Business Ethics Management Policy

Sino Biopharmaceutical adheres to a high-level code of business ethics, formulates and implements strict business ethics policies, continuously strengthens compliance performance, and improves the management of business ethics.

1. Business ethics supervision: Sino Biopharmaceutical establishes Risk Compliance Committee, headed by the Chairman of the Board, to perform the Group's compliance management responsibilities and supervise the implementation of the Group's business ethics policies.

2. Business ethics training policy: Sino Biopharmaceutical regularly carries out business ethics training for all employees to strengthen their business ethics awareness.

3. Audit of business ethics standards: Sino Biopharmaceutical annually audits and revises the Group's business ethics standards to ensure the applicability and comprehensiveness of the Group's business ethics standards.

 

Anti-corruption Policies

Sino Biopharmaceutical is committed to creating an integrity and honest business environment.

The Furnace Rules are the programmatic document of anti-corruption for the Group. It aims to clarify the red line of business ethics of the Group, standardize the judgment standard of violations of discipline and the procedure of accountability.

1. Laws and regulations related to duty crimes that the employee should be aware of: including the crime of bribery of non-state staff, crime of duty encroachment, crime of bid-colluding, crime of embezzlement of funds, crime of illegal operation, crime of infringing commercial secrets, crime of forging seals, etc.

2. Eight Red Lines: including disrupting production and operation order, abuse of power, data file fraud, illegal information leaks, sexual harassment, bribery, etc.

3. Accountability for violations of rules and disciplines: including the types of accountability, conflicts of interest, bribery, embezzlement and theft, dereliction of duty and application, problem investigation and disclosure methods, management of gifts, management of complaints and reports, etc.

4. Relevant rights and responsibilities: including confidentiality requirements, rules of rights and responsibilities, etc.

At the same time, to improve the anti-corruption mechanism, we have formulated regulations such as the Anti-Commercial Bribery Regulations and Supplier Integrity Agreement.

1. Commercial bribery risk points and risk control measures: including product sales, invoices, personnel employment, external interaction and communication, etc.

2. Risk assessment and response: Conduct a comprehensive risk assessment at least once a year.

3. Anti-commercial bribery training: Anti-commercial bribery training shall be carried out during the induction training of all staff, and relevant training shall be carried out from time to time.

4. Report handling process: The Compliance Department will conduct relevant investigation after receiving the report, disciplinary measures will be taken against the violators, and the internal control loopholes of the Group will be rectified.

5. Supplier Integrity Agreement: fraud, bribery, exchange of interests and other acts of seeking improper benefits are strictly prohibited, different treatment measures for default suppliers according to the severity of the circumstances are specified, and relevant reporting channels are specified.

 

Employee Integrity Agreement

Sino Biopharmaceutical adheres to the core values of "honest life and healthy development", and builds an ethical behavior culture, to emphasize internal integrity and compliance. As a pharmaceutical enterprise, it is of great significance to adhere to honesty and integrity, operate in accordance with the law and regulations, to clean up the internal atmosphere of the enterprise, enhance the reputation of the enterprise, and enhance the brand value of the enterprise. As an employee, integrity and compliance are related to the sustainable career development of employees.

1. Ethical and honest. Follow the Group's cultural values, adhere to the "conduct based on morality", integrity, dedication, and abide by fairness and justice.

2. Abide by the law, compliance and self-discipline. Strengthen the awareness of "red line" and "bottom line", comply with laws and regulations, comply with the Group's rules and regulations.

3. Adhere to principles and eliminate fraud. Firm faith, adhere to the principle, actively identify the risk of fraud, consciously resist temptation, say no to irregularities and fraud.

 

Anti-money Laundering Policy

In order to prevent and fight of money laundering and other serious crimes through the Group's business activities, safeguard the financial order, guarantee the Group's operating safety and credibility, in accordance with the Anti-Money Laundering Law of the People's Republic of China and the actual situation of the Group, Sino Biopharmaceutical has formulated the Anti-Money Laundering Management Measures of Sino Biopharmaceutical, which is applicable to Sino Biopharmaceutical and all its member companies, as well as the executives and all other employees of the companies.

1.Anti-money laundering prevention and supervision: anti-money laundering obligations, customer identity identification, anti-money laundering prevention measures, anti-money laundering supervision and assistance and other contents.Member companies and employees have the right to report when they find that the anti-money laundering obligations have not been fulfilled.

2.Anti-money laundering report: Employees have the right to report money laundering activities to the administrative department of anti-money laundering, relevant competent departments and public security organs.

 

Compliance Management Policy

In order to strengthen and standardize the compliance management of Sino Biopharmaceutical, improve the Group's operation management level and compliance risk prevention ability, and ensure the sustainable and healthy development of the Group, the Group formulated the Compliance Management Policy of Sino Biopharmaceutical.

1. Principles and objectives of compliance management

- Compliance management principles: comprehensive coverage, strengthen responsibility, consultation and linkage, independence

- Compliance management objectives: risk control, information smooth, compliance, effective management, crisis response

2. Compliance management organization

A compliance management organizational structure of leadership, compliance department and business department is established to identify, evaluate and manage the compliance risks of enterprise operation and management activities.

- The leadership shall perform the duties related to compliance management in accordance with laws, articles of association and regulations of the company, and bear the final responsibility for the effectiveness of compliance management of the enterprise;

- Compliance department is the daily management department of compliance work, which assists business departments to effectively identify and manage the compliance risks of company, reviews, supervises and inspects the compliance of company operation and management activities, and is responsible for the effectiveness of compliance management;

- Business departments shall strengthen the supervision and management of the compliance of its employees, and bear the primary responsibility for the effectiveness of the compliance management of the department.

3. Operation mechanism of compliance management

The Group’s compliance management operation includes a series of activities such as proactive identification and assessment of compliance risks, compliance consultation and review, compliance inspection, report and feedback to prevent, remedy and deal with compliance risks.

 

Supplier management

1. Supplier screening

In supplier selection, take into account both business relevance and environmental, social and corporate governance management skills. Conduct supplier ESG risk assessment to identify and screen significant suppliers. Factors to be considered in risk assessment include but are not limited to procurement scale, commodity category, sector of demand and supplier country risk.

2. Supplier assessment and audit

Establish supplier audit mechanism, including quality audit and non-quality audit, and track the production and operation of suppliers through document audit and on-site audit. For the quality audit, the quality department staff composed of the main audit team, with GMP requirements as the core to carry out. Non-quality audit consists of an audit team composed of personnel from EHS, ESG, human resources and other departments. It mainly refers to the guidelines of PSCI standard to evaluate the compliance of suppliers with business ethics, environment and labor rights. Among them, the key material suppliers must be audited on site; After the first on-site audit, a re-audit is generally conducted every three years, and an annual review of each supplier is conducted annually. According to the review summary report, on-site audit should be conducted at any time if an exception occurs more than three times a year and it is confirmed that the supplier's materials still need to be used. For suppliers with relevant changes, risk assessment should be carried out on the supplier change project combined with the company's product situation, and on-site audit should be carried out if necessary; On-site audit of non-critical material suppliers may not be carried out, but on-site audit must be carried out when anomalies occur more than 3 times a year and it is confirmed that the supplier's materials need to continue to be used; Only qualification audits are conducted for general material suppliers.

Provide guidance to suppliers on the problems found in the audit and assist them in making rectification plans. Provide remote or on-site support and required technical support to suppliers who have developed corrective action plans, and track the implementation of corrective action. All audit processes and audit results and corrections will be documented and archived in writing.

3. Supplier participation and development

Join hands with suppliers to grow together and actively enable sustainable development of the industrial chain. Based on the Supplier Code of Conduct, organize annual training on anti-corruption, quality management, environmental protection and other topics for suppliers, covering management requirements, process improvement, long-term planning, etc., to cultivate suppliers' ESG proactive management capabilities. Timely share peers' ESG management excellent practices with suppliers, organize suppliers to carry out ESG management self-assessment, help suppliers identify management gaps, improve sustainable development performance and management capabilities. Communicate with suppliers regularly to understand their ESG development needs and provide in-depth technical support and planning to support suppliers to improve long-term ESG performance.

 

Business Compliance Guidelines 

Sino Biopharmaceutical has always been adhering to the concept of compliance management, strictly abide by national laws and regulations and industry guidelines, standardize the company's business, and is committed to building a law-based enterprise with integrity and standardized governance. Basic principles of business compliance include:

- Pay attention to distinguish the type of the object of communication and the nature of activities: When the company conducts business cooperation with a certain object of communication, pay attention to the type of the object of communication and the nature of activities in accordance with the definition and relevant laws and regulations. The more the partner can exert influence on the company's business, the more attention should be paid to the behavior of the partner in the cooperation. If a business cooperation only supports or benefits the object's own business, the business conduct may violate the rules.

- Ensure proper purpose of business activities: The purpose of interaction between the company and the object it interacts with is to benefit patients and improve the medical level. The focus of interaction should be on communicating product information, providing scientific and educational advice, and supporting medical research and education.

- Not on the premise of product recommendation: Any business behavior shall not be based on the agreement or commitment of the partner to purchase or recommend the use of the product. It is strictly forbidden to provide any valuable goods directly or indirectly to the communication object in exchange for the prescription, recommendation, purchase, supply of the product and the promise of the patient's use of the product, nor to provide or promise to provide any other benefits in any way or under any conditions that may have an undue influence on the communication object in relation to the product.

- Ensure the transparency of business activities: The interaction with the communication object must be transparent, the communication process should be accurately and completely recorded, and relevant bills or accounting books and correspondence documents should be retained to provide support for the interaction and communication activities. No form of concealment, concealment or avoidance of such interaction shall be allowed.

- Compliance with national laws and regulations: The Group shall strictly abide by the applicable national laws, regulations, rules, industry norms and other relevant normative documents in carrying out any form of business activities to ensure the legal compliance of business behaviors.

 

Whistleblower Protection Policy

In order to protect the privacy and security of whistleblowers and establish a safe and credible reporting mechanism, Sino Biopharmaceutical has formulated the Sino Biopharmaceutical Whistleblower Protection Policy, which clarifies principles and measures for confidentiality of complaint information, protection of personal privacy, and handling of reports and complaints.

1.Confidentiality of complaint information: In the process of receiving complaints and reports, attention should be paid to the confidentiality of complaints and reports;

2.Protection of personal privacy: Personal privacy and business secrets involved in the investigation must be kept strictly confidential.

3.Handling of reports and complaints: It is strictly prohibited to retaliate against whistleblowers, cover up for internal "harmony", conceal and leak relevant information, and betray or damage the Group's cultural values.

  

Responsible Marketing Policy

Sino Biopharmaceutical adheres to the marketing principle of "truth and compliance", and carries out product promotion and marketing with a responsible attitude. We are committed to creating a transparent and trustworthy business environment to provide customers with reliable products and services. We are committed to:

1. Comply with marketing laws, regulations and industry norms of the country and region where the operation is located;

2. Conduct legal, true and accurate communication and publicity based on scientific facts, refrain from any false or misleading publicity, and ensure that accurate and true drug information is conveyed to stakeholders;

3.Fully respect and protect the privacy and data of customers or consumers;

4.Conduct regular marketing and sales audits to ensure the accuracy and compliance of advertising and marketing activities, as well as legal compliance of sales and marketing practices.

5.Regularly carry out marketing training to the senior management, marketing and sales personnel in the respective operating places, and enhance employees' awareness of compliance marketing.

 

Information Security and Privacy Protection Policy

Sino Biopharmaceutical attaches great importance to the information security and privacy protection of its customers and partners. The Audit Committee under the Board is responsible for overseeing the operation of the Group’s information security management system. A senior executive with professional experience in the formulation of information security strategies and process & architecture management, which named Chief Information Technology Officer, is designated as the representative for the management of the information security system. At the same time, a professional information security team is assigned to undertake the Group’s information security management, data development, and IT adoption. The Group strictly complies with the laws and regulations related to information security in the countries and regions where it operates. It is clearly required in the employee labor contract and the Code of Conduct for Employees that employees shall strictly abide by the principle of confidentiality of non-public information to customers, distributors and other third parties. The Code of Conduct for Employees clearly stipulates that employees shall keep strictly confidential the information, materials and achievements they have about the Group, and shall not disclose them to any other company or unrelated individuals.

The information operation and safety management policy should comply with the relevant provisions and requirements of the national laws and regulations, the document system of the relevant regulatory authorities, the industry norms and so on. All departments assume the responsibility of information operation and security management, including the chargers, the operators, and the users.

1. The employee shall keep the data confidential and shall not access or disseminate the data without permission.

2. The permission allocation of information system users follows the "must know" and "minimum authorization" principles.

3. The creation, change and cancellation of a user shall be approved by the relevant person in charge, and shall be recorded and put on record.

4. The user account of the information system shall be protected by password when logging in. The users and custodians take the responsibility of keeping the password.

5. Terminals are managed according to unified specifications, such as hardware configuration, operating system, initial software, device naming convention, operating system users, network, working directory, etc.

6. All departments shall use mobile devices with caution and be responsible for various security threats and data confidentiality.

7. All computer users of the Group who access the Internet shall strictly abide by the Regulations of the People's Republic of China on the Security Protection of Information Systems, the Measures for the Security Protection and Management of Computer Information Networks in International Networking, etc.

 

Intellectual Property Protection Policy

Sino Biopharmaceutical attaches great importance to intellectual property protection and respects the intellectual property rights (IPR) of any third party. The Group continues to optimize the IPR management system, formulates and publishes the IPR Management Working Manual, protects the legitimate rights and interests of employee inventors to encourage invention and creation.

1. Intellectual property rights include inventions, utility models, appearance, technical secrets, trademark rights, domain names, trade secrets, copyrights, computer software, etc.

2. The Group shall have the right to use, profit and dispose of any invention or creation arising from the performance of his/her duties during his/her service if he/she applies for intellectual property rights.

3. The Group respects the relevant personal rights of employees as creators, developers and assists employees in exercising these rights.

4. The employee shall assist the Group in obtaining and exercising the relevant intellectual property rights after obtaining the results of his/her duties.

5. Intellectual property rights shall be enjoyed by employees if they are not considered to be within the scope of their duties.

 

Bioethical Policy

Sino Biopharmaceutical attaches great importance to the welfare and ethics of laboratory animals. We have formulated Bioethical Principles, standardized the management of animal experiments, and ensure the basic rights and welfare of laboratory animals.

1. All animal experiments are subject to bioethical review, and the declared project shall be reviewed and approved by the Laboratory Animal Ethics Committee before the experiment is conducted.

2. Formulate animal experiment management system and operation guidelines, and carry out supervision, inspection and technical guidance, to promote the standardization of animal experiments.

3. Adhere to the principles of replacement, reduction and refinement of animal use, explore the application of alternative methods of animal testing, and reduce the use of animals.

4. Organize regular training of experimental animal welfare ethics knowledge, strengthen the ethical concept of animal welfare.

Policy of Supporting Employees for Further Study
Sino Biopharm encourages employees to pursue further education and supports all employees in participating in various types of training and learning. By supporting high performance and high potential employees in post rotation, secondment, temporary post exercise and further education, and providing necessary training support, including but not limited to job skill training, leadership training, etc., the employees could improve their comprehensive and professional ability, and maximize the realization of career and life planning. The Group has formulated the Talent Training System, which is focused on excavating and cultivating compound and professional talents. Under the principle of giving priority to internal training and supplemented by external selection, we revitalize human resources, optimize talent structure, and clarify personal career development channels by making full use of the rich talent resources and professional advantages, as a result, to enrich the internal talent pool of the Group and member companies.
1. Post rotation. It is divided into experience expansion rotation and promotion rotation. The starting date of rotation shall be formulated by the enterprises or departments on both sides based on the overall business plan. The proportion of post rotation depends on the staffing of the departments. In principle, the annual number of post rotation in the headquarter of the Group is between 10-20% of the number of people in the department.
2. Secondment. The Group needs to take the designated staff from its member companies for work or project, and vice versa. The selection or arrangement of seconded personnel is determined by the borrowing enterprise in consultation with the lending enterprise, based on the needs of work, projects and personnel allocation.
3. Temporary post exercise. The staff participating in temporary post exercise are sent by the Group to the member companies. The term of post exercise is one year. The staff can be authorized with preliminary examination during the period of temporary post exercise, and the final review authority is held by the person in charge of the enterprise department.
4. Study for further education. We mainly cooperate with universities and research institutes, build post-doctoral workstations, practice bases, and set up special courses to create channels for employees to improve their academic qualifications. It is divided into three forms: exchange learning, internal training and external training. Among them, external training is divided into long-term training focused on academic education and short-term training for attending forums and conferences.
5. If participation in training or study for exams requires taking time off from work, leave can be requested as personal leave. All employees can participate in the training and learning that matches their job responsibilities and is conducive to improving their work ability and professional level. The company signs training agreements with employees to support the learning and training expenses.

Talent Pipeline Construction and Development Policy
Sino Biopharm and its member companies adhere to diversified talent training. The Group attaches importance to the excavation and training of compound and professional talents based on the principle of internal training and external selection as a supplement. The Group sets differentiated training courses for different positions and levels to make perfect talent development plans. As a result, the employees are provided with a career development platform by job rotation, secondment, temporary post exercise, etc. Meanwhile, in order to enrich the reserve talent team and create a complete talent echelon, the Group implements apprentice training plan and industry-university-research joint training plan, which ends in reserving high-quality potential talents by orientation training.

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Competitive Remuneration and Welfare
To protect the interests of the Group and employees, Sino Biopharm has formulated and implemented the Remuneration Management System applicable to the Group and its member companies, which ensuring the correct identification and payment of wages. Furthermore, to build up a competitive remuneration system for employees, the Group participates in the salary survey of well-known research companies in the industry to obtain the most accurate market data, keeps a close eye on the global salary dynamics, the domestic industry economic situation, and the cross-regional market salary level.  In the future, effective long-term incentive measures will be provided for the key talents to reduce the loss of high-performing, high-potential individuals. Meanwhile, we pay attention to the salary market, and regularly formulate a reasonable salary adjustment plan for the overall salary of employees. For employees working overseas, we also provide annuity guarantee for them.
1. Principles: Fair, competitive, incentive, legal, and compliant.
2. Management Body: The Remuneration and Assessment Committee serves as the management body, and the Human Resources Department is responsible for specific matters.
3. Remuneration Composition: Employee remuneration consists of basic salary + overtime pay + bonus + subsidies + allowances.
4. Remuneration Adjustment: It is divided into overall adjustment and individual adjustment. Overall adjustment is implemented once a year according to the overall performance of the Group. Individual adjustment is carried out for the change of employee's position and other reasons.
5. Remuneration Accounting for Special Reasons: Including sick leave, personal leave, late, early leave, absenteeism, etc.
6. Remuneration Accounting and Payment: Including the calculation of payment time, the amount of money that must be deducted from the salary, the calculation of the salary of the staff hired or leaving midway, etc.
7. Supervision System: The remuneration is calculated and issued by the Human Resources Department, audited and issued by Financial Department, complying with the relevant regulations and norms of the Group. The process should be subject to audit supervision. The income, which is from a director, supervisor or consultant in holding or shareholding enterprises recommended by the Group, should be reported regularly to the Remuneration Committee.
 

Non-Salary and Welfare Policies
Sino Biopharm provides supplementary medical insurance and personal accident insurance for employees, and bears all the insurance costs to comprehensively cover various social insurance and multi-level supplementary insurance for employees.
The Group provides all female employees with holidays and benefits in three periods (pregnancy, childbirth and lactation), in accordance with national and local laws and regulations, and retains their jobs according to law. Male employees whose spouses give birth are entitled to paternity leave according to law. Meanwhile, the Group provides employees with holiday greetings, birthday greetings, extreme weather greetings, fuel cards, staff dormitory, shuttle bus, housing subsidies, staff canteen, free physical examination, childcare fees, technical allowances, winter heating expenses and other benefits. During the COVID-19 pandemic, we provide employees with special allowances and lunch subsidies to improve their non-wage benefits.
 

Policy of Performance Evaluation and Feedback
Attaching great importance to employee performance management, Sino Biopharm has formulated and implemented the Performance Management System applicable to the Group and its member companies. Furthermore, the Group uses OKR (Objectives and Key Results), which enhances organization vitality and empower employees to develop, to empower employees to find optimal solutions, improve work efficiency, and activate team creativity.
The performance management mechanism includes goal setting, performance interview, performance evaluation, performance results and application. Among them, performance interviews are conducted throughout the year. With the full interview and feedback between the direct supervisor and the employees, the reasonable use of the incentive mechanism, the development needs of the employees are explored, and the talent development plan to fully stimulate the potential of the employees is formulated, which ends in the realization of the common development of the enterprise and employees. The performance management mechanism clearly takes figures and facts as the evaluation basis, and carries out fair, just and open evaluation, forming a virtuous cycle of performance evaluation system.
1. Principles: Goal-oriented, full participation, objective and fair, full communication.
2. Process: Goal setting, performance interview, performance assessment, and performance results and application.
3. Goal Setting: After the Group strategic planning committee determines the annual overall goals, employees at all levels will determine the annual performance goals according to the Group strategic goals, combined with the overall department goals, individual job responsibilities and annual mandatory work tasks.
4. Interview: It is conducted throughout the year, including but not limited to: performance goal setting interview, personnel change interview, mid-year performance interview, talent development interview, and year-end performance evaluation interview.
5. Evaluation: It is divided into half-yearly performance tracking and annual assessment. The annual assessment includes four aspects: the completion of work tasks, the compliance with the group's values and code of conduct, executive ability, communication and coordination ability, and leadership. The assessment results are divided into five grades: remarkable, excellent, standard, etc.
6. Results and Application: The performance results are mainly applied to employee year-end bonus accounting, annual salary adjustment, promotion, post adjustment and elimination, talent development, etc.
7. Feedback and Review: If any employee has any opinion or objection to the assessment, he/she can communicate with the direct supervisor. If there is still any objection, he/she can make a written statement to the Human Resources Department within five working days after the assessment result.
 

Employee Share Purchase Plan
Sino Biopharm attaches great importance to sharing the achievements of enterprise development with its employees. The Group is currently establishing long-term equity incentive plans, which will be in accordance with the law and the principle of voluntary participation, covered in stages directors, senior management, middle management and the core technology (business), in order to attract and retain talented people, to inspire staff enthusiasm and creativity, realize the continuous growth of the company's performance. Thus, the interests of shareholders, corporate interests and individual interests are effectively combined.

Policy of Employee Diversity and Equality
Sino Biopharm and its member companies are committed to creating a diverse and equal working environment, and promise not to discriminate or treat employees differently based on nationality, ethnicity, place of origin, gender, age, physical characteristics, hobbies, and religious beliefs.
 

Lawful Employment Policy
Sino Biopharm and its member companies strictly abide by the Labor Contract Law of the People's Republic of China and other relevant laws and regulations. We have formulated and implemented the Recruitment Management System, which explicitly prohibits child labor and forced labor, and firmly opposes discrimination or differential treatment of employees based on nationality, ethnicity, place of origin, gender, age, physical characteristics, hobbies, and religious beliefs. Labor contracts with employees are signed on a voluntary and fair basis. An emergency response mechanism must be established for potential employment risks during the recruitment process. This includes, but is not limited to, measures to be taken if child labor is inadvertently hired, such as immediately contacting the child's family and the regulatory authorities in their place of household registration and assist with proper arrangements.
So far, there has been no case of child labor, forced labor or employee discrimination.
 

Employees Rights and Benefits Policy
Sino Biopharm attaches great importance to the protection of employees' rights and benefits, and has formulated the Welfare Management Policy applicable to the Group and its subsidiary enterprises to clarify the welfare standards of all employees and protect their benefits. In addition, we pay close attention to the rights and benefits of female employees and care for their physical and mental health. We create an inclusive and warm workplace environment for female employees by providing special maternity room, guarantees for their children to see a doctor, attend kindergartens and primary schools, etc., in addition to fully paid maternity leave and maternity leave in accordance with regulations.
In addition to the statutory benefits in accordance with relevant laws and regulations, all employees can also enjoy the benefits of company's unique policy. Statutory welfare items include pension insurance, loss of employment insurance, basic medical insurance (including maternity insurance), work-related injury insurance, and housing provident fund, all of which are paid in accordance with national policies. Company welfare items include supplementary medical care, festival bonus, annual health examination, personal accident insurance and other benefits.
1. Supplementary medical benefits: Medical benefits provided to employees in excess of relevant regulations, including employee supplemental medical insurance, and group critical illness insurance.
2. Festival bonus: The company distributes festival bonus for the Mid-Autumn Festival, the three combined holidays (Christmas, New Year, and Spring Festival), and International Women's Day (for female employees only).
3. Annual health examination: Regular health examinations and occupational disease examinations for employees are regularly organized in order to ensure the health of employees.
4. Personal accident insurance: Including personal accident insurance (death) and traffic accident insurance.
5. Additional benefits based on internal activities and other needs may be provided in addition to the above benefits.
 

Policy of Employee Health and Safety Management
Sino Biopharm and its member companies adhere to the people-oriented principle, continuously improve the health and safety management system, comprehensively identify risk sources, regularly conduct health and safety inspections, continuously strengthen employees' health and safety awareness, and resolutely protect the health and safety of employees.
 

Policy of Work-Life Balance
Sino Biopharm advocates a balanced and harmonious work-life relationship, promoting a happy life alongside efficient work. The Group calls for high work efficiency and encourages employees to complete their work within eight hours. In principle, overtime work is not recommended. During the COVID-19 period, all employees are allowed to work remotely from home in order to protect the health of all employees and their families, and minimize the risk of infection as well.
According to the Employee Code, employees in non-production positions are allowed to work flexibly in working day.  The flexible working time is between 8:30 a.m. and 10:00 a.m., and the corresponding off-work time is between 17:00 p.m. and 18:30 p.m.
 

Employee Satisfaction Commitment
Sino Biopharm attaches great importance to the demands of employees and, is committed to continuously providing a satisfactory working environment and promising development platform. The Group annually carries out satisfaction surveys among all employees to timely understand and respond to their opinions and demands, continuously improve their value identity and sense of belonging, and continuously improve their satisfaction. Sino Biopharm attaches great importance to the demands of employees and, is committed to continuously providing a satisfactory working environment and promising development platform. The Group annually carries out satisfaction surveys among all employees to timely understand and respond to their opinions and demands, continuously improve their value identity and sense of belonging, and continuously improve their satisfaction.

Employee Feedback and Complaint Management Policy → Policy Download
Sino Biopharm fully respects and attaches importance to employee opinions. It has formulated and implemented employee feedback and complaint management policies, which defines communication and complaint channels for employees, provides smooth channels for employee complaints and provides employee whistleblowing protection.
1. Communication and Complaint Channels
The company is committed to creating a good working atmosphere between employees, superiors and the company, and recommends employees to lodge complaints about work-related problems in the following ways:

(1) Reports to the supervisor or the HR department
(2) Employee congress, in which all employees have the right to participate independently, forming opinions and providing suggestions on key issues that directly affect them
(3) Helpline within the office automation (OA) system
(4) Anonymously accessible question answering service within the OA system
(5) Reporting issues to the internal audit departments via email at Sbox@sinobiopharm.com
(6) Reporting issues to the Chairman of the Board via email

2. No retaliation
There should be no punishment or retaliation against employees who complain. Witnesses who provide information during an investigation should be protected from reprisals. All forms of threats, intimidation and reprisals are prohibited.
3. Confidentiality
Employees shall keep their complaints confidential and communicate and discuss them only when it helps to resolve the problem. The relevant personnel handling the complaint may disclose relevant information only if necessary for the purpose of investigation or taking disciplinary measures.

 

Quality and Safety Management Policy
Sino Biopharm has set up a full-life circle quality management system under the direct leadership of the heads of member companies. The quality management work runs through the whole process of drug research and development, manufacturing, assistance, sales and use, arouses the enthusiasm of all staff, extensively carries out quality management group activities, and carries out quality improvement in an organized, planned and continuous way through PDCA (Plan-Do-Check-Action) cycle, to continuously meet the requirements of market customers and regulations.
1. Management Systems: For feeding, production, warehousing, inspection and verification, the Group formulates Deviation Management, Business Continuity Management, Corrective and Preventive Measures Management and other management systems. For the distribution and use of drug, management systems such as Adverse Drug Reaction Monitoring and Reporting Management and Pharmacovigilance Management have been formulated to enhance the ability to respond to drug safety emergencies.
2. Business Continuity Risk Control: Analyze and assess risks affecting business continuity, eliminate or reduce risks from different levels through various measures, and regularly check or drill relevant measures to ensure the effectiveness of the emergency system.
3. Deviation Investigation and Correction: For any deviation from approved product standards, regulations, conditions, safety, environment, etc., the Group shall initiate deviation investigation procedure to find out the cause of the problem and take further corrective and preventive measures according to the cause. After completion, the effectiveness of the corrective and preventive measures shall be evaluated.
4. Medication Safety Management Mechanism: A Pharmacovigilance Department is set up to monitor and report adverse drug reactions to prevent medication safety risks.
5. Product Recall: The Group classifies the recall work according to the degree of drug quality hazards. The recall time limit is within 24 hours for class I, 48 hours for class II, and 72 hours for class III. If the drug is found to have potential safety risks in the process of adverse reaction monitoring, the Group will carry out drug recall, investigate the cause, take corrective and preventive measures, and make a return visit and check the recall effect. Recall implementation and treatment of recalled drugs shall be timely submitted to the Drug Regulatory Department for approval, and a recall summary report shall be formed and submitted to the drug regulatory department.
6. Quality Culture Construction: Continue to build the quality and safety culture of the Group, and carry out quality and safety training covering all staff at least once a year.
 

Supplier Quality Management Policy
In order to strengthen supplier management, optimize supplier resources and improve work efficiency, Sino Biopharm has formulated the Supplier Quality Management Process, which regulates the working procedures of supplier development, supplier daily management, supplier performance management and supplier quality audit.
1. Supplier Development: Select suppliers based on the principle of paying equal attention to quality, cost, delivery and service, and do sufficient preliminary research before the development of suppliers.
2. Daily Management of Suppliers: The Group has established a supplier database with unified management and continuous optimization, formulated a complaint handling process, and the Procurement Department and relevant quality department should update the qualification of suppliers regularly. Each Procurement Department shall carry out regular training covering all suppliers at least once a year, the training shall cover the topics of quality management, environmental management, safety management and other topics, and conduct regular or irregular visits to suppliers.
3. Supplier Performance Management: The Procurement Department and the user department shall evaluate the supplier's services, and formulate hierarchical incentive schemes according to the performance assessment results of suppliers.
4. Supplier Classification: Suppliers are divided into four categories according to the impact degree of the materials they provide on the quality of products.
5. Supplier Quality Audit: On-site audit shall be conducted every 3 years for Category 1 suppliers (except packaging material suppliers), on-site audit shall be conducted every 5 years for Category 1 suppliers and domestic and foreign packaging material suppliers, and letter audit shall be conducted every 5 years for Category 2, 3 and 4 suppliers. In case of major quality problems or changes of suppliers, unqualified incoming inspection for two consecutive times, or potential quality problems found in the process of use, an additional audit shall be conducted to ensure the material quality meets the company's product requirements.
6. Supplier Qualification: The Group encourages suppliers to obtain quality management system certification. For major sub-suppliers of the Group, the Procurement Department or a third party shall carry out supplier certification.
 

Governance Structure of Medical Accessibility
Sino Biopharm has established a sound governance structure of medical accessibility. The Board is responsible for formulating the Group's healthcare access strategy and objectives, and the Chairman of the Board serves as the board level representative on medical accessibility management issues. As requested by the Board, the Board-Level ESG Committee is responsible for providing guidance and suggestions on the direction of the Group's medical accessibility work, and the Strategic Decision-making Committee is responsible for overseeing the medical accessibility management.

Expanding Therapeutic Areas
Sino Biopharm and its member companies aim at making good drugs available for more patients to effectively release their pain.  To cover the diseases that plague most patients, we target key diseases such as oncology, cardiovascular and cerebrovascular diseases, and continuously increase investment in R&D to constantly launch new products with proven efficacy. In addition to oncology, cardiovascular and cerebrovascular diseases, our products also cover other areas, such as orthopedic disease, liver disease, respiratory system disease, analgesia and parenteral nutrition.

Reducing Patients' Burden
Sino Biopharm and its member companies adhere to the principle of fair pricing to provide patients with high quality drugs at reasonable prices. While ensuring drug quality, we strictly control the cost to enhance the competitive edge of drugs in centralized procurement. At the same time, we actively participate in medical insurance negotiation to increase our drug coverage in medical institutions and benefit people with more reasonable prices.

Increasing Distribution Channels
Sino Biopharm has a nationwide academic marketing network covering most hospitals of secondary level or above in China. In addition to achieving a high domestic market share, the Group actively explores overseas markets to benefit patients worldwide with inexpensive and high-quality products.

R&D of Rare Disease Drugs
Sino Biopharm and its member companies follow the guidance of relevant policies such as the Healthy China 2030 Planning Outline and the Guidelines for the Diagnosis and Treatment of Rare Diseases, and makes unremitting effort in rare disease researches and production of rare disease drugs to provide more options to rare disease patients, and guarantee the equal health rights and benefits of patients with rare diseases.

Risk of Antibiotic Resistance
Sino Biopharm believes that antibiotic resistance has become one of the most pressing public health problems worldwide, remains highly concerned about this issue, and promises to take actions to respond to it. In response to basic research and drug development initiatives for drug-resistant bacteria, the Group continues to increase investment in new drugs and diagnostic technologies, and continues to monitor antibiotic resistance. Combined with industrial advantages, the Group widely spreads the scientific concept of drug use.

TRIPS Agreement and the Doha Declaration on Public Health
Sino Biopharm explicitly supports the intellectual property model agreed in Doha Declaration on the TRIPS Agreement and Public Health, and recognizes the importance of this model in helping developing countries in need to access medicines under special circumstances. We also see that Doha Declaration on the TRIPS Agreement and Public Health also allows for the import of medicines from countries with strong manufacturing capacity, using compulsory licences, to meet the needs of countries with insufficient manufacturing capacity.

Sino Biopharmaceutical has always adhered to the strategy of responsible development, actively responded to the national "30· 60" carbon peaking and carbon neutrality target, and integrated "green and low carbon" into our enterprise gene. The Group pays high attention to environmental protection and continuously improves environmental management mechanism. The Board has set up the Environment, Social and Governance (ESG) Committee, which is responsible for the Group's environmental management strategy and performance. We take environmental performance as an important indicator to evaluate management and operational performance, and include environmental performance in the compensation assessment of environmental-related executives of the Group and its member companies. We have set the target of reducing hazardous waste emissions per million yuan of revenue by 10% by 2025, and reducing greenhouse gas emissions per million yuan of revenue by 20% by 2025, and commit to all stakeholders and the communities where we operate:

1. Strictly abide by relevant national laws and regulations, establish and improve the internal environmental management system. All member companies shall comply with the relevant requirements of ISO14001 Environmental Management System Certification and ISO5001 Energy Management System Certification, and carry out environmental management audit at least once a year for all operating places.

2. Vigorously advocate energy conservation and emission reduction, energy structure improvement and new energy utilization, continuously improve energy use efficiency and reduce greenhouse gas emissions, and gradually promote the integration of low-carbon transformation and enterprise development strategy.

3. Improve water resource management and actively addressing water resource risks. The group has formulated and strictly implemented a water resource management system, continuously enhancing internal water resource risk assessment and control, and has launched water resource management improvement projects across the entire group to reduce and enhance water use efficiency and risk response capabilities.

4. Continue to improve resource management mechanisms such as packaging materials, and enhance the efficiency of resource use.

5. Continue to strengthen the control of pollutant discharge in the process of operation, properly dispose of or treat all types of harmless and hazardous waste generated in the process of production and operation. Reduce the emission of various harmless and hazardous wastes by implementing recycling, harmless treatment/alternatives, etc., and minimize the negative environmental impact of operations, products and services. Integrate environmental management into overall business strategy, including operations, products and services, distribution and logistics, due diligence, mergers and acquisitions.

6. Comprehensively identify the Group's climate change risk, develop climate change risk management system and risk response measures, and actively participate in global climate actions.

7. Practice biodiversity conservation and conduct biodiversity risk assessments at least once a year. The Group does not involve deforestation in our own operations and is committed to maintaining zero deforestation in future operations. The Group also works with our supply chain and other stakeholders to avoid and reduce the impact of operations on biodiversity and to resist improper business practices that cause damage to forests, water bodies, land and other ecological environments; Where operations are involved in areas close to critical biodiversity, mitigation measures are required to avoid, minimize, restore and offset damage to ecosystems.

8. Carry out environmental protection training, enhance employees' awareness of environmental protection, and create an environmental protection and low-carbon corporate culture.

9. Raise the awareness of internal and external stakeholders on the Group's environmental management policy and ecological impact through concept dissemination activities, special environmental training and daily communication, and organize supplier environmental management self-assessment.

 

→ More ESG policies: ESG Policies Download

Sino Biopharm adheres to the mission of "improving the quality of life and protecting the dignity of human life" and the values of " Integrity, Foresight, Innovation, Commitment, Efficiency, Collaboration". We are committed to practicing the natural mission of pharmaceutical people to the society and the industry, and seeking well-being for a broader range of patients through continuous high-level innovation.

Compliance with Laws and Regulations

Sino Biopharm strictly abides by local laws and regulations, adheres to compliance operation, and is committed to creating a sustainable development model of win-win for enterprises, society and the environment.

Intellectual Property Protection

Driven by innovation and research, Sino Biopharm attaches great importance to intellectual property protection. At the same time, we respect the intellectual property rights (IPR) of any third party in order to promote the healthy development of the industry's R&D environment. We have formulated IPR related management systems and standardized related management work.

Quality and Safety Management

Sino Biopharm regards product quality and safety as the lifeline of the enterprise. We build a quality assurance system covering the whole life cycle of drug research and development, material procurement, production and packaging, storage and transportation, product sales and product after-sales. We regularly carry out internal audit, cooperate with external audit, set high standards for ourselves in the industry, and constantly improve the quality and safety management level and performance. We have formulated quality and safety-related management systems to standardize relevant management work.

Medical Accessibility

Sino Biopharm adheres to the business philosophy of "enabling more patients to obtain drugs and more diseases to be treated", and ensures that patients' needs are the core of drug research and development and industrialization to provide patients with more and more accessible drugs. We believe that continuing to promote access to medicines can bring more stable and sustainable value to the enterprise.

Bioethical Standard

Sino Biopharm adheres to bioethical standards across all research projects. We are committed to alleviating suffering and adhere to the ethics and code of conduct laid down by the regulatory authorities in our research and development.

 

Data Protection and Privacy Security

Sino Biopharm attaches great importance to the information security and privacy protection of customers and partners, and strictly abides by Chinese laws and regulations on information security. We have formulated data and privacy security management measures and employee codes of conduct, requiring all employees to abide by the principle of information confidentiality, and adopt information management mode to control the risk of information disclosure.

Business Ethics and Anti-corruption

Sino Biopharm promises to follow business ethics standards, strictly abide by the relevant national laws and regulations, and have zero tolerance for any form of corruption. We have formulated anti-commercial bribery and whistle-blower protection systems to standardize internal supervision and handling procedures and strengthen business ethics management.

Environmental Protection

Sino Biopharm adheres to the concept of green development and is committed to building an environment-friendly enterprise. We adhere to compliance with emissions and reduce the environmental impact of our operations. We actively promote low-carbon transformation, and work with industrial chain partners to continuously explore and expand the application of renewable energy.
 

Health and Safety

Sino Biopharm is committed to providing employees with a healthy and safe working environment and regards employee health and safety as the premise of production and operation. We firmly abide by the safety production laws and regulations, with strict safety standards to carry out the design, construction and operation management of the production base.
 

Employee Rights and Interests Protection

Sino Biopharm firmly protects the legitimate rights and interests of its employees, forbids the use of child labor and all forms of harassment or forced labor. We promise not to discriminate against or treat employees differently based on their nationality, ethnicity, place of origin, gender, age, physical characteristics, hobbies, or religious beliefs. We respect the rights and interests of female employees, formulate policies on maternity leave, breast-feeding leave and parental leave, and create and build a safe, healthy and belonging working environment for female employees. We have formulated employee handbook and other systems to standardize related management. Our employees are entitled to nursing leave in accordance with the law. At the same time, we provide flexible working hours for employees. Employees can decide their working hours within a certain range on the basis of ensuring the working hours stipulated by the labor law. We believe this helps employees better balance their work and personal lives.
 

Talent Attraction and Development

Sino Biopharm adheres to the people-oriented principle, regards employees as the cornerstone of the company's longevity, and looks forward to sharing development achievements with employees and creating a better future together. We are committed to providing employees with competitive compensation and benefits within the industry and region. We continuously build a high-quality talent team and constantly improve employee career training and development paths. We value employees' opinions and constantly improve employee satisfaction.
 

Diversity and Inclusion

Sino Biopharm is committed to building a diversified and inclusive corporate culture. We believe that a diverse talent team can create more constructive ideas, and an equal and inclusive working environment can inspire more positive work enthusiasm.
 

Materiality Assessment
We communicate regularly or irregularly with stakeholders, including government and industry regulators, investors, customers, suppliers, employees, communities, etc., through a variety of channels to understand their expectations and opinions on the Group's ESG performance. We fully consider the opinions of stakeholders in our daily operational decisions and take timely action to respond to their demands. Based on stakeholder communication and external expert opinions, we review and reassess the ESG materiality issue matrix at least once a year; and conduct extensive special surveys of stakeholders once every three years. The Board of Directors reviews and supervises the results of the ESG materiality assessment at least once a year.
 

Donation Activities
We do not make any form of direct or indirect political donations. Our charitable donations are for the purpose of supporting public benefit, disaster relief, rural revitalisation and inclusive healthcare, and involve no corruption means.

 

Sino Biopharm sets high standards for its ESG management, adhere to them, and integrate them throughout the company's operations. We prohibit all forms of violation of the management system, and establish a corresponding punishment mechanism. We firmly believe that our values can guide us to always do the right thing and achieve long-term value in a complex and changing environment.