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MarketScreener Homepage  >  Equities  >  SHENZHEN STOCK EXCHANGE  >  Hangzhou Tigermed Consulting Co.,Ltd    300347   CNE100001KV8

HANGZHOU TIGERMED CONSULTING CO.,LTD

(300347)
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Hangzhou Tigermed Consulting : 2019 Sustainability Report

08/10/2020 | 05:24am EST

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TIGERMED

Sustainability Report

CONTENTS

LEADING CHANGE

While the world is facing unprecedented changes in decades, changing to respond to change and welcoming change over responding. Tigermed proactively adapts to changes in regulations, customer needs and social patterns, and keeps innovating its own mindsets, technologies and operational models to lead industry development.

Amidst complex changes, keeping a clear goal helps one stay on course. Tigermed stays true to the mission of "serving healthcare partners through innovation, advancing human health through excellence", and builds itself on the core values - honest & reliable, open & inclusive, collaborative & accountable, professional & innovative. Tigermed positions itself as a compliant business and works hand in hand with stakeholders towards sustainability.

CONTENTS

  1. LEADER'S SPEECH
  1. ABOUT TIGERMED
  1. CORPORATE GOVERNANCE

16 FEATURE: COUNTERMARCHING, IN THE FIGHT AGAINST COVID-19

DRIVING INNOVATION

OF CLINICAL RESEARCH

20

POWERING GLOBAL MEDICAL INNOVATION

22

BECOMING A TRUSTED CLINICAL RESEARCH PARTNER

25

UPHOLDING QUALITY AS THE CORE OF THE BUSINESS

28

PROMOTING INDUSTRY

DEVELOPMENT

30

ACCELERATING THE DEVELOPMENT OF HEALTH INDUSTRY LOCALLY

32

SHARING IDEAS AND RESOURCES WITH INDUSTRY PEERS

34

BUILDING A STRONG TALENT POOL FOR HIGH-QUALITY INDUSTRY

36

DEVELOPMENT

GUIDING OUR PEOPLE IN THE

QUEST FOR SUCCESS

38

ENSURING EMPLOYEES' BASIC RIGHTS AND INTERESTS

40

ACTIVAING TALENT AND UNLEASHING POTENTIAL

42

FOSTERING AN ENGAGING TIGERMED CULTURE

44

CONTRIBUTING TO A

SHARED FUTURE

46

GREEN TIGERMED: STRENGTHENING

48

ENVIRONMENTAL MANAGEMENT

CARING TIGERMED: IMPROVING HEALTH

50

AWARENESS AT COMMUNITY LEVEL

  1. KEY PERFORMANCE
  1. OUTLOOK

56 HONG KONG STOCK EXCHANGE ESG (ENVIRONMENTAL, SOCIAL AND GOVERNANCE) REPORTING GUIDE INDEX

58 GRI (GLOBAL REPORTING INITIATIVE) INDEX

60 ABOUT THIS REPORT

02

01

TIGERMED

Sustainability Report

LEADER'S SPEECH

TO LEAD

TO INNOVATE

  • We have deeply felt the profound changes of the era, thus upgrading ourselves proactively to adapt to changes in regulations, customer needs, and social and cultural patterns. We keep innovating our own mindsets, technologies, service and operational models to respond to changes in the pharmaceutical industry and the rapid growth of the Company. "

In the past 2019, Tigermed worked towards accelerating the launch of more innovative drugs for the benefit of patients. We yielded fruitful results and ushered in a number of important milestones.

During the year, the continued reform of China's drug and medical device reviewing and approval brought us new opportunities and challenges. We concentrated our efforts on innovative drugs and medical devices, and put more health products to the market to drive the development of innovative drugs in China. We were behind a number of innovative products, such as BeiGene's Zanubrutinib, the first FDA- approved anti-cancer drug developed in China, the first China- made biosimilar Rituximab Injection developed by Henlius, and the first China-made artificial heart "Yongrenxin". As of the first quarter of 2020, we had helped cumulatively 36 Chinese Class I innovative drugs go on the market, rendering patients more options.

In 2019, our projects passed numerous inspections with outstanding performance, and won wide recognition from customers. We took pride in the trophies and letters of thanks handed to us: Hua Medicine (Shanghai) granted us the Handin- Hand Progress Award; Hutchison MediPharma (Shanghai) bestowed Hangzhou Simo the Excellent Team Award; and 3DMed named Fantastic Bioimaging the Best Partner. We are chosen by more customers , and every year we remained

Dr. Ye Xiaoping

Co-founder and Chairman

100% of top ten customers. Such a success hinged upon the pragmatic cooperation of our clinical research team. Through industrial chain extension and regional service capacity building, we provided customers with all-round solutions, timely response and effective countermeasures to address their demands.

This year, we continued to expand our business landscape in the Asia Pacific Region, Europe and the United States, and further internationalized ourselves. We set up a joint venture with the Japanese company Accerise Inc. to provide international multi-center clinical trial services in Japan. Our first international multi-center clinical trial in Singapore enrolled the first subject. We acquired 100% stake in Tigermed-BDM Inc. in U.S. and integrated its data statistics and management resources into ours to adapt to global competition. By the end of the reporting period, we have set up 17 overseas operation sites across 12 countries and regions in the Asia-Pacific region, North America and Europe to fuel drug clinical trials by leveraging the wide-coverage service network. 2019 was a year of milestones. We released the first social responsibility report to demonstrate our responsibilities, commitments and practices. Our subsidiary, Frontage Holdings (1521 HK), launched a listing on the Hong Kong Stock Exchange to further globalize itself as a pharmaceutical CRO. Hangzhou Combak Hospital Co., Ltd. passed the GCP accreditation and obtained the Qualification Certificate of Drug Clinical Trial Institution. "Small Shield" APP developed by Hangzhou SlanHealth Co., Ltd., our investee, was successfully licensed as a medical device - an Auxiliary Management Software for Prevention Mother-to-Child Transmission of Viral Hepatitis B VHB by Zhejiang Medical Products Administration.

Product quality is the lifeline of Tigermed, and the foundation of all our accomplishments. Not long after our inception, we developed a quality management system in line with ICH-GCP Guideline to ensure project quality. We have fostered a quality culture to raise employees' quality awareness and gradually influence their work pattern and mindset. In the meantime, we incorporate the same quality standards into the supply chain to tighten quality management with suppliers. Our priority on quality wins us lasting trust from and cooperation with more customers.

Dedication of every employee has led to Tigermed's sustained and rapid growth. As talent is the most important asset of a CRO, we have developed management systems for talent selection, employment, training and retention, and customized management and training systems for professional and managerial personnel respectively. We are proud that our mid- level and above managers benefit a lot from internal training. Many employees have joined us right after graduation, grown

fast in work practice and are entrusted with key positions. Many senior managers are veteran employees who have worked with us for over ten years. We believe the development of the Company and the growth of employees go hand in hand.

We have witnessed the development of innovative drugs in China over the past 10 years. Drug innovation in China evolved from one man's fight to a battle of thousands of innovators, and in the meantime, the regulatory system keeps innovating in alignment with global practices. We have deeply felt the profound changes of the era, thus upgrading ourselves proactively to adapt to changes in regulations, customer needs, and social and cultural patterns. We keep innovating our own mindsets, technologies, service and operational models to respond to changes in the pharmaceutical industry and the rapid growth of the Company. Our robust growth is predicated on the commitment to corporate mission and values, and on compliance management, which underpin our ability to lead the change.

Looking forward to 2020, Tigermed will ride the trend of worldwide innovation and waves of continued reform in the Chinese pharmaceutical industry, and continue to fulfill its mission. We will adhere to the strategy of "Global Excellence, China Expertise", and align with high quality standards in the R&D of COVID-19 drugs. We will fuel the clinical development of more new drugs through efficient operation, and contribute to the health of humankind.

Ms. Cao Xiaochun

Co-founder and General Manager

02

03

TIGERMED

Sustainability Report

Solutions

ABOUT TIGERMED

Regulatory Affairs

Clinical Operations

Biometrics

Integrated Technology Services

ABOUT

TIGERMED

Hangzhou Tigermed Consulting Co., Ltd. is committed to supporting clients in their clinical development in the best possible way. As the leading clinical Contract Research Organization (CRO) in China, Tigermed is dedicated to provide services for new drug research and development and other supporting services to global and Chinese pharmaceutical and biotechnology companies. Since our inception in 2004, Tigermed has always embraced new technologies and partnerships to accelerate product development and generate the clinical evidence that our clients require to demonstrate real-world value.

The Company was listed on the Growth Enterprise Market (GEM) of the Shenzhen Stock Exchange (stock code: 300347. SZ) on August 17, 2012, and on the main board of the Hong Kong Stock Exchange on August 7, 2020 (stock code: 3347.HK).

Medical Devices / IVD

Post-Marketing / Real World

Evidence / Vaccine

Business Overview

Tigermed builds an integrated and all-round platform that covers the whole industrial chain of clinical research, and spans across the overall development cycle of new drugs and medical devices. In the pre-clinical stage, we offer bioanalysis, pharmaceutical research (including Chemistry, Manufacturing and Control), bio-equivalency (BE) trials, and PK/PD services. For Phase I to IV trials, our service covers project management and implementation, medical writing (such as clinical protocol and report), clinical monitoring, data management and statistical analysis, central imaging, pharmacovigilance, and site management organization (SMO). In addition, we provide regulatory submission & approval service, medical translation, Good Manufacturing Practice (GMP) qualification, training and auditing, and other integrated clinical services for medical devices from pre-clinical to post-launch stage.

04

05

TIGERMED

Sustainability Report

Mission

Serve healthcare

through innovation, Advance human health through excellence Vision

To be the recognized as the leading CRO

ABOUT TIGERMED

Honors

Tigermed

Values

& Reliable, Open & Inclusive, Collaborative & Accountable, Professional &

Brand slogan

Global Excellence, China Expertise

Trusted Clinical Research Organization partner

The 12th China Pharmaceutical Strategy Conference cosponsored by China National Pharmaceutical Industry Information Center and Taizhou Medical New & High-tech Industrial Development Zone's Management Committee

Innovative Chinese CRO of 2019

The 11th China Healthcare Summit of Entrepreneurs, Scientists, and Investors and Pharmaceutical Achievement Exhibition of the 70th Anniversary of the Founding of the P.R.C. held by China Pharmaceutical Enterprises Association and China Medicinal Biotech Association

"Top 10 Chinese Listed Pharmaceutical

Patient

Centric

By collaborating closely with regulatory agencies, medical research institutes, hospitals, and our global customers, we provide high-quality medical solutions for unmet patient needs.

Operational

Quality

Continuous

Excellence

Priority

innovation

We are committed to

We strictly abide by the

Looking forward

building a stable and

ethics and regulations

to the future, we

high-quality team

in clinical research

challenge ourselves

with a strong sense

and are committed

to explore innovative

of responsibility. We

to quality. To this

solutions internally and

provide professional

purpose, we provide

externally. Through

services and execute

standardized, efficient,

continuous optimization

efficiently through rapid

and proven clinical trial

and breakthroughs,

response and internal

services and we assure

we enable our clients

coordination.

product safety with a

to market their

scientific, rigorous, and

products successfully

"2020 China Enterprise Credit Development Forum and the 11th Integrity Public Welfare Ceremony" held by China Enterprise Reform and Development Society Association and China Cooperative Trade Enterprises Association

2019 Top 500 Trustworthy Listed Companies in China

Companies in Investment Value of 2019";

and "Outstanding Enterprises of the

Pharmaceutical Industry in Celebration of

the 70th Anniversary of the Founding of the

P.R.C."

professional attitude.

worldwide and to

ensure the sustainable

development of our

company.

1898

Number of total customers (by the end of the reporting

Hua Medicine (Shanghai) Ltd.

Hangzhou Municipal

Bureau of Commerce

Hand-in-Hand Progress

Model Hangzhou

Award

Company in

Zhejiang Association for Corporate Social Responsibility

2019 Model Company in Corporate Social Responsibility

Headquartered in Hangzhou, Tigermed runs 123 service outlets in China's mainland, Hong Kong and Taiwan.To drive the internationalization of pharmaceutical R&D, the Company has also opened overseas subsidiaries and offices in 10 countries and regions, including Korea, Japan, Malaysia, the United States, Romania and Switzerland.

period)

130+

Service and Trade

in Zhejiang Province (for Practice Dimension)

SWITZERLAND

CANADA

ROMANIA

JAPAN

USA

INDIA

KOREA

MALAYSIA

SINGAPORE

AUSTRALIA

Number of global branches and service outlets (as of Q1 2020)

36

Number of Class I Chinese innovative drugs successfully launched (as of Q1 2020)

According to the report of Frost & Sullivan,Tigermed has become the largest clinical CRO in China and among top ten in the world in terms of the operating revenue of 2019.

Hangzhou Simo

Hutchison MediPharma (Shanghai) Ltd.

Excellent Team Award

Beijing Cancer Hospital

2019 Beijing Cancer Hospital Best SMO Award for Clinical Trials

Fantastic Bioimaging

The District Economic Work Conference and Mobilization Meeting for Building the Strongest Digital Economy Zone held by Hangzhou High-Tech Zone (Binjiang)

Excellent Young Eagle Enterprise

3DMed

Best Partner Award

Frontage Laboratories

Life Science Leader magazine 2019 CRO Leadership Awards

06

07

Composition of the Fourth Board of Supervisors by Age:

TIGERMED

Sustainability Report

CORPORATE GOVERNANCE

CORPORATE

GOVERNANCE

Overview

In accordance with the law, we have established the general meeting of shareholders, the Board of Directors and the Board of Supervisors, launched a system of independent directors, and set up special committees under the Board. We have clearly defined the roles, powers, procedures and obligations of the general meeting, the Board of Directors, the Board of Supervisors and the management in decision-making, implementation and supervision. As a result, we have leveraged well according to the duties of authorities, decision-makers, business units, and supervisors, creating a governance mechanism of checks and balances. We act in strict accordance with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China and regulations, as well as the internal control system including the Articles of Association,

6

Number of general meetings of shareholders

15

Number of meetings of the Board of Directors

We hold general meetings of shareholders as required, and facilitate shareholders'

participation so that they can fully exercise their rights. Certain proceedings are

General Meetingof

followed for the deliberation of each proposal to ensure all shareholders are

Shareholders

treated equally. Shareholders' inquiries will be answered, and their suggestions and

opinions be listened to. The discourse right of small and medium shareholders will

be ensured.

We comprehensively consider age, education

Composition of the Fourth

background, professional experience, skills,

Board of Directors by Age:

Board of

and industry experience of directors to ensure

diversification of the Board. In April 2020, the

1

5

Directors

Company held a re-election for the fourth Board

Membership which comprises three non-independent

Aged 40-49

Aged 50-59

directors and three independent directors. Among

them, 50% i.e.,three are female.

the Rules of Procedure of General Meeting, and the Procedural Rules of the Board of Directors to continuously improve the corporate governance system, and lay a solid foundation for regulated operations and sustainable development.

During the reporting period, as our international development strategy was further implemented, and the industrial chain continued to extend, we launched organizational reforms and built a "headquarters + business units" structure to empower the headquarters in creating value. We have established six business units and functional headquarters to better accommodate development needs.

8

Number of meetings of the Board of Supervisors

Board of

Supervisors

The Fourth Board of Supervisors comprises two shareholder supervisors and one employee supervisor, two of which are male and one is female. The shareholder and employee supervisors are respectively elected by the general meeting of shareholders and the Staff Representative Meeting. The term of office of supervisors is 3 years.

1

2

Aged 30-39

Aged 50-59

President Office of Administration

Finance Department

Audit Committee

Human Resources Department

Remuneration and

Evaluation Committee

Quality Assurance Department

Internal Audit

Department

Strategic Development

Data Resources and Compliance Department

Committee

Legal Affairs

Marketing and Business Development Department

Department

Nomination Committee

Executive Vice President

Policy and Regulatory Affairs Department

Board of

Directors

President / CEO

Government Affairs Department

Administration Department

Chief Operating Officer

Board Secretary

Procurement Department

Chief Financial Officer

Tigermed Investment

IT Department

Innovation Center

Preclinical and Generic Drug

Chief Science Officer

Business Department

Innovative Drugs Business Department

Medical Devices Business Department

Biometrics Business Department

SMO Business Department

New Industry Development Department

In accordance with the requirements of the relevant laws, regulations and the Management System for Investor Relations, the Company designated the secretary to the Board as the person-in-charge for the management of investor relations, who

Investor Relationshipis responsible for coordinating investor relations, receiving visiting Shareholders, answering enquires from investors and providing them with information already

Management disclosed by the Company. The Company responds to enquires from investors by means of phone calls, e-mails, interactive investor relations platform, investor relations section in the corporate website, investor reception day, etc, which enhances the exchange of information and promotes positive interactions with investors.

The Company discloses its information in a true, accurate, complete and timely

manner in strict compliance with the relevant laws and regulations and the

Information

Management System for Information Disclosure. During the reporting period, the

Disclosure

via the media outlets designated by the CSRC,namely The Securities Times and the

Company issued a total of 4 periodic reports and 212 temporary announcements

CNINFO website (www.cninfo.com.cn).

In 2019 2.78

269.9168

Dividend per 10 shares

Total cash dividend

(tax included) RMB

(including share repurchase in 2019) million RMB

08

09

TIGERMED

Sustainability Report

Raising Employees' Anti- corruption Awareness

Anti-corruption has been incorporated into our routine training. We cover all employees with anti-corruption training and assessment to raise their compliance awareness. During the reporting period, we provided special anti-corruption training to the management, including members of the Board, to enhance compliance awareness at the leadership level in clinical research and business operation.

Protecting the Rights and

Interests of Whistleblowers

Protection of privacy: The personal information and tips provided by the whistleblowers are kept strictly confidential. Other units, departments and individuals have no right to access the information unless authorized.

CORPORATE GOVERNANCE

Launching Internal Audits

We have established an internal supervision and management system composed of both business units and functional departments, such as risk supervision, compliance management, and audit departments. A multilevel supervision mechanism was also put in place to cover the headquarters, subsidiaries & branches and business units, to supervise and inspect the Company's financial status, operation & management, salary distribution, and the performance of directors and senior executives on either a regular or irregular basis. The audit department should inspect and evaluate the audit supervision of the headquarters and holding and joint-stock companies, and submit internal audit reports to the Board of Directors.

Strengthening Supply Chain

Compliance Management

We integrate compliance requirements for suppliers

Compliance Management

Tigermed's steady development cannot be separated from its culture of compliance, integrity and honesty. We strictly abide by national laws and regulations, international conventions and business ethics, and constantly improve the internal supervision mechanism and risk control system. We boost integrity management to adapt to increasingly stringent supervision and regulations, and live up to compliance requirements for internationalization.

100%

Coverage of staff anti-corruption training

In 2019

Guard against retaliation: We have set up a mechanism to guard against retaliation against informants. When the reports come from the inside, the Company will follow up to protect whistleblowers from workplace exclusion and retaliation. When the reports come from suppliers and partners, the Company will take measures to protect their rights and interests. Once it is confirmed that the informant has been retaliated, the Company will strictly deal with the personnel involved.

into our anti-bribery and anti-corruption policies. Cooperation is grounded on obser vance of the aforementioned requirements. Suppliers should sign a third-partyanti-bribery and anti-corruption statement in the bidding process, which specifies that suppliers shall not offer economic incentives in any form to Tigermed employees. With these measures, we swear to strengthen compliance management from the very start of the supply chain.

Anti-corruption

We conduct business with high ethical standards and strictly implement Policies of Anti-briberyand Anti-corruptionof Tigermed and Policies of Conflict of Interest. During the reporting period, we issued the Notice on Strengthening Compliance Management of Tigermed, and appointed compliance and data security officers to strengthen compliance management across the Company. As our presence in the global marketplace increases, we employ local legal consultants and develop standard operating procedures (SOP) to align operations to local policies and regulations. For example, we come up with Tigermed Physician Payments Sunshine Act referring to relevant regulations in the United States to meet compliance requirements.

According to the General Data Protection Regulation (GDPR) of the European Union, we have improved SOPs and management systems regarding legal affairs, IT and other departments involving personal information of project personnel. We invited European lawyers to carry out assessment and certification, and organized training sessions for all employees to enhance the awareness of personal information protection and compliance management.

The column of "Compliance Concern" was opened up on the home page of our official website.

Official website

Informants shall fill in the form according to the guidance and may choose to report either

anonymously or in real name.

Tip-off hotline for noncompliant conducts: 400-687-272-02

Hotline

For anti-corruption and compliance: compliance.officer@tigermedgrp.com;

Email addresses

Clearing

For data security: DPO@tigermedgrp.com

Reporting

The tips will go straight to our compliance officer / data protection officer, who will set up a

Channels

working group for investigation, and deal with the reported matters according to investigation

results. Since the establishment of the reporting channels, the Company has not received any

reports on compliance violation.

10

11

TIGERMED

Sustainability Report

Risk management and control

We have built a corporate governance structure consisting of the general meeting of shareholders, the Board of Directors, the Board of Supervisors and the management, and a risk control framework of the internal audit department, audit committee and business QA with a clear division of duties, either of risk assessment or of risk management strategy. We have also set up risk assessment and control systems to standardize the management of business, finance, legal affairs, internal audit and information to improve security and guarantee sound and sustainable development.

IPR protection

We have put in place an intellectual property right management system. We manage intangible assets carefully, and strictly abide by provisions of our asset management system, scientific research management system, and personnel management system. And we actively reach out to the National Copyright Administration to apply for and renew software copyrights and utility

As of March 31, 2020

19

Number of registered patents

377

Number of software copyrights

CORPORATE GOVERNANCE

CSR Management

We work tirelessly to integrate social responsibility into corporate governance and operation, and push for sustainability management and practices. We also continuously deepen the harmonious relationship with stakeholders to safeguard health for mankind, fulfill social responsibility, and achieve sustainable development.

Leading organization and working mechanism

We have set up a well-coordinated organizational structure to promote sustainability management. As a decision-maker, the Board of Directors is charged with the top-level design of sustainable development affairs. The Social Responsibility Department, as a coordinator and supervisor, is responsible for promoting and monitoring implementation progress. The subordinate business units under the guidance of the headquarters perform CSR-related tasks as designated.

model patents.

Clinical trial ethics

We strictly follow the Declaration of Helsinki and include it in staff training in the hope of encouraging more employees to understand, support and participate in clinical research, and of accelerating the R&D of new drugs to contribute to public health.

100%

Coverage of ethics training for clinical trial practitioners

Decision

Board of Directors

Maker

Coordinator

Social Responsibility

Department

Formulate sustainable development strategies and policies Supervise and review achievements in sustainable development

Implement resolutions of the Board of Directors on sustainable development

Communicate on and coordinate sustainable development issues

Prepare sustainability reports

Manage ESG information on a daily basis

Executives

Subordinate Business

Fulfill ESG management objectives

Units

Provide timely feedback

Tigermed's Social Responsibility Management Mechanism

Goals and objectives

We continue to consolidate the foundation of social responsibility management. We focus on CSR management, responsible practices and sustainability branding to enhance the capacity for sustainable development and build competitiveness.

CSR management

Improve the sustainable development mechanism and put forth policies and systems to promote normalized CSR management

CSR practices

Fulfill social responsibility and summarize model cases in line with our sustainable development strategy and key sustainability concerns of the industry

Sustainability branding

Through releasing social responsibility reports (sustainability reports), we spread our sustainable development philosophy and gradually create a brand image as a sustainable enterprise.

12

13

TIGERMED

Sustainability Report

Sustainable relationship with stakeholders

We conscientiously identify and manage the impacts of our decisions and operations. We prioritize material topics closely related to our own development, and regard the government, shareholders, customers, employees, partners, environment, and community as important players propelling our continued development. We are committed to answering for each and every stakeholder.

CORPORATE GOVERNANCE

Material Topic Management

We refer to ISO 26000 Guidance on Social Responsibility, GRI Sustainability Reporting Standards issued by the Global Sustainability Standards Board, and Environmental, Social and Governance Reporting Guidelines of the Hong Kong Stock Exchange, to benchmark ourselves against outstanding practices in and outside China. Then, we proceed from the realities of the industry and our own conditions to identify material topics for us and our stakeholders.

To fully grasp the expectations and needs of stakeholders, we conducted research and survey (with 454 valid questionnaires collected), and analyzed material topics from two dimensions, namely "relevance to stakeholders" and "relevance to Tigermed's sustainable development" for accurate results.

We maintain active communication with all stakeholders. Through

Communication diversified mechanisms and channels, we listen to the voices and with Stakeholders concerns of all parties for mutual benefit and sustainable social

development.

Stakeholders

Government and regulators

Demands

Tax payment according to law

Compliance operation Fair operation

Communication channels

Inspection visits by leaders and competent departments Regular work summary and official document exchanges

Daily policy implementation

High

Quality of products and services

Protecting the rights and interests of subjects

Compliant operations

Raising customers' satisfaction

Protecting the rights and interests of employees

Be

Information transparency

Tax payment according to law

Employee training and development

Risk management

Employee welfare and care

toImportant

Work-life balance

Business

Occupational health and safety

R&D ethics

performance

Cultivating talentsFair operation

Responsible supply chain

R&D innovation

Raising environment protection awareness

Promoting industrial exchanges

stakeholders

Waste management

Resource conservation

Environment management

Industry-university-research integration

Participating in industrial investment

Coping with climate change

Organizing public welfare activities

Commitment to community health

low

low

Be Important to Tigermed's sustainable development

High

Tigermed's Matrix of Material Topics

Shareholders and investors

Customers, including sponsors and hospitals

Partners

Employees

Communities and the general public

Creating jobs

Economic performance

Information transparency

Product and service quality

R&D ethics compliance

Reduce R&D costs

Improve R&D efficiency

Fair partnership

Responsible procurement

Protection of basic rights and interests

Personal growth and career development Work-life balance

Promoting community health

The general meeting of shareholders Information disclosure through regular reports and official website

Investors' hotline

Online platform irm.cninfo.com.cn of Shenzhen Stock Exchange

Customer visits

Daily communication by email and telephone

Customer satisfaction surve

Cooperation agreement

Industrial activities, such as exhibitions, and seminars

Internal emails

Internal publications

Channels of soliciting demands

Health knowledge seminars Public consultation and complaints

14

15

Sustainability Report

FEATURE: COUNTERMARCHING, IN THE FIGHT AGAINST COVID-19

TIGERMED

Rendering Immediate Support to Countermarchers on the Front Line

"I'm a mom.I'm racing for life."

--Li Mei, after learning that the potential drug was about to go through Phase III clinical trial, picked up the phone and

"This Spring Festival is meaningful.I'm heading out!"

--Guo Tingting, project manager, after hearing the news, immediately informed her family and rushed to the hospital for help.

FEATURE

Countermarching,

in the Fight Against

COVID-19

If one compares the fight against COVID-19 to a war without gunfire and smoke;

Then those people who risk their lives to grapple with the lethal virus are not born heroes sent from the heaven.

They are instead, ordinary people sacrificing their lives for the greater good.

Tigermed chose to countermarch in the looming shadow of the pandemic.

As the Spring Festival of the year of 2020 approached, COVID-19 spread rapidly from Wuhan to the whole China. The pharmaceutical industry was racing against the clock to find potential effective antiviral drugs and rush to put them in clinical trials.

Among them, one drug showed sound antiviral activity against SARS coronavirus and MERS coronavirus in early cell and animal experiments, and was regarded as a potential therapeutic drug in the early stage of the outbreak. It was of great significance to find out its clinical effect and to verify its efficacy and safety.

At this critical moment, employees of Tigermed were informed that the China-Japan Friendship Hospital had already kicked off the study in Jinyintan Hospital of Wuhan. They volunteered to step into the epicenter and threw themselves into the research. In addition to the clinical studies (for drugs, diagnostic reagents, and vaccines) at the onset of the pandemic, Tigermed donated money and supplies to the epicenter through specialized agencies. In the case of shortage of materials, the Company leveraged its own resources in the medical industry chain to purchase protective supplies for front-line medical personnel.

volunteered to help with the researcher just ten days after "Darling, wait for me back." giving birth to her child.

"Please, drive me there ASAP!"

--Cao Lianjun, project manager, left

"Count my dad in."

his months-old child and hurried off to

the hospital to help researchers expedite

--Wan Yan, CRA based in Wuhan,

trials.

--Gong Yunyan, CRA based in Beijing,

recommended her father as a

volunteer to support transportation

asked her sister to drive her to commute

work during the Wuhan's lockdown.

between the hospital and printing stores.

"My baby will take pride in me."

With their efforts, our clinical trials got

approved.

An Mingru, an expectant mother at 36

weeks of pregnancy, still kept on working.

Issued by the Party Committee of Binjiang District of

Issued by Zhejiang Association for Corporate Social

Hangzhou City in recognition of the outstanding contribution

Responsibility in recognition of Tigermed's impressive sense of

of Tigermed during the fight against the pandemic.

social responsibility and patriotism reflected in the donations.

"Binjiang's Power in Anti-COVID-19 Fight"

2020 Outstanding Contribution Award of Zhejiang

Award

Enterprises in Anti-COVID-19 Fight

Letter of Thanks to the Family Members of Tigermed Staff

In the battle against COVID-19, we deeply appreciate the efforts of your families. It's an honor of Tigermed to have such a group of excellent employees. We believe they will be able to complete the task smoothly and look forward to their safe return.

Dr. Ye Xiaoping, Chairman of Tigermed

On January 25, 2020, Dr. Ye Xiaoping, Chairman of Tigermed, and Ms. Cao Xiaochun, General Manager of Tigermed, along with all Tigermed's medical staff, donated RMB 2.08 million to support the fight against COVID-19 in Wuhan.

Ms. Cao Xiaochun, General Manager of Tigermed

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Sustainability Report

FEATURE: COUNTERMARCHING, IN THE FIGHT AGAINST COVID-19

TIGERMED

Delivering High-quality Service as Always

At 10:00 on January 23, 2020, Wuhan was locked down, and the fast-running city was put on hold.

However, our responsibility towards the sponsors and patients never ends.

After informed of the outbreak before the Spring Festival, Tigermed immediately established an emergency response team for epidemic prevention and control. We launched the business continuity plan (BCP), and made detailed arrangements for research projects with sponsors to minimize the impact of the pandemic.

After learning Wuhan's lockdown, our project team members in Wuhan took immediate actions. They entered the research center after obtaining permission to transfer project data urgently and keep the test drugs properly.

To minimize the impact of the pandemic on clinical trials and ensure the health and safety of subjects, CRAs and project managers, we introduced various solutions, such as online follow-up, online monitoring, and mailing samples and drugs,

The Wuhan team did a marvelous job for the recent projects. Hope they and their families are all fine.

  • Tigermed delivered products on time despite the pandemic, and was highly praised by our American client.

Safeguarding Employees' Health Wholeheartedly

"Saving others is saving oneself."

Considering the pandemic and the unique nature of clinical trials, we pay high attention to the health and safety of employees.

We established the emergency response team, worked online, supported functional teams, provided one-on-one services, initiated employee assistance program (EAP), popularized protection knowledge, and sent our regards via the Labor Union…

Our care for employees permeate the slightest matters.

The pandemic tests the resilience of all enterprises. Despite the year- on-year decrease in business volume, we insist on no salary cuts and no layoffs to reassure our staff, and do our best to maintain social stability.

As of the date of this report, there was not a single case of infection or suspected infection in Tigermed.

Tigermed Timeline of Fight Against COVID-19

As a company specialized in medical and health services, we stay true to the mission of "serving healthcare partners through innovation, advancing human health through excellence". There are still cascades of difficulties in beating COVID-19. Therefore, we are pressing ahead with clinical trials of therapeutic drugs worldwide to secure the final victory of the battle, and contribute to public health.

to ensure uninterrupted clinical operations and medication supply to the subjects.

Issued a warning

Transferred clinical

In response to the government's appeal,

we extended the holiday, postponed work

company-wide to

materials and drugs

resumption and rolled out emergency response

stay vigilant about

during Wuhan's

plans for business operation. The functional

the epidemic.

lockdown.

departments introduced home office measures.

January 20

January 23

February 2

January 21

January 25

February 3

Set up an emergency

Donated RMB 2.08

Tigermed staff arrived at Jinyintan

response team headed

million to the Red

Hospital and officially joined the

by the President.

Cross Society of China clinical trials.

Zhejiang Branch.

Project members for COVID-19

Issued Tigermed's

Tigermed and

Requirements on COVID-19

potential drug clinical trial

Prevention and Control,

Hangzhou Simo were

Completed the

in Wuhan returned back to

specifying protection

among the first batch of

Hangzhou and Changsha and

measures after business

enterprises approved to

first subject

went on to a 14-day quarantine.

resumption.

resume work.

administration.

March 28

February 12

February 10

February 6

April 15

March 20

February11

February 7

All project members

Successfully

Donated PPEs such as

Established Tigermed COVID-19

for COVID-19 potential

launched Tigermed

protective gowns, face

Prevention and Control Team

drug clinical trial in

Annual Conference

masks and gloves.

specifically for clinical trials project

Wuhan returned home.

online.

members in Wuhan.

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Sustainability Report

POWERING

GLOBAL MEDICAL

INNOVATION

BECOMING A

TRUSTED CLINICAL

RESEARCH PARTNER

UPHOLDING QUALITY

AS THE CORE OF THE

BUSINESS

DRIVING INNOVATION OF CLINICAL RESEARCH

Our Actions:

Provide clinical trial services and bring new and effective drugs to patients

Promote innovation and marketization of pharmaceutical products

Expand clinical research business in Asia Pacific, North America and Europe

Protect the basic rights and interests of subjects

Strengthen quality management and integrate quality control into the whole supply chain

Innovation is in the genes of Tigermed. The Company takes innovation as the key to harness changes in science and technology, in domestic and foreign pharmaceutical policies, and in customer demand. We embrace innovation in technology, management and service to speed up corporate development, facilitate global pharmaceutical R&D, and safeguard the health of mankind.

TIGERMED

Sustainability Report

DRIVING INNOVATION OF CLINICAL RESEARCH

POWERING GLOBAL

MEDICAL

INNOVATION

Under the policy guidance of the national pharmaceutical regulators, China's pharmaceutical industry has ushered in an era of boosting innovative drug R&D rather than confining itself to generic drug production. It is now more actively engaged in global pharmaceutical innovation. The development and application of innovative technologies such as big data and cloud computing also empower the digital transformation of the CRO industry.

As of Q1 2020

319

Number of clinical research projects of Class I Chinese innovative drugs Tigermed participated in

36

Number of Class I Chinese innovative drugs gained approval to market with the support of Tigermed

Facilitated the Marketing of the First Indigenous Anti-cancer Drug in the US

Case

Once, it was taken for granted that effective anti-cancer drugs are only developed by foreign companies. Only after years of marketing overseas can these drugs finally enter China, depriving many patients of the best timing for treatment. In November 2019, the U.S. Food and Drug Administration (FDA) approved Zanubrutinib, a novel anti-cancer drug independently developed by Chinese biomedical enterprise BeiGene. Zanubrutinib thus became the first China- developed anti-cancer drug approved by the FDA. Hangzhou Simo provided SMO services throughout the clinical research process, while Frontage Laboratories manufactured the experimental drug and conducted heart safety clinical studies for Phase I trial.

Powering Drug Innovation, Bringing Patients New Hope

Driving the "Go Global" of China's Innovative Drugs

China is now vigorously promoting the R&D of new drugs. It is committed to launching more innovative drugs to the market to endow patients with more options. Since its inception in 2004, Tigermed has developed a sound pharmaceutical R&D service system that provides integrated and comprehensive clinical trial solutions for innovative drug R&D.

In 2019

124

R&D investment million RMB

In 2019

116

Number of updated and

In the wave of the globalization of pharmaceutical R&D, China became a member of the International Conference on Harmonization (ICH) in 2017 and has aligned with global standards for more global cooperation. To accommodate the growing demands for overseas R&D projects, we actively plan our overseas business layout, and extend our businesses step by step to Asia Pacific, Europe and the United States to boost our international competitiveness and bring

Tigermed focuses on clinical trial operation services for

Tigermed provides other

improved SOPs for supporting global project cooperation

China's innovative drugs to the international arena.

innovative drugs, generic drugs and medical devices, as well as complementary services directly associated with clinical trial operations such as medical writing, translation and registration services and pharmacovigilance services.

Clinical trial

Clinical-related

services and

solutions

laboratory

services

Services for Pharmaceutical Innovation

important services in the drug development process, including data management and statistical analysis, site management and patient recruitment, medical imaging as well as laboratory services.

4.43%

R&D investment to operating revenue

7

Among the 13 Class I drugs approved in China, 7 were developed with the assistance of

Participating in

Riding the trend of globalized pharmaceutical R&D, we actively carry out

international projects

multicenter trials worldwide.

Building

strategic

We join hands with overseas pharmaceutical enterprises and laboratories

partnership

to promote innovation and research.

Contributed to the Approval of the First China-made Artificial Heart "Yongrenxin",

Case

creating a medical miracle to regain a new life by new heart

Patients with heart failure and in need of heart transplantation are often plagued by problems such as the lack of donors and the necessity of long-termanti-rejection and anti-infection treatments. The artificial heart has brought new hope for such patients. To break the monopoly of developed countries in the artificial heart technology and better address the needs of domestic patients, artificial heart "Yongrenxin" developed by Chongqing Yongrenxin Medical Devices was approved to be launched in the market in August 2019. Tigermed provided clinical research and technical services throughout the product's R&D. "Yongrenxin" fills the technical gap in the field of artificial heart in China. The innovative product will rekindle the hope of patients for life.

Tigermed or its subsidiaries.

Joining

hands with

We communicate with overseas pharmaceutical organizations and learn

overseas organizations

from their best practices to narrow the gap.

The First Subject Successfully Enrolled in Singapore for International Multi-

Case

Center Trials

In July 2019, Jiangsu Alpha Biopharma Technology's study of the new generation of oral small- molecule reversible epidermal growth factor receptor (EGFR) tyrosine kinase inhibitor (TKI) - AZD3759 successfully enrolled the first subject for a Phase II/III international multi-center trials and finished administration in Singapore. For Tigermed, this is the first international multicenter trial project and the first subject enrollment in Singapore, which sets a shining example for following research and development in Southeast Asian countries.

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Teddy Clinical Research Laboratory Established Strategic Partnership with MLM

Case

(European)

To better adapt to the trend of international multi-center clinical trial cooperation and meet

the needs of global customers, Teddy Laboratory has formally established strategic partnership

with MLM, a European based medical lab. Both sides will carry out extensive cooperation in

international multi-center trials and one-stop laboratory services.

Jiaxing Clinflash Officially Recognized as a Member of CDISC to Deliver High-

Case

Quality Service

As an active advocate of the globalization of clinical trials, Jiaxing Clinflash was recognized as a gold member of CDISC in May 2019. CDISC is a global open non-profit organization (NPO) of whole disciplines. It aims to integrate best practices in the industry and establish unified standards for clinical R&D, to support the electronic acquisition, exchange, submission, and archiving of clinical and preclinical data. Through CDISC's platform, Jiaxing Clinflash will continue to improve its system and service quality, meet CDISC standards, and enhance the efficiency and benefits of pharmaceutical enterprises.

Ushering in Organizational Reforms in the Digital Age

The digital reform in the medical industry has been unveiled and accelerated by COVID-19. We embrace the changes by integrating innovative technologies into our strategy and decision- making. We formulate prudent digital upgrade plans to keep up with the fast-pace industrial transformation, and shoulder due responsibility for customers and patients.

DRIVING INNOVATION OF CLINICAL RESEARCH

BECOMING A

TRUSTED CLINICAL

RESEARCH PARTNER

Tigermed's popularity among customers hinges on the hard-working and pragmatic clinical research team. We tirelessly extend the industrial chain and build regional service capacity to provide comprehensive and timely solutions, and strive to become a reliable clinical research partner for sponsors, clinical trial centers / researchers, and subjects.

Business data collection

Digital business scenarios

Digital culture

We appoint Chief Innovation Officer (CIO) for the first time. Through reasonable data use, we gradually build a digital management platform and an office collaboration platform to improve the transparency and efficiency of business operation, and lay a solid technical foundation for international collaboration.

We combine traditional business scenarios with digital technologies to facilitate the innovation, development and application of drugs.

We set up an innovation center to enhance the awareness of all staff at all levels, and tap into the potential of each employee for innovation.

The sense of mission is deeply embedded in the mind of Tigermed employees. We feel proud when the product we processed is marketed and benefiting patients. The recognition of customers is our perpetual source of motivation.

--Ms. Cao Xiaochun, General Manager of Tigermed

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Sustainability Report

Continuously Upgrading Service Capacity

To improve the efficiency of clinical trials, we build stronger professional service capacity to improve customer experience and protect the rights and interests of subjects. We strictly guarantee the security of clinical trials and research data to safeguard the privacy of all parties.

Improve the ability of

Protect the rights and

Safeguard information

on-site service

interests of subjects

security

100%

Annual retention rate of top ten customers

DRIVING INNOVATION OF CLINICAL RESEARCH

We set up a clinical trial center management organization (Hangzhou Simo) to assist research institutions and researchers in clinical trial management. We have also developed standard operating procedures (SOP) for Hangzhou Simo to standardize management and improve the quality and progress of clinical trials. As of the first quarter of 2020, Hangzhou Simo had provided professional services in 956 sites across 106 cities.

We sign the Informed Consent Form with subjects beforehand to protect their right to be informed. And we provide sponsors and research institutions with patient health training and academic seminars to protect the safety, welfare and rights of subjects. By the first quarter of 2020, we had recruited over 7,100 subjects.

We formulate information security policies and specify the responsibilities and requirements of confidentiality, as well as the processing procedures and transfer requirements of personal data. We organize regular trainings for all employees to enhance their awareness of data and information security. During the reporting period, there was no major information leakage or data/agreement loss.

Voice from a CRC: Charging Forward with the Hope for Life

Case

In September 2019, Hutchison MediPharma (Shanghai) awarded top-performing suppliers for the first time, and Hangzhou Simo won Excellent Team Award.

Tigermed is home to teams of hardworking frontline staff in clinical trials, whose daily routine is

full of hustle and bustle. These people choose to march forward with the hope of marketing more

new drugs for public use.

"When will Patient 02 be here and has he made an

Patient A failed to store

appointment?" "The data for the interim analysis must be

urine samples from this

ready by next Wednesday.""The first PK blood sample of

morning as required;

subject 1001 was hemolyzed just now.Do we need to give

Patient B failed to

additional explanation?"

complete CT examination

And he/she often

as scheduled; Patient

As a clinical research coordinator (CRC), he/

C refused to return for

must face such

safety follow-up.

she often says the following:

incidents:

As a CRC, one may thus feel

"I am a CRC, a bridge connecting doctors fighting for lives

discouraged, but always

and patients struggling to survive.To let patients access the

holds on to this belief:

latest treatment, Iwill not give up."

After years of arduous work, the new drugs are finally put on the market. Once again, in the battle between life and death, our clinical research team seizes the final victory.

Over the years, I have grown from a novice to a veteran with the memories of dozens of patients engraved on my mind. There were hard times when mounting difficulties blocked our way; and there were good times when the new drugs we worked on finally hit the market. Eventually, the good trumped the bad. Marketing a new drug, for doctors, subjects, and CRCs alike means hope for survival and for life.

--An anonymous CRC

According to the satisfaction survey results in 2019 (10 points in total)

9

Average score of PM satisfaction of sponsors / CRO

9.7

Average score of researchers' satisfaction of CRC

Establishing Complaint Handling Mechanism

As a service-oriented enterprise, customer satisfaction is our goal. We have built a comprehensive customer feedback mechanism which allows us to understand customer demand, timely solve problems, and improve customer satisfaction through visits, telephone calls, survey and other means of communication.

Receive complaint

Product Manager analyzes the complaint and forwards the message to relevant departments / Person in charge

Product Manager / Responsible departments / Person in charge handles the complaint (investigation, solutions, feedback, follow-up)

Post-solution survey

Customer Complaint Handling Mechanism

The Company keeps detailed records of customer complaints and divides them into four categories, namely major (key issues), moderate (serious issues), minor (general issues) and invalid complaints for efficient management. In 2019, we received 17 complaints from customers and handled all effectively.

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Sustainability Report

DRIVING INNOVATION OF CLINICAL RESEARCH

UPHOLDING QUALITY AS THE

CORE OF THE BUSINESS

Drug quality concerns life and death. Only by putting quality first can Tigermed gain a foothold in the market, win more trust and sustain long-term cooperation. We continue to optimize the quality management system, create a quality culture with full participation of staff, integrate quality control into the supply chain, and work with suppliers to ensure quality throughout the clinical research process.

Continuously Optimizing the Quality Management System

We build a quality control system composed of the Quality Management Committee, Quality Assurance Department and Internal Audit Department, and constantly upgrade the system by adopting the PDCA (Plan-Do-Check-Action) approach. In 2019, we integrated the SOPs of domestic and foreign subsidiaries to build a unified quality management system, and improved the current processes in line with the US and European regulations and the international strategy of Tigermed to better adapt to global development.

We formulated regulations and SOPs such as Measures of Handling Non-Compliance, and Corrective Action and Preventative Action to deal with major or serious quality incidents. Our Quality Assurance Department will investigate the incidents at once, implement handling measures, formulate corrective and preventive measures, and optimize the process according to the PDCA principle to control risks and prevent the recurrence of similar problems.

In 2019

13

Number of projects passing inspection by NMPA

15

Received 15 audits of both domestic and overseas customers with no major issues found, and the reception and follow-up work were highly recognized by our customers.

In 2019

4

Number of meetings on the quality management system

1

Number of annual meeting on quality management

In 2019

1604

Number of suppliers

1028

Domestic suppliers

576

Overseas suppliers

8

Number of supplier audits completed

Cultivating a Culture of Quality

High-quality clinical research results cannot be guaranteed without a powerful culture of quality. We focus on cultivating the quality awareness of employees during production and operation. Through orientation special training and regular trainings, we gradually change the way employees work and think, improve their awareness and make sure they understand and shoulder due responsibility.

Held the First Annual Quality Management Meeting to Improve Quality Awareness

Case

of the Leadership

In September 2019, Tigermed held the first annual quality management meeting in Shanghai. The meeting welcomed 72 senior managers, 66 of which were heads of departments of the headquarters and subsidiaries in China and 6 were from overseas institutions. The meeting, focusing on three themes: quality management, annual quality management activities and annual quality management audit reports, introduced the Company's annual quality management progress to the senior managers to consolidate the quality awareness of the management and clinical teams from top to bottom, and create a quality-oriented corporate culture.

Integrating Quality Control Into the Supply Chain

To control quality throughout the clinical research process, we incorporate supplier management into the SOPs, and formulate specific management procedures for suppliers engaged in clinical trials with key performance indicators. In this way, we aim to further integrate quality control into the supply chain, and work with suppliers to strengthen quality management.

supplier management

We have formulated the Supplier Management System to clarify the responsibilities and approval

economic, social and environmental risks threatening product quality and business ethics.

Strict

authority of buying requisition, approval, purchase, acceptance, warehousing, payment, and

inventory. We select suppliers based on principles like fairness and justice, full competition,

integrity and self-discipline, and evaluate candidates from multiple dimensions to reduce

We include supplier audit into the annual audit plan, and examine the quality performance of

Supplier

suppliers involved in clinical trials on a regular basis. We carry out on-the-spoton-cause audit of

training to the establishment and improvement of the quality system through communication, to

audit

quality incidents, and understand the whole operation process from personnel qualification and

help suppliers identify defects and enhance their quality management system.

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Sustainability Report

PROMOTING

INDUSTRY

DEVELOPMENT

Our Actions:

Fuel the development of regional healthcare industry

Establish platforms for industry exchange and cooperation

Cultivate talents for the industry Empower SMEs

As a leading clinical CRO in China, Tigermed leverages its experience, resources and expertise to build a sound and enabling healthcare ecosystem together with industry peers, contributing to health for all.

ACCELERATING THE

DEVELOPMENT OF HEALTH

INDUSTRY LOCALLY

SHARING IDEAS AND

RESOURCES WITH

INDUSTRY PEERS

BUILDING A STRONG TALENT POOL FOR HIGH-QUALITY INDUSTRY DEVELOPMENT

TIGERMED

Sustainability Report

ACCELERATING THE

DEVELOPMENT OF HEALTH

INDUSTRY LOCALLY

Rising health awareness has led to increasing public demands for high-quality healthcare. Tigermed seizes the opportunity to assist in the reform of local healthcare industry and capitalizes on the clinical research expertise and best practices it has built up over the years to expedite drug innovation and R&D, and benefit more patients.

PROMOTING INDUSTRY DEVELOPMENT

Assisted in Developing National Biomedical Industry Base in Pingshan District,

Case

Shenzhen

The biomedical industry is developing rapidly in the Guangdong-HongKong-Macau Greater Bay Area, one of the most open and economically vigorous regions in China. Tigermed and Shenzhen Pingshan District People's Government have entered into cooperation to build an integrated service platform for clinical research. Building on Tigermed's expertise in the clinical research of drugs and medical devices as well as the solid foundation for developing the biomedical industry in Pingshan District, we make full use of local preferential policies and favorable business environment to empower more biomedical innovation companies in the area, and to make it a highland for biomedical innovation.

Tigermed has signed a framework agreement with Shenzhen Pingshan District People's Government to build an integrated service platform for clinical research.

Contributed to the Biomedical Industry in Wuxi

Case

Biomedicine is one of the strategic emerging industries of Wuxi City. Tigermed is the first partner of AstraZeneca in founding Wuxi International Life-Science Innovation Campus (iCampus). We hope to share best practices and achievements in international business with innovative pharmaceutical companies, help Chinese companies go international, and introduce foreign innovative drugs and medical devices into China. We are committed to building a patient- centered and innovation-enabling ecosystem across the entire industry chain.

Dr. Ye Xiaoping (right front), Chairman of Tigermed, attended the iCampus Signing Ceremony.

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Sustainability Report

SHARING IDEAS AND

RESOURCES WITH

INDUSTRY PEERS

Based on professional service capacity in new drug clinical research and rich global resources for collaboration, Tigermed strives to build a high-level exchange and cooperation platform for industry partners at home and abroad. Through sharing best practices and opinions, players in the industry could grasp new frontiers of the industry, come up with new ideas, and thereby generate continuous industry breakthroughs.

Sharing Experience

Early-stage clinical R&D is key to the development of innovative drugs. Tigermed held the Seminar on Early-Stage Clinical R&D of Innovative Drugs to create opportunities for industry peers to share experience and insights in this regard.

Tigermed organized the First Anhui Institutional Development Conference to strengthen ties between CROs and SMOs, and improve the efficiency and quality of clinical trials.

Tigermed, together with three subsidiaries: Talent MedConsulting, Frontage Laboratories, and Jiaxing Clinflash, participated in the Third New Drug Clinical Development Summit and shared requirements for new drug application and measures for clinical research risk control.

Tigermed and Korea National Enterprise for Clinical Trials (KoNECT) signed an MOU to promote exchanges, cooperation and experience sharing between CROs in the two countries.

Experience sharing for

GCP improvement

Tapping the enormous potential

of innovative biologic drugs

Tigermed shared ways to cut R&D expenditure and shorten the R&D cycle of biosimilars at the 2019 Biopharma Developer Innovation Conference & 1st Turning Point Annual Meeting, to expedite the "go global" of Chinese new drugs.

Tigermed exchanges with industry peers

Tigermed actively participated in major international conferences, such as the DIA 2019 Global Annual Meeting, the Biotechnology Innovation Organization (BIO) International Convention, BIO- Europe, Europe's largest biotechnology partnering conference, and the 38th Annual J.P. Morgan Healthcare Conference, where the Company shared the latest progress and achievements of China's clinical research with international counterparts and built a two-way bridge for high- quality medical products at home and abroad.

PROMOTING INDUSTRY DEVELOPMENT

At the 2019 China Clinical Trial Organizations . Innovation . Practice Summit Forum, Mr. Wu Qiang, Vice President of Tigermed Project Management Department, introduced the development situation of Chinese clinical trial organizations, and shared insights about opportunities and challenges brought by the new clinical trial policy. He also shared the experience of cooperating with clinical trial organizations.

Offering Advice and Suggestions for Industry Development

Tigermed participated in the seminar of ICH E8 (R1) Guideline on General Considerations for Clinical Trials organized by the National Medical Products Administration, and offered key takeaways from frontline practices to help push the Guideline to enter the third phase. In addition, Tigermed was invited to share its experience as a private enterprise in a meeting soliciting opinions for the Regulations on the Promotion of Private Enterprises in Zhejiang Province.

Ms. Chang Jianqing, Vice President of Tigermed Policy and Regulations, was invited to the DIA China Drug Discovery Innovation Conference, where she introduced key points relevant to clinical research in the Drug Administration Law of the People's Republic of China.

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Sustainability Report

PROMOTING INDUSTRY DEVELOPMENT

Our actions

Value contribution

BUILDING A STRONG TALENT POOL FOR HIGH-QUALITY INDUSTRY DEVELOPMENT

Tigermed jointly established the Beijing

Clinical Research Ability Training Center

Giving

with Beijing Ditan Hospital, Capital Medical

University.

Tigermed co-opens courses on Clinical

lectures

Trial Management with Zhejiang

Pharmaceutical College and Hangzhou

Tigermed built a China-South Korea

Medical College.

clinical research exchange and cooperation

platform and sent lecturers abroad to give

courses to international industry peers.

Forms of cooperation

20 universities and colleges including

Tigermed offers internships for more than

Internships

Zhejiang Pharmaceutical College,

Pharmaceutical University, and Guangxi

Shenyang Pharmaceutical University,

Nanjing Medical University, Beijing

University of Chinese Medicine, Zhejiang

Chinese Medical University, China

Medical University.

Scholarships

Tigermed set up the "Tigermed

Scholarship" at Hangzhou Medical

College."

Tigermed works with top hospitals and has developed a unique and innovative CRC training model, which will help the domestic healthcare industry build core competitiveness.

Tigermed jointly develops clinical research- related courses with universities and colleges, which will help arouse students' interest in clinical research, and thereby cultivate talents for the industry.

The China-South Korea clinical research exchange and cooperation platform creates good opportunities for building an international industry-university-research team.

Tigermed expands employment channels for college students and creates opportunities for students to know more about clinical research, so as to build a sustainable talent pool.

Tigermed supports clinical research education by improving school conditions. Tigermed strives to boost its attractiveness to talents and enhance the popularity of clinical research in universities.

The CRO industry is currently in a stage of rapid development, with a growing demand for high- quality talents. To achieve further progress and high-quality development, advance preparation and talent pooling matter. We invest a lot in finding industry talents and building a clinical research talent pool by adding systematic clinical research courses to the current medical education curriculum and adding clinical research-related content to the standardized training of resident doctors.

Students may not have a clear idea of what kind of job they want to take. The project of cooperation between schools and enterprises provides us with a valuable opportunity to understand the CRO industry. The project has equipped me with not only theoretical knowledge, but also hands-on skills, and prepared me for the industry and the job in a short time.

---Xu Siqing, an intern and then an employee of Tigermed Graduated from Zhejiang Pharmaceutical College in 2019

Tigermed carries out extensive cooperation to train talents for the future

Tigermed gives play to its resources and technical expertise to provide financial and technical support for start-up pharmaceutical companies, contributing to the lasting development of the innovative healthcare industry.

Funded Pharmaceutical Start-ups to Enable Their Rapid Growth

Case

At present, pharmaceutical innovation in China is in its infancy, and high-quality innovation projects are often forced into suspension due to lack of financial and technical support. Tigermed has directly invested in a number of leading biopharmaceutical companies in China, such as CANbridge, Genor Biopharma and Shanghai Zerun Biotechnology. Among them, Shanghai Zerun Biotechnology leads the domestic industry in the clinical progress of the 9-valent HPV vaccine. And Genor Biopharma plans to launch several new drugs within two years. Besides direct investment, we have also invested in eight leading domestic healthcare funds, in the hope of providing both financial and intellectual support to innovative healthcare industries like innovative drugs, innovative medical devices, medical AI, big data, and cellular immunotherapy. Our investment will empower recipient enterprises and drive the development of China's healthcare industry.

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ENSURING EMPLOYEES'

BASIC RIGHTS AND

INTERESTS

ACTIVATING TALENT

AND UNLEASHING

POTENTIAL

GUIDING OUR PEOPLE IN THE QUEST FOR SUCCESS

Our Actions:

Protect the fundamental rights and interests of employees

Pay attention to employee growth and development Care for female employees

Talents are invaluable assets and the cornerstone of sustainability for Tigermed. We always put people first, respect the value of employees, and support them in career development. While helping employees grow and fulfill themselves, we retain them and grow into a talent- backed industry leader.

FOSTERING AN ENGAGING TIGERMED CULTURE

TIGERMED

Sustainability Report

GUIDING OUR PEOPLE IN THE QUEST FOR SUCCESS

CEO's View on Talents

  • People-centeredApproach for Common Development

Talents define Tigermed's core competitiveness. While we are growing fast, we adopt a more scientific and reasonable approach in selecting, employing, training and retaining talents. Our employees have a strong sense of happiness, not only because they echo with our corporate culture, but also because they find Tigermed to be the right place for unleashing their talent. While our employees strive for excellence in work, we give them all-round support and care in mental health counseling, relocation and returning to work after childbirth, etc. Such challenges are fully identified and properly handled at Tigermed. We are committed to becoming a talent magnet in the CRO industry and keep investing in a stable and high-quality talent pool.

ENSURING EMPLOYEES' BASIC RIGHTS AND INTERESTS

We act in strict accordance with relevant laws and regulations, such as the Labor Law of the People's Republic of China and the Company Law of the People's Republic of China, international conventions and labor standards, and eliminate child labor and forced labor. We effectively protect the legitimate rights and interests of employees, and endeavor to maintain equal and harmonious labor relations. All our employees are treated equally regardless of gender, age, educational background, ethnicity and nationality, and enjoy equal and inclusive development and promotion opportunities.

Key Indicators

100%

Employee labor contract signing rate

100%

Social insurance coverage

Consolidating the Compensation and Performance Management System

Tigermed offers diversified salary packages to win the war for talent in the pharmaceutical R&D industry. We combine salary with equity incentives, and evaluate the performance of employees by introducing multi-dimensional KPIs to perfectly balance employees' efforts and gains. We have formulated a set of human resource management systems such as the Employee Handbook, Organization Performance Management System, Employee Performance Management System and Remuneration Management System, to ensure the openness and transparency of the performance evaluation standards and procedures for directors, supervisors and senior executives, as well as the transparency and law compliance of the appointment of senior executives.

Occupational Health and Safety

EmployeesProfessional teams Excellent educational backgroundEmployees worldwide

Technical staff

Master's degree

4959

4959

Financial

Asia-pacific region [China included]

89.31%

and above

staff

239

Number of employees

1.63%

25.29%

Marketing

Asia-pacific region [China excluded]

1064

staff

Junior

Bachelo's

2.88%

428

Number of employees of

Administrative

college and

degree

North America

staff

lower

12

the parent company

6.18%

11.71%

63.00%

Europe

Note: The statistics above were current as at the end of December 2019. Please refer to "KEY PERFORMANCE" on P52-53 for more HR statistics.

40

Tigermed defines occupational health as mental and physical health. To ensure that clinical laboratories are health-friendly and safe, we have formulated safety management systems such as the Laboratory Facilities, Environment and Sanitation Procedures, and Procedures for Responding Risks and Opportunities, to keep testing and environmental facilities under strict control. We also arrange annual health checkups for employees, and all our employees received health checkups last year.

The CRO industry is full of challenges, and employees face high pressure from work and interpersonal relationships. To help employees better address challenges, we have launched the Employee Assistance Program (EAP), the first of its kind in the CRO industry.

41

  • 泰格心福音 "EAP 启动海报

TIGERMED

Sustainability Report

ACTIVATING TALENT AND UNLEASHING POTENTIAL

GUIDING OUR PEOPLE IN THE QUEST FOR SUCCESS

During the reporting

Sparing no efforts in empowering employees

period

3580

Tigermed provides targeted training programs to employees at different levels and

Training

positions. From new hire training to MBA and EMBA degree education for senior

Number of employees trained

executives, from vocational skill training to management capacity building, we are

committed to providing employees with uninterrupted and full-course training

resources, to empower them and render them into productive, efficient and creative

Tigermed continues to help employees boost their value. We have formulated the Training Management Policy, Personal Training and relative SOPs, and on the basis of which, established a full-coverage,multi-pronged training framework. At Tigermed, one can learn anywhere, anytime as long as he or she wants. We offer a platform for employees to grow fast, and thus nurture and retain the high-quality talent team.

37

talents who have excellent problem-solving skills and take pride in their jobs.

Average training hours per

employee

Project Manager Enabling Program

Launching the recruitment management system

During the reporting period

4.67

Investment in employee training million RMB

To help employees better adapt to the new role as Project Manager (hereinafter referred to as PM), grow faster and improve team productivity, Tigermed has customized a two-year Backbone PM Enabling Program. The program aims to help PMs consolidate basic know-how, improve the ability of managing clinical trial projects, strengthen hands-on skills, and thereby lay a solid foundation for career development.

To meet the needs of Tigermed's group-oriented and international development,

and to build an employer brand of Tigermed, we integrate the recruitment of all

subsidiaries into one platform, and launch a recruitment management system

Selection

for full-process human resource management, including job vacancy posting,

candidate screening, ability assessment, and talent pool construction. The platform

allows us to continuously improve recruitment efficiency, and find top talents who

fit in with our vacancies and agree with our corporate values, thus laying a good

foundation for medium and long-term development of Tigermed.

192

Number of employees promoted through the professional talent channel

120

Number of employees promoted through the managerial talent

Book-reading and sharing

rning

Sharing project management

skills

a

p

e

r

o

u

l

G

Project review and summaryi

g

Project experience sharing

n

s

r

a

Case sharing

h

a

e

s

C

g

ni

T

r

nia

ID

P

C

o

a

c

h

i

g

n

Employees formulate IDPs

The Direct Manager provides assistance and reviews IDP progress on a quarterly basis

HRBP serves as the supervisor

Coaching PMs in key learning points every month, helping them adapt to the new role and build capacity

Trainees take notes in the monthly coaching

HRBP serves as the supervisor

Expanding the career development ladder

We offer a dual career development ladder for technical and managerial talents to

give full play to each employee's ability in the most suitable position and to fully Employment

channel

Specialized knowledge

Best practices in clinical trial project management

General skill training

The PM training program is mainly in five forms: IDP (Individual Development Plan), coaching, training, case sharing, and group learning. It aims to unleash constant and conscious enthusiasm of trainees for learning and growth and enable them to learn by themselves, so as to sustain long-term individual development.

recognize the value created by employees in different positions. To meet the needs

of business development, we added a site management promotion channel during

the reporting period as a novel and exclusive pipeline for CRCs on the frontline of

clinical research.

Internal Job Transfer Encourages Proactive Career Management of Employees

Case

Tigermed is fully aware that employees may seek job transfer at different stages of life due to personal or family reasons, to obtain opportunities for further fulfilling themselves. To this end, we have put in place an internal job transfer mechanism. When an employee applies for a job transfer, as long as there is a vacancy and the applicant is qualified, he or she can switch the role unimpededly. During the reporting period, 55 employees had switched positions, including CRCs, CRAs and senior executives who have been with Tigermed for more than 15 years.

During the reporting period

535

Key technical (business) personnel participating in the equity incentives program

Private Board meetings for senior executives

Senior executives at Tigermed often need to cope with complex and everchanging issues. Only with higher overall quality and leadership can they address challenges smoothly. During the reporting period, we organized three private Board meetings for the senior management team and invited coaches to strengthen their leadership and corporate management skills. At the same time, senior executives were paired up to solve management problems together. Such methods have helped improve the cohesion and capabilities of our senior management team.

Retaining key talents with incentive policies

During the reporting period, Tigermed continued to foster the KPI-oriented corporate Retention culture mainly based on company-level and department-level bonuses. We also released incentive measures such as equity incentives for talents at key positions and core managerial personnel, and continuously enhanced the competitiveness of our overall compensation package to attract outstanding external talents to join us.

Our employee turnover rate is lower than the industry average.

42

43

44
Reading salon for new employees to be familiar with corporate culture
Employees can give feedback and suggestions on corporate development through the internal IT platform, employee salons, Tigermed innovation talks and various other channels.
Internal Communication Mechanism of Tigermed
We optimize the reporting and instruction mechanism, and share professional knowledge and best practices across the Company through monthly meetings, Monthly Talking Points and live streaming.
Employee engagement
We inform employees of the Company's strategy and business performance, commend outstanding employees, and send holiday greetings via the email of the President Office of Administration, annual meetings, celebration activities, and HRBP email.
Middle management
TIGERMED Sustainability Report
FOSTERING AN ENGAGING TIGERMED CULTURE
Tigermed cares about how employees feel, listens to their needs, and provides them with all- round care and support, making the Company a big loving family.
An Unblocked Internal Communication Mechanism that Allows Employees to Share Their Views
Tigermed endeavors to establish an efficient internal communication mechanism that meets the new demands brought by business expansion and fresh blood, and ensures the accuracy, timeliness and transparency of information transmission.
Senior leadership

GUIDING OUR PEOPLE IN THE QUEST FOR SUCCESS

Supporting Work-life Balance of Employees

Tigermed attaches great importance to the work-life balance of employees and encourages employees to work hard and live a healthy life. We vigorously enrich employees' cultural life by providing benefits such as badminton clubs, football clubs, photography clubs, and free gyms to ease their work pressure. Employees are encouraged to participate in public welfare activities. They donated clothes to Limin Vocational School in Yushu Tibetan Autonomous prefecture of northwest China's Qinghai Province via the second "Love transcending distance" activity, and donated KRW 2.89 million (about RMB 17,315) to an orphanage in South Korea to support children in need. By doing this, employees themselves have become more responsible and more grateful.

68.29%

Women in management

2.67%

A year-on-year increase of

Tigermed Northern China Badminton Competition 2019

Caring for Female Employees

Tigermed pays attention to the workplace and life challenges faced by female employees, and responds to national policies of guaranteeing benefits and career development opportunities for women. We make it easier for female employees to become mothers by providing wedding leave, maternity leave, breastfeeding leave, prenatal care check-up leave, pregnancy leave, and birth control leave, and allow paternity leave for male employees. According to work arrangements, we create work flexibility for female employees in pregnancy and provide them with child care subsidies of the highest local standard. Moreover, we have set up maternity rooms in the Company to support new moms return to work. As of December 31, 2019, more than 1,000 "Tigermed babies" had been born.

"Tigermed babies"

45

TIGERMED

Sustainability Report

CONTRIBUTING

TO A SHARED

FUTURE

Our Actions:

Popularize knowledge of clinical trials

Support the "Small Shield" project for blocking hepatitis B mother-to-child transmission

Regulate waste disposal strictly Advocate green office

Healthy ecosystem and social system are the foundation for the survival and development of mankind. As a member of the global village, Tigermed links its own development with the goal of sustainable development of the world. While supporting drug R&D to protect people's health, we actively respond to climate change and other environmental challenges faced by the world, and take on the responsibility to increase public awareness of clinical trials, so as to change the world for the better.

GREEN TIGERMED:

STRENGTHENING

ENVIRONMENTAL

MANAGEMENT

CARING TIGERMED:

IMPROVING HEALTH

AWARENESS AT

COMMUNITY LEVEL

TIGERMED

Sustainability Report

CONTRIBUTING TO A SHARED FUTURE

GREEN TIGERMED:

STRENGTHENING ENVIRONMENTAL MANAGEMENT

Tigermed strictly complies with laws and regulations, such as the Environmental Protection Law of the People's Republic of China. We pursue green development in everyday office tasks and clinical research, and have gradually developed our own EHS (Environment, Health and Safety) management system by drawing from best practices of advanced industry peers. We are also integrating green development requirements into business operations to reduce our environmental footprint and achieve green development.

Regulating Waste Disposal Strictly

The Company's non-hazardous waste mainly includes office wastepaper, cleaning supplies waste, food waste, and hazardous waste mainly consists of toxic liquid waste generated during clinical trials. Reducing waste discharge is one of our environmental goals. To fulfill the goal, we sort and manage non-hazardous office waste in a rigorous manner, and handle it to environmental protection authorities for proper treatment on a regular basis. Laboratory environment management procedures have been formulated. And a specific department was established to be in charge of registering and handling laboratory waste, helping strengthen laboratory waste treatment and prevent the waste from affecting water and soil.

Poured into designated recycling bins for waste liquid and

Laboratory

Low-toxic and non-toxic waste liquid

collected regularly by partner agencies

Waste acid and alkali

Discharged after being neutralized with dilute alkali or acid

waste

Exhaust gas

Chemical experiments that produce exhaust gases are done

in labs with fume hoods to treat and vent exhaust gases

Everyday solid waste

Landfilled after collection

disposal

Biological waste

Inactivated before disposal

In 2019

88.453

Non-hazardous waste such as domestic and office waste (ton)

0.055

Emissions per capita ton

We hand over hazardous office waste, such as empty toner cartridges and waste fluorescent tubes, to third-party agencies or the real estate management service for disposal.

In 2019

0.0640

Electricity consumption per capita (10000 kWh)

32.6087

Water consumption per capita ton

In 2019

181.561

The Company's total direct and indirect greenhouse gas emissions decreased by 181.561 tons CO2e on a year-on-year basis.

Saving Resources

We strictly control water and electricity use by continuously strengthening the inspection and maintenance of water equipment and facilities, phasing out outmoded electricity-consuming appliances, and managing water and electricity consumption statistics. We have enhanced employees' awareness of resource conservation through communication, putting up slogans on saving water and electricity and other means to help build a resource-saving society. We use municipal water and haven't posed any major risk to the environment.

Purchased electricity by Tigermed's possessed

Water consumption (Unit: Ton)

2017

and leased properties (Unit: 10000 kWh)

2017

128.9931

61298

2018

2018

125.9178

58268

2019

2019

103.3363

52663

30

60

90

120

150

50000 53000 56000 59000 62000

Catchy electricity slogan in the office area

Combating Climate Change

As a CRO, Tigermed's day-to-day energy consumption mainly comes from electricity consumption of office equipment such as computers and lighting facilities, and oil consumption of vehicles. We keep a close eye on the impact of our daily operation on climate change, and work hard to reduce pollution by launching a remote online collaborative office system, promoting green office (such as replacing printed business cards with electronic ones), and effectively controlling and managing self-owned vehicles.

Note: Please refer to "KEY PERFORMANCE" on P52-53 for the scope and calculation method of environmental data, and more emissions statistics.

831.444

Indirect greenhouse gas (Scope 2) emissions ton CO2e)

0.515

Emissions per capita ton CO2e) Calculated based on the Company's purchased electricity

65.834

Direct greenhouse gas (Scope 1) emissions ton CO2e

0.041

Emissions per capita ton CO2e Calculated based on the Company's gasoline consumption

48

49

TIGERMED

Sustainability Report

CONTRIBUTING TO A SHARED FUTURE

CARING TIGERMED: IMPROVING HEALTH AWARENESS AT COMMUNITY LEVEL

We answer questions from subjects on the CRPF official WeChat account:

Q Subject

A Doctor

Doctor, are the trials and tests free? What obligations do I need to fulfill?

The development of an enterprise is inseparable from the engagement and support of the community, while the development of a community also requires the invention and contribution of enterprises. For Tigermed, health is a key issue on our agenda to contribute to community development. We strive to open a communication channel between the Company and society, spread our health philosophy to more people through benign interactions, and thereby enhance health awareness of the entire society.

Popularizing Knowledge about the Clinical Trials of Drugs

Clinical trials are still misunderstood by the general public. Most people believe they will be treated like "guinea pigs" in such trials and won't benefit much. However, clinical trial is a key link before bringing a new drug to the market, and the participation of subjects is indispensable. In fact, subjects could access new drugs or new therapies with better efficacy for free in clinical trials. Thus, Tigermed is actively popularizing knowledge of clinical trials among the public, helping the general public, especially subjects, know that such trials are scientific and advanced. By doing this, the Company contributes to building a healthy, virtuous, and trustworthy pharmaceutical R&D ecosystem.

In September 2017, Tigermed and large hospitals, pharmaceutical companies and other organizations from across China jointly established the Clinical Research Promotion Fund (CRPF), and opened an official WeChat account to popularize clinical research knowledge, publish latest news on clinical research, and educate subjects.

In November 2019

The "Small Shield" APP obtained the medical device license of Auxiliary Management Software for Blocking Mother- to-ChildTransmission of Hepatitis B issued by the Zhejiang Medical Products Administration. It was the first officially approved mobile APP software device license in the field of liver disease prevention and treatment since the implementation of the new list.

Hi, we encourage and respect every subject for the clinical trials of a new drug. Since the uncertainties and safety issues are unknown before a new drug is launched to the market, to avoid risks, it is necessary for subjects to take regular tests in accordance with the protocol. In this way, to comply with necessary obligations is to better protect the rights and interests of subjects themselves, and to ensure the safety of clinical trials.

The CRPF uses vivid animation to disseminate knowledge about clinical trials to the media and the public:

Scan the QR code to learn about

Scan the QR code to learn about

clinical trials of new drugs

clinical trials of generic drugs

My genuine opinion (on being a subject) is that patients spend less or even no money to get good treatment, while also providing true data for the R&D of the new drug and paving the way for future drug users. It is beneficial to the subjects themselves, to drug R&D institutions, and to future subjects.

---A comment on the CRPF official WeChat account

Blocking Mother-to-Child Transmission of Hepatitis B with the "Small Shield"

In 2015, the "Zero Mother-to-Child Transmission of Hepatitis B" project (the "Small Shield"), initiated by the Chinese Foundation for Hepatitis Prevention and Control and fully supported by Tigermed, was officially launched. With the establishment of the management network that includes pregnancy demonstration bases, project hospitals and community-level hospitals, and with the help of the "Small Shield" APP, a mobile medical tool developed by the Company's investee Hangzhou SlanHealth Co., Ltd., the project aims to carry out follow-up management of pregnant women with hepatitis B and their babies in accordance with standard procedures to minimize or even completely block mother-to-child transmission of the disease. As of the end of the reporting period, the "Small Shield" project had covered nearly 200 hospitals in 31 provinces, municipalities, and autonomous regions, with more than 1,600 registered doctors serving 30,000 expectant mothers carrying hepatitis B virus. The success rate of blocking mother-to-child transmission was above 99.5%.

50

51

TIGERMED

Sustainability Report

KEY

PERFORMANCE

Economic performance

Indicator

Unit

2019

2018

2017

Total assets

RMB 100 million

75.33

42.80

35.83

Operating revenue

RMB 100 million

28.03

23.01

16.87

Net profit of shareholders of listed companies

RMB 100 million

8.42

4.72

3.01

Taxes payable

RMB 100 million

1.12

0.79

0.43

Basic earnings per share

RMB per share

1.13

0.94

0.61

Number of R&D personnel

/

468

426

378

Proportion of R&D personnel

%

9.44

10.93

11.76

R&D investment

RMB 100 million

1.24

0.88

0.50

R&D investment to operating revenue

%

4.43

3.83

2.94

Drug clinical research project

/

287

283

218

KEY PERFORMANCE

Social performance

Indicator

Unit

2019

2018

2017

Total count of active employees

/

4959

3898

3214

Female employees

/

4217

3233

2667

Employees aged 30 and below

/

3623

2874

2320

Employees aged 31 to 50

/

1296

994

860

Employees aged 51 and above

/

40

30

34

Women in management

%

68.29

65.62

66.84

Average paid vacation days

/

13.85

12.34

9.3

HSE investment

RMB 10000

740

620

460

Health checkup coverage

%

100

100

100

Staff turnover rate

%

18.7%

20.7%

23.0%

Work-related fatalities

/

0

0

0

Number of suppliers

/

1604

1896

1507

Cumulative donations

RMB 10000

870.60

767.60

652.60

Environmental performance

Indicator

Unit

2019

2018

2017

Non-hazardous waste such as domestic waste and office waste

Ton

88.453

73.950

59.520

Purchased electricity by Tigermed's possessed and leased

10000 kWh

103.3363

125.9178

128.9931

properties

Water consumption

Ton

52663

58268

61298

Mileage of the Company's light vehicles (<=2.5 tons)

Kilometer

112567

105548

95477

Mileage of the Company's light vehicles (2.5-3.5 tons)

Kilometer

132000

130000

135000

Gasoline consumption

Liter

24312

24264

23332

Emission of nitrogen oxides

Kilogram

252.03

243.51

240.37

Emission of particulates

Kilogram

23.74

22.93

22.61

Emission of sulfur oxides

Kilogram

0.36

0.37

0.34

Direct greenhouse gas (Scope 1) emissions

Ton

65.834

65.704

63.180

Indirect greenhouse gas (Scope 2) emissions

Ton

831.444

1013.135

1037.878

Note 1: The environmental data comes from Tigermed's Hangzhou Office, Jiaxing Office and Shanghai Office. The Company will gradually expand statistics management to cover the entire group.

Note 2: The emission of nitrogen oxides and particulate matter are calculated based on the mileage of light vehicles held by the company; the emission of sulfur oxides and direct greenhouse gases (Scope 1) are calculated based on gasoline consumption; and the emission of indirect greenhouse gases (Scope 2) are calculated based on purchased electricity. The calculation method is in line with the environmental KPI reporting principles in the Environmental, Social and Governance Reporting Guide (ESG Guide) formulated by Hong Kong Stock Exchange. The emission coefficient of indirect greenhouse gases (Scope 2) is 0.8046, which is derived from the China Regional Power Grid Baseline Emission Factors for Emission Reduction Projects in 2017 issued by the Ministry of Ecology and Environment.

52

53

TIGERMED

Sustainability Report

In an ever changing world, change is the only constant. Successful organizations bear the mark of the times.

--by John P. Kotter, author of Leading Change

OUTLOOK

In the global wave of pharmaceutical innovation, the emergence of new technologies like big data and AI and breakthrough therapies will change the original CRO model. As China has become the second largest pharmaceutical market in the world, and Healthy China 2030 has become a national strategy, the government is now vigorously promoting pharmaceutical innovation by mounting policy, capital, and industry support. Tigermed will actively embrace the era of pharmaceutical R&D and innovation, stand firm on being quality- oriented and innovate in services to cope with changes in the industry and across the world.

In 2020, Tigermed will stay true to the mission of "service innovation, health for all" and adhere to the strategy of "Excellence in Every Trial for Every Patient" to serve the cause of innovative medicine. We will orient our efforts toward customer demand and globalization, expedite the set-upof a global clinical service network, and continuously improve the ability of operating and managing global projects, thus providing integrated solutions and one-stopservices for global pharmaceutical R&D, and contribute to the health of humankind.

Quality and qualification

Riding on the global trend of pharmaceutical R&D, we will consolidate SOPs of subsidiaries, continuously optimize quality management procedures, and foster a quality culture with full participation of employees, in an effort to build Tigermed into a CRO aligned with global quality management standards.

Market strategy

We pay attention to new business drivers such as real-world evidence (RWE), with a focus on developing non-regulated businesses. We will go global together with our customers, and build an international operation team with the support of overseas projects of our strategic customers, so as to expand our market to the Asia-Pacific, North America and Western Europe.

Innovation-driven development

We closely follow frontier technologies in the industry and develop our own leading technologies based on strengths in different business lines. We will follow up with innovative business models such as RWE and risk- based monitoring (RBM), and improve customer service procedures through innovation.

OUTLOOK

Talent strategy

In terms of human resource management, we will stick to the people-centered approach for common development, and create a sound development platform for employees. We retain employees with corporate culture and career growth opportunities, and grow along with them.

Excellent operation

We have established a global operation system. With a competent and stable team and reliable quality assurance, we will be able to deliver 100% projects on time with guaranteed quality, and sustain our competitive profitability.

Customer first

We are always customer-focused. We will timely learn and analyze the needs and expectations of customers and the market, and continue to optimize customer relationship management, improve the communication mechanism and complaint management, and strive to become a trustworthy clinical research partner.

Responsibility management

We will further implement the sustainable development philosophy by formulating and improving policies and regulations and strengthening the roles of key departments, especially the Board of Directors, in the sustainability management of Tigermed.

54

55

TIGERMED

Sustainability Report

HONG KONG STOCK EXCHANGE ESG (ENVIRONMENTAL, SOCIAL AND GOVERNANCE) REPORTING GUIDE INDEX

This report has complied with the "non-compliance and interpretation" provisions set out in the Environment, Social and Governance Reporting Guidelines.

Aspect

Environmental

Indicator

Page

Note

Information on:

General

(a) the policies; and

P48-49

(b) compliance and material non-compliance with relevant standards, rules and

Disclosure

regulations on air and greenhouse gas emissions, discharges into water and land,

and generation of hazardous and non-hazardous waste

A1.1

The types of emissions and respective emissions data

P53

A1.2

Greenhouse gas emissions in total (in tons) and, where appropriate, intensity (e.g.

P49

A1 Emissions

per unit of production volume, per facility)

Total hazardous waste produced (in tons) and, where appropriate, intensity (e.g. per

We entrust a third party to

A1.3

P48

dispose of hazardous office

unit of production volume, per facility)

waste and do not acquire

relevant data

A1.4

Total non-hazardous waste produced (in tons) and, where appropriate, intensity (e.g.

P48

per unit of production volume, per facility)

A1.5

Description of measures to mitigate emissions and results achieved

P48

A1.6

Description of how hazardous and non-hazardous wastes are handled, reduction

P48

initiatives and results achieved

General

Policies on the efficient use of resources, including energy, water and other raw

materials.

P49

Disclosure

Resources may be used in production, in storage, transportation, in buildings,

electronic equipment, etc.

A2.1

Direct and/or indirect energy consumption by type (e.g. electricity, gas or oil) in total

P49

A2 Use of

(kWh in '000s) and intensity (e.g. per unit of production volume, per facility)

A2.2

Water consumption in total and intensity (e.g. per unit of production volume, per

P49

Resources

facility)

A2.3

Description of energy use efficiency initiatives and results achieved

P49

A2.4

Description of whether there is any issue in sourcing water that is fit for purpose,

P49

water efficiency initiatives and results achieved

A2.5

Total packaging material used for finished products (in tons) and, if applicable, with

Not

Our clinical research of

drugs do not involve

reference to per unit produced

applicable

packages

A3 The

General

Policies on minimizing the operation's significant impact on the environment and

P48-49

Environment

Disclosure

natural resources

and Natural

A3.1

Description of the significant impacts of activities on the environment and natural

P49

Resources

resources and the actions taken to manage them.

Aspect 4:

General

Policies on identification and mitigation of significant climate-related issues which

/

Disclosure

have impacted, and those which may impact, the issuer.

Climate Change

A4.1

Description of the significant climate-related issues which have impacted, and those

P49

which may impact, the issuer, and the actions taken to manage them.

Aspect

Social

Indicator

Page

Note

Information on:

General

(a) the policies; and

(b) compliance and material non-compliance with relevant standards, rules and

P40-41

B1 Employment

Disclosure

regulations on compensation and dismissal, recruitment and promotion, working

hours, rest periods, equal opportunity, diversity, anti-discrimination, and other

benefits and welfare

B1.1

Total workforce by employment type, age group and geographical region

P40

B1.2

Employee turnover rate by age group and geographical region

P53

HONG KONG STOCK EXCHANGE ESG (ENVIRONMENTAL,

SOCIAL AND GOVERNANCE) REPORTING GUIDE INDEX

We comply with China's

Information on:

laws and regulations,

General

including Work Safety Law

(a) the policies; and

P41

of the People's Republic of

B2 Health and

Disclosure

(b) compliance and material non-compliance with relevant standards, rules and

China, and Prevention and

regulations on providing a safe working environment and protecting employees

Control of Occupational

Safety

from occupational hazards

Diseases Law of the

People's Republic of China

B2.1

Number and rate of work-related fatalities

P53

B2.2

Lost days due to work injury.

/

B2.3

Description of occupational health and safety measures adopted, how they are

P41

implemented and monitored

General

Policies on improving employees' knowledge and skills for discharging duties at

P42-43

B3 Development

Disclosure

work. Description of training activities

B3.1

The percentage of employees trained by employee category (e.g. senior

P43

and Training

management, middle management)

B3.2

The average training hours completed per employee by employee category

P43

General

Information on:

(a) the policies; and

P40

B4 Labor

Disclosure

(b) compliance and material non-compliance with relevant standards, rules and

regulations on preventing child and forced labor

Standards

B4.1

Description of measures to review employment practices to avoid child and forced

P40

labor

B4.2

Description of steps taken to eliminate such practices when discovered

/

No violation

General

Policies on managing environmental and social risks of the supply chain.

P11, P29

Disclosure

B5 Supply Chain

B5.1

Number of suppliers by geographical region

P29

B5.2

Description of practices relating to engaging suppliers, number of suppliers where

P29

Management

the practices are being implemented, how they are implemented and monitored.

B5.3

Description of practices used to identify environmental and social risks along the

P29

supply chain, and how they are implemented and monitored.

B5.4

Description of practices used to promote environmentally preferable products and

P29

services when selecting suppliers, and how they are implemented and monitored.

Information on:

We comply with China's

laws and regulations,

General

(a) the policies; and

P26-29

including Drug

(b) compliance and material non-compliance with relevant standards, rules and

Administration Law of the

Disclosurea

regulations on health and safety, advertising, labelling and privacy matters relating

People's Republic of China,

to products and services provided and methods of redress

and Provisions for Drug

Registration.

B6 Product

B6.1

Percentage of total products sold or shipped subject to recalls for safety and health

/

No such incident

reasons.

Responsibility

B6.2

Number of products and service related complaints received and how they are dealt

P27

with

B6.3

Description of practices relating to observing and protecting intellectual property

P12

rights

B6.4

Description of quality assurance process and recall procedures.

P27-28

B6.5

Description of consumer data protection and privacy policies, how they are

P26

implemented and monitored

General

Information on:

(a) the policies; and

P10-11

Disclosure

(b) compliance and material non-compliance with relevant standards, rules and

B7 Anti-

regulations on bribery, extortion, fraud and money laundering

B7.1

Number of concluded legal cases regarding corrupt practices brought against the

/

No such litigation

corruption

issuer or its employees during the reporting period and the outcomes of the cases.

B7.2

Description of preventive measures and whistle-blowing procedures, how they are

P11

implemented and monitored

B7.3

Description of anti-corruption training provided to directors and staff.

P10-11

General

Policies on community engagement to understand the communities' needs where

P50-51

it operates and to ensure its activities take into consideration the communities'

B8 Community

Disclosure

interests

Investment

B8.1

Focus areas of contribution (e.g. education, environmental concerns, labor needs,

P50-51

health, culture, sport)

B8.2

Resources contributed (e.g. money or time) to the focus area

P53

56

57

TIGERMED

Sustainability Report

GRI (GLOBAL REPORTING INITIATIVE)

INDEX

This report has been prepared in accordance with the GRI Standards: Core option.

Disclosure Items

Page

Note

102-1 Name of the organization

P04

102-2 Activities, brands, products, and services

P04-06

102-3 Location of headquarters

P06

102-4 Location of operations

P06

102-5 Ownership and legal form

P04

Organizational profile

102-6 Markets served

P06

102-7 Scale of the organization

P06,P40

102-8 Information on employees and other workers

P40

102-9 Supply chain

P29

102-10 Significant changes to the organization and its supply chain

P08

102-11 Precautionary Principle or approach

P12

102-13 Membership of associations

P24

Strategy

102-14 Statement from senior decision-maker

P02-03

102-15 Key impacts, risks, and opportunities

P02-03,P12

Ethics and integrity

102-16 Values, principles, standards, and norms of behavior

P06

102-17 Mechanisms for advice and concerns about ethics

P12

102-18 Governance structure

P08

Governance

102-29 Identifying and managing economic, environmental, and social impacts

P14

102-30 Effectiveness of risk management processes

P12

102-31 Review of economic, environmental, and social topics

P14

102-32 Highest governance body's role in sustainability reporting

P13

102-40 List of stakeholder groups

P15

102-42 Identifying and selecting stakeholders

P15

102-43 Approach to stakeholder engagement

P15

102-44 Key topics and concerns raised

P15

102-46 Defining report content and topic Boundaries

P15,P60

102-47 List of material topics

P15

102-48 Restatements of information

No restatements of

Stakeholder engagement

information

102-49 Changes in reporting

No significant

changes

102-50 Reporting period

P60

102-51 Date of most recent report

P60

102-52 Reporting cycle

P60

102-53 Contact point for questions regarding the report

P60

102-54 Claims of reporting in accordance with the GRI Standards

P58

102-55 GRI content index

P58

GRI (GLOBAL REPORTING INITIATIVE) INDEX

Disclosure Items

Page

Note

GRI 200 Economic

GRI 103 Management Approach

P8-12,P22-29

GRI 201 Economic

201-1 Direct economic value generated and distributed

P52

Performance

201-3 Defined benefit plan obligations and other retirement plans

P41,P43

GRI 203 Indirect Economic

203-2 Significant indirect economic impacts

P51

GRI 103 Management Approach

P10-11

GRI 205 Anti-corruption

205-2 Communication and training about anti-corruption policies and

P10-11

procedures

205-3 Confirmed incidents of corruption and actions taken

No corruption

GRI 206 Anti-competitive

206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly

No such litigation

Behavior

practices

GRI 300 Environment

GRI 103 Management Approach

P48-49

GRI 302 Energy

302-1 Energy consumption within the organization

P49

GRI 303 Water

303-1 Water withdrawal by source

P49

303-2 Water sources significantly affected by withdrawal of water

P49

No such influence

305-1 Direct (Scope 1) GHG emissions

P49

GRI 305 Emissions

305-2 Energy indirect (Scope 2) GHG emissions

P49

305-5 Reduction of GHG emissions

P49

305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air

P53

emissions

GRI 306 Effluents and Waste

306-2 Waste by type and disposal method

P48

306-3 Significant spills

No significant spills

GRI 307 Environmental

307-1Non-compliance with environmental laws and regulations

No violation

Compliance

GRI 400 Society

GRI 103 Management Approach

P38-44,P50-51

GRI 401 Employment

401-1 New employee hires and employee turnover

P53

401-2 Benefits provided to full-time employees that are not provided to

P40-43

temporary or part-time employees

GRI 404 Training and

404-1 Average hours of training per year per employee

P43

404-2 Programs for upgrading employee skills and transition assistance

Education

P42-43

programs

GRI 405 Diversity and Equal

GRI 103 Management Approach

P40

405-1 Diversity of governance bodies and employees

P40

Opportunity

405-2 Ratio of basic salary and remuneration of women to men

P41

GRI 406 Non-discrimination

406-1 Incidents of discrimination and corrective actions taken

No discrimination

GRI 408 Child Labor

408-1 Operations and suppliers at significant risk for incidents of child labor

No such incident

GRI 409 Forced or

409-1 Operations and suppliers at significant risk for incidents of forced or

No such incident

Compulsory Labor

compulsory labor

GRI 411 Rights of Indigenous

411-1 Incidents of violations involving rights of indigenous peoples

P10

No such incident

Peoples

GRI 413 Local Communities

GRI 103 Management Approach

P45,P5-51

413-2 Operations with significant actual and potential negative impacts on local

No such location of

communities

operations

GRI 414 Supplier Social

414-1 New suppliers that were screened using social criteria

P11

Assessment

GRI 417 Marketing and

417-1 Requirements for product and service information and labeling

P26

417-2 Incidents of non-compliance concerning product and service information

No such incident

Labeling

and labeling

417-3 Incidents of non-compliance concerning marketing communications

No such incident

GRI 419 Socioeconomic

GRI 103 Management Approach

P10-12

419-1Non-compliance with laws and regulations in the social and economic

Compliance

No violation

area

58

59

TIGERMED

Sustainability Report

ABOUT

THIS REPORT

Reporting Period

The time frame for the report is January 1 to December 31, 2019, though some contents may extend beyond the stated reporting period.

Release Cycle

The report is released annually. And the first social responsibility report was released on August 22, 2019.

Reporting Boundary

This report covers Tigermed's headquarters and subsidiaries. For the convenience of readers, "Hangzhou Tigermed Consulting Co., Ltd." is also referred to as "Tigermed", "the Company" and "we" in the report. "Hangzhou Simo Co., Ltd." is referred to as "Hangzhou Simo". "MacroStat (China) Clinical Research Co., Ltd." is referred to as "MacroStat". "Jiaxing Tigermed Data Management Co., Ltd." is referred to as "Jiaxing Tigermed". "Jiaxing Clinflash Computer Technology Co., Ltd." is referred to as "Jiaxing Clinflash". "Hangzhou Talent MedConsulting Co., Ltd." is referred to as "Talent MedConsulting". "Frontage Laboratories, Inc." is referred to as "Frontage Laboratories". "Fantastic Bioimaging Co., Ltd." is referred to as "Fantastic Bioimaging", and "Teddy Clinical Research Laboratory (Shanghai) Limited" is referred to as "Shanghai Teddy".

Reporting Commitment

Tigermed assures that the report contains no false records, misleading information or material omission, and is responsible for the authenticity, accuracy, and integrity of its content.

Data Sources

Data in the report is mainly from the statistical reports and official documents of Tigermed from January 1 to December 31, 2019.

Compilation Conformance

This report is compiled in accordance with the ISO 26000: Guidance on Social Responsibility, the GRI Sustainability Reporting Standards (GRI Standards) issued by Global Sustainability Standard Board (GSSB) and the Environmental, Social and Governance Reporting Guide (ESG Guide) formulated by Hong Kong Stock Exchange.

Contact Us

Corporate Social Responsibility Department, Tigermed

EmailCSR@tigermedgrp.com

For more information about Tigermed's CSR practices, please go to https://tigermedgrp.com/

Note: Tigermed's headquarters (Hangzhou) relocation is estimated to be completed by the end of

Scan the QR code to give

August 2020. Please refer to our official website for the new address.

feedback on the report.

60

Disclaimer

Hangzhou Tigermed Consulting Co. Ltd. published this content on 10 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2020 09:23:12 UTC


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Xiao Ping Ye Chairman & General Manager
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