1. Energy Management

At present, we mainly reduce energy consumption in business operations by strengthening management and awareness raising. We incorporate energy conservation and consumption reduction into the Company's annual HSE management objectives, and the Administrative and General Affairs Department determines the energy management to be undertaken this year to develop an implementation plan. We actively promote cleaner production, process improvements, optimize energy consuming equipment, and eliminate energy consuming products. We encourage employees to reduce unnecessary power consumption, including reducing the standby time of office computers and laboratory equipment, and turning off unnecessary electrical appliances and lighting switches in a timely manner. During the reporting period, we actively participated in activities related to "carbon peak, carbon neutrality".

In April 2022, we officially joined the Carbon Neutrality Committee of China Energy Conservation Association (hereinafter referred to as the Carbon Neutrality Committee), becoming a member unit of the Carbon Neutrality Committee, actively promoting the national goal of "carbon peak and carbon neutrality".

In July 2022, we assisted the "2022 College Energy Conservation and Low Carbon Volunteer Action" by providing customized souvenirs for college students who actively participated in the voluntary action, thereby encouraging them to learn the concepts of ecological civilization, green development, low carbon development, and knowledge about coping with climate change, continuously enhancing their awareness and ability to save energy and reduce carbon, and advocating for college students to choose a simple, moderate, green, low-carbon, civilized, and healthy lifestyle, improving the enthusiasm of college students to practice energy conservation and carbon reduction.

2. Water Resource Management

Our water consumption mainly comes from laboratories and offices. Although our business area has not been affected by drought and water scarcity, we still manage water resources economically, regularly monitor and count water usage, and strive to improve water efficiency. We promote wastewater reuse, promote water resource protection, and enhance employees' awareness of water conservation. We implement water conservation and emission reduction measures in terms of management and process technology, control the water usage for equipment cleaning, and promptly rectify equipment that consumes large amounts of water. The domestic water should be turned off when people leave the valve, and the phenomenon of long flowing water should be avoided. In the future, we will strictly monitor the use of water resources, deepen the implementation of water-saving measures, and strive to minimize the impact on water consumption and sustainable utilization.

In 2022, our water consumption was 449,000 tonnes, and the water consumption intensity was 0.88 tonnes per 10,000 RMB revenue.

3. Material Management

The paper used to issue reports to customers is the main source of materials consumed by us. We have begun to promote the use of paperless processes to reduce paper consumption, such as the introduction of a paperless LIMS system in laboratories, both the records and certificate issuance use the paperless operation, provide customers with electronic testing, inspection, certification, and other documents. At the same time, in order to further reduce paper consumption, the Group actively promotes the deployment of an electronic labor contract system, which can effectively optimize the labor contract signing process and reduce the printing of paper contracts after completion, making it more efficient and greener.