/Chongqing Pharmaceutical Holdings: 2025 Sustainability Report

NEWS

Chongqing Pharmaceutical Holdings: 2025 Sustainability Report

Shenzhen Stock Exchange

2026/04/24

Table Of Contents

Continue to deepen the leadership of party building, and the great power of thought guides the enterprise to pursue its long-term goals

The company's Party Committee fully implements the spirit of the 20th National Congress of the Communist Party of China, the Fourth Plenary Session of the 20th Central Committee of the Communist Party of China, and the spirit of General Secretary Xi Jinping's important speech during his inspection in Chongqing. It actively integrates into the party building work system of General Technology Group, firmly and effectively serves the national strategy, promotes the development of a healthy China, and achieves resonance between the company's strategy and the national deployment.

MESSAGE FROM

THE CHAIRMAN

Integrate deeply into the General Technology Group and work together to improve the quality and efficiency of operations

We have started anew and renewed our ambitions on the new long march of the central enterprise platform, fully integrated into the management system of General Technology Group, and achieved "integration, integration, and integration" in development strategy, operation management, institutional system, corporate culture, etc.; we have sounded the clarion call for the "five major battles and six major battles" to win the battle, solidly promoted the synergy of "two drugs", and coordinated and coordinated the implementation of the Chongqing regional national development strategy and General Technology Group's decision-making and deployment to achieve results.

Scientifically plan the strategic blueprint for the "15th Five-Year Plan" and plan the layout to lead the development direction of the enterprise

We focus on the preparation of the "15th Five-Year Plan", clarify key development directions, build a closed-loop management system of "decoding-deployment-questioning", accurately analyze and judge the development trend of the industry, scientifically draw a blueprint for future development, and demonstrate our firm determination to lead high-quality development with strategy.

Continue to develop smart supply chain services, and high-quality services help promote the in-depth advancement of national strategies

The company was successfully rated as a 5A-level logistics enterprise, and its logistics service level ranks among the top standards in the domestic industry; it has built six major digital smart management platforms, including operation management and control, to create a smart hub that empowers the entire pharmaceutical industry chain; it has innovatively opened six "lifelines" for normalized drone drug delivery, doubling the delivery efficiency compared to conventional logistics, providing strong support for people's health protection, injecting new momentum into the innovative development of the low-altitude economy, and contributing to the national strategy of in-depth service to the construction of the New Land-Sea Corridor in the West.

Chairman of Chongyang Pharmaceutical Holdings Co., Ltd. Yuan Quan

Actively explore emerging businesses, and use innovative power to realize multiple blooms in emerging fields.

YUAN QUANCHAIRMAN OF THE BOARDCHONGQING

PHARMACEUTICAL

HOLDINGS CO., LTD. The company is actively engaged in the research and development of innovative pharmaceutical devices. The construction of a high-energy innovation platform has achieved initial results, product application transformation has been accelerated, the layout of radiopharmaceuticals has been increasingly improved, the matrix of self-developed products has continued to be strengthened, smart Chinese pharmacy projects have been steadily deployed, the national marketing service system has achieved remarkable results, and the core competitiveness of the company has been further highlighted.

Practice the concept of sustainable development, and run green and low-carbon throughout the entire operation and management process

The company's Wind rating jumped two levels to A-level and was selected as an outstanding practice case for sustainable development of listed companies; it participated in the first batch of simulated disclosure tests of corporate sustainability disclosure standards in the country, laying the foundation for the trial implementation of the "Climate Code"; it continued to actively participate in and assume responsibilities in the fields of green operations, rural revitalization, charity, volunteer services, etc., and invested a total of 1.06 million yuan in environmental protection funds, establishing an excellent image of a green, low-carbon, and socially responsible central enterprise.

Continue to focus on quality management to ensure safe, stable, efficient and high-quality products and services

The company has always adhered to the corporate spirit of "dedication to medicine and pursuit of excellence", improved and improved the quality management system, and achieved quality control, standardization, and traceability in the entire production and operation process; optimization is now in 2025, which is a critical year for the final victory of the country's "14th Five-Year Plan". It is also the foundation year for General Technology Heavy Drug Holdings to integrate into the central enterprise system and realize strategic reshaping.

The modern logistics system and smart supply chain construction and management provide solid and reliable heavy pharmaceutical power to ensure people's medication safety and protect health and safety.

Chongqing Pharmaceutical Holdings has accurately anchored the coordinates in the grand blueprint of serving the national strategy, bravely strived to be the first in the era of deepening reform of state-owned enterprises, and successfully completed the historical goals entrusted by the "14th Five-Year Plan"

In line with its historical mission, its operating performance has made steady progress and both quality and efficiency have improved.

Warmth and care for cadres and employees, two-way empowerment of employee growth and corporate development

The company always adheres to the people-oriented approach, effectively protects the rights and interests of employees, optimizes the salary and welfare system, strengthens democratic management and communication, and provides all-round care for employees; innovative exploration and implementation. As an important participant in the medical and health industry, Chongqing Pharmaceutical Holdings has always integrated the concept of sustainable development into corporate strategies, continued to optimize the ESG governance model, and balanced economic efficiency. "Dual-time Chairman", "Deputy General Manager for Administrative Compliance" and other efficient management systems have improved corporate governance levels and innovatively implemented management systems. We use our heart and soul to help employees grow in their careers, deepen the discovery and training of cadres and talents, and train a total of 229,000 people throughout the year, investing nearly 3 million yuan in training funds. We attach great importance to occupational health and safety, improve the safety production system, and strengthen social benefits. With the mission of "leading a better life with technological progress and quality services", we adhere to the leadership of party building and focus on compliant corporate governance, green and low-carbon, numerical empowerment, and risk management to ensure the physical and mental health of employees.

People-oriented, giving back to society, building a win-win industrial ecosystem for all parties, and achieving new breakthroughs in the process of protecting people's health and serving national strategies.

2026 is the first year of the “15th Five-Year Plan” and a critical year for the company to deepen integration and fully unleash its strategic potential. We will always follow Xi Jinping’s

Guided by the Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of General Secretary Xi Jinping’s important instructions on the work of central enterprises, with the core of "serving national strategies, improving core functions, and improving core competitiveness" and anchoring the strategic vision of "serving a healthy China and building a leading pharmaceutical business enterprise with global competitiveness" , with the core of building a smart pharmaceutical supply chain ecological service platform and the overall goal of "becoming a first-class service provider in China's smart pharmaceutical supply chain", it is deeply integrated into the national health strategy and the overall development of the industry, promoting the company from leading in scale to leading in quality and efficiency, and contributing core strength to serve the national strategy and demonstrate the responsibility of central enterprises.

03 04 Into Chongqing Pharmaceutical Holding

About Chongyang Pharmaceutical Holdings

Mission

About us

Leading a better life with technological progress and quality services

ABOUT US

Vision Core Values To become a trustworthy world-class pharmaceutical and corporate culture Integrity, tolerance, innovation, hard work, excellence and win-win comprehensive medical device service provider

Company Profile

Enterprise Spirit Heavy Pharmaceutical Holdings Co., Ltd. is a company listed on the Shenzhen Stock Exchange (stock code: 000950) with registered capital

Dedicate yourself to medicine and pursue excellence with RMB 1.728 billion. Joined China General Technology (Group) Holdings Co., Ltd. in 2025 and transformed from a local state-owned enterprise to a central enterprise

Enterprise in Chongqing. The company serves the entire pharmaceutical industry chain and is also engaged in pharmaceutical distribution, pharmaceutical research and development (MAH), and medical devices.

Produce and invest in the pharmaceutical industry. Chongqing Pharmaceutical (Group) Co., Ltd., the operating entity of the listed company, formerly known as 2025 operating income

It is the Southwest District Company of China Pharmaceutical Corporation established in 1950. It is a designated reserve of drugs and medical devices at both the central and local levels 824.47

billion

It is also one of the only three national wholesale enterprises in China that deals in narcotic drugs and first-class psychotropic drugs. Have all

There are more than 200 holding subsidiaries with more than 12,000 employees. In 2025, the operating income will be 82.447 billion yuan and the total profit will be 6.72 billion yuan.

billion, a year-on-year increase of 20.43%, and paid taxes of 1.578 billion yuan, a year-on-year increase of 6.69%; it ranks 306th among the top 500 strategic and sustainable development committees of Chinese enterprises in 2025, 6.72% of the total profit of the party committee, and the shareholder meeting, and 101st among the top 500 Chinese service industry companies. The company's scale and market coverage rank fifth in the same industry in China.

billion

The main business of the Nomination Committee is the pharmaceutical business segment, which covers the pure sales and commercial sales of drugs, medical devices, traditional Chinese medicine pieces, health care products, etc. The Board of Directors pays taxes

Wholesale, retail chain, terminal distribution, warehousing logistics and supply chain value-added services, the marketing network covers the whole country. The company has obtained full discipline Remuneration and Appraisal Committee

15.78 Committee

The first "Radioactive Pharmaceutical Business License" issued by a mainstream pharmaceutical commercial enterprise in China, the self-built nuclear medicine warehouse was put into operation, and the successful development of nuclear medicine

billion

Audit and Risk Committee New Areas of Pharmaceutical Operations and Distribution. The company builds China's leading "pharmaceutical + Internet" platform for pharmaceutical business and carries out B2B, B2C, managerial O2O and other pharmaceutical e-commerce businesses. Relying on information technologies such as the Internet, Internet of Things, artificial intelligence, big data applications and mobile terminals,

It has "heavy medicine collection channel", "heavy medicine cloud review", etc.

Provides auxiliary medical services such as chronic disease management, electronic prescription transfer, out-of-hospital pharmaceutical management, and remote diagnosis and treatment. Company construction industry leader 17

It has the most advanced digital and intelligent financial shared service platform and digital and intelligent audit warning system with independent intellectual property rights, and owns the "Chongqing Pharmaceutical Collection" and "Major Software Copyrights".

17 software copyrights including "Drug Cloud Review" and "Peace Smart Hospital Data Analysis Platform".

︵ Office person

party

public committee power

office resources

Its nationally renowned brands "Heping Pharmacy" and "New Health Pharmacy" have 828 retail stores in 24 provinces, municipalities and autonomous regions, and carry out the Heping Pharmacy online mall and in-hospital self-funded public health pharmacies.

room source

Pharmacy, DTP special drug direct delivery, hospital infusion center and other businesses. The company has the country's leading 5A-level modern pharmaceutical logistics distribution center and has established 10 self-built provincial branches in many places.

Level modern logistics base, 163 warehousing centers at all levels, with a total storage area of more than 770,000 square meters, and uses in-hospital intelligent logistics technology to carry out cooperation with medical institutions at all levels across the country

Cooperate to build a central warehouse and achieve centralized distribution. The company has built a research and development innovation system around the overall strategy, adopting international standards for investment, screening, cultivation and application.

New pharmaceutical products with clinical value and market value, through the transformation of MAH R&D results, 4 varieties including Olmesartan Medoxomil Tablets have been successfully launched on the market.

It has established a product echelon in multiple treatment areas such as traditional Chinese medicine and traditional Chinese medicine, laying a solid foundation for sustainable development. At the same time, we will make full use of existing pharmaceutical commercial circulation channels and retail networks, medical

It leverages the advantages of medical institutions to promote the marketing and promotion of new products and achieve coordinated development of the industry. Currently, the company is transforming from a traditional distribution business enterprise to a smart pharmaceutical supply chain service provider.

transformation. We have always adhered to the corporate spirit of "dedication to medicine and pursuit of excellence", based on the major opportunities in the development of the pharmaceutical and health industry, persisted in innovation and development, and are committed to being a Chinese

A first-class, internationally renowned pharmaceutical and health industry group, contributing to the "Healthy China" strategy.

05 06 ︵ Party

party

group committee

Work propaganda

pass

Zuobu

Headquarters

manager

Public

Room ︶

party

committee

fight

department

About Chongyang Pharmaceutical Holdings

corporate culture

The company's party committee uses cultural integration to gather synergy for development, closely adheres to the requirements of the General Technology Group's cultural system, solidly promotes the implementation of corporate culture, cultivates the feelings of a central enterprise, and unifies the development consensus of all employees. This system is rooted in the long-term practical accumulation and collective wisdom of the company's party committee and all cadres and employees. It has become the basic basis for the value judgment of all Zhongyao people, the fundamental guideline for behavioral norms, and the common compliance with life and work.

Organizational structure

labor union

Committee

Discipline, War, Financial Security Review, Legal, Investment Law, Securities Strategy, Full Accounting, Legal Asset Inspection and Coordination Department, Environmental Risk Cooperation and Inspection, Inspection and Effectiveness, Security Control, Asset Management Office Rate and Department, Industry and Management Party, Party, Operations, Management Committee, Board of Directors, Management Department, Organization of Enterprise Inspection Board reason

Ministry of Culture and Affairs

︶ Hua Gong Gong

department room

︶︶︶

About Chongyang Pharmaceutical Holdings

Development history

Development History

Report

Foreword

2007

year

The company became the first national narcotic drug and spirit

One of the three designated enterprises for wholesale of medicines nationwide.

1950 1994

year year

The Southwest District Branch of China Pharmaceutical Corporation was established, and Chongqing Pharmaceutical Company (station) was restructured and established.

2016

At the same time, a party branch was established. Chongqing Pharmaceutical Co., Ltd. year

2018

Chongqing Pharmaceutical Modern Logistics Comprehensive Base (Phase I) will be put into operation in 2018.

The company has deployed in 14 provinces and cities in the central and western regions, achieving full coverage of the western 1998 commercial network; *ST Jianfeng changed its name to Chongyao

1953

In 2016, the company held a controlling shareholding (000950) and resumed listing on the Shenzhen Stock Exchange; the company's subsidiary Heping Pharmacy passed the national "GSP" standard acceptance, and the company was selected as one of the "Double Hundred Enterprises" for the State Council's state-owned enterprise reform. China Pharmaceutical Corporation Chongqing Procurement and Supply Station became the first pharmaceutical wholesale and retail enterprise in Chongqing to meet the standards.

The Chongqing branch of China Pharmaceuticals Corporation was established respectively.

2017

year

Piloted the import of drugs through China-Europe freight trains, and the company became

It is the first country in the country to realize the import of drugs through railway ports.

1984 1999 2019

In 2017, the pharmaceutical company;

Chongqing Procurement Supply Station and Chongqing Municipal Company merged, and the company's sales exceeded 10 billion yuan. In 2019, the company launched the first national general approval of imported drugs, marking the company's formal entry into the capital market.

Chongqing Pharmaceutical Company (station) was newly established; the company's sales exceeded 100 million yuan, opening a new chapter in the national distribution business of imported drugs;

The "China Pharmaceutical-Chongqing Pharmaceutical" business consortium was formally established.

2023

year

The official layout of the 32nd province (Guangxi Province) marks a new step in the company's "Three Hundred Cities" national layout.

2021

2020

year

The company ranked 435th among the top 500 Chinese enterprises;

Two major mergers and acquisitions: Tasly Marketing and Sichuan Renfu

The company's sales exceeded 60 billion yuan;

The project was implemented and the company achieved “national layout”

The company headquarters and the entire subsidiary companies in Chongqing

Strategy; the company's ranking jumped up. Chinese pharmaceutical companies moved into the Chongyao Building. 2025

The top five ranks in the industry; the Communist Party of China focuses on

Qing Pharmaceutical (Group) Co., Ltd. No.

Joined General Technology Group and became a central enterprise in Chongqing; the fifth congress was successfully held; the company became

The company completed the first normalized drone drug delivery in Chongqing and established a Chongqing Pharmaceutical Business School; the company celebrates its 70th anniversary.

Six "lifelines" for normalized drone drug delivery have been opened.

07 08

About Chongyang Pharmaceutical Holdings

Honorary Awards

Honors & Awards

Report

Foreword

Among the top 500 Chinese enterprises in 2025, a new national civilized unit was added. The top 100 enterprises in Chongqing in 2025 (seventh place). The "Golden Summit" outstanding cases of Yangguang Finance in 2025.

Selected listed company

Top 100 service companies in Chongqing in 2025 (third place) Wind ESG rating jumps to A level Benchmark case of digital innovation and transformation in the pharmaceutical industry Excellent case of digital innovation and transformation in the pharmaceutical industry

Excellent practice cases of sustainable development

09 10

About Chongyang Pharmaceutical Holdings

Major events in 2025

2025 Major Events

Report

Foreword

Chongqing Pharmaceutical Holdings officially joined the General Technology Group and became a central enterprise in Chongqing; successfully applied for the "Smart Pharmacy System" computer software copyright registration certificate,

January June

The self-developed Mirabegron sustained-release tablets were approved for production by the State Food and Drug Administration and were deemed to have won the 16th computer software copyright; Synergy General Technology China Medicine and Huangtong passed the quality and efficacy consistency evaluation of generic drugs, becoming the fourth drug to sign a drug distribution agreement with Hesanmenxia Hospital; and a new product approved as a Marketing Authorization Holder (MAH) with General Medical 363 Hospital. The only major supplier cooperation signing ceremony was held.

February

Successfully applied for the "Peace Smart Hospital Data Analysis Platform" computer software

It has been listed among the top 500 Chinese enterprises for five consecutive years, ranked among the top 500 Chinese enterprises in terms of copyright registration certificate, and won the 15th software copyright. September

306th, ranked 101st among the top 500 Chinese service industry companies; the second congress of China Heavy Pharmaceutical Holdings Co., Ltd. and the sixth congress of Chongqing Pharmaceutical (Group) Co., Ltd. were held to elect a new leadership team of the Party Committee and Discipline Inspection Commission; Wind's ESG (Environmental, Social and Corporate Governance) rating was significantly improved from BB level to A level in March.

Together with Xinqiao Hospital of the Army Medical University, we completed the city’s first normalized medical treatment

Human-machine drug delivery.

December

Selected as an outstanding practice case for sustainable development of listed companies in 2025; successfully applied for the computer software copyright registration certificate of "Chongyao Intelligent Review-Audit Early Warning Cloud Platform" in May. Chongyao Co., Ltd. successfully passed the national civilized unit re-evaluation, and was affiliated to Hunan Civil

Won the 17th software copyright.

Biopharmaceutical Co., Ltd. was successfully awarded the 7th National Civilized Unit.

11 12

About Chongyang Pharmaceutical Holdings

social performance

Highlight performance in 2025 R&D investment Qualification rate of out-of-factory pharmaceutical products Average customer satisfaction

1898.17 100 98.75

2025HIGHLIGHTS & PERFORMANCE RMB 10,000 % %

Number of health service activities carried out Number of residents benefited Employee satisfaction rate Operating performance

1600 14.8 98.23

10,000 person-times per venue % Operating income Net profit attributable to shareholders of listed companies Net assets attributable to shareholders of listed companies

824.47 3.87 115.36

100 million yuan 100 million yuan 100 million yuan

System-wide investment in safety production Number of people trained throughout the company Proportion of company personnel with professional titles or skills System-wide investment in safety production

22.9 50.08 1093

10,000 person-times % Total cash distribution of 10,000 yuan (tax included) Total tax paid

1.03 15.78

billion yuan billion yuan

Total investment in safety education and training Safety education and training coverage rate Occupational disease hazard factor detection rate

26.74 100 100

Governance performance RMB 10,000 % %

Number of female directors Total number of internal risk control trainings Total hours of internal risk control training Response rate to investor questions

1 2414 4538 100

Qualification rate for monitoring occupational disease hazard factors Cash donation Rural revitalization consumption poverty alleviation amount Person Person-time Hours %

100 50 94302

% Environmental performance per million yuan

Total number of participants in charity activities

Total amount of investment in environmental protection Conduct daily environmental inspections Compliant disposal rate of expired drugs Compliant disposal rate of waste

4600

106 3551 100 100

remaining people

Ten thousand yuan times % %

13 14

DEVELOPMENT REPORT

Deepen ESG Practices

Consolidate the Foundation for Development

Deeply cultivate ESG

Build a solid foundation for development

Contents of this chapter

ESG governance system

Chongqing Pharmaceutical Holdings has always deeply integrated the sustainable development strategy into the construction of corporate culture, actively practiced corporate social responsibilities in the fields of green health, rural revitalization, and demonstrated the national

Enterprise responsibility. The company anchors the direction of green, low-carbon and high-quality development, continues to improve the ESG governance system, strengthens the board of directors' participation and supervision effectiveness in the company's ESG work, and will

In response to the United Nations Sustainable Development Goals, ESG management has been fully integrated into the company's overall risk assessment and management system, and the company's theoretical research results and practical implementation experience in the ESG field have been actively shared with the public.

Identification of important issues for stakeholder communication

15 16

ESG governance system

SDGs Sustainable Development Goals Content Chongyang Pharmaceutical Holdings Action

Participate in the ESG governance system for social welfare and eliminate all forms of poverty around the world

Help rural revitalization

ESG GOVERNANCE SYSTEM

Implement safe production to ensure a healthy lifestyle,

Protect occupational health and enhance the well-being of people of all ages

Promote the development of the pharmaceutical industry In order to further improve the company's ESG management and operation level and meet the requirements of the company's sustainable development strategy, the company has established a complete ESG management organizational structure and established

The ESG governance system with the Board of Directors and the Strategy and Sustainability Committee as the core fully considers ESG in the entire process of strategy implementation, risk management and major decision-making.

Unblock the relevant impacts, potential risks and development opportunities of career development channels, and promote the normalization and standardization of ESG management work. Ensure inclusive and equitable quality education

DEVELOPMENT REPORT Improve employee training mechanism In 2025, the company attaches great importance to improving ESG capabilities, actively participates in various high-quality ESG external trainings, and closely tracks industry ESG trends and policy guidance. Promote lifelong learning opportunities for all

The donated education fund combines the company's ESG management priorities, selects special training organized by authoritative institutions, and organizes core position personnel to participate, covering key contents such as policy interpretation and compliance management.

Lay a solid foundation for management. At the same time, it links suppliers and partners to share training experience, drives upstream and downstream to improve ESG awareness, and provides effective guidance for the standardization of the company's ESG work.

force support. Oppose gender discrimination, achieve gender equality, and empower all women and girls

Care for female employees

Ensure drinking water safety, ensure safe drinking water and sanitation facilities, adhere to water conservation, and treat wastewater in compliance with regulations

Ensure that everyone has access to affordable, reliable and sustainable modern energy with energy-saving and emission reduction actions. Use clean energy to participate in the Shenzhen Stock Exchange’s sustainable development exchange training. CMG Finance’s 2025 “Golden Summit” outstanding cases were released.

Promote lasting, inclusive and sustainable economic growth,

Adhere to equal employment to achieve full and productive employment,

Environment (E) Protect employees’ rights and interests and ensure decent work for everyone

The company actively advocates and implements the concept of "green office, low-carbon life", fully integrates green environmental protection requirements into all aspects of operation and management, and promotes production, operation and ecological conservation.

Protect coordinated development.

Build risk-resistant infrastructure,

Encourage R&D and innovative society(s) Promote inclusive and sustainable industries,

ESG protects intellectual property rights. The company adheres to the concept of "responsible" development, fully considers the impact of environmental, social and corporate governance-related factors in the process of operating business, continues to promote rural revitalization and promotes innovation.

Concept: revitalization, public welfare assistance and other work, do a solid job in providing counterpart support to poverty-stricken areas, consolidate and expand the results of poverty alleviation, and promote the effective and in-depth connection between poverty alleviation work and rural revitalization

Fusion.

Pay attention to product quality management and corporate governance (G) to ensure sustainable consumption and production models and ensure drug safety for the public. The company continues to improve its business management capabilities, continuously improves the standardization level of corporate governance, attaches great importance to investor relations management, and is committed to creating long-term and sustainable development for shareholders.

Focus on information security and stable return on investment. At the same time, we will effectively prevent and resolve operational risks, steadily promote the construction of the compliance management system, and achieve long-term stable operations for the company.

Build a solid foundation for sustainable development.

Promote energy conservation and carbon reduction, take urgent action to respond to climate change and its impacts, promote green operations, and identify climate risks and opportunities.

Standardizing corporate governance promotes peaceful and inclusive societies that are conducive to sustainable development,

Respond to the United Nations Provide access to justice for all, adhere to compliant operations, build effective, accountable and inclusive institutions at all levels, adhere to business ethics

sustainable development goals

Strengthen execution methods and create a sustainable supply chainRESPOND TO THE UN SUSTAINABLE DEVELOPMENT GOALS Revitalize the global partnership for sustainable development and adhere to responsible procurement

17 18

Identification of important issues

Communication with stakeholders Identification of important issues

STAKEHOLDER COMMUNICATION MATERIAL TOPIC IDENTIFICATION

Chongqing Pharmaceutical Holdings combines national planning, stakeholder expectations and company development strategies, adheres to the concept of being responsible to all stakeholders, and continuously reviews the company's sustainable development

The company refers to the "Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 17 - Sustainability Report (Trial)" (hereinafter referred to as the "Guidelines") and the applicability of the strategy. The company attaches great importance to the rights and interests of investors, customers, employees, partners and other stakeholders, and actively establishes multiple relationships with stakeholders in the process of business development.

Closely combine the characteristics of the pharmaceutical distribution industry and the company's actual operating conditions, and refer to the relevant requirements of international mainstream sustainability reporting standards to comprehensively evaluate the company's effective communication channels in various fields, understand and respond to the expectations and demands of stakeholders in a timely manner.

The performance status of the issue, determine whether it will have a significant impact on the economy, society and environment (i.e. the importance of the impact), and also consider whether each issue will

It has a greater impact on the company's business model, business operations, development strategy, financial status, cash flow, financing methods and costs, value chain, etc. (ie, financial importance). Important stakeholders Communication content Communication method Communication results

Issue Assessment Process Analysis Methods

Operate in compliance with laws and regulations Work report Improve governance level

Support local development, policy communication, accept regulatory review

Government and regulatory agencies protect the environment, accept supervision, and adhere to green operations

Step 1: Analyze the macro-environment of global trends, China's industrial development trends, the industry, and the company's business model to understand the company's background and identify the company's stakeholders and the impacts, risks, and opportunities faced by the company.

Regular letter disclosure and continuous and sound operation

Continuous and stable returns

Shareholders meeting to strengthen investor communication

Information transparency and disclosure

Shareholders and investors Roadshow activities Transparent information disclosure

Use the 21 issues set in the "Guidelines" as the basis for the issue list, and refer to step 2 of the international mainstream sustainability reporting standards

Relevant requirements, as well as related issues in the same industry, benchmarked against the United Nations Sustainable Development Goals (SDGs) and the Global Reporting Initiative

Initial screening of topics

Transact with compliance and integrity, normalize communication channels, provide high-quality products, organize GRI, and establish the company's ESG topic library for 2025.

Provide high-quality products Satisfaction survey Provide high-quality services

Customers and consumers Optimize customer service Customer activities Respond to customer demands

Assessment of the importance of basic impacts

Training and Development Conduct employee training

Protection of basic rights and interests Employee Congress Guaranteeing employee remuneration and benefits Sorting out the potential or actual positive or negative impacts of each issue on the external environment, society and economy, through the form of a questionnaire

employee satisfaction survey

Health and Safety Strengthen Occupational Health Management Conduct research and analysis on stakeholders, collect a total of 265 valid stakeholder questionnaires, and combine expert judgment with employee internal feedback mechanism

Humanistic Care Employee Care Practice Step 3: Identify and assess issues that have significant impact.

Issue importance assessment

financial materiality assessment

Through impact, dependency and other factor analysis, combined with expert judgment, and risk identification and assessment of various departments of the company, public charity

Community activities Carry out public welfare activities

Community welfare checklist, identify and evaluate risks and opportunities under relevant issues, and evaluate issues of financial importance.

Community contact point to help rural revitalization

Community Promote regional development

Disclosure of procurement information

Common Development Step 4: Form a list of issues of impact and financial importance, and ensure that relevant issues are transparent, balanced and completely disclosed in the execution of long-term and stable cooperation contracts

Keep your promise. Topic confirmation and approval report.

Payment promptness Accept feedback

Supplier payment protection

Negotiation and communication

19 20

Identification List of Important Issues of Chongqing Pharmaceutical Holdings

Important Issues Matrix of China National Chongqing Pharmaceutical Holdings

Treat small and medium-sized enterprises equally

Product service safety and quality

Innovation driven

Protect employees’ legitimate rights and interests

supply chain management

Environmental compliance management Anti-commercial bribery and anti-corruption

Data security and privacy protection

energy utilization

Employee training and development

Tackling climate change

social contribution

Ethics in Science and Technology Waste Disposal vs. Occupational Health and Safety

economic circular economy

economy

Pollutant emissions

Due Diligence Water Utilization Rural Revitalization

Communication with stakeholders Anti-unfair competition

Ecosystem and Biodiversity Conservation

21 22Identification of important issues

Description of the importance of the topic

Environmental dimension Social dimension Governance dimension

Issues that are both financially important and important in addressing climate change supply chain security/impact energy use product and service safety and quality

Innovation drives data security and privacy protection, environmental compliance management

Social Contribution Anti-Commercial Bribery and Anti-Corruption Circular Economy

rural revitalization

Issues that are important but not of financial importance due diligence and pollutant discharge Protection of legitimate rights and interests of employees Environmental employee training and development Stakeholder communication environment Waste treatment

Impact on occupational health and safety

Treat small and medium-sized enterprises equally

heavy

want

sex

financially important

// /Issues that do not have important impact

neither financially significant

Ecosystem and Biodiversity Conservation //Issues that are not of major importance

Importance to company finances

Both financially important Financially important Impact important Neither financially important

and materiality but not materiality but not financial materiality nor materiality

DEVELOPMENT REPORT

Establish Enterprise by Compliance

Cultivate an Integrity-oriented Ecosystem

Establishing an Enterprise in Compliance

Build a clean and honest ecosystem

Contents of this chapter

Standardizing corporate governance Good corporate governance is the key to the steady progress and long-term development of an enterprise. Chongqing Pharmaceutical Holdings continues to improve its governance system, adhere to the bottom line of compliance, and strengthen risk prevention mechanisms.

Strengthen the internal management system to ensure the stability and reliability of the company's operations. At the same time, the company actively safeguards the rights and interests of investors, maintains close communication with investors, and strives to achieve a win-win situation for the company and investors.

The company always keeps its mission and responsibilities in mind, adheres to the guidance of party building, adheres to business ethics, and strives to create a clean and upright operating environment, laying a solid foundation for building a clean state-owned enterprise and achieving long-term, sustainable, improved and sustainable development of compliance construction.

Protect the rights and interests of investors, abide by business ethics, and adhere to the leadership of party building

23 24

Standardizing Corporate Governance Board of Directors

The board of directors is the decision-making body for the company's operation and management. It is responsible to the shareholders' meeting and reviews and makes decisions on major decision-making issues in the company's operating activities or submits them to the shareholders' meeting for review. The company formulates the "Rules of Procedure of the Board of Directors" to standardize the company's board of directors' proceedings and decision-making rules and decision-making procedures, improve the work efficiency and scientific decision-making level of the board of directors, and ensure the smooth progress of the company's operation and management work. The company's board of directors has established a strategy and sustainable development committee, a nomination committee, an audit committee and a remuneration and assessment committee to assist the board of directors in performing its decision-making and monitoring functions and promote the company's standardized operations and healthy development.

Standardize corporate governance

STANDARDIZE CORPORATE GOVERNANCE

During the reporting period

The company convened a board of directors meeting to consider and approve proposals. Attendance rate of board members meeting

DEVELOPMENT REPORT

Governance structure 11 78 100

Secondary item %

Chongqing Pharmaceutical Holdings is committed to building a stable and efficient corporate governance system and strictly abides by the Company Law of the People's Republic of China (hereinafter referred to as the "Company Law") and the Chinese

In accordance with the Securities Law of the People's Republic of China (hereinafter referred to as the "Securities Law"), the Code of Governance of Listed Companies, as well as the regulations and guidelines of the China Securities Regulatory Commission and the Shenzhen Stock Exchange, a special meeting of independent directors was held to review and approve the proposal. The Nomination Committee Meeting reviewed and approved the proposal to establish a governance structure consisting of the shareholders' meeting, the board of directors, the board of supervisors and the management. The company's decision-making bodies, supervisory bodies, authority bodies and managers are independent and interdependent 6 7 3 3

Checks and balances and clear rights and responsibilities have formed a good operating mechanism for self-development and self-restraint. Sub item Sub item

Remuneration and Appraisal Committee Meeting Audit and Risk Committee Meeting Strategy and Sustainability Committee Meeting

2 7 3

times times times

SDGs

The motion was considered and passed The motion was considered and passed The motion was considered and passed

2 17 3

item item item

Board diversity and independence

Operation of the Three Meetings: The company fully considers the age, educational background, professional knowledge and skills, industry experience and other factors of board members to ensure that the composition of the board of directors is diversified to meet the needs of each business while improving the decision-making level and execution capabilities of the board of directors. Members of the company's board of directors have extensive industry experience, and their professional backgrounds cover medicine, accounting, engineering and other fields.

shareholders meeting

In accordance with relevant laws and regulations, normative documents and the relevant provisions of the "Articles of Association", the company has formulated and improved the "Measures for the Management of Independent Directors", "Measures for the Management of Equity Directors Stationed in Secondary Companies", "Management Measures for Equity Directors Stationed in Secondary Companies", "Duty Performance Guidelines for Full-time Directors Stationed in Subsidiaries" and the relevant provisions of the "Articles of Association". In order to protect the legitimate rights and interests of the company and shareholders and improve the efficiency of shareholders' meetings, the company has formulated the "Rules of Procedure for Shareholders' Meetings" to standardize the convening, holding and voting of shareholders' meetings.

"Operation Manual" and other institutional documents clarify the terms of office, boundaries of powers and responsibilities, duty performance procedures, assessment and evaluation and guarantee mechanisms and procedures for independent directors, equity directors and full-time directors. The company treats all shareholders equally and ensures that all shareholders, especially small and medium-sized shareholders, have the right to know, participate and vote on major matters of the company.

Give full play to the important role of independent judgment, professional consultation, risk control and resident directors of external directors in standardizing the exercise of powers, strengthening management and control, and improving the governance efficiency of subsidiaries, and continue to improve the corporate governance mechanism of statutory rights and responsibilities, transparent rights and responsibilities, coordinated operation, and effective checks and balances.

During the reporting period, among which

In terms of building the board of directors of subsidiaries, the company adheres to the core principles of hierarchical and classified management and building everything that needs to be built, and comprehensively evaluates management complexity, risk prevention and control capabilities, operating companies, and convenes shareholders' meetings, annual shareholders' meetings, and extraordinary shareholders' meetings to review and approve proposals.

Based on multi-dimensional factors such as scale and development stage, we systematically optimize and improve the list standards that should be established by the board of directors of subsidiaries to achieve accurate coverage and classified policies. Clearance should be made regarding the inclusion of

6 1 5 21

Subsidiary companies under the project list have fully completed the establishment of the working body of the board of directors, and simultaneously improved the supporting systems such as the rules of procedure for the board of directors and the working rules of special committees, and continued to improve the sub-committee.

The standardized operation level and governance effectiveness of corporate boards of directors.

25 26

Standardize corporate governance

internal control

Board effectiveness assessment

The company always regards the establishment, improvement and effective implementation of the internal control system as an important basis for realizing development strategies, ensuring asset security, ensuring the authenticity and completeness of information, and improving operational efficiency. During the reporting period, in accordance with the "Basic Standards for Enterprise Internal Control" and other laws and regulations, and closely integrated with the new standards integrated into the General Technology Group's management system, the company established and implemented the effectiveness evaluation mechanism of the board of directors, and regularly systematically continued to optimize the internal control system on the operational efficiency, duty performance, decision-making quality, etc. of the board of directors and various special committees.

Evaluate. The company comprehensively uses a combination of self-evaluation by the board of directors and each special committee and other evaluations among directors to conduct effectiveness assessments to comprehensively and objectively reflect the operation of the board of directors.

work status and performance of duties. At the same time, the periodicity of the effectiveness evaluation of the board of directors shall be clarified, the evaluation work shall be carried out in accordance with the established periodic specifications, and the board of directors shall continue to be optimized and improved.

Scientific decision-making and governance effectiveness ensure the standardized and efficient operation of the board of directors. First, continue to improve the institutional system.

The company comprehensively benchmarks the group's management and control requirements, systematically carries out the work of "establishing, reforming and abolishing" the system, and strives to promote the in-depth integration of internal control requirements and business management.

The second is to deepen evaluation and supervision

Total members of the company's board of directors: independent directors and female directors

The company strictly implements the internal control self-evaluation mechanism. In 2025, the company took the lead in organizing and completing the internal control self-evaluation for 2024, covering all

11 4 1

functional departments and nearly two hundred important subsidiaries. The evaluation results showed that the company's internal control system was operating effectively during the evaluation base date and there were no major defects. For discovery name name name

Regarding the management improvement points, the company established a rectification ledger and promoted it within a time limit. In addition, the company also selected 54 units to carry out special supervision and evaluation of internal control, further identified weak links through on-site inspections, and promoted the continuous optimization of the internal control system.

The third is to explore digital empowerment

The company actively explores the application of digital means in internal control supervision, dynamically monitors key business nodes through tools such as audit warning platforms, and promotes the extension of internal control management from post-inspection to in-process early warning and pre-event prevention.

Director and executive compensation management

The Company’s Board of Directors has a Remuneration and Appraisal Committee, which is responsible for formulating remuneration policies and implementation plans for directors and senior managers and setting assessment standards. The company implements the "Learning

"Measures for the Performance Appraisal and Remuneration Management of Leaders" to effectively mobilize the enthusiasm of directors, supervisors and senior managers and improve the efficiency of the company's operation and management. Company senior management

The annual salary system is implemented for the remuneration of management personnel, and the annual salary level is determined according to the company's operating performance and assessment results.

internal audit

Indicator Unit 2025

The company attaches great importance to and continuously strengthens the independent supervision and value-added role of internal audit. During the reporting period, the audit work closely focused on the company's central tasks.

Remuneration of directors, supervisors and senior management

Ten thousand yuan 959.91

(Including current and former employees) First, improve the organization and system

In order to strengthen centralized and unified leadership, the company formally established and operated the "Audit and Risk Prevention and Control Working Committee" during the reporting period, which reviewed 23 major matters throughout the year. An audit and risk control department is set up at the company level, and a full-time audit center is set up at the subsidiary level to form a work pattern that combines management supervision and professional execution. At the institutional level, 4 basic systems and 10 operating specifications including the "Internal Audit Work Regulations" were formulated and issued, and a relatively complete audit system was built.

The second is to deepen the coverage of audit supervision

Strengthening internal management In 2025, the company coordinated and implemented 81 audit projects of various types, involving 114 units, revealing a total of 1,266 management issues of various types, and steadily promoted full coverage of audit supervision. The audit work comprehensively focuses on the supervision focus of "safety line, risk line, income and expenditure line, management and control line, and benefit line" to promote the deepening of audit from compliance inspection to management optimization. STRENGTHEN INTERNAL MANAGEMENT

The third is to vigorously build a closed loop of rectification

The company effectively implements the "second half of the article" in auditing, solidly promotes audit rectification, improves the "audit-rectification-accountability" mechanism, and consolidates the audit through list management, regular notifications, etc.

In April 2025, the company's Party Committee established the "Audit and Risk Prevention and Control Working Committee" to further strengthen and improve the Party Committee's unified leadership mechanism for audit supervision work. Special committee

Subject responsibility.

We will listen to reports on a regular basis, study and review relevant major matters, etc., and give full play to the party committee's guiding role in major auditing, risk control, and internal control matters.

27 28

Standardize corporate governance

The fourth is to accelerate digital and intelligent transformation

Accountability and Anti-Fraud

The company's independently developed "Intelligent Review of Heavy Drugs-Audit Early Warning Cloud Platform" has achieved version 2.0 iteration and obtained national software copyright. It has built a system covering 110 indicators (including heavy

An early warning and monitoring system with 34 important indicators has initially formed a closed loop of automated monitoring, and explored the dual-drive model of "audit early warning + audit projects".

The company adheres to clear rights and responsibilities and a combination of punishment and punishment, constantly improves the accountability system for illegal operations and investments, and severely cracks down on fraud to strengthen supervision and deterrence and ensure asset safety.

The fifth is to deepen grassroots supervision

The company has set up audit compliance officers and audit compliance specialists in major sales areas, giving them responsibilities such as early-stage risk monitoring, later-stage rectification supervision and regional compliance empowerment, etc., so as to provide risk management

Early detection and early treatment of risks provide effective support. First, improve the institutional system

During the reporting period, the company strictly complied with the group's requirements and timely updated and issued five systems including the "Implementation Measures for Accountability for Responsibility for Illegal Operations and Investments" to make the accountability work more standardized.

Second, serious investigation and accountability

risk management

The company has adopted a "zero tolerance" attitude and has solidly promoted accountability work. A total of 16 accountability cases were investigated throughout the year; it also actively verified and dealt with 9 anti-fraud clues, effectively strengthening the awareness of compliance and discipline.

The company follows the principles of comprehensiveness and importance, and is committed to building a comprehensive risk management system covering the entire process and all levels to achieve risks that are “knowable, controllable, and affordable.

"receive" as the overall goal.

The third is to implement responsibility interviews

First, build three lines of defense

Since the company established the responsibility interview system in March 2025, the company has interviewed 7 subordinate units with outstanding problems or risks, covering 43 leading cadres. The company has established three lines of defense consisting of business departments, risk management departments and supervision departments, with clear responsibilities and coordinated linkage. During the reporting period, with the strengthening of functions, the company

Move the monitoring gate forward.

The optimization work of the comprehensive risk management system was quickly launched.

The second is to optimize the management process

The fourth is to strengthen supervision and coordination

The company has established a full life cycle closed-loop management process covering risk "identification-assessment-early warning-disposal-evaluation". In 2025, the company organized a survey covering 201 legal entities

The company closely connects accountability and anti-fraud work with internal audit, disciplinary inspection and supervision systems, forming a joint supervision system with comprehensive coverage and rapid response. annual risk analysis and forecasting (coverage rate 89.33%), focusing on core risk areas to carry out research and judgment, and dynamically monitor risks through monthly and quarterly tracking and special assessments

situation. The company incorporates risk management into annual performance reviews and establishes accountability mechanisms.

The third is to consolidate the foundation of the system

Indicator Unit 2023 2024 During the 2025 reporting period, the company formulated and released 9 core systems including the "Comprehensive Risk Management Measures"; initially established a hierarchical risk dynamic monitoring mechanism, and monitored 52 specific risk events.

Tracking of items; and actively exploring the use of audit warning data for risk identification and strengthening system linkage.

Number of internal risk control training times 14 10 5

The fourth is to promote the construction of smart supervision and risk control platforms

During the reporting period, in accordance with the unified deployment and arrangements of the group, the company comprehensively promoted the construction of smart supervision and risk control middle platforms, promoted the embedding of risk control into the business, and achieved system management and control. Total number of internal risk control trainings Person-time 2.246 1.038 2.414

The fifth is to cultivate a risk culture

Total hours of internal risk control training hours 5.316 2.534 4.538 In 2025, the company organized 5 internal risk control trainings, covering 2,414 people and a total of 4,538 hours, to continuously improve the risk awareness and prevention and control capabilities of all employees.

29 30

Improve compliance construction

In order to actively implement the strategy of comprehensively governing the country according to law, thoroughly implement the work arrangements of the State-owned Assets Supervision and Administration Commission and General Technology Group, and continuously improve the company's compliance management level, the company issued a new "Compliance Initiative" and organized all cadres and employees to sign a new "Compliance Commitment" online to further enhance the compliance management awareness of all cadres and employees and internalize the concept of "compliance management, everyone is responsible" in their hearts and externalize it in their actions. During the reporting period, the signing rate of the company’s Compliance Commitment was 100%.

Improve compliance construction

Compliance Management Practices

STRENGTHEN COMPLIANCE DEVELOPMENT

Each department of the company strictly adheres to its functional responsibilities and continuously deepens compliance management in key areas such as finance, human resources, and business operations to ensure that all business operations comply with legal and regulatory requirements and improve the company's compliance level and risk prevention capabilities.

Based on its own business actualities, the company conducts in-depth compliance management in key business areas. For marketing businesses such as contract sales projects, it has formulated the "Contract Sales Project Marketing Compliance Manual" to standardize the compliance standards and behavioral norms of this type of business. For case-related matters, it has formulated the "Litigation Case Operational Compliance Guidelines" to identify the entire flow of cases.

Compliance management

compliance risk points and corresponding control measures in the process, and guide the company's internal case handling work in a legal and compliant manner.

At the same time, the company selected four subsidiaries of Chongyao Equipment, Chongyao Henan, Chongyao Heping Pharmacy, and Chongkong Shanxi as key compliance subsidiaries, promoted the construction of the compliance management system to penetrate into lower-level units, and guided these four subsidiaries to establish a compliance system system and fully implement We have established a compliance personnel system and combined with our respective business realities, we have formulated four special compliance systems: "Special Compliance Guidelines for Bidding and Bidding", "Special Compliance Guidelines for Medical Equipment Procurement and Sales Business", "Special Compliance Guidelines for Commodity Procurement" and "Quality Management Compliance Guidelines"

item guide.

The company has revised the "Compliance Management Measures" in accordance with the State-owned Assets Supervision and Administration Commission of the State Council's "Compliance Management Measures for Central Enterprises" and General Technology Group's "Compliance Management Measures".

"Administration Measures" and "Compliance Manual" provide principled compliance guidance for the company's business management behavior and employee behavior, and help the company and employees carry out various operations and management in a legal and compliant manner.

activities to form a compliance culture of "compliance management is everyone's responsibility", practice the company's compliance values and establish the company's compliance image. Compliance review

The company's compliance management follows the basic principles of "comprehensive coverage, strengthened responsibilities, coordination, and objectivity and independence" and is established by the Party Committee, Board of Directors, Rule of Law and Compliance Committee,

The compliance management organizational system composed of business functional departments, legal and compliance departments, audit and risk control departments, disciplinary inspection offices and other departments integrates compliance requirements into the company's daily operations.

The company continues to strengthen the core role of legal compliance review in legal operation and management, formulated the "Legal Compliance Review Management Measures" and revised the "Contract Management Measures" to ensure that compliance management resonates with the company's development.

etc., standardize the company's legal compliance review work, ensure that every business decision and action complies with laws, regulations and industry standards, and ensure the company's actual needs for legal operation and healthy development. During the reporting period, the company's legal review rate for contracts, rules and regulations, and important decision-making matters reached 100%, effectively preventing compliance risks and enhancing the company's overall competitiveness and sustainable development capabilities.

Party committee

Compliance training

board of directors

Rule of Law and Compliance Committee

Manager level The company is well aware of the importance of compliance operations to the survival and development of the company. It regularly carries out compliance training, combines legal publicity and education, and establishes an institutionalized and normalized training mechanism to ensure that all employees can deeply understand and comply with the company's compliance goals and requirements.

General Counsel/Chief Compliance Officer

No. No. No.

Business functional departments Compliance management department Disciplinary inspection agencies and audit, inspection, supervision and accountability departments Case: In July 2025, Chongqing Pharmaceutical Holdings launched the 2025 rule of law compliance training. The training theme was "Legal Compliance Training and Case-based Promoting Management and System Publicity and Implementation Training". For Chongqing Pharmaceutical Holdings

one two three

The cases that have occurred will be traced back to their origins, the root causes will be analyzed, and the newly revised legal and compliance systems after the merger into General Technology Group will be fully publicized and implemented to further enhance the effectiveness of all employees.

Business functional departments Dao Legal and Compliance Department Dao Audit and Risk Control Department Discipline Inspection Office Dao

The awareness and ability to govern enterprises according to law and operate in compliance with regulations will safeguard the company's sustainable, healthy and high-quality development.

guard against guard against

Complete the department's line of organization, coordination, supervision, and support in accordance with compliance requirements. Supervise the implementation of compliance requirements within the scope of authority, and monitor violations of regulations.

Conduct investigations into various operating activities in the business field and carry out accountability in accordance with regulations

Deputy General Manager of Administrative Compliance and Audit and Compliance Officer

Undertake the requirements of disciplinary inspection, legal affairs, and audit departments, and provide

Supervise and inspect the compliance status of each branch company. Business cooperation of branches and branches of the southern/northern sales headquarters.

Supervise and inspect regulations

Chongqing Pharmaceutical Holdings Joint Stock Compliance Management Organizational System Framework

31 32

Improve compliance construction

Information Disclosure

Related party transaction management

The company strictly abides by the "Information Disclosure Management Measures for Listed Companies", "Shenzhen Stock Exchange Stock Listing Rules" and other relevant information disclosure regulations, always adheres to the authenticity, accuracy, completeness and timeliness of information disclosure, formulates and implements the "Information Disclosure Management System", and continues to regulate the information of itself and relevant information disclosure obligors. The company follows the "Company Law", "Securities Law", "Shenzhen Stock Exchange Stock Listing Rules" and other laws and regulations as well as the relevant provisions of the "Articles of Association", combined with business development

Disclosure behavior ensures that investors can fully understand the company's operating conditions, financial status, risk status and development prospects. During the reporting period, the company did not violate the information facts by formulating the "Related Transaction Management System" and the "Notice on Strengthening the Management of Related Transactions of Affiliated Mixed Ownership Enterprises" to clearly define related persons and related transactions.

Penalties imposed by disclosure requirements.

Identify the scope, clarify the pricing principles and decision-making approval process for related-party transactions, standardize the information disclosure requirements for related-party transactions, and effectively protect the legitimate rights and interests of the company and all shareholders. Public

The company rechecks and sorts out the list of related parties at the beginning of each year, formulates the estimated upper limit of annual related party transactions, and promptly performs the review procedures of the board of directors or shareholders' meeting in accordance with regulations.

and complete information disclosure; in order to ensure the objectivity and fairness of decision-making, the company strictly implements the avoidance voting system for related-party transactions. When reviewing related-party transactions, related shareholders must abstain from voting.

shall not exercise voting rights on behalf of other shareholders. After related party transactions are reviewed and approved by the board of directors or shareholders' meeting, the company promptly signs an annual related party transaction framework with relevant parties.

During the reporting period

A framework agreement clarifies the rights, obligations and related responsibilities of both parties. During the execution of annual related-party transactions, the company continues to track the actual occurrence. If there are changes in related parties, transactions

If the actual amount incurred by Yiyi exceeds the estimated amount, the corresponding review and disclosure procedures will be implemented as soon as possible. The company disclosed a total of periodic reports and temporary announcements

6 140

portion portion

In the management of related-party transactions of subsidiaries, the company has established a comprehensive and efficient management system through multi-dimensional measures. On the one hand, we should improve the company’s understanding of subordinates’

Dynamic management of the company's related parties, updating the basic information, business transactions and other data of related parties, regularly collecting detailed lists of related parties of subsidiaries, and analyzing their business changes

According to the situation, the list of related parties will be adjusted in a timely manner to ensure the accuracy of management. On the other hand, the company regularly conducts spot checks on its subsidiaries and conducts inspections through system data verification and other methods.

potential risks. In addition, the company strictly implements the filing system and requires subsidiaries to promptly submit relevant information to the company for filing before related transactions occur. The company is responsible for filing information.

Strictly review the materials, focusing on the necessity, compliance and impact of the transactions on the company's financial status, to achieve full control of related transactions and effectively prevent related transactions

Transaction risks and protect the legitimate rights and interests of the company and shareholders.

Investor Relations Management

The company attaches great importance to investor relations management. The chairman of the company coordinates investor relations management and assumes primary responsibility for the company's investor relations management. The secretary of the board of directors is the person in charge of investor relations management and is responsible for organizing and implementing the daily management of investor relations. The Securities Department is a specialized investor relations management agency.

tax management

Responsible for the daily management of investor relations.

The company has formulated the "Investor Relations Management Measures" in accordance with relevant laws and regulations and the relevant provisions of the "Articles of Association", adhering to the "compliance, equality, initiative, and integrity". The company abides by the basic principles of tax payment in accordance with the law, strictly follows the requirements of tax-related laws and regulations, and establishes and improves tax compliance management. The company pays taxes in accordance with the law. In accordance with the principle of "being honest and trustworthy", we carry out investor relations management work through multiple channels, multiple levels and multiple methods to protect investors' rights to know, vote and other legitimate rights and interests, manage the system, reasonably control tax risks, strictly prevent tax violations, and effectively fulfill the corporate tax liability. During the reporting period, 15.78 maintained a good relationship of trust between the company and investors.

billion

The company paid tax of 1.578 billion yuan in accordance with the law.

Tax risk prevention measures Investor communication channels

During the reporting period, the company strengthened the research and publicity of financial and taxation policies with investors through investor surveys, phone calls, emails, interactive platforms, and held performance briefings, roadshows, and investor open days. Relying on various meetings such as quarterly work meetings, the company organized special training and study on tax regulations to ensure that relevant personnel understand the policy requirements; maintain adequate communication with investors, and effectively safeguard the legitimate rights and interests of investors.

Build a tax sharing platform to streamline, standardize and standardize tax calculation work such as value-added tax and corporate income tax, and improve tax management efficiency and compliance;

Guide each member enterprise to fully and legally enjoy various preferential tax policies, embed some preferential policy rules into the system, and rationalize tax costs under the premise of compliance

Control.

Case: Chongyang Pharmaceutical Holdings participated in the strategy meeting

On August 27, Chongqing Pharmaceutical Holdings participated in a strategy meeting organized by Zheshang Securities. During this period, it had detailed exchanges with Sunshine Assets and Zheshang Securities on the company's operating conditions, hemp essence business, collaborative protection of investor rights and interests, development and market value.

Case: Chongqing Pharmaceutical Holdings held a performance briefing meeting

PROTECT INVESTORS' RIGHTS AND INTERESTS

On May 6, Chongqing Pharmaceutical Holdings held a 2024 performance briefing. The company's chairman and other senior executives communicated with online investors on the operating conditions, financial performance, industry policies and other issues of the company's various segments. During the meeting, the company's senior management discussed the operating conditions, changes in financial data and industry policies in subdivided areas such as devices/traditional Chinese medicine/e-commerce that investors are concerned about.

The company provided detailed answers to questions such as these, and emphasized that the company will continue to pay attention to policies and regulations to promote investment value improvement.

33 34

Abide by business ethics

Indicator Unit 2023 2024 2025

Number of investor surveys received 88 41 35

Number of investors received for surveys Number of persons 169 95 80 Abide by business ethics

Number of investor questions answered 185 149 113

ABIDE BY BUSINESS ETHICS

Investor question response rate % 100 100 100

In 2025, Chongqing Pharmaceutical Holdings will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and fully implement the Fourth Plenary Session of the 20th Central Committee of the Party and the 20th Central Commission for Discipline Inspection. Number of interactions with investors on Huayi.com 125 115 111

In line with the spirit of the Fourth Plenary Session, we conscientiously implement the various work arrangements of our superiors on comprehensive and strict governance of the party, insist on using the spirit of reform and strict standards to manage and govern the party, improve the system of comprehensive and strict governance of the party, deepen the promotion of correct work style, eliminate discipline and anti-corruption, and use the new results of comprehensive and strict governance of the party to ensure high-quality completion of the goals and tasks of the "14th Five-Year Plan" and a good start for the "15th Five-Year Plan". Number of investor open exchange meetings held 1 2 2

Number of company open days held 1 1 1

Integrity Construction and Anti-Corruption

Number of calls received from investors: 235 215 223

Number of communication via email/social platform times 88 39 32

Continuously improve the company's party style and clean government construction and anti-corruption work system

Protection of Shareholders' Rights and Interests: The company insists on investigating and treating "corruption" issues at the same time, conducts solid study and education on the spirit of thoroughly implementing the eight central regulations, establishes special work classes, formulates special work plans, holds warning education conferences, and organizes party members and cadres at all levels to carry out self-examination and self-correction. In light of the new requirements after entering General Technology Group, the company actively establishes and revises systems in various fields. In accordance with the relevant requirements of the "Listed Company Supervision Guidelines No. 3 - Cash Dividends of Listed Companies" and the "Articles of Association", combined with its own operating conditions and business development mechanisms, the company further improves the internal control management system and continuously reduces and plugs integrity risks and loopholes. Regularly hold party style and clean government construction and anti-corruption coordination group meetings to coordinate planning and formulate the "Shareholder Dividend Return Plan for the Next Three Years (2024-2026)". This plan continues the stable cash dividend policy, and appropriately enhances the company's internal disciplinary inspection, auditing, legal affairs and other supervision forces, integrates and summarizes daily supervision situations, and promptly discovers and corrects emerging and tendentious problems.

At the same time, we actively explore the mid-term dividend model and begin to implement mid-term dividends in 2024. We have implemented mid-term cash dividends for two consecutive years to effectively improve

Increase investors’ sense of gain and return levels.

Integrity and Compliance Management

The Secretary of the Company's Discipline Inspection Commission conducts anti-corruption talks from time to time with the "top leaders" of functional departments and affiliated enterprises, and makes work requirements and reminders based on the integrity risks in their respective fields. The company will implement an interim dividend again in 2025. A total of approximately 103 million yuan will be distributed throughout the year through interim dividends and annual dividends. The cash dividends distributed throughout the year account for the vested portion of the year.

Always maintain high-pressure supervision of personnel in key positions such as “top leaders”. The company's Discipline Inspection Commission regularly conducts pre-appointment integrity talks and knowledge tests on integrity laws and regulations for newly appointed and promoted cadres, and the proportion of shareholders' net profits of listed companies is 26.57%.

Promote learning through examinations and establish discipline through learning, and continuously consolidate the ideological defense line of discipline and law for newly appointed and promoted cadres.

In 2024 and 2025, the company will distribute a total of 206 million in cash dividends. The ratio of the total amount of dividends in the two years to the average net profit attributable to the parent company in the two years is 61.66%, which is 61.66% higher than that in 2022 and 2025.

In 2023, the total amount of dividends will increase by 16 million yuan, and the ratio of the total amount of dividends to the two-year average net profit attributable to the parent company will increase by 37.55%.

Integrity education, training and publicity

Indicator Unit 2023 2024 2025

In 2025, the company's Discipline Inspection Commission organized and carried out 8 integrity education and training and integrity publicity sessions for key groups and key positions such as expatriate cadres and young cadres, and organized party members and cadres to visit the integrity education base for three consecutive times. We held a warning and education meeting on typical disciplinary and illegal cases within the company, deeply analyzed relevant disciplinary and illegal cases within the company, and used "things around us" to educate "people around us". In line with the requirements for the construction of a clean government culture in the new era, the company issued the "Family Assistance to Integrity Initiative" and the "Ten Must-Questions" Supervision Reminder Card for Family Assistance to Integrity to more than 300 cadres, and organized more than 300 family members of cadres to sign the "Family Integrity Commitment".

Cash dividend amount per 10 shares Yuan 0.5 0.6 0.6

35 36

Adhere to the leadership of party building

Deepen the construction of work style and build a strong line of defense against integrity

The company always insists on putting the party's political construction in the first place, carries out in-depth study and education on the implementation of the eight central regulations, and strengthens good work and discipline with a strict tone. in organization

In terms of leadership, we quickly set up special work classes, formulated special plans, consolidated responsibilities at all levels through special promotion meetings, focused on leading cadres and key personnel, and ensured learning and education.

Full coverage, no blind spots. In terms of ideological and soul building, we deepened theoretical discussions and warning education, and held a total of 6 reading classes and central group studies, 396 branch seminars, and special topics

Adhere to party building as a guide

216 party classes were held to guide all members to learn from the case and build a solid ideological defense line.

The company insists on open-door education, extensively soliciting 187 opinions, accurately identifying 259 problems, and formulating 324 rectification measures. Focus on illegal eating and drinking and the hidden "four styles"

UPHOLD INTEGRITY AND BUSINESS ETHICS

In order to solve the deformation problem, dynamic ledger management and account cancellation mechanism were implemented, and the rectification results were remarkable. At the same time, we pay attention to the combination of "immediate changes" and "long-term establishment" to build new and revised styles of work.

There are 36 relevant systems, including a list of responsibilities for comprehensive and strict party governance, to promote the institutionalization and normalization of style construction.

Through a series of pragmatic measures, the company's political ecology continues to improve, party members and cadres' awareness of discipline and rules has been significantly enhanced, and prominent issues such as illegal eating and drinking have been effectively curbed.

2025 is the first year for Chongqing Pharmaceutical Holdings to integrate into General Technology Group. The company's party committee adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and has deepened the relationship between the party and the masses. The people's sense of gain and trust has been greatly improved, and the atmosphere for entrepreneurship and entrepreneurship has become increasingly strong. The company will continue to consolidate the results of rectification and improve the long-term governance mechanism.

Study and implement the spirit of the 20th National Congress of the Communist Party of China and the Third and Fourth Plenary Sessions of the 20th Central Committee of the Communist Party of China, firmly grasp the fundamental attribute of "a central enterprise surnamed Party", closely follow the group's party building work system, anchor the company's party representative, protect the high-quality and sustainable development of the enterprise with good style, and effectively fulfill social responsibilities.

The "166" party building work ideas determined by the meeting will solidly promote the deep integration of party building and operation, effectively transform the party's political and organizational advantages into the core competitiveness of the company's high-quality development, and provide strong political guarantee, organizational support and spiritual motivation for the company's high-quality development.

Case: Warning Education Conference on Typical Cases of Violations of Discipline and Laws

Party Building Organizational System

On December 26, Chongqing Pharmaceutical Holdings held a warning and education meeting on typical cases of internal disciplinary and law violations in 2025.

Analyze typical cases of violations of disciplines and laws, educate and guide party members and cadres at all levels to learn from the cases and sound the alarm

The company has a total of 159 sub-party organizations at all levels, including 5 party committees, 3 general party branches, and 151 party branches; there are a total of 1,883 party members. In 2025, we will benchmark the standards of central enterprises, complete the reelection of the company's "two committees" with high quality, and establish the "166" party building work idea. The establishment of two professional departments, the Party and Mass Work Department and the Party Committee Inspection Office, laid an organizational foundation for improving the standardization and standardization of party building work. The election of 48 grassroots party organizations was completed, 23 additional party organizations were added, and 1 general party branch was upgraded to the party committee. We improved 38 items of party building systems and promoted the standardized construction of party organizations. Four branches were rated as "Hongyan Pioneer, Four Strong and Four Good" party branches by Chongqing State-owned Assets Supervision and Administration Commission. Throughout the year, 116 party members were developed and 58 became regular members. Relying on anti-unfair competition platforms such as “General Intelligent Party Building” and “Hongyan Pioneer”, we will promote the digital and intelligent transformation of party building and improve management efficiency and business support accuracy.

The company strictly abides by laws and regulations such as the Anti-Monopoly Law of the People's Republic of China and the Anti-Unfair Competition Law of the People's Republic of China, and advocates fair transactions and fair competition.

Topic Assessment Process Analysis Methods We oppose all unfair competition and monopolistic behavior and are committed to maintaining a healthy competitive environment. During the reporting period, no vicious competition incidents occurred in the company. July 23, 2025

Personnel from the Company’s Legal and Compliance Department participated in the 2025 Sixth Anti-Monopoly Compliance Lecture held by the Chongqing Municipal Administration for Market Regulation, focusing on anti-monopoly law and supporting regulations and in-depth study.

Learn the key points of enterprise compliance risk prevention, understand how enterprises benchmark against anti-monopoly laws and other institutional rules, conduct comprehensive and in-depth investigations of possible monopoly risks, and continue to improve proactive prevention. The Party Committee Office is responsible for the processing of Party Committee documents, preparation for Party Committee meetings, and the stabilization of petitions. and the ability to resolve monopoly risks.

Reporting Management Party Committee Organization Department coordinates the construction of various talent teams.

The company actively builds a comprehensive and efficient reporting management system, smoothes reporting channels, and encourages employees and stakeholders to report any behavior that harms the company's interests. At the same time,

The company has improved the whistleblower protection mechanism, strictly keeps confidential the personal information of whistleblowers and all the materials provided, prohibits any form of retaliation, and safeguards the integrity of the company.

the legitimate rights and interests of the reporter. Organize and promote the company's party committee to implement the main responsibility of comprehensively and strictly governing the party, and be responsible for the construction of grassroots party organizations, the construction of party members, and the party-mass work department

United front work, propaganda work, ideological and political work, implementation of the ideological responsibility system, promotion of spiritual civilization construction and enterprise (Party Committee Propaganda Department, Party Committee United Front Department)

Industrial culture construction; coordinate the company's united front work, overseas Chinese affairs, Communist Youth League, anti-cult and stability maintenance, aid to Xinjiang, Tibet and Youth League, etc. Reporting and Complaint System

The Discipline Inspection Office is responsible for accepting reports, accusations and complaints from party organizations, party members and leading cadres at all levels regarding party discipline, style and integrity.

If any corruption is discovered, it can be reported through the external reporting hotline set up by the Discipline Inspection Office.

The Complaints and Complaints Office is the centralized management department for the reception and processing of complaints and complaints of the company, and all functional departments cooperate in the reception and processing of complaints and complaints.

The Discipline Inspection Office is responsible for the unified acceptance and management of all documents owned by the company’s party committee management cadres, second-level party organizations, and personnel other than companies with disciplinary inspection commissions.

(Party Committee Inspection Office) Handle, verify and hold accountable problem clues; perform inspections and rectification work. The company issued the "Anti-Fraud and Reporting Management System" and "Anti-Fraud Reporting Rewards Implementation Rules", and the Audit and Risk Control Department

If the accepting department finds that there is any behavior that seeks improper personal interests and harms the legitimate economic interests of the company, including but not limited to official duties,

Fraudulent behaviors such as embezzlement, counterfeiting, accepting bribes, leaking secrets, etc. can be reported through the anti-fraud email address and phone number.

The Trade Union Office is responsible for the work of trade unions and female workers.

Report hotline: 023-63892860

Email: [email protected]

37 38

Adhere to the leadership of party building

Build a strong red position and empower high-quality development

Party building work results

In order to solidly promote the standardization and standardization of grassroots party organizations, the Chongqing Pharmaceutical Holdings Party Committee made overall arrangements, and enterprises at all levels responded actively. So far, 115 specific projects have been completed.

Prepare the company's party building position for transformation. The construction of positions adheres to the "six haves" standard. From budget review to implementation, all professional departments and departments oversee the entire process to ensure that construction regulations strengthen political guidance and build a solid ideological foundation.

Standard and orderly management. By unifying the visual identity and optimizing the spatial layout, we can achieve co-construction and sharing of positions, effectively enhance the cohesion and sense of belonging of party members and employees, further promote the integration of corporate culture, and build a solid red position for the high-quality development of the company.

We will work hard to arm ourselves with theory, revise the "Implementation Measures for the "First Topic" System", and build a closed-loop mechanism. Carry out 30 times of "First Topic" study with a total of 48 items; focus on topics such as Healthy China and New Quality Productivity, conduct 7 concentrated studies and 5 special seminars, form 8 high-quality research reports, and complete 2 group party building projects. Party organizations at all levels study, publicize and implement the spirit of the Fourth Plenary Session of the 20th CPC Central Committee. We have carried out solid study and education in the spirit of the eight central regulations, organized more than 400 seminars, investigated 259 problems, and established 36 long-term mechanisms. Deepen the comprehensive and strict governance of the party, revise the "List of Responsibilities for Comprehensive and Strict Governance of the Party", "Implementation Measures of the "Three Major and One" Decision-making System" and other systems, and study 126 party-building matters. Establish a ledger of the General Secretary’s important instructions and instructions, with closed-loop management and dynamic tracking. The party building enrollment rate reaches 99%, the "two-way entry and cross-appointment" rate is 93%, and the "one-shoulder-to-shoulder" rate is 84%. The level of institutionalization and standardization of party building continues to improve; political life within the party is standardized. Systems such as democratic life meetings and dual organizational life were strictly implemented, and heart-to-heart talks between party committee secretaries and secondary party organization secretaries were fully covered, and the quality of the "three meetings and one lesson" at the grassroots level was significantly improved.

Integrate the party industry to strengthen governance, and integrate innovation to promote development

Strengthen party building in mixed-ownership enterprises, carry out penetrating supervision on 150 mixed-ownership enterprises, achieve full coverage of party organizations in 136 mixed-ownership enterprises, complete the nomination of 12 small shareholders to be transferred to party committee management cadres, improve the pre-investment and post-investment party building management mechanism, and ensure that mixed ownership The party building work of jointly owned enterprises and production and operation are planned, deployed, promoted and assessed together; the integration practice is deepened, the in-depth binding of party building and business assessment is promoted, and the "Party Building +" special action is carried out. Two "Party Building +" projects of Heavy Drug Logistics and Heavy Drug New Health were selected into the group's model library. Actively respond to the national low-altitude economy and healthy China strategic deployment, take advantage of the opportunity of Chongqing's low-altitude airspace reform, use party building to lead the activation of scientific and technological momentum, promote the implementation of regular drone drug delivery projects, deepen the "party building + technology" integration model, and empower medical emergency support to improve quality and efficiency. The project effectively breaks through the bottleneck of ground transportation and successfully builds multiple "life channels in the air." The cumulative flight mileage in 2025 will exceed 3,000 kilometers, and the delivery time is 50% higher than the traditional model. It effectively empowers the upgrade of the pharmaceutical supply chain with technological innovation and provides efficient support for regional medical emergency support.

Demonstrate the responsibility of central enterprises and enhance the social value of the brand

With "the great nation" in mind, we should keep in mind the political mission of central enterprises, regard the fulfillment of social responsibilities as an important political task, solidly promote the work of aiding Xinjiang, Tibet, Qingdao, and Jiangxi, demonstrate the responsibilities of central enterprises, convey the warmth of central enterprises, and continue to enhance the corporate brand value with practical actions. In terms of aid to Xinjiang, we completed the construction and operation of the Aksu branch, recruited 12 Xinjiang college graduates, and selected management backbones for temporary exchanges to ensure the accessibility of medicines in border areas; we deepened strategic coordination with the Xinjiang Production and Construction Corps Pharmaceutical Co., Ltd., improved the pharmaceutical reserve allocation mechanism, and purchased 25,000 yuan of work clothes and agricultural and sideline products from the Corps to assist the economic and social development of the Corps. In terms of aiding Qinghai, relying on the leading advantage of Qinghai in terms of heavy pharmaceuticals, it has achieved annual sales of 1.04 billion yuan and paid taxes of 16.28 million yuan, contributing to local economic development; it has specially recruited 12 Qinghai college graduates, innovatively provided employment positions for 2 deaf-mute people with disabilities, fulfilled its responsibility for caring for ethnic employees and ecological environmental protection, and effectively helped improve local people's livelihood. In terms of aid to Ganzhou, it invested more than 20 million yuan in Ganzhou to build a modern pharmaceutical service base, providing 50 jobs and driving local employment and income; it launched a Chinese herbal medicine planting demonstration project, initially built a sustainable development model for industrial aid to Ganzhou, promoted local high-quality development with industrial empowerment, and effectively fulfilled the central enterprise's assistance responsibilities.

Strengthen the empowerment of united front groups and gather synergy for collaborative development

Adhere to the united front work pattern and use united front and mass work to gather the joint efforts of all employees to assist the reform and development of the enterprise. A united front work leading group was established to strictly implement the mechanism for party committee members to liaise with system combatants, build a platform carrier for united front personnel to play their role, and convene a united front work symposium for the first time to promote the deep integration of united front forces into the overall reform and development of the enterprise. Simultaneously strengthen the leadership of mass and group work, complete the company's trade union re-election, elect the sixth trade union "Three Committees", continuously strengthen the role of the trade union as a bridge and link, promote the resonance and direction of mass and group work and party building work, inject warm power into the high-quality development of the company, and gather the joint efforts of all employees.

39 40

DEVELOPMENT REPORT

Green Leadership

Pursue Low-carbon Development.

Green pilot

Practice low-carbon development

Contents of this chapter

Environmental Management Heavy Pharmaceutical Holdings actively responds to national policies, always adheres to the ecological and environmental protection concept of "lucid waters and lush mountains are invaluable assets", publicizes and implements the 20th National Congress of the Communist Party of China and the Second Session of the 20th National Congress of the Communist Party of China.

In accordance with the spirit of the Central Plenary Session, we will implement the deployment of the National Ecological Environmental Protection Conference, promote the implementation of the "Opinions of the CPC Central Committee and the State Council on Comprehensively Promoting the Construction of a Beautiful China", promote ecological resource management culture, cultivate ecological ethics, advocate the concept of green and low-carbon development, and enhance employees' ecological and environmental awareness.

SDGs in response to climate change

41 42

environmental management

SHE accident liability investigation system

The company implements a SHE accident liability investigation system. Once an accident occurs, the responsible person and relevant personnel will be held accountable according to their authority.

Environmental Management

environmental management

environmental protection concept environmental protection concept

Save resources, clean production, scientific planning, protection first, prevention first, comprehensive management, full participation.

Environmental Compliance Management

2025 Environmental Protection Goals Achievement Status Environmental Management System

Eliminate major and severe environmental pollution and nuisance accidents Achieved

Chongqing Pharmaceutical Holdings strictly abides by the "Environmental Protection Law of the People's Republic of China" (hereinafter referred to as the "Environmental Protection Law") and the "Chinese Environmental Protection Law". There are environmental management personnel at all levels of the company.

We must comply with the Environmental Impact Assessment Law of the People's Republic of China and other laws and regulations, attach great importance to environmental management, take green development as the guide, continue to operate efficiently, and eliminate cases that violate environmental protection laws and regulations. Achieved

people

Environmental management system, continuously improve the environmental management system, formulate the "Safety Production Environmental Protection Occupational Health Supervision and Management System", and

The Safety, Environmental Protection and Occupational Health Committee (hereinafter referred to as the "Safety Committee") was established to implement the occupational health safety and environmental protection (hereinafter referred to as "SHE") target responsibility assessment and SHE accident liability investigation system. In accordance with the requirements of laws and regulations, the company has formulated the "Environmental Protection Supervision

people

"Management Measures", environmental protection target responsibility letters were signed at all levels, and a total of 14,887 target responsibility letters were signed (633 at the company level, the synchronized operation rate of departmental pollution control facilities was 100%,

Achieved 3866 door-level copies and 10388 team-level copies). Implement environmental protection responsibilities to every employee and form a management mechanism in which everyone is responsible for environmental protection. Environmental protection engineer. The hazardous waste disposal rate is 100%, and the "three wastes" emission compliance rate is 100%.

system, and established and improved management networks at all levels. As of the end of the reporting period, the company had a total of 429 environmental management personnel at all levels (34 full-time personnel) and

name

1 environmental engineer.

As of the end of the reporting period, many branches and subsidiaries of Chongqing Pharmaceutical Holdings have passed ISO 14001:2015 environmental management system certification. SHE management system

The director of the Safety Committee is the chairman and the president, the deputy directors are the deputy secretary of the party committee and the senior vice president in charge, and the members are the vice president and the safety and environmental protection department.

Personnel and heads of key units shall be responsible. The SHE Committee office is located in the company's Safety and Environmental Protection Department and is responsible for the daily affairs of the SHE Committee.

Environmental management system certification

The company has set up a safety and environmental protection department with full-time SHE managers to meet work needs.

Each branch and subsidiary establishes a SHE organizational leadership structure and establishes a SHE committee.

The main person in charge shall serve as the chairman of the committee, and its members and responsibilities shall be clearly defined.

Each branch or subsidiary shall set up a SHE management organization in accordance with the law and be equipped with corresponding full-time or part-time management personnel.

Establish and improve the SHE management system from management agencies to grassroots teams.

SHE target responsibility assessment

Chongyao Fuye focuses on controlling the people's livelihood in Hunan and focusing on Shaanxi. Chongyao Shaanxi Fahrenheit Company formulates an annual SHE target plan and breaks down the annual SHE control indicators issued by superiors into annual safety production assessment indicators for each branch and subsidiary.

After approval, each branch and subsidiary signs the "Responsibility Letter for Safety, Environmental Protection and Occupational Health Goals" and implements it. To improve safety production conditions,

Companies and individuals that have made outstanding achievements in SHE work such as preventing production safety and environmental protection accidents will be commended and rewarded.

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environmental management

Environmental Management System Certification Environmental Risk Management

In accordance with the requirements of "Construction of a Dual Prevention System in the Industry and Trade Industry", the company has established and improved a dual prevention working mechanism for graded prevention and control of safety risks and investigation and management of hidden dangers. Subsidiary companies have established and improved management systems for investigation and management of hidden dangers, and established information systems for graded risk management and control, and investigation and management of hidden dangers.

Environmental Risk Management Process

At the beginning of each year, the company divides branches and subsidiaries into five categories based on their SHE risks, economic scale and management difficulty, and implements four-color classification supervision and management and dynamic adjustment of "blue, yellow, orange and red". Different risk levels implement hierarchical management and control, requiring risk identification and assessment and hierarchical control branches and subsidiaries to formulate rectification and control measures to reduce risks. Each branch and subsidiary has established a SHE risk management system, conducts hazard identification, risk analysis and assessment every year, clarifies the scope and responsibilities of management and control at all levels, and implements risk announcements, warnings, education, and skills training.

Heavy control of Hubei Heavy drug Inner Mongolia Tianhe Heavy control of Beijing Heavy control of Hunan

The company revised and improved the "Safety and Environmental Protection Occupational Health Inspection and Assessment Management Measures", implemented monthly, quarterly, and annual comprehensive inspections and special inspections under the dynamic management of color standards, and required all branches and subsidiaries to establish "daily, weekly, and monthly" hidden danger inspections and management. A management mechanism is used to investigate hidden dangers in a variety of ways and rectify them in accordance with the "Five Certainties" (rectification plan, rectification time, person responsible for rectification, rectification funds, and temporary preventive measures) to ensure that there are no major hidden dangers. At the same time, the investigation and management situation is required to be reported to the company, government functional departments, and the employee congress in a timely manner.

The company formulates an annual SHE education and training plan, and organizes unit leaders, managers, team leaders, etc. to conduct training on SHE laws and regulations, standards and specifications, advanced management concepts, management methods, etc. according to the plan to enhance SHE awareness education and training for relevant personnel.

and management capabilities; all branches and subsidiaries have revised and improved the training management system, and clarified the training content, training hours, assessment and other matters for employees at all levels and types in accordance with regulations.

Re-control of Anhui Re-control of Hunan Borui Chongyao Wanwei Chongyao Huanggang

Main environmental risks

Production wastewater: Wastewater generated during the production and cleaning process of the decoction center, if not discharged in accordance with regulations, will pollute the surrounding environment and cause adverse effects.

Dust and noise: Mainly related to pharmaceutical dust caused by pharmaceutical screening, rolling and other processes in the preparation enterprises, as well as the sound produced by various production equipment during operation. If the discharge is not controlled within the specifications, it may cause environmental pollution and noise pollution.

Hazardous waste: mainly involves damaged, failed, substandard drugs and drug inner packaging, etc. Some units have waste oil and other pollution sources in their facilities and equipment. If the hazardous waste disposal in Ningxia is not stored according to specifications and transferred to qualified institutions for transfer and disposal, it will cause environmental pollution.

The main environmental risk for drug trading companies is whether expired and damaged drugs (expired drugs in main city units are mainly stored in heavy drug flow warehouses and are handled by the quality management department) are transferred and disposed of legally and compliantly.

Indicator Unit 2023 2024 2025

Total investment in environmental protection RMB 10,000 83.99 108 106 The canteens of Chongyao Logistics, Chongyao Fuye, Chongyao Economic and Trade School, Chongyao Changsheng and other units also involve issues such as food waste disposal and whether oil fume emissions meet standards.

45 46

environmental management

Control measures

Strictly implement the main responsibilities of environmental protection at all levels, and improve the basic level of environmental protection in accordance with the requirements of the "Detailed Rules for the Standardized Assessment and Evaluation of Industrial Enterprises' Implementation of Main Responsibilities of Environmental Protection"

basic work;

Strictly implement the new "Environmental Protection Law" and various supporting administrative regulations, strengthen employees' environmental awareness, and essentially improve the level of environmental management.

Strengthen the operation and supervision of on-site pollution collection and treatment facilities, and strengthen maintenance and discharge, strictly comply with the requirements of the pollution discharge permit, standardize the temporary storage of hazardous waste and solid waste, and standardize the cleaning and disposal of emergency drills for environmental pollution caused by Wuhan logistics pharmaceuticals.

Environmental protection training and publicity

Regularly carry out special inspections on environmental protection to control potential environmental pollution risks, improve environmental protection risk emergency plans at all levels, and continuously improve pollution prevention and control capabilities.

Case: Carrying out the “6·5” World Environment Day publicity campaign

For hazardous waste generated during the production process and expired drugs that appear during the operation process, responsible units are urged to store and keep them, and hand them over to qualified professionals on a regular basis.

In order to actively carry out the "Energy Saving Publicity Week" and "Low Carbon Day" activities, heavy drug flow, heavy drug and peace pharmacies, heavy drugs and peace approval institutions are transferred and disposed, and hazardous waste transfer documents are archived and the ledger is accurately recorded. This work is also included in the company's quarterly environmental protection work assessment. Units responsible for manufacturing and manufacturing heavy pharmaceutical equipment carried out environmental day consultation and publicity activities. By setting up publicity stands in stores and units with large traffic and displaying "Environmental Protection Month" flipcharts, promotional banners, knowledge display boards, etc., we distribute promotional materials to community residents, internal employees, and relevant customers, answer relevant environmental protection questions, explain environmental protection laws and regulations, garbage classification and other knowledge, and vigorously promote environmental protection laws and regulations, environmental protection common sense and ecological civilization concepts, so that personnel inside and outside the company can fully understand environmental protection knowledge. At the same time, Heping Wholesale distributes promotional materials to cadres and employees at all levels, customers entering the store and the public, introducing the unit’s environmental protection work results and environmental protection management requirements, vigorously popularizing environmental protection laws and regulations, garbage classification and environmental protection knowledge, and promoting all types of personnel to enhance environmental awareness.

During the reporting period

The company carries out daily environmental inspections to manage potential environmental hazards

The company did not occur 3551 6

Environmental penalties and violations from

The company's "Environmental Protection Awareness Month" consultation day publicity event site. Promotional materials are scrolling on the large screen on the first floor of the company.

Case: Conducting environmental emergency plan drills

In order to further improve environmental protection emergency response capabilities, Heavy Drug Logistics and its affiliated Wuhan Logistics Company have recently formed separate

Organize and carry out emergency response drills for environmental pollution in canteens and emergency drills for environmental pollution caused by pharmaceuticals, and effectively provide practical training through practical simulations.

The ability to respond and handle environmental emergencies at the grassroots level has been improved; the heavy pharmaceutical medical trade has carried out emergency drills for radioactive pharmaceutical accidents, which have

Effectively improve grassroots emergency response capabilities; focus on Shaanxi to organize environmental risk emergency response plan training and practical exercises,

Further enhance the environmental protection awareness and emergency response capabilities of participants in the exercise.

Shaanxi Heavy Control organizes practical drills on environmental risk emergency plans and special hazard investigation on hazardous waste

Heavy Pharmaceutical Logistics posted environmental protection promotional materials. Heavy Pharmaceutical Heping Wholesale distributed energy saving and carbon reduction promotional materials to employees.

Heavy drug equipment launches "Consultation Day" activity

Heavy Pharmaceuticals Medical Trade conducts emergency drills for radioactive drugs

47 48

environmental management

Case: Carrying out learning and education activities

The headquarters of Chongqing Pharmaceutical Holdings organized more than 200 environmental management personnel of secondary enterprises to hold a special training meeting on standardized management of hazardous waste in 2025, and invited external experts to give lectures to enhance their awareness of pollution control responsibilities. heavy drug flow,

Party organizations of Chongyao Heping Pharmacy, Chongyao Heping Wholesale, Chongyao New Health, Chongyao Drug Sales Center and other units studied Xi Jinping Thought on Ecological Civilization and important expositions on the construction of ecological civilization; Heping Wholesale, Chongqing Shaanxi

It is prohibited to cancel or change the identified pollution source monitoring points without authorization;

Units such as West China Heavy Industry and Heavy Industry Control in Guizhou actively organized special training on environmental protection related knowledge, mainly explaining basic knowledge of environmental protection, environmental protection laws and regulations, compliance disposal of hazardous waste, common sense of environmental pollution and garbage classification, and energy conservation.

Consumption reduction and other contents will further enhance front-line employees' awareness of ecological and environmental protection, promote understanding and mastery of environmental laws and regulations, and ensure that corporate environmental protection work is legal and compliant; the School of Medical Economics and Trade launched the "6·5" Environmental Protection Publicity Day

Class meetings are held to promote environmental protection knowledge, educate students to strengthen the learning of environmental protection knowledge, and enhance the safety and environmental protection awareness of teachers and students in the school.

Information such as the names of major pollutants, emission methods, emission concentrations and total amounts, excessive emissions, and the construction and operation of pollution prevention and control facilities shall be disclosed to the public in a timely and truthful manner.

Pollutant management measures

Chongqing Pharmaceutical Holdings organized special training on standardized management of hazardous wastes. The School of Medical Economics and Trade held a themed class meeting on the "6·5" Environmental Protection Awareness Day. Heping Wholesale conducted environmental protection knowledge training. Chongqing Guizhou Energy Conservation and Carbon Reduction themed training

Units involved in relocation should conduct an environmental assessment of the original site, strengthen the management of the transferred and untransferred original sites, and strengthen the management of contaminated sites in accordance with the principle of "who pollutes, who cleans up" and conduct management, control, treatment and restoration of contaminated sites as needed, or clarify in the land transfer agreement that the land transferee is responsible for restoration and treatment responsibilities.

Case: Carrying out community awareness activities

In order to conscientiously fulfill corporate social responsibilities and display a good image of the company, Chongyao Heping Pharmacy has implemented various policies in each department based on actual conditions.

The store carries out activities such as free blood pressure and blood sugar testing for surrounding residents and store customers, and works with cooperative units to care for vulnerable groups.

During the event, we also preached the ideas of ecological environment protection and ecological civilization, and raised the public’s awareness of ecological environment protection.

Consciously practice a green and low-carbon lifestyle. Those responsible for the implementation of pollution control facilities in units involving sewage inspections, canteen food waste, oily waste, etc., and carry out regular heavy-duty drugs and Heping Pharmacy carries out environmental day consultation day publicity activities to strengthen pollution control facilities and

Inspection and maintenance to ensure that the discharge of wastewater and other pollutants meets the requirements of environmental regulations and standards; other commercial units automatically monitor the operation and maintenance management of equipment

Chongyao Heping Pharmacy carried out environmental consultation day publicity activities and implemented pollution prevention measures at the operating site based on actual conditions.

Pollutant emissions

Each unit strengthens on-site "escape, leakage" control to ensure that there are no debris on site, no leaks in equipment and pipelines, no traces of liquids in raw material storage areas, no silt accumulation in trenches and pools, and that the equipment and facilities are in good condition; and thoroughly implement garbage classification standards. Heavy Pharmaceutical Holdings strictly abides by the "Water Pollution Prevention and Control Law of the People's Republic of China", "Air Pollution Prevention and Control Law of the People's Republic of China" and other laws and regulations, and strengthens on-site pollution prevention management during operations.

To benchmark and implement the classification and cleanup of various types of garbage, we must further implement the cleanliness of production and operation sites, formulate relevant internal management systems for wastewater and waste gas generated by garbage, and regularly entrust third-party professional organizations to test wastewater and waste gas to ensure the normal operation of environmental protection facilities.

standardized management.

Standard discharge and compliant disposal of waste water and waste gas (domestic waste gas).

The company's units involved in pollutant discharge must incorporate pollution prevention and control facilities into the management of main facilities and equipment, maintain synchronized operation and maintenance, and ensure that existing pollution prevention and control facilities

The facilities must be intact and effective; when pollution prevention and control facilities are out of operation, dismantled or idle, they must be reported to government departments and companies in a timely manner; at the same time, the provisions of the "Pollution Discharge Permit Regulations" must be strictly implemented.

Conduct pollutant discharge declarations in accordance with the law, and apply for new pollutant discharge permits in a timely manner when they expire.

During the reporting period, the company and its subsidiaries were not among the key pollutant discharging units announced by the environmental protection department, and no penalties or violations occurred due to pollutant discharge.

waste management

In order to standardize the company's solid waste management and reduce the generation of solid waste and environmental pollution, the company has formulated waste-related management systems and strengthened solid waste management in accordance with the "Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste", "Technical Guidelines for Solid Waste Treatment and Disposal Engineering" and other laws, regulations and standard documents. Install online monitoring and monitoring equipment and connect it to the monitoring center of the environmental protection department. Unauthorized dismantling, idleness, alteration and damage are strictly prohibited; the company shall identify and clean up the solid waste generated during the production and operation process according to the "List of Hazardous Wastes" and the "General Principles for the Identification Standards of Hazardous Wastes", ensure standardized collection, storage and disposal in accordance with laws and regulations, and establish and improve ledgers and records. All branches and subsidiaries strengthen solid waste management in accordance with laws and regulations, and unauthorized dumping of solid waste is strictly prohibited.

Strengthen the monitoring of "three wastes" emissions, handle any abnormalities in a timely manner and report them step by step;

49 50

Resource management

Hazardous waste management data

Hazardous waste management

Indicator Unit 2025 The hazardous wastes involved in the company in 2024 are expired drugs from affiliated companies. The company strengthens the entire process management of hazardous wastes and formulates the "Hazardous Waste Compliance Management Guidelines".

Hazardous waste generation tons 131.18 84.08 Focus on implementing the dynamic supervision of the entire process of expired and expired drugs from production, storage to transfer and disposal, and regularly contact qualified environmental protection companies for harmless disposal to ensure that they expire

The compliance disposal rate of expired drugs reaches 100%, and illegal disposal and multi-year storage are eliminated. The company has clarified the management boundaries of expired drugs, and the drugs in each unit are

Generated amount of general solid waste 10,000 tons 0.56/period Before expiration, it should continue to be under the supervision of the quality control department according to its functions. If it is clearly hazardous waste, it should be registered in the hazardous waste ledger. The safety and environmental protection department of each unit should supervise its management

Compliance handling of operating units. The company strictly implements its main responsibility for ecological environment protection and ensures 100% synchronized operation rate of pollution control facilities and 100% standardized disposal rate of hazardous waste.

The "three wastes" emission compliance rate is 100%, and hazardous wastes and general solid wastes are 100% harmlessly treated. The comprehensive utilization rate of general solid wastes strives to reach more than 90%. Amount of hazardous waste generated 10,000 tons 0.0428/Amount of comprehensive utilization of general solid waste tons 8/Total amount of non-hazardous waste generated per million revenue tons/million revenue 678.07/Hazardous waste management regulations

Total amount of waste recycling per million revenue tons/million revenue 0.97/Declaring a hazardous waste management plan to the local environmental protection authority in accordance with the "Hazardous Waste Transfer Management Measures";

Proportion of waste recycled and reused % 0.14 / Hazardous waste disposal volume tons 128 81.87 Set up hazardous waste collection and storage sites, standardized facilities, equipment, containers, packaging and stacking in accordance with the "Hazardous Waste Storage Pollution Control Standard";

Compliance disposal rate of waste % 100 100 Strictly implement the hazardous waste transfer form system; hazardous waste must be handed over to qualified units for disposal.

Ecosystem and Biodiversity Conservation

The company strictly abides by laws and regulations related to environmental protection. The company's business activities do not directly affect ecosystems, biological species and their habitats, biological genetic resources, etc. In 2025, the company organized and carried out standardized management training for hazardous wastes. A total of more than 200 environmental management personnel in the entire system participated in the training to further standardize on-site management of hazardous wastes.

No damage to ecosystems and biodiversity. The company's office buildings and factories should be sited away from areas such as nature reserves, key ecological functional areas, or other specific locations. At the same time, the company continues to carry out special rectification of hazardous waste and garbage classification control, strengthens supervision of the collection and disposal of food waste and oil pollution in canteens, and promotes hazardous waste and pollution control.

Areas with important biodiversity values without damaging local water sources and ecosystems.

Reasonable compliance control.

Case: Comprehensive self-examination and rectification activities for waste environmental hazards

Heavy drug flow, heavy drug Changsheng, heavy control Shaanxi, heavy drug Gansu and other units inspected temporary storage yards and warehouses of solid waste and hazardous waste based on actual conditions, and continued to carry out special rectification of hazardous waste identification and labeling to strengthen

Environmental protection management of solid waste and hazardous waste ensures that expired drugs, waste toner cartridges and other hazardous wastes are recycled and processed in a standardized manner; Heavy Drug Logistics and its subsidiaries Sichuan Logistics and Wuhan Logistics regularly conduct inspections of septic tanks and grease traps in the reservoir area

Resource management

Clean up and process; focus on Hunan people's livelihood, conduct comprehensive inspections of office buildings, logistics centers, canteens, dormitories and parks, and conduct comprehensive clean-ups of hazardous waste process management, environmental risk prevention measures, etc.

and inspections to ensure that hidden dangers are thoroughly addressed.

RESOURCE MANAGEMENT

energy utilization

governance

Heavy Pharmaceutical Holdings continues to promote the construction of green systems, strictly abides by the "Energy Conservation Law of the People's Republic of China" and other laws and regulations related to resource and energy conservation, and improves the flow of energy heavy pharmaceuticals. Cleans out septic tanks and grease traps in the reservoir area. Sichuan Logistics cleans out septic tanks and grease traps in the reservoir area. Wuhan Logistics cleans out septic tanks and grease traps in the reservoir area. Management system, formulate energy management-related systems, and regularly conduct energy-saving training to strengthen energy conservation and emission reduction, improve energy utilization, and contribute to saving resources and energy and reducing carbon emissions.

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Resource management

strategy

Indicator Unit 2025 2024

Type of risk/opportunity Description of risk/opportunity Description of financial impact Impact cycle 1 Countermeasures

Electricity consumption 2 kilowatt hours 52,319,795.66 51,007,709.44

Government National “double carbon” policy, environmental protection

Policy The company establishes the concept of green development and accumulates energy consumption intensity. Tons of standard coal 6,430.10 6,268.85 Stricter regulations may increase the company’s environmental

and actively promote the company's energy conservation work to ensure that the company

Can combine the cost of renovation; local power curtailment policy

energy use, equipment operation, etc. are in line with current

Source Policies may affect the company's warehousing and logistics and increase operating costs. Short- and medium-term energy consumption intensity tons of standard coal/10,000 yuan 0.00078 0.00078 Implement policies and regulations and continuously optimize energy

The stable operation of core links such as phase wind can

Risk Use structures and use clean energy.

Guan may face the risk of business interruption.

wind

can

Risk source The company uses new energy vehicles to replace conventional vehicles

The company's logistics and transportation links are on fire

According to increase operating costs in the short, medium and long term, use fuel vehicles to reduce the use of non-renewable energy sources.

Oil price fluctuations and the impact of “dual carbon” policies,

Lai source depends on. Energy saving measures

Wind may increase transportation costs

risk

Chongqing Pharmaceutical Holdings has adopted a series of practical and effective energy-saving measures in terms of green environmental protection and clean production, and achieved innovative measures and practical results in mitigation and adaptation.

and related cost inputs, as well as specific practices and results in the process of green transformation, as shown in the following table: Source

The government’s policies on new energy and energy-saving reform

Policy subsidies created by relevant policies (such as photovoltaic power generation) improve energy utilization. The company actively applies for local government subsidies.

(Special subsidies, subsidized loans for equipment renewal), improve efficiency, reduce operating costs, build energy-saving projects, and use green financial instruments to support energy upgrades.

It can reduce the company’s green transformation costs.

The local owner warehouse in Chongqing has introduced distribution

Distributed photovoltaic energy projects (excluding energy storage equipment

Distributed photovoltaic power generation has no investment cost and only needs to pay 1. Impact cycle definition: short-term: within 1 year; medium-term: 1 to 5 years; long-term: more than 5 years. The electricity price of photovoltaic power generation is reduced to 812 tons of carbon emissions, which can save 304.5 tons of standard electricity.

(65% of the average price of grid-connected electricity from Shijiazhuang Energy), with an annual output of

Quasi-coal meets 13.8% of the warehouse’s electricity needs.

The electricity bill is 597,000 yuan. Compared with municipal electricity (Chongqing mainly uses thermal power generation

) can save 377,000 yuan a year

Impact, risk and opportunity management

With heavy drug flow and its hosting unit configuration

Timely track government policies, respond to regulatory requirements, and confirm the 11 new energy transportation vehicles issued by the regulatory authorities in the year/quarter/month as an example, 3

Risk identification

Energy index requirements. Hydrogen energy refueling only takes 12 minutes, making up for pure electricity

Long charging time of electric vehicles, low temperature performance degradation, etc. The average purchase cost of a single electric vehicle is a shortcoming of hydrogen electric power logistics. The vehicle only emits pure water (H(cid:0)O), which is about 290,000 yuan. A single hydrogen energy vehicle purchases a ledger to record the company's energy usage every year, and check whether the company's energy usage data in recent years are

Risk assessment exceeds regulatory requirements. Make a preliminary estimate of the company's energy usage for the current year or the next year, evaluate the estimated energy use. 2 Vehicle scale-up should not produce carbon dioxide (CO(cid:0)), nitrogen and oxygen. The purchase cost is about 278,000 yuan (18,000 yuan higher than traditional fuel vehicles such as traditional fuel chemicals (NO(cid:0)), particulate matter, etc.). Maintenance and warranty usage is within the scope of regulatory requirements, and an energy-saving plan is formulated and countermeasures are taken.

Pollutants from oil trucks; the maintenance costs of the remaining eight electric vehicles are 69.2% lower than those of fuel vehicles.

The vehicle's energy consumption per 100 kilometers per trip is less than that of traditional diesel

Through the transformation of energy-saving equipment, promotion of energy-saving awareness, and use of clean energy, the company's energy cost has been reduced by 68.8%, and no CO, NOx,

risk response

consumption, saving energy consumption. PM2.5 and other pollutants.

Chongqing forms 6 drone delivery lines

Indicators and targets Route, a single UAV with a load of 9kg flies

Traveling 10 kilometers only consumes 0.8 kilowatt-hours of electricity, and 100 kilometers

The energy consumption cost of entrusting a third-party carrier to enter the city with drones is only 8% of that of traditional fuel vehicles.

Indicator Goal Achievement 3 UAM (UAM) Its low-pollution operation mode reduces the number of transportation lines compared with traditional transportation, and the annual lump sum fee for 6 routes is

It cost about 160,000 yuan, including the establishment of airspace approval and other systems. The discharge exceeded 80%, and the delivery timeliness increased by more than 50%.

Energy consumption intensity is declining year by year and progress is being made across all costs.

to solve complex terrain distribution problems and slow down

Reduce traffic congestion and carbon leakage, promote medical supplies

Source equitable development

53 54

Tackling climate change

financial impact analysis

water resources utilization

Risk/Opportunity Risk/Opportunity Specific Time Business Model and Strategy and Current Period Expected Encounter Type Encounter Name Description Scope Value Chain Impact Decision-making Impact Financial Impact Financial Impact Heavy Pharmaceutical Holdings strictly follows the "Water Law of the People's Republic of China" and other relevant laws and regulations, and continuously promotes all-round management and control of water resources. The company's main source of water is municipal

In terms of water supply, during the reporting period, the company continued to strengthen water-saving management throughout the entire process of water intake and use to achieve recycling of water resources.

Urgent Optimize warehouse layout; build

Sexual drug storage environment fluctuations,

Sudden typhoon, freezing and climate emergency warning aircraft

Material short-term, warehouse temperature and humidity are out of control,

Water-saving measures Heavy rain, floods, mud, strengthen warehouse safety Inventory loss, warehouse acceptance Medium-term, affect drug quality; severe No impact

Regularly clean the grease trap in the canteen, and install water pipes that comply with national standards to ensure that they are sealed and water-proof, and water is used to ensure that people leave the water to prevent "long running water" and "running, risking, wind and rock flows" and other climate disasters. Inspect and monitor operating conditions, damage, and increase in operating costs.

In severe long-term situations, it may

Control risks and their derivative disasters; target high-risk assets

"Drip, leak" phenomenon. In addition, the company's affiliated units regularly inspect various equipment and facilities, and promptly repair equipment and facilities with abnormal water efficiency, effectively preventing water waste 1 from directly causing damage to medicines

Purchase insurance products

fee phenomenon.

Transport vehicle configuration in real time

Green office weather monitoring equipment; construction

Urgently establish a climate adaptation mechanism,

sex

Severe weather (such as severe weather, such as typhoon season). Inventory loss and vehicle damage. Pharmaceutical Holdings adheres to the concept of green office and implements environmental protection measures in daily operations. By promoting paperless office, it tries to make full use of the network to transmit files, which requires paper cultural relics. The transportation link is interrupted.

Precipitation events, heavy rains, short-term adjustment of inventory layout, loss or increase in distribution costs, promotion of double-sided printing of items, and measures such as encouraging employees to travel by public transportation, start from scratch to create a low-carbon, environmentally friendly, and efficient office environment, and hinder logistics and distribution for the management of the earth. There has been no impact

Wind and snow events) in many places in the medium term, with backup transportation service providers, software and hardware construction costs increase, contributing to sustainable development. Frequent gas hazards may reduce distribution efficiency. Sign an emergency cooperation agreement, increase the weather, and set up extreme weather warnings.

Relevant to intelligent dispatching of supply chain

off platform

thing

reason

Establish climate emergency warning

In case of emergency, increase vaccines and blood systems

Mechanism to strengthen warehouse security

Temperature control of specific drugs such as insurance products

Physical inspection and operation status

The occurrence of extremely severe winter, short-term, cost, may affect pharmaceutical inventory losses, operational rationality monitoring, ensuring storage environment has no impact

Responding to climate change, wind and cold weather, medium-term product quality and even direct cost increase

environmental stability; against cold wave

risk leading to drug failure or damage

Adjust inventory cloth in advance for 3 seasons

destroy

bureau

COMBAT CLIMATE CHANGE

Through intelligent transformation

Slow (such as the Internet of Things temperature control system

Governance Extremely hot weather often

In the short term, establish a unified pharmaceutical storage environment) to improve warehousing efficiency; inventory losses, operations become physical, and the frequency of heat waves

Chongqing Pharmaceutical Holdings actively responds to the economic opportunities and challenges that climate change may bring to the company, integrates climate change response into the company's management and operating practices, and reduces the cost increase, software and hardware construction.

increase, duration

As an important part of its own environmental management, it is necessary to seek its own economic model to deal with climate change risks. The company integrates climate change-related functions into risk management Extended

Use the form (such as changing to

The company has established a top-down management structure, clarified the responsibilities of the board of directors and management, and formed a top-down management system. The board of directors oversees the management and progress of climate change issues, the board’s strategy and sustainability

New energy equipment)

As the sustainable development work management organization, the Sustainable Development Committee leads the Safety Committee to be responsible for the research of relevant strategies and action plans, the construction and supervision of relevant rules and regulations.

The company's relevant functional departments and branch companies have taken effective measures to implement the company's carbon reduction work.

politics

Promote photovoltaic power supply transformation, early stage software and hardware construction has become a strategy

And reduce the cost increase of storage photovoltaic and intelligent operating costs, and the carbon emission rights law limits the carbon storage link. In the medium term, the integration of energy storage systems in warehouse construction and operations will reduce (increased purchase costs of photovoltaic power generation, post-strategic gas law emissions, long-term compliance pressure, low dependence on traditional energy to save about 37.7 period of operating energy consumption and wind

Climate risk response Climate policies bring about 10,000 yuan) The use of new energy brings about 1 carbon cost pressure. The key to reducing operating costs

Risk Identification Transfer

politics

Type

In transportation network planning,

The company has focused on a variety of climate-related risks based on the characteristics of the pharmaceutical distribution industry. In terms of climate-related physical risks, acute physical risks include sudden typhoons, ice, wind and excessive carbon emissions from transportation vehicles and increased operating costs.

Combining climate trend data with increasing operating costs, carbon insurance laws and logistics links to limit carbon emissions in the medium term, policy restrictions faced by the standard (purchase of drones)

Heavy rains, floods, mudslides and other climatic disasters and their derivative disasters, as well as frequent severe weather that interrupts transportation links, and extreme cold weather in winter increase the temperature control of specific drugs. Adjust distribution routes to optimize emission rights purchase costs.

Emissions Long-term (such as regional traffic restrictions) and distribution routes 160,000

costs, etc. Chronic physical risks include the normalization of extreme high temperature weather, increased requirements for pharmaceutical storage environment construction, and increased energy consumption of storage temperature control facilities. These risks include choosing new energy vehicles first, increasing the risk of increasing carbon costs (yuan)

Risks will cause fluctuations in the drug storage environment, interruptions in transportation links and other risk points, which will then affect drug quality, damage drugs, and reduce distribution efficiency. Covers short distance delivery

55 56 Risk/Opportunity Risk/Opportunity Specific time, business model and strategy and current period expectations

Incident type Incident name Description Scope Value chain impact Decision-making impact Financial impact Financial impact

politics

policy

and

law

wind

risk

new energy

gas source

to wait

use

phase

machine

encounter

city

field

57 58

Tackling climate change

How risks/opportunities fit into the whole

Identification method Assessment method Prioritization method How to monitor encounter types Risk management process

climate related risks

Object 1. Quantitative assessment;

Collect relevant data; 1. Meteorological warning docking 2. Adopt risk matrix according to “urgency + impact process”
Analyze the target market 2. Quarterly special meetings to discuss short-term, operating cost increases, risks (possibility × impact degree) sorting

Promote green management and enable regional climate early warning frequency 3. Asset health testing. The rise in energy prices in the medium term and the increase in operating costs have no impact on software and hardware construction costs (risk degree) qualitative assessment.

Use low energy consumption facilities and equipment

long term increase

Track policy developments,

Analyze cost impact; 1. Calculate carbon tax policy

In response to policy calls, purchase

Investigate the annual flow of upstream supply and market share

Buy products that meet relevant requirements and switch to the same physical risk ranking logic.

In warehousing and logistics facilities, environmental protection standards have been upgraded; 1. Meteorological warning docking countries promote the use of new and new energy vehicles (such as hydrogen), fixed asset investment models, priority processing policies

Energy, with subsidies, equipment construction and configuration (electric hybrid vehicles) increase, operating costs, early investment in equipment updates; 2. Adopt scenario analysis Strong driving force, impact scope 2. Quarterly special meetings to discuss incentives or preferential policies short-term, comprehensive, and in daily operation Original transportation vehicles, replenishment, increase, obtain relevant insurance 3. Refer to industry reports to assess a wide range of transformation risks under different scenarios. 3. Asset health detection. Energy consumption in the mid-term operation process is discounted, and later operating costs and peer cases are identified to identify cost gaps and competition.

To encourage equipment replacement and reuse related preferential policies

Formally, changes will occur to reduce competitive disadvantages in differentiated market competition.

Encourage new energy consumption policies, actively strive for subsidies,

Change Transformation pressure.

Minimize carbon emissions

buy

climate-related opportunities

Statistical potential new additions

Increase demand for related drugs Green 1. Calculate green logistics

Extreme weather brought about by climate change can easily induce a number of new customers in the green logistics business.

Demand for products and services Some diseases have no impact on sales revenue. 2. Analyze the proportion of peers’ green service orders, new additions, and incorporate them into corporate strategies; long-term capabilities, innovate related services and corresponding revenue growth;

Increasing demand for medicines Logistics business development situation Press “urgency + revenue customer satisfaction; 2. Promote green services through cases 2. Qualitative assessment of “green

Sort by status and size. 2. Track customers’ benefits from “green opportunities”. Need corporate” image to customers

Survey customers’ feedback on the image of “green companies” to improve loyalty.

Evaluate the value-added effect of the brand in relation to the image of the company.

use.

Long attention span.

Collect government support for logistics

Impact, risk and opportunity management Track policy application progress Carbon emission reduction subsidies for enterprises 1. Calculate new energy vehicles Press “Policy Window Period +

and approval status, statistical actual policies; vehicle subsidy amount; subsidy amount" sorting,

The amount of subsidies actually received; based on the core attributes of the pharmaceutical distribution industry of "strong cold chain dependence, high drug safety standards, and wide supply chain coverage", Chongqing Pharmaceutical Holdings has built a climate that adapts to industry characteristics.

Monitor the risk and opportunity management system after the implementation of energy-saving measures, and deeply integrate it into the enterprise's comprehensive risk management framework to form a full-week policy dividend of "risk identification - multi-dimensional assessment - dynamic sorting - continuous monitoring - closed-loop feedback" to optimize the success rate of cost benefits. Projects with heavy subsidies.

cost savings. period management mechanism. In the risk dimension, we focus on key scenarios of pharmaceutical circulation and establish "physical risks (extreme weather impacts cold chain/warehousing) - transformation risks (policy compliance/low-carbon space).

"Technology/supply chain adaptation)" dual defense system, focusing on preventing and controlling the impact of extreme weather on drug cold chain safety and policy changes on operational compliance; in the opportunity dimension, around

Focusing on the industry's green transformation trend, we will create "green cold chain upgrade-policy dividend capture-supply chain collaboration"

Analyze energy-saving technologies 1. Calculate energy-saving technologies 1. Regularly compare and analyze costs

-Cost Optimization" multi-opportunity transformation platform to tap the low-carbon value of pharmaceutical circulation. Apply cost and long-term investment payback period; press "investment payback period + savings;

Ben

This system sets up exclusive identification channels for the pharmaceutical industry (such as pharmaceutical cold chain technology monitoring benefits; 2. Evaluate the long-term cost savings of technology application) 2. Monitoring equipment operates stably and optimally

Calculate with relevant departments to rank the stability of warehousing, and evaluate the impact of warehousing technology on warehousing.

Existing energy costs. Positive impact. Environmental improvement effect. Cold chain transformation cost accounting), combining dynamic sorting algorithms and real-time monitoring systems (such as "meteorological

-Cold chain temperature" linked monitoring) to ensure that management strategies accurately respond to climate change, pharmaceutical industry

industrial policies and market green demands. At the same time, this mechanism has been deeply coupled with the company's strategic planning, cold chain transportation supply 1. Calculation and environmental protection supply 1. Tracking and green supply chain 1. Survey of upstream and downstream enterprises, long-term partner cooperation frequency, operational management, pharmaceutical supply chain collaboration, capital allocation and other core value chains to promote application.

Green supply chain construction situation Cost stability; According to "collaborative stability + delivery timeliness, cost wave and climate factors become the key to ensuring the safety of drug circulation, improving operational efficiency, and realizing a "green pharmaceutical chain"

Qualitatively evaluate the supply efficiency improvement and dispatch situation;

The key driving variables of the "circulation" strategy.

Evaluate and jointly formulate carbon chain collaboration procedures for corporate resistance. 2. Regularly evaluate the feasibility of supply chain emission reduction targets. The enhancement of risk capabilities also plays an important role in enterprises' response to climate risks. The improvement effect of risk ability.

Tackling climate change

Metrics and Goals

2025 2024 indicators Calculation formula 2025 activity data Emission factors

(tons of carbon dioxide equivalent) (tons of carbon dioxide equivalent) quantitative indicators related to greenhouse gas emissions

New energy vehicle activity data × emission factor 49,366.38 0.5366 kgCO2/kWh 39.75 26.49 The total greenhouse gas emissions in 2025 (covering Scope 1, Scope 2 and Scope 3) is 36,516.07 tons of carbon dioxide equivalent, and the greenhouse gas emissions in 2024

The total amount (covering Scope 1, Scope 2 and Scope 3) is 36,808.61 tons of carbon dioxide equivalent. light truck

Activity data × Emission factor 355,050.85L 2.36 kgCO2/L 347.68 837.92 (gasoline)

Indicator Unit 2025 (numeric value) 2024 (numeric value)

light truck

Activity data × Emission factor 202,865.34L 2.614 kgCO2/L 736.15 530.29

(Diesel)

Total absolute greenhouse gas emissions

tons of carbon dioxide equivalent 36,516.07 36,808.61

(Scope 1, Scope 2, Scope 3)

Medium truck

Activity data × Emission factor 34,345.83L 2.429 kgCO2/L 93.95 89.78

(Diesel)

Scope 1 greenhouse gas emissions tons of CO2 equivalent / /

Category 14:

Electricity consumption 2 tons of carbon dioxide equivalent 28,074.80 27,370.74 Concession Electricity consumption × emission factor 320,037 kwh 0.5366 kgCO2/kWh 171.73 204.43 (Heping Pharmacy franchise store)

Energy consumption intensity tons of carbon dioxide equivalent 8,441.27 9,437.87 Chongqing Yaoyou Pharmaceutical Co., Ltd.

Responsible Company Greenhouse Gases

Category 15: Investment 17,959 tCO2e / 6,944.75 7,662.85 Total emissions × Heavy chemical control

shareholding ratio

Scope 1 Greenhouse Gas Emissions

Including direct emissions from the combustion of fossil energy and fugitive gas emissions from the production process. Since the company is a pharmaceutical distribution enterprise and does not involve production links, Scope 3 Total 8,441.27 9,437.87 Therefore, there are currently no Scope 1 greenhouse gas emissions.

Scope 2 greenhouse gas emissions

In its greenhouse gas emission quantification work, Chongqing Pharmaceutical Holdings mainly uses estimated measurement methods for greenhouse gas emission sources within the scope based on current data acquisition conditions and actual business scenarios. Due to the difficulty in obtaining direct monitoring data for some emission sources, the company established a scientific composite emission factor based on industry common accounting standards and actual business parameters.

Indicator Calculation Formula Calculation Formula

(kgCO2/kWh) (tons of carbon dioxide equivalent) reasonable estimation model to calculate relevant emission data. Although the estimation process has tried its best to refer to authoritative data and actual operating conditions to reduce errors, it is still not completely

Avoid bias caused by the estimation method itself. In the future, the company will continue to optimize the data collection system, gradually expand the scope of direct measurement, further improve the accuracy and credibility of emission data, and provide a more solid data basis for the formulation of emission reduction measures and effectiveness evaluation.

kWh

Electricity consumption: 39,668,824.52

Purchased electricity in 2024 Electricity consumption × emission factor 0.5366 27,370.74

KWh greenhouse gas emissions related targets

In order to actively respond to the national "double carbon" strategic deployment, the company has formulated scientific climate action goals, adheres to green and low-carbon leadership in operational optimization, and fully promotes high-quality development of sustainable scope 3 greenhouse gas emissions. By continuously improving energy efficiency, we will reduce greenhouse gas emissions from the source. In the environmental governance and emission reduction work, we focus on the downstream transportation, distribution and other business links of Scope 3, and effectively reduce carbon emissions through measures such as optimizing the layout of logistics routes and promoting the application of clean energy vehicles. In terms of business travel, we actively advocate

2025 2024

Indicator Calculation formula 2025 annual activity data Emission factor Guide the concept of green and low-carbon travel, encourage employees to give priority to low-carbon modes such as high-speed rail and public transportation, and fulfill their carbon reduction responsibilities with practical actions. Currently, the company is warehousing photovoltaic (tons of carbon dioxide equivalent) (tons of carbon dioxide equivalent)

Preliminary progress has been made in transformation and the launch of new energy logistics equipment, and we will continue to tap into the energy-saving and carbon-reducing potential of the entire operation to comprehensively assist the pharmaceutical distribution industry in transforming into a green and low-carbon model.

107.26 86.11

business trip

Reduce greenhouse gas emissions

Aviation activity data × emission factor 42177.85 L 2.429 kgCO2/L 102.45 82.88

The company actively responds to the national call for green development, helps achieve the goal of "carbon peaking and carbon neutrality", and adopts a number of measures to reduce greenhouse gas emissions. In terms of energy management, high-speed rail Activity data × Emission factor 8963.85 kWh 0.5366 kgCO2/kWh 4.81 3.23 The company promotes the optimization of energy structure, uses photovoltaic power generation to meet part of the electricity demand for daily operations, and gradually increases the proportion of renewable energy in the energy consumption structure. At the same time,

The company focuses on the construction of green supply chains, puts into use new energy vehicles, optimizes logistics and distribution plans, and reduces energy consumption and greenhouse gas emissions during transportation. In addition, Category 9: In daily work, employees are encouraged to practice the concept of green office, promote paperless office, reduce paper waste, set air-conditioning temperatures reasonably, and encourage employees to take public transportation

1,217.53 1,484.48

Downstream transportation and distribution tools travel to and from get off work, taking practical actions to reduce carbon emissions.

59 60

DEVELOPMENT REPORT

Empower with Digital Intelligence

Optimize Service Quality for Excellence

Digital Intelligence Empowerment

Create excellent service quality

Contents of this chapter

Innovation driven

The company adheres to the concept of innovative development and continuously develops new products suitable for the company's strategic development in accordance with international standards to meet the public's drug needs. The company strictly controls drugs

Quality, insisting on the quality and safety of drugs with the company as the owner, and ensuring the health of residents. The company has always been customer-centered and customer demand-oriented, improving customer service, product safety and quality service systems, strengthening customer information protection, and effectively protecting customer rights and interests. At the same time, the company continues to optimize and improve the supplier management system to promote the sustainable development of the supply chain.

customer service

Responsive SDGs

supply chain management

Data security management improves medical accessibility

61 62

Innovation driven

R&D investment

(Financial caliber in 2025 is 18,876,950.66 yuan)

Indicator Unit 2023 2024 2025

Innovation-driven R&D investment Ten thousand yuan 6,774.75 6,935.09 1,898.17 INNOVATION-DRIVEN

Scientific and technological innovation practice

R&D Innovation Management

DEVELOPMENT REPORT

Encourage R&D and innovation

R&D system

The Pharmaceutical Research Institute is responsible for researching and formulating positive incentives and error tolerance and correction mechanisms for R&D innovation, and creating an innovative atmosphere that respects talents, respects innovation, encourages exploration, and tolerates failure. The Pharmaceutical Research Institute is the core carrier of the development of the company's pharmaceutical R&D sector. It is responsible for coordinating and leading the company's R&D innovation strategy and layout, construction of technological innovation platforms, and technology development.

To stimulate the creative vitality of scientific researchers, ensure that scientific researchers are fully supported and recognized in the process of pursuing scientific breakthroughs, provide technical exchanges and cooperation for research projects that may encounter setbacks, and fully promote specific affairs of the drug life cycle such as new product approval, research and development, and production. The Pharmaceutical Research Institute consists of BD Department, R&D Department, Production Department

Provide the necessary protection network, encourage teams to learn from failures, and jointly promote technological innovation and achievement output in the field of drug research and development.

Technical Department and General Management Department.

Innovation platform construction

science and technology committee

Chongqing Pharmaceutical Group Pharmaceutical Research Institute By implementing the national drug marketing authorization holder (MAH) system, the company gathers the advantageous resources of "famous enterprises", "famous schools" and "famous institutes", unites technology innovation platforms, and produces external specially-appointed experts.

The production and manufacturing platform has built a "trinity" biopharmaceutical industry chain collaborative innovation system with heavy drug characteristics. It now has the ability to manage the project operation process from medical information to project screening and approval, to post-market research and re-registration. It is the construction unit of Chongqing's high-end biologics industry innovation complex, entrusted R&D and entrusted production machine BD Department R&D Department Comprehensive Management Department Production Technology Department

The facilities are equipped with domestic first-class R&D instruments and production lines that meet GMP conditions.

cooperative research and development mechanism

The company has a total of 11 R&D personnel, covering pharmacy, traditional Chinese medicine, clinical medicine, biomedical engineering and other majors, with master's degree or above, associate senior degree or above

More than 50% of the staff have professional titles. Through the innovative application of the MAH system, the company has built a joint technology innovation platform with the Drug Research Institute as the core body and more than 100 employees.

The company focuses on new product investment and operation. In accordance with the requirements of MAH regulations, the company entrusts CXO to carry out research and development, technology transfer, clinical registration, and commercial production. It forms a collaborative research team composed of R&D personnel to form an innovative development pattern of two-way empowerment and efficient linkage. The company complies with relevant national laws and regulations and the national drug supervision and administration

Each trustee shall conduct effective supervision to achieve strong alliance and complementary advantages. During the reporting period, the Mirabegron sustained-release tablets invested and developed by the company obtained the local pharmaceutical regulations issued by the State Food and Drug Administration, and formulated the "R&D Project Management Measures" to make appropriate arrangements for the organizational structure, project approval, process implementation, change termination, and result acceptance of the R&D project.

"Drug Registration Certificate", Prasugrel Hydrochloride Tablets obtained the "Drug Clinical Trial Approval Notice", and MAH products formed a research and development echelon.

Adjust accordingly, strengthen R&D project management, promote scientific and standardized R&D decision-making, and further improve the R&D project management system.

The company's pharmaceutical research and development sector has basically completed the goals of the "14th Five-Year Plan". In the next five years (2026-2030), it will closely focus on creating "pharmaceutical and health products with heavy drug characteristics".

The strategic positioning of "Industrial Innovation and Transformation Base", assumes the mission of industrial development, solidly promotes the "Special Agent" strategy, aims to better meet my country's clinical and market needs, and actively achieves "R&D Project Display"

There are three major innovation goals: releasing momentum through R&D innovation, optimizing and upgrading industrial structure, and achieving results in platform construction.

The company has established more than ten new products with clinical and market needs focusing on the cardiovascular system, respiratory system, nervous system, digestive metabolism and immune system, involving first-of-its-kind drugs and high-end chemical preparations, classic traditional Chinese medicine compound preparations, etc. It has been approved for a total of 7 provincial and ministerial-level special fund support for scientific and technological innovation. Olmesartan medoxomil tablets, pregabalin capsules, tofacitinib citrate tablets, and mirabegron sustained-release tablets have obtained production approvals.

R&D innovation releases momentum

By 2030, we will strive to launch 15-18 new pharmaceutical products on the market.

Optimization and Upgrading of Industrial Structure Product Name: Olmesartan Medoxomil Tablets Marketing Authorization Holder:

Indications: Suitable for the treatment of hypertension. By 2030, Chongqing Pharmaceutical (Group) Co., Ltd. will basically form a development pattern of "laying the foundation with chemical drugs, establishing brands with traditional Chinese medicine, and creating differentiation with comprehensive health products". Medical insurance status: Medical insurance Category B Production company:

Specification: 20mg*14s The platform construction of Chongqing Kerui Pharmaceutical (Group) Co., Ltd. has achieved results. Validity period: 24 months

By 2030, we will complete the establishment of a "four-in-one" development pattern, actively create a provincial and ministerial level scientific and technological innovation platform, and strive to undertake major scientific research at the national, provincial and ministerial levels.

Items 3-5.

63 64

Product safety and quality

Case:

The company has invested in the original formulation technology of prasugrel hydrochloride from Daiichi Sankyo Co., Ltd. and has the exclusive authorization of patents in China. Other approved varieties are generic drugs with expired patents, and there is no risk of infringement of other people's intellectual property rights.

Product Name: Pregabalin Capsules Marketing Authorization Holder:

Indications: Postherpetic neuralgia, Chongqing Pharmaceutical (Group) Co., Ltd.

Fibromyalgia Manufacturer:

Medical insurance situation: Medical insurance Category B Chongqing Kerui Pharmaceutical (Group) Co., Ltd.

Specifications: 75mg*20s

Validity period: 36 months

Product safety and quality

Product Name: Tofacitinib Citrate Tablets Marketing Authorization Holder: PRODUCT SAFETY AND QUALITY

Indications: Rheumatoid Arthritis, Chongqing Pharmaceutical (Group) Co., Ltd.

Ankylosing spondylitis, manufacturer:

Psoriatic arthritis Chongqing Kerui Pharmaceutical (Group) Co., Ltd.

governance

Medical insurance status: Medical insurance Category B

Specifications: 5mg*30s

The company adheres to the principle of "focusing on quality, so that people can take safe medicines; stressing integrity, and continuing to provide customers with satisfactory services; complying with laws and regulations, being a responsible, human-oriented, harmonious and grateful pharmaceutical enterprise". Validity period: 36 months

Quality management policy, strictly abide by the "Drug Administration Law of the People's Republic of China" (hereinafter referred to as the "Drug Administration Law"), "Good Manufacturing Practice for Drugs", "Good Manufacturing Practice for Medical Devices", "Good Manufacturing Practice for Drugs", "Measures for Quality Supervision and Administration of Drug Distribution and Use" and other laws and regulations, and formulate the "Quality Policy and Target Management System", "Drug Procurement Management System", "Drug Sales Management System", "Quality Risk Management System", "Drug Traceability Management System", "Product Release Procedure" Product Name: Mirabegron Extended Release Tablets Marketing authorization holder:

Systems such as the "Pharmacovigilance Management Regulations" integrate quality control throughout the entire process of drug production and product operation to ensure the safety of people's medication. The company has special quality control indications: adult overactive bladder Chongqing Pharmaceutical (Group) Co., Ltd.

Organizational structure: both pharmaceutical production and pharmaceutical operations have independent quality management leaders and quality management departments.

Patients with frequent urination, urgent urination, etc. Manufacturer:

Symptomatic treatment of urge urinary incontinence Chongqing Kerui Pharmaceutical (Group) Co., Ltd.

Medical insurance status: Medical insurance Category B

Pharmaceutical production

Specifications: 20mg*14s

Validity period: 24 months

Effectively relieve overactive bladder, reduce the frequency of urination, and stay away from frequent urination, urgency and incontinence. Ensure that raw materials, packaging materials, intermediate products, products to be packaged and finished products comply with registered and approved requirements and quality standards; approve quality standards, sampling methods, inspection methods and other quality management operating procedures; review and approve the responsibilities of the person in charge of quality management

Documents such as production process procedures and operating procedures for products (including clinical trial drugs and marketed drugs) to ensure the completion of production process verification; monitor factors affecting product quality, etc.

Comply with technology ethics

Responsible for the management of system documents and records; responsible for signing quality agreements with entrusted production enterprises and third-party inspection agencies; Responsibilities of the Quality Management Department

Responsible for material supplier management; responsible for product complaints, returns, recalls, etc.; responsible for self-inspection, management review, etc. The company has a science and technology committee to perform functions related to science and technology ethics. The company's research and development work does not directly involve science and technology ethics-related content.

When investing in pharmaceutical products, the company requires partners to strictly abide by the relevant regulations on scientific and technological ethics, follow the requirements of the clinical center, and pass the review of the hospital ethics committee before they can start development.

Carry out corresponding clinical trials.

Pharmaceutical business

Intellectual property protection

Fully responsible for the quality management of pharmaceutical operations, independently exercising responsibilities, and having the power to adjudicate on the quality management of pharmaceutical operations; organizing and implementing the requirements of laws, regulations and administrative regulations such as the "Drug Administration Law" and "Pharmaceutical Distribution Quality Management Practices". The company strictly abides by the "Patent Law of the People's Republic of China", the Copyright Law of the People's Republic of China and other laws and regulations, attaches great importance to intellectual property management, and respects

Regarding quality resolutions, decisions, etc., comprehensively manage the company's quality work; be responsible for establishing, implementing and maintaining the company's quality management of others' intellectual property rights, and effectively protect its own intellectual property rights. The company has clarified that the Legal and Compliance Department is the department responsible for trademark management. In April 2025, the quality manager's responsibilities will be stipulated in accordance with the general technology group system.

Responsible for the effective operation of the system, responsible for the approval of quality management system audit plans and reports; organizing the formulation of the company's quality policy, formulating the "Trademark Management Measures", and continuously improving the intellectual property management system. Promptly carry out patent applications and publications for new technologies and new processes formed by ongoing research projects

Quality objectives, prepare quality work plans and plans, and organize supervision, implementation, inspection and assessment. Responsible for the company’s intellectual property layout work such as registration of pharmaceutical business rights. During the reporting period, the company had no intellectual property infringement or infringement incidents, and its intellectual property management was standardized and orderly.

Improvement of quality management system and continuous improvement work, etc.

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Product safety and quality

Supervise personnel in various departments and positions to implement the "Drug Administration Law", "Pharmaceutical Goods Management Practice" and other relevant laws

laws and regulations, to act in accordance with the law and operate in compliance with the law; responsible for organizing the formulation of quality management system documents, and guiding and supervising the documents

implementation; responsible for the establishment of quality files; responsible for the investigation, handling and reporting of drug complaints and quality incidents; responsible for directing

Quality Management Department Responsibilities

Guide the setting of computer system quality management control functions, and be responsible for the review of computer system permissions and basic quality management data.

Establishment and update; Responsible for adverse reaction reporting; Responsible for the confirmation of unqualified drugs, and the processing process of unqualified drugs

Implement supervision; be responsible for the management of drug recalls; organize the review and risk assessment of the quality management system, etc.

Drug life cycle management

New products of Chongyao Chongyao Hubei Shengshibang

clinical research

Laboratory research Preclinical research Clinical application Phase I clinical Phase II clinical Phase III clinical Marketing authorization application Marketing strategy

technology transfer commercial production

Quality and safety are the lifeline of an enterprise, especially the quality of pharmaceutical products is directly related to people's lives and health. Chongqing Pharmaceutical Holdings faces many challenges and opportunities. On the one hand, with the activities of CMC (Chemistry, Manufacturing, and Controls)

As the supervision of the pharmaceutical industry becomes stricter, companies need to continue to improve their quality management capabilities in the production and operation of pharmaceutical devices; on the other hand, consumer demand for high-quality pharmaceutical products continues to grow, providing companies with broad market space in terms of quality improvement and innovative product development. In order to cope with risks and seize opportunities, the company has established a sound quality management system to ensure that product quality is safe and reliable during the development period, introduction period, growth period, endurance period, decline period and delisting; it continuously develops high-quality products that meet market demand and enhances brand competitiveness. In addition, the company strengthens communication and reporting with regulatory authorities, learns and grasps policy trends in a timely manner, ensures legal and compliant operations, effectively manages and controls risks, achieves sustainable development, moves forward steadily, and contributes to the high-quality development of the pharmaceutical industry. Marketing Post-marketing studies (clinical studies, CMC, etc.)

Drug life cycle management

Risk/opportunity type Risk/opportunity description Financial impact statement Impact cycle Countermeasures

The company has strengthened the quality management system and established the company to continuously improve the quality management system. As of the end of the reporting period, the company's subsidiaries include Chongyao Shaanxi Fahrenheit, Chongkong Shaanxi, Chongkong Hunan, Chongyao New Products, Chongyao Hubei Sheng

Pharmaceutical products are directly related to patient health and

With a complete and strict quality management system, Shibang and other companies have passed ISO 9001:2015 quality management system certification.

Life safety. Once a quality incident occurs,

Quality operating income decreases, covering drug procurement, storage, transportation,

The company will face legal proceedings and huge compensation in the short to medium term

Risks Reputation damage Whole sales process. Strengthen the holding of products for compensation, product recalls, etc., seriously damaging the public

Production process quality control to ensure product quality

Company reputation and brand image.

The air volume meets the standard.

risk

The pharmaceutical industry is subject to strict supervision, laws and regulations. The company strengthens the tracking and compliance of laws and regulations.

Policies become stricter. If the company fails to grasp management in a timely manner, pay close attention to regulatory and policy developments, policies and adapt to new regulatory requirements, there may be timely interpretation and communication to relevant departments.

Cost increase short, medium and long term

Risks: Regularly conduct internal compliance training and inspections in product registration, production and operation, etc., and face penalties and increase compliance costs. Ensuring that the company's operations are fully in compliance with regulations will affect normal business development and financial status. requirements and reduce compliance risks.

With public health awareness and drug quality

The company will continue to strengthen quality management and increase attention to quality improvement. If the company can always

Full-process monitoring to improve quality standards;

Ensure product safety and quality and provide high

machine

Increase market revenue, shape and spread the brand image, and clearly determine the quality products of Shaanxi Fahrenheit, Shaanxi and Hunan, which will win the trust of customers and the mid- to long-term

Opportunities: Expand market position, promote through multiple channels; deepen reputation in market segments, enhance brand competitiveness, expand

, open up new markets; improve customer feedback market share, promote sales and profits

mechanism to cultivate customer loyalty, etc.

increase.

67 68

Product safety and quality

Indicators and Goals

indicator

Impact, risk and opportunity management

During the reporting period, the company's entrusted production of drugs had a factory pass rate of 100%, there were no major drug quality liability incidents, and the product recall rate was 0%. Drug quality risk management

In order to strengthen the safety management of pharmaceutical operations and promptly resolve various quality risk events in the company's operations, the company has formulated a "Quality Risk Management System" to ensure that the company's economic

target

ensure the sustainable, stable and safe operation of the company's operations, ensure the normal development of the company's various businesses, and improve the risk management and control capabilities of pharmaceutical operations. In terms of pharmaceutical production management, the company has formulated

The "Quality Risk Management Procedures" standardize drug production risk management procedures and integrate risk assessment, control, communication, review, review and other quality management activities throughout drug production.

Product quality is stable and controllable:

the whole life cycle. During the reporting period, the company's pharmaceutical and device production and operation units at all levels conducted at least one quality management risk assessment. 2025-2027

By 2027, the company's MAH management system will continue to operate in a standardized manner, and the system will cover product quality planning goals throughout the product life cycle.

Periodic management ensures that all drugs in production are safe, effective and of controllable quality to protect people’s medication safety.

Pharmaceutical Development Technology Transfer Commercial Production Product Retirement

Drug Recall

Drug Life Cycle Management The company formulated the "Recall Management Procedures" to clarify the recall responsibilities of relevant departments of drug production and operation, stipulate drug recall levels, standardize drug recall procedures, ensure the timeliness of recall work, strengthen the safety of the company's drugs, and ensure the safety of public medication. The company proactively collects information related to drug quality and safety, and assesses potential quality technology transfer risks. Media simulation filling risk assessment

Investigate and evaluate problems or safety hazards, and recall problematic drugs in a timely manner. The company fulfills its recall obligations and requires entrusted manufacturing companies and pharmaceutical operating companies to actively assist in CQA&CPP assessment, multi-product collinear risk assessment, and cleaning verification risk assessment.

Laboratory system risk assessment Process validation risk assessment Investigation and evaluation of drugs that may have quality problems or other safety hazards. At the same time, if the above-mentioned entities discover that there may be problems with the drugs held by the company, they should promptly notify the company, suspend relevant activities if necessary, and report true information to the local drug regulatory authorities. Highly allergenic product factory facilities

Layout risk assessment Transportation confirmation risk assessment

GMP design review

Cultivate a quality culture

System impact assessment Risk assessment of quality system operation

Component criticality assessment deviation

Changes The company has a strong quality culture, actively carries out quality training, and conducts self-inspections on relevant laws and regulations, pharmaceutical professional knowledge and skills, quality management systems, responsibilities and positions every year.

Conduct training on operating procedures, etc., and organize product life cycle training, including pharmacovigilance training, special drug regulations and professional knowledge training, and pharmaceutical professional knowledge training and complaints

Recall etc. The training focuses on the pain points and difficulties in daily quality management, answers questions, improves the professional capabilities of quality management personnel, and comprehensively enhances the company's quality management capabilities. Computerized system risk assessment Revalidation and revalidation risk assessment Product delisting risk assessment

... ...

Quality risk management reference chart for each stage of product life cycle

Drug emergency management

The company formulated the "Quality Accident Emergency Plan" to standardize the emergency management of pharmaceutical device production, operation and medical service quality incidents, and improve the prevention and handling of quality incidents at all levels.

Therefore ability. The plan classifies quality accidents into levels I, II, III, and IV according to standards, and establishes a quality accident emergency management leading group to guide the quality accident emergency management office.

Implement appropriate emergency response and disposal plans. After a pharmaceutical device production (sales) quality accident occurs, emergency response work shall be carried out immediately, including the formulation of recall plans, emergency response,

Post-processing and emergency end. After a series of emergency work, in order to control the development of quality incidents, investigate the root cause of the accident, and formulate and implement policies to deal with the accident.

After corrective and preventive measures, the hazards of quality accidents or related risk factors have been eliminated, the emergency working group organizes relevant personnel to conduct investigations, analysis and demonstrations, and confirm that there is no danger. Case: "Quality Accident Emergency Plan" training and drills Case: 2025 version of "Chinese Pharmacopoeia" training Case: 2025 Pharmacovigilance Training After hazards and risks are eliminated, a recommendation to terminate the emergency response is made, which will be implemented after approval by the leading group. When a medical service quality incident occurs, the unit where the incident occurred must first report it according to regulations.

At the same time, emergency remedial measures are taken to deal with the situation first to avoid or reduce further damage to the patient's health and save the patient's life as much as possible. At the same time, carry out emergency work and do a good job in treating patients

reception and comfort of patients, sealing of medical records, legal analysis and argumentation, etc., while doing a good job in public opinion monitoring and security work, and receiving emergency support from experts, superior units and the government when necessary.

After compensation for medical service quality accidents, the emergency working group organizes relevant personnel to make a summary report on the accident and proposes to terminate the emergency response.

The response suggestions will be implemented after approval by the leadership group. The emergency was ended after the leadership team unified.

Digital applications

The company uses digital and intelligent tools for quality control, reducing manual control pressure, improving work efficiency, and effectively preventing quality risks. The company develops a master data system,

Enter the basic attribute information of the drug/commodity, such as product name, specifications, manufacturer, product validity period, storage conditions, registration approval information, business scope and other information and

Carry out maintenance, and use GXP and Yingke systems to track and lock varieties and merchants that do not meet the requirements of laws and regulations in procurement, storage and maintenance, sales and other links to prevent the occurrence of quality risks related to drug online transactions.

69 70

Customer Service

By establishing an effective customer communication and feedback mechanism, the company's pharmacies ensure timely responses to customer questions during the service process, collect customer opinions and suggestions, continue to strengthen service quality, and improve customer satisfaction. At the same time, we regularly conduct customer satisfaction surveys to understand product usage and service satisfaction, fully understand customer needs and service feedback, and ensure the effective provision of subsequent products and services, thereby continuously improving customer satisfaction and brand loyalty.

Number of customers participating in the survey during the reporting period Customer satisfaction

The company's pharmacies conduct customer satisfaction surveys 10,000 98

People %

Case: Drug Recall Quality Training Case: Drug Professional Knowledge Training

Information Security and Privacy Protection

management measures

Customer Service The company has formulated "Data Security Management Measures". Data classification categories include but are not limited to production and operation data, management data, operation and maintenance data, business data, personal information, etc. At the same time, security classification will be carried out based on the scope and degree of potential impact that the group may have if the data is tampered with, destroyed, leaked or illegally used. During system design, encryption measures are adopted for core privacy content such as user passwords and user personal privacy data. Technical protection level: deploy firewalls, intrusion detection systems, gatekeepers, etc.

CUSTOMER SERVICE

Security equipment, build a multi-level network security protection system, strengthen network boundaries and internal protection, strengthen technical vulnerabilities in a targeted manner, and block risks such as external attacks and internal violations. Permission management and control level: Following the principle of "position adaptation, minimum authority", refined authorization is implemented according to positions and roles, strictly limiting business system data operation permissions, and effectively preventing unauthorized access, data tampering and other violations. Suppliers and business partners carry out system construction and other work according to our requirements. At the same time, the company fully protects the legitimate rights and interests of customers in the contract and provides customers with high-quality services. The company's main customer groups are dealers and medical institutions, and zero involvement is involved in the pharmacy operation process.

There are requirements for information security and privacy protection.

To sell customers, the company has built a differentiated service system for different customer groups. The company's pharmacies adhere to the principle of "patient-centered and service-oriented" to improve patients' quality of life and

"Improve their quality of life" service concept, promptly resolve customer problems and complaints, establish a standardized customer complaint handling process, set service response time standards, and ensure that

Provide answers to customers within a specified time and provide timely feedback on the results of complaint handling.

Backup of critical information systems and hardware equipment

All production data of the day are automatically backed up every day, and the remote computer room is backed up in the local backup + off-site backup mode. A dedicated database administrator regularly checks the backup status. Number of customer complaints during the reporting period. Customer complaint resolution.

The hardware equipment is a dual-machine dual-link architecture, and a single point of failure does not affect the normal operation of the information system; the information system is equipped with an enterprise version of the terminal security protection system and fire protection is turned on.

172 100

wall; the data center computer room adopts dual-channel UPS power supply, anti-static and moisture-proof design, multi-level lightning protection and network dual-link architecture to ensure high availability of information systems and data security %

It is comprehensive and can support the stable operation of the core information system 24/7. An emergency plan for network security incidents has been formulated, which clarifies the emergency organization structure, division of responsibilities, emergency response procedures, disposal measures and aftermath recovery mechanisms to deal with system failures and data loss caused by extreme situations. Data recovery tests on core systems are also conducted monthly.

customer satisfaction

information security review

In order to further improve service quality, the company launched the 2025 customer satisfaction survey. This survey focused on the three major areas of product service, distribution service and after-sales service.

In the core dimension, we compile a "Customer Satisfaction Survey Form" to comprehensively collect customer feedback and accurately gain insight into customer needs. All branches and subsidiaries are responsible for the execution of this investigation.

The company entrusts an external third party to conduct regular IT audits every year, including compliance audits.

As an entity, we strictly follow the prescribed procedures and advance the investigation, recycling, statistics and analysis of the "Customer Satisfaction Survey Form" in an orderly manner. Each branch and subsidiary formulates based on the analysis results

Targeted optimization measures, continuous improvement of service processes, improvement of service quality, providing customers with better, efficient and considerate services, and enhancing the company's competition in the market

efforts to promote the company's sustainable and healthy development.

Customer privacy protection

The company attaches great importance to customer privacy and information protection, strictly abides by laws and regulations such as the Cybersecurity Law of the People's Republic of China, the Data Security Law of the People's Republic of China, the Personal Information Protection Law of the People's Republic of China and other laws and regulations, and continues to improve the information security management and customer privacy protection system. Each of its pharmacies strictly abides by the customer information protection system, standardizes the information management process, strictly prevents the leakage of customer personal information, shopping records and other data, strictly prohibits the disclosure of customer information to third parties and individuals in any form, and comprehensively builds a strong defense line for consumer privacy protection. During the reporting period, the company had no incidents of leaking customer privacy.

71 72

supply chain management

Health Service Platform Risk/Opportunity Type Risk/Opportunity Description Financial Impact Statement Impact Cycle Countermeasures

supply

The company integrates offline resources such as Heping Pharmacy, DTP Pharmacy, and Day Infusion Center to create a comprehensive platform integrating professional diagnosis and treatment assistance, medication guidance, health management, convenient services, and scientific research.

Should

Pharmaceutical production has extremely high quality requirements. If suppliers

A comprehensive medical and health service platform that integrates popular education and connects the "hospital-pharmacy-family" health scenarios to provide patients with comprehensive health services. Create a prescription flow terminal. The company strengthens supplier selection and management, strictly

Quality Imperfect quality management system may cause drug

Switch to the platform to accept prescriptions from Internet hospitals and provide direct drug delivery services to Internet hospital patients. Liaise with local tertiary hospitals, specialized medical institutions, and well-known doctors to conduct incoming inspections of auxiliary packages and other materials to ensure quality problems, damage the company's reputation, increase recalls, and increase operating costs.

Wind volume.

Experts, establish an expert think tank to provide patients with high-end consultation, diagnosis and treatment assistance, popular science guidance and other resource support; at the same time, we cooperate with well-known pharmaceutical companies, health brands, physical examination institutions, health insurance compensation and other costs.

Cooperate with multiple institutions and other institutions to integrate high-quality products and service resources to provide patients with one-stop health solutions; form a closed loop of services targeting doctors, patients, and drugs to create a unified style

risk

A benign medical and health ecosystem.

Affected by disease epidemic trends, seasonal changes, medical insurance policies

The company uses big data analysis, market research and other methods to adjust policies, launch new products of competitors and other factors.

Cost increase, segment, combined with historical sales data, disease epidemic trends

Affected by the wind, the drug market demand fluctuates greatly, making it difficult to accurately predict the short term.

Responsible Marketing Insurance Revenue Decline Due to factors such as trends and policy changes, accurate demand forecasting may lead to inventory backlogs or out-of-stocks.

analysis to improve forecast accuracy. Increased inventory costs or missed sales opportunities.

The company upholds the concept of responsible marketing and carries out marketing actions with "responsibility" as the core anchor. The company's pharmacies all abide by the bottom line of marketing, adhere to compliance publicity, and "do not exaggerate,

Not false or misleading”, in line with the regulatory requirements of the pharmaceutical industry. All product promotional materials in the pharmacy have been double-checked by professional pharmacists and compliance departments. Drug introductions are only based on national standards.

The drug instructions are clearly marked as "not a substitute for medicines" and health products are clearly marked to prevent misleading publicity. All marketing in the company's pharmacy has jumped out of "sales-style marketing" and integrated health science popularization and market promotion. As the concentration of the pharmaceutical industry increases, the company can rely on cost reduction and the company's continuous optimization of the supply chain structure to

airport

Professional guidance is integrated into the entire marketing process, making marketing a carrier of professional knowledge and creating valuable marketing. The company's pharmacies clearly mark prices, operate with integrity, and take advantage of major pharmaceutical companies to take advantage of their scale and resources to optimize the supply chain to increase market share, integrate upstream and downstream enterprises through medium- and long-term strategic cooperation, expand and establish formal cooperation channels, reject counterfeit and shoddy products, do not participate in low-price malicious competition, and maintain a fair market environment in the pharmaceutical retail industry. Encounter structure, reduce procurement costs. Increased revenue will expand market share and enhance market voice.

Impact, risk and opportunity management

Supply Chain Management

The company has established a scientific risk identification process, clarified supply chain links, determined risk types, and integrated internal management and business

Risk identification systems such as ERP system historical data and operation records, combined with collected external environmental information such as supplier qualifications, market trends, industry policies, natural disaster warnings, etc., analyze each link in the supply chain and identify possible risk points.

Governance The company proposes prevention or rectification requirements based on the identified and monitored supply chain risk points, and continues to track the implementation of rectification measures and conduct risk assessments.

Implement results.

The company has formulated systems such as the "Commodity Procurement Management Measures", "Supplier Advance Payment Credit Management Measures" and "Procurement Rebate Management Measures" to standardize procurement and supplier management.

process, optimize procurement resources and avoid procurement risks. The National Procurement Center is fully responsible for product procurement and supplier management. The management of procurement agreements follows strict filing and emergency response plans. Based on relevant emergency plans, the company coordinates with the National Procurement Center to carry out overall emergency work deployment, organization, command, coordination and approval processes. It clarifies approval authority at all levels based on contract type, amount, policy, etc. to ensure compliance and transparency of procurement activities. The qualification review process is strictly implemented for supplier access, and the specific implementation of risk response and emergency plans ensures that actions can be carried out smoothly according to the plan; the company develops differentiated advance payment supplier strict credit management for different dangerous events. The purchaser is responsible for collecting relevant information of the supplier unit and preliminary review, and then reviewed by the quality management department of the cargo owner unit. The quality manager approves the establishment of an emergency mechanism to strengthen risk prevention and control in all aspects and reduce losses caused by crisis events.

file, and resolutely put an end to purchasing from unaudited suppliers to ensure the quality of products at the source.

The company regards sustainable development as one of the company's key development tasks in the future, attaches great importance to the ESG performance of suppliers, and actively takes environmental responsibility, social responsibility and governance capabilities into account.

Da Dimension conducts a comprehensive assessment of suppliers to ensure that they meet sustainable development requirements such as green and low-carbon, compliant operations, and fair labor.

Impact, risk and opportunity management

indicator

Strategy

Key indicators achieved

As a core enterprise in the field of pharmaceutical circulation, Chongqing Pharmaceutical Holdings faces multiple risks and opportunities in supply chain management, such as the normalization of centralized drug procurement and the deepening of medical insurance fee control to compress flows.

Increased industry competition may lead to market share fluctuations; the company has built a national integrated procurement management system to create "coordinated development of upstream and downstream pharmaceuticals". There are no major risks and impact events in the supply chain. Achieved

Chain, combined with policy guidance, dig deep into supplier needs, provide diversified services, and form a supplier service model with company characteristics. In addition, the company has gradually established a heavy pharmaceutical

Characteristic industrial clusters, actively use information technology to promote hierarchical management of suppliers, form a value creation ecosystem with "resources, services, and development" as the core, and improve the comprehensive supply chain end.

Combining competitive advantages, while ensuring the safety of medicines for people's livelihood, it also promotes the ecological upgrading of the pharmaceutical industry through supply chain upgrades, demonstrating the strategic support of state-owned enterprises in the medical and health field. Key indicators Benchmark unit 2023 2024 2025.

Total number of suppliers 3 16,350 18,699 19,887

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supply chain management

target

Target content Construction status

Five of the company's affiliated companies have obtained radiopharmaceutical business qualifications, focusing on Hunan people's livelihood equipment. The company will conduct sustainable development management of suppliers, establish a sustainable supply chain, develop a special radiopharmaceutical distribution vehicle, and obtain the first sales and storage certification for the national mainstream pharmaceutical business. Steady progress is being made.

Develop risk management mechanisms and promote the company’s sustainable development philosophy to suppliers. Pharmaceutical business qualifications, and can provide third-party customers with the distribution, transportation and storage of radioactive pharmaceuticals

Waiting for service.

Logistics management

Logistics system construction

The company expands its warehousing and transportation scale nationwide based on market demand and business conditions. In terms of warehousing, Tuzhu Phase II and Tuzhu Phase III warehouses have been established in Chongqing.

At the same time, we are actively building modern logistics warehouses outside the province in Sichuan, Guizhou, Jiangxi, Ningxia, Shaanxi, Hubei, Liaoning and other places. As of the end of the reporting period, the company’s total logistics and warehousing area

It covers an area of more than 770,000 square meters, has more than 2,600 warehouse personnel, and has about 800 enclosed pharmaceutical professional freight trucks. The total area of the warehouse directly managed by heavy drug logistics is 150,000 square meters.

(Tuzhu Warehouse 90,000 square meters, Sichuan Logistics 31,000 square meters, Hubei Logistics 28,400 square meters), directly under the jurisdiction of 121 closed pharmaceutical professional freight trucks, including

There are 69 special refrigerated trucks and 2 customs supervision vehicles, with a peak output of 120,000 pieces/day. In terms of transportation, direct transportation to the main city of Chongqing and an area with a radius of 200 kilometers will be realized.

For pick-up and delivery, orders within the Chongqing area (including all primary medical institutions) can be delivered within 24 hours. For hospital emergency delivery requirements, Chongqing’s main urban area can achieve 2

Delivery within hours, no more than 4 hours in suburban areas, and 48 to 72 hours in provincial capital cities across the country. In addition, the company's logistics supports the province through the construction of a three-level distribution network.

Quickly deploy among levels of logistics centers, establish a complete distribution system, and solve the pain points and difficulties of distribution between regions. As of the end of the reporting period, two construction projects in Sichuan and Chongqing had been completed.

With the main transportation lines in the two places, the distribution efficiency of special drugs such as hemp essence and cold chain has been significantly improved, which has greatly reduced the cost of drug and device distribution between the two places. Heavy medicine logistics took the lead in responding to policy needs and carried out regular unmanned delivery of medicines. As of the end of the reporting period, 6 fixed hospital distribution lines in the headquarters area had been opened.

Delivery routes, the cumulative flight time exceeds 4,200 minutes, and the total mileage exceeds 3,000 kilometers, achieving multiple optimizations in efficiency, cost, and emergency support capacity building. Logistics construction achievements during the reporting period

Logistics base construction

The company's subsidiary Heavy Drug Logistics has won the title of 4A-level logistics enterprise.

Chongqing Pharmaceutical Modern Logistics Comprehensive Base is located in the Western Logistics Park of Shapingba District, Chongqing. This honor is a recognition of Chongqing Pharmaceutical Holdings’ years of deep cultivation in the field of pharmaceutical supply chain and continuous improvement of logistics service capabilities.

Adjacent to the national railway comprehensive logistics center, the first longitudinal line of the railway, the middle ring line, the ring expressway, the dual strength and level are fully affirmed

Bei Bridge and Lijia Bridge are connected to the main road first-level port and the railway bonded zone, and are closely connected to the Chongqing-Sui Expressway, urban airport, port, bus station and train station. The transportation is convenient and the geographical location is superior. The project will acquire 130 acres of land and be constructed in two phases.

Chongqing Pharmaceutical Modern Logistics Comprehensive Base

Heavy drug logistics has completed the application for a five-star comprehensive cold chain logistics enterprise. Heavy drug logistics relies on advanced

Advanced temperature control technology, complete distribution network and strict quality control system to build an excellent cold chain

Logistics system. As of the end of the reporting period, Chongqing Pharmaceutical Modern Logistics Comprehensive Base has obtained the first-level green certification issued by the China Warehousing and Distribution Association.

Warehouse identification certificate.

The company promotes import distribution logistics and Sichuan Logistics Phase II

etc. 7 logistics platforms will be built to continue to improve national warehousing and logistics.

layout.

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Innovation driven

Henan Logistics Center is located in Buildings D and E, No. 99 Shangda Road, Guancheng Hui District, Zhengzhou City. It has complete warehousing and logistics facilities. It is the construction of a provincial logistics center for regional pharmaceutical warehousing and distribution.

important hub. The total storage area of the logistics center is sufficient, including 12,617.98 square meters of pharmaceutical warehouse area and 2,000 square meters of equipment warehouse area. With the expansion of the company's national logistics business, the company is actively building and improving a nationwide pharmaceutical logistics network system. At present, the company has 10 self-built provincial level

The warehouse is equipped with four shuttle vehicles, 7 shuttle vehicles, outdoor hoists, transmission logistics bases, and 163 warehousing centers at all levels, with a total storage area of more than 770,000 square meters. With the gradual completion of the construction of provincial logistics centers, the company will start a new strategy

Line, two-term shuttle garage and two two-term shuttle vehicles and other modern logistics equipment, a rough layout, deep integration of logistics' own resources, tapping internal potential, improving resource utilization efficiency, extensively absorbing social resources, and expanding the scope of business radiation.

Warehousing operations are efficient and intelligent. The center is designed with outstanding storage capacity and can store 150,000 pieces of Western medicine and 400 tons of traditional Chinese medicine pieces, which can fully meet the large-scale storage needs of various pharmaceutical products. The Henan headquarters is equipped with about 20 transportation and distribution vehicles, which can efficiently complete the distribution of pharmaceutical products and fully guarantee the drug supply and logistics service needs of medical institutions in the province.

Sichuan Logistics Center is located in Guanghan, Sichuan, covering an area of approximately 90.7 acres. The first phase warehouse Logistics Emergency Management

Covering an area of 31,000 square meters, it consists of a three-dimensional pallet warehouse and a four-story flat warehouse. The maximum storage capacity is approximately

The company has established and improved the logistics emergency management mechanism, built an emergency management system covering the entire chain and multiple scenarios, improved the prevention and early warning of emergencies, and quickly responded to 330,000 boxes. The logistics center has introduced AGV goods-to-person picking, which is combined with DPS picking to form

response and collaborative processing capabilities to ensure the safety of drug circulation and maintain public safety.

Concurrent multi-task splitting and picking system, with annual outbound capacity of 4.9 million boxes.

"Emergency Plan for Production Safety Accidents"

"Road Accident Emergency Plan"

Gansu Logistics Center is located in Lanzhou, Gansu Province, covering an area of approximately 58.3 acres. The first phase of construction is

The warehouse covers an area of 19,000 square meters and consists of a three-dimensional pallet warehouse and a three-story flat warehouse. The maximum storage capacity is "Product Distribution Emergency Plan"

The volume is approximately 280,000 boxes. The logistics center has introduced a concurrent multi-task dismantling and picking system and automatic manufacturing

Degree

The sorting system has an annual outbound capacity of 2.5 million boxes.

"Drug Multi-warehouse Collaborative Emergency Management System"

body

department

"Emergency Treatment System for Cold Chain Products"

"Cold Storage Emergency Plan"

Hubei Logistics Center is located in Wuhan, Hubei, covering an area of about 60 acres, and the first phase warehouse area is 2.84

10,000 square meters, consisting of a three-dimensional pallet warehouse and a four-story flat warehouse, with a maximum storage capacity of approximately 330,000 pieces.

"Emergency Plan for Toxic and Narcotic Safety Accidents"

The logistics center has introduced AGV goods-to-person picking, which is combined with DPS picking to form a concurrent multiple picking system.

Task breaking and picking system, with annual outbound capacity of 4.9 million boxes.

The company actively carries out emergency drills, and jointly organizes the "Important Objectives of National Defense Mobilization" comprehensive drill with the Shapingba District National Defense Mobilization Office. The drill targets violence prevention and stability maintenance, emergency evacuation, and fire rescue to improve employees' practical ability to respond to emergencies. In addition, the company conducts annual risk identification and assessment of logistics management work, and rectifies defects and risk identification items found in the assessment, continues to optimize the logistics management system, and further ensures the stable operation of the logistics chain.

Ningxia Logistics Center is located in Helan County, Yinchuan City, on the Beijing-Tibet Expressway

At the intersection with the Yinchuan Ring Expressway, the transportation location advantage is significant. The digital platform in logistics

The center covers an area of 27.1 acres, and the first phase warehouse area is 15,000 square meters.

It will be officially launched in October 2021, with a designed storage capacity of approximately 160,000 boxes, which can support In 2025, the company has always insisted on driving sustainable development with digital innovation, deeply cultivated the construction of digital platforms, and built a sales scale covering core businesses, emerging businesses, and risk management to support 2 billion. The warehouse has a three-story structure with a floor height of 6 meters and is equipped with a full-dimensional digital system for 1,400 control and group collaboration.

There is space for extra pallets and a refrigerated (frozen) warehouse of 700 square meters. Center

Equipped with a four-way vehicle intensive storage system and an automatic sorting system, in which the four-way vehicle

In terms of upgrading the core business digital platform, the company continues to optimize and improve the core business digital carrier, promote data mid-end breakthroughs and business mid-end breakthroughs, and enrich the budget-intensive storage system with a coverage area of 1,000 square meters. In logistics and distribution

Management, sales front-line empowerment, marketing management, rebate management, operating cost accounting and other full-process functional modules have solidly promoted the implementation of digital intelligence in business. 17 new companies have been implemented. The center has 27 self-owned vehicles, including 5 refrigerated vehicles, which can efficiently meet customer needs.

ERP is online, 22 nationwide sub-warehouses are online, and 89 external cargo owners, 8 third-party warehouses and 36 provincial external platforms are newly connected to complete professional distribution needs such as logistics operations, hospital traceability, retail data and pharmaceutical cold chain. More than 20 special digital projects including invoicing, financial RPA, and decoction system docking have been implemented. Streamline redundant processes and reduce operational losses through digital means to achieve efficient operation of all business links and controllable management compliance.

77 78

Product safety and quality

Data center

In addition, the company has steadily promoted the application of AI technology, completed the privatized deployment of AI computing power and the privatized deployment of DeepSeek and Qianwen AI large models, actively carried out partial completion of a total of 9 themes in the cockpit management category, and can penetrate all levels of major operating companies to achieve full AI scenario application pilots.

Bureau management and control provides data support. Completed data pilot promotion in more than 10 branch companies, covering procurement, sales

Sales and other major business areas help enterprises achieve digital management of their business processes.

In terms of empowering emerging businesses

The company has accelerated the digital iteration of emerging businesses, completed the construction of its own Internet hospital platform, upgraded the patient management platform, promoted the prescription circulation platform outside the province, and completed the implementation of specialized disease

The scientific research platform was successfully deployed and launched in the Municipal Hospital of Traditional Chinese Medicine, providing solid digital support for new business expansion and helping to optimize and upgrade the business structure.

Internet hospital license Specialized disease research platform Patient management platform

In 2025, a number of digital achievements have been recognized by the industry, including 3 new software copyrights, 12 "2025 Digital Intelligence Transformation Case" awards from the China Pharmaceutical Business Association, and the "2025 Youth Scientific and Technological Achievements Transformation Competition Using Technology in Extending Digital Services in the Supply Chain" Excellence Award.

The company focuses on the sustainable development of the medical and health industry, continues to strengthen supply chain service capabilities, extends pharmaceutical logistics information technology to hospitals, and independently develops related management

The system is connected to multiple hospitals to achieve efficient circulation and full traceability of hospital drugs, consumables and other medical supplies. In 2025, 7 pharmaceutical SPD project acceptances will be completed.

Three consumable SPD projects were launched to help the hospital streamline staffing, reduce operating costs, improve operating efficiency, and promote the hospital's internal management to become modern, intelligent, and refined.

Transform, improve the quality of medical services, and effectively fulfill corporate social responsibilities.

Responsible Procurement

The company has built a scientific, efficient, and transparent procurement system, formulated and implemented the "Commodity Procurement Management Measures", "Supplier Advance Payment Credit Management Measures" and "Procurement Rebate Management Measures" to clarify procurement responsibilities and authorities, control key links that affect purchased products, and ensure the quality of purchased products.

The National Procurement Center issued the Procurement Center's "Compliance Management Measures" and organized the signing of the "Compliance Commitment Letter" and "Supplier Integrity Agreement" to ensure legal compliance and healthy development of the company's procurement processes, strengthen the standardization and integrity of the procurement process, and strictly prohibit any form of benefit transfer and unfair competition.

Supply chain value added

In the collaborative digital construction of the group, the company has strengthened its digital intelligence integration with General Motors Group and completed the integration with the group’s master data, human resources system, office system, management process, and financial system.

All-round docking of treasury, smart supervision, etc., deeply integrates into the group’s development pattern, realizes integrated management and control of business and finance, and improves the overall operational efficiency of the group. The company adopts an operation method that combines self-use and third-party storage and distribution, extending information technology, Internet medical care, intelligent logistics and other technologies and logistics systems to empower the logistics chain network. The company carries out extended medical logistics services SPD (In-hospital Logistics - Supply Process) with major hospitals. &Distribution) project, build a supporting logistics system such as hospital warehouse forwarding, centralized rapid distribution, in-hospital smart logistics, Internet hospital services and offline rapid distribution. Through the deepening of the application of Internet technology, we will build industry-leading digital capabilities, improve the efficiency of drug circulation and distribution, and reduce residents’ medication costs.

Smart supervision

The company launched a smart supervision project to deeply embed risk control standards into business system management and control, covering customers and merchants.

Income, credit management, purchase contract/order management, sales contract/order management, inventory management, fund management

In-hospital logistics project

management and other business areas, on the basis of meeting the regulatory requirements of state-owned assets, refine and improve its own regulatory measures,

At the same time, the business data is integrated with the smart supervision platform to provide cockpit reports for the group management to help them deploy pharmaceutical logistics extension services in major hospitals in Chongqing. With the implementation of the new national medical reform policy as the starting point and goal, and information links as the channel, modern medicine can quickly grasp operational dynamics, gain timely insight into potential risks and business opportunities, and effectively improve the company's overall risk prevention. The drug flow information system, automation technology and management methods are extended to hospitals, providing hospitals with professional and personalized information management solutions, and developing control capabilities that comply with GSP management requirements.

The hospital drug consumables logistics management system (SPD) sought after promotes the modernization, intelligence, rationalization and refinement of hospital internal management, reduces hospital operating costs, improves hospital operating efficiency, and improves hospital service quality. As of 2025, the company has developed a total of 228 in-hospital logistics projects, covering 22 provinces and cities across the country.

79 80

Data security management

Third-party logistics and import bonded business

Third party logistics

Information Security Risk Management

The company obtained the pharmaceutical third-party logistics service license in 2016 and began to undertake pharmaceutical third-party logistics services. The company has advanced logistics supply chain service capabilities and solutions

With program capabilities, we build a new intelligent logistics information system to realize the logistics network, platform-based operation and digital management and control of Chongqing Pharmaceutical Holdings. In 2025, the logistics phase within the company will be

In order to strengthen risk prevention and control throughout the entire process and strictly adhere to the bottom line of business compliance, the company has established a closed-loop management system of "identification and assessment - monitoring and early warning - management, control and disposal". The hierarchical customs clearance enterprises have served a total of 424 third-party cargo owners of various types, mainly including import third parties, traditional Chinese medicine third parties, medical device third parties and operating enterprises affiliated to manufacturing companies.

Class prevention and control measures to comprehensively build a solid network information security protection barrier:

Chengshan Third Party Logistics’ revenue is nearly 37 million yuan. Based on the original traditional production and operation of chemical drugs, the customers and types of products have expanded to traditional Chinese medicine pieces, e-commerce, and medical services.

equipment and other fields, and at the same time introduced operating enterprises affiliated to domestic growth hormone head manufacturers to develop new models in the field of cold chain storage and distribution and nationwide distribution. The company will continue

Risk identification and assessment

Continue to increase investment in third-party logistics business, develop and apply logistics intelligent equipment, increase the proportion of unmanned logistics operations, comprehensively promote the marketization of logistics, and boost the company's three-party logistics

The logistics business will be upgraded, multi-warehouse linkage will be implemented, and a comprehensive service platform for the public logistics supply chain of the industry's big health industry will be created.

The company regularly entrusts professional institutions to carry out information system security scans and special IT audits to check system vulnerabilities and identify potential risks through technical inspections, on-site inspections, interviews and tests, etc., and optimizes security strategies based on the results to improve management accuracy. At the same time, it organizes special inspections of network information security for more than 20 subsidiaries, and imports bonded inspections and assessments around the core dimensions of network information security organization construction, system management, data/operation and maintenance/public safety management, etc., to systematically check for security risks in all aspects of operations. Chongqing Pharmaceutical Modern Logistics Comprehensive Base is the first public bonded warehouse outside customs supervision in Chongqing, dedicated to the import bonded business of pharmaceutical commodities.

A bonded area is set up in the GSP warehouse. The bonded warehouse area is 2,600 square meters, including 167 square meters of cold storage. As a customs supervision warehouse, it carries customs clearance and risk monitoring for import and export business.

The existing warehousing and storage function provides support for the development of Chongqing’s pharmaceutical import and export business. The bonded warehouse mainly contains respiratory allergy drugs, gynecological drugs and influenza treatment drugs.

Focus on the core goals of information security risk prevention and control, build a full life cycle security monitoring system, realize normalized and intelligent monitoring of IT assets and security vulnerabilities, and proactively solve the medication problems of respiratory patients in the western region.

Dynamically track risks and promote closed-loop governance. In 2025, a security management platform covering vulnerability discovery, hierarchical assessment, rectification and repair, and review and verification will be built to provide unified management and control of core IT assets such as hosts and databases, as well as Internet exposures; an important business system level assessment mechanism will be established, and professional institutions will be entrusted to conduct assessments every year to comprehensively monitor protection capabilities. During the reporting period, the core system successfully passed the information security level three assessment, laying a solid foundation for compliance and risk control monitoring.

Imported bonded drugs will be put into storage in 2025. Amount involved Risk management and control

193 470 7336

Technical protection level: deploy firewalls, intrusion detection systems, gatekeepers and other security equipment, build a multi-level network security protection system, and strengthen network boundaries and internal defense boxes.

Protection, targeted reinforcement of technical vulnerabilities, blocking external attacks, internal violations and other risks.

Permission management and control level: Following the principle of "position adaptation, minimum authority", refined authorization is implemented according to positions and roles, strictly limiting business system data operation permissions, and effectively preventing unauthorized access, data tampering and other violations.

Personnel empowerment level: Conduct special training on common issues such as weak personnel security awareness, and organize special training on "Silver Fox Trojan Protection" in August 2025, online

Treat small and medium-sized enterprises equally

Covering more than 200 people in various departments and branches, it improves employees' vigilance against APT threats by explaining hacker attack techniques, Trojan horse identification, emergency response, etc., enhances the ability to identify and prevent common attack methods such as phishing emails and malicious links, and avoids man-made security risks from the source.

The company assists the development of small and medium-sized enterprises, ensuring that every partner can enjoy equal opportunities and resources, and creating a fair, transparent and win-win business environment. The company did not happen

In the event of overdue payment of accounts payable, the company and its subsidiaries have no overdue payments to small and medium-sized enterprises.

Data security management

DATA SECURITY MANAGEMENT

Information security management system

Information Security Emergency Management

The company will release the "Overall Policy for Network and Information Security" system document in 2025, which serves as the overall policy, basic principles, security framework, and

Security policy provides an overall strategic framework for network information security management to establish company-wide network security, data security, personal information protection,

The "Network Security Incident Emergency Plan" was formulated in the "Network and Information Security General Policy" system document to guide all departments, branches and subsidiaries of the company to develop a network security guarantee system for password security and content information security, and to improve network security protection capabilities.

Carry out network information security emergency response work, strengthen network information security awareness, improve the ability to respond to network information security incidents, and form a scientific, effective and responsive company party committee to establish a network security leadership group to implement relevant laws, regulations, guidelines and policies, decide network and data security development strategies and other major matters, and establish the main body

Emergency working mechanism to minimize losses and hazards and ensure the safe and stable operation of the company's basic network and important information systems. At the same time, we will establish accountability for database backup and recovery and coordinate the handling of major issues. The Cybersecurity Leading Group has a Cybersecurity Leading Group Office, which is responsible for the daily work of the leading group and takes the lead in formulating systems and unified

For this core risk management matter, the company implements a daily automatic backup mechanism for the database and conducts regular recovery tests to prevent data loss caused by various failures from the source. We coordinate various tasks, organize meetings, and connect with competent departments to supervise the implementation of decisions. The Digital Intelligence Center is responsible for the daily management of the company's network and data security.

Insurance provides double guarantee for the continuous and stable operation of information systems.

81 82

Improve access to medical care

Deepening and expansion of the device and reagent market

Improving medical accessibility. In the fields of in vitro diagnostics, maternal and child equipment, orthopedic equipment and consumables, the company has deepened details through mergers and acquisitions, cooperation, and the establishment of procurement and supply platforms.

Layout in different fields to meet the diverse needs of the market.

IMPROVE ACCESS TO HEALTHCARE Chinese medicine and health product market development and expansion

Details: The company develops new forms of traditional Chinese medicine business, builds a decoction center preparation platform, forms a linkage system for the production, supply and marketing of traditional Chinese medicine pieces, and creates new profit growth points. At the same time, we strive to create a high-quality and unique general health product development pattern, focusing on the three core sectors of medical nutrition, hospital-line medical aesthetics, and health care. Taking the city's "creating differentiated health services" as the core direction, we will build a marketing network with Chongqing as the core and radiating across the country, continuously enrich the general health product line, and satisfy

Expand medical product coverage

Meet market demand

canal

The company implements a diversified strategy, including expanding its sales network, integrating online and offline channels, promoting national layout and internationalization process, and in-depth market segmentation to expand its channel and third-party storage and distribution market business.

extend

We actively expand the coverage of medical products, enhance the company's brand influence, and ensure that more patient groups and basic medical institutions can easily obtain high-quality products. The company takes advantage of the network layout advantages of main warehouses, bonded warehouses, and regional central warehouses to actively expand new third-party logistics businesses and provide manufacturing companies and pharmaceutical trade fairs with services.

Industrial enterprises provide professional storage and distribution services, and when permitted by regulations, implement multi-warehouse linkage to improve storage and distribution efficiency and service quality.

quantity of medical products to promote the development of medical and health undertakings.

Emerging business market innovation and expansion

The company explores the new "Internet +" health management model, builds a full life cycle and full scenario health management platform, integrates medical and health resources, expands pure sales networks to expand primary medical services; promotes Internet O2O cooperation in general, specialist, traditional Chinese medicine and health care among medical institutions, explores new online and offline service scenarios, and new provincial platform companies to accelerate the construction of provincial, municipal and county three-level pure sales networks according to local conditions; and adopts procurement methods for medical institutions of different levels and categories. Paths and new spaces provide people with personalized, all-round, and multi-level health management services.

Take classified management and targeted service measures.

Distribution network optimization

Gradually transform from large distribution to small terminals, and operate through B2B and B2C e-commerce platforms to get closer to terminal and chain customers.

Extension Actively carry out health education

exhibition

Complete sales and retail network

Focusing on the health needs of different groups of people, the company's pharmacy provides customers/patients with health medication consultation, medication guidance, indicator testing, popular science education, etc., and sells it to consumers. Through self-construction, franchising, etc., the company optimizes the network layout of community health pharmacies. Based in Chongqing, radiating to the whole country, forming a national DTP prescription pharmacy

Through the channel network, we are actively seizing the new market for out-of-hospital sales of prescription drugs. To popularize health knowledge, provide professional pharmaceutical services, and promote healthy lifestyles. Regularly organize medical experts in various fields to share knowledge on the prevention, treatment and rehabilitation of various diseases with friends of Guangdao through a combination of online and offline methods; go into communities/communities to provide community/community residents with services such as health testing, chronic disease archiving, disease knowledge popularization, medication guidance and tracking; regularly go to enterprises and institutions to provide employees with chronic disease indicator screening, conduct health lectures, provide TCM external treatment projects, etc.; cooperate with the construction of nursing terminal distribution

Build a professional terminal service team, use information technology to innovate marketing models, and achieve wide coverage of the terminal market. Cooperate with old institutions, go into the homes of lonely elderly people in the community or nursing homes to provide safe medication lectures, chronic disease indicator screening, chronic disease documentation, TCM external treatment projects, etc. for the elderly, integrating health knowledge education into every pharmaceutical service, and protecting the health of customers/patients. In 2025, Chongyao Heping Pharmacy will carry out a total of 1,600 health service activities to optimize product structure and marketing strategies, benefiting 148,000 residents and serving more than 40,000 customers/patients. Chongyao New Health has carried out more than 10 public welfare patient education activities, serving more than 3,000 people. By enriching the business variety structure, we have formed "new, unique and unique" product advantages to meet the needs of different medical institutions and consumers.

line

online channels

The company expands its online sales network through B2B and B2C e-commerce platforms; builds Internet hospitals and promotes "online consultation and offline delivery" services.

line

Develop a new sales model for prescription drugs; build a retail terminal e-commerce platform "Peace Health Mall" and build an omni-channel marketing network.

canal

Road offline channels

Conclusion The company optimizes the terminal distribution network and uses the three-level distribution system to expand the terminal market; it optimizes retail through self-construction, franchising, and alliances.

Integrate the network and realize the interaction between online and offline networks.

Nationwide layout

full

The company will continue to improve the layout of blank areas at the provincial level, deepen regional market penetration, and create a sales network through the sales network of 178 prefecture-level cities

And a multi-level business network, reaching 31 provinces, autonomous regions and municipalities across the country, ensuring the comprehensiveness of product sales channels.

country

international internationalization strategy

During the reporting period, the company was committed to building a global innovative pharmaceutical supply chain to serve the "Healthy China" strategy. By establishing FDA and EMA new drug tracking

The battle tracking mechanism accelerates the introduction of global cutting-edge varieties.

slightly

Relying on the re-control of Hainan, we will promote the "first trial" of new drugs launched in Europe and the United States, aiming to benefit more patients taking drugs. At the same time, we will promote the company’s subsidiaries to carry out operations in multiple ports.

Case: Chongyao New Health cooperated with Chongyao New Products to carry out community volunteer services during the Double Ninth Festival. Case: Chongyao Heping Pharmacy entered the Dajingxiang community elderly care service station to carry out import and export business for elderly activities, and effectively fulfilled the social responsibilities of pharmaceutical distribution enterprises.

83 84

DEVELOPMENT REPORT

Unite as One to Solidify Foundations

Jointly Forge a New Chapter of Harmony

Building the foundation together

Create a new chapter of harmony together

Contents of this chapter

Protecting the Rights and Interests of Employees We always regard talents as the key to improving corporate competitiveness and achieving sustainable development. We attach great importance to the protection of employees’ rights and interests and are committed to building a diverse, inclusive and

Employee training and development provide an equal workplace environment, provide employees with a broad career development platform and diversified growth opportunities, strive to protect the life safety and health of employees, and realize the realization of the company and employees

common development

Occupational health and safety responds to the SDGs

85 86

Protect employees’ rights and interests

05 Indicator Unit 2025 Under 30 years old in 2024

People 2048 2780Protecting the rights and interests of employees (excluding 30 years old)

30-40 years old

People 5338 5925 (including 30 years old, excluding 40 years old)

SAFEGUARD EMPLOYEES' RIGHTS BY AGE

40-50 years old

People 3729 3959 (including 40 years old, excluding 50 years old)

People aged 50 and above 1122 1156

DEVELOPMENT REPORT

Recruitment and Employment Production Personnel Person 4 6 Sales Personnel Person 5415 6436 Pharmaceutical Research Institute is the core carrier for the development of the company’s pharmaceutical R&D sector. It is responsible for coordinating and leading the company’s R&D innovation strategy and layout, technological innovation platform construction, technology

communicate

Technical staff 230 245 cooperation and other work, fully promote new product project approval, research and development, production and other specific affairs of the drug life cycle. The Pharmaceutical Research Institute consists of BD Department, R&D Department, Production Technology Department and

Department of Surgery and General Management Department.

Financial personnel 809 892 divided by profession

Administrative Personnel 1947 2047 Staff Recruitment

Procurement Personnel Person 928 959 Based on the talent development strategy and actual operating needs, the company creates dual channels for internal and external recruitment, using online recruitment platforms, on-site job fairs, headhunting cooperation, etc.

The parallel recruitment method attracts talents from different fields and backgrounds and injects new vitality into the company's development.

Warehouse logistics personnel 2237 2527

Internal Recruitment Quality Personnel 667 708 Recruitment is conducted for all employees of the company, mainly relying on corporate APP (Chongyao Home, Smart General) to publish recruitment information.

PhD People 3 3External Recruitment

Master's degree People 235 234 By education level

Including campus recruitment and social recruitment, relying on offline job fairs, external recruitment websites (large recruitment platforms such as Zhaopin Recruitment and 51job) and headhunters to introduce talents.

divide

Undergraduate students 4985 5212 In 2025, the company actively carried out campus recruitment, organized on-campus lectures, participated in double selection meetings, etc., and introduced a total of 98 fresh college students; based on the actual operating conditions, the company

People with college degree and below 7014 8371 guided subsidiaries to carry out social recruitment work accurately and efficiently according to development needs, recruiting a total of 302 social talents, including 34 licensed pharmacists; the company actively responded to the national

The country's policy guidance on promoting employment and protecting workers' rights and interests calls on all units to actively recruit specific groups of people, and a total of 5 people with disabilities and 7 veterans were recruited.

By region Mainland China People 12237 13820

Senior Management People 627 671Employee Structure

By rank Middle management Person 1417 1452 Indicator Unit 2025 2024

Grassroots employees 10193 11697 Total number of employees 12237 13820

Number of ethnic minority employees 816 924 Females 6998 8003

by gender

in management

Male persons 5239 5817 Number of ethnic minorities persons 105 109

87 88

Protect employees’ rights and interests

Legal and compliant employment

performance indicators

Employment Procedure Compliance

The company formulates and implements system indicators such as the "Recruitment and Resignation Management Measures", "Employment Relations Management Measures", "Retirees Re-employment Management Measures", "Intern Management Measures" Unit 2025 2024

Standardize, ensure legal and compliant employment, and effectively protect the rights and interests of employees. The company signs formal labor contracts with all employees in accordance with the law, and signs corresponding labor contracts with 88 283 other personnel who have established labor relations with the company, including retired re-employed personnel and intern labor dispatch employees, to safeguard the rights and obligations of both parties.

Number of part-time employees Person 0 0

Prohibition of child labor

Proportion of female employees % 57.19 57.91 The company complies with national and local laws and regulations prohibiting the employment of child labor, strictly reviews the personal information of applicants during the recruitment process, and ensures that all applicants have reached the legal working age to avoid mistaken employment of child labor due to false information.

Proportion of ethnic minority employees % 6.69 6.69

Against forced labor

Number of employee turnover/resignation Person 1490 1078

The company prohibits the use of any forced or compulsory form of labor and fully respects the human rights and freedoms of employees. It has formulated internal management systems such as the "Employee Attendance Management Measures", "Employee Overtime Management Measures for Employee Loss/Resignation Rate % 11.50 7.80" and "Holiday Management System". It has clarified the standard working time system (five-day eight-hour work system) and the comprehensive calculated working time system (monthly working hours shall not exceed 167 hours), standardized overtime and vacation management, and fully protected employees' legal rights to rest. On the premise of respecting the personal wishes of employees, per capita salary for work needs is RMB 10,000 12.29 10.29

For extra overtime and on-duty shifts, the company can arrange for employees to take compensatory leave or pay them overtime wages.

Income per capita RMB 10,000 673.75 582.93

During the reporting period 100

Total investment in employee training RMB 10,000 297.20 470.30

The company’s employee labor contract signing rate is %. No illegal incidents such as child labor or forced labor have occurred.

Employee training investment per million revenue RMB 10,000 0.036 0.006

Per capita training investment Ten thousand yuan 0.024 0.034 Salary and welfare management

Number of work-related fatalities Person 1 0

Employee compensation

Number of safety incidents occurred Example 0 0

Number of major and above accidents Example 0 0 The company follows the general compensation principle of "one adaptation, two linkage", designs a scientific and fair salary and welfare system based on the company's strategic development goals, optimizes the salary distribution mechanism, establishes a "double benchmarking" mechanism for employee salary levels, continuously improves the construction of the salary system, and improves the internal fairness, external competitiveness and management compliance of salary distribution. Number of Occupational Diseases Person 0 0 The company has established a ladder-type salary system, conducts regular performance appraisals and evaluations on employees, and adjusts employee performance salaries based on the evaluation results. Number of work-related injuries in each functional department of the company Person 1 0 Position salary consists of basic salary, performance salary and year-end bonus. The salary standard for grassroots employees is higher than the Chongqing minimum wage standard.

Injury rate per million hours worked % 0 0 Employee Benefits

Mortality % 0 0

The company provides employees with various welfare guarantees in addition to salary to enhance employees' job satisfaction and happiness. The company strictly implements national and local laws and regulations. In addition to providing employees with basic benefits such as five insurances and two housing funds, paid vacations, holiday benefits, annual health examinations, and birthday condolences, it also provides supplementary insurance items such as accidental injury commercial insurance for interns. During the reporting period, employee social insurance coverage was 100%.

Case: Holiday condolences

The company provides condolences and benefits to front-line employees who stick to their posts, conveys care with true feelings, gathers strength with warmth, and creates a warm and harmonious festival atmosphere, so that everyone can feel the warmth of home and the deep joy of the festival even when they are busy.

Diversity, Equity and Inclusion

The company adheres to the value concept of "people-oriented", always adheres to the principle of fairness and justice, resolutely opposes any form of discrimination, and creates a harmonious and inclusive working atmosphere.

Promote cultural values of respect and equality. The company openly recruits employees based on job requirements and does not treat employees differently based on factors such as age, gender, ethnicity, disability, etc.

work to ensure that every employee has equal rights and opportunities. During the reporting period, no labor discrimination incidents occurred.

89 90

Protect employees’ rights and interests

Employee communication and communication

The company's trade union organizations at all levels follow the spirit of superior trade union meetings, adhere to the party's overall leadership over trade union work, resolutely safeguard the legitimate rights and interests of employees, and continuously enhance employees' sense of gain, happiness, and security.

Employee communication channels

The company takes the construction of smart trade unions as the main line, closely combines the characteristics of "many branches and subsidiaries, and wide distribution areas" to actually implement the "Internet + Trade Union" exploration and practice, and smoothes communication channels between employees and the company through the establishment of "trade union chairman's reception day", "general affairs disclosure", "rights protection" and "rational suggestions" and other sections. In 2025, 176 effective rationalization suggestions were collected online and offline, 702 employees participated, and 48 suggestions were adopted and implemented.

The company has set up an employee suggestion box to collect employees' opinions, suggestions and demands. The employee suggestion box will be opened by the company's Complaints and Complaints Office every Friday to collect relevant letters, keep registration records and handle them in accordance with relevant procedures.

employee satisfaction survey

Performance appraisal management

The company's labor union organized a 2025 employee satisfaction survey. The survey included 8 major items such as management model, corporate culture construction, salary and benefits. The scope of the survey covered the company's functional departments and branches and subsidiaries inside and outside the city. 12,040 questionnaires were sent out and 10,740 questionnaires were returned. The employee satisfaction rate was 98.23%. The staff of the company headquarters strictly abide by the "Performance Appraisal Management Measures for Functional Departments" and follow the appraisal principles of "openness, objectivity, practicality, feedback, and performance" to all employees.

Employees carry out performance appraisal work. The appraisal adopts a combination of quarterly appraisal and annual appraisal. The appraisal content covers key tasks, work ability, work attitude, labor

Labor dispute settlement

Four dimensions of discipline. If an employee's quarterly assessment or annual assessment scores are lower than the assessment standards, relevant leaders will organize talks and consider job transfers, etc. Disagreement with annual assessment

For employees who fail to pass the assessment for two consecutive years, the company has the right to terminate their labor relationship in accordance with regulations.

The company is committed to building harmonious labor relations, and encourages employees to express their opinions and demands through various channels such as writing, phone calls, and emails, and actively responds to and complies with relevant laws and requirements. The company has formulated the "Measures for the Term System and Contractual Management of Managers", in which management members conduct annual and term performance evaluations.

Provide for the proper handling of employee complaints. The company provides face-to-face communication opportunities for both parties to the dispute, listens to employees' demands, actively communicates and negotiates, enhances understanding and trust, promotes problem review, and uses assessment results as an important basis for salary settlement and job adjustments.

Harmonious solution. After resolving labor disputes, the company establishes relevant accounts to analyze and manage the disputes, effectively prevent similar disputes that may occur in the future, and continue to optimize the dispute handling process.

Performance feedback and appeals

The company follows the concept of "comprehensive, timely and efficient" in terms of performance feedback and appeals, pays close attention to employees' work performance in every aspect of performance appraisal, and provides

Employee Activities and Employee Care

Provide necessary guidance and support. Employees can check the assessment results through the enterprise APP. Questions or complaints about the assessment results can be directly fed back to the department leaders or the human resources department.

door.

employee activities

The company actively organizes diversified cultural and sports activities to enrich employees' spare time life, promote employees' physical and mental health, create a warm and harmonious working atmosphere, and enhance team cohesion.

Democratic Management and Communication

Improve employee satisfaction and sense of belonging.

democratic management mechanism

The company's trade union organizations at all levels follow the spirit of the higher-level trade union meetings, adhere to the party's overall leadership of the trade union work, resolutely safeguard the legitimate rights and interests of employees, and continuously improve employees'

A sense of gain, happiness, and security.

The company’s existing trade unions include those directly managed by the company

174 27 are all second-level trade unions in the city

Individual Individual The remaining 147 unions are territorially managed second-level unions or third-level unions

In 2025, the company held a workers’ representative meeting to review and adopt resolutions

94 9 Participated in the staff performance of the 100th anniversary of the founding of the All-China Federation of Trade Unions

Secondary item

91 92

Innovation driven

Employee assistance

The company cares about retired employees. During the holidays, it visits retirees to express condolences, organizes visits to retirees who are sick and hospitalized, and provides financial subsidies to retirees who suffer from serious diseases and lead to poverty, so that every retired employee can deeply feel the care and warmth of the company.

The company purchases employee mutual aid insurance for all employees. The insurance covers employee hospitalization, major diseases and special disease protection for female employees. In addition, the company has formulated the "Measures for the Assistance and Management of Employees in Difficulty of Chongqing Pharmaceutical (Group) Co., Ltd." to provide additional financial assistance to employees who are trapped due to illness and effectively help employees solve practical difficulties.

Pay attention to employee mental health

The company attaches great importance to the construction of employees' mental health, regulates employees' psychology through "Family Open Day" and "Spiritual Gas Station", and conducts mental health diagnosis for the cadres who participate in the study. At the same time, the company timely intersperses communication, emotion management and other mental health-related courses in daily special training to help employees enhance their mental health awareness, improve their mental toughness, and face work and life with a positive attitude.

"Books and Medicine" themed reading activities

Protection of Women’s Rights and Interests

The company attaches great importance to the protection of the rights and interests of female employees, continuously improves the welfare benefits of female employees, and creates a more warm and harmonious workplace environment for female employees. Female employees of the company enjoy exclusive paid leave such as maternity leave, breastfeeding leave, and extended breastfeeding leave. The company continues to carry out a series of activities such as "Love and Beauty Make You Shine", and actively responds to the national fertility policy. At the same time, the labor union pays special attention to the physical and mental health of female employees, actively promotes the co-construction and sharing of "loving mommy houses" according to local conditions, and cares for female employees with practical actions. Actively organize and carry out unmarried female employees to participate in guest exhibition activities for single employees in the Chongqing Chemical, Medical, Agriculture, Forestry and Water Conservancy System. Create a good atmosphere for safeguarding the rights and interests of female employees in accordance with the law, and carry out the 2025 "Love Female Employees, Law is by Your Side" legal popularization campaign to enhance the self-protection awareness of female employees and safeguard their legitimate rights and interests. To improve the labor skills of female employees, a female employee was awarded the title of "General Technology Group Women's Model" and participated in Chongqing's special training on improving the digital skills of female employees to improve the digital level of trade union cadres. Participate in a series of activities for the 100th anniversary of the founding of the All-China Federation of Trade Unions, and hear her power through the column - the stories of female model workers are narrated online to enhance employees' patriotism and love for the company.

Case: Care for female employees

table tennis match

On the occasion of Women's Day, the labor unions of Chongqing Pharmaceutical Co., Ltd. actively practice the culture of "Excellence for Love" of Chongqing Pharmaceutical Co., Ltd. and organize various forms and distinctive "

The themed event "Love and Beauty Makes You Shine" shows the elegance of "Her" who is healthy and beautiful, has self-esteem and self-confidence, cares and trusts, and collaborates with others.

Case: Improving female employees’ self-protection awareness

"Books and Medicine" themed reading activities and Mid-Autumn Festival themed activities

Case: Marriage and love activities

Happy New Year garden activities

93 94

Employee training and development

Case: Storytelling of female model workers

Employee training management

The company attaches great importance to the growth and empowerment of employees in different positions and ranks, and conducts targeted training in layers, grades, and categories. Through the "dual-line" linkage of talent training, the company carefully coordinates both offline and online aspects to achieve offline branding and online digitization of talent training work, and strives to create a better career development and growth platform for employees. In 2025, the company will train a total of 229,000 people. The company continues to increase investment in talent training and always promotes employees and the company to progress and develop together.

2025

The proportion of company personnel with professional titles or skills is 50.08%, an increase of 4.2 percentage points from 2020

Employees with a bachelor's degree or above accounted for 40.57%, an increase of 11.5 percentage points from 2020.

Through a series of training and career development measures, the company promotes the simultaneous growth of employees and the company and shares the results of corporate development.

Teacher team building

The company is committed to building an excellent team of internal training instructors to continuously inject development vitality and innovation capabilities into the company through professional knowledge transfer and skill sharing. The company has formulated the "Internal Trainer Management Measures" to standardize the selection, certification, assessment and management of internal trainers, laying a solid foundation for the healthy development and efficient operation of the internal trainer team. The company's internal trainer team implements hierarchical management, and specially appointed internal trainers are set up to attract outstanding talents in the industry. The internal trainer selection process is open and transparent. The Human Resources Department issues a selection notice and encourages each unit to actively recommend or employees self-recommend. Candidates who meet the qualifications will be included in the internal trainer special training plan.

Employee training and development

Online training platform construction

EMPLOYEE TRAINING AND DEVELOPMENT

The company uses the Mobile Business School as a carrier to vigorously carry out various online trainings, plan massive learning courses, promote the digital construction of talent training, help employees continuously accumulate internal knowledge cases of the company, and make talent training work more efficient and comprehensive. Currently, Mobile Business School has launched more than 300 online courses, and has carried out multiple online live broadcasts, online exams, research activities and special trainings. Online learning has covered more than 13,000 people.

Talent development concept

Special training projects

Talent is the first element to promote the company's sustainable development and an important guarantee for achieving strategic goals. The company focuses on the talent development philosophy of “respecting people, cultivating people, and making good use of people”.

Based on the concept, we systematically build a talent development management system that integrates talent career promotion, training and growth, and salary adjustment to ensure that employee growth and development are in line with the company's strategic development.

The company actively carries out offline training courses such as the first volume of "Selected Economic Writings of Xi Jinping", the fourth Mini MBA, and the Vice President of Administrative Compliance. match.

Case: 2025 Mini MBA Senior Manager Business Administration Training Course

Career advancement and development

Chongqing National Chongqing Pharmaceutical Co., Ltd. and the School of Economics and Business Administration of Chongqing University jointly create the Mini MBA senior management business management training class. Through systematic teaching that combines theory and practice, it cultivates a team of high-quality cadres who understand business and are good at management.

The company has established and continuously optimized dual-position development channels for management and technology, integrating the company's talent needs with employees' career development, and pursuing mutual benefit and win-win results for the company and employees.

The employee promotion process follows the principles of fairness and transparency. Within the scope of the department establishment, the department head will make decisions based on the employee’s work performance, ability level, team needs, etc.

Nominations are recommended by the bank. If the nominated employees meet the basic qualifications of the position and their performance assessment in the previous year reaches a good level or above, they may be eligible for promotion.

Employees can obtain positive points through annual performance appraisal results, academic qualifications, personal training, full attendance, length of service, etc. If they violate labor discipline, they will be deducted accordingly.

Those whose annual points reach 10 points will have their salary increased by one level.

management sequence

Advanced

Administrator Senior Administrator Sponsor Senior Sponsor Assistant Minister Deputy Minister Minister

assistant minister

Case: Mini MBA study

technology sequence

Assistant technician Junior technician Intermediate technician Senior technician Senior technician

95 96

Occupational Health and Safety

Case: 2025 Vice President of Administrative Compliance Training During the reporting period, 13 subordinate units including Chongyao Wanwei, Chongyao Fuye, Chongyao Shaanxi Fahrenheit, and Chongkong Hubei have all passed ISO 45001:2018 Occupational Health

The company carries out training for the Vice President of Administrative Compliance, systematically empowers the Vice President of Administrative Compliance, improves the professional performance capabilities and effectiveness of the Vice President of Administrative Compliance, and strengthens compliance and safety management system certification. Management talent echelon construction.

Occupational Health and Safety

OCCUPATIONAL HEALTH AND SAFETY

In 2025, the company will be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly study and implement General Secretary Xi Jinping’s important expositions on production safety and Xi Jinping Thought on Ecological Civilization, adhere to the concept of people first, life first, safe development, and green development, and adhere to the concepts of safety and security. With full production red-line awareness and bottom-line thinking, we will continue to carry out in-depth three-year actions to address the root causes of safety production, fully implement the main responsibilities for safety and environmental protection at all levels, strengthen risk prevention and control, strengthen safety training, prevent the occurrence of various safety accidents, and create a safe and stable situation for the company's high-quality development. In 2025, the entire system will invest a total of 10.93 million yuan in safety production.

Occupational health and safety production system

The company always adheres to the safety production concept of "safety is the foundation, safety is the guarantee, safety is the benefit, and safety is the development" and the occupational health concept of "cherishing life and protecting the health of employees", implements the "Work Safety Law of the People's Republic of China" (hereinafter referred to as the "Work Safety Law"), the "Law of the People's Republic of China on the Prevention and Control of Occupational Diseases" and other relevant laws and regulations, and formulates the " "Safety Production and Environmental Protection Occupational Health Supervision and Management System", "Safety and Environmental Protection Occupational Health Inspection and Assessment Management Measures", "Safety Education and Training Management System", "Safety and Environmental Protection Inspection System" and "Safety Production Accident Hazard Investigation and Management Measures", establish and improve the occupational health and safety production management system, implement the safety responsibility system, and protect the physical and mental health, safety and well-being of employees.

Safety production concept Safety is the foundation, safety is guarantee, safety is benefit, safety is development

Occupational health concept: Cherish life and protect employee health

Safety production policy: safety first, prevention first, comprehensive management, people-oriented, sustainable development

Occupational health policy: People-oriented, prevention first, combination of prevention and treatment, continuous improvement

97 98

Occupational Health and Safety

2025 work goals and completion status

The company will continue to use safety standardization as the starting point to promote external compliance and internal review, and strengthen safety and environmental protection control and intrinsic safety levels.

Formulate the key points of annual safety and environmental protection work, refine and break down the target tasks, sign target responsibility letters for all employees at each level, and strengthen the performance assessment of the main persons in charge at all levels.

Revise the safety and environmental protection management system in accordance with China's general control requirements and further improve the control mechanism

Continue to carry out three-year actions to address root causes and do a good job in accident prevention and disaster prevention

Taking special events such as "Safety and Environmental Protection Month" as an opportunity to carry out various training and drill activities to improve the safety knowledge and emergency response capabilities of all employees

Deepen the special rectification of hazardous wastes, urge subordinate enterprises to implement the "Guidelines for Compliance Management of Hazardous Wastes", and strengthen compliance supervision of hazardous wastes

Safety responsibility system

In order to standardize safety management and effectively prevent the occurrence of occupational-related diseases and injuries, the company has established a safety and environmental protection department, which is responsible for production safety, occupational health, and fire management. It promotes the creation of a healthy enterprise, incorporates the storage of radioactive drugs into key occupational health management, strengthens emergency drills for radioactive drug accidents, and carries out professional management and other work in accordance with regulations. At the same time, the company has established a Safety Committee, with an office within the Safety and Environmental Protection Department, responsible for handling the daily affairs of the committee and ensuring the efficient implementation of various policies and measures, including detection and evaluation of hazardous factors.

Real.

In order to implement the main responsibilities of safety production at all levels and strengthen safety awareness, the company has clearly defined 25 general goals of eliminating all types of accidents and the importance of thoroughly studying and applying General Secretary Xi Jinping’s safety and environmental protection policies

41 specific work tasks in 8 aspects, including the three-year action to tackle the root causes of safety and environmental protection, and based on the overall safety and environmental protection goals issued by General Technology Group, combined with actual conditions

Specific indicators such as the hidden danger rectification rate, employee safety education and training rate, special equipment inspection and detection rate, and the proportion of registered safety engineers have been added, which are related to the total safety risk management of the three major sales markets.

Ministry of Finance, 69 secondary units and 25 departments signed target task responsibility letters, and a total of 14,887 target responsibility letters were signed (633 at the company level, 3,866 at the department level,

10388 copies at the team level). Risk identification and assessment

Inspection and assessment management mechanism Based on the characteristics of the development of production and operation formats, the company uses scientific risk identification methods to systematically and comprehensively identify possible risks in the entire system, classifies and evaluates the identified risks, determines the categories and levels of safety risks, and implements dynamic classification and classification management. During the reporting period, the company's entire system identified fires. The company carried out safety and environmental protection occupational health inspections and assessments every quarter in accordance with the "Safety and Environmental Protection Occupational Health Inspection and Assessment Management Measures". Based on the assessment results, 16 major safety and environmental protection occupational health risks such as traffic accidents, equipment safety, special operations, and natural disasters were identified. 26 control measures were formulated one by one based on each risk, and color-coded management was implemented. The annual salary level of the leadership team of each unit is linked to the annual inspection and assessment results. Realize the standardization and process of risk management and control.

Safety hazard investigation and management

Goals and planning

The company implements various safety management systems such as the "Safety and Environmental Protection Inspection" and "Measures for the Investigation, Control and Management of Hidden Hazards in Work Safety Accidents" and the responsibilities of safety production entities at all levels. The company's 2025 work goals and completion status are to timely discover and eliminate various safety hazards through level-by-level safety inspections to avoid various accidents. In accordance with the company's work deployment, the entire system fully implemented the three-year action to address the root cause and implemented accident prevention work. A total of 287 inspections of various types were carried out at the company level, 153 safety and environmental protection inspection letters were issued, and 2,269 hidden dangers and problems were rectified. Completion status of all goals in 2025

The system carried out 6,158 company-level safety inspections, accepted 335 inspections from relevant superior departments, and rectified 2,303 hidden dangers; it conducted 23,997 team-level safety inspections, and 1. eliminated occupational disease accidents; 1,892 hidden dangers were rectified.

Occupational health goal No occupational diseases occur

Prevent acute occupational poisoning accidents;

Emergency plans and drills

Prevent the occurrence of death, serious injury or loss of 1 million yuan (inclusive)

The company complies with relevant laws and regulations such as the Production Safety Law, Production Safety Accident Emergency Regulations, and Production Safety Accident Emergency Plan Management Measures, and formulates the Liability Accidents for Direct Economic Loss Above Production;

Comprehensive Emergency Plan for Safety Accidents" to standardize the company's emergency management work and ensure that emergency rescue can be implemented quickly, effectively and orderly after an accident occurs.

Put an end to larger and larger traffic accidents for which we are primarily responsible:

Safety (Firefighting) Objectives: The company urges and guides all units to carry out regular accident emergency drills and training, evaluates the effectiveness of the drills, the practicality and feasibility of the plans, and continuously improves the emergency plans. 3. Prevent major economic disasters caused by theft and fraud cases.

No safety and environmental accidents have occurred and measures have been taken to improve the scientificity, compliance and operability of the plan, form an emergency support capability with hierarchical responsibility, plan connection and fast action, and improve employees' self-rescue and losses;

The ability to rescue and escape each other. During the reporting period, the entire system carried out 522 emergency drills, with 8,631 participants. Among them, units in densely populated areas randomly conducted emergency “drills” 4. To prevent major and larger computer network security incidents;

"28 times and 492 people participated.

Avoid being criticized, warned, interviewed, or acted upon by superior departments

political penalties.

99 100

Occupational Health and Safety

Safety Management Measures

Carrier management

In accordance with the provisions of the "Carrier Management System", the Transportation Management Department is responsible for organizing safety education and training for carriers before business operations and during daily management, supervising carriers to implement their safety control measures, safety education and training, accident emergency drills, safety inspection matters, etc., and enhancing the safety awareness and emergency response capabilities of carriers and their vehicle personnel. In order to evaluate the carrier's safety management level, the Quality Management Department assists the Transportation Management Department in conducting a safety system audit on the carrier to check whether it has established a scientific and feasible safety management document system.

Heavy Drug Logistics carries out safety and environmental protection consultation day activities Heavy Control Liao Logistics conducts fire drills

Digital management

As of the end of the reporting period, the company had a total of 933 drivers and 1,190 operating vehicles (including 1,047 freight vehicles and 143 passenger vehicles), of which 566 vehicles had been installed with intelligent driving safety supervision platforms (an increase of 32 vehicles from the previous year), and 78 new energy vehicles (an increase of 24 vehicles from the previous year). Heavy drug logistics has introduced two major Internet technologies, the "Heavy Drug Vehicle Manager" intelligent driving safety supervision system and the "TMS" transportation management system, to supervise vehicle safety. The Ministry of Safety and Environmental Protection can use the driving intelligent supervision system to randomly inspect the operation of drivers and vehicles in subordinate units, and supervise units to strengthen operational supervision. "Heavy Drug Vehicle Manager" provides two ports, PC and mobile APP. Users can view vehicle monitoring in real time through mobile phones and computers, achieving 24-hour supervision.

Safety culture construction

The company attaches great importance to the construction of safety culture, formulates the "Safety Education and Training Management System", and regularly organizes and carries out activities such as "119 Fire Protection Month" and "Safety Production Month" to effectively enhance the safety awareness of personnel at all levels, ensure that safety concepts are deeply rooted in the hearts of the people, and create a strong safety culture atmosphere.

Focus on Anhui to launch a special competition event called "Firefighting Skills Contest and Emergency Capability Test"

Case: "119 Fire Protection Awareness Month" activity

During the "119" Fire Protection Awareness Month in 2025, the company closely focused on the theme of "National Firefighting, Life First - Safe Use of Fire and Electricity" and carried out a series of solid and effective activities throughout the system. A total of 191 fire safety special trainings were organized during this publicity month, covering 7,530 people; 440 warning educational films were watched, with a total of 6,627 people participating; 11 online learning sessions were conducted through the "Gold Medal Lecturer Cloud Classroom", with 289 people participating. In terms of hidden danger management, 242 hidden dangers were investigated and rectified, and RMB 58,100 was invested in rectification funds. In terms of publicity forms, 507 exhibition boards, slogans, and posters of various types were set up, 2,743 copies of publicity materials were distributed, and 153 new media publicity articles were pushed. In addition, the "Firefighting Volunteer Tour" service activities were innovatively carried out 18 times and 19 firefighting volunteer service teams were formed. The company also continues to strengthen fire safety infrastructure, investing 56,500 yuan to update fire protection and evacuation equipment, and investing 14,000 yuan specifically for publicity and education. Through an all-round and multi-level series of activities, the fire safety awareness and emergency response capabilities of all employees have been effectively improved, and the company's fire safety management foundation has been further consolidated.

Case: "Safety Production Month" activity

The company organized the entire system to carry out the 24th Safety Production Month activities. Focusing on the theme of "Everyone is concerned about safety and everyone knows how to respond to emergencies - look for potential safety hazards around you", the company organized and carried out emergency training drills, special investigation and rectification actions and a series of safety culture activities to enhance safety awareness, safety skills and emergency response capabilities at all levels.

Chongyao Shiyan carries out practical training on fire safety. Chongyao Special Branch carries out first aid knowledge training.

101 102

Occupational Health and Safety

Indicator Unit 2023 2024 2025 Occupational disease protection measures

Total investment in safety education and training RMB 10,000 28.33 21.29 26.74

Safety education and training sessions 6,380 5,320 10,302 The company organizes health examinations for current employees and retired personnel every year.

Comprehensively implement occupational health monitoring for employees exposed to injuries. Heavy drug logistics, heavy drug equipment, heavy drug medical trade, heavy drug new special drugs, Hunan people's livelihood strictly participate in safety education and training Person-time 133,173 130,739 151,553 Implement the occupational health examination system to achieve full coverage of physical examinations for victims. The entire system completed a total of 13 occupational health pre-job physical examinations and on-the-job physical examinations.

Occupational health examination

49 people were examined and 5 people were examined before leaving work. The occupational health examination rate of injured employees reached 100%, no occupational contraindications were found throughout the year, and the coverage rate of safety education and training on occupational diseases % 100 100 100

Example. At the same time, special labor protection regulations for pregnant and lactating female employees and underage workers are strictly implemented to prevent them from being exposed to specific occupational hazards and safety risk protection training coverage % 100 100 100 harmful factors.

Employees will encounter hazards such as noise and low temperature in cold storage during production work. The company provides employees with complete labor protection supplies, distributes cold-proof clothing and occupational health management, and equips them with occupational disease and noise-proof earmuffs to provide adequate labor protection. Heavy Pharmaceutical Equipment equips cold chain workers with cold-proof clothing and introduces electric forklifts to reduce labor intensity; protective tools Heavy Pharmaceutical Medical Trade provides professional radiation protection supplies for radioactive pharmaceutical workers, regularly sends monitoring instruments for inspection, and strengthens on-site wearing supervision and guidance.

guide.

Occupational hazard detection

In order to implement relevant laws and regulations on the prevention and control of occupational disease hazards and protect the life and health rights of workers, the company hires qualified occupational health testing institutions every year. The company actively promotes the equipment of automated external defibrillators (AEDs) and encourages personnel from all enterprises, node warehouses, stores, and business premises to conduct close inspections of the company's workplaces for occupational disease hazard factors. Among them, heavy drug logistics entrusts professional institutions to conduct comprehensive testing of noise, power frequency electric fields, nitrogen oxides and other items, and equips rescue equipment. The concentrated area is equipped with AEDs in accordance with the "Emergency Rescue Material Equipment Requirements for Hazardous Chemical Units" (GB30077-2023). All units actively responded and the pass rate reached 100%; heavy medicines and new special drugs passed the evaluation of occupational disease hazard control effects in radioactive drug warehouses; heavy medicine equipment, heavy medicine medical trade, heavy control of Hunan people's livelihood and other units responded, and the entire system purchased 16 new AEDs.

Professional special testing is carried out in key areas such as radiopharmaceutical warehouses, and the passing rate of various indicator tests is 100%. The test results are disclosed to employees in accordance with regulations.

Occupational hazards

Indicator Unit 2023 2024 2025 Notification and warning The company has established and posted hazard notification boards, warning signs and signs on site to remind workers to protect their own health and safety. Detection rate of occupational disease hazard factors % 100 100 100

Qualification rate for monitoring occupational disease hazard factors % 100 100 100

Number of new occupational diseases 0 0 0

Occupational health education and training

The company actively organizes and carries out occupational health education publicity and training activities, requiring all employees to be familiar with relevant laws and regulations and master necessary occupational health protection knowledge and skills.

Can.

Case: "Occupational Disease Prevention and Control Law" Publicity Week Activities

In order to further publicize and implement the "Law on the Prevention and Control of Occupational Diseases", continuously strengthen employees' awareness and ability of self-protection, and effectively protect the occupational health rights and interests of employees, the company

From April 25 to May 1, the company launched the 23rd Occupational Disease Prevention and Control Law Publicity Week around the theme of "Adhere to prevention first and protect occupational health". During the promotion week,

The company widely publicized by hanging banners, posting posters, distributing materials, holding knowledge quizzes and theme lectures 236 times, covering an audience of 10,938 people; according to

Thanks to online platforms such as "Xiaotong iLearning", 8,114 people participated in the study.

103 104

DEVELOPMENT REPORT

Fulfill Duties and Pursue Long-term Progress

Uphold Original Aspiration and Fulfill Sacred Mission

Fulfilling responsibilities and achieving long-term goals

Fulfill the original mission

Contents of this chapter

Practicing Social Responsibility As a leading pharmaceutical commercial distribution company in western China, the company always keeps in mind the social responsibilities of corporate citizens, deepens public welfare practices, and actively responds to the national rural revitalization strategy.

The charity calls for giving back to the public in various forms such as industrial assistance, poverty alleviation, medical assistance, health education, care and condolences, etc., to continuously improve the happiness of the people, and to contribute to the construction of a harmonious society.

Contribute to a harmonious society.

SDGs responded to by rural revitalization

105 106

Fulfill social responsibility

Medical Reserve Supply

As a central and local-level drug and device reserve unit and an emergency medical supplies reserve enterprise, the company carries out drug and device reserve work in strict accordance with relevant national regulations, making every effort to ensure the clinical drug needs of medical institutions and ensuring the supply of shortage drugs. We always adhere to the front line of ensuring people's medication safety, set up a 24-hour emergency hotline for emergency medicines in Chongqing, provide emergency medicine support services to the city 24/7, and actively participate in the construction of the national public health service system and emergency medical treatment support system. We will continue to strengthen our ability to ensure the supply of drugs in short supply, and simultaneously ensure the supply of radioactive drugs.

Fulfill social responsibility

FULFILL SOCIAL RESPONSIBILITY

Charitable medicine donation

Charity

The company cooperates with 98 charitable foundations such as the China Charity Federation, China Red Cross Foundation, and China Cancer Foundation to carry out charity assistance projects. During this reporting period,

The company has added 9 new drug assistance projects, distributed assistance drugs with a total value of 100 million yuan, and served more than 5,000 people. As of the end of the reporting period, Chongyao New Health has launched a total of 165 PHILANTHROPY AND PUBLIC WELFARE

The total value of pharmaceutical aid projects and aided medicines distributed reached 2.4 billion yuan, serving 59,500 patients and 170,500 person-times.

Donation of love

In July 2025, Chongqing Pharmaceutical Holdings Jilin Co., Ltd. donated 500,000 yuan to the Medical Development and Medical Assistance Foundation of the First Hospital of Jilin University.

Outdoor worker service site

Volunteer activities

The company actively fulfills its social responsibilities as a state-owned enterprise, relying on its advantages of having a wide range of pharmacy locations and professional health guidance, with the principles of "quick response, full coverage, emphasis on publicity, strong leadership,

We will further build, manage, and make good use of the "Heavy Medicine Health Station" through the six major characteristics of "delivering love and being healthier". We will take "five combinations, three promotions, and two transmissions" as our working principles, and strengthen the "nine

In 2025, Chongyao Heping Pharmacy and Chongyao Heping Wholesale will carry out activities such as "Pharmaceutical Service Day", "Peace Health into the Community" and "Summer Delivery of Coolness" as a link to carry out "entering the community and entering environmental management", continuously optimize the "general Chongyao Health Station" in terms of operation mode and management model, and continue to provide health guidance in addition to solving the basic medical needs of outdoor workers.

Sanitation workers walked into office buildings. During the reporting period, more than 1,000 activities were carried out, more than 58,000 customers were served, and more than 1,100 condolences were given away.

and services.

Shape the "Tongxiaotuan" youth volunteer service business card, allowing young people to cultivate their talents in hot practice. Through the "Heavy Medicine Youth Volunteer Service Team" brand series activities, we will enrich the connotation of the "Tong Xiao Tuan" youth volunteer service era, regard volunteer service as an important starting point for young people to carry forward Lei Feng's spirit and practice the core socialist values, and give full play to the practice of volunteer service to educate people

There are more than 500 "General Heavy Drug Health Stations" open continuously, covering Chongqing, Sichuan, Gansu, Beijing, Anhui, Hunan, Liaoning, Ningxia, Shaanxi, and Hubei

function. Through public welfare activities such as "health free clinics" and "entering the community", we have done a series of volunteer work such as "Kang Xiaoqing", "Hong Xiaoqing", "Zhi Xiaoqing", "Young Xiaoqing", "Meng Xiaoqing", "Jie Xiaoqing" and "Fa Xiaoqing"

10 provinces, providing services to nearly 150,000 people.

There were 475 service activities, involving more than 4,600 employees, enhancing the social influence of the "Tongxiaotuan·Chongyang Youth Volunteer Service Team" brand, and leading young people to practice and grow on the front lines of rural revitalization, at the forefront of green development, and around the people in the community.

Chongqing Pharmaceutical Health Station Chongqing Anhui Company Volunteer Service Team teamed up with the Nanyan Lake Neighborhood Committee to carry out a "Learn from Lei Feng" law popularization theme volunteer activity

107 108

rural revitalization

Chongyao Heping Pharmacy, together with Chongqing Ailekang and Chongqing Blood Center, jointly held a group day event with the theme of "Carrying forward the spirit of Lei Feng and practicing volunteer service"

Heavy Drugs and Special Drugs Volunteer Service Team｜Volunteer picking up environmental protection to inherit Lei Feng’s spirit. “Jie Xiaoqing” of the Heavy Drugs Sichuan Logistics Group Branch is in action

rural revitalization

RURAL REVITALIZATION

The company thoroughly implemented the national rural revitalization strategy and comprehensively carried out consumption assistance work. 960 employees including Hunan and Hubei Dingkang visited the countryside to help solve the problem of unsalable agricultural products with practical actions and promote the sustainable and healthy development of the rural economy. During the reporting period, rural revitalization and consumption poverty alleviation totaled 94,302 yuan.

Chongqing Pharmaceutical Logistics carried out the tree planting activity of "Youth and Greenness, Planting Hope Together" Chongqing Pharmaceutical Mingwei Youth League Branch carried out "Clean Xiaoqing·Inherit the Spirit of Lei Feng,

"Lighting up the light of youth" volunteer service activities

Chongkong Anhui Company organized and participated in the "Planting Xiaoqing" tree planting and greening voluntary activities

109 110

Indicator index

INDICATOR INDEX

Indicator Index Global Reporting Initiative

"Companies listed on the Shenzhen Stock Exchange

Report Catalog (Global Reporting Self-Regulatory Supervision Guidelines No. 17 "ESG Initiative, GRI) for Listed Companies Controlled by State-owned Enterprises - Sustainability Report (Trial)" Research on Special Report Preparation" "Sustainability Reporting Standards"

G1.1.1/G1.1.2/G1.1.3/

2-9/2-10/2-11/2-12/

Specification G1.2.1/G1.2.2/G1.2.3/

2-13/2-16/2-18/2-19/

Corporate Governance G1.3.1/G1.3.3 Global Reporting Initiative 2-20/3-3

"Companies listed on the Shenzhen Stock Exchange

Report Catalog (Global Reporting Self-Regulatory Supervision Guidelines No. 17 "ESG of Listed Companies Controlled by State-owned Enterprises")

Initiative, GRI) - Sustainability Report (Trial)》 Research on Preparation of Special Reports》

"Sustainability Reporting Standard"

strengthen

2-23/2-24/2-25 G2.1.1/G2.1.2/Internal Management

/2-26/2-27 Article 51 G5.2.1/G5.2.2 About

2-1/2-2/2-3 / /

this report

2-23/2-24/2-25/ G4.1.1/G4.1.2/G4.2.1/Perfect

Report Preface 2-26/2-27/3-3/ G5.1.1/G5.1.2/G5.1.3/Compliance Construction

207-1/207-2 S4.1.1

Compliance and corporate governance

Chairman of the Board

2-11/2-22/2-23 //

Speech: Corrupt State-owned Enterprises

G3.1.1/G3.1.2/Protection G3.1.3/G3.2.2/

2-12/2-16/201-1/3-3 Article 53

Investor Rights G3.2.3/G4.1.1/

G4.1.2/G4.2.1About us 2-1/2-2/2-6 / /

Abide by 2-27/3-3/205-1/Article 54/Article 55/G2.2.1/G2.2.2/Go

Business Ethics 205-2/205-3/206-1 Article 56 G2.3.2

Chongyang Pharmaceutical Holdings

2025

201-1 Article 19 /

Highlights

persist

// G1.1.4 Party Building Leadership

ESG

2-14/2-22 Article 51/52 G1.1.1

governance system

3-3/101-2/101-4/ E2.1.1/E2.1.2/E2.2.1/

303-2/303-4/305-7/Articles 29 to 33/E2.3.1/E2.3.2/E2.3.4/Environmental Management

306-1/306-2/306-3/ Article 37 E4.1.1/E5.4.2/E5.5.1/

306-4/306-5/413-1 E5.6.1

Respond to the United Nations

/ / /

sustainable

Development Goals Green Leadership E1.3.1/E1.3.2/E1.3.4/

3-3/302-1/302-3/

Deeply build ESG and share a low-carbon future Resource management 3 30 02 3- -4 2/ /3 30 02 3- -5 3/ /3 30 03 3- -1 5/ Article 34 to Article 37 E E1 5. .3 4. .5 2/ /E E5 5. .2 4. .1 4/E5.2.3/Development Foundation

interests

2-12/2-16/2-27/ Article 53 /

Communication with relevant parties

2-29/413-1 E3.1.2/E3.1.3/ Response 3-3/201-2/305-1/ E3.1.4/E3.1.6/

Articles 21 to 28

Climate change 305-2/305-4/305-5 E3.2.1/E3.2.2/

E3.4.1/E5.1.1 Importance

3-1/3-2/3-3 / /

Issue identification

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reader feedback

Global Reporting Initiative

"Companies listed on the Shenzhen Stock Exchange

Report Catalog (Global Reporting Self-Regulatory Supervision Guidelines No. 17 "ESG of Listed Companies Controlled by State-owned Enterprises")

Initiative, GRI) - Sustainability Report (Trial)》 Special Report Preparation Research》 READERS' FEEDBACK

"Sustainability Reporting Standard"

Article 41/Article 42/ S2.3.1/S2.3.2/ Thank you for taking the time to read the 2025 Sustainability Report of Chongqing Pharmaceutical Holdings Co., Ltd. We attach great importance to and look forward to hearing your opinions on the company’s ESG industrial innovation drive 3-3

Article 43 S2.3.3/S2.3.4

Your opinions and suggestions are an important basis for us to continuously improve our ESG work and enhance our sustainable development management. We sincerely invite you to help complete the relevant questions in reader feedback and feedback to us in the following ways. Thank you again for your strong support for our ESG work! Product Safety S2.1.1/S2.1.2/

Article 47

with mass 3-3/416-1/416-2 S2.1.3/S2.2.1

Tel: 023-63910671

Fax: 023-63910671

S2.1.1/S2.1.2/

Customer Service 3-3/418-1 Article 47/Article 48 S2.1.4/S2.2.1/ Email: [email protected]

S2.2.2/S2.2.3

Digital Intelligence Empowerment Address: No. 303 Jinshi Avenue, Yubei District, Chongqing

Create excellence

Service quality 3-3/308-1/308-2/ Article 44/Article 45/ S3.1.1/S3.1.2

Supply Chain Management/S3.2.1/S3.2.2

414-1/414-2 Article 46

/S3.2.3

For Chongyao Holdings, your identity is: Data Security

3-3 Article 48 /

Management □Shareholders and investors □Government and regulatory agencies □Customers □Partners

□Staff □Industry associations and organizations □Community, public and media □Other________ (please specify) Improving medical care

3-3/416-1 Article 40/Article 47 S4.2.2/S4.3.1

accessibility

What is your overall evaluation of this year’s ESG report:

□Very good □Better □Average □Poor □Very poor2-7/3-3/201-1/401-1/ S1.1.1/S1.1.2/S1.1.3/

Guarantee

401-2/405-1/406-1/ Article 49/Article 50 S1.2.1/S1.2.2/S1.2.3/

Employee Rights 2. Do you think the information disclosed in this report is accurate, clear and complete? 408-1/409-1 S1.2.4/S1.3.4/S1.5.2

□very good □better □average □poor □very poor

Gongpu staff training

3-3/404-1/404-2 Article 49/Article 50 S1.4.1/S1.4.2/S1.4.3

Harmony New Chapter and Development 3. Do you think this report is readable?

□Very good □Better □Average □Poor □Very poor 3-3/403-1/403-2/

occupational health

and Safety 403-5/403-6/403-7/ Article 49/Article 50 S1.3.1/S1.3.2/S1.3.3 4. Do you think this report can fully reflect the company’s significant impact on the economy, society, and environment? 403-8/403-9/403-10

□Very good □Better □Average □Poor □Very poorly implemented 5. What is your evaluation of the logical thinking, structural arrangement, and layout design of this report? 3-3/203-1/203-2 Article 38/Article 40 S4.3.1/S4.3.2

social responsibility

□Very good □Better □Average □Poor □Very poor Give back to society

Writing Charity 3-3/203-1/203-2 Article 38/Article 40 S4.3.1/S4.3.2 6. Which issues in this year’s ESG report have attracted your greatest attention? Mission Responsibility

____________________________________________________________________________

Rural Revitalization 3-3/203-1/203-2 Article 39 S4.4.2

What other information would you like to get from the report?

____________________________________________________________________________

Indicator Index // /

What are your opinions on our ESG reporting or ESG work and sustainable development management? Reader feedback // /

____________________________________________________________________________

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