Wanbangde Pharmaceutical Group Co., Ltd.

2016 Social Responsibility Report

Wanbangde Pharmaceutical Group Co., Ltd. (hereinafter referred to as "Wanbangde Pharmaceutical") has always been committed to improving human health and life quality, adhering to the corporate tenet of "pioneering and innovating, caring for life", and shouldering the mission of "benefiting mankind with technology" , is committed to the transformation of medical scientific and technological achievements, and promotes the development of the pharmaceutical industry in a deeper, wider and higher direction. Wanbangde Pharmaceutical implements a sustainable development strategy. While pursuing corporate economic benefits, it also takes into account the harmonious development with other stakeholders and the social environment.

The preparation of "Wanbond Pharmaceutical Group Co., Ltd. Social Responsibility Report" refers to the "Guidelines for the Preparation of Corporate Social Responsibility Reports in China", reviews the opportunities and challenges that Wanbond Pharmaceuticals has faced in the past year's development, and discloses Wanbond Pharmaceuticals and interests. Relevant social responsibility practices and performance of stakeholders.

1. About Wanbond Pharmaceutical

(1) Company profile

In July 2002, Wanbangde Pharmaceutical was restructured from the state-owned enterprise Wenling Pharmaceutical Factory. After more than ten years of development, it has now developed into a high-tech enterprise specializing in the research and development, production and sales of modern Chinese medicines, APIs and preparations. The registered capital is 360 million yuan, and it has 198 drug production approval numbers, involving 18 dosage forms. It has 5 subsidiaries.

Wanbangde Pharmaceutical adheres to science and technology as the guide, and has a provincial academician expert workstation, a "provincial high-tech enterprise research and development center for cardiovascular and cerebrovascular drugs", and a "provincial enterprise technology center", and has obtained 20 authorized patents (including invention patents). 15), 8 invention patents under review, and the trademark "Wanbangde Pharmaceutical" was recognized as a well-known trademark in China.

At present, Wanbangde Pharmaceutical has formed a product pattern of "characterized by natural botanical drugs, mainly for cardiovascular and cerebrovascular and nervous system drugs, supplemented by drugs in the respiratory system and other fields". The products cover cardiovascular and cerebrovascular diseases, nervous system diseases, respiratory Multiple therapeutic areas such as systemic and digestive diseases. At present, Wanbangde Pharmaceutical Group has 62 varieties and 78 product specifications entered into the 2012 edition of the "National Essential Drugs List", and 69 varieties entered into the "National Low-priced Drugs List".

(2) The company's core values

Wanbangde Pharmaceutical takes "innovating modern traditional Chinese medicine, serving public health; building a century-old brand, building a first-class enterprise; ensuring shareholders' income and continuing to repay the society" as its business goals, and always adheres to integrity as the soul of the enterprise. While advancing, the company regards social responsibility as its own responsibility, upholds a responsible attitude to shareholders, employees, partners, the environment and other stakeholders, continuously creates maximum value, and contributes to the development of human health.

2. The basic situation of Wanbond Pharmaceutical's social responsibility performance

(1) The overall situation and social recognition of Wanbond Pharmaceutical's social responsibility performance in 2016

2016 is the first year of Wanbangde Pharmaceutical's implementation of the "13th Five-Year" development plan, and it is also the full deployment of the "15th Five-Year" project (that is, the formation of 1 product exceeding 1 billion yuan, 5 products exceeding 100 million yuan, and 5 products exceeding 5,000 yuan). million products) a critical year. Facing the favorable situation of the "One Belt One Road", "Healthy China 2030 Plan Outline" and other policies for the healthy development of the pharmaceutical industry, Wanbangde Pharmaceutical insists on combining industrial structure adjustment with scientific and technological innovation and development, and strengthens marketing, scientific research innovation, The efforts in talent introduction, transformation of scientific and technological achievements, cost control, environmental protection, energy conservation and emission reduction, etc., actively prepared and participated in the establishment of "Wenling Medical Care and Health Town", and achieved good results. In addition, Wanbangde Pharmaceutical has always insisted on ensuring the steady growth of various business indicators of the company, taking into account the rights and interests of other stakeholders, actively fulfilling social responsibilities, and building a beautiful and harmonious society, which has been widely recognized and praised by all sectors of society.

The honorary titles that Wanbond Pharmaceutical has won are:

● Key high-tech enterprises of the National Torch Program

● Zhejiang high-tech enterprise

● Zhejiang Province Outstanding Contribution Enterprise

● Zhejiang Province to create harmonious labor relations and double love advanced enterprise

● Zhejiang Province Civilized Unit

● Zhejiang Province Cleaner Production Stage Achievement Enterprise

● Zhejiang AA-level "Contract-honoring and credit-worthy" enterprise

● Member certificate of Zhejiang Environmental Monitoring Association and executive director unit of Zhejiang Environmental Monitoring Association

● Top 20 growing enterprises in Taizhou

● Taizhou advanced grass-roots party organization

● Top 10 Industrial Enterprises in Wenling City

● Wenling City's major taxpayers in 2015

(2) Protection of the rights and interests of investors and creditors

Since the shareholding reform, Wanbangde Pharmaceutical has been operating in strict accordance with the requirements of the "Company Law", "Securities Law" and other laws and regulations. the specified rights. The company has formulated and gradually improved the "Articles of Association", "Procedure Rules of Shareholders' Meeting", "Procedure Rules of Board of Directors", "Procedure Rules of Supervisory Committee", "General Manager's Work Rules", "Investor Relations Management System", "Information Disclosure Affairs Management" Rules and Regulations", "Administrative Measures for the Use of Raised Funds" and other rules and regulations. The company's general meeting of shareholders, board of directors, and board of supervisors operate in a standardized and effective manner, fully safeguarding the interests of investors and the company. The company follows the principles of fairness, openness and impartiality in information disclosure, strictly fulfills its information disclosure obligations, and ensures the truthfulness, accuracy, completeness, timeliness and fairness of the company's information disclosure.

The company communicates with investors through convenient and efficient channels such as dedicated telephone consultation, company website, and reception of investors' visits, which promotes the benign interaction between investors and the company and establishes a good market image.

The company aims to maximize the interests of investors, pursues excellent operating performance, and allows investors to fully share the company's good operating results. In the process of business decision-making, the company fully considers the legitimate rights and interests of creditors, and promptly informs creditors of important information related to their creditor rights and interests. Since its establishment, the company has been abiding by contracts and keeping promises, and has established good cooperative relations with banks, and its creditworthiness has been highly recognized by various banks.

(3) Protection of the rights and interests of employees

1. Strictly abide by labor security laws and regulations, and build a harmonious and stable labor relationship

Wanbangde Pharmaceutical strictly abides by the "Labor Law" and "Labor Contract Law", establishes a sound labor contract system, and signs labor contracts with all registered employees. The company has also established a sound social insurance management system, and all employees enjoy the benefits of "five social insurances and one housing fund". In order to mobilize the enthusiasm of employees, the company implements a performance appraisal system, adheres to the principle of "equal pay for equal work, distribution according to work, more pay for more work", pays wages and performance bonuses on time and in full, and never defaults or deducts employees' wages. In addition, the company gave full play to the functions of the labor union, established a labor and personnel dispute mediation system, and extensively listened to employees' opinions and safeguarded their rights and interests by building employee service stations, holding employee symposiums, and setting up suggestion boxes.

2. Implement the strategy of strengthening the enterprise with talents and broaden the growth channels of employees

Wanbangde Pharmaceutical has always adhered to the strategy of "strengthening the enterprise with talents", and is committed to improving the management level of managers and the basic skills of employees. The company actively carries out training for employees at different levels, and encourages the full-time education of on-the-job employees to specialize in undergraduate and postgraduate studies, so as to improve their working ability and professional quality. Since 2016, Wanbangde Pharmaceutical has held various training courses to train all employees, including GMP knowledge, 5S on-site management and skill improvement training, job skills training, etc. The company has established a provincial-level academician and expert workstation, and has reached a school-enterprise cooperation alliance with China Pharmaceutical University, Zhejiang University, Zhejiang University of Technology and other colleges and universities to attract high-end talents. In addition, the company attaches great importance to the spiritual and cultural needs of employees, and has established a corporate "employee reading room" to encourage employees to learn new knowledge, master new skills, and create new performance.

3. Strengthen labor protection and attach importance to safe production

Wanbangde Pharmaceutical strictly abides by the "Labor Law", "Occupational Disease Prevention and Control Law" and other laws and regulations, mobilizes all employees to do a good job in occupational health and safety production, and actively coordinates the problems of safety production, labor protection, work-related injury and other aspects that employees respond to. Effectively safeguard the legitimate rights and interests of employees' life safety and physical health. The company attaches great importance to safety production work, establishes a sound long-term safety production mechanism, conducts three-level safety education and training, safety production knowledge training, and pays attention to emergency accident drills to improve the emergency handling capabilities of all employees. In 2016, the company further implemented the safety production responsibility system, carried out safety work throughout the whole process of production and operation, carried out the safety production self-inspection work of the whole plant for many times, and implemented the self-inspection tasks to each workshop and team, and stipulated that the team should conduct self-inspection on a daily basis. Inspection, weekly self-inspection of the workshop, and monthly self-inspection of the factory area. The inspection contents include: use of labor supplies, health and environmental protection, safety production labor protection supervision, production operation environment, production equipment, etc., to promote reform through inspection and promotion, and effectively ensure the factory area. Safety. Excellent work safety management has been well received by the provincial safety inspection team.

4. Strengthen the ideological and political education of employees, build a bridge of communication, and enhance collective cohesion

In 2016, Wanbangde Pharmaceutical took the opportunity of the 95th anniversary of the founding of the Communist Party of China to carry out the special study meeting on "The Spirit of General Secretary Xi Jinping's Series of Important Speeches" and the study and education of "Two Learning and One Doing" to continuously improve the ideological and political awareness of employees and help employees establish correct worldview. The company also organizes activities such as Mid-Autumn Festival theatrical performances, essay competitions, and women's tea party on March 8th, so as to improve the centripetal force and cohesion of employees. In addition, the company's party labor office has established an employee through train mechanism to build a communication bridge between employees and senior management, listen to employees' demands, solve problems for employees, do practical things, and protect employees' legitimate rights and interests. In recent years, the company has also been very concerned about the daily work and living conditions of its employees. It has launched the "Caring for Employees and Sending Warmth" action. It has successively presented down jackets, quilts and other daily necessities to extremely poor employees and their families. Staff condolences and holiday condolences.

(4) Protection of Consumer Rights and Interests

1. Provide consumers with products with stable and reliable quality

As a major livelihood issue, drug safety is related to thousands of households and involves the physical and mental health of the general public. As a pharmaceutical company with a sense of social responsibility, as a leader in China's pharmaceutical industry, Wanbangde Pharmaceutical has always insisted on providing customers with products of stable and reliable quality. The company has established a quality management system in accordance with the "Pharmaceutical Administration Law of the People's Republic of China", the "Implementation Regulations of the Drug Administration Law of the People's Republic of China" and the "Good Manufacturing Practice for Drugs" to ensure that the quality of drugs from raw material production to finished product output is in compliance with regulations. In addition, the company has established an adverse drug reaction reporting and monitoring management system, and holds a drug recall simulation exercise every year to improve employees' emergency response capabilities, and can quickly recall any batch of products with hidden dangers on the market if necessary.

2. Establish and improve after-sales service system

Any enterprise with a brand and vitality has the ability to establish and improve the back-end service system. As an enterprise that has obtained the "China Famous Trademark" brand, Wanbangde Pharmaceutical will provide consumers with high-quality and perfect services as the key to the operation of the enterprise. The company has set up a quality service telephone, established a special information management center, and arranged for professionals to follow up, communicate and coordinate with customers, clinical units, users and other feedback related to drug use, so as to help customers solve problems.

(5) Taking the social responsibility of scientific research and innovation

1. Actively carry out scientific research work to enrich the prospect of product application

Since its establishment, Wanbangde Pharmaceutical has been committed to the research and development of traditional Chinese medicine, chemical raw materials and pharmaceutical preparations, and has developed a number of innovative drugs with independent intellectual property rights. In 1985, Wenling Pharmaceutical Factory, the predecessor of Wanbangde Pharmaceutical, was the first at home and abroad to successfully extract Huperzine A, an active ingredient in the treatment of Alzheimer's disease, from the Chinese herbal medicine Hedera chinensis, and obtained a domestic invention patent and marketed it. In recent years, Wanbangde Pharmaceutical has formulated a medium and long-term development plan for the research and development of Huperzine A series products, and developed a fully synthetic Huperzine A through total synthesis technology in 2015, which was the first in the world and obtained a domestic invention patent. It has also applied for foreign invention patents such as the United States, Japan, and the European Union. In addition to the fully synthetic Huperzine A, the company has also invested a lot of manpower in the in-depth development of various dosage forms such as Huperzine A Tablets, Huperzine A Injection, and Huperzine A Controlled Release Tablets.

As early as 2010, another core product of the company, the national exclusive variety Ginkgo Leaf Dropping Pill, was included in the National Torch Project Plan by the Ministry of Science and Technology. In addition, this product is also an important national protected species and is listed in the National Medical Insurance List and the National Essential Drug List, and Wanbangde Pharmaceutical is the drafting unit of the National Pharmacopoeia Standard for Ginkgo Biloba Dropping Pills. Ginkgo biloba dripping pill is a first-line drug for the prevention and treatment of cardiovascular and cerebrovascular diseases. It is an upgraded product of a new type of modern oral preparation of traditional Chinese medicine. In order to improve the effect, the active ingredients should be continuously studied, and the index of its ingredients should be quantified by means of fingerprints, and its adverse reactions should be collected clinically, and the process should be improved.

2. Actively carry out industry-university-research cooperation and docking to accelerate the transformation of scientific and technological achievements

Only when the R&D results are transformed into productivity can a virtuous circle be brought to the R&D of the enterprise. In recent years, Wanbangde Pharmaceutical has established an academician and expert workstation, and cooperated with Shanghai Institute of Materia Medica, Chinese Academy of Sciences, China Pharmaceutical University, Zhejiang University, Zhejiang University of Technology, Beijing Anzhen Yuan, Beijing Xiyuan Hospital, Sichuan University Huaxi Yuan, etc. National well-known research institutions have established industry-university-research cooperation relationships to accelerate the transformation of scientific and technological achievements. In the future, Wanbangde Pharmaceutical will continue to select R&D projects based on the development direction of the industry and the actual development of the enterprise, so that the R&D results can be combined with the short-term, medium-term and long-term development goals of the enterprise, so that the R&D results can be transformed into the enterprise's development goals. In terms of actual productivity, efforts should be made to achieve the goal of converting more than 80% of R&D results. The company should also change the traditional thinking of focusing on development and neglecting protection, strengthen the declaration of domestic patents and international patents, increase the number of provincial-level new products and high-tech products declared, strengthen the protection of intellectual property rights of new product processes, and effectively protect the intellectual property rights of enterprises. Achieve the basic goal of applying for more than 2 invention patents and utility model patents every year.

(6) Actively do a good job in environmental protection and promote green and circular development

Integrating environmental protection into the whole process of enterprise economic development is the active choice of Wanbangde Pharmaceutical to adapt, lead and grasp the new normal of economic development, and it is the moral bottom line of a conscientious pharmaceutical enterprise. Wanbangde Pharmaceutical vigorously carries out energy conservation and emission reduction at the headquarters and its subsidiaries, establishes the concept of low-carbon production and green environmental protection circular development, comprehensively carries out clean production activities, and actively fulfills its environmental protection responsibilities. In recent years, the company has invested a lot of manpower, material and financial resources in the transformation of environmental protection projects in the plant area, such as coal-to-gas conversion, condensate water recovery, and sewage emission reduction. In 2016, the company realized the recycling of water resources by transforming the original water device, saving 10,000 tons of water every year. In order to accelerate comprehensive clean production and realize recycling, the company has invested a total of 15 million funds in the construction and maintenance of sewage treatment systems, effectively treating major pollutants, and meeting the national emission standards and total control standards. In addition, the company selects, designs and purchases environmentally friendly materials from the perspective of environmental protection in the selection of product packaging materials, product R&D and design, and procurement of various materials to reduce environmental pollution.

(7) Benefit Sangzi and give back to the society

Over the years, Wanbangde Pharmaceutical has actively participated in various disaster relief, disaster prevention and other public welfare activities of the Red Cross Society and Charity Federation, donated money and medicine to the needed areas, and made its modest contribution to the construction of a harmonious enterprise, social stability and economic construction. . After the catastrophic earthquake in Ya'an, Wanbangde Pharmaceutical organized employees to raise funds immediately and donated medicines worth 2.21 million yuan. In 2015, Wanbangde Pharmaceutical reached a school-enterprise cooperation alliance with Wenling Secondary Vocational and Technical School in order to help local secondary school students in Wenling to find employment, and settled multiple jobs. In 2016, we donated 3,000 boxes of honeysuckle dew to the sanitation workers in Wenling City, donated 410,000 yuan through the Wenling Red Cross Society, and organized employees to participate in the 6th Wenling City's "Broom Runaway" city-wide public welfare activity. In addition, the company organizes some employees to participate in the "Tongxin Forest" activity organized by the Municipal Environmental Protection Association every year to participate in afforestation. Wanbond Pharmaceutical, who is enthusiastic about public welfare, has filled the enterprise with the power of love.

3. Future Outlook

In 2017, the company will continue to earnestly fulfill its corporate social responsibility and actively build social harmony. The company will continue to improve the level of corporate governance, promote the construction of corporate culture, promote innovation in human resources management, and effectively protect the rights and interests of employees, providing employees with a broader space for development. The company will also vigorously advocate environmental protection awareness, reduce energy consumption, and promote the development of environmental protection. In addition, we will continue to invest in social welfare activities to give back to the society with more practical actions.

For shareholders who support us, in 2017, we will continue to accelerate product innovation, improve customer satisfaction, and create greater value for shareholders with hard work.

Wanbangde Pharmaceutical Group Co., Ltd.

November 20, 2017