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Tonghua Dongbao 2025 Sustainability Report

Shanghai Stock Exchange

2026/04/20

Tonghua Dongbao Pharmaceutical Co., Ltd. 600867

2025 Annual Sustainability Report

Report Description

About this report

This report is the "2025 Sustainability Report" published by Tonghua Dongbao Pharmaceutical Co., Ltd. (hereinafter referred to as "Tonghua Dongbao" and the "Company"). The Company is a voluntary disclosure entity.

time range

From January 1, 2025 to December 31, 2025, in order to enhance the comparability and completeness of the report, some content is appropriately traced back to previous years.

Reporting scope

This report is based on Tonghua Dongbao Pharmaceutical Co., Ltd. and covers Tonghua Dongbao and its subsidiaries. Unless otherwise specified, the scope of this report is consistent with the scope of the Company's annual report.

Compilation basis

This report mainly complies with the Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 14.

⸺

"Sustainable Development Report (Trial)", compiled based on the analysis results of the company's major issues. anaphora

For ease of presentation and reading, Tonghua Dongbao Pharmaceutical Co., Ltd. in the report is referred to as "Tonghua Dongbao", "Dongbao", "Company" and "we" according to the specific circumstances of the text.

Data description

All information and data quoted in this report come from the company's official documents, statistical reports and financial reports. The material of this report is provided by Tonghua Dongbao and its partners. It is only used for disclosure of the sustainable development management progress of Tonghua Dongbao and is not used for commercial purposes. The financial data in this report are in RMB. In the event of any inconsistency with the financial report, the financial report shall prevail.

Report acquisition

The electronic version of this report can be viewed and downloaded from the Shanghai Stock Exchange website (www.sse.com.cn).

1. Enter Tonghua Dongbao

(1) Company profile

Tonghua Dongbao Pharmaceutical Co., Ltd. was founded in 1985 In 2016, it is a well-known domestic pharmaceutical manufacturer integrating pharmaceutical research and development, production and sales. It mainly develops Chinese patent medicines, chemical medicines and biological products. Its main products include Zhennaoning Capsules, Dongbao Gantai Tablets and Repaglinide Tablets - "Tang Jie" "Rui", empagliflozin tablets - "Tang Jien", human insulin - "Gansulin", insulin glargine - "Pingsulin", insulin aspart - "Ruisulin", liraglutide injection - "Tongboli" and other series of products. In August 1994, the company was listed on the Shanghai Stock Exchange.

Over the years, the company has adhered to the development concept of "adhering to independent innovation and creating world brands" and established a scientific and technological R&D team dedicated to the research and development of drugs in the treatment of diabetes and other fields. In 1998, China successfully developed my country's first recombinant human insulin - "Gansulin", which not only filled the domestic gap, but also made my country the third country in the world to produce recombinant human insulin after the United States and Denmark. It changed my country's long-term dependence on foreign imports for recombinant human insulin. This achievement won the second prize of the National Science and Technology Progress Award and was selected as one of the "Top Ten Science and Technology Progress News in China in 1998". The company has successively won the titles of National Technological Innovation Demonstration Enterprise and National High-tech Enterprise. The trademarks "Dongbao" and "Gan Shulin" were recognized as well-known trademarks in China in 2002 and 2013 respectively.

In June 2008, it completed the transformation of technological achievements into recombinant human insulin API with an annual output of 3,000 kilograms, becoming the first domestic biopharmaceutical company to pass EU cGMP certification. In 2012, we invested in the construction of the third phase project of recombinant human insulin injection. In 2014, we invested in the construction of insulin glargine and insulin aspart production lines. The company's current designed production capacity of insulin preparations exceeds 300 million units. In 2016, we began to invest in the construction of the Dongbao Biopharmaceutical Industrial Park, which includes: Tonghua Dongbao Pharmaceutical Research Institute, quality inspection center, insulin degludec, liraglutide API and injection production base, sewage treatment station, acetonitrile recycling workshop, etc. Tonghua Dongbao Pharmaceutical Research Institute has been officially put into use in March 2021.

Currently, the company's insulin analogs - insulin glargine, insulin aspart and premixed insulin aspart 30 and 50 injections have been launched on the market in 2020, 2021 and 2022 respectively. The GLP-1 receptor agonist liraglutide injection was approved for marketing in December 2023. In February 2026, Semaglutide Injection (THDB0225 Injection) completed the clinical trial summary report and submitted a Pre-NDA application. The relevant information for the NDA application is currently being prepared. In December 2025, all cases of insulin degludec and liraglutide injection have been enrolled, and clinical observation is currently underway smoothly. Four oral hypoglycemic drugs, sitagliptin phosphate tablets, sitagliptin metformin tablets, repaglinide tablets, and empagliflozin APIs and tablets, have obtained drug registration certificates. Among them, repaglinide, sitagliptin phosphate tablets, and empagliflozin tablets have been put on the market. In addition, etoricoxib tablets received marketing approval in January 2025.

The company currently has multiple Class I new drugs, namely three innovative drugs in the treatment of diabetes and one innovative drug in the treatment of gout. Among them, the phase IIa clinical trial results of the industry's first dual-target gout inhibitor (THDBH151 tablets), a new drug in the field of gout treatment, reached the primary endpoint in April 2025. In addition, the Phase Ib clinical trials of the GLP-1/GIP dual-target receptor agonist (THDBH120 for injection) for hypoglycemic and weight loss indications both obtained positive top-line results in February 2025. Currently, all cases have been enrolled in the Phase II clinical trials for weight loss indications and are currently in the case visit stage.

Tonghua Dongbao steadily promotes the development of its international strategy, giving full play to the advantages of Tonghua Dongbao's insulin industrialization and multiple varieties. While basing itself on the domestic market, it further explores the international market and builds an international work system. It has established Tonghua Dongbao's international registration department and overseas sales team to systematically carry out international business cooperation. It has established business contacts with customers in key regions such as Southeast Asia, the Middle East and East Asia, South America and Africa, and has strategic cooperation with many well-known domestic companies to jointly develop markets and participate in international competition. The US BLA of insulin aspart was accepted by the FDA and is currently in the official application review stage; the EU MAA of insulin aspart was accepted by the EMA and approved for marketing in Indonesia and the Dominican Republic; insulin glargine was approved for marketing in Myanmar; the company's human insulin API production facilities have passed the European Medicines Agency (EMA) on-site inspection, comply with the requirements of EU GMP regulations, and meet the conditions for commercial production in the EU; human insulin injection has been approved for marketing in Uzbekistan and Nicaragua, and has obtained the Malaysian GMP certificate. Liraglutide injection has completed the submission of registration application documents in many countries, and has undergone GMP on-site audits by the Egyptian Ministry of Health, passed Brazilian GMP on-site audits, and obtained Colombian GMP certificates. It was successfully approved for listing in Peru, laying a solid foundation for the company to explore overseas markets. .

In the future, the company will continue to adhere to the development concept of "adhering to independent innovation and creating world brands", seize the favorable opportunities when the country encourages innovative drugs and biopharmaceuticals, drive scientific and technological innovation, continuously improve the research and development capabilities of biopharmaceuticals, accelerate the pace of transformation of technological achievements, and make new and greater contributions to human health.

(2) Corporate culture

Enterprise development philosophy - adhere to independent innovation and create world brands;

Corporate Vision——Explorer and leader of innovative pharmaceutical research and development in the field of endocrinology

Corporate Values---Innovation, Focus, Integrity, Benevolence, Inclusion and Innovation-Leading the Future

Focus - creates quality

Integrity-the foundation

Benevolence-gathering strength

Inclusiveness - Think globally

Corporate mission----Listen to the voice of health and wellness and explore the beauty of life

(3) Key performance in 2025

A total of 5 shareholders' meetings were held, 7 board of directors issued 4 regular reports, 87 temporary announcements were issued, and 3 performance briefings were held.

Answered more than 110 questions from investors in total

No corruption-related violations occurred

259 patents were applied for (a year-on-year increase of approximately 28.86%), and 152 valid patents were authorized (a year-on-year increase of approximately 18.75%)

No product recalls occurred

Female employees account for about 40%

Invested RMB 21.0739 million in environmental protection funds

Reduce more than 12,000 tons of carbon dioxide equivalent

The three waste emission qualification rate is 100%

No environmental pollution incidents or environmental administrative penalties have occurred. Passed ISO14001 environmental management system audit.

Governance: Standardize corporate governance and promote the company's high-quality development to a new level. Good corporate governance is the internal driving force for enterprises to achieve high-quality and sustainable development, and is also an important soft power for companies to achieve high-quality development. During the reporting period, the company continued to build a solid foundation for party building, strengthened awareness of standardized operations, enhanced anti-corruption awareness, and contributed to a good corporate image.

(1) Sustainable development governance

The company adheres to the concept of sustainable development, deeply integrates ESG management into all aspects of daily business decision-making, and comprehensively creates a sustainable development structure that integrates commercial value realization, ecological environment protection, and improvement of people's livelihood and well-being. Through overall planning of strategic layout and promotion plans, on the basis of effectively protecting the rights and interests of investors and enhancing market competitive advantages, we actively promote win-win collaboration among all stakeholders, and ultimately achieve multi-dimensional balanced development of economic performance, social value and ecological benefits.

(2) Stakeholder participation

interests

Responses to expectations and requirements

interested parties

Correspond to the government's macro policies, effectively implement the company's development goals, strategies and plans, and increase market value. The government actively develops high-tech industrial projects, actively promotes innovative development and transformational development, builds a comprehensive health industry, actively pays taxes to the government, actively promotes local labor employment, and makes unremitting efforts to maintain social stability. Improve the corporate governance structure, establish a modern enterprise with clear property rights, democratic decision-making, clear rights and responsibilities, scientific management, and a complete corporate shareholder governance structure, and enhance the enterprise's scientific decision-making ability and standardized operation level. Continue to create value returns for shareholders, reduce corporate operating risks, and disclose information promptly and accurately

We will continue to provide customers with high-quality, safe and efficient products, improve service quality, continuously strengthen independent innovation, and develop products that satisfy the masses and are of high quality and low price. Pay close attention to the source of pharmaceutical production and strictly prevent and control customers of unqualified raw materials and excipients

It flows into the production process and further strictly controls the procurement of raw and auxiliary materials to ensure the production of high-quality products.

Build a platform for employee development, create opportunities, improve employee incentive mechanisms, stimulate employees' potential, form a virtuous circle, and continuously increase employee income. Protect employees’ rights and interests and provide employees with safe and comfortable working conditions

working environment. Strengthen the cultivation of employees' ideological and moral sentiments, strengthen the education of socialist values, develop a corporate culture with "Dongbao people" characteristics, and create a workforce with both ability and political integrity.

We should shoulder social responsibilities, strengthen the supervision and management of drug production and sales, produce and sell safe and reliable drugs that the people can rest assured and satisfy society, and shoulder the important responsibility of people's drug safety. Actively participate in public welfare undertakings, strengthen community services, improve communication channels with all sectors of society, and commit to regional prosperity and stability.

Create comprehensive health industry projects and strive to develop green, energy-saving and environmentally friendly industrial projects, develop high-tech, high value-added products, strengthen the construction of the internal environment of the enterprise and the construction of the surrounding environment, actively implement the spirit of General Secretary Xi’s instructions of "green environment, clear waters and mountains of gold and silver", actively participate in the implementation of government plans related to environmental construction, ecological civilization construction, etc., strengthen the construction of macro-environment and micro-environment, and set a model for local environment construction

Play a leading role and benefit the people and future generations.

(3) Assessment and analysis of important issues

Tonghua Dongbao fully considers industry development trends and its own business operating characteristics, and deeply understands the importance of evaluating and identifying key factors affecting the company's long-term development to improve financial performance, enhance social influence, and enhance corporate competitiveness. Through an in-depth analysis of the company's business background and actual development, and combined with the disclosure requirements of the Shanghai Stock Exchange, a list of issues was identified and established.

Materiality issue assessment process:

Background analysis and initial identification of issues: Analyze the company’s business model, operating characteristics, industry environment and major stakeholder groups, and clarify the background and boundaries of the assessment.
Establish a preliminary list of topics: Integrate industry benchmarks, regulatory guidelines and the company's own operating realities to screen and refine topics to form a comprehensive preliminary topic pool.
Dual importance assessment: (1) Impact importance assessment: For impact importance, consider whether the performance in the corresponding issue dimension will have actual or potential significant impact on the economy, society and environment, and form an assessment conclusion on the impact importance of the issue through analysis. (2) Financial impact importance assessment: Evaluate the multi-dimensional impact that each issue may have on the company's revenue, costs, assets and valuation, and analyze its impact path and potential scale on the company's financial performance in the short, medium and long term.
Integrated analysis and issue confirmation: Comprehensive evaluation results of impact importance and financial importance, and determine dual importance issues that are of great significance to the company's sustainable development.

In 2025, the company has identified a total of 20 issues, among which innovative research and development and product quality management are issues of financial importance. For issues of financial importance, we refer to the guidelines and requirements of the Shanghai Stock Exchange and conduct analysis from four aspects: governance, strategy, risk and opportunity management, indicators and goals, establish a governance system, set strategic goals, effectively manage and control risks, and continue to strengthen the company's sustainable development management. For details on the management of this financially material issue, please refer to the relevant section of the “Social Section” of this report.

2025 Tonghua Dongbao Importance Issue Assessment Results

Dimension Serial Number Issue Dimension Serial Number Issue

1 Environmental stewardship 4 Product affordability 2 Addressing climate change 5 Intellectual property

3 Pollutant emission management 6 Employee education and training environment 4 Energy management Society 7 Employee rights and benefits 5 Circular economy 8 Supply chain management

6 Water Resources Management 9 Rural Revitalization

7 Biodiversity 10 Privacy protection

1 Innovative R&D 1 Corporate Governance and Compliance Management Society 2 Product Quality and Safety Governance 2 Stakeholder Communication 3 Product Accessibility 3 Business Ethics

In the future, the company will continue to track key variables such as industry trends, regulatory trends, and stakeholder concerns, and at the same time, combined with its own business development, continue to strengthen the management of financially important issues.

(4) Strengthen organizational construction and build a solid foundation for party building

In accordance with the requirements of the Party Constitution, the company's Party Committee gives full play to the leading role of party building, always integrates party organization building into corporate operations, and uses party building activities to promote corporate development. We must persist in giving full play to the party's political core and political leading role, pay attention to the ideological and political construction of party members, continue to improve the quality of party members themselves, and give full play to the vanguard and exemplary role of party members.

After study at the general party branch work meeting in 2025, 51 activists were recruited. Currently, the company's general party branch has a total of 176 party members, including 0 floating party members and 51 activists. Throughout the year, a total of 6 important party member education series activities were carried out focusing on the main responsibilities of the enterprise and the construction of spiritual civilization. The majority of party members and activists actively participated and received an enthusiastic response.

(5) Organizational structure

Tonghua Dongbao takes the initiative to seek change, actively promotes the company's innovation and transformation, organically integrates corporate governance with production and operation work, and based on standardized governance systems, internal control systems, various management systems and information disclosure systems, and in accordance with the modern enterprise system, it has established a professional manager team with the chairman as the core, consisting of the shareholders' meeting, the board of directors and its special committees and management. This move has improved the company's standard operation level, clarified the responsibilities, authority, rules of procedure and working procedures of institutions at all levels, and gradually formed a mechanism with clear rights and responsibilities, standardized operations, mutual coordination and mutual checks and balances among authority agencies, decision-making agencies, supervisory agencies and management to ensure the company's compliance operations and healthy development.

(6) Continue to improve corporate governance

In recent years, the company has focused on deepening corporate reform, continuously optimizing the governance structure, and improving the company's refined operation management level. At this stage, the company strictly complies with the requirements of the China Securities Regulatory Commission and the Shanghai Stock Exchange and other regulatory documents on corporate governance such as the "Company Law of the People's Republic of China", the Securities Law of the People's Republic of China, the "Code of Governance of Listed Companies", the "Stock Listing Rules of the Shanghai Stock Exchange" and other normative documents on corporate governance, and has formed an institutional system that is legal and compliant and meets the company's actual operation needs. The company has gradually improved and established a corporate governance structure with the shareholders' meeting, the board of directors and its special committees and management as the core. It has clarified the responsibilities, authority, rules of procedure and working procedures of institutions at all levels, ensuring the separation of decision-making, execution and supervision, forming checks and balances, and realizing a standardized, institutionalized, scientific and efficient modern corporate governance system. It has laid the institutional and management-level foundation for the company's sustainable high-quality development and ensured the company's compliance operations and healthy development.

Shareholders' meeting: The company strictly complies with relevant regulations and requirements such as the "Company Law of the People's Republic of China", "Securities Law of the People's Republic of China", "Rules for Shareholders' Meetings of Listed Companies", "Articles of Association", "Rules of Procedure for Shareholders' Meetings" and other relevant regulations and requirements, and regulates the shareholders' meeting and standardizes the voting procedures to better ensure that all shareholders, especially small and medium-sized shareholders, enjoy equal status and fully exercise their legitimate rights and interests. The 2025 shareholders' meeting will adopt a combination of on-site and online voting to provide convenience for shareholders to participate in the shareholders' meeting. At the same time, lawyers will be hired to attend the shareholders' meeting and issue legal opinions on the convening and voting procedures of the shareholders' meeting, fully respecting and safeguarding the legitimate rights and interests of all shareholders. During the reporting period, 5 shareholders' meetings were held.

Board of Directors: The company selects directors in strict accordance with the Company Law, Articles of Association and other regulations. The current board of directors consists of 9 directors (including 3 women), of which 3 independent directors are professionals in the fields of law, medicine, and accounting, which is conducive to strengthening the supervision and guidance role of independent directors on the company's operation and management. In terms of decision-making matters of the board of directors, each director member gives full play to their respective areas of expertise and assumes their respective responsibilities to ensure the efficient implementation of decision-making matters. At the same time, the board of directors has four special committees: Strategy Committee, Audit Committee, Nomination Committee, and Remuneration and Appraisal Committee. During the reporting period, each special committee performed its duties in strict accordance with relevant laws and regulations, the Articles of Association and the implementation rules of each special committee, and standardized various processes such as meeting convening, proposal submission, director attendance, deliberation and voting, and the attendance rate of the board of directors was 100%.

Audit Committee: The Audit Committee elects and appoints members and convenes meetings in strict accordance with relevant laws and regulations. The main responsibilities of the audit committee are to assist the board of directors in supervising, inspecting and evaluating the company's internal controls, financial information and internal audit. Members of the audit committee should be diligent and responsible to effectively supervise and evaluate the company's internal and external audit work, promote the company to establish effective internal controls and provide true, accurate and complete financial reports, ensure the effective supervision of the management by the board of directors, and improve the corporate governance structure.

During the reporting period, the company organized 7 meetings of the audit committee of the board of directors. The audit committee reviewed regular reports, internal control implementation, hiring of accounting firms, etc., provided suggestions for the company to strengthen the internal control mechanism, and effectively performed the duties of the audit committee.

Strategy Committee: The Strategy Committee elects and appoints members and convenes meetings in strict accordance with relevant laws and regulations. The main responsibilities of the Strategy Committee are to study the company's mid- and long-term development strategic plans and major issues affecting the company's development and make recommendations, aiming to strengthen the scientific nature of decision-making and improve the effectiveness and quality of major decisions. During the reporting period, the company organized and convened the Strategy Committee of the Board of Directors once to review the "Proposal on the Agreement to Transfer Partial Shares of Tebao Biotechnology" and effectively performed the duties of the Strategy Committee.

Nomination Committee: The Nomination Committee elects and appoints members and convenes meetings in strict accordance with relevant laws and regulations. The main responsibilities of the Nomination Committee are to formulate the selection criteria and procedures for directors and senior managers and make recommendations for nomination of candidates. During the reporting period, the company organized and convened the Nomination Committee of the Board of Directors once, improved the corporate governance structure, and effectively performed the responsibilities of the Nomination Committee.

Remuneration and Appraisal Committee: The Remuneration and Appraisal Committee elects and appoints members and convenes meetings in strict accordance with relevant laws and regulations. The main functions of the Remuneration and Appraisal Committee are to formulate and supervise the remuneration plans for directors and senior managers, and to evaluate the work of directors and senior managers and make recommendations to the board of directors. During the reporting period, the company organized and convened the Remuneration and Appraisal Committee of the Board of Directors three times. The Remuneration and Appraisal Committee reviewed the relevant proposals on the employee stock ownership plan and the remuneration proposals for directors and senior managers, and effectively performed the duties of the Remuneration and Appraisal Committee.

(7) Strengthen information disclosure and investor relations management, and improve relevant system construction

The company strictly complies with the requirements of relevant laws and regulations such as the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, and the Code of Governance of Listed Companies. At the same time, it has established a legal person governance system with the Articles of Association as the core. It continuously improves the legal person governance structure, establishes a modern enterprise system, standardizes the company's own operating behaviors, and conducts information disclosure in accordance with the standards.

The company strictly abides by the relevant provisions of the "Shanghai Stock Exchange Stock Listing Rules", "Articles of Association" and "Information Disclosure Management System", and has successively established the "Information Disclosure Management System" and "Investor Relations Management System" Related systems such as the "Affiliated Transaction Management System" promptly and fairly disclose all information that may have a greater impact on the company's stock trading price. No false records, misleading statements or major omissions have occurred. This ensures timely and smooth communication between all parties, aligns the interests of all shareholders of the company, including major shareholders, institutional investors, and small and medium-sized investors, maintains the company's image of integrity in the capital market, and enables the company to develop stably and healthily in the capital market. In addition to disclosing mandatory information, the company attaches great importance to voluntary information disclosure, promptly announces the progress of major events and issues of concern to shareholders, and fully protects investors' right to know. In 2025, the company completed the preparation and disclosure of 4 regular reports and the preparation and disclosure of 87 temporary announcements.

In its daily investor relations management, the company attaches great importance to calls and visits from investment institutions, analysts and small and medium-sized investors, constantly improves the communication mechanism with investors, strengthens contact and communication with investors through multiple channels and forms, and maintains a good relationship between the company and investors. Through the Shanghai Stock Exchange e-interactive platform, the company introduced situation and in-depth exchanges during the reception and research process, so that many institutional investors, pharmaceutical industry researchers, and investment experts deepened their understanding of the company's operating dynamics, promoted investors' recognition of the company, realized the linkage between the company's brand value and the capital market, and demonstrated the company's good corporate image. During the reporting period, the company held three performance briefings and answered investor questions through the Shanghai Securities e-interactive platform, with a total of more than 110 questions answered.

(8) Formulate a stable profit distribution policy and actively reward shareholders

Creating value for shareholders and allowing shareholders to share the company's operating results are the responsibilities and obligations of listed companies. As the company's operating scale and profitability continue to increase, the company actively provides investors with reasonable returns, further strengthens the awareness of returning shareholders, and fully safeguards the legitimate rights and interests of the company's shareholders.

The company plans to distribute an annual cash dividend of 3.00 yuan (tax included) for every 10 shares in 2025, totaling approximately 587 million yuan.

If the 2025 profit distribution proposal is approved by the shareholders' meeting, the company will have distributed cash dividends for 15 consecutive years since 2011, and will have continuously distributed cash dividends of more than 7 billion yuan in total (including share repurchases deemed to be cash dividends).

(9) Business ethics

Establish and improve anti-corruption, anti-bribery and anti-unfair competition mechanisms

The board of directors, owners and relevant senior officials of Tonghua Dongbao attach great importance to the construction of anti-corruption and anti-bribery mechanisms. A relatively complete management mechanism has been established to deal with corruption and bribery that violate business ethics. Different management methods are adopted for internal employees and external cooperative units.

(1) To strike iron, you need to be hard-working. For our employees, in accordance with national laws and regulations such as the Criminal Law of the People's Republic of China, the Anti-Unfair Competition Law of the People's Republic of China, the Company Law of the People's Republic of China, the Interim Provisions on the Prohibition of Commercial Bribery, the Notice on Seriously Investigating and Actively Preventing Occupational Crimes in the Field of Food and Drug Supervision, and other national laws and regulations, in the enterprise The Employee Handbook clearly stipulates that violations of professional ethics will be punished by education, warnings, written warnings, serious warnings, (managers will be demoted or dismissed if the warning is invalid), probation, or termination of the labor contract based on the attitude afterwards. For those who violate laws and regulations, the company has the right to request judicial authorities to pursue criminal liability. We also provide training and implementation of this system to employees (including middle- and senior-level leaders) during their early employment. Ensure that every employee is aware of the anti-corruption and anti-bribery management system, and strengthen employees’ anti-corruption and anti-bribery awareness.

(2) While strengthening the company’s internal anti-corruption and anti-bribery management, it will continue to learn from external advanced anti-corruption and anti-bribery management experience. The company cooperates with a team of domestic outstanding lawyers all year round and carries out anti-corruption and anti-bribery training to learn the latest information on anti-corruption and anti-bribery at the first time. It also requires middle and senior leaders to participate. After the training is completed, it will be studied and promoted within the department. At the same time, the company carries out management personnel appointment and integrity inspections from time to time to assess the moral quality and business capabilities of management personnel at all levels to create an honest and efficient management team.

(3) In terms of procurement, customers, suppliers, service providers and other independent entities that have business dealings with the company are required to add anti-corruption and anti-bribery clauses during the contract negotiation stage after the bidding and price comparison are completed; in terms of sales, they need to specifically sign the "Anti-Commercial Bribery Guaranteed Sales Agreement"; guarantee not to provide or promise to employees of the company Provide rebates, handling fees, commissions, introduction fees, etc. to obtain any business opportunities, and stipulate corresponding liability for breach of contract or prohibitive clauses in the contract or other cooperation documents. If there is a violation of the commitment, suppliers, service providers, agents, dealers and bidding qualifications will be cancelled, and those suspected of constituting a crime will be transferred to judicial authorities for processing. Ensure that the operation and management work is fair, impartial and open.

During the reporting period, no corruption-related violations occurred.

Improve the company’s internal reporting system

Doing a good job in compliance risk prevention and control is both basic and important work for corporate compliance management. Enterprises need to establish a professional compliance management team and develop effective compliance due diligence tools, thereby improving the professionalism and effectiveness of corporate compliance risk due diligence and enhancing the company's compliance risk prevention capabilities.

Based on the above factors, Tonghua Dongbao has established a relatively complete internal compliance supervision and management system and formulated relevant processes, including business development approval process, accounting and organizational verification, accounting and record keeping management, and regular audits by internal auditors, so that all employees, including senior executives, and employees of branches and other companies with business relationships with the company, understand the company's compliance plan and provide them with more detailed guidance on how to implement the compliance plan, effectively resisting the occurrence of corruption and bribery incidents.

In terms of internal supervision mechanisms, the company has set up a contact us page on the company website (http://www.thdb.com/) to encourage employees and business partners to express concerns and provide a safe and smooth channel so that employees and business partners can seek advice, express concerns, and report violations without retaliation.

At the same time, the company further deepened its party building work, used the integrity supervision platform to expand internal and external supervision and reporting channels, continued to maintain anti-corruption deterrence, and actively built an all-round and multi-dimensional risk prevention and control system.

For corruption and commercial bribery that are verified to be true, the company will punish them according to the seriousness of the circumstances and in accordance with the company's regulations. If the circumstances are serious, the labor relationship will be terminated. If the company causes losses, compensation will be recovered in accordance with the law. If it is suspected of constituting a crime, it will be transferred to the judicial authorities for handling.

3. Society: Serve the society and actively assume various social responsibilities

The social responsibility concepts of "contributing to the country, serving society, and benefiting the people" and "let more people live a good life" are Tonghua Dongbao's good wishes that it always adheres to the common development and destiny of society. Since the establishment of the company, a total of over 100 million yuan has been invested in education, environmental protection, medical care, charity and other public welfare undertakings, allowing the whole society to feel the spirit of the times of Dongbao people's courage to take responsibility. Since its establishment 40 years ago, the company has determined to contribute to social development and promote a harmonious socialist society.

(1) Increase innovative research and development to enrich treatment options and medication options

The company always adheres to independent innovation, constantly optimizes product structure, mainly researches and develops a series of products in the field of diabetes treatment, continuously enhances market competitiveness, and plays a leading role among domestic brands in this industry. The goal is to make high-quality, low-price domestic biological products affordable and accessible to the Chinese people. Enter the international market, let China's high-end products go abroad, participate in international competition, and benefit mankind.

Governance

Tonghua Dongbao focuses on combining independent research and development with external cooperation. In order to promote the research and development of new products, it has established R&D institutions in Beijing, Shanghai, Hangzhou, Changchun, Tonghua and other places. It has formed a complete technical system for establishing early drug discovery, pharmacological efficacy, toxicology and pharmacokinetics, clinical trials, registration, and large-scale production. It has also improved the organizational framework of the R&D center and established and improved various rules and regulations such as drug R&D quality systems and SOPs.

The company has been rated as a high-tech enterprise for many consecutive years, and has also been rated as "Jilin Province High-level Talent Innovation and Entrepreneurship Base", "Protein Drug R&D Center", "Protein Drug Pilot Center", "Provincial Model Worker Studio", "National Enterprise Technology Center", "National Postdoctoral Research Workstation", "Provincial Protein Biopharmaceutical Quality Inspection Technology Innovation Center", "Provincial Protein Biopharmaceutical Fermentation System Innovation and Entrepreneurship Platform".

Strategy

Tonghua Dongbao has always attached great importance to research and development, which has a vital impact on the company's business development and financial status. The company focuses on cutting-edge treatment technologies in the field of diabetes and endocrine therapy, continuously promotes the company's technological innovation, improves its innovation capabilities in new drug research and development, strives to become a leading company in the field of diabetes treatment, and is committed to becoming "an explorer and leader in innovative pharmaceutical research and development in the endocrine field."

Based on the vast unmet clinical needs, Tonghua Dongbao continues to increase innovative research and development, focus on expanding treatment areas and deploying multi-indication products. At the same time, the company regards R&D efficiency as its lifeline and continues to increase investment in human, financial and material resources. During the reporting period, the company's total investment in R&D was approximately 506 million yuan, a year-on-year increase of approximately 12.30%, accounting for 17.16% of operating income. A number of innovative drugs under development have made promising progress.

(1) GLP-1 receptor agonist innovative drugs: THDBH120/THDBH120 for injection,

THDBH110/THDBH110 capsules

In March 2021, a new class of new drugs in the field of diabetes treatment was introduced through cooperative development, technology transfer, etc.: GLP-1/GIP dual-target agonist THDBH120/THDBH120 for injection, and oral small molecule GLP-1 receptor agonist THDBH110/THDBH110 capsules.

THDBH120/THDBH120 for injection is a dual-target agonist of glucagon-like peptide-1 (GLP-1) receptor and glucose insulin secretory polypeptide (GIP) receptor, which combines GLP-1 and GIP The two insulin-stimulating effects are integrated into a single peptide molecule, and the metabolic stability is further improved through molecular design. It has the functions of synergistically promoting blood sugar control, weight loss, and regulating lipid metabolism. It meets the clinical needs of diabetic patients who have poor treatment effects with single molecular targets or compound preparations, and is expected to become a longer-lasting blockbuster drug for the treatment of diabetes and obesity.

The product received a clinical trial approval notice for antihyperglycemic indications issued by the State Food and Drug Administration in December 2023 and completed the administration of the first subject in the Phase Ia clinical trial that month. In April 2024, it received a clinical trial approval notice for weight loss indications issued by the State Food and Drug Administration. With the smooth development of Phase Ia clinical trials, the first patient in Phase Ib for hypoglycemic indications was dosed in June 2024, and the first patient in Phase Ib for weight loss indications was dosed in July 2024. In December 2024, the Phase Ia clinical trial summary report was obtained. In February 2025, positive top-line results of the phase Ib clinical trial for hypoglycemic and weight loss were obtained. In January 2025, the first patient was administered in the phase II clinical trial for weight loss indications. All cases were enrolled in August 2025. It is currently in the case visit stage, showing good safety, tolerability and positive efficacy trends. The early clinical development process of this project reflects the good trend of focusing, speeding up and increasing efficiency of R&D work.

The THDBH110 molecule is an oral non-peptide, small molecule GLP-1 receptor agonist. Preclinical research results show that THDBH110 capsules have high bioavailability and exhibit good hypoglycemic and weight loss properties. This variety will provide a new option for patients with type 2 diabetes and obesity in terms of reducing blood sugar, weight, and cardiovascular risk, and can effectively improve patients' medication convenience and compliance.

This product received a clinical trial approval notice for oral small molecule GLP-1 receptor agonist (THDBH110 capsules) issued by the State Food and Drug Administration in November 2023, and completed the enrollment of the first subject in the Phase Ia clinical trial in December 2023. The Phase Ia clinical trial has successfully completed dosing observation, and data analysis and trial summary work are ongoing, and the next step of clinical development is planned.

(2) Related varieties of GLP-1 receptor agonists: THDB0225 injection, insulin degludec and liraglutide injection

THDB0225 injection (formerly known as ZT001 injection) belongs to Semaglutide, a long-acting GLP-1 (glucagon-like peptide-1) analog. By simulating the effect of GLP-1 in the human body, GLP-1 drugs can not only effectively reduce blood sugar levels, but also have weight loss effects, and also show many potential therapeutic values in other chronic cardiorenal and metabolic diseases.

In May 2024, the company signed a "Commercial Authorization and MAH Cooperation Agreement" with Protopt Biotech on the GLP-1 product semaglutide injection. According to the agreement, the company will obtain the exclusive commercialization rights of ZT001 Semaglutide Injection (Indications: Adult Type 2 Diabetes, current name: THDB0225 Injection), a clinical product under development by Protopt Biotech, in mainland China, as well as the rights to jointly develop overseas markets.

THDB0225 injection has completed Phase I clinical trials in mainland China, and the trial results show

THDB0225 injection and the reference drug Novotel® are bioequivalent. No clinically significant changes or trends related to the study drug were found in terms of safety, and no unexpected safety risks were found. After the company signed the agreement with Plasmid Biotech, it immediately launched China's Phase III clinical trial, successfully completed the first patient's administration in July 2024, and successfully completed the last patient's enrollment in October 2024. The last dosing visit of all subjects was successfully completed in June 2025, the database lock was completed in October 2025, the clinical trial summary report was completed in February 2026, the Pre-NDA application was submitted on February 13, 2026, and the NDA is being prepared. Apply for relevant information. It demonstrates the company's forward-looking layout and rapid advancement in the research and development and commercialization of blockbuster biosimilar products in this field.

Insulin degludec and liraglutide injection is an insulin analog GLP-1RA compound preparation. Insulin analogs and GLP-1 receptor agonists complement each other and act on the pathogenesis of type 2 diabetes. Compared with single-component insulin analogs and GLP-1 receptor agonists, the new drug combination composed of the two will bring more clinical benefits to patients. Insulin degludec and liraglutide injection is the world's first marketed insulin analog GLP-1RA compound preparation. It combines the two-component advantages of the two drugs to regulate glucose homeostasis.

Insulin degludec and liraglutide injection received a drug clinical trial approval notice issued by the State Food and Drug Administration in April 2024. In May 2024, the Phase I clinical trial completed the administration of the first subject, and in November 2024, the Phase I clinical trial obtained a summary report. The first patient in the Phase III clinical trial will be administered in March 2025, and all cases will be enrolled in December 2025. Clinical observation is currently proceeding smoothly.

(3) Types of insulin analogues: THDB0206, Insulin Lispro Injection 25R

THDB0206 (ultra-fast-acting insulin lispro injection), after completing the administration of the first patient in the Phase III clinical trial in May 2022, has completed the enrollment of the last patient in July 2024. At present, the administration and clinical observation of all cases have been successfully completed, and the database lock will be completed in September 2025. At present, the summary reports of the Phase III trials for the two indications of T2DM and T1DM have been completed, and relevant information for NDA applications is being prepared.

Protamine zinc recombinant insulin lispro mixed injection (25R) obtained the phase III clinical trial summary report in March 2024, completed the pre-marketing authorization application meeting (Pre-NDA) in July 2024, and is currently in the stage of preparing marketing authorization application (NDA) application materials.

(4) Innovative drugs and related varieties in the field of gout treatment: THDBH150/THDBH151 tablets, etoricoxib tablets

In July 2021, the company launched a new class of drugs in the treatment of gout/hyperuricemia

(THDBH150/THDBH151 tablets). THDBH150/ THDBH151 tablets are dual-target inhibitors of gout. Due to their special advantages in mechanism, they can not only inhibit xanthine oxidase (XO) and reduce the production of uric acid from the source, but also inhibit the reabsorption of uric acid by the renal tubular URAT1 transporter and accelerate the excretion of uric acid. In addition,

THDBH150/THDBH151 tablets balance the role of XO/URAT1 in lowering uric acid, improve drug efficacy while reducing side effects, and greatly improve patient compliance.

The product completed the phase I clinical trial summary report in February 2024, showing good safety and tolerability, and with the synergistic effect of the two targets, it can significantly reduce the serum uric acid levels of healthy subjects, with a clear dose-effect relationship. In May 2024, the first patient was dosed in the Phase IIa clinical trial, and the last patient was enrolled in August 2024. The database was successfully locked in November 2024, and the Phase IIa clinical trial summary report was obtained in April 2025. The research results showed that the primary endpoint was achieved. The next step of clinical development is currently underway.

In addition, the company has also conducted the research and development of etoricoxib tablets, a chemical oral drug in the field of gout treatment. This product is the latest generation of selective cyclooxygenase-2 (COX-2) inhibitors, which has anti-inflammatory, analgesic and antipyretic effects and has less gastrointestinal adverse reactions. It is mainly used to treat symptoms and signs of acute and chronic phases of osteoarthritis, acute gouty arthritis, and primary dysmenorrhea. Marketing authorization will be obtained in January 2025.

Risk and opportunity management

Tonghua Dongbao adheres to the development concept of "adhering to independent innovation and creating a world brand", and continues to improve the evaluation system through comprehensive identification and evaluation of risks and opportunities in the field of R&D and innovation, and continuously establishes and improves a risk protection system, aiming to strengthen the company's ability to resist risks and enhance operational resilience.

Identification and assessment of risks and opportunities Response to risks and opportunities Management of risks and opportunities

From the perspective of policy environment, market and industry competition, based on drug research and development risks and opportunities, scientific competition trends, technology development and other external collaborative management perspectives have been established through the milestone review mechanism. A three-level risk response system has been established to more scientifically allocate R&D resources and strategic planning factors from multiple perspectives, combined with the company's scientific analysis and evaluation methods, and determine matching strategic planning, operational management, and financial continuous team capacity building. For the design, optimize innovation efficiency, build service analysis and other internal factors, fully understand high-risk projects and proactively avoid them; for the risk control system covering the entire process, strictly identify potential risks and opportunities in research and development, and adopt dynamic monitoring to implement scientific standards and regulatory requirements for medium-risk projects. testing mechanism, using technical research and resources to implement risk-level management and control at the same time.

Reduce the probability of occurrence and potential losses through resource allocation and establish a complete risk control mechanism combined with the company's decision-making and management levels; establish an acceptable low-risk system. By strengthening information collection and analysis and strategic planning, we will establish a fault-tolerant mechanism for product project approval and development, while improving monitoring and pre-formulation response plans, strengthening monitoring and pre-life cycle, registration and declaration, and commercial police systems, while formulating hierarchical response alerts and regular assessment and improvement mechanisms. We will conduct risk plans at other stages and comprehensive dimensions to achieve risk prevention and control and R&D, ensuring the efficient advancement of R&D projects and the assessment of risks and opportunities. The organic unity of efficiency. Project success and commercialization success are integrated, and the overall risk and return are maintained in a dynamic balance.

(1) Continue to strengthen intellectual property management and enhance patent protection awareness

Over the years, Tonghua Dongbao has attached great importance to intellectual property management, strictly abided by the Patent Law of the People's Republic of China, the Trademark Law of the People's Republic of China and other relevant laws and regulations, and continued to implement the national standard "Enterprise Intellectual Property Management Standards". The company has formulated the "Intellectual Property Management System of Tonghua Dongbao Pharmaceutical Co., Ltd." and the "Trademark Management Measures of Tonghua Dongbao Pharmaceutical Co., Ltd." " and "Tonghua Dongbao Pharmaceutical Co., Ltd. Patent Management Measures" and other intellectual property management systems continue to standardize intellectual property management, aiming to improve intellectual property systems such as patents, core technology secrets, and trademarks through institutional construction to build an intellectual property moat for pharmaceutical R&D and innovation achievements, and further promote the formation of a virtuous cycle of intellectual property protection in the company's R&D, production, and operation processes.

In addition, in daily operations, the company continues to strengthen employees' awareness of intellectual property rights and enhances the attention of relevant employees to intellectual property declaration and protection. For example, in 2025, the company organized and participated in a number of training lectures such as "Trademark Brand Building" and "Special Training Courses on Patent Transformation and Application and Geographical Indication Protection".

As of the end of 2025, the company and its wholly-owned subsidiary Toho Purple Star have applied for a total of 259 patents, including 15 PCT patent applications, covering Europe, the United States, Japan, Brazil, Mexico, Indonesia and other countries and regions; it has 152 valid authorized patents, including 57 domestic authorized patents and 95 overseas authorized patents.

(2) Drug research and development ethics

Tonghua Dongbao always puts ethical principles at the core in the process of drug clinical development, strictly referring to the Declaration of Helsinki, Good Clinical Practice for Drugs, Key Points and Determination Principles for Drug Registration, Good Pharmacovigilance, and Guiding Principles for Ethical Review of Drug Clinical Trials and other regulatory requirements and related standards, and ensures the scientific and ethical feasibility of trials through strict ethical review and supervision mechanisms to ensure that our activities comply with the highest ethical standards and respect the rights and interests of patients, volunteers and researchers.

Currently, the company has established a set of standardized processes to effectively manage and supervise clinical research. Before a clinical research project is initiated, an ethical review committee will conduct an ethical and scientific evaluation. After the project is approved and implemented, the company will strictly supervise all activities during the trial, including but not limited to regular review of research progress, quality and potential problems, and make decisions on whether to continue, adjust or stop based on the results of the regular review. At the same time, the company will ensure that each subject fully understands the purpose, methods, risks and benefits of the study, as well as the nature of the experimental drugs and the trial process, and that their participation is completely voluntary. The specific process is as follows:

Project establishment and research evaluation: In the preclinical research stage, the company can conduct human clinical drug trials only after sufficient research demonstration and proof that the drug is safe and controllable. All clinical research projects must be evaluated and justified by an ethics review committee to ensure that all clinical trials comply with regulatory and ethical requirements.

Protect the rights and interests of subjects: (1) Right to know: The company follows global ethical norms and ensures that every participant fully understands the characteristics of the experimental drugs and the trial process. In addition, informed consent forms for clinical trials must be approved by each center's independent ethical review board as well as the central institution before they can be used. (2) Right of voluntary choice: Subjects have the right to choose independently whether to participate in the trial, and they can choose to withdraw from the study at any time. (3) Privacy: The company strictly follows relevant laws and regulations to protect the privacy information of subjects and ensure that the collection, utilization and storage of personal data are legal and compliant.

Regular review and supervision: During the research process, the ethics committee will conduct regular review and supervision of clinical trials to ensure that research activities comply with ethical requirements and handle any potential ethical issues or violations in a timely manner.

Safety assessment and guarantee: During the trial, the health status of the subjects will be monitored, any adverse events or serious adverse events will be reported in a timely manner, and corresponding treatment will be taken according to the actual situation. The company's research projects regularly submit safety update reports to regulatory agencies every year. After the trial ends, a follow-up period will be set for the subjects based on the action characteristics of different drugs, and their health status will be continuously monitored to evaluate the impact on their health after the medication ends.

In addition, the company regularly conducts training on laws, regulations and operating procedures (SOPs) for clinical research personnel to enhance employees' awareness of clinical ethics and responsibility, and continuously improve employees' clinical ethics awareness and skills.

In the future, the company will be committed to maintaining transparency in trial results reporting and data disclosure, and ensuring fair and accurate communication of trial results, and will continuously strive to improve ethical management practices and increase transparency and quality.

Indicators and goals

The company will continue to invest in the research and development of innovative drugs and unswervingly accelerate its transformation into an innovative pharmaceutical company. With improving research and development efficiency as the core, it will enrich the research and development pipeline and improve the company's research and development level by strengthening independent research and development capabilities and increasing external cooperation. At the same time, it will be proactive and explore international cooperation and global development opportunities. Based on the research and development center, it will continue to optimize the innovative research and development system and focus on research and development. Focus on new targets and new treatment options in therapeutic areas and related diseases with unmet clinical needs; leverage the effectiveness of the company's technological innovation R&D platform, deepen and strengthen industry, academic, research and medical exchanges and cooperation with universities and scientific research institutes, seize the opportunity of the national biomedicine policy to encourage and support innovation, and always be guided by unmet clinical needs and drug accessibility for patients to more efficiently promote the R&D and commercialization process.

(2) Participate in and promote academic exchanges, improve the diagnosis and treatment capabilities of grassroots doctors, and improve drug accessibility

At present, there is still room for significant improvement in the domestic insulin penetration rate, and the ability of grassroots doctors to diagnose and treat diabetes and the clinical application of insulin are continuously improved. On the other hand, due to the particularity of the use of insulin products, the company continues to strengthen patient education and increase patients' attention to blood sugar control. At the same time, the company also continues to strengthen the after-sales service of its products, aiming to provide more high-quality and convenient services to the majority of patients.

The company carries out targeted academic exchanges with different groups of doctors. For community hospitals and township health centers, we focus on improving doctors' clinical use of insulin; for county-level hospitals, we emphasize the timely initiation of basal insulin treatment and the treatment concept of achieving blood glucose standards; for tertiary hospitals, we increase the promotion of overall solutions for diabetes treatment and the concept of improving the treatment compliance rate in a multi-faceted manner.

In the face of a changing market environment, during the reporting period, the company continued to strengthen marketing professionalism, adopted market strategies and methods that focused on both stability and breakthroughs, expanded the growth space of existing markets, and increased the market scale of new products.

During the reporting period, the company participated in a series of national and regional professional academic conferences such as the Annual Conference of the Endocrinology Branch of the Chinese Medical Association and the Annual Conference of the Diabetes Branch. It set up specially designed booths and product promotion activities at the conferences to enhance the company's brand influence. It has participated in more than 20 national and regional academic conferences, covering more than 20,000 experts and clinicians, effectively conveying Tonghua Dongbao’s professional voice in the field of diabetes treatment and further consolidating the company’s leading brand image in the field of domestic insulin.

For the insulin glargine and premixed insulin aspart products that won the bid for A1, on the premise of ensuring the basic quantity, we will actively explore the off-standard market and at the same time deeply cultivate the grassroots market. A series of 273 lecture tours on the "Integrated Diabetes Management Empowerment Project" were carried out in various grassroots cities and communities across the country; hospitals at all levels carried out more than 2,500 academic promotion activities such as "Bethune Expert Grassroots Tour" to improve the ability to use insulin series products and improve the patient treatment compliance rate.

Regarding liraglutide products, the use of liraglutide in some county-level hospitals still needs to be further standardized and improved. Through online and offline linkage, the company has carried out about 500 academic activities nationwide, including training sessions, case seminars, study classes, expert lectures, and expert visits to grassroots hospitals, to convey the treatment concept of comprehensive diabetes management, promote standardized application information of GLP-1RA, share mature medication experience, help improve the diagnosis and treatment level of grassroots doctors, and promote the standardized application of products in hospitals at different levels.

(3) Actively respond to centralized purchasing, improve the affordability of drugs, and continuously improve service quality

Tonghua Dongbao actively responded to the National Medical Insurance Administration’s policy call on centralized drug procurement. In the insulin centralized procurement renewal bid in April 2024, the company’s full range of insulin products were successfully selected as Category A, including insulin glargine and premixed insulin aspart, which were selected as Category A1, reducing the financial burden of medication for patients. During the reporting period, as the centralized procurement renewal results were implemented across the country, the company continued to increase the after-sales service of its products, continuously strengthened the after-sales service system, further increased the number of after-sales service points, enriched the after-sales service content, and vigorously promoted and improved the after-sales service function of the WeChat official account. The company extends its services to the daily lives of patients outside the hospital. The team relies on the WeChat official account to build it into a patient service platform that integrates "product usage guidance and health knowledge popularization". By regularly pushing graphic/video content such as insulin injection tips, blood sugar monitoring precautions, and hypoglycemia prevention, medication guidance is transformed into practical skills that patients can "understand, learn, and use." It effectively solves patients' confusion about medication after discharge, enhances patients' trust and stickiness in the company's brand, and further improves our integrated diabetes service ecology of "in-hospital treatment + out-of-hospital management".

The company has established a "Customer Service Center", equipped with full-time customer service personnel. Based on the concept of "wherever the products go, there are services." It has established a three-level service network covering cities and counties in each province to solve various problems for customers in a timely manner. For professional issues involved in the use of insulin, the company has specially established the "Tonghua Dongbao Gansulin Health Consultation Center". Through the "Dongbao Shulin Care WeChat Official Account" and "400, 800" free consultation hotlines and other channels, the company receives various problems encountered by users in the use of the company's products and various needs of users, and provides timely answers and processing, all year round, all day long. At the same time, we conduct user satisfaction surveys and conduct surveys on user satisfaction every quarter by distributing "User Questionnaires" and "User Questionnaires" and "sending special personnel to visit" to strengthen communication and exchanges with customers. The company pays attention to strengthening the construction of "credibility", abides by contracts and keeps credibility. It sets up a full-time department and a dedicated person to be responsible for contract management and establishes files. If the contract amount reaches a certain amount, the relevant departments are organized to conduct "contract review" in strict accordance with the regulations to ensure that the contract is performed on time, with quality and quantity. Tonghua Dongbao is a "National Price Credit Unit" AA-level enterprise.

(4) Assisting rural revitalization

In recent years, with the in-depth advancement of the national rural revitalization strategy, listed companies have become the core force of high-quality economic development. Tonghua Dongbao has deeply realized its important responsibilities and missions in assisting rural development, and has actively devoted itself to the great cause of rural revitalization, especially in terms of improving the diagnosis and treatment capabilities of grassroots doctors and promoting employment of the local rural population, injecting vitality into sustainable rural development.

Improve grassroots diagnosis and treatment capabilities and improve the medication environment for grassroots patients

Over the years, Tonghua Dongbao has been committed to the concept of providing integrated solutions for diabetes treatment, building a more diversified market structure with the grassroots market as the center, opening up academic exchange channels among provinces, cities (counties), and towns (communities), helping to improve the diagnosis and treatment level of grassroots doctors and the medication environment of grassroots patients.

(1) Tonghua Dongbao continues to strengthen the application and implementation of the "Integrated Diabetes Management Platform" developed based on the blood glucose monitoring system in grassroots chronic disease management, helping grassroots medical units achieve integrated blood sugar management goals for diabetic patients from admission to discharge. By participating in China's grassroots diabetes hierarchical diagnosis and treatment model promotion project, pilot projects have been set up in grassroots medical communities or medical consortia units in Guangdong, Guizhou, Zhejiang, Henan and other places, and the construction of an integrated diabetes chronic disease management system of "township-village medical community" and "hospital-community" has been promoted throughout the process, with three screenings and three preventions of diabetes. Through regular screening activities in the project, we help rural hospitals manage new patients; for patients with poor blood sugar control in primary hospitals, we formulate lifestyle improvement plans under the guidance of blood glucose monitoring, and promote integrated internal and external management of primary hospitals.

(2) Support the "Bethune Endocrinology Special Fund - Expert Grassroots Tour" project to support diabetes experts across the country to provide continuing education courses and free clinic consultations to deliver medicine and medicine to the majority of county and township-level grassroots hospitals, and practice the "Healthy China" connotation of grassroots diabetes management. Since Tonghua Dongbao supported this project in 2014, together with China's most outstanding diabetes experts, it has spread across 30 provinces, municipalities and autonomous regions across the country, from counties to villages, covering 4,500 county and township hospitals, including 1,500 county-level hospitals and 3,000 township-level hospitals, helping 430 poor counties (the list of poor counties comes from the National Poverty Alleviation Office), holding more than 8,000 events, and involving 2,500 experts has trained more than 15,000 grassroots doctors at the county and township levels, effectively improving the diagnosis and treatment level of grassroots doctors and strengthening the standardized treatment of grassroots diabetes patients, allowing patients to receive professional treatment and better pharmaceutical services in the region, benefiting the majority of grassroots diabetes patients.

Industry driven

As a socially responsible enterprise, Tonghua Dongbao has always maintained its original intention of giving back to its hometown since its establishment, and has long-term attention and support for the development of its hometown. The company purchases asarum from rural growers in Ying'ebu Town and Fujiang Township, Tonghua County every year, supports local farmers in developing traditional Chinese medicine cultivation, purchases and recycles raw materials through on-site visits, helps farmers steadily increase their income, and promotes the upgrading of agricultural industrialization.

Employment assistance

Tonghua Dongbao invested and built a factory in Dongbao New Village and expanded its production scale, providing a large number of stable jobs for local residents of Dongbao New Village and other Tonghua areas, covering multiple functions such as production, technology, management, and services. For those who meet the job recruitment requirements, priority will be given to hiring local residents, especially rural laborers, to help villagers in Dongbao New Village achieve "doorstep employment", reduce the pressure of migrant workers, increase the income level of local residents, and promote family and social stability. In 2025, 35 local residents of Tonghua will be recruited.

Other assistance

During the reporting period, the company actively responded to the county labor union to provide assistance and daily medical assistance, and responded to the group labor union to cooperate in carrying out targeted assistance to employees in need and golden autumn education activities, so that the employees' sense of gain, happiness, and security would be more substantial and guaranteed.

(5) Continue to strengthen product quality management and create a reliable product system

Governance

The Drug Administration Law of the People's Republic of China was officially promulgated in December 2019, promoting the reform of management requirements for the entire process of drug development, production, distribution, and use. Under the "four most stringent" requirements, in 2020, the country has successively promulgated laws, regulations and guiding principles such as the "Measures for the Supervision and Administration of Drug Production", "Measures for the Administration of Drug Registration", "Good Manufacturing Practice for Pharmaceutical Products" Biological Products Appendix, the 2020 version of the "Chinese Pharmacopoeia", the new version of "Good Clinical Practice for Drugs" and ICH "Research on Pharmaceutical Changes of Marketed Biological Products". The company is guided by the overall policy of "quality awareness of all employees, abiding by laws and regulations, and continuous improvement", with the theme of "improving production quality level", focusing on improving "work quality, product quality, service quality" and "deepening GMP". "Manage, strictly control product quality, and ensure medication safety" as its own responsibility, it has comprehensively carried out quality system upgrades that meet the requirements of new laws and regulations. Starting from basic management, it has strengthened the quality awareness of all employees, strengthened basic skills training for employees, further promoted the overall improvement of the company's quality management level, and is ready to welcome the GMP and production and development on-site inspection activities of regulatory authorities at any time.

In accordance with the relevant requirements of laws and regulations such as the Drug Administration Law and Good Manufacturing Practice (GMP), Tonghua Dongbao Pharmaceutical Co., Ltd. implements comprehensive quality management in all aspects such as raw materials and excipients, packaging material procurement, production process, drug release, storage, transportation and marketing, and pharmacovigilance to ensure the safety, effectiveness and quality stability of marketed drugs. During the reporting period, the company's human insulin API production facilities successfully passed the EU EMA's pre-market approval GMP inspection, indicating that the company has the conditions for commercial production in the EU market. The quality of the company's human insulin API has been professionally recognized by EMA.

With the advancement of the company's international business, the company's API workshop and injection workshop have successfully passed official certifications from Colombia, Egypt, and Indonesia, marking the company's first step in internationalization.

During the reporting period, the company underwent multiple inspections including pharmaceutical GMP compliance inspections and special centralized procurement inspections, and no serious or major defects were found.

Strategy

Based on the company's business layout, operating status, and development strategic planning, the establishment of a quality management system covers the entire chain quality management map from product development to launch to the hands of patients. At the same time, the company built a prediction model for pharmacovigilance safety strategies and financial health indicators, ultimately forming a strategic management framework with safety and quality value. In addition, the company actively promotes and optimizes the pharmacovigilance management system and patient-centered quality management culture to achieve a quality control system based on risk management.

(1) Set drug warning lines, formulate product recall procedures, and improve product quality

① Pharmacovigilance

In accordance with the requirements of the newly revised "Drug Administration Law" and the "Opinions of the State Food and Drug Administration on Further Strengthening the Monitoring and Evaluation System and Capacity Building for Adverse Drug Reactions", the company has established management documents such as the "Adverse Drug Reaction Reporting and Monitoring Management System", "Adverse Drug Reaction Collection and Processing Operation Procedures", "Regular Safety Update Report Management System", "Key Drug Monitoring and Management System", "Procedure for Handling Medical Consultations and Complaints", "Instructions Update Management System". The company has established a "Drug Safety Special Committee" as a symbol to guide the company's pharmacovigilance work. It has been clarified that relevant departments such as production, quality, sales, R&D, and legal affairs are members of the company’s pharmacovigilance system; an independent organization—pharmacovigilance department—has been established and equipped with professionals to carry out specific pharmacovigilance work. The scope includes: collection of information on product adverse reactions; writing, review and reporting of adverse reaction reports; summary and analysis of consumer product feedback information; daily contact with the adverse reaction monitoring center; promotion and training of product adverse reaction knowledge, etc. A relatively complete pharmacovigilance system has been initially formed to ensure patient medication safety.

The company analyzes and controls possible quality risks that may arise during the production process. Production is organized according to the prescriptions specified in the approved product process regulations to achieve standardized operations throughout the production process. Production records are kept for each process to ensure traceability of the entire production process. At the same time, the company continuously improves its quality inspection capabilities and conducts inspections of raw materials, auxiliary materials, intermediate products, and finished products in accordance with approved quality standards and inspection methods. Conduct inspections; quality assurance personnel conduct all-round supervision and inspection of the production process and inspection process, promptly discover risks that affect drug quality, review and confirm key processes in the production process, and review and confirm test data to ensure that each batch of drug records is true and complete, the data is valid and reliable, and complies with drug marketing and release procedures.

② Product recall

In accordance with relevant laws and regulations such as the "Good Manufacturing Practice for Drugs", "Measures for the Administration of Drug Recalls" and other relevant laws and regulations, the company has established and improved the company's "Product Recall Management Procedures" to collect relevant information on drug quality and safety, investigate and evaluate possible quality problems or other safety hazards, and standardize the drug recall work procedures.

The company has set up a recall working group, headed by the person in charge of the drug marketing authorization holder. The team members are composed of the quality authorized person, the person in charge of quality management, the person in charge of sales & marketing, the person in charge of production management, the person in charge of the quality control department, the person in charge of financial management, the person in charge of warehousing, the registration personnel and experts in related fields. Analyze the collected information, evaluate product quality issues and safety hazards, and decide whether to initiate a recall. The team leader will review and approve the recall decision and recall summary report. After the decision is made to recall the product, with the quality management department as the center, the relevant persons in charge of each department will assist the quality management department in completing the implementation process of the recall work, and make and implement corrective and preventive measures based on the actual situation.

During the reporting period, the company did not have any actual product recalls.

(2) Have excellent equipment and facilities

Tonghua Dongbao's pharmaceutical production equipment and supporting technical process equipment have reached the international and domestic first-class level. In order to build a world brand and bring product quality to the world's leading level, Tonghua Dongbao implemented quality control in accordance with the most advanced foreign quality systems as early as 2005 in the process of industrialization and industrialization of recombinant human insulin. It was built in accordance with the FDA standards of the EU and the United States. It hired an EU consulting company to participate in the entire planning, design and engineering installation to ensure that the quality system met the requirements of the EU and the US FDA to the greatest extent, and passed the EU certification. At present, the company produces human insulin and insulin analogs. The equipment, facilities and technology used by the company have reached the domestic and international advanced levels, meeting the requirements for high-quality production of products. In terms of solid preparation production, we actively follow the new version of GMP requirements to implement equipment and facilities and process technology transformation, improve production links, and improve product quality.

(3) Advanced production technology

Dongbao human insulin production base is the most specialized diabetes treatment enterprise in China and the largest human insulin manufacturer in China. The company uses advanced production equipment and facilities and advanced production processes to lay a solid foundation for high-quality pharmaceutical production. Its main advantages are: first, it has created a high-tonnage biological fermentation technology system, which solved the control problems in the large-scale production process and ensured the expansion of production capacity; second, it has developed and industrialized the production technology of recombinant engineering enzymes (trypsin and carboxypeptidase B), solved a series of technical problems such as the source and low output of engineering enzymes, laid a solid foundation for the stability of insulin, and increased the company's marketable engineering enzyme products; third, it has developed a new process for the separation and purification of human insulin, solving the technical problems of complex processes.

(4) First-class pharmaceutical production environment

Tonghua Dongbao attaches great importance to the construction of internal and external environments for pharmaceutical production. The factory is located at the southern foot of Changbai Mountain, with large forest coverage and excellent water quality, making it very suitable for the development of the pharmaceutical industry. Its elegant and clean regional environment, neat and uniform modern factory buildings, and reasonable technological layout have been well received by domestic and foreign merchants. It has been designated by the National Tourism Administration as "the first batch of industrial and agricultural tourism demonstration sites in the country" and is an advanced unit of greening in the country. The factory building is constructed based on the principle of "three simultaneousnesses" and is fully equipped with safety and fire-fighting facilities, creating a good production and operating environment. The internal production environment and process layout of human insulin are designed and constructed in accordance with EU standards, reaching the leading domestic level. The solid preparation workshop has redesigned the production process environment in accordance with the new version of GMP standards. The layout is reasonable and compact, and the areas are clearly divided to maximize the flow of people and avoid cross-contamination. Reasonable and complete air-conditioning and purification facilities enable various production areas in the production workshop to reach corresponding cleanliness levels.

Risk and opportunity management

Tonghua Dongbao has continuously established and improved a risk management system to identify, assess, respond to, control and review risks throughout the entire life cycle of drugs, aiming to ensure the comprehensiveness and effectiveness of risk management, product quality and patient safety.

Identification and assessment of risks and opportunities Response to risks and opportunities Management of risks and opportunities

Continuously optimize and upgrade the whole chain quality management

Through all-round and multi-dimensional quality

management mechanism, by optimizing raw material procurement

Risk assessment method, striving for accurate identification based on historical quality trend data driven

Purchasing quality control, production process monitoring and cost

identify potential problems, scientific decision-making mechanisms for identified risks, and key control

The quality of key links such as product storage and transportation guarantees

Risks are controlled according to their impact on product quality. Multi-level controls are developed for the project.

Quality management to comprehensively improve quality risks

Analyze the extent and likelihood of occurrence and develop management strategies to identify adverse trends.

Prevention and control capabilities and stable quality of water output

Category, thereby determining the risk level, potential and potential risks, and during the operation

Level and continuously drive the quality management system

Develop targeted response strategies to continuously control risks and

Advance to preventive control mode to

And ensure the robustness of business operations and re-identify and adjust.

Effectively ensure the high quality of the quality management system

Sustainability.

Efficient operation and continuous optimization.

Indicators and goals

The company will continue to strengthen quality control, continue to improve product quality and stability, and ensure that all aspects of products from research and development to sales meet the highest industry standards. Through scientific production scheduling and lean production management, we can achieve cost reduction and efficiency improvement; improve the safety and quality management system, incorporate safety production into the company's annual business goals and long-term strategic planning, and systematically implement all requirements related to safety, effectiveness, and quality controllability at each stage of the drug life cycle into the entire process of drug production, process control, and product release, storage, and shipment to ensure that the drugs produced meet the intended use and usage needs. In addition, we strengthen quality and safety training, improve employee quality and safety awareness, and provide customers with safe and effective medical solutions.

(6) Caring for employees and strengthening talent training

Tonghua Dongbao's corporate team building philosophy is: "cultivate talents with both ability and political integrity, expand employee development space, create a fair and just environment, and advocate the concept of professionalism and dedication." The common vision we follow is: "Together we build a beautiful home for Dongbao and share a healthy and prosperous life." The company is committed to creating a family atmosphere of harmonious coexistence and win-win cooperation in which "employees treat the company as their home, and the company treats its employees as relatives". It clarifies that corporate culture should be used to shape the workforce and cultivate unique "Dongbao people". Everyone who works at Dongbao is a member of the Dongbao family and a relative. The company must not only work hard to increase the income of each employee and improve their living standards, but also work hard to sublimate their ideological and moral sentiments, excel in their professional skills, and cultivate talents who are useful to society.

Employee education and training

The company is committed to improving the overall quality and work efficiency of its employees and building a learning organization. To this end, the company systematically formulates training plans every year, covering new employee induction training, pre-job training, job transfer training and external personnel training. In view of the characteristics of personnel in different positions, including managers, technicians and front-line employees, the company adopts diversified training forms and carries out various trainings on GMP specifications, job operation skills, production process quality control, risk management and prevention, fire safety, production safety, sales skills, etc., aiming to comprehensively improve employees' comprehensive quality, business capabilities and teamwork awareness, promote the company's continuous improvement of production quality, work efficiency and operation and management level, and achieve the common growth of the company and employees. Based on the training content and actual needs, the company uses a combination of written examinations and on-site operational assessments to systematically evaluate the training effects of various departments and individuals. After the training, relevant training materials will be organized and saved as required. During the reporting period, the company actively promoted talent training through various forms:

(1) Factory training for new employees: In 2025, Tonghua headquarters completed 4 new employee induction training sessions, including factory regulations and discipline courses, safety courses, job skills courses, etc., with a total number of 150 people trained; the Insulin Marketing Center completed 6 new employee induction training sessions, with 243 people trained.

(2) On-the-job employee training: The sales center focuses on team building and capability improvement, and systematically carries out multi-level and multi-form training. In order to improve the abilities of promoted personnel, 3 special training sessions were organized throughout the year, with 70 people participating, to help them adapt to new job requirements and improve management and business capabilities. In addition, it also carried out many special trainings such as front-line core product promotion, regional data management improvement, reserve cadre training, and sales elite experience sharing, etc., with a total of more than 1,000 people trained, covering all employees. It helps to continuously improve the professional skills and practical capabilities of sales staff and help sales performance grow steadily. In addition, three phases of systematic professional knowledge training were carried out for the core production quality backbone of the headquarters.

(3) Management personnel training: In 2025, the safety management department carried out three safety grid-based responsibility system assessment safety trainings for some managers and department key organizations at Tonghua Headquarters. The explanations were based on the requirements of national laws and regulations and the provisions of industry safety production standardization. In addition, emergency plans and safety production education and training were involved. A total of 116 middle-level managers and department key personnel participated.

Improve employee well-being

Canteen management and employee catering are important links for enterprises to protect the interests of employees, and are also the most direct manifestation of caring for employees. In 2025, the company's party committee, labor union, and administration jointly carried out substantial reforms and improvements in the quality of employee catering, increased investment in food standards, strengthened the construction of the chef team, increased the variety of dishes, optimized the dish structure, improved quality, and strived to provide employees with good and safe dining services. At the same time, the cleaning and disinfection of meals are more strictly standardized, providing a strong guarantee for employee dietary safety.

Create equal employment opportunities

(1) Caring for female employees

As of the end of the reporting period, the company had more than 3,200 employees, including more than 1,300 female employees. They are distributed in the company's production, scientific research, management, operation, and sales front lines, and are the backbone of the company's production and operation. At present, the company gives full play to the subjective initiative of female employees, actively participates in the innovative development of the company, and combines the characteristics of female employees in the company to provide care and assistance to female employees in work, study, life and other aspects. Through continuous training and promotion, a large number of knowledgeable and capable female employees have been enriched in the front line of scientific research and have taken up management positions. A team of female employees with quality, level and synergy has gradually formed, and a number of outstanding women have emerged who have outstanding achievements in their respective jobs, dare to innovate, and have the courage to contribute.

Over the years, the company's functional departments have increased their efforts in strengthening the self-development of female employees. Taking into account the characteristics of the large number of female employees in the company, they often organize and carry out knowledge training with quality and safety as the main content. They also pay attention to understanding the needs of female employees for their own development at work, and actively participate in the "Study and Dream Realization Action" organized by the provincial organization. The majority of front-line female employees are encouraged to pass the adult college entrance examination, receive academic education qualifications for free, and use continuing education to improve their personal academic qualifications and abilities, creating conditions for the majority of female employees to enrich their work skills and improve their business capabilities.

In recent years, we have combined the protection of the legitimate rights and interests of female employees with the special interests. When formulating company rules and regulations, we have supervised and implemented them from the perspective of safeguarding the rights and interests of female employees. We have made suggestions on the work intensity, labor protection, labor safety, and job allowances of female employees in special positions, so that these workshops and departments can continuously improve environmental facilities. The company has organized many lectures on physical health and mental health and physical examinations for female employees, so that female employees can have a more significant improvement in all aspects of study, life, production and other aspects, so that they can play a better role and promote the overall progress of Tonghua Dongbao Pharmaceutical Co., Ltd.'s various undertakings.

(2) Pay attention to people with disabilities

The company strictly abides by the "Law on the Protection of Disabled Persons" and the "Employment Regulations for Disabled Persons", employs multiple employees with disabilities, and matches them with suitable jobs based on their physical condition and competency. The company ensures that the wages of disabled employees are not lower than the local minimum wage standard, enjoys the same employee benefits as able-bodied employees, and pays employment security funds for disabled employees every year, ensuring that disabled employees can realize their personal value in a safe and inclusive environment.

Talent stimulation and growth

Tonghua Dongbao has established the concept of "talent is the primary productive force for enterprise development" and has always put the construction of talent teams in the first place, building a solid platform for talent growth. By establishing R&D institutions in Beijing, Shanghai, Hangzhou, Changchun, Tonghua and other places, it has carried out extensive external cooperation. With the main idea of "emphasis on training, emphasis on introduction, adjustment of structure, and emphasis on incentives", it has introduced and trained a large number of high-level innovative talents and teams, and accelerated the growth of scientific research and technical talents. There are currently 384 R&D personnel, accounting for 11.45% of the total number of employees. It plays a strong guarantee role for the company to continuously implement technology-driven strategies and adhere to independent innovation and leap-forward development.

The company has established talent training plans and incentive measures to open up space for employees to innovate and create superior conditions, so that a large number of employees with ideals and achievements can be encouraged to grow. The company has established extensive cooperative relationships with universities, trained internally and externally, enhanced talent reserves, and improved the quality of the team. The company has established talent files and talent information databases, recruits various talents from colleges and universities and society every year, and provides an excellent humanistic and hardware environment for these people to practice and improve. The company has established "Special Contribution Award", "Management Innovation Award", "Technical Research Award", "Technological Innovation Award", "New Product Development Award", "Project Establishment and Achievement Award", "Technical Transformation Award", "Quality Management Award", etc. to encourage employee innovation and stimulate the vitality of the R&D organization.

(1) Incentives for high-level talents focus on motivating, optimizing remuneration, and retaining talents.

For middle- and senior-level managers and scientific research backbones, the company rewards those who have made outstanding contributions in the form of equity incentives/employee stock ownership plans. Based on the actual situation of the enterprise, the salary system is continuously optimized to truly reflect "incentive, fairness, competitiveness, economy and legitimacy", and scientific and standardized salary increase and promotion assessment procedures are established to provide strong guarantee for the personal development and growth of employees.

During the reporting period, the company implemented two phases of employee stock ownership plans, fully mobilizing the enthusiasm of core employees, effectively closely integrating the interests of shareholders, the company's interests and employees' personal interests, improving employee cohesion and company competitiveness, establishing and improving a benefit-sharing mechanism, and promoting the company's healthy and sustainable development.

(2) Optimize the talent incentive mechanism and improve the competitiveness of the organization

In 2025, Dongbao Pharmaceutical will further rationally plan and formulate a talent incentive mechanism covering multiple systems such as rank, promotion, salary, and performance, and actively promote the implementation of relevant measures to attract and retain outstanding talents and enhance the overall competitiveness of the organization. By simultaneously improving internal fairness and external competitiveness, the company continues to improve a more motivating salary and welfare system to effectively stimulate employees' enthusiasm and creativity.

At the same time, in 2025, the company will focus on the career development of core personnel and other dimensions, gradually build an internal talent training mechanism, and achieve remarkable results in the reserve and training of talents in key positions.

In terms of motivating grassroots employees, the company actively organizes and carries out various internal activities to provide grassroots employees with a platform to demonstrate their self-worth.

Protection of employee rights and interests

The company has set up a appeals center, focusing on protecting the legitimate rights and interests of every employee, striving to create a fair and just corporate development environment, enhancing employees' sense of belonging, and stimulating employees' enthusiasm, initiative and creativity in labor production.

(1) Safeguard legitimate rights and interests

Implement social security and increase employee income. The company has always abided by national laws and regulations, actively fulfilled its responsibilities and obligations in accordance with the new Labor Law, and continuously improved the employment system. Currently, the company has signed a "Labor Contract" with all employees, with a signing rate of 100%. In accordance with the "Insurance Law of the People's Republic of China" and "Housing Provident Fund Management Regulations", "five insurances and one housing fund" are paid for employees who sign labor contracts.

In order to regulate the behavior of the unit and its employees and safeguard the legitimate rights and interests of both the unit and its employees, the company has formulated its corporate rules and regulations in accordance with the provisions of the labor law and its supporting laws and regulations and in combination with the actual situation of the unit. These rules and regulations apply to all employees of the unit, including management personnel, technical personnel and ordinary employees; if there are other regulations for employees in special positions, those regulations shall prevail.

Employees enjoy labor rights such as receiving labor remuneration, rest and vacation, obtaining labor safety and health protection, and enjoying social insurance and welfare. At the same time, they must perform labor obligations such as completing labor tasks, abiding by rules and regulations, and professional ethics.

The unit has the obligation to pay employees labor remuneration and protect employees' legitimate labor rights and interests. At the same time, it enjoys rights such as labor employment, personnel management rights, wage distribution rights, and the right to formulate rules and regulations in accordance with the law.

The principles of equality between men and women and equality between ethnic groups shall be followed when recruiting employees. If there are special regulations on gender or ethnicity for special types of work or positions, those regulations shall apply. The recruitment of employees follows the principle of comprehensive assessment and merit-based recruitment, and employees who do not meet the recruitment conditions will not be recruited.

The unit attaches great importance to employee training and education, and implements pre-employment training and vocational education based on employee quality and job requirements to cultivate employees' professional pride and professional ethics.

The company protects workers’ equal employment rights in accordance with laws and regulations. We should provide equal employment opportunities and fair professional treatment to workers, do not make discriminatory requirements, and regard anti-discrimination as our social responsibility. During the recruitment and employment process, we will not learn in any way the personal information of applicants such as family status, social relationships, marriage, childbirth, non-communicable diseases, etc. that are not related to work. Equal pay for equal work between men and women is implemented. Women who meet the recruitment requirements due to production or work needs have equal employment rights as men and women. When recruiting employees, except for the types of work or positions that are not suitable for women as stipulated by the state, women shall not be refused to be hired or the recruitment standards for women shall be raised on the basis of gender, and the "Labor Protection Regulations for Female Employees" shall be strictly implemented.

(2) Strengthen democratic management

The system of workers’ congresses has been implemented, and democratic management has been continuously strengthened. The company always pays attention to protecting the democratic rights of employees, and constantly adheres to and improves the enterprise's democratic management system with the employee representative conference as the basic form. At the same time, the daily management of the company and matters of concern to employees are basically made public through various forms, and rational suggestions put forward by them are actively adopted, so that the majority of employees can truly know, understand and care about the factory, thus better fulfilling the employee participation function.

(3) Strengthen production safety

Implement the safety production responsibility system and put the physical and mental health of employees first. The company has perfected the safety management system, set up full-time departments and full-time personnel to be responsible for safety work, and established a three-level safety network from the company to the workshop team from top to bottom, and implemented a safety production responsibility system for all functional departments and personnel at all levels from the corporate legal person to the production workers. Driven by the "Fire Safety in Enterprises" campaign jointly launched by the Tonghua City and County fire departments and enterprises, the enterprise's fire safety management work has reached a new level and has become a model for local fire protection work, playing a leading role in promoting the effective development of local fire protection work. The company pays attention to the training and education of employees' safety awareness, safety knowledge, and job safety operating procedures. It carries out safety management activities in conjunction with "Safety Month" every year, strengthens safety awareness education and safety knowledge education for all employees, continuously rectifies safety hazards, and prevents the occurrence of various safety accidents. The construction of various engineering projects implemented by the company strictly adheres to the "three simultaneities" principle and has a solid safety foundation. In the procurement of raw and auxiliary materials, production equipment procurement, and installation processes, high standards and strict requirements are paid attention to safety performance; the equipment, facilities, and supporting technical and technological equipment have reached the domestic advanced level. The factory environment and production operating environment comply with national safety and environmental standards. Pay attention to strengthening labor protection and the installation of safety facilities in daily production. In all types of inspections and monitoring carried out by the national security department, all of them passed the test.

(7) Win-win cooperation and continue to build a green supply chain

Stable supply chain management is the prerequisite for ensuring drug safety, effectiveness and quality controllability. Tonghua Dongbao develops appropriate procurement plans for raw materials, auxiliary materials and packaging materials, builds an advanced procurement system, uses a complete quality assessment system to evaluate suppliers, establishes qualified supplier files and signs supply quality agreements.

Managing and maintaining reliable suppliers is Tonghua Dongbao's long-term goal. Every year, the quality management department will systematically evaluate the suppliers of raw materials, auxiliary materials, and packaging materials this year in terms of supply capacity, inspection qualification rate, abnormal situation handling, etc., to confirm whether the supplier can continue to be a qualified supplier of materials.

Supply chain responsibility management

In accordance with the relevant requirements of the Drug Administration Law, Good Manufacturing Practice (GMP), Chinese Pharmacopoeia and other laws and regulations, Tonghua Dongbao implements comprehensive quality management in all aspects of raw materials and excipients, packaging material procurement, production process, drug release, storage, transportation and marketing, pharmacovigilance, etc. to ensure the safety, effectiveness and quality stability of marketed drugs.

Supply chain supervision system

The company advocates "sunshine procurement" and opens all the requirements, bidding and bidding processes to the outside world to provide suppliers with a fair and impartial platform. It also opens a reporting channel to ensure the transparency of the entire procurement process. As for the information security of suppliers, the company signs quality agreements and confidentiality agreements with suppliers, and also uses encryption software to achieve internal control.

At the same time, regular quality audits are conducted on key material suppliers to ensure the long-term stability, safety and reliability of the supply of raw materials, auxiliary materials and packaging materials. The raw materials, excipients and packaging materials used in medicines come from qualified suppliers. Starting from the time when raw materials, auxiliary materials and packaging materials enter the factory, the quality management department strictly controls the quality of raw materials, auxiliary materials and packaging materials. According to the approved quality standards and inspection methods, each batch of raw materials, auxiliary materials and packaging materials is inspected. Only those that are qualified can enter the production process, thereby eliminating the possibility of unqualified raw materials, auxiliary materials and packaging materials flowing into the production process at the source.

Strictly control material procurement

The company adopts a centralized procurement method, strictly examines supplier qualifications, verifies the quality system of sub-suppliers, establishes long-term strategic cooperative relationships with highly reputable suppliers, and resolutely does not purchase raw materials from small workshops and suppliers without integrity qualifications. Establish a management mechanism that combines procurement quality and job responsibility systems. Members of the company team will be in charge of the procurement of raw and auxiliary materials. Once quality problems are discovered in procurement, the relevant personnel will be held accountable. In addition, the company adjusts the list of sub-suppliers every year based on the procurement and supply of raw and auxiliary materials in the previous year, removing sub-suppliers with poor credit and low evaluation scores from the list, and incorporating sub-suppliers with high credibility, good supply capabilities and supply quality into the company's supply system.

Green procurement policy

Tonghua Dongbao encourages and implements green procurement, production, packaging, and transportation, and proactively assumes responsibility for ecological and environmental protection. During the procurement process, the company conducts strict audits on suppliers' environmental management specifications to ensure that suppliers' EHS qualifications comply with national regulations. In addition, the company encourages suppliers to actively adopt low-carbon and environmentally friendly measures, and will give extra points to suppliers who have low-carbon environmental protection, green production, green transportation and other measures. During the production process, Tonghua Dongbao actively promotes water-saving and power-saving measures. Conduct strict KPI assessments on energy use and promote equipment energy conservation and emission reduction upgrades. During the logistics and transportation process, Tonghua Dongbao promotes simplified packaging to reduce packaging waste as much as possible.

(8) Privacy protection

Tonghua Dongbao adheres to the bottom line of privacy protection and legal compliance, and strictly abides by the "Personal Information Protection Law of the People's Republic of China". When collecting information, only necessary information is collected, privacy protection-related terms and descriptions are set, and customer consent is obtained. We ensure that the collection, storage, use and other processing activities of data comply with the national personal information protection and data security laws and regulations, and collect the necessary data for project implementation in compliance with relevant laws and regulations.

4. Environment: Energy conservation and emission reduction to support the carbon neutrality process

Tonghua Dongbao adheres to the corporate purpose of "improving the quality of all employees, strengthening environmental concepts, implementing digital management, and building a century-old foundation." It is committed to environmental protection, constantly improves its own environmental behavior, strives to create a green, clean, and environmentally friendly enterprise, and realizes the company's commitment to society. During the reporting period, the company continued to increase investment in environmental protection and actively promoted work in energy conservation, green and low-carbon aspects. In 2025, a total of 21.0739 million yuan was invested in sewage treatment, hazardous waste disposal, and self-monitoring of environmental protection.

(1) Establish and improve various systems and build a sound institutional system

Environmental management system and system:

The company began to implement ISO14001 environmental management system certification in 2002 and obtained CCCI and UKAS certificates (valid for three years). In order to effectively implement and manage the modern environmental governance system, promote the continuous improvement of the ecological environment, build ecological civilization and beautiful Dongbao. Adhering to the corporate development policy of "adhering to independent innovation and creating a world brand" and the goal of the new era of "improving the quality of all employees, strengthening environmental concepts, implementing digital management, and building a century-old foundation", the company has established a board of directors with the chairman as the top environmental manager, the deputy general manager as the environmental manager representative, and the Environmental Protection and Project Promotion Office as the executive agency. , the heads of each department are the environmental management internal auditors of the environmental management system, and formulate environmental management manuals, environmental management procedure documents, environmental management operation instructions and other institutional measures that are conducive to ecological and environmental protection, focusing on setting environmental target indicators, clarifying tasks, implementing responsibilities, improving systems, increasing capital investment, and strict supervision and assessment.

The company has established an environmental protection management system, such as: environmental protection department responsibility system, environmental protection management system in the production process, environmental protection facility maintenance and management system, environmental testing management system, environmental protection training and education management system, environmental protection tax accounting and payment and environmental protection fund application management system, environmental protection emergency plan, ISO14001 environmental management system certification management system, etc. Among them, the ISO14001 environmental management system certification management system is the company's operating procedures for environmental management, with a total of 27 management documents. The management system has been in operation so far, and the company regularly conducts internal audits and external certification audits every year. The main focus of the audits are: (1) Organizational environment

The company is located in a complex social environment, cultural environment, business environment and natural environment. It is affected and restricted by various environments and faces risks and opportunities in a complex environment. The company should know what environment it is in and what risks and opportunities it faces in order to seek balance and harmony between environmental protection and organizational development.

(2) Life cycle thinking

The complete life cycle needs to cover the global ecosystem, hundreds of years up and down, and the entire value chain from natural resources to final product disposal. As a small social cell, it is difficult for enterprises to evaluate the complete life cycle. Therefore, enterprises should consider extending the value chain as much as possible in the process of planning, implementation, maintenance and improvement to analyze, evaluate and exert influence, and consider its Increase or decrease the environmental load caused by behavior, reduce the increase in environmental load, or pursue and ensure the reduction of environmental load when implementing environmental protection behaviors, to prevent the original intention of protecting the environment, but the actual effect is damage to the environment, as far as possible from the perspective of expanding time, space and value chain, analyze the profits and losses of environmental load and then take action to effectively achieve the purpose of protecting the environment.

(3) Emphasis on environmental performance

Environmental performance can be divided into environmental status performance (such as biodiversity, land development and utilization efficiency and balanced environmental carrying capacity, etc.), environmental management performance (such as financial performance, stakeholder impact and employee environmental protection-related ability awareness improvement, etc.), and environmental operation performance (such as energy saving and consumption reduction, control and reduction of emissions, etc.).

(4) Emphasis on leadership

The establishment, implementation, maintenance and improvement of the environmental management system requires resources, scientific methods, and the attention and participation of all employees. It is inevitable that the top managers of the organization must first have the ability and awareness to understand the significance of protecting the environment for organizational development, social development, and the sustainable development of human civilization. Only by giving high attention and support can ensure the adequacy, appropriateness, and effectiveness of the operation of the environmental management system. The success of the system cannot be separated from the understanding and support of the top managers.

(5) Protect the environment

Pollution prevention in the traditional sense, although it is called "prevention", is still narrow and extreme. Pollution prevention should be extended to a wide range of environmental science fields. Enterprises should not only pay attention to "pollution" in the operation of environmental management systems, but should operate and manage from a comprehensive perspective that is beneficial to the environment, such as: sustainable utilization of resources, climate change mitigation, adaptation and protection of ecosystems and biodiversity, etc. These will be the direction and goals of the operational performance of the environmental management system.

(6) Pay attention to outsourcing activities

With the refinement of social division of labor, enterprises have changed the traditional large and comprehensive model in the past, resulting in a large number of outsourcing activities. Today's outsourcing is reflected in the two major ways of bringing in and going out, that is, outsourcing the management and operation of facilities or activities within the organization. For example, many Many organizations outsource the operation of auxiliary facilities such as canteens, greening, shuttle buses, and even power transformation and distribution, warehouses, and sewage treatment plants. Another form is to outsource the processes required by the organization itself. For example, the outsourcer completes cartons, instructions, cold chain transportation and other processes outside the enterprise. For outsourced management of enterprises, the enterprise fully bears its environmental impact responsibilities and obligations, but it is the enterprise's indirect behavior rather than direct operational control, which increases risks; for the process of outsourcing to outside the enterprise, the enterprise may need to bear joint and several legal liability risks, operational order risks and social image risks caused by supply chain stability, etc., all of which require enterprises to pay close attention and strengthen management. At the same time, outsourcing should not be used to shirk the enterprise's environmental responsibilities.

(7) Attention to emergencies

Emergency situations are uncertain in terms of timing and outcome, and whether they cause personal injury, property loss or secondary environmental pollution, they are a waste of resources and damage to the environment. At the same time, according to statistics, more than 40% of major environmental pollution accidents in recent years originate from secondary pollution in emergencies. Therefore, emergencies, whether they involve safety or environmental pollution, should be treated as environmental protection measures. The environmental management system focuses on the focus, and the contract parties in the operation of the enterprise often become major instability factors that may lead to emergencies or emergencies due to factors such as insufficient understanding of the enterprise, personnel's education level and understanding and acceptance ability being different from the enterprise itself. Therefore, the new standard emphasizes the requirements for emergency situations and the prevention and response of contract parties in emergency situations. (8) Risks and opportunities

In the operation of an enterprise, there are risks and opportunities based on its impact on the corporate environment and the environment. In the past, the operation of the system reflected more attention to risks, especially legal risks, value chain risks and social image risks caused by harmful environmental impacts. There was insufficient grasp of opportunities, and the environmental management system Risks and opportunities exist during operation. While avoiding and reducing risks, you should seize opportunities. For example, national environmental protection policies, international environmental protection concerns, etc. may bring business opportunities or adopt more economical environmental protection methods. While reducing risks, you can obtain opportunities and seek a win-win situation for environmental protection and enterprise development. (9) Internal and external testing

The company's environmental testing mainly includes online monitoring, comparison testing, and routine monitoring required for pollution discharge licenses. Online monitoring: The inlet and outlet of the company's sewage treatment system are equipped with online monitoring systems and are connected to the ecological department platform. The main pollutants monitored are COD, BOD and ammonia nitrogen. The implementation standard is the "Bioengineering Pharmaceutical Industry Water Pollutant Discharge Standard". The company's coal-fired boilers and gas-fired boilers in the boiler room are equipped with online monitoring systems, which are connected to the ecological department platform. The main pollutants monitored are SO2, nitrogen oxides and particulate matter. The implementation standard is the "Boiler Air Pollutant Emission Standard" (GB13271-2014). The online monitoring system uploads data to the ecological department’s platform every 15 minutes. Comparative testing: Comparative testing is conducted at least once every quarter to compare and judge whether the online monitoring system data is accurate, and is implemented by a third-party qualified unit. Routine monitoring required by the pollution discharge license: The company entrusts a third party to inspect the organized exhaust outlets according to the testing items and frequency specified in the pollution discharge license. A total of 14 points of organized exhaust outlets and 4 points of exhaust gas at factory boundaries were detected. According to the standard requirements, there are 11 exhaust gas detection indicators at organized exhaust outlets and factory boundaries, all of which are commissioned.

(10) Set reasonable environmental management goals

Strictly abide by various national and local environmental laws and regulations and perform compliance obligations;
Environmentally friendly products are used as raw materials and auxiliary materials to prevent pollution throughout the life cycle. Explore environmentally friendly production processes and continuously improve. Carry out "three wastes" emission management, pollution prevention, use less or no pollution and low energy consumption processes to control resource consumption.
Strengthen management in accordance with ISO14001 standard requirements, strengthen fire safety management, improve environmental performance, and achieve environmental goals.
Spread the concept of environmental protection, improve environmental awareness, involve all employees in system operation control, and create an excellent working and living environment.

Environmental management system certification

Pass the ISO14001 environmental management system supervision and audit in 2025 and maintain registration qualifications.

EHS management:

Tonghua Dongbao has established an EHS management system in line with its own development conditions. Through effective EHS management, the organization can reduce risks, improve production efficiency, enhance brand reputation, operate within the framework of sustainable development, achieve environmental sustainability, personnel health and safety, and achieve a balance between economic benefits and social responsibility.

In 2025, based on the actual situation of safety production management, the company further improved the safety production grid responsibility system and quantitative assessment details, and extended it to the five-level grid and six-level grid responsible persons, further clarifying the safety responsibilities of each grid level, and effectively achieving "horizontally to the edge, vertical to the end", forming a three-dimensional grid responsibility system covering all aspects of supervision, and realizing a safety production management pattern in which there are grids in the grid, people in the grid, and everyone is responsible. Through quantitative assessment, all units and departments are urged to further improve the safety production responsibilities of each level of the grid, and based on the assessment expert group's common and individual issues and rectification opinions raised in the quantitative assessment summary meeting, the implementation of rectifications is strengthened, and the safety production status of units and departments is gradually improved.

The company actively carries out multi-level EHS education, including the organization's EHS policies, procedures and standards, as well as potential risks they may face at work and how to respond. Continuously promote EHS policies, goals and achievements through internal communications, meetings, employee handbooks and other channels, encourage employees to actively participate in the EHS improvement process, and provide channels for employees to feedback problems, make suggestions and participate in the formulation of solutions. In 2025, 9 safety trainings for all employees were organized, with 3,454 participants; 6,446 test papers were assessed; 61 emergency drills were conducted, with 2,813 participants.

Emergency plan for environmental emergencies

In order to conscientiously implement national environmental protection and safety laws and regulations, ensure that environmental emergencies can be controlled in a timely manner after they occur, prevent the spread and pollution of major accidents, effectively organize rescue and rescue, and ensure the personal safety of employees and the safety of company property, based on the "National Emergency Plan for Environmental Emergencies" and other relevant documents, and combined with the actual situation of the company, the company prepared a corresponding emergency plan for environmental emergencies in 2022, revised it in March 2025, and filed it with the superior environmental protection department.

In March 2025, the company revised the original emergency plan for environmental emergencies and passed expert review. The emergency plan was sent to the Tonghua County Ecological Environmental Protection Comprehensive Administrative Law Enforcement Brigade for filing. The filing number: 220521-2025-008-M.

The company prepared an emergency plan for environmental emergencies in Dongbao Biopharmaceutical Industrial Park (Wanwanchuan Plant) in July 2025 and passed expert review. The emergency plan was sent to the Tonghua Ecological Environment Emergency Support Center for filing. The filing number is: 220504-2025-033-L.

(2) Actively respond to climate change

In recent years, climate change has become one of the biggest threats facing mankind and has become a global issue. Research shows that climate change not only affects the earth's ecosystem and environment, but also has a profound impact on the economy, society and financial markets. Problems such as extreme weather events, rising sea levels, and resource shortages have begun to emerge and will further intensify, threatening global stability and sustainable development. A report by the United Nations Intergovernmental Panel on Climate Change (IPCC) shows that since the industrial revolution, fossil fuel burning and unequal and unsustainable energy and land use have caused global temperature rise to be 1.1°C above pre-industrial levels.

Therefore, enterprises not only need to be aware of the risks brought by climate change, but also need to actively respond to it and incorporate climate change into business strategies and investment decisions. By reducing greenhouse gas emissions, strengthening climate resilience, and promoting sustainable development, companies and investors can achieve long-term business growth and make positive contributions to society and the environment.

Climate change management:

Tonghua Dongbao attaches great importance to climate change management and continuously improves its internal management systems and systems. The company's climate change risk management involves R&D, production, operations and supply chain. At each major operating base, we have dedicated departments and managers responsible for implementation.

At the same time, the company attaches great importance to climate-related information disclosure, improves transparency, and discloses greenhouse gas emissions, climate risk assessment, identification and related response measures to stakeholders. This helps build trust, reduce investment risk, and facilitate the development and implementation of climate policy.

Tonghua Dongbao conducted climate risk assessment based on TCFD recommendations and adopted scenario analysis method, identifying six key risks and opportunities for the company to evaluate low-carbon transformation from the perspective of costs and resources, which helps the company better understand the potential impact that climate change may have on daily operations and management.

Identify climate risks:

(1) Transformation risk

Type of risk Climate-related risks Potential impacts

Climate change may lead to stricter government enforcement

Cater to policy changes that may pose risks to profitability and business policy and regulatory measures to reduce greenhouse gases

business model has a negative impact

body emissions and adapting to climate change

The company actively explores energy-saving technologies in the production process to promote the development and application of green technologies and management models, and increases the technical risks of clean energy.

To meet technical and management challenges, the purchase of energy-saving equipment and equipment modifications may lead to increased costs.

Market risk Changes in customer behavior: Customers increasingly pay attention to the industry, which may increase production costs

Upstream and downstream carbon emissions are more inclined to choose to save

energy, low carbon products

Raw material supply: climate change may impact

Supply of raw materials, resulting in production costs

increase

Stakeholders continue to pay attention to environmental information. If the company's low-carbon transformation fails to achieve the goal, the reputation of stakeholders will be risked.

Raise expectations and impact company reputation

(2) Physical risks

Type of risk Climate-related risks Potential impacts

Extreme weather may cause the company's business continuity due to extreme weather events such as typhoons, heavy rains, snowstorms, and floods.

Acute risks: The severity of aeration events increases due to impacts, rising raw material prices, etc.

Add company operating costs

Rising average temperatures, loss of biodiversity, etc.

Chronic risks increase the cost of company infrastructure construction

long term climate change

Seize the opportunities in climate change:

Type of opportunity Climate-related opportunities Response measures

Investing in energy-saving technologies and facility renovations, resource efficiency and the rise of new technologies can not only reduce greenhouse gas emissions but also lower energy costs and improve competitiveness.

Clean energy sources such as solar energy, wind energy, and water energy are widely used. Increase the use of renewable energy and reduce the use of chemical energy sources.

Extensive use and dependence on fossil fuels

Use low-carbon energy products and services as much as possible in the production process to enhance the company's reputation, maintain the company's good image and technology, and provide customers with low-carbon products and services.

Coping with climate change:

Tonghua Dongbao is well aware of the impact of climate change on society, and has gradually included climate change response as an important consideration in the company's production and operations. During the reporting period, the company actively promoted transformation projects in energy conservation, green and low-carbon aspects, and made effective progress. In addition, the company will carry out special renovation projects for gas boilers and condensate water in 2023, which can effectively save energy and save production costs.

Tonghua Dongbao always pays attention to the impact of the company's production and living activities on climate change. Since 2018, the company has successively dismantled coal-fired boilers and converted them into natural gas boilers. Currently, all boiler fuels have been changed from coal to natural gas. This reconstruction work will reduce carbon dioxide emissions by more than 12,000 tons in 2025.

Since the company built residential areas for surrounding residents in 1994, the company's boilers have provided central heating for residents' living places, changing the original stove-burning heating method of Dongbao New Village residents and reducing the consumption of burning straw, trees and coal. With an annual investment of approximately 3 million yuan, it is expected to reduce carbon dioxide emissions by approximately 2,278 tons per year.

(3) Pollution prevention and ecosystem protection

Wastewater management

(1) System and system

In order to ensure the stable operation of the sewage station, the sewage treatment station is equipped with full-time operators of sewage facilities, which operate in three shifts. Various procedures for the sewage treatment station have been formulated: standard operating procedures, standard operating procedures for water quality monitoring, inspection procedures, maintenance procedures, site management and sanitation procedures, shift handover procedures and other systems and corresponding records. The sewage station operators are trained and qualified only before they can take up the job to ensure that the system can be strictly implemented.

The sewage treatment station has installed an online monitoring system for wastewater pollution sources and is connected to the environmental protection department platform to monitor the main emission indicators of the sewage treatment station in real time. The main monitoring indicators are flow, pH value, ammonia nitrogen, and COD. The current sewage station is operating stably, and all sewage treated is qualified and discharged up to standards.

(2) Goals and plans

The engineering project of Dongbao Biopharmaceutical Industrial Park's insulin degludec API and injection production base has completed phased acceptance and has been put into use. In this project, the acetonitrile solution is toxic, flammable, explosive and volatile. Discharging it into the sewage treatment station will increase the load of the sewage treatment station, and it is difficult to process, which can easily cause serious environmental pollution. From the perspective of long-term considerations such as environmental protection and economic interests, the company has implemented an acetonitrile recovery workshop construction project to recover, purify and reuse the used acetonitrile waste liquid. The total recovery rate is more than 95%, the processing capacity is 8000L/h, and the daily processing capacity can reach 64t. This can reduce the impact of acetonitrile waste liquid on the environment and save enterprises the cost of purchasing acetonitrile raw materials. The operation of the sewage treatment workshop ensures that each ton of wastewater can be effectively treated and discharged up to standard. When the wastewater treatment meets the discharge standards and the sewage station is in stable operation, we will continue to increase supervision and optimize treatment measures to save energy and reduce consumption, and achieve sustainable development of the enterprise.

(3) Relevant measures to reduce the discharge of wastewater pollutants

At present, the company has a total discharge outlet of a sewage treatment station. The capacity improvement and upgrade construction was completed in June 2020. The project invested more than 40 million yuan. It mainly treats intermittent discharge of biopharmaceutical sewage. The main pollutants include chemical oxygen demand (COD), ammonia nitrogen, total nitrogen, and total phosphorus. The sewage is treated using physical and biochemical treatment methods. The designed treatment capacity of the sewage station reaches 2068m³/d, and the overall pool capacity is nearly 20000m³, which can meet the drainage needs of the existing company's production workshop and subsequent expansion of the company's production workshop. All wastewater from Tonghua Dongbao is discharged into the sewage treatment station for treatment and then discharged. The implementation standard is the "Bioengineering Pharmaceutical Industry Water Pollutant Discharge Standard" (GB21907-2008). An online monitoring system is installed on site and connected to the ecological department platform to continuously meet discharge standards.

After the sewage station was put into use, the operation of the sewage station has been stable so far, and all sewage discharges have met the standards. During this period, we also reduced the number of source pollutants by transforming the production process of the extraction workshop; optimizing the regulating function of the water storage and regulating tank; introducing advanced nitrification return equipment; selecting types of carbon sources, changing chemical dosing methods and other measures to reduce pollutant emissions and improve the treatment efficiency of the sewage station.

The company will discharge 407,295m³ of wastewater throughout 2025.

Wastewater Discharge Information Sheet

Emission concentration Permitted emission concentration Company name Pollutant name Number of emission outlets

(mg/L) (mg/L)

COD 1 35.852 80

Ammonia nitrogen 1 0.296 10

Tonghua Dongbao

Total phosphorus 1 0.138 0.5

Total nitrogen 1 7.634 30

The incoming water from the sewage station is divided into high-concentration and low-concentration parts. The high-concentration and low-concentration parts are treated separately, which not only saves operating costs but also achieves environmental benefits of treatment. The high-concentration wastewater enters the UC hydrolysis and acidification tank through the high-concentration regulating tank. The hydrolysis and acidification treatment method is the early stage of anaerobic treatment. The anaerobic degradation process of polymer organic matter can be divided into four stages: hydrolysis stage, fermentation (or acidification) stage, acetogenesis stage and methanogenesis stage.

According to the different growth conditions of methanogens and hydrolytic acidogenic bacteria, the anaerobic treatment is controlled under conditions containing a large number of hydrolyzing bacteria and acidifying bacteria. Hydrolyzing bacteria and acidifying bacteria are used to hydrolyze insoluble organic matter in the water into soluble organic matter, and convert difficult-to-biodegrade macromolecular substances into easily biodegradable small molecule substances, thereby improving the biodegradability of wastewater and providing a good water quality environment for subsequent biochemical treatment. This site adopts an upflow hydrolysis and acidification process. Using point-to-point water distribution, the sludge can be quickly and evenly mixed. In addition, the bottom water distribution method can not only ensure the sludge concentration and mud-water mixing effect, but also control the generation of flammable and odorous gases, so that the residence time can be shortened with better treatment effect, thereby reducing the pool volume, saving land space, and reducing investment costs. At the same time, based on years of operating experience, it was found that placing flat-shaped biological fillers in the middle and upper part of the hydrolysis tank can increase the sludge concentration by 800-1500 mg/L; at the same time, placing the flat-shaped fillers in the tank at an angle of 55-80 degrees to the horizontal plane can also improve the solid-liquid separation efficiency.

The hydrolysis and acidification effluent and low-concentration wastewater are mixed in the mixing buffer tank, and play the role of heating and acid-base adjustment. Wastewater enters the biochemical process section. The biochemical section uses the HBF process. For high COD and high ammonia nitrogen, and the carbon-nitrogen ratio is lower than 10, a two-stage AO process is required, namely anoxic tank, aerobic tank, post-anoxic tank, post-aerobic tank and sequential batch sedimentation tank. The core of the AO biochemical process is the microbial biomass, and the core of solving low carbon-to-nitrogen ratio wastewater is to enrich the dominant bacterial species in the system, that is, there are enough denitrifying bacteria in section A and enough nitrifying bacteria in section O, so that the problems of high COD and high ammonia nitrogen can be solved at the same time. Consider combining the activated sludge method with the membrane method in the AO system, relying on the membrane method to enrich dominant bacterial species. Therefore, we added enzyme floating fillers that are prone to the growth of microorganisms in the AO system, and enriched the dominant bacterial species by improving the performance of the fillers. The enzyme floating packing adopts a special structure of "double-layer membrane" and "void layer", thereby achieving the characteristics of large specific surface area and high porosity. The enzyme floating filler has been modified with ionized materials and blended with hydrophilic polymers during processing, and the surface is positively charged, which will make it easier for microorganisms to attach and immobilize on the surface of the carrier. Enzyme floating packing has good mechanical strength while ensuring a large specific surface area. No damage will occur during hydraulic shear and friction and collision between carriers. Since modified polymer materials are mainly used as the base material in the production process, they are acid and alkali resistant, better adaptable to difficult sewage containing organic matter (hydrocarbons, benzene), have strong corrosion resistance, and have a service life of more than 6 years. It can be effectively used in wastewater containing special pollutants (such as phenols, toxic and harmful metal ions, high acidity, high alkali, etc.). In addition, when the number of microorganisms is large, an efficient separation system is required, otherwise the sludge will be easily lost. Therefore, a unique separation system, static separation, is set up. Its separation efficiency is several times that of the traditional radial flow separation method, which can greatly improve the separation effect of sedimentation. The improved AO is compared with the traditional AO process. Has the following characteristics:

The number of microorganisms is large. The total amount of microorganisms in the biological pool is composed of suspended activated sludge and biofilm with attached organisms. The sludge concentration can reach more than 6000 mg/L. Even if the biological load does not increase, the system can withstand higher volume loads;
It has strong impact load resistance. During the process water inflow, it is equivalent to a completely mixed reactor with a strong dilution function, so it has strong impact load resistance and poison resistance. The sedimentation period is static sedimentation. With good sedimentation conditions, a high sludge concentration can be accumulated in the reactor;
Based on the principle of biological reaction kinetics, multiple pools are operated in series or parallel, so that the flow of sewage in the reactor presents a complex flow pattern of overall push flow and complete mixing in different areas, which not only ensures stable treatment effects, but also improves volume utilization;
Good denitrification performance. The filler in the biochemical reaction zone allows a stable three-dimensional niche combination of different bacterial species to exist in the reactor. The nitrification and denitrification processes can be organically combined and carried out simultaneously, thereby reducing the pH changes in the system during the nitrification and denitrification processes, reducing the demand for carbon sources and alkalinity in the denitrification process, resulting in a high degree of denitrification and stable effects.

The aeration tank in the biochemical system is the core part of the biochemical tank. The operation of the aeration tank mainly depends on the aeration fan. The aeration fan of this sewage station uses an air suspension fan. The air suspension blower bearing uses air buoyancy instead of lubricating oil. It uses the surrounding air instead of lubricating oil. Therefore, it can operate at different temperatures and speeds. The air suspension fan is simple to maintain and has low maintenance cost. Compared with the Roots blower, the air suspension fan is very energy-saving and has low noise and no noise pollution.

After the wastewater is biochemically treated, the effluent can meet the discharge standards. Coagulation sedimentation is used as a security measure to further remove it when the effluent does not meet the standard. The sludge produced by the sewage treatment system uses a high-pressure plate and frame dehydrator as the sludge filter press equipment. Odorous gases will be produced during the sewage treatment process, and the combined process of "dual-media low-temperature plasma deodorization + induced draft fan + countercurrent atomized alkali washing spray tower" is adopted. After being collected by the exhaust gas collection system, the odorous gases generated in each sewage pool and structures first enter the dual-media low-temperature plasma deodorization equipment. Under the bombardment of the plasma high-voltage electric field, the molecular bonds of the odor molecules in the exhaust gas are quickly broken, cracked and reorganized into new small molecule substances. After plasma treatment, the waste gas passes through the alkali washing tower to absorb water-soluble odorous substances, and the clean air is discharged through the exhaust pipe at high altitude.

The company carries out automatic and self-monitoring as required every day, and has set up a total of 5 self-monitoring points, including 1 wastewater discharge outlet, 4 boiler flue gas discharge outlets; 4 noise monitoring points, namely the east factory boundary, the west factory boundary, the south factory boundary, and the north factory boundary. According to the requirements of the sewage discharge permit, 17 wastewater indicators should be monitored, of which COD, ammonia nitrogen, total nitrogen, total phosphorus, pH value, and flow rate are automatically monitored; color, acute toxicity, total organic carbon, animal and vegetable oils, and total cyanide are manually monitored once a quarter; five-day biochemical oxygen demand, volatile phenol, formaldehyde, acetonitrile, total residual chlorine, and fecal coliforms are manually monitored once a month.

After the pharmaceutical wastewater in the factory is treated by the above process, the effluent can meet the requirements of the "Water Pollutant Discharge Standard for Bioengineering Pharmaceutical Industry". The treated sewage that meets the standard is discharged into the Ermi River through open channels. An automatic water quality mixing sampling machine is set up in the open channel, equipped with an online flow meter, an online pH meter, an online COD meter, an online ammonia nitrogen meter, an online total nitrogen meter, and an online total phosphorus meter. Real-time 24-hour monitoring and control of the effluent water quality is carried out. At the same time, it is networked and jointly controlled with the environmental protection department to ensure that all sewage is treated and discharged qualified.

Exhaust gas management

(1) System and institutional construction

The company strictly abides by the requirements of current laws and regulations related to environmental protection, and has formulated management systems for environmental protection of construction projects, maintenance of environmental protection facilities, environmental noise control, water pollution prevention and control, air pollution control, and solid waste management. It has also prepared contingency plans for environmental emergencies and effectively implemented prevention and control measures for waste gas, waste water, noise, and solid waste.

(2) Goals and planning

Some of the company's production workshops emit VOCs volatile gases, and the pollutant emission concentration has been tested to be lower than the national emission standards. The company has formulated a VOCs volatile gas emission reduction design in line with the national carbon peak and carbon neutrality goals. The facility will operate normally throughout 2025.

(3) Measures to reduce exhaust emissions

The company currently has 1 coal-fired boiler chimney and 3 natural gas boiler chimneys. The exhaust gas mainly comes from natural gas boiler combustion flue gas, laboratory exhaust gas, and fermentation tail gas during the production process. The main pollutants are SO2, nitrogen oxides, and particulate matter. The implementation standard is the "Boiler Air Pollutant Emission Standard" (GB13271-2014).

The company's fermentation waste gas uses a sterilizing filter-alkali absorption device to process the fermentation production tail gas; QC laboratory and sterilization waste gas use activated carbon adsorption for treatment. In 2024, more than 300,000 yuan was spent to transform the organized exhaust outlet activated carbon adsorption boxes in the company's seven workshops and improve the waste gas treatment facilities of the new project. The project was completed in late May 2024. After the transformation, the organized exhaust outlet activated carbon adsorption boxes operated normally, and the waste activated carbon generated was disposed of as hazardous waste.

The Tonghua Dongbao boiler room originally had one 20t/h coal-fired steam boiler and four 10t/h coal-fired steam boilers. Among them, the original four 10t/h coal-fired steam boilers were installed and put into use in 1999. The equipment is seriously aging and the thermal efficiency is lower than 45%, which can no longer meet production needs. From 2017 to 2020, the company invested more than 10 million yuan to renovate the boiler room, dismantling the original four 10t/h coal-fired steam boilers and building three new 20t/h gas-fired steam boilers and one 20t/h coal-fired steam boiler. Three of the gas-fired steam boilers are the main boilers and are equipped with a central control system and low-nitrogen burners to achieve the purpose of reducing exhaust gas pollutant emissions. The original 20t/h coal-fired steam boiler and the newly built 20t/h coal-fired steam boiler are emergency backup boilers. Through the transformation of the boiler room, natural gas clean energy has been used to replace coal-fired fossil energy. The concentration of flue gas pollutants after combustion is lower than the national standard and can be emitted without the need for treatment facilities. The annual pollutant emissions that can be reduced are: 7.86 tons/year of soot; 23.38 tons/year of sulfur dioxide; and 27.51 tons/year of nitrogen oxides.

The company cooperates with China Resources Gas Company and uses pipeline natural gas from China Resources Gas Company as boiler fuel. Gas boilers will be used throughout 2025, and the original coal-fired boilers will be used as emergency backup boilers. The operation mode of the three gas boilers is 1 on, 2 in standby or 2 on and 1 in standby. An online monitoring system is installed on site and is connected to the online monitoring platform of the ecological department.

In 2024, according to the requirements of the Tonghua Municipal Ecological Environment Bureau, the low-nitrogen combustion transformation of three natural gas boilers will begin. The transformation is currently in progress and is expected to be completed within 2026.

In addition, the company conducts VOCs treatment on the tail gas emitted from the fermentation workshop and laboratory of the API production base. The treatment facilities have completed independent environmental protection acceptance and the VOCs treatment facilities will be operating normally in 2025.

The waste gas from the sewage station adopts the combined process of "dual-media low-temperature plasma deodorization + induced draft fan + countercurrent atomization alkali washing spray tower". After being collected by the exhaust gas collection system, the odorous gases generated in each sewage pool and structures first enter the dual-media low-temperature plasma deodorization equipment. Under the bombardment of the plasma high-voltage electric field, the molecular bonds of the odor molecules in the exhaust gas are quickly broken, cracked and reorganized into new small molecule substances. After plasma treatment, the waste gas passes through the alkali washing tower to absorb water-soluble odorous substances, and the clean air is discharged through the exhaust pipe at high altitude.

The company's annual waste gas emissions in 2025 will be 105 million standard m³

Natural gas boiler flue gas emission table

Emission concentration Permitted emission concentration Company name Pollutant name Number of emission outlets

(mg/m³) (mg/m³)SO 3 1.20 50

Tonghua Dongbao Nitrogen oxide 3 120.50 200

Particulate matter 3 0.75 20

Waste disposal:

The company has formulated strict management systems for hazardous chemicals procurement, warehousing, delivery, receipt, preparation, use, and disposal. It has established MSDS for hazardous chemicals, prepared "Hazardous Chemicals Emergency Disposal Cards" and distributed them to relevant work positions to ensure that users fully understand their hazards and safe use methods, and thus take necessary protective measures and emergency measures. In 2025, the standardized environmental management of hazardous waste will be improved and passed the assessment and review by the Tonghua Municipal Ecological Environment Bureau.

In 2025, the company produced a total of 92.86 tons of hazardous waste, all of which were legally disposed of by units with hazardous waste business licenses. The annual disposal volume was 92.86 tons.

Clean production audit status:

The company's new underground storage tank construction project will be equipped with VOCs treatment facilities. The treatment facilities will be designed, constructed and put into trial operation at the same time as the new construction project. The treatment facilities will adopt a secondary activated carbon adsorption process. During the operation in 2025, the VOCs treatment facilities will operate normally and the generated waste activated carbon will be disposed of as hazardous waste. Part of the traditional Chinese medicine residue is made into organic fertilizer in the green workshop where the company is located, and the rest is sent to the local waste incineration power plant for disposal; the sludge generated from the sewage station is general solid waste, and the company entrusts a third-party company to dispose of it. The sludge is used to make gardening soil and is not used for growing edible agricultural products.

(4) Resource utilization and circular economy

Energy management system and system

In order to implement the "Energy Conservation Law", rationally utilize energy, reduce energy consumption, and improve energy utilization efficiency, the company has formulated the "Energy Conservation Management System" to strengthen energy management and take measures that are technically feasible, economically reasonable, and consistent with environmental protection requirements to reduce losses and waste in all aspects of the production process and use resources more rationally and effectively. The company has now established an energy-saving leading group, with one main leader serving as the leader of the energy-saving leading group, and five heads of production, technology, finance, equipment, quality inspection and other departments as members of the energy-saving leading group. Under the leadership of the company's energy-saving team, a three-level energy-saving management network system has been formed. The energy conservation management department has set up energy management positions and equipped four people with professional knowledge, practical experience and technical titles of engineers or above as full-time energy managers, responsible for the supervision and inspection of energy utilization. Regularly submit energy utilization reports to the energy conservation administrative department and other relevant departments. The company has established a sound energy management system in accordance with the "Energy Management System Requirements" (GB/T-23331); in accordance with the "General Principles for the Equipment and Management of Energy Measuring Instruments in Energy-Consuming Units" (GB17167), the company has strictly equipped energy measuring instruments and established a three-level energy metering management system.

Raw material and packaging material management system and system

The hazardous waste temporary storage warehouse was rebuilt in 2018. The hazardous waste warehouse implemented an environmental impact assessment and carried out relevant acceptance inspections. The warehouse has a total area of 180 square meters, with a maximum storage capacity of 30 tons. The ground is poured with anti-seepage concrete, and anti-static facilities and explosion-proof facilities are installed on the ground and walls. The indoor height is -0.5 meters, and anti-seepage ditches and anti-seepage pits are set up. Liquid hazardous waste and solid hazardous waste are stored in separate zones, and the anti-seepage layer around the walls of the warehouse area is reinforced. A hazardous waste management leading group has been established. The hazardous waste temporary storage room is equipped with full-time and part-time on-site management personnel. It has formulated "Hazardous Waste Library Management Procedures", "Solid Waste Management Procedures", "Hazardous Chemicals Safety Accident Emergency Plan", "Hazardous Chemicals Management Procedures", "Emergency Preparedness and Response Management Procedures" and "Environmental Protection Procedures". "Monitoring and Measurement Management Procedures", "Environmental Record Management Procedures", "Environmental Risks and Opportunities Response Management Procedures" and other environment-related rules and regulations, and conduct drills in strict accordance with the document requirements, formulate drill plans, conduct a summary of this drill based on the drill process, and the summary requires that problems must be discovered and rectification suggestions must be put forward.

Clean energy/renewable energy use

The company cooperates with Tonghua China Resources Gas Company, and Tonghua China Resources Gas Company lays a natural gas pipeline to the Dongbao boiler room. Since the natural gas pipeline began to supply gas, the company has mainly used natural gas boilers, supplemented by coal-fired boilers as backup, using natural gas clean energy to replace coal-fired fossil energy, reducing emissions of particulate matter, sulfur dioxide, nitrogen oxides, slag, etc.

Renovate the boiler room and use clean energy

The Tonghua Dongbao boiler room originally had one 20t/h coal-fired steam boiler and four 10t/h coal-fired steam boilers. Among them, the original four 10t/h coal-fired steam boilers were installed and put into use in 1999. The equipment is seriously aging and the thermal efficiency is less than 45%, which can no longer meet production needs. From 2017 to 2020, the company renovated the boiler room, demolished the original four 10t/h coal-fired steam boilers, and built three new 20t/h gas-fired steam boilers and one 20t/h coal-fired steam boiler. Three of the gas-fired steam boilers are the main boilers and are equipped with a central control system and low-nitrogen burners to achieve the purpose of reducing exhaust gas pollutant emissions. The original 20t/h coal-fired steam boiler and the newly built 20t/h coal-fired steam boiler are emergency backup boilers. Through the transformation of the boiler room, natural gas clean energy has been used to replace coal-fired fossil energy, and the annual pollutant emissions can be reduced by: 7.86 tons/year of soot; 23.38 tons/year of sulfur dioxide; and 27.51 tons/year of nitrogen oxides.

Electrical energy saving

(1) Promote and implement the peak-avoiding and off-peak work of non-continuous power equipment in each workshop to reduce the unit price of electricity, such as the water supply time of the water pump room, the starting time of the circulating water pumps in various heat exchange stations, the coal loading time of the boiler room, and the time of the mixer and pulverizer in the extraction workshop. Peak electricity consumption hours should be avoided as much as possible. Specific plan: Improve the measurement and assessment system, implement peak, valley, and flat measurement, implement unit product power consumption assessment and rewards, and fully mobilize the enthusiasm of various power-consuming departments and power-consuming units to avoid peaks and use valleys. The conscientious implementation of this work has saved RMB 200,000 in electricity bills every year.

(2) Make full use of the advantages of the company's ring network power supply, rationally activate the transformer according to load changes, and reduce basic electricity expenses. The company's electricity load is higher in summer and autumn than in winter and spring. Therefore, the transformer capacity is started and stopped in a timely manner, saving about 150,000 yuan in electricity expenses every year.

(3) The company has strengthened daily management of reactive power compensation equipment and personnel in each power distribution room, formulated a complete job responsibility system, strengthened assessment efforts, and ensured that the company's power factor reached above 0.95, so that it can obtain the highest reward electricity fee from the Electricity Bureau every month. The annual reward is more than 180,000 yuan.

(4) Gradually eliminate old power transformers and use high-efficiency energy-saving distribution transformers such as S11 and SCB11. The loss index is approximately 21% lower than that of the S7 model. The no-load power consumption of the transformer can be saved by RMB 50,000 throughout the year. (5) Strengthen lighting management, adopt green energy-saving technology, and choose energy-saving lamps. Reduce the number of lights turned on in office lighting. Last year, the company replaced all second-phase biology workshops and office locations with LED lights, and the company's street lighting systems were all replaced with LED light sources, which brought gratifying economic benefits to the company.

(6) Dongshan Heat Exchange Station: All electrical components have been replaced and a microcomputer control system has been adopted. Automatically adjust the speed and start-up time of the circulation pump, water replenishing pump according to indoor and outdoor temperatures, saving about 50,000 yuan in electricity bills every year.

(7) Install frequency conversion control on the vacuum pump, air-conditioning cooling water system, reservoir water pump system, and boiler water pump system in the workshop to improve the degree of automation, which can save about 100,000 yuan in electricity bills throughout the year.

(8) The company has implemented energy-saving evaluation and energy-saving monitoring for all projects under construction, and replaced obsolete motors to ensure the effective use of electric energy and reduce energy losses.

Water saving measures

(1) Regularly conduct water balance tests during the operation of the water system, and timely detect water leakage links through water supply and water balance analysis; strengthen production and domestic water process management, improve water use efficiency, and achieve water conservation; the water balance measurement system consists of 19 electromagnetic flowmeters and 2 mechanical flowmeters.

(2) Calculate the total water supply and the total water consumption of each secondary water unit every day, discover problems in a timely manner, and deal with them in a timely manner to eliminate the phenomenon of "run, leak, drip, and leak". Water balance calculations are required every month.

(3) Each secondary water-using unit must ensure the recovery of condensate water and the use of circulating water. Use moisture workshops to set up measuring instruments for different purposes, and take effective measures to avoid pipe network leakage. Improve the water conservation management system, strengthen the metering of each water point, and reduce the phenomenon of "run, leak, drip and leak" in each system. The main water supply pipes and circulating water replenishment pipes are equipped with flow meters or water meters to monitor water consumption at all levels in real time and improve the metering rate of graded water meters. (4) All office buildings and production workshops use water-saving appliances and equipment. Urinals and squat toilets use delayed self-closing flush valves or infrared induction flush valves. Sitting toilets use two-speed (3L, 6L) water tank toilets. Washbasins in public toilets use delayed self-closing mixing faucets or infrared induction faucets. The water saving rate is not less than 8%.

(5) Transform the company's steam supply and return pipe network and replace all the original underground steam pipe networks with above-ground pipes, which can ensure that problems are detected and dealt with immediately and reduce the loss of steam; all the company's steam equipment is equipped with steam traps to effectively utilize the heat of steam and reduce the loss of steam. At the same time, the steam condensate pipes are modified to recycle all the steam condensate (above 85°C) from the company's various use departments to the boiler for reuse (the recovery rate reaches more than 90%), which can save 10% of fresh water every year. More than 10,000 cubic meters, while saving costs and reducing the generation of pollutants.

(6) Reuse waste materials such as valves and filter units in various departments. A total of 12 large and small valves, 4 sets of filter units, 8 check valves, some large and small bolts, etc. were repaired, which greatly saved related expenses.

(7) Transform the water-cooled tile holder drainage in the boiler room and transport the water-cooled tile holder drainage into the desulfurization pool, reducing the amount of tap water used in the desulfurization pool. Two water-cooled tile holders discharge approximately 3 tons of wastewater per hour, saving 26,280 tons of water per year.

(8) Transform the desulfurization tank drainage and slag trough water supply, and transport the desulfurization tank drainage to the boiler slag trough water supply. The two slag troughs use about 1 ton of water per hour, saving 8,760 tons of water per year.

(9) Transform the boiler denitrification and use the fourth-stage urea waste liquid for denitrification, reducing the annual production of finished urea by about 60 tons and the annual urea waste liquid discharge by about 1,200 tons.

(10) In May 2021, the Dongshan Reservoir began to be renovated, using the original abandoned reservoir for repair and renovation, increasing the water storage capacity by 300 tons, increasing the use time of tap water, and avoiding the peak hours of water and electricity consumption, which saved the use of electricity to a large extent. The water outlet pipe network of the other two reservoirs was renovated, which effectively solved the problem of the company's water outage for cleaning the reservoir, provided guarantee for the company's full-load production, and greatly improved the quality of production water.

(11) The company will recycle and reuse all steam condensate water in the plant in 2025. The temperature of the recovered condensate water is around 90 degrees, with a recovery rate of more than 90%. The recovered condensate water will be directly sent to the boiler to continue producing steam. This measure not only saves water, but also reduces fuel use and reduces the impact on the climate. This year's cost savings are approximately RMB 2 million.

Green office

Actively promote low-carbon work and low-carbon life. The company continues to optimize online office processes and supporting facilities, aiming to improve the company's internal operational efficiency, reduce resource waste, and achieve information modernization and paperless office.

Water resources management objectives and planning

The company raised its own funds to build Dongbao Reservoir, located in Babaogou Village, Dongbao New Village, Tonghua County. Dongbao Reservoir was first built in 1994 and completed in 1996, with a total investment of more than 60 million yuan. Dongbao Reservoir mainly supplies production and domestic water to residents of Tonghua Dongbao and Dongbao New Village, with an annual water consumption of 700,000 to 1 million cubic meters. Reservoir water quality is required to maintain high quality all year round.

Water resources protection

Since its development 30 years ago, the company has invested hundreds of thousands of yuan every year specifically for the management of surrounding forest resources. Dongbao New Village has been rated as an advanced unit in the development and protection of forestry resources by the Tonghua County People's Government for many years in a row, and its forest retention rate has ranked first in the county for many years. In order to better protect the water source, Dongbao established the Dongbao Nature Reserve within the first-level protection zone of the reservoir, and established management measures such as fencing and monitoring. In the future, Dongbao people will continue to adhere to the development concepts of green, ecological and environmental protection, maintain and protect Dongbao forest water sources, and build a beautiful Dongbao home.

Protect biological diversity

Tonghua Dongbao has always attached great importance to the protection of biodiversity around the company, actively paid attention to the relevant policies of the government where the production and operation sites are located, and continued to assist the local government in maintaining environmental protection around the factory. All the company's production and operation activities have no impact on biodiversity, and all production and operation sites are not located in natural protection areas.

In addition, the company has always adhered to the concept of "green development" and carried out "green factory" work in the factory area, fully carrying out road hardening and vegetation greening work. There are many types of greening trees, including endangered and rare tree species such as barberry and manchurian ash. The company only invests about 400,000 yuan in greening maintenance costs every year. At the same time, in order to protect the company's production water source "Dongbao Reservoir", the company established the first nature reserve built by an enterprise. There are pheasants, hares, roe deer, red pine, Mongolian oak and other nationally protected animals and plants in the reserve. In the past 40 years, hundreds of thousands of yuan of special funds have been invested every year in the management of ecological forest resources inside and outside the nature reserve, including the establishment of fences, monitoring and other management measures to ensure better protection of water sources.

Strengthen employees’ awareness of environmental protection

The company attaches great importance to the publicity and implementation of environmental protection laws and regulations. By studying and publicizing the newly revised Environmental Protection Law, Environmental Impact Assessment Law, Water Pollution Prevention and Control Law, Hazardous Waste Management System and other laws and regulations, it strengthens the awareness of law-abiding and clarifies the seriousness of the consequences of violations. At the same time, the company passed the system target assessment and incorporated environmental management into daily production work. The environmental awareness of all company employees has been greatly improved.

Specifically, the company uses the ISO14001 environmental management system, which is an organizational management method that is implemented by the top manager and jointly implemented by all employees. It improves employees' environmental awareness through 7.1 resources, 7.2 capabilities, 7.3 awareness, and 7.4 information exchange in the GB/T24001-2016 standard. That is to say, first put forward the requirements of 7.2 ability and 7.3 awareness for the position, and review whether the employees in the position have enough ability to meet the position. If not, 7.1 resource deployment and support are required to promote the employees in the position to achieve the required abilities through internal training or external learning, and the process of meeting the job ability requirements is passed on to other departments through 7.4 information exchange to make it more extensive.

5. Future and Prospects

In 2026, the company will continue to fulfill its obligations and responsibilities to shareholders, customers, employees, the environment, and society, achieve a high degree of unity between corporate operations and social responsibilities, and achieve comprehensive, coordinated, and sustainable development in the economy, society, and environment. We will continue to carry out social welfare activities based on the development concept of "adhere to independent innovation and create world brands". Optimize the personnel salary system, improve the performance appraisal system, provide employees with more competitive salary packages, increase environmental protection, and achieve the harmonious development of man and nature. Deeply cultivate the core business, commit to the research and development of products in the field of diabetes treatment and other endocrine fields, make use of the existing and future high-tech product research and development platforms (covering a complete industrial chain of product research and development, achievement transformation, registration application, industrial production, sales and promotion), and further improve the introduction of high-tech talents It provides comprehensive innovation conditions for high-level talents through independent research and development and external cooperation, and increases investment in research and development in the field of innovative drugs to produce more products of high clinical value to realize the corporate vision of "an explorer and leader in the research and development of innovative drugs in the field of endocrinology".

Board of Directors of Tonghua Dongbao Pharmaceutical Co., Ltd.

April 17, 2026

6. Appendix:

Appendix 1: Shanghai Stock Exchange Guidelines Index

Disclosure requirements Corresponding sections of this report

Coping with Climate Change 4(2) Actively Coping with Climate Change

Pollutant Discharge 4(3). Pollution Prevention and Ecosystem Protection Waste Treatment 4(3) Pollution Prevention and Ecosystem Protection Ecosystem and Biodiversity Protection 4(4) 10. Protection of Biodiversity

(1) Establish and improve various systems and build a sound institutional and environmental compliance management

System

Energy Utilization IV (4) Resource Utilization and Circular Economy

Water Utilization IV (4) Resource Utilization and Circular Economy

Circular Economy IV (4) Resource Utilization and Circular Economy

Rural Revitalization 3(4). Assisting Rural Revitalization

(3) Actively respond to centralized purchasing, improve the affordability of drugs, and contribute to society

Continuously improve service quality

(1) Increase innovation and research and development, enrich treatment options and drive innovation in drug use

Choose

Science and technology ethics 3 (1) 3 (2), drug research and development ethics

Supply chain security 3 (6), win-win cooperation, and continuous creation of a green supply chain are not involved. As of the end of the reporting period, the balance of the company's accounts payable (including notes payable) did not exceed RMB 30 billion, accounting for the proportion of total assets. Treat small and medium-sized enterprises equally

It does not exceed 50%, and there is no overdue payment information for small and medium-sized enterprises in the national enterprise credit information publicity system. 3(5) Continue to strengthen product quality management and create trustworthy product and service safety and quality

product system

Data Security and Customer Privacy Protection 3(8) Privacy Protection

Employees 3(6). Caring for employees and strengthening due diligence on talent cultivation 3(6). Win-win cooperation and continuing to build a green supply chain Stakeholder communication 2(2) Stakeholder participation

Anti-Commercial Bribery and Anti-Corruption 2(9) Business Ethics

Anti-unfair competition 2(9). Business ethics