CONTENTS

About the Report

2

Reporting Standards

2

Reporting Scope

3

Message from the Chairman

4

Summary of Key Environmental, Social and

Governance Performance

5

Professional Certification and Group Honors

6

Environmental, Social and Governance Structure

8

Stakeholder Engagement

10

Materiality Assessment

11

Industry Optimization

14

Care for Employees

22

Environmental Protection

34

Community Investment

44

Summary of Statistics

46

Index of the Guide

50

2

ABOUT THE REPORT

Shenguan Holdings (Group) Limited (the "Company", together with its subsidiaries, the "Group", "we", "Shenguan Group") is an enterprise established in the Cayman Islands and specialised in utilising collagen. We are committed to the development and application of collagen technologies. We hope that through the annual release of the environmental, social and governance report (the "Report"), we can enable each stakeholder to understand the environmental, social and governance policies, measures and performances of the Group, and continue to maintain good communication with stakeholders, promote and implement the sustainable development vision and strategy to achieve our sustainable development growth strategically.

REPORTING STANDARDS

The Report is prepared based on the Environmental, Social and Governance Reporting Guide (the "Guide") listed in Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Stock Exchange").

The Report is prepared in accordance with the four major reporting principles stated in the Guide, including materiality, quantitative, balance and consistency, aiming to present true, meaningful and accurate environmental, social and governance information of the Group.

During the year, we conducted a materiality assessment process again to maintain the pertinence and relevance of the key disclosure issues in the Report. We finally determined the disclosure content and reporting scope based on the analysis of the extent of the material

Materiality

impact on the Group's operations or on stakeholders as well as its importance, hoping to

disclose the relevant information of the Group's environmental, social and governance in

a more accurate and complete manner. For more details, please refer to the "Materiality

Assessment" section in the Report.

The Report, where applicable, presents relevant environmental and social information in a

Quantitative

quantitative approach. Unless otherwise stated, all presentation currency in the Report should

refer to RMB. Apart from ratios and percentages, data was rounded up to integers. For the

standards, methods and assumptions (if applicable) regarding the calculation of the relevant

performance data, please refer to the "Summary of Statistics" section in the Report.

We aim to present our environmental, social and governance achievements and challenges

Balance

in an objective, impartial and truthful manner, so as to enhance operational transparency and

build stakeholder trust.

The statistical methods disclosed in the Report are the same as last year, which used the same

Consistency

data statistics and conversion methods. However, we would review and update the relevant

conversion factors annually to present timely and accurate environmental data. The pertinent

historical data has been disclosed in the Report to enable stakeholders to better understand

and compare the Group's sustainability performance.

SHENGUAN HOLDINGS (GROUP) LIMITED

3

REPORTING SCOPE

The Report mainly covers our efforts and achievements in terms of environmental, social and governance aspects from 1 January 2022 to 31 December 2022 (the "Year", the "Reporting Period" or "the Year of 2022"), including Industry Optimization, Care for Employees, Environmental Protection and Community Investment. The reporting scope includes the principal business of the manufacturing and sales of edible collagen sausage casings, which represented the main operating income of the Group. The subsidiaries involved include Guangxi Shenguan Collagen Biological Group Co., Ltd. (廣西神冠膠原生物集團有限公司) ("Shenguan Collagen") (formerly known as Wuzhou Shenguan Protein Casing Co., Ltd. (梧州神冠蛋白腸衣有限公司)). As the R&D and production based in Singapore have yet to be officially put into production due to the impact of the epidemic, therefore, the relevant environmental, social and governance data is not disclosed during the Year.

The Report focuses on the Group's performance on the environmental and social aspects. For more details on corporate governance, please refer to the Corporate Governance Report set out in the latest annual report of the Group.

Environmental, Social and Governance Report 2022

4

Ms. Zhou Yaxian

Chairman of the Board and President of the Company

MESSAGE FROM THE CHAIRMAN

The year 2022 was the second year of the "Fourteenth Five-Year Plan" of the People's Republic of China (the "PRC") and it was also a year experiencing difficulties. The multipoint emanation of the epidemic in the PRC significantly increased the adverse impact on various industries, and the situation in the second half of the year was even more acute, with the global economic downturn, and the decline in domestic raw material exports, which led to production reduction by downstream customers, as well as the impact of unfavorable factors such as rising costs of raw materials, energy and transportation, the Group overcame the difficulties by focusing on the objectives of "strengthening the core to supplement production capacity and promoting the high-quality development of the three major sectors". We deeply understand that both environmental and social risks will have a significant impact on the operations of the Group. Therefore, we are committed to integrating sustainable development into our daily operations in order to achieve long-term prosperous business development and meet the expectations of our stakeholders.

F o r s t a k e h o l d e r s w h o c a r e a b o u t s u s t a i n a b l e development, especially in the uncertain situation caused by the current COVID-19 outbreak and turbulent international situation, the performance of sustainable development has becoming increasingly important. We wish to let the public understand the efforts and achievements of Shenguan Group in the environmental, social and governance aspects by virtue of the Report.

The Board continues to monitor the environmental, social and governance-related matters, and reviews relevant key performance indicators regularly with the assistance of management. We focus our management on operating standards, employment and labour relations, occupational health and safety, and mitigating environmental damage, and setting relevant goals and monitoring progress where feasible, so as to consolidate our commitment to sustainable development.

The material issues in relation to industry optimization continue to be items of concern to the Group and stakeholders. By leveraging technological innovation and industrial layout, the Group achieved an all-round and multifaceted growth from a single casing product to the grand health industry layout of "Three Developments and One Core", including collagen food products, collagen skincare products and collagen medical devices. The Group also established Guangxi Shenguan Collagen Technology Research Institute (廣西神冠膠原蛋白技術 研究院, "Shenguan Research Institute") in 2021, and established a Joint Research and Development Centre for Synthetic Biology Technology (合成生物學技術聯合研發中 心) with Huazhong University of Science and Technology, making scientific and technological contributions to facilitate the innovative development of bio-industry and green economic growth through focusing on our collagen technologies and cooperating with school-enterprise to provide a series of technical services including research and development, trial, testing and results transformation for our new products in the future, and offering strong technical support for achieving the planned targets by the Group.

SHENGUAN HOLDINGS (GROUP) LIMITED

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Shenguan Holdings (Group) Ltd. published this content on 24 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 April 2023 09:56:02 UTC.