Wecontinues to improve the corporate governance structure andoptimize its internal management in accordance with relevant laws andregulations and other normative documents, such as the Company Law of thePeople's Republic of China, the Securities Law of the People's Republic ofChina, the Code of Corporate Governance of Listed Companies and Rules Governingthe Listing of Stocks on Shanghai Stock Exchange by China Securities RegulatoryCommission (CSRC), and the Appendix 14 "Corporate Governance Code" ofRules Governing the Listing of Securities on the Stock Exchange of Hong KongLimited.


1. Regarding controlling shareholders andlisted companies:The controllingshareholders of the Companyexercise their rights as shareholders inaccordance with the Articles of Association oftheCompany. The controlling shareholders are independent of the Group in termsof personnel, assets, finance, institutions and business. The Board ofDirectors, Board of Supervisors, and the branches of the Company are operatedindependently.


2. Regarding directors and the Board ofDirectors: Weselects and hires directors in accordance with the proceduresprescribed in the Articles of Association and the Policy on Diversity of BoardMembers. As of 31 December 2023, the Board of Directorscomprisesa total of 12 directors (including twofemaledirectors), including 4 independent non-executive directors who arespecialized in accounting, law,pharmaceuticalindustry, license-inandtransferof scientific and technologicaloutcomes. Thenumber and composition of the Board of Directors comply with relevant laws andregulationsand development demand of the Group. Therules of procedure of the Board of Directors are specifically stipulated in theArticles of Association.The Board of Directorsof the Company sets up five committees, including the Strategy Committee, AuditCommittee, Nominating Committee, Remuneration and Assessment Committee, andEnvironment, Social and Governance Committee, with specified terms of referenceand implementation rules for each committee.


3. Regarding the supervisors and the Boardof Supervisors: We selects and hires supervisors in accordance with theprocedures prescribed in the Articles of Association. As of 31 December 2023,the Board of Supervisors comprises a total of3supervisors.The number andcomposition of the Board of Supervisors comply with relevant laws andregulations. The rules of procedure of the Board of Supervisors are stipulatedin the Articles of Association. The Board of Supervisors can independentlyexercise the right of supervision overthe performanceofdirectors and senior executives.


4. Regarding performance evaluation andincentive and restraint mechanism: Wehas established sound performance evaluation standards andprocedures for senior executives,andcontinues toimprove the incentive mechanism for senior executives andotherkey positionsto boost thesustainabledevelopment of the Group.


5. Regarding interested parties: We fullyrespects the legal rights of such interested parties as shareholders,employees, customers and consumers, suppliers, and communities, and activelycooperates with them to jointly promote the healthy and sustainable developmentof the Group.


6. Regarding the information disclosure: Wefulfills the obligation of information disclosure of the listed companies inaccordance with relevant laws and regulations, such as the AdministrativeMeasures for the Information Disclosure by theCSRC, and the Articles of Association and Information Disclosure Systemof the Company. In addition tofinancial reporting, the Company also regularly releases the internal controlevaluation checklists, corporate social responsibility (CSR) reports,environmental, social and governance (ESG) reportsand/or ESG and sustainable development reportsto thepublic, and engages professional institutions to issue audit/review opinions tofully demonstrate theinitiatives and outcomes in respect ofsustainable developmentof the Group. We attaches greatimportance to communication and exchange with investors and ensures thatinvestors can obtain the public information released by the Group in a fair andtimely manner.


Sound corporate governance is the foundationand guarantee of enterprise development. We will continue to consolidate andimprove its corporate governance and enhance its competitiveness toprovide stable and sustainable returns to shareholders.