CABIO Releases 2024 ESG Report

Message from the Chairman

2024 marked the 20th anniversary of CABIO's founding and a pivotal year for us to anchor our synthetic biology strategy and deepen global 布局 (global expansion). At this intersection of time, we witnessed the surging tide of China's bio-economy and experienced the complex challenges of global industrial transformation. Throughout the year, our business developed steadily with promising market expansion; our foundational technological breakthroughs strengthened, and manufacturing capabilities reached new heights; organizational management improved orderly, and ESG principles were deeply integrated into operations. We delivered a satisfying performance, thanks to the collaborative efforts of all CABIO employees and the strong support from our partners and stakeholders.

This year also marked the fifth anniversary of CABIO's listing. For five consecutive years, we have published ESG reports, and through these five years of dedication, I have come to a profound realization: Exceptional ESG performance does not require deliberate polish—a company need only fulfill its inherent responsibilities and do its part well. When a company thrives, its ESG performance naturally follows.

Integrating ESG Culture and Building a Shared Vision

In 2024, the company integrated ESG into its corporate strategy and culture, embedding sustainable development into the core of its business, implementing responsible operations, and establishing fundamental strategic goals of "strengthening enterprise management, empowering life and health, addressing global climate change, and demonstrating corporate care."

On this basis, we collectively constructed six overarching visions that encapsulate our commitments: building a transparent, high-quality, and compliant governance system; driving innovation through science and technology to nourish life and health; cultivating trusted partnerships with diverse stakeholders; embracing diversity to accompany employee growth; contributing to society as a shared responsibility; and promoting green manufacturing to support global sustainable development. These six visions condense a public company’s sincere commitment to society and carry our firm resolve to repay society through high-quality development.

Harnessing Synthetic Biology's Green Genes for Global Sustainability

Green is an inherent trait of synthetic biology manufacturing. As a leading Chinese company using synthetic biology as its foundational technology and "cell factories" for producing bio-based nutritional chemicals, CABIO has always been at the forefront of green manufacturing. In the past year, we made phase progress in building our synthetic biology technology platform. Alongside automation and informatization, we explored digital transformation to construct a "green smart factory." We believe we will contribute more to global sustainability in the future.

Technology for Good: Building a Healthy Future Together

Ensuring employees' well-being, fostering harmonious communities, and contributing value to society are the original aspirations of every responsible enterprise. In 2024, CABIO fulfilled its commitments with unwavering dedication, continuously contributing unique value across multiple fields: social education, industry leadership, elderly health, maternal and child care, child development, and animal welfare.

All that has passed is a prelude; all that lies ahead is full of promise. Our commitments to ourselves, employees, customers, shareholders, partners, and society will be fulfilled in the daily practice of doing our part and assuming our responsibilities.

ESG Governance Structure

As a company rooted in the nutrition and health industry with a presence in multiple countries and regions, CABIO is committed to long-term, healthy, and sustainable development. While pursuing economic benefits, we fully integrate ESG management into production and operations, continuously improving our ESG governance framework and mechanisms to support high-quality development.

Six Visions of ESG Strategy

In 2024, CABIO:

• Held 8 board meetings, 3 board audit committee meetings, and 2 strategy committee meetings;
• Disclosed 59 announcements, conducted 18 on-site inspections, and organized 6 special activities to build a transparent, high-quality, and compliant governance system.
• Prioritized building an "AI + Synthetic Biology" R&D system to innovate for life and health.
• Established a high-standard quality management system:
  • 106 ex-factory tests and 4,000+ product tests with a 100% pass rate;
  • 181 type-test indicators with a 100% pass rate and "zero product recalls";
  • 97.73% validity rate for supplier qualifications and a product delivery rate >99% to cultivate trusted partnerships.
• Invested RMB 675,000 in employee training, achieving 100% training coverage to embrace diversity and support employee growth.
• Donated RMB 1.5 million to support social education and organized 11 volunteer activities focusing on environmental care and community welfare to fulfill social responsibility.
• Invested RMB 6,750,500 in environmental protection, with 100% monitoring completion and pass rates, and 100% public disclosure of environmental discharges to promote green manufacturing for global sustainability.

For more details of CABIO's 2024 Environmental, Social, and Governance (ESG) Report, please visit our official website: www.cabio.cn for access and download.