Uni Bio Science : ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020

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C O N T E N T

About Uni-Bio	2
About this Report	2
Director's Message	4
Environmental, Social and Governance	5
Communication with Stakeholders	6
Responsible Operation	9
Valuing our Employees	13
Environmental Protection	17
Community Engagement	21
Performance on Compliance	21
Overview of Key Performance Indicators	23
Reporting Content Index of	27
Environmental, Social and
Governance Reporting Guide

ABOUT UNI-BIO

Uni-Bio Science Group Limited (the "Group") is a leading biopharmaceutical and healthcare company, whose core business involves the research and development, manufacturing and sale of innovative biopharmaceuticals that can treat human diseases. The Group is currently specialised in such fields as diabetes and related metabolic disorders, dermatology and ophthalmology. The Group is headquartered in Hong Kong and principally operates in mainland China.

The Group completed the streamlining of its structure during the year and has achieved greater operation efficiency. It strengthened direct sales channels, and established closer customer and business partner relationship with hospitals and sector specific distributors respectively to increase sales of core products. The Group continued to promote the research and development of new products, and invested approximately HK$41 million in drug research and development during the year. The Group will continue to promote business development, and expand sales channels to improve operation efficiency, thereby laying a solid foundation for future development in the pharmaceutical and medical care industry.

		Proportion of
Sales revenue (HK$'000)	Gross profit margin	R&D expenses to revenue
208,776	86.7%	19.5%

ABOUT THIS REPORT

This report is the fifth Environmental, Social and Governance ("ESG") Report (the "Report") released by the Group. The Report describes the Group's ESG policies, measures and performance during the year to help stakeholders understand the Group's progress and direction for sustainable development issues. For details of the Group's corporate governance, please refer to the section "Corporate Governance Report" in the Group's annual report for the year ended 31 December 2020. The Report is prepared in Chinese and English and has been uploaded to the website of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") (www.hkexnews.hk) and the Group's website (www.uni-bioscience.com).

Scope of Reporting

The Report discloses the Group's environmental, social and governance performance for the financial year from 1 January 2020 to 31 December 2020 (the "Year"). The Report covers the operations in relation to the biological and chemical pharmaceutical product business in the Group's production bases in Beijing and Shenzhen (the "Plants"), as well as the Hong Kong head office. Looking forward to the future, the Group will review the scope of reporting on a regular basis, and gradually expand the scope of disclosure based on the principle of substantiality, thereby providing more comprehensive information for investors and stakeholders.

Reporting Standards

The Report is prepared in accordance with the Environmental, Social and Governance Reporting Guide (the "Guide") set out in Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, and is based on four reporting principles - materiality, quantitative, balance and consistency. The Report also reports on all the applicable social Key Performance Indicators ("KPIs") under the "recommended disclosures" of the Guide. A complete index is attached to the final chapter of the Report to facilitate readers in browsing the Report by the Guide.

2 U n i - B i o S c i e n c e G r o u p L i m i t e d

Reporting		Application of
Principles	Definition	the Reporting Principles

Materiality	Importance shall be attached to
	reporting of the ESG issues that have
	great impact on the Group and its
	stakeholders.

The Group determined the impact of various ESG issues on the Group's o p e r a t i o n s t h r o u g h c o n d u c t i n g a questionnaire with internal and external stakeholders. Based on the questionnaire results, the Group identified major environmental and social issues and made key disclosures.

Quantitative	KPI data must be measurable and
	comparative where appropriate.

Where feasible, the Group recorded and estimated quantitative data and compared them with the previous performance where appropriate. To ensure the accuracy of environmental KPIs, the Group has commissioned an external consultant to conduct a carbon assessment, which follows national and international standards such as guidelines issued by the National Development and Reform Commission of the People's Republic of China, ISO14064-1 and the Greenhouse Gas Protocol. Quantitative data on social KPIs in the Report are derived from statistical records of relevant departments.

Balance	T h e G r o u p s h a l l r e p o r t i t s E S G
	performance during the Year objectively
	and truthfully.
Consistency	T h e G r o u p s h a l l u s e c o n s i s t e n t
	methodologies (including statistical
	method for disclosures) to prepare the
	ESG report and allow for comparison of
	relevant data, thereby understanding its
	business performance.

By reporting in an objective and unbiased manner, the Report ensures that the disclosed information reflects the Group's overall ESG performance.

Where feasible, the Group used consistent methodologies to keep statistics on the ESG data. Where any changes exist that may affect the comparison with previous reports, the Group has added annotations to the Report accordingly.

Opinion and Feedback

The Report is available in both English and Chinese. In case of discrepancy, the Chinese version shall prevail.

The Group relies on valuable feedback provided by stakeholders for improvement. Should you have any questions or suggestions, please send your opinions and feedbacks to [e-mail].

E n v i r o n m e n t a l , S o c i a l a n d G o v e r n a n c e R e p o r t 2 0 2 0 3

DIRECTOR'S MESSAGE

As a biopharmaceutical company, the Group has been providing high-quality treatment to patients through research, development and manufacturing of various healthcare products that can treat human diseases and contribute to the society. In order to cope with various diseases and the global epidemic in future, the Group is committed to bringing innovative and high-quality healthcare solutions that enhance the life quality of patients and promote the health and well-being of communities. The Group is fully aware that sustainable development governance and risk management have a significant impact on its operations. The Group will strengthen Board supervision and accountability on ESG issues and intend to minimise ESG risks through the risk management and internal monitoring system. Therefore, the Group can identify all kinds of sustainable development risks, as well as supervise the implementation of various sustainable development policies and measures across different departments.

Maintaining good communication with stakeholders plays an important role in the business development of the Group. During the Year, the Group has commissioned an external consultancy company to conduct a questionnaire with relevant stakeholders for identifying and determining the ESG issues that have a significant impact on the Group. The results of the questionnaire serves as an important basis for the Group to formulate its sustainable development strategy in the future, and they were also taken as a focus of disclosure in the Report to give the stakeholders a better understanding of the Group's sustainable development performance.

The quality of drugs has a direct impact on patient health. Therefore, the Group needs to maintain the quality of products continuously and ensure the drug use safety of patients. The Group has developed various management strategies and standard operating procedures (SOP) to standardise the pharmaceutical production process and ensure that the quality of our products meets standards. Besides, the Group also strives to maintain a good relationship with our employees and ensure their occupational health and safety, for which various employment benefit policies and safety production measures have been established. To address the use of hazardous chemicals during operations, the Group has also developed various contingency plans and taken early warning and preventive measures to cope with unexpected environmental and safety accidents.

During the Year, the Group's operations were severely affected by the novel coronavirus ("COVID-19") pandemic. In response, the Group has implemented various measures to mitigate the impact of the COVID-19 pandemic on the Group. In administrative aspect, the Group has integrated the risk of COVID-19 into its corporate risk management system. The Group's business continuity plans include COVID-19 in the Group's reporting and management guidelines. In supplies management perspective, the Group maintained relationships with major supply chain partners to ensure effective control of imports and exports in compliance with transportation control regulations. Responding to public policy, the Group also supported and fully facilitated government-backed coronavirus job retention scheme for furloughed staff.

Looking forward, as regulatory authorities and investors increasingly pay attention to our efforts in promoting sustainable development and coping with relevant risks, the Group will continue to review and improve environmental and social policies and measures. The Group will also continue to strengthen communication with stakeholders so as to better understand their expectations and views on the operations of the Group and to identify and respond to potential environmental and social risks as early as possible, thereby creating long- term values for shareholders and society.

Kingsley Leung

Chairman

Uni-Bio Science Group Limited

4 U n i - B i o S c i e n c e G r o u p L i m i t e d