云南白药(000538):2025年可持续发展报告（英文版）
原标题:云南白药:2025年可持续发展报告（英文版） This report marks the second sustainability report issued by Yunnan Baiyao Group Co., Ltd. We have previously published welfare in accordance with the principles of standardization, transparency, objectivity, and corporate social responsibility (CSR)/ESG reports for 18 consecutive years. It gives stakeholders information on Yunnan comprehensiveness. Baiyao's social responsibility practices and performance in the areas of management, environment, society, and public
deep integration of primary, secondary, and tertiary industries. We will strengthen and elevate our competitive position in the sector, catalyze the clustered growth of Yunnan's biomedical industry, and contribute to the modernization of Yunnan's industrial system. We export our green development expertise to the industry, sharing mature practices from our intelligent factory in carbon governance, green production, and full-chain traceability. Through the "Digital Intelligence of Yunnan TCM" platform, Yunnan Baiyao will lead and expand the construction of standardized cultivation demonstration When winds surge and clouds gather, it is time to row hard and strive to be first. The year 2025 marks a pivotal bases across Yunnan Province, covering more regions and varieties. By establishing and implementing standards, we will milestone for Yunnan Baiyao as we iterate our "3+2" strategy for the 15th Five-Year Plan period and advance promote our operational models and digital platform management practices, engaging more farmers in standardized toward becoming a hundred-billion-level modern pharmaceutical industry group. Over the past year, Yunnan cultivation and collectively advancing the sustainable development of the TCM materials industry. While pursuing high- Baiyao has maintained firm confidence, confronted challenges head-on, and focused on strategic planning and quality development, Yunnan Baiyao has consistently fostered the mutual growth of employees and the enterprise, development while strengthening Party building to ensure implementation. We have continued to refine and establishing a skill-oriented compensation system that incentivizes technological innovation and enhances the sense of optimize our principal businesses, leveraging our proven management capabilities to navigate the uncertainties fulfillment among professional, technical, and skilled personnel. During the reporting period, employee compensation of the external market. We have consistently upheld our founding mission of "to guard life and health." Aligned achieved double-digit growth overall. with Yunnan Province's "3815" strategic development goals, we have advanced governance enhancement through Party building, driven industrial transformation through innovation, practiced sustainable development through The journey ahead is long, and only through perseverance can we succeed. As we stand at the starting point of the 15th green initiatives, and demonstrated corporate commitment through social responsibility. In this spirit of honoring Five-Year Plan in 2026, Yunnan Baiyao will deeply embrace the concept of sustainable development and remain guided by tradition while embracing change, we are accelerating the journey of the century-old Baiyao to elevate from our strategy, breaking new ground in R&D innovation, elevating green development, and intensifying industrial synergy. "outstanding" to "excellence." We will advance hand in hand with all stakeholders, staying true to our original aspiration of inheriting and innovating TCM, courageously shouldering the mission of industrial upgrading in this new era. Together, we will strive to build a modern pharmaceutical industry group that leads domestically and ranks among the world's best, contributing even greater Baiyao strength to Healthy China and the high-quality development of Yunnan! Materiality Analysis We have continuously refined our sustainable development issue management process, systematically executing our In terms of sustainable development, Yunnan Baiyao consistently values stakeholder voices, listening to and addressing "identify-research-analyze" methodology. Adhering strictly to the dual materiality principle, we comprehensively identify their concerns through diverse communication channels and systems. The Company maintains close engagement with internal and external concerns and widely gather stakeholder input through scientifically designed questionnaires and internal and external stakeholders via online interactive platforms, official media, email, shareholders' meetings, investor other channels. Through comprehensive analysis and evaluation, we pinpoint material issues that significantly impact hotlines, and other avenues, and continuously promotes two-way information flow and effective conveyance of feedback, both the Company and our stakeholders. This approach guides our sustainable development practices and information thus enabling the Company to respond promptly to stakeholder needs and remain committed to building an open, disclosure, enabling us to more effectively respond to stakeholder expectations. transparent, and mutually beneficial sustainable development ecosystem. Mechanism for Communication with Stakeholders Process to Evaluate the Dual Materiality Communications with Stakeholders Materiality Analysis We have continuously refined our sustainable development issue management process, systematically executing our In terms of sustainable development, Yunnan Baiyao consistently values stakeholder voices, listening to and addressing "identify-research-analyze" methodology. Adhering strictly to the dual materiality principle, we comprehensively identify their concerns through diverse communication channels and systems. The Company maintains close engagement with internal and external concerns and widely gather stakeholder input through scientifically designed questionnaires and internal and external stakeholders via online interactive platforms, official media, email, shareholders' meetings, investor other channels. Through comprehensive analysis and evaluation, we pinpoint material issues that significantly impact hotlines, and other avenues, and continuously promotes two-way information flow and effective conveyance of feedback, both the Company and our stakeholders. This approach guides our sustainable development practices and information thus enabling the Company to respond promptly to stakeholder needs and remain committed to building an open, disclosure, enabling us to more effectively respond to stakeholder expectations. transparent, and mutually beneficial sustainable development ecosystem. Mechanism for Communication with Stakeholders Process to Evaluate the Dual Materiality Financial Materiality ? Welfare and benefits ? Training, lectures, salons and other Employees ? Career development communication activities Conclusion on Materiality Analysis 2025 Sustainability Dual Materiality Matrix of Yunnan BaiyaoHigh materiality Low materiality Financial materiality to the Company High materiality Issues of financial Water resource utilization Environmental Social Governance materiality but without Sustainability Training Sustainability Management To constantly improve its sustainability governance, Yunnan Baiyao actively responded to external trends, and carried out special training systematically in 2025. Focusing on core issues such as sustainability policy trends, climate change Yunnan Baiyao has built a systematical sustainability management structure. By virtue of its defined three-tier governance response, and governance system development, the Company organized four specialized training sessions throughout structure, the Company integrates its sustainability concept into its corporate strategy and daily operation. We integrate the year. Covering key personnel at all levels, these sessions effectively deepened understanding of sustainability our sustainability requirements into our ability system construction, and via a perfect risk management and goal and enhanced practical capabilities, providing a solid foundation for the systematic advancement and long-term decomposition mechanism, we ensure to steadily advance and effectively implement our long-term strategies. implementation of the Company's sustainability efforts. Governance Strategies Sustainability Management System Yunnan Baiyao has deeply embedded sustainability into its new "15th Five-Year Plan" strategic framework. Grounded in stakeholder feedback and industry trend insights, the Company leverages dual materiality assessments to identify Yunnan Baiyao continues to optimize its sustainability management and control system with a three-tier structure substantive issues, ensuring scientifically informed strategic decision-making. We embrace a "dual-wheel drive" model of "decision - management -implementation," and systematically organizes to advance the implementation of its that balances intensive growth with extensive expansion, integrating environmental, social, and governance requirements sustainability strategies. This system clarifies the duties and responsibilities of all tiers and the mechanisms for their co- into business operations and capability building through our closed-loop strategic management cycle of "planning, work, which ensures the orderly advancement and closed-loop of related work. decoding, monitoring, review, and performance." This approach ensures that as we pursue steady growth, we fulfill our mission of safeguarding life and health while continuously fortifying the resilience essential for long-term development. Sustainability Management Structure unsustainable utilization risks; stricter ecological environment the environmental protection Risk Category Definition of Sustainability Risks Related Impacts Plan, Strategy and Methodof relevant emerging risks and developed targeted response strategies in 2025 to enhance our forward-looking risk management capabilities and establish a foundation for identifying and controlling potential challenges. ? Insufficiently optimized energy ? Low energy utilization efficiency ? We will optimize our energy utilization structure, with much may increase the production structure and increase clean Assessment of Emerging Risks room for improvement of clean costs, thus, impacting the energy utilization ratio step by Risk Category Definition of Sustainability Risks Related Impacts Plan, Strategy and Methodenergy proportion; Company operation efficiency; step; ? Refined energy management level ? The Company may face ? We will enhance refined energy ? Disconnection of digital ? Technology investment returns may ? We need strengthen synergy effect Insufficient is not high, which may lead to low compliance pressure and management and increase energy technology application fall short of expectations, which between top-level design and business, Energy energy utilization efficiency; constraints brought by the stricter efficiency level and utilization with the business may increase operation costs; to ensure accurate and effective Utilization ? Inadequate implementation of energy conservation and emission efficiency;demands leads to low ? The Company may face data technology application;Efficiency energy saving and consumption reduction policies; ? We will drive the transformation of input-output efficiency; compliance, algorithmic fairness ? We need to perfect the data security and reduction measures may lead to ? It may improve the carbon energy conservation technologies Digitalization ? There may be data and other legal and reputation risks; AI governance system, and establish its waste of energy resources. emission level, thus, impacting and improve our management, Risks leakage, algorithm bias ? It may lead to patients' incorrect use standards and ethics guidelines; the Company's green to reduce output energy and other security and medication use, which may affect ? We need to strengthen internal and transformation and sustainability consumption per unit. ethics risks; the medication use effect and brand external communications, clarify the performance. ? AI-assisted diagnosis may reputation. assisted position and limitation of AI ? Production line automation ? The occurrence of employee work ? We will actively introduce cause patients' incorrect tools. features insufficient coverage, injury and occupational disease interlocking devices, alarm medication use. with some processes featuring may increase, which may directly devices, detection devices, and ? Remote healthcare, ? Traditional business model and ? We need to actively extend our high-risk and high labor intensity lead to increase in the medical other safety facilities, to effectively personalized treatment, organization capabilities may presence into emerging business fields, still rely on labor. This may cause and compensation costs and loss reduce the accident risk hazards at among other new cause the Company to fail to adapt to accelerate innovative technology Employee's musculoskeletal disease and of work hours; the production sites;Occupational models, constitutes an to the market change, thus, losing R&D and application;occupational strain in a long term; ? It may have an impact on the ? We will offer three more Transformation Health Risk ? Employee health promotion employee's morale, retention rate, examination items in our impact on current service the development opportunities; ? We need to systematically upgrade Risks and stress management employer brand attractiveness, employee annual free physical processes, resource ? The skills and cognitions of our organization capabilities and carry system has not been perfect, thus, increasing the recruiting and examination package, to allow the allocation and personnel healthcare professionals lag, out personnel training, to improve our with a mechanism to identify training costs. employees to pay more attention capabilities. which may affect the landing capabilities to adapt to and control and support work-related to and better maintain their own efficiency of the new technologies. new models. psychological risk to be improved. health. ? Climate change may ? The increase in ingredients ? We need to drive a diversified ? If not 100% upstream suppliers ? Defects of ingredients or impact the environment constitutes a challenge of the presence of supply bases and ? We will constantly enhance our of TCM materials, excipients, etc. production processes may lead quality risk management and of the medicinal material procurement stability; construct a resilient supply chain; are subject to quality audit and to unqualified product batches, dynamically monitor any changes, producing areas, which ? Supply chain disruption make affect ? We need to develop emergency plan process control, there may lead to thus, triggering customer biases and other potential risk may lead to unstable the product delivery; for response to extreme weather and raw material quality fluctuation complaints, returns and failure of events in all operation links;supply and lower quality ? Product quality consistency risk optimize our logistics networks;Quality Risk risk; sampling inspection by market ? We will constantly drive the of key medicinal material increases. It also may affect the ESG ? We need to upgrade our warehouse of the Entire ? There have been blind spots supervisors; construction of quality culture, Climate Change ingredients; performance and the investors' facilities and environmental Industry Chain in term of monitoring the ? Any quality and safety events systematically carry out quality ? Frequent extreme climates confidence. management and control Risk quality assurance capabilities may trigger product recall, awareness training, and help disrupt logistics and capabilities; in the down streams such as compensation, severe damage of employees deeply understand the transportation; ? We need to coordinate with the logistics distribution (specially brand reputation, and decline in major significance of quality to the ? Temperature and humidity suppliers to explore climate- temperature-controlling market shares. Company development. products). fluctuations over time adaptable cultivation technologies.increase the difficulty ? There have been biases between ? Return on R&D investments may ? We will regularly carry out and cost of warehouse the cutting-edge technology be lower than expectations, dynamic assessment and priority management. research direction and the actual which may impact the Company's ranking of the R&D projects based ? The Company's core ? It may cause direct economy loss, ? We need to build an intellectual market demands, clinical value profitability and the confidence of on the market potential, clinical patents, technology and weaken the product market property right risk control system or production feasibility, which the shareholders in the Company; demands and transformation secrets and other competitiveness; covering the entire life cycle;leaded to failure of effective ? The Company may face long- feasibility. transformation of research term risks of aging of the current ? We will constantly strengthen the assets are at risk of ? It damages innovation image and ? We need to regularly carry out risk Technology R&D resource investments into product life cycles and growth integration of the basic research infringement; brand reputation; investigation and audit; Transformation competitive products; fatigues due to lagging behind of with the innovation capabilities, Intellectual ? The Company may ? It may trigger legal actions and ? We need to strengthen all staff Risk ? Internal R&D pipeline innovation in key technologies. actively introduce cutting-edge Property Right unintentionally infringe market access limitation. training and contract management management mechanisms are technologies, construct high-level Risks on the intellectual (i.e., the intellectual property rights not agile enough, with insufficient R&D platform systems, and fully property rights of others clauses are set out specifically in the decision to promptly terminate improve R&D efficiency and core in its R&D activities, procurement contracts.); or change the purposes of the competitiveness. Impact and Risk Management Indicators and Objectives Yunnan Baiyao systematically advances the identification and management of sustainability-related risks through a three- Yunnan Baiyao has deeply integrated its sustainability into its long-term development blueprint, and systematically tier linkage risk management architecture covering all business units. The Company has fully embedded sustainability risk constructed a multi-dimensional objective system covering environment, society and governance. This objective system issues into its existing risk management processes, establishing normalized mechanisms for identification, assessment, has fully integrated into the Company's operation management and business development links. We keep systematically and response. Furthermore, sustainability requirements have been integrated into investment decision-making and advance our practice and innovation in related key fields. Meanwhile, via technology-driven, we advance our R&D business analysis to mitigate major risks and enhance overall risk management and decision-making quality. breakthrough and product upgrade, be committed to create long-term values for stakeholders, and solidify a foundation for the Company's sustainability. Risk Management Sustainability Indicators and Objectives Impact and Risk Management Indicators and Objectives Yunnan Baiyao systematically advances the identification and management of sustainability-related risks through a three- Yunnan Baiyao has deeply integrated its sustainability into its long-term development blueprint, and systematically tier linkage risk management architecture covering all business units. The Company has fully embedded sustainability risk constructed a multi-dimensional objective system covering environment, society and governance. This objective system issues into its existing risk management processes, establishing normalized mechanisms for identification, assessment, has fully integrated into the Company's operation management and business development links. We keep systematically and response. Furthermore, sustainability requirements have been integrated into investment decision-making and advance our practice and innovation in related key fields. Meanwhile, via technology-driven, we advance our R&D business analysis to mitigate major risks and enhance overall risk management and decision-making quality. breakthrough and product upgrade, be committed to create long-term values for stakeholders, and solidify a foundation for the Company's sustainability. Risk Management Sustainability Indicators and Objectives To lower our energy consumption Energy intensity per RMB 10,000 output In 2025, our energy consumption intensity was 0.016 tons of standard utilization value in 2030 by 7% compared to coal per RMB 10,000 output value. our 2025 baseline. Topic 1 The World's First Benchmark for Intelligent Manufacturing of TCM Health Products As manufacturing undergoes rapid convergence of digital, The Company has deployed over 40 Fourth Industrial Revolution (4IR) solutions at its Intelligent Factory, including intelligent, and green technologies, Yunnan Baiyao proactively technologies such as satellite remote sensing, Industrial Internet of Things (IIoT), and Large Language Models (LLMs), charts a new course with forward-looking strategic vision. finally leading to a sharp decline in raw material return rates, inventory days, and stockout rates. The factory, by virtue of the Yunnan Baiyao Intelligent Factory Through the establishment of the Yunnan Baiyao Intelligent an innovation model combining "intelligent manufacturing + green park + industry chain collaboration," redefined the was successfully named to the World Factory, the Company has implemented end-to-end digital modern TCM production standards, setting a new benchmark for national brands in global competition. Lighthouse Factory: Topic 1 The World's First Benchmark for Intelligent Manufacturing of TCM Health Products As manufacturing undergoes rapid convergence of digital, The Company has deployed over 40 Fourth Industrial Revolution (4IR) solutions at its Intelligent Factory, including intelligent, and green technologies, Yunnan Baiyao proactively technologies such as satellite remote sensing, Industrial Internet of Things (IIoT), and Large Language Models (LLMs), charts a new course with forward-looking strategic vision. finally leading to a sharp decline in raw material return rates, inventory days, and stockout rates. The factory, by virtue of the Yunnan Baiyao Intelligent Factory Through the establishment of the Yunnan Baiyao Intelligent an innovation model combining "intelligent manufacturing + green park + industry chain collaboration," redefined the was successfully named to the World Factory, the Company has implemented end-to-end digital modern TCM production standards, setting a new benchmark for national brands in global competition. Digital-intelligence Empowered Core Initiatives
Green Intelligence Manufacturing: A Sustainable 33,600 tons of water, reduced 33,600 tons Reverse Osmosis Concentrated Water Development Path Centered on Low-Carbon and of wastewater discharges, and recorded a Renovation for Reuse new income of RMB 630,000, with a synergic Environmental Protection carbon reduction of 360 tons. In the construction and operation of its Intelligent Factory, Yunnan Baiyao has integrated green and low-carbon 01 02 03 04 05 management has been transformed from experience-based control to refined, systematic management. Leveraging a unified digital platform, the Company has implemented online monitoring and dynamic analysis of carbon emissions Raw material Manufacturing Transportation Consumer use Product end-across the value chain, and embedded energy conservation and consumption reduction requirements into the full product acquisition & low- & production of-life disposal lifecycle—from production to disposal. On the premise of ensuring production stability and product quality, resource carbon design consumption intensity and environmental impact have been continuously reduced. Meanwhile, green management requirements have been progressively extended to upstream and downstream supply chain partners, driving the Low-carbon process Fine-grained Rail-truck Recyclable/ Product carbon formation of a green operating model throughout the entire value chain.optimization for intelligent energy multimodal biodegradable label visualization materials management transport material exploration |
