination CommitteeSpecialized Meeting ofIndependent Directors

Management TeamPlan operation, ensure

implementation,and strengthenmanagement

Optimizing the governance structure

The convening and holding procedures of all previousshareholders' meetings, the qualifications of attendees,and the voting procedures at shareholders' meetings havecomplied with the provisions of theCompany Law of thePeople's Republic of China, theRules for Shareholders'Meetings of Listed Companies, theArticles of Association,and other relevant laws and regulations. The Companyhas provided online voting for the matters deliberated atshareholders' meetings to facilitate shareholders' exerciseof their rights.

Shareholders and shareholders' meetings

The election and replacement of directors are carriedout in strict accordance with the legal and theArticles ofAssociation-stipulated procedures for director selection.The Company's directors attend Board and shareholders'meetings with a diligent and responsible attitude, andcorrectly perform their duties in line with the provisionsof theArticles of Association. The Company gives fullplay to the roles of the Board's specialized committeesand independent directors, ensuring the objectivity ofindependent directors.

Directors and the board of directors

Boarddiversity

Adhere to the principle of "optimized allocation + diversity," emphasizing professional alignmentwith the Company's development strategy, and selecting directors comprehensively fromperspectives such as gender, age group, and professional background.

Boardindependence

Establish the Independent Directors' Special Meeting, revise theWorking System for IndependentDirectors and the rules of procedure for specialized committees.Regularly disclose the performance of independent directors through theAnnual Report onIndependent Directors' Performance.

Boardprofessionalism

Board members possess relevant industry experience and professional knowledge, balancingprofessional leadership, innovation drive, and risk control capability to enhance the scienti?c rigorand e?ectiveness of corporate governance.Organize directors and senior management to actively participate in professional training,promoting continuous improvement in theoretical knowledge and performance of duties.

The Board of Directors fully performs its role of "set strategy, make decisions, and prevent risks," and has established the Audit Committee,the Remuneration and Appraisal Committee, the Strategic Investment Committee, the Nomination Committee, and the IndependentDirectors' Special Meeting, continuously enhancing governance e?ectiveness.The Company continues to optimize the structure of the Board. The Board members feature a balanced age distribution and diverseprofessional backgrounds, integrating multi-dimensional expertise in ?nance, strategic planning, human resource management, and more.Focusing on the development of specialized committees, the Company strictly standardizes the deliberation of proposals. The specializedcommittees provide professional advice for the Board's decision-making, while the Board conducts scienti?c and rigorous analysis combinedwith such advice before making decisions, ensuring both the scienti?c nature and e?ciency of its decisions.

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Honors and awards

Further reading

by the China Association for Public Companies

2025 Best Practice Case for Listed

Company Boards

2025 Best Practice Case for Listed

Company Board O?ces

Key performance

accounting for

36.36%

of the Board

representing

18.18%

of the Board

For more information on the responsibilities of the Board and shareholders' meetings, member details, and speci?c remunerationpayments to directors and senior management, please refer to the CR Sanjiu 2025 Annual Report.

In 2025, a total of

Among these

meetings of the Remuneration and Evaluation Committee

meetings of the Nomination Committee were convened

Board meetings were held

shareholders' meetings

meetings of the Audit Committee

meetings of the Strategic Investment Committee

The Company has a total of

independent directors,

There are

female directors

Optimizing the equity structure

Information disclosure and investor relations

In accordance with the requirements of theCompany Law of the People's Republic of China, theSecurities

Law of the People's Republic ofChina, and other relevant laws, regulations, and normative documents, we have established a clear, balanced, and rational equity structure.The Company operates with independent business operations and autonomous management capabilities, maintaining independence fromthe actual controller and its related parties in terms of business, assets, ?nance, personnel, and organizational structure. Major decisions ofthe Company are made by the shareholders' meeting in accordance with the law, and the controlling shareholder exercises its shareholderrights in a proper manner, with no actions that harm the interests of the Company or its shareholders.

We strictly comply with theMeasures for the Administration of Information Disclosure by Listed Companies, theGuidelines for InvestorRelations Management of Listed Companies, and other relevant regulations. In 2025, we revised theInvestor Relations ManagementSystem,theInformation Disclosure Management System,and theInsider Information and Insider Management System,establishinga rigorous and well-de?ned information disclosure process and accountability framework to ensure the truthfulness, accuracy, andcompleteness of disclosed information, while continuously strengthening insider information management and confidentiality. In2025, the Company did not incur any penalties for violations of information disclosure regulations.On the basis of continuous lawful and compliant ful?llment of statutory information disclosure obligations, we continuously exploreand develop voluntary information disclosure that is oriented toward investor needs and supports investors in making value judgmentsand investment decisions, increasing the depth and breadth of our disclosures. Regarding ESG issues of growing concern to investors,we respond to the attention and expectations of various stakeholders through regular report releases, "one-picture summaries," andsimilar formats.We have developed a multi-tiered investor relations management system. We innovatively hold high-quality performance brie?ngs,where the Chairman of the Board and the management team interact with investors, industry analysts, and media representatives,engaging in thorough communication on topics of concern such as the Company's operating results, business development, high-quality and sustainable development, and future growth plans. Adopting a multi-channel, multi-angle, and multi-level communicationstrategy, we use diverse methods and platforms—including performance conference calls, brokerage strategy meetings, investorhotlines, and the Shenzhen Stock Exchange's Interactive Easyplatform—to build an e?cient communication bridge with investors andactively convey the Company's value.

Company o?cial website and o?cial WeChataccount

Dedicated investor inquiry hotline

Periodic reports

Investor visit/research reception

Investor conference calls

Domestic and foreign brokerage strategy meetings

Shareholders' meetings

Platforms such as the Shenzhen Stock

Exchange'sInteractive Easy

Performance brie?ngs

Financial media communications

Roadshows and reverse roadshows

Online collective reception day for investors oflisted companies in the Shenzhen jurisdiction

Diverse investorcommunication

channels

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard aharmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Key performanceIn 2025, the Company released

periodic reports and

interim announcements.Held

batches of performance conference calls for

periodic and quarterly reports.Participated inover 90online and offline research

visits and roadshow/reverse roadshow events.

Honors and awards

Won the China Association for Public Companies'"Best Practice for Annual Report Performance

Brie?ngs" for four consecutive yearsCR Sanjiu was rated "Five-Star" socialresponsibility report by the Chinese Academyof Social Sciences for three consecutive years,

and received the "Five-Star Plus" rating for

two consecutive years

Received the highest rating of "A" in the ShenzhenStock Exchange's information disclosureassessment for eleven consecutive yearsAwarded the China Association for PublicCompanies' "Best Practice for InvestorRelations Management of Listed Companies

2024"

Case:innovatively hosting high-quality performance brie?ngsIn March 2025, the Company held its 2024 annual performancebriefing themed "Starting with the End in Mind, ForgingAhead with Determination. "The Chairman of the Board andthe management team engaged in thorough exchanges withinvestors, industry analysts, and media representatives onthe Company's operating results, business development,and future plans. To facilitate participation by more retailinvestors, the Company has adopted a hybrid formatcombining on-site communication with live streaming forits annual performance brie?ngs for four consecutive yearssince 2021.

CR Sanjiu Earnings Presentation

In 2025, the Company continued to deepen its "Four Restructurings," consolidating its foundation and optimizing its business, strengtheningR&D and innovation, promoting mergers and acquisitions, steadily advancing integration, building a competitive advantage across the entireindustry chain, achieving both quantitative and qualitative growth, and steadily improving performance and capabilities, thus completingthe "14th Five-Year Plan" targets ahead of schedule. In 2025, the Company achieved operating revenue of 31.603 billion yuan, a year-on-yearincrease of 14.43%. The Company achieved net cash ?ow from operating activities of 5.513 billion yuan, a year-on-year increase of 25.23%. Netpro?t attributable to shareholders of the listed company was 3.421 billion yuan, a year-on-year increase of 1.58%. Net pro?t attributable toshareholders of the listed company after deducting non-recurring gains and losses was 3.134 billion yuan, a year-on-year increase of 0.52%.

Steadiness creates value

Attended multiple brokerage strategy meetings, involving

hundreds ofinvestors.Participated in the collective reception day for listed

companies in the Shenzhen jurisdictiononce.Responded to more than

inquiries on Interactive Easyplatform.

During this brie?ng, the scenario short ?lm Friends producedby the Company embodied the corporate mission of "caringfor public health and creating a better life", deliveringheartwarming stories to investors and the general public andenhancing the investor experience.

CR Sanjiu strictly adheres to legal and regulatory requirements, continuously strengthens its corporate governance mechanisms, andimproves its internal control systems and compliance operation management systems to ensure steady business development andsustained value creation. The Company is dedicated to building and refining a modern corporate system that reflects both Chinesecharacteristics and Sanjiu's unique attributes. Upholding integrity in corporate governance, ensuring coordinated operations, andmaintaining transparent management, CR Sanjiu is committed to driving high-quality corporate development.

Honest and compliant business operations

CR Sanjiu has established a clearly de?ned and hierarchical internal control and risk governance structure. The Board of Directors, as the highestdecision-making body, is responsible for promoting the construction and implementation of the internal control and risk management system;its Legal Construction and Risk Control Compliance Committee, chaired by the Chairman, coordinates internal control supervision and systemimprovement. The Company has constructed a "three-line defense" risk management mechanism: business departments serve as the ?rstline of defense, undertaking basic risk management responsibilities; the Legal and Compliance Department , as the second line of defense, ledby the Chief Compliance O?cer , is responsible for system coordination, compliance review , and risk response; and the Audit Department, asthe third line of defense, independently conducts internal control audits and supervisory evaluations. Furthermore, the Legal and ComplianceDepartment has a complaint management function and promotes the extension of compliance management organizations to the grassrootslevel, establishing compliance ambassadors in each business unit and operational unit to ensure that risk control and compliance requirementsare implemented at the front line of business.

CR Sanjiu adheres to its mission of "Caring for Public Health and Creating a Better Life" and its vision of "Becoming a Leader in the PublicPharmaceutical and Healthcare Industry." Guided by the principles of law-based governance and compliant operation, the Companycontinuously improves its internal control and compliance management system. The Company systematically promotes system constructionand process optimization, formulating and implementing core systems such as theCompliance Management Systemand theAnti-MonopolyCompliance Management Measures, building an integrated management mechanism covering law, compliance, internal control, and risk.Through annual internal control self-assessments, supervisory evaluations, and special inspections, the Company achieves full coverage ofbusiness processes and solidi?es processes and improves management e?ciency through its internal control and compliance platform (ICCPsystem). Regarding risk management, the Company has established a normalized risk assessment mechanism, identifying a list of major risksand developing response plans annually, strengthening risk review in key areas such as procurement and marketing. Simultaneously, throughcompliance training, awareness month activities, and the signing of business conduct codes, the Company cultivates a compliance cultureamong all employees, promoting the transformation of compliance management from control to empowerment, supporting the Company'ssound operation and sustainable development.

Governance

StrategyCR Sanjiu Risk Control System

The Legal & Compliance Department is responsible for coordinating,organizing, and facilitating the implementation of all speci?c tasks. The AuditDepartment is responsible for conducting internal audits and supervisoryevaluations of the risk control systems of all subordinate units.

Drives and guides the establishment, improvement, and effectiveimplementation of the risk control system.

Promotes the development and supervision of the internal controlsystem of CR Sanjiu, and drives the improvement of its internal controlpolicies and systems.

The BoardThe management

levelThe executive level

Board members

The Legal Constructionand Risk ControlComplianceCommitteeRelevantdepartments

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Risks and descriptions

Potential ?nancialimpact

Opportunities and descriptionsPotential ?nancial impact

Compliance RisksRisks Comp liance Someenterprises have problemssuch as incomplete EHS(Environment, Health,and Safety) organizationalstructure, weak safetymanagement foundation,and aging equipment andfacilities, which leads toa continuous increase insafety risks.

May result in safetyincidents causing directeconomic losses includingcasualty compensation,equipment damage, andproduction interruptions.Exposure to regulatorypenalties and increasedrecti?cation costs.

Governance opportunities

The Company continuouslyimproves its legal a?airs framework,issuing multiple policies to build apractical compliance managementsystem that e?ectively prevents legalrisks.

Reduces violation risks andavoids potential ?nes andlitigation costs.Enhances managemente?ciency and reducesoperational disruption lossescaused by non-compliance.Strengthens investor andpartner con?dence, enhancingcorporate valuation.Safety RisksSafety Risks There arede?ciencies in safetyrisk identi?cation andhazard investigation andmanagement, resulting in afailure to e?ectively controlsafety risks.

Frequent incidents leadingto direct economic lossesand compensation.Regulatory penalties andlosses from productionsuspension forrecti?cation.

Brand opportunitiesThe Company continuouslystrengthens brand building andintellectual property protection.In 2025, the "999" and "Sanjiu"trademarks were recognized as well-known trademarks, and the "Sanjiu"enterprise name received renowneddesignation, with core productpackaging and decoration protectedby judicial decisions, signi?cantlyenhancing brand value and marketcompetitiveness.

Enhances brand premiumcapability and increasesproduct market share.Reduces brand infringementlosses and lowers rightsprotection costs.Increases brand intangibleasset value and strengthensinvestor con?dence.

Impact, risk and opportunity management

Establish and improve a long-term mechanism for the management and control of major risks, and efficiently advance the riskassessment process. Conduct focused inspections of the sales operations of each business unit, paying attention to regulatory hotspotsand risks such as employee con?icts of interest and bid-rigging in procurement. Regularly conduct internal control inspections or specialaudits of major risks, and focus on inspecting the management of self-operated business, procurement compliance, and productionoperations of production units to e?ectively improve risk response capabilities. Conduct risk identi?cation and assessment work annuallyto ensure timely detection of potential problems and swift implementation of control measures.

The Company continuously promotes to deeply integrate risk, internal control, and legal and compliance measures, adhering to a focuson risk governance and a key emphasis on risk prevention. It has strengthened its institutional foundation in areas such as strategic risk,operational risk, market risk, ?nancial risk, and legal risk, and continuously strengthened its risk and compliance management system.The Company regularly conducts major risk assessments and classifies and reports on major operational risks to ensure its soundoperation. In 2025, the Company did not experience any major operational risk issues.

Optimize and improve the risk assessment process

Comprehensive risk management system

Sustainable development risk identi?cation and management measures

RiskResponse measuresResults

Some enterprises haveproblems such as incompleteEHS (Environment, Health, andSafety) organizational structure,weak safety managementfoundation, and agingequipment and facilities, whichleads to a continuous increasein safety risks.

Provide support to enterprises with weakEHS management foundations and developspeci?c improvement action plans for keyweak links. We will continue to carry out basic capacity-building projects, such as the construction of adual prevention mechanism, the improvementof emergency response capabilities, and theestablishment and application of EHS trainingmaterials, to solidify the foundation of EHSmanagement.

We launched an EHS capability enhancementinitiative and a dual prevention mechanismto deepen operation and maintenanceprojects, identi?ed and categorized weakfacilities, equipment, and operations infactory areas, and established a risk database.Complete the EHS training materialdevelopment and application project, andlaunch the emergency response capabilityenhancement project.There are de?ciencies in safetyrisk identi?cation and hazardinvestigation and management,resulting in a failure to e?ectivelycontrol safety risks.

We will continue to develop a digital platformfor the dual prevention mechanism, whichwill enable uni?ed ?ling of hazardous sources,real-time tracking of hazard investigation,and real-time feedback on risk control andmanagement.

The fourth phase of the construction ofthe digital platform for the dual preventionmechanism has been launched, and theseven planned implementation units havecompleted their self-acceptance.

Risk information is collected through questionnaires.

Risk informationcollection

Organize the collected risk information to form an annual risk list database.Risk identi?cation

The top 25 risks assessed in the previous year, along with newly added risks this year, will form the scope

of this year's assessment. This assessment will be conducted by general managers and above from all

headquarters centers and departments, as well as general managers and above from business units

and operational units. Based on the scoring results, the assessment results will be rated to preliminarily

identify the Company's major annual risks. After confirmation with management, the company has

?nalized its annual list of major risks.Risk assessment

Based on the risk assessment results, relevant departments will formulate risk response plans and

implement corrective measures. For identi?ed major risks, the Legal and Compliance Department will

follow up on the implementation of the risk response plans quarterly. Simultaneously, the Company will

conduct internal control checks or special audits on major risks, depending on the actual situation.Risk response

110111

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

We strictly adhere to the provisions of theBasic Norms for Enterprise Internal Controland its supporting guidelines, updating andimproving our internal control system to form a scienti?cally designed, simple, applicable, and e?ectively operating internal controlsystem. We conduct regular annual internal control assessments and system optimization projects to ensure the e?ectiveness of theinternal control system's design and implementation, achieving improved system completeness, standardization, process optimization,and full execution. We have established an internal control compliance platform (ICCP system) to gradually solidify internal controlwork?ows and tool templates, improving the quality and e?ciency of internal control evaluation.

Internal control management

Internal control self-assessment: In accordance with the relevant requirements of the State-owned Assets Supervision andAdministration Commission (SASAC, a comprehensive internal control self-assessment was conducted, achieving 100% coverage ofall subsidiaries. The self-assessment scope included 12 key business processes such as procurement, R&D, investment, and sales. In2025, Kunming Pharmaceutical and its subsidiaries all conducted internal control self-assessments as required. Simultaneously, for anyinternal control de?ciencies identi?ed, the responsible departments were actively organized to implement corrective measures.Internal control supervision and evaluation: In accordance with the relevant requirements of the State-owned Assets Supervision andAdministration Commission (SASAC), the Legal and Compliance Department carried out internal control supervision and evaluationof its subsidiaries. The evaluation scope included important business processes such as procurement, asset management, sales, andcontract management. A total of 38 subsidiaries were evaluated in 2025, and the evaluation scope met the SASAC's requirement of "fullcoverage in three years".

Internal control assessment work

Case:holding risk control and compliance training and risk control project kick-o? meetingFrom April 24th to 25th, 2025, the 2025 RiskControl and Compliance Training Conference& Risk Control Kick-o? Meeting of CR Sanjiuwas held at its Shenzhen headquarters.Themed " Compliance as the Foundation,Risk Control as the Shield, Steady Progressfor the Future," the conference was attendedby over 110 people. The training coveredrisk management, the China ResourcesCRCL system, compliance management, andintegrity and compliance. It also analyzedkey points and cases related to the internalcontrol supervision and evaluation of centralenterprise groups. Through the training,employees learned advanced risk control andcompliance concepts and case knowledge,further enhancing their practical abilities andlaying a solid foundation for optimizing theCompany's risk control work and achievinghigher goals.

Risk Control and Compliance Training Meeting

Case:conducting constitution publicity week and compliance publicity monthDecember 18th, the Company organized activities for the2025 Constitution Publicity Week and Compliance PublicityMonth under the theme of " Abiding by Laws and Regulations,Achieving Steady Progress and Long-Term Development."These activities, targeting employees of CR Sanjiu, KunmingPharmaceutical, and Tasly, included distributing brochuresand legal booklets, holding a quiz with prizes, providinglegal compliance consultations, conducting legal educationand training, and signing and training on the Group's Codeof Conduct for Business Conduct. These efforts aimed tosafeguard the healthy development of CR Sanjiu. The brochures

Legal compliance training

CR Sanjiu adheres to the bottom line of honest and compliant operation, closely follows the requirements of laws and regulations andmanagement requirements around core areas such as intellectual property, procurement system, investment and M&A, compliancemanagement, and dispute resolution. We have established a tracking and evaluation mechanism to promote the implementation ande?ectiveness of compliance management with quantitative indicators and consolidate the compliance foundation for the Company'ssound operation.

Metrics and targets

TargetProgressIntellectual property managementExplore and build a full-process intellectual property management modelsuitable for CR Sanjiu.

Assist the investment center and R&D center incarrying out patent support work for speci?c projects;Draft a classi?cation method for the Company'sinvention patents

Procurement system upgrade

Strengthen the two-tiered management and execution organization system forprocurement, and continuously improve the concentration of procurement.

Public disclosure rate = 98%; centralizedprocurement rate= 93%; e-procurement rate =98%.Investment and m&a support

Enhance professional capabilities to enable legal services to support investmentand M&A throughout the entire process.

Participated in 12 investment and M&A projects,providing relevant legal support for these projects.Participate in the post-evaluation of the Company'sinvestment projects in 2025.Compliance management

Promote the upgrading and optimization of the Company's compliancemanagement system.

Exploring the implementation of the CRCLsystem in the ?eld of fair competition compliancemanagement.

Dispute resolutionOptimize the case management mechanism of "uni?ed management, classi?edguidance, and hierarchical responsibility"; strengthen the allocation of litigationresources and enhance risk prevention and control for important and majorcases; and carry out case-based management promotion work.

Case success rate > 90%Intelligent digital applications

Objective: Digital and intelligent procurement: Build a uni?ed procurementmanagement system (SRM); upgrade the contract system.

Complete the construction of the contract

management system and continuously keep

upgrading.

distributed during the training reached over 800 people,and the quiz with prizes saw over 1,800 participants.

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard aharmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, CR Sanjiu closely aligns with the Company'soverall strategic development, fully leveraging the core role of Party organizations in "setting the direction, managing the overall situation,and ensuring implementation." Emphasis is placed on top-level design and overall planning, e?ectively integrating Party building intoall aspects of corporate governance. Through forward-looking planning and systematic implementation, the Company has achievedremarkable results in strengthening ideological and political guidance, consolidating the organizational foundation, promoting culturalintegration, expanding publicity, and uniting the e?orts of mass organizations and the united front. This has powerfully promoted thedeep integration of Party building and business, providing a strong political and organizational guarantee for the Company's high-qualitydevelopment.

Party's leadership

Political guidance

We earnestly implemented the "First Agenda" system, conducting 10 study sessions throughout the year and developing 24 measuresfor implementation, including in-depth study and dissemination of the spirit of the Fourth Plenary Session of the 20th CPC CentralCommittee. We implemented the central group study system, organizing 12 centralized study sessions and producing 10 special researchreports; we conducted a "July 1st" themed Party Day activity, with the Party Secretary delivering a special Party lecture to unite our e?orts.Organizational developmentRegular Party building work meetings were held to promote the deep integration of Party building with production and operations.Throughout the year, supervision was provided for the re-election and supplementation of 28 directly managed Party organizations, andguidance was given to 7 units to establish Party organizations. The "Strengthening Reform and Aiming for Targets" themed campaignresulted in 86 measures, using Party building to guide the post-investment integration of Tasly, promoting the smooth transition of newlyacquired enterprises, and steadily integrating them into the overall development of the Company. Party a?airs training was conducted atdi?erent levels to fully leverage the exemplary role of Party members.

Cultural promotionStrictly implement the main responsibility for ideology and improve the "three-review and three-proofreading" mechanism. Carryout positive publicity around the central tasks, formulate a cultural enhancement plan for 2025-2027, and promote the integration ofKunming Pharmaceutical Group and Tasly Group 's culture; create a "1+X" Party building brand system and cultivate the "Three Lives,Nine Loves" Party building brand.The Power of Mass Organizations

We standardized e?orts in union work, held 103 sta? congresses, launched the CR Sanjiu "Skills Cup" labor competition, implemented96 "I Do Practical Things for the Masses" initiatives, and carried out more than 30 care activities. Two employees were awarded the title of"National Model Worker." We adhered to the principle of Party building leading Youth League building, established 10 youth commandoteams, and conducted the "Two Reds and Two Excellents" selection, stimulating the vitality of mass organization cadres.

Case:using party building to promote post -investment integration at taslyAdvancing the "Post-Investment Integration" Work at Tasly. Using the "Four Synchronizations and Four Alignments"approach, we are advancing key tasks of the "100-Day Integration, One-Year Integration, and Three-Year Integration" ofParty building in a way that suits local conditions. On March 27th, the handover day, the Tasly Pharmaceutical Group PartyCommittee was established, improving the Company's governance system, incorporating Party building requirements intothe Company's Articles of Association, and strengthening the Party's overall leadership during the merger and acquisitionintegration process; optimizing the Party organization structure, reviewing and optimizing the structure of Tasly's 30 Partyorganizations, and continuously consolidating the foundation of Party building; strengthening the construction of Tasly'sParty and mass work teams, and ensuring su?cient and capable Party a?airs personnel; and incorporating the Tasly PartyCommittee into the CR Sanjiu Party building assessment system to achieve joint assessment of Party building and businessoperations, focusing on promoting the e?cient integration of Tasly's Party building and business. Meanwhile, leveragingthe advantages of joint Party building, the Party branch of CR Sanjiu Guanlan Base and the Party branch of Tasly ZhijiaoPharmaceutical jointly organized a year-long "joint construction" activity. Through methods such as "jointly learningtheoretical knowledge, sharing activity venues, sharing technical resources, and jointly planning business development,"they continuously promoted "integration and vitality" with "Party building synergy," thus empowering the Company's high-quality development.

Tasly "Party Building and Culture" Integration Work Conference

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

CR Sanjiu always keeps original aspiration ?rmly in mind, forging ahead with determination. Guided by the mission of "Caring for PublicHealth and Creating a Better Life," we strive towards the goal of becoming a "leader in China's public health industry," serving everymember of Chinese families and committed to becoming China's No. 1 pharmaceutical and healthcare brand. The Company continuouslyenhances employees' pride, sense of belonging, and cultural identity through diverse cultural activities, ensuring that corporate care andpersonal value resonate in unison. Simultaneously, relying on its "1+N" brand strategy, it innovatively utilizes AIGC technology to createcommunication content to vividly convey the Company's brand philosophy and comprehensively showcase CR Sanjiu's brand image andresponsibility as a leader in the pharmaceutical and healthcare ?eld.

Promoting responsible operation

We continuously strengthen our corporate culture, based on our cultural philosophy system. Our corporate culture development is guided bythe principles of "Care, Responsibility, and Excellence," deeply integrating cultural soft power into our corporate development strategy anddaily operations. The Company not only builds internal consensus through a clear mission, vision, and value system, but also promotes theimplementation of our culture through an organizational atmosphere of "Sincerity, Unity, Openness, and Progress." In practice, the Companyemphasizes the transmission and resonance of our culture with stakeholders, continuously carrying out impactful cultural projects.2025 is the year for concluding the Company's 14th Five-Year Plan and planning the 15th Five-Year Plan. At this important juncture, theCompany launched a three-year "Cultural Enhancement Campaign" to actively promote the upgrading and expansion of its corporateculture concepts. Simultaneously, it actively promoted the integration of Kunming Pharmaceutical and Tasly's cultures, achieving consistentimplementation of China Resources culture and accelerating collaborative development. It continued to promote the special project ofinheriting the red gene, improved the management system and mechanism for corporate culture construction, and strengthened thedissemination of the group and company's corporate culture through new employee training, specialized training, and corporate cultureself-inspection and recti?cation, promoting consistent implementation. The Company organized a quiz activity commemorating the 80thanniversary of the victory of the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War, with 3,164employees participating. The average score ranked 9th, and 10 employees ranked among the top 500 individually.

Corporate culture building

The Cultural Philosophy System of CR Sanjiu

Corporate culture

Care for public health Create a better life together Persist in realizing the great rejuvenation of the Chinese nation Pursue creation of a happy life for the people Strive for the economic prosperity for the countryBecome a leader in the publichealthcare industry

Integrity Performance-Oriented People-Oriented Win-Win Collaboration

Sincerity Solidarity Open-mindedness Proactivity

Dedicate oneself of the cause of the country Be the pioneer in innovations Forge ahead with perseverance Fight for the better

MISSION

VISIONVALUE

SPIRITATMOSPLERE

MissionDNA

VisionValue

Atmosplere

Care Responsibility ExcellenceCultural Slogan

Spirit

DNA

Case:cultural resonance and the warmth of home: seamless integration of "small family" and"large family"

From July 31st to August 1st, 2025, CR Sanjiu held an open day for employees and their families at its Guanlan basein Shenzhen, themed " Ao Nuo Together, Protecting the Future of Bone Health." The event, jointly organized by theCompany's labor union, youth league, and other departments, attracted over 60 employee families from the Shenzhenheadquarters. During the event, family members gained a direct understanding of China Resources' spirit, its revolutionaryheritage, development history, the construction of its traditional Chinese medicine industry chain, its long-term plans, andits mission and vision through vivid graphic displays. In front of the innovation laboratory and intelligent production line,family members experienced ?rsthand the Company's technological strength and innovative culture.The event featured family photo shoots and a fun-?lled carnival, along with interactive games such as "Medicine WeighingExpert" and "Parent-Child Craft Workshop," integrating corporate elements into family fun and conveying health conceptsthrough games. This not only allowed family members to gain a deeper understanding of the Company's culture andbusiness but also strengthened employees' sense of belonging and pride in the Company, demonstrating CR Sanjiu'ssystematic investment in corporate culture and humanistic care in promoting its vision of "becoming a leader in the masspharmaceutical and health industry. "

CR Sanjiu 2025 Employee Family Open Day

Awards and honors

Became a standing director unit ofthe China Enterprise Culture Research

AssociationChina Resources Sanjiu was namedone of the "Top 100 Chinese Brands for

Internationalization"

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

We consistently place brand building at the core of our corporate strategy, adhering to a consumer health-oriented approach andsystematically constructing and continuously implemeting our "1+N" brand strategy. This strategy centers on the well-known "999"brand, extending to cover health needs across the entire life cycle, including colds, gastrointestinal issues, dermatology, orthopedics,pediatrics, chronic diseases, and traditional Chinese medicine wellness, forming a clearly de?ned and synergistic brand matrix. Underthe guidance of the brand strategy, the Company is not only committed to consolidating its leading position in the CHC (ConsumerHealth) ?eld, with "999 Cold & Flu Spirit Cold" maintaining its leading position in the cold medicine category and "Piyanping" in thedermatology market, but also deeply integrating brand building with social responsibility, actively ful?lling our corporate mission of"Caring for Public Health and Creating a Better Life."With "warmth and care" as our emotional core, we closely link product services, brand communication, and social value creationthrough innovative responsible brand communication and robust public opinion management. This systematically enhances ourbrand in?uence, competitiveness, and credibility, steadily moving towards our vision of "becoming a leader in the mass healthcareindustry." Through systematic brand building and responsible practices, CR Sanjiu has not only improved its brand influence andmarket competitiveness but has also gradually constructed a responsible brand ecosystem based on "Care, Responsibility, andExcellence" and grounded in consumer trust.

We continuously build our public opinion managementsystem, focusing on capacity building to create a favorablepublic opinion environment for business development. Weactively improve our public opinion management mechanismsand organizational structure, constructing a closed-loopmanagement system covering the entire process from routinemonitoring to crisis response. We strengthen our dailymonitoring and early warning response capabilities to ensurethe Company can e?ectively prevent, steadily respond to, and

handle various risks in complex public opinion environments,safeguarding the Company's long-term reputation.Simultaneously, while continuously strengthening themanagement of public opinion platforms, we organize relevanttraining and simulation exercises to continuously improve allemployees' awareness of public opinion risks and emergencyresponse capabilities, fostering a culture of "reputationmanagement for all."

Building a responsible brand

Innovative and Responsible Brand Communication

Deep integration of contentmarketing and popular culture

Innovative product placement in top-tier dramas such as"Folding Back" and variety shows such as "In?nite BeyondClass" has generated numerous trending topics onWeibo, accumulating hundreds of millions of exposuresand successfully inspiring user co-creation and emotionalresonance.

Creating immersive o?ineexperiencesSuccessfully held events such as the CR Sanjiu Brand Daydual-venue market, allowing consumers to perceive thebrand's warmth and health philosophy through interactiveactivities such as intangible cultural heritage handicrafts andhealth games.

Leveraging cutting-edge technologies

to lead communication trendsExtensive use of AIGC technology to create advertisingcontent, enhancing creative efficiency and formatinnovation; conducting content marketing on platformssuch as Douyin, with related videos for Cold & Flu Spiritaccumulating over 5 billion views, e?ectively solidifying ayouthful and fashionable brand image.

Infusing public welfare attributesand ful?lling social responsibility

Continuously carrying out public welfare activities suchas "999 Health Day" to inject warm social value into thebrand and realize the unity of commercial brand andsocial responsibility brand.

Case:dual venue collaboration revitalizes brand, health market conveys warmth during thecoldest period of winterFrom December 17th to 18th, 2025, during the ChinaResources Group Brand Day, CR Sanjiu innovativelyadopted a "dual-venue linkage" style, focusing oncore brand values and simultaneously holding brandday market activities at the group's main market andits Shenzhen headquarters. At the China ResourcesGroup Brand Day market, the focus was on core brandvalues, showcasing the core product matrix of the threemajor brands: 999, Tasly, and Kunming PharmaceuticalGroup. On-site activities such as an intestinal mazeand interactive "Third Uncle" IP activities attractedwidespread participation, effectively enhancing branda?nity and memorability. Simultaneously, the CR Sanjiuheadquarters brand market opened, featuring " sixdistinctive stalls + immersive experiences" as its corehighlights. It cleverly integrated cultural experiences suchas intangible cultural heritage lacquer fans, rubbings,and DIY sachets, deeply linking health knowledgepopularization with the brand's emotional message of "warmth and care."At the event, professional staff provided participantswith product knowledge explanations and hands-onworkshops. Leaders, guests, and media reporters visitedvarious booths to experience and interact with theproducts, gaining a detailed understanding of the brandculture and product advantages. They highly praised CR

CR Sanjiu's "Dual Venue Linkage" - Participating in the Group'sBrand Day Market Event

Sanjiu's innovative approach of conveying health conceptsand practicing brand warmth through a market format.The event not only comprehensively showcased theCompany's brand connotation of "caring for public health"and its innovative vitality, but also strengthened theemotional connection with consumers and stakeholdersthrough diverse communication methods. It successfullytransformed brand culture into a tangible and interactivewarm experience, achieving a dual enhancement of brandvalue and public recognition.

Key performance

In 2025, the Company's overall public opinion situation was healthy and controllable, with information primarily consisting ofobjective and neutral data, accounting for approximately

99.16%

.Awards and honors

Listed among the "2025 Asia's 500 Most In?uential Brands"

"Top 100 Chinese Brands for Internationalization"Ranked 29th in the "Ipsos 2025 China Brand In?uence Index"

"999" received a special course recording from the State-ownedAssets Supervision and Administration Commission.

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

Adhering to to business ethics

CR Sanjiu deeply implements the requirements ofcomprehensively and strictly governing the Party, and deeplyintegrates business ethics governance into the Company'sstrategy and daily operations. The Audit Committee regularlyreviews and supervises matters related to business ethics andreports to the Board of Directors. We have established theCR Sanjiu Legal Construction and Risk Control ComplianceCommittee to implement theChina Resources Group Code ofBusiness Conduct, regulating the recommended and prohibitedbehaviors in key management areas such as anti-monopoly, anti-commercial bribery, overseas compliance, and business partnersfor all employees. We strictly comply with theAnti-Monopoly Lawof the People's Republic of Chinaand theAnti-Money Laundering

Law of the People's Republic of China, among other applicablelaws and regulations. We adhere to theCR Sanjiu Code ofBusiness Conductand consistently uphold theCR Sanjiu CleanEmployment Regulationsand theCR Sanjiu Five Commandmentsfor Compliance. Meanwhile, we continuously refine the CRSanjiu Provisional Measures for the Management of Con?icts ofInterest,and the CR Sanjiu Measures for the Management of Anti-Money Laundering, e?ectively preventing any form of corruption,embezzlement, bribery, fraud, money laundering, extortion,and unfair competition. We require suppliers to comply with theCR Sanjiu Supplier Code of Conduct,commit to clean businesspractices, and undergo regular assessments of their businessethics performance.

Governance

CR Sanjiu strictly adheres to its internal management systems.By streamlining the four-pronged reporting channel (letters,visits, online, and telephone) and rigorously investigatingand punishing violations, we strengthen the deterrent effectof "not daring to be corrupt." We have carried out the "4+2"reform of its disciplinary inspection institutions, optimizingthe supervisory structure; and issued 28 targeted disciplinaryinspection recommendations to address shortcomings, improvesystems, and tighten the "cage against corruption". Through

holding warning education conferences, innovatively carryingout the "Everyone Speaks on Integrity" activity, and improvingthe regular and long-term integrity education mechanism, wecontinuously strengthen the ideological bulwark of employees'"not wanting to be corrupt," embedding integrity requirementsinto the entire business process.CR Sanjiu focuses on key areas, key tasks, and key groups,optimizes the "comprehensive supervision" mechanism, andcontinuously fosters a clean and honest corporate atmosphere.

Strategy

Business ethics-related risks, opportunities, and potential impacts:

Opportunities and

description

Reputation OpportunitiesMaintaining high standards of business ethics helps attract the trust of potential investors,win the trust of customers, and enhance the Company's reputation.Policy OppotunityAnti-bribery and anti-corruption e?orts help companies establish sound internalmanagement systems and processes, optimize internal management, and improvemanagement e?ciency and transparency.

Potential ?nancialimpact

Brand value and market con?dence growthImprove company operational e?ciency and achieve signi?cant cost savings throughprocess optimization, while mitigating potential governance losses.

Impact, risk and opportunity management

Strengthen the institutional foundation

The Company has formulated and strictlyimplemented core systems such as theCRSanjiu Integrity Provisionsand theCR SanjiuFive Commandments for Compliance, clearlyde?ning bribery and corruption as inviolablered lines.

We build a comprehensive supervisionsystem with intra-party supervision as themainstay, and integrate the oversight forces ofdiscipline inspection, inspection, and auditingthrough mechanisms such as joint meetings,information sharing, and the transfer of clues.

The Company issued regulations such as the

Working Methods of the "ComprehensiveSupervision" System of CR Sanjiu and

theManagement Rules for Party Conductand Integrity Supervisors of CR Sanjiu,clarifying responsibilities, procedures,and requirements, and providing a solidinstitutional and organizational guaranteefor business ethics management.

We have formulated and implementedtheCR Sanjiu Procurement ManagementSystem, requiring suppliers to sign aLetterof Commitment to Integrity and Compliance

during the procurement process, andpublishing the supplier blacklist rulesthrough the Integrity Platform.

Risks and descriptions

Reputational risks

Serious violations of business ethics may lead to legal problems, reputational damage,and loss of customers and investors.

Potential ?nancial

impact

Brand value and market con?dence damagedFailure to promptly detect and stop violations resulted in direct economic losses andcompliance ?nes.

Risks and Descriptions

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China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard aharmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

We will focus on key areas and key positions to implement precise supervision, strengthen daily supervision of leading cadres and keypersonnel, and move the supervision checkpoint forward through integrity talks and personal matters reporting (covering businessactivities, related transactions, etc.).In 2025, CR Sanjiu routinely conduct business ethics and anti-corruption audits across all of the Company's subsidiaries to assess compliance withtheCode of Business Conductand anti-corruption policies. Based on the audit ?ndings, we recommend corrective actions to address any identi?edissues, ensuring the e?ective implementation of business ethics principles, including anti-corruption and anti-bribery measures.Specialized supervision was strengthened in areas with high risks of corruption. In 2025, special inspections were organized on issuessuch as violations of the spirit of the Eight-Point Regulation of the Central Committee and infrastructure projects, and 18 clues toproblems were discovered.We will promote the extension of supervision to the grassroots level, strengthen the grassroots team of Party conduct and integrity supervisors, andenhance front-line supervision capabilities by arranging for them to participate in special training and supervision inspections.

Strengthen moral supervision

Standardize the reporting procedure

Establish and publicize diversi?ed reportingchannels, including dedicated telephonenumbers, email addresses, mailing addresses,and an online "one-click reporting" platform, toaccept both real-name and anonymous reports.

The Company's reporting email address CR999-SJB-TS@999.com.cn and the Discipline InspectionCommission's reporting email address cr999-jcb-ts@999.com.cn are publicly available. Thereporting platform "99 'Rules' 1" and the "Clean999" WeChat o?cial account and "RunworkRunyue" account stipulate anonymous reportingmethods and strictly enforce the discipline ofhandling letters and visits reports.

Strictly implement theDetailed Rules for HandlingReports and Accusations by the DisciplineInspection and Supervision Institutions of ChinaResources, inform you of the acceptance statusof real-name reports within 15 working days, andadvocate giving priority to real-name reports.

The formulation of speci?c operational guidelines, such as theAnti-Monopoly Compliance Management Measures, theAnti-MonopolyCompliance Guidelines, and theGuidelines for Compliance of Concentration of Undertakings Declarations, provides a completeinstitutional basis and code of conduct for anti-monopoly compliance.TheAnti-Monopoly Compliance Management System Organizational Structureestablishes a clear "three-line defense" responsibilityand coordination mechanism from the Company headquarters to the business units, clarifies the control boundaries betweenthe compliance management department and various business departments, and ensures that management responsibilities areimplemented at each level and that horizontal coordination is e?ective."Compliance Ambassador" has been set up in each business unit and marketing business line. They are responsible for the promotion,review, consultation and inspection feedback of anti-monopoly compliance in front-line business, so as to ensure that compliancerequirements penetrate to the front end of the business and realize the implementation of risk prevention and control.

Preventing unfair competition

CR Sanjiu adheres to the business principles of upholding business ethics and promoting integrity. Focusing on core tasks such asanti-corruption review and supervision, and the cultivation of a culture of integrity, it has scienti?cally formulated relevant indicatorsand targets, and established a dynamic tracking and e?ectiveness evaluation mechanism to guide the implementation of varioustasks related to business ethics construction with clear indicators.

Metrics and Targets

TargetProgress

Continuously enhancethe intensity of anti-corruption review andsupervision

2 corruption and bribery cases have been concluded.1 lawsuit concerning embezzlement, commercial bribery, etc.The incidence of corruption incidents was 0.006%.Continuouslystrengthen thecultivation of a cultureof integrity

Throughout the year, 883 anti-corruption education and awareness activities were held, reaching 72,803person-times.The total training time for anti-corruption among employees is 145,606 hours.The "Everyone Speaks on Integrity" event was held, collecting 76 works, and 71 articles were publishedthrough the "Integrity 999" online platform.

In 2025, we organized multiple training and awareness campaigns on business ethics and anti-corruption for all company employees

(including interns, part-time employees, and contractors). These campaigns were conducted through various means, including a

Compliance Awareness Month event, promotional publications, WeChat o?cial account updates, and o?ine specialized drills. Create

a clean and upright green business environment.

By innovating methods, we promoted integrity education to the core of people's minds and hearts, and created the "Clean999" online

publicity platform, publishing 71 articles on integrity news and knowledge throughout the year.

We innovatively launched the "Everyone Speaks on Integrity" series of activities, adopting a "learning, speaking, and competition

integrated" model to encourage employees to shift from "passively listening" to "actively speaking." In 2025, we collected 76 entries.

We standardized e?orts in union work, held 103 sta? congresses, launched the CR Sanjiu "Skills Cup" labor competition, implemented

96 "I Do Practical Things for the Masses" initiatives, and carried out more than 30 care activities. Two employees were awarded the

title of "National Model Worker." We adhered to the principle of Party building leading Youth League building, established 10 youth

commando teams, and conducted the "Two Reds and Two Excellents" selection, stimulating the vitality of mass organization cadres.

Cultivating a culture of integrity

Warning Education ConferenceParty Conduct and Integrity Building Work Conference

We strictly adhere to con?dentiality regulations,protect whistleblower information, establish andimprove whistleblower protection systems, ensuresmooth channels for reporting and complaints,e?ectively safeguard the rights and interests ofwhistleblowers, and conduct investigations inaccordance with regulations such as theRules forSupervision and Discipline Enforcement by theDiscipline Inspection Organs of the CommunistParty of Chinato ensure the e?ectiveness andcredibility of the reporting mechanism.

Adhering to the principles of greendevelopment, and jointly painting an

ecological home

Upholding integrity and drivinginnovation to jointly safeguard a

harmonious society

Adhering to integrity and clearregulations, and laying a solidfoundation for sound operation

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.2025 SUSTAINABILITY AND ESG REPORT

Outlook for 20262026 marks the start of the "15th Five-Year Plan" and is also a crucial year for thoroughly studying and implementing the spirit of theFourth Plenary Session of the 20th CPC Central Committee. CR Sanjiu, standing at a new starting point for high-quality development in thepharmaceutical and healthcare industry, will continue to implement ESG principles in operations, ful?ll our mission of serving the nation 'smajor needs, shoulder the responsibility of innovative development in the traditional Chinese medicine industry, and further promote theimplementation of the " Health-?rst Development Strategy," continuously striving forward on the path of revitalizing traditional Chinesemedicine and safeguarding people's well-being.Focus on full-chain collaboration and activate the innovative momentum of traditional Chinese medicine. We will continue todeepen the dual-engine approach of "innovation + brand," re?ne our product R&D and innovation capabilities, and strictly adhere to thebottom line of drug quality and safety. We will proactively embrace the wave of digitalization, accelerate the empowerment and upgrade ofAI technology in all aspects of R&D and production, and safeguard public health with high-quality traditional Chinese medicine products andservices, thus building a solid line of defense for people's health.Dedicate ourselves to low-carbon transformation and build an ecological pharmaceutical system. We will resolutely implement thenational "dual-carbon" strategy, take green production as our guideline, optimize the ecological planting model of medicinal herbs, deepenthe construction of near-zero carbon emission parks, reduce the carbon footprint of production through technological innovation and cleanenergy, and improve the mechanism for the resource utilization of waste, so as to achieve a win-win situation for industrial development andecological protection.Focusing on improving people's livelihoods and deepening our social responsibility practices, we will leverage the advantages ofthe traditional Chinese medicine industry chain to support rural revitalization, conduct training in medicinal herb cultivation techniques,expand sales channels for agricultural products, and promote industrial efficiency and increased farmer income. We will also dedicateourselves to public health initiatives, organizing expert teams to conduct science popularization and free clinics in communities, donatingcommonly used medicines and medical supplies, and safeguarding people's well-being through diverse public welfare actions. This willdeepen collaboration between enterprises and communities and jointly build a healthy future.

Improve our governance system and solidify the foundation of ESG values. We will set Party building as our guideline to upgrade ESGgovernance, optimize cross-departmental collaboration mechanisms, refine the construction of ESG indicator control and informationdisclosure systems. We will continuously build a regular communication platform for stakeholders, and promote the deep integration of ESGconcepts into the entire process of corporate operations and decision-making, thereby consolidating the governance foundation for thesustainable development of the Company.The tide of the times surges forward, and the blueprint for development inspires us to forge ahead. Standing at the new starting point of the"15th Five-Year Plan", we will be driven by the modernization and innovative research and development of traditional Chinese medicine,focusing on our core pharmaceutical and healthcare business. We will adhere to the "One body, two wings" strategy to create a newchapter, fully integrate into the "Healthy China" strategy, continuously promote the "AI+" intelligent and digital transformation, strengthensupply chain collaboration and green operation, and focus on optimizing organizational e?ciency and upgrading the governance system.Upholding our original aspiration in pharmaceutical manufacturing and ful?lling our social responsibilities, we will work hand in hand withall sectors to build a healthy ecosystem, safeguarding public health with compassionate and responsible practices, and writing a higher-quality development chapter in serving the national economy and people's livelihood.

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.Key performance table ?

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2025 SUSTAINABILITY AND ESG REPORT

Key performance table

Economic performanceIndicatorsUnit202520242023

Total revenueRMB 10,0003,160,257.762,761,661.182,473,896.33Total assetsRMB 10,0005,880,467.874,008,197.234,014,845.59Total pro?tRMB 10,000486,407.92459,361.07375,445.32Net pro?t attributable to shareholders oflisted companies

RMB 10,000342,100.12336,788.90285,293.17Total taxesRMB 10,000392,000.00289,861.48292,896.93Total investment in R&DRMB 10,000173,350.7195,297.6388,895.12

IndicatorsUnit202520242023

Pass rate of drug sampling tests%100100100Number of complaints received aboutproducts and services

Piece151117198Complaint handling rate%100100100Product and service satisfaction%99.8100100Responsible purchasing ratio%100100100Rate of suppliers passing quality, environmentand occupational health and safety systemcerti?cation

%100100100

Market performance

Social performanceIndicatorsUnit202520242023

Labor contract signing rate%100100100Social insurance coverage rate%100100100Number of paid vacation days per capita per yearDay7.287.9Number of new employeesPerson2,8012,322 2,286Total number of employeesPerson30,30420,03120,318—By genderMale employeesPerson15,53510,73310,894Female employeesPerson14,7699,298 9,424

—By employment typeFull-time employeesPerson30,30420,03120,318Part-time employeesPerson000

IndicatorsUnit202520242023—By age29 years and underPerson6,4334,6845,00430-50 years oldPerson21,71113,73513,67951 years and olderPerson2,1601,6121,635—By educational backgroundGraduate and abovePerson2,1281,2891,048UndergraduatePerson12,4508,0547,404Junior collegePerson9,8065,6416,067High school and belowPerson5,9205,0475,799Comprehensive employee turnover rate%10.5410.5413.5Number of ethnic minoritiesPerson2,5881,846810Percentage of female managers%4436.735Number of employees with disabilitiesPerson1631215Employee satisfaction%82.284.298.04Total annual training attendancePerson-time786,835308, 876306,922Employee training coverage%10098.6895.77Annual per capita training hoursHour35.1430.32 14.11Annual investment in employee trainingRMB 100002,194.881,043.2776Health checkup rate of all employees%100100100Occupational health examination rate%100100100Number of work-related deathsPerson000Number of deaths due to occupational diseasesPerson000Investment in helping employees in di?cultyRMB 1000087.0278.91521.12Investment in production safetyRMB 100006,425.1975,831 4,947Number of full-time safety management personnelPerson216229339Employee safety training hoursClass hours355,434650,100566,273Safety training hours of relevant partiesClass hours27,647 34,71115,819EHS emergency drill attendancePerson-time18,40316,68716,720Number of EHS emergency drillsPerson-time696617465Extraordinarily major accidentsItem000Major accidentItem000Serious accidentsItem000General accidentsItem120Number of fatal accidentsTime000Number of fatalities in safety accidentsPerson000Lost time rate of employees in million man-hours

Person/million hours

0.290.520.12Lost workdays due to work-related injuriesDay642187168

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.Key performance table ?

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2025 SUSTAINABILITY AND ESG REPORT

Environmental performance

IndicatorsUnit202520242023Total Investment in Environmental ProtectionRMB 10,0006,657.184,2344,368Investment in Energy SavingRMB 10,0001,254.35663562Number of people trained in environmental protectionPerson-time20,28317,38014,006Number of people covered by environmental protection trainingPerson12,07110,9428,567Environmental protection training hoursClass hours287,018273,214111,723Number of participations in environmental public welfareactivities

Time1089698Total wastewater emission10,000 tons482.84268.02299.86Total emission of waste gas10,000 cubic meters1,082,414.56863,248.98765,540.25Total COD emissionTon117.4860.0267.14COD emission intensityTon/RMB 10,0000.000043590.0000340.000035Total ammonia nitrogen emissionsTon5.00 2.012.39Ammonia nitrogen emission intensityTon/RMB 10,0000.0000020.0000010.000001Total NOX emissionTon50.23 47.8766.34NO

x emission intensityTon/RMB 10,0000.0000190.0000270.000035Total SO

emissionTon2.123.474.70SO

emission intensityTon/RMB 10,0000.0000010.0000020.000002Total emissions of particulate matter (PM)Ton7.108.1910.00Emission intensity of particulate matter (PM)Ton/RMB 10,0000.0000030.0000050.000005Total emissions of volatile organic compounds (VOCs)Ton15.135.878.87Emission Intensity of Volatile Organic Compounds (VOCs)Ton/RMB 10,0000.0000060.0000030.000005Total amount of medical waste (HW02) generatedTon346.01125.75128.27Total amount of waste pharmaceuticals (HW03) generatedTon254.48201.69340.86Total amount of other hazardous wastes generatedTon2,578.40675.31783.22Total hazardous waste generationTon3,178.891,002.751,252.35Intensity of hazardous waste generationTon/RMB 10,0000.0011800.0005660.000657Amount of hazardous waste disposalTon3,199 1,116.851,171.47Total amount of general industrial solid waste generatedTon205,317.80144,261.22134,557.22General industrial solid waste generation intensityTon/RMB 10,0000.07620.08150.0706Comprehensive utilization of general industrial solid wasteTon203,213.30139,452.47133,831.03Recycling rate of general industrial solid waste%98.9696.6599.44Total industrial solid waste generationTon208,496.69145,263.97135,809.57Gasoline consumptionTon80.1250.0859.61Diesel consumptionTon154.14167.40171.72Purchased electricity consumption10,000 kWh34,875 21,660.5523,331.43Purchased steam consumptionMillion kilojoules1,029,434.60536,173.38791,759.19Natural gas consumption10,000 standard m

4,063.992,525.492,647.83Thermal energy consumptionMillion kilojoules1,029,434.6536,173.38791,759.19Clean energy consumption

Ton of standardcoal

10,796.255,136.685,788.57

IndicatorsUnit202520242023

Total comprehensive energy consumption

10,000 Tons ofstandard coal

13.198.08389.4754

Comprehensive energy consumption per RMB 10,000 of addedvalue (comparable price)

Ton of standardcoal/RMB 10,000

0.10190.09810.1100

Comprehensive energy consumption per RMB 10,000 ofproduction value (comparable price)

Ton of standardcoal/RMB 10,000

0.0554 0.04560.0497

Comprehensive energy consumption per RMB 10,000 of totalrevenues

Ton of standardcoal/RMB 10,000

0.04170.02930.0383

Consumption of toxic and hazardous materialsTon1,181.1991,412.905,421.11Consumption intensity of toxic and harmful materialsTon/RMB 10,0000.00040.00080.0028Total GHG emissionsTon of CO

e284,864.38222,120.65276,450.88Scope 1 - direct GHG emissionsTon of CO

e61,349.81 55,312.1958,235.73Scope 2 - Indirect Greenhouse Gas emissionsTon of CO

223,514.57166,808.46218,215.15GHG emission per RMB 10,000 of production value (comparableprice)

Ton of CO

e/RMB10,000

0.13980.12540.1450

GHG emission per RMB 10,000 of total revenues

Ton of CO

e/RMB10000

0.09010.08040.1117

Total industrial water usageTon27,436,200.0029,929,123.4029,444,432.50Industrial water intensityTon/RMB 10,00010.180816.901015.4461Freshwater usage in industryTon5,543,5374,224,1324,971,951Freshwater usage per RMB 10,000 of industrial output value (atcomparable prices)

Ton/RMB 10,0002.05702.38542.6082Industrial circulating water consumptionTon21,892,708 25,704,99124,472,481.50Industrial water reuse rate%79.7985.8983.11Total industrial water savingsTon21,892,708 25,704,99124,472,481.50O?ce and domestic electricity consumptionkWh40,751,177.5923,125,158.1120,791,860.35O?ce and domestic water consumptionTon417,975.07372,936.572,629,996.67O?ce and domestic wastewater generationTon376,177.56326,540.572,488,536.13O?ce paper usagePiece25,974,91419,882,033.9329,917,207O?ce waste disposal volumeTon2,984.192034.52621.81Total packaging material usage by weightTon246,775.7771,12398,047Governance performance

IndicatorsUnit202520242023Percentage of female directors on the Board of Directors%18.1818.1818.18Number of shareholders' meetings heldTime876Number of board of meetings heldTime152413Issuance of regular reportsItem222Issuance of temporary announcementsItem9213167Coverage of anti-corruption training%100100100Hours of employee anti-corruption trainingHour145,606160,50053,435Convening of company warning and education conferenceTime623Percentage of employees receiving ethics training%100100100

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.Index of indicators?

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2025 SUSTAINABILITY AND ESG REPORT

Index of indicators

Report Catalog

Corresponding Indicatorsof China Corporate SocialResponsibility ReportingGuidelines (CASS-ESG 6.0)

Reference IndicatorSystem for ESG SpecialReporting of ListedCompanies Controlled byCentral Enterprises

ESG Assurance StatementA4G4.2Message from the ExecutiveP2.1Feature: synergistic development of the whole industry chainto create new quality productive forces in the traditionalchinese medicine industry

S2.1.15About Us

Company Pro?leP3.1Brands and ProductsP3.3G1.2Organizational StructureP3.4Focus on 2025SustainabilityManagement

Sustainability and ESG ConceptsG1.1.7G1.1, G1.3Sustainability and ESG WorkImplementation

G1.1.1-G1.1.8, G1.1.10-G1.1.12Stakeholder CommunicationG1.3.1-G1.3.2G3.1, G3.2, G3.3Materiality Issues ManagementG1.1.9Protect the greenand strive for a betterfuture, jointly createan ecological home.

Strengthening Climate Governance

E1.1.1-E1.1.6, E1.1.11-E1.1.16,

E1.1.19

E3.1-E3.4, E5.1Improve EnvironmentalManagement

E2.1.1-E2.1.9, E2.2.1, E2.2.3,E2.2.5-E2.2.7, E2.4.1-2.4.4,E3.1.2-E3.1.5, E3.2.3-E3.2.4

E5.1-E5.6Environmentally Friendly OperationE2.3.1-E2.3.5, E3.3.1-3.3.7

E1.1-E1.4, E2.1-E2.3, E4.1,

E5.2, E5.3

Upholding integrityand pursuinginnovation, jointlysafeguarding aharmonious society.

Focus on Innovative DevelopmentS2.1.1-S2.1.13, S2.1.15S2.3Deepen Digital TransformationS2.2.1-S2.2.7S4.4.1Optimizing Services, ProtectingHealth

S1.2.7, S2.1.14, S3.3.15-S3.3.17,S3.4.1-S3.4.4

S2.1-S2.2Industry Cooperation and Win-WinS2.1.3S2.3.3Practicing Transparent ProcurementS3.1.1-S3.1.4Creating a Harmonious Workplace

S4.1.1-S4.1.12, S4.2.1-S4.2.6,S4.3.1-S4.3.6

S1.1-S1.3, S3.1-S3.2Harmony and Beauty in theCommunity

S1.2.1-S1.2.7, S1.1.1-S1.1.5S4.2-S4.4

Report Catalog

Corresponding Indicatorsof China Corporate SocialResponsibility ReportingGuidelines (CASS-ESG 6.0)

Reference IndicatorSystem for ESG SpecialReporting of ListedCompanies Controlled byCentral EnterprisesAdhere to Integrity andClear Regulations, andLay a Solid Foundationfor Sound Operation.

Improve Corporate GovernanceG1.3.1-G1.3.2G3.1-G3.3Honest and Compliant BusinessOperations

S3.2.1-S3.2.2

G2.1-G2.2, G4.1-G4.2,G5.1-G5.2Adhere to the Party's Leadership-Promote Responsible OperationG2.1.1-G2.1.8, G2.2.1-G2.2.3S4.1Adhere to Business EthicsG2.1.8-G2.2.3Outlook for 2026A1Key Performance Table

A2, E1.1.7-E1.1.8, E2.1.2.E2.2.1-E2.2.4, E2.2.8-E2.2.9,E3.1.1, E3.2.1-E3.2.2, S4.1.3-S4.1.7,S4.3.3-S4.3.6, G2.1.5-G2.1.7

E1.1.1,E1.1.2,E1.2.2,E1.3,E1.4.1,E2.1.3,E2.1.5,E2.2.1,E2.

2.2,E2.3,E3.1.3,E3 .1.4,E3.1.

6,S1.1.2,S1.2.2,S1.2.4,S1.3.3,S1.3.4,S1.5.3,S1.5.1,S2.1.2,S3.1.1, S4.1,G3.2.1Index of IndicatorsA3FeedbackA6About this ReportP1.1-1.2

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.About this report?

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2025 SUSTAINABILITY AND ESG REPORT

Feedback

Dear reader,Thank you very much for taking the time to read this report. In order to gain a deeper understanding of your expectations and needsregarding the sustainable development and ESG e?orts of CR Sanjiu, and to continuously improve the quality of our work, we are conductingthis survey. We sincerely invite you to participate. Your opinions and insights are vital to us. We deeply appreciate your valuable feedback andsuggestions!

1. Your identity in relation to CR Sanjiu:

?□ Employee???□ Consumer/Patient??□ Partner???□ Investor???□ Regulator?□ Other Government Department????? □ Media????□ Other

2. Are you satis?ed with the overall content of this year's report?

?□ Yes??????□ No?????????□ Average

3. Has the information you are concerned with been covered in this year's report?

?□ Yes??????□ No?????????□ Average

4. What are your expectations or suggestions for next year's sustainable development report?

?□ Innovative report themes □ Innovative structure and approach?□ Broader application of sustainability standards???□ Other (Please specify)

5. Do you have any suggestions or expectations for our sustainable development work?

?□ Develop a long-term sustainability plan???□ Strengthen the management of sustainability initiatives?□ Broaden external communication e?orts??□ Plan new impactful public welfare projects?□ Include sustainability-related performance in management assessments???□ Other (Please specify)

CR Sanjiu Medical &Pharmaceutical Co., Ltd.Address: No. 1, Guanqing Road, Guanhu Street, Guanlan High-tech Zone, Longhua District, Shenzhen,Postcode: 518110Fax: (86) 755-83350888Telephone: (86) 755-83360999Email: 000999@999.com.cnWebsite: https://www.999.com.cn

You can communicate your feedback through the following channels.

This report is the 17th annual sustainability and ESG report published by China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.since 2009. The report, themed "Striving Forward Now, Healthy Future", re?ects the Company's e?orts and achievements in economic,social, environmental, and governance aspects in 2025, responding to the expectations and concerns of stakeholders.

About this report

Time period

Report commitment

Scope of the report

Terminology

Data explanation

This report covers the period from January 1, 2025 to December31, 2025, consistent with the annual report. Some content hasbeen extended for better comparability and forward-lookinginsights.

CR Sanjiu guarantees that the contents of this report are free fromany false records, misleading statements, or material omissions,and takes full responsibility for the authenticity, accuracy, andcompleteness of the content.

This report covers China Resources Sanjiu Medical & PharmaceuticalCo., Ltd. and its subsidiaries and affiliates. The subject disclosed inthis report is consistent with the annual report.

For ease of expression and readability, "China Resources SanjiuMedical & Pharmaceutical Co., Ltd." is referred to as "CR Sanjiu," "theCompany," or "we" in this report.

Reference standards

Preparation process

How to access

This report was prepared with reference to theGuidelines forSocial Responsibility of Central Enterprises issued by the State-owned Assets Supervision and Administration Commission(SASAC), theShenzhen Stock Exchange Self-Regulatory GuidelinesNo. 3 – Preparation of Sustainable Development Reports for ListedCompanies, Shenzhen Stock Exchange Self-Regulatory GuidelinesNo. 17 – Sustainable Development Reports for Listed Companies(Trial Implementation), and with reference to theGlobal ReportingInitiative (GRI) Standards, and theCASS-ESG 6.0 PharmaceuticalManufacturing Guidelinesby the Chinese Academy of SocialSciences. It also references theESG Reporting Indicator System forCentral State-Owned Enterprises' Listed Companies by SASAC.

The preparation process for this report follows the requirements ofthe above standards, including industry benchmarking, surveys,information collection, review, report writing, management review,report rating, and report assurance to ensure completeness,materiality, authenticity, and balance.

This report is available in both electronic and paper formats. Youcan download and view it from the Social Responsibility section ofthe CR Sanjiu web operational site at https://www.999.com.cn.

All data in this report comes from internal documents andinformation systems of China Resources Sanjiu Pharmaceutical Co.,Ltd.

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.