Intelligence Enlightens Life for a Shared Future

On March 27, Haier Biomedical released its 2023 Sustainability Report (hereinafter referred to as the "Report"), disclosing the company's practices in the economic, environmental, social, and corporate governance responsibilities. In 2023，based on the sustainable development vision of "Intelligence Enlightens Life for a Shared Future," Haier Biomedical actively engaged with the United Nations Global Compact and developed our "LIFE" sustainability model，focusing on the four fundamental pillars of our approach: Leadership, Integrity, Future, and Ecosystem. By innovation, intelligence, green transformation and advancement, we contributes to society with concrete actions.

The Report highlights that in 2023, Haier Biomedical achieved a revenue of RMB 2.281 billion and a net profit exceeding RMB 406 million, with a global tax contribution of RMB 167 million, reflecting high-quality growth. Simultaneously, Haier Biomedical continues to protect life and health with technology. By the end of the reporting period, the digital and smart life science EPS(Equipment, Platform, Service) solutions and related medical equipment had benefited more than 150 countries and regions worldwide, contributing to the construction of a community with a shared future for mankind.

Commitment to Innovation Leadership with Excellent Products

Technological innovation is the core of  innovative and top-quality solution development. As a digital service provider in the life sciences and medical innovation sector based on the IoT transformation, Haier Biomedical focuses on national major needs and public health, deepening the deployment of the digital and smart life science EPS(Equipment, Platform, Service) scenario ecosystem. We are committed to serving society and people with high-tech, high-efficiency, and high-quality product solutions.

Powered by our global R&D and technology resources, Haier Biomedical continued to tap into scenario-based ecosystems, strengthen digital intelligence innovation around life sciences and medical fields. We have established six main platforms, including automation, refrigeration, intelligentisation, precision manufacturing and materials, digitalisation, and biomedicine. These platforms support the accumulation of core technologies in cryogenic processing, automation, cell culture, high-speed centrifugation, and digital intelligent systems, as well as the development of new life sciences business forms such as biopharmaceuticals, smart laboratories, digital hospitals, smart public health, and smart blood distribution.

Meanwhile, upholding a user-centricity principles, in 2023, we reconstructed our R&D technology system from the perspective of our users and established the user-centric innovation R&D system which includes user participation across the entire process, from design, validation to application. We also built comprehensive and professional international inspection capabilities around software, hardware, scenarios, and applications, enhancing the full-scenario solutions under our EPS(Equipment, Platform, Service) differentiated model,  to promote universal healthcare and improve life quality.

The report indicates that in 2023, Haier Biomedical made a R&D investment of CNY 321 million, a year-on-year increase of 10%. Globally, we have 809 R&D personnel, accounting for 30.69% of all employees. By the end of 2023, Haier Biomedical has owned a total of 1,321 authorized patents and 296 software copyrights, led or participated in the release of 1 international standard, 18 national and industry standards, 2 local standards, 17 group standards, and 2 CQC certification technical specifications. In addition, 32 World-leading technological achievements and 35 scientific and technological awards above the provincial level have been obtained.

Integrity：Co-creating a Life Foundation

Integrity is the cornerstone of a company’s sustainable development. Haier Biomedical worked together with various stakeholders to establish a mutually beneficial industry ecosystem; based on integrity, collaborating with honesty, transparency and ethical practices, whilst ensuring compliant and stable operations. Internally, we actively implements the diversity policy of the Board of Directors, with a focus on achieving diversity in terms of industry experience, work background, and professional skills of the Board members and the management team. As of the end of the reporting period, 40% of the Board members and 37.5% of senior management were women. We also constantly strengthen our business ethics and risk prevention practices, to promote a culture of integrity and tightly control corruption risks. In 2023, Haier Biomedical organized 24 integrity awareness trainings for all employees.

Externally, Haier Biomedical upholds the business ethics. We adhere to an open and honest procurement model, developing a professional, lean, distinctive, and innovative procurement platform. We operate full-cycle supplier management and information management systems and collaborate with our suppliers to build a sustainable supply chain, generating added value for the world. In addition, we attached great importance to information disclosure and investors’ rights protection. We have established a comprehensive information disclosure management system, actively facilitated share repurchases and rewarded our investors through cash dividends. In 2023, Haier Biomedical's cash dividend payout ratio has reached 40%.

Centered on People: Creating Unlimited Possibilities with a Borderless Ecosystem

"Making life better" is the original aspiration of Haier Biomedical's innovation and entrepreneurship. In 2023, we created an inclusive and open ecosystem without limitations related to identities, specialized knowledge, or geographical locations. By adopting people-centered principles, we aimed to unlock opportunities and potential to enhance the quality of life for all.

Haier Biomedical believes that employees are the cornerstone of stable development. We create more high-quality job opportunities for the industry and society by finding the right people, helping them succeed, and supporting them to achieve their full potential. In 2023, Haier Biomedical hired 573 new employees and recruited 55 new graduates.  Embracing the ethos of "maximizing the value of individuals", Haier Biomedical established learning-focused and open structures, and explored the maker mechanism under the "Rendanheyi” model. We also established a reward system emphasizing high-value contributions. This encouraged proactive engagement in identifying, managing, and embracing change, achieving mutual benefits for both the organisation and employees.

Meanwhile, human health and well-being are our eternal pursuit. Haier Biomedical collaborates with global partners, including government institutions, NGOs and universities, to foster a community with a shared future, and culminate in the creation of an global public health ecosystem aimed at enhancing global well-being. In 2023, we donated 14 vaccination vehicles to various provinces and municipalities, including Xinjiang, Inner Mongolia, Yunnan, and Guizhou, and donated RMB 8.2828 million of cash and items. Overseas, Haier Biomedical's EPS(Equipment, Platform, Service) solutions and medical equipment have served more than 150 countries and regions worldwide. We are committed to making health more accessible around the world.

Supporting Carbon Peak and Neutrality Goals: Building a Green Ecosystem

Green development is the key to high-quality，sustainable development. We proactively promoted green production and led the green and low-carbon transformation in the industry to thoroughly implement national strategy of "carbon peaking and carbon neutrality". We stepped up efforts in eco-friendly technical innovation and established an environmental compliance system based on green development plans. In addition, we build the green value chain with partners abroad and engaged in the construction of a community with a shared future for life on the earth.

Haier Biomedical continually refines its system for green and low-carbon innovation, creating a green value chain covering green products, green manufacturing, green logistics, green office, green procurement, and green collaboration. For products, Haier Biomedical follows the principles of minimal energy and resource consumption, minimal ecological footprint, and maximal use of renewable resources, actively developing high-value-added, low-emission green products. As for manufacturing, we upgraded manufacturing processes, increased the efficiency of our resource and energy usage, and established mechanisms for low-carbon and low-consumption operations. We also advocated for green office and compliant emissions practices. In 2023, we achieved certification under the ISO 14001 environmental management system.

Haier Biomedical's independently innovated "Medical Refrigerator with Hydrocarbon Energy-saving Refrigeration Technology" uses 60% less energy than traditional products. Our Stirling Refrigeration Technology also saves 50% energy compared to compressor-based refrigeration while achieving 100% reliability. Furthermore, two of our products have obtained the first-ever energy-saving and environmental certifications. Over the past three years, 46 products have received certifications from the U.S. Energy Star program. Also, 71 different product models have achieved 107 energy-saving and environmental certificates, leading the industry in green and low-carbon development. Moreover, Haier Biomedical's cutting-edge digital and smart technologies are deployed across multiple germplasm repositories, including the Germplasm Bank of Wild Species, the Marine Biological Resources Bank, the National Aquatic Biological Resource Center, and the CryoArks in the U.K., contributing to biodiversity conservation, promoting harmonious coexistence between humans and nature, thus protecting our planet.

We will always remain true to our original aspirations and forge ahead with resolve and tenacity. Nowadays, Haier Biomedical is facing both opportunities and challenges as well as risks, in the context of the in-depth development of the technological revolution and industrial transformation. As a member of the United Nations Global Compact, Haier Biomedical will be commitment to the LIFE sustainable development vision: "Intelligence enlightens life for a shared future" and deepen the strategic deployment of life sciences with innovation. By contributing to modernization and the construction of a community with a shared future for mankind, we aim to "make life better".