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The Policy of Supporting Employees for Further Study

Sino Biopharmaceutical encourages all employees to participate in various training and learning. By supporting high performance and high potential employees in post rotation, secondment, temporary post exercise, learning, and providing necessary training support, including but not limited to job skill training, leadership training, etc., the employees could improve their comprehensive and professional ability, and maximize the realization of career and life planning.

The Group formulated the Talent Training System, which is focused on excavating and cultivating compound and professional talents. Under the principle of giving priority to internal training and supplemented by external selection, we revitalize human resources, optimize talent structure, and clarify personal career development channels by making full use of the rich talent resources and professional advantages, as a result, to enrich the internal talent pool of the Group and member companies.

1.Post rotation: It is divided into experience expansion rotation and promotion rotation. The starting date of rotation shall be formulated by the enterprises or departments on both sides based on the overall business plan. The proportion of post rotation depends on the staffing of the departments. In principle, the annual number of post rotation in the headquarter of the Group is between 10-20% of the number of people in the department.

2. Secondment: The Group needs to take the designated staff from its member companies for work or project, and vice versa. The selection or arrangement of the loaned personnel is determined by the borrowing enterprise and the loaning enterprise in combination with the needs of work, projects and personnel allocation.

3.Temporary post exercise: The staff participating in temporary post exercise are sent by the Group to the member companies. The term of post exercise is one year. The staff can be authorized with preliminary examination during the period of temporary post exercise, and the final review authority is held by the person in charge of the enterprise department.

4.Study for further education: We mainly cooperate with universities and research institutes, build post-doctoral workstations, practice bases, and set up special courses to create channels for employees to improve their academic qualifications. It is divided into three forms: exchange learning, internal training and external training. Among them, external training is divided into long-term training such as academic education and short-term training such as forum and conference.

5. All employees can participate in the training and learning that matches their job responsibilities and is conducive to improving their work ability and professional level. The company signs training agreements with employees to support the learning and training expenses.

The Plans of Talent Team Construction

Sino Biopharmaceutical and its member companies adhere to diversified talent training. The Group attaches importance to the excavation and training of compound and professional talents based on the principle of internal training and external selection as a supplement. The Group sets differentiated training courses for different positions and levels to make perfect talent development plans. As a result, the employees are provided with a career development platform by job rotation, secondment, temporary post exercise, etc. Meanwhile, in order to enrich the reserve talent team and create a complete talent echelon, the Group implements apprentice training plan and industry-university-research joint training plan, which ends in reserving high-quality potential talents by orientation training.

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Competitive Remuneration and Welfare

To protect the interests of the Group and employees, Sino Biopharmaceutical formulates and implements the Remuneration Management System applicable to the Group and its member companies, which ensuring the correct identification and payment of wages. Furthermore, to build up a competitive remuneration system for employees, the Group participates in the salary survey of well-known research companies in the industry to obtain the most accurate market data, keeps a close eye on the global salary dynamics, the domestic industry economic situation, and the cross-regional market salary level. In the future, effective long-term incentive measures will be provided for the key talents to reduce the loss. Meanwhile, we pay attention to the salary market, and regularly formulate a reasonable salary adjustment plan for the overall salary of employees. For employees working overseas, we also provide annuity guarantee for them.

1. Principles: Fair, competitive, incentive, legal, and compliant.

2. Governing: The Remuneration and Assessment Committee is the management organization, and the Human Resources Department is responsible for specific matters.

3. Remuneration composition: Employee remuneration consists of basic salary + overtime pay + bonus + subsidies + allowances.

4. Remuneration adjustment: It is divided into overall adjustment and individual adjustment. Overall adjustment is implemented once a year according to the overall performance of the Group. Individual adjustment is carried out for the change of employee's position and other reasons.

5. Remuneration accounting for special reasons: Including sick leave, personal leave, late, early leave, absenteeism, etc.

6. Remuneration accounting and payment: Including the calculation of payment time, the amount of money that must be deducted from the salary, the calculation of the salary of the staff hired or leaving midway, etc.

7. Supervision system: The remuneration is calculated and issued by the Human Resources Department, audited and issued by Financial Department, complying with the relevant regulations and norms of the Group. The process should be subject to audit supervision. The income, which is from be a director, supervisor or consultant in holding or shareholding enterprises recommended by the Group, should be reported regularly to the Remuneration Committee.

Non-Salary and Welfare Policies

Sino Biopharmaceutical provides supplementary medical insurance and personal accident insurance for employees, and bears all the insurance costs to comprehensively cover various social insurance and multi-level supplementary insurance for employees.

The Group provides all female employees with holidays and benefits in three periods (pregnancy, childbirth and lactation), in accordance with national and local laws and regulations, and retains their jobs according to law. Male employees whose spouses give birth are entitled to paternity leave according to law.

Meanwhile, the Group provides employees with holiday greetings, birthday greetings, extreme weather greetings, fuel cards, staff dormitory, shuttle bus, housing subsidies, staff canteen, free physical examination, childcare fees, technical allowances, winter heating expenses and other benefits. During the COVID-19 pandemic, we provide employees with special allowances and lunch subsidies to improve their non-wage benefits.

The Policy of Performance Evaluation and Feedback

Attaching great importance to employee performance management, Sino Biopharmaceutical has formulated and implemented the Performance Management System applicable to the Group and its member companies. Furthermore, the roup uses OKR, which enhances organization vitality and empower employees to develop, to empower employees to find optimal solutions, improve work efficiency, and activate team creativity.

The performance management mechanism includes target setting, interview, appraisal, and results application. Among them, performance interviews are conducted throughout the year. With the full interview and feedback between the direct supervisor and the employees, the reasonable use of the incentive mechanism, the development needs of the employees are explored, and the talent development plan to fully stimulate the potential of the employees is formulated, which ends in the realization of the common development of the enterprise and employees. The performance management mechanism clearly takes figures and facts as the evaluation basis, and carries out fair, just and open evaluation, forming a virtuous cycle of performance evaluation system.

1. Principle: Goal-oriented, full participation, objective and fair, full communication.

2. Process: Goal setting, performance interview, performance evaluation, performance results and application.

3. Target setting: After the Group strategic planning committee determines the annual overall goals, employees at all levels will determine the annual performance goals according to the Group strategic goals, combined with the overall department goals, individual job responsibilities and annual work tasks.

 4. Interview: It is conducted throughout the year, including but not limited to: performance target setting interview, personnel change interview, mid-year performance interview, talent development interview, and year-end performance evaluation interview.

 5.Evaluation: It is divided into half-yearly performance tracking and annual assessment. The annual assessment includes four aspects: the completion of work tasks,  the compliance with the group's values and code of conduct, executive ability, communication and coordination ability, and leadership. The assessment results are divided into five grades: remarkable, excellent, standard, etc.

6. Results and application: The performance results are mainly applied to employee year-end bonus accounting, annual salary adjustment, promotion, post adjustment and elimination, talent development, etc.

7. Feedback and review: If any employee has any opinion or objection to the assessment, he/she can communicate with the direct supervisor to solve the problem. If there is still any objection, he/she can make a written statement to the Human Resources Department within five working days after the assessment result.

Employee Share Purchase Plan

Sino Biopharmaceutical attaches great importance to sharing the achievements of enterprise development with its employees. The Group is to establish long-term equity incentive plans, which will be in accordance with the law and the principle of voluntary participation, covered in stages directors, senior management, middle management and the core technology (business), in order to attract and retain talented people, to inspire staff enthusiasm and creativity, realize the continuous growth of the company's performance. Thus, the interests of shareholders, corporate interests and individual interests are effectively combined.