Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Table of Contents

Appendixes 82

About the RepoMessage from theChairmanAbout Aurisco

ESG Governance

Prudent Governance to Build A SolidFoundation for Development

Responsibility Coordinationto Draw a New Chapter inthe Indust

People Foremost to Pass onWarmth and Power

Green Development toPractice Low-CarbonOperationsInnovation-Driven Development toCreate Lean Products

Corporate Governance StrengtheningInternal Control ForticationCompliance with Business EthicsInformation SafeguardingInvestor Relations Management

Protection of Employees' Rights andInterestsEnhancement in DemocraticGovernanceImplementation of Welfare and CareSupport for Employee GrowthOccupational Health and SafetyImprovement of People's Wellbeing

Enhancement of EnvironmentalManagementStandardization of Pollution and WasteManagementOptimization of Resource UtilizationClimate Change ResponsePractices in Green Operations

Key PerformanceIndicator IndexFeedback Table

3860Contribution to Industrial DevelopmentSustainable Supply Chain

Adherence to Innovation-Driven DevelopmentPursuit for the Premium QualityProvision of High-Quality Service

About the ReportThis is the 2024 Environmental, Social and Governance (ESG) Repo issued by Aurisco Pharmaceutical Co.,Ltd. (hereinafter referred to as “Aurisco”, “the Company” or “we”), and is the rst ESG repo of the Company,which aims to provide our stakeholders with comprehensive information on our ESG practices and relevantpeormance in 2024.

Reference Standards

● The standards, frameworks and principles referenced for the preparation of the Repo are as follows:

●GRI Sustainability Repoing Standards(GRI Standards 2021) issued by the Global Sustainability StandardsBoard (GSSB)●Framework of the Task Force on Climate-related Financial Disclosures(TCFD)●United Nations Sustainable Development Goals (UN SDGs)●No. 4 Guidelines for Self Governance of Listed Companies of the Shanghai Stock Exchange - Preparation ofSustainable Development Repos

Scope of the RepoTime Period: The Repo covers our activities undeaken from Janua 1, 2024 to December 31, 2024, and mayrefer to the information of other years in order to improve its comparability and perspectiveness.Organizational Scope: The Repo focuses on Aurisco Pharmaceutical Co., Ltd., including its subsidiaries.

Designations

To facilitate the presentation, the titles of the subjects involved in the Repo are hereby explained. "Aurisco","the Company", "our Company" or "we" refers to Aurisco Pharmaceutical Co., Ltd., "Yangzhou Aurisco"refers to Yangzhou Aurisco Pharmaceutical Co., Ltd., and "Yangzhou Lianao" refers to Yangzhou LianaoBiopharmaceutical Co., Ltd.

Data SourcesThe data presented in the Repo is extracted from the original data of the Company's actual operation andthe public data from government depaments. Unless otherwise stated, the data in the Repo are measuredin metric system and the currency is denominated in Renminbi (RMB). Should there be any discrepancieswith the nancial statements, the latter shall prevail.Reliability StatementWe promise that there is no false record, misleading statement, or significant omission, and we willassume full liabilities for its authenticity, accuracy, and completeness.

Access to the RepoThe Repo is made in Chinese and English. You can download the electronic version of the Repo from ourwebsite (www.aurisco.com).For any questions or access to fuher information, please contact us with the contact information below:

Tel.: 0576-83177301Email: aurisco@aurisco.comAddress: No. 1, Longxing Road, Badu Industrial Park, Tiantai County, Zhejiang, China

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) RepoAbout the Repo

Message from the Chairman

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Message from the Chairman

We implement lean governance to lay a solid foundationfor our development. We scrupulously abide by the

highest standards of business ethics, keep ourselves cleanand honest, constantly optimize the governance system,comprehensively enhance governance efficiency, andeffectively safeguard the legitimate rights and interestsof shareholders and stakeholders. We have improved thethree-level ESG management structure (decision-making,management and implementation), fully consideringESG factors in business operations, so as to build up ESGgovernance from top to bottom with full participation ofall employees. In July 2024, we joined the United NationsGlobal Compact (UNGC) and achieved Gold in EcoVadissustainability rating.We are empowered with innovations to achieve industrialcooperation.Aurisco has always focused on its main businessand regarded innovation as the core engine for high-qualitydevelopment. We continuously increase our R&D investment,strengthen R&D construction, promote the implementationof R&D achievements, and enhance brand influence. Weendeavor to provide global customers with high-qualityproducts and perfect services, winning internationalreputation for Aurisco. We make it own mission to promoteindust development, take pa in the indust ecosystem,and incorporate ESG concepts into the construction of thesupply chain. We cooperate with upstream and downstreampartners to build a sustainable supply chain and create amore resilient and competitive industrial ecosystem.We put vigorous eos into green transformation, layingan ecological foundation.We have acted on the idea thatlucid waters and lush mountains are the most universalwelfare for people's livelihoods. We continue to promotethe standardized management of environmental protection,strengthen the treatment of pollutants and wastes, fulfillthe main responsibility of environmental protection, andcontribute to the construction of "Green China" and "CleanEarth". In response to the goals of "peak carbon dioxideemissions" and "carbon neutrality", we have integrated thefunctions related to climate change response into the ESGsystem, actively addressed the challenges of climate change,and seized the oppounities brought by climate change. Wesigned the Letter of SBTi Commitment in April 2023, settinggreenhouse gas reduction targets and committing to achievecarbon neutrality by 2030. In the future, we will continue tofollow the path of low-carbon development, and advancethe realization of our climate goals in an orderly manner.

Putting people first, we strive to create a harmoniousfuture.Aurisco prioritizes the protection of employees’ rightsand interests, and strives to create a diverse, equal andinclusive working environment. We establish a competitivecompensation system and an all-round welfare securitysystem, car out a variety of employee care activities, andcontinuously enhance their sense of happiness, belonging,acceptance and contentment. We provide employees withsmooth development channels and scientic training system,promote the deep integration of employee growth andcorporate development, and help employees tap their ownpotential and realize their self-actualization. We fulfill therequirements for occupational health and safety production,reduce health and safety risks, build solid defense forworkplace safety, and effectively protect the health andsafety of all employees.With joint contribution for shared benets, we give backto society.As a responsible corporate citizen, Aurisco notonly creates economic value but also insists on conveyingthe humanistic care spirit, actively promoting the "HeheCulture", forming distinctive brands such as Hehe Tiaojie,Hehe Cunju, and Hehe Qingfeng. Focusing on people'slivelihood, the Company engages in social benets, volunteerseices, rural revitalization and other actions, responds tosocial expectations, shares development achievements withsociety, and demonstrates corporate responsibility. In 2024,we donated over RMB 3 million in total.Steadfastly committed to original intention, we need toconstantly adapt to the challenges of the times.Looking

ahead, Aurisco will continue to uphold the corporate spiritof “holding integrity and responsibility, forging ahead withconcerted effort, and keeping harmonious and win-windevelopment”. We will work together with stakeholdersto foster a new development pattern, create greaterenvironmental, social and governance value, and steadilyadvance on the path of sustainable development towardbuilding an “international first-class pharmaceuticalenterprise!

The year 2024 is full of challenges and risks, struggles and rewards. In the face of a complex and volatileeconomic environment at home and abroad and increasingly fierce competition, we always adhere to themission of "creating a better world through providing our clients the highest quality pharmaceutical products".We uphold the spirit of “openness, cooperation, mutual learning and mutual benefit” and unswervinglyincorporated ESG concepts into our development strategy, writing a new chapter of high-quality development,contributing Aurisco's wisdom to sustainable development, providing Aurisco solutions, and demonstratingAurisco's responsibility.董事长：彭志恩

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

About Aurisco

Company Prole

Aurisco Pharmaceutical Co., Ltd. (stock code: 605116), established in 1998, focuses on the development, production and salesof complex active pharmaceutical ingredients (API) and preparations, as well as the CRO/CDMO of oligonucleotide drugs. Ithas established six major technology platforms, including biofermentation technology platform, complex synthesis technologyplatform with multi-chiral centers, synthetic biology technology platform, photochemical technology platform, cstal researchand micro-powder technology platform, and oligonucleotide synthesis technology platform.Aurisco has been deeply engaged in the pharmaceutical indust for more than 20 years, continuously promoting technologicalinnovation and implementing an integrated development strategy of APIs and preparations. Our main products includerespiratory, cardiovascular, anti-infective, neurological, anti-tumor and women's health drugs, etc., with more than 90% ofspecial APIs expoed, and we have registered the DMF documents of Eplerenone, Abiraterone and other APIs in countries suchas the United States, the European Union, and Japan. We also have obtained quality system ceications of the mainstreammarkets, such as FDA, EDQM, WHO, BGV, and NMPA. e rst domestic generic version of Dydrogesterone Tablet was availablein 2023.Aurisco has a complete production line of pharmaceutical APIs and intermediates, advanced testing equipment and facilities,as well as reliable three-waste treatment facilities, safety and re control systems and other public works facilities. In the pastthree years, the Company has established a relatively complete scientic research system, introduced and trained a groupof high-end technicians, and carried out a series of industry-academia-research cooperation projects. It has focused onindependent research and development, with cooperative research and development as a supplement. Oriented at market anddriven by innovation, we have cooperated with excellent research institutions and universities, comprehensively improving theCompany's technical merit and R&D strength, and create the core competitiveness.Aurisco has been rated as National High-Tech Enterprise, National SRDI “Little Giant” Enterprise, "Hidden Champion" Enterprisein Zhejiang Province, Zhejiang Leading Enterprise in Average Benets per Mu of Manufacturing Indust in 2019 (among theTop 20 Biopharmaceutical Companies), Zhejiang AAA Enterprise of Keeping Promise & Honouring Contracts, Zhejiang High-Growth Enterprise in Biomedicine Indust, and Taizhou Headquaers Enterprise. It has established "Zhejiang Key EnterpriseResearch Institute", "High-Tech Enterprise Research and Development Center", "Enterprise Technology Center", "AcademicianWorkstation", "Postdoctoral Workstation", and "Taizhou Key Laborato".

Corporate Culture

MissionCreating a better world throughproviding our clients the highest quality

pharmaceutical products

Vision

Strive to be a world-class pharmaceutical company through our continuouseos and a respected enterprise for our employees, customers, paners, and the

communities we live in.

Focus on customers; continuous innovation;Teamwork spirit; equal treatment and incentive to

employees; hard work.

Core Values

Hold integrity and responsibility; forge ahead with

conceed eo; keep harmonious and win-win

development.

Corporate Spirit

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) RepoAbout Aurisco

About Aurisco

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Milestones in Development

1998

2019

2020

2024

2015

2022

20062017

2021

2023

Established Dagu Chemical, thepredecessor of Aurisco

Acquired APOTEX Tianjin R&D Center andestablished Aurisco Tianjin Company

Listed Aurisco on the A-share market ofthe Shanghai Stock Exchange

Achieved Gold in EcoVadissustainability rating

Established Yangzhou Aurisco

Commenced to construct Cangshan Production Base

Established Yangzhou LianaoEstablished Aurisco Pharmaceutical Co., Ltd.

Established Shanghai Aurisco Biotech, focusingon CRO and CDMO of small nucleic acid drugs

Obtained the approval for the first generic drugDydrogesterone Tablet in China

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Achievements and Honors

EcovadisGranted byGold in EcoVadis Sustainability Rating

Zhejiang Administration for MarketSupeision Granted by

Zhejiang AAA Enterprise of KeepingPromise & Honouring Contracts

Depament of Commerce of Zhejiang

Province Granted by2022 Key Contact Foreign TradeEnterprise in ZhejiangEconomy and Information TechnologyDepament of ZhejiangGranted byTop Runners in Average Benets per Mu

in ZhejiangOrganizational Depament of the CPCTaizhou Municipal Committee TaizhouAssociation for Science and Technology

Granted byAcademician Expert Workstation

Science and Technology Bureau ofTiantai County Granted byPatent Demonstration Enterprise

of Tiantai CountyDepament of Commerceof Zhejiang Province

Granted byZhejiang Famous Export

Brand

Economy and Information TechnologyDepament of Zhejiang Granted byHeadquarters Enterprise of Private Economy

in Zhejiang Province

China Nonferrous Metals Indust AssociationNonferrous Metals Society of China Granted bySecond Prize of Science and Technology Award in

China Nonferrous Metal Industry

Zhejiang Oce of Water Conseation Depamentof Water Resources of Zhejiang Province Economyand Information Technology Depament of ZhejiangDepament of Housing and Urban-Rural Development

of Zhejiang Province Granted byZhejiang Water Conservation Benchmark EnterpriseOrganizational Depament of the CPC Taizhou MunicipalCommittee Two-New Working Committee of the CPCTaizhou Municipal Committee Granted byDemonstration Base for Party Building of “DoubleIntegration and Double Strength" Two-New

Organization in TaizhouCPC Tiantai County Committee People's Government of

Tiantai County Granted by2022 Advanced Group in Building a Modernized“Hehe City” with High Quality in Private Industry

China Patent Award ReviewOce Granted byThe 25th China Patent AwardEconomy and Information TechnologyDepament of Zhejiang Granted byZhejiang High-Growth Enterprise inBiomedicine Industry

Minist of Indust and Information Technology

Granted byNational SRDI “Little Giant” Enterprise

"Hidden Champion" Enterprise in

Zhejiang Province Granted by"Hidden Champion" Enterprise in

Zhejiang ProvinceEconomy and InformationTechnology Depament of Zhejiang

Granted byZhejiang Key Enterprise Research

Institute

Economy and Information Technology Depament of Zhejiang Zhejiang Provincial Depament of FinanceZhejiang Provincial Tax Seice, State Taxation Administration Hangzhou Customs District P.R.China

Granted byZhejijang Enterprise Technology Center

Depament of Science and Technology of ZhejiangProvince Zhejiang Provincial Depament of FinanceZhejiang Provincial Tax Seice, State Taxation

Administration Granted byHigh-tech Enterprise Certicate

走进奥锐特

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

ESG Governance

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

ESG Governance

ESG ManagementAurisco has always implemented the concept of sustainabledevelopment, constructed an internal and external integratedsustainable development strategy, integrated ESG managementinto business operations and management, and relied on its owncapabilities and strengths to car out ESG practices in multipledimensions, in order to strive for the sustainable development ofthe enterprise and create long-term value. We joined the UnitedNations Global Compact (UNGC) in July 2024, supporting theUN's 10 principles in human rights, labor standards, environmentand anti-corruption.In order to promote the eective development and implementation of ESG work, we have established a three-level ESGmanagement structure (decision-making, management and implementation), including the Board of Directors, seniormanagement, functional depaments and subsidiaries. The responsibilities of each level are clearly dened to ensure thatAurisco can fully consider ESG factors in business operations and management and further enhance the initiative andsustainability of ESG governance.

Aurisco ESG Management FrameworkHierarchical FunctionHierarchy NameResponsibilities

Decision-making

Level

Board ofDirectors

■Lead the Company’s ESG aairs and formulate the ESG strategic plansand policies;■Supeise the assessment on the Company's ESG-related impacts, risks,and oppounities;

■ Review and approve the Company’s annual ESG repo;■Supervise and inspect the implementation of ESG-related work, andprovide guidance when appropriate.Management Level

SeniorManagement

■Evaluate and manage the material topics to provide analysis andrecommendations for discussion at the decision-making level, ensuringoversight by the Board of Directors;■Promote and guide the ESG work of all functional departments andsubsidiaries;

■ Review and submit the annual ESG repo to the Board of Directors.Execution Level

FunctionalDepartmentsand Subsidiaries

■Develop stakeholder engagement plans and organize stakeholdercommunication activities;■Take charge of ESG-related management, data, case statistics, andanalysis;

■ Regularly repo the ESG achievements to the management;■ Coordinate the preparation of annual ESG repos.

Communication with StakeholdersThe expectations and demands of stakeholders are the source and driving force for us to continuously improve our ESGpeormance. In Aurisco, we are highly concerned about the impact of the Company's operations on all stakeholders, respectand safeguard the legitimate rights and interests of all paies, understand the expectations and demands of all paies in atimely manner by establishing a variety of online and oine communication channels, and dynamically incorporate them intothe Company's ESG strategic planning.According to its own development strategy and operational characteristics, and the four principles (Inclusiveness, Materiality,Responsiveness and Impact) of AA1000 Stakeholder Engagement Standard (AA1000 SES), the key stakeholders definedby Aurisco include shareholders and investors, government and regulatory agencies, customers, employees, suppliers andpaners, environment, community, etc.Inclusiveness: Ensure that all stakeholders are involved in the decision-making process.Materiality: Identify and focus on the most impoant issues for the Company and stakeholders.Responsiveness: Respond promptly and eectively to the needs and expectations of stakeholders.Impact: Measure and repo the actual environmental and social impact of corporate actions.*

StakeholdersConcerned TopicsCommunication and ResponseShareholders andInvestors

Economic peormanceCorporate governanceCompliant Business Operation

Protability enhancementImprovement of governance systemRobust internal control mechanismGovernment andRegulatory Agencies

Tax payment by lawsCompliant operationsInformation disclosureEnvironmental management

Tax Payment in Full by LawCompliance with laws and regulationsStandardized information disclosureImplementation of environmental protectionCustomers

Product quality and safetyCustomer seice managementCustomer privacy protection

Supply of quality and safe productsAfter sales seice and complaint channelsCustomer communication activitiesCustomer data and privacy management

Employees

Protection of employees’ rights and

benetsGenerous compensation and benetsTalent training and developmentOpen channels of communicationOccupational health and safety

Compliant EmploymentProtection of Legitimate Rights and Interests of EmployeesCompetitive compensation system and all-round welfare system

Comprehensive training programsClear pathway to developmentEmployee satisfaction sueyProvision of healthy and safe working environmentSuppliers & Partners

Open and fair procurement proceduresSustainable Supply ChainIndust co-construction

Sunshine purchase

Supplier empowermentPaicipation in indust activitiesEnvironment

Pollution reductionClimate change responseEnergy Conseation and Consumption

Reduction

Water conseation

Standardization of Pollution and Waste Management

Action on climate changeEngagement in the SBTiImplementation of energy conseation programsImplementation of water conseation programsCommunities

Public welfare and volunteer seicesCaring for vulnerable groupsCommunity co-construction

Paicipation in public welfare programsImplementation of volunteer activitiesPaicipation in rural revitalizationCommunity communication and publicity activities

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

ESG Governance

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Management of Material Topicse regular management of material topics can provide impoant reference for our ESG work. We have analyzed the dualmateriality of material topics, namely, the nancial materiality and impact materiality, comprehensively analyze and rank thematerial topics, develop a matrix of material topics, and make responses in the ESG repo according to the latest internationaland domestic disclosure standards such as sustainability standards (GRI Sustainability Reporting Standardsissued by theGlobal Sustainability Standards Board (GSSB),Standards of Sustainability Accounting Standards Board(SASB), etc.), standardsof mainstream ESG rating agencies (MSCI ESG rating, Ecovadis rating, etc.), relevant policy documents (Shanghai StockExchange’s Self-regulato Guidelines No. 14 for Listed Companies - Sustainability Repoing (Trial) (Exposure Draft), No. 4Guidelines for Self Governance of Listed Companies of the Shanghai Stock Exchange - Preparation of Sustainable DevelopmentRepos). Based on the results of the dual materiality assessment, we identied a total of 24 material topics.Dual Materiality AnalysisFinancialMaterialityImpactMateriality

Whether the topics are expected to have a signicant impact on the Company's business model, businessoperations, development strategy, nancial position, operating results, cash ow, nancing methods andcosts in the sho, medium and long term.Whether the Company's peormance on the relevant topics has an actual or potential signicant impacton economy, society and environment.

Flow Sheet of Topic Materiality Analysis

Step 1

Step 2

Step 3

Step 4

Understandthe context ofthe Company's

activitiesand business

relationships

Prepare a listof topics

Assess andconrm thematerialityof the topics

Report thetopics

1. Get to know the activities and

business relations of the Company.

2. Get to know the external objective

environment.

3. Get to know the key affected

stakeholders.

1. Identify other potential material

topics based on relevant standardsand guideline.

2. Identify the impacts, risks, and

opportunities related to the agenda,summarize them, and make a list oftopics.

■

Analyze the Company's growth plans andstrategies;■

Examine the Company's activities, products,seices, etc.■

Analyze legal and regulato policies related tothe Company;■

Analyze unclassied documents.■

Identify key stakeholders;■

Analyze existing stakeholder engagementapproaches.■

Identify other topics of nancial or impactmateriality based on indust characteristics,development stages, business models, and valuechains.■

Identify material topics and improve the topics listthrough internal processes such as due diligenceand risk management, as well as organizing relevantregulato policies, rules, indust standards anddevelopment trends, and peer analysis.

1. Assess the impact materiality

1. Disclose the topics

■

Primarily meet the information needs of aectedstakeholders, and provide sustainability-relatedinformation that helps assess the externalities of theCompany's operations.

■

After completing the materiality assessment,disclose the results in the ESG repo.

■

Primarily meets the information needs of key usersof general-purpose nancial repos. e nancialmateriality assessment is rst to identify the risks andoppounities that aect or may aect the Company'sbusiness operations, nancial condition, operatingresults, cash ows, etc., and then assess whether thereare signicant nancial impacts.■

Summarize the results after evaluating the impact,risks, and oppounities of each topic.

3. Integrate the results of impact and

nancial materiality

2. Assess the nancial materiality

1011

Impact Materiality

Financial MaterialityLowLow

Medium

Medium

High

High

Environmental Topics

Governance Topics

Social Topics

Matrix of Material Topics

1.Pollution and Waste Management

2.Climate Change Response

3.Environmental Management

4.Energy Conseation and Consumption Reduction

5.Water Resource Management

6.Circular Economy

7.Green Operation

18.Communication with Stakeholders

19.Corporate Governance

20.Compliance Management

21.Compliance with Business Ethics

8.Sustainable Supply Chain

9.Protection of Employees’ Rights and Benets

10.Occupational Health and Safety

11.Employee Development

12.Employee Care

13.R&D and Innovation

14.Employee Communication

15.Customer Seices

16.Product Quality and Safety

17.Communities Welfare

22.Information Security

23.Information Disclosure

24.Relationship with Investors

Prudent Governanceto Build A SolidFoundation forDevelopment

This chapter page table of contents

■ Corporate Governance Strengthening■ Internal Control Foication■ Compliance with Business Ethics

■ Information Safeguarding■ Investor Relations Management

Governance to Build A Solid Foundation for Development

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Corporate Governance StrengtheningAurisco has built a standardized and orderly governance system in accordance with the requirements of theCompany Lawof the People's Republic of China, theSecurities Law of the People's Republic of China, theCode of Governance for ListedCompanies, theRules for Listing of Stocks on the Shanghai Stock Exchangeand other laws, regulations and normativedocuments on the governance of listed companies. e Company sets up a corporate governance structure which is primarilyconsisted of the Shareholders' Meeting, the Board of Directors, the Board of Supeisors and the General Manager, with clearrights and responsibilities, and eective checks and balances, continuously improving the Company's governance level andoperational eciency.

Governance Structure

Stockholders' Meetinge Shareholders' Meeting is the highest authority of the Company. We develop theRules of Procedure for the Shareholders'Meetingin order to convene and hold the shareholders' meeting normatively and exercise their functions and powers accordingto law. We hold the shareholders' meeting on site, and provide convenience for shareholders to paicipate in the meetingthrough a safe, economic and convenient network, and fully protect their rights and interests.

Number of resolutions approved:

Board of Directors

e Board of Directors is the executive body of the Company, responsible for operation and management according to law,and accountable to the shareholders' meeting and repoing on its work. e Company formulates theRules of Procedureof the Board of Directors, further regulating the deliberation methods and decision-making procedures of the Board ofDirectors, urging the Directors and the Board of Directors to effectively perform their duties, and improving the standardoperation and scientific decision-making level of the Board of Directors. We also develop theWorking System of SpecialMeetings of Independent Directors, give full play to the functions of independent directors in the Board of Directors in termsof paicipation in decision-making, supeision and check-and-balance, and professional consultation, so as to safeguard allthe benets of the Company and protect the legitimate rights and interests of small and medium-sized shareholders. We alsoattach impoance to the diversity of board members. e Board of Directors is complementa in terms of gender, professionalbackground, industry experience, etc., which contributes to making more comprehensive and objective decision-making,thereby enhancing the eectiveness of the Board of Directors.

Board of Supeisors

e Board of Supeisors is the supeiso body of the Company. In strict accordance with theCompany Law of the People'sRepublic of China, the Articles of Association and other requirements, the Board of Supervisors upholds its supervisoryfunctions to inspect the Company's finances, supervise the behavior of directors and senior managers in performingtheir duties, so as to safeguard the legitimate rights and interests of the Company and shareholders and promote thestandardization of corporate governance.

Stockholders' MeetingStrategic Committee

Board of Directors

Board of Supervisors

Board Secretary

Securities & Legal Dept.General Manager

Compensation andAssessment CommitteeNomination CommitteeAudit CommitteeAudit Dept.

Key Performance in 2024

Key Performance in 2024

Key Performance in 2024

Number of shareholders' meetings held:2

Number of board members:9Number of board meetings held:7

Number of female directors:1Number of resolutions approved: 42

Number of independent directors: 3

Number of members of theBoard of Supeisors:3

Number of employeesupeisors: 1

Number of meeting held by theBoard of Supeisors:6

Number of resolutionsapproved:27

Governance to Build A Solid Foundation for Development

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Internal Control Fortication

In accordance with the provisions of the Basic Standards for Enterprise Internal Control and its supporting guidelines andother internal control regulato requirements (referred to as the "Standard System for Enterprise Internal Control"), Auriscoestablishes a set of internal control systems and evaluation methods that are compatible with the actual operating conditionsof the Company. e internal control system covers key business processes such as organizational structure, developmentstrategy, human resources, and social responsibility, effectively preventing various risks and promoting the healthy andsustainable development of the Company.Based on the requirements of risk assessment of the internal control standard system, we accurately identify internal andexternal risks related to the realization of control objectives through questionnaires, inteiews, data analysis and other means,determine the relevant risk tolerance, and improve the risk management mechanisms and processes. e Audit Depamentregularly conducts inspection and internal supeision on the risk management mechanisms and processes, and timely feedsback problems and improvement measures to help the responsible depaments nd internal control defects, so that they cancontrol the risks in the round, and provide eective guarantee to realize the Company's strategies and business objectives. In2024, the Company's internal environment was favorable, internal control measures were eective.

Elements Concerned in Risk Identication by Aurisco

Internal riskExternal risk

Human resource factors such as the professional ethics of directors,supeisors, managers and other senior management personnel

and the professional competence of employees

Economic factors such as economic situation, industrialpolicies, nancing environment, market competition, and

resource supplyManagement factors such as organization, operation mode, asset

management, and business process

Legal factors such as laws, regulations and regulato

requirementsIndependent innovation factors such as R&D, technologyinvestment, and information technology application

Social factors such as security and stability, culturaltradition, social credit, education level, and consumer

behaviorFinancial factors such as nancial status, operating results and cash

ow

Scientic and technological factors such as technological

progress and process improvementSafety and environmental factors such as operational safety,employee health, and environmental protection

Natural environment factors such as natural disasters and

environmental conditionsOther factors related to internal risksOther factors related to external risksHigh-risk Areas Concerned by Aurisco

Compliance with Business EthicsBusiness ethics is a core value of corporate governance. Aurisco keeps to the stringent specication of business ethics, andsets foh business ethics principles in theBusiness Ethics Policy, expressly prohibiting commercial corruption, bribe, unfaircompetition and other conducts. It also works with employees and paners to maintain a sunny and transparent businessenvironment. We require all employees to sign theCommitment Letter of Business Ethics Policyto ensure that the policy can beimplemented.Anti-Corruption and Anti-BribeThe Company adheres to the relevant laws andregulations on anti-corruption and anti-bribery,establishes a sound anti-bribery managementsystem, and applies a zero-tolerance policy onemployees giving or accepting bribes. We resist allforms of corruption and bribery, and standardizethe business behaviors of employees, managers,suppliers and other partners to promote thesound development of the Company. In 2024, theCompany maintained the validity of ISO 37001anti-bribery management system certificate, andYangzhou Lianao and Yangzhou Aurisco passedthe ISO 37001 ceication.

ISO 37001 Ceicate

e Company has always prevented against corruption and bribe into daily governance and business processes, adoptssevere punishment for corruption, prevent and control corruption and bribery in a more scientific and standardized way,ensuring that employees do not have the audacity, oppounity or desire to become corrupt. We develop the Measures forthe Management of Labor and Moral Hazard Assessment, and fully identify the risks of corruption and bribe with the helpof tools such as the Labor and Business Moral Hazard Assessment Form, constantly plugging loopholes in the system andeliminating regulato blind spots, so as to build a more complete security barrier for the healthy development of the Company.We car out anti-corruption and anti-bribe training and publicity at all levels to all employees. e main contents includeanti-corruption regulations and typical case analysis. We intend to build a work culture that meets business ethics, guideemployees to establish a sense of compliance with regulations and discipline, and set up a strong "rewall" against corruption.In July 2024, we organized four sessions of business ethics training for all employees, promoting a culture of integritycomprehensively.

Business Ethics Training of Aurisconti-Bribe Training in Yangzhou Lianao Training on Anti-Corruption and Anti-Bribe

Awareness in Yangzhou Aurisco

Human resourcesAssetmanagement

Financial activitiesDistributing

business

Purchasing businessResearch anddevelopment

Constructionprojects, etc.

Governance to Build A Solid Foundation for Development

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Fair Competition

According to laws and regulations such as theAnti-Monopoly Law ofthe People’s Republic of China and the Anti-Unfair Competition Lawof the People’s Republic of China, Aurisco conducts business activitiesin an honest and transparent way, and actively pushes forward theconstruction of a fair competition environment, thereby promoting thestable and sustainable development of the Company's businesses.e Company establishes an ecient monitoring system and protectsthe legality and compliance of business transactions through scienticevaluation procedures. We promise to refuse to seek competitiveadvantage through unethical or illegal behavior, and explicitly prohibitemployees from using illegal means to obtain trade secrets orother condential information of third paies, as well as maliciouslyspreading untrue information about competitors and their productsand seices. We advocate winning the market with quality productsFair Competition Training

Complaint and Whistleblowing Mechanisms

In order to prevent business ethics risks, we provide smoothwhistleblowing channels and encourage employees and otherstakeholders to repo violations of business ethics (including but notlimited to corruption, bribery, favoritism and fraud). We take everywhistleblowing case seriously, veries and investigates the case, strictlyimplements the whistleblower protection mechanism, promises tokeep condential the personal information and information providedby the whistleblower, and prohibits any retaliation against them. Inaddition, each subsidia sets up a number of whistleblowing channelsaccording to own operational characteristics to prevent and controlbusiness ethical risks in an all-round way. In 2024, we did not receiveany whistleblowing cases.

Whistleblowing Hotline：

0576-83177335Whistleblowing Email：

shenji@aurisco.com

Whistleblowing Channel Information of Yangzhou Lianao

Information SafeguardingInformation Security Management System

In the digital age, information security has increasingly become the core competitiveness of enterprises. Aurisco strictly followsthe ISO/IEC 27001 system, formulates internal regulations and operational procedures such as theInformation System SecurityManagement System, and builds a comprehensive, efficient and closed-loop information security management system toensure the normal operation of the Company's network platform and information systems, as well as the security of informationdata. e Company implements the information security responsibility system, appoints the information security responsiblepersons for each depament and position, and ensures that the responsibility is assigned to specic individual. Employeesin important posts must be examined for information security skills before taking up their posts, and strictly abide bycondentiality regulations and relevant information security management regulations. In 2024, Aurisco maintained the validityof the ISO/IEC 27001 ceicate, and Yangzhou Lianao and Yangzhou Aurisco passed the ISO/IEC 27001 ceication.

ISO/IEC 27001 Ceicate

Whistleblowing Channel

Key Performance in 2024

Number of business ethics training sessions:21Coverage rate of business ethics training:100%Hours of business ethics training per employee:

Number of conrmed corruption incidents:0Number of complaints and whistleblowing cases:0

and excellent services. We unswervingly defend the principle of fair competition and promote the healthy development ofthe market economy. In 2024, the Company did not engage in unfair competition, monopolistic behavior, or related legalproceedings.

Governance to Build A Solid Foundation for Development

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Information Security Management MeasuresInformation Security Risk ManagementInformation security risk management is a key link to strengthen the construction of information security guarantee system.e Company regularly assesses the information security risks, establishes scientic risk assessment methods, claries riskacceptance criteria, and identies acceptable levels of risks. In addition, we review the residual risks to verify that they areacceptable. For unacceptable paicipation risks, we take control measures until all information security risks are reduced to beacceptable.

Control Process of Information RisksRisk identication

Risk analysis and evaluation

Risk treatment

Residual risk management

●Identify all assets and their owners; assign a quantitative value to each asset in terms of confidentiality, integrity,availability, laws and regulations, and level of impoance; determine whether it is an impoant asset in accordance withthe guidelines for determination of impoant assets, and prepare aList of Information Asset Identication;●Identify threats to these assets, vulnerabilities that could be exploited by threats, and existing control measures andtheir eectiveness; calculate the impact on impoant assets in the event of loss of condentiality, integrity and availabilityby assigning values.

● Calculate the impact value of risk occurrence based on the value and vulnerability severity of impoant assets;●Assign values to each threat based on its frequency of occurrence, vulnerability, and ease of exploitation, and calculatethe likelihood of risk occurrence;●Calculate and determine the risk level according to theRisk Management Procedure for Information Security;●Determine whether the risk is acceptable or needs to be addressed according to theRisk Management Procedure forInformation Security and risk acceptance criteria.

●According to the results of risk assessment, develop a Risk Management Proposal for Information Security, specifythe responsible department, person in charge, handling methods, as well as the start and completion time for riskmanagement.

● Review residual risks after risk treatment and verify whether they are acceptable.

In October 2024, Yangzhou Aurisco assessed information security risks and issued aReport on Information SecurityRisk Assessment. A total of 741 assets were identied in this assessment, including 268 high-risk assets. Managementmeasures were developed for all high-risk assets. After the implementation of control measures, all high-risk assetswere changed to be acceptable. This assessment gave a comprehensive presentation of threats in the informationsystems, clearly disclosing the vulnerabilities and security risks in the construction of information systems, and laying thefoundation for the establishing a long-term mechanism for risk assessment and management.

CaseYangzhou Aurisco assessed information security risks

Regular Governance of Information SecurityBased on information security risk assessment and management, we prevent against network attacks, strengthen passwordsecurity, control cloud application security, deploy a security monitoring system, and enhance awareness of informationsecurity, so as to strengthen information security and network security governance, further consolidate the foundation ofinformation security, and provide a secure information use environment for employees and paners.MeasuresTargetsStrategiesPrevent againstnetwork attacks

Protect the security of systems andseices by eectively defendingagainst external network attacksthrough technical means.

●Firewall and Intrusion Detection System: Deploy advanced rewall and intrusiondetection system to monitor and block malicious trac in real time.●Security Updates and Patch Management: Install the latest security patches forsystems and applications in a timely manner to x known bugs.●reat Intelligence Collection: Subscribe to professional threat intelligence seicesfor early warning of potential attacks.Strengthenpasswordsecurity

Ensure the eectiveness ofpasswords as the rst line ofdefense against unauthorized

access

●Complex Password Policy: Require a strong password (containing capital andlower-case letters, numbers, and special characters) and change it regularly.●Multi-Factor Authentication: Enhance account security by the combinationof password, biological recognition, cell phone verication code, and otherauthentication methods.●Password Management Tool: Promote the use of password manager to helpemployees securely store and manage complex passwords.Control cloudapplicationsecurity

Ensure the security of dataand applications in the cloudenvironment and prevent thesecurity risks of cloud seiceproviders from aecting users

●Cloud Security Assessment: Conduct a detailed security assessment when selectinga cloud seice provider, including data encption and access control.●Cloud Seice Conguration Review: Regularly review cloud seice congurationsto ensure that best security practices are followed.●Data Backup and Recove Plan: Develop and implement a data backup policy toensure rapid recove in the event of data loss or corruption.Deploy asecuritymonitoringsystem

Reduce potential losses by

detecting and responding tosecurity incidents in time throughrelevant systems

●Encption Software: Install encption software in the Company to eectivelyprotect data from unauthorized access.●Network Access: e Company's internal network is controlled by a network accesssystem, and unauthorized users cannot access the internal network.

●Internet Behavior Monitoring: By monitoring employees' Internet activities,managers can discover and correct improper behaviors in time to improve workeciency; Apply a monitoring software to eectively prevent the leakage of sensitivedata and protect the core interests of enterprises.

Enhanceawareness ofinformationsecurity

Enhance all employees' awarenessof and attention to information

security, and form a cultural

atmosphere of “eveone is aguardian of information security”.

●Regular Training: Regularly organize information security training, including thelatest threat trends, security operation norms and other contents.●Practical Exercises: Enhance employees' prevention awareness and responsecapabilities by simulating scenarios such as phishing emails and malware attacks.●Incentive Mechanism: Organize information security knowledge contests,excellent security practice recognition, etc. to stimulate employees' enthusiasm forpaicipation.

Governance to Build A Solid Foundation for Development

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Handbook on Condentiality Knowledge of Aurisco

Information Security Training of Aurisco

Information Security Training of Yangzhou Lianao

Information Security Management System Training

of Yangzhou Aurisco

Investor Relations Management

Information Disclosure

According to laws and regulations and the requirements of the Aicles of Association of the Company, we disclose informationin a true, accurate, complete, promptly, concise and clear manner, and continuously optimize the content and presentationof information disclosure. e Company formulates the Information Disclosure Management System,faithfully peorms theobligation of continuous information disclosure, releases it to the public within the prescribed time, through the prescribedmedia, in a prescribed manner, and submits it to the securities regulato authorities in accordance with the regulations. In2024, the Company had not been punished by the regulato authorities for information disclosure violations.e Company discloses the information based on the needs of investors, and constantly strengthens the daily managementof insider information, eectively avoids selective information disclosure, and safeguards the rights and interests of small andmedium-sized investors. e Company was rated as Grade B ("Good ") in theEvaluation Results of Information Disclosure ofShanghai Listed Companies (2023-2024) released by the Shanghai Stock Exchange.

Investor CommunicationWe make great efforts to expand communication channels for investors, promptly convey strategic planning, businessperformance, and other information to investors through various channels such as shareholders' meetings, performancepresentations, field investigation, "SSE e-Interaction", hotline, and investor relations email. We keep prompt and efficientcommunication with investors, get full understanding of investors' demand, answer their questions, and listen to their opinionsand suggestions, creating an open and transparent capital market.

Key Performance in 2024Number of periodic repos issued:4Number of tempora announcements issued:71

On December 2, 2024, Aurisco held a peormance brieng for the third quaer of 2024 at the Shanghai RoadshowCenter of Shanghai Stock Exchange, communicating with investors on issues of their concern, and helping them gaina more comprehensive and in-depth understanding of the Company's operating results and nancial situation.

CaseAurisco held a performance brieng for the third quarter of 2024

Information Security Emergency Management

The Company sets up a comprehensive information security incident response and emergency disposal mechanism so asto quickly respond to various security incidents. We have a command group for handling security incident emergency ofinformation system, which is responsible for the organization, command and emergency handling of information systemsecurity incidents. To respond more eciently to information security incidents, we establish emergency response processesbased on the causes, scenarios and other propeies of the incidents, including hardware failures, system failures, virus failures,network failures, etc., so as to standardize the management of information security emergencies. Fuhermore, we regularlyconduct emergency drills to improve employees' ability to deal with unexpected information security incidents by simulatingreal scenarios.

Key Performance in 2024Number of conrmed information security incidents:0

Innovation-DrivenDevelopment toCreate Lean Products

This chapter page table of contents■ Adherence to Innovation-Driven Development■ Pursuit for the Premium Quality

■ Provision of High-Quality Seice

Innovation-Driven Development to Create Lean Products

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Adherence to Innovation-Driven DevelopmentTechnological innovation is the core engine to drive continuous breakthroughs. Adhering to the R&D spirit of continuousimprovement and innovation”, Aurisco actively promotes the development and innovation of fluoridation technology,photochemical reaction technology, catalyzed oxidation technology, and selective oxidation technology, continuouslyenhancing the core competitiveness.R&D ConstructionR&D Team

e Company closely combines talent development with corporate growth. Following the principle of self-training as the mainapproach, supplemented by introduction and joint training, we set a R&D team with strong technical strength, rich practicalexperience and reasonable age structure. By the end of 2024, the Company has more than 269 R&D personnel, including 252employees with bachelor's degree or above (accounting for 93.68%). ey are engaged in the R&D of APIs and preparations,assay development, etc., and provide comprehensive technical support and innovative solutions for the R&D of differentproducts.In order to strengthen the reward management of R&D projects such as new products, new processes, and technologicalprogress in products and suppoing facilities, and to stimulate the enthusiasm, initiative and creativity of employees engagedin the transformation of scientic and technological achievements, the Company has formulated theNew Project IncentiveSystemand theInnovation Management Procedure, which provides detailed reward provisions for the implementation ofnew product projects and the improvement and update of online products. In addition, we develop aPatent Reward System

to provide appropriate rewards for intellectual propey inventors and ensure that the Company's invention achievements areapplied for patents in a timely manner.

R&D Platform

e Company is an impoant research center of steroid drugs, anti-tumordrugs and antiviral drugs in Zhejiang Province. It has established "ZhejijangEnterprise Technology Center", "Provincial High-Tech Enterprise R&D Center"and "Taizhou Key Laboratory of Green Synthesis Technology of HormoneDrugs", providing strong technical support for new product R&D, processoptimization and quality control. In 2024, the "Zhejiang Key EnterpriseResearch Institute of Prostate Cancer Drug" of Aurisco was included into theList of Provincial Key Enterprise Research Institutes to be Recognized in 2024

in Zhejiang Province.R&D CenterYangzhou Aurisco has also strengthened theconstruction of its R&D platform, optimized theinnovation environment by optimizing resourceallocation and providing funding guarantee, andimproved the R&D efficiency, laying the foundation forthe bih of new technologies and products. With solidinnovation capabilities, Yangzhou Aurisco has been ratedas “High-Tech Enterprise" and "SRDI Small and Medium-sized Enterprises in Jiangsu Province", and included inthe "List of Provincial Engineering Technology ResearchCenters".

Industry-Academia-Research Cooperation

We are committed to building a comprehensive industry-academia-research system, achieving technological innovationand upgrading through complementa advantages of all paies. At present, the Company has established long-term closecooperation with Shanghai Jiaotong University, Zhejiang University, Zhejiang University of Technology, Shanghai Institute ofOrganic Chemist,CAS, Shanghai lnstitute of Pharmaceutical Indust Co.,Ltd., East China University of Science and Technology,East China Normal University and other colleges, universities and institutions. It also establishes provincial postdoctoralworkstation and provincial academician workstation, to achieve the deep integration of technological innovation and industrialdevelopment. In the future, the Company will continue to strengthen cooperation with universities and research institutions,promote the transformation and application of scientific research results, and inject new impetus into the high-qualitydevelopment of the Company.

Innovation AchievementsAurisco continues to increase R&D investment, strengthen key technology breakthroughs, and deepen its innovation. Multipleinnovative achievements have been successively implemented, injecting inexhaustible power into the Company's high-qualitydevelopment. In 2024, the Company submitted 29 patent applications in total, including 6 for PCT international inventionpatent and 7 for foreign national-phase invention patent. We were authorized 13 new invention patents and 1 new foreigninvention patent (in the United States).In December 2024, one of the Company's invention patents - "preparation method ofEplerenone (Patent No.: ZL200910049351.0)", was granted the "Excellent Award of the 25th China Patent Award".e two R&D projects of the Company were included in the Science and Technology Plan of Zhejiang Province, namely "Studyon High-End Generic Drug Development - High-end Imitation Technology and Application of Androgen Receptor AntagonistEnzalutamide in the First-Line Treatment of Prostate Cancer" and "Preclinical Study of DIP-1018, An Anti-prostate Cancer DrugBased on Novel AR dimerization Site". In addition, we are actively engaged in R&D projects to fuher improve our R&D andtechnological innovation system for new products and processes.List of Provincial Science and Technology Programs

S/NProject No.Project NamePositioning

12022C03178

High-end imitation technology and application of androgen receptor antagonist

Enzalutamide in the rst-line treatment of prostate cancer

Contractor22023C03110

Preclinical study of DIP-1018, an anti-prostate cancer drug based on novel AR

dimerization site

Paicipant

In Janua 2024, in order to improve technical resee capacity and enhance product competitiveness, the Companydecided to establish a project for R&D of the preparation process for Upadacitinib. e Company deeply studied thekey points of technology, soed out innovative ideas, determined research programs and technical routes, and laid asolid foundation for the bih of new technologies, new products and new directions.

CaseThe Company initiated the R&D of the preparation process for Upadacitinib.

Innovation-Driven Development to Create Lean Products

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Pursuit for the Premium Quality

Quality Management SystemAurisco adheres to the quality policy of "meticulousproduction, high quality and efficiency, dedicatedservice, continuous innovation". According to theISO 9001 quality management system,ICH Q7: theGuidelines for the Good Manufacturing Practice of APIs

and theGood Manufacturing Practice, it has establisheda sound quality management system and a perfectquality organization structure to monitor and managethe quality of products throughout their lifecycle.According to the quality policy, we comprehensivelyevaluate the Company's performance and productquality, set quality objectives, and decompose them tofunctional departments, promoting the enhancementand continuous improvement of the quality managementsystem.

AU-GMP Ceicate of AuriscoISO 9001 Ceication of Yangzhou Lianao

Quality Organizational Structure

Achievement of Quality Objectives in 2024S/NItemsTargets

Actualization of Quality

Objectives

First-pass Yield of Finished

Products

≥98%Achieved2Customer satisfaction

Number of major quality incident complaints in

2024: 0

Achieved3Pass rate of quality audit100%Achieved

Quality Management Measures

The Company integrates quality management throughout the product lifecycle, including contract review, design control,document and data control, control of customer-provided products, product identication and traceability, process control,and inspection, to ensure that the products strictly comply with the relevant standards from design to delive.Quality Risk Management

We identify, analyze and assess quality risks fromthe perspectives of human, machine, material, law,environment and testing. For the identied quality risks,the Company denes the person in charge of quality riskprevention and control, and adopts a variety of meansto implement scientific risk prevention and control,effectively avoiding or reducing risks. Any productionprocess that affects product quality is configuredwith clear process specifications, and all processspecifications must be verified by process. Whenthere is a deviation from control requirements in theproduction process, it should be managed according tothe deviation handling procedure. We regularly inspectraw materials, packaging materials, intermediates andfinished products required. They can only be put intonext production step after passing the inspection.Nonconforming Product ManagementThe Company has established a standard procedure for handling nonconforming products, in order to control and strictlymanage nonconforming materials or products that are found in the Company's daily receiving, inspection, production,packaging, and storage processes, preventing confusion and loss of nonconforming products. Nonconforming products mustbe clearly marked and placed in the nonconforming products warehouse, effectively isolate them and preventing misuse.The QA organizes relevant departments to review the cause analysis, corrective and preventive measures, and treatmentsuggestions for nonconforming products, which may include rework, reprocessing, scrapping, etc. After reworked, thenonconforming products must be re-assessed for quality, and can only be warehoused or used after passing the inspection.Product RecallThe Company formulates the Management Procedures for Product Recall to clarify the responsibilities and collaborationmethods of various depaments, ensuring that products with quality problems or safety risks can be eectively recalled fromthe market, safeguarding patient medication safety, and preventing drug safety incidents. After the product recall is completed,the Recall Team prepares a Product Recall Report, clarifying the quantity of products issued, recalled and handled, andproposing corrective and preventive measures for approval by the General Manager.The Company regularly conducts simulated recalls, and the QA comprehensively evaluates and confirms the selection ofsimulated recall products, batches, and market distribution factors to ensure the representativeness of simulated recalls, andevaluates the traceability, eectiveness, and feasibility of simulated recall experiments and product recall procedures. In 2024,there were no product recalls in the Company.

Vice President of Quality - Person in Charge of Quality

Quality Director

QA ManagerQA Deputy Manager

QA Assistant Manager

QA Manager

Center ControlSupeisor

TeamLeader

TeamLeader

TeamLeader

TeamLeaderBioassay Director

QA Deputy Manager

QA Assistant Manager

Production QAInspection QA

Comprehensive QA

Document QA

Logistics QA

Verication QA

Center ControlTeam

InspectionTeam 1

InspectionTeam 2MicrobeTeam

Documentmanagement

SampleManagement

InstrumentManagement

In 2024, Yangzhou Aurisco built a LIMS system to realizethe full traceability of pharmaceutical products fromraw material procurement, production and preparationto nished product testing, record the testing data ofeach link, and ensure the integrity and accuracy of thedata, helping the Company quickly locate the source ofproduct quality problems, take corrective measures intime, and improve the controllability of product quality.

Case

Yangzhou Aurisco built a LIMS system toenhance quality control

Innovation-Driven Development to Create Lean Products

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

In June 2024, Aurisco participated in the CPHI China 2024, showcasing its new products and achievements,cooperating and exchanging with multiple customers, collecting their opinions and suggestions, laying the foundationfor building new connections and creating new value.

CaseAurisco participated in CPHI CHINA 2024

Provision of High-Quality ServiceCustomer Relationship Management

Aurisco adheres to the core values of "customer-focused", specically providing customers with safe and reliable products andseices based on their needs. It also constantly optimizes the hardware and software resources such as manpower resource,infrastructure and technology so as to provide leading products and quality seices to global customers.We establish diversied communication channels with customers, including Email, telephone, on-site visits and exhibitions,ensuring that customers can get prompt assistance and suppo in the lifecycle of products, whether it is before, during orafter sales. We extensively collect customer feedback, deeply understand the personalized needs of dierent customers, andapply these needs to the design, marketing, process improvement, and other business development of products and seices,continuously improving customer satisfaction.

Customer Complaint ManagementIn order to ensure that customer complaints can be resolved in a timely and effective manner, and to protect the rightsand interests of customers, the Company has developed theManagement Procedures for User Complaints Handlingandestablished a comprehensive closed-loop management mechanism for customer complaints. According to the impact ofcustomer complaints on product quality, we divide complaints into major complaint, main complaint, and general complaint.Customer Complaint Level

We analyze the causes of customer complaints, formulate targeted corrective and preventive measures, and evaluate theireectiveness, ensuring that each complaint is handled appropriately. Complaints are not closed until a satisfacto responseis received from the customer. After the complaint is closed, if the customer has fuher feedback, the complaint will be re-investigated and fed back until the customer agrees.In 2024, the Company did not receive any customer complaints.

Majorcomplaints

Maincomplaints

Generalcomplaints

Complaints that seriously endanger or harm the safety of users, such as allergensin products, and TSE/BSE contaminationComplete prelimina investigation in 7 days, propose handling suggestions, andidentify the scope of impact.e product under complaint has inherent quality defects and risks that mayendanger or harm the safety of users, such as non-compliance in content,purity, and loss on ding.Complete the complaint investigation repo in 10 working days and putforward prelimina handling suggestions.

Complaints that do not pose a risk to product quality and safety (such aspaicle size nonconformity) and complaints that have no clinical signicance(such as label information and weight shoage)Complete the complaint investigation repo in 10 working days and putforward prelimina handling suggestions.

Product Recall LevelLevel 1

recallLevel 2

recallLevel 3

recall

e medicine may cause or has caused serious healthhazards, for example, wrong products (labeling andcontents are different), recall ordered by domesticand foreign drug regulato authorities, etc.

Products sold at home: recalled within 30 daysProducts sold abroad: recall within 60 daysProducts sold at home: recalled within 60 daysProducts sold abroad: recall within 90 daysProducts sold at home: recalled within 90 daysProducts sold abroad: recall within 180 daysThe medicine generally does not cause healthhazards, but needs to be recalled for other reasons,such as incorrect label and packaging pollution.

The medicine may cause or has caused temporaryor reversible health hazards, such as failure to meetquality standards (content, stability).

ResponsibilityCoordination toDraw a New Chapterin the Industry

This chapter page table of contents■ Contribution to Industrial Development■ Sustainable Supply Chain

Responsibility Coordination to Draw a New Chapter in the Indust

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Contribution to Industrial DevelopmentAurisco makes it own mission to promote industry development,takes pa in the indust ecosystem, paicipates in standard setting,and contributes to the standardized development of the indust. eCompany has paicipated in many indust conferences, and had in-depth exchanges with domestic and foreign paners, continuouslystrengthening information sharing and work collaboration, discussingindustry trends and challenges, and promoting the prosperity andsustainable development of the indust.

In 2024, one group standard was prepared.◆Byproduct of Chemical API Manufacturing- Sodium Iodide

Sustainable Supply Chain

Aurisco knows that good supply chain management is crucial to enhancing its core competitiveness. We integrate ESGconcepts into supply chain construction and promote supplier diversification, creating more opportunities for vulnerablesuppliers. We strive to create a responsible supply chain and work with upstream and downstream partners to build asustainable supply chain ecosystem.

Supplier Control ProcedureIn order to maintain the products alwaysat high quality and high standard, we haveformulated internal systems such as theStandard Management Procedures for MaterialClassification and Supplier Managementandthe Supplier Audit Management Procedures.Based on digital technologies, we haveestablished a comprehensive suppliermanagement process that covers all aspectsof supplier addition or change, evaluation andapproval, and continuous management andconfirmation, strictly ensuring that suppliersmeet company requirements and reducingsupply chain risks.

Supplier Management Process

Supplier Addition or Change

Supplier evaluation and approval

In May 2024, Aurisco participated in the Oligonucleotide & PeptideTherapeutics (TIDES) conference held in Boston, USA. During theconference, Aurisco leveraged its own advantages to engage inexchanges and negotiations with industry colleagues on businesscooperation. It focused on industry development strategies, trendsand technologies, and shared the latest market dynamics to plot thefuture development of the industry. Aurisco intended to promotethe exchange and circulation of industry resources, advanced thecomplementation of advantages, and joined hands to write a newchapter of mutually benecial cooperation, contributing more wisdom,solutions and strength to the high-quality development of the indust.

CaseAurisco participated in the 2024 TIDES Conference in the United States

Addition or changeof suppliers

Supplier evaluationand approval

Continuous managementand conrmation of suppliers

Supplier selection

Supplierevaluation

Supplier le establishmentand updateSupplier directo updateAnnual evaluationPeriodic audit

Prelimina suey andevaluation of suppliers

Supplierapproval and

rejectionSample testingand pilot testing ofsuppliers (if necessa)

Preliminary surveyand evaluation of

suppliers

Quality re-assessment ofsuppliers

Audit and approval

of suppliers

●After receiving the Supplier Approval Form, the logistics QA evaluates and confirms the basicinformation and qualications, and reviews the results of the questionnaire suey.●The QA conducts a preliminary quality assessment based on survey questionnaires, informationprovided by the suppliers and relevant suppoing documents to assess whether they can proceedwith the next quality assessment.

●The QA evaluates the quality results of suppliers based on the results of incoming materialsinspection and of materials inspection, providing a basis for supplier approval.●After the purchased materials are used in formal production or production trial, the ProductionDepament explains the use and results of the materials.

●The Logistics Department evaluates whether the supplier can be approved according to thecomments of the QA and the Commerce Depament.●e QA Manager provides review comments on supplier approval.●e QA Head comprehensively evaluates whether the supplier is approved as a qualied supplier.●After the supplier is approved, it will be included in the catalog of approved suppliers.

Supplier selection principleSupplier screening requirements

● Two or three suppliers should be selected for

materials that have a signicant impact on productquality and are used in a large amount.

● The production organization and quality

management of suppliers of APIs, pharmaceuticadjuvants and registered intermediates used inthe production of preparations shall fully meet therequirements of GMP and comply with relevantstatuto standards.

● Packaging materials and containers in direct

contact with pharmaceutical products shouldcomply with relevant statuto standards.

●The Purchasing Department selects potentialsuppliers based on the material specifications,and has a preliminary understanding of theirqualications, production capacity, price, reputation,delive speed, etc.●After distributing survey questionnaires topotential suppliers and getting back the answeredquestionnaires, the purchasers preliminarilyevaluate and confirm that they basically meet therequirements, and then ll in theSupplier ApprovalForm.

Responsibility Coordination to Draw a New Chapter in the Indust

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

ESG Management of Supply Chain

Supplier ESG Management

e Company has formulated theSustainable Procurement Policies, established the supplier ESG evaluation system, and putforward clear requirements for suppliers' labor and human rights, occupational health and safety, environmental protection,sustainable procurement management, etc. Priority is given to suppliers with outstanding ESG peormance to be the long-term paners, so as to build a more responsible supply chain ecosystem.

Continuous Management and Approval of Suppliers

We assess suppliers' ESG peormance and evaluate their ESG risks through methods such as theSupplier EHS Questionnaire

and theSupplier Questionnaire on Human Rights and Labor. e new suppliers who pass the audit need to sign theLetterof Anti-Commercial Bribe Commitment, theLetter of Supplier Social Responsibility Commitmentand theSupplier Code ofConduct before they become qualied suppliers.We conduct on-site audits on suppliers' social responsibilities and require them to provide qualification certificates anddocuments. Upon completion of the audit, we issue an audit repo and send a list of deciencies to the audited supplier.e supplier submits a corrective action repo within 30 days after receiving the list. e audit can be closed only after thecorrective measures responded by the supplier are approved, and the corrective measures will be veried on site in the nextaudit. In 2024, we conducted on-site audits on 20 suppliers.While strengthening our own ESG construction, we also take the initiative to share ESG knowledge and excellent ESGpractices with suppliers, help them carry out ESG management, and encourage them to improve their ESG managementand performance. We provide independently developed training courses for suppliers, covering topics such as suppliercode of conduct, anti-corruption and business ethics, quality management, occupational health and safety, environmentalmanagement, and labor rights, to promote mutual advancement in ESG work.Purchaser Empowerment

Purchasers are an impoant pa of sustainable supply chain. We actively car out training for purchasers to enhance theirawareness and ability for sustainable development, helping them better identify and effectively control ESG risks in thesupply chain and ensuring the implementation of the Company's sustainable procurement policies. In 2024, the percentage ofpurchasers trained on sustainable procurement was 100%.

Quality assurance agreement signing

Assurance of supplier continuous quality

Establishment of supplier les

Revoke of qualied supplier qualication

Supplier audit management

Supplier evaluation

Management of supplier directory

●A separate quality assurance agreement is signed withthe supplier or the quality assurance requirements areintegrated into the procurement contract.●Intermediates suppliers should clarify that theproduction process of intermediates strictly followsGMP regulations and promise to accept the GMP auditsand inspections by the Company and the regulatoryframework.

●When materials provided by the same supplier arefound to be non-conforming more than twice, thesupplier will be warned and required to take correctiveaction.●In case of multiple nonconformities, the QA willdetermine and track the quality of three consecutivebatches.●e material suppliers failing to pass the inspection for5 times in a year will be revoked for its qualication.●e QA will track the supplier's handling methods andresults for non-conforming intermediate materials.

●The Purchasing Department collects relevantinformation and archives them in a timely manner toform a supplier le, and establishes a le list.

●For suppliers that fail to meet the requirements of the Company in audit and evaluation or have serious qualityproblems without correction, their qualication will be revoked.

●We develop an annual audit plan, and conduct on-siteaudit, questionnaire audit or remote audit of suppliersaccording to ISO 9001 or GMP regulations.●On-site audits for new suppliers and those caused byemergencies may not be included in the annual auditplan.

●Supplier evaluation includes quality evaluation,commercial evaluation, and usage evaluation.●Quality evaluation: Make a general evaluation on theoverall quality of products provided by the supplierwithin one year.●Commercial evaluation: Conduct a detailed evaluationon the supplier's delivery speed, reputation and priceonce a year.●Usage evaluation: The Production Departmentevaluates the utilization of materials provided by thesupplier in production within one year.

●Based on the approved suppliers, the QA categorizesand establishes a catalog of qualified suppliers, andupdates the directo eve quaer.

Supplier ESG Evaluation System of Aurisco

Labor and Human Rights

Environmental Protection

Occupational Health and Safety

Sustainable Procurement Management

●Prohibit the employment of child labor and forced labor●Follow the principle of voluntariness and legal requirements foroveime work, and ensure employees' right to rest●Advocate for diversity and inclusiveness, and strictly prohibitany form of discrimination

●Monitor the labor and human rights in the supply chain, etc.●Adopt environment-friendly business practices●Provide complete supply chain data to ensure transparency●Obtain internationally recognized environmental managementceication●Implement resource- and energy-saving business practicesand use green energy●Reduce environmental impacts by adopting eco-friendly andsustainable waste disposal methods, etc.

●Detect occupational hazards in the workplace●Provide employees with personal protective equipment forfree●Arrange annual occupational health examinations foremployees, etc.

●Strictly comply with local and national laws and regulations●Maintain integrity in product quality and eectiveness●Avoid irregularities such as bribe and embezzlement, andproperly protect trade secrets and intellectual propey rights,etc.

Green Developmentto Practice Low-Carbon Operations

This chapter page table of contents■ Enhancement of Environmental Management■Standardization of Pollution and WasteManagement

■ Optimization of Resource Utilization

■ Climate Change Response■ Practices in Green Operations

Green Development to Practice Low-Carbon Operations

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Enhancement of Environmental ManagementAurisco adheres to the concept of sustainable development, strengthens environmental management throughout theentire lifecycle, continuously improves the environmental management system, intensies the construction of environmentalprotection standardization, constantly enhances the environmental peormance, and unremittingly reduces the impact of itsoperations on the environment while ensuring compliance.

Environmental Management Systeme Company strictly abides by the relevant laws and regulations of environmental protection, develops a number of internalenvironmental management procedures based on the ISO 14001 environmental management system, promotes standardized,systematic and scientic environmental management, and eectively fullls its environmental responsibilities. In 2024, Aurisco,Yangzhou Lianao and Yangzhou Aurisco maintained the validity of ISO 14001 environmental management system ceicate.

ISO 14001 CeicateTo ensure the comprehensive and efficient implementation of the environmental management system, we evaluate theenvironmental peormance, including environmental policies, objectives, and indicators. Based on the evaluation results, wedetermine corrective measures and responsible persons, form a closed-loop management system, and fuher strengthen theeectiveness of the environmental management system, laying a solid foundation for the Company’s green development.

Commitment to Environmental Management

Environmental Risk Controle Company prepares emergency plans for environmental emergencies according to the requirements, ensuring to respondto environmental emergencies in a timely, scientic and eective manner, and minimizing their impact. In 2024, the Companyrevised the Emergency Plan for Sudden Environmental Incidents and re-filed it with Tiantai Branch of Taizhou MunicipalEcology and Environment Bureau on April 16, 2024 (File No.: 331023-2024-015-M). We also carried out emergency drills to testthe eectiveness of the emergency plan and improve the overall emergency response eciency.

Emergency Drills for Environmental EmergenciesWe establish a Self-inspection System for Environmental Safety Risks, and implement self-inspections for environmental safetyrisks on a regular (special, seasonal, holiday, etc.) and irregular (daily) basis. For problems and hazards discovered, we takereliable corrective actions, ensuring they are corrected and eectively preventing and resolving environmental risks.

In 2024, Aurisco and its subsidiaries invested about RMB

2643.2930 in environmental protection projects

without any environmental violationsor penalties from the environmentalprotection depament

◆ Prevent and control pollution throughout production and operation, and minimize the emission of pollutants;◆Comply with relevant national and local environmental laws, regulations and other requirements, and operate ina law-abiding manner;

◆ Continuously improve the Company's environmental behavior and environmental quality.

■Chemicals storage■Emergency response facilities

■Fire alarm system

■Tempora storage of hazardous waste■Exhaust gas treatment system■Wastewater treatment system

■General solid waste dump■Rainwater collection and discharge system■Operation and maintenance of environmentalprotection facilities

Self-Inspection for Environmental Safety Risks

Green Development to Practice Low-Carbon Operations

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Standardization of Pollution and Waste ManagementAurisco strictly abides by the environmental control requirements, and intensies the control and management of wastewater,exhaust gas, waste and other pollutants, ensuring compliant discharge and treatment. It is committed to minimizing the impactof production and operation on the environment, and preventing the occurrence of environmental pollution incidents.

Wastewater Treatmente Company selects the wastewater treatment processes with strong applicability, advanced and reliable technology, matureand stable process, high treatment effect, low operating cost, and convenient operation and management. It establishesstandard operating procedures for wastewater treatment, understands the wastewater discharge through the combination ofonline and manual monitoring, and strictly guarantees that the discharge meets the standards.The high-concentration process wastewater is pre-treated by Fe-C micro-electrolysis and Fenton oxidation to reduce itsbiological toxicity and improve its biodegradability. After treatment, the high-concentration wastewater is mixed with low-concentration one, and further treated by anaerobic-anaerobic-aerobic activated sludge method to reduce pollutantsconcentration in wastewater including COD, ammonia and phosphorus, suspended matter.

Aurisco Wastewater Treatment PlantYangzhou Aurisco Wastewater Treatment SystemIn addition, we have formulated theOperational Procedures for Emergency Wastewater Treatmentand established emergencyplans for abnormal wastewater discharge. When the COD value measured by the automatic monitoring meter at thewastewater discharge outlet is up to the warning value, or when the COD value measured by manual daily sampling reachesthe warning value, we appoint dedicated monitoring personnel to test the quality of the water discharged from the mainwastewater section. When the wastewater treatment system fails, we use the emergency wastewater collection tank. e high-concentration wastewater generated in the workshop is collected into the high-concentration water collection tank, and thelow-concentration wastewater is collected into the emergency low-concentration wastewater collection tank. Domestic sewageand laborato wastewater are stored in the comprehensive collection tank of the wastewater treatment system.

Exhaust Gas Treatmente Company strictly adheres to the requirements of laws, regulations, and standards such as theLaw of the People's Republicof China on the Prevention and Control of Air Pollution, theIntegrated Emission Standard of Air Pollutants, and theEmissionStandard of Air Pollutants for Pharmaceutical Industry. It formulates theOperating Procedures for Exhaust Gas Treatment,and insists on the comprehensive treatment of exhaust gas from the source, process, monitoring, equipment inspection andmaintenance and other aspects, ensuring stable and compliant emissions and safeguarding the clean and blue sky.

Adsorption DeviceRTO Device

Source●On the premise of meeting the requirements for use and quality, purchase equipment that generates less exhaust emission orno exhaust gas.

●The exhaust gas containing halogen from the production workshop needs to be treated and discharged through resinadsorption/desorption device and then through regenerative thermal oxidizer (RTO) system;●Non-halogenated exhaust gas from the production workshop, as well as exhaust gas from wastewater stations andhazardous solid waste room are directly treated and discharged through the RTO system.

●Local employees on duty are responsible for conducting daily inspections of the spray tower and keeping records;●Regularly maintain the spray tower;●Inspect the exhaust gas pipe regularly, and keep records.

Process

Equipment Inspection and Maintenance

Green Development to Practice Low-Carbon Operations

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Waste Treatment Methods

TypeTreatment MethodsHousehold waste◇ Commission the sanitation depament for treatment.General waste◇ Collected centrally and handed over to a third pay for recycling and reuse.

Hazardous waste

◇ Strictly dispose of hazardous wastes in accordance with theLaw of the People's Republic of China on thePrevention and Control of Environmental Pollution by Solid Waste, the Standard for Pollution Control on HazardousWaste Storage, and theManagement Measures for the Transfer of Hazardous Waste, develop a comprehensivehazardous waste management plan, and clarify the types, weights (quantities), and ow directions of hazardouswaste to be transferred;◇ e EHS Depament implements measures and responsibilities for the declaration and registration of hazardouswastes, and assign a dedicated person to handle the declaration and registration of hazardous wastes through the"Solid Waste Management Information System";◇ All containers and packages containing hazardous waste are pasted with hazardous waste labels, and facilitiesand places for storing hazardous wastes are set up with hazardous waste storage facility signs and hazardous wastestorage zoning signs;◇ Entrust qualied institutions to treat the hazardous wastes, manage the whole process with hazardous wastemanifest system, and keep the les of hazardous wastes;◇ Develop emergency plans for hazardous waste according to law, and organize annual drills as per the plans.

Main Equipment for Sodium Iodide Preparation

Sludge dewatering crew pressRake Der

For reducing waste solvents：

the height of distillation columnwas increased in the distillationworkshop, and the solvent wasdistilled to reach the standardfor recovery, further improvingthe recovery rate, minimizing theamount of waste solvents generated,and lowering production costs.

Distillation Unit

Noise AbatementThe Company has formulated theNoise Pollution Prevention and Control Systemin accordance with the requirements oftheLaw of the People's Republic of China on Prevention and Control of Noise Pollution, theEmission Standard for IndustrialEnterprises Noise at Boundary, etc., comprehensively strengthening the daily noise control and reducing the impact onsurrounding environment. In 2024, the Company's noise monitoring data were all compliant.Noise Control Measures

Noise-canceling HeadphoneSoundproof Room

Waste TreatmentFollowing the principle of "minimization, recycling, and harmlessness" in waste management, the Company classifies andmanages general waste and hazardous waste, improves the treatment eciency in terms of waste generation, storage andtransfer, and continues to explore comprehensive utilization of waste.

CaseCase

The Company improved productionprocesses and reduced wastes

Yangzhou Aurisco reduced waste emissions withmultiple measuresThe Company improved the process ofAbiraterone Acetate product line, used theoriginal hazardous waste filter residue as rawmaterial to prepare sodium iodide, and sold itas a by-product. With an annual output of 30tons of Abiraterone Acetate, 44 tons of sodiumiodide was prepared, achieving comprehensiveutilization of filter residue and reducing wastegeneration, with high environmental andeconomic value.

For reducing sludge in wastewater treatment,：the water in sludgewas first removed by a sludge dewatering crew press, and thesludge was dried by a rake der to remove residual moisture andsolvents, reducing the amount of sludge produced. In 2024, 12.96tons of sludge in wastewater was disposed of by this method.

Prevention andcontrol at source

Noise monitoring

within the plant

Prevention

and control ofindividualsNoise monitoring

★Gradually update and replace noisy equipment;★Comply with the “ree Simultaneities” requirements for new construction, expansion andreconstruction projects;

★Increase the veical greening area around production workshops;★Enhance the lubrication and maintenance of noisy equipment.

★e responsible persons of each production workshop get to know the operation statusof noise sources through listening, obseing, and questioning during production; equipmentmaintenance and repair personnel need to strengthen the maintenance of noisy equipment,discover abnormalities and troubleshoot them in time, and make appropriate emergencypreparations and responses;★Learn about daily feedback from surrounding residents and internal sta on noise issues,and inspect, repair or replace relevant facilities and equipment promptly to prevent noisepollution.

★Organize more training on occupational health and safety for employees, and enhancepersonal noise protection measures and occupational health and safety awareness;★Employees should wear noise-proof earplugs or ear caps when entering the places wherenoise is still loud after noise source treatment.★Entrust a qualied third pay to regularly detect noise sources and plant bounda noisein the production area.

Green Development to Practice Low-Carbon Operations

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Optimization of Resource Utilization

Water Resource ManagementIn Aurisco, the water is taken from tap water, without negative impacts brought onlocal water resource management. e Company strictly abides by theWater Lawof the People's Republic of Chinaand other laws and regulations, actively respondsto the national call for water conseation, and maximizes the ecient utilization ofwater resources. We advocate the initiatives of water conseation, technologicalinnovation and process optimization among employees to incorporate the conceptof water conseation into production and operation. We install sma water metersin the workshops to prevent water leakage and strictly control water consumption.In 2024, our total water consumption was 306,649 tons.Zhejiang Water Conseation Benchmark

EnterpriseAurisco and its subsidiaries set up a circulating cooling water system, which is used to collect steam condensate and send itto the circulating water system for reuse, so as to improve water resource utilization. We regularly check the circulating coolingwater system, including pipes, valves, cooling towers and other devices, ensuring the safe and stable operation of the system.

Circulating Water PumpConstant Pressure and Variable Frequency Control of Circulating

Water PumpEnergy ManagementAs a production-oriented enterprise, Auriscoregards energy conseation, emission reductionand green low-carbon as one of the impoantstrategies for sustainable development. Wedevelop a comprehensive energy managementsystem, set clear energy managementobjectives, and establish a dedicated energymanagement organization with full-time andpart-time energy managers and statisticians,to strengthen the whole process of energymanagement and maximize energy efficiency.We actively purchase green electricity,constantly optimize the energy mix, and injectclean energy into the Company's development.

Green Electricity Consumption

Ceicate of Aurisco

Green Electricity CeicateTransaction Voucher of Aurisco

Green Electricity Ceicate

Transaction Voucher ofYangzhou Aurisco

Intelligent Energy System

Yangzhou Aurisco has launched an intelligent energy system, which monitors the consumption data of various types of energyin real time, calculates and analyzes the energy consumption level and energy eciency of the process ow, and applies bigdata analysis technology to identify energy usage patterns, explore energy-saving potential, and further improve energyeciency. Moreover, we will continue to upgrade the system, expand the application scope of the system, cover secondaand teia power distribution facilities, and build a unied intelligent energy management platform. In 2024, thanks to theintelligent energy system, the on-site operators of Yangzhou Aurisco strictly controlled electricity consumption in peak, at andvalley periods without aecting the production of the workshop, making the propoion of power consumption at peak timedrop from 36.0% to 30.2%, and achieving the purpose of energy saving and consumption reduction.

Intelligent Energy System

Energy Conservation and Consumption Reduction Projects

We pay attention to our own energy consumption, analyze energy-saving potential, and promote a series of energyconseation and consumption reducing projects. We eectively save energy resources and improve energy eciency by usingenergy-saving equipment, phasing out high-energy-consuming and old equipment, and utilizing waste heat, etc.CaseAurisco carried out waste heat reuse projectAurisco launched a waste heat recyclingproject, replaced the spiral-plate heatexchanger, and transferred the generatedsteam waste heat to the wastewatertreatment system. The wastewater fromV81737 (equipment number) entered V81788(equipment number) after heat exchangein the heat exchanger, not only significantlyimproving the utilization efficiency of wasteheat, but also reducing the direct discharge ofwaste heat and reducing the negative impacton the environment.

Operating principle

To V81788HeatWastewaterfrom V81737

Workshop steam(waste heat)

Condensate discharge

Green Development to Practice Low-Carbon Operations

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Electric Forklift

Reinforcement of Energy Conservation AwarenessWe car out various forms of publicity activities on energy conseation and emission reduction, including posters, speciallectures, and training. We intend to publicize the policies on energy management and the knowledge on energy conseationand emission reduction to employees, create a green and low-carbon atmosphere with all employees engaged, enhance theirawareness of energy conseation, and strive to set a model of green and sustainable development.

In January 2024, the Company held a mobilization meeting on "carbon neutrality, energy conservation andemission reduction". e meeting focused on the target plan for carbon neutrality, the 2024 target plan for energyconseation and emission reduction, and the current status of energy utilization. At the meeting, we introduced thenews on existing carbon neutrality, energy conseation and emission reduction, guided employees to care aboutenergy management, actively implemented the 2024 work plan, refined the means of energy consumption datacollection, and improve the Company's energy management system.

Case

Case

Yangzhou Lianao promoted multiple energy-saving renovation projects, promoting energyeciency in the rst place

The Company held a mobilization meeting on "carbon neutrality, energy conservation andemission reduction"

Heating Energy Transformation：Upgrade the directheating of individual steam device into centralizedheating, saving about 300 tons of steam per month.

Replacement with Electric Forklifts：

Purchase theelectric forklifts, and replace existing diesel forkliftsachieving the purpose of energy saving, reducing theexhaust emissions generated by the forklift, and makingthe production more energy-ecient and eco-friendly.

Climate Change ResponseGovernanceIt is a global consensus to take positive climate actions. Aurisco integrate the functions related to climate change responseinto the ESG system, establish a climate governance structure led by the board of directors, set up a carbon neutrality team topromote the identication, assessment and management of climate-related risks and oppounities from top to bottom, andrespond to stakeholders' concerns about climate issues.Aurisco Architecture of Climate GovernanceHierarchicalFunction

Hierarchy

Name

ResponsibilitiesTop governanceand decision-making level

Board ofDirectors

●Review and conrm climate change response systems and mechanisms;●Review the strategic planning, objectives and implementation progress of climate action,and the identication, assessment and management of climate risks and oppounities.

ManagementLevel

CarbonNeutrality Team

●Guide the design and implementation of goals and measures related to climate changeissues;●Identify, assess and manage risks and oppounities related to climate change;●Develop climate action strategic plans, development goals, institutional policies, etc.Execution Level

Collaborativedepaments

●Promote the implementation of climate action at all business terminals;●Cooperate with the implementation of climate strategies.

Strategy, Risk and Oppounity ManagementWe recognize that is signicant to develop a scientic climate strategy for the Company's green transformation and sustainabledevelopment. e Carbon Neutrality Team identies, assesses and manages the sho -, medium - and long-term impacts ofsignicant climate change risks and oppounities on the Company in conjunction with the systematic guidance from the TaskForce on Climate-Related Financial Disclosures (TCFD), develops targeted countermeasures based on the identication results,actively addresses the challenges of climate change, seizes the oppounities brought by climate change, and continuouslyenhance climate resilience.

Green Development to Practice Low-Carbon Operations

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Transitionrisk

Policy/legalrisk

●Climate change related policies/laws arebecoming more stringent in various regionsaround the world; regulato requirementsshould be met in all operational processes;failure to meet these requirements may result inpenalties.

Shoterm

Medium

●Pay attention to domesticand international policies/legalupdates, and communicateand collaborate with internaldepaments in time.Market risk

●Green and low-carbon products are preferredon the market, and failure to meet customers'demand for low-carbon manufacturing maylead to loss of orders and market share.

Mid tolong term

Medium

●Promote the developmentof green products and providemore products that meet marketexpectations.

Technical risk

●Enhancement of innovation capabilities isrequired to control product carbon emissions,which may result in increased operating costs.

Mid tolong term

High

●Conduct research on carbonemission reduction technologiesand promote innovation inenergy-saving technologies;

●Introduce new technologyR&D talents and strengthenemployees' innovation ability.

ReputationRisk

●Stakeholders' concern about climate isincreasing, and failure to take positive climateaction could damage the reputation;●Negative impacts on climate and environmentduring production and operations may resultin negative public opinion and exposure toreputation risk.

Sho tomediumterm

Low

●Take positive climate actionand strengthen greenhouse gasmanagement;●Strengthen climate informationdisclosure and communicateprogress in addressing climatechange and carbon reductionthrough ESG repos and othermeans.

Opportunities

Clean energy

●Promoting clean energy is an impoantinitiative to achieve carbon neutrality, andclimate change has gradually increasedthe accessibility of clean energy.

Mid tolongterm

Medium

●Increase the propoion of cleanenergy and continuously improvethe energy mix;

●Actively purchase greenelectricity to reduce greenhousegas emissions.

EmergingMarket

●Respond to customer demand for greenand low-carbon products, bring newmarket oppounities to the Company, andhelp to enter emerging markets.

Mid tolongterm

High

●Accelerate technologicalinnovation, conduct environmentalimpact assessments throughoutthe product lifecycle, and controlcarbon emissions from keyproducts.

ClimateResilienceEnhancement

●Climate change response is conduciveto continuously enhance the Company'sadaptability and create greater space forseizing climate oppounities.

Longterm

High

●Develop a scientic and rationalpath to realize carbon neutrality;●From the perspective of thelifecycle of the whole valuechain, focus on clean energyoppounities, energy-savingtechnological upgrades, greensupply chain construction andother aspects to continuouslyimprove climate resilience.

Metrics and TargetsAurisco actively implements the strategy of "peak carbondioxide emissions and carbon neutrality", actively respondsto the Science Based Targets initiative (SBTi), follows the

1.5 ℃ temperature control path, and sets scientic emission

reduction targets. The Company signed theLetter of SBTiCommitmentin April 2023, committing to setting emissionreduction targets.We have formulated documents such as theManagementProcedures for Identification and Quantification ofGreenhouse Gas Emission Sources, set up a dedicatedgreenhouse gas management team, organized activities forSumma of GHG Verication Training

Climate Change Risk/Opportunity Impact Analysis and CountermeasuresType

Risk andOpportunity

Risk and Opportunity Description

ImpactPeriod

ImpactDegree

Countermeasures

PhysicalRisk

Acute physicalrisk

●Extreme weather caused by climatechange may aect employees' commutingand even result in personnel and propeydamage;●Extreme weather may cause roadblockage, preventing prompt delive andaecting supply chain stability.

Sho tomediumterm

Medium

●Formulate complete emergencyplans and conduct emergencydrills;●Enforce supplier diversicationpolicies and strengthen theoverall environmental riskmanagement in the supply chain.

Chronic physicalrisk

●Climate change causes abnormal globaltemperature, aecting refrigerationequipment and thermal facilities, resulting inhigher operating costs;●Global change causes sea level rise,aecting the security and stability of coastalfoundations.

Longterm

Low

●Introduce advanced andintelligent equipment andfacilities, and strengthen energymanagement;●Construct the Yangzhouproduction base to enhanceclimate resilience.

the identication and quantication of greenhouse gas emission sources with reference to ISO 14064 and other standards,systematically promoted the inventory and management of greenhouse gases, and evaluated our performance in climatechange response. Moreover, we carry out greenhouse gas verification training and summarize the results to improve thecarbon management capabilities of relevant personnel. In the future, we will refer to ISO 14067 and other standards to carout product carbon footprint verification and provide data support for continuous improvement of product environmentalpeormance.

Green Development to Practice Low-Carbon Operations

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

●Promote paperless oce and reduce paper consumption. When copying and printing documents, print the paper on bothsides as far as possible; if the paper is printed on one side, the other side can be used as appropriate.●Recycle reusable raw and auxilia materials and never discard them at will.

Green BuildingsWe introduce the concept of green buildings in engineering construction. Yangzhou Aurisco is constructing a first-classindustrial building, which meets the requirements of Table 3.1.12-6 in theGeneral Code for Energy Eciency and RenewableEnergy Application in Buildings(GB55015-2021) through energy-saving design of enclosure structure insulation and airconditioning system, so as to achieve the purpose of reducing energy consumption of air conditioners in summer.

Material SavingPractices in Green Operations

Green CultureWe carry out a wide range of environmental protection publicity and training, aiming to create an atmosphere of "greenenvironment, full paicipation", and continuously improve employees' enthusiasm for environmental protection. In 2024, weorganized environmental protection activities from time to time to deepen the green culture in the mind of employees andcreate a green home together.

In November 2024, Aurisco launched a MountainCleaning Action" with the theme of "Clean the Mountainfor a New Look, We are in Action". e Carbon NeutralityTeam joined hands with the sta of the EHS Depamentto pick up man-made waste along the road and promotethe concept of "Save Energy, Reduce Emission, Createa Better Future", creating a good green culture andcontributing to the construction of a green home.

Green Oce

The Company advocates green office by starting from "saving water, energy and materials", encourages employees topaicipate in green development, continuously advance the process of green oce, and form a green and low-carbon workand life styles, in order to reduce the impact on the environment.

●Make statistics on monthly water consumption; identify causes and take corrective measures if there are any abnormalities;●Strengthen the management of local water equipment and prevent water leakage. The tap is turned off immediately toprevent the case of long running water.

●Adhere to the principle that whoever applies for electrical equipment in public areas is responsible, and turn o all powersupplies in time after use;●Turn o all electrical appliances in oce areas after work;●Set the air conditioner temperature not exceeding the standard. e air conditioner temperature should not be set lower than26 ℃ in summer, and not be higher than 20℃ in winter.

●Minimize the use of lighting xtures when natural light is sucient and make full use of natural light;●Plan reasonable routes before traveling to reduce fuel consumption.

Water Saving

CaseAurisco launched the “Mountain Cleaning Action”

Energy Saving

Aurisco is fully aware that employees’ sense ofhappiness and belonging is vitally impoant forthe Company’s prosperous development. Weadhere to the principle of putting people first,respect and safeguard the legitimate rights andinterests of employees, and establish a soundcompensation and welfare mechanism and atraining and development system. We share thedevelopment achievements with employees, andtake their health and safety as the premise ofdevelopment, continuously reducing occupationalhealth and safety risks. Moreover, as a responsiblecorporate citizen, we take the initiative to engagein social welfare and contribute to the prosperityand harmony of the community.

People Foremostto Pass on Warmthand Power

This chapter page table of contents■ Protection of Employees' Rights and Interests■ Enhancement in Democratic Governance

■ Implementation of Welfare and Care

■ Suppo for Employee Growth■ Occupational Health and Safety■ Improvement of People's Wellbeing

People Foremost to Pass on Warmth and Power

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Protection of Employees' Rights and InterestsHuman Rights Protectione Company strictly abides by laws and regulations such as theLabor Law of the People's Republic of China, and activelyfollows theUniversal Declaration of Human Rightsissued by the United Nations and the core conventions of the InternationalLabor Organization. We resolutely prohibit child labor, discrimination, harassment, forced labor and other violations ofemployees' human rights, and persistently create a fair and harmonious working environment. We have established acomprehensive labor risk management mechanism to effectively protect employees’ human rights. In 2024, we found noviolations of employees' human rights.Management Procedures for Employees’ Human Right Risks

Remedial Actions for Key Labor RisksKey LaborRisks

Specic DescriptionRemedial MeasuresChild Labor

●Strictly abide by theRegulations on Prohibiting Child Labor, prohibitthe recruitment of child labors under the age of 16, and strictly checkthe age and other information of applicants during recruitment to avoidthe risk of employing child labor.

●e Human Resources Depamentrst repo the case to the local labordepament for reviewing and conrmingthe case.Discrimination

●Ensure that no one is discriminated against based on geography,race, religion, gender, age, marital status, disability, nationality, etc.when engaging in employment activities such as recruitment, training,promotion, rewards, and benets distribution.

●Conduct investigations as soon asdiscovering relevant incidents or receivingcomplaints, and provide reasonableassistance to victims, such as legal aid andpsychological counseling.●Impose severe penalties on those whoviolate human rights, and refer those whoviolate the law to the judicial authorities tobe dealt with in accordance with the law.●Provide labor and human rights trainingto enhance employees' awareness andsensitivity.

Harassment

●Prohibit all forms of harassment, including but not limited to sexualharassment, verbal harassment, and physical harassment.Forced labor

●Conclude labor contracts according to law, prohibit using forcedlabor or employing prisoner, enslaved workers or tracked workers, andensure that employees are free to choose their jobs.●Employees do not need to pledge their identity documents, passposor deposits as a condition of employment.● Employees have the freedom to resign upon reasonable notice.

Inclusiveness and DiversityDiversity is an impoant source of corporate vitality and can stimulate the full potential of the team. Aurisco always holdsa open and inclusive attitude in employment, respects and appreciates the differences among individuals, and works onpromoting communication and integration among employees from dierent backgrounds, creating a diversied employmentenvironment.We are concerned about the welfare of people with disabilities and provide them with equal employment opportunitiesand welfare protection under the premise of normal business operations. We strive to explore new modes of education foremployees with disabilities, create a new education service system, help them integrate into large families in Aurisco, andsuppo them in realizing their full potential. By the end of 2024, the Company employed 7 employees with disabilities.Female employees play an impoant role in "suppoing half of the sky" in the sustainable development of Aurisco. We adhereto the principles of gender equality and equal pay for equal work, fully respect the value and special rights and interests offemale employees, encouraged them to explore and seize career development oppounities, and help them optimize creativeability. We clarify the protection measures for female employees during menstruation, pregnancy, childbih, breastfeeding andmenopause, and designate full-time and pa-time sta to take charge of labor protection for female employees. In addition,we organize special physical examinations for female employees to safeguard their health. To enhance concerns on femalehealth, Aurisco provided free physical examination for female employees and family members of male employees in May 2024.

Physical Examination for Female Employees

We also car out a variety of exclusive activities for female employees, oer special condolences to them on Women's Day, fullydemonstrating our care and respect for them, and enhance their sense of happiness and belonging. In March 2024, YangzhouLianao organized female employees to watch movies on International Women's Day (March 8). Yangzhou Aurisco invitedexpes to make speeches on health, career planning, family relationships, and other topics to female employees, and awardedholiday condolence money.

Yangzhou Lianao Organized FemaleEmployees to Watch Movies

Yangzhou Aurisco Organized Health

Lectures for Female Employees

Risk Classication and Identication

Risk Control

Risk Assessment

Remedial Action

●Analyze the risks, including child labor anddiscrimination, in accordance with relevant governmentlaws and regulations, customer social responsibilityrequirements, and relevant international codes ofconduct.●Develop management and control measures againstdierent levels of risks;●Develop internal audit plan, check its implementationstatus regularly, analyze the inspection results, andformulate improvement countermeasures;●Constantly improve preventive measures, facilitatecomplaints and whistle-blowing channels, and effectivelyprevent and control various labor risks.

●Conduct an annual labor risk assessment,determine the risk rank according to "possibility ofoccurrence", "frequency of occurrence", and "severityof consequences", ll out the labor risk identicationand assessment form, and form a list of major, higher,moderate and minor risks.

●Strictly hold accountable and provide legal aid,psychological counseling, etc. for those aected;●Enhance employees’ awareness of human rightsthrough daily training and identify potential violationsof human rights.

Channels for Reporting Employees'Human Right ComplaintsTel：0576-83177286Email：auriscohr@aurisco.com

Key Performance in 2024

Key Performance in 2024

Number of confirmed violationsof employees' human rights:

Number of employeeswith disabilities:

Percentage offemale employees:

33.58%

Number of complaints onemployees' human rights:

Number of femaleemployees:

Percentage offemale executives:

50%

People Foremost to Pass on Warmth and Power

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Enhancement in Democratic GovernanceThe Company respects employees' rights to equal consultation, collective bargaining and freedom of association, builddiversied communication channels for employees, understand their needs and voices, and solve their problems and dicultiesin work. We also safeguard their rights to participation, expression and information, promote the organic combination ofdemocratic supeision and management, and assist in the common development of the Company and employees.Labor Union Managemente Company establishes a labor union organization according to law, strengthen communication and cooperation betweenemployees and executives, and jointly promote the harmony and stability of labor relations. rough collective consultationmeetings and other forms, the labor union conducts equal consultation and makes resolutions on matters related to thepractical interests of employees, such as sala, protection of female workers' rights and interests, and labor hygiene, so as toeectively protect the legitimate rights and interests of employees.

In June 2024, the labor union of Aurisco set up a leading group for collective consultation of ability-level wages,and recommended and elected employee representatives to collectively negotiate the ability-level wages with theCompany on behalf of employees. Both parties engaged in equal negotiations on how to expand the channels foremployee promotion and development, and increase allowances, subsidies and special awards for honors. In July, acongress of workers and sta was held to sign theAgreement on Collective Consultation of Ability-Level Wages, theSpecial Collective Agreement for the Protection of Women's Rights and Interests, theSpecial Collective Contract for theProtection of the Rights and Interests of Female Employees, theSpecial Collective Contract for Labor Safety and Health,theSpecial Collective Contract for Working Conditions, and theSpecial Collective Contract for Training and Career,achieving mutual benet and progress between the Company and employees.Employee Symposiume Company regularly organizes symposiums to encourage employees to communicate and exchange with the Company inan open and honest way, and establishes an eective and orderly mechanism for expressing their demands. For the demandsof employees, we strive to respond and solve them in a timely manner, ensuring that eve demand is responded and eveissue is addressed, continuously improving employee satisfaction.

Employee Symposium

Implementation of Welfare and CareCompensation and Benets

We follow the principles of distributing according to work, prioritizing efficiency, and taking into account fairness andsustainable development. Based on the contributions, abilities, and responsibilities of employees, we establish a compensationsystem that is suitable for the Company's development needs. We provide employees with competitive compensation packagesin the indust and in the region, fully tap into their potential, and achieve the goal of "attracting, retaining, and motivatingtalents". The compensation includes attendance, allowance, performance, bonus and other parts, which are both fair andincentive, continuously enhancing talent attraction. We make sala adjustment plan according to price index, market situation,business peormance, etc., hereby achieving coordinated development between employees and the Company.

On the basis of providing competitive compensation, we continue to optimize our welfare management system and providediversied welfare suppo to enhance employee happiness and solve their diculties. In addition to statuto benets, we alsoprovide employees with health benets, livelihood benets, holiday benets, etc. to ensure that they live a healthy life and workhappily.

Aurisco Employee Welfare System

Free Medical Diagnosis for EmployeesMid-Autumn Festival PayKey Performance in 2024Percentage of employees signing collective contracts:

100%

Case

Aurisco collectively consulted on ability-level wages to achieve mutual benet and progressbetween the Company and employees

Compensation Structure

Mission peormance GMP peormanceEHS peormance

Special bonus Year-end bonusBenet bonus

Transfer fee Vacation allowanceApprenticeship allowance Pension benet, etc.PerformanceBonusesOthersAllowance

Attendance payOveime pay

Academic qualication allowance ird-shift allowance Team leader allowanceSeniority allowance Post allowance Professional title allowance Skill allowanceAttendance

Statutory Benets

Health BenetsLivelihood BenetsHoliday BenetsOther Benets

Endowment insurance, medical insurance, employment injury insurance, maternity insurance, unemploymentinsurance, and housing provident fund; vacation leaves such as marriage leave, maternity leave, breastfeedingleave, childcare leave, nursing leave, bereavement leave and statuto holidays.Commercial medical supplementa insurance, quaerly labor insurance, employee physical examination,Free medical diagnosis for employees, exclusive physical examination for female employees, etc.Meal subsidies, high temperature subsidies, rental subsidies, travel expenses for visiting relatives, travelexpenses for funeral leave, etc.Benets for Mid Autumn Festival, Spring Festival, Women's Day, etc.Travel benets, depamental activity funds, etc.

People Foremost to Pass on Warmth and Power

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Employee CareWe care for eve employee, organize a variety of employee care activities, enrich their leisure time, and continuously enhancetheir sense of belonging and acceptance. We pay attention to employees' mental health and provide assistance to those inneed, fully demonstrating our humanistic spirit.

Work-Life BalanceWe encourage employees to enrich their daily life after work, guide them to develop hobbies and interests by organizingdiversied activities, including fun spos games, basketball games, table tennis games, and billiards games, create a healthyand civilized sta culture, and achieve a balance between their work and life.

Spos Games

Basketball Games Table Tennis Games

In order to enrich the spiritual and cultural life of employees, the Company held the "ird Billiards Games" in April2024. e employees actively paicipated in the games, demonstrating the aggressiveness and united spirit of Auriscoand enhancing the cohesion of employees.

Mental Health CareThe Company attaches great importance to the psychological health of employees, and strives to build a mechanism toprotect the psychological health of employees by combining internal psychological counseling and external resources. InAugust 2024, Yangzhou Lianao invited external expes to provide mental health training for employees. ey introduced thebasic knowledge of mental health, psychological adjustment skills, mental illness identication and inteention, etc., helpingemployees to do a good job of stress management, relieving negative emotions, and enhancing their ability of psychologicaladjustment.

Assistance for Employees in DicultiesWe establish a regularized assistance mechanism for employees in difficulties, and treat their difficulties as those of theCompany. We focus on the needs of employees in difficulties, actively coordinate the forces of all parties, and convey thedeepest condolences to employees for “marriage, illness, inju, childcare and retirement”, fully demonstrating the spirit ofunity and mutual assistance of Aurisco.

CaseAurisco organized “the Third Billiards Games”

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Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Support for Employee Growth

Employee TrainingWe follow the principle of combining training with operational need and emphasizing eectiveness, strive to provide employeeswith comprehensive and customized training programs, create a training system with Aurisco characteristics, develop theCompany into a learning organization, and improve the comprehensive quality of all employees. The Human ResourcesDepament develops an annual training plan based on job training needs. rough a combination of online, oine, internaland external training, we carries out new employee training, on-the-job training, general skills training and other types oftraining activities in an orderly and ecient manner to help employees in dierent positions and at dierent levels give fullerplay to their own values and potentials.Aurisco Training System

Training on Motivation and CultivationTraining on Management Essentials of Role Recognition

We appoint competent employees as trainers, develop Internal Trainer Management Measures, and enhance theprofessionalism and specialization of the Company's internal trainers with complete internal training resources and scienticselection, assessment and incentive mechanisms for internal trainers, to achieve standardized and scientic management ofinternal trainers. At the end of each year, the trainer evaluation team selects the annual gold medal internal trainer according tothe number of courses, class hours, training feedback, and summa evaluation of the training applicant, and issues honoraceicates and gives ceain material rewards to the employees who are awarded the annual gold medal internal trainer. Underequal conditions, employees with the qualication of internal trainer enjoy priority in technical sequence promotion, whichencourages them to actively paicipate in the Company's internal trainer construction.

Employee Developmente Company works to provide employees with fair development oppounities and unimpeded development channels, set upfour major sequences (management, research and development, professionalism, and operation), clarify the job responsibilitiesand promotion conditions of each sequence, and strive to create a scientic and reasonable promotion system. We insist ondeveloping talents through practice, helping employees make appropriate career plans and select suitable career developmentpaths based on their interests and strengths, and achieving the organic unity of career planning and development channels.Post Rank Structure of Aurisco

Technical Sequence Evaluation ExamDefense in Technical Sequence AssessmentEmployee Career Planning

ContentMode

Type

■ Pre-job training for new employees■ Training on corporate culture, rules and regulations

■ EHS, GMP and other related professional knowledge■ Training on job descriptions and related requirements

■ Skills and qualications for special operations and special equipment■ Training on business knowledge■ Training on the necessa skills and qualications required for cadre promotion and transfer■ Training on management concepts, skills, and methods for executives at all levels■ On-the-job education and training

■ Other training required by the Company

■ Self-study by employees■ In-class teaching■ On-site training■ Problem-based learning■ Online training■ Internal training■ External training

Key Performance in 2024

Key Performance in 2024Training coverage rate:100%

Percentage of employees undergoing career development planning and evaluation:

100%Percentage of employees undergoing skills-related training:

100%

Pay ScaleManagement Sequence (M)R&D Sequence (N)Professional Sequence (P)Operation Sequence (C)Level 12General Manager

Level 11Senior Deputy General ManagerLevel 10Deputy General ManagerChief Ocer

Level 9Senior DirectorSenior ConsultantChief OcerSenior TechnicianLevel 8DirectorConsultantSenior ConsultantSenior TechnicianLevel 7Senior ManagerSenior R&D ExpeConsultantIntermediate TechnicianLevel 6ManagerR&D ExpeSenior ExpeJunior TechnicianLevel 5Deputy ManagerSenior ResearcherExpeAssistant TechnicianLevel 4SupeisorIntermediate ResearcherSenior SpecialistSenior EngineerLevel 3Team LeaderJunior ResearcherIntermediate IntermediateLevel 2R&D AssistantJunior SpecialistJunior EngineerLevel 1AssistantApprentice

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Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Occupational Health and Safety

Management SystemCommitted to providing employees with a healthy, hygienic and safe working environment, Aurisco develops internal standardsand policies such as the Environmental Health and Safety Management Manual in strict accordance with the Workplace SafetyLaw of the People’s Republic of China, the Occupational Disease Prevention and Control Law of the People’s Republic of China,and other laws and regulations, deals with issues related to occupational health and safety management in a timely manner,and ensure that the occupational health and safety management system is eectively implemented and maintained. We ensurethat all employees paicipate in OHS work and eectively safeguard their occupational health and life safety. In 2024, Aurisco,Yangzhou Lianao and Yangzhou Aurisco maintained the ISO 45001 occupational health and safety management systemceicate valid.

ISO 45001 Ceicate

●Reduce environmental pollution, continuously improveworkplace safety technology, enhance the workingenvironment for employees, prevent major environmentaland safety incidents, and safeguard the occupational healthand safety of employees.

● Comply with the law, establish safety awareness;

● Prioritize prevention, improve safety facilities;● Strictly control, ensure safety peormance.

● Zero incident of personnel poisoning, serious inju, or death (including local contractors);●Zero incident of major re and explosion (with witness of county emergency bureau, re brigade, and environmentalprotection bureau);● No occupational disease incident;

● No food poisoning incident;

● 100% rate of signing the liability statement for workplace safety;● 100% rate of risk identication and control.

Objectives and Policies of Environmental andOccupational Health and Safety (EHS)

Commitment to Occupational Health and Safety

Objectives of Occupational Health and Safety

Occupational Health Protection

e Company pays attention to the occupational health of each employee. When signing the labor contract with the employeesin positions exposed to occupational hazards, we inform them truthfully of the occupational hazard factors and consequencesthey may be exposed to in their work, occupational disease protection, etc. We do not conceal any job risks, and providenecessa health training to enhance employees' awareness of occupational health and protect their health rights and interests.Detection of Occupational Hazard FactorsWe commission a qualified occupational health technical service institution to detect occupational hazard factors in theworkplace eve year, publish theDetection Repo of Occupational Hazard Factors in the Workplaceto employees in a timelymanner, and set up corresponding warning signs and instruction signs at prominent positions of each post in the productionworkshop, so that they can understand their occupational environment. In addition, based on the results of occupationalhazard factor detection, we develop eective prevention and control measures to reduce the exposure of occupational hazardfactors.Occupational Health Examination

We regard occupational health examination as an important means of preventing and treating occupational diseases. Foremployees exposed to occupational hazards, we provide them with pre-job, on-the-job and o-the-job physical examinations,and establish occupational health monitoring les. For employees suspected of occupational diseases or with occupationaldiseases, the Company repos them to the local health and labor security depaments in accordance with regulations, andarranges for occupational disease diagnosis, medical observation and treatment as per the requirements of occupationalhealth examination institutions. For employees found with occupational taboos, they are promptly transferred from their postand properly arranged.

Labor Protectione Company strictly implements the "ree Simultaneities" Supeision and Management Measures for Occupational DiseasePrevention Facilities of Construction Projects, ensuring that the occupational disease prevention facilities are designed,constructed, and put into production and service at the same time as the main project, giving priority to adopting newtechnologies, new processes, new equipment and new materials which are conducive to the protection of workers' health,assigning dedicated staff to take charge of the daily maintenance and maintenance of occupational disease preventionfacilities, and guaranteeing their eectiveness.We provide employees with personal protective equipment that meets the requirements for preventing and controllingoccupational diseases, so as to protect them from or mitigate against occupational hazards in work. Employees must wear thePPE correctly when staing their job. ose who do not wear and use the PPE as specied shall not work. In addition, we re-evaluate the adaptability and eectiveness of the personal protective equipment eve year based on changes in equipmentand working materials in the workplace to promptly prevent potential new hazards.

Key Performance in 2024Coverage rate of occupational healthexamination:100%

Number of occupational diseases found:0

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Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Division of Responsibilities and Approval Authority of Incompatible Responsible

Departments/Individuals

Stage

Workplace Safety ManagementAurisco adheres to the workplace safety policy of "Safety First, Prevention Oriented, and Comprehensive Governance", standstall and rm in the prima concept of workplace safety in the development, always makes safety the focus of our work, andputs more efforts into workplace safety in a standardized and standardized way. We follow the principle of "engaging allemployees in the safety responsibility across all aspects of operation", and establish a workplace safety responsibility systemfrom top to bottom. We clarify the safety responsibility of employees at all levels and management depaments, strengthenthe "red line" awareness, ensure the safe development of production and business activities, and constantly improve the safetymanagement.

Dual Prevention MechanismWe make continuous progress in the establishment of a dual prevention mechanism for multi-level control of safety risks andidentication and management of hidden hazards, and entrust a third-pay professional organization to evaluate safety status,identify and evaluate major hazards and safety risks in each workshop and depament. We also set up a bulletin board ofWorkplace Safety risk classication and control prominent locations and key areas, make notication card of post safety risks,and develop targeted risk control measures to achieve in-depth defense, early prevention and source management.We establish a long-term mechanism for identifying and addressing hazards in workplace safety incidents, and inspect thesafety and identify and address the hazards in an all-round way. e Company's hazard identication includes annual safetyinspection, quaerly company-level safety inspection, monthly safety inspection, weekly team-level safety inspection, and dailysafety inspection. For the hazards and problems discovered during identication, we clarify the correction plan and responsibleperson and supeise the correction to ensure the complete elimination of safety hazards and comprehensive control of safetyrisks.In 2024, the completion rate of the Company's safety hazard correction was 100%.

Competition on Hazard Identication

Pre-Holiday Safety InspectionSummer Safety Inspection

EHS Incident Management

We have developed theEHS Incident Management Systemand established comprehensive procedures for classifying,grading, reporting, investigating, and handling EHS incidents. After an incident occurs, the responsible person is requiredto report it immediately and inform the superior government within the prescribed time based on incident level. The EHSDepartment conducts monthly statistics on the occurring EHS incidents, analyzes the causes of hazards exposed by theincidents, and formulates and implements appropriate corrective measures. We encourage employees to paicipate in EHSincident management, and commend and reward the relevant meritorious personnel to mobilize the enthusiasm of all sta topaicipate.

Flow Cha of EHS Incident Investigation and Handling

SuperiorGovernment

GeneralManager

DepartmentManager

DiscovererEHS Safety

Ocer

EHSmanager

VicePresidentof EHSLocalResponsiblePerson

Occur

Archive

Major EHSincidentMinor EHS incident

ReviewApprove

Approve

General or major EHS incident

Take immediateemergency actionand repoDetermine leveland catego

Verify leveland categoRepoRepo

Repo

Investigate &rectify

Hospitalized, RMB 10,000 or more

Recordinjuries

andabove

Investigateand handle

Local Dept. organizesa investigation team toinvestigate and ll in aninvestigation repo (in 3 days)

EHS Dept. organizes aninvestigation team to investigateand ll in an investigation repo

(in 1 week)

EHS Dept. les the incidentEHS Dept. monitors the correction

ReviewApprove

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Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Drill Content, Frequency, etc.Drill Content

DrillFrequency

Drill ModeParticipants

ResponsibleDepartmentComprehensiveemergency drill

At least once

a year

On-site drills (re drills, leakage pluggingdrills, personnel evacuation, etc.)

Emergency rescue teammembers and employees

in relevant positions

EmergencyCommand CenterSpecialemergency drill

At least once

a year

Tabletop drills, on-site drills (re drills,leakage plugging drills, personnel

evacuation, etc.)

Emergency rescue teammembers and employees

in relevant positions

Emergencycommand center

or functional

depamentOn-site disposalscheme

At least twice

a year

On-site drills, shift-level safety activities

Employees in relevantpositions

Relevantdepaments or

teams

Emergency Drill of Yangzhou LianaoEmergency Drill of Yangzhou Aurisco

Aurisco conducted two rounds of "tabletop rehearsal of hydrochloric acid bottom valve leakage” on June 18 and 26,2024, and carried out a "comprehensive practical drill of hydrochloric acid bottom valve leakage” on June 28. ecomprehensive drill tested the adaptability and eectiveness of the Company's emergency plan for workplace safetyincidents, as well as the emergency response and coordination capabilities of the emergency rescue team. In addition,we summarized the shocomings in the drill, developed an emergency drill correction plan, and constantly improvedthe emergency plan.

Emergency CommandMaterial Transpoation

On-site Ale, Rescue, Fireghting

Emergency EvacuationEmergency Monitoring

Safety Emergency ManagementIn order to improve the Company's ability to deal with emergency safety incidents, we have formulated emergency managementprocedures such as theEmergency Management System and Emergency Materials Management Regulations, set up a safetyemergency management organization, and dened the emergency suppo responsibilities of each depament, in order toguarantee eective rescue emergencies and minimize casualties, propey losses and environmental hazards.

We have prepared theEmergency Plan for Workplace Safety Incidentsand conducted emergency drills regularly to testthe eectiveness and rationality of the emergency plan and to improve the emergency response ability of the paicipants,including the ability to organize, command, respond quickly and deal with emergencies, so as to enhance their ability torespond to emergencies.

Emergency Management Organization

Commander-in-Chief: General ManagerDeputy Commander-in-Chief: Deputy General Manager in Charge of Safety

Emergency Expe Team

Emergency Fireghting Team

Emergency Rescue Team

Medical Rescue TeamOn-site Security TeamExternal Liaison TeamMaterial Suppo Team

Emergency Monitoring Team

CaseAurisco organized comprehensive emergency drills for emergencies

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Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

To establish a work style of "emphasizing safety and responding to emergencies", fuher consolidate the foundationof workplace safety, and ensure safe and stable production, Yangzhou Lianao conducted a series of "Workplace SafetyMonth" activities.The activities included "Crossing the Frontline", "the Best Firefighter", emergency response drills, and safety skillscompetitions, strengthening the safety quality of all employees and creating a strong safety culture.

Speech by General ManagerSpeech by Vice General Manager

Fire Safety TrainingFire Safety Practice

Safety Month Award

Construction of Safety Culture

Safety culture development is an impoant pa of safety management. We car out safety publicity and training throughmultiple channels in various forms, strive to create a strong atmosphere of safety culture, enhance the workplace safetyawareness of all employees, and enrich their safety knowledge. We car out a series of workplace safety education activities,such as Workplace Safety Month and EHS Culture Season, build a safety culture with the characteristics of the Company,establish the ideology that "everyone controls safety, everyone should be safe", and further improve the workplace safetymanagement.In 2024, the Company's safety training coverage rate was 100%.

June 2024 is the 23rd National Workplace Safety Month. Aurisco launched a series of "Workplace Safety Month" activitieswith the theme of "Eveone Puts Safety First, Eveone Knows Emergency Response, Smooth Access to Help", promotingthe sustained stability of the workplace safety.The "Workplace Safety Month" activities covered all employees, including kick-off meeting, HAZOP training, safetyawareness enhancement training, comprehensive emergency drills, emergency competitions, hazard identificationcompetitions, etc. We popularized safety knowledge through special activities, concentrated publicity and other forms,impressed the concept of safety development into the mind of employees, developed the safety culture, and improved thesafety quality of all employees, in order to eectively prevent and curb safety incidents.

Publicity Materials for Workplace Safety Month

Kick-o Meeting of Workplace Safety MonthEmergency DrillEmergency Response Competition

Case

Case

Aurisco carried out a series of activities of "Workplace Safety Month" in 2024

Yangzhou Lianao carried out a series of activities of "Workplace Safety Month" in 2024

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Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Improvement of People's WellbeingAdhering to the public benet concept of "caring for life, taking care of health, contributing to society, and keeping continuousinnovation", Aurisco takes the initiative in social benefits, volunteer services, rural revitalization and other actions. We arecommitted to improving people's well-being in development, sharing development achievements with society, demonstratingits responsibility through practical actions, and making eve eo to promote a lively situation of charity for all and publicwelfare for all.Promoting Hehe CultureTogether with 13 other enterprises, we jointly initiated Tiantaishan Hehe Cultural Foundation, and formed a council to jointlypublicize, support and promote Tiantaishan Hehe culture, guide enterprises to fulfill their social responsibilities, and formdistinctive brands such as Hehe Tiaojie, Hehe Cunju, and Hehe Qingfeng, contributing to the high-quality construction ofa modern Hehe City. In November 2024, the 2024 Global Forum on Hehe Culture was held in Tiantai County, Taizhou City,Zhejiang Province. Taking this forum as an oppounity, we promoted cooperation and exchanges on a larger scale, in a widerrange of elds, and at a deeper level, sharing Hehe wisdom and car forward Hehe culture.

Tiantaishan Hehe Culture Foundation Conference2024 Global Forum on Hehe Culture

Conducting "Overseas Chinese Heartwarming" campaignIn order to enhance the sense of happiness and achievement of overseas Chinese, and promote the sharing of theachievements among the overseas Chinese community, Aurisco launched an "Overseas Chinese Heawarming" campaign. Wecollaborated with charitable organizations to present New Year scrolls to overseas Chinese enterprises, and organized threeactivities for overseas Chinese to commemorate Wang Aliang, a "model of loving hometown", in order to unite the overseasChinese. We organized more than 60 overseas Chinese and their families to paicipate in rst aid training to improve theirhealth literacy. We held charity bazaar for students, oered condolences to the families of overseas Chinese, family membersof overseas Chinese students, left-behind elderly people in overseas Chinese communities, and hospitalized overseas Chinese,conveying warmth and care.

New Year Scrolls for Overseas Chinese EnterprisesCommemoration for Wang Aliang, a "Model of Loving Hometown”

First Aid Training for Overseas Chinese and eir FamiliesCondolences for the Elderly Left Behind in Overseas Chinese Communities

Evacuation Drill“One-Stop EHS Knowledge Contest"

“Guardian” Campaign“Control Star” Campaign

“Fire Hose Shooting” Campaign

e second quaer of 2024 was the EHS Culture Season of Yangzhou Aurisco. In order to comprehensively improvethe capability of preventing and controlling EHS risks, Yangzhou Aurisco organized a series of "EHS Culture Season"activities, including evacuation drill, EHS knowledge and theory exams, protection guard, control star, fire hoseshooting and comprehensive emergency drills, aiming to comprehensively and multi-dimensionally enhanceemployees' EHS awareness and strengthen their emergency response capabilities.

CaseYangzhou Aurisco launched “EHS Culture Quarter” Activity in 2024

Key Performance in 2024

Investment in workplacesafety:RMB1960.58Number of lost workdays due towork-related injuries:354

Coverage rate of safety training for on-duty personnel:

100%

Number of employee fatalities:

Number of incidents that causeloss of working hours: 5

People Foremost to Pass on Warmth and Power

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Engaging in volunteer servicesWe always adhere to the volunteer spirit of "dedication, friendship, mutual assistance and progress", encourage employeesto paicipate in volunteer activities and community construction, and work together to create a harmonious society. Weorganized blood donation in September 2024, calling on our employees to contribute to the society as far as they can. Atotal of 69 people paicipated in blood donation activity and donated 24,400 ml of blood. Adhering to the traditional viueof respecting and loving the elderly, we oered condolences to the elderly on the Double Ninth Festival, allowing them tofully feel the warmth of society and enhance their psychological happiness.

Volunta Blood DonationCondolences for Elderly on the Double Ninth Festival2024 Charitable Donation Programs of AuriscoS/NProjectsTypeSignatoryDateAmount (RMB 10

)

Improvement of Residential Environment inBixia Xuxin Village, Shifeng Sub-district

Environmental Protection

EnvironmentalProtection

2024.152Tianyi FundsSocial Public Construction

Charity Federation ofTiantai County

2024.21002Education Fund of Baihe TownEducation

Education Foundationof Tiantai County

2024.330

Warm Care for Overseas Chinese, OverseasChinese, Overseas Students' Families inTiantai and Suppo for Other Students withDiculties in eir Study and Life

Social Public Construction

Red Hea Society ofTiantai County

2024.434Orange Life Buoy Program in TiantaiSocial Public Construction

Red Cross Society ofTiantai County

2024.510

Road Construction in Banqiao Village(Dongwan Natural Village)

Social Public Construction

Red Cross Society ofTiantai County

2024.557New Count Squire SodalitySocial Public Construction

Charity Federation ofTiantai County

2024.615

One-Day Charitable Donation of Yangzhou

Lianao

Social Public Construction/2024.60.5

Charity (Co-Prosperity) Undeaking of NewCount Squire Sodality in Chicheng Street

Social Public Construction

Charity Federation of

Tiantai County

2024.615

One-Day Charity Donation of Yangzhou

Aurisco

Social Public Construction/2024.70.511Human Resource SeiceSocial Public Construction

Human ResourcesAssociation of TiantaiCounty

2024.70.6

Charity (Co-Prosperity) Undeaking of NewCount Squire Sodality in Tantou Town

Social Public Construction

Charity Federation ofTiantai County

2024.920

Low-carbon Planting of Upland Rice in

Nanping Township

Environmental Protection

Charity Federation ofTiantai County

2024.101011Scholarship Funded by Yangzhou LianaoEducation/2024.100.5

Condolences for Elderly on the Double Ninth

Festival in Badu Village

Social Public Construction

Charity Federation ofTiantai County

2024.10313Project of Promoting Hehe CultureCulture

Hehe CultureFoundation of TiantaiMountain

2024.12100

Winter Supplies Procurement for SanitationWorkers in Tiantai County

Social Public Construction

Charity Federation of

Tiantai County

2024.1220In Total338.1

Empowering rural revitalizationIn response to the national strategies on rural revitalization, concentrates public welfare and charity resources onthe fields of "agriculture, rural areas and rural residents", collaborates with rural areas to promote the construction ofeducation mechanisms, and promotes the vigorous and healthy development of rural education. We cooperated withBaihe Primary School to build an extracurricular practice base, and practicing the requirements of Moral Education,Labor Education, Aesthetic Education, Sports Education and Intellectual Education, promoting the overall developmentof students. With the characteristics of "love, play and beauty", we help Baihe Central Kindergarten to become "Grade1 Kindergarten in Zhejiang". Relying on the rural revitalization workstation of Tsinghua University, we organize studentsfrom more than 10 universities such as Tsinghua University and Peking University to carry out summer practice in BaiheTown, contributing their power to rural revitalization.

Extracurricular Practice of Baihe Elementa School"Children's Day" Caring Activities

"Teacher's Day” Condolence ActivityRural Revitalization Workstation Visit to Zhejiang Tiantai Suppo TeamConcern for Life SafetyAs a responsible pharmaceutical company, Aurisco pays great attention to life safety. Based on the "Tiantai Aurisco Orange LifeBuoy" program, we promote drowning prevention with the strength of public welfare organizations, and build a solid defenseline to ensure the safety of people's lives. On May 8, 2024, the Humanitarian Public Welfare Day, we continued to paicipatein the program "Drowning Prevention and Rescue Around Us" of the Tiantai County Red Cross. e program was intended toset up a life network to prevent drowning incidents by installing drowning rescue equipment such as "one circle, one pole andone rope" (i.e. life buoy, life pole and life rope) in key waters, rivers and reseoirs. We also carried out publicity and training ondrowning prevention in communities and schools to fuher raise the awareness of the public, especially teenagers, of drowningprevention. In 2024, the "Aurisco Orange Life Buoy" was placed in 100 water areas in Tiantai County.

Appendixes

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

AppendixesKey PeormanceGovernance Performance

Performance in Sustainable Supply Chain

Environmental Performance

Performance in Business EthicsIndicatorUnit2024Total number of business ethics training sessionsTime21Coverage rate of business ethics training%100Average hours of business ethics training per employeeHour2Number of whistleblowing cases (in terms of business ethics)Nos.0

Number of conrmed corruption incidentsNos.0

Performance in Information SecurityIndicatorUnit2024Coverage rate of information security training%100Number of conrmed information security incidentsNos.0

Performance in Environmental ManagementIndicatorUnit202420232022Investment in environmental protection projectsRMB 10,0002643.29302874.482551.42Percentage of employees trained on environmental management%100100100Percentage of operational sites undergoing environmental risk assessment%100100100

Performance in Wastewater TreatmentIndicatorUnit202420232022COD (sewer-connected amount)Ton22.044320.06823.91Ammonia nitrogen (sewer-connected amount)Ton0.96810.4470.468Total nitrogen (sewer-connected amount)Ton3.25071.9052.603Total phosphorus (sewer-connected amount)Ton0.1870.1580.134

Performance in Exhaust Gas Treatment

IndicatorUnit202420232022Nitrogen oxideTon1.66922.453.53Total non-methane hydrocarbonsTon6.384.75343.17

Sulfur dioxideTon0.16560.18960.2174

Performance in Waste Treatment

IndicatorUnit202420232022Total general waste generatedTon179.46137.67110.79General waste treatedTon179.46138.54109.93Total hazardous waste generatedTon4571.913921.643144.50Hazardous waste transferredTon4571.913921.643144.50

Performance in Water Resource Management

IndicatorUnit202420232022Total water consumptionTon320968261670251394

Performance in Energy Consumption

IndicatorUnit202420232022Natural gasm3206387218948205625

GasolineLiter13606.331655110162.35

Diesel oilLiter791261004981Purchased electricitykWh531627924496561044842564Purchased steamTon669365635253159

Performance in GHG Management

IndicatorUnit202420232022Direct GHGs emissions (Scope 1)tCO2e2731.192014.951137.61Indirect GHGs emissions (Scope 2)tCO2e57520.2548964.9548022.32Indirect GHGs emissions (Scope 3)tCO2e25694.6120637.52/

Performance in Sustainable Supply Chain

IndicatorUnit2024Number of suppliers who completed questionnaire suey on social responsibilityNos.22Number of suppliers who undergone on-site audit for social responsibilityNos.20Number of suppliers who signed the Supplier Code of ConductNos.22Number of suppliers who received ESG construction such as social responsibility trainingNos.3

Percentage of purchasers trained on sustainable procurement%100

e environmental peormance primarily sourced from the company's three production bases: Aurisco, Yangzhou Aurisco, and Yangzhou Lianao.

Appendixes

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) RepoPerformance in Labor and Human Rights ProtectionPerformance in Occupational Health and Safety

Performance in Labor ProtectionIndicatorUnit202420232022Total number of employeesPerson178415211355Number of new employeesPerson380292280Number of employees with disabilitiesPerson772

Gender Structure

Number of female employeesPerson599407352Percentage of female employees%33.5826.7625.98Number of executivesPerson888Number of female executivesPerson444Percentage of female executives%505050Number of Board of DirectorsPerson999Number of female directorsPerson112Percentage of female directors%11.1111.1122.22

Educational Background Structure

Number of employees with doctorate degree and abovePerson141113

Number of employees with master degreePerson13810977Number of employees with bachelor's degreePerson669529426Number of employees with junior college degreePerson387318286

Performance in Employee Training and DevelopmentIndicatorUnit202420232022Total investment in trainingRMB 10,00017.8064.77611.643Number of employees receiving trainingPerson550724403840290Number of training sessionsTime652050844374

Training coverage rate%100100100Percentage of employees undergoing skills-related training%100100100Percentage of employees undergoing career development

planning and evaluation

%100100100

Performance in Occupational Health

IndicatorUnit202420232022Number of employees undergone occupational health examination

(onboarding)

Person520384320Number of employees undergone occupational health examination

(on-post)

Person903769577Number of employees diagnosed with occupational diseases (on-

post)

Person000Number of employees diagnosed with occupational

contraindications (on-post)

Person265Number of employees undergone occupational health examination

(o-post)

Person6575103Number of employees diagnosed with occupational diseases (o-

post)

Person000Number of employees diagnosed with occupational

contraindications (o-post)

Person000Coverage Rate of Employee Physical Exam (for positions with

occupational hazards)

%100100100Performance in Occupational SafetyIndicatorUnit202420232022Investment in workplace safetyRMB 10,0001960.58703.14921.79Number of employee fatalitiesPerson000Lost workdays due to work-related injuriesNos.565Number of lost workdays due to work-related injuriesDay35419680Coverage rate of safety training for on-the-job personnel%100100100

Appendixes

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Indicator Index

GRI Content Index

Statementof Use

Aurisco Pharmaceutical Co., Ltd. has reported the information cited in this GRI content index for theperiod from January 1, 2024, to December 31, 2024 with reference to the GRI Standards.

GRI 1 usedGRI 1: Foundation 2021GRI StandardsDisclosuresCorresponding Position

GRI 2:

GeneralDisclosures2021

eorganizationand itsrepoingpractices

2-1 Organizational detailsCompany Prole2-2 Entities included in the organization’ssustainability repoing

About the Repo2-3 Repoing period, frequency and contact pointAbout the RepoActivities andworkers

2-6 Activities, value chain and other businessrelationships

Company Prole2-7 Employees

People Foremost to Pass

on Warmth and Power

Governance

2-9 Governance structure and composition

Corporate Governance

Strengthening2-12 Role of the highest governance body inoverseeing the management of impacts

ESG Governance2-13 Delegation of responsibility for managingimpacts

ESG Governance2-14 Role of the highest governance body insustainability repoing

ESG Governance2-15 Conicts of interest

Compliance with Business

Ethics2-16 Communication of critical concerns

Communication with

Stakeholders2-17 Collective knowledge of the highest governancebody

ESG Governance

Strategic,policies, andpractices

2-22 Statement on sustainable development strategyESG Governance2-23 Policy commitmentsESG Governance2-24 Embedding policy commitmentsESG Governance2-25 Processes to remediate negative impacts

Compliance with Business

Ethics2-26 Mechanisms for seeking advice and raisingconcerns

Compliance with Business

Ethics2-27 Compliance with laws and regulationsRefer to the RepoStakeholderengagement

2-29 Approach to stakeholder engagement

Communication with

Stakeholders2-30 Collective bargaining agreements

Enhancement in

Democratic GovernanceGRI 3: Material Topics 2021

3-1 Process to determine material topics

Management of Material

Topics3-2 List of material topics

Management of Material

Topics3-3 Management of material topics

Management of Material

Topics

GRI 201: Economic Peormance

2016

201-1 Direct economic value generated and distributedCompany Prole

GRI 205: Anti-corruption 2016

205-1 Operations assessed for risks related to corruption

Compliance withBusiness Ethics205-2 Communication and training about anti-corruption policies

and procedures

Compliance withBusiness Ethics205-3 Conrmed incidents of corruption and actions taken

Compliance withBusiness EthicsGRI 302: Energy 2016302-1 Energy consumption within the organizationKey Peormance

GRI 303: Water and Euents

2018

303-1 Interactions with water as a shared resource

Optimizationof EnergyManagement303-2 Management of water discharge-related impacts

Optimizationof EnergyManagement303-3 Water withdrawal

Optimizationof EnergyManagement303-4 Water discharge

Optimizationof EnergyManagement303-5 Water consumption

Optimizationof EnergyManagementGRI 305: Emissions 2016

305-1 Direct (Scope 1) GHG emissionKey Peormance305-2 Energy indirect (Scope 2) GHG emissionsKey Peormance305-3 Other indirect (Scope 3) GHG emissionsKey Peormance

GRI 306: Waste 2020

306-1 Waste generation and signicant waste-related

impacts

Standardizationof Pollutionand WasteManagement306-2 Management of signicant waste-related impacts

Standardizationof Pollutionand WasteManagement306-3 Waste generatedKey Peormance306-4 Waste diveed from disposalKey Peormance306-5 Waste directed to disposalKey PeormanceGRI 308: SupplierEnvironmental Assessment

2016

308-1 New suppliers that were screened using environmental

criteria

Sustainable SupplyChain

GRI 401: Employment 2016

401-2 Benets provided to full-time employees that are notprovided to tempora or pa-time employees

Implementation ofWelfare and Care401-3 Parental leave

Implementation ofWelfare and Care

Appendixes

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

GRI 403: Occupational Health

and Safety 2018

Occupational health and safety management system

Occupational Health and

Safety403-2 Hazard identication, risk assessment, and

incident investigation

Occupational Health and

Safety403-3 Occupational health seices

Occupational Health and

Safety403-4 Worker paicipation, consultation, andcommunication on occupational health and safety

Occupational Health and

Safety403-5 Worker training on occupational health and

safety

Occupational Health and

Safety403-6 Promotion of worker health

Occupational Health and

Safety403-7 Prevention and mitigation of occupationalhealth and safety impacts directly linked by business

relationships

Occupational Health and

Safety403-8 Workers covered by an occupational health

and safety management system

Occupational Health and

Safety403-9 Work-related injuries

Occupational Health and

Safety403-10 Work-related ill health

Occupational Health and

SafetyGRI 404: Training andEducation 2016

404-3 Percentage of employees receiving regularpeormance and career development reviews

Key PeormanceGRI 405: Diversity and EqualOppounity 2016

405-1 Diversity of governance bodies and employees

Corporate GovernanceStrengtheningProtection of Employees'Rights and InterestsGRI 406: Non-discrimination

2016

406-1 Incidents of discrimination and corrective

actions taken

Protection of Employees'Rights and InterestsGRI 407: Freedom ofAssociation and CollectiveBargaining 2016

407-1 Operations and suppliers in which the right tofreedom of association and collective bargaining may

be at risk

Protection of Employees'Rights and InterestsGRI 408: Child Labor 2016

408-1 Operations and suppliers at signicant risk for

incidents of child labor

Protection of Employees'Rights and InterestsGRI 409: Forced or Compulso

Labor 2016

409-1 Operations and suppliers at signicant risk forincidents of forces or compulso labor

Protection of Employees'Rights and InterestsGRI 414: Supplier SocialAssessment 2016

414-1 New suppliers that were screened using social

criteria

Sustainable Supply Chain414-2 Negative social impacts in the supply chain

and actions taken

Sustainable Supply ChainGRI 416: Customer Health and

Safety 2016

416-1 Assessment of the health and safety impacts

of product and seice categories

Pursuit of ExcellentQualityGRI 418: Customer Privacy

2016

418-1 Substantiated complaints concerning breachesof customer privacy and losses of customer data

Information Safeguarding

TCFD Content Index

DimensionsDisclosure

Corresponding

Chapter

Governance

Disclose theorganization’sgovernance aroundclimate-related risksand oppounities.

a) Describe the board’s oversight of climate-relatedrisks and oppounities.

Climate ChangeResponse -Governanceb) Describe management’s role in assessing andmanaging climate-related risks and oppounities.

Strategy

Disclose the actualand potential impactsof climate-related risksand oppounitieson the organization’sbusinesses, strategy,

and nancialplanning where suchinformation is material.

a) Describe the climate-related risks andopportunities the organization has identified overthe sho, medium, and long term.

Climate ChangeResponse -Strategy, Riskand OppounityManagementb) Describe the impact of climate-related risks andopportunities on the organization’s businesses,strategy, and nancial planning.c) Describe the resilience of the organization’sstrategy, taking into consideration dierent climate-related scenarios, including a 2°C or lower scenario.

RiskManagement

Disclose how theorganization identies,assesses, andmanages climate-related risks.

a) Describe the organization’s processes foridentifying and assessing climate-related risks.

Climate Change

Response -Strategy, Riskand OppounityManagementb) Describe the organization’s processes formanaging climate-related risks.c) Describe how processes for identifying, assessing,and managing climate-related risks are integratedinto the organization’s overall risk management.

Metrics andTargets

Disclose the metricsand targets used toassess and managerelevant climate-related risks andoppounities wheresuch information ismaterial.

a) Disclose the metrics used by the organization toaccess climate-related risks and oppounities basedon its strategy and risk management processes

Climate Change

Response -

Metrics andTargetsb) Disclose Scope 1 (direct discharge), Scope 2(indirect discharge), and, if appropriate, Scope 3(other indirect discharge) greenhouse gas (GHG)emissions, and the related risks.c) Describe the targets used by the organization tomanage climate-related risks and oppounities andpeormance against targets.

Appendixes

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

We advocate the initiatives of water conseation, technological innovation andprocess optimization among employees to incorporate the concept of waterconseation into production and operation.

Optimization ofResource Utilization

We develop a comprehensive energy management system, set clear energymanagement objectives, and establish a dedicated energy managementorganization with full-time and part-time energy managers and statisticians,to strengthen the whole process of energy management and maximize energyeciency.

Optimization ofResource Utilization

We launch a number of energy conseation and consumption reductionprojects to effectively save energy resources and improve energyeciency.

Protection ofEmployees' Rights

and Interests

Enhancement

in Democratic

Governance

We actively promote the development and innovation of fluoridationtechnology, photochemical reaction technology, catalyzed oxidationtechnology, and selective oxidation technology, continuously enhancingour core competitiveness.

Adherence toInnovation-Driven

Development

We carry out quality management throughout the life cycle of ourproducts to ensure that our products strictly comply with the relevantstandards from design to delive.We adhere to the core values of "customer-focused", specificallyproviding customers with safe and reliable products and seices basedon their needs; we also constantly optimize the hardware and softwareresources such as manpower resource, infrastructure and technology soas to provide leading products and quality seices to global customers.

Pursuit for thePremium QualityProvision of High-

Quality Seice

SDGs Content IndexSDGsOur Actions

Corresponding

Chapters

We establish a regularized assistance mechanism for employees in diculties,and treat their diculties as those of the Company.

Implementationof Welfare andCare

We set up a compensation system that is suitable for the Company'sdevelopment needs, providing employees with competitive compensationpackages in the industry and in the region, and fully stimulating theirpotential.We continue to optimize our welfare management system and providediversied welfare suppo to enhance employee happiness and solve theirdiculties.We strive to build a mechanism to protect the psychological health ofemployees by combining internal psychological counseling and externalresources.We commission a qualied occupational health technical seice institutionto detect occupational hazard factors in the workplace eve year.We stand tall and firm in the primary concept of workplace safety in thedevelopment, always make safety the focus of our work, and put more eosinto workplace safety in a standardized and standardized way.

Implementationof Welfare andCareOccupationalHealth and Safety

We strive to provide employees with comprehensive and customized trainingprograms, create a training system with Aurisco characteristics, developthe Company into a learning organization, and improve the comprehensivequality of all employees.We work together with rural areas to promote the construction of educationmechanisms and facilitate the vigorous and healthy development of ruraleducation.

Suppo forEmployee GrowthImprovementof People'sWellbeing

We adhere to the principles of gender equality and equal pay for equal work,fully respect the value and special rights and interests of female employees,encouraged them to explore and seize career development opportunities,and help them optimize creative ability.We organize special physical examinations for female employees tosafeguard their health.

Protection of

Employees'

Rights andInterests

Appendixes

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Indexes for Preparation of Sustainable Development Reports of Listed Companies Issued byShanghai Stock ExchangeDimensionS/NTopicsCorresponding Chapters

Environment

1Climate change responseClimate Change Response2Pollutant Release

Standardization of Pollution andWaste Management3Waste Treatment

Standardization of Pollution and

Waste Management

Ecosystem and Biodiversity

Conseation

/

Environmental ComplianceManagement

Enhancement of Environmental

Management6Energy UtilizationOptimization of Resource Utilization7Water Resource UtilizationOptimization of Resource Utilization8Circular Economy

Standardization of Pollution and

Waste ManagementOptimization of Resource Utilization

Society

9Rural RevitalizationImprovement of People's Wellbeing10Social ContributionImprovement of People's Wellbeing11Innovation-driven Development

Adherence to Technology-Driven

Development12Science and Technology Ethics/13Supply Chain SecuritySustainable Supply Chain

Equal Treatment to Small and

Medium-sized Enterprises

/

Safety and Quality of Product and

Seice

Pursuit for the Premium QualityProvision of High-Quality Seice

Data Security and Customer Privacy

Protection

Information Safeguarding17Employees

People Foremost to Pass on Warmth

and PowerGovernance Relatedto SustainableDevelopment

18Due DiligenceESG Governance19Communication with StakeholdersESG Governance

Anti-Commercial Bribe and Anti-

Corruption

Compliance with Business Ethics21Anti-Unfair CompetitionCompliance with Business Ethics

We integrate the functions related to climate change response into theESG system, and establish a climate governance structure led by the boardof directors and a carbon neutrality team to promote the identification,assessment and management of climate-related risks and oppounities fromtop to bottom.We identify, assess and manage the sho -, medium - and long-term impactsof significant climate change risks and opportunities on the Company inconjunction with the systematic guidance from the Task Force on Climate-Related Financial Disclosures (TCFD), and develop targeted countermeasuresbased on the identication results.We follow the 1.5 ℃ temperature control path and set science-based emissionsreduction targets; we signed the Letter of SBTi Commitment in April 2023,committing to achieving carbon neutrality by 2030.

Climate ChangeResponse

We joined the United Nations Global Compact (UNGC) in July 2024, suppoingthe UN's 10 principles in human rights, labor standards, environment and anti-corruption.We keep to the stringent specication of business ethics, and set foh businessethics principles in the Business Ethics Policy, expressly prohibiting commercialcorruption, bribery, unfair competition and other conducts; we also workwith employees and partners to maintain a sunny and transparent businessenvironment.

ESG GovernanceCompliance withBusiness Ethics

We are highly concerned about the impact of the Company's operations onall stakeholders, respect and safeguard the legitimate rights and interests ofall paies, understand the expectations and demands of all paies in a timelymanner by establishing a variety of online and oine communication channels,and dynamically incorporate them into the Company's ESG strategic planning.We make it own mission to promote industry development, take part in theindustry ecosystem, participate in standard setting, and contribute to thestandardized development of the indust.We regard sustainable development as an important component ofprocurement, and set clear requirements for suppliers in terms of labor andhuman rights, occupational health and safety, environmental protection,sustainable procurement management, etc., to build a more responsible supplychain ecosystem.

ESG GovernanceContributionto IndustrialDevelopmentSustainableSupply Chain

Aurisco Pharmaceutical Co., Ltd. 2024 Environmental, Social, and Governance (ESG) Repo

Feedback TableThank you very much for reading the 2024 Environmental, Social and Governance (ESG) Report of Aurisco PharmaceuticalCo., Ltd. In order to continuously improve the Company's ESG work and provide valuable information to our stakeholders, wesincerely invite you to give us your valuable comments and suggestions on the Repo and Aurisco's ESG work, and feed backto us through the following ways. anks for your substantial suppo to our ESG!

Optional questions: (Please select "√" in the appropriate position)

1.For Aurisco, your identity is：

□Shareholder & Investor □Government & Regulatory Agency □Customer □Employee □Supplier &

Partner □Community & the Public □Other (please specify)

2.Your overall assessment on the ESG Report is？

□Very Good □Good □Average □Poor □Very Poor

3.Response to and disclosure of stakeholder concerns in the Report are：

□Very Good □Good □Average □Poor □Very Poor

4.Clarity, accuracy and completeness of the information, indicators and data disclosed in the Report are：

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5.The text, structural arrangement, and layout design of the Report are？

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Open question:

What do you like most about the Report？What other information would you like to see in the Report besides the disclosed content？Do you have any comments or suggestions on our ESG？

Our contact information

Tel：0576-83177301Email：aurisco@aurisco.com