Environmental,Social, and Governance(ESG) ReportGuangdong Marubi Biotechnology Co., Ltd.
Tel: 020-66378685Email: securities@marubi.cnAddress: 6/F, South Tower, Poly Granville
Building, No. 11, Xiancun Road,Tianhe District, GuangzhouPostal Code: 510000
Message from ChairmanAbout Marubi
About the ReportIntroductionThis report is the 2nd ESG Report issued by Guangdong Marubi Biotechnology Co., Ltd. (hereinafter referred to as "Marubi" or the"Company") to stakeholders. It aims to truly reect the Company's efforts, practice, and performance in governance, environmental,social and other elds of responsibilities through objective, standardized, transparent and comprehensive information disclosure.This report mainly covers the period from January 1, 2022 to December 31, 2022, while some contents may extend to the previousyears or reect the policies and practices of year 2023.Report scope and boundariesUnless otherwise specied, this report covers Marubi as well as its branches and subsidiaries. The "Marubi" and the "Company"herein shall mean Guangdong Marubi Biotechnology Co., Ltd. as well as its branches and subsidiaries.
Information descriptionThe data used in this report come from public data of government departments, internal statistical data, administrative documentsand reports of the Company, third-party evaluations and interviews, etc. Unless otherwise specied, the monetary amounts shown inthis report are dominated in RMB. In case of any inconsistency with the data of the nancial report, the nancial report shall prevail.This report is released after being reviewed by the Board of Directors. The Company and all its directors guarantee that there are nofalse records, misleading statements or major omissions herein, and jointly and severally assume the liabilities for the authenticity,accuracy and completeness of the contents hereof.
Preparation processThis report is based on the Company's ESG practice and follows the process of "project approval - collection of materials -preparation and revision - review by senior management - review by the Board of Directors - disclosure to the public". Activecommunications are carried out with relevant stakeholders in the process of project approval, preparation and revision, and otherlinks to discuss the structure and contents of the report.Release form
This report is released in electronic form. You may visit the website of the Shanghai Stock Exchange or the Company’s website (www.marubi.cn) to view it. The Company plans to release it once a year. In the event of any discrepancy between the Chinese versionand the English version, the Chinese version shall prevail. If you have any questions or suggestions about this report, you may sendan email to securities@marubi.cn, or call (020) 66378685.
Preparation basis ●China National Standard Social Responsibility Report Preparation Guide (GB/T 36001-2015) ●Chinese CSR Report Preparation Guide issued by the Chinese Academy of Social Sciences (CASS-ESG 5.0)
●
2030 Sustainable Development Goals (SDGs) of the United Nations
●GRI Standards of GRI (Global Reporting Initiative)
Contents
Company and brand prole04ESG Management11Communication with stakeholders and analysis ofmaterial topicsResponse to the Sustainable Development Goals(SDGs) of the United Nations
Appendix72Key performance tableIndexesComments and feedback
Green Manufacturing:
Injecting New Momentum into the beautyand health industry through Technologies
Committed to green manufacturingFocusing on recombinant collagen
Governanceresponsibility: Pursuitof excellenceImproving corporate governanceStrengthening risk complianceStaying committed to business ethicsProtecting intellectual property with concerted effortKeeping information secure proactivelyExploring intelligent transformation
Environment protectionresponsibility: Greenand low carbonDriving forward environment-friendly constructionConserving energy and reducing consumption for cleanproductionReducing cost and increasing efciency to conservenatural resourcesPromoting low-carbon development philosophy
Social responsibility:
Continued growthPursuing innovation through unremitting R&D effortsKeeping improving the product qualityImproving service with the customer-orientedphilosophyBuilding a harmonious workplace with the people-oriented philosophyAdhering to good health and safety practicesWorking together and joining hands with partnersBoosting community co-construction with a gratefulheart
Message fromChairman
In 2022, the 20th National Congress of theCommunist Party of China mapped out agrand blueprint for building a socialist moderncountry in an all-round way and advancingthe great rejuvenation of the Chinese nationon all fronts through a Chinese path tomodernization, sounding a clarion call of thetimes for a new journey. The Company hasforged ahead with its original intention. Overthe past two decades, we have focused onthe cosmetics industry to find, create, andshare beauty. We are always devoted tobecoming a world-class competitive brand.
Environmental, Social, and Governance (ESG) Report 2022
Guangdong Marubi Biotechnology Co., Ltd.
With China's 14th Five-Year Plan for bio-economydevelopment, the rapidly increasing demand ofconsumers in "medicine", "food", "cosmetics", and"safety" has drawn more attention. Additionally,a number of major changes are brewing inbioengineering and biotechnology. We adhere tothe strategy of "customer first, excellent products,exploitation of market advantages, and preciseoperation", espouse the core business philosophyof sustainable development, and keep up with thetimes to deliver great performance in research anddevelopment, products, brands, and services.
Jointly building a green ecologyWe aim to build a "clean, efcient, low-carbon andcircular" green enterprise and achieve sustainableand green development. At the environment aspect,we implement lean production, costs reducingand efficiency increasing; we actively developand apply green technologies, and continue toimplement energy, natural resources, and emissionmanagement; we promote green operations andgreen development.Persistence in scientic and technological innovationWe believe that technological innovation changesthe world. To control the discourse power of rawmaterials, we lead the industry into the era of"Chinese ingredients". The "recombinant collagen"developed by us is the world's leading anti-agingingredient, which can rival the three leading anti-aging ingredients - Boswellin, A-alcohol, andPeptide. It boasts "the 4th leading anti-agingingredient in the world".
Creating prosperityTo integrate social responsibility into the developmentof our business is our commitment to the commondevelopment and prosperity of the times. We believein the principle of integrity, and always give back tosociety. At the society aspect, we strive for excellencein products to win the trust of customers; we careabout our employees and help them grow, mature andsucceed; we act for love, actively participate in publicwelfare and work together to achieve prosperity.Growth for the good of allThe only way to achieve success is to keep forgingahead and seek win-win cooperation. Believing inlong-termism, we integrate the ESG managementmodel with company operations through activelyputting the idea of sustainable developmentinto practice. In the next 10 years, we will investhundreds of millions of yuan to continuously drivethe development of the industry, rmly practice theESG concept to become an excellent enterprisewith technological innovation as the focus, thebeauty and health of the people as the mission.
Committed to efcient governanceExcellent governance is the cornerstone of acompany's long-term sound operation and healthydevelopment. At the governance aspect, wecontinue to improve the corporate governancesystem, maintain standard operation, improvethe internal control and compliance system, andstrictly observe business ethics. In particular, weprotect intellectual property rights, actively promotedigital construction, and improve overall values tocreate a solid foundation for long-term and sounddevelopment of the Company and safeguardshareholders’ rights and interests in the long run.
CEO of MarubiSun Huaiqing
Courage makes us believe we can challengeadversityBelief is what we developed with enduringcourage over timeWe believe in the power of time, the powerof belief
Growth for the goodof all
Environmental, Social, and Governance (ESG) Report 2022
About Marubi
Company and brand prole
About MarubiSince its establishment in 2002, Guangdong Marubi BiotechnologyCo., Ltd. has been committed to the R&D, production and sale ofcosmetics based on research on "skin science" and "biologicalscience" research. Its brands mainly cover the fields of anti-aging, functional skin care and make-up with differentiated brandpositioning, to meet the needs of consumers of different ages andpreferences. The Company's main brand "Marubi" has been focusingon the anti-aging segment with eye care at the core for 20 years.Known as "Eye Care Master", it has become a leading domesticbrand of high-end and medium-end positioning with a considerablemarket share through its dedicated R&D, rigid quality control andcontinuous brand building, and has been selected by media of theindustry as "TOP 1 anti-aging product" for eight consecutive years.The Company adheres to the principle that quality is the lifeline ofan enterprise, and has been recognized as a "high-tech enterprise"for four consecutive sessions. With a construction area of 50,000square meters and a self-sufciency rate of 70%-80%, its own 5Cfactory was put into operation in 2014. The 5C factory has passedthe ISO 9001 quality management system certification, the USFDA GMPC certication and the EU's ISO 22716 (GMP) cosmeticsproduction certification, qualification certificate of inspection andtesting institutions (CMA) and other certicates.The Company adheres to independent R&D. It is driven by jointR&D both at home and abroad. The Company focuses on skinanti-aging, deeply cultivates beauty and health, and pursues
the development of biotechnology such as genetic engineering,synthetic biology, biological fermentation, and plant extraction. In2022, the Company's own raw material factory and cosmetics testingcompany were fully put into use, achieving a complete scientificresearch link from raw material research and production to productdevelopment and efficacy evaluation, providing strong support forthe closed-loop research and transformation of the Company'score raw materials and technologies in the future. This has laid asolid foundation for the Company to maintain its industry-leadingtechnological advantage. The Company has also worked with anumber of domestic and foreign universities and R&D institutions toconduct multi-dimensional cooperation in research and innovation,and has taken the lead or participated in the compilation of national,industry, and group standards and published academic papers ondomestic and foreign journals many times.The Company has built a multi-channel sales network coveringonline platform e-commerce, content e-commerce, offline dailychemical specialty stores, department store counters and beautysalons. Following the principle of "using the best of the world tomake the best of China", the Company develops high-qualityproducts based on the world's leading technologies, takes the "long-termism strategy" as the guiding direction, focuses on the mission of"technology-driven beauty and health", and adheres to the operationcombining "technology + brand + digital intelligence", aiming to builda globally competitive company.
Brand ecology
Ecological layout of the investment
industry of beauty and health
ChunjiFood extract technology,suitable for sensitive skin
MarubiFocus on eye care,and engaged in anti-agingresearch for 20 years
Passional
LoverExtremely minimalist,cutting-edge makeup foundation
Environmental, Social, and Governance (ESG) Report 2022
Corporate culture
Eighteen views of Marubi
Self-disciplined andcommitted to the society
View ofvalueBe grateful to the society,and act for love
View ofresponsibility
Learn during the lifetime, andapply what we have learned
View oflearning
We will always be with ourcustomers to go throughthick and thin together
View ofcooperation
Professional, attentiveand dedicatedView ofcareer
We are far from perfect,but our pursuit ofperfection will never stopView ofidealView oflife
View ofwealth
View ofenterprise
View ofdevelopment
View oftalent
View ofbehavior
View ofgrowth
View ofsale
View ofservice
View ofcommunication
View ofaction
View ofteam
Origin of "Marubi"
The name "Marubi" comes from a philosophical thinking of orientalaesthetics – roundness is beauty. In Shuo Wen Jie Zi, "Wan" means"roundness", and "Wan Mei" (Marubi) means "roundness is beauty".Vision of MarubiBe a globally competitive company and make the world beautifulMission of Marubi
Drive the beauty and health industry with technology, and use the bestof the world to make the best of China
Guangdong Marubi Biotechnology Co., Ltd.
Environmental, Social, and Governance (ESG) Report 2022
Environmental, Social, and Governance (ESG) Report 2022
Development history of the Company
2002:
The brand of Marubi was born upon theestablishment of the Company and thelaunch of production of the factory
2017:
Marubi invested in Passional Lover(achieved 100% shareholding in 2019)
2022:
Marubi completed the building ofDigitization 1.0 and a digital middleplatform on all sides and achievedwhole life cycle management includingR&D, procurement, production, supply,market, and sales2005:
The total sales volume of Marubi eye careproducts exceeded one million units
2012:
Marubi's third-generation Elastin EssentialDay & Night Eye Essence was released,for which it was the rst time to propose theconcept of doing day and night skincaredifferently
2013:
Marubi was named as "Eye Care Master"A fund of the global luxury group LVMHinvested in Marubi2006:
The brand Chunji came into being,positioned as "skin care products ofnatural ingredients"
2014:
The 5C center of nearly 50,000 squaremeters in Guangzhou Science Cityofcially replaced the old factoryand was put into use, including aR&D center, a manufacturing center,a training center, an informationcenter and an art center, as well asthe world's rst-class workshopsand manufacturing processes,with sophisticated production andR&D facilities imported from Japan,Germany, South Korea and othercountries2008:
The "Better Care Fund" was ofciallyestablished. Under this fund, for everybottle of product sold, RMB0.1 willbe donated to public welfare fromthe income, to support education inunderdeveloped areas
2007:
Marubi created a classic with its rst-generation Elastin Essential Eye Essenceon the slogan "Bounce, bounce, bounce!Bounce off the crow's feet!", which wasupgraded to the fth generation in 2018
2011:
Marubi was awarded the title of high-tech enterprise for the rst time (wonthis honor for four consecutive sessions)
2015:
As a spokesperson of Marubi, TonyLeung Chiu Wai performed "Eye"emotionally, a three-minute phenomenalclassic commercial, which won anumber of awardsMarubi established its subsidiary in Tokyo,launched a Sino-Japanese dual-coreR&D center, and deployed a high-end line
2019:
Marubi's A-shares were listed on themain board of the Shanghai StockExchange, becoming "the rst eyecream stock in China"2020:
Marubi proposed the product concept of two-in-one skin care X instrument, and launcheda two-in-one skin care X instrument withblack technology – Multiple Peptide Anti-Wrinkle Eye Cream, marking the brand'sfurther evolution towards rejuvenation andscientic technology
2018:
MARUBI TOKYO Japanese Sake AgeRenewal Fresh Serum, the rst high-end line for imported Marubi Tokyo withthe original packages was launched
2021:
Marubi released a kind of recombinanthumanized collagen co-created with JinanUniversity and the National EngineeringResearch Center for GeneticallyEngineered Drugs, and applied it toMarubi’s Recombinant Collagen series
Guangdong Marubi Biotechnology Co., Ltd.
Environmental, Social, and Governance (ESG) Report 2022
Environmental, Social, and Governance (ESG) Report 2022
ESG Management
Communication with stakeholders andanalysis of material topicsMarubi takes a positive attitude to check the impact of the Company's operation on various stakeholders, establishes multipleeffective communication and response channels, and establishes close relations with stakeholders to achieve win-win situation.
Qualications and honorsCore qualications or honors
●National High-Tech Enterprise
●National Intellectual Property Demonstration Enterprise ●CMA Qualication Certication ●Guangdong Bio-Skincare Engineering TechnologyResearch Center ●Guangdong Enterprise Technology Center ●Guangdong Excellent "Specialized and New" Small andMedium-sized Enterprise
●Guangdong Innovative Small and Medium-sized Enterprise ●Special Prize of Scientic and Technological Progress Awardsof Guangdong Cosmetics Society
●Postdoctoral Innovation Center of Huangpu District, Guangzhou ●Guangzhou Green Factory ●Guangzhou Cleaner ProductionEnterprise ●China Patent Award - Three ExcellenceAwards
National Intellectual PropertyDemonstration Enterprise
Guangzhou Green FactoryCMA Qualication Certication
Blue Rose Award 2022 Star Product - Marubi
Multiple Peptide Anti-wrinkle Eye Cream
New Makeup Award Annual Popular Makeup -
PL "Invisible Liquid Foundation"
New Makeup Award 2022 Powerful Brand - MarubiNew Makeup Award 2022 Innovative Brand - Chunji
StakeholderIssuesCommunication and responseGovernment and regulatory
authorities
●Operational compliance
●Corporate governance ●Emission management ●Economic benets
●Institution inspection ●Ofcial correspondence ●Policy implementation ●Information disclosureStockholders and investors
●Corporate governance ●Economic benets ●R&D and innovation
●General meeting of shareholders ●Information disclosure ●Roadshow
Consumers
●Product quality and safety ●Service quality ●Chemical safety ●Responsibility marketing
●Quality management
●Customer service ●Satisfaction survey
Employees
●Employees’ rights and benets
●Occupational health and safety
●Employee training anddevelopment
●Internal communication platform
●Employee appraisal andpromotion ●Employee trainingSuppliers/distributors
●Supply chain management ●Anti-corruption ●Raw material procurement
●Supplier management
●Green procurementCooperation organizations(Public welfare organizations andresearch institutions, and so on)
●Product quality and safety ●Chemical safety ●R&D and innovation
●Investigation and visit ●Technical exchange ●Regular meetingIndustry associations
●Industry cooperation ●R&D and innovation ●Product quality and safety
●Industry forum ●Exchange and mutual visit
Public and community
●Community service ●R&D and innovation ●Greenhouse gas emission ●Raw material procurement
●Community activity
●
Voluntary service
Guangdong Marubi Biotechnology Co., Ltd.
Communication with Marubi’s stakeholders
Environmental, Social, and Governance (ESG) Report 2022
Response to the Sustainable DevelopmentGoals (SDGs) of the United NationsMarubi aims to become a globally competitive brand. The Company integrates ESG concepts into business operations to achievesustainable development management, and actively responds to the SDGs.In order to continuously improve ESG management, the Company identifies material issues and forms material issue librarythrough three steps: issue identication, issue ranking, and material issue conrmation, which will help the Company carry out ESGmanagement construction, information disclosure, and continuous communication with stakeholders in the future.
Issue identicationIssue ranking
Material issueconrmation ●Identify and summarizeESG-related issues byreferring to domestic andinternational standards andmacro policies and basedon industry focuses andtrade practices.
●Determine signicanceand impact of each issueby taking into accountthe experts’ commentson basis of survey ofstakeholders and internal &external views.
●Recognize material issuesthat could signicantly affectthe environment, society, andeconomy according to analysisresults, and provide specicresponse to these issues in thisreport.
SDGsMarubi action in 2022Corresponding chapter or section
●Care about the physical and mental health of employees, carry outcomprehensive occupational hazards monitoring every year, and allemployees take physical examination.
●Adhering to good health and safetypractices ●To promote the education development, Marubi has been giving supportsto Chongqing University of Technology and educators in the long run andhas donated RMB500,000 as student grants.
●Boosting community co-constructionwith a grateful heart ●The company always advocates and adheres to gender equality,employment diversity and other concepts, and strives to create a fair,respectful and diverse working environment. Female employees accountfor 66.23%.
●Building a harmonious workplacewith the people-oriented philosophy ●Improve the building of the factory sewage treatment station, reducewaste water discharge, actively carry out water-saving projects, andimprove the comprehensive utilization efciency of water resources.
●Conserving energy and reducingconsumption for clean production ●Reducing cost and increasing efciencyto conserve natural resources ●Carry out the rooftop distributed photovoltaic power generation renovationproject to achieve energy saving and emission reduction.
●Conserving energy and reducingconsumption for clean production ●Respect the employees’ rights and interests, establish a comprehensivesalary and welfare system, provide a diverse growth platform, and provideemployees with an inclusive and comfortable workplace environment. ●Forced labor and child labor are prohibited.
●Building a harmonious workplacewith the people-oriented philosophy ●Emphasize investment in research and development, establish a globalopen partnership system, and engage in interdisciplinary practice andmake creative breakthroughs.
●Green manufacturing ●Pursuing innovation throughunremitting R&D efforts
●Adhere to the principle of open recruitment, fair competition and merit-based employment, insist on equal employment and oppose all forms ofemployment discrimination.
●Building a harmonious workplacewith the people-oriented philosophy ●Emphasize interaction and communication with consumers, carry outmarketing activities in principle of responsibility, and advocate rationalconsumption and scientic skin care. ●Follow the concept of green procurement, purchase and use raw materialswith less impact on environment.
●Improving service with the customer-oriented philosophy ●Working together and joining handswith partners ●Explore synthetic biology and green manufacturing technology to pursuegreen and low-carbon development. ●Actively promote energy-saving technology transformation, reduce emissionsof three wastes (i.e., waste gas, waste water and waste solid), and integrateenvironmental protection concepts into daily operations.
●Green manufacturing ●Conserving energy and reducingconsumption for clean production ●Prohibit any form of corruption and bribery, request all relevant parties tosign a commitment letter on integrity and self-discipline, and strengthen thepromotion of integrity and self-discipline awareness.
●Staying committed to business ethicsMarubi’s response to SDGsMarubi materiality matrixImpact on Marubi
Stakeholders’ concern
Community service
Employees’ rightsand interests
EnvironmentCorporate governance
Responsibility marketing
Employee trainingand development
Intellectual property
Occupationalhealth and safety
Risk and complianceAnti-corruptionEnvironment policyEnvironment management
Raw material procurement
Industry cooperation
Energy useGreenhouse gas emissionEmission management
Chemical safety
Service qualityCorporate governance
R&D and innovation
Product quality and safety
Supply chain managementResource utilization
Society
Environmental, Social, and Governance (ESG) Report 2022
With the continuous development of science and technology, a number of majorchanges are brewing in the field of bioengineering and biotechnology. Withthe national policy of carbon neutrality and peak carbon dioxide emissions,the National Development and Reform Commission has clearly defined "bio-manufacturing as a strategic key development direction of bio-economy". Marubistrictly implements the guidelines of bio-economy of the National Developmentand Reform Commission and the strategic deployment of green bio-manufacturingof the Ministry of Science and Technology, continues to explore the applicationof biotechnology represented by synthetic biology and genetic engineering inbeauty and health industry. Through the mutual integration of industry-university-research-medicine-inspection, Marubi has conducted research on recombinantcollagen, other green ingredients, and technologies for several years, and hasyielded fruitful results. The key ingredient "recombinant collagen" jointly developedby Marubi and National Engineering Research Center for Genetically EngineeredDrugs has Chinese characteristics. Marubi overcomes the key technical obstaclesin this eld and creates the recombinant collagen with triple helix structure, whichrivals the three leading anti-aging ingredients - Boswellin, A-alcohol, and Peptide,and has become "the 4th leading anti-aging ingredient in the world". The Companyrmly believes that technological innovation changes the world. In the future, theCompany will continue to deepen its research on recombinant collagen and othertechnologies, promote the improvement of the industry's green R&D ecology, andpromote the sustainable development of the environment.Committed to greenmanufacturingMarubi is accelerating the construction of green manufacturing system in orderto realize the development and research of environment-friendly technologies.The Company actively takes measures to minimize the impact of productionon the environment and reduce energy consumption. At the same time, theCompany has conducted a lot of technology exploration and summarized atechnology path based on synthetic biology, genetic engineering and biologicalfermentation, together with green manufacturing.
Synthetic biology refers to the use of engineering design conceptsto modify existing natural biological systems according to certainlaws and existing knowledge, or to design and build new biologicalcomponents, devices and systems to achieve the construction ofcell factories. The purpose is to serve humans. Synthetic biologycan be applied in vitro and in vivo. For application in vitro, itrefers to manufacturing products by transforming the existing lifesystem through synthetic biology, which are usually products withhigh added value, but featuring high chemical production costs,high carbon emissions or difficult to obtain in large quantitiesthrough traditional methods. For application in vivo, it refers tomicroorganisms that exert effects in the human body, acting asmedicine after engineering transformation.At present, synthetic biology is developing rapidly, and a numberof synthetic biology enterprises have emerged in fields such asmedical health, chemical and new materials, agriculture, and massconsumption. These enterprises respond to downstream demands,solve downstream pain points, promote product industrialization,and rapidly expand application scenarios.
Synthetic biology
Greenmanufacturing
Environmental, Social, and Governance (ESG) Report 2022
Technology exploration: CelCaper
?directional cryogenicextraction technologyThe extraction and preparation of active ingredients from animalsand plants commonly used in cosmetics R&D mainly rely on solventmethod, ultrasonic-assisted extraction technique, microwave-assistedextraction technique, high-pressure homogeneous extraction technique,microjet extraction technique, and so on, which can help extract targetingredients to some extent, but generally suffer from many drawbackssuch as low extraction efficiency, high energy consumption, localoverheating, and difculties in industrial scale-up.The Company's CelCaper
?directional cryogenic extraction technologyis designed to replace traditional solvents with natural ionic liquids.With high-pressure electric field cell wall-breaking technology, thepermeability of cell membranes and cell walls can be changed at lowtemperature to extract active substances from cells through specic ionicliquids effectively in a directional manner. This enhances the extractionrate of target compounds.
Products using synthetic biology technology account for
27.5
%, covering Marubi's all star products, including RecombinantCollagen series, Elastin series, Polypeptide Protein series, Multiple Peptide series, Chocolate series, as well as the Line Sculpting series,Luxury series, Soft and Smooth Skin series for beauty salons only.
Compared with traditional plant extraction technique, CelCaper
?
directional cryogenic extraction technology has the advantages ofhigh extraction efficiency, short extraction time (in milliseconds), andhigh extraction accuracy, and almost no heat is generated during theextraction process. This technique can retain the most heat-sensitiveingredients in plants while preserving their natural efcacy. Moreover,heating and cooling are not needed during the preparation process, sothe energy consumption is signicantly reduced. In addition, ionic liquidscan effectively replace traditional solvents such as ethanol, and arenatural in origin, mild in nature, and can be applied directly to the skinand products. Therefore, there is no need to set up complex puricationprocesses to post-treat traditional extraction solvents and removeimpurities, thus avoiding the energy consumption and the generation ofwastes, and greatly reducing environmental pollution. The Company'sexploration in this technical route provides the possibility to preparegreen, mild, highly active and high-tech active raw materials, enrichingand upgrading the means of extraction and R&D of biological rawmaterials, and forming an excellent extraction advantage.Notes:
into the beauty and health industry through TechnologiesInjecting New Momentum
Environmental, Social, and Governance (ESG) Report 2022
As the city flower of Guangzhou, bombax malabaricum flower has a long historyof cultivation in South China. It represents Guangzhou's prosperity and vitality andinspires people to serve the country. It is known as "Hero tree in South China, themost beautiful flower in Guangzhou". The Company actively responds to the callof the General Office of the People's Government of Guangdong Province on theissuance of Implementation Plan for Promoting the High-quality Development ofthe Cosmetics Industry in Guangdong Province Yuebanhan [2020] No. 330. In thisImplementation Plan, government encourages enterprises to adopt modern scienceand technology and take advantage of local traditional advantages and special plantresources to manufacture cosmetics, and accelerate the output and transformationof scientific and technological achievements in the cosmetics industry. To achievethis goal, the Company is rooted in traditional plant resources, and makes good useof local advantages to research and develop bombax malabaricum flower extractindependently (bombax malabaricum flower is rich in flavonoid, which is a strongantioxidant, and can be used to prevent cell degradation and aging). The Companyupgrades the extraction technique from traditional ultrasonic-assisted which cangreatly improve the extraction rate, showing an increase of 56.8% in the flavonoidcontent of bombax malabaricum ower extract.
●Determine flavonoid as the targetingredient according to the ingredientcharacteristics of bombax malabaricumower.
●After filtering and treatment, packand store the extracted bombaxmalabaricum ower solution.
●Low extraction rate when water is usedas the extraction solvent. ●Limited production environment andenvironmental pollution when ethanol isused as an auxiliary extraction solvent.
●High extraction rate with self-designedionic liquids for avonoid. ●Natural in origin, mild, and pollution-free.
●Long extracting time and high energyconsumption. External heating is required.A lot of heat is generated during theextracting process, and thus cooling isrequired. ●Heat-sensitive ingredients are inactivatedafter heating, and ethanol removal isrequired before application.
●Short extracting time, high efficiency,and low energy consumption. No heat isgenerated and temperature does not riseduring the extracting process, and thusexternal cooling equipment is not required. ●Heat-sensitive ingredients are notdestroyed, and the post-treatment is easy.
●Design the ionic liquid (consisting of 2- 3 natural components) suitable fordissolving out flavonoid according tothe target ingredient.
●Dissolve the bombax malabaricum flower in theionic liquid, and break cell walls of the ower withthe pulsed electric field (PEF). This step, finishedwithin 2 minutes, generates no heat, and keeps theactive ingredient of avonoid while greatly reducingenergy loss compared with the traditional ultrasonictechnology.
●Dynamically extract the bombax malabaricum ower with broken cell walls. No external heating isrequired for this step, thus keeping the heat-sensitive ingredients in the bombax malabaricum owerto the greatest extent and minimizing energy consumption.
Ultrasonic-assisted water(alcohol) extraction
CelCaper
?directional cryogenicextraction
Extraction solvent
Extracting process
Extraction steps
CelCaper
?directional cryogenic extraction technology has lower energy consumption, less environmental pollution, andhigher extraction efciency compared with the ultrasonic-assisted water (alcohol) extraction technique
Compared with the traditional process, thecryogenic extraction technology increases theextraction efficiency of flavonoid from bombaxmalabaricum ower by 56.8%
Extracting rate (%)
Ultrasonic-assistedwater (alcohol)extractionTechnique name
CelCaper
?directionalcryogenic extraction
Bombax malabaricum ower extractCase:
Kapok extract
Environmental, Social, and Governance (ESG) Report 2022
SchizophyllumSPG structure
SPG preparation process
●
Activate the spawn for axenic culture insuitable conditions to obtain the strongliquid spawn.
●Schizophyllum excretes SPG in the laterstage of fermentation. Extract and purifythe fermentation liquid to obtain thebioactive polysaccharides, SPG.
●Separate and identify the schizophyllumcommune in a sterile environment toobtain the spawn for axenic culture.Separation and identication of spawn
●Inoculate the liquid spawn in a fermenter,and start fermentation by regulating thedissolved oxygen in the fermenter, stirringrate, and other parameters.
Fermentation in fermenter
Preparation of liquid spawn
Extraction of SPG
Compared with the traditional plant extraction method, biologicalfermentation technology has the following advantages:
Technical advantages:
Bacteria, substrates, products and the heat generated by fermentation are easy to diffuse,so that the fermentation can be carried out under homogeneous conditions. The extraction efciency is high and theprocess is easy to control, making it possible to extract target compounds in large volumes. Compared with traditionalplanting, the biological fermentation technology does not require agricultural land and fertilizers, which can greatlydecrease the use of cultivated land, reduce soil pollution, and protect the ecological environment.Production process:
It is easy to extract and refine the fermentation products in a short time without using organicreagents and physical processing, thus greatly reducing wastes and achieving environmental protection during production.Product quality:
The production efciency is high in factory. It is easy to carry out automatic control and the productquality is stable.
SPG features hydration and repairing, with excellent moisturizing, anti-allergy, anti-inammatory, skin repair and anti-wrinkle effects.It can also improve cell vitality. In vivo and vitro tests, SPG is proved to have better moisturizing, repairing, and anti-aging effectsthan hyaluronic acid. As of the end of the reporting period, SPG has achieved mass production.
Formula green upgrading
Formula exploration: Optimization of preparation processTo achieve environmental sustainability, the Company continues to promote formula upgrading while ensuring the improvement ofefcacy. In other words, the Company optimizes the formula preparation process to reduce energy consumption and greenhousegas emissions.
Item typeOptimizationAchievement
Water agent type
The maximum temperature isadjusted from 90°C - 95°C to85°C - 90°C when aqueoussolution is heated.
The material’s dissolution and dispersionare not affected, and heat loss andenergy consumption are reduced. Asof the end of the reporting period, theoptimization has been applied to 135products of water agent type.
Cream type
The minimum temperature isadjusted from 35°C - 38°C to38°C - 42°C when aqueoussolution is cooled.
The cooling time is shortened, so therequired chilled water and energyconsumption are reduced. As of the endof the reporting period, the optimizationhas been applied to 76 products ofcream type.
The efcacy test report: After using the test sample for one week, the skin water contentis increased by 23.38%; after using the test sample for 28 days, the skin water content
is increased by 31.75%
Ingredient discovery: Natural fermentation product -Schizophyllan Polysaccharide (SPG)Schizophyllum is a fungus used for food and medicine. It has sedative effect, and can be used to improve immunity, treatneurasthenia, lethargy, dizziness, tinnitus, sweating, and alleviate sports fatigue. The Company adopts biological fermentationtechnology to generate bioactive polysaccharides - SPG, which is one of the main active substances fermented by Schizophyllum.Its structure is mainly β-(1-3)-D glucan main chain combined with β-glucan of β-(1-6)-D glucose side chain.
Environmental, Social, and Governance (ESG) Report 2022
Focusing on recombinant collagenWith the synthetic biology, ground breaking advances have been made towards overcoming cognitive and technical limitations onrecombinant collagen. As the 4th leading anti-aging ingredient, recombinant collagen is becoming more and more popular becauseof its promising and wide application prospects in many elds such as cosmetics, medical treatment, food, and massive health. Afteryears of research and development of the Company, the recombinant collagen has become a major breakthrough in the global anti-aging technology because of its high activity, high stability and high homology with the amino acid sequence of human collagen.
Green action: Sustainable developmentAs one of the leading listed companies in cosmetics industry in China, the Company has implemented the green bio-manufacturing,which shows the Company’s responsibility. The Company continues to cooperate with the government, enterprises, and industryassociations to promote the green and sustainable development of the industry. During the reporting period, the Company led orparticipated in two provincial-level key green bio-manufacturing special projects, held the synthetic biotechnology and green bio-manufacturing forum, and took the lead in drafting and releasing the Determination of Anti-Allergy in Cosmetics – Zebrash EmbryoMethod and the Evaluation of Antioxidant Activity in Cosmetics – Caenorhabditis Elegans Assay and other group standards (Formore information about caenorhabditis elegans assay, see the section Animal welfare).
In the future, the Company will continue to focus on the biosynthesis, process research and industrialization of functional proteins,active products and other bioactive substances that are useful for health and beauty, and keep expanding business in the eld ofbeauty and health, and provide greater support for the massive health industry.
The Company has launched the green bio-manufacturing projects from the key research and development programs of theDepartment of Science and Technology of Guangdong Province, which are Green Biomanufacturing Key Technology andIndustrial Application for Advanced Cosmetic Ingredients and Green Biomanufacturing Key Technology and Industrial Applicationfor Recombinant Proteins, Antibodies and Polypeptide Medicines, respectively. The purpose is to study the transformation of rawmaterial sources from plant extraction to microorganism preparation production through synthetic biotechnology and green bio-manufacturing technology, with a focus on overcoming the difculty in the green bio-manufacturing of major functional compounds.
The 6th China (Baiyun Meiwan) International Summit Forum onCosmetics in 2022 is held in Guangzhou. The Company heldthe sub-forum - synthetic biology and green bio-manufacturingforum, and invited many industry leading experts and corporateR&D leaders to conduct academic exchanges and discussionson cutting-edge green manufacturing technologies, industrytrends and development. The Company aims to build aninnovation exchange platform centered on key technologies inthe synthetic biology field, and promote innovative and high-quality development in this eld.
Green Biomanufacturing Key Technology and Industrial Application for
Advanced Cosmetic Ingredients Kick-Off Meeting
Green Biomanufacturing Key Technology and Industrial Application forRecombinant Proteins, Antibodies and Polypeptide Medicines Kick-Off
Meeting
Synthetic Biology and Green Bio-manufacturing Forum
Type I collagen has strong supporting effect
Loss of collagen and skin support with age
Type III collagen improves skin elasticity
Collagen is a family of 28 subtypes of collagen, which performs many important tasks in the human body, includingsupporting the human body. About 70% of the proteins in human skin are collagen, of which two types are widelymentioned and used for important functions: Type I collagen and type III collagen. Type I collagen accounts for 80% ofthe total collagen in the adult skin and supports the skin with tree-like bers. Type III collagen is elastic with a networkstructure. After adulthood, type I collagen and type III collagen start to lose, and the ratio of the two types of collagen is outof balance, leading to skin aging. Therefore, supplementing the skin with additional type I and type III collagen can keepskin elastic to lessen wrinkles and slow skin aging.
Type I collagen and type III collagen
Young skinOld skin
Key research and development programs of the Department of Science andTechnology of Guangdong Province - green bio-manufacturing projectsCase:
Synthetic biology and green bio-manufacturing sub-forumCase:
Notes:
●Collagen ●Fibroblast ●Fibroblast ●Collagen
Environmental, Social, and Governance (ESG) Report 2022
According to the preparation process, collagen can be divided into recombinant collagen and animal-derived collagen,among which animal-derived collagen is still the mainstream in the global collagen market. Due to the large molecularmass of natural collagen, with an average of more than 100,000 Daltons (D), it is difcult for the human body to directlyabsorb the natural collagen. However, the extraction of uniform, stable, and highly active collagen from animals requireshigh technical requirements. Moreover, there are animal-derived sensitization and the residue of cytotoxic substances suchas acids, alkalis, and organic reagents during the extraction process, which may impact the efcacy of collagen.With the breakthrough in genetic engineering technology, recombinant collagen is of high stability, high safety, small molecularmass, and is easy to absorb. It has been gradually applied to end products in the elds of medical health and medical beauty.Since it is difcult for the engineering cells prepared by gene recombination to form a complete triple-helical structure similarto that of natural collagen when fermenting, representing, and producing collagen and its analogues, the biological activityand structural optimization of recombinant collagen are still the focus of the industry's research and development.
Recombinant collagen
Recombinant collagen
Marubi’s self-developed recombinant collagen exhibits a triple helix structure highly similar to that of natural collagen, with a 1:1ratio of chimeric amino acid sequences of type I and type III collagen functional structures, which overcomes the difculty that thetwo types of collagen cannot be absorbed simultaneously. The R&D and utilization of recombinant collagen shows the Company’scontinuous efforts to overcome difculties in researching and developing recombinant collagen.
The 3D epidermal model is a 3D model in vitro constructed by using recombination in vitro technology. The model takeskeratinocytes as seed cells. This model has a complete epidermal stratied structure, which is highly similar to human skin andhuman epidermal lipid. The model can be used as a barrier, and can be used as a substitute for human skin to test the sample’sefficacy, safety, and absorbency. The experiment adopts the surface administration method. Apply the product containingrecombinant collagen (fluorescent labeling) evenly on the surface of the 3D skin model, and check the penetration amount(uorescence intensity) and penetration depth (uorescence distribution) of the recombinant collagen in the skin model at differenttime points to test its transdermal absorbency.The result shows that the transdermal penetration of the recombinant collagen independently developed by the Company is detectedafter 0.5 H, 2 H, 12 H, and 24 H, and the transdermal penetration of the recombinant collagen at any time point above is signicantlyhigher than that at the last time point. It indicates that the recombinant collagen has good penetration and the amount of penetrationincreases with time.
Spatial structure of recombinant collagen synthesized by the
Company (predicted by AlphaFold)3D skin model: EpikutisHuman skinIOD (compared with the last time point)
Xiong Sheng, chief scientist of Marubi recombinant collagen andprofessor of Jinan University, introduces the features of Marubi
recombinant collagen
●The recombinant collagenhas the amino acid sequenceidentical to the domainsequence of type I and typeIII collagens, therefore havinghigher safety.
●With AlphaFold, Google’s AIsystem about protein folding,it is found that "recombinantcollagen" has more triple-helical structures. ●Through the unique patentedtechnology, Translation SuspensionTechnique and C-PRO ClaspinTechnique, stability and activityof recombinant collagen can beimproved, and the stable triple-helical structure can be easilyformed.
0302
The technicaladvancement ofrecombinant collagen
The 3D epidermal model experiment shows the transdermal absorption of Marubi’srecombinant collagenCase:
Notes:
Recombinant type I and type III humanized collagen
Environmental, Social, and Governance (ESG) Report 2022
Signicantgrowth of brandvolume
Ingredient promotion to drive thedevelopment of the industryThe Company actively promotes the reformand application of recombinant collagenin the daily chemical industry, and workstogether with China Anti-aging PromotingAssociation and Guangdong CosmeticsSociety to formulate five standards forthe application of recombinant collagen.The standards cover multiple applicationfields, and provide a good example inensuring the industrial standardization ofrecombinant collagen, the improvement ofindustry standards, the promotion of branddevelopment, and the promotion of the rapiddevelopment of the entire industry.The Company also shares the latest researchresults and applications of recombinantcollagen by holding forums and meetings topromote industry technology upgrading andinnovation:
2021 Marubi biotechnology anti-
aging innovation forumReleased the "anti-aging secret" - recombinantcollagen, of which the amino acid sequence inthe functional and structural domain is 100%similar to that of human body's collagen.
March 20, 2021
Marubi recombinant collagen series new
product launchWith the topic of "collagen" making you younger,"appraisal team" composed of 21 experts fromfamous universities at home and abroad wasinvited to reveal the secret of anti-aging by"exploration", "creation", "construction", "secretrevealing" and "interpretation".
October 8, 2021
Held the 2nd recombinant collagen anti-agingforum, explored the transformation and industrialapplication of biotechnology represented bygenetic engineering and synthetic biology in thebeauty and health industry, and gave guidanceto beauty lovers and consumers on skin care,and injected new momentum into the beauty andhealth industry in China.
October 15, 2022
Guangdong Marubi Biotechnology Co., Ltd.
The Company held the 2nd recombinant collagen anti-aging forum, invited leading experts and scholars at homeand abroad to conduct in-depth discussions on difficulties inthe research and development of recombinant collagen, tospecify the direction of development and to give professionaladvice for newcomers who want to make efforts in the eld ofrecombinant collagen. At the forum, the Company announcedthe ofcial establishment of an integrated collaborative platformof "industry-university-medicine-research-inspection" forrecombinant collagen. By internally establishing a completesystem covering basic research, application development,medical testing, pilot test, and application promotion, andby externally leveraging the scientific research resources ofuniversity-medicine-research-inspection, the Company aims toempower the entire industry chain of recombinant collagen.
The 2nd recombinant collagen anti-aging forum
Against the backdrop of continuous iteration of recombinant collagen technology and growing demand for skin care, the Companydoubles its efforts to produce recombinant collagen. In the meantime, the consumers are increasingly aware of recombinantcollagen’s skin benets. What’s more, the penetration rate of recombinant collagen is further increased. All these factors contributeto the great prospects of the collagen market. In addition to industry exchanges, the Company will continue to publicize and promotethe recombinant collagen and explain the efcacy for consumers. During the reporting period, the Company released the Anti-agingSkincare Trend White Book jointly with Tmall Innovation Center (TMIC), Mei Tmall, and other organizations, which deeply introducedthe recombinant collagen from three aspects, including current development status and trend of the cosmetic and skincareingredient market, advanced anti-aging demand, and Chinese self-developed ingredient and technical development trend. Besides,the Company has released science popularization tweets about recombinant collagen through WeChat public accounts of Marubiand other brands of Marubi, further promoting popularization of recombinant collagen.
The Company initiates the "The Great Chinese Ingredients" IP project with Ocean Engine, Harper's BAZAAR, Chinese cosmeticsbrands, and more than 50 stars and experts. Relying on its strength in skin-care ingredients, the Company helps consumersdiscover great Chinese skin-care ingredients. Taking into account the features of the platform, the Company visually communicatedwith its customers at different dimensions and levels to guide their mental cognition, to spark discussion, and to promote the overallunderstanding towards skincare ingredients.
The 2nd recombinant collagen anti-aging forumCase:
The Great Chinese IngredientsCase:
Environmental, Social, and Governance (ESG) Report 2022
Governanceresponsibility:
Pursuit ofexcellence
Marubi continues to improve the corporate governance level, adhere tostandard operation, strictly observe business ethics, protect intellectualproperty rights, and improve its overall values, creating a solidfoundation for long-term and sound development of the Company, andsafeguarding shareholders’ rights and interests in the long run.
Our actions:
●Optimize corporate governance, improve information disclosure andcommunication with investors ●Improve internal control compliance systems, and strengthen constructionof business ethics ●Complete building of digitization 1.0, and create featured digitaltransformation solutions
Environmental, Social, and Governance (ESG) Report 2022
Improving corporate governanceThe Company continues to improve the corporate governance structure and enhance the regulated operation level in strict accordancewith theCompany Law of the People's Republic of China, the Securities Law of the People's Republic of China, theTrading Rules ofShanghai Stock Exchange, theCode of Corporate Governance of Listed Companiesand other laws and regulations as well as therequirements of China Securities Regulatory Commission ("CSRC"), Shanghai Stock Exchange and other regulatory authorities.The Company has established a regulated and orderly corporate governance structure as required, formulated correspondingrules of procedure and claried the duties and authorities, procedures and obligations of the bodies at all levels in decision-making,supervision and implementation. With these efforts, the Company has formed a governance mechanism featuring clear distributionof powers and responsibilities, scientic decision-making, effective checks and balances as well as mutual coordination between thebodies at all levels, with the aim of effectively safeguarding the legitimate rights and interests of the Company and shareholders.
Information disclosure managementGovernance mechanism
The Company performs the information disclosure obligation in a true, accurate, complete, timely and fair manner in strict accordance
with the relevant requirements of the applicable laws and regulations and of the Articles of Association and the Disclosure Management
System of the Company. The Company stays committed to improving management level and quality of information disclosure, and
safeguarding rights and interests of investors. The Company has strictly observed insider trading rules, formulated the System for
Registration and Management of Insiders Who Have Access to Insider Information. The Board of Directors is solely responsible for
validity of insider information management. Moreover, to avert, reduce and standardize affiliated transactions, the Company has
formulated the Affiliated Transaction Management System, stipulating review, withdrawal, and decision-making rules of affiliated
transactions, and guaranteeing fairness of the Company’s afliated transaction decisions to all shareholders.
About shareholders and the general meeting of shareholders
About directors and the Board of Directors
About the Company and controlling shareholders
About supervisors and the Board of Supervisors
According to the relevant laws, regulations, and the provisions and requirements of the Articles of Association, the Company has formulatedthe Rules of Procedure for the General Meeting of Shareholders and established a relatively complete system for the general meeting ofshareholders. The general meeting of shareholders is composed of all shareholders, and is the highest authority of the Company. Duringthe reporting period, the Company held an annual shareholders' general meeting and an extraordinary shareholders' general meeting. Theprocedures for convening and holding the general meeting of shareholders comply with the relevant provisions of the Company Law of thePeople's Republic of China, the Articles of Association, and the Rules of Procedure for the General Meeting of Shareholders.
The Board of Directors is the decision-making body of the Company, and is responsible for and reports work to the general meeting
of shareholders. The Board of Directors of the Company is composed of 9 directors, including 3 independent directors. During the
reporting period, the Company held 4 meetings of the Board of Directors, and all directors attended the meeting. The directors of the
Company are able to perform their duties with loyalty, care and due diligence. The procedures for convening and holding the meetings
of the Board of Directors comply with the relevant provisions of theCompany Law of the People's Republic of China, theArticles of
Association, and theRules of Procedure for the Board of Directors of the Company.
The Company's Board of Directors has the Strategy Committee, Audit Committee, Remuneration and Appraisal Committee, and
Nomination Committee. Each committee has three members. The special committees have formulated the work rules and perform the
duties in accordance with the work rules.
With the independent and complete main business and the ability to conduct self-management, the Company is independent of controllingshareholders in respect of personnel, assets, business, institutions and nance, and can independently operate and bear responsibilitiesand risks. The controlling shareholders of the Company exercise and assume their rights and obligations according to law.
The Board of Supervisors of the Company is composed of 3 supervisors, including 1 staff representative supervisor. The Board of
Supervisors is the supervisory body of the Company, supervises and checks the nancial position and the performance of duties by the
directors, general managers, and other senior ofcers of the Company to safeguard the legitimate rights and interests of the Company
and shareholders. During the reporting period, the Company held 3 meetings of the Board of Supervisors. The procedures for convening
and holding the meetings of the Board of Supervisors of the Company comply with the relevant provisions of theCompany Law of the
People's Republic of China, theArticles of Associationand theRules of Procedure for the Board of Supervisors of the Company.
General meetingof shareholders
Board of Directors
Board of SupervisorsOfce of the Boardof Directors
Strategy CommitteeNomination CommitteeAudit Committee
Remuneration andAppraisal Committee
Senior managementESG ImplementationCommittee
Audit MonitoringDepartment
Corporate governance structure
Meetings of 2022
Investor relations managementAttaching great importance to the investor relations, the Company has formulated the Investor Relations Management System, andproactively conducted communications in time. The Company has sent relevant information to the capital market and the investorsthrough multiple channels, including performance presentation, investor research, investor hotline, investor email, and SSEE-interaction to safeguard the investors’ right to know.
MeetingFrequency of meetingAttendance rateMeeting of the Board of Directors4100%Meeting of the Board of Supervisors3100%Meeting of the Strategy Committee1100%
Meeting of the Audit Committee4100%Meeting of the Nomination Committee2100%Meeting of the Remuneration and
Appraisal Committee
1100%
Environmental, Social, and Governance (ESG) Report 2022
Performance presentation
Plaque of Enterprise Anti-fraud AllianceLive broadcasting of ZhangleFortune Path of Huatai Securities
Strengthening risk compliance
Staying committed to business ethics
The Company has set up the Audit Monitoring Department which comes under management of the Board of Directors. With threefunctions in total, which are internal control, audit, and supervision, the Department provides an all-around supervision managementsystem to the Company’s business at all levels. The Company has built an effective risk and internal control management system inaccordance with relevant laws, regulations, and internal requirements such as the Audit and Supervision System, the SupervisionManagement System, and the Internal Audit System. The Company reviews its internal control procedures every year and evaluatestheir effectiveness to improve its internal control system and internal management level on an ongoing basis. During the reportingperiod, the Company has updated 820 internal control items (including appendixes).In accordance with the principles of objectivity, policy, and prevention orientation, the Company has independently conductedaudit and supervision on operations and internal control of itself and its subsidiaries, covering internal control, external control,communications, and all business chains. The Company has made rectications in time for issues detected (if any) during audit, topromote its business toward high-quality development.To reinforce risk management, the Company has convened the "Audit Rectication Solution Closing Meeting 2021", the "Audit IssueRectication Management System Training Meeting", and the "Internal Control Management System and Manual Update TrainingMeeting 2022". Heads, persons in charge and internal control coordinators of each department, 104 persons in total, attended suchmeetings. The training themed "Internal Control Knowledge Sharing" and "Unauthorized Access to Condential Information CaseSharing" has been launched on the online learning platform of Marubi Academy, and 323 persons attended the training.
Marubi stays committed to creating a healthy and clean workenvironment, and forbidding all forms of corruptions and bribes.To push forward the Company’s anti-corruption and integritywork and build a long-term supervision mechanism that no onehas the audacity, opportunity, or desire to become corrupt, theCompany has set up the Supervision Management System,the Honesty and Self-discipline System, and the Complaintand Reporting Management System, defined the "red linefor honesty", reinforced honesty management on suppliers,distributors and other partners, and set up a commercial fraudcomplaint and reporting channel and handling mechanism.Honesty management
Whistleblowing
The daily anti-corruption of the Company is conducted through the combination of auditand supervision. Any fraudulent practice clue found during an audit should be handedover to the supervisory personnel for investigation. The supervisory personnel also shouldview and register the fraudulent practice clue in time. With both the audit and supervisionefforts, the Company has steadily advanced the work on honesty risk prevention andcontrol. During the reporting period, the Company proactively promoted anti-corruptionmanagement, organized and required the staff to execute the Honesty and Self-disciplineCommitment of Staff, the suppliers and distributors to execute the Honest CooperationAgreement, and the bidders to execute the Honesty and Self-discipline Commitment forBidders, and publicized the Honesty Statement on the construction project site, to promotethe business ethics. Moreover, the Company has joined the Enterprise Anti-fraud Alliance,made full use of the blacklist information sharing system of the Alliance, and strengthenedtalent review and supplier introduction, to keep out dishonest persons and organizationsand reduce risks of frauds.
The Company provides whistleblowing channels such as hotline, email, WeChat public account, and letters, and publicizes honestythrough OA, WeChat public account, and its ofcial website, to inspire its staff, clients, suppliers, and partners to report corruptionunder the real name or anonymously. Moreover, the Company has formulated the Complaint and Reporting Management System,stating rights of whistleblowers, e.g., petitioning for recusal, result inquiry, request for protection, and obtaining rewards.Channels for accepting reports are managed by specific personnel. The Company keeps the information of the whistleblowersstrictly condential, and protects their legitimate rights and interests according to law.
During the reportingperiodNo violations of disciplineoccurred
Visit and exchange of investors
Marubi’s red lines for honesty:
●Obtain improper individualinterests by fabricating orconcealing facts ●Ask for bribes ●Abuse power for personal gains ●Use an ofcial seal withoutauthorization or through fraud
●Disclose the Company’ssecret ●Obtain interests throughinternal and externalcollusion ●Obstruct or hinder audit andinvestigation
Reporting channels:
●Reporting hotline (Tel): 020-66378666 (Ext) 385 ●Reporting hotline (Mobile): 18602010151 ●Reporting email: complaint@marubi.cn ●WeChat ofcial account: Honest Marubi ●Address: Audit Monitoring Department, 7/F, SouthTower, Poly Granville Building, No. 11, XiancunRoad, Tianhe District, Guangzhou
Environmental, Social, and Governance (ESG) Report 2022
Honesty educationThe Company continues to promote honesty and self-discipline awareness through posters, OA columns, and articles, to strengthenthe professional ethics of the staff, improve their awareness of honesty, and cultivate a cultural atmosphere that honesty is honorableand corruption is shameful.
Honesty training on the International Anti-Corruption DayCase:
The Company initiatively responded to the call of the Enterprise Anti-fraud Alliance, and conducted honesty training. On December8, the Company provided training to its management and key positions (such as salesmen, purchase personnel, and constructionpersonnel) from key departments, 44 persons attending the training ofine and online. Through the training, relevant theoreticalknowledge about honesty culture, laws, regulations, hazards of frauds, and the Company’s requirements for honesty wereinterpreted in details. With these efforts, a clean workplace environment was built, and the awareness towards the honest culturewas raised, which could encourage the Company’s employees to actively standardize their behaviors at work in future.
Ofine venue of honesty training
Protecting intellectual property withconcerted effort
Keeping information secure proactively
Exploring intelligent transformation
Marubi has established a scientific, systematic and regulated intellectual property management system, and formulated theIntellectual Property Management Measures and the Intellectual Property Reward Measures, to boost the sustainable developmentof the Company. In addition to protecting its own intellectual property rights, the Company also respects other’s intellectual propertyrights. Before making use of trademarks and the like, the Company will conduct a patent inquiry and buy the copyright, avoidinginfringements upon other’s rights. The Company also provides training to cultivate the awareness of protecting trade secrets. Asof the end of the reporting period, the Company has obtained the Intellectual Property Management System Certification, andbeen awarded as the "National Intellectual Property Demonstration Enterprise", the "National Enterprises with Intellectual PropertyAdvantage", the "Enterprises with Intellectual Property Advantage in the Development Zone", and the "Intellectual PropertyDemonstration Enterprise in the Development Zone".
By referring to the ISO 27001 Information Security System and the Cobit5 Information Security System, Marubi has set up an informationsecurity management system that meets the Company’s development needs, industrial supervision requirements, and national laws andregulations. The Company has formulated an overall three-year plan for information security, built a security service system accordingto the cybersecurity protection system 2.0, continuously improved information security management system, strengthened securityawareness and security incident handling capacity of informatization personnel, and deployed relevant security products and third-partysecurity services. Besides, the Company has initiatively promoted training on network data security and personal information protectionthrough emails and online training, to improve the staff’s network security awareness. During the reporting period, the Company hasnished network security risk evaluation and vulnerability scanning. No information security accident has occurred.
Marubi stays committed to continuously exploring diversied digital paths and promoting digital-based construction. The Companyhas ofcially launched its digital transformation in 2020. Through unremitting efforts for three years, the Company has completedthe construction of digitization 1.0 in 2022. The Company has built a middle platform which covers data assets accumulation, datavisualization, and active data pre-warning, and has achieved whole life cycle management including R&D, procurement, production,supply, market, and sales, with 12 internal systems released and 46 types of external data connected.By opening up channels between demand schedule, production and procurement, and inventory, the Company greatly improvesmarketing and production teams collaboration and provides exibility to its supply chain. During the reporting period, the Companyhas achieved 45-day delivery time for key products, and greatly improved the planning accuracy, minimizing the inventory to thehistorically low level. Through promoting longitudinal analysis of the front-end business, the Company effectively grasps industrialtrends, market trends, and category opportunities, and implements precise operation in combination with the consumer portrait.During the reporting period, the Company promoted structured channels and commodities, perfected new product developmentprocedures, upgraded product formula methodology, and promoted building of cloud warehouse.The Company is going to commence the building of a three-year digital transformation 2.0 from 2023, to further strengthenapplication and transformation of the middle platform in each business sector. The Company is also going to gather user assetsthrough collecting and applying data assets, to boost the high-quality development of the Company. During the reporting period, theCompany has completed grading of integration of informatization and industrialization.
2022 digital performance
Data assetsData visualizationProactive data pre-warning
5.2
billion data lines
data analysis pages
automatic pre-warning frameworks
7.40
TB data size17,277analysis indexes
pre-warning indexes
2,219data sets
data sets1,101pre-warning pushes2,216data workows2,216data workows
Environmental, Social, and Governance (ESG) Report 2022
Simplifying and optimizing packing material management by using data modelCase:
The business units lacked unied and systematic management measures, and the degree of association between newand former packing material data was low, making it impossible to reasonably classify these materials. Moreover, packingmaterials of the same size were developed repeatedly, resulting in excessive SKUs or even waste. This lowers theefciency of procurement and production scheduling and increases the costs.As the digital transformation advances, the Company launches the packing material standardization project to supplementand complete basic data for packing material management, standardize design of development procedure, set up businessrules, and reduce SKU quantity.In this process, the Company determines packing material specications and dimensions to be optimized and aggregatedand denes packing material SKU to be removed by applying data modeling and combining actual conditions of business,production, and procurement. 1,300 packing materials SKUs are removed in total, greatly saving energy, reducing waste,lowering cost, and empowering and increasing efciency of supply chain turnover and management.
Cloud warehouse systemCase:
To coordinate management over channels and commodities, maintain market orders, and improve market efficiency,the Company has comprehensively promoted the construction of the cloud warehouse in 2021, and ofcially launchedthe same in 2022. At present, the cloud warehouse system has covered inventories of the Company’s daily chemicalsand department store distributors in China, connecting the production end to the retail end and putting the distributors’commodities under centralized management. Through the global inventory management concept, channels and inventoriesare shared, scheduling and precise control are made under centralized management, resource consumption is reduced,and efciency is improved. In the future, the cloud warehouse system will increasingly cover inventories of beauty salonsand e-commerce channels, achieving commodity sharing and all-channel coverage.In the meantime, the Company has established cooperation with the frontline logistics suppliers, achieving the average3-day transportation for the trunk line of the cloud warehouse, T+2 service time for 80% delivery orders, and directdistribution to terminal stores from the cloud warehouse, optimizing commodity validity period management, and greatlyimproving transportation efciency.
Inventory decreased to historically low level through digital management
The middle platform manages data during the product life cycle from R&D through procurement,
production, supply, marketing, and sales
Guangdong Marubi Biotechnology Co., Ltd.
Patent analysis
Product delivery analysis
R&DPlanningSalesSupply
Retail performanceProduction/inventory
Product marketanalysis
Cream - Total inventoryamountScattering and radiation -Total inventory amountRaw material - Totalinventory amountPacking material - Totalinventory amount
Cream - Stock intotalScattering and radiation-Stock in totalRaw material - Stockin totalPacking material -Stock in total
Product registrationanalysis
Environmental, Social, and Governance (ESG) Report 2022
Environmentprotectionresponsibility:
Green andlow carbon
Marubi stays committed to building a green enterprise featuring"cleanness, high efficiency, low carbon, and recycling" and aims torealize the sustainable and green growth. The Company regards energyconservation, consumption reduction, and low carbon as its importanttasks for long-term growth. The Company has set up a well-establishedenvironment management system, executed lean production, activelydeveloped and applied green technologies, and continued to implementenergy, natural resources, and emission management, to promote greendevelopment of the Company.
Our actions:
●Adhere to energy conservation, technical transformation, cost reduction,and efciency increase ●Carry out clean production, and set an example on green manufacturing ●Advocate green operation, and build an environmentally-friendlyecology
Environmental, Social, and Governance (ESG) Report 2022
Conserving energy and reducingconsumption for clean production
Driving forward environment-friendly construction
Marubi practices green development concepts, regards energy conservation,consumption reduction, and low carbon as key tasks for the growth of the Company inthe long run, and adheres to green production and lean production by conducting all-around actions with respect to energy, pollutant prevention and control, and resourcemanagement, to create a more sustainable future.
Marubi always follows the "four basic principles" to boost energy conservation,emission reduction, consumption reduction, and efciency improvement in productionand operation through concept innovation, technological innovation, and processinnovation. The Company has formulated the Management Manual of Quality,Environment and Occupational Health and Safety to build a resource-conserving andenvironment-friendly society. As of the end of the reporting period, the Company hasobtained the ISO 14001 Certification for Environmental Management Systems andClean Production Certification, and also been awarded as the Guangzhou GreenFactory. The Security Department of the Company is responsible for checking andsupervising the environmental protection management, and effectively implementing theenvironmentally-friendly, energy-saving and emission-reduction concepts and measures.No violations of environmental discipline occurred during the reporting period.Before commencing new projects and reconstruction projects, the Company will takeinto account the impacts on the environment, prepare an environment impact report instrict accordance with laws and regulations, and propose scientic and reliable controlplans and specic countermeasures for pollution sources generated during production,to minimize the adverse environmental impacts.
Low energy consumptionin product useHarmfulless raw materials
Low productionresource demandsLow recycling cost
Energy managementThe Company aims to reduce energy consumption and improve efficiency of energyuse through technical transformation. In the meantime, the Company uses cleanenergy to conserve energy and reduce carbon emission. As of the end of the reportingperiod, the Company has implemented the following energy conservation and technicaltransformation projects, which have positive and continuous environmental benets:
Environmental investmentRMB
3.0007
million
Marubi's four basic environmentally-friendly principles
Renovation of AHU circulating system in purication systemCase:
To improve the disinfection effect in former clean production workshops, ozone is used for disinfection during the non-productiontime. After disinfection, the deposited ozone needs to be diluted by circularly running the AHU of the purification system of thecentral air conditioner. The original system needs to be turned on by hands and the original constant-temperature and constant-humidity system needs to run for 24 H. After updating the control program of the constant-temperature and constant-humiditysystem, the Company implements interlock control of the ozonizer and the constant-temperature and constant-humidity system.With the design of independent control, the ozonizer and the AHU can be started and shut down at xed time, respectively. Aftersetting the system, the sterilization and distinction function can be automatically started after work, and automatically shut down afterreaching the specied time. The AHU can be automatically started before work to activate the production mode in the clean area.After renovation, the running time is reduced, the new system can save up to 60,581 kWh of electricity consumed by the fan everymonth and up to 1,185.92 kWh of electricity consumed by the ozonizer every month, the operating environment is improved for thestaff, the equipment loss is reduced, and the equipment service life is extended.
ProjectContentAchievement
●As the central air conditioners of theCompany adopt the traditional airconditioning mode, all of units startrunning after the air conditioner ispowered on, regardless of the indoorand outdoor temperature. This leadsto energy waste and increasedelectricity consumption and cost.
●After renovation, the automaticclosed loop control system is usedand equipment is updated, whichsaves electricity, stabilizes thesystem, and extends the servicetime of the equipment. As a result,255,091.9 kWh of electricity is savedevery year.
●Electricity is the main source ofenergy for the Company. Accordingto evaluation, the Company boastsa roof space of about 7,400 m
forphotovoltaic power generation.Through the photovoltaic powergeneration renovation project, theCompany saves its investment inelectricity.
●The installed capacity of the projectis 660.06 kW. During the reportingperiod, the generating capacityof the project was 655,185 kWh,which effectively reduces electricityconsumption and indirect emissionof carbon dioxide, and reducesemission of carbon dioxide by 373.65 tevery year.
●Change the sterilization mode ofsome glass bottle packing materialsfrom cleaning and drying to ozone.
●To improve efciency, and save waterand electricity. During the reportingperiod, 1,376.70 m
of water and39,323.28 kWh of electricity weresaved.
Rooftop distributed photovoltaicpower generation renovation
project
Energy conservation andrenovation project of invertercentral air conditioner
Sack lling optimizing project
Energy conservation and technical
transformation project
Environmental, Social, and Governance (ESG) Report 2022
Waste water managementThe Company applies strict control, classified management,and standard discharge of waste water. The Company hasformulated the Sewage Station Operation Instructions andthe Sewage Station Operation System, and implemented 6Smanagement, to regulate and guide the operation processesof the main unit tank of the sewage station and the sludgecultivation. Meanwhile, the Company continued to improveoperation management of the sewage station. With theseefforts, the waste water can be discharged externally only afterbeing treated by the sewage station and reaching the emissionstandard. The Company uses the front-end physico-chemicaland back-end biochemical methods to treat the waste water,signicantly reducing the discharge of each type of waste water.
During the reporting periodProduction waste water11,125
tWaste water emissionintensity
0.06
t/RMB10,000 revenue.
Waste managementThe Company’s waste solid is mainly divided into four types by nature, including therecyclable waste, the non-recyclable waste, the hazardous waste, and the householdwaste. The responsibilities of each department related to waste managementand management procedures are clearly defined according to the Waste ControlProcedures in which collection and disposal requirements for each waste type arestipulated. The hazardous waste is stored in a hazardous waste storage room in thefactory, and is disposed of by a qualied hazardous waste disposal organization.Besides, the Company actively drives forward recycle and reuse of the waste, andpromotes development of recycling economy. For example, the sludge in the sewagestation of the factory is recycled by a third-party organization, and then is made intothe new wall material through sintering; the Company uses recyclable cartons andcontainers in the workshop. During the reporting period, 51 t sludge waste, generatedfrom the sewage station of the factory, was 100% recycled.
During the reportingperiod
Hazardous wastegenerated
1.52
tTransfer and disposal
%
Pollution prevention and controlMarubi commits to observing relevant laws and regulations on pollutant emission management by classifying and treating pollutantsin strict accordance with standards. By continuously improving the management on waste water, waste gas, and waste solid,conducting daily monitoring and regular third-party monitoring, and actively conducting process renovation, equipment update,and waste recycling, the Company reduces waste emissions, and achieves goals of "energy conservation, consumption reduction,pollution reduction, and efciency increase". As of the end of the reporting period, all environmental protection projects constructedand implemented by the Company have been stably operated.Waste gas managementBy introducing advanced equipment and strengthening waste gas emission management, waste gas discharged from the productionof the Company is reduced, lessening impacts on the environment. The waste gas generated during daily operation is small inamount, so the Company adopts the waste gas and dust removal and treatment system, as well as other pollutant prevention andcontrol measures, to ensure that the waste gas emission complies with provisions.
Installation of energy-saving lighting xtureCase:
The Company adjusts the commodity storage andmanagement method by dividing the storage area on the4th and 5th floor of the warehouse into a non-operationarea for storage and a manual commodity distributionarea. The non-operation area is unlit, and the manualcommodity distribution area is lit by energy-saving lamps.While ensuring the adequate light in the operation area, 342unnecessary lamps are removed, saving the 19,206 kWh ofelectricity every year.
Installing energy-saving lamps in manual commodity distribution area
Energy consumption
Energy typeConsumption in 2022
Purchasedelectricity
Naturalgas
4,707,000kWh
228,071m
Photovoltaicpowergeneration inthe park
655,185kWh
Making processedsludge intoenvironmentally-
friendly bricks
Water resourcesThe Company’s water consumption mainly includes the water for raw material, washing water, and cleaning water used in theresearch, development, and production process. The water is from the municipal water utility. The Company actively carries outwater-saving projects and adopts exible production, to reduce water required for raw materials, and improve the comprehensiveutilization efciency of water resources.
Emulsication process optimization and renovation projectCase:
The emulsication process is the main production process ofthe Company, which has direct impacts on product quality,production water and energy consumption. The Companyrenovates the spray and cleaning devices of the boiler unit,and adds a cooling system, to improve the cleaning effect andreduce the cleaning of the boiler unit. Through the project, 385t water is saved, and product turnover and raw material wasteare reduced, with about 5.12 t raw material saved.
Reducing cost and increasing efciency toconserve natural resourcesMarubi keeps an eye on the use of natural resources, and commits to improving utilization of production resources. The Company practiceslean management, continues to improve processes during production, and makes rational use of resources, to improve resource utilization.
Cleaning unit
Environmental, Social, and Governance (ESG) Report 2022
Use of zipper case to reduce tape
Lean production improvement solution
Simplifying sample product packing
Resource usage
The Company treats production resources as the key environmental impact factor for the operation. The Company commits toreducing use of materials, integrating the green and environment protection concept in the product design stage, and phasing in thelow-carbon and environmentally-friendly materials. The Company takes into account recycling or exhibition value of a gift package atthe time of design. During the reporting period, the Company has taken measures below:
During the reporting periodProduction water consumption57,190
t
Water consumption intensity
0.33
t/RMB10,000 revenue.
ProjectEffect
BeforeAfter
Promoting low-carbon development philosophyMarubi actively responds to the national energy conservation and emission reduction policy, advocates green and healthy conceptsand smart life, and passes on the ideals of energy conservation and environment protection.Green ofceTo minimize carbon emission and impactson the environment, the Company’sheadquarters building under constructionis designed according to the three-stargreen building standard and the conceptof sponge city. The Company alsopromotes green office, encouraging itsstaff to build a green workplace by startingwith small steps from themselves.
Green ofce measures:
●Use LED energy-saving lighting equipment ●Promote paperless ofce ●Provide the small-volume bottled water to guests, and inspirethe staff to use their own water cups, to reduce the use ofdisposable paper cups ●Recycle used batteries ●Set up a garbage classication leadership team, formulategarbage classification solution and management system,and put domestic garbage classication into place ●Environment protection tips and training
Event of "Garbage Sorting for a Better Home"Case:
The Company actively responds to the household garbage sorting work in Guangzhou through the following measures: drivingforward the orderly garbage sorting, equipping garbage sorting and collection bins, promoting the xed-point garbage storage mode,giving education and training on garbage sorting, and guiding the staff in garbage classication and disposal.
Garbage sorting trainingGarbage sorting bulletin board
Environmental, Social, and Governance (ESG) Report 2022
Add the microbiological detection method to screenand verify feasible alcohol in advance and reduce thedisinfection of alcohol passing through the equipment
Reduce use of alcohol while ensuring the effectOptimize the production schedule to control theproduction process
Gradually reduce the cream loss rateCancel BOPP bag use on products
Reduce the packing material purchase cost, and
improve the production line environmentUse the buckle type packing box to pack the productReduce consumption of packing tapeUse the zipper type paper box as the packing boxReduce the tape consumptionSimplify the sample product packing mode, and removethe zip lock bag
Save packing material purchase cost, and improve
production efciency
Environmental, Social, and Governance (ESG) Report 2022
Socialresponsibility:
Continuedgrowth
Marubi sticks to the strategies of "customer first, excellent products,exploitation of market advantages, and precise operation", and commitsto responding to concerns and expectations of the staff, suppliers, andcustomers. The Company attaches importance to R&D, strictly controlsquality, and pursues quality products, to win customers’ trust. According tothe "human-oriented" principle, the Company cares about its employees,and creates a systematic career development system, providing a goodenvironment for employees’ growth. The Company cares about the society,takes actions with love, and actively devotes itself to public welfare.
Our actions:
●Deeply engaged in R&D to empower the industry with green biologicaltechnology ●Continue to improve the quality management system to provide qualityproducts
●Provide professional service and perfect solutions to create a pleasantconsumption environment and user experience ●Safeguard the health, rights and interests for the staff to pursue mutualgrowth ●Establish strategic partnership with suppliers for win-win cooperation ●Boost community co-construction, harmony, and goodness
Environmental, Social, and Governance (ESG) Report 2022
Pursuing innovation through unremittingR&D efforts
As the cosmetics market increasingly stresses the producteffect and the brand stresses the quality itself, the innovationability, as the core competitiveness, becomes the cornerstonefor development and the engine for continuous breakthrough ofthe Company. In the last two decades, Marubi has adhered to itsoriginal intentions, focused on anti-aging effects, deeply engagedin research on beauty and health, and embraced innovationswith professional attitude, devotions, and concentrations.R&D innovationIn terms of R&D management, the Company continues to promote innovation and advance the project management system. By settingcomplete, clear, demonstrated and evaluated project cycles, divisions of work, and goals, the Company can learn the progress andissues of the current project in time, make correct decisions, and make a summary of lessons learned during performing each project,to provide reference to subsequent projects and continuously accrue organizational process assets for the department.R&D teamThe Marubi R&D Center has a high-quality talent team, systematic talent training system, and an open and innovative researchplatform. The Company has 93 R&D technicians, 30% of which hold the master’s degree or above. The Company has set up35 experimental platforms, fully building a complete link of R&D modules covering "raw material development - raw materialproduction - formula development - evaluation and testing - intellectual property protection - launch of products onto the market -technical support - open innovation" in the cosmetic technique eld. This provides a strong support to the closed-loop research andtransformation of core raw materials and technologies of the Company in the future.During the reporting period"Elderly expert" from the InternationalHigh-end Talent and Hong Kong, Macaoand Taiwan High-end Talent ExchangeProject of Guangdong
Experts registered in GuangzhouScience & Technology Expert Database
Practice tutor of master candidates of BeijingTechnology and Business University
Assistant engineers of light industryengineering
Senior engineer of light industryengineering
Qquality experts from the cosmeticseld of Huangpu District as wellas Economic and TechnologicalDevelopment District, Guangzhou
Engineer of light industry engineering
open, innovative, scientic,truth-seeking, green, leading,independent, and high-techorientedR&Dconcepts:
●Dermatology, biochemistry, bioscience,materials science, cytobiology, molecularbiology, organic chemistry, fine chemicalengineering, pharmacy, oral medicine, foodscience, etc.
●Biology, chemistry, oralogy, food, medicine,material, etc.
Areas of experts:Research directions:
R&D platform
Product R&D Department
FundamentalResearch Center
Skin Science Team
Active Material TeamHealth Product Team
Intellectual Property Team
Regulation Management TeamTechnology Promotion Team
Analysis and Testing Team
Efcacy Evaluation TeamQuality Management TeamActive Raw Material Team
Technical Service TeamMaterial Planning Team
Pilot Cosmetics Team
HR & Administration Team
Innovation & Research Team
Open Innovation TeamFormula System Team
Primary Care Team
Efcacy Research Team
TechnicalSupport Center
Medical TestingCenter
Pilot Experiment
Center
Open Innovation
Center
ApplicationDevelopment Center
Tokyo Frontier CenterGuangzhou R&D Center
Shanghai Innovation
Center
4 laboratories3 laboratories3 laboratories3 laboratories3 laboratories3 laboratories3 laboratories3 laboratories3 laboratories3 laboratories2 laboratories2 laboratories
Environmental, Social, and Governance (ESG) Report 2022
Guangzhou Marumed Research Co., Ltd.
BIOST Pharmaceuticals (Guangzhou) Co., Ltd.
The R&D Center of the Company has set up a cosmetic testing and evaluation laboratory in 2016, and in 2021, GuangzhouMarumed Research Co., Ltd was officially established. During the reporting period, Marumed Research has obtained CMAqualication from the national testing organization and has been approved to conduct registration and testing about cosmetic safetyand stability, as well as efcacy testing about soothing, repairing, anti-wrinkle, anti-oxidation, and suitability for sensitive skin.
In 2021, the Company established BIOST Pharmaceuticals (Guangzhou) Co., Ltd., aiming to realize production of self-developedraw materials and to boost application of new biological materials in cosmetics, food, and other beauty and health elds. During thereporting period, the Company has obtained the cosmetic production license and implemented mass production of self-developedraw material, SPG, in the BIOST factory.
MarumedResearch
BIOSTPharmaceuticals
R&D incentive
To encourage R&D innovation, the Company builds an innovative R&D mode to reward the employees who made inventions,published articles on a journal, or led individual patents. Through the multi-dimensional incentive system, the Company motivatesindependent innovations of its employees, and improves the overall R&D level.Besides, the Company actively promotes "building power of product with techniques". During the reporting period, the Company hasorganized innovation and research exchanges across departments, such as "Product and R&D Co-creation Exchange" and "R&DSalon", greatly promoting deep integration between techniques and products, and making the Company’s product development alignedwith the techniques and markets. Through these activities, the Company has developed lots of quality products, among which the"Marubi Recombinant Collagen Cream" has been released to the market. This product innovatively breaks the boundary between "oil"and "cream", providing the effects of moisturizing and repairing for skin.
R&D salon
Product co-creation exchangeMarubi Recombinant Collagen Cream
Guangdong Marubi Biotechnology Co., Ltd.
Environmental, Social, and Governance (ESG) Report 2022
●By the end of the reporting period, the Company hasobtained
issued patents in total, including
patents for inventions.
patents forinventions have obtained the China Patent Award -Excellence Award, and
patent has obtained thePatent Award of Guangdong Province. ●During the reporting period, the Company hashad
new patent applications and
newauthorizations.
●By the end of the reporting period, the Company’s researchachievements in fields, such as genetic engineering, stem cell andregenerative medicine, natural phytochemistry, biological fermentationengineering, and high polymer materials, have been published ondomestic and overseas academic journals, with nearly
academicpapers,
of which are published on the SCI. The total impact factor ofthese papers for SCI journals is nearly
(specically, 47.162), witha value of
(specically, 5.895) each.
●During the reporting period, the Company has published
academicpapers, including the High-voltage Pulse-assisted Extraction ofFlavonoids from Kapok Using Deep Eutectic Solvent Aqueous Solutions.This paper, based on the CelCaper
?
directional cryogenic extractiontechnology, was published on the RSC Advances, the journal of theRoyal Society of Chemistry, with an impact factor of 3.789 in 2022. TheCompany also published A Novel Delivery Vehicle for Copper Peptideson the New Journal of Chemistry (NJC), the authoritative academicjournal of the Royal Society of Chemistry, with an impact factor of 3.925.
Guangdong Marubi Biotechnology Co., Ltd.
R&D investment
RMB52.93
million
Design and preparation of optimized protein raw material based on thefunctionally active protein research platformCase:
Marubi has deployed a "functionally active protein research platform". Through independent R&D, industry-university-research,technical cooperation and other modes, with genetic engineering technology as well as big data on structural biology andbioinformatics, the Company has designed and prepared humanized ECM functionally active proteins or high-value animal andvegetable proteins, including recombinant collagen. Through technological upgrading, the Company has also enhanced thetechnological contents in raw materials and products, effectively reduced the cost of raw materials, comprehensively improved theskin care activity of its products, while reducing the use of harmful chemical reagents. These efforts are conducive to building anenvironment-friendly society and realizing healthy and sustainable development.
Marubi laboratory
Compilation of standards led by the Company during the reporting period
Standard typeStandard nameGroup standardLeontopodium Alpinum Extract (Leontopodium Alpinum Group Standard)Group standardDetermination of Anti-Allergy in Cosmetics – Zebrash Embryo MethodGroup standardSapindus Mukorossi ExtractGroup standardHuman Body Test Method for Moisturizing and Oil-Controlling Efcacy of CleansersGroup standardEvaluation of Antioxidant Activity in Cosmetics – Caenorhabditis Elegans AssayGroup standardCosmetic Raw Materials - Prinsepia Utilis Rogle OilGroup standardCosmetic Raw Materials - Recombinant Soluble CollagenGroup standardSkin Anti-aging Ingredients
●
During the reporting period, theCompany has led and participatedin drawing up
standards,including
industrial standard and
group standards. The Companyhas also actively participated in thecompilation of the Blue Book of theCosmetics Industry with the SocialSciences Academic Press.
R&Dachievements
Environmental, Social, and Governance (ESG) Report 2022
Marubi establishes a "graduate collaborative training base" with Jinan UniversityCase:
The Company makes great efforts in talent cultivation withJinan University. During the reporting period, the Company hasestablished a full-time professional degree graduate collaborativetraining base with Jinan University to cultivate graduates, integrateeducation with technology research and development andindustrial development, accelerate the transformation of high-techand scientific research achievements, and cultivate innovativetalents with practical skills. The Company signs an agreement withthe College of Life Science and Technology, Jinan University tojointly build a practice and training base outside college for collegestudents. Since 2017, Jinan University has regularly arrangedstudents to undertake an internship at the Company's 5C factoryevery year. As of the end of the reporting period, 221 studentsfrom Jinan University have worked at Marubi as interns.
Jinan University graduate training base inauguration ceremony
Development with the industry
The Company actively participates in industry activities and exerts own advantages to promote the development of the cosmetics industry.
Cosmetics in South China go to the world - 2022 Beauty Huangpu ConferenceCase:
As one of the representative companiesin the cosmetics industry in HuangpuDistrict, the Company actively supportsthe development of the cosmetics industryin Huangpu District, and participates inthe customization of "the rst industry co-brand star product - Beauty Huangpugift box" in Huangpu District, to promotethe brand power and product power ofcosmetics companies and tell the story ofthe cosmetics industry in Huangpu District.Beauty Huangpu Conference
Connect & Development
The Company has a mature "open innovation" system which is not limited within the boundaries of the Company. With "Connect andDevelopment", the Company aims to achieve both "independent R&D" and "joint R&D". By breaking the organizational and industrialboundaries, the Company continuously collects, evaluates and integrates advanced technical resources that can be applied to R&Dand products from external research institutions, and establishes its institution library, technology library, and expert library based onthe chain of "university-research-medicine-inspection", forms an open innovation platform based on multiple subjects, multiple elds,and multiple dimensions, and realizes the collision of interdisciplines and breakthrough.As of the end of the reporting period, the Company has established a global open partner system, covering more than 29 domesticand foreign universities, well-known 3A hospitals, scientic research institutes and other institutions, and introduced 88 universitytalents to work as interns at the R&D department, and cooperated with over one hundred leading experts from more than 10 eldssuch as biology, genetic engineering, dermatology, pharmacology, phytochemistry, material chemistry, and testing. These expertsboast a wide range of expertise, with the transformable technological achievements up to 196.
●Establish a "full-time professional degree graduate collaborativetraining base" with Jinan University ●Cooperate with South China University of Technology, HarbinInstitute of Technology (Shenzhen), Guangdong University ofTechnology and other universities on raw material researchand development and industrial application ●Reach a comprehensive strategic partnership with GuangzhouQuality Supervision and Testing Institute and internationalsuppliers such as Lubrizol, DSM, Symrise, Ashland, andUnited Laboratories ●Cooperate with international scientific research and testinginstitutions such as Bureau Veritas (New York Laboratory),Laboratoire Dermscan, Souken on product safety testing
●Establish an integrated collaborative platform of "industry-university-medicine-research-inspection" for recombinant collagento promote the transformation of scientic research results
●Strengthen cooperation on scientific research projects with 8universities, research institutes, and hospitals such as WestlakeUniversity, Beijing Technology and Business University,Guangdong-Hong Kong-Macao Greater Bay Area NationalNanotechnology Innovation Institute, Guangdong-Hong Kong-Macao Greater Bay Area Huangpu Institute of Materials ●Introduce 8 experts from universities, research institutes, andhospitals to serve as academic leaders of new laboratoriessuch as Synthetic Biology Laboratory, Advanced BiointelligentManufacturing Laboratory, and Microfluidic TechnologyLaboratory and carry out scientic research work
Cooperation projects:
Some partners of the Company
●
Director unit of China Biotech Fermentation IndustryAssociation ●Director unit of China Anti-aging Promoting Association ●Member unit of China Health Care Association ●Vice-chairman unit of Guangdong Medical ProductsAdministration Society ●Member unit of Guangdong Cosmetic QualityManagement Association
Newly joined industrial associations bythe Company during the reporting period
●Supervisory unit of Guangzhou Association for thePromotion of Technologically Advanced Small and Medium-sized Enterprises ●Member unit of Guangzhou Industrial Design Association ●Specially engaged director unit of Guangdong Scienceand Technology ●Director unit of Detergent & Cosmetics
Environmental, Social, and Governance (ESG) Report 2022
Chemical safetyAdopting natural ingredients
Animal welfare
The Company strictly abides by the Safety and Technical Standards forCosmetics and other laws and regulations, standardizes the selection ofchemical ingredients, bans the use of prohibited ingredients, and graduallyeliminates controversial ingredients through formula upgrading, aimingto continuously improve the chemical safety of its products. During thereporting period, the Company has examined all preservatives used incosmetics. Based on the needs of the Company and by searching literatureand patents, and cooperating with other companies in the industry,the Company verified and tested more than 20 kinds of preservativecombinations to screen out controversial preservatives. New preservativesystems are preliminarily established, including green preservative system,preservative free system, and plant preservative system.
To cater to consumers’ needs for purity, safety, and technologicalefcacy, the Company provides a wide range of products for consumersto choose from. Natural ingredients are preferably selected oversynthetic ingredients according to ISO 16128-1/2, and raw materialsmust be organically certied by a qualied third party (such as COSMOSor ECOCERT). As of the end of the reporting period, a total of 66 rawmaterials certied by COSMOS or ECOCERT have been used by theCompany.
The Company treats experimental animals friendly in accordance with the 3Rs (replacement, reduction, and renement of experimental animals). Under thesame conditions, the Company prioritizes alternative testing methods. For example, the Company has introduced chorioallantoic membrane (CAM) experiment,caenorhabditis elegans assay, zebrash embryo method, and cell model for safety and efcacy testing. These efforts can help reduce animal experiments.
CAM experimentCase:
CAM experiment is an alternative method for eye stimulation. Due tothe complete, clear and transparent characteristics of the CAM bloodvessel system of the inoculated chicken embryo in the middle stage, theexperiment directly applies a certain amount of the test substance ontothe CAM. After a period of time, observe the changes of toxicity effectindicators (such as bleeding, cruor and melting in blood vessel). Give ascore according to the different forms of cosmetics to evaluate the eyestimulation that the test substance causes. During the reporting period,the Company has carried out CAM experiments for cosmetics and rawmaterials for many times, and conducted comparative analysis by usingother safety assessment methods to open up new ideas in productsafety assessment.
Example of an embryo before and after contact with a certain raw material.Bleeding points appear, which proves that the raw material is irritating
Caenorhabditis elegans assayCase:
Caenorhabditis elegans is a model organism in anti-aging researchbecause of its fast reproduction, easy cultivation and operation, highexperimental stability and expansibility, 60-80% of homology with humangenes, and no ethical issues in animal experiments. In view of the shortlife cycle of caenorhabditis elegans, easy cultivation and clear genomesequence, the lifespan of caenorhabditis elegans has become the coreindicator in anti-aging research. The Company uses caenorhabditiselegans in the safety and antioxidant test of cosmetics and rawmaterials, and checks the impact of the test sample on the life cycle ofcaenorhabditis elegans to evaluate the anti-aging efcacy of the sample.Taking the data of Marubi's recombinant collagen as an example, the rightwardshift of the caenorhabditis elegans survival curve reects its anti-aging effect.
Keeping improving the product quality
Guided by the policy of "quality-first, integrity-based, leading the market, and keeping improving", the Company strictly complies with QualityManagement Standards for Cosmetics Production and other relevant laws and regulations, and has established a quality management systemthrough the entire life cycle of the product, covering product development, supplier selection, material acceptance, production, sales management,and product recall. The Company has passed the certication of ISO 22716 Good Manufacturing Practices for Cosmetics (GMP), the ISO 9001 QualityManagement System, and Intertek’s Good Manufacturing Practice Guidelines for Cosmetics. The Company regularly holds quality managementmeetings, checks the quality management system, evaluates suppliers, and checks the achievement of internal quality goal to ensure the effectivenessof the quality management system.The Company keeps the product quality under strict control. The production area includes the lling workshop, ingredient workshop, and emulsicationworkshop, with a cleanliness degree up to level D according to GB 50457-2019 Code for Design of Pharmaceutical Industry Clean Room. In thisway, raw material preparation, cream emulsication, cream storage and product lling are carried out in a cleaner environment. For each product, theCompany will conduct stability, safety and other tests to ensure its quality. For a new product to be launched on the market, the Company will conductauthoritative and professional efcacy tests for different effects, including "rming", "soothing", "anti-wrinkle", "whitening", and "suitable for sensitiveskin".
Chinese industry standardMarubi standard
Heat-resistant40°C, with no abnormality after 24 hours45°C, with no abnormality after 24 hoursCold-resistant-8°C, with no abnormality after 24 hours-18°C, with no abnormality after 24 hoursCentrifugation (emulsion)
2,000 r/min, with no stratication at roomtemperature for 30 minutes
3,000 r/min, with no stratication at 38℃for30 minutesBacterial amount (cfu/g)≤ 1,000< 50Total mold and yeast (cfu/g)≤ 100< 10
The Company has formulated the Quality Complaint Management System. After receiving a product quality complaint, the Company will follow up onand deal with the complaint in a timely manner, issue a Corrective and Preventive Measures Sheet, and formulate and implement corrective measuresbased on the investigation results. The Company has actively promoted the improvement of product quality, organized quality training sessions formore than 20 times, and taken special actions such as on-site inspection and quality punishment for suppliers during the reporting period to improveproduct quality.In 2022,Qualication rate of cream
99.6
%
Qualication rate of nished products
99.9
%Recombinant collagen ****(p < 0.0001)Comparison
Environmental, Social, and Governance (ESG) Report 2022
Improving service with the customer-oriented philosophy
With the philosophy of "service rst, sales second", Marubi has established an efcient and diversied service feedback mechanism,and is committed to providing customers with high-quality service.Customer serviceMarubi has formulated a set of standardized customer service procedures, and has opened multiple communication channels including400 national customer service hotline, ofcial WeChat account and ofcial online mall customer service, to ensure a timely responseto customers. The Company has built a consultant customer service system to serve specic customer groups on each platform, andprovided personalized services by distinguishing the portraits of the groups. The Company has also conducted customer service trainingeach month, and formulated a sound incentive system to continuously improve employees’ professional and service capabilities.Based on the customer feedback, the Company regularly collects after-sales problems and customer evaluations, and thencommunicates product-related problems to relevant departments of the Company for product optimization. At the same time, theCompany conducts in-depth product training for customer service staff, in order to optimize the relevant process to improve customerexperience.
Strict control to extend product shelf lifeCase:
The Company has taken strict measures to control microorganism and inspect raw materials, which helps extend the shelf life of products.
Raw material selection
Microbiological testfor raw materials
Production process ●Formulate standard raw materialintroduction systems and implementstrict onboarding standards, toensure that the raw materials usedare of top quality in the industry, andto nd vendors supplying stable, bulkvolumes with minimum impuritiesand the highest purity.
●To reduce the risks of contaminationcaused by microbial reproduction,no microbe shall be detected in theincoming raw materials.
●Carry out the strictest microbialcontrol measures with ultravioletrays, high temperature, ozone, andbactericide, depending on time andplaces, and taking into account alldimensions ranging from human,equipment, material, regulation, toenvironment.Microbial contamination control from all
links of production
Marubi Multiple Peptide Anti-wrinkle Eye Cream is a two-in-one product,which integrates eye cream and massager, and equipped with batteriesto ensure its high-frequency vibration. The original generation of MarubiMultiple Peptide Anti-wrinkle Eye Cream is designed with one battery.To meet consumers’ needs, the second generation is designed withtwo batteries and improved efcacy, which can increase the product’sbattery life and improve customer experience.
Delivery within 12 hoursduring Double 11
Case:
Upgrading of MultiplePeptide Anti-Wrinkle EyeCream (Small Red Pen)Case:
Commodity packaging
During the reporting period, the Company has taken measures toimprove logistics efciency such as the construction of cloud warehouse,optimization of the express delivery sheet review system, andstrengthening of the commodity inventory information synchronization.Therefore, delivery within 24 hours throughout the year could bepossible. During Double 11, the Company adopted methods suchas pre-packaging to improve delivery timeliness, achieving 12-hourdelivery. The total number of orders was about 1.7 million, of which thelargest number of orders within one day was 200,000.
Transformation of puried water unitCase:
Water resources are very important for cosmetic production. Due to the impact of theenvironment and treatment process, water may contain impurities and cannot be useddirectly. In order to prepare water that meets the standards, the Company has carriedout puried water treatment to control product quality. During the reporting period, inorder to continuously improve the water quality for production and product quality, theCompany has installed a first-level water pump at the outlet of the first-level waterstorage tank, added four RO membranes, replaced the PLC automatic control system,and installed 304 stainless steel pipelines. In addition, the Company has purchasedequipment to optimize the treatment process between the water tank and the wateroutlets. These efforts help reduce the rate of defective products, and the amount ofwaste disposal during production, with both economic and environmental benets.
After
Marubi ofcialagship storeon Tmall scored
4.8, and overall
experience forusers is 5 stars
During the reportingperiodThe Company won the honor ofTmall Gold Medal Customer Serviceand Chitu "Star Customer Service",and Marubi ofcial agship store onTmall scored
Compared with 2021, the annualsatisfaction survey result hasachieved a signicant improvement,with a year-on-year increase of
Complaint settlement rate
4.8
17.49
%
%
The Chitu "Star Customer Service" award is granted to 555 vendors from atotal of over 100,000 e-commerce merchants registered on Chitu based onthe evaluation of various indexes of the before-sales customer service teams.Winners are honored as the "Excellent Customer Service Team of the Year". Theevaluation activity is based on the overall assessment of the customer serviceteams in the same category and at the same level, including the transformationrate of inquiries, customer service satisfaction, average response time, Ali Wantreply rate, question-to-answer ratio, as well as reception number and customerservice sales.
Chitu "Star CustomerService" evaluation criteria
Multiple Peptide Anti-wrinkleEye Cream user guide
The 2ndgeneration of MultiplePeptide Anti-wrinkle Eye Cream
Environmental, Social, and Governance (ESG) Report 2022
During the reporting periodOfine salons and private sessions held
Covering members12,012
329,092
The Company advocates rational consumption and scientific skin care, provides high-quality products, professional services,and beauty solutions for consumers. In addition, the Company is committed to creating a comfortable and pleasant consumptionenvironment for customers through high-quality products, professional interpretations, considerate services and varied activities.The Company introduces product functions and product tutorials through customer service on e-commerce platforms, introductionby hosts, guide cards in packages, public accounts, and short videos. Ofine salons and private sessions are held, mainly to shareskin care skills, skin rst aid skills, and promote new products. In addition, the Company also attaches great importance to thedevelopment of the industry, actively empowers downstream partners in the industry, and conducts trainings for dealers and stores,covering product introduction, sales skills, skin care skills, etc.
Marubi's big shot popularizesproducts in live studio
Restaurant bar salon
Skin care salon
Training on Quality Management Standards for Cosmetics
ProductionKey points of Live E-commerce Compliance Guidelines
summarized by the Company
Responsible marketing
The Company highly values the interaction and communication with consumers, and carries out responsible marketing activities.The Company attaches great importance to the authenticity and accuracy of product marketing, and reviews the advertisements inaccordance with the requirements of laws and regulations. If new laws and regulations are introduced, the key points of these lawsand regulations will be summarized in written documents and be distributed to relevant departments of the Company for learning. Atthe same time, the Company actively provides training on cosmetics laws and regulations, as well as compliance to all employees atrelevant departments, dealers and stores.
Emails relating to new laws and regulationsTraining of laws and regulations
Environmental, Social, and Governance (ESG) Report 2022
Building a harmonious workplace with thepeople-oriented philosophyMarubi adheres to the "people-oriented" philosophy, and is committed to providing strong backup for its employees, helping tap thepotentials of employees, and helping employee grow and succeed.
Employees’ rights and interests
Gender equality and diversity in employment
To safeguard the employees’ rights and benefits and to create a standard talent management system, Marubi has formulatedrelevant management provisions, such as the Performance Management System of Marubi, the Salary Management System ofMarubi, and the Benets Management System of Marubi, to improve the salary system and the democracy mechanism, so as tocreate a fair and harmonious working environment.
The Company strictly abides by the Labor Law of the People's Republic of China, the Labor Contract Law of the People's Republicof China and the Social Insurance Law of the People's Republic of China and other laws and regulations. It has formulatedthe Employee Handbook and concluded labor contracts in accordance with the law, aiming to continuously improve employeemanagement and protect legitimate rights and interests of its employees. The Company adheres to the principle of open recruitment,fair competition and merit-based employment, insists on gender equality in employment and prohibits any form of employmentdiscrimination. Forced labor and child labor are prohibited. The Company always advocates and adheres to gender equality,employment diversity and other philosophies, and strives to create a fair, respectful and diverse working environment.
Remuneration and talent motivationThe Company provides competitive remuneration, including the xed base salary, achievement incentive, subsidy, and welfare. With themulti-channel remuneration system, the Company attracts, retains, and motivates talents, inspires the employees’ initiatives to shareinterests and shoulder risks, improves the Company’s competitiveness, and achieves the goals of the overall development strategy.The employees’ remuneration follows basic rules of fairness, competitiveness, motivation, acceptability, adaptability, and legality, andadheres to the principle of equal pay for equal work. In addition to being compliant with local provisions and being higher than the localminimum wage, the remuneration should also be determined according to the overall operation performance of the Company whiletaking into account the Company’s business characteristics, value evaluation, external wage level, and benchmark of the market.
During the reporting period
Production staffSales staffFinance staff
Technical staffOver 50 years oldUnder 30 years old
30 - 50 years oldMaleFemale
By employee’s positionBy ageBy gender
Enterprise-university cooperation to cultivate practical talentsCase:
With a focus on industry growth, the Company continuouslycooperates with universities, and has become the practiceand training base for Jinan University, Chongqing Universityof Technology and Guangdong Pharmaceutical University,etc. During the reporting period, the Company has conductedthe enterprise-university cooperation project with GuangdongIndustry of Polytechnic, to train practical students and helpthem finish the internship. During the one-year internshipproject, the Company has provided the interns with theopportunity of work shift among multiple posts, including semi-nished product production, product quality control, cosmeticsR&D, and volunteer evaluation. Through this project, the internscan learn more about cosmetics besides the basic operation,while the Company can expand the talent pool of the industry.
Enterprise-university cooperation
66.23%
33.77%
41.32%56.32%
2.36%
4.15%
22.17%
6.98%
40.09%
26.60%
Proportion of local employment
20.85
%
middle management
female employees
accounting for
67.20
%senior management
female employees
accounting for
38.10
%
The Company has1,060
employees
employees from ethnic minorities
employees with disabilities
foreign employees
Administrativepersonnel
Environmental, Social, and Governance (ESG) Report 2022
Employees’ benets
Democratic communication
Talent developmentMarubi proposes the life outlook of "learning by heart, concentrating on work, and living happily", and stays committed to legally,reasonably, and completely safeguarding rights and benefits of the employees. To build a warm and harmonious workingatmosphere, and present the humanistic care to the employees, the Company provides a variety of subsidies to them, such as thetrafc subsidy, launch subsidy, attendance bonus, and travel subsidy, besides the ve insurances and housing provident fund asrequired by law, making each employee actually feel the warmth from the Company. The Company also witnesses and accompaniesthe big moments of each employee, sending blessings and gifts including birthday gifts, health gifts, gifts for babies, wedding gifts,and holiday gifts. Moreover, to carry forward the culture of lial piety, advocate respecting and loving the old, and pass on lial piety,the Company sets up the lial piety salary system. According to the system, the Company and employees will jointly contribute asum of money to the lial piety salary, which is then directly sent to the bank account of the employees’ relatives. As of the end of thereporting period, the Company has cumulatively paid the lial piety wages up to RMB 3.4348 million.
To safeguard the employees’ rights and benets, and expandthe communication channels for employees, the Companyhas formulated the Comments and Suggestions Collection,Handling and Feedback System of Marubi, completingthe signing and approval of comments and suggestionsmechanism, establishing collection channels, and summarizinginformation ledger. The established channels compriseEnterprise WeChat Mini Program, OA, CEO mailbox, etc.Besides, the Company conducts the quarterly satisfactionsurvey, and makes rectification based on the issues raised bythe employees in the survey. During the reporting period, thesurvey results showed that the Q4 employee satisfaction washigher than Q1 employee satisfaction at each survey dimension.
Marubi appreciates cultivation, growth, and occupational development of the employee, strives to build a "fair, just, objective, and
qualied" promotion system, and continues to improve the occupational development channel for the employees, to promote overall
development of the staff, build a at organization, and achieve agile and efcient operation of the organization. During the reporting
period, the Company has optimized the human resource management strategies according to the talent review report, in combination
with the Company’s business development and the actual conditions of the organization, forwarded structural integration and
optimization of departments, and promoted talent cultivation and utilization. Meanwhile, the Company stressed on the feelings and
mental health of the employees, provided the communication channels for the employees, and listened to and cared the employees in
time.
The Company insists on the values of "life-long learning and practice", and stays committed to creating a learning organization by
setting up a comprehensive online learning platform, Marubi Academy, to provide online and ofine training, and setting up a dual
system of internal and external lecturers. The Company sets up the three-level training system to support the Company’s strategy
implementation, business development, and human capital appreciation.Welfare of the Women’s Day, thewarm breakfast from the maleemployee to the female employee
Welfare of the Dragon BoatFestival
Welfare of the Mid-Autumn Festival
Complaint box in Headquarters and
e-commerce tea room
Advice and Suggestion(Enterprise WeChat mini program)
Cultivation of senior managers:
talents with coordinatedmanagement skillsCultivation of grassrootsemployees: talents withexecution abilities
Cultivation of middle-level managers: management experts
●Through the MBA courses of SUNYAT-SEN University, cultivatebusiness partners that have farstrategic vision, recognize Marubi’scorporate culture, and with overallmanagement capacity.
●Stay committed to cultivatingmanagement trainees and high-potential talents at grassroots level,and strengthening backbones forthe basic level of the Company.
●Stay committed to cultivating themanagement elites of differentspecialties through educationalpromotion, improving theprofessional capacity of the middle-level staff, and strengthening thebackbone force for the Company.
Three-level training system of the Company
During the reporting period, the Company has conducted the internal training and the new employee training. The internal trainingincludes the product training, skill training, sales training and other multi-dimensional business enabling training, totaling 81rounds and covering 2,506 persons all the year around. The new employee training is a regular 2-day collective training for newemployees, including factory visit, corporate culture interpretation, interpretation of occupational development path, interpretation ofremuneration and welfare system, and interpretation of channel and business. 8 rounds of the new employee training were held allthe year around, covering 222 new employees.
Internal trainingNew staff training
Environmental, Social, and Governance (ESG) Report 2022
Educational improvement support
EMBA training of SUN YAT-SEN University
Marubi Academy
Case:
Case:
Case:
To promote active learning and lifelong learning ideas in the workplace, and encourage employees to participate in the academiceducation and occupational training, the Company selects the best training organizations and quality cooperation suppliersexternally while learns the employees’ demands and solves actual issues internally, providing full support to education promotion.The Company managed to encourage the grass-roots employees to actively upgrade their academic level. During the reportingperiod, 14 employees have upgraded their academic level.
The Company provides the key employeetraining, with the aims to discover, select,and cultivate talents from senior managersand technical elite teams. Further, theCompany cultivates the selected talentsin a systematic and planned manner,boosting the conversion of businessmanagement elites to comprehensiveoperation management talents. Sinceits launch in February 2022, the EMBAtraining project of the SUN YAT-SENUniversity has completed 7 sessions offace-to-face courses.
The Company sets up three colleges based on different learning demands of front, middleand back platform personnel: including Brand Management College, Operation Collegeand Retail College. Such colleges provide systematic learning courses respectivelytargeting general knowledge and professional knowledge such as management,operation, skills, products, techniques, and scientific principles. A total of 438 onlinecourses and 1,118 sub-courses were offered as of the end of the reporting period.
EMBA course
Culture FestivalCase:
Since 2015, the Company has held the Enterprise Cultural Festival to the staff every year, which consists of multiple activities suchas annual strategic presentation, great cultural training, debate competition, sports meet, annual commendation conference, andgala dinner. The Cultural Festival is an opportunity to praise the achievements of the staff for last year, and also a stage for showingthemselves. During the Cultural Festival, the friendship between the employees is deepened, the employee’s sense of belonging isenhanced, and the employees can further understand the Company’s strategy and enterprise culture. The Marubi Culture Festivalhas been held for eight years. The Marubi Culture Festival 2022, themed Growth for the good of all, passed on the Company’svalues and core strategies, united the force of employees, and enhanced the core competitiveness of the Company through strategypresentation, annual commendation conference, and kick-off meeting.
Speech of ChairmanVenue of culture festival
Marubi’s 20th anniversaryCase:
To celebrate the 20th anniversary, theCompany adopts a brilliant decorationdesign of balloon arches, colored ags,and banners. Moreover, a signaturewall is provided for signing by the staff,allowing them to fully participate in thecelebration. A birthday cake is cut anddistributed to the staff, and fruit anddrinks are also provided at this joyousmoment.
Signature wall
Marubi Academy
During the reportingperiodTotal training time
Average training time28,522
H
27.5
H
Employee careMarubi truly cares for the employees, ensures the balance of the employees’ work and life, and attaches importance to the teambuilding activities. The Company carries out team building from the department, club, and company level, festival activities, andfamily activities for employees, giving the employees a warm feeling in their spare time.
Environmental, Social, and Governance (ESG) Report 2022
Badminton gameCase:
To build a healthy and upward corporateculture, enrich the spiritual and culturallife for the employees, and raise theawareness of positively participatingin sports and exercise, the Companyorganizes and holds the First BadmintonGame of Marubi 5C Center. 74employees from 9 departments appliesfor the Game (the participation rate ofeach department is 75%), with 97 roundscompleted in total. The BadmintonGame marks the breakthrough of Marubi5C Center, further enriching the teambuilding activities for the employees,enhancing the enthusiasm of employeesfor sports, and improving the teamcohesiveness.
Competition site
Honoring employees working for 15 and 20 years for the Company
Photographic activity
Caring about employees workingat high temperatures in summerCase:Case:
To enrich the employee’s spiritual and cultural life, and build apositive, upward, healthy, and civilized factory, the Companyorganizes photographic activities themed sharing the beauty ofthe factory and nding the "wonderful" moments.
In the heat of summer, the Company holds the "Cool Summer"activity by providing refrigerators, cool drinks, and watermelonto the warehouse employees, to express the Company’s careand inspire them.
Competition siteCool summer
Caring about employees during Double 11Case:
To prepare for Double 11, the Production Department and the Logistics Department usually work over time, and other departmentsalso need to support the production and packing work. To appreciate their hard working and inspire them to work for Double 11 inbetter statess, the Company provides welfare to the employees every day, including fruit, milk, drinks, and food.
Adhering to good health and safety practicesMarubi always puts safety rst, promotes the physical and psychological health of the employees, and builds a healthy and safeworking environment, to make the Company continuously forward the sustainable development goals.Safety managementTo strictly adhere to relevant laws and regulations, and set up a complete occupationalhealth and safety management system, the Company has formulated 26 safetymanagement system documents, including the Emergency Rescue Plan in Case ofAccidents Caused by Precursor and Explosive Chemicals, the Hazardous ChemicalsSafety Management Procedures, the Emergency Preparedness and Response ControlProcedures, and the Pipeline Natural Gas and Bottled Gas Safety ManagementProcedures. The Company has obtained the certication of ISO 45001 OccupationalHealth and Safety Management System. By the end of the reporting period, no majorsafety accident has occurred.The Company has formulated the Hazard Source Identication and Evaluation ControlProcedures to strengthen safety risk management. The Company also conducts safetyrisk evaluation every year, and implements effective control measures according to theevaluation results. In addition, the Company conducts the monthly check, the checkbefore holidays, and other conventional safety checks, to rectify all problems detected,and implement the work safety in an all-round way.
During the reportingperiodWork accidents
Work-related fatalities
Environmental, Social, and Governance (ESG) Report 2022
Selection of activity, process, and
service
Determination of major hazardous
factors
The Company’s control measures for major hazards are as follows:
Identication of hazard factors in activities,
processes, and services
Qualitative and quantitative evaluation of hazardous
factor
●Production process and safety technologymanagement ●Operational activity of production personnel ●Installation, operation, and maintenance ofequipment and facility
●Hazardous factor in storage of toxic andharmful materials
●The Security Department summarizes riskcontrol plans from each department, denesthe Company’s major hazard factors, andestablishes the list and control sheet ofmajor hazard sources.
●Formulate goals, indicators, and management solutions ●Formulate management procedures ●Conduct training and education ●Formulate emergency plan ●Reinforce supervision and check on site ●Maintain existing measures ●Monitor major hazards and give instructions and provideservice accordingly
●Management: production technology, operating procedure, skilltraining, education and training control
●Quality of personnel: awareness, operating procedures, andexperience
●Environmental conditions: environment and conditions ofproduction site ●Occupational health and re control
●
Formulate hazard source (risk) identification, evaluation, andrisk control plan according to evaluation results mainly throughinquiry, exchange, site observation, and search of relevantrecords.Safety risk identication
During the reportingperiodLabor protection applianceexpenditureRMB207,000
Emergency measures for safetyAdhering to the principles of equal importance of prevention and emergency, the Company has formulated the EmergencyPlan for Production Safety Accidents. The Company conducts safety drills every year, which ensures effectiveness of theemergency plan and the emergency equipment, and helps continuously improve the re safety awareness and re emergencycapacity.
Occupational healthThe Company stays committed to providing a safe workingenvironment to the employees and ensuring the employees’mental and physical health through measures below: invitinga professional third-party organization to supervise alloccupational health hazards of the Company, providing theemployees with physical examination every year, and carryingout health monitoring and management for the specificpositions with occupational disease risks.
Fire drillFireghting competition
Anti-theft drill for chemicals
Hazardous chemicals
The Hazardous Chemicals Safety Management Procedures and the Emergency Rescue Plan in Case of Accidents Caused byPrecursor and Explosive Chemicals, formulated by the Company, specify strict measures and xed procedures for procurement,transportation, storage, use, and waste management with respect to hazardous chemicals, effectively preventing environmentalsafety accidents. The Company also provides training to the workers engaged in use of hazardous chemicals, regularly carries outemergency drills by referring to the Emergency Plan for Production Safety Accidents, thus effectively preventing and controlling risksof dangerous explosive chemicals and protecting the employees against injury.
Environmental, Social, and Governance (ESG) Report 2022
Occupational health examination report
Environmental, Social, and Governance (ESG) Report 2022
Boosting community co-construction with agrateful heart
Marubi cares for the society, and adheres to the values of"being grateful to the society, and acting for love". Since itsestablishment, the Company has been committed to shoulderits social responsibilities. In 2008, the Company set up the"Better Care Fund", with the aim to pass on love from aspectsof culture, rural revitalization, and education, and makecontributes to the society as best as it can.
Green procurement
Supply chain management
Supplier onboarding
Marubi follows the concept of green procurement, advocatesthe preemption and use of raw materials with less impact onenvironment, gradually integrates the principle of sustainabledevelopment to supplier management and review, continues tocomplete sustainable procurement procedures, and improvesthe sustainable attribute of the whole industrial chain. Asrequired by the Company, the supplier’s product should containinformation about hazardous substance, recyclable material,etc. To ensure the validity of green procurement, the Companyimplements environment audits and regular training.
The Company has formulated the Supplier Management Manual, specifying the whole life circle from introducing suppliers, audit,procurement, cooperation, and evaluation management, to elimination, and guiding each internal department concerned to wellconduct supplier management. According to the open, fair and just principles, the Company implements transparent and digitalprocurement mechanism, fully standardizes procurement processes with the SRM platform, improves transparency of full life cyclemanagement procedures with respect to suppliers, and establishes a win-win strategic partnership with suppliers.
When admitting new suppliers, the Company takes intoaccount performance of the new suppliers in enterprisesocial responsibility, production environment, and safety &environment protection, besides their general qualications andproduct quality screening. The new suppliers can be includedinto the database only after they are reviewed and approved onsite and execute the honesty agreement.
●The supplier complying with the Nagoya Protocolis the rst choice. ●The raw material complying with the RoundtableSustainable Palm Oil (RSPO) is the rst choice. ●The suppliers are inspired to use environmentally-friendly inks. ●Pay close attention to biodiversity and use rawmaterials with less impacts on biodiversity.
●
Screen potential suppliers from the supply market,and preliminarily evaluate potential suppliers interms of their region, nancial status, professionalprociency, quality, cost performance, maintenanceand support cost, credibility, and compliance.
●Evaluate and analyze the supplier’s performanceduring the term of the Contract (four dimensions:
price, quality, delivery time, and service), detectunqualied suppliers in time, and minimize risks ofinferior suppliers.
●Introduce suppliers which are qualified for thepreliminary evaluation, collect all necessarydocuments and data, initiate the supplier introducingprocedures and site review process, and executethe cooperation agreement.
●According to the performance evaluation results,place more orders with the top suppliers, providetraining to the suppliers below the average, as wellas remove and add the last supplier to the blacklist.
Supplier development
Supplier performance management
Introduction of suppliers
Removal and blacklist of suppliers
Supplier management of the Company
●Labor management ●Work safety and health ●Environment protectionESG site reviewdimension forsupplier:
Education aids to ChongqingUniversity of TechnologyCase:
The Company has been giving supports to Chongqing Universityof Technology since 2015, and has donated RMB500,000as student grants during the reporting period, to improve theeducation development.
As the Spring Festival is coming, theCompany visits retired veterans andsenior party members to further learntheir thoughts, physical health, and livingconditions, and sends cares, gifts, andblessings from the Company.
Visiting veterans and senior party membersCase:
Visit of the Company’s party branch’s to
senior party member
Learning meritorious deeds
Public donation in 2022
Working together and joining hands with partners
Marubi highly values the cooperation with its suppliers. When selecting suppliers, the Company insists on the primary principles ofensuring product quality and service quality, supports local procurement, and positively includes ESG considerations into the supplierassessment range. Through working together and close communication with its suppliers, the Company has established a long-termand stable cooperation with its suppliers for mutual improvement, boosting the sustainable development of the Company in the future.
Air China & Marubi: making up a beautiful lifeCase:
Cooperating with Air China, GuangdongBranch, the Company holds the activityof Women’s Day for the beauty of femaleemployees of Air China, promotes thespecial Air China Discount Applet, andprovides the special skincare trainingto interpret knowledge and skills aboutskincare and makeup.
Venue of skincare training themed Women’s Day
RMB500,000
Environmental, Social, and Governance (ESG) Report 2022
Appendix
Key performance table
EnvironmentTopicIndicatorUnit20212022Renewableenergy
Photovoltaic power generationkWh690,800655,185
Energy use
Purchased electricitykWh4,617,8464,707,000Natural gasm
238,997228,071Comprehensive energyconsumption
Tons of standard coal830.43829.29Energy intensity
Tons of standard coal/100 million
yuan of revenue
46.4747.88
Energy efciency
100 million yuan of revenue/tons of
standard coal
0.020.02
Greenhousegas
Total emissionTons of carbon dioxide equivalent3,106.263,178.00Scope 1Tons of carbon dioxide equivalent497.59493.60Scope 2Tons of carbon dioxide equivalent2,608.672,684.40
Waste water
Total emissionTon11,49311,125Emission intensityTon/10,000 yuan of revenue0.060.06
Waterresource
Amount of water consumptionTon54,92757,190Intensity of water consumptionTon/10,000 yuan of revenue0.310.33Water resource efciency10,000 yuan of revenue/ton3.253.03
Waste
Amount of generatedhazardous wastes
Ton——1.52
SocietyTopicIndicatorUnit20212022
Employees
Total number of employeesPerson1,1971,060By genderMalePerson377358FemalePerson820702By educational backgroundCollege degree or belowPerson779707Bachelor degreePerson351299Master degree or abovePerson6754By ageUnder 30 years oldPerson53943830 - 50 years oldPerson636597Over 50 years oldPerson2225Gender of the management layerMalePerson4274FemalePerson59133Number of employees from ethnicminorities
Person——43Number of people with disabilitiesPerson——4Number of veterans and demobilizedsoldiers
Person——8Number of new employeesPerson——410Number of local employmentPerson——221Signing rate of labor contracts%100%100%Coverage rate of social insurances%100%100%Coverage rate of labor union%100%100%TrainingTotal hours of employee trainingHour21,43228,522Occupational safetyand health
Number of employment injuryaccidents
Piece00Number of employment injuriesPerson00Number of accidents involving work-related fatalities
Piece00Number of work-related fatalitiesPerson00
Suppliers
Total number of suppliers-218172By regionSuppliers from Chinese Mainland-210167Suppliers from Hong Kong, Macaoand Taiwan and overseas suppliers
-85Total number of suppliers that havesigned the Supplier Code of Conduct
-218172CommunityPublic donation10,000 yuan307.25 50.00
EconomyIndicatorUnit20212022Operating revenue100 million yuan17.8717.32Net prot attributable to the parent company100 million yuan2.481.74Total assets100 million yuan37.6240.91Number of R&D personnelPerson9793Proportion of R&D personnel%8.10%8.77%Total R&D investment10,000 yuan5,048.825,292.57Tax amount100 million yuan2.532.63
Notes: 1. Since the subsidiary Guangzhou Marumed Research Co., Ltd. is ofcially put into operation in 2022, the statistical caliberof environmental data is the 5C factory and the Guangzhou Marumed Research Co., Ltd.
2. The main sources of greenhouse gas emission are natural gas and purchased electricity, and the Company's photovoltaic
power generation is not included in carbon emission.
Note: For other nancial data about Marubi in 2022, seeMarubi Annual Report 2022.
Environmental, Social, and Governance (ESG) Report 2022
Indexes
GRI StandardDisclosureCorresponding chapter or section
GRI 2: General Disclosures2021
2-1Organizational detailsAbout Marubi2-2
Entities included in the organization’ssustainability reporting
About the Report2-3Reporting period, frequency and contact pointAbout the Report2-4Restatements of informationKey performance table2-6
Activities, value chain and other businessrelationships
About Marubi
Customer service2-7EmployeesKey performance table2-9Governance structure and compositionImproving corporate governance2-10
Nomination and selection of the highestgovernance body
Improving corporate governance2-11Chair of the highest governance bodyImproving corporate governance2-12
Role of the highest governance body inoverseeing the management of impacts
Communication with stakeholders and
analysis of material topics
Improving corporate governance2-13
Delegation of responsibility for managingimpacts
Improving corporate governance2-14
Role of the highest governance body insustainability reporting
About the Report
Communication with stakeholders and
analysis of material topics2-16Communication of critical concerns
Communication with stakeholders and
analysis of material topics2-22Statement on sustainable development strategyMessage from Chairman2-23Policy commitments
Staying committed to business ethics
Building a harmonious workplace with the
people-oriented philosophy2-24Embedding policy commitments
Staying committed to business ethics
Building a harmonious workplace with the
people-oriented philosophy2-25Processes to remediate negative impactsStaying committed to business ethics2-26
Mechanisms for seeking advice and raisingconcerns
About the Report2-27Compliance with laws and regulations
See details in each chapter and section of
the report2-28Membership associations
Pursuing innovation through unremitting
R&D efforts2-29Approach to stakeholder engagement
Communication with stakeholders and
analysis of material topics
Statement of use
Marubi has reported the information cited in this GRI Content Index for the period January 1,2022 to December 31, 2022 with reference to the GRI Standards.GRI 1 usedGRI 1: Foundation 2021
GRI StandardDisclosureCorresponding chapter or sectionGRI 3: Material Topics 2021
3-1Process to determine material topics
Communication with stakeholders andanalysis of material topics3-2List of material topics
Communication with stakeholders andanalysis of material topicsGRI 201: EconomicPerformance 2016
201-1Direct economic value generated and distributedKey performance table201-3
Dened benet plan obligations and otherretirement plans
Building a harmonious workplace with thepeople-oriented philosophy
GRI 203: Indirect EconomicImpacts 2016
203-1
Infrastructure investments and servicessupported
Boosting community co-construction with agrateful heart
GRI 205: Anti-corruption2016
3-3Management of material topics
Communication with stakeholders andanalysis of material topicsStaying committed to business ethics205-1
Operations assessed for risks related tocorruption
Staying committed to business ethics205-2
Communication and training about anti-corruption policies and procedures
Staying committed to business ethics205-3Conrmed incidents of corruption and actions takenStaying committed to business ethicsGRI 302: Energy 2016
302-1Energy consumption within the organization
Conserving energy and reducing
consumption for clean production
Key performance table302-3Energy intensityKey performance table302-4Reduction of energy consumption
Conserving energy and reducing
consumption for clean production
GRI 303: Water and Efuents2018
303-1Interactions with water as a shared resource
Reducing cost and increasing efciency to
conserve natural resources303-2Management of water discharge-related impacts
Conserving energy and reducing
consumption for clean production303-4Water discharge
Conserving energy and reducing
consumption for clean production
Key performance table303-5Water consumption
Reducing cost and increasing efciency to
conserve natural resources
Key performance table
GRI 305: Emissions 2016
3-3Management of material topics
Communication with stakeholders and
analysis of material topics
Conserving energy and reducing
consumption for clean production305-1Direct (Scope 1) GHG emissionsKey performance table305-2Energy indirect (Scope 2) GHG emissionsKey performance table305-4GHG emissions intensityKey performance table305-5Reduction of GHG emissions
Conserving energy and reducing
consumption for clean production
GRI 306: Waste 2020
306-1
Waste generation and signicant waste-relatedimpacts
Conserving energy and reducing
consumption for clean production306-2Management of signicant waste-related impacts
Conserving energy and reducing
consumption for clean production306-3Waste generated
Conserving energy and reducing
consumption for clean production
Key performance table306-4Waste diverted from disposal
Conserving energy and reducing
consumption for clean production
Key performance table
GRI Content Index
Environmental, Social, and Governance (ESG) Report 2022
GRI StandardDisclosureCorresponding chapter or sectionGRI 308: SupplierEnvironmental Assessment2016
3-3Management of material topics
Communication with stakeholders andanalysis of material topicsWorking together and joining hands withpartners308-1
New suppliers that were screened usingenvironmental criteria
Working together and joining hands withpartnersGRI 401: Employment2016
401-2
Benets provided to full-time employeesthat are not provided to temporary or part-time employees
Building a harmonious workplace withthe people-oriented philosophyGRI 402: Labor/Management Relations2016
402-1
Minimum notice periods regardingoperational changes
Building a harmonious workplace withthe people-oriented philosophy
GRI 403: OccupationalHealth and Safety 2018
403-1
Occupational health and safetymanagement system
Adhering to good health and safetypractices403-2
Hazard identication, risk assessment, andincident investigation
Adhering to good health and safetypractices403-3Occupational health services
Adhering to good health and safetypractices403-5
Worker training on occupational health andsafety
Adhering to good health and safetypractices403-6Promotion of worker health
Adhering to good health and safetypractices403-7
Prevention and mitigation of occupationalhealth and safety impacts directly linked bybusiness relationships
Adhering to good health and safetypractices403-9Work-related injuries
Adhering to good health and safetypractices403-10Work-related ill health
Adhering to good health and safetypracticesGRI 404: Training andEducation 2016
404-1
Average hours of training per year peremployee
Building a harmonious workplace withthe people-oriented philosophy404-2
Programs for upgrading employee skillsand transition assistance programs
Building a harmonious workplace withthe people-oriented philosophyGRI 405: Diversity andEqual Opportunity 2016
405-1
Diversity of governance bodies andemployees
Building a harmonious workplace withthe people-oriented philosophyKey performance tableGRI 408: Child labor 2016408-1
Operations and suppliers at signicant riskfor incidents of child labor
Building a harmonious workplace withthe people-oriented philosophyGRI 409: Forced orCompulsory Labor 2016
409-1
Operations and suppliers at signicant riskfor incidents of forced or compulsory labor
Building a harmonious workplace withthe people-oriented philosophyGRI 414: Supplier SocialAssessment 2016
3-3Management of material topics
Communication with stakeholders andanalysis of material topicsWorking together and joining hands withpartners414-1
New suppliers that were screened usingsocial criteria
Working together and joining hands withpartnersGRI 417: Marketing andLabeling 2016
417-1
Requirements for product and serviceinformation and labeling
Improving service with the customer-oriented philosophy
ContentsCASS-ESG 5.0About the ReportP1.2-P1.3Message from ChairmanP2.1-P2.2About MarubiP4.1-P4.3ESG Management
Communication with stakeholders andanalysis of material topics
G3.5-G3.6Response to the Sustainable DevelopmentGoals (SDGs) of the United Nations
——Green Manufacturing: InjectingNew Momentum into the beauty andhealth industry through Technologies
Committed to green manufacturingV2.4Focusing on recombinant collagenV2.4
Governance responsibility: Pursuitof excellence
Improving corporate governanceG1.1-G1.2, G1.10, G3.6Strengthening risk complianceG1.3-G1.4Staying committed to business ethicsG1.7Protecting intellectual property withconcerted effort
V2.2Keeping information secure proactivelyS5.6Exploring intelligent transformationV2.2
Environment protectionresponsibility: Green and lowcarbon
Driving forward environment-friendlyconstruction
E1.1, E1.3, E1.5-E1.6Conserving energy and reducingconsumption for clean production
E2.1-E2.5, E3.1-E3.3, E3.5, E3.8, V4.3Reducing cost and increasing efciency toconserve natural resources
E2.6, E2.9-E2.11Promoting low-carbon developmentphilosophy
E1.7, E2.14
Social responsibility: Continuedgrowth
Pursuing innovation through unremittingR&D efforts
V2.1-V2.4, V2.7-V2.8Keeping improving the product qualityS5.1-S5.2Improving service with the customer-oriented philosophy
S5.3, S5.5, S5.7-S5.8Building a harmonious workplace with thepeople-oriented philosophy
S1.1-S1.4, S1.6-S1.7, S1.10, S2.2, S2.4Adhering to good health and safetypractices
S3.1-S3.2, S3.4-S3.8, S3.11Working together and joining hands withpartners
S6.2Boosting community co-construction with agrateful heart
V3.4, V3.6Appendix
Key performance table A2IndexesA4Comments and feedbackA5
CASS-ESG 5.0 Indicator Index
Environmental, Social, and Governance (ESG) Report 2022
Comments and feedbackThank you very much for reading the Environmental, Social, and Governance (ESG) Report2022 Guangdong Marubi Biotechnology Co., Ltd. To continuously improve the Company’s ESGmanagement, the report, and the ESG capacity and level, your comments and suggestions to thisreport will be highly appreciated. We will take into account your comments and suggestions andtake appropriate measures to protect your information from being accessed by third parties.
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