SINO BIOPHARM announced that the Group's MSCI ESG rating has been elevated from A to AA, recognizing it as an outstanding leader in ESG practices among global large pharmaceutical companies. This upgrade is attributed to the Group's systematic approach, continuous dedication, and exceptional performance in the environmental, social, and governance domains.

In the area of ESG governance, the Group has established and continually refined its ESG governance framework. With the Board of Directors serving as the highest decision-making body, the Group adopts "CARE" as its core ESG strategy. This strategy focuses on systematic ESG initiatives centered around "Cure, Accessible, Relationship, and Environmental" to deeply integrate sustainable development principles into corporate decision-making and business operations.

Regarding environmental stewardship, the Group actively supports the national "Dual Carbon" goals and consistently embeds green development concepts into all operational processes. As a pioneer in China's pharmaceutical sector in announcing carbon neutrality targets, the Group has advanced specialized efforts in energy conservation and emission reduction. Over the past five consecutive years, the intensity of multiple major pollutant emissions has decreased by more than 10% annually. Furthermore, the Group has systematically implemented low-carbon transition practices, including green energy expansion and low-carbon culture development. By 2025, it achieved a simultaneous reduction in both carbon emission intensity and total volume for the first time, marking significant progress toward its carbon peak milestone. To date, the Group's commitment to green development has been widely recognized, with three of its member companies receiving the national "Green Factory" designation.

In the social responsibility sphere, the Group adheres to its operational philosophy of "Healthy Technology, Warming More Lives." Guided by an international innovation strategy, it actively promotes business upgrades and addresses unmet clinical needs, thereby providing robust protection for patients' health rights. In recent years, the Group has consistently increased its R&D investment, with cumulative R&D expenses exceeding RMB 13 billion over the past three years. It has also established an international R&D platform and conducted a series of targeted investments and acquisitions, including the full acquisition of innovative pharmaceutical companies such as Linxen Pharmaceuticals Technology (Shanghai) Co., Ltd. and Hangzhou Hejiya Biopharmaceutical Co., Ltd. These moves have expanded its innovative pipeline and upgraded its technology platforms. Additionally, in early 2026, the Group entered into an exclusive licensing agreement with Sanofi S.A. for rovaricitinib, further facilitating global patient access to high-quality pharmaceutical outcomes. Over the past three years, the Group's key products have served over 160 million patients. The Group places high importance on talent development, implementing systematic initiatives like the Employee Assistance Program and specialized talent training to foster mutual growth for both the company and its employees. While continuously enhancing its own sustainable development capabilities, the Group actively engages in charitable endeavors, with total donations exceeding RMB 150 million over the past three years, focusing on disaster relief, poverty alleviation, rural revitalization, and inclusive healthcare, thereby demonstrating its corporate responsibility.

This rating upgrade to AA reflects MSCI's high recognition of the Group's ESG management and practical achievements, serving as a significant milestone in its commitment to sustainable development and corporate social responsibility. It also sets a benchmark for high-quality and sustainable development among innovative pharmaceutical enterprises in China. As a leading innovator in China's pharmaceutical industry, the Group firmly believes that excellent ESG performance is fundamental to creating long-term value and achieving high-quality growth. Looking ahead, the Group will continue to deepen its practices across environmental, social, and governance dimensions, while leveraging its industry leadership to promote collaborative development across the supply chain. It aims to drive the green and high-quality advancement of China's pharmaceutical and healthcare industry, creating sustainable shared value for all stakeholders and steadily progressing toward becoming a global ESG benchmark.