Walvax Biotechnology 2025 Sustainability Report Message from the Chairman
Message from the Chairman
As a strategic frontier in global technological competition, Green transformation: Making Production Cleaner
biomanufacturing is reshaping production models. In 2025,
Walvax Biotechnology, fueled by innovation as its strategic Walvax Biotechnology embeds green and low-carbon principles throughout the entire production and operations value chain. The
engine, continues to advance a market-oriented and dynamic Company has extended its EHS management system to cover all business operations, closely monitored the risks and opportunities
business system. The Company accelerates the R&D and presented by climate change, and systematically advanced action plans for resource conservation and environmental protection. By
industrialization of blockbuster vaccines while proactively incorporating energy control indicators and targets into annual performance evaluations, the company is cultivating a green production
expanding into emerging fields such as the microbiome and system that is clean, low-carbon, and highly climate-resilient, achieving a win-win scenario for both environmental and economic benefits.
biomanufacturing, striving to build an integrated “Health and In 2025, Walvax Biotechnology completed its first photobiosynthesis production base, which is expected to sequester approximately 1,000
Wellness + Biomanufacturing” industrial platform. Against tonnes of CO₂ annually. This marked the successful establishment of a new business paradigm featuring “solar-powered + natural extracts
the backdrop of high-quality development and strategic + carbon-negative manufacturing,” enabling coordinated progress in carbon reduction, green expansion and economic growth. With
upgrades, the Company simultaneously established the continuous upgrades in equipment and technology and highly efficient coordination between production and sales, the Company’s clean
“Wo·Health” sustainability strategy. Anchored in innovation- and low-carbon production system is advancing solidly. The energy consumption, water consumption, and pollutant emission intensities
driven growth, green development, responsibility practices, and per unit of output have continued to decline, propelling high-quality enterprise development with green momentum.
a solid governance foundation, the Company is embedding
Synergistic Mutuality: Fostering Long-Term Well-Being
sustainability as the bedrock for its long-term and steady
growth.
Walvax Biotechnology consistently integrates social responsibility into its corporate DNA, viewing every project as an opportunity for
shared growth with local communities, and collaborating with value chain partners to consistently enhance core competitiveness and
Innovation-Driven: Making Health More Accessible
growth momentum. The Company places significant emphasis on supplier performance in compliance and business ethics, environmental
Dedicated to the mission of "helping everyone live a healthy protection, labor rights, and occupational health and safety. By building a high-quality supply chain management system, the Company
life," Walvax Biotechnology consistently maintains proper R&D safeguards the long-term development of both supply and demand sides, continually explores public welfare models that align with the
investments in new products and projects, alongside leading times and social progress, and proactively advances health education initiatives and vaccine donation programs, such as the “Peace of
scientific capabilities. The Company consistently expands Mind Action · Maternal and Infant Care Program,” to better serve global public health. The Company comprehensively implements the
innovation pipeline and reinforces a diversified immunological “Ever-Thriving Walvax” talent cultivation system, building a diverse, inclusive and highly innovative team of high-caliber professionals.
barrier that extends from infectious disease prevention to United by professional expertise and a shared sense of responsibility, the Company is forging ahead toward a vibrant and promising
comprehensive population health management. In 2025, the future.
Company achieved further breakthroughs across multiple
Strengthened Governance: Ensuring Robust Development
innovative flagship products and technologies, while steadily
enhancing its quality management capabilities. The Company
Walvax Biotechnology proactively aligns with national strategies and continuously refines its modern corporate governance system.
was honored on several prestigious lists, including the List of
By upholding integrity while pursuing innovation, the Company has solidified the foundation for its strategic transformation and long-
Signature Biomanufacturing Products, the 2025 Top 20 Private
term growth. In 2025, Walvax Biotechnology focused on deepening the integration and mutual reinforcement of Party building initiatives
Enterprises in Innovation Capability in Yunnan Province, and
with business operations, stimulating internal organizational vitality, and consistently enhancing the Company’s resilience and capability
the 2025 Top 100 High-Tech Enterprises in Yunnan Province.
to navigate shifts in internal and external environments. Guided by the principle of “strengthening internal controls, preventing risks,
The Company also strengthened a diversified business
and promoting compliance,” the Company innovatively implemented the “1+N Integrated Audit Model” and perfected an operational
Chairman of Walvax Biotechnology Co., Ltd. footprint and international expansion. As of the end of 2025,
mechanism centered on risk management and compliance oversight to safeguard high-quality development. Furthermore, the Company
the Company's products had been exported to 26 countries
Li Yunchun enforces high standards in information and data security, clean practice, and business ethics management. Supported by strict compliance
and regions, with cumulative exports to developing nations
standards, professional ethics, and a robust management system, Walvax Biotechnology ensures the steady and sound operation.
exceeding 64 million doses of finished vaccines and 3,800 liters
of bulk vaccine. Furthermore, the Company officially became Riding the wind of change with steadfast resolve, Walvax Biotechnology continues to march firmly toward its sustainable development
a supplier for UNICEF’s bulk procurement of HPV vaccines, goals. The company will remain unwavering in embracing transformation, accelerating the R&D and industrialization of blockbuster
advanced the market access of its bivalent HPV vaccine, and innovative vaccines, and deepening its global expansion model of “China Technology + Local Production,” to advance technological self-
actively participated in government public-benefit procurement reliance and strength in the life and health sector. The Company will actively pioneer new tracks such as biomanufacturing and the
programs, making highly cost-effective vaccines accessible to microbiome, better fulfilling the mission entrusted to biopharmaceutical enterprises in this era. With a more open posture toward global
broader populations and contributing Walvax’s efforts to the collaboration, higher standards for safeguarding health and life, and more pragmatic actions for creating long-term value, the Company
“Health China” initiative and global public health. will continue its journey to help everyone live a healthy life.
Walvax Biotechnology 2025 Sustainability Report About Walvax Biotechnology
About Walvax Biotechnology
Company Profile
In the human vaccines segment, the Company continues to deepen its international expansion
and advance the development of multivalent combination vaccines, ensuring that technological
Walvax Biotechnology Co., Ltd. (hereinafter referred to as diseases, and HPV (human papillomavirus). Building on its estab- innovation is aligned with market needs.
Human Vaccines
“Walvax Biotechnology”) was founded in 2001 and listed on lished capabilities in biopharmaceutical innovation and indus-
the Shenzhen Stock Exchange in 2010 (stock code: 300142), trialization, the Company continues to consolidate and expand
becoming the first enterprise from Yunnan Province to be listed its leading position in human vaccines, while actively extending
on China’s ChiNext board. Walvax Biotechnology consistently into emerging fields such as synthetic biomanufacturing and the
upholds its mission of “helping everyone live a healthy life.” The gut microbiome. It has established product R&D centers in the
Company has established a platform for technology develop- Kunming National High-Tech Industrial Development Zone and
ment and product commercialization with high standards, high Shanghai Zhangjiang Hi-Tech Park, as well as a modern vaccine
quality, and high efficiency, accelerating the R&D and indus- production base in the National High-Tech Industrial Develop-
Leveraging Yunnan’s advantages in green electricity and biomass resources, the Company
trialization of innovative vaccines. It holds a leading position in ment Zone in Yuxi City, Yunnan Province. At the same time, the
focuses on product innovation in the pharmaceutical and broader health sector and builds
the biopharmaceutical sub-sector, specifically in novel vaccines. Company is advancing the development of industrial bases in
distinctive competitive advantages in biomanufacturing, contributing to improved health and well-
The Company is also actively expanding into emerging areas strategic regions including Yunnan, Beijing, Guangzhou, and
Biomanufacturing being.
such as the microbiome and synthetic biomanufacturing, consis- Sichuan, while continuing to expand its international presence,
tently extending its innovation pipeline and striving to build an building an industrial development footprint rooted in Yunnan,
integrated “Health and Wellness + Biomanufacturing” industrial serving the nation, and expanding globally. Looking ahead, driv-
platform covering prevention, intervention, and treatment. en by biotechnology platform innovation and the deep integra-
tion of industry, academia, and research, Walvax Biotechnology
After more than two decades of development, Walvax Biotech- will continue to develop innovative vaccines and biotechnology
nology has obtained approval for eight vaccine products (14 pre- products that deliver strong value, meet customer needs, and
sentations), with its product pipeline covering multiple vaccine are internationally competitive, contributing to the advancement
categories, including pneumococcal diseases, meningococcal of the Healthy China initiative and global public health. Guided by the proprietary “Core Microbiota Seesaw Model (TCG),” the Company has established
a dual-track business model covering “Clinical Therapeutic Intervention” and “Chronic Disease
Microbiome Health Prevention +Health and Wellness Nutrition.” It provides integrated health solutions spanning from
and Functional clinical to out-of-hospital settings, and from treatment to prevention.
Nutrition
Interventions
Products have been exported to Overseas business revenue during the year
Walvax Biotechnology 2025 Sustainability Report About Walvax Biotechnology
Recognition
Total assets Number of vaccine doses Overseas business revenue during the Total employees Environmental protection investment
released during the year year during the year
RMB 12.07 billion
Operating revenue Vaccine delivery rate Pass rate of GMP inspections and Proportion of female employees in senior Greenhouse gas emission intensity
customer audits management positions
RMB 2.42 billion 100% 100% 35.13% 0.181 tonnes of CO₂e per
RMB 10,000 of revenue
Net profit attributable to Products exported to Overall service quality satisfaction Total external donations during the year Compliance rate for three wastes
shareholders of the listed company emissions
RMB 178 million
regions
countries and 99.67% RMB 13.99 million
Total taxes paid
Over 8 million doses of
Product recall rate during the year Included in
S&P Global's
Recognized as a Wind ESG
RMB 166 million
finished vaccines
and more than
Top 100
Best Practice Company
Yearbook 2025
of bulk vaccine exported to
(China Edition)
developing countries and
regions during the year
R&D investment
RMB 381 million
Walvax Biotechnology 2025 Sustainability Report Sustainable Development Management
Awards and Recognitions
Sustainable Development Management
Corporate Awards and Recognitions in 2025
Award/Recognition Issuing Authority
List of Signature Biomanufacturing Products
Ministry of Industry and Information Technology of the PRC
Sustainable Development Governance System
Yunnan Federation of Industry and Commerce
Yunnan Enterprise Confederation / Yunnan Entrepreneurs development into its corporate strategy. The Company has information. The Organizational Performance Management
Association established the Walvax Biotechnology Sustainable Development Measures (Trial Version) incorporate ESG-related assessment
China Top 20 Pharmaceutical Companies (ranked 20th) China Manufacturing Enterprises Association structure to build resilience and enhance its capacity for long- performance. The Company actively adopts quantitative
All-China Federation of Industry & Commerce, Medical & term value creation. metrics to evaluate the effectiveness of its ESG management
Pharmaceutical Chamber (CMP) strategies and is progressively integrating ESG indicators into its
HY Research Institute
Influential Vaccine Companies (ranked 8th) Committee, chaired by the Chairman of the Board. This
on, and advising on the Company’s sustainability strategies, Group possess extensive professional knowledge and practical
policies, objectives, and performance. It also oversees the experience. During the reporting period, the Company advanced
Technology Trade Innovation Projects Top 100 International Technology Trade Innovation Projects provides recommendations to the Board. The President’s capabilities. The Sustainability Committee convened four
All-China Federation of Industry & Commerce, Medical & Office and the ESG Office serve as the management-level meetings during the year, reviewing and approving the
Pharmaceutical Chamber (CMP)
bodies, responsible for formulating sustainability strategies, Sustainable Development Management Policy and the
Industry Association Memberships plans, and objectives, as well as coordinating and supervising 2024 Sustainability Report , thereby promoting governance
their implementation. The ESG Working Group, composed of optimization and improving the quality of information disclosure.
Association Position
representatives from various departments and subsidiaries, In addition, the Company organized ESG training sessions for
China Association for Vaccines Council Member (Yunnan Walvax), Member (Shanghai Zerun) is responsible for executing sustainability-related initiatives, directors and all employees to enhance their understanding of
including developing action plans aligned with the Company’s ESG strategies and related work, and to support the effective
China Society for the Study of the Private–Sector Economy Executive Council Member (Yunnan Walvax)
overall strategy, regularly reviewing and reporting sustainability implementation of ESG initiatives.
China Industry-University-Research Institute Collaboration Association Vice President Organization (Yunnan Walvax)
The Supply Chain Branch of the China Association for Vaccines Executive Council Member (Yunnan Walvax)
The General Association of Dian Entrepreneurs Vice President Organization (Yunnan Walvax)
Yunnan Private Enterprise Compliance Promotion Association Executive Vice President Organization (Yunnan Walvax) Walvax Biotechnology Sustainability Governance Structure
Yunnan Pharmaceutical Chamber of Commerce Vice President Council Member (Yunnan Walvax)
Yunnan Young Entrepreneurs Chamber of Commerce Vice President Organization (Yunnan Walvax)
Yunnan Provincial Intelligence and Digital Economy Association Vice President Organization (Yunnan Walvax) Decision-Making Level
Yunnan Enterprise Technology Center Association Executive Council Member (Yunnan Walvax) ● Evaluate sustainability-related impacts, risks, and opportunities Board of
Directors
Yunnan Microbiology Society Executive Council Member (Yunnan Walvax) ● Participate in the review and decision-making of major sustainability matters
Yunnan Biomedical and Health Industry Promotion Association Executive Council Member (Yunnan Walvax) ● Provide overall oversight of sustainability matters and are accountable for Sustainability
Committee
their effectiveness
Yunnan Preventive Medicine Association Vice President Organization (Yunnan Walvax)
Yunnan Health Products and Cosmetics Industry Association Vice President Organization (Yunnan Walvax)
Management Level
Yunnan Basic Research Development Promotion Association Member (Yunnan Walvax) President's Office
● Execute and monitor sustainable development strategies, plans, and (including executives
Developing Countries Vaccine Manufacturers Network (DCVMN) Member (Yunnan Walvax) objectives responsible for various issues)
● Assess the materiality of sustainability issues and integrate them into
Platform Recognitions in 2025
business operations
ESG Office
Platform Designation Issuing Authority ● Identify and allocate the resources required to identify, mitigate, manage,
(coordinates and advances ESG initiatives)
and monitor sustainability-related impacts, risks, and opportunities
National-level Technology-based SME Department of Science and Technology of Yunnan Province
Department of Science and Technology of Yunnan Province,
National High-Tech Enterprise Department of Finance of Yunnan Province, Execution Level ESG Working Groups
Yunnan Provincial Tax Service
Department of Industry and Information Technology of
● Manage specific issues within designated areas of ● Corporate Governance Working Group ● Environmental, Health, and Safety (EHS)
Working Group
Yunnan Innovative SME responsibility and develop targeted sustainability plans ● Product Safety and Quality Working
Yunnan Province Group ● Employee Responsibility Working Group
Yunnan Technology-based SME Department of Science and Technology of Yunnan Province
● Implement specific sustainability initiatives ● Health Accessibility Working Group ● Information Security and Privacy Protection
Working Group
● Regularly monitor and report on sustainability indicators
Vaccine R&D Proof-of-Concept Center - Capability Enhancement Project Department of Science and Technology of Yunnan Province
Walvax Biotechnology 2025 Sustainability Report Sustainable Development Management
Sustainability Strategy Framework Stakeholder Communication
Guided by its core principle of "helping everyone live a healthy life," Walvax Biotechnology has fully integrated sustainable development Walvax Biotechnology identifies its key stakeholders with reference to the AA1000 Stakeholder Engagement Standard and by
into its corporate strategy. By aligning with the United Nations Sustainable Development Goals (SDGs) and monitoring industry trends, benchmarking against the practices and experience of global peers. The Company has established diversified communication channels
the Company has systematically charted its strategic course for sustainability, advancing toward high-quality development and green tailored to different stakeholder groups. Stakeholders’ concerns, expectations, opinions, and recommendations are fully integrated
transformation. into the identification and response to sustainability-related risks and opportunities, the formulation of targets and indicators, and the
continuous enhancement of management practices, enabling the Company to proactively respond to stakeholder concerns.
The Wo· Sustainability Strategy Framework Stakeholders Expectations and Demands Communication Channels and Mechanisms
● Specialized meetings or reports
● Operating in compliance with laws and
● Feedback on policy consultation
regulations
● Official visits
● Tax compliance
Helping everyone live a healthy life Government and regulatory authorities ● Support local development
● Compliance regulatory inspections
● Information disclosure
● Shareholders’ meetings
● Financial reports and announcements
● Consistent and stable returns
● Investor hotline
● Transparent and open information
Roadshow and counter-roadshow
Innovation-Driven Green Development Collaborating for Shared Strengthening
●
● Investor relations management
Health Accessibility and Environmental Benefits and Value Governance for Long- Shareholders & Investors ● Performance briefings and other
engagement activities
Stewardship Creation Term Stability and
Growth
● Product quality and safety ● Customer satisfaction survey
● R&D Innovation ● Environmental ● Sustainable Supply Chain ● Strengthening Party ● Optimized customer service ● Customer relationship management
● Excellence in Quality Management ● Diverse and Inclusive Building to Consolidate
Business continuity Customer audits
the Foundation
● ●
Product Accessibility
● Climate Action Workplace
Customers Customer privacy protection Social media platform
●
● ●
Resource Utilization and Human Capital
● Strengthening Corporate
Quality Services
● ●
●
Circular Economy Development Governance
● Pollution Prevention and ● Caring Public Welfare
● Business Ethics and ● Supply chain audits and training
Ecosystem Protection Initiatives Compliance ● Adherence to business ethics
● Open cooperation
● Information Security and ● Responsible supply chain
● Communication and interaction
Privacy Protection ● Industrial cooperation and exchange
Partners
● Industry conferences
● Employee activities and communication
● Employee rights and benefits ● Employee training
● Occupational health and safety ● Employee performance communication
● Employee training and development ● Internal information communication
Diversity and equal opportunity platform
Employees
●
● Employee grievance channels
● Scientific and efficient use of resources ● Active response to climate change
● Reducing impact on the environment ● Reduction of waste emissions
● Promoting greener development across (wastewater, waste gas, and solid waste)
Environment the industry ● Biodiversity conservation
● Product quality and safety ● Media interaction
● Public welfare and charity ● Information disclosure
Community communication and ● Public welfare programs
Public and community
●
development ● Volunteer activities
Walvax Biotechnology 2025 Sustainability Report Sustainable Development Management
Risk and Opportunity Management
Risk Management Framework Risk Management Strategy and Procedures
Walvax Biotechnology strictly complies with applicable laws and regulations, including the Company Law of the People’s Republic of Walvax Biotechnology consistently optimizes its risk management strategies and procedures, and incorporates risk management
China , the Securities Law of the People’s Republic of China , the Basic Standard for Enterprise Internal Control , and the Guidelines for indicators into performance evaluation to ensure effective control and mitigation of relevant risks, laying a solid foundation for business
the Application of Enterprise Internal Control . In accordance with these requirements, the Company has formulated internal policies continuity and stable development. The Company integrates significant ESG-related risks and opportunities into its risk review and
and systems, such as the Risk Management Policy of Walvax Biotechnology Co., Ltd . and the Internal Control Deficiency Identification business planning processes, with a view to better managing and mitigating risks while identifying opportunities for growth and
Standards of Walvax Biotechnology Co., Ltd . Guided by the management objective of “strengthening internal controls, preventing risks, transformation.
and promoting compliance,” and in consideration of industry characteristics, the Company has established and consistently refined
a management framework that is risk-oriented and focused on compliance supervision. This approach enhances the management Focusing on key businesses, critical areas, major operational processes, and international operations, the Company organizes all
of sustainability-related impacts, risks, and opportunities, and supports the Company’s stable and sound operations. The Board of business units to systematically review, identify, and assess specific business risks. This process has led to the establishment of the
Directors assumes ultimate responsibility for risk management. It is responsible for approving the Company’s risk management strategy, Risk Identification and Control Database, the Risk (Deficiency) Tracking Database, and the Internal Control Database. Based on these
determining the overall risk profile, approving major risk response plans, and overseeing and evaluating the effectiveness of risk efforts, the Company dynamically adjusts its risk management policies and risk mitigation and control measures, and strengthens the
management as well as management’s performance in fulfilling its risk management responsibilities. The Audit Committee under the remediation of internal control deficiencies to address various complex risks, including ESG-related risks. In addition, the Company has
Board is responsible for reviewing the effectiveness of enterprise-wide risk identification, assessment, management, and monitoring established effective risk response and emergency management mechanisms. For newly emerging significant risks without existing
processes. The Board also authorizes other specialized committees, such as the Sustainability Committee, to carry out specific risk contingency plans, the President takes the lead in organizing the development of response measures, which are then submitted to the
management responsibilities within their respective areas of expertise. Board of Directors for review and approval.
At the operational level, the Company has established a “Three Lines of Defense” internal control and risk management framework, Each year, the Company conducts a comprehensive, multi-dimensional review of enterprise-wide risks. For newly emerging significant
covering all employees, processes, systems, and business activities, to support high-quality development. The Company has established risks, the President takes the lead in formulating response measures, which are submitted to the Board of Directors for review.
an Internal Audit Department responsible for consolidating and assessing various business and sustainability-related risks, and Through targeted training, the Company fosters a risk management culture across all employees, enabling early identification, dynamic
for supervising the implementation of the Company’s risk management systems. It reports annually to the Audit Committee and management, and continuous optimization of emerging risks.
management on key risk control activities. In 2025, the Audit and Inspection Department was guided by the principles of “aligning with
The Company encourages employee participation in building its risk management culture and strengthens company-wide risk
strategy, penetrating business operations, and creating value,” and adopted “end-to-end risk governance” as its primary oversight
management training. All departments are required to promptly study and analyze relevant new regulations and policies, enhance risk
approach. The Company innovatively implemented a “1+N integrated audit model,” deeply embedding audit functions into the core of
prevention capabilities, ensure compliant operations, and maintain risks within an acceptable range.
corporate governance and driving a transformation from compliance-focused execution to governance empowerment.
First Line of Defense
The Company’s business units, as operational front-line departments, bear primary responsibility for internal control and risk
management, and are responsible for establishing and implementing the first line of defense.
Risk Identification Risk Analysis and Assessment Risk Mitigation and Control
Second Line of Defense
● A range of methods, including ● Assessment of risk likelihood ● Based on the assessed risk
The Company’s internal control and risk management functions, including Quality, Safety, Human Resources, and Finance, questionnaires, document ● Assessment of risk impact levels and the Company’s
serve as support functions for internal control and risk management, and are responsible for establishing and implementing reviews, on-site inspections, actual conditions, appropriate
● Risk scoring to determine risk levels
the second line of defense. penetration testing, and SWOT risk management measures
analysis, are employed to
● Evaluation of the effectiveness of are implemented through risk
systematically identify existing existing control measures avoidance, risk transfer, risk
Third Line of Defense
and potential risks. reduction, and mitigation of
potential impacts.
The Company’s internal audit function, together with external audit institutions, serves as the assurance function for internal
● Risk tracking, monitoring, and
control and risk management, implementing the third line of defense.
early warning
Walvax Biotechnology 2025 Sustainability Report Sustainable Development Management
Materiality Assessment Analysis of Impacts, Risks, and Opportunities Related to Material Issues
Materiality issue management underpins Walvax Biotechnology’s approach to sustainability planning, risk and opportunity management,
Scope of Impact Impact Timeframe
and information disclosure. The Company conducts regular materiality analyses. In 2025, in accordance with authoritative standards and Material Issue Risks and Opportunities Impact Level
guidelines, including the GRI Standards for Sustainability Reporting, IFRS S1 General Requirements for Disclosure of Sustainability-related Upstream Operations Downstream Short term Medium term Long term
Financial Information, and the Shenzhen Stock Exchange Self-Regulatory Guidelines No. 17 for Listed Companies—Sustainability Report
(Trial), the Company updated its issue pool and conducted a double materiality assessment from two dimensions: impact materiality (the ● Risks: Changes in external regulatory standards may pose risks
significance of impacts on economic, environmental, and social sustainability) and financial materiality (the significance of impacts on the if not identified and effectively addressed in a timely manner, Negative impact:
Company’s financial performance). High-impact issues are subject to comprehensive management and disclosure to better respond to potentially resulting in regulatory penalties, market access ●●●
stakeholder expectations and needs. The Board of Directors and the Sustainability Committee review and confirm the materiality matrix Product Quality and √ √ √ √ √ √ restrictions, and a decline in market trust. Positive impact:
Safety
for the year. ● Opportunities: High-quality products can enhance customer trust, ●●●
increase market share, and strengthen competitive advantage.
● Risks: In the face of technological risks, market competition, and
internationalization challenges, R&D investment may require
The issue pool is updated with The Company conducts surveys The results of the screening and substantial financial input with uncertain commercial outcomes. Negative impact:
●●
reference to leading domestic among key internal and external analysis are reviewed by both √ √ √ √ √ √
● Opportunities: Breakthroughs in disruptive technologies, such as
and international sustainability stakeholder groups to develop the management and external experts, mRNA, gene editing, synthetic biology, and artificial intelligence, Positive impact:
R&D Innovation
can support the development of vaccines with high medical and ●●●
standards, mainstream ESG rating materiality matrix and determine and are subsequently reviewed
social value, thereby enhancing the Company’s long-term market
systems, and sustainability issues material issues and their priorities and approved by the Sustainability competitiveness.
of concern within the industry. for the year. Committee.
● Risks: Increasing regulatory scrutiny in the pharmaceutical industry
regarding commercial bribery and conflicts of interest may expose
the Company to compliance risks, potentially leading to significant
economic costs, legal consequences, operational risks, and Negative impact:
reputational damage. ●●●
Business Ethics and √ √ √ √ √ √
● Opportunities: Strengthening business ethics and compliance Positive impact:
High Compliance
Product Quality and Safety practices can support the establishment of robust internal ●●
management systems and processes, enhance management
R&D Innovation and Scientific Ethics efficiency and transparency, and reinforce overall governance
Corporate Governance effectiveness.
Access to Healthcare ● Risks: The domestic pharmaceutical industry is undergoing a
structural transformation, facing increasingly complex policy,
market, and technological risks. Vaccine demand is also becoming Negative impact:
Business Ethics and Anti-corruption more sensitive to changes in disease epidemiological trends. ●
√ √ √ √ √
Significance of Impacts on the Company's Financial Performance
Access to ● Opportunities: There remains significant unmet demand in the Positive impact:
Human Capital Development Healthcare global vaccine market. Supportive national policies promoting ●●●
innovation and the development of the biopharmaceutical sector
create substantial opportunities for growth.
Information Security and Privacy Protection Risks: The Company is exposed to multidimensional risks, including Negative impact:
●
technical, human-related, management, and operational risks. ●●●
Climate Change Mitigation Information √ √ √ √ √ √ Inadequate management of critical data and customer privacy
Security and may result in data breaches, giving rise to compliance risks, Positive impact:
Privacy Protection reputational damage, and reduced customer trust. ●●
Digital Transformation
Sustainable Supply Chain ● Risks: Insufficient employee training and development may
lead to risks related to strategy execution and organizational
Customer Relationship Management Industrial Cooperation and Development transformation, as well as increased employee turnover. Negative impact:
Opportunities: A well-established employee learning and ●●
Occupational Health and Safety √ √ √ √
●
Human Capital development and talent cultivation system can effectively support Positive impact:
Development the achievement of the Company’s strategic objectives, enhance ●●●
Labor and Human Rights Management
its brand and market competitiveness, and create potential
Water Resources Management Emissions and Waste Management business opportunities.
Diversity and Equal Opportunity ● Risks: Climate change-related physical and transition risks,
particularly those arising from extreme weather events and
Resource Utilization and Circular Economy natural disasters, may lead to damage to owned assets, supply
chain disruptions and increased costs, as well as changes in Negative impact:
disease patterns that may affect product strategies. ●●
Biodiversity Conservation
√ √ √ √ √ √
Rural Revitalization and Social Contribution Addressing Climate ● Opportunities: Climate change may give rise to new business Positive impact:
Change opportunities in climate-related disease areas, enabling the ●●
development of new vaccine solutions. Strengthened energy
management can also support a stable long-term power supply
and deliver energy-saving benefits.
Low Significance of Impacts on Economic, Environmental, and Social Sustainability High ● ● ● High ● ● Medium ● Low
Innovation-Driven
Health Accessibility
R&D investment during the year
RMB 381 million
Products had been exported to
Vaccine lot releases during the
year
with a Product recall rate
during the year
Walvax Biotechnology 2025 Sustainability Report Innovation-Driven Approach to Enhancing Health Accessibility
R&D Innovation
Governance Strategy and Approach
New quality productive forces are the core drivers for a company's continuous innovation and adaptation to change. To effectively Guided by its philosophy of "Life is priceless, technology is
execute its innovation-driven development strategy, Walvax Biotechnology has established an R&D governance structure centered on infinite," Walvax Biotechnology maintains a sustained high level
a "dual-track governance" model. Through the synergy of these two complementary tracks and a tiered decision-making mechanism, of R&D investment and a commitment to leading-edge scientific
the Company has established a closed-loop mechanism integrating strategic planning, scientific review, resource support, and execution innovation. With innovation in core biotechnology platforms
monitoring, ensuring that scientific decision-making and efficient execution are seamlessly aligned. The Board of Directors is responsible and deep industry-university-research integration as its primary
for setting the innovation strategy, ensuring that all R&D directions are fully aligned with the Company's overall corporate strategy. The drivers, the Company has strategically organized its efforts Yunnan Walvax
President's Office acts as the central decision-making body, providing final approval for project initiation, significant changes, termination, into several key business units: the Bacterial Vaccine BU, the
and key milestones. The Scientific Committee (SC) serves as both the "product strategy lead" and the "technology gatekeeper." Its Recombinant Protein BU, the mRNA Vaccine BU, the Nutrition
National Technology Innovation
primary responsibilities include evaluating technology trends, assessing the scientific merit and innovation of projects, and validating Division, and the Biomanufacturing Division. This structure
Demonstration Enterprise
key technological milestones. The R&D Project Management Committee (PMC) is tasked with resource allocation and execution has enabled the gradual construction of a high-level, open National Innovation-Oriented Pilot
oversight. It manages the overall R&D budget, reviews project plans and resource alignment, and monitors progress and costs to ensure R&D innovation system spanning three major fields: vaccines, Enterprise
projects advance efficiently within a controlled scope. The Project Management Office (PMO) acts as the central coordination hub. It is synthetic biomanufacturing, and microecological interventions. National Enterprise Technology Center
responsible for developing systems, organizing reviews, monitoring processes, managing knowledge, and facilitating coordination across The Company is consistently expanding its innovative product
all committees. Supported by this robust governance framework, each of the Company's BUs possesses the full capability to manage pipeline and is dedicated to building a comprehensive "Health
National High-Tech Enterprise
products through the entire lifecycle, from initial R&D to industrialization, effectively safeguarding both the quality and efficiency of its and Wellness + Biomanufacturing" industrial platform covering International Cooperation Base for
R&D efforts. prevention, intervention, and treatment. The ultimate goal is Human Vaccines
to contribute to a global framework for diverse immune and National Engineering Practice
The Company's R&D activities are conducted in strict accordance with relevant domestic and international laws, regulations, and microecological protection, ranging from infectious disease Education Center
standards, including the Drug Administration Law of the People's Republic of China , the Vaccine Administration Law of the People's control to population-wide health management.
Republic of China , and the Provisions for Drug Registration . A comprehensive management system covering the entire R&D lifecycle has
been established through key internal policies, such as the Walvax Biotechnology Co., Ltd. Exploratory Project Management Measures, W i t h i n t h e v a c c i n e R & D s e g m e n t , t h e Co m p a n y h a s Shanghai Zerun
the Walvax Biotechnology Co., Ltd. Scientific Committee Working Charter , and the Walvax Biotechnology Co., Ltd. Vaccine R&D Project implemented a management mechanism centered on "tiered Shanghai High-Tech Enterprise
Management Measures (Trial) . This system governs all aspects of scientific research management, from project initiation, planning, and classified management" and "dual-track governance." Shanghai Sci-Tech Little Giant
and change management to execution, results management, and evaluation incentives, thereby enhancing the systematization This approach allows for the formulation of precise product (Incubation) Enterprise
and standardization of R&D processes. To ensure financial discipline, the Company has also formulated the Walvax Biotechnology development and iteration strategies, balancing innovation Shanghai Specialized, Refined,
Co., Ltd. Scientific Research Project Funding Management Measures and the Walvax Biotechnology Co., Ltd. R&D Project Investment dynamism with standardized operations, while aligning scientific
Differentiated, and Innovative (SRDI)
Funding Management Measures . A dedicated R&D budget pool has been established, managed through tiered approval processes, decision-making with effective resource coordination. In terms
Enterprise
phased budget releases, and dynamic budget monitoring. This approach ensures that R&D funds are used in a compliant, precise, and of tiered and classified management, projects are managed
Shanghai Municipal Enterprise
sustainable manner, maximizing capital efficiency. hierarchically based on their technology readiness level (TRL).
This encourages agile innovation in early-stage exploratory
Technology Center
projects while ensuring systematic and compliant progress
Yuxi Walvax
for projects in later development phases. In terms of dual-
track governance, collaborative decision-making between National High-Tech Enterprise
the Scientific Committee and the R&D Project Management
Executive Management Committee (EMC) Committee ensures that R&D directions align with scientific
Yuxi Zerun
frontiers while remaining resource-feasible and efficiently
executable. This mechanism effectively balances scientific Yunnan Sci-Tech SME
rigor with execution efficiency, enabling projects to advance Yunnan Innovative SME
in an orderly and controlled manner. In terms of knowledge Yunnan Provincial Science and
management, the Company has built an R&D Knowledge Base Technology Progress Award
and a Technical Exclusion List (Negative List) to systematically (Third Prize)
capture experience, facilitate knowledge sharing, and
enable continuous improvement. Furthermore, the Company
consistently refines its decision-making processes for new
Scientific Committee (SC) R&D Project Management Committee (PMC) 2025 Yunnan
business initiatives to enhance efficiency and quality, ensuring
their steady advancement.
Top 10
Capability
Private Enterprises by Innovation
Recipient of
Project Management Office (PMO) 11 provincial-level and above science and
technology innovation awards
Walvax Biotechnology 2025 Sustainability Report Innovation-Driven Approach to Enhancing Health Accessibility
Deepening Innovation in Vaccines
mRNA Vaccine Technology Platform
Driven by its vision to "become a source of pride for China's vaccine industry and a pioneer in the global vaccine industry," Walvax
Through a combination of independent R&D and collaborative breakthrough efforts, this platform has established a fully self-controllable,
Biotechnology pursues a balanced R&D strategy that integrates independent development, collaborative research, and in-licensing of
end-to-end technology system for mRNA vaccines that benchmarks against international advanced standards. This system covers
projects. This approach has enabled the Company to build a suite of technology platforms that are leaders in the domestic market,
vaccine design, delivery systems, large-scale production, and analytical evaluation, enabling multiple key technological innovations. A
encompassing bacterial vaccines, recombinant protein vaccines, mRNA vaccines, and viral vaccines. Through these platforms, the
notable achievement is the co-developed mRNA COVID-19 vaccine targeting the Omicron XBB.1.5 variant (Code: RQ3033), Walancorna.
Company is actively developing an innovative vaccine pipeline characterized by significant technological and clinical advantages.
The vaccine is the first mRNA COVID-19 vaccine in China targeting XBB and related variants to receive emergency use authorization,
In 2025, the Company intensified its focus on forward-looking technology planning, enhancing technological independence and
supported by complete Phase III safety and efficacy data and approved via an immunobridging clinical pathway.
controllability, strengthening platform capabilities, and optimizing its product pipeline. Efforts were concentrated on two fronts:
upgrading existing vaccine varieties and developing innovative ones. This included advancing higher-valency and combination vaccines
to broaden population coverage, while simultaneously accelerating the development of novel candidates such as vaccines for herpes
zoster and an mRNA-based COVID-19-influenza combination. Leveraging its advanced technology base and persistent problem-solving
In October 2025, the Company's mRNA vaccine for respiratory syncytial virus (RSV) successfully obtained clinical trial
capabilities, the Company achieved multiple breakthroughs across its pipeline. From technological breakthroughs and platform iteration
approval from the National Medical Products Administration (NMPA). This vaccine targets a highly conserved sequence
to capacity enhancement and global expansion, Walvax Biotechnology is accelerating its transformation toward high-end and intelligent
of the F protein from RSV-A strains prevalent in China over the last decade. By incorporating independently designed
manufacturing. By actively cultivating new quality productive forces, the Company is consolidating the foundation for long-term industrial
mutation sites to stabilize PreF protein expression, it fills a critical gap in the domestic mRNA vaccine landscape for RSV.
growth and empowering its own journey toward high-quality development.
Bacterial Vaccine Technology Platform
In December 2025, a lyophilized mRNA vaccine for herpes zoster received clinical trial approval from the NMPA, offering
a potential solution to address the significant disease burden among middle-aged and elderly populations.
This platform integrates core systems for polysaccharide technologies, carrier protein technologies, and polysaccharide–protein
conjugation technologies, continuously strengthening the Company's technological barriers in bacterial vaccines. To date, it has enabled
the successful development and launch of seven bacterial vaccine products: the 13-valent Pneumococcal Conjugate Vaccine, the
An mRNA COVID-19 vaccine candidate targeting the Omicron JN.1 variant's S protein has been designed and iteratively
Meningococcal Conjugate Vaccine, the Group ACYW135 Meningococcal Polysaccharide Vaccine, the Group A and Group C Meningococcal
developed.
Polysaccharide Vaccine, and the Adsorbed Diphtheria, Tetanus and Acellular Pertussis Combined Vaccine. These products provide
comprehensive coverage against key pathogens, including pneumococcus, meningococcus, and pertussis. In 2025, the Company further
strengthened its quality and residue control capabilities by completing the drafting of five new technical SOPs.
In April 2025, the Company's 20-valent Pneumococcal Polysaccharide Conjugate Vaccine (PCV20) successfully obtained
Viral Vaccine Technology Platform
clinical trial approval. This represents a significant addition to the Company's pneumococcal vaccine portfolio, following
the 13-valent and 23-valent vaccines, and offers enhanced serotype coverage compared to existing options.
Building on mature technologies for virus attenuation, cell culture, and lyophilization, this platform focuses on developing vaccines for
highly prevalent viral infectious diseases, consistently enriching the Company's product pipeline.
The Company's self-developed adsorbed tetanus vaccine has completed the major on-site research activities for Phase I
clinical trials and has progressed to Phase III.
In November 2025, a clinical trial application for a live attenuated varicella vaccine was accepted by the NMPA. Upon
approval, this vaccine will lay the groundwork for developing a measles-mumps-rubella-varicella (MMRV) combination
vaccine, providing additional options for public health prevention and control.
Recombinant Protein Vaccine Technology Platform
This platform comprises core systems for virus-like particle (VLP) preparation, recombinant protein expression, novel adjuvant evaluation,
and novel vaccine development, with a dedicated focus on advancing next-generation vaccines. As of the end of December 2025, R&D
personnel constituted 85% of the platform's team. Throughout 2025, the platform continued to advance new technologies for novel
vaccine development, including antigen protein structural characterization and adjuvant property characterization. Collaboration with
leading domestic research institutions, including Guangzhou Laboratory, Tsinghua University, and Dalian University of Technology, was
further strengthened to enhance R&D quality.
The Company's independently developed and manufactured bivalent HPV vaccine, Walrinvax, was eligible for
procurement by UNICEF and other UN agencies. This has facilitated its entry into markets across more countries and
regions, benefiting a wider global population.
Phase III clinical trials for the 9-valent HPV vaccine are progressing steadily, alongside breakthroughs in overseas market
expansion. This project has received strong support from international organizations, including the Gates Foundation
and the Program for Appropriate Technology in Health (PATH).
Walvax Biotechnology 2025 Sustainability Report Innovation-Driven Approach to Enhancing Health Accessibility
Expanding the Innovative Product Pipeline
Driving the Upgrading of Yunnan's Vaccine Industry As the healthcare sector accelerates its fundamental shift from a treatment-centered to a health-centered model, Walvax Biotechnology
is actively capitalizing on opportunities within national strategic emerging industries. The Company is pursuing a dual-pronged strategy
Feature
to build a comprehensive product portfolio spanning the full cycle of prevention, treatment, and health promotion, thereby creating a
robust health protection barrier. Leveraging synthetic biology, it is developing high-value-added biological products, including functional
proteins, active microbial preparations, and prebiotics. Building on microecological science, the Company is creating intervention solutions
The Yunnan Vaccine Laboratory is a landmark initiative in the province's drive to implement an innovation-led development
targeting metabolic regulation, immune modulation, and chronic disease management.
strategy and achieve a high level of scientific and technological self-reliance. Led by Walvax Biotechnology and established
in partnership with key universities, CDCs, and enterprises across Yunnan, the laboratory represents a major step forward
in advancing cutting-edge vaccine technologies, overcoming critical technical hurdles, and creating a premier platform for
Biomanufacturing
vaccine R&D and public services for the biomedical industry. The laboratory is designed to bridge the entire vaccine value
chain—from basic and applied research, through clinical trials and commercialization, to scale-up production and health
economics analysis. Anchored by platforms such as the Yunnan Provincial Biotech Drug Engineering Research Center, Yunnan Province offers distinct advantages for biomanufacturing, including exceptional biodiversity, abundant green electricity, and rich
it aims to become a national pacesetter in technological innovation for vaccine R&D and industrialization. In doing so, biomass resources. By combining these local strengths with the Company's innovation-driven industrialization capabilities—honed in the
it will serve as a source of cutting‑edge technologies, an accelerator for the commercialization of research findings, an complex field of vaccine biopharmaceuticals—Walvax Biotechnology drives product innovation in the pharmaceutical and health sectors,
engine for industrial growth, and a hub for attracting and cultivating top‑tier talent. Ultimately, the laboratory will form an forging a unique competitive advantage in biomanufacturing.
industrial cluster of significant national influence, extending its reach to Southeast Asia and other Belt and Road countries.
Taking into account market dynamics, technological feasibility, user needs, product potential, and business model innovation, the
In 2025, the Company leveraged Yunnan's unique geographical position to deepen industrial collaboration with South and Company comprehensively integrates resource availability, industrial factors, and core capabilities. It focuses on high‑value‑added
Southeast Asia, contributing to the province's emergence as a regional hub for international biomedical cooperation. The products for the life and health sector in biomanufacturing. Key capability-building initiatives include AI-driven creation of synthetic
Company concentrated its efforts on advancing frontier fields such as mRNA technology and synthetic biology. Through biology chassis cells, intelligent and precise control for high-density fermentation, multi-stage extraction technologies and advanced
partnerships between universities and enterprises, it tackled fundamental technology gaps and challenges. Initiatives such formulation technologies, scenario-based application research and end-product solution development, and key technologies for
as co-establishing employment practice bases and building integrated industry-university-research systems helped address utilizing Yunnan's distinctive non-food raw materials. Through these efforts, the Company is steadily advancing the implementation
the shortage of high-end talent, driving tangible industrial upgrading within the region. of its biomanufacturing business. In 2025, the biomanufacturing innovation R&D platform was progressively commissioned, and the
development of a series of key products, along with related industrialization projects, progressed steadily.
Additionally, Walvax Biotechnology and the Yunnan Vaccine Laboratory are actively integrating the strengths of research
institutes, universities, and enterprises, both domestically and internationally, to forge a collaborative R&D ecosystem. Key
partnerships and initiatives include collaborating with Tsinghua University, Fudan University, academician workstations,
Guangzhou Laboratory, and Shanghai Rnacure Biopharma Co., Ltd. on cutting-edge R&D projects. They also work closely
with international organizations such as the Gates Foundation, the Coalition for Epidemic Preparedness Innovations
Deployment of a portfolio of innovative synthetic biology products through both independent R&D and collaborative innovation
(CEPI), the Program for Appropriate Technology in Health (PATH), the United Nations Children's Fund (UNICEF), the Global
Alliance for Vaccines and Immunisation (Gavi), and the Developing Countries Vaccine Manufacturers Network (DCVMN) to
accelerate vaccine development and advance WHO prequalification (WHO-PQ).
Development of integrated innovation and pilot-scale validation platforms enabling pervasive internal and external collaboration
Partnering with Fudan University and the Yunnan Vaccine Laboratory to establish the Synthetic Biology
and Vaccine Technology University-Enterprise Joint Research Center. This center is dedicated to Establishment of specialized talent teams to build end-to-end capabilities across R&D, production, and commercialization
achieving original breakthroughs in foundational synthetic biology technologies, such as DNA and RNA,
thereby elevating the region's capacity for original innovation in biotechnology.
Development of biomanufacturing industrial projects to enable large-scale production and supply of innovative products
Cooperating with the Yunnan Province Rao Zihe Academician Workstation to build a regional public
health emergency response system, overcome key technological bottlenecks, and cultivate high-level
R&D talent, thus comprehensively enhancing independent innovation and technology commercialization
capabilities.
Exploration of diversified and flexible marketing models to establish a closed-loop value creation system
Facilitating the joint establishment of the Respiratory Infectious Disease Vaccine Joint Laboratory
by Guangzhou Laboratory, the Yunnan Vaccine Laboratory, and the Yunnan Province Science and
Technology Department. This laboratory focuses on core technology R&D and pipeline development for
respiratory infectious disease vaccines.
Microbiome Business
Guided by the proprietary “Core Microbiota Seesaw Model (TCG),” Walvax Biotechnology is dedicated to the independent R&D and
Establishing an industry-university-research collaborative innovation system with the Shandong translational application of core microbiome technologies. In 2025, the Company held Board meetings on May 23 and July 30, approving
University Yunnan Research Institute to jointly tackle technological bottlenecks in the vaccine industry the Exclusive Sublicense Agreement and its Amendment with Notitia, a U.S. company. The Amendment expands the collaboration scope
and explore the emerging field of synthetic biology. from the "patient population" under the original agreement to include both "patient" and "non-patient" populations, creating a dual-track
structure that combines "disease treatment intervention" with "Chronic Disease Prevention + Health and Wellness Nutrition." This move
aligns with China's national chronic disease prevention strategy and broadens the application of core microbiota therapies.
Walvax Biotechnology 2025 Sustainability Report Innovation-Driven Approach to Enhancing Health Accessibility
Building a Dynamic Talent System Participant Protection
Right to Information and Voluntary Participation: Informed consent forms are used only after receiving approval from the Ethics
A strong scientific research team is the foundation of technological innovation. Walvax Biotechnology places talent development at the
Committee. During the informed consent process, the nature, purpose, risks, and rights associated with the trial are fully explained
very core of its corporate strategy. The Company consistently refines its criteria for selecting research personnel, enhances management
to participants, who are given adequate time to consider their participation. All participants join trials voluntarily and have the
mechanisms that foster the growth of scientific talent, and cultivates a closed-loop ecosystem encompassing attraction, development,
unconditional right to withdraw from the study at any stage.
incentives, and output. This comprehensive approach solidifies the foundation for sustained innovation. After more than two decades of
strategic investment, the Company has forged a well-structured talent pipeline of management and technical personnel who combine Right to Privacy: All clinical trials strictly protect participant privacy in accordance with regulatory requirements, ensuring that the
international vision with deep professional expertise. This enables end-to-end talent support across the entire value chain, from basic collection, use, and storage of personal information are legal and compliant. Detailed information on clinical research data security
research to industrialization. Furthermore, the Company has engaged several senior vaccine industry experts as advisors, who provide and privacy protection can be found in the "Information Security and Privacy Protection" section of this report.
invaluable guidance to ensure the correct strategic direction, high technical standards, timely progress, and uncompromising quality of
its vaccine development efforts. Right to Life and Health: All clinical trial protocols undergo rigorous scientific evaluation and are initiated only after ensuring that the
potential benefits to participants outweigh the risks. Appropriate insurance is procured for all participants. For early-stage, large-
scale, or high-risk clinical trials, an independent Data and Safety Monitoring Board (DSMB) is established to ensure participant safety
Attraction Cultivation Motivation
is fully guaranteed.
Right to Medical Treatment: All clinical trials are conducted at fully qualified and legally compliant institutions. Prior to enrollment,
Through both full-time R&D Capability Training The Company agreements establishing expedited "green channel" access are made with local authoritative hospitals to ensure prompt medical
positions and flexible The Company regularly conducts on-the-job qualification and skills training establishes and refines care if needed. Comprehensive emergency response plans are developed, and robust safety event monitoring and evaluation
talent acquisition and facilitates external exchange programs. Key technical personnel are career advancement mechanisms are established to guarantee that participants receive appropriate treatment should any safety events occur.
mechanisms, the frequently sponsored to participate in high-level industry conferences, pathways and promotes
Company attracts facilitating the development of interdisciplinary research skills. long-term incentive
Safety Event Management
outstanding R&D talent plans for core talent. By
Open Platforms and Incubation Mechanisms
who embody its values combining professional The Company has established dedicated departments for real-time monitoring of safety information. A comprehensive management
and possess strong Leveraging the Yunnan Vaccine Laboratory, the Company issues calls title assessments system, aligned with all regulatory requirements, has been established. This system enables the thorough analysis and evaluation
professional integrity, for open research projects to attract external research teams, forming with project- of safety data and ensures that any safety risk events are promptly reported to the relevant regulatory authorities, thereby
a solid professional an integrated model that combines project incubation with joint talent based performance safeguarding the safety and rights of all trial participants.
foundation, and development. By utilizing core technology platforms to conduct breakthrough evaluations, it
exceptional innovation research and undertake national and provincial-level sci-tech projects, the stimulates the
capabilities. Company accelerates the translation of technological achievements into innovative vitality of its
clinical trial approvals and consolidates its innovation capabilities. research personnel. Animal Ethics
Adhering to Research Ethics
Walvax Biotechnology strictly adheres to Institutional Animal Care and Use Committee (IACUC) guidelines. All personnel involved in
animal experimentation are required to hold the necessary certifications. A formal Animal Experiment Ethical Review Form must be
Guided by the ethical principles of respect, beneficence, and justice, Walvax Biotechnology strictly complies with all applicable laws,
submitted to the Ethics Committee prior to the procurement of any experimental animals, and no animal experiment project may
regulations, and ethical norms. It has established a robust ethical governance and rights protection system that aligns with international
commence without the Committee's explicit approval. The Company is guided by the "3Rs Principle" (Reduction, Replacement, and
standards and is embedded throughout all research processes. The Company rigorously conducts risk assessments and maintains full-
Refinement) and conducts all animal work responsibly, strictly prohibiting any action that violates ethical standards or causes harm to
process control over all experimental activities involving pathogenic microorganisms, ensuring that all R&D activities are conducted safely
animals. The Company actively engages with global vaccine industry experts to explore alternative methods to animal testing in vaccine
and in full compliance. During the reporting period, the Company recorded no incidents involving violations of research ethics.
product release testing processes. During the reporting period, the Company recorded no violations of any laws or regulations pertaining
to animal protection and ethics.
Protection of Clinical Trial Participants' Rights
The Company maintains rigorous compliance with all ethical guidelines for the use of laboratory animals, clearly defining the necessity
and scientific justification for any proposed animal experiment. Such experiments are conducted only when no alternative methods
Walvax Biotechnology places the highest priority on ethics in clinical trials, consistently putting the rights, safety, and well-being
are available, and every effort is made to minimize the number of animals used. When external animal research centers are engaged
of research participants first. The Company strictly adheres to established ethical norms, including the Declaration of Helsinki , the
to conduct vaccine-related studies, the Company strictly ensures that all activities comply fully with IACUC requirements. Furthermore,
International Ethical Guidelines for Health-Related Research Involving Humans , and the Measures for Ethical Review of Life Science and the Company upholds the highest standards of scientific integrity, ensuring that all animal experiment data are authentic, accurate,
Medical Research Involving Human Beings . A comprehensive management system has been implemented, covering all aspects from complete, and fully traceable. The falsification or alteration of experimental records is strictly prohibited, safeguarding both the ethical
clinical trial protocols and informed consent to risk control and the timely reporting of adverse events. Through systematic training,
compliance and scientific validity of all research activities.
regular audits, and continuous improvement, the Company effectively safeguards the safety and rights of all participants.
Protocol Design Biosafety
The Company integrates the principles of "quality by design" and "risk proportionality" into trial protocols. Full and comprehensive
consideration is given to participant safety, rights, and potential risks during the initial protocol design stage, ensuring both the Walvax Biotechnology has established and strictly enforces the Biosafety Management Regulations for Pathogenic Microorganism
scientific and ethical soundness of the trial. Any proposed changes to a trial protocol undergo a timely, comprehensive, and in-depth Laboratories of Walvax Biotechnology Co., Ltd . A dedicated Biosafety Committee has been formed, and a clear accountability system
evaluation of their necessity, rationale, and potential impact on participant safety. All protocol amendments are promptly submitted is in place for all personnel managing pathogenic microorganism laboratories. A standardized Risk Assessment Form for Pathogenic
to the Ethics Committee for review and approval, strictly following all regulatory requirements. Microorganism Experimental Activities is used to strengthen the evaluation, prevention, and control of associated risks. The Company
Ethical Review provides continuous biosafety training, utilizing various formats including mandatory sessions for new employees, annual refresher
courses, and specialized workshops led by external experts. All training is followed by formal assessments. Laboratories are equipped
The Company strictly complies with all laws, regulations, and systems pertaining to ethical review. All clinical trials must obtain prior with state-of-the-art biosafety protection equipment and emergency response kits, and regular on-site biosafety drills are conducted.
approval from the Ethics Committee before initiation, and the protection responsibilities of all involved parties are clearly defined in These measures are designed to mitigate and prevent biosafety risks across all operations. In addition, the Company has established
contracts. Any modifications to key documents, such as the clinical trial protocol, are promptly submitted to the Ethics Committee for stringent biosafety management procedures for its suppliers. These procedures ensure supplier qualification compliance, full-process
review and only take effect upon approval. During the trial, any participant safety events are reported immediately, and appropriate compliance, and traceability of materials. These controls are critical for preventing the leakage of investigational drugs and biological
actions are taken based on the Ethics Committee's guidance. All clinical trials are subject to ongoing review by the Ethics Committee samples used in clinical trials. During the reporting period, the Company experienced no safety incidents, such as the leakage of
to ensure full-process compliance. pathogenic microorganisms.
Walvax Biotechnology 2025 Sustainability Report Innovation-Driven Approach to Enhancing Health Accessibility
Intellectual Property Protection
In December 2025, the Yuxi Municipal Public Security Bureau officially established the Yuxi Enterprise Station for Criminal
Protection of Intellectual Property at Yuxi Walvax Biotechnology Co., Ltd. This station serves as a single point of contact,
Walvax Biotechnology strictly complies with the latest provisions of the
integrating functions such as evidence collection, legal consultation, public education, and dispute mediation. It enables
Patent Law of the People's Republic of China , the Trademark Law of the Patents granted during the year the direct and rapid handling of policy inquiries, reporting, and complaints, significantly enhancing the Company's ability to
People's Republic of China , the Copyright Law of the People's Republic
prevent IP risks through close collaboration with law enforcement.
of China , and all other applicable laws and regulations. To operationalize
this commitment, the Company has formulated and implemented
a comprehensive suite of internal policies, including the Walvax
Biotechnology Co., Ltd. Intellectual Property Management Specifications,
the Walvax Biotechnology Co., Ltd. Patent Management Measures, the
including
Impact, Risk, and Opportunity Management
Walvax Biotechnology Co., Ltd. Trademark Management Measures, the
Walvax Biotechnology Co., Ltd. Copyright Management Measures , and
the Walvax Biotechnology Co., Ltd. Guidelines for Legal Risk Review
competition, clinical trial uncertainties, intellectual property issues, regulatory shifts, and financial exposures. In this model, the Scientific
of Intellectual Property in External Publicity Materials . In 2025, this
and Committee conducts forward‑looking assessments of technology trends, rigorously evaluates R&D projects, and identifies technical risks.
framework was further strengthened by the addition of the Walvax
Concurrently, cross‑functional teams from R&D, marketing, procurement, production, pharmacovigilance, and other areas collaborate to
Biotechnology Co., Ltd. Vaccine R&D Project Management Measures,
execute risk controls at the project level, keeping R&D‑related risks within manageable bounds.
ensuring comprehensive coverage of all aspects of intellectual
utility model patents granted in China
property creation, management, utilization, and protection. The Legal
Affairs Department at the Company's headquarters is responsible for
centrally managing all intellectual property matters across the Group. Risk Identification and Risk Monitoring and
The Department offers specialized IP courses and conducts annual Risk Management and Response
Assessment Control
professional training on patent application, search, and analysis. The Valid patents granted in total
Company subscribes to global patent databases to enhance its pre-filing
search capabilities and ensure professional, efficient, and standardized
IP management. While diligently safeguarding its own intellectual
R&D project lifecycle, the
The Company dynamically adjusts its risk
management strategies in response to changes
The Company has
established a regular
property rights, the Company is equally committed to respecting Company closely monitors in the internal and external environment. For monitoring mechanism
the intellectual property of others. Robust patent risk management Number of valid invention patents market trends, technological technological uncertainty, it combines diversified for R&D risks. It
procedures are in place to proactively avoid any infringement. advancements, and policy technology roadmaps with a market-demand- periodically reviews the
The Company has published the Walvax Biotechnology Intellectual
Property Handbook to disseminate foundational IP knowledge and
updating its comprehensive
risk register.
oriented approach, consistently iterating to
minimize the risk of innovation divergence. For
intellectual property risks, it conducts FTO analyses
risk register, evaluates
the effectiveness of
response strategies, and
reinforce understanding of relevant internal systems and standards. for all R&D projects and integrates a dedicated dynamically updates risk
including
IP legal risk review node into all relevant contract levels and corresponding
approval processes. For open collaborations, it
rigorously evaluates the reputation and R&D
capabilities of potential partners, protecting the
mitigation measures.
This ensures that risk
management remains
Company's core interests through carefully drafted fully aligned with the
and
confidentiality agreements and collaborative terms. evolving R&D landscape.
Indicators and Targets
Valid trademark registrations
Intellectual Property Risk Prevention
A dedicated intellectual property legal risk control review step has
been integrated into all relevant contract approval processes. The Valid domestic trademark registrations
Intellectual Property Management Department is responsible for
reviewing IP-related clauses in contracts to mitigate the risks of
intellectual property infringement by or against the Company. Key
preventive measures include: conducting pre-filing novelty searches
Target achieved
R&D personnel: 206, accounting for 10.4% of the total workforce; R&D
and analyses for technologies intended for patent applications capabilities investment during the year: RMB 381 million, accounting for 15.76%
Valid overseas trademark registrations of operating revenue; Ranked 2nd in the 2025 Yunnan Top 20 Private
to improve grant rates; performing Freedom-to-Operate (FTO)
analyses for all R&D projects to avoid potential infringement risks; Enterprises for Innovation Capability
securing trademarks in advance for both marketed products and
those nearing launch to ensure brand protection; and strictly
controlling IP infringement risks in all external publicity materials Target achieved
Increase the number of patent applications
through a formal risk approval procedure, ensuring full compliance
and granted patents
throughout the design, distribution, and use process. Patents newly granted during the year: 9
Walvax Biotechnology 2025 Sustainability Report Innovation-Driven Approach to Enhancing Health Accessibility
Excellence in Quality R&D Quality Management
In accordance with the Chinese Pharmacopoeia , ISO 9001, GMP, ICH Q10, and other relevant standards and regulations, Walvax
Biotechnology has developed and consistently refines the R&D Project Quality Management Procedure and the Procedure for Research
Governance on Critical Quality Attributes (CQAs) and Critical Process Parameters (CPPs). These guidelines address multiple critical dimensions,
including knowledge management, project management, quality control and assurance, quality risk management, data integrity
management, and clinical management. The Company consistently strengthens end-to-end standardization of R&D processes, as well
Walvax Biotechnology is guided by its core quality principle: "Life is paramount, and quality outweighs all; through continuous as its mechanisms for quality supervision, evaluation, and improvement, thereby ensuring compliance, scientific rigor, and full traceability
improvement, every detail must stand the test of conscience." The Company strictly complies with all applicable laws, regulations, throughout all phases of its R&D projects.
guidelines, and standards, including the Drug Administration Law of the People's Republic of China , the Vaccine Administration Law of
the People's Republic of China , the Good Manufacturing Practice of Medical Products , the Good Supply Practice of Medical Products , as
well as requirements from the International Council for Harmonisation of Technical Requirements for Pharmaceuticals for Human Use (ICH), The Company continues to strengthen its quality review mechanisms. Dedicated quality control checkpoints are strictly
the World Health Organization (WHO), the Pharmaceutical Inspection Co-operation Scheme (PIC/S), the European Union (EU), and the enforced at key project stages, including protocol review, raw data verification, interim analysis, and final project audits,
International Organization for Standardization (ISO). To formalize this commitment, the Company has formulated and consistently refines to enhance scrutiny. Targeted project audits and on-site experimental inspections are conducted to proactively identify
a series of internal management systems, including the Walvax Biotechnology Quality Manual , the Walvax Biotechnology Production issues and drive improvement, ensuring quality is embedded at every stage of R&D.
Quality Management Guidelines , and the Quality Risk Management Inspection Guidelines (Trial) . These documents clearly define quality
management requirements across the entire product lifecycle, establishing a forward-looking quality management system centered on
trust assets and ensuring consistently stable product quality.
The Company implements a regular quality analysis meeting mechanism to promptly address any quality-related issues,
The Company has established a dedicated Quality Management Committee, directly led by the Vice Chairman of the Board. The Quality fostering a culture where all employees prioritize quality in their daily work. In 2025, Shanghai Zerun convened six such
Management Center—one of the Company's four core capability platforms—serves as the operational core. Around this center, a quality analysis meetings.
closely coordinated, flexible, and efficient quality management system and a total quality management (TQM) platform have been
built, covering all business lines. Quality management indicators are integrated into core performance assessments to ensure products
are safer, more effective, more controllable, more accessible, and more advanced, reinforcing the Company's aspiration to be the most
trusted partner. The Company has established a structured training system for R&D personnel. Annual training on R&D capability
enhancement and compliance is organized based on the annual quality management training plan. This includes
targeted training and assessments on topics such as R&D data integrity and Quality by Design (QbD) concepts,
illustrated with practical case studies. The training program achieves 100% coverage of all R&D personnel, consistently
Strategy and Approach enhancing their professional skills, awareness of standardized operating procedures, and ability to manage complex
research tasks.
Lifecycle Quality Management
In 2025, R&D and quality management training sessions covered several key areas, including the GMP annexes on
Walvax Biotechnology has elevated quality management to a strategic
pharmaceutical excipients and packaging materials, an analysis of updates in the Chinese Pharmacopoeia (2025 Edition),
pillar for building trust as a strategic asset and strengthening its core
data integrity, deviation management, and change control. The R&D segment focused on key aspects of pharmaceutical
competitiveness. The Company has established a high-standard quality
Yuxi Walvax, the Company's primary production changes, technical guidelines for adjuvant research in preventive vaccines, and regulations such as the annex on sterile
management system covering the entire product lifecycle to ensure
base, achieved drugs. The clinical segment conducted training on ICH E6 (R3) and related topics. By tracking regulatory developments in
product safety, efficacy, and quality controllability. The Company's
real time and providing tiered, specialized, and targeted training, the Company ensures that all R&D processes remain fully
product quality registration standards fully meet EU requirements.
ISO 9001 Quality Management aligned with the latest regulatory requirements, guaranteeing high-quality and robust progress in its R&D activities.
Vaccine manufacturing adheres to GMP standards established by
System certification
China, ICH, WHO, the European Medicines Agency (EMA), and PIC/
S, safeguarding public health with exceptionally high product quality.
The Company is also advancing its "Digital Walvax, Intelligent Walvax,
and Smart Walvax" initiative. This includes the gradual implementation Yuxi Zerun, the Company's primary production
Clinical Trial Quality Management
of automated data collection throughout the full process, covering base, achieved
production, testing, materials, and equipment, to ensure that all data
are true, accurate, complete, and traceable. On this basis, the Company ISO 9001 Quality Management Staying abreast of evolving policies, regulations, and industry trends, Walvax Biotechnology consistently enhances its clinical trial
is transitioning toward data-driven quality management, including the System certification quality management systems. The Company is actively building a professional, agile, and closed-loop clinical trial quality management
use of big data for quality trend forecasting and analysis. system. The core principles of "quality by design" and "risk proportionality" are embedded from the outset in trial protocol design and
overall organizational planning, enabling the systematic identification of critical quality factors. In terms of process management, a risk-
based dynamic management mechanism has been established, strengthening end-to-end control across the "identification-root cause
analysis-correction-prevention" cycle. Root cause analyses are conducted for significant and recurring issues, and corrective actions are
standardized and incorporated into a central knowledge base for future reference. In terms of personnel empowerment, the training
Building an Excellent Quality Management System Covering the Entire Vaccine Product Lifecycle system has been upgraded to focus on scenario-based capability building, with a strong emphasis on practical, hands-on training. This
approach facilitates a fundamental shift: from reactive post-hoc inspection to proactive prevention throughout the process, and from
decentralized control to systematic management. This transformation comprehensively enhances both the efficiency and source data
quality of clinical R&D. To ensure objectivity in clinical study evaluations, the Company engages independent third-party statistical units
Vaccine R&D Technology Transfer Commercial Production Product Discontinuation
to conduct analyses for all registered clinical trials. Based on risk assessments conducted throughout trial implementation, third-party
monitoring and/or auditing are introduced as needed to reinforce compliance and ensure data integrity.
Walvax Biotechnology 2025 Sustainability Report Innovation-Driven Approach to Enhancing Health Accessibility
Production Quality Management Quality Testing Management
Walvax Biotechnology has established a comprehensive set of internal production management systems, including the Facility and To proactively prevent potential product quality issues, Walvax Biotechnology has implemented rigorous quality control measures at
Infrastructure Management Control Procedures , the Equipment Management Control Procedures , the Material Management Control every stage of its product testing processes, thereby solidifying the foundation for uncompromising product quality.
Procedures , the Production Management Control Procedures , and the New Product and Process Industrialization Implementation Control
Procedures . These documents govern all aspects of production, including facilities and equipment, materials and product release, quality
assurance, quality control, validation and verification, and packaging and labeling. The Company has established stringent internal
Internal Testing
quality control standards and detailed SOPs, along with robust control strategies that are carefully matched to product performance
characteristics. These measures enable real-time monitoring of production processes and precise control of critical process parameters
and quality attributes, thereby consolidating the Company's quality competitiveness through strong, systematic control. The Company strictly complies with the requirements of Chinese GMP, WHO GMP, EU GMP, ICH, and all other relevant regulations and
industry standards. A robust quality control system has been established to support this commitment. In strict accordance with vaccine
product quality standards, every batch of vaccine products—including raw materials, excipients, intermediates, packaging materials, and
finished products prior to release—undergoes comprehensive testing and quality control across the entire process, from raw material
In response to the dynamic regulatory environment, the Company has established proactive intake to final product dispatch. Real-time trend analysis and data monitoring are conducted to promptly identify any anomalous data or
monitoring and rapid response mechanisms. Systematic regulatory gap analyses are conducted, and trends, enabling rigorous prevention of potential quality issues before they can arise.
Rapid quality standards and testing methods are efficiently updated to ensure continuous compliance with
Response the latest requirements and development of forward-looking systems. This approach guarantees Furthermore, the Company has established a regular review mechanism for testing data, using data-driven insights to support
product quality while consistently optimizing operational efficiency, creating a remarkable quality continuous improvement. For the same vaccine batch, the Company compares its internal testing data with data from national
compliance advantage and strengthening core competitiveness. laboratories. This serves as a valuable preventive test of the quality testing system itself, allowing for timely correction of any
discrepancies and ensuring the system's ongoing effectiveness.
In 2025, to further enhance laboratory management efficiency and data reliability, the Company implemented a Laboratory Information
Management System (LIMS). The system now hosts over 3,000 testing data records and has demonstrated its capability to robustly
Under the broader "Digital Walvax" strategy, the Company is deeply advancing the informatization,
support the stable operation of daily testing activities. This implementation has significantly improved the standardization, transparency,
digitization, and intelligentization of its production and manufacturing operations. Key initiatives
and traceability of all testing processes.
Intelligent include achieving intelligent control in workshop manufacturing, full transparency in production
Manufacturing processes, numerical control of manufacturing equipment, and integration of all production
information. This ensures that production operations remain under controlled conditions and enables
the rapid identification of areas for improvement, leading to optimized quality control strategies.
External Testing
National lot release authorities review the production and testing documentation for each finished product batch and conduct
In accordance with the Chinese Pharmacopoeia , WHO, and ICH standards, the Company has built and consistently refines its vaccine
independent testing of samples. Every finished product batch is tested by the national lot release authority, confirmed to meet all
lifecycle safety management and impurity control systems. Vaccine safety is ensured through strict raw material quality control, process
required quality standards, and is only released to the market upon formal approval by the Company's Qualified Person. In 2025, the
validation, and safety evaluations. For its microbiome business, the Nutrition Division complies with all relevant standards, including limits
pass rate for national lot release of the Company’s vaccine products was 100%, indicating that product quality remained under control.
for mycotoxins and contaminants in foods, and limits for pathogens in pre-packaged foods. Rigorous hazardous substance prevention
and control procedures are enforced during the product R&D and design phase. A stringent raw material access review mechanism has For all contract testing activities, the Company has established comprehensive SOPs. In accordance with regulatory requirements,
been established, with each batch of raw materials tested for heavy metals, mycotoxins, and pathogenic bacteria to ensure product on-site audits of each contract service provider are conducted, covering their quality management system, personnel qualifications,
safety. equipment and instruments, laboratory facilities, data integrity practices, and computerized systems. This rigorous oversight ensures
that all contract testing activities are properly controlled and fully comply with Chinese GMP, WHO GMP, EU GMP, and all other relevant
regulations.
Distribution, Storage, and Transportation Management
Preventive Testing
In compliance with the Management Specification for Vaccine Storage and Transportation and all other relevant regulatory requirements,
Walvax Biotechnology has established a stringent quality management system governing the distribution, storage, and transportation For innovative products, new processes, new equipment, or any emerging quality and safety concerns, the Company conducts
of its products. Leveraging digital technologies, the Company has also developed a comprehensive, end-to-end vaccine traceability meticulous reviews and comprehensive risk assessments from multiple dimensions, including GMP compliance, change management,
and control system. The Company adopts a hybrid distribution model that combines in-house storage and distribution with outsourced maintenance and calibration schedules, and deviation handling procedures. Any identified potential quality risks are addressed through
services provided by qualified partners with established cold chain capabilities to enhance distribution capacity. The Company conducts pre-validation and preventive testing. Corresponding quality control plans are developed and implemented to ensure that all processes
regular quality audits of logistics service providers to ensure the stable, timely, and safe supply of vaccines. and equipment operate stably and that all critical quality elements are properly controlled before full-scale production commences.
Walvax Biotechnology 2025 Sustainability Report Innovation-Driven Approach to Enhancing Health Accessibility
● The Company develops a validation plan annually to conduct preventive testing and validation Improving the Pharmacovigilance Management System
of critical process parameters (CPPs) and critical quality attributes (CQAs). This enables the early ● In 2025, the Company continued to refine its pharmacovigilance system documentation, consistently
detection of potential quality risks, ensuring vaccine safety, efficacy, and robust quality control. enhancing the system's operational effectiveness to ensure compliant pharmacovigilance activities
throughout the entire vaccine lifecycle.
● Key documents, including the Equipment Preventive Maintenance Management Procedure ,
● Updates and upgrades were made to key processes and systems, including the working mechanism
the Equipment Preventive Maintenance Standard Operating Procedure , and the Production of the Vaccine Safety Committee, risk management procedures, and protocols for vaccine safety
Preventive Equipment/Instrument Criticality Assessment Form , have been established to standardize incident emergency response. New SOPs were added for post-marketing safety evaluation and quality
Testing for investigation of adverse events following immunization (AEFI).
all preventive maintenance activities. Based on each piece of equipment's specific use,
Internal
characteristics, historical performance, risk analysis, and supplier recommendations, detailed
● AI tools were utilized to build a pharmacovigilance regulatory knowledge base, covering Walvax
Quality Risks Biotechnology's headquarters and all subsidiaries. A dynamic update mechanism was established,
preventive maintenance plans are developed and rigorously executed to reduce quality risks. In enabling pharmacovigilance personnel to leverage AI tools to support learning and stay up to date with
● Corresponding testing is conducted on all intermediate products. Through continuous process
control, potential issues are identified and resolved early in the production cycle, effectively Strengthening Pharmacovigilance Risk Control
supporting stable and reliable final product quality.
● The Company implemented the Risk Signal Detection and Processing Management Procedure and the
Risk Assessment/Control Management Procedure . These enable the systematic identification, continuous
tracking, and in-depth analysis of potential safety risks. Regular reviews of safety data are conducted,
● The Company consistently monitors developments in industry regulations and guidelines, and product risk management plans are updated accordingly, effectively safeguarding the health
maintaining a comprehensive List of Chinese Pharmaceutical Regulations and a dedicated and interests of vaccine recipients. In 2025, the Company completed 31 safety summary reports and
maintained a 100% completion rate for risk management plan updates.
vaccine regulation management platform. Regular regulatory gap analyses are conducted, and
● Regular internal audits of the pharmacovigilance system are conducted to assess its suitability, adequacy,
appropriate corrective and preventive actions (CAPA) are initiated to ensure that all identified and effectiveness. A rectification tracking mechanism has been established to ensure closed-loop
Preventive gaps are systematically tracked and effectively controlled, thereby proactively mitigating management of identified issues and drive continuous improvement. The Company actively cooperates
Testing for with pharmacovigilance inspections conducted by the Yunnan Provincial Center for Drug Evaluation
regulatory compliance risks.
External and the National Center for Vaccine Inspection, with all inspection results fully meeting regulatory
Quality Risks ● The external environment is closely monitored for any emerging quality and safety issues. Upon requirements.
identification of any potential concern, immediate measures are taken to ensure product quality
and safety. These measures include prompt assessment and investigation, risk determination,
and the implementation of appropriate corrective and preventive actions, effectively mitigating Promoting Training Quality
any potential quality risks.
● An annual training plan is developed and implemented, covering pharmacovigilance regulations,
documentation, and specialized skills. Training effectiveness evaluations are conducted to ensure quality
and impact. In 2025, the pharmacovigilance department achieved 100% execution of its annual training
Product Traceability plan, with all training assessments yielding satisfactory results.
● The Company actively participates in professional training courses, public seminars, and academic
exchange activities organized by government departments and industry associations. This external
Walvax Biotechnology has formulated internal guidelines, including the Operating Procedures for the Drug Traceability System (“Ma training introduces new management concepts, technologies, and methodologies. All pharmacovigilance
Shang Fang Xin” System), and has established a comprehensive, IT-based vaccine traceability system. This system enables real-time personnel participated in such training, achieving a 100% rate.
inquiry into the production, distribution, inventory, and flow information for every box, carton, and batch of key pharmaceutical products.
It achieves traceability down to the smallest packaging unit throughout the entire production and distribution process, consistently
enhancing vaccine quality and safety assurance levels. For further details, please refer to the Walvax Biotechnology Co., Ltd. 2024
Sustainability Report . Adverse Reaction/Event Management
● The Company has established procedures such as the Collection and Handling Procedure for Adverse
Events Following Immunization and the Management Procedure for Collection and Reporting of Adverse
Pharmacovigilance Events Following Immunization . These create standardized and effective channels for collecting adverse
event information. Utilizing pharmacovigilance systems and the MedDRA dictionary, the Company
Walvax Biotechnology's headquarters and its subsidiaries, Yuxi Walvax and Yuxi Zerun, have each established independent conducts supportive analysis and risk monitoring, enabling efficient management of AEFI. This approach
pharmacovigilance departments. Guided by domestic and international pharmacovigilance laws, regulations, industry norms, and ensures proactive, comprehensive, and effective management of suspected adverse drug reaction
information arising from vaccine use.
operational guidelines—including the Good Pharmacovigilance Practice (GVP) , the Measures for the Reporting and Monitoring of Adverse
Drug Reactions , and relevant ICH guidelines—the Company has developed the Walvax Biotechnology pharmacovigilance policies and
● For overseas AEFI, the Company follows the Management Procedure for Handling and Reporting of
Adverse Events Following Immunization Occurring Overseas to promptly verify, record, evaluate, and
a global pharmacovigilance system aligned with international standards. The Company consistently improves its pharmacovigilance
report such events. Targeted measures are taken for AEFI of varying severity levels to ensure full
management systems and monitoring processes, conducts internal audits, actively cooperates with regulatory authorities in compliance with all applicable regulatory requirements.
investigations, and continuously monitors the safety profile of its products once they are on the market. In parallel, the Company
supports the establishment of vaccine safety monitoring systems in countries where its products are distributed, which collect, monitor,
identify, and assess adverse events following immunization (AEFI), contributing to the development of vaccines that are safer, more
effective, more controllable, more accessible, and more advanced. In 2025, Walvax Biotechnology's pharmacovigilance department Management of Safety Emergencies
recorded zero complaints.
● The Company has established comprehensive systems and procedures for managing vaccine safety
emergencies. Specialized emergency plans are developed, and regular drills are conducted. Routine
monitoring and surveillance are strengthened to ensure early detection, early warning, and early
response to any potential risks. Following any incident, the Company promptly organizes a company-wide
summary and evaluation of the emergency response efforts. This helps prevent similar vaccine safety
incidents from recurring and consistently optimizes response procedures, safeguarding the life, health,
and safety of vaccine recipients.
Walvax Biotechnology 2025 Sustainability Report Innovation-Driven Approach to Enhancing Health Accessibility
Product Recall
In compliance with the requirements of the Good Manufacturing Product Recall Decision
Practice of Medical Products and the Provisions for the Level I Recall / Level II Recall / Level III Recall Total quality training hours during the year Coverage rate of employees Completion and pass rates
Administration of Medical Product Recalls , Walvax Biotechnology receiving quality-related training for quality-related training
has established a comprehensive vaccine product recall system
and mechanism. This system covers both marketed products
and investigational drugs used in clinical trials. The Company
Develop Recall Plan
has formulated internal management systems and standards,
Implement Recall
including the Product Shipment and Recall Management
Control Procedure and the Product Recall (Simulated Recall) If Destruction
Management Procedure . Regular simulated product recall If Not
is Required:
Destroy under
Internal Quality Training External Quality Training
Receipt and Handling of Recalled Products Supervision of
exercises are conducted to ensure that, if necessary, the Approved
Drug Regulatory
Company can rapidly and effectively recall any batch of Department or
Notary Institution
product with quality issues or other safety concerns from The Company develops and implements an annual quality The Company has established a regular mechanism for
Recall Summary Report
the market, thereby safeguarding medication safety for the management training plan covering 100% of all employees. incorporating high-quality external training resources. It actively
public. Furthermore, the Company's main production bases, Assessments and evaluations are conducted after each organizes employee participation in regulatory interpretation
Yuxi Walvax and Yuxi Zerun, have both established electronic training session to ensure effectiveness and genuinely enhance and professional skills training provided by leading industry
Submit to Drug
vaccine traceability systems, enabling rapid traceability and Regulatory Department for Review business capabilities. An annual training review is conducted training institutions. Experts in various fields—including
and Evaluation
recall should any issue arise. In 2025, Yuxi Walvax and Yuxi to evaluate the operational efficiency of the training system pharmaceutical quality management, pharmaceutical quality
Zerun each organized a simulated product recall exercise, and drive continuous improvement in the Company's training control, equipment and facilities, and biosafety—are invited to
covering domestic products, international products, and clinical management. In 2025, quality training was delivered on an conduct training sessions, along with professors invited through
Recall Closure
trial products. All simulated recall drills were completed on time, ongoing basis, covering essential topics such as fundamentals university partnerships. This promotes continuous learning and
with both completion and timeliness rates reaching 100%. During of biological products, quality risk management, quality-related helps employees acquire new knowledge.
the reporting period, the Company had no instances of sold or regulations, and quality-related operational requirements. This
shipped products requiring recall for safety or quality reasons. comprehensive program enhanced the quality awareness and
capabilities of all employees.
Quality Culture Promotion
● General quality management awareness training is provided
to all employees to disseminate quality compliance concepts
Products recalled due to safety and health reasons Product recall rate and industry standards. Quality training is also integrated into The Company consistently reinforces quality awareness and
the new employee onboarding curriculum. integrates it into daily work through various means, including
on core quality responsibilities and practical skills for specific
dedicated quality meetings, quality-focused activities, internal
platform communications, and quality awareness display
boards.
roles. This ensures that employees in different functions gain
an in-depth understanding of relevant technical requirements,
specialized SOPs, complex instrument operation, and specific
Quality Culture risk control requirements, thereby strengthening their
professional competence.
Walvax Biotechnology fosters a quality culture grounded in the principle of full participation and individual accountability. The Company
has developed foundational documents, including training manuals and SOPs for training management, to build a systematic quality
management training and certification framework. Differentiated quality training programs are organized for employees in different
roles, and a digital training management system enables real-time monitoring of effectiveness and feedback collection. This approach
Impact, Risk, and Opportunity Management
reinforces the understanding among all employees that they are co-creators of the quality management system. The Company also
champions a transparent quality culture, encouraging employees to proactively raise issues and view every deviation as a valuable
opportunity to improve the quality management system. Quality Risk Management System
Needs- Diverse Robust quality risk assessment and control form the foundation of effective quality management. Walvax Biotechnology proactively
Closed-Loop identifies and controls potential quality issues throughout the entire product lifecycle—encompassing R&D, technology transfer,
Oriented Training
Assessment
Planning Formats commercial production, product distribution and discontinuation. This is achieved by strictly adhering to both external quality
management standards and internal management systems. External standards and guidelines include the ICH Q9 Quality Risk
Management and the TRS 981 - Annex 2: WHO Guidelines on Quality Risk Management. Internal systems and procedures include the Risk
Training needs are systematically A variety of engaging formats are employed, including online Key training programs Management Control Procedures , the Quality Risk Management Specifications , and the Quality Risk Management Inspection Guidelines
collected annually through courses, in-person classes, case study discussions, and are paired with tests or (Trial) . The Company employs a comprehensive set of control methods, including deviation management, change control, quality audits,
surveys, performance feedback, knowledge-sharing sessions. The Company is also advancing practical evaluations to adverse reaction monitoring, product quality review, CAPA management, and personnel training. Advanced risk management tools such
and audit findings to formulate a the digitalization of quality training. Using the Bopu Cloud ensure effectiveness. as Failure Mode and Effects Analysis (FMEA), Fault Tree Analysis (FTA), and Hazard Analysis and Critical Control Points (HACCP) are also
targeted annual quality training Training Management System, it enables personalized Training assessment results utilized. These are supported by dynamic tools like risk registers and risk review sheets to implement closed-loop management, ensuring
plan. learning pathways for employees and provides real-time serve as a key reference the comprehensive identification and control of all quality risks. The Company conducts risk reviews at least once a year to ensure risks
monitoring and feedback on training effectiveness. for position authorization. remain controlled and to drive ongoing improvement.
Walvax Biotechnology 2025 Sustainability Report Innovation-Driven Approach to Enhancing Health Accessibility
Initiation of Quality Risk Management Procedure Quality Audits
To ensure the effective operation of its quality system, the Company conducts regular internal audits covering all business lines,
organized by the Quality Department. Additionally, it undergoes external inspections, including GMP compliance inspections conducted
Public Production Vaccine ……
Utilities Processes Distribution by domestic and international regulatory authorities and audits performed by partners in the course of business cooperation. During the
reporting period, no critical deficiencies were identified. A 100% pass rate was maintained for regulatory inspections, GMP compliance
inspections, and customer quality audits.
Risk Assessment
Internal Quality Audits
Risk Sources Risk Identification Tools
The Company has established the Self-Inspection Management Control Procedure and formulates annual self-inspection plans. At least
one comprehensive quality audit is conducted for each business line every year, achieving 100% coverage of all the Company's business
lines and operating units. In 2025, the internal quality audit covered a wide range of areas, including: organization and personnel, plant
Risk Analysis Tools
facilities and equipment management, materials and products, validation and qualification, documentation management, production
management, quality control and quality assurance, contract manufacturing and contract testing, data integrity management, drug
storage and distribution, and pharmacovigilance.
Unacceptable Outcomes
Assessment Forms Risk Evaluation
For issues or deficiencies identified during quality audits, the Company's Quality Management Center requires each business line to
identify associated product or system risks based on the inspection findings. A risk list and corresponding risk control measures are then
produced and entered into the CAPA system for continuous improvement following the PDCA cycle. Furthermore, the Company conducts
internal GMP compliance audits of its subsidiaries, providing feedback on identified deficiencies through formal internal inspection
Risk Control deficiency notices. For details on supply chain quality audits, please refer to the "Sustainable Supply Chain" section of this report. In
Risk Communication
comprehensive self-inspection and two special self-inspections. No critical deficiencies were identified in any of these inspections. All
Root Causes Control Measures identified issues were entered into the CAPA system for rectification, with 100% of corrective actions successfully completed.
Residual Risk Risk Reduction
External Quality Audits
Standards Risk Acceptance The Company actively undergoes external third-party quality audits, including those from domestic and international regulatory
authorities and business partners. By systematically rectifying any identified deficiencies, the Company consistently improves the
effectiveness of its quality management system. In 2025, Yuxi Walvax and Yuxi Zerun underwent a total of 18 quality audits conducted
by regulatory authorities and other independent third parties, including inspections by the NMPA, the National Center for Vaccine
Improvement
Inspection, the Yunnan Provincial Center for Vaccine Inspection, the Medical Products Administration of Yunnan Province, as well as
Quality Risk Process Outcomes / Outputs quality management system certification audits and GMP compliance inspections by third-party organizations. All identified deficiencies
were entered into the CAPA system. Quality supervisors tracked each item individually to ensure that the corrective and preventive
actions formulated for each deficiency were implemented effectively, enabling continuous improvement of the quality management
system. In 2025, no critical deficiencies were identified during vaccine production and management processes, and no penalties were
Risk Review imposed by any regulatory authorities.
Events Review
Number of Inspection
Audited Entity Inspection Type Inspecting Authority
Inspections Outcome
National/provincial medical
GMP compliance inspection (China) 3 Passed
products administration
Yuxi Walvax
GMP compliance inspections/audits Overseas regulatory
Yuxi Walvax Yuxi Zerun (overseas) authorities
In accordance with its annual quality risk management In line with its annual quality risk management plan, Yuxi National/provincial medical
GMP compliance inspection (China) 3 Passed
plan, Yuxi Walvax has completed comprehensive risk Zerun has conducted comprehensive risk assessments products administration
assessments and established corresponding control and implemented corresponding control measures. Yuxi Zerun
GMP compliance inspections/audits Overseas regulatory
measures. In 2025, a total of 26 departmental/ In 2025, a total of 180 risk assessment reports were 0 /
(overseas) authorities
workshop risk assessment reports were issued, completed. The implemented risk control measures
alongside 18 risk assessment reports for shared primarily focused on equipment qualification, equipment
production lines. A total of 237 individual risk component criticality assessment, production process risk
assessments were registered, and all results were assessment, and personnel management risk assessment.
deemed to be under control.
Walvax Biotechnology 2025 Sustainability Report Innovation-Driven Approach to Enhancing Health Accessibility
Emergency Response and Mitigation Systems
Access to Healthcare
Walvax Biotechnology regularly conducts comprehensive reviews of its quality management system. These reviews cover key elements
such as raw material supply, equipment and facilities, internal and external audits, deviations, and change controls, with the goal of
consistently optimizing the system. Governance
Deviation Management
Improving access to healthcare is a strategic priority for Walvax Biotechnology. The Company's Board of Directors bears ultimate
responsibility for the philosophy, objectives, strategies, framework, and implementation of its commitment to access to healthcare.
The Company has formulated internal normative documents, including the Deviation Management Standards (Trial) and the Standard
The Sustainability Committee, established under the Board, provides comprehensive oversight of the health accessibility strategy's
Operating Procedure for Deviation Handling . These require in-depth investigation, evaluation, and analysis of the root causes of all
advancement. The Health Accessibility Working Group is responsible for formulating and driving the implementation of specific health
deviations, as well as the formulation of appropriate corrective and preventive actions. The deviation procedures apply to all quality-
accessibility plans. The Company has developed a robust framework of policies and systems related to health accessibility, including
related deviations involving the Company's facilities and equipment, products, materials, procedures, processes, standard methods,
the Walvax Biotechnology Co., Ltd. Health Accessibility Policy, the Walvax Biotechnology Co., Ltd. Fair Pricing Policy, and the Walvax
environmental controls, and document implementation. During the reporting period, all deviations were reported, recorded, investigated,
Biotechnology Co., Ltd. Statement on Addressing Antimicrobial Resistance. These policies integrate relevant requirements into the
evaluated, and resolved according to established procedures. In addition, the Company has established a regular deviation review and
Company's operations, ensuring its actions are aligned with the UN Sustainable Development Goal (SDG) of "Good Health and Well-
analysis mechanism. This enables the implementation of targeted improvement measures and risk controls, driving the continuous
being."
improvement of the quality management system.
Product Quality Review
Board of Directors
The Company has formulated internal normative documents such as the Product Quality Review Management Procedure . It regularly
reviews product production processes and workflows, as well as the ongoing suitability of current quality standards for raw materials, Bear ultimate responsibility for the Company's health accessibility philosophy, objectives, strategies, framework, and
excipients, and finished products. This systematic review enables the timely identification of adverse trends and provides data-driven implementation outcomes.
guidance for improving the Company's products and process controls.
Sustainability Committee
Business Continuity Management
Review the health accessibility strategy and objectives, approve implementation plans, and drive the achievement of
After years of strategic development, Walvax Biotechnology has established a comprehensive, end-to-end business continuity targets according to plan, with regular performance reviews.
management system across key areas such as R&D, procurement, manufacturing, logistics, storage, and transportation. This system
Health Accessibility Working Group
covers the entire chain from suppliers to the Company and extending to customers. The Company has enhanced a series of measures,
including emergency management protocols for unexpected events, hazard identification and follow-up rectification procedures, and
regular inspection and patrol routines. These measures enhance the Company's business continuity management capabilities and its
Formulate, execute, evaluate, and optimize health accessibility implementation plans. Promote the achievement of
ability to respond effectively to unexpected events, ensuring the continuity of production operations and the safety of all employees. For
health accessibility goals through multi-departmental collaboration. Report work progress and results to the Sustainability
details on supply chain resilience, please refer to the "Sustainable Supply Chain" section of this report.
Committee, ensuring all activities remain aligned with the overarching health accessibility objectives.
Indicators and Targets
Strategy and Approach
Indicator/Target Achievement Status in 2025
Zero Major product quality incidents
Guided by its founding principle of "Helping everyone live a healthy life," Walvax Biotechnology takes innovation as its driving force
Preventive maintenance plan completion rate: 100% and high-quality vaccine products as its foundation. The Company is dedicated to building a self-reliant and secure vaccine industry. By
Inspection plan completion rate: ≥ 98%
promoting local cooperation, enhancing product accessibility and affordability, and strengthening public health capacity in the regions
where it operates, the Company is building a robust and sustainable business model to extend the benefits of vaccines to more people
Revalidation plan completion rate: 100% worldwide. Walvax Biotechnology has formulated a five-year health accessibility strategy. Leveraging its R&D and product advantages,
the Company adopts a diversified business portfolio and pursues continuous international expansion to better serve global public health.
At least 1 Comprehensive self-inspections is conducted annually
It actively seizes opportunities presented by national strategic emerging industries, expanding into new fields such as microbiome and
Deviation handling rate: 100% biomanufacturing. By fully capitalizing on its existing industrialization capabilities and resource integration advantages, the Company
Target achieved consistently broadens its innovative product pipeline and strives to build a comprehensive "Health and Wellness + biomanufacturing"
First-pass CAPA completion rate: ≥ 80%
industrial platform, making health more accessible for all.
Product release pass rate: 100%
Market surveillance pass rate: 100%
Regulatory inspection pass rate: 100%
Pass rate for GMP compliance inspections and customer quality audits: 100%
Zero product recalls during the year
Walvax Biotechnology 2025 Sustainability Report Innovation-Driven Approach to Enhancing Health Accessibility
Expanding Vaccine Access to More Regions Enhancing Local Production Capacity Walvax model of "Chinese technology, local production,"
under which Walvax contributes technological expertise and
partners establish local manufacturing capabilities. Building
Walvax Biotechnology is accelerating its international expansion. vaccines to low- and middle-income countries. In 2025, the Walvax Biotechnology has actively promoted the local on its extensive experience in technology transfer, the
The Company consistently broadens its international market Company actively participated in key global forums, including production of its vaccine products. The Company has engaged Company continues to expand the depth and breadth of its
presence through multiple, coordinated efforts, including the Third World Local Production Forum organized by WHO, the in discussions on local cooperation models with numerous overseas collaborations. In 2025, the local production and
talent cultivation, product international registration and clinical UNICEF Annual Meeting, the DCVMN Vaccine Manufacturers countries, including Indonesia, Morocco, and Egypt, developing a technology transfer of multiple products, including the 13-valent
trials, obtaining international certifications, and establishing Annual Meeting, and the World Health Assembly. It collaborated range of localization approaches. Its procedural framework has pneumococcal conjugate vaccine, progressed smoothly. The
cooperative production partnerships. Its operations span China closely with international organizations such as WHO, UNICEF, been consistently refined, including the Management Procedure Company successfully completed two technology transfer
and international emerging markets, including Southeast Asia, and PAHO, exchanging valuable experiences on vaccine for Due Diligence, Initiation, and Execution of Overseas projects and initiated five more. Additionally, it began exploring
South Asia, Central Asia, North America, North Africa, and West localization with governments and vaccine manufacturers from Technology Transfer Projects , the Standard Operating Procedure new business models for overseas R&D training cooperation,
and Central Africa, where the Company continues to provide low- and middle-income countries, and contributing industry for Overseas Analytical Method Transfer Projects , and the consistently broadening the scope of its international localization
high-quality, cost-effective, and accessible vaccine products. perspectives to discussions on the future establishment of a Standard Operating Procedure for Overseas Production Process efforts.
In 2025, it focused on expanding vaccine markets in Belt and global pathogen access and benefit-sharing (PABS) mechanism. Transfer Projects . These efforts are designed to stimulate the
Road countries and regions, with a particular emphasis on low- development of local vaccine industry value chains and ensure
and middle-income countries in Asia, Africa, and the Americas. that innovative vaccines benefit more people.
Priority was given to addressing the public market demand
in these countries for pneumonia, meningococcal, and HPV Leveraging Yunnan's regional advantages, its own technological
vaccines, while also responding to emergency procurement strengths, and proven project management capabilities in Selected for the 2025 ZGC International
needs and private market opportunities within the regions. For technology transfer, the Company is deepening market and Technology Trade Fair - Top 100
countries expressing a desire to build local production capacity, technical cooperation with South and Southeast Asia. It is International Technology Trade
the Company provides technical cooperation services to support advancing vaccine local production partnerships in countries Innovation Projects list
the independent establishment of local vaccine manufacturing, such as Indonesia, while actively exploring a distinctive
jointly addressing the challenges posed by priority diseases. As
of the end of 2025, the Company's vaccine products had been
exported to 26 countries and regions.
The Company consistently improves its international registration Formally signed an agreement with Pharmaniaga Lifescience Sdn. Bhd. (PLS) of Malaysia to jointly advance
systems while strengthening exchanges and cooperation with the technology transfer, local production, and commercialization of the PCV13 vaccine.
global health organizations and research institutions, including
the Gates Foundation, CEPI, PATH, WHO, UNICEF, and Gavi. In
Showcasing at CPHI Germany 2026
doing so, it is committed to providing affordable, high-quality
Case Launch of Egypt's First Technology Transfer Project
The Company's products have been exported to a cumulative total of 26 countries and regions, with product
registrations initiated in 23 countries. First-time cooperation agreements were signed with 7 countries, including Walvax Biotechnology actively supports the African Vaccine Manufacturing Accelerator (AVMA) initiative launched by the Africa Centres
Malaysia and Chile. The first export delivery of the 23-valent pneumococcal polysaccharide vaccine to El Salvador was for Disease Control and Prevention (Africa CDC). As a long-term partner of Egypt's Expanded Programme on Immunization (EPI), the
completed, marking the official entry of the Company's vaccine products into the Latin American market. Company has steadily supplied vaccine products to the country for eight consecutive years since 2018. In November 2025, the 13-valent
pneumococcal conjugate vaccine received marketing authorization from the Egyptian Drug Authority (EDA).
Leveraging its extensive experience in technology transfer, the Company signed a Memorandum of Understanding on vaccine local
Cumulative exports of finished products to developing countries and regions exceeded 64 million doses, and bulk production with Egyptian pharmaceutical companies Vacsera and VBC in 2024. This collaboration aims to advance the technology
drug substance exceeded 3,800 liters. In 2025, exports of finished products exceeded 8 million doses, and bulk drug transfer and local production of the Group A and Group C polysaccharide vaccine, the 13-valent pneumococcal conjugate vaccine, and
substance exceeded 2,900 liters, achieving a 100% delivery rate. the bivalent HPV vaccine. In 2025, the first technology transfer project in Egypt was officially initiated. The Company deployed specialists
and project managers to the site to provide on-the-ground guidance, conduct comprehensive gap analyses, and assist in establishing
production and quality control systems that meet international standards. Building upon this foundation, the Company will further
develop R&D capabilities for a series of vaccine products, empowering the creation of an integrated vaccine ecosystem encompassing
industry, academia, and research, and supporting Egypt's strategic goal of becoming a regional vaccine manufacturing hub in Africa.
Two products were included in the Expanded Programme on Immunization (EPI) of Morocco, Indonesia, and Egypt.
Case Establishment of an Innovative Vaccine Manufacturing Base in Southeast Asia
In 2025, the Company completed its first international aid project and participated in its first international aid training
Since 2021, the Company has entered into local cooperation agreements with Indonesian pharmaceutical companies for key products,
program, opening new pathways for its international business development.
including the 13-valent pneumococcal conjugate vaccine and the bivalent HPV vaccine. These projects support Indonesia in building an
integrated platform for innovative vaccines spanning R&D to manufacturing, as well as a comprehensive vaccine evaluation system,
while contributing to the establishment of a global center for innovative vaccine R&D and production and expanding the reach of "Made
in Indonesia" vaccines within ASEAN and Muslim-majority countries. In 2025, the local production technology cooperation project for
Following the signing of a long-term supply agreement with UNICEF for its bivalent HPV vaccine, the the 13-valent pneumococcal conjugate vaccine bulk drug substance in Indonesia was successfully completed. Exports of the bulk drug
Company became a supplier for UNICEF’s bulk procurement of HPV vaccines, paving the way for substance to local partners have commenced, and the locally made products have obtained Halal certification from MUI, contributing to
distribution to nearly 100 countries. improved health and well-being in the region.
Walvax Biotechnology 2025 Sustainability Report Innovation-Driven Approach to Enhancing Health Accessibility
Improving the Vaccine Supply Chain Enhancing Product Affordability
Walvax Biotechnology actively responds to global vaccine accessibility initiatives and is deeply engaged in strengthening vaccine supply To foster a fair and equitable marketing environment and extend the benefits of high-quality vaccine products to a wider population,
chain capacity in developing countries. The Company consistently optimizes its vaccine supply chain system and, through systematic Walvax Biotechnology has formulated the Walvax Biotechnology Co., Ltd. Fair Pricing Policy. The Company adheres to the World
collaboration and technical support, assists local partners in enhancing their capabilities in product transportation and storage Health Organization's principles on fair pricing, adopting a value-based, fair, and transparent product pricing strategy that ensures
management. This ensures a compliant, safe, and efficient supply chain, safeguarding vaccine safety and accessibility. product quality while fully reflecting affordability considerations. The Company explores sustainable pricing models in various markets,
establishes appropriate pricing for domestic and international markets, and extend its pricing policies to downstream distributors to
ensure effective implementation of pricing policies and product accessibility, benefiting a wider population. Our comprehensive pricing
model takes into account global market demands, considering vaccine R&D and production costs, market supply and demand, and
The Company adopts a “trunk transportation + regional warehousing + regional distribution” logistics model. pricing of comparable vaccine products. The Company adopts a tiered pricing strategy, offering more affordable prices to low-income
Under the “regional warehousing + regional distribution” approach, regional distributors deliver vaccines countries and populations and expanding access to vaccine innovation in underserved regions. The Company’s fair pricing principles are
In the detailed in the Walvax Biotechnology Co., Ltd. Fair Pricing Policy.
from regional warehouses to counties and districts, expanding nationwide delivery coverage and ensuring
domestic
timely access to vaccines in remote areas, thereby improving accessibility. All products are fully traceable
market
through electronic regulatory codes, enabling end-to-end visibility from production to final use, and ensuring
Domestic Market
the timeliness and safety of vaccine distribution, with zero complaints related to supply chain security.
In the domestic market, the Company complies with relevant laws and regulations, ensuring fair and reasonable pricing for its high-
quality vaccines, with consistent product pricing nationwide. Prices are open and transparent across all regions and accessible on
provincial platforms. The Company balances scale and economic efficiency, supplying vaccine products at more affordable prices. For
The Company establishes clear transportation and storage requirements prior to shipment and utilizes
products awarded in government tenders, the Company promptly publishes the information on the central government's procurement
In overseas temperature data loggers for real-time monitoring throughout the entire process to ensure controlled
website as required and consistently monitors end-market prices across the supply chain to prevent price gouging and remain subject
markets product quality. During delivery, while ensuring product safety and efficacy, the Company optimizes
to public oversight. As of the end of the reporting period, three of the Company’s marketed vaccines are included in China’s National
transportation solutions to reduce costs and enhance supply chain resilience and reliability.
Immunization Program (NIP). Their procurement prices are regulated by the government, and they are provided to residents free of
charge. In 2025, the Company strictly complied with NIP vaccine supply requirements, continuously strengthening production planning,
quality control, and logistics support to ensure the timely and safe supply of NIP vaccines. The procurement volume for Group A and C
meningococcal polysaccharide vaccines exceeded 4.5 million doses.
Supporting Post-Marketing Pharmacovigilance
The Company actively supports national efforts to include HPV vaccines in China’s National Immunization Program (NIP),
Walvax Biotechnology has established a Vaccine Safety Committee and continues to advance a pharmacovigilance system covering advancing market access for its bivalent HPV vaccine and working closely with disease control authorities at all levels to
the entire product lifecycle. The Company collects, monitors, identifies, and evaluates adverse events following immunization (AEFI) support tendering and procurement, supply assurance, and vaccination services. To enhance vaccine accessibility, the
on a global scale to ensure the safety of its vaccine products throughout their lifecycle. Recognizing the potential resource and Company actively participates in local government public health initiatives by offering preferential pricing. In 2025, the
technical constraints faced by developing countries, the Company has developed standard operating procedures (SOPs) for overseas bivalent HPV vaccine was included in government-funded public welfare programs in Anhui and Yunnan, providing free HPV2
pharmacovigilance while expanding its international business. It collaborates with local partners to support the establishment of robust vaccination for eligible girls. In seven provinces, including Hebei, Sichuan, Liaoning, and Shanxi, vaccination subsidy programs
pharmacovigilance systems in these countries, ensuring that the safety of vaccines is adequately monitored and evaluated after market were implemented for girls aged 9–14, under which a two-dose schedule was provided with the second dose free of charge.
entry. This enables timely and appropriate responses to safety issues, safeguarding the health and safety of vaccinated populations.
In 2025, the Domestic Marketing BU collaborated with local Centers for Disease Control and Prevention (CDC) to carry out multiple
post-marketing safety observation studies for various products, supporting the continuous improvement of post-marketing evaluation
methods and technologies.
Overseas Markets
The Company has established standard operating procedures (SOPs) for pharmacovigilance audits and formed In overseas markets, the Company respects local pricing rules and tax policies. The Company has established the Walvax Biotechnology
a dedicated audit team. In accordance with audit plans, regular internal and external pharmacovigilance audits Co., Ltd. Overseas Sales Pricing Management Measures and formulates more accessible pricing strategies based on the specific
are conducted. In 2025, pharmacovigilance audits were carried out for four overseas distributors, assessing the needs and levels of economic development in different countries and regions. The Company adopts a differentiated and tiered pricing
effectiveness of pharmacovigilance system operations, potential risks, and areas for improvement. For identified approach, taking into account factors such as economic development levels, local vaccine production and supply conditions, public
deficiencies, corrective and preventive actions (CAPA) are developed and implemented as required. The Company also healthcare expenditure, out-of-pocket healthcare costs, vaccine procurement budgets and policies, as well as the overall benefits of
supports local partners in developing mature pharmacovigilance management systems and mechanisms, contributing vaccines to target populations and healthcare systems. While ensuring reasonable profit margins, product quality, and a stable supply,
to the enhancement of post-marketing pharmacovigilance capacity in developing countries. the Company offers more affordable prices to countries and populations with lower ability to pay. For example, taking into account the
fiscal capacity and vaccination benefits in lower-middle-income countries in regions such as Africa, the Company supplies vaccines for
Egypt’s Expanded Programme on Immunization (EPI) at prices lower than those in other international markets.
The Company recognizes the critical role of centralized procurement mechanisms in reducing costs, increasing vaccination coverage,
The Company signs Safety Data Exchange Agreements (SDEAs) with service providers and partners to establish and improving public health outcomes. In 2025, the Company further expanded cooperation with public health systems in a broader
communication mechanisms and operational frameworks between pharmacovigilance teams, clearly defining data range of countries. The Company remained included in the national immunization programs of Morocco and Egypt, became a vaccine
exchange standards and joint monitoring requirements. After product launch, pharmacovigilance responsible persons bulk supplier to Indonesia’s National Immunization Program (NIP), and actively participated in public-sector vaccine procurement
are designated in collaboration with local partners. Throughout the product lifecycle, safety data collected are programs in multiple countries, including the Philippines and Egypt. In addition, we continue to expand partnerships with other countries,
systematically analyzed, evaluated, and reported in a timely manner, ensuring compliance with local and international regions, and international organizations to further increase the reach of our vaccine products. In 2025, the Company signed a long-term
pharmacovigilance standards and enabling continuous improvement through monitoring and feedback. In 2025, the supply agreement with UNICEF for HPV vaccines and officially became a UNICEF supplier, strengthened engagement with international
Company exchanged safety data 16 times with overseas partners, with no new safety signals related to vaccine use organizations such as the Bill & Melinda Gates Foundation (BMGF), PATH, and the Clinton Health Access Initiative (CHAI), conducting
identified, demonstrating a favorable safety profile. technical exchanges on new vaccine development and cost optimization to enhance the accessibility of existing products, with the aim
of reaching more populations in need.
Walvax Biotechnology 2025 Sustainability Report Innovation-Driven Approach to Enhancing Health Accessibility
Enhancing Public Health Capabilities Vaccine Donations
In 2020, the World Health Organization (WHO) launched the Global Strategy to Accelerate the Elimination of Cervical Cancer . At the
Walvax Biotechnology regularly conducts professional vaccine training, public health education, and healthcare-related philanthropic Gavi Pledging Meeting and the Global Vaccine Summit held the same year, Walvax Biotechnology committed that, upon obtaining WHO
initiatives. The Company actively donates vaccines to developing countries and remote, underserved regions and works with multiple prequalification (PQ) for its bivalent HPV vaccine, it would allocate more than half of its production capacity to meet Gavi procurement
stakeholders to expand the reach of public health services, helping to enhance disease prevention awareness and health management demand. Gavi is a public–private partnership that aims to improve vaccine access for children and adolescents in low- and middle-
capacity among priority populations. For further details on healthcare-related philanthropic initiatives, please refer to the “Caring Public income countries. This commitment supports the Gavi 5.0 strategy, which is expected to benefit 84 million girls aged 9–14 worldwide.
Welfare Initiatives” section. In 2024, the Company’s bivalent HPV vaccine obtained WHO prequalification, and in 2025, the Company officially became a UNICEF
supplier for HPV vaccines under bulk procurement arrangements. Furthermore, the Company continues to explore international vaccine
donation pathways and actively participates in vaccine assistance and donation programs in other countries.
Strengthening Healthcare Worker Training
In 2025, the Company continued to advance its HPV Vaccine Donation Program, which aims to reduce the financial burden of cervical
cancer vaccination for eligible women through a structured and sustainable donation mechanism. In collaboration with the Wu Lien-
Walvax Biotechnology provides training and promotes knowledge exchange based on local development needs. These efforts include Teh Foundation, the Company also implemented the “Cervical Cancer Elimination Demonstration Project in Low-Resource Areas of
delivering specialized training to disease control centers using the Company’s vaccine products, cultivating local talent in vaccine China.” During the year, more than 3,100 doses of bivalent HPV vaccine were donated to areas with limited health resources. In
production and quality control, providing professional training to practitioners in the local vaccine industry, and offering training programs addition, the Company donated 3,000 doses of 13-valent pneumococcal conjugate vaccine and 6,000 doses of 23-valent pneumococcal
for local distributors. These initiatives support the improvement of healthcare service capacity in underserved regions. polysaccharide vaccine to the China Primary Health Care Foundation for free vaccination of eligible residents in Fenyang, Lvliang, Shanxi
Province.
Delivered ongoing professional training to vaccine industry practitioners in Indonesia, Thailand, Egypt, and other
countries, enhancing local workforce capabilities and strengthening healthcare service and public health management
capacity.
Mitigating Antimicrobial Resistance Risks
Supported the PCV13 Phase III trial in Indonesia as sponsor by providing systematic training and technical support,
Walvax Biotechnology recognizes antimicrobial resistance (AMR) as a major global public health threat. The Company advocates the
enabling investigators and partners across study sites to effectively manage key study processes and improve overall
prudent and appropriate use of antimicrobial agents, including antibiotics, and consistently prioritizes vaccine strategies that help reduce
clinical trial execution.
antibiotic use. At the same time, it is committed to the development of innovative vaccines to help address AMR-related challenges.
Bacterial vaccines represent a core strength of the Company. Since its inception, Walvax Biotechnology has continuously focused on
Provided systematic training in quality control testing methods and production technologies to quality control and the discovery and development of vaccines against infectious diseases. As of the end of 2025, the Company has obtained market
manufacturing teams of technology transfer partners in Malaysia and other regions, supporting the establishment of approval for eight bacterial vaccines, including pneumococcal vaccines, meningococcal vaccines, and Haemophilus influenzae type b (Hib)
in-house testing and manufacturing capabilities for transferred products. vaccines. These vaccines prevent diseases caused by bacterial infections and significantly reduce the clinical use of antibiotics. In its
investments in external vaccine development, the Company also prioritizes vaccine categories that contribute to reducing antibiotic use.
For more information on AMR, please refer to the Walvax Biotechnology Co., Ltd. Statement on Addressing Antimicrobial Resistance.
Delivered specialized training in vaccine production quality management and inactivated vaccine R&D during the The Company has established a dedicated AMR education and training program to enhance employee awareness internally. Externally,
China–AU Drug Regulatory Technology Training Program and the Uzbekistan Pharmaceutical Technology Enhancement it raises AMR awareness among vaccine recipients and healthcare professionals through multiple channels, including official social
Workshop held in Kunming. Facilitated in-depth exchanges to support regulatory capacity building and vaccine industry media platforms, corporate websites, academic conferences, and public education initiatives. The Company also collaborates with
development in participating countries, while laying the groundwork for future cooperation. governments, regulatory authorities, manufacturers, and healthcare providers to strengthen coordinated efforts in AMR prevention and
control. In 2025, the Company incorporated the research outcomes of the “Immune Response and Protective Mechanisms of Vaccines
Against Antimicrobial-Resistant Pathogens” project into both internal training and external public education activities.
Conducted four leadership development training sessions for county-level CDC institutions in Kunming and Yuxi in 2025,
in collaboration with the Chinese Preventive Medicine Association, with a total of 400 participants, contributing to
workforce development and public health education.
Public Education
The Company collaborates with local vaccination service providers to deliver public education on vaccines, providing vaccine recipients
with scientific information on mechanisms of action, differences among vaccines, and potential side effects. Through various media
platforms, public lectures, and forum events, the Company promotes vaccine knowledge and up-to-date professional information to the
broader public. The Company also works with non-governmental organizations to implement tailored vaccine education programs for
specific populations, including pregnant women and individuals with chronic diseases. Through multi-tiered public education efforts, it
enhances overall vaccine awareness across society and supports public health. During the reporting period, the Company organized or
participated in 11 national academic conferences on disease prevention and control, 26 provincial-level academic conferences, over 7,800
events at other levels, and 85 provincial- and municipal-level events marking the fifth anniversary of the launch of Weuphoria, reaching
nearly 50,000 participants. In collaboration with maternal and child healthcare institutions and obstetrics and gynecology departments,
the Company conducted training on prenatal education, vaccination knowledge, and pneumococcal disease awareness, covering nearly
Walvax Biotechnology 2025 Sustainability Report Innovation-Driven Approach to Enhancing Health Accessibility
Impact, Risk, and Opportunity Management Quality Services
Walvax Biotechnology regularly monitors domestic and international macroeconomic trends, policy developments, and industry
dynamics. The Company consistently tracks and analyzes emerging technologies that may influence industry development, as well as
new product development and iteration. Risks related to key business areas and priority domains are incorporated into a centralized Service Assurance
risk database, enabling a clear understanding of risks and opportunities associated with health accessibility. The Company continuously
refines its risk management framework, covering risk identification, assessment, management, monitoring, and improvement, to ensure
the effectiveness and adaptability of risk control measures. Building long-term and trust-based relationships with customers is a key foundation of Walvax Biotechnology’s steady development.
The Company adheres to the principles of “integrity in cooperation, mutual trust, mutual benefit, and shared development,” and adopts
a customer-oriented approach, consistently improving its end-to-end customer service management system covering pre-sales, during-
Risk Identification Risk Monitoring sales, and after-sales processes. Relevant service indicators are incorporated into employee performance evaluations to enhance user
Risk Management and Response:
and Assessment and Control experience on an ongoing basis.
The Company conducts annual customer satisfaction surveys to comprehensively collect customer feedback and suggestions, and
Regularly identify and assess Adopt a dual-driven strategy integrating technology Establish a routine constantly improve service quality based on customer needs. In 2025, the Company carried out a domestic customer satisfaction survey
political, economic, legal, and market development, and dynamically adjust monitoring mechanism through questionnaires, covering dimensions such as product quality, packaging, cost-effectiveness, delivery cycle, and service quality.
and market risks, including risk management approaches in response to for health accessibility The overall satisfaction rate for service quality reached 99.67%.
analyses of political and changes in internal and external environments. risks based on changes
economic stability in target For policy risks, strengthen engagement with in disease epidemiology,
markets and customer credit regulatory authorities, industry associations, and competitive landscape,
assessments. Strengthen international organizations, enhance compliance and policy environment.
ex-ante prevention, in- management systems, and pursue policy support Dynamically adjust health
process control, and post- on the basis of compliant operations. For market accessibility strategies to On-time delivery rate of vaccine orders Delivery accuracy rate of vaccine orders Customer complaint response rate
event review to enable end- risks, position quality as a strategic pillar for building ensure the effectiveness,
to-end risk identification and the Company’s “trust capital,” explore innovative adaptability, and forward-
mitigation. commercial models, and capture global market looking nature of risk
opportunities. Expand international markets through response.
flexible approaches such as country-specific
strategies, targeted coverage of priority markets,
technology transfer, and international certification, Customer complaint resolution rate Overall service quality satisfaction rate
thereby supporting global public health.
Indicators and Targets
Indicator/Target Achievement Status in 2025 Efficient Service Response
The Company’s products have been exported to a
Walvax Biotechnology has established a “3R” market service team structure, comprising Solution Experts (SR), Account Managers (AR),
Expand exports to one new low- or middle-income cumulative total of 26 countries and regions. In 2025,
and Field Representatives (FR). The Company has also set up 24/7 multi-channel communication channels and an end-to-end customer
country or region and actively participate in public- exports expanded to five additional low- and middle-income
support system covering pre-sales, sales, and after-sales processes. This enables the delivery of tailored solutions and reliable, agile
sector procurement to enhance vaccine affordability and countries and regions, achieving 100% of the annual target.
service support to customers.
accessibility. Domestically, coverage was extended to five new cities.
Target achieved.
In 2025, the Company completed two technology transfer
Actively promote localized vaccine production to support projects and initiated five additional projects. It was
the development of local vaccine industry value chains in also selected for the “Top 100 International Technology
low- and middle-income countries and regions. Trade Innovation Projects” at the 2025 ZGC International
Technology Trade Fair. Target achieved.
Pre-sales Services During-sales Services After-sales Services
In 2025, with its bivalent HPV vaccine Walrinvax, the
Company officially became a UNICEF supplier for HPV Provide comprehensive product Process orders efficiently and track Provide 24/7 customer support to ensure
Strengthen R&D and manufacturing capabilities for key information and technical consultation logistics status throughout the delivery timely response and effective resolution
vaccines under bulk procurement arrangements. The
vaccine products to ensure a sustainable supply of high- to help customers gain an in-depth process to ensure timely delivery. of customer inquiries, with prompt
Company also supported national efforts to include HPV
quality, cost-effective vaccines for low- and middle-income understanding of product features, Proactively assist customers in resolving feedback on solutions.
vaccines in the National Immunization Program (NIP),
countries. advantages, and usage. Offer issues during delivery to enhance
facilitating broader international access and benefiting more
populations. Target achieved. customized solutions to customers customer experience.
based on market research insights.
Walvax Biotechnology 2025 Sustainability Report Innovation-Driven Approach to Enhancing Health Accessibility
Customer Complaint Handling Walvax Biotechnology consistently improves its responsible marketing compliance management system and has established compliance
review and control procedures covering the entire marketing lifecycle. All online and offline marketing activities and communications
Walvax Biotechnology places strong emphasis on customer feedback and consistently improves its procedures for the investigation, are subject to rigorous internal review to ensure accuracy and compliance. The Company has established a formal process for updating
handling, tracking, and oversight of customer complaints. The Company conducts post-incident reviews of customer feedback and and filing marketing information. All marketing materials must undergo multi-departmental and multi-level review, including by the
actively implements improvements to systematically enhance customer satisfaction. For local partners, international sales agreements Medical Affairs Department, Legal Department, and Marketing Department, before being approved for use. External promotional
include after-sales provisions covering product quality, quantity, shelf life, and shipment. For complaints from overseas end-users (including materials are required to complete a Review Opinion Collection Form and may only be released upon approval. The Company has also
individuals and government clients), all international sales agreements incorporate product quality complaint management clauses. established information transparency and cross-departmental coordination mechanisms to ensure the consistency and compliance of
These clauses require distributors to report complete complaint details within a specified timeframe upon receipt, ensuring a timely marketing information. In the management of academic conferences, the Company strictly follows the meeting and event management
response, proper handling, and effective corrective actions by the Company. policies of the Medical Marketing Department and has strengthened review and approval procedures. For employee conduct in
responsible marketing, clear compliance requirements and ethical standards are defined, supported by enhanced process oversight. For
example, management at or above the manager level is required to participate in and guide customer communications, while written
communications such as emails and messages must be reviewed by responsible supervisors and copied to management in real time to
Customer Complaint Investigation and Handling Procedure
ensure oversight and mitigate marketing risks.
Receipt Assessment Feedback In addition, process compliance is incorporated into the performance evaluation system for sales personnel to ensure that sales activities
Establish multiple communication channels, Promptly acknowledge complaints upon Provide timely feedback to customers are conducted in a professional, compliant, and lawful manner. During the reporting period, the Company received no sales-related
including service hotlines, official websites, receipt and initiate internal assessment on the resolution of the complaint. complaints and recorded no cases of complaints or legal proceedings arising from misleading or deceptive promotional information.
corporate email, and dedicated account to develop appropriate response and
contacts, to ensure timely receipt of mitigation measures.
customer feedback.
Responsible Marketing Audit
The Company continuously strengthens its responsible marketing audit practices and conducts at least one systematic audit annually.
The audit scope covers all sales operations and includes assessing whether sales personnel comply with the Company’s responsible
marketing policies and systems, the compliance of sales processes and contract execution, marketing conduct and related expenses,
and the consistency of product packaging with officially approved specifications. Corrective actions are formulated and implemented
Recording Review for identified issues to ensure that marketing activities consistently comply with business ethics requirements. The Company has also
Document customer suggestions or complaints using Conduct post-incident reviews and coordinate established a mechanism for sharing audit results to enhance cross-departmental collaboration and promote standardized performance
the STAR model (Situation, Task, Action, Result). relevant departments to investigate complaints, of responsibilities. For violations, disciplinary actions are taken against the personnel involved based on the nature and severity of the
identifying preventive and corrective actions. misconduct. In addition, the Company conducts responsible marketing audits of third-party service providers and distributors, covering
aspects such as business reputation, any history of unfair competition, and compliance with the Company’s responsible marketing
policies, ensuring responsible marketing practices across the entire value chain.
Responsible Marketing Responsible Marketing Training
The Company develops an annual responsible marketing training plan covering relevant laws and regulations, internal policies and
Walvax Biotechnology actively upholds a scientific and rigorous approach to responsible marketing. The Company formulates and procedures, product knowledge, promotional standards, and compliant marketing practices, ensuring that all employees are aware
implements its responsible marketing framework in accordance with applicable laws and regulations in its operating regions, including of and strictly adhere to the Company’s marketing, advertising, and sales requirements. For employees in marketing-related roles,
the Anti-Unfair Competition Law of the People’s Republic of China , the Advertising Law of the People’s Republic of China , the the Company conducts regular specialized responsible marketing training. Post-training assessments and periodic spot checks are
Vaccine Administration Law of the People’s Republic of China , and the General Data Protection Regulation (GDPR), while also taking implemented to ensure a thorough understanding of the training content. Training curricula are constantly updated in line with market
into account international guidelines such as the WHO Ethical Criteria for Medicinal Drug Promotion. The Company has established developments. For regional partners, the Company routinely delivers professional training to enhance business capabilities and
dedicated responsible marketing policies and systems, including the Walvax Biotechnology Promotion Prohibition Rules and the Walvax compliance levels. In 2025, the Domestic Marketing BU and International Marketing BU actively conducted responsible marketing training
Biotechnology Co., Ltd. Responsible Marketing Policy. It also consistently refines end-to-end marketing management guidelines covering and policy communication sessions, covering areas such as policies and compliance, marketing strategies and case studies, vaccine
the full marketing lifecycle, including the visual identity system (VIS), management of marketing meetings and events, regional marketing product knowledge, product training, and marketing capability and compliance development, ensuring that all activities and processes in
activities, and standards and guidelines for promotional materials. These policies regulate the marketing conduct of all employees, market development and sales are compliant and lawful. During the reporting period, the Company conducted 32 responsible marketing-
including full-time, part-time, and temporary staff. The Company is committed to conducting all sales and marketing activities in an related training sessions.
ethical, scientific, and objective manner, and strictly prohibits commercial bribery, unfair competition, and any other illegal practices in
sales and marketing activities.
Rigorous and Accurate Marketing
Responsible marketing training coverage for marketing personnel Responsible marketing training attendance
Walvax Biotechnology ensures accurate disclosure of product information in accordance with applicable laws and regulations, as
well as relevant industry standards and guidelines in its operating regions. The Company follows internal policies, including the
Walvax Biotechnology Co., Ltd. Guidelines and Standards for Promotional Materials, to ensure the accuracy of all product-related
communications. During marketing and promotional activities, the Company strictly complies with anti-unfair competition and antitrust
requirements. All referenced, cited, or reproduced content must be based on publicly available academic literature, clinical trial data, and
authoritative third-party reports. The packaging design of vaccine products ensures that product information is clearly communicated to
Total duration of responsible marketing training
populations in different countries. A regular review mechanism is in place to ensure that promotional materials are updated in line with
the latest scientific evidence and approved documentation. The Company strictly adheres to national vaccination policies and regulations
in its operating regions. When promoting vaccines and providing usage recommendations, it does not exploit fear-based messaging or
engage in coercive promotion. All promotional information complies with the principles of accuracy, clarity, and transparency, ensuring
approximately 1,600 hours
that stakeholders receive timely, truthful, rigorous, and compliant product and scientific information. The Company also respects each
individual’s right to make informed decisions regarding vaccination, in accordance with the principle of informed consent.
Green Development and
Environmental Stewardship
Investment in environmental
protection during the year
RMB 2.51 million
Greenhouse gas emission intensity
equivalent per RMB 10,000 of revenue
Compliance rate for wastewater,
air emissions, and solid waste
Walvax Biotechnology 2025 Sustainability Report Green Development and Environmental Stewardship
Strengthening Environmental Management Environmental Certification and Audit
Walvax Biotechnology has established an internal EHS audit mechanism and regularly conducts environmental audits across all
Walvax Biotechnology strictly complies with applicable production units. The audits primarily cover EHS compliance, the operation of pollution control facilities, and the identification of
Environmental Management Structure environmental hazards. Audit approaches include headquarters-led audits, cross-audits among subsidiaries, and rigorous self-inspections
environmental protection laws and regulations, including
the Environmental Protection Law of the People’s Republic (conducted at least once per month with the participation of senior management). In addition, the Company conducts standardized self-
of China , the Law of the People’s Republic of China on the Walvax Biotechnology integrates environmental management monitoring with the support of qualified third-party monitoring ins titutions. Each operational site actively cooperates with regulatory
Prevention and Control of Atmospheric Pollution , the Energy as a strategic priority under the oversight of the Board of authorities and external stakeholders in conducting environmental audits. Dedicated departments are responsible for consistently
Conservation Law of the People’s Republic of China , the Law Directors. The Board regularly reviews the implementation tracking corrective actions and ensuring their effective implementation to maintain the applicability and effectiveness of the Company’s
of the People’s Republic of China on the Prevention and Control of Environment, Health, and Safety (EHS) management and environmental management system. Furthermore, the Company conducts regular spot-check inspections at least once a week on
of Water Pollution , the Law of the People’s Republic of China assumes ultimate responsibility for climate and environmental pollution control facilities operated by third-party service providers, including online monitoring equipment.
on the Prevention and Control of Environmental Pollution by management policies, objectives, strategies, governance
During the reporting period, internal environmental audits and external inspections by third-party organizations achieved 100% coverage
Solid Waste , and the National Catalogue of Hazardous Wastes structures, and their implementation. The Board authorizes the
of all production units. A total of 13 external environmental inspections were conducted, and all identified issues were rectified within the
(2025 Edition) . In alignment with ISO 14001 Environmental Sustainability Committee to provide comprehensive oversight
required timeframes.
Management System and ISO 50001 Energy Management of climate and environmental matters. The EHS Working Group,
System standards, the Company has established a series of which reports to the Sustainability Committee, is responsible
policies and systems, including the Walvax Biotechnology for tracking updates in relevant laws and regulations, and for Environmental Risk Prevention, Control, and Emergency Management
Environmental Management Policy , Environmental Protection formulating and implementing EHS objectives and action plans.
Management System , and Emergency Response Plan for EHS departments are in place at the headquarters and across
The Company continues to improve its environmental risk management mechanisms in alignment with ISO 14001 Environmental
Environmental Incidents . Environmental target responsibility all production units. The Company’s EHS management system
Management System requirements. Environmental monitoring is conducted in accordance with internal policies, including the Walvax
agreements are signed to ensure the effective implementation covers 100% of its operations, and EHS performance is linked to
Biotechnology Online Monitoring Operation and Maintenance Management System and the Online Monitoring Data Anomaly Handling
of environmental objectives and commitments. The Company executive remuneration.
Management System . In addition, the Company strengthens the assessment and management of environmental risk factors arising
ensures compliance with applicable environmental regulations from its production and operations in accordance with the Guidelines for Environmental Risk Assessment of Enterprises (Trial) and the
across all operations while minimizing environmental impacts. Environmental Risk Classification Method for Enterprises (HJ941-2018) . The Company has established an emergency response team for
During the reporting period, the Company had no environmental Environmental Management Objectives
environmental incidents. In 2025, it revised its Emergency Response Plan for Environmental Incidents and emergency response cards,
pollution incidents, no exceedances in environmental monitoring, and carried out targeted environmental emergency training and drills. During the reporting period, all environmental monitoring results
and no environmental administrative penalties. were 100% compliant.
The Company regularly evaluates the environmental impacts
of its operations, establishes clear environmental targets, and
periodically reviews progress and target achievement. Key
Environmental Protection Training and Awareness
environmental performance indicators are incorporated into
management performance evaluations, forming a closed-loop
management approach to continuously improve environmental The Company places strong emphasis on environmental training and awareness-raising. Through various forms of training, employees are
performance. organized to learn environmental laws and regulations, standards, internal policies, and to enhance practical capabilities in environmental
Investment in environmental protection
management. In addition, the Company promotes environmental awareness through a range of activities, fostering a culture in which all
during the year
employees value environmental protection. During the reporting period, the Company conducted two environmental training sessions,
covering topics such as hazardous waste management and the operation and maintenance of wastewater treatment facilities.
RMB 2.51 million
Achievement rate of environmental
management objectives in 2025: 100%
Case Building a Smart Green Production Base
Number of major environmental pollution
incidents and complaints: 0
Environmental protection training coverage The newly constructed Shanxi production base for the Company's microecology business has integrated green and ecological principles
Coverage rate of environmental education and
throughout the entire project lifecycle. The objective is to create a benchmark modern nutritional food production facility that seamlessly
training for all employees: 100%
and solid waste: 100%
combines green building design, smart operation and maintenance, and environmental sustainability. During the planning phase,
the Company strictly adhered to the principle of minimizing ecological disruption. Comprehensive measures were implemented for
vegetation protection and soil and water conservation. The project has rigorously followed the national standard for green buildings. This
Operational availability and integrity rate of commitment is realized through optimized energy-efficient design, the selection of green building materials, the proposed integration of
environmental protection equipment: 100% distributed photovoltaic systems, and the establishment of advanced water recycling and waste treatment systems. These measures
Number of environmental incidents
Rectification rate of environmental inspection collectively put low-carbon principles into practice throughout the facility's entire lifecycle. An integrated smart operations and
(general level and above)
issues: 100% maintenance management platform has been deployed. This platform enables real-time monitoring of environmental quality, precise
control of energy consumption, and integrated smart security systems, fully delivering on the Company's commitment to prioritizing
Shanghai Zerun has obtained
ISO 14001
Environmental Management
System certification
Walvax Biotechnology 2025 Sustainability Report Green Development and Environmental Stewardship
Climate Change Mitigation Climate Resilience
The Company conducts comprehensive analyses of climate-related risks and opportunities and develops targeted response measures. Its
Walvax Biotechnology aligns with the framework recommendations of IFRS S2 Climate-related Disclosures and the Shenzhen Stock climate strategies are aligned with policy trends, market developments, and customer expectations, strengthening resilience to climate-
Exchange Self-Regulatory Guidelines No. 17 for Listed Companies—Sustainability Report (Trial) . The Company continues to pursue green related risks.
and low-carbon development pathways, supports health-related solutions in response to climate change, and actively addresses climate
change.
Category Risk/Opportunity Description Potential Financial Impact Response Measures
Governance ● Extreme weather events resulting from
● Closely monitor climate change trends,
climate change, including heavy rainfall, develop emergency response plans for
heatwaves, typhoons, and floods, extreme weather events, enhance emergency
response capabilities, and maintain strict
The Company integrates climate change management into its sustainability governance framework, with the Board’s Sustainability may adversely affect the Company’s
production operations and supply chain control over EHS risks.
Committee responsible for overseeing climate-related matters. The Company consistently enhances its capabilities in identifying,
continuity. Operating revenue Incorporate regional climate risks into site
●
assessing, managing, and disclosing climate-related risks and opportunities. Members of the EHS Working Group possess extensive selection, planning, and design of new
Acute Risks The production, storage, and Operating costs
●
professional knowledge and practical experience, enabling them to identify climate-related risks and opportunities in a comprehensive transportation of vaccines and projects.
and timely manner, formulate environmental policies and emission reduction plans, and ensure their effective implementation. microecological food products require Asset value ● Deploy off-grid lithium battery energy
stringent temperature control, and high storage systems to ensure emergency power
temperatures and humidity fluctuations supply for critical equipment during power
may compromise product stability. fluctuations or abnormal conditions.
Extreme weather events may also ● Maintain safety stock and diversify suppliers
Decision-Making Level Physical increase operational costs. to build a resilient supply chain.
Risks
● Long-term changes in climate patterns,
Board of Directors and Sustainability Committee such as rising temperatures, shifts in
precipitation patterns, and changes
Review ESG-related risks and opportunities, including climate-related issues
● Constantly monitor climate trends and
in humidity conditions, may affect the
emerging adaptation technologies, and
stability of microbial and algal growth and
establish process adaptation management
Operating costs
Approve climate-related plans, targets, and response measures, and oversee their implementation Chronic metabolism. Ensuring suitable production
Risks mechanisms for chronic climate risks.
and operating environments may increase
Review the effectiveness of climate risk management and internal control systems operational costs. ● Regularly track and assess changes in water
resources and public services.
● Long-term climate change may lead to
water scarcity in certain regions, thereby
Management Level increasing water stress.
● Closely monitor changes in international and
ESG Office domestic environmental and carbon-related
The ongoing introduction of policies and policies, mitigate risks through enhanced
Lead and coordinate the development of climate-related strategies, policies, and targets
●
regulations to mitigate climate change, management, and ensure compliant
the advancement of carbon emissions operations.
Assess and analyze climate-related risks and opportunities Policy and
Operating costs
trading mechanisms, and increasingly ● Promote green and low-carbon development
Regulatory
stringent environmental requirements by improving process equipment, optimizing
Coordinate and advance the implementation of climate-related actions Risks
may impose greater constraints on project energy structure, and enhancing production
development and operations and increase efficiency.
Regularly collect and track climate-related data and progress towards targets costs. ● Invest in emerging sectors such as
photosynthetic biomanufacturing to develop
Execution Level Transition efficient “carbon capture factories.”
Risks
● Monitor and assess the impact of climate
EHS Working Group
● Long-term climate change may alter change and natural disasters on disease
public health conditions, potentially patterns, track the application of advanced
affecting the Company’s product R&D technologies, enhance feasibility assessments
Implement climate-related strategies, policies, and targets
Operating revenue
Market and directions and market strategies. of new technologies, and enhance industry
Technology collaboration to address evolving disease
Develop and implement specific plans to advance climate-related actions and support the implementation of Operating costs
● Climate change may shift market
Risks preferences and increase costs associated patterns.
company-level climate strategies
with low-carbon transition, particularly the ● Conduct cost-benefit analyses and feasibility
upfront costs of green and low-carbon assessments prior to implementing low-
Regularly collect and report relevant data and information
technology transition. carbon transition projects to select optimal
solutions.
● Identify new business opportunities in ● Develop and provide innovative vaccines,
Products disease areas influenced by climate high-value biopharmaceutical products,
and change, develop new vaccine and health Operating revenue and microecological intervention solutions
Strategy and Approach Servicesa solutions, and expand into emerging
markets.
to meet health needs and enhance market
competitiveness.
Climate
Walvax Biotechnology integrates climate risk management into its overall risk management framework and incorporates climate Opportunities ● Explore emission reduction potential and
● Optimizing energy structure and efficiency
Operating costs
change considerations into strategic decision-making. The Company positions green and low-carbon development as a core element of Resource reduce energy costs through the development
can provide stable long-term power supply
Efficiency of in-house photovoltaic facilities and
its sustainability strategy, embedding these principles into the “planning–design–construction–operation” full lifecycle management of and generate energy-saving benefits.
enhanced energy management.
projects, to consistently enhance its climate adaptation capabilities.
Walvax Biotechnology 2025 Sustainability Report Green Development and Environmental Stewardship
Energy Management
Photobiosynthesis Production Base: Redefining the Green
Walvax Biotechnology complies with applicable laws and regulations, including the Energy Conservation Law of the People’s Republic
Health Industry Value Chain
Feature
of China and the Cleaner Production Promotion Law of the People’s Republic of China . The Company has established policies and
systems, including the Walvax Biotechnology Energy Conservation and Emission Reduction Management System , and advances
The coordinated pursuit of carbon emission reduction, ecological improvement, and economic growth has become a energy consumption and efficiency management in alignment with ISO 50001 Energy Management System requirements. Employees
fundamental principle for achieving high-quality industrial development. Walvax Biotechnology has deeply embedded are encouraged to follow clean production procedures, and energy management indicators and targets are incorporated into annual
sustainable development into its biomanufacturing strategy. With the Photobiosynthesis Production Base as its flagship performance evaluations to support the Company’s response to climate change.
project, the Company focuses on the precision photobiosynthesis of natural health-related compounds. By harnessing
biotechnology to obtain natural extracts, it has successfully established a new business paradigm of "solar-driven + natural
extracts + carbon-negative manufacturing," dedicated to creating a healthier and better life.
Energy Management Strategy
Solar-Driven: An Industrial Philosophy Guided by Nature
The Company has established a standardized energy management system and set up a dedicated equipment and energy management
The Photobiosynthesis Production Base operates on the principle of following the way of nature and applying technology team to strengthen the management of energy performance indicators and continuously improve energy management practices.
appropriately. It uses solar energy to drive the natural metabolism of microalgae. The facility employs a controlled and
selective application of biotechnology, utilizing techniques such as mutation breeding and directed evolution. These are
combined with interdisciplinary scale-up technologies that integrate biology and engineering to enhance efficiency. This Energy Planning Management Energy-saving Strategy Formulation
approach preserves the natural properties of the final products, meets the exacting demands of high-end health markets,
and creates a unique competitive advantage. Develop and adjust energy plans to Strengthen monitoring of energy-
maximize efficiency consuming equipment to improve
Optimize energy use to reduce utilization
Natural Extracts: Green Biomanufacturing for Enhanced Health Accessibility
production costs Implement integrated management
The base is dedicated to the production and supply of the natural nutrients astaxanthin and fucoxanthin, both prized for Verify energy bills and ensure timely of energy supply and consumption to
their antioxidant and fat-reducing properties. Astaxanthin, a potent antioxidant, is widely used in health supplements and expense settlement ensure efficient energy use
skincare products. Fucoxanthin, leveraging its core biological activities such as lipid-lowering and antioxidant effects, is Conduct regular inspections to identify
suitable for diverse health applications, including weight management and as an adjunctive therapy in cancer care. The and eliminate energy waste
facility employs a dual-path strategy, combining photoautotrophic and photosynthetic processes. The initial phase utilizes
photoautotrophic processes for rapid production launch, while simultaneously advancing the validation of high-efficiency,
large-scale photosynthetic processes. The base has already achieved its first revenues from both product sales and
Data Statistics and Analysis Compliance Management
technical services.
Establish records for energy Coordinate with government authorities
consumption and energy metering and external parties
Carbon-Negative Manufacturing: A Leap from Reduction to Negativity instruments Ensure accurate reporting to energy
Covering an area of 220 mu (approx. 36 acres), the facility features the large-scale deployment of enclosed Monitor energy consumption to support consumption management systems
photobioreactors totaling 660,000 meters in length. Utilizing renewable raw materials such as carbon dioxide and simple efficient equipment operation Monitor regulatory and policy
organic compounds, it has been engineered as an efficient "carbon fixation factory" capable of consuming approximately Conduct data analysis to support developments and provide relevant
a green business model centered on the carbon-negative potential of photobiosynthesis and achieving a win-win outcome
for both economic and environmental benefits.
The photobiosynthesis technology and industrial platform directly consume
Walvax Biotechnology 2025 Sustainability Report Green Development and Environmental Stewardship
Management of Impacts, Risks and Opportunities
To address potential risks and opportunities arising from climate change, Walvax Biotechnology has established a process and
Energy Conservation and Emission Reduction Initiatives framework for managing climate-related risks and opportunities. This approach enables the identification, analysis, and assessment of
climate-related risks and opportunities, as well as a clear delineation of their scope, thereby supporting more effective screening and
management of significant climate-related risks and opportunities and enhancing climate resilience.
The Company has established and implemented carbon reduction targets and continues to advance energy conservation and emission
reduction initiatives. It also encourages suppliers to align with its environmental policies and jointly address climate change.
Identification of ● Drawing on recommendations from frameworks such as IFRS S2 Climate-related Disclosures ,
Climate Risks and we identify climate-related risks and opportunities, including transition risks (such as policy and
● Yunnan Province is rich in hydropower resources. The Company takes advantage of low-carbon location Opportunities regulatory, technology, market, and reputational risks) as well as acute and chronic physical risks.
factors in site selection, with approximately 70% of its electricity sourced from hydropower.
● The Company significantly increases the use of clean energy, such as natural gas and electricity (with a
Materiality
high proportion of hydropower in Yunnan), to replace traditional energy sources and improve the share ● Through internal and external environmental analysis and the use of risk management tools,
Energy Structure of clean energy consumption. During the reporting period, the Company upgraded its industrial steam Assessment of
Optimization we assess likelihood, potential impact, and financial implications of risks, in order to identify
generation system by replacing traditional coal- and oil-fired boilers with gas-fired modular steam units, Climate Risks and
improving combustion efficiency and thermal energy utilization. Opportunities significant climate-related risks and opportunities.
● Strengthening production management: Steam generators are activated and deactivated based on
Mitigation
● For significant climate-related risks and opportunities, we develop response strategies and
production requirements. Refrigeration system monitoring is implemented to enable intelligent control
and Control of manage them through avoidance, mitigation, and adaptation measures.
of unit operation and pump frequency based on chilled water temperature and pipeline pressure data,
ensuring precise matching of cooling supply and demand and improving system energy efficiency. Steam Climate Risks and ● Functional departments, business divisions, and subsidiaries carry out targeted risk management
demand is collected in advance during the R&D stage, enabling centralized and coordinated steam Opportunities
actions and regularly monitor and track implementation progress.
supply. Unnecessary steam usage is promptly halted to prevent energy waste. In addition, continuous
manufacturing is adopted to replace batch production, reducing cleaning, sterilization, and waiting time
between batches, improving equipment utilization, and achieving synergistic optimization of energy
consumption and production efficiency.
Indicators and Targets
● Enhancing equipment automation control: Cleanroom air conditioning systems are equipped with Building
Scope 1 and Scope 2
Management Energy Management Systems (BMS) and Environmental Monitoring Systems (EMS) to enable real-time monitoring
Conservation of temperature and humidity. Automated control allows intelligent adjustment of air exchange rates
and air supply volume. The purified water system dynamically adjusts production capacity during water
generation and circulation processes, while special gas monitoring systems are implemented to prevent
Greenhouse Gas Emission Reduction Target
unnecessary waste.
Establishing a dual-energy complementary heating system: A regional centralized heating system is
Reduce greenhouse gas emission intensity (Scope 1 and Scope 2) by 6% by 2028, using 2025 as the baseline
●
implemented under an energy management service model, combining biomass and natural gas heating.
This dual-energy complementary approach provides steam for production within the industrial park,
improves energy efficiency, and reduces environmental impact.
● Energy conservation training: Regular training sessions are conducted to enhance employees’ awareness
of energy conservation and improve operational skills. Indicator Unit 2025
Diesel tonnes 79.00
● Energy-efficient dedicated equipment is procured, including freeze dryers with smaller drying capacity
and refrigerators equipped with variable frequency control, to further reduce energy consumption while Natural gas million cubic meters 5.1
meeting current R&D requirements.
Energy
Purchased electricity GWh 61.14
Consumption
● Large-capacity condensate treatment units are applied to enhance condensate collection, treatment, and
reuse in industrial steam systems, improving energy efficiency and reducing carbon emissions. In addition, Total energy consumption1 tonnes of standard coal 14,412.98
the water-for-injection (WFI) preparation system adopts multi-effect distillation units, where secondary
Technical Energy
steam is utilized sequentially across multiple stages to significantly improve steam utilization efficiency.
Conservation Energy consumption intensity tonnes of standard coal per RMB 10,000 of revenue 0.0596
● Heat recovery units are integrated into air conditioning systems to utilize residual heat from exhaust air
Direct greenhouse gas emissions (Scope 1) tonnes of CO₂ equivalent 11,275.75
for heating or cooling fresh air, thereby recovering thermal and cooling energy. Insulation is applied to
medium and refrigerant pipelines by qualified third-party service providers to reduce energy losses during
transmission. Indirect greenhouse gas emissions (Scope 2) tonnes of CO₂ equivalent 32,441.32
Greenhouse gas
emissions
Greenhouse gas emissions (Scope 1 and Scope 2)² tonnes of CO₂ equivalent 43,717.07
● Promote the development of a green supply chain by prioritizing energy-efficient equipment during the
selection process. Greenhouse gas emission intensity tonnes of CO₂ equivalent per RMB 10,000 of revenue 0.181
Expand into the field of biomanufacturing to drive collaborative carbon reduction and sustainable
Scope 3
Sustainable Procurement ●
Notes: 1. Total energy consumption is calculated in terms of standard coal, in accordance with GB/T 2589-2020 General Rules for Calculation of Comprehensive Energy
transformation across the upstream and downstream value chain.
Consumption , issued by the State Administration for Market Regulation and the Standardization Administration of China. 2. Greenhouse gas emissions refer only to carbon
dioxide (CO₂) emissions and do not include other greenhouse gases such as methane (CH₄) or nitrous oxide (N₂O). Scope 1 greenhouse gas emissions refer to emissions
generated from the combustion of fossil fuels, including diesel, gasoline, and natural gas, as well as industrial production processes. The emission factors for Scope 1 are
● Enhance digitalization and intelligent management by establishing end-to-end vaccine traceability and determined with reference to the Guidelines for Environmental Key Performance Indicator Reporting issued by the National Development and Reform Commission. Scope
control systems, and optimize logistics strategies to reduce carbon emissions.
Green Logistics the Release of 2023 Electricity Carbon Dioxide Emission Factors (Announcement No. 47 [2025]) jointly issued by the Ministry of Ecology and Environment and the National
Bureau of Statistics.
Walvax Biotechnology 2025 Sustainability Report Green Development and Environmental Stewardship
Pollution Prevention and Ecosystem Protection
Emissions and Waste Management
Air Emissions Management
Walvax Biotechnology strictly complies with environmental protection laws and regulations, including the Regulations on the The Company’s air emissions include volatile organic
Administration of Pollutant Discharge Permits . The Company integrates environmental protection requirements into its development compounds (VOCs), sulfur oxides (SOx), nitrogen oxides
strategy and corporate governance processes. Systematic management measures have been established for exhaust gas, wastewater, (NOx), and particulate matter generated during R&D and
and solid waste. The Company strengthens the operation and maintenance of pollution control facilities and conducts regular production processes. The Company strictly complies
inspections, while establishing a closed-loop mechanism for hazard identification and rectification. Continuous monitoring of the with applicable laws and regulations, including the Law
treatment and discharge of wastewater, exhaust gas, and solid waste is carried out, and monitoring data are reported and disclosed in of the People’s Republic of China on the Prevention
the National Pollutant Source Monitoring Data Management and Sharing System. The Company is committed to building an industrial and Control of Atmospheric Pollution , the Emission
environment characterized by “no visible smoke, no detectable odors, no audible noise, and no perceptible dust.” For detailed information Standard of Air Pollutants for the Pharmaceutical
on environmental permits, pollutant emissions, environmental emergency management, and self-monitoring plans, please refer to the Industry , the Emission Control Standard of Volatile
Walvax Biotechnology Co., Ltd. 2025 Annual Report and the Walvax Biotechnology Environmental Management Policy . Organic Compounds for Industrial Enterprises , and the
Integrated Emission Standard of Air Pollutants . The
Company has revised its Air Pollution Control Equipment
During the reporting period, the Company conducted 18 self-
Operation and Maintenance Management System ,
monitoring activities, with all data uploaded to and disclosed
installed high-efficiency end-of-pipe treatment facilities
through the National Pollutant Source Monitoring Data
(such as high-efficiency filtration, UV photocatalytic
Management and Sharing System. No major environmental Compliance rate for wastewater, air emissions,
oxidation, activated carbon adsorption, and biological
i n c i d e n t s o c c u r r e d . T h e Co m p a n y d i d n o t i n c u r a n y and solid waste
deodorization systems), and consistently optimized
administrative penalties or criminal liability due to major
treatment processes to further reduce emissions while
environmental incidents, and there were no instances of
excessive or non-compliant emissions of air pollutants or
wastewater, nor any violations related to waste disposal.
For emissions generated from different sources, including R&D laboratories, quality inspection, canteens, and wastewater treatment
facilities, the Company adopts classified collection and differentiated treatment measures. After treatment through high-efficiency
filtration, activated carbon adsorption, photocatalytic oxidation, and biological deodorization processes, emissions are discharged in
compliance with applicable standards. All five air emission outlets are designed and installed in accordance with national standards and
are equipped with online monitoring systems to enable real-time monitoring of emission data and ensure regulatory compliance.
Indicator/Target Achievement Status in 2025 Indicator Unit 2025
Total air emissions tonnes 22,854.73
Sulfur oxides (SOx) emissions per unit of output value decreased by 1% compared
with the previous year
Nitrogen oxides (NOx) emissions per unit of output value decreased by 1% Emissions of volatile organic compounds (VOCs) tonnes 14.68
compared with the previous year
Particulate matter emissions per unit of output value decreased by 1% compared
Emissions of nitrogen oxides (NOx) tonnes 21.57
with the previous year
Chemical oxygen demand (COD) emissions per unit of output value decreased by Target achieved
Ammonia nitrogen (NH₃-N) emissions per unit of output value decreased by 0.5%
compared with the previous year Particulate matter (PM) emissions tonnes 2.51
Compliance rate for hazardous and non-hazardous waste disposal reached 100%
Waste generation per unit of output value decreased by 1% compared with the
previous year
Walvax Biotechnology 2025 Sustainability Report Green Development and Environmental Stewardship
Wastewater Management
The Company’s wastewater is primarily generated from domestic sewage, discharges from the circulating cooling system, and effluents
from research and production activities. The Company strictly complies with relevant laws and regulations, including the Law of the
People’s Republic of China on Water Pollution Prevention and Control , the Discharge Standard of Industrial Water Pollutants , and the General industrial solid waste and packaging materials are collected and recycled by authorized
Discharge Standard of Water Pollutants for the Pharmaceutical Industry (Bio-pharmaceutical Category) . It has revised and implemented waste collection stations. Waste from purified water preparation systems, spent filters from
Non-hazardous
a series of internal management documents, including the Wastewater Treatment Plant Operation Manual and the Wastewater Waste
sterile areas, and domestic waste are regularly collected and transported by municipal sanitation
Inactivation Treatment Operation Manual , to standardize wastewater treatment processes, monitoring, and operational requirements. departments. Waste oil from grease traps is handled by qualified contractors, and septic tank
sludge is regularly removed and disposed of by sanitation authorities.
The drainage system adopts the separation of rainwater and sewage, as well as clean water and wastewater. Biologically
active wastewater is treated through high-temperature inactivation in dedicated wastewater inactivation facilities (121°C
for more than 30 minutes) before being mixed with other production wastewater and domestic sewage. All wastewater is
The Company adheres to the principles of reduction, resource utilization, and harmless disposal, and systematically promotes waste
collected through sealed pipelines and treated in septic tanks and wastewater treatment facilities. Effluent is discharged into
minimization at the source and efficient resource utilization through technological innovation, process optimization, and enhanced
the municipal sewer network only after meeting the Discharge Standard of Water Pollutants for the Pharmaceutical Industry
management.
(GB21907-2008) .
An online monitoring system has been established to enable real-time monitoring of wastewater discharge. The Company
operates three discharge outlets, including one main wastewater discharge outlet and two rainwater outlets. Data from the
main wastewater outlet is connected to national, provincial, and municipal environmental authorities for real-time regulatory
monitoring of wastewater flow, pH, chemical oxygen demand (COD), ammonia nitrogen (NH₃-N), and other wastewater
discharge parameters. The Company continuously strengthens the routine management of the online monitoring system
Improve resource utilization Promote the development of a Enhance hazardous waste
and engages qualified third-party institutions to conduct regular maintenance and servicing of monitoring equipment.
efficiency to reduce waste circular economy and increase management across the supply
generation at the source waste recycling rates chain
Indicator Unit 2025
Total wastewater discharge tonnes 208,110.00
Chemical oxygen demand (COD) discharge tonnes 5.16
Ammonia nitrogen (NH₃-N) discharge tonnes 0.15 Green process technologies
Explore environmentally friendly technologies, prioritize the use of low- or non-toxic chemicals and rapidly degradable
materials, and reduce process steps to minimize hazardous waste generation.
Waste Management
The Company generates various types of waste, including general industrial solid waste, domestic waste, laboratory liquid waste,
waste organic solvents, waste alcohol, discarded hazardous chemicals, spent activated carbon, waste reagents, biological waste from
Resource conservation and circular utilization
R&D and testing, as well as pharmaceutical waste and expired medicines. The Company strictly complies with applicable laws and
regulations, including the Law of the People’s Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste ,
Establish a graded raw material utilization system and reuse qualified surplus materials from production in small-scale
the Measures for the Administration of Hazardous Waste Transfer , and the Standard for Pollution Control on Hazardous Waste Storage .
R&D activities, optimize culture media formulations through single-factor experiments to reduce unnecessary inputs,
It has established and continuously improved internal management systems, including the Walvax Biotechnology Hazardous Waste
retain original packaging upon warehousing after inspection and release to avoid redundant repackaging, and set
Management Procedure , Waste Disposal Standard Operating Procedures , and Hazardous Waste Storage Management Procedures , to
double-sided and black-and-white printing as the default to reduce paper and cartridge consumption.
ensure strict control of solid waste throughout its lifecycle, from generation, storage, transportation, to disposal.
● The Company has established dedicated hazardous waste storage facilities. Temporary
storage of hazardous waste is managed in strict accordance with the Standard for
Production and sales coordination
Pollution Control on Hazardous Waste Storage (GB18597-2023) and relevant site-specific
requirements, with designated personnel responsible for management. Hazardous waste, Strengthen coordination between production and sales to improve product yield and reduce the generation of waste
including pharmaceutical waste, organic solvent waste, and spent activated carbon, is pharmaceuticals.
Hazardous
Waste subject to on-site disinfection or sterilization treatment before being regularly transferred to
Management qualified disposal contractors for proper disposal.
● The Company conducts annual self-inspections of hazardous waste management to identify Capacity building
and assess hazardous waste status. All hazardous waste is entrusted to qualified third-party
Enhance professional capabilities and environmental awareness, and reduce waste caused by operational errors or
service providers for collection, transportation, and disposal, ensuring proper and compliant
inadequate management across all business activities.
treatment of all solid waste within operational sites.
Walvax Biotechnology 2025 Sustainability Report Green Development and Environmental Stewardship
Resource Utilization and Circular Economy
Indicator Unit 2025
Water Resource Management
Non-hazardous waste generation tonnes 1,372.63
Walvax Biotechnology strictly complies with the water resource management requirements set out in the Walvax Biotechnology
Environmental Management Policy . The Company regularly conducts water risk analyses and implements a range of water conservation
Hazardous waste generation tonnes 376.88 management measures and technical solutions, with a focus on improving water use efficiency. Efforts are also made to enhance
employee awareness of water conservation, aiming to maximize water use efficiency while minimizing environmental impact. During the
reporting period, no major water-related non-compliance incidents occurred at any of the Company’s operating sites.
Non-hazardous waste generation intensity tonnes per RMB 10,000 of revenue 0.0057
Hazardous waste generation intensity tonnes per RMB 10,000 of revenue 0.0016
Water Risk Management
Walvax Biotechnology utilizes tools such as the World Wide Fund for Nature (WWF) Water Risk Filter and the World Resources Institute
(WRI) Aqueduct Water Risk Atlas to assess water risks across its production units. Based on the assessment results, targeted risk
Biodiversity Protection mitigation measures are developed to manage and control risks and ensure business continuity. The assessment indicates that major
production and operational sites with relatively high water consumption are located in regions with low water risk levels.
The Company has established a “dual-loop and ring network” water supply assurance system. Two independent water supply loops
Walvax Biotechnology strictly complies with relevant laws, regulations, and international conventions, including the Forest Law of the are designed to serve as mutual backups, preventing disruptions to production and operations caused by water supply interruptions. A
People’s Republic of China , the Wildlife Protection Law of the People’s Republic of China , and the United Nations Convention on Biological ring network pipeline system interconnects all parts of the water supply system to form a closed loop, effectively reducing the impact
Diversity . The Company regularly assesses its dependence on and impact on natural resources and integrates biodiversity protection of maintenance-related shutdowns and significantly enhancing supply stability and load security across the sites. In addition, a routine
practices throughout all stages of project planning, design, construction, and operation. The Walvax Biotechnology Environmental inspection and maintenance mechanism has been established. Water-use equipment and systems are activated or deactivated in a
Management Policy clearly requires the protection of original vegetation and habitats within project development areas at key stages, timely manner based on production needs, while real-time monitoring of water quality, along with equipment maintenance and servicing,
including site selection, construction, and project acceptance. The Company strictly implements the “Three Simultaneities” system and is carried out to ensure that water supply continuously meets necessary operational requirements.
adopts a mitigation hierarchy approach of “avoid, reduce, restore, and offset” to minimize impacts on surrounding land and biological
habitats during project development.
Water Resource Risk Assessment Process
Establish a water risk Conduct risk exposure Perform risk vulnerability Develop a water risk Formulate response
indicator database assessment assessment matrix strategies
Water Conservation Measures
Water Stress
Production Base
Level Reclaimed water Concentrated water Condensate water Other water-saving technical
Rainwater reuse
reuse reuse reuse modifications
Yuxi Walvax Low
Yuxi Zerun Low
Walvax Biotechnology 2025 Sustainability Report Green Development and Environmental Stewardship
Water Resource Efficiency
Improvement Water Conservation Target Indicator Unit 2025
Walvax Biotechnology incorporates industry best practices
into its business operations and services, conducts water Total water withdrawal tonnes 612,604.50
balance analyses, and designs and implements efficient Reduce water consumption intensity by 5% by 2028,
water management measures to achieve its water resource using 2025 as the baseline.
management objectives. Municipal (tap) water withdrawal tonnes 612,604.50
Surface water withdrawal tonnes 0
Groundwater withdrawal tonnes 0
● Conduct regular water balance analyses to measure and assess water supply, usage, and
Water Balance Total water discharge tonnes 208,110.00
Analysis
discharge in production processes, and develop targeted measures to improve water use
efficiency.
Discharge to municipal sewer network tonnes 208,110.00
Discharge to surface water tonnes 0
● Establish detailed water usage records to accurately track water consumption, strengthen
precision control of water use, select water-saving facilities and equipment during project Other water discharge methods tonnes 0
construction and operation, and optimize water allocation and utilization.
Water ● Improve production processes and optimize cleaning procedures for equipment and Total water consumption tonnes 404,494.50
Conservation containers to reduce water consumption per batch.
Water consumption intensity tonnes per RMB 10,000 of revenue 1.67
● Conduct regular inspection, upgrading, and maintenance of pipelines, strengthen
maintenance of water and special gas systems, and promptly address leakage issues to
prevent unnecessary waste. Recycled water use tonnes 78,771
Water recycling rate % 11.39%
● Install rainwater reuse systems where permitted under environmental regulations to
Rainwater
Reuse
utilize clean rainwater for road cleaning, landscaping, and toilet flushing, improving water
recycling efficiency.
Green Packaging
● Condensate Water Reuse：Actively promote water recycling technologies in projects
by using condensate recovery units. All generated condensate is recovered and sent to the
boiler room for treatment to meet applicable standards before being reused. Yuxi Walvax Walvax Biotechnology has established green packaging requirements under its Environmental Management Policy and continues to
Industrial Park saved approximately 66,900 tonnes of water annually through condensate improve the utilization efficiency of packaging materials to support the development of a resource-conserving society. Across packaging
water recovery and reuse. design, manufacturing, distribution, transportation, and sales, we incorporate recyclable materials where feasible. While ensuring
compliance with GMP requirements, we streamline packaging wherever possible. Through internal reuse and material recycling, we
Water ● Concentrated Water Reuse：Automatically recover part of the concentrated water promote the reduction of packaging materials across the entire product lifecycle, thereby reducing natural resource consumption and
Recycling within the purified water preparation system, increasing the overall wastewater recovery minimizing environmental impact.
rate of the system to over 80%.
● Reclaimed Water Reuse：Establish a reclaimed water treatment and reuse system,
under which treated wastewater is reused for landscaping irrigation after meeting
applicable standards. This reduces water consumption while achieving zero discharge of
production wastewater. Hot water is reused after natural cooling, saving approximately
Collaborating for
Shared Benefits and
Value Creation
Total number of suppliers
Significant labor and
human rights risk
incidents
coverage rate
Total external donations during
the year
RMB 13.99 million
Walvax Biotechnology 2025 Sustainability Report Collaborating for Shared Benefits and Value Creation
Sustainable Supply Chain Supplier Lifecycle Management
The Company adheres to a policy of open and transparent procurement, with independent tendering
Supply Chain Management System as the primary approach, supplemented by other procurement methods. All personnel involved
in bid evaluation are required to sign a Bid Evaluation Commitment Letter to ensure fairness and
Screening impartiality in procurement activities and the equal treatment of small and medium-sized suppliers.
and
Walvax Biotechnology has established internal rules and procedures such as the Walvax Biotechnology Co., Ltd. Procurement
Admission A multi-departmental assessment team is responsible for supplier evaluation. When selecting
Management System and the Walvax Biotechnology Co., Ltd. Supplier Management Implementation Rules, in accordance with relevant
suppliers, the team's decisions are based not only on product quality and service but also on a
national laws and regulations, including the Law of the People's Republic of China on Bid Invitation and Bidding . The Company has also
thorough assessment of their performance in key areas such as human rights compliance, business
published the Walvax Biotechnology Co., Ltd. Supplier Code of Conduct , applicable to all suppliers worldwide, and has established a
ethics, and environmental management.
dedicated Procurement Management Committee. Through these measures, the company is committed to building fair, transparent, and
mutually beneficial relationships with its suppliers.
In 2025, the Company revised its Supplier Management Implementation Rules . These revisions further standardize full-lifecycle supplier
management, including supplier screening and admission criteria, classification and tiered management, performance assessment
and evaluation, as well as disqualification and exit mechanisms. The Company takes the quality of suppliers’ products and services
as the foundation of supplier management. It also places great importance on their performance in critical areas such as compliance Supplier Tiering: The Company classifies suppliers into three distinct categories: strategic suppliers,
and business ethics, environmental stewardship, labor rights protection, and occupational health and safety. These efforts support the preferred suppliers, and general suppliers. For each category, tailored management methods are
development of a robust supply chain management system that safeguards the long-term development of both the Company and its applied, including qualification audits, on-site audits, remote audits, third-party audits, and annual
valued suppliers. performance evaluations. Supplier classifications are dynamically reviewed and adjusted based on a
range of factors, including the supplier's country or region, procurement volume, market conditions,
material characteristics, and quality and ESG risk profiles.
Evaluation
Regular Supplier Review and Evaluation: Based on the Supplier Assessment and Evaluation
and
Standards , the Company conducts both regular performance reviews and on-site assessments. A
Management
rigorous annual audit plan is developed for all suppliers. These audits cover multiple dimensions,
Total number of suppliers Suppliers in China (including Hong Kong, Macao, and Taiwan) Overseas suppliers including qualifications, product and service quality, safety practices, and business ethics. Methods
include documentation reviews, questionnaires, sample quality evaluations, and on-site or remote
corrective actions within specified timeframes to consistently mitigate supply chain risks. In cases
where on-site audits are not possible due to force majeure, the Company employs remote audits or
engages qualified third-party auditors.
Suppliers certified under quality Suppliers certified under occupational health
management systems and safety management systems
business license is revoked or canceled; the supplier engages in illegal or non-compliant activities; a
Suppliers certified under environmental On-time payment rate for SMEs major quality incident occurs; the supplier seriously breaches contract terms and refuses to fulfill its
management systems liability; or the supplier fails to meet requirements after a reassessment following corrective actions.
Exit
years from the date of elimination, provided that effective corrective actions have been completed
during that period and supporting evidence can be furnished. Re-admission assessments are subject
to a more stringent review process.
Suppliers assessed via desk review or on-site Suppliers supported during the implementation
audit during the year of corrective actions or improvement plans
Proportion of key suppliers 64% Proportion of key suppliers 100%
Suppliers terminated due to significant actual or potential negative impacts
Walvax Biotechnology 2025 Sustainability Report Collaborating for Shared Benefits and Value Creation
Sustainable Procurement
Walvax Biotechnology is committed to upholding the Ten Supplier Quality Management
Principles of the UN Global Compact and other relevant
Feature
requirements for responsible supply chain management. To
In accordance with its comprehensive internal policies, including the Supplier Management Implementation Rules , the
formalize this commitment, the Company has established
Standard Operating Procedures for Supplier Management , and the Inspection Guidelines for Supplier Management ,
the Walvax Biotechnology Co., Ltd. Supplier Code of Conduct , Walvax Biotechnology Walvax Biotechnology clearly defines management requirements for supplier qualification review, quality evaluation,
which addresses key areas including compliance and business has joined the Supply non-conformance complaints, and annual audits. This framework enables systematic evaluation of supplier quality
ethics, quality management, labor rights, occupational health
performance. Suppliers must possess all required national registration qualifications and maintain ISO/GMP or other
and safety, and environmental protection. Annually, the Chain Branch of the equivalent standard quality management system certifications. The Company signs Quality Assurance Agreements with
Company systematically identifies, assesses, monitors, and China Association for all key suppliers, strengthening supply chain quality control across six critical dimensions: compliance, quality standards,
manages potential supply chain risks, including those related to
logistics and transportation, accompanying documentation, batch management, and service response.
sustainability. With a primary focus on quality risks, the Company Vaccines, serving as
rigorously controls ESG risks throughout its procurement
processes and across the entire supplier lifecycle. The sustainable
an Executive Council
Supply Chain Quality Audits
supply chain initiative operates under the direct oversight of Member.
the Board's Sustainability Committee and is advanced through
close collaboration among relevant departments, including Based on factors such as supplier tier, previous year's audit results, production plans, and supply quality performance, the
procurement and quality management, at all operating locations. Company develops a differentiated audit plan each year. Comprehensive audits are conducted using a variety of methods,
The shared objective is to build a supply chain characterized by including qualification audits, questionnaires, remote audits, on-site audits, sample quality evaluation, and regular
reliable sourcing, assured quality, and sustainability. inspections of raw material quality. Key suppliers are audited annually, while major suppliers are audited every two years.
Dynamic audits are conducted if any quality issues or other anomalies arise. On-site audits comprehensively cover quality
The Company systematically promotes supplier capacity building by establishing a robust closed-loop mechanism of "audit, correction management systems, organizational personnel, plant facilities and equipment, material storage, production management,
and improvement, and capability enhancement." Based on audit results, corrective actions and improvement plans are implemented, utilities, and quality control and quality assurance, culminating in a formal audit report. For any deficiencies identified
and targeted training, guidance, and technical exchanges are provided when necessary. The Company collaborates closely with suppliers during audits, suppliers are required to complete a deficiency record form, provide a corrective action plan within seven
to integrate strengths and resources, solve key problems in production, storage, and transportation, and enhance on-site service days, and submit a final rectification report within one month. This process ensures that suppliers take effective action to
effectiveness. Multi-dimensional dialogue mechanisms have been established to facilitate timely sharing of information on production resolve issues and achieve full compliance, thereby helping to build a transparent and high-quality supply chain.
requirements and quality policies, fostering mutual growth through an open, cooperative approach.
On-site Supplier Audit Process
Risk Type Mitigation Measures
Schedule the supplier audit Develop an audit plan Conduct the on-site audit Prepare the audit report
The Company strengthens digital procurement management, advances the standardization of
procurement procedures, and simplifies procurement approval processes. It achieved a 50% year-
on-year reduction in the procurement approval cycle, effectively enhancing overall procurement
Management Risk
efficiency.
Through a combination of measures such as platform-based management, centralized Verify completion of Supplier submits a Follow up on corrective
supplier corrective actions corrective action report actions
procurement, competitive tendering, direct contracting with manufacturers, and annual framework
agreements, the Company strengthens cost control across the entire supply chain and improves
Cost Risk
operational efficiency.
Audit Type Number of Audits in 2025
In accordance with GMP requirements and other specifications, the Company signs Quality
Remote audits 4 suppliers
Assurance Agreements with suppliers and communicates quality requirements to them. It regularly
Supplier Quality Audits
performs qualification audits and on-site audits of suppliers, providing targeted quality training
On-site audits 17 suppliers
and facilitating technical cooperation and exchanges when necessary. For any quality issues, the
Quality Risk Company implements a closed-loop management mechanism of "timely feedback, quality root
Third-party audits 7 suppliers
cause analysis meetings, solution development, and assurance measures," enabling rapid response
and systematic improvement.
Supply Chain Quality Training
The Company requires all suppliers to sign Anti-Commercial Bribery Agreements , with all contracts
containing explicit anti-commercial bribery clauses. It conducts regular audits of supply chain
The Company has established comprehensive supplier quality training management documents. The Quality Department,
Compliance and Ethics partners' compliance with the code of conduct. When necessary and depending on the specific
in coordination with other relevant departments, develops an annual training plan tailored to different supplier categories.
Risk project, the Company performs due diligence, project audits, and compliance checks on partners.
This ensures that suppliers fully understand the technical characteristics and quality requirements of products the
Company develops and produces. Based on supplier evaluation results and issues identified during audits, targeted
guidance and recommendations are provided to comprehensively enhance suppliers' own quality management system.
The Company explicitly sets forth requirements for environmental management, climate change
When quality issues arise during routine procurement, the Company consistently empowers suppliers through methods
response, resource use and emission control, prohibition of child labor and forced labor, anti-
such as "timely feedback, quality root cause analysis meetings, solution development, and assurance measures,"
discrimination, and occupational health and safety in the Walvax Biotechnology Co., Ltd. Supplier
Environmental, Health proactively collaborating with suppliers to resolve product quality and safety issues and helping them improve product
& Safety, and Labor Code of Conduct . It actively promotes supplier adherence to these requirements and encourages
Rights Risks quality and technical service capabilities.
their continuous improvement in these critical areas.
Walvax Biotechnology 2025 Sustainability Report Collaborating for Shared Benefits and Value Creation
Resilient Supply Chain
Diverse and Inclusive Workplace
A resilient supply chain and business continuity are critical to the Company's sustainable supply chain efforts. Walvax Biotechnology
has established comprehensive risk analysis models and robust risk assessment mechanisms. For different types of suppliers, in-depth
Walvax Biotechnology places strong emphasis on attracting and retaining diverse talent. Guided by an open and inclusive philosophy,
analysis is conducted covering supplier risk identification, potential losses from identified risks, and specific mitigation measures. Supply
the Company has built a highly qualified and diverse professional workforce. This commitment fosters an equal, democratic, and
chain contingency plans are consistently improved to effectively prevent and manage potential risks. In 2025, the Company maintained
harmonious working environment, enabling all employees to jointly contribute to a thriving workplace ecosystem.
a stable raw material supply, with no production disruption due to material shortages.
Improving Supply Chain Emergency Plans Implementing Dual Sourcing Strategies Compliance in Employment
Considering factors such as material criticality to production To prevent upstream raw material supply disruption risks caused
Walvax Biotechnology adheres firmly to the principles of equality, respect, fairness, and justice in all employment practices. The Company
activities and the likelihood of supply delays, the Company by climate events, geographic distance, or policy changes,
strictly complies with all relevant national laws, regulations, and policies, including the Labor Law of the People’s Republic of China , the
conducts comprehensive supply chain risk assessments. Based and to ensure production continuity, the Company adheres
Labor Contract Law of the People’s Republic of China , and the Law of the People's Republic of China on the Protection of Labor Rights
on the severity of impact on production, the probability of to the core principles of compliance, stability, timeliness, cost-
and Interests . Comprehensive internal management systems, such as the Walvax Biotechnology Co., Ltd. Recruitment Management
supply delays, and the detectability of such delays, tailored effectiveness, and strategic importance. The management
Measures and the Walvax Biotechnology Co., Ltd. Labor Contract Administration Regulations , have been established to fully regulate all
assurance plans are developed. High and medium-risk materials strategy of "at least two qualified suppliers for the same
employee recruitment and hiring processes. The Company rigorously verifies employment compliance and resolutely prohibits child labor,
are subject to focused tracking to ensure timely supply of material" is rigorously followed. Multiple key raw material
forced labor, and any form of discrimination. Employees are never treated differently based on gender, education, age, race, family
production materials for all commercial projects. Comprehensive suppliers are engaged in different geographic regions, ensuring
status, religious belief, or cultural background.
lists are established for all materials affecting production, such at least two qualified suppliers (domestic or international) for
as raw materials, excipients, and critical consumables. Safety critical materials, and qualified backup suppliers are proactively
stock early warning mechanisms are implemented, with upper identified. This approach effectively avoids supply delays and
limits based on annual usage and lower limits based on six material shortages, further mitigating production risks arising
months' production requirements or available storage capacity. from supply chain vulnerabilities.
Real-time monitoring and dynamic management of material
inventory data are conducted, and measures such as advance
Total number of employees Employee labor contract signing rate Social insurance coverage rate Employee turnover rate
forecasting and appropriate stockpiling are taken to effectively
avoid supply disruption risks.
Promoting Local Procurement and
Building Strong Partnerships
Substitution with Domestic Alternatives
Female employees Frontline employees
Based on the principle of long-term cooperation, the Company In light of historical delivery performance and current inventory Senior
signs annual framework agreements with suppliers and data, the Company thoroughly assesses supply risks for all Number of
cultivates strategic partnerships to create more stable imported materials. From technical, commercial, capacity, employees by
employees by 37
relationships, reducing both price fluctuation and delivery and accessibility perspectives, it actively explores and selects hierarchical
gender Male Middle
risks. The Company has established a delivery lead-time early products that meet all production requirements for substitution employees level management
warning mechanism. At least one month before the contractual with domestic alternatives and local procurement, particularly
delivery date, it communicates with suppliers in advance to for critical materials. This strategic approach enhances the
understand their delivery readiness. Formal written feedback security of the Company's supply chain. During the reporting
on delivery performance is provided to suppliers on a monthly period, the domestic substitution of critical consumable Employees
aged 31-50
basis to review and improve on-time delivery. The Company materials progressed steadily and according to plan. Employees aged 51 Chinese
Overseas
also increases communication with suppliers to promptly resolve and above employees
(including
potential issues identified during follow-up. For suppliers facing Number of employees
Number of
supply constraints, meetings are arranged in a timely manner employees by from Hong employees by
to discuss and coordinate solutions, ensuring optimal material age Employees under Kong, Macao region
the age of 30 and Taiwan)
reserves and stable supply.
Employees with Fresh graduates
bachelor's degree Employees with newly recruited
master’s degree or
Number of Number of
employees by 240 employees Employees
recruited during
educational newly
Employees with the reporting
level recruited period
associate degree or
below
Walvax Biotechnology 2025 Sustainability Report Collaborating for Shared Benefits and Value Creation
Labor and Human Rights Management Human Rights Risk Mitigation and Control
Walvax Biotechnology strictly complies with international human rights standards, including the International Bill of Human Rights , the
International Labour Organization Conventions , the ILO Declaration on Fundamental Principles and Rights at Work , the UN Guiding
Principles on Business and Human Rights , and the Ten Principles of the UN Global Compact . The Company has established relevant ● The Company has established the Walvax Biotechnology Co., Ltd. Recruitment Management Measures.
policies and management measures, including the Walvax Biotechnology Co., Ltd. Statement of Human Rights, the Walvax Biotechnology All operating locations regulate employment procedures in accordance with local laws and regulations.
Co., Ltd. Management Measures for Employee Welfare, and the Walvax Biotechnology Co., Ltd. Management Measures for Employee Measures include rigorous applicant identity verification and comprehensive background checks for all
Prohibition of new employees. Anonymous reporting channels are also available. These procedures ensure that every
Attendance and Leave . A robust human rights risk assessment and prevention system has been implemented to effectively prevent
Child Labor employee has reached the legal working age in their country of employment.
human rights risks and ensure that labor rights are fully protected across all core business operations. The Walvax Biotechnology Co.,
Ltd. Statement of Human Rights explicitly covers the prohibition of forced labor, prohibition of child labor, freedom of association and
collective bargaining, diversity and inclusion, and anti-discrimination. It applies to all full-time and part-time employees of the Company,
as well as all suppliers, contractors, service providers, customers, and other partners with whom the Company has business dealings. ● The Company strictly prohibits any form of forced labor. All employees have the right to freely choose
to accept or leave their positions. Unlawful detention, arbitrary deprivation of worker freedom, and any
actions that bind employees through contracts, guarantees, or other coercive means are strictly forbidden.
● Staffing levels are fully maintained according to business development needs. Comprehensive policies,
such as the Walvax Biotechnology Co., Ltd. Management Measures for Employee Attendance and Leave,
have been formulated and are consistently improved. Tasks are allocated equitably through workload
Major labor and human rights risk incidents Employee complaints related to discrimination or harassment Prohibition of saturation analysis, and working time management, tracking, and review are diligently conducted. Work
Forced Labor arrangements are adjusted promptly as needed, and all employee leave entitlements are fully respected
and ensured.
Unannounced inspections and anonymous employee interviews are regularly conducted in production
workshops and with outsourcing partners. These initiatives primarily identify and mitigate any risks, such
as forced overtime or restrictions on personal freedom.
Incidents involving child labor or forced labor Percentage of employees covered by trade unions or collective agreements
hiring, and promotion processes. Communication and training on these principles are consistently
strengthened. Anonymous employee surveys and exit interviews are used to proactively identify any
Anti- potential discrimination or workplace harassment risks in recruitment, promotion, or daily management
Discrimination practices, aiming at eliminating all forms of discrimination, prejudice, and harassment.
Human Rights Due Diligence Management and Anti- ● Clear grievance reporting procedures and corresponding corrective or disciplinary measures have been
Harassment established. Any confirmed violations are dealt with promptly and severely.
The Company consistently strengthens its human rights due diligence management procedures, establishing a closed-loop management
mechanism based on "prevention beforehand, monitoring during the process, and rectification afterwards." Employees are actively
encouraged to report any suspected violations of company policies or regulations through public channels. For any confirmed violations, ● The Company regularly analyzes compensation data and conducts employee surveys to assess any pay
the Company conducts a thorough investigation in accordance with regulations and takes appropriate disciplinary action, which may differences based on gender, position, or length of service. This process is designed to identify and address
include, but is not limited to, written warnings, circulating notices of criticism, disciplinary demerits, or termination of employment. any potential instances of unequal pay for equal work.
Pay Equity and ● A dynamic compensation adjustment mechanism has been established. An annual pay equity audit is
Guided by international frameworks such as the United Nations Guiding Principles on Business and Human Rights and the EU Corporate Equal Pay for
conducted to ensure that there are no unjustified pay differences for employees in the same position with
Sustainability Due Diligence Directive (CSDDD) , and in full consideration of local regulatory requirements, the Company's Recombinant Equal Work
equivalent performance levels.
Protein BU mandates that all projects must complete a human rights risk due diligence assessment before initiation. The results of this
assessment serve as a core criterion for partnership admission. Additionally, a Human Rights Due Diligence Working Group, led by the
Human Resources Department, has been established to conduct regular cross-departmental joint reviews, ensuring the independence of
the due diligence process.
● The Company ensures that all employees have the right to freely join trade unions. Regular communication
meetings between employee representatives and management are organized to safeguard workers' rights
to information, participation, and supervision.
Human Rights Risk Identification Human Rights Risk Mitigation and Supervision, Implementation, Freedom of ● A formal Collective Consultation System has been established. In 2025, collective wage consultations
and Assessment Prevention Remediation Measures and Feedback Association were successfully completed, clarifying core provisions such as wage growth mechanisms and benefit
and Collective guarantees. A 2025 Collective Contract covering all employees was duly signed. Yuxi Zerun held two
Identify and assess Develop and implement Conduct regular reviews Establish robust feedback Bargaining collective consultation meetings, reaching consensus on topics including a special collective contract for
human rights risks clear human rights throughout operations. mechanisms to consistently the protection of female employees' rights and interests.
in accordance with policies, business ethics Based on assessment track the effectiveness of
international human codes of conduct, results, formulate and implemented measures and
rights norms, all and supplier codes of implement improvement drive ongoing improvement.
applicable laws and conduct. Strengthen action plans within specified Maintain accessible ● The Company has established a comprehensive occupational health and safety management system.
regulations, and training and ensure timeframes. Implement complaint and grievance Health hazards in all workplaces are strictly monitored and managed. Regular safety risk assessments,
relevant certification effective implementation appropriate mitigation and channels to enable timely occupational disease hazard testing, and company-wide safety training and drills are conducted. Protecting
requirements. across the organization. remediation measures for detection and resolution of Health and employee safety and health is formally integrated into the Company's strategic objectives. Detailed
key identified issues. any human rights concerns. Safety information can be found in the "Occupational Health and Safety" section of this report.
Walvax Biotechnology 2025 Sustainability Report Collaborating for Shared Benefits and Value Creation
Training and Capacity Building Health and Safety Culture Development
The Company has established a systematic training framework covering labor rights and human rights policies, ensuring full coverage
across the organization. Regular internal training sessions are provided to all employees, and selected employees are nominated to Through initiatives such as Work Safety Month campaigns, safety knowledge competitions, recognition of exemplary safety individuals
participate in human rights-related training organized by external institutions. These efforts consistently enhance employee awareness and teams, and ongoing safety training, the Company has cultivated a positive safety culture where everyone prioritizes and actively
of human rights and strengthen their ability to implement related practices. In 2025, the Bacterial Vaccine BU leveraged the Bopu Cloud engages in safety. In 2025, health and safety training coverage reached 100%, totaling over 800 training hours.
digital platform to build a 24/7 online course library. Through a combination of online and offline methods, it provided systematic training
to all employees on core labor rights topics, including labor contract standards, compensation and benefits, and working hours and leave
management. This ensured 100% employee awareness of all relevant policies. The Recombinant Protein BU strictly implemented monthly
reporting of risk monitoring data through the labor filing system, systematically tracking potential risks in employment processes. This
established a robust closed-loop management mechanism of "monitoring, early warning, and rectification." The trade union at Yuxi Zerun
organized five employees to participate in specialized training for labor law supervisor conducted by the Yuxi High-Tech District General
Trade Union. All participants successfully passed the assessment and received certifications, significantly strengthening the Company's
internal capacity for labor law supervision.
Human Rights Complaints and Grievances
The Company maintains a zero-tolerance policy toward any violations of employee rights. A clear complaint and grievance mechanism
has been established, and employees are actively encouraged to report any suspected violations of company policies or regulations
through public channels. For all reported violations, the Company will conduct a thorough investigation and handle the matter with
the utmost seriousness. Appropriate corrective actions will be taken when necessary, which may include, but are not limited to, formal
Conducting Work Safety Month activities themed "Everyone values
warnings, circulating notices of criticism, disciplinary demerits, or termination of employment. safety, everyone knows emergency response – Identify hidden dangers
Fire emergency drills around you"
Occupational Health and Safety
Walvax Biotechnology strictly complies with all applicable laws and
regulations, including the Law of the People's Republic of China on Work
Occupational Health and Safety Targets Achievement Status in 2025
Safety , the Law of the People's Republic of China on the Prevention
and Control of Occupational Diseases , the Provisions on the Supervision
and Administration of Occupational Health in the Workplace , and the Shanghai Zerun obtained Employee health examination coverage rate: 100%
Regulations on the Safety Administration of Hazardous Chemicals . The
Establishment rate of individual occupational health monitoring records: 100%
Company also adheres to the requirements of the ISO 45001 Occupational
Health and Safety Management System. A comprehensive suite of
management policies, systems, and SOPs has been established, including
ISO 45001 Inspection rate of workplaces with occupational disease hazard factors: 100%
Distribution and usage rate of personal protective equipment: 100%
the Walvax Biotechnology Work Safety Accountability System and the Occupational Health Target achieved
Walvax Biotechnology Safety Risk Classification and Control System . Occupational disease incidence rate in workplaces: 0%
These cover all employees, contractors, and suppliers. Health and
and Safety Management
Major personal and equipment safety accidents: 0
safety performance indicators are formally integrated into the annual System certification.
performance appraisal metrics for both senior management and all other General and above safety accidents: 0
employees, firmly establishing safety as a core organizational priority.
Number of work-related fatalities: 0
The Company adheres to the fundamental principle of "safety first, prevention-oriented, and comprehensive management." A dedicated
Risk Evaluation Leadership Group has been established, and a dual-prevention mechanism has been implemented, combining safety risk Investment in health and safety RMB 1.78 million
classification and control with hazard identification and rectification. Individual occupational health monitoring records are maintained
for all workers, comprehensively strengthening occupational safety risk management. For contractors, the Company implements strict
occupational health risk management measures throughout the entire engagement lifecycle, covering contractor selection, contractual Investment in work-related injury insurance RMB 1.19 million
safety notifications, site access requirements, training, process supervision, and performance assessment. During the reporting period,
the medical examination coverage rate for employees in positions exposed to occupational disease hazard factors was 100%. There Coverage rate of employee work-related injury insurance 100%
were zero new confirmed or suspected cases of occupational diseases.
Health and Safety Risk Prevention and Percentage of operating locations with completed employee health and safety
Health and Safety Emergency Management risk assessments
Control System
The Company has formulated comprehensive regulations and The Company has established a systematic hazard identification
systems, such as the Comprehensive Emergency Response and assessment mechanism. Assessment results are integrated
Plan for Production Safety Incidents . Emergency plans for into core decision-making processes, including design scheme
various types of safety accidents and sudden health events are optimization, process selection, system layout, and equipment
consistently improved. Regular emergency drills are organized, selection, to prevent and control risks at the source. A regular
covering fire safety, elevator accidents, poisoning and hazard identification and rectification mechanism is in place, with
suffocation incidents, hazardous material leaks, and counter- timely corrective actions and dynamic monitoring to ensure the
terrorism and anti-violence drills. During the reporting period, complete elimination of hazards. During the reporting period, 171
the Company conducted a total of 7 safety emergency drills. hazards were identified, and the rectification rate was 100%.
Walvax Biotechnology 2025 Sustainability Report Collaborating for Shared Benefits and Value Creation
Diversity and Equal Opportunity
Walvax Biotechnology regards diversity and inclusion as a key strategic priority for attracting talent, stimulating innovation, and
Diversity Training and Activities
achieving sustainable development. Centered on the principle of "respecting differences and empowering diversity," the Company
has formulated the Walvax Biotechnology Co., Ltd. Employee Diversity Policy. The Company actively builds a diverse and inclusive
corporate culture, regularly conducts diversity training covering all employees, and integrates diversity and inclusion requirements To better advance its internationalization strategy, the Company has embedded diversity principles into its corporate culture. In
into recruitment and hiring, employment management, and training activities. In doing so, the Company is committed to creating a accordance with the Walvax Biotechnology Co., Ltd. Employee Diversity Policy, the Company annually organizes diversity training
workplace environment that is diverse, equitable, and inclusive for all. Senior management oversees the development of an inclusive covering all employees, as well as a series of activities including diversity-related lectures, seminars, and in-person thematic events.
culture and monitors diversity performance. Diversity and inclusion considerations are systematically incorporated into internal surveys These initiatives help employees understand, internalize, and comply with relevant principles and regulations, promoting cultural
and assessments, enabling targeted improvements in diversity-related initiatives. In 2025, the proportion of female employees in both integration and more effective team collaboration.
recruitment and promotion processes was maintained at no less than 50%, effectively promoting gender equality, diversity, and inclusion
across the organization. In 2025, to deepen employees' understanding of multicultural contexts in emerging markets and enhance inclusive practices in global
operations, the Company conducted specialized Halal certification training, strengthening respect and inclusion for religious diversity and
encouraging employees to integrate multicultural awareness into all aspects of customer service and business processes. Additionally,
the Company advanced international professional training covering regulatory systems in different countries and regions, providing in-
depth analysis of local social cultures, business customs, and religious norms. This extended DEI (Diversity, Equity, Inclusion) principles
from internal cultural advocacy to market and service capability building, effectively enhancing employees' ability to conduct business
Proportion of female employees Proportion of female employees among Proportion of employees from ethnic compliantly, efficiently, and inclusively in complex, diverse international environments.
new hires minorities
The Company implements equitable employee development programs, ensuring fairness and justice in compensation incentives,
Proportion of employees with disabilities Proportion of female employees in all management positions training, and promotion processes. Management maintains an open and inclusive mindset, valuing and listening to diverse perspectives,
and conducting performance evaluations and making promotion decisions fairly for employees from all backgrounds, avoiding any
(including management talent reserves, middle management,
discrimination or bias.
For female employees, the Company ensures objective and
and senior management) fair promotion standards and transparent promotion processes
through institutional safeguards. Equal training and promotion
development opportunities are provided to promote the Return-to-work rate after parental leave:
Proportion of female employees in entry- Proportion of female employees in senior advancement and skills enhancement of female employees. They
level management positions management positions are actively encouraged and cultivated for management positions,
breaking the glass ceiling and ensuring greater participation and 100%
(i.e., first-line management)
areas. Additionally, the Company strictly implements the Special
Provisions on Labor Protection for Female Employees , ensuring
equal compensation and benefits and guaranteeing equal
pay for equal work regardless of gender. Benefits for female
Proportion of female employees in management roles within Proportion of female employees in STEM- employees include paid prenatal check-up leave, maternity leave,
revenue-generating functions related positions breastfeeding leave, and parental leave; nursing rooms equipped In 2025, female employees accounted for 69.5% of all
with dedicated refrigerators; regular International Women's promoted managers, demonstrating the Company's
(e.g., sales, excluding support functions such as HR, IT, and Legal)
(including R&D, technology, etc.)
Day benefits; and tailored health check-up programs for female
employees. Also, paternity leave is provided for male employees
in accordance with regulations, helping balance family and
substantial progress in promoting gender diversity
and an inclusive culture.
professional responsibilities and enabling female employees to
work with peace of mind.
Recruitment and Hiring
Walvax Biotechnology actively recruits and attracts diverse talent by requiring that all job postings describe only the qualifications and
On International Women's Day, the Company
competencies essential for the position, with any discriminatory content strictly prohibited. The Company welcomes applications from
organized exclusive empowerment activities for
individuals with diverse educational and professional backgrounds, nationalities, genders, ages, marital and parental statuses, skin color,
female employees, including office health training
ethnicities, and religious beliefs. The Company evaluates candidates rigorously based on position requirements and competency criteria.
and specialized skincare knowledge sessions. These
Anonymous resume screening is used in all initial recruitment stages, and diverse interview panels are assembled for interview processes.
activities provided immediately actionable health
This ensures objective evaluation standards and fair treatment of candidates from all backgrounds throughout the recruitment process,
programs tailored to office scenarios, supporting
avoiding any potential discrimination or bias. These practices create a diverse, inclusive, and equitable workplace environment for all
scientific health management and effective work
employees. During the reporting period, no discriminatory complaints were received regarding any recruitment process. A targeted
stress relief.
recruitment initiative for female talent has been established for both campus and social recruitment. The Recombinant Protein BU has
specifically promoted technical positions such as quality supervision and quality control to expand the recruitment of female talent. In
Walvax Biotechnology 2025 Sustainability Report Collaborating for Shared Benefits and Value Creation
Human Capital Development The Company has established the Modern Biomedical Industry College jointly with Kunming Medical
University, cultivating high-caliber, innovative, interdisciplinary, and application-oriented talent for
University- the biopharmaceutical industry through deepened integration of education and industry. Internal
Industry experts are selected to participate in Professional Master's Programs and curriculum development
Governance Collaboration discussions, sharing practical experience through lectures and seminars and broadening talent
acquisition channels.
Walvax Biotechnology has established and implemented a comprehensive human capital management framework, including the Walvax
Biotechnology Co., Ltd. Training Management Measures, the Walvax Biotechnology Co., Ltd. Performance Management Regulations (Trial),
and the Walvax Biotechnology Co., Ltd. Position and Job Level Management Measures. These systems enable effective human resource The Company has implemented a diversified growth plan for interns, categorizing internships into
planning, ensuring that employees are placed in roles that best utilize their unique talents and that their full potential is realized, while Internship three types: introductory internships, general internships, and targeted pre-employment internships.
proactively mitigating organizational risks associated with the turnover or absence of key talent. Program This helps interns gain richer workplace experiences while also expanding channels for the Company
to develop, cultivate, and build a pipeline of future talent.
The Company's employee development strategy is led by the Human Resources Department and submitted to the Board of Directors
for formal approval. The Company consistently refines its human resource management systems to ensure close alignment with its
overall strategic goals. The Board of Directors, together with its subordinate Remuneration and Evaluation Committee and Sustainability
Committee, serves as the decision-making bodies. The Remuneration and Evaluation Committee is responsible for specialized reviews
of human capital incentive mechanisms, pay equity, and senior management talent development. The Sustainability Committee
The Company strengthens employer brand communication and attracts outstanding graduates
oversees the strategic synergy between human capital development and the Company's overall ESG strategy. The Human Resources Campus
through on-campus presentations and multi-channel information dissemination on third-party
Department is responsible for formulating and executing the Company's human resource strategic plans, objectives, and related policies Recruitment
recruitment platforms and university career websites.
and processes. All BUs have established dedicated human resources departments to implement these initiatives and collaborate closely
with business departments to translate strategic requirements into effective daily practices, systematically driving talent development
throughout the organization.
Strategy and Approach Social
The Company adheres to the principles of fairness, justice, and openness in all recruitment, rationally
assessing the requirements for various positions and formulating annual plans to accurately target
Recruitment
and attract required talent from the broader market.
Acknowledging that "the most competitive employees in their positions are true talents," Walvax Biotechnology has formulated a
forward-looking talent development strategy and continues to advance its "internal cultivation + external introduction" approach to meet
the demand for versatile and diverse talent required by its evolving strategy and business development.
Adhering to the principle of "high morality, high quality, high energy, high efficiency, and growth for all," the Company has established
Walvax College as a dedicated platform to implement this vision. Guided by strategic objectives, it provides a scientific and rational Internal The Company has established fair and transparent internal referral processes, actively encouraging
talent management model, consistently improving tiered and specialized training management systems, and enhancing promotion Referral employees to recommend outstanding talent through internal referrals to enrich the talent pool.
mechanisms and internal talent channels. The Ever-Thriving Walvax talent development system is implemented comprehensively,
systematically enhancing the strength and quality of the talent pool, promoting optimization of the Company's talent structure,
improving overall competitiveness, and consolidating a strong talent foundation for the Company's long-term, stable development.
The Company timely posts internal position recruitment announcements, providing employees with
Internal
Talent Attraction Recruitment/
opportunities for cross-departmental promotion and transfer. This activates internal talent mobility,
enhancing employee loyalty and sense of belonging. Employees selected through internal recruitment
Competition
demonstrate better job fit and faster adaptation, significantly boosting business responsiveness.
Walvax Biotechnology implements demand-driven strategic talent pool planning. Regular talent and organizational assessments are
conducted based on the Company's strategic plans and business development directions. Talent needs are prospectively planned,
recruitment requirements are actively forecast, and recruitment channels, efficiency, and costs are comprehensively evaluated. In all
recruitment activities, the Company adheres to the principles of scientific planning, accurate targeting, standardized hiring, and fair
assessment to broadly attract diverse talent. Multiple recruitment channels have been established to expand the dimensions of the
talent pool, and information technology is utilized to improve recruitment efficiency and the accuracy of person-job matching. Employee Training
The Company plans its employer brand for the long term, having created the "Dr. Walvax" IP image, built a multi-dimensional
communications matrix, and established a unified Group-wide recruitment resource sharing platform to further implement its Employer Guided by its strategic objectives and leveraging Walvax College as the main platform, the Company has established the “Ever-Thriving
Value Proposition (EVP). In 2025, the recruitment fulfillment rate was 90.36%, effectively ensuring talent supply for all core positions. Walvax” talent development system. Through the development of a “Learning Landscape Map,” the system systematically covers four
development tracks: new employee onboarding, general competencies, professional expertise, and leadership development. Following
the “4+1” training principles, it strengthens job competency development for all employees and enhances their professional capabilities
and leadership skills in a targeted manner. In 2025, to support the Company's strategic upgrade and business expansion needs for
versatile, diverse, and highly specialized talent, the Company added specialized capability modules aligned with emerging business
requirements, forming a more targeted and forward-looking training content matrix.
The Company conducts comprehensive evaluations and collects feedback for each training course. Questionnaires and other methods
are adopted to collect training feedback and track effectiveness, consistently optimizing course content.
Walvax Biotechnology 2025 Sustainability Report Collaborating for Shared Benefits and Value Creation
The "Ever-Thriving Walvax" Talent Development System Case Building the Ever-Thriving Walvax Digital Learning System
New Employee General Competencies Professional Leadership Through a "category-based operations and dual-platform collaboration" online learning management model, Walvax College
Onboarding Series Series Expertise Series Development Series has successfully constructed a comprehensive, multi-level professional training and lifelong learning system. This has created a
complementary online learning ecosystem combining general capability empowerment with specialized compliance training, providing
comprehensive support for the implementation of the Ever-Thriving Walvax talent development system while ensuring equal access to
Tailored training
Experts learning and growth opportunities for all employees.
Senior
Experienced management
Hig
professionals
g
h-p
Mentoring Advanced training
inin
ote
tra
Talent Excellence
ntia
Backbone
hip
Program
l ta
employees
ers
Onboarding Intermediate Middle management
len
d
lea
training training
t de
Experienced
red
velo
employees
Tie
pm
Emerging Talent Program
ent
Onboarding Entry-level
Frontline management
guidance training Entry-level employees
Xuanxing Platform Bopu Cloud Platform
Talent development mechanism: talent criteria + talent selection + talent development + talent evaluation + talent incentives
General Capability Empowerment Specialized Compliance Training
Talent development platforms: internal trainer team + E-Learning platform + mentoring + in-house knowledge base development +…
The platform's core offering comprises four major modules: Specializing in compliance training for the production
providing courses on management skills and strategic across all positions and scenarios through fully online
"4+1" Principles: Defining a Unified Value Orientation
thinking for employees at different levels (including frontline operations. Through multiple iterative improvements, it
"High morality" lays a strong ethical foundation; "high quality" reinforces professional expertise; "high energy" stimulates employees, middle management, and management reserve has strengthened capabilities to meet compliance audit
innovation vitality; "high efficiency" enhances work performance. Together, these four principles align with the core goal of talents), linked to talent review and development planning; requirements and enhanced the mobile learning experience,
"growth for all," serving as a long-term driver of enhanced employee competitiveness. 3) Diversity awareness, covering compliance management, providing robust support for the Company's compliant
occupational health, diversity and inclusion, and other operations.
essential topics; 4) Personalized development, supporting
employees to independently select courses based on their
individual career plans, facilitating lifelong learning. As of
the end of 2025, there were a total of 1,748 online courses
available on the platform.
Total investment in employee training Employee training coverage rate Total training participations during the year
RMB 1.636 million 100% 200,426
New Employee Training
Total employee training hours Average annual training hours per employee
The Company places high priority on the growth and development of new employees. A comprehensive training and development
stages. Core modules cover Walvax Biotechnology's values and code of conduct, industry development trends and the Company's
strategic planning, core product knowledge, quality management systems, cross-departmental collaboration processes, and career
development paths. For new employees in production positions, specialized training in GMP fundamentals, aseptic operation standards,
and safety management is added to strengthen role-specific compliance capabilities. Through this systematic learning, new employees
Training coverage rate by gender Average training hours by gender are quickly integrated into the work environment, promoting standardized performance, efficient collaboration, and continuous growth
in their daily work practices. Additionally, the Company assigns experienced business mentors to provide one-on-one guidance for new
Male employees 100% Male employees 108.20
employees and evaluates learning outcomes through periodic reviews and formal assessments, ensuring optimal job fit.
Female employees 100% Female employees 108.54
Training coverage rate by employee category Average training hours by employee category
Frontline employees 100% Frontline employees 109.6
Middle management 100% Middle management 97.83
Senior management 100% Senior management 78.77
Walvax Biotechnology 2025 Sustainability Report Collaborating for Shared Benefits and Value Creation
Leadership Training Specialized Skills Training
Walvax Biotechnology consistently advances its talent succession planning efforts. Leadership competencies are formally integrated into The Company has established a position-based training system guided by the principles of "strategic orientation, tiered and classified
position competency models, forming a tiered leadership development system closely aligned with evolving business needs. This system targeting, and precise capability empowerment." Firmly anchored in core business development needs and talent pipeline requirements,
precisely identifies and focuses on cultivating high-potential management personnel. The leadership development framework connects modular training programs are customized for key positions, comprehensively covering all areas of business development including R&D,
managers at all levels, including reserve management talent, providing every employee with opportunities to develop into future clinical affairs, production, quality, EHS, supply chain, and sales. These programs consistently enhance employees' core professional
leaders. This approach supports the Company's strategic goal of building a professional, younger, internationally-minded, and Walvax- capabilities throughout their career development. The Company annually develops detailed departmental professional training
cultured cadre of leaders. In 2025, the Company conducted systematic training for different types and levels of management personnel plans. Through an integrated "online + offline" training model, formal certification assessment mechanisms, and regular knowledge-
across core dimensions including mindset, behavioral patterns, and leadership capabilities. Key initiatives included the development of sharing practices, the professional capabilities and performance effectiveness of key position personnel are systematically enhanced.
specialized leadership courses such as "The Manager's Advancement Path: Leadership Cultivation and Team Empowerment Practical Additionally, dedicated training funds are allocated within the annual budgets of all departments, allowing employees to participate in
Course" and the "Project Bedrock" (a foundational leadership program). These courses covered both management and non-management external professional skills training based on specific business needs.
employees, supporting the construction of a sustainable leadership pipeline.
Launched a specialized "Country Manager" development program, delivering three comprehensive training sessions
Leader Development through a combination of online and offline methods. Achieved 100% coverage of all employed Country Managers,
Talent Sources Training Directions Training Approaches
Paths
significantly strengthening their market expansion and regional management capabilities.
●
Successor Development
Succession Plan Mental breakthrough Program/Leadership
Program (customized
Mature managers: Business thinking
Senior Management training)
Leader of senior Strategic thinking ●
Course training + Advanced professional skills development within the production system, with 132 intermediate and senior-level
Senior
managers Leadership external exchanges pharmaceutical preparation workers completing training and achieving a 100% certification rate.
improvement and visits + experience
Hig
Management
exchanges
h-p
ing
ote
train
ntia
Conducted a HR system "Wisdom Voyage" series of knowledge-sharing sessions, consistently enhancing the
ship
l ta
Business management ●
Training program of
Middle professional service and talent management capabilities of the HR team.
len
der
Emerging Leaders Program Team leadership
emerging leaders
Management
t de
lea
Middle ●
Capability identification
Senior managers: Interpersonal
velo
ed
Management + course training
interaction
Tier
Leader of junior managers
pm
+ action learning +
ent
Change Adaptability mentoring
Launch of the Inaugural "Pharmaceutical Preparation Worker" Vocational Skills
Primary-level Case
Management
●
Online and offline Training Program
learning
Emerging Talent Program Role transformation ●
Management training
Primary-level Junior managers: Task management camp
Management Leader of individual Team management ●
Course training as To reinforce the critical lifeline of product quality and strengthen
contributors the main + interactive
Reserve Management Talent Self-management the development of a specialized talent pipeline, Walvax
discussion + graduation
thesis Biotechnology successfully launched its inaugural "Pharmaceutical
Preparation Worker" vocational skills training program in August
Management capability training is conducted in alignment with business areas, with a focus 2025. This training was targeted at key positions including
on project management, stakeholder communication, and related competencies. production, Quality Assurance (QA), and Quality Control (QC). It
adopted an integrated "online theoretical learning and offline
practical training" model, delivering systematic instruction
centered on core pharmaceutical preparation processes and GMP
standards. Through the development of a customized curriculum
that balanced technical skills enhancement with quality culture
In 2025, Walvax Biotechnology collaborated with
cultivation, all participants ultimately passed both theoretical
external professional institutions to conduct a
and practical certification examinations and obtained nationally
comprehensive talent review project. This initiative
recognized "Pharmaceutical Preparation Worker" vocational skills
systematically assessed the current status of the
level certificates.
management talent pipeline, identified qualified
successors for all key positions, and provided
strategic recommendations for management
cultivation, selection, and appointment, thereby
s t r e n g t h e n i n g t h e Co m p a n y 's l o n g - t e r m
competitiveness.
Walvax Biotechnology 2025 Sustainability Report Collaborating for Shared Benefits and Value Creation
General Skills Training Employee Development
Walvax Biotechnology continues to enhance its general skills training system, regularly conducting cutting-edge technology awareness
Career Development
programs and practical skills courses focused on critical areas such as digital transformation, AI applications, and vaccine-related science
literacy. The Company designs blended learning programs that combine theoretical instruction, case discussions, simulation exercises,
Walvax Biotechnology consistently enhances its talent succession planning Percentage of employees receiving
and hands-on practical training. These programs are carefully aligned with digital transformation trends, AI technology advancements,
processes. Using the "Walvax Eight Competencies" as its core competency performance and career development
industry developments, and regulatory updates. Digital mindset, AI application capabilities, and scientific literacy enhancement are all
framework, the Company systematically develops a tiered and sequenced assessments during the year:
integrated into the company-wide capability development framework, providing essential talent support for the Company's innovation-
"1+3" position competency model. This model is deeply integrated into all key
driven growth and strategic transformation.
talent management processes, including recruitment and selection, talent
reviews, and training and development programs, enabling every employee to
leverage their unique strengths and create value in their work.
Case Inaugural Advanced "AI Trainer" Skills Training Program
Key Position Competency Model Successor Personalized Assessment & Continuous
To accelerate digital transformation and cultivate core AI application talent, Walvax Biotechnology successfully conducted its inaugural Enhancement & Talent Review Development & Cultivation Planning Improvement
advanced "AI Trainer" training and certification program in September 2025, with all participants achieving national-level certification.
The training covered R&D, marketing, and various functional departments, generating significant company-wide enthusiasm for digital
The Company has established a Through annual talent reviews, the The Company regularly assesses
learning. The curriculum was aligned with national vocational skills standards and featured customized "AI + Office" scenario-based
"412" management competency Company precisely identifies high-potential manager performance and development
modules, covering practical content such as prompt engineering techniques, data processing, document creation, and presentation
model, building a comprehensive and talent and formulates personalized progress, with timely feedback provided
creation. This ensured seamless integration of learning with practical application. The training program helped employees in key positions
measurable management competency development and cultivation plans. For and support offered for continuous
adapt to digital transformation requirements, empowered employees with enhanced workplace competitiveness, and explored a
standard system across four key newly appointed management positions, improvement. This process provides solid
replicable pathway for industry-wide digital talent development.
dimensions: values, performance, a structured 3–6 month evaluation assurance for the supply of qualified
comprehensive capabilities, and period is established with clearly defined talent for all key positions.
growth potential. During the reporting work objectives and core assessment
period, the Company completed a requirements. Rapid capability development
talent review covering all management for new managers is promoted through
personnel, systematically identifying targeted training courses and practical on-
high-potential talent, gaining insights the-job opportunities. Upon completion of
into core capability characteristics and the probationary period, comprehensive
development gaps, and providing a assessments are conducted through formal
scientific basis for subsequent talent presentations to ensure full alignment with
development programs. position competency requirements.
The Company has formulated the Walvax Biotechnology Co., Ltd. Position and Job Grade Management Measures. Based on the
established competency model, it consistently deepens the construction of a dual-track career development system for all employees.
This system clearly defines career development paths, enabling employees to pursue promotion opportunities in both management and
professional technical tracks, thereby providing broad growth space for all. In 2025, the Company systematically upgraded its career
development framework, making the job grade system more standardized, transparent, and quantifiable. Focused improvements
were made to promotion eligibility criteria and evaluation standards for position families on the professional technical track, providing
employees with clearer and more accessible growth paths. Additionally, the Company established and fully implemented internal
recruitment and competitive selection mechanisms, providing employees with more opportunities for lateral mobility and vertical
development. The Bacterial Vaccine BU achieved a 100% internal promotion rate for all key positions throughout the year.
M7 S/R/P6
External Collaborative Training
M6 S/R/P5
Walvax Biotechnology actively introduces high-quality, specialized external training resources to support employees in deepening their
expertise and excelling in their respective fields. In 2025, the Company collaborated with multiple external organizations on diverse
training projects, providing robust support for employee growth and professional development. M5 S/R/P/O4
M4
Collaborated with the Xuanxing Cloud Learning Platform, consistently improving Walvax College's online learning
courses and programs using the platform as a primary delivery vehicle. S/R/P/O3
S/R/P/O2
Partnered with Kunming Frontier Vocational Skills Training School to conduct targeted specialized vocational skills
training and assessments, providing strong support for employees' professional skills enhancement and their ability to P/O1
effectively utilize AI technologies.
Note: Issued in 2025, the Walvax Biotechnology Co., Ltd. Position and Job Grade Management Measures replace hierarchical titles with a unified system of
job grade codes for all career levels.
Walvax Biotechnology 2025 Sustainability Report Collaborating for Shared Benefits and Value Creation
security and finance/accounting), employees were encouraged
Educational and Qualification Support
to apply independently, broadening their professional capability Employee Performance Feedback and Appeals
boundaries. For skills enhancement certificates (e.g., certificates
Walvax Biotechnology has established a support system based supporting transformation in areas such as production operations
on the principle of "learning support and practical application." The Company has formulated the Walvax Biotechnology Co., consistently strengthened. The Human Resources Department
and digital applications), closed-loop training programs were
The Company actively encourages and supports all employees, Ltd. Performance Management Regulations (Trial), adhering to reviews, summarizes, and provides feedback on performance
customized in partnership with specialized third-party institutions,
including full-time and part-time staff, to pursue degree the core principles of justice, openness, and fairness. Multiple assessment results, proactively following up on issue resolution
achieving seamless integration of training, assessment,
advancement, obtain professional qualifications or certifications, assessment dimensions are utilized, including self-assessments, and ensuring continuous improvement of performance
certification, and practical application. The Company also actively
and thus consistently enhance their professional competencies. direct supervisor evaluations, and collaborative department management processes.
recommended outstanding employees to participate in worker
Employees can also receive support such as expense assessments, along with various assessment tools. This
skills competitions and programs such as the Yunnan Talent
approach enables comprehensive and objective evaluation of After receiving performance assessment results, if employees
reimbursement and paid training leave upon approval, with Support Program, contributing to the development of a highly
each team's and individual's performance, ensuring employees have objections or concerns regarding aspects they were
additional rewards given to those who obtain corresponding skilled talent pool.
receive appropriate rewards for their value contributions. unaware of, they may submit a Performance Appraisal Appeal
professional titles. This approach fully encourages employees
Form to the Human Resources Department within three
to pursue self-improvement in their professional fields and
Walvax Biotechnology has established accessible performance working days, in accordance with the Company's established
stimulates their motivation for further development, with
coaching communication procedures, providing employees performance appeal and feedback procedures. The Human
support coverage extending to 100% of all regular employees.
with timely and comprehensive feedback and guidance Resources Department is required to review and respond to
Additionally, the Company actively establishes cooperative
throughout the entire performance assessment process to the appeal within seven working days. Upon completion of the
relationships with higher education institutions, encouraging and
support goal achievement and performance improvement. appeal process, the Human Resources Department promptly
supporting employees to advance their formal education and
During the performance planning and implementation stages, records the corrected results to ensure full transparency and
obtain business-critical qualifications, consistently empowering
departmental goals are made transparent and work outcomes fairness. Performance appeal procedures and mechanisms
their professional growth.
are clearly tracked. Managers provide timely feedback and are clearly defined in the Individual Performance Management
In 2025, the Company precisely aligned support with identified improvement suggestions through both formal and informal Measures and communicated in each performance assessment
needs and implemented differentiated measures. For position- communication channels. The Plan-Do-Check-Act (PDCA) closed- notification, ensuring all employees are fully aware of their
essential certificates, unified training and examinations were loop control of company-wide performance management is pertinent rights and procedures.
organized, with all related expenses fully reimbursed. For Presenting awards to employees who won prizes in the First Yunnan
certificates related to core business areas (e.g., information Provincial Biological Products Industry Worker Skills Competition
Employee Stock Ownership
Comprehensive Compensation and Benefits
For senior management and core employees, the Company approach promotes mutual development and creates a win-win
Walvax Biotechnology regularly monitors and evaluates market
Compensation Incentives actively promotes employee stock ownership and stock option partnership between the Company and its employees. Detailed
compensation levels to ensure the overall competitiveness of its
incentive plans. These plans directly link their compensation information on employee stock ownership can be found in the
compensation system and enhance the attractiveness of key
objectives with the Company's long-term goals and interests, Walvax Biotechnology Co., Ltd. 2025 Annual Report.
The Company has formulated the Walvax Biotechnology Co., and strategic positions. All employees and departments undergo
better attracting top talent and retaining key personnel. This
Ltd. Compensation Management Measures . Based on the 3P regular performance assessments and evaluations, achieving
compensation philosophy (Pay for Position, Pay for Person, 100% coverage. In 2025, the Company innovated its organizational
and Pay for Performance), the Company has established a performance assessment model by adopting a combination
compensation system for all employees, including those in of "objective data presentation + collective evaluation of key
non-management and non-sales positions, consisting of fixed initiatives." This approach appropriately balances quantitative Welfare Benefits and Care
and variable components. Variable compensation includes results with contributions to strategic priorities, enhancing both
performance bonuses, allowances, and other incentives. the fairness and strategic direction of assessments. Guided by Walvax Biotechnology has constructed a comprehensive welfare and actively promoting sports and wellness initiatives. The
Performance bonuses are closely linked to both individual and performance outcomes, the Company determines compensation system covering all employees. In addition to all statutory basic mechanism for supporting employees facing difficulties has been
organizational performance, fully leveraging the incentive role levels for each position and designs incentive schemes that benefits, it provides a wide range of supplementary benefits, consistently improved, expanding coverage, refining categorized
of the compensation system in motivating talent. Compensation combine both short-term and long-term elements. This ensures all enhancing employees' sense of belonging and well-being and care measures, conducting care effectiveness evaluations,
for directors and senior management is determined and paid management personnel and frontline employees, including those creating a warm, fulfilling workplace. and establishing long-term follow-up mechanisms to ensure
in accordance with the Director and Senior Management in non-sales functions, receive compensation that reflects their effectiveness. Special attention is given to specific groups such
Compensation and Performance Assessment Management assessment results while remaining both externally competitive The Company places high value on employee care and well- as pregnant women and employees with disabilities, providing
System and other relevant regulations. In determining and internally equitable. The Company has also established being, providing a variety of cultural and sports activities, genuine support to alleviate challenges and fostering an open,
compensation, factors such as position, responsibilities, tiered non-material incentives, including Quarterly Star awards encouraging employees to maintain a healthy work-life balance, inclusive, and mutually supportive working atmosphere.
capabilities, and market compensation levels are taken into and special recognition honors, providing timely recognition for
account. Variable compensation for senior management is outstanding contributions.
closely linked to the Company’s operating performance and the
Furthermore, the Company has established performance-based
achievement of strategic objectives and represents a significant
bonus clawback and adjustment mechanisms. The Director and
proportion of total compensation, ensuring that the interests of
Senior Management Compensation and Performance Assessment
senior management remain aligned with the Company’s overall
Management System stipulates that annual performance bonuses
performance. For general employees, variable compensation is
will not be granted, or must be returned if already paid, in cases of
linked to the Company’s operating performance, organizational
serious violations of company policies, internal disciplinary sanctions
performance, and individual performance. Through dynamic
at the level of serious warning or above, or actions that cause
compensation management, employee income is adjusted in line
significant damage to the Company’s interests. In addition, equity
with performance outcomes, ensuring that all employees receive
incentive plans stipulate that corresponding equity incentives will be
compensation commensurate with their work contributions and
revoked if incentive recipients fail to meet performance assessment
enabling them to enjoy decent work and a good quality of life.
criteria at either the company or individual level.
Walvax Biotechnology 2025 Sustainability Report Collaborating for Shared Benefits and Value Creation
Basic Benefits Employee Communication and Engagement
Social insurance package, housing provident fund, and paid leaves (including sick leave, work-related injury leave,
marriage and funeral leave, prenatal check-up leave, maternity leave, paternity leave, breastfeeding leave, and Communication and Grievance Reporting
annual leave)
Walvax Biotechnology provides employees with open, diverse communication channels and secure, confidential grievance mechanisms.
Allowances & Subsidies
These include workers' congresses, communication and exchange activities, internal telephone hotlines, reporting email addresses,
Housing subsidies, women's hygiene allowance, travel allowances, employee canteen, holiday gift money, holiday the President's dedicated email, online feedback platforms, employee suggestion boxes, and performance reporting communications.
welfare gifts The Company consistently improves its reporting procedures and processing workflows, strengthening democratic management and
communication, and ensuring that every employee concern receives a timely response and appropriate follow-up. Detailed information
on representative communication channels, including the workers' congress, President's email, and employee feedback platform, can be
Employee Health Programs found in the Walvax Biotechnology Co., Ltd. 2024 Sustainability Report.
Annual health check-ups, supplementary medical insurance (including accidental injury insurance, accidental
The Company has established accessible, standardized, and confidential grievance and reporting mechanisms covering all regular and
medical insurance, and critical illness insurance), reimbursement for vaccination with the Company's vaccine
part-time employees. Employees are encouraged to promptly submit grievances to their immediate supervisors or the Human Resources
products (covering employees themselves, their children, spouses, and parents of both spouses), and medical
Department when encountering unfair treatment. For matters involving employees' vital interests, such as internal recruitment
mutual assistance; Establishing employee fitness centers
competitions and performance evaluations, the Human Resources Department, in conjunction with the Audit and Inspection Department,
is responsible for grievance acceptance, investigation, handling, and tracking. The core principles of authenticity, confidentiality, and
Work Stress Relief effectiveness are strictly upheld, ensuring timely and independent investigations of all legitimate reports. The Company strictly maintains
the confidentiality of all whistleblower information and related content, taking effective measures to protect whistleblowers' safety and
Providing diverse recreational and cultural activities for employees; Offering professional psychological support legal rights. Any acts of retaliation or information leakage, upon confirmation, are dealt with seriously. The Company regularly audits
services; Creating the WALVAX STYLE Café the operation of all employee communication and feedback mechanisms to ensure communication channels remain open and that all
employee concerns are addressed promptly and effectively.
Special Employee Care
Attention to special employee groups, including support for parents (e.g., breastfeeding facilities, paid parental Engagement Surveys
leave), employees with disabilities, and employees facing difficulties, implementing diversified welfare and
targeted assistance measures
The Company regularly conducts comprehensive employee engagement surveys. Survey content is carefully designed around three
dimensions of "engagement" and eight corresponding behaviors, as well as four dimensions of "engagement drivers." Opinions
and suggestions are systematically collected from all employees, and management practices are consistently improved based on
engagement survey data analysis and direct employee feedback.
Representative Improvements from Engagement Surveys
In response to identified issues with cross-departmental collaboration, the Company further clarified departmental
functional boundaries and responsibilities. An evaluation of interdepartmental collaboration relationships was formally
incorporated into the 2025 organizational performance assessment system for all departments, effectively improving
In response to identified issues with work processes, the Company mandated all departments to conduct comprehensive
reviews, streamlining and optimizing existing workflows. Redundant steps were eliminated, responsibilities at key
enabling employees to better enjoy for management approval processes was significantly reduced, resulting in more efficient workflows across the
work and life
organization.
space, creating employee fitness
centers
employees with critical illnesses
in badminton competitions, chess
competitions, and other events
Walvax Biotechnology 2025 Sustainability Report Collaborating for Shared Benefits and Value Creation
Impact, Risk, and Opportunity Management Caring Public Welfare Initiatives
Addressing critical human capital risks—including talent turnover, key talent shortages, diversity and inclusion risks, inadequate training
and development, lack of compensation competitiveness or fairness, legal compliance issues, and organizational culture risks—Walvax While pursuing its own development, Walvax Biotechnology bears in mind its social responsibility. The Company actively explores
Biotechnology, guided by its strategic objectives, consistently identifies, assesses, responds to, and monitors all human capital risks. The public welfare models that align with contemporary social development, viewing each project as an opportunity for shared growth with
Company optimizes its human resource management strategies across the entire talent lifecycle of attraction, cultivation, utilization, communities and remaining steadfast in its commitment to safeguarding life and health.
and retention, ensuring all human capital development risks remain controllable and shaping a dynamic, resilient organization capable of
adapting effectively across business cycles.
Risk Identification and Risk Management and Total external donations during the year Yuxi Walvax received the
Risk Monitoring and Control
Assessment Response
"Caring Donation" and "Education
Throughout the entire talent The Company maintains a scientific The Company has established
RMB 13.99 million
Support Enterprise" honors in 2025
management lifecycle, in close human resource management system. a regular human capital risk
alignment with the organization's Talent development strategies are monitoring mechanism. Multiple
strategic needs, the Company formulated based on strategic plans assessment tools, including
closely monitors industry talent and business development directions. employee engagement surveys,
competition dynamics, the A continuous career development talent reviews, and key position
evolution of core skill requirements, support system (the Ever-Thriving succession assessments, are
and developments in labor policies Walvax talent development system) comprehensively utilized to
and regulations. Risk registers are has been developed. Position proactively identify and monitor
dynamically updated based on competency models are constructed potential risks in organizational
these insights. using the "Walvax Eight Competencies" capability building. Risk
as the core benchmark to strengthen assessments are dynamically
talent succession planning. Risks are updated, and talent development
proactively avoided, mitigated, or strategies are iterated to ensure Partnering with Cedar Highrise to foster youth growth and improve Participating in the Tree Planting Day activity themed "Building
understanding of the industry, guided by the dual focus of "youth Green Villages, Supporting Rural Revitalization" organized by the
transferred, consistently supplying the precise alignment of human development + industry outreach" Kunming High-Tech Industrial Development Zone
Company with talent possessing high capital allocation with evolving
morality, high quality, high energy, and strategic development needs.
high efficiency to support management
innovation and business development. Case Digital Empowerment for Health Science Popularization
To better advance consumer science education through new media channels, Guangzhou
Walvax established a dedicated New Media Operations Department, mobilizing multiple
resources to build a comprehensive science popularization communication network. In
Indicators and Targets training sessions, publishing over 3,000 pieces of content on Xiaohongshu and more than
pediatrics and parenting fields to conduct over 50 online events, reaching tens of millions
of users. Additionally, it partnered with the China Association for Vaccines to operate the
Indicator/Target Achievement Status in 2025 "Vaccine China" WeChat Video Channel, producing timely and professional content aligned
with current health topics. The company also conducted Weuphoria media launch activities
Percentage of employees receiving performance and career in multiple provinces including Guangdong, Yunnan, and Hainan, reaching over 700 media
Target achieved
development assessments during the year: 100% outlets. These efforts consistently enhance public awareness of disease prevention and
improve overall health literacy.
Employee training coverage rate: 100% Target achieved
Performance management system optimizations during the year: ≥ 1 Target achieved
Case Peace of Mind Action • Maternal and Infant Care Program
Target achieved
Proportion of female employees among Starting in June 2025, Walvax Biotechnology joined forces with the China Children and Teenagers' Fund to conduct 290 sessions of the
Proportion of female employees in recruitment and promotion: ≥ 50% promoted managers: 69.5% "Happy Families · 1,000 Days of Maternal and Infant Health Action – Peace of Mind Action · Maternal and Infant Care Program." This
program focuses on promoting and disseminating scientific knowledge on maternal and neonatal nutrition and healthcare, childhood
Proportion of female employees among new
vaccination health education, as well as newborn care practices and prevention and treatment of common diseases. Activities included
hires: 51.24%
newborn immunization and vaccination training conducted in hospitals, maternal and child health hospitals, and parenting education
centers across the country. A total of 80,000 copies of educational materials on pneumonia disease prevention were distributed through
Target achieved
Voluntary turnover rate: ＜ 10% postpartum home visit services. These comprehensive efforts aim to enhance vaccination awareness and ensure that every baby can
Employee voluntary turnover rate: 6.13% grow up healthy with proper care.
Strengthening
Governance for Long-Term
Stability and Growth
Operating revenue
RMB 2.42 billion
Anti-corruption training
coverage rate
Major information security
incidents
Walvax Biotechnology 2025 Sustainability Report Strengthening Governance for Long-Term Stability and Growth
Strengthening Party Building to Consolidate Strengthening Corporate Governance
the Foundation
Enhancing the Governance System
Guided by the principles of the Fourth Plenary Session of the 20th CPC Central Committee and Xi Jinping Thought on Socialism with
Chinese Characteristics for a New Era, Walvax Biotechnology aligns Party-building initiatives with its strategic plans and operational
Walvax Biotechnology strictly complies with the provisions of relevant laws, regulations, and regulatory documents, including
goals. The Company continues to enhance its “Wo Health” Party-building program while deepening the integration of Party building
the Company Law of the People’s Republic of China , the Securities Law of the People’s Republic of China , the Measures for the
with business operations and promoting coordinated progress between Party building and production and operations, empowering the
Company’s high-quality development through high-quality Party building.
Administration of Stock Exchanges , the Code of Corporate Governance for Listed Companies , and the Shenzhen Stock Exchange Growth
Enterprise Market (GEM) Listing Rules , as well as the requirements of the Articles of Association and other internal corporate regulations.
The Company has established a corporate governance structure with clearly defined responsibilities, effective checks and balances,
and standardized operations among the General Meeting of Shareholders, the Board of Directors, and the management team. In 2025,
following the revision of the Company Law , the Company adjusted its governance framework and internal systems to align with the
updated laws, regulations, departmental rules, and regulatory documents. The Company discontinued the Supervisory Board, and the
Audit Committee of the Board of Directors assumed the powers and functions of the Supervisory Board as stipulated under the new
Company Law .
Awarded the title of Advanced Primary- Cases Selected as “Strong
Party Building, Strong
Level Party Organization and Clean Development” Exemplary Cases by the Society Work The Company continues to improve and implement its internal control systems, clearly defining the rights and obligations of
Governance Culture Demonstration Base Department of the CPC Central Committee shareholders, directors, and senior management. It fully respects and safeguards the legitimate rights and interests of its stakeholders,
by the Kunming High-Tech Industrial Development Zone, including shareholders, employees, customers and consumers, suppliers, and creditors. At the same time, the Company continues to
Yunnan Province strengthen the governance of its subsidiaries, improve mechanisms to ensure independent directors effectively perform their duties,
and effectively control operational risks. For details on the Company's governance structure, governance mechanisms, shareholding
structure, and information about the controlling shareholders and actual controllers, please refer to the Walvax Biotechnology Co., Ltd.
Organizational Development Institutional Development
The Party Committee of Walvax Biotechnology oversees nine The Company revised and clarified the statutory position, General Meeting of
subordinate Party branches (including one general Party branch). responsibilities, authority, and operating mechanisms of Party Strategy Committee Shareholders
In 2025, the Company completed mid-term adjustments to the organizations within its corporate governance framework. It
Party Committee of the Yuxi Vaccine Industrial Park and the continues to enhance its corporate governance standards by
general Party branch of Yuxi Walvax, and established a new integrating Party leadership into key areas such as strategic Audit Committee
Party branch for the Yunnan Vaccine Laboratory, achieving planning and risk management.
full coverage of primary-level Party organizations and further Nomination Committee Board of Directors
enhancing organizational vitality.
Remuneration and
Evaluation Committee Board Office
Capability Building Business Integration
Sustainability Committee
President
The Company completed the development of the “Smart Party The Company actively cultivates new-quality productive forces
Building” platform to improve the efficiency of Party-building by organizing seminars and discussions on frontier fields such
work. Together with the “Wo Focus” and “Walvaxer ” platforms, as AI applications in R&D and synthetic biology. It identifies Audit and Inspection
President's Office
it forms a distinctive and coordinated communication matrix key pathways for the deep integration of Party building with Department
that enables more systematic and effective communication of business operations, laying a solid ideological foundation for
the Party’s guidelines and policies and the Company’s corporate Party members to play exemplary roles in critical positions
culture, inspiring employees to strengthen their sense of mission across R&D, production, and sales. Focusing on the frontlines of Public Affairs Department
and responsibility. In 2025, the Company delivered 106 learning scientific research, manufacturing, and market expansion, the Strategic Development
materials through the “Smart Party Building” platform and Company has admitted a number of key business professionals Intelligent Information Department
organized specialized training programs with a cumulative into Party membership, consistently optimizing the structure of Department Financial Management
attendance of over 450. Party membership and reinforcing the core strength supporting
Administrative Department
the Company’s high-quality development.
Management Department Human Resources
Department
Legal Affairs Department
Supply Chain Center
Engineering and Intelligent
Manufacturing Department
Thematic learning and education on thoroughly
Walvax Vaccines Walvax Biomanufacturing
The internal magazine implementing the central Party leadership’s Walvax Nutrition Division New Business Division
Walvaxer Eight-Point Decision on Improving Work Conduct Special Feature: AI Empowering Vaccine R&D Innovation Business Group Division
Walvax Biotechnology 2025 Sustainability Report Strengthening Governance for Long-Term Stability and Growth
Board Diversity and Effectiveness
The General Meeting of Shareholders, as the Company’s highest authority, exercises decision-making
and supervisory powers. It is convened and held in accordance with the Rules for Shareholders’
Walvax Biotechnology firmly believes that board diversity independent directors with professional expertise in financial
Meetings of Listed Companies, the Articles of Association, and the Rules of Procedure for the General
strengthens the rigor and effectiveness of decision-making, accounting. In addition, several directors have extensive
Meeting of Shareholders, ensuring that all shareholders, particularly minority shareholders, are treated
playing a vital role in advancing the Company’s strategic experience in risk management and compliance oversight,
General equally and are able to fully exercise their lawful rights.
objectives and sustaining long-term development. Walvax including establishing risk control systems and risk management
Meeting of Biotechnology firmly believes that board diversity enhances frameworks, as well as handling and resolving major risk events.
Shareholders the soundness and effectiveness of the Board’s decision- Their expertise effectively supports the Company in identifying,
Held Adopted making and serves as an important factor in supporting the preventing, mitigating, and addressing risks. The remuneration
Company’s strategic objectives and sustainable development. of Board members is reviewed and approved annually by the
In accordance with the internal Rules of Procedure for the
Nomination Committee of the Board of Directors , the nomination
General Meeting of Shareholders. A clawback mechanism
is clearly stipulated in the Management Measures for the
of Board members follows a rigorous selection process. Board Remuneration and Performance Evaluation of Directors and
diversity is taken into account during the nomination and review Senior Management . If performance falls short of expectations
process, with candidates comprehensively evaluated based on or misconduct occurs, the Company may recover part or all of
factors such as educational background, industry experience, the remuneration already paid, or suspend the payment of any
The Board of Directors is accountable to the General Meeting of Shareholders and is responsible for professional expertise, skills, and career experience. Emphasis outstanding remuneration. As of the end of 2025, the average
decisions on major matters and business management of the Company. The Board has established is placed on candidates’ strengths and the value of board tenure of Board members was 5.2 years.
five specialized committees: the Strategy Committee, the Audit Committee, the Nomination diversity, as well as their potential contributions to the Board,
Committee, the Remuneration and Evaluation Committee, and the Sustainability Committee, which ensuring that the Board maintains an appropriate balance To further enhance corporate governance, Walvax Biotechnology
provide professional opinions and recommendations to support the Board’s decision-making. Among of capabilities, skills, experience, gender, age, and cultural actively promotes professional training for Board members.
them, the Audit Committee, Nomination Committee, and Remuneration and Evaluation Committee and educational backgrounds. This approach helps enhance Directors are encouraged to participate in training sessions
are composed of a majority of independent directors, who also serve as the chairpersons of corporate governance and decision-making capability, while on internal policies, codes of conduct, and relevant securities
these committees. For major decision-making matters, the Company convenes special meetings supporting the Company’s strategic transformation and long- market laws and regulations to strengthen their professional
of independent directors in strict accordance with the Administrative Measures for Independent term stable development. expertise and fulfill their duties more effectively.
Directors of Listed Companies , the Articles of Association , and other relevant requirements. Through
these meetings, the Company further strengthens the oversight and review functions of independent The Company’s Board of Directors currently consists of 11
Bachelor's degree Doctor's degree
directors, ensuring that the Board’s decisions remain well-informed and compliant. members, including 4 independent directors, accounting
for more than one-third of the Board. Two of the directors 1 People 4 People
are women. The current members of the Board possess
Directors'
diverse professional backgrounds and industry experience in
Educational
Board of areas including industry and operational management, risk
Background
Directors management, financial accounting, law, and finance. They
In 2025, the Board of Directors held Adopted Audit Committee meetings held Master's degree
demonstrate strong capabilities in anticipating industry trends,
integrating resources, and managing risks. All members of 6 People
Remuneration and Evaluation Committee Nomination Committee
Professional Capacity
meetings held meetings held
Type Name Gender
Industry Risk Financial Operations
Law
Experience
√
management accounting management
√
Sustainability Committee Special meetings of
meetings held independent directors held Employee Representative
Dong Shaozhong Male √ √
Director, Vice Chairman
Director
Yao Wei
Fan Yongwu
Male
Male
√
√ √
√
Director Liu Zhaohui Male √ √
Employee Representative
Sun Mingbo Male √ √
Director, Vice President
Employee Representative
Yan Ting Female √
Director
Independent director Zhao Jianmei Female √ √
Independent director Zhu Jinyu Male √ √
Independent director Sun Ganghong Male √ √
Independent director Zeng Lingbing Male √ √
Walvax Biotechnology 2025 Sustainability Report Strengthening Governance for Long-Term Stability and Growth
Protection of investor rights and interests Digital Intelligence–Driven Transformation
Walvax Biotechnology has formulated a five-year digitalization Industrial
Information disclosure Investor Communication Upgrade
plan that clearly outlines the medium- and long-term strategic
blueprint for digital and intelligent transformation. The plan
Comprehensive
Walvax Biotechnology strictly complies with the Securities The Company consistently refines internal policies, such as establishes an implementation roadmap across dimensions
Digital and Transformation
Law of the People’s Republic of China , the Measures for the the Walvax Biotechnology Investor Relations Management such as technology architecture, data governance, and
de al
Intelligent Management
Tec pgra
gra ion
Administration of Information Disclosure by Listed Companies , System and the Walvax Biotechnology Investor Reception application scenarios, effectively advancing the development
Transformation
Up izat
hn
U
of “Digital Walvax, Intelligent Walvax, and Smart Walvax.” The
olo e
the Provisions on the Registration and Administration of Persons Management System , and has established diversified channels
n
ga
gic
Company has built an integrated information system covering
d
with Access to Insider Information of Listed Companies , and for communication with investors. Through channels including
Or
al
other relevant regulatory requirements. The Company has General Meetings of Shareholders, investor site visits, investor R&D, manufacturing, and marketing. Guided by a technology-
revised the Walvax Biotechnology Information Disclosure hotlines, dedicated email responses, earnings briefings, investor empowerment approach to development, this system enables
Management System , the Accountability System for Major reception meetings, and responses to investor inquiries via the seamless connectivity between business processes and data
Errors in Annual Report Information Disclosure , and other cninfo platform, the Company engages in open and transparent flows across the front-end, mid-end, and back-end operations.
related policies to ensure that information is disclosed in a communication with investors on topics such as corporate
truthful, accurate, complete, timely, and fair manner. In 2025, governance, development strategy, operating performance,
the Company disclosed 4 periodic reports and 151 ad hoc financing plans, and sustainability. These efforts effectively Upgrading core business systems to strengthen the digital foundation.
announcements, ensuring that all shareholders have fair access enhance interaction and mutual trust between the Company
The Company completed the upgrade and launch of a new Customer Relationship Management (CRM) system,
to information. During the reporting period, there were no false and its investors.
integrating core capabilities such as customer lifecycle management, automated sales processes, data analytics, and
records, misleading statements, material omissions or other
The Company treats all shareholders equally. At each General decision-support tools, which significantly enhanced customer response efficiency and accuracy. Meanwhile, production
improper disclosures in the Company's information disclosure.
Meeting of Shareholders, both on-site and online voting channels sites continued to upgrade core business management platforms and supporting IT infrastructure, including data
We also keep a close eye on the public opinion environment and
are provided to facilitate the participation of minority investors. centers and information security systems, accelerating digital connectivity across business units and enabling intelligent
market trading conditions to effectively protect the legitimate
For major matters that may affect their interests, the votes lifecycle management and traceability of products.
rights and interests of investors.
of minority investors are counted separately and the results
are disclosed. A dedicated session for questions from minority
Investment Returns investors is included in the meeting agenda, and the Company
maintains regular communication with minority shareholders Expanding AI frontier applications to drive innovation breakthroughs.
through diversified investor communication channels, actively
The Company is committed to providing shareholders with The Company completed its AI strategic planning and pilot AI application projects, and has explored intelligent
listening to their opinions and suggestions. The timing and
reasonable investment returns, with cash dividends as a applications of AI in R&D scenarios, empowering the development of new-quality productive forces. At the same time,
venue of the General Meeting of Shareholders are arranged
key method of shareholder compensation. While adhering it advanced the cultivation of AI talent and strengthened its technological capabilities, creating new momentum for
to facilitate the participation of as many shareholders as
to profit distribution principles and ensuring the Company’s technological innovation and the commercialization of research outcomes.
possible, and modern information technologies are fully utilized
stable operations and long-term growth, we also enhance its
to expand shareholder participation in shareholder meetings.
investment value through measures such as share buybacks
When reviewing and making decisions on profit distribution
and cancellations. Our goal is to establish a shareholder value
plans, independent directors strictly perform their review and
return mechanism that is long-term, stable, and sustainable.
oversight duties to effectively protect the legitimate rights and Enhancing process efficiency to activate organizational momentum.
In 2025, the Company distributed cash dividends totaling RMB
interests of minority shareholders.
supporting management mechanisms, and implement digital tools. These efforts promote the digitalization and
standardization of end-to-end processes, enhance cross-departmental collaboration, and support the precise execution
of the Company’s strategic objectives.
Investor communications through various channels
throughout the year
over 2,800
Tax Management
Walvax Biotechnology strictly complies with the Enterprise Income Tax Law of the People’s Republic of China , the Law of the People's
Republic of China on the Administration of Tax Collection , as well as other applicable domestic and international tax regulations.
The Company has formulated the Walvax Biotechnology Tax Management Measures , covering tax declaration and payment, tax
risk management, and tax records management, and continues to improve its tax management system and tax risk management
mechanisms to ensure compliant tax reporting and payment, safeguarding the compliance and soundness of tax management. We are
committed to responsible tax practices and pledge not to shift the value we create to low-tax jurisdictions, not to adopt tax planning
structures lacking commercial substance, to follow the arm’s length principle in transfer pricing, and not to use secrecy jurisdictions or so-
called “tax havens” for any form of tax avoidance. With the expansion of its international business, the Company further strengthened
tax compliance management in 2025 by conducting internal self-inspections and external audits, optimizing tax planning, and
consistently enhancing its capability to respond to tax-related risks. During the reporting period, Walvax Biotechnology did not encounter
any significant tax compliance violations.
Walvax Biotechnology 2025 Sustainability Report Strengthening Governance for Long-Term Stability and Growth
Upholding Business Ethics
Walvax Biotechnology strictly complies with the United Nations Declaration Against Corruption and Bribery in International Commercial Walvax Biotechnology continues to improve its business ethics governance system with a structure that extends horizontally across
Transactions , the CEPI Third-Party Code , as well as relevant laws, regulations, and industry standards, including the Criminal Law of the all functions and vertically through all organizational levels. Clear responsibilities and accountability mechanisms are established, and
People’s Republic of China , the Anti-Unfair Competition Law of the People’s Republic of China , the Anti-Monopoly Law of the People’s requirements covering anti-fraud, anti-money laundering, anti-corruption, anti-bribery, fair competition and anti-monopoly, and conflict-
Republic of China , the Interim Provisions on Prohibiting Commercial Bribery , the Drug Administration Law of the People’s Republic of of-interest prevention apply to the Company’s directors, all employees (including part-time staff), as well as all supply chain partners
China , the Pharmaceutical Industry Compliance Management Standards , and the Compliance Guidelines for Preventing Commercial and business collaborators. This ensures full compliance coverage across business operations, functional management, and supply chain
Bribery Risks in Pharmaceutical Enterprises . In line with compliance and business ethics requirements for international cooperation, the management.
Company consistently improves its compliance and business ethics governance framework and risk management systems, and has
established internal audit and whistleblowing mechanisms. Through rigorous standards, professional integrity, and sound management
practices, the Company reinforces its safeguards against unethical business conduct. During the reporting period, Walvax Biotechnology
was not involved in any litigation related to corruption or unfair competition, and did not receive any related regulatory inquiries or Walvax Biotechnology Compliance and Business Ethics Policy Framework
complaints. The Company’s business ethics management system operated effectively.
Walvax Biotechnology Values and Code of Conduct
Governance
Code of Business Ethics of Walvax Biotechnology Co., Ltd.
Employee Code of Ethics and Conduct of Walvax Biotechnology Co., Ltd.
Walvax Biotechnology regards compliance and business ethics as strategic issues and has incorporated them into the Board's oversight
and management framework. The Board of Directors serves as the leadership and decision-making body for compliance and business Implementation Guidelines for the Employee Code of Conduct of Walvax Biotechnology Co., Ltd.
ethics management. The Board’s Audit Committee performs dedicated oversight and decision-making functions, while the Audit and
Inspection Department is responsible for the day-to-day execution of supervision. Dedicated personnel are assigned to these roles Walvax Biotechnology Co., Ltd. Implementation Policy for the Pharmaceutical Industry Compliance Management Standards —
to ensure full coverage of oversight. The Company incorporates compliance and business ethics management assessments into Appendix A: Anti-Commercial Bribery
its performance evaluation system. The performance evaluation covers the performance of duties by directors, supervisors, senior Anti-Fraud, Anti-Money Laundering and Anti-Bribery Management Policy of Walvax Biotechnology Co., Ltd.
management, and risk management personnel, as well as the performance of risk management duties by business departments,
subsidiaries, and overseas entities. Conflict of Interest Declaration Policy of Walvax Biotechnology Co., Ltd.
Annual Personal Disclosure and Information Management Policy of Walvax Biotechnology Co., Ltd.
Policy on Handling Violations of Walvax Biotechnology Co., Ltd.
Board of Directors
Whistleblowing and Misconduct Reporting Policy of Walvax Biotechnology Co., Ltd.
Whistleblower Protection Policy of Walvax Biotechnology Co., Ltd.
Compliance and The Board of Directors bears ultimate responsibility for compliance and business
Business Ethics ethics management. It oversees management in establishing and improving company- Supplier Code of Conduct of Walvax Biotechnology Co., Ltd.
Leadership Body wide business ethics and anti-corruption management systems and internal control
Anti-Commercial Bribery Agreement of Walvax Biotechnology Co., Ltd. (applicable to all employees and suppliers)
framework, and in fostering a culture of compliance and business ethics. The Board
also reviews and approves the Company’s compliance and business ethics plans, major
related matters, and decisions on disciplinary actions for violations.
Audit Committee of the Board of Directors;
Audit and Supervision Department
Compliance and The Audit Committee oversees the effective operation of the Company’s compliance
Business Ethics and business ethics management system and continuously improves mechanisms and
Oversight Bodies processes for identifying, assessing, tracking, and responding to related risks, thereby
strengthening risk management and control. The Audit and Inspection Department, as
an independent function, ensures that audit results are fair, objective, and accurate,
and faithfully reflect the Company’s actual operations.
Functional departments, business units,
and controlled subsidiaries
Compliance and Functional departments, business units, and controlled subsidiaries strictly implement
Business Ethics compliance management systems, processes, and frameworks across key areas such
Implementation Bodies as anti-commercial bribery, anti-fraud, anti-money laundering, anti-monopoly, financial
and tax compliance, product promotion, centralized procurement, EHS, adverse
reaction reporting, data compliance, and cybersecurity, ensuring comprehensive
coverage across internal operations and all stages of the value chain.
Walvax Biotechnology 2025 Sustainability Report Strengthening Governance for Long-Term Stability and Growth
Strategy and Approach
Walvax Biotechnology maintains a zero-tolerance stance toward violations of business ethics and strictly adheres to its Code of Business Coverage rate of business ethics and anti-corruption Average hours of anti-corruption training per participant
Ethics. In alignment with standards such as ISO 37001 Anti-Bribery Management System, the Company has formulated compliance training for directors for directors
and business ethics management plans and improvement initiatives. Compliance and business ethics requirements are integrated into
the Company’s corporate culture, business processes, and supply chain management, forming a comprehensive line of defense for
compliance and ethical conduct. 100% 4 hours
Business Ethics Audits Coverage rate of business ethics and anti-corruption Average hours of anti-corruption training per participant
training for employees for employees
The Company has formulated a series of normative documents, including the Walvax Biotechnology Co., Ltd. Internal Audit Management
System and the Walvax Biotechnology Co., Ltd. Internal Audit Quality Assessment Manual, to ensure the effective implementation of
audits related to business ethics and anti-corruption. The Audit and Inspection Department develops targeted audit plans each year to
conduct Audit and Inspection activities on the implementation of business ethics policies and potential business ethics risks across various
operational scenarios. For “red flag matters” (issues that may indicate potential corruption risks), the Company expands the scope of
audits. Based on audit results, improvement plans are formulated, corrective actions are regularly tracked, and relevant progress is
reported to the Audit Committee and the Board of Directors. During the reporting period, the Audit and Inspection Department carried
out ongoing special audits and supervision on compliance and business ethics, constantly identifying and assessing potential risks. No
material issues were identified that required expanding the audit scope for further in-depth investigation. The Company maintained long- Business The Company regularly provides all directors with training on business ethics, anti-corruption, and
term supervision of rectification efforts, urging all units to refine and implement control measures in response to identified management Ethics risk management. Directors are encouraged and supported to participate in courses and seminars
gaps and to ensure closed-loop remediation. It also consistently strengthened institutional systems, business processes, and risk control Training for organized by professional institutions to enhance their professional competence and compliance
mechanisms in key areas and critical processes. At the end of 2025, the Company engaged an external accounting firm to audit its Directors awareness.
internal control system for 2025, with the audit scope covering business ethics, anti-bribery, anti-fraud, and whistleblowing mechanisms.
The Company has established strict supplier admission requirements and conducts reviews of supply chain partners’ compliance with
the Company’s Code of Conduct, including business ethics and anti-corruption requirements. Where necessary, the Company performs
The Company promotes business ethics and anti-corruption policies and procedures through multiple
due diligence, project audits, and in-depth inspections of partners. Due diligence methods may include, but are not limited to, public
Business channels, including employee handbooks, policy releases, communication materials, and digital
information checks, questionnaires, on-site inspections, and investigations conducted by professional agencies. Depending on business
Ethics platforms. All employees, including part-time staff, are required to participate in business ethics and
circumstances, some or all of these methods may be adopted to conduct routine or high-risk due diligence, ensuring continuous
Training for compliance training at least once each year to strengthen compliance awareness and capabilities.
oversight and control of compliance and business ethics risks within the supply chain. The Company applies a “zero-tolerance” policy
Employees The Company also strengthens its culture of integrity through case-based learning, expert lectures,
toward corruption-related misconduct by suppliers and strictly enforces procurement prohibitions. Suppliers involved in serious violations
and seminars, promoting the integration of compliance principles into daily business practices.
may be placed on a blacklist and penalized in accordance with the Company’s relevant policies, so as to prevent improper, illegal, or
fraudulent activities. During the reporting period, the Company conducted integrity due diligence on 91 key third-party partners focusing
on compliance and business ethics. No high-risk behaviors requiring special attention or expanded audit investigations were identified.
Case Learning Visit to the Yunnan Provincial Anti-Corruption and Integrity Education Base
Business Ethics Training and Communication
In 2025, the Company organized
Walvax Biotechnology continuously promotes a culture of business ethics and anti-corruption. The Company has established policies directors, senior management,
including the Walvax Biotechnology Values and Guidelines – Code of Prohibited Conduct and the Walvax Biotechnology Employee and core management teams
Professional Ethics and Code of Conduct , which clearly define the business ethics standards that employees must follow. All employees in Yunnan to visit the Yunnan
are required to sign the Walvax Biotechnology Values and Guidelines Commitment Letter . Employees’ adherence to the Company’s Provincial Anti-Corruption and
values and their performance in professional ethics and conduct serve as important criteria for performance evaluation, promotion, Integrity Education Base for on-
appointment, and dismissal. site learning. Through systematic
learning on laws and regulations
Based on its operational needs and management requirements, the Company organizes publicity, awareness, and training activities
related to integrity and self-
on business ethics and anti-corruption on a regular basis to enhance employees’ awareness, recognition, and sense of accountability.
discipline, case-based analysis
These initiatives include, but are not limited to, anti-corruption training for directors, compliance training for new employees, integrity
of anti-corruption practices, and
and compliance training for functional personnel, specialized compliance and business ethics training for audit personnel, and targeted
professional ethics education,
training for suppliers. The Company also reports the latest domestic and international developments in anti-fraud, anti-corruption, anti-
participants strengthened their
bribery, and business ethics policies, as well as relevant case analyses and the Company’s implementation practices, to the Board of
understanding of sound values
Directors and management in a timely manner to ensure their capability to address business ethics risks. In 2025, Walvax Biotechnology
and appropriate conduct in
achieved 100% coverage of anti-corruption and business ethics training for Board members, all employees (including part-time
managing interests. These efforts
staff), key partners, and critical suppliers through various methods including offline training, online learning, thematic briefings, email
enhanced their awareness of
communication, and examinations.
integrity and self-discipline and
supported a clean and principled
corporate environment.
Walvax Biotechnology 2025 Sustainability Report Strengthening Governance for Long-Term Stability and Growth
Supply Chain Integrity Whistleblowing and Whistleblower Impact, Risk, and Opportunity Management
Management Protection
The Supplier Code of Conduct of Walvax Biotechnology Walvax Biotechnology maintains a zero-tolerance stance toward Walvax Biotechnology follows requirements such as the Compliance Guidelines for Preventing Commercial Bribery Risks in
Co., Ltd. sets out clear requirements on business corruption and other conduct that violates business ethics. The Company Pharmaceutical Enterprises and regularly conducts business ethics risk identification and assessment. The Company analyzes factors
ethics, anti-corruption, and anti-fraud, and applies to has established the Misconduct Reporting Mechanism and Handling that may give rise to ethical risks, including potential conflicts of interest, improper transfer of benefits, and unfair competition risks in
all suppliers, achieving 100% coverage. Suppliers are Procedures of Walvax Biotechnology Co., Ltd. , under which multiple activities such as academic exchanges, clinical research, business hospitality, retail terminal sales, donations, and sponsorships. Based
required to comply with applicable laws, regulations, reporting channels are available, including hotlines, text messages, on these assessments, the Company formulates compliance policies and procedures to ensure that all business activities comply with
policies, and industry standards in the jurisdictions where WeChat, email, and written correspondence. Employees, customers, ethical standards and applicable laws and regulations. To ensure the timely identification of potential risks, the Company continues to
they operate, and must not engage in or tolerate any suppliers, contractors, business partners, and other stakeholders with improve its monitoring system, including but not limited to internal audits, compliance inspections, and whistleblowing mechanisms.
form of corruption, fraud, extortion, or embezzlement. business dealings with the Company are encouraged to report actual
The Company has established centralized procurement or suspected violations of business ethics by the Company or its
management policies and procedures. Internally, potential personnel. The Audit and Inspection Department designates dedicated Risk Identification and
conflicts of interest are reviewed in accordance with personnel to receive reports related to fraud, bribery, and other Risk Management and Response Risk Monitoring and Control
Assessment
procurement procedures, and all employees involved in misconduct. The department is responsible for investigating disciplinary
bidding and tender evaluation are required to sign the cases and reporting them to the President’s Office and the Board
Bid Evaluation Personnel Commitment Letter of Walvax of Directors. In accordance with the Policy on Handling Violations of In line with the Company’s Align with requirements such as the Establish a regular monitoring
Biotechnology Co., Ltd. Externally, all suppliers and Walvax Biotechnology Co., Ltd. , confirmed violations of laws or company strategic priorities and compliance ISO 37001 Anti-Bribery Management mechanism for business ethics and
business partners are required to sign an Anti-Commercial regulations are addressed based on their severity. Disciplinary measures requirements, track industry System and adjust risk management compliance risks in accordance
Bribery Agreement , and business ethics and compliance may include job transfer, reassignment, demotion, rank reduction, regulatory developments and strategies in response to changes in with the Compliance Guidelines for
clauses are incorporated into contracts to ensure that the salary reduction, termination of employment contracts, or referral to evolving laws and policies related the internal and external environment. Preventing Commercial Bribery Risks
Company’s business ethics and anti-corruption policies judicial authorities. Accountability may also be pursued for both directly to business ethics, including cross- Manage potential business ethics risks in Pharmaceutical Enterprises and the
are binding on all suppliers. responsible individuals and relevant managers. The Company has also border compliance requirements in operations through a combination Company’s compliance management
established employee integrity records to document violations of laws, associated with international of measures, including compliance framework. Conduct periodic
The Company advocates compliant operations across regulations, or internal rules. Employees with records in the integrity files operations, and update the risk and business ethics training evaluations of system effectiveness
its supplier network. Each year, suppliers undergo are not eligible for appointment or promotion to key positions within the inventory accordingly throughout programs, contractual compliance and implement improvement
integrity due diligence focused on compliance and Company. the full lifecycle of business clauses with business partners, measures and management
business ethics, while business departments strengthen
activities. and whistleblowing mechanisms, adjustments in a timely manner to
oversight of cooperation processes. The Company also
reinforcing the Company’s safeguards ensure the continued adaptability and
promotes supply chain integrity through training and
Walvax Biotechnology Whistleblowing Channels and against unethical conduct. effectiveness of the compliance and
communication, emphasizing anti-fraud and anti-bribery
Contact Information business ethics management system.
requirements and the Company’s business ethics policies
during procurement bidding activities and supplier
Audit and Inspection Department, 395 Kexin Road,
meetings. The Company provides accessible reporting
High-Tech Zone, Kunming, Yunnan Province, China
channels to encourage business partners to report
misconduct and work together to build a transparent and
efficient supply chain. In 2025, the Company conducted
supplier anti-fraud and anti-bribery awareness activities
ynwsia@walvax.com
at all 34 procurement bidding supervision sessions. No
litigation cases related to corruption or unfair competition Indicators and Targets
occurred in procurement activities during the reporting
period. Walvax Biotechnology has established the Whistleblower Protection
Policy of Walvax Biotechnology Co., Ltd. to protect whistleblowers and
witnesses. The Company is committed to maintaining strict confidentiali- Indicator/Target Achievement Status in 2025
Anti-unfair Competition ty throughout the reporting and investigation process. Personal informa-
tion such as the whistleblower’s name, employment-related information,
Zero major corruption incidents
Walvax Biotechnology strictly complies with the Anti-Un- contact details, and home address, as well as the content of reports and
fair Competition Law of the People’s Republic of China , the status of their handling, are kept strictly confidential at all stages, Zero corruption-related litigation cases filed against the Company or its
the Several Provisions on Prohibiting Infringements upon including acceptance, registration, custody, and investigation. Reporting employees and concluded during the reporting period Target achieved
Trade Secrets , and relevant anti-monopoly and fair com- leads and related materials are received by designated personnel and
Zero litigation cases or major administrative penalties arising from unfair
petition laws and regulations in the countries and regions managed according to confidentiality classification requirements. Access
competition
where it operates. The Company commits not to obtain to such information is not permitted without approval from the Presi-
competitors’ trade secrets or other confidential informa- dent or the Chairman of the Board. While ensuring the confidentiality of
tion through illegal means, nor to engage in unlawful whistleblowers, the Company strictly prohibits any form of retaliation.
Individuals who violate confidentiality requirements or retaliate against Target achieved
activities such as collusive pricing with industry peers that commitment letter
could disrupt market order. Anti-unfair competition prin- whistleblowers will be held accountable according to the severity of the
ciples are incorporated into the Company’s compliance misconduct, and those responsible for retaliation will be subject to strict
and business ethics training system, contributing to the disciplinary action. These measures aim to provide the highest possible
maintenance of a fair and orderly market environment. level of protection for whistleblowers and complainants. Where reported
information is verified and makes a significant contribution to safeguard- 100% effective handling rate of whistleblowing reports Target achieved
In 2025, Walvax Biotechnology had no violations of fair
competition or anti-monopoly laws and regulations. ing the Company’s interests, whistleblowers who actively provide leads
or assist in investigations may receive both moral and material rewards.
Walvax Biotechnology 2025 Sustainability Report Strengthening Governance for Long-Term Stability and Growth
Information Security and Privacy Protection Strategy and Approach
Walvax Biotechnology fully recognizes the critical importance of information assets. In alignment with international standards such as the ISO
comprehensive information and data security framework across management, technical, and operational dimensions. At the management level,
Governance the Company has developed a series of information security policies and systems, including the Information Security Management Measures of
Walvax Biotechnology Co., Ltd. , Information Security and Privacy Protection Policy of Walvax Biotechnology Co., Ltd. , and Information System
Emergency Response Plan of Walvax Biotechnology Co., Ltd. It has strengthened off-site disaster recovery capabilities, implemented classification
Walvax Biotechnology strictly complies with applicable laws and regulations, including the Cybersecurity Law of the People’s Republic and graded management of personnel and information, and established compliance self-assessment and filing mechanisms for cross-border data
transfers. Employee conduct is strictly regulated to minimize information security risks. At the technical level, the Company has implemented a
of China , the Data Security Law of the People’s Republic of China , the Personal Information Protection Law of the People’s Republic
range of security measures, including network isolation, transmission encryption, tracking and early warning mechanisms, and antivirus protection,
of China , and the World Health Organization (WHO) Guideline on Data Integrity: Good Data and Record Management Practices. The
forming a comprehensive and multi-layered security protection system to safeguard information and data. At the operational level, the Company
Company has established a comprehensive policy framework, including the Information Security and Privacy Protection Policy of Walvax
reinforces information and data security awareness through training and communication, and conducts regular audits to enhance overall
Biotechnology Co., Ltd. , the Information Security Management Measures (Interim) of Walvax Biotechnology Co., Ltd. , and the Personal
information security performance.
Information and Privacy Protection Management Measures of Walvax Biotechnology Co., Ltd. In 2025, the Company introduced an
additional 17 management policies, including the Information Technology Security Management Policy of Walvax Biotechnology Co., Ltd .,
covering multiple dimensions such as data security, endpoint security, application security, data and integration security, IT security, Information Access Control Data Backup and Recovery
IT infrastructure security, and cross-border data transfer. Information security and privacy protection requirements are effectively
embedded into business processes, ensuring comprehensive data protection and information security management across all operations.
The Company implements classification and graded management of In accordance with the Backup and Recovery Management
The Company continues to strengthen its information security governance structure and has established an Information Security personnel and information assets, applying differentiated protection Measures of Walvax Biotechnology Co., Ltd. , the Company performs
Management Committee directly led by the Chairman. The committee comprises senior management and general managers of measures in accordance with relevant management requirements. In periodic full local backups of application systems and the data they
line with the principle of least privilege, data access permissions are generate. Two data centers in Kunming and Yuxi are established to
subsidiaries and is responsible for key functions including approval, decision-making, supervision, and the handling of major information
strictly controlled to prevent unauthorized access to sensitive data. provide cross-city, off-site mutual backup, ensuring rapid recovery in
security incidents. In 2025, the Company further optimized the committee’s organizational structure and staffing to enhance
Comprehensive encryption and decryption management is applied to the event of data loss or damage. The backup system is equipped
organizational coordination and execution capabilities. At the same time, an information security reward and accountability mechanism
server and endpoint data to prevent interception or tampering during with deletion protection features to prevent accidental data deletion
has been integrated into the business management system to ensure effective implementation and closed-loop management. For
transmission. Key systems are equipped with audit mechanisms to or alteration. The Company has also established mechanisms for
further details on the Company’s principles, governance structure, policies, and protection systems for information security and privacy
ensure that all operations are recorded and traceable. In addition, emergency response and recovery testing drills to minimize potential
protection, please refer to the Information Security and Privacy Protection Policy of Walvax Biotechnology Co., Ltd. log audit systems and operation and maintenance (O&M) audit losses. In 2025, the Company completed a backup project for
systems are deployed to monitor and record access activities of R&D electronic data, further ensuring the integrity, security, and
O&M personnel in information systems. traceability of experimental data.
Information Technology Security Management Committee Enhancing Technical Protection Cross-border Data Transfer Control
Formulate information technology security management Make decisions in response to major information technology
The Company completed the network architecture upgrade and In accordance with applicable laws and regulations, including
policies and systems security incidents node expansion of its hyper-converged platform, enhancing overall the Regulations on Promoting and Regulating Cross-border Data
Approve information technology security strategies and Review information technology security reports on a regular security capabilities across four dimensions—underlying protection, Flow , the Measures for Security Assessment of Data Exports ,
work plans or ad hoc basis risk resilience, compliance, and business continuity. This enabled the and the Measures for Standard Contracts for Cross-border
achievement of a “proactive defense + defense-in-depth” security Transfer of Personal Information , the Company revised the
Approve the organizational structure and staffing of the
management approach, providing strong support for the Company’s Information Technology Personal Information and Privacy Protection
Information Technology Security Management Office
high-quality digital transformation. During the year, five technical Management Measures of Walvax Biotechnology Co., Ltd. and
protection initiatives were implemented, including the deployment of the Information Technology Security Management Measures for
Formulate information technology security management policies and systems
IT O&M monitoring systems and upgrades to the hyper-converged International Business of Walvax Biotechnology Co., Ltd. in 2025,
network architecture. Nearly 200,000 network attacks were and progressively implemented these policies. These measures
Define information technology security objectives, Organize routine inspections and remediate identified successfully defended against, ensuring secure data transmission help prevent unauthorized access, disclosure, or misuse of data,
requirements, and protection strategies security vulnerabilities between endpoints and servers. The Company also continued to protecting the personal information of customers, employees,
improve audit tracking and early warning mechanisms to identify and business partners. The Company also enhanced information
Develop operational procedures and manuals for Report on information technology security on a regular or
and promptly address potential security risks, further strengthening technology security management for its international operations
information technology security management ad hoc basis
information security safeguards. to prevent potential information security incidents in cross-border
Establish, test, and refine information technology security Establish dedicated task forces based on operational needs business activities.
emergency response plans
Conduct awareness and training programs on information External Personnel Information Security Information Security Training and
technology security for employees Management Awareness
Technical Team Communications and Awareness Team The Company has established the External Personnel Information The Company conducts regular information security training and
Technology Management Measures of Walvax Biotechnology Co., awareness activities for all employees. Training is tailored to different
Ltd. , which set out detailed security requirements for external roles to ensure that relevant personnel understand information
Implement information technology security solutions to Promote information technology security awareness across personnel accessing and using the Company’s information systems security risks and requirements related to their responsibilities. In
prevent risks and defend against threats departments and physical resources. These measures include the definition and 2025, the Company organized three dedicated information security
Monitor and review the implementation of information Support the implementation of security strategies led by classification of external personnel, information access control, training sessions, reaching employees across the Company and its
technology security policies the Information Technology Security Management Office server room access management, and account and permission subsidiaries and controlled entities. Information security has also
management, effectively mitigating information security risks arising been incorporated into mandatory training for new employees. In
Conduct information technology security monitoring and Assist the Information Technology Security Technical Team from external personnel access and ensuring the security of the addition, 12 issues of information security bulletins were published to
incident response, and deliver technical training in other related tasks Company’s information resources. promote knowledge and awareness, enhancing employees’ ability to
identify and prevent data security risks.
Walvax Biotechnology 2025 Sustainability Report Strengthening Governance for Long-Term Stability and Growth
Information Security Emergency Personal Information and Privacy
Management Protection Impact, Risk, and Opportunity Management
The Company has established policies such as the Emergency Walvax Biotechnology’s core business focuses on vaccines
Plan Management Measures of Walvax Biotechnology Co., and involves limited direct contact with end users and their To strengthen the management of information technology security incidents and risks, standardize reporting and response procedures,
Ltd . and the Backup and Recovery Management Measures personal information. To address potential privacy risks, the and ensure the secure and stable operation of information systems, in 2025, the Company revised the Information Technology Security
of Walvax Biotechnology Co., Ltd. , and continues to refine Company has established the Personal Information and Privacy Incident and Risk Management Measures of Walvax Biotechnology Co., Ltd.
information security emergency response plans, including data Protection Management Measures of Walvax Biotechnology
breach response plans. Based on the principles of scenario- Co., Ltd. , building a privacy data management system that The Company conducts regular external information security audits, including internal reviews of the establishment and implementation
based, routine, and comprehensive management, the Company covers multiple data types. Through stricter access controls of internal control systems. These reviews cover organizational structure and performance of responsibilities, policy development
conducts regular cybersecurity attack and defense drills and and strengthened data management, the Company ensures and implementation, routine management practices, and information system governance. Historical risks and the status of corrective
recovery testing to ensure timely and effective protection of transparency in the collection and use of product and service actions are reviewed, with existing risks identified and corresponding mitigation measures proposed. In 2025, the Company engaged
information security. In 2025, the Company carried out data data, and safeguards stakeholders’ rights to be informed, to an independent third-party institution to audit its information systems and information security policies, enabling comprehensive
and application recovery drills for core systems such as ERP, OA, make choices, and to control their personal information. identification and assessment of related risks. Based on audit findings, the Company carries out corrective actions and continuous
FSSC, and e-HR, ensuring the security of data and systems. improvements to enhance the security and reliability of its information and data protection framework.
While balancing cost considerations and risk management, the Company selects appropriate control objectives and control measures to
Case Strengthening Security Resilience through Practical Drills maintain information security risks within an acceptable level. The Intelligent Information Department conducts information security risk
assessments on a regular or ad hoc basis and formulates measures to mitigate identified risks.
In September 2025, Walvax Biotechnology successfully completed government-organized cybersecurity attack-and-defense drills
and network protection initiatives, and completed the rectification of all identified issues, effectively fulfilling its primary responsibility
for cybersecurity and its broader social responsibility. This practical exercise enabled the precise identification of gaps in security
protection, enhanced overall security awareness, and strengthened emergency response capabilities, effectively safeguarding core Indicators and Targets
business operations and data assets. Building on this effort, the Company further improved its routine cybersecurity management and
emergency response mechanisms, advanced network architecture optimization and the cleanup of redundant systems, and upgraded
its IT governance and risk management framework. At the same time, it improved the efficient use of IT resources and reduced energy
consumption, achieving dual improvements in security capabilities and sustainability performance.
Indicator/Target Achievement Status in 2025
Information security training coverage reached 100% Target achieved
Clinical Research Data Security and Privacy Protection
Walvax Biotechnology strictly complies with applicable laws, regulations, and guiding principles, including the Provisions for Target achieved
Drug Registration , the Declaration of Helsinki , and the Personal Information Protection Law of the People’s Republic of China .
Clinical trials are conducted by qualified research institutions and their affiliated trial sites. As such, the Company does not The number of material information security risk
directly access or collect personal information of trial participants during the conduct of clinical trials, and only uses subject No material information security risks occurred incidents remained at zero
data that has been encoded or de-identified. The Company has also established a proactive privacy protection management No incidents of personal data breaches involving
system for trial participants, covering the entire R&D lifecycle. During the reporting period, no incidents involving the leakage customers or employees occurred
of participants’ personal information occurred in any clinical trial projects.
The Company integrates the requirements of laws and regulations, including the Personal Information
The success rate of data backup and recovery drills for
Protection Law of the People's Republic of China , into its core management systems and standard operating Target achieved
core business systems reached 100%
procedures (SOPs). In line with the principle of data minimization, the scope, purpose, and access permissions
for data collection are clearly defined to avoid unnecessary data collection. Through mandatory training
for all personnel, confidentiality agreements, and contractual obligations, the Company ensures aligned
awareness and accountability among all relevant parties. An independent clinical quality management team
has been established to consistently oversee and audit the implementation of protection measures through
regular monitoring and quality management activities.
The Company has established comprehensive procedures for the evaluation and management of electronic
data capture (EDC) system providers, and deploys systems that meet established security standards. Strict
hierarchical access control and full-process data encryption are implemented. Throughout all stages of
research data flow, including collection, processing, analysis, and publication, de-identification (such as the
use of unique study identifiers) and anonymization are strictly enforced. Clinical trial materials are managed
by authorized personnel at trial sites to prevent personal data leakage.
The Company places strong emphasis on protecting research participants’ rights over their personal data. A
transparent and comprehensive informed consent process is implemented, clearly explaining the scope of
data collection, purposes of use, and data protection measures. Participation is based on fully informed and
voluntary consent, and participants have the right to withdraw from the trial at any time and revoke consent
for future data use.
Walvax Biotechnology 2025 Sustainability Report Key Performance Table
Key Performance Table
Indicator Unit 2023 2024 2025 Indicator Unit 2023 2024 2025
Total assets billion RMB 15.59 14.72 12.07 Customer complaint response rate % 100% 100% 100%
Operating revenue billion RMB 4.11 2.82 2.42 Customer complaint resolution rate % 100% 100% 100%
Net profit attributable to shareholders of the listed Product recall rate during the year % 0% 0% 0%
million RMB 419 142 178
company
Total number of countries and regions exported to No. 19 22 26
Total tax payment million RMB 297 139 166
Finished vaccines exported to developing countries and
million doses 6+ 9+ 8+
R&D investment million RMB 911 700 381 regions during the year
Bulk vaccine exported to developing countries and
liters 200+ 500+ 2,900+
R&D investment as a percentage of operating income % 22.14% 24.82% 15.76% regions during the year
Number of R&D personnel persons 216 172 206 Total external donations during the year million RMB 9.18 5.11 13.99
Proportion of female directors % 18% 18% 18% Investment in environmental protection during the year million RMB 2.16 2.97 2.51
Anti-corruption training coverage % 100% 100% 100% General or above-level environmental incidents cases 0 0 0
Effective report resolution rate % 100% 100% 100% Total chemical oxygen demand emissions tonnes 5.83 7.71 5.16
Labor contract signing rate % 100% 100% 100%
Total ammonia nitrogen emissions tonnes 0.26 0.25 0.15
Social insurance coverage rate % 100% 100% 100%
Total particulate matter emissions tonnes 2.92 4.70 2.51
Number of employees recruited during the reporting period persons 400 67 201
Total nitrogen oxide (NOX) emissions tonnes 30.76 26.39 21.57
Total number of employees persons 2,388 1,932 1,981 Total energy consumption tonnes of standard coal equivalent 13,466.91 12,652.10 14,412.98
Incidents of labor discrimination cases 0 0 0 tonnes of standard coal equivalent/RMB
Energy consumption intensity 0.0327 0.0448 0.0596
Training coverage rate % 100% 100% 100%
Direct greenhouse gas emissions (Scope 1) tonnes of CO2 equivalent 10,331.04 7,643.23 11,275.75
Total employee training hours hours 270,079.9 167,469.3 214,710.57
Indirect greenhouse gas emissions (Scope 2) tonnes of CO2 equivalent 35,682.25 34,859.04 32,441.32
Annual production safety incidents cases 0 0 0
Total greenhouse gas emissions
tonnes of CO2 equivalent 46,013.29 42,502.27 43,717.07
(Scope 1 and Scope 2)
Employee physical examination coverage rate % 100% 100% 100%
tonnes of CO2 equivalent/RMB 10,000
Greenhouse gas emission intensity 0.112 0.151 0.181
revenue
Occupational disease incidence rate % 0% 0% 0%
Total water withdrawal tonnes 713,256.75 692,940.39 612,604.50
Total number of suppliers companies 418 486 621
Recycled water volume tonnes 61,040 87,476 78,771
Number of suppliers certified to quality management
companies 146 185 329
systems
Water consumption intensity tonnes/RMB 10,000 revenue 1.73 1.46 1.67
Number of suppliers certified to occupational health and
companies 51 61 91
safety management systems Total volume of hazardous waste discharged tonnes 356.62 338.92 376.88
Number of suppliers certified to environmental
companies 69 71 102 Hazardous waste emission intensity tonnes/RMB 10,000 revenue 0.0009 0.0012 0.0016
management systems
Walvax Biotechnology 2025 Sustainability Report Index Table/About This Report
Index Table About This Report
This report adopts an open and transparent approach to disclosing the Company's sustainability philosophy, management
Shenzhen Stock Exchange Sustainability Reporting GRI Standards 2021 practices, and key performance, in order to effectively address issues of concern to stakeholders.
Reporting Framework
Guidelines (Referenced Framework)
Message from the Chairman / 2-22/2-23
Reporting Scope Reporting Principles
About Walvax
/ 2-1/2-2/2-4/2-6/2-16/2-28/201-1
Biotechnology
Organizational Scope: The scope of this report aligns with This report follows the principles of materiality,
Sustainable Development Article 12, Article 13, Article 14, Article 15, Article 17, Article 2-12/2-13/2-14/2-16/2-19/2-22/2-29/3-1/3- that of the annual consolidated financial statements of the quantification, balance, and consistency.
Management 18, Article 51, Article 52, Article 53 2/3-3 Company.
Materiality: Walvax Biotechnology conducts materiality
Healthy | Innovation-Driven Health Accessibility Time Range: This report covers the period from January assessments to identify and evaluate ESG issues that are
R&D Innovation Article 11, Article 19, Article 41, Article 42, Article 43 2-6/2-27/416-1 appropriately extended to previous or subsequent years and external stakeholders. The key material topics identified
where relevant. This is an annual report; the previous edition through this process are highlighted in this report. For more
Excellence in Quality Article 11, Article 19, Article 47 2-25/2-27/3-2/416-1/416-2/419-1 was released in April 2025. details on the materiality assessment process and results,
please refer to the "Materiality Assessment" section in this
Access to Healthcare Article 47 2-23/2-27/203-1/203-2
report.
Basis of Preparation
Quality Services Article 44, Article 47 2-27/417-1/417-2/417-3/418-1 Balance: This report presents an objective and balanced
This report has been compiled according to the GRI view of the Company's ESG performance by disclosing
Environmental | Green Development and Environmental Stewardship Standards by the Global Sustainability Standards Board, both positive and negative information without bias. No
the Shenzhen Stock Exchange's Guideline No.17 on Self- significant negative events requiring disclosure were
Strengthening
Article 29, Article 33 3-2/2-27/307-1 Regulation for Listed Companies — Sustainability Reporting omitted during the reporting period.
Environmental Management
(Trial) and the Guideline No. 3 on Self-Regulation for Listed
Article 11, Article 19, Article 20, Article 21, Article 22, Article Companies — Preparation of Sustainability Reports (Trial), Quantification: ESG performance indicators are disclosed in
Climate Change Mitigation 23, Article 24, Article 25, Article 26, Article 27, Article 34,
Article 35
the national standard Guidance on Social Responsibility have been set when appropriate. The methodologies,
Pollution Prevention and 2-27/304-3/305-7/306-1/306-2/306- Reporting (GB/T36001-2015), and the United Nations assumptions, measurement standards, calculation tools,
Article 11, Article 19, Article 29, Article 30, Article 31
Ecosystem Protection 3/306-4/306-5/307-1
Sustainable Development Goals (SDGs). and sources of conversion factors used for key performance
Resource Utilization and indicators are explained in the relevant sections of the
Article 34, Article 36 2-27/303-1/303-3/303-5
Circular Economy
report, where applicable.
Alliance | Collaborating for Shared Benefits and Value Creation
Source of Information
Consistency: The statistical methods and disclosure
All data and information presented in this report are approaches for the same indicators remain consistent
Sustainable Supply Chain Article 11, Article 19, Article 44, Article 45, Article 46 2-6/3-2/204/308-1/414-1/414-2
derived from the Company's official documents, statistical across reporting periods. Any changes to the statistical or
Diverse and Inclusive
Article 49, Article 50 5/403-6/ 403-7/403-8/403-9/403-10/405- data submitted by various business units and consolidated
Workplace notes to ensure meaningful analysis and evaluation by
Human Capital department. Unless otherwise specified, all monetary figures
Article 11, Article 19, Article50 401-2/404-1/404-2/404-3
Development
in this report are denominated in RMB.
Caring Public Welfare
Report Availability
Article 38, Article 40 3-2/203-1/203-2/413-1/415-1
Initiatives
Assurance of Accuracy This report is available in both printed and PDF electronic
Thrive | Strengthening Governance for Long-Term Stability and Growth formats. The electronic version can be accessed on
The Company assures that there are no false records, the official website of Walvax Biotechnology at https://
Strengthening Party
Building to Consolidate the / - misleading statements, or significant omissions in the www.walvax.com. To continuously improve our reporting
Foundation contents of this report, and is responsible for its truthfulness, practices, we welcome your feedback and suggestions. If
Strengthening Corporate accuracy, and completeness. This report has been reviewed you have any questions or comments regarding this report,
/ 2-9/2-10/2-12/2-15/2-27/405-1
Governance and approved by the Board of Directors and is released to please contact us via email at ir@walvax.com or by phone
the public. at +86 871-68312779.
Upholding Business Ethics Article 11, Article 19, Article 54, Article 55, Article 56 2-27/3-2/205-1/205-2/205-3/206-1
Information Security and
Privacy Protection
Article 11, Article 19, Article 48 418-1 Definition of Terms
For ease of reference and reading, "Walvax Biotechnology
Co., Ltd." is also referred to in this report as "Walvax
Biotechnology," "the Company," or "we."
