Sino Biopharmaceutical : 2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

(Incorporated in the Cayman Islands with Limited Liability) (Stock Code: 1177)

Environmental, Social and Governance Report

ABOUT THIS REPORT

This is the environmental, social and governance ("ESG") report (the "Report") publicly disclosed by Sino Biopharmaceutical Limited. It aims to fully and truly present the management practice and performance of Sino Biopharmaceutical Limited in the ESG aspects in 2023 to its major stakeholders including shareholders, employees, regulatory bodies, customers, partners and the public. The Report follows the four reporting principles of materiality, quantitative, balance and consistency.

Basis of Preparation

This Report has been prepared based on the Environmental, Social and Governance Reporting Guide (the "ESG Reporting Guide"), Appendix C2 to the Main Board Listing Rules of the Stock Exchange of Hong Kong, with reference to the Global Reporting Initiative Standards (GRI Standards) of the Global Sustainability Standards Board (GSSB), the IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information, the IFRS S2 Climate-related Disclosures, the Ten Principles of the United Nations Global Compact (UNGC), the UN's 2030 Agenda for Sustainable Development and its 17 Sustainable Development Goals (SDGs). Please refer to the "Corporate Governance Report" section of the Annual Report 2023 of Sino Biopharmaceutical Limited for details of the Company's corporate governance efforts in 2023.

Reporting Scope

Unless otherwise specified, the scope of disclosure in this Report is consistent with the 2023 Annual Report of Sino Biopharmaceutical Limited.

Source of Information

The key financial data in this Report is extracted from the 2023 Annual Report of Sino Biopharmaceutical Limited which is disclosed by Sino Biopharmaceutical on the websites of the Stock Exchange of Hong Kong and the Company, and other information and data are sourced from the internal management documents and relevant records of the Group. Unless otherwise specified, the currency for denomination in this Report is Renminbi ("RMB").

After comprehensive consideration of factors such as the proportion of operating income contributed by and the Group's shareholdings in the member companies, we selected 6 major member companies, such as Chia Tai Tianqing Pharmaceutical Group Co., Ltd., as the presentation subjects of the relevant policies, working mechanisms and specific cases relating to various ESG issues. The names of the 6 member companies can be seen in the "Abbreviations" section.

This Report has been entrusted to the independent third-party certification body, the British Standards Institution Management Systems Certification (Beijing) Co., Ltd., to verify its authenticity and provide an independent assurance opinion statement. For more details, please refer to Appendix I.

Reporting Period

From 1 January 2023 to 31 December 2023. Some content can be traced back to historical information.

Abbreviations

For the convenience of presentation and reading, Sino Biopharmaceutical Limited and companies within its scope of consolidation are referred to as the "Group", "Sino Biopharmaceutical", "we" or "us" in this Report.

In this Report, the subsidiaries of Sino Biopharmaceutical are referred to as "member companies", which mainly include Chia Tai Tianqing Pharmaceutical Group Co., Ltd. ("CT Tianqing"), Beijing Tide Pharmaceutical Co., Ltd. ("Beijing Tide"), Nanjing Chia Tai Tianqing Pharmaceutical Co., Ltd. ("NJCTT"), CP Pharmaceutical Qingdao Co., Ltd. ("CP Pharmaceutical (Qingdao)"), Jiangsu Chia Tai Fenghai Pharmaceutical Co., Ltd. ("CT Fenghai") and Jiangsu Chia Tai Qingjiang Pharmaceutical Co., Ltd. ("CT Qingjiang").

Availability of the Report

You may visit the website of the Sino Biopharmaceutical or the Stock Exchange of Hong Kong to browse or download the Chinese and English versions of this Report. If there is any discrepancy in the interpretations of the versions, the Chinese version shall prevail.

CONTENTS

ABOUT THIS REPORT	1
CHAIRWOMAN'S STATEMENT	4
CEO'S STATEMENT	6
ABOUT SINO BIOPHARMACEUTICAL	8

ESG Governance			01 Corporate Governance
Board Statement	14			Fulfillment of Responsibilities by the Board	24
ESG Governance Structure	16			Enterprise Risk Management	26
Progress of Key ESG Work in 2023	18
Analysis of ESG Materiality Issues	20

04 Inclusive Health			05 Product Responsibility
	Innovative R&D	68			Quality Management System	84
	Protection of Intellectual Property Rights	74		Production Quality Management	86
	Healthcare Accessibility	74		Operational Quality Management	90
					Building a Quality Culture	92

02

06

Compliance Operation	03
Special Report: Responsible Supply Chain
Construction Project	30
Business Ethics	36
Information Security	44

Responsible Employer	07
Employee Rights Protection	96
Talent Management System	100
Employee Communication	112
Employee Care and Benefits	115
Occupational Health and Safety	118

Appendices

130

Environmental Protection

Special Report I: Climate Change
Response Project	50
Special Report II: Waste Management Project	56
Environmental Management System	60
Pollutant Prevention and Control	63
Resource Utilisation Management	64
Biodiversity Conservation	65

Social Contributions

Social Welfare

122

ESG Governance

Corporate Governance

Compliance Operation

Environmental Protection

CHAIRWOMAN'S STATEMENT

In 2022, Sino Biopharmaceutical officially released the "CARE" ESG strategy, which clearly defines "Cure, Accessible, Relationship and Environmental" as the four key ESG areas. Guided by the strategy, we have promoted the close integration of ESG principles into our development strategies. We look forward to working with partners from all sectors to create a high-quality, sustainable development model.

2023 was the inaugural year for Sino Biopharmaceutical to fully implement the "CARE" strategy. We systematically introduced a number of ESG management practices focusing on the needs in the areas of disease treatment, medication, partner growth and environmental stewardship. We are delighted that our efforts have achieved satisfactory progress, which has not only achieved continuous improvement in several key international ESG ratings, but also attracted extensive attention, response and recognition from partners and stakeholders across various sectors. I am pleased to take this opportunity to share with you the progress Sino Biopharmaceutical has made in the ESG realm over the past year, as well as our reflections, initiatives and commitments in the process.

We deeply recognize that our interpretation of the perception of ESG determines our ability to achieve its true value. At Sino Biopharmaceutical, our mission and vision serve as the primary pillars of our growth, embodying our core values and long-term goals. ESG, on the other hand, acts as a vital connector, fostering cohesion around these pillars, linking us with the environment and society and maintaining a harmonious balance among the three to generate sustained vitality collectively.

Ms. Tse, Theresa Y Y

Chairwoman of Sino Biopharmaceutical Limited

"We eagerly anticipate that, along with the continuous implementation of our "CARE" strategies, Sino Biopharmaceutical will grow hand in hand with partners across all sectors to fulfil our corporate mission of science for a healthier world."

4

Inclusive Health

Product Responsibility

Responsible Employer

Social Contributions

We fulfil our commitment to patients, comprehensive innovation strategy is yielding remarkable results. "Science for a healthier world" epitomizes Sino Biopharmaceutical's commitment to patients, with continuous innovation to address clinical needs at the core of our mission. In 2023, we launched 27 new medicines, including flagship products such as Limaprost Tablets and Recombinant Human Coagulation Factor VIII. Many of these products were first-in-class innovative drugs or first-to- market generic drugs, swiftly filling crucial gaps in medication for domestic patients. Meanwhile, we remained steadfast in our goal to be the best Chinese partner for multinational pharmaceutical companies. Our BD business grew rapidly, securing a number of high-profile projects and establishing a wider cooperation network with innovative pharmaceutical companies around the world. Furthermore, we have established closer cooperation with many prominent medical institutions and universities in China. Our global R&D centre and overseas pharmaceutical innovation centre were established in Shanghai and Guangzhou, laying a solid foundation for the commercialization of scientific and technological achievements, the expansion of clinical research, and the iterative upgrading of the industry.

We fulfil our commitment to nature, steady progress has

been made toward our goal of low-carbon transformation. As a responsible corporate citizen, we have committed to green development, promote low-carbon transformation, combat climate change, and actively engage in biodiversity conservation for the betterment of future generations. In 2023, the Group's efforts in low-carbon transition expanded to R&D area and the industrial chain, to green the entire product lifecycle that would span R&D, procurement, manufacturing and sales. Our annual investment in environmental protection exceeded RMB97 million. Consequently, we achieved a 13% reduction in GHG emission density compared to the benchmark year, witnessed a 76.64% surge in clean energy consumption from the previous year, and decreased packaging material consumption by 5% compared to the previous year. Besides, we completed carbon inventories of two pilot units and identified emission reduction opportunities throughout the process. These initiatives laid a solid foundation for the strategic planning of the Group's path towards carbon neutrality.

We fulfil our commitment to employees, talent pool is continuously optimized. For Sino Biopharmaceutical, employees are not only the most valuable assets, but also the long-term teammates, who we would working with us for the next five, ten and even twenty years. "Providing excellent experience and constantly empowering employees to grow" is our commitment. In 2023, we put forward a concept of talent development with "inheritance" as its core. We officially released the Employee Development Policy of Sino Biopharmaceutical, which emphasises the comprehensive transfer of knowledge, technology, experience and culture between new and seasoned employees. This initiative would rejuvenate our talent pool, while effectively safeguarding the rights and interests of all employees. Through these efforts, we aimed to perpetuate the corporate ethos of "Three Benefits Principle".

We fulfil our commitment to society, the welfare of public is always considered as a priority. We recognize that the value of a company stems from the needs and acknowledgment of society, and our growth is intertwined with the development and support of our community. Sino Biopharmaceutical's dedication to society is demonstrated through our unwavering commitment to positively impact the community over the long term. In 2023, the Group actively engaged in a number of major national strategic programmes such as the Belt and Road Initiative (BRI) and the construction of the Guangdong-HongKong-Macao Greater Bay Area. Additionally, in the wake of the Gansu earthquake and the heavy rainstorms in the Beijing-Tianjin-Hebei region, we promptly extended assistance by donating funds and medicines to the affected areas, thus fulfilling our corporate responsibility with tangible actions. Over the past year, Sino Biopharmaceutical invested RMB56,777,400 in public welfare endeavours, with 4,196 employees participating in public welfare activities that lasted 5,195.5 hours in total.

The most fitting homage to history is to pen a new chapter. This ESG report stands as Sino Biopharmaceutical's annual testament to its mission, achieved with the collective efforts over 25,880 employees. We review the past through this report and commit to realizing the future through our actions. Sustainable development has emerged as a universally resonant global theme, and Sino Biopharmaceutical will remain steadfast in its mission, collaborating with partners to create value beyond business, further contribute to the high-quality development of China's pharmaceutical industry, while striving to building a global community of health for all.

5

ESG Governance

Corporate Governance

Compliance Operation

Environmental Protection

CEO'S STATEMENT

China is ascending from a pharmaceutical giant to a pharmaceutical powerhouse, with its ecosystem of pharmaceutical innovation rapidly advancing onto the world stage. This shift prompts companies to adopt all-inclusive approaches and continually refine their strategies. One notable exploration is the progressive integration of ESG principles into corporate strategies, a step we are actively pursuing.

In recent years, our focus has evolved from concentrating on the four major therapeutic areas to fully implementing the four core strategies, and now to gradually integrating the "CARE" ESG strategy. Through this journey, we have been exploring ways to build a more vigorous and sustainable organization, with the aspiration of becoming a century-old brand.

While building core competitiveness for the long term, we will continue to accumulate experience in sustainable development and prioritize ESG management as a fundamental driver of our robust operation. This pursuit aims to generate both innovative value and social value simultaneously.

In 2023, the year when the "CARE" strategy became deeply integrated into our operations, Sino Biopharmaceutical pushed forward the four strategies of "organizational integration, comprehensive innovation, internationalization, and digitalization". This provided a fertile ground for the implementation of a number of ESG management practices aligned with the "CARE" ESG strategy in terms of operational mechanisms, organizational culture, and development pathways.

Mr. Tse, Eric S Y

CEO of Sino Biopharmaceutical Limited

6

Inclusive Health

Product Responsibility

Responsible Employer

Social Contributions

Organizational integration has been implemented comprehensively, which accelerates the improvement of ESG management efficiency. Instead of merely structural adjustment, Organizational integration is a process aimed at promoting the group-wide sharing of resources to achieve optimal resource allocation and business focus. In 2023, Sino Biopharmaceutical successively implemented group-wide integration in various business areas, including BD, digital innovation, intellectual property rights, retail, procurement and auditing. In the process, unified management and comprehensive coordination were attained to dismantle organizational barriers and unleash maximum efficiency. These initiatives have laid a solid foundation for the Group to promote management practices such as "Carbon Neutral Goal and Pathways Planning Project" and "Responsible Supply Chain Construction Project" from top to bottom. On this basis, the Group in 2023 completed identifying carbon reduction opportunities for pilot units towards carbon neutrality and rigorously implemented ESG risk management measures tailored for the supply chain across member companies.

Focused on innovation and internationalization to meet patients' needs and promote pharmaceutical accessibility. Sino Biopharmaceutical has continued to expand its innovation roadmap by increasing R&D investment around the four key therapeutic areas of oncology, liver diseases, respiratory system, and surgery/ analgesia to develop new targets, technologies, and platforms. In 2023, we invested RMB4.4 billion in R&D efforts, ranking our R&D pipeline 15th globally. As a result, a number of clinically needed innovative products would enter a period of intensive yield. Sino Biopharmaceutical is also one of the earliest leading Chinese pharmaceutical companies to engage in overseas operations, having long established a dual-cycle development strategy of "In China for Global" and "In Global for Global". In 2023, with a commitment to open-minded and mutually beneficial cooperation, the Group concluded a host of projects such as the F-STAR deal. Looking ahead, by sharing resources with the world's top partners, we will advance the core issues of "Cure" and "Accessible". This approach ensures that Chinese patients can more quickly and effectively benefit from global innovations, enhancing the health of numerous families.

Digitalisation strategy is being promoted extensively to facilitate business development and management reform across Sino Biopharmaceutical. The latest technological revolution has significantly accelerated the pace of industrial change. In this evolving landscape, emerging digital technologies represented by 5G, artificial intelligence and blockchain are rapidly reshaping the development trajectory of China's biopharmaceutical industry. In 2023, the Group closely integrated digital technologies into business operations, and tapped deep into key areas such as marketing, supply chain, R&D, production, corporate management and ESG by efficiently allocating resources, to continuously enhance the business support capabilities with digital means. Driven by this strategic focus, the ESG management of Sino Biopharmaceutical has accelerated into the digital phase. The Intelligent ESG Management Platform, which covers the entire Group and its subsidiaries, leverages digital technology and tools to precisely manage ESG data, optimise management processes, reduce operating costs and boost ESG decision-making capabilities.

There's a long journey ahead, and it's time to forge forward. Sustainable development has become a universal theme across the globe. Sino Biopharmaceutical remains committed to the business philosophy of the "Three Benefits principle", promoting deep integration of the concept of sustainable development with our core business strategies. We aim to encourage all levels of management to place equal emphasis on commercial value and social value, collaborating with partners from various sectors to achieve breakthroughs in innovation, pharmaceutical accessibility, integration of upstream and downstream industry chains, talent training, public welfare initiatives and environmental friendliness, with the goal of creating a sustainable future.

7

ESG Governance

Corporate Governance

Compliance Operation

Environmental Protection

ABOUT SINO BIOPHARMACEUTICAL

Corporate Culture

With the mission of "Science for a healthier world", Sino Biopharmaceutical is committed to accelerating research and development (R&D) innovation and employing cutting-edge technology to provide patients with diversified and affordable treatment solutions of better quality. Our goal is to enhance the quality of life of patients and protect their dignity of life through tangible actions.

We believe that our commitment to serving patients, focusing on R&D innovation and carrying out our mission will ultimately lead us to our vision of becoming a leading global pharmaceutical company.

Science for a healthier world

Our Vision

To be a leading global pharmaceutical company through delivering innovative therapies for patients.

Our Values

Integrity

Foresight

Innovation

Commitment

Efficiency

Collaboration

8

Inclusive Health

Product Responsibility

Responsible Employer

Social Contributions

Group Profile

Sino Biopharmaceutical Limited together with its subsidiaries ("Sino Biopharmaceutical" or the "Group") is a leading, innovative and R&D driven pharmaceutical conglomerate in the People's Republic of China ("China" or "PRC"). Our business encompasses a fully integrated chain in pharmaceutical products which covers an array of R&D platforms, a line-up of intelligent production and a strong sales system. The Group's products have gained a competitive foothold in various therapeutic categories with promising potentials, comprising a variety of biopharmaceutical and chemical medicines for tumors, liver diseases, respiratory system diseases and surgery/ analgesia.

Sino Biopharmaceutical aims to become a world-class innovative pharmaceutical group. To this end, we have established four core strategies of "comprehensive innovation, internationalisation, organisational integration and digitalisation"

from 2022 onwards. In 2023, the Group further promoted corporate development and reform around these four core strategies. We have maintained our investment in the R&D of new original drugs, expedited the construction of global R&D centres and overseas pharmaceutical innovation centres, and sped up the launch of major products in the pipeline. During the year, the Group successfully launch 27 drugs, including two innovative drugs and four biosimilars including Limaprost Tablets and Recombinant Human Coagulation Factor VIII for Injection, etc. The Group's internationalisation strategy has continued to make considerable advancements, further broadening our network of cooperation with global innovative pharmaceutical companies to expand our international business presence at a faster pace. Within the Group, we have continually optimised our organisational structure and expanded the development and application of digital operation systems and scenarios, injecting new momentum into our development and transformation efforts.

Organisational

Structure of the

Group

Chia Tai Tianqing

Pharmaceutical

Group Co., Ltd. (PRC)

R&D, Manufacture &

Sale

Beijing Tide Pharmaceutical

InvoX Pharma Limited (UK)

Co., Ltd. (PRC)R&D R&D, Manufacture & Sale

9