China TCM’s 2025 ESG Report: RMB 511.47 Million R&D Outlay, 2.65% CO₂-Intensity Cut and Expanded Green Factory Network

Bulletin Express04-28

China Traditional Chinese Medicine Holdings Co. Limited (“China TCM”) has published its 10th standalone Environmental, Social and Governance (ESG) Report, detailing performance for the year ended 31 December 2025 and outlining new sustainability targets as it closes the 14th Five-Year Plan period.

Research & Innovation • R&D spending reached RMB 511.47 million, equal to 3.8% of revenue. • The Group’s innovation platform grew to 54 province-level-and-above research centres; R&D headcount totalled 1,461, including 10 post-doctoral researchers and more than 300 senior technical staff. • Key pipeline progress: registration for Yushuda Tablets filed; Shaoyao Gancao Granules and Kaixinsan Powder accepted for review. • Patent portfolio expanded to 207 authorised patents, of which 128 are invention patents.

Quality & Supply Chain • All subsidiaries maintained valid GMP/GSP licences; five additional entities now hold ISO 9001 certification. • Internal quality audits uncovered 552 issues, all rectified; product recall volume remained below 0.01% across all major categories. • Supply Management Centre established; on-site ESG audits completed on 35 suppliers. • GAP-certified herbal cultivation area reached 545,200 mu, covering 112 plant varieties; eight new varieties obtained certification in 2025.

Environmental Performance • RMB 19.57 million invested in environmental protection; no major environmental incidents recorded. • Comprehensive energy consumption per RMB 10,000 of output fell 1.23% year-on-year; CO₂ emissions intensity declined 2.65%. • 14 subsidiaries now operate photovoltaic systems (18.75 MW total), generating 11.55 million kWh of green electricity in 2025. • Green-factory portfolio expanded to six national-level, five provincial-level and two municipal-level facilities; ISO 14001 certification coverage reached 80.6% of industrial sites.

Social Metrics • Total employees: 14,846; women hold 39.31% of management roles. • Training investment amounted to RMB 6.76 million, with staff averaging 23.5 training hours. • Rural-revitalisation spend was RMB 29.24 million, including new herb-planting bases covering more than 17,800 mu and education-support programmes benefiting 139 rural students. • Professional volunteer teams delivered over 100 public TCM science events, reaching 10,000+ participants.

Governance and Ethics • No corruption cases, major legal proceedings or customer privacy breaches were reported. • All directors and suppliers signed integrity commitments; 27 anti-corruption training sessions were held with 100% leadership coverage.

Looking Ahead China TCM plans to deepen its digital-intelligence rollout, widen clean-energy adoption and fast-track innovative TCM drug commercialisation as it prepares for China’s 15th Five-Year Plan period, aiming to further embed ESG principles across its end-to-end traditional Chinese medicine value chain.

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